Canada has announced a new C$2-billion Critical Minerals Sovereign Fund aimed at accelerating investment in strategic mining projects and strengthening secure supply chains for critical minerals used in defence, clean energy, and advanced technologies.
Unveiled in the 2025 federal budget by Finance Minister François-Philippe Champagne, the fund will be administered by Natural Resources Canada and provide equity investments, loan guarantees, and offtake agreements to help move projects into production. Ottawa will also invest an additional C$50-million over five years to support fund operations.
The budget also includes a new C$371.8-million First and Last Mile Fund to support infrastructure linking mine sites with processing facilities and markets, leveraging up to C$1.5-billion in total support through 2029/30.
Canada is also expanding its Critical Mineral Exploration Tax Credit to include 12 additional minerals, including tungsten, tin, manganese, chromium, and niobium.
The Mining Association of Canada welcomed the measures, calling them a strong commitment to improving Canada’s mining competitiveness, attracting investment, supporting Indigenous partnerships, and reinforcing economic and national security amid growing global demand for critical minerals.
