Transport Canada undertook efforts to modernize regulations under the Canadian Navigable Waters Act. PDAC supports many of Transport Canada’s proposed updates and provided additional recommendations to help reduce regulatory burdens and clarify existing processes, including: clearly defining activities and impacts, exclusion of smaller waterbodies, and coordinated federal processes.
PDAC adamantly supports efforts to align provincial and federal approvals processes, enabling proponents to undertake more efficient, clear, and streamlined permitting processes for major projects.
Whether this alignment is achieved through substitution or harmonization, all levels of agreement processes must be well-defined before application within project approvals. Uniform application of clear processes across all proposed projects will ensure predictability for proponents, rightsholders, and stakeholders, and prevent delays stemming from government-to-government co-operation agreement negotiations. Such processes must also consider:
Abundant in natural resources, equipped with unique expertise and infrastructure, and outperforming most high-income countries in environmental protection, Canada is well-positioned to meet the $770 billion critical mineral demand of 2040. However, with an estimated 27 years required to take mines from discovery to production – the third slowest in the world, and more than 15 years of that timeline spent permitting – Canada is falling far short of its potential.
On August 26th, PDAC submitted information to various departments and agencies within the Government of Canada to recommend efficiency measures for the regulation and administration of the following Acts: Impact Assessment, Species at Risk, Migratory Birds, Fisheries, Canada Navigable Waters, Competition, Investment Canada, and Canada Transportation. Act-specific recommendations are in addition to the broader need to eliminate duplicative processes and jurisdictional overreach and ensure legal certainty for proponents.
PDAC supports the Act’s goal of reducing federal barriers to the movement of goods and services in Canada. This objective in mind, we are concerned about a proposed change from the Canadian Securities Administrators (CSA) to National Instrument 43-101 (NI 43-101) that would require provincially designated professionals to acquire an additional 5 years of experience before they can act as a Qualified Person for federal disclosures. PDAC recommends that the Act be applied to ensure that no 5-year waiting period is imposed on accredited professionals and to recognize the authority of governing provincial and territorial associations in determining who may act as a qualified person.
Recommendation 1: Extend the Mineral Exploration Tax Credit (METC) for a minimum of 10 years until March 2035, with an option to renew the credit for an additional 10 years at the midway point (i.e. in 2030) to protect Canadian competitiveness and provide market certainty for industry and investors.
Recommendation 2: Eliminate the gap in flow-through share (FTS) eligibility between the Canadian Exploration Expense (CEE) and Canadian Development Expense (CDE) categories by “expanding eligible activities under CEE to include the costs of technical studies, such as engineering, economic and feasibility studies required to establish mineral reserves and make mine development decisions”, in line with the commitment outlined by the federal government.
Recommendation 3: Modify the Clean Technology Manufacturing Investment Tax Credit (CTM-ITC) by lowering the eligibility threshold from 90% to 50% production of qualified materials, and by including “critical mineral mine development expenses for brownfield sites, while expanding the list of priority critical minerals,” in line with the commitment outlined by the federal government.
Recommendation 4: Index the capital gains tax treatment of FTS to the top federal income tax bracket (i.e. $253,414 in 2025) so that individuals with income below this bracket pay capital gains based on the purchase price of securities versus the current nil cost base method in order to expand the pool of viable Canadian FTS investors.
Recommendation 5: Significantly increase Geological Survey of Canada funding to develop comprehensive mineral potential models using both traditional and Artificial Intelligence (AI) applications to expand access of public geoscience data and integration in land management processes to accelerate discoveries and reduce development timelines for new mines.
On June 12, 2025, the Canadian Securities Administrators (CSA) published proposed amendments to NI 43-101, its Companion Policy (CP 43-101), and Form 43-101F1.
PDAC is concerned that the proposed amendments call into question the spirit of NI 43-101 and the potential impacts the proposed changes may have on the competitiveness of Canadian issuers.
In our view, the volume and scope of the proposed amendments are extensive, and rather than streamlining the instrument, they are likely to lead to materially higher compliance costs for public issuers without delivering a corresponding benefit to investor protection.
