Hodgson gave further details on the package March 3. (Dhiraj Singh/Bloomberg)
March 3, 2026 11:02 AM, EST
Key Takeaways:
- Canada detailed progress on about C$3.5 billion in critical minerals investments, including C$44 million for a BC transmission line and C$50 million for BC Hydro upgrades.
- The funding aims to speed mine development by improving infrastructure and launching the C$1.5 billion First and Last Mile Fund and C$2 billion Critical Minerals Sovereign Fund.
- The government plans to roll out the sovereign fund in the coming months and introduced an online tool to help companies navigate federal mine permitting.
Canada is moving closer to deploying around C$3.5 billion ($2.6 billion) in investments and programs to accelerate development of critical minerals deposits.
Energy Minister Tim Hodgson gave further details on the package March 3, including C$44 million for upgrades to the Northwest Transmission Line in northern British Columbia, which will help power Newmont Corp.’s Red Chris copper mine expansion. There’s also C$50 million for improvements to BC Hydro’s transmission system to provide more electricity to Teck Resources Ltd.’s copper operations.
Those two projects are part of C$165 million in investments being announced by the government to speed up planning, development and processing capacity of mines.
The minister formally launched the C$1.5 billion First and Last Mile Fund, which was announced in Prime Minister Mark Carney’s November budget. It aims to build roads, transmission lines and other infrastructure to bring mineral deposits into production faster — addressing one of the sector’s biggest bottlenecks.
Hodgson said the C$2 billion Critical Minerals Sovereign Fund — also announced in the budget — will begin operating in the coming months.
The fund will allow the federal government to take equity stakes, offer loan guarantees, and secure supply agreements to help projects reach final investment decisions more quickly.
As well, to help companies navigate Canada’s complex regulatory landscape, Hodgson introduced an online tool to help navigate federal mine permits and approvals.
“Canada has the minerals the world wants, and we are acting with speed, scale and purpose to get them from deposit to market,” the minister said in a statement.
Canada wants to position itself as a reliable alternative to China for critical minerals used in smartphones, laptops, data centers, and other digital-economy technologies. But it faces several obstacles, including remote deposits with little infrastructure, lengthy environmental and Indigenous-consultation requirements, and fierce global competition for capital.
