Ontario launches $3.1-billion critical minerals plan

National Observer

22-05-2025

Ontario's new $3.1-billion plan for a critical minerals supply chain created in partnership with First Nations is raising concerns about weakened environmental protections and inadequate Indigenous consultation.
Announced Wednesday, the provincial initiative will create a 'made-in-Ontario' supply chain and boost First Nations equity, according to the government. But critics say environmental protections and First Nations consultation will be sidelined in the rush to develop the Ring of Fire — a vast region about 500 kilometres northeast of Thunder Bay.
The new provincial funding includes $3 billion in loan guarantees through an expanded First Nations Opportunities Financing Program, $70 million over four years to strengthen First Nations capacity in mining-related regulatory processes, and $10 million in scholarships for First Nations students pursuing careers in resource development.
'Ontario's vast supply of critical minerals are at the heart of our plan to protect Ontario,' said Finance Minister Peter Bethlenfalvy. 'By investing to unlock and process these minerals here in Ontario in partnership with Indigenous communities, we can make Ontario the top global hub of critical mineral development and protect our economy, workers and communities for decades to come.'
The Ford government says the investment will drive economic growth and support reconciliation by creating opportunities for First Nations communities and northern hubs, such as Thunder Bay, Sault Ste. Marie, Sudbury, North Bay, and Timmins.
The supply chain announcement comes just days after the province introduced Bill 5 — legislation to fast-track mining and infrastructure. However, critics warn the legislation will weaken the process of environmental reviews.
The province says its latest critical minerals investment is part of its $230-billion budget, tabled last week — a plan that drew criticism for prioritizing industrial expansion over affordability, climate action, and First Nations rights. With a record $14.6-billion deficit, the budget focuses heavily on countering US President Donald Trump's tariffs.
The Ontario government has launched a $3.1-billion critical minerals plan that includes Indigenous partnership, but critics say environmental protections and First Nations consultation will still be sidelined in the rush to develop the Ring of Fire.
Environmental concerns and First Nations rights
Dayna Scott, professor and York University research chair in environmental law and green economy justice, argues that the government has yet to show how its promises of First Nations prosperity are being fulfilled.
'The Ford government has been struggling to figure out just where the 'Indigenous prosperity' link is in its dream to build a fully 'in Ontario' critical minerals supply chain,' Scott said. 'Lots of other interests have benefitted – they have given out billions for battery gigafactories, they promise $1 billion to 'de-risk' a nickel mine for a privately-held Australian mining company by building their road, they are doling out mineral exploration tax credits.'
Scott said remote First Nations communities in the Ring of Fire have yet to see real benefits from Ontario's mining push, with many still lacking clean drinking water, adequate housing and proper health services — and that offering loans for equity stakes in mining projects is not enough, especially when basic community needs remain unmet.
Scott emphasized the cultural and ecological sensitivity of the Ring of Fire, which is home to globally significant peatlands and boreal forests that store massive amounts of carbon. 'It is a ticking carbon bomb, basically,' she said.
She also questioned whether the investment respects the right to free, prior and informed consent as outlined in the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP). 'When Indigenous nations have the power to provide — or withhold — consent to major projects proposed for their territories, then we will know whether they freely consent to extractive activities or not.'
Industry: 'A Strategic Opportunity'
Since his election, Premier Ford has made developing the Ring of Fire a central part of Ontario's critical mineral strategy. The region holds a 5,000-square-kilometre deposit of key minerals needed for electric vehicles and renewable energy technologies. It also contains one of the world's largest peatlands — storing roughly 26 gigatons of carbon, and playing a key role in reducing global greenhouse gas emissions.
Since US President Donald Trump announced tariffs on Canadian exports, Ford has doubled down on fast-tracking mineral projects, arguing Ontario must become more self-reliant in a time of economic uncertainty. The government says speeding up development is crucial to securing supply chains and shielding the province from global trade instability.
As part of its 2025 budget, the province is also investing $500 million in a critical mineral processing fund to build strategically located facilities for processing key minerals like lithium, cobalt, and graphite, aiming to strengthen Ontario's role in the global clean tech and electric vehicle supply chains.
Vince Beiser, journalist and author of Power Metal: The Race for the Resources That Will Shape the Future, welcomed the investment in principle and emphasized the importance of ensuring First Nations communities benefit from that development. 'It makes sense to develop and refine these resources at home, especially in a time of trade tension with the US,' he said.
Beiser stressed that Canada has real leverage due to its mineral wealth and should strengthen its position in extraction and processing. 'Critical minerals are one of our leverage points. We're the biggest supplier of certain metals to the United States, and they really rely on us.'
Beiser also praised the scholarships for First Nations students pursuing careers in resource development and said the mining sector will increase employment of First Nations workers. However, he warned the province must also invest in refining capacity, not just extraction.
'Countries like Indonesia have shown how profitable it can be to process and refine minerals locally, not just export raw materials.'
As for challenges to scaling up critical minerals projects in Ontario, Beiser pointed to two major barriers: regulation and infrastructure. 'The industry always complains about red tape, and sure, it might make sense to loosen some rules — but not all,' Beiser said. 'But the bigger issue is infrastructure. The Ring of Fire is incredibly remote and hard to access. That physical reality makes development difficult, no matter how much mineral wealth is in the ground.'