PDAC sent an open letter to CSA leadership highlighting key concerns in advance of a more detailed response during the public consultation.
Government business has come to a standstill under Parliament’s prorogation, prompting the Prospectors and Developers Association of Canada (PDAC) to sound the alarm over the critical issues facing Canada’s mineral sector. Chief among these is the Mineral Exploration Tax Credit (METC), which is set to expire in March.
Since its introduction in 2000, the METC has been indispensable to mineral exploration across the country—generating more than $20 billion in equity financing, creating jobs, supporting remote and Indigenous communities, and enabling major discoveries that feed into Canada’s broader mining ecosystem. The METC does not require any direct outlay of public funds and stands as one of the most productive federal government programs in existence.
PDAC, which works closely with all political parties to advance the industry’s interests, urgently calls on all members of Parliament to renew the METC. With exploration investment already in decline, allowing the tax credit to lapse would undermine every segment of Canada’s mineral sector—from coast to coast to coast. Parliament must also pass the Clean Tech Manufacturing Investment Tax Credit into law and reject any increase to the capital gains inclusion rate. Taking swift action on these measures is crucial to safeguarding Canada’s competitiveness, supporting well-paying jobs, and ensuring the long-term resilience of our mineral exploration and development sector.
The Consolidated Mining Standard Initiative (CMSI) is a collaboration between The Copper Mark, ICMM, Mining Association of Canada (MAC) and World Gold Council (WGC) to consolidate their different voluntary responsible mining standards into one global standard.
For the first public consultation period the CMSI solicited comments on the draft standard, assurance process, reporting and claims policy, and governance model.
Recommendation 1: Renew the Mineral Exploration Tax Credit (METC) and the Critical Mineral Exploration Tax Credit (CMETC) for a minimum of 5 years until March 2030, thereby aligning availability of these two cooperative incentives.
Recommendation 2: Adjust the capital gains tax treatment for flow-through shares (FTS) to reflect the issue price of the security versus the current nil cost base approach, to eliminate phantom capital gains and expand FTS participation by a broader base of Canadian investors.
Recommendation 3: Close the gap in FTS eligibility between the Canadian Exploration Expense (CEE) and Canadian Development Expense (CDE) categories, to ensure funds can be used towards the scoping and assessment work required to establish mineral reserves and make mine development decisions.
Recommendation 4: Create a mechanism that can extend FTS expenditure timelines in response to acute, unforeseen situations (e.g. wildfires, floods) and can apply to a specific company, region or nationally to mitigate unintended tax consequences arising for companies and individuals.
Recommendation 5: Explore ways to leverage successful projects and recapitalize the Critical Mineral Infrastructure Fund (CMIF) beyond the initial $1.5 billion commitment.
Recommendation 6: Substantially increase funding to the Geological Survey of Canada to develop comprehensive mineral potential models to bolster domestic competitiveness, accelerate mineral discoveries, and reduce development timelines for new mines in Canada.
Recommendation 7: Expedite development of a one-window access point for the Indigenous Loan Guarantee Program, and other government initiatives that contribute to Indigenous participation in the mineral industry and drive economic and capacity growth
The Canadian Ombudsperson for Responsible Enterprise (CORE) was established in 2018 as an independent office by the Canadian government. Its mandate is to promote corporate responsibility and uphold human rights standards among Canadian companies operating abroad in the garment, mining, and oil and gas sectors. The first five-year term of the office spanned from April 2019 to 2024.
As part of the Standing Committee on International Trade's report titled Canadian Mining and Mineral Exploration Firms Operating Abroad: Impacts on the Natural Environment and Human Rights, tabled in the House of Commons on September 18, 2023, Global Affairs Canada was tasked with conducting a review of CORE.
As a key stakeholder since the inception of CORE, PDAC was invited to provide input on the office's process and efficiency. Our comments are outlined herein.
