Ontario bets $500M on mineral processing boom

Ontario has officially launched a $500 million Critical Minerals Processing Fund (CMPF) to expand domestic processing capacity and secure the province's position as a global leader in critical minerals , according to reports from NetNewsLedger. The fund, announced in the 2025 Budget and now open for applications, will support projects that increase mineral processing output, build new facilities, and strengthen the end-to-end critical minerals supply chain. It aims to create high-value jobs for Ontario workers, especially in the North.

Invest Ontario will deliver the fund, which is expected to accelerate processing for key minerals like nickel, lithium, copper, graphite, and cobalt. For regions like Thunder Bay, Sudbury, and the vast Ring of Fire, the fund represents a significant new opportunity.

Ontario is seeking to move away from "rip and ship" practices by processing more materials locally, rather than exporting them unrefined. This shift could create new value-added jobs in communities across Northern Ontario and enable greater Indigenous participation in the mining supply chain. The province has also set aside $3.1 billion in loans, guarantees, grants, and scholarships to support Indigenous ownership and partnerships.

"This investment reinforces what we have long known in Greater Sudbury: Ontario's economic future runs through the North. It will accelerate innovation, grow our local economy, and create high-value jobs that support families across our community," Paul Lefebvre, mayor of Greater Sudbury, stated.

Minister of Economic Development, Job Creation and Trade Vic Fedeli emphasized that the fund is about preparing Ontario for long-term leadership in critical sectors. He said: "We're building a complete, made-in-Ontario critical minerals supply chain that will create good-paying jobs and reinforce our position as a global leader."

The fund aligns with new legislation, including the Protect Ontario by Unleashing Our Economy Act and Special Economic Zones Act, aimed at streamlining infrastructure and mining approvals across the North.

By expanding processing, Ontario is also looking to mitigate risks from U.S. tariffs and ensure secure, domestic access to critical materials. Stephen Lecce, Minister of Energy and Mines, commented: "We are finally ending the ripping and shipping of Canada's vast resources. This is about protecting Ontario workers and ensuring 'Made in Canada' is stamped on the minerals we process."

The CMPF has direct implications for Northwestern Ontario's role in the future of Canada's mining industry. With proximity to the Ring of Fire and access to skilled trades and research through Lakehead University and Confederation College, the region could benefit from downstream investments in mineral processing, manufacturing, and export logistics.