Canada’s mining sector is calling for urgent action to accelerate mineral development, cut red tape, and expand Indigenous partnerships to anchor the country’s economic resilience in a time of global uncertainty.
Speaking to the Greater Vancouver Board of Trade, Pierre Gratton, President and CEO of the Mining Association of Canada (MAC), warned that Canada is falling behind competitors even as demand surges for the metals and minerals needed for clean energy, digital infrastructure, defence and manufacturing.
The mining sector has become “a cornerstone of economic growth” and is “one of the safest bets in the country,” positioned to expand even as global markets falter because “everyone needs our products,” said Gratton.
Mining contributed $117 billion to Canada’s GDP last year and supports more than 700,000 direct and indirect jobs, including over 12,000 Indigenous employees, according to the MAC snapshot of the sector.
But Gratton warned that Canada is not moving quickly enough to capture the full economic potential of its geology, even as allies race to secure critical mineral supply chains.
A global race for resource security
To explain the urgency, Gratton pointed to a more volatile world shaped by pandemic disruptions, trade battles, rising inflation and war from Europe to the Middle East.
He said these forces have “undermined the rules-based order” that has long bolstered Canadian prosperity and have pushed nations into a scramble for resource security.
In this new reality, he said, minerals and metals are “instruments of national strategy and security.”
“Demand for critical minerals will support growing demand for mined products for decades,” Gratton said, noting that rising defence spending adds to that pressure. “It’s a sad comment, perhaps, but war needs mining.”
Canada has no shortage of promising projects in motion. Copper expansions in British Columbia, battery mineral developments in Ontario and Saskatchewan, and the billion-dollar Jansen potash mine set to enter production in 2027 are helping position the country as a crucial supplier.
However, he cautioned that global demand is surging faster than Canada is building. “With demand for critical minerals expected to grow by at least 71 percent by 2030, we need to mine more…much more,” Gratton said.
Tax credit flaws blocking major investments
Even as Canada’s mineral potential gains international attention, Gratton stressed that its investment landscape remains weighed down by outdated tax rules and lengthy permitting delays that undermine competitiveness.
A prime example is the Clean Technology Manufacturing Investment Tax Credit. Intended to stimulate critical mineral development, the credit currently only applies if 90 percent of a project’s value comes from a narrow list of eligible minerals like, nickel, cobalt and a few others.
Gratton explained, “copper is never found in this country in concentrations of that magnitude,” and most copper deposits include significant amounts of other metals such as gold, silver and zinc, which are not fully recognized under the policy.
“If the point is to stimulate investment into copper mining, it’s not going to work.”
He said Ottawa has already recognized the flaw and committed to lowering the threshold to 50 percent but has yet to enact the change, even as major projects like Newmont’s $3-billion Red Chris mine expansion in BC hinge on it. “They’re counting on this,” he said.
Gratton added that Canada must also update the tax credit system to include underground development costs, such as tunnelling and ventilation, because those early expenses determine whether mines advance to construction.
Without such adjustments, he said, “capital will continue shifting to mining nations like Australia, Chile and the U.S.” where tax conditions are already more attractive.
Permitting delays remain the other major impediment. Gratton called for targeted reforms to the federal Impact Assessment Act, arguing that federal reviews should focus on projects with genuine potential for significant federal impacts rather than stalling routine expansions at existing mines.
“Reducing project approval timelines is essential if we’re serious about meeting Canada’s climate change, supply chain and critical minerals goals,” he said.
Indigenous partnerships power Canada’s competitiveness
In an interview with Resource Works, Gratton said Canada’s competitive advantage has long depended on Indigenous partnership. Mining is the largest private-sector employer of Indigenous people on a proportional basis and has more than 500 active agreements with Indigenous Nations across the country.
Gratton said those relationships must evolve alongside the industry’s growth. “Think relationship, not transaction,” he said. “Get in early. Get to understand the needs and wants of indigenous communities.”
Gratton said the federal Indigenous Loan Guarantee Program should be expanded to support ownership in infrastructure that serves mines, such as power transmission systems and road networks, which offer steady revenue regardless of commodity cycles.
“Even when commodities are low, the mines are still operating. They’re still paying for power. They’re still using the roads,” he said. “There’s a steady stream of income.”
He added that procurement and business development opportunities tied to mining supply chains can help ensure Indigenous prosperity throughout the life of a project, not only during boom markets.
A people crisis threatens expansion
While geology and partnerships are central to Canada’s future, Gratton warned that workforce shortages could become its greatest limiting factor. The labour market is tight, unemployment in mining remains below 3.5 percent, and labour demand has climbed more than 40 percent since January 2022.
Yet university enrolment in mining engineering has fallen by more than half since 2015, a trend he called unsustainable. “We face a people crisis,” he said. “We don’t have enough people.”
Gratton urged federal support for innovative training delivery in northern and remote communities, where “the mine is the classroom,” and where Indigenous and youth employment can grow rapidly if skilled trades programs are offered close to home.
He also called for immigration pathways that prioritize trades urgently needed in mine construction and operations.
“Let’s move swiftly. Let’s get it done.”
Despite the challenges, Gratton said Canada’s mining companies lead the world in responsible practices, including environmental performance and Indigenous inclusion, through the home-grown Towards Sustainable Mining standard. Public confidence in mining has reached its highest level in decades, with an 82 percent favourability rating.
“In an era of geopolitical uncertainty and trade disputes, that reputation makes our minerals more valuable than ever,” he added.
Gratton reminded business leaders that Canada has both a rare opportunity and a narrow window, when it comes to the mining sector.
“We have a once-in-a-generation opportunity to create shared prosperity from coast to coast to coast but that window won’t stay open forever,” he said. “Let’s move swiftly. Let’s get it done.”
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