Ottawa is vowing to cut red tape in the mining industry, to move large resource projects along faster, after facing heavy criticism that Canada risks being left behind in the global scramble to secure critical minerals.
In the federal government’s long-awaited critical minerals strategy unveiled on Friday, Ottawa acknowledged that getting a Canadian critical mineral mine into production can take up to 25 years. That is far slower than other international mining jurisdictions that Canada is competing against, such as Australia, which can move projects along in a fraction of that time.
“We recognize that, although responsible regulations are vital, complex regulatory and permitting processes can hinder the economic competitiveness of the sector and increase investment risk for proponents,” the federal government said in its release.
Top federal government official casts doubt on Ontario’s Ring of Fire mining development
Ottawa says it will attempt to harmonize, co-ordinate, and streamline the permitting and environmental review process, so as to avoid the duplication that often happens when both the Federal and provincial government are involved. At the same time, the Federal government says it remains steadfast in its conviction to respect the rights of Indigenous. Under the constitution, the indigenous must be consulted on resource projects, and in Canada Indigenous groups sometimes lead key environmental studies on resource projects, which gives the Indigenous huge influence.
Earlier this week, Jack Mintz, a well-known Canadian academic, said that Canada risks being left behind in the critical minerals race, unless it reduced the regulatory burden on the mining industry. A key prime example of how slow things can move in Canada is the Ring of Fire in Ontario’s far north. The critical minerals discovery was made in 2006, but at the current pace of permitting, mining, if it ever happens, wouldn’t occur until well into the 2030s.
That is in part because of the permitting morass.
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Currently, in the Ring of Fire, there are three provincial environmental assessments underway that are looking at the impact of a proposed road into the Ring of Fire. There are also three Federal impact assessments ongoing that are roughly similar in scope. In addition, a broader federal environmental study looking at how development will affect the entire region was ordered two years ago. However, it hasn’t started yet, as stakeholders are unable to reach agreement on the terms of the study.
Wyloo Metals Pty Ltd., the Australian resources giant that paid more than half a billion dollars earlier this year for the most promising assets in the Ring of Fire had been particularly vocal about how slow the permitting process was taking, and executives at the company recently met with Canadian politicians to plead for a reduction in red table. Wyloo told Tausi Insider last month that it “would welcome further review of federal government processes to ensure they reflect the urgency for development of critical minerals in Canada.”
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