The Impact Assessment Agency of Canada has introduced a potential new mechanism under the Impact Assessment Act entitled Indigenous co-administration agreements. Such agreements would seek to enable Canada and Indigenous governing bodies or other eligible entities to formally share decision-making at key points throughout the federal impact assessment process.
PDAC recognizes the significant efforts from IAAC and the Circle of Experts in developing this discussion paper, and greatly appreciates the opportunity to provide comment through the lens of industry’s decades of project development experience and close collaboration with Indigenous Peoples.
There are several fundamental issues which will impede the successful application of co-administration agreements as they are outlined in the discussion paper, including overlapping territories, inconsistent and unpredictable processes, isolation of other jurisdictions, and lack of capacity. PDAC recommends careful consideration of these challenges in the creation of a co-administration agreement framework. The primary role and goal of the federal government should be to support the direct engagement that has been and will continue to occur between Indigenous groups and proponents collaborating on impact and environmental project assessments.
Canadians are seeking environmentally-friendly products and services due to concerns about the environment and climate change. However, misleading environmental ads and claims, known as greenwashing, can mislead consumers and hinder competition and innovation.
Bill C 59 - The Fall Economic Statement Implementation Act, 2023 took effect on June 20, 2024, which included changes to the Competition Act specifically to target greenwashing. Businesses are now required to have testing or substantiation, with internationally recognized methodology, to support certain environmental claims.
The Competition Bureau is assessing the impact of these requirements. It expects to provide guidance that will offer transparency and predictability for the business and the legal communities in the enforcement of the law. On July 22, 2024, the Competition Bureau launched a public consultation on these new provisions aimed at greenwashing, which will inform its future enforcement guidance about environmental claims.
The Impact Assessment Act’s Physical Activities Regulations, commonly known as the Project List, was required for review in fall 2024 as part of a five year prescribed review period. The Project List identifies the types of activities that are considered “designated projects” and therefore subject to an Impact Assessment.
Mining projects currently make up 50% of all projects subject to Impact Assessments through the Act; mines and minerals specifically are represented 2.4 times more than the next highest sector (oil and gas). Despite Canada’s critical mineral alliances and national strategy, and the 388 new mines needed by 2030 to meet international EV pledges, new mine development continues to be disproportionately affected, and impeded, by the IA process. PDAC provided recommendations to reduce the over-representation of mines and minerals in the IA designation process, and to support a process that respects provincial and territorial jurisdiction, realistically reflects the potential for adverse project effects in federal jurisdiction, and does not overburden proponents, Indigenous communities, and government resources.
In August 2024, Finance Canada published for consultation various legislative proposals to address Budget 2024 measures, including two proposals to amend the legislation related to tax incentives that support the mineral sector.
One proposal aims to offset an increase in Alternative Minimum Tax (AMT) and the capital gains inclusion rate by amending parts of the AMT. Specifically, the key proposed change eliminates (For AMT calculation) the requirement to add back deductions obtained by purchasing flow-through shares (FTS).
The second proposal amends the legislation related to the Clean Technology Manufacturing Investment Tax Credit (CTM-ITC) – a new incentive that provides a refundable 30% tax credit for capital investments in various eligible activities to extract and process six qualified materials that are essential for clean technologies (Copper, nickel, lithium, cobalt, graphite and rare earth elements). Under the original legislation, qualified materials should account for at least 90% of production to be eligible for the credit. PDAC and other industry stakeholders recommended that due to the polymetallic nature of deposits in Canada, such a high threshold would preclude the vast majority of projects from receiving the credit, and Finance responded by reducing the threshold to only 50% of production.
On June 19th, 2024, at the recommendation of the Minister of Environment and Climate Change, the Government of Canada began work on an emergency order to address perceived threats to Boreal Caribou populations in Val-d’Or, Charlevoix, and Pipmuacan, Quebec. A discussion paper on the Proposed Scope of the order was released on August 7th, 2024, and outlined proposed provisional areas for protection and prohibitions which would apply to those areas.
