Basic challenges

Given their recent forays abroad, Chinese mining companies are likely to seek long-term production licenses and supplier agreements with Canadian counterparts, McBride said.

"From my discussions with Chinese mining companies, (they are) interested in everything Canada has to offer - whether it is gold, silver, zinc, iron, metallurgical, copper or rare earths. We have all these things China wants," he said.

Chinese mining companies have long been attracted to Australia, due to its proximity to China and rich deposits of iron and coal, but attention is shifting to Canada thanks to the government's raising of limits on foreign investment in natural resources.

According to McBride, Chinese mining companies have become cognizant of corporate social responsibility in relation to environmental impact and the rights of Canada's aboriginal communities, which must be considered in pursuing exploration and development deals.

"One issue is with indigenous peoples, who want to participate in decision-making, as it affects their lifestyle and economy," the lawyer said. "It takes patience, sensitivity and long-term strategies to address such issues that have been difficult for Western mining companies, too."

Basic challenges for any mining company eyeing a move into a foreign market are huge construction and operating costs, suitability of infrastructure and weak prices for commodities. Chinese miners, McBride said, are faced with overcapacity in their country's steel industry, increased reliance on imports of oil and gas over domestic reserves and the remoteness of mineral deposits at home.

Meanwhile, smaller Canadian companies in the sector, hit hard by falling prices, have been finding it difficult to finance capital projects since about 2009. Mendell, of Davies Ward, said the business cycle in the industry is at a low ebb, but he expects that sustained interest in Canada's mineral wealth will eventually yield deals and investments, including from China.

Cameron Mingay, a partner at Toronto's Cassels Brock & Blackwell LLP who specializes in Canadian mining and securities laws, said opportunities abound for Chinese investors, but they must do "a fine walk" to make any stake or asset deal profitable.