Canada’s government unveiled a sweeping new suite of investments this week designed to cement the nation’s role as a global leader in the burgeoning critical minerals sector.
Speaking on Tuesday (March 3) at the Prospectors & Developers Association of Canada (PDAC) convention in Toronto, Minister of Energy and Natural Resources Tim Hodgson outlined more than C$3.6 billion in programs and funding commitments to help get Canadian minerals “from mine to market.’
The initiatives include up to C$165.2 million for 22 Canadian projects to accelerate planning, development and processing capacity, unlocking over C$434 million in critical minerals project capital across eight provinces.
This comes alongside the launch of the C$1.5 billion First and Last Mile Fund, aimed at building key infrastructure, from roads to electricity transmission, that will help mines move minerals to processing hubs and markets.
“The government is making smart investments so we can put our mineral wealth to work … and ensure all Canadians benefit,” Hodgson said, emphasizing that these efforts will support good-paying jobs, bolster economic and national security and strengthen rural and remote communities.
The funding announcements are fresh on the heels of the Fraser Institute’s Annual Survey of Mining Companies, which tracks the investment attractiveness of global mining jurisdictions.
In the 2025 report, Canadian provinces took the number two (Ontario) and three (Saskatchewan) spots, with Ontario jumping from its 15th place position on the list in 2024.
Ottawa’s vision shapes Canadian mining strategy
Hodgson’s federal investment remarks followed an address delivered on Sunday (March 1) by Claude Guay, parliamentary secretary to the minister, during PDAC’s opening ceremonies.
He underscored that Ottawa sees critical minerals as much more than commodities.
“Critical minerals are not just important, they’re foundational. They are the backbone of the clean energy transition and increasingly essential to our national security,’ Guay told the audience.
“In a time of geopolitical tension, accelerating climate ambition and growing competition for strategic resources, Canada is acting decisively,” he continued. “Not only in what we extract, but in how we build, process, refine, recycle and deliver value across the entire supply chain.”
Guay framed the current moment as a structural shift: “Canada and the world are entering a new era. An era where critical minerals have become a strategic asset — where energy security, economic competitiveness and industrial sovereignty are inseparable from how we develop and manage our natural resources.”
Canada, he argued, is uniquely positioned. It hosts roughly 170 advanced-stage mineral projects, more than half of which are expected to come online in the coming years, spanning rare earths, lithium, copper and graphite.
Combined with a stable governance framework and environmental standards, that resource base gives Canada a “privileged position at home and abroad.”
“Canada is not just rich in resources,” Guay said. “Canada is rich in trust and reliability.”
But Ottawa’s strategy goes beyond extraction. The federal government is pushing to build end-to-end value chains, turning raw materials into processed inputs and advanced products within Canada.
“Our approach is not simply about digging minerals out of the ground,” he said. “It’s about creating good jobs, strengthening rural and northern communities and supporting our industrial and national security needs.”
Critical minerals are now explicitly tied to defense, artificial intelligence and advanced manufacturing, he added. “Their availability is a matter of sovereignty as much as prosperity.”
A key pillar of that strategy is Canada’s Major Projects Office (MPO), established to streamline approvals and coordinate federal decision making on large-scale developments.
Since its creation, Guay said, more than C$116 billion worth of nation-building projects have been referred to the office, including several aimed at advancing critical minerals supply chains.
“These projects will accelerate and anchor Canada’s copper, nickel and tungsten supply chains — minerals fundamental not only to clean technology, but also to defense systems, aerospace and telecommunications,” he said.
Guay stressed that while the MPO aims to provide greater certainty for investors, it will do so while upholding Indigenous rights and strong environmental standards.
The federal government’s 2026 budget further reinforces that direction. Guay noted that the spending plan, recently approved in parliament, introduced a new Critical Minerals Sovereign Fund, which is designed to mobilize private capital and provide anchor investments for strategic projects.
“The goal is simple,” he said. “Provide the certainty needed to get projects over the line.”
As mentioned, the First and Last Mile Fund is also now in action with the aim of closing infrastructure gaps that often stall mining developments, ensuring minerals can reach processors, manufacturers and export markets.
In addition, the government has expanded eligibility for the Critical Mineral Exploration Tax Credit to include 12 further minerals deemed essential for defense, semiconductor and energy technologies.
“Together, these measures serve one clear objective: building more at home than anyone, anywhere else,” Guay said.
Aside from that, he emphasized the importance of alliances.
Canada is working with partners under initiatives such as the Critical Minerals Production Alliance and within the G7 framework to strengthen supply chains and reduce overreliance on dominant producers.
“We are in a context where materials are too often controlled by a few actors, some better than others,” Guay said. “Canada stands ready to be a reliable partner.”
Domestic collaboration
At the center of the federal vision, he said, is reconciliation with Indigenous peoples.
More than 500 Indigenous mining agreements are currently active across the country, formalizing long-term community benefits and social license arrangements.
Indigenous groups are increasingly participating as equity partners and co-managers in resource and infrastructure projects, supported by federal programs, including C$80 million through the Indigenous Natural Resources Partnerships Program, C$13.5 million under a critical minerals infrastructure grants stream and up to C$10 billion in loan guarantees through the Indigenous Loan Guarantee Program.
“This is economic partnership and reconciliation in action,” Guay said.
Guay underscored the global implications of the conversations and deals that happen at PDAC.
“What happens in these rooms does not stay in these rooms,” he said. “These conversations will shape supply chains, energy systems and economic resilience on every continent.”
For Canada, the objective is clear.
“As a strong sovereign country that has chosen to transform its mineral wealth into a strategic national asset, Canada has what the world wants,” Guay said. “We stand ready to lead, ready to partner and ready for business.”
“We are not only preparing for this new global era,” he added. “We are shaping it.”
Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.
