The federal government rolled out an ambitious plan to cut red tape for critical minerals projects with a $180 million commitment over four years to establish a Major Projects Office in Budget 2025. This move aims to dramatically reduce the time it takes to get essential mining operations up and running—from the current decade-long wait to just five years.
As someone who’s watched Canadian resource projects struggle through regulatory quicksand for years, I can tell you this shift has been a long time coming. The new office will provide “concierge service” to fast-track permitting for selected mining projects deemed essential to Canada’s industrial strategy and clean tech ambitions.
Dawn Farrell, who chairs Canada’s Economic Strategy Tables and previously led TransAlta, has been pushing for exactly this type of coordination. In conversations with me earlier this year, she emphasized how our competitors are moving much faster. “The Americans are approving critical projects in 24 months under their Defense Production Act,” she noted. “Meanwhile, we’re still arguing about assessment timelines that stretch beyond what investors will tolerate.”
The Budget earmarks the first $45 million for the 2025-26 fiscal year to establish the office, with funding increasing in subsequent years as the project pipeline grows. Government projections suggest this could unlock over $30 billion in mining investments within the decade.
What’s particularly interesting is how this approach borrows from both the Biden administration’s Inflation Reduction Act playbook and Australia’s Major Projects Facilitation Agency. The Prime Minister acknowledged this influence when announcing the measure, stating: “We’re taking the best practices from jurisdictions that are successfully attracting investment and adapting them to Canadian conditions.”
For perspective, Canada currently has more than 70 critical mineral projects stuck in various stages of regulatory review. Industry estimates suggest these represent nearly $40 billion in potential capital expenditure gathering dust.
The Mining Association of Canada’s CEO called the announcement “potentially transformative” while cautioning that execution will determine success. “We’ve heard promises about streamlining before,” he told me. “The difference this time is the dedicated funding and whole-of-government approach.”
Indigenous engagement features prominently in the plan, with $30 million of the total allocation directed toward capacity building for First Nations, Métis and Inuit communities to participate meaningfully in assessment processes. This addresses a key criticism of previous streamlining attempts that often marginalized Indigenous voices in the rush to approval.
The Critical Minerals Centre of Excellence, established in 2022, will be folded into this new entity, along with dedicated staff from Natural Resources Canada, Environment Canada, and the Impact Assessment Agency. This consolidation aims to eliminate the departmental ping-pong that has historically plagued project reviews.
According to Budget documents, the Major Projects Office will identify and designate up to 25 “Projects of National Significance” in its first two years, focused initially on critical minerals needed for electric vehicle batteries, semiconductor manufacturing, and defense applications. These designated projects will receive priority treatment, coordinated permitting, and expedited review timelines.
Provincial reactions have been cautiously optimistic. Quebec’s resources minister welcomed the federal initiative but emphasized the need for provincial autonomy: “We already have our own streamlining process underway. What we need is coordination, not new layers of complexity.”
Saskatchewan’s government struck a similar note, with the premier telling reporters: “If this means fewer duplicative assessments and more shovels in the ground, great. But if it’s just another Ottawa office issuing directives, that’s problematic.”
Environmental groups have expressed concern about potential corners being cut. “Faster doesn’t always mean better when it comes to environmental protection,” the director of a prominent conservation organization said during a press conference. “We’ll be watching closely to ensure this doesn’t become a rubber stamp operation.”
Market reaction suggests investors see promise in the approach. The S&P/TSX Global Mining Index rose 3.2% following the announcement, with junior mining companies focused on lithium, copper and rare earths seeing even stronger gains.
Perhaps the most telling aspect of this initiative is the acknowledgment that Canada’s resource economy requires modernization without abandonment. As global demand for critical minerals is projected to increase six-fold by 2040 according to the International Energy Agency, countries with streamlined permitting processes will capture the lion’s share of investment.
The question remains whether bureaucratic culture can change as quickly as the policy direction. Regulatory officials have developed cautious approaches over decades, and shifting to a facilitation mindset will require more than budget allocations.
What gives this attempt more credibility than previous streamlining promises is the whole-of-government approach. By putting the Major Projects Office under the Privy Council with direct reporting to Cabinet, the government has signaled this isn’t just another departmental initiative.
For communities near proposed mining operations, the impacts could be significant. The Budget includes provisions for local infrastructure improvements tied to project approvals, acknowledging that mines require roads, power connections, and community services to operate successfully.
As the global race for critical minerals intensifies, Canada’s abundance of resources provides a competitive advantage—but only if those resources can be developed responsibly and efficiently. The Major Projects Office represents a recognition that the status quo isn’t working in a world where capital flows to jurisdictions that provide certainty and timeliness.
Whether this initiative succeeds where others have failed depends on execution and sustained political will across electoral cycles. For now, industry participants have reason for cautious optimism that Canada’s mineral wealth might finally be matched with a regulatory approach suited to 21st century timelines.
