Canada has the tools to turn mineral wealth into economic strength

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Approval timelines and investment certainty will determine if Canada can capture the benefits of rising global mineral demand

Surging metals prices and renewed investor interest have given Canada a generational opportunity to turn its mineral wealth into long-term economic strength. Whether that opportunity is captured, industry leaders say, will depend less on global markets than on domestic policy choices.

In a more contested global economy, control over mineral supply chains has become a question of economic sovereignty. The test for Canada is whether its regulatory and investment framework supports development or undermines its ability to build a reliable domestic supply.

Canada is the global centre for mineral finance as well as one of the world’s most mineral-rich countries. The Toronto Stock Exchange and TSX Venture Exchange are the world’s leading platforms for exploration and mining companies, hosting about 40 per cent of publicly listed mining firms worldwide.

That strength was underscored in 2025, with the mining and mineral exploration sector the clear front-runner in equity financings across Canadian exchanges. Canada’s commodity-heavy stock market posted its strongest annual performance since 2009 on the back of rising metals prices, including especially sharp gains in precious metals. Gold and silver rose strongly amid global uncertainty, injecting a much-needed boost to financing conditions and renewing investor interest across the mineral sector.

“Global markets may be favourable, but Canada’s success will ultimately depend on its own policy choices,” says Karen Rees, president of the Prospectors & Developers Association of Canada (PDAC). “The question is whether we anchor investment here or allow capital to flow to jurisdictions that provide greater certainty and move faster.”

Ms. Rees says access to capital for early-stage mineral exploration depends above all on how quickly and predictably projects can move through the regulatory system. Junior companies rely on equity markets to fund drilling and field work over multi-year horizons, and investors need confidence that approvals will not become an open-ended risk. When timelines stretch out or rules are uncertain, investment slows, projects are deferred and Canada’s future production is put at risk.

Governments control approval timelines for exploration and development, and PDAC says shortening those timelines is essential if Canada is to attract investment and sustain future production.

“A competitive regulatory system is not about lowering standards,” notes Ms. Rees. “It is about clarity, co-ordination and timelines that allow projects to advance responsibly and efficiently.”

Investment incentives, including Canada’s flow-through share system, are also entirely within federal control. Under the system, companies can renounce eligible exploration expenses to investors, who can then claim tax deductions.

Two federal tax credits are central to Canada’s mineral exploration financing system. The Mineral Exploration Tax Credit (METC) provides a 15 per cent credit on specified exploration expenses renounced to flow-through share investors and has been renewed on a short-term basis numerous times, most recently through a two-year extension in Budget 2025. The Critical Mineral Exploration Tax Credit (CMETC), introduced in 2022, increases the credit rate to 30 per cent for certain critical minerals and is scheduled to run until 2027.

Federal evaluations and industry data show that those credits, together with the flow-through share system, finance most of the grassroots mineral exploration in Canada and generate several dollars of private investment for every dollar of federal revenue forgone. PDAC says this track record is why the credits are central to Canada’s mineral discovery pipeline.

“The exploration tax credits are a key differentiator for Canada, and we need to lock them in if we want to maximize their impact on discovery, investment and economic growth,” says Ms. Rees.

Critical minerals remain a major focus of federal policy, with Canada positioning itself as a reliable supplier for electrification, modern technologies, defence and supply chain security. Ms. Rees notes that PDAC supports efforts to strengthen investment certainty in this area and stresses that critical mineral discoveries depend on a healthy and diversified exploration sector.

In practice, critical minerals are often identified through exploration programs targeting precious metals, which sustain companies, build technical expertise and support ongoing activity in the field.

“Critical minerals are part of a broader exploration landscape,” says Ms. Rees. “Many of these showings are found alongside precious metals or through the same exploration campaigns.”

PDAC has cautioned that narrowing policy support too tightly around a limited set of minerals risks weakening the exploration pipeline that underpins discovery, supply security and competitiveness.

“Canada’s strength is the full mineral value chain,” she says. “From precious metals to base metals, all minerals contribute to economic growth, innovation and resilient supply chains.”

The stakes extend beyond markets and balance sheets. Mineral exploration and development support well-paying jobs, regional economic activity and sustained opportunities in rural, remote and northern communities. The industry is proportionally the largest private-sector employer of Indigenous Peoples in Canada, and PDAC has emphasized the importance of advancing meaningful Indigenous participation and partnerships.

“This is a moment for Canada to back itself,” says Ms. Rees. “If we reduce delays and provide stable policy support, we can strengthen our economy and turn mineral wealth into lasting prosperity.”

The global mineral industry will convene in Toronto for PDAC 2026, March 1 to 4 at the Metro Toronto Convention Centre, bringing together industry leaders, investors, financial services professionals and government officials to discuss the opportunities and policy choices that will determine how Canada turns mineral wealth into long-term economic strength.

Advertising feature produced by Randall Anthony Communications with the Prospectors & Developers Association of Canada. The Globe’s editorial department was not involved.