Canada Deploys $3.6 Billion to Accelerate Critical Minerals Development

Canada’s federal government unveiled more than $3.6 billion in new programs and investments at the annual Prospectors & Developers Association of Canada Convention on Monday, targeting the full critical minerals supply chain from exploration to export.

Energy Minister Tim Hodgson formally launched two funds from Prime Minister Mark Carney’s November 2025 budget: the $1.5 billion First and Last Mile Fund, which will finance roads and transmission lines to bring deposits into production, and the $2 billion Critical Minerals Sovereign Fund, set to begin operating this spring. 

The Sovereign Fund gives Ottawa new tools — equity stakes, loan guarantees, and offtake agreements — to accelerate projects to final investment decisions. An additional $165 million went to 22 specific projects, including grid upgrades serving Newmont Corp.‘s Red Chris copper mine and Teck Resources Ltd.‘s copper operations in British Columbia.

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The domestic package accompanied a broader international push. On March 2, Canada secured 30 new partnerships under its Critical Minerals Production Alliance across 12 allied countries, unlocking $12.1 billion in Canadian mining projects and bringing total Alliance-mobilized investment to $18.5 billion. The Alliance aims to reduce Western dependence on Chinese mineral suppliers.

Read: Canada Strikes $12.1 Billion in Critical Minerals Deals, but Experts Question Whether It’s Enough

Hodgson also flagged a separate deal signed during PDAC week: a C$2.6 billion agreement for India to purchase 22 million pounds of uranium from Saskatchewan-based Cameco Corp.

The International Energy Agency has identified Canada as a key alternative to Chinese-dominated supply chains, noting the country operates more than 200 mines producing over 60 minerals and metals, with nearly 140 new mining projects — worth $117.1 billion — planned through 2034.



Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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