Canada Critical Minerals Fund Drives Mining Investment Growth

Canada Strengthens Critical Minerals Strategy

Canada’s 2025 federal budget pledges a C$2 billion sovereign fund for critical minerals to attract global investment. The fund will support equity investments, loan guarantees, and offtake agreements for eligible mining projects. Natural Resources Canada will manage C$50 million over five years to establish the fund, while the First and Last Mile Fund targets near-term project production with C$372 million in support starting 2026.

The budget also expands the Critical Mineral Exploration Tax Credit (CMETC) to 12 additional minerals, including bismuth, indium, and tungsten. These incentives encourage exploration across defense, energy, semiconductor, and clean technology sectors, enhancing Canada’s competitiveness in critical minerals production.

Fiscal Measures and Net-Zero Alignment

The federal government proposes replacing the industrial emissions cap with a new industrial emissions price, aligning mining operations with Canada’s 2050 net-zero goal. Tax incentives for capital spending, such as processing facilities, could drop rates to 0.4%, boosting domestic and allied manufacturing capacity. Meanwhile, C$443 million supports processing technologies, joint investments, and strategic mineral stockpiles.

SuperMetalPrice Commentary:

Canada’s strategy signals strong government commitment to securing critical minerals supply chains. Investors and mining companies should anticipate increased exploration activity, strategic partnerships, and green-aligned processing projects. These measures may reinforce Canada’s position as a key global supplier while supporting national security and industrial sovereignty.