PDAC identified the risk this proposed scope posed to the mineral exploration and development sector in some of Quebec’s most prolific mining regions, including investment uncertainty, lost economic opportunities, and infrastructure challenges. The discussion paper and subsequent meetings with ECCC further highlighted misconceptions about industry and jurisdictional overreach which needed to be addressed. PDAC responded to the discussion paper on September 13th, 2024.
The International Sustainability Standards Board (ISSB), created by the International Financial Reporting Standards (IFRS) Foundation, aims to establish interoperability between global sustainability disclosures. The ISSB's framework provides an internationally consistent approach to ESG reporting, which is beneficial for cross-border comparisons. The Canadian Sustainability Standards Board (CSSB) was established to help develop and oversee ISSB implementation in Canada and proposed for public comment CSDS 1 (Establishes general requirements for the disclosure of material sustainability-related financial information) and CSDS 2: (Focuses on disclosure of material information on critical climate-related risks and opportunities)
PDAC recognizes that the commitment to align with ISSB’s IFRS S1 and IFRS S2 is a big step in the global financial reporting ecosystem. However, it is important to ensure that adopting the standard doesn't inadvertently create undue burdens or hinder the ability of smaller entities to represent their financial positions accurately.
As part of its strategy to pursue the low carbon economy and achieve national net-zero goals for Canada, in Budget 2023 the Federal Government announced various tax incentives related to a range of emission reduction technologies.
One incentive that is relevant to the mineral sector is the Clean Technology Manufacturing Investment Tax Credit (CTM-ITC), which will provide a refundable 30% tax credit for capital investment in various eligible activities to extract and process six critical minerals that are essential for these clean technologies – copper, nickel, lithium, cobalt, graphite and rare earth elements.
On December 20, 2023, Finance Canada published the draft legislation for the CTM-ITC, on which PDAC responded with a commentary letter to convey some concerns regarding the proposed legislation and to improve the effectiveness of this incentive.
On June 13, 2023, Bill S-5, Strengthening Environmental Protection for a Healthier Canada Act, received royal assent. The Bill outlined amendments to the Canadian Environmental Protection Act which was enacted in 1999. The goal is to contribute to sustainable development through pollution prevention and to protect the environment, human life and health from the risks associated with toxic substances.
The Government is developing an implementation framework “the Framework” to set out how the right to a healthy environment will be considered in administering the Canadian Environmental Protection Act. These elements include the scope and limits of the right, related principles as well as procedural duties.
PDAC addressed a written submission to the Minister of Environment and Climate Change and the Minister of Health to provide perspective on the definition of healthy environments in Canada with a particular focus on the context of early-stage mineral exploration and development projects.
The Government of Canada created the “2030 Emissions Reduction Plan” to describe steps required to reduce emissions across the entire economy to reach our emissions reduction target of 30 percent below 2005 levels by 2030 and put us on a path to achieve net-zero emissions by 2050. This complements the Pan-Canadian Framework on Clean Growth and Climate Change, the Canadian Net-Zero Emissions Accountability Act, the Clean Fuel Standard and Canada’s international obligations under the Paris Agreement.
The government released a 2023 Progress Report on the 2030 Emissions Reduction Plan and invited Canadians to share their views on Canada's Climate Future through a virtual public engagement platform. The input gathered from this process will be one of several factors considered when setting the 2035 target. The implications of the 2035 target may manifest through taxation, capital markets, regulatory affairs, and access to talent, or other avenues.
PDAC encouraged their members to participate in the virtual engagement platform and submitted a commentary letter outlining the relationship between critical mineral demand through 2035 and emission projections over the same period.
As part of NRCan’s commitment to triennial updates to Canada’s Critical Minerals List, a consultation was initiated regarding the criteria used to develop and update the List. The proposed changes to the criteria, intended to clarify the original assessment of minerals for criticality, would require that a mineral be:
While meeting both of the following mandatory criteria:
In addition to the presented submission, PDAC participated in virtual consultation engagements with NRCan. It should be noted that the consultation’s scope was limited to the Critical Minerals List criteria; commentary on the inclusion of specific minerals on the List or as part of funding programs or tax incentives has therefore not been provided.