Mark Carney’s extremely tight victory in Canada’s federal election is poised to significantly impact the mining industry, particularly the extraction and processing of critical minerals essential for the global energy transition.
Fast-tracking approvals
Carney’s administration plans to establish a “Major Federal Project Office” with a “one project, one review” mandate. This initiative aims to streamline environmental assessments by eliminating duplication between federal and provincial processes, thereby accelerating the approval of mining projects. Such a move is poised to benefit companies involved in critical mineral extraction, including lithium, nickel, and cobalt, by reducing bureaucratic delays.
Carney has not provided clarity on how the consent process would be expedited to meet the timeline pressures of energy and infrastructure development. This ambiguity is notable, particularly as his promise to avoid forcing projects through appears to contradict his assurances that major projects will proceed swiftly. Past provincial experiences, such as B.C.’s attempts to expedite development under similar consent commitments, suggest that balancing these priorities is fraught with legal and political difficulty.
Carney’s approach implies an acknowledgment of a de facto Indigenous veto over resource projects—but rather than confronting this head-on, he proposes to “buy in” Indigenous participation through public financing mechanisms. This creates a practical route around a hard veto by offering Indigenous communities ownership stakes that align their interests with project success.
Reconciling the urgency of certain projects with the potentially time-consuming process of obtaining consent from multiple Indigenous nations will prove tricky. It begs the question of whether or not this model serves the public interest.
On one hand, it represents a constructive shift from conflict to partnership, promoting reconciliation and potentially leading to more stable and inclusive development. It avoids the legal and ethical risks associated with imposing projects on unwilling nations. On the other hand, it raises questions about the use of taxpayer-backed funds as a means of securing project approval. There is a risk that such financing becomes a permanent cost of doing business, even for projects that may not deliver strong returns to the public.
Whether this is sustainable or fair depends on how transparent and equitable the resulting arrangements are — and whether public funds are being used to create true partnerships or merely to neutralize opposition.
Investment in critical minerals
The Carney-led government plans to invest in the development of critical minerals by:
- Connecting critical mineral projects to supply chains via the new First and Last Mile Fund (FLMF), enhancing integration within the Canadian economy;
- Supporting clean energy and critical minerals projects through the FLMF to reduce reliance on other countries and protect Canadian jobs;
- Accelerating exploration and extraction, including from recycling, by investing in prospecting activities and
- Attracting and de-risking investment in critical mineral exploration and extraction through additional investments and expanded tax credits.
US tariffs
In response to US President Donald Trump’s imposition of tariffs on Canadian imports, Carney has pledged a firm stance. His administration plans to invest billions to reduce Canada’s economic dependence on the southern neighbour, including a $2 billion strategic response fund to protect Canadian workers and fortify the auto supply chain.
This shift towards trade diversification and economic resilience is likely to open new markets for Canadian mining exports, particularly in Asia and Europe, thereby reducing vulnerability to US trade policies.
Energy superpower
Mark Carney’s campaign message on energy, echoing Stephen Harper’s “energy superpower” mantra, signals a sweeping ambition — but with a broader, more climate-conscious twist. In his election night speech, Carney declared it was “time to build Canada into an energy superpower in both clean and conventional energy” and pushed for an industrial strategy that boosts competitiveness while addressing climate change.
Now leading a Liberal government, Carney faces the challenge of balancing economic growth with environmental responsibility. His platform includes plans for national “energy corridors” designed to fast-track approvals for infrastructure such as pipelines and transmission lines. He has also pledged to streamline regulatory processes to reduce delays that have long hindered energy and resource development.
Carney supports carbon capture and storage technology, a key strategy for the oil and gas sector to reduce emissions. His promise of federal backing extends to major infrastructure and extraction efforts, notably the Ring of Fire in northern Ontario. The region is rich in critical minerals essential for electric vehicles, batteries and other technologies vital to a low-carbon economy.
Some First Nations groups with claims in the area oppose development, which could take a decade to implement judging by other projects. Environmentalists say it will release the same global warming gases from the region’s muskeg that the electric-battery vehicle metals it would produce are supposed to limit.
Canada’s elected Prime Minister has also committed to advancing transportation and energy projects in the Arctic, paired with a planned expansion of the country’s military presence in the region.
Environmental commitments
While promoting mining development, Carney’s administration also maintains environmental commitments, such as upholding the industrial carbon tax and imposing caps on oil and gas emissions. This approach aims to ensure that mining growth aligns with Canada’s climate goals.
Despite facing challenges such as taxation, immigration and political influences, including Trump’s rhetoric, Canada’s natural resource development was a common topic brought up by the two main political parties.
Carney’s recent victory signals a proactive approach to strengthening Canada’s mining industry, a significant contributor to the country’s economy. The sector accounted for nearly 20% of the country’s gross domestic product in 2022, alongside C$422 billion ($305 billion) in exports.