The Canadian Government has released an updated Critical Mineral Strategy, heavily promoting the development of its domestic critical materials industries and aiming to reduce its reliance on foreign supply chains.  

Canada's government had already developed a list of 31 minerals considered critical for the sustainable economic success of the country and had set out plans to position itself as the world's leading mining nation in the Canadian Minerals and Metals Plan. 

Its new Critical Minerals Strategy is aimed at improving access to responsibly sourced critical minerals for Canada’s industries, as well as those of its allies. With the successful implementation of the strategy, Canada aims to position itself as both a globally reliable supplier and consumer of critical minerals.  The country intends to leverage its resources, mining, and innovation ecosystems to position itself as the supplier of choice for global markets.

The strategy focuses heavily on the development of domestic resources and cites the potential for job creation, climate action, and infrastructure development as a by-product of developing domestic capabilities in the critical minerals sector. The strategy will work in alignment with the Canada Investment Act, an initiative which also seeks to reduce reliance on foreign critical mineral inputs and promote domestic capacity throughout the supply chain. 

It was also announced that the government has pledged to review the permitting process with an eye on cutting the time required to bring mines online by avoiding duplication and ensuring early indigenous consultation and engagement.

The strategy to promote domestic critical minerals capacity includes the setting up of a Strategic Innovation Fund (SIF) aimed at accelerating project development throughout the supply chain via improving regulatory and permitting processes; a 30% Critical Mineral Exploration tax credit to support exploration expenses; funding for critical minerals R&D, and a large number of other financial incentives aimed across the upstream and downstream of the supply chain.

Canada is a significant player in the mining sector, with large-scale mining operations for many critical minerals, as well as not-yet-exploited resources of others. While it remains to be seen how the long-term effects of this strategy will manifest, its implementation coupled with supplementary initiatives such as the Canada Investment Act, show an economy determined to position itself as a world leader in critical materials.