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Canada’s Liberal Party has secured a minority government on 28 April 2025 under Prime Minister Mark Carney, triggering a wave of pro-mining policy commitments. Key measures include an expanded Critical Minerals Exploration Tax Credit, accelerated permitting reforms and the launch of the First and Last Mile Fund (FLMF) aimed at connecting remote projects to national infrastructure networks. Carney’s government also aims to increase recycling of metals and minerals within Canada for environmental and protectionist reasons.
Why does this matter?
The Liberal Party win represents a significant strategic shift in Canada’s industrial and resource policy. With global demand for critical minerals - such as lithium, aluminium and graphite - rising sharply, Canada is positioning itself as a secure, low-emissions source aligned with Western clean energy and security priorities. The FLMF aims to resolve infrastructure bottlenecks that have historically hindered projects in remote regions. Against a backdrop of growing US protectionism, Canadian mining is being recast as a stabilising economic force. For mining companies, this presents a clear opportunity to access incentives, de-risk operations and contribute to resilient, ESG-aligned supply chains.
For companies such as Rio Tinto, the reforms strengthen the business case for focused expansion in Canada and continued investment in the current mining ventures of iron ore, scandium and aluminium, listed in the 34 critical metals that Canada is prioritising. These critical metals are essential for future sustainability, from food security to green technology.
The Carney administration has also introduced a new emissions reduction framework tailored to industrial emitters, including mining. This includes an output-based pricing system (OBPS) that sets sector-specific benchmarks while protecting market competitiveness. The policy is designed to prevent carbon leakage - mining operations moving to other countries due emissions tax - while driving decarbonisation.
In parallel, the expanded Critical Minerals Exploration Tax Credit now prioritises several minerals essential for clean technology and defence applications:
- Antimony - critical for military equipment, flame retardants and solar glass (forecast 7% annual demand growth to 2030)
- Aluminium - key for lightweight construction and electrical transmission
- Cobalt - essential for EV batteries and energy storage
Other metals include Gallium, Germanium, Graphite and Vanadium. Canada’s approach aims to reduce reliance on foreign suppliers by 30% by 2030, in line with its national security and clean energy objectives. Natural Resources Canada indicate that from 2010 to 2022, emissions per tonne of copper produced dropped by 18%, showing that environmental efficiency can advance alongside continued production.
Canada’s policy environment is shifting from intent to implementation. Operators with projects aligned to priority themes - critical minerals and carbon efficiency –are well placed to benefit from expedited pathways and federal support. The new government policies are expected to bring new growth to mining and support indigenous project involvement. As bipartisan support converges around mining-led industrial growth, companies that act early will shape Canada’s role in the future global resource economy.