Canada's biggest infrastructure and resource projects now require Indigenous equity participation to move forward, according to a senior banking executive who says new federal programs have fundamentally altered the investment landscape.
Jonathan Davey, Managing Director of Indigenous and Government Advisory at Scotiabank's Global Banking and Markets division, told the Drumbeats podcast that recent legal and financial reforms have made Indigenous partnerships not just politically necessary but financially compelling for major projects.
Speaking on the Canadian Indigenous investment podcast hosted by Mark Magnacca and Rob Brant, co-chairs of the Canadian Indigenous Investment Summit, Davey described the current deal flow as unprecedented and characterized the shift as a massive transformation in Canadian project development.
Mining projects face new requirements
The transformation particularly affects mining and resource extraction projects. Under the Build Canada Act and through the Major Projects Office, every project of national interest now requires Indigenous participation, according to Davey. Federal permit designation programs can significantly impact project timelines, making early Indigenous engagement critical for mining companies.
For mining investors, this shift represents both a challenge and an opportunity. Traditional barriers that prevented Indigenous communities from accessing capital for equity participation in mining ventures are being systematically dismantled through new federal programs and legal reforms.
Capital access barriers being removed
Historically, Section 89 of the Indian Act created the greatest barrier to capital access for Indigenous communities seeking to invest in major projects, including mining developments. This provision prevented traditional lending against reserve lands, effectively blocking Indigenous groups from leveraging their assets for project finance.
Davey explained on the podcast that practitioners now use leasehold financing structures and investment vehicles to navigate these restrictions, allowing Indigenous communities to participate as equity partners in mining and infrastructure projects.
$10 Billion federal guarantee program
A new $10 billion Indigenous Loan Guarantee Corporation represents the federal government's most significant intervention in Indigenous project finance. The program, combined with provincial loan guarantee schemes, brings institutional lender risk weights close to zero on qualifying transactions, dramatically reducing the cost of capital for mining projects with Indigenous partners.
The First Nations Finance Authority will soon provide low-cost capital directly to Indigenous special purpose vehicles for the first time, following forthcoming amendments to the First Nations Fiscal Management Act.
Beyond financial incentives
Davey told the Drumbeats hosts that the investment case for Indigenous partnerships extends beyond federal financial incentives. Indigenous business acumen, stewardship, and traditional knowledge make these partnerships operationally compelling, not just politically necessary, according to the banking executive.
For mining companies, this means access to traditional ecological knowledge that can improve environmental performance and community relations – factors increasingly important to institutional investors focused on ESG criteria.
International investor interest
The changes particularly target skeptical international investors who have questioned Canada's regulatory environment. Davey, who is Haudenosaunee and a member of the Lower Cayuga Nation, has watched the transformation from inside one of Canada's largest banks.
Speaking on the podcast that focuses on the nexus of Indigenous economic strategies and investment opportunities, the banking executive emphasized that the structures, programs, and federal commitment making Indigenous equity participation financially compelling are operational now. He noted that the necessary practitioners exist and capital is available.
For mining companies evaluating Canadian opportunities, the message delivered on Drumbeats was clear – Indigenous partnerships have evolved from regulatory requirements to competitive advantages in accessing capital and navigating the permitting process.
More information on the Drumbeats podcast is available at www.youtube.com/playlist?list=PLaF8zoB1puVsWYVArR12QMIxYetI5OJnr
More information about the Canadian Indigenous Investment Summit is available here: www.CanadianIndigenousInvestmentSummit.com
March 17, 2026
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