The Ontario government is launching a new $500 million Critical Minerals Processing Fund to attract and support mineral capacity in Ontario.
Ontario finance minister Peter Bethlenfalvy made the announcement recently as part of the Ontario budget speech. He said: “As the government accelerates the development of critical minerals projects in Ontario, it is also working to attract historic investments to support critical mineral processing capacity here at home, to help ensure that minerals mined in Ontario will be processed in Ontario, by Ontario workers,”
At the budget announcement, Bethlenfalyy continued: “Through the fund, Ontario will provide strategic financial support for projects that will accelerate the province’s critical minerals processing capacity, offering a stable supply of critical minerals mined in Ontario, to be used in the province’s broader manufacturing base, while also capitalizing on growing global demand. The CMPF will capture greater economic value from the province’s mineral resources, by helping to ensure existing mineral processing facilities are fully utilized, as well as supporting the construction of new processing facilities in Ontario.”
He concluded: “Instead of being extracted only to be shipped to other jurisdictions for higher value-added processing, minerals mined in Ontario will be refined in Ontario. This will help create new opportunities for workers in Indigenous communities and Northern hubs such as Thunder Bay, Sault Ste. Marie, Sudbury, North Bay and Timmins. By enhancing Ontario’s processing capacity, the province can attract greater private capital investment and speed up key strategic projects across the critical minerals supply chain. A fully integrated supply chain will improve Ontario’s standing as a global leader in critical minerals, making the province a more attractive jurisdiction for investment, and a secure source of supply of critical minerals.”
The provincial government has also doubled down on supporting Indigenous partnerships in capitalizing on new critical minerals. The government announced in the new budget that it will be re-launching its provincial Indigenous loan guarantee program, which will include Indigenous partnerships involving critical minerals.
The budget reads: “Our government is also supporting generational Indigenous economic opportunities through Indigenous equity partnerships in transformational projects by increasing the maximum loans that can be guaranteed from $1 billion to $3 billion to increase opportunities for Indigenous communities to invest in our growing energy system, expanding the Indigenous Participation Fund by $70 million, and by providing $10 million for new scholarship opportunities for First Nation students interested in pursuing a career in resource development.”
The budget also mentioned other ongoing commitments to improve the mining climate in Ontario, including additional funds to extend the Ontario Junior Exploration Program (OJEP), which helps junior mining companies cover eligible costs for critical and precious mineral exploration and development. The budget also mentioned past funding for the Critical Minerals Innovation Fund (CMIF), as well as the welcome addition of Frontier Lithium’s critical mineral refinery in Thunder Bay.
Finally, the budget mentioned in November 2024 the government introduced a new regulation under the Mining Act that would make it easier to recover residual metals and minerals from mine waste that could be found at operating, closed or abandoned mine sites. Ontario will become the first jurisdiction in Canada to enable a dedicated regulatory pathway to recover residual minerals from mine waste once the new regulation comes into force on July 1, 2025.
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