SC2 Inc. to Vote Against Sherritt Directors at 2025 AGM, Calls for Board Renewal Amid Operational and Governance Failures
TORONTO, May 23, 2025 /CNW/ - SC2 Inc. (" SC2"), a significant shareholder of Sherritt International Corporation (TSX: S) (" Sherritt" or the " Company"), today announced that it will vote (i) against the say-on-pay resolution proposed by the board of directors, and (ii) against the election of all nominated directors at the Company's upcoming Annual and Special Meeting on June 10, 2025, with the exception of Richard Moat, who is being nominated for election for the first time.
SC2, owning approximately 8.07% of the post-dilution issued and outstanding shares of Sherritt, has sought constructive engagement with Sherritt's Board of Directors (the " Board") since May 2024. In the aggregate, the Company's persistent underperformance, weak governance, and unwillingness to address shareholder concerns compel SC2 to withhold support from the current Board (except for Richard Moat).
Sherritt's Key Failings
1. Ongoing Operational Underperformance
Sherritt struggling with production, including in Q4 2024 and Q1 2025, where mixed sulphide output fell to near-historic lows, despite completion of the Phase 1 expansion. Although Q1 2025 net direct cash cost (" NDCC") was lower than it was in Q1 2024, it was higher than Q4 2024. NDCC is a lagging indicator of cost and, given the low mixed sulphide production, this trend will likely continue.
Cash in Canada declined in both Q4 2024 and Q1 2025, and available liquidity in Canada is now critically strained. At the end of Q1 2025, without violating its minimum liquidity covenant, the Company has only approximately $30 million of cash remaining.
To maintain liquidity, Sherritt has relied on preselling nickel at discounted prices, a short-term measure that erodes long-term value.
2. Eroding Shareholder Value and Market Standing
Between May 21, 2024, and May 21, 2025, Sherritt's share price has declined by approximately 54.69% ($0.32 – $0.14).
Investors have experienced sustained value erosion. Over the last three years, Sherritt's share price has declined by approximately 76.23% ($0.48 - $0.14).
Sherritt's performance and share price has resulted in minimal analyst coverage and a decline in market reports.
Sherritt's most recent earnings conference call lasted under 20 minutes and attracted no questions, reflecting fading market confidence.
3. Misaligned Executive Compensation
Executive compensation in 2024 totaled approximately $7 million, equivalent to ~10% of the Company's market capitalization.
Generous stock-based awards (RSUs and PSUs) continue despite financial underperformance and declining shareholder returns.
4. Excessive Overhead
Sherritt maintains offices in Toronto, Calgary, and Fort Saskatchewan, and supports a full C-suite despite its limited operational scope.
Sherritt's Q1 2025 report showed "Corporate and Other" as having consumed $8.4 million, an annualized run rate that represents more than 40% of the Company's market cap.
5. Ineffective Oversight and Governance Failures
The Board did not disclose an important agreement that could have influenced shareholders ahead of the 2024 AGM, which raises serious concerns about its commitment to fair and fulsome disclosure.
In January 2025, a shareholder meeting requisition was denied by the Board on technical grounds.
Cease-and-desist letters were issued to certain stakeholders who raised legitimate concerns - a worrying tactic.
The Board has consistently refused SC2's repeated offers of constructive engagement, granting only a single one-hour meeting over the past year.
6. Strategic Drift
The Company continues to invest in speculative initiatives like the mixed hydroxide precipitate processing project despite a history of value-destructive capital allocation (e.g. Ambatovy, Bitumen Upgrading, Block 10).
Sherritt has one material asset which the entirety of its cash flow is derived: The Moa JV. Its performance is the single most important driver of Sherritt's financial health. Any disruption or underperformance threatens the Company's ability to meet obligations. Yet the Board has failed to demonstrate adequate focus or oversight of the Moa JV.
A Path Forward
SC2 believes that Sherritt's core asset - its interest in the Moa JV - retains long-term value, but unlocking that value requires credible, focused leadership. While SC2 will vote against the current slate of directors, it intends to vote in favour of Richard Moat, whose nomination brings relevant experience and a needed independent voice to the boardroom.
This is a decisive moment for Sherritt. Under the current Board's oversight, repeated production shortfalls, financial underperformance, and serious governance breakdowns have eroded value and confidence. Shareholders deserve accountable leadership and a clear path forward. The time for change is now.
Pursuant to the Canada Business Corporations Act (the " CBCA"), directors of CBCA corporations, such as Sherritt, must be elected by a majority of the votes cast for and against them. Accordingly, if an incumbent director receives more votes against his or her election than for his or her election, he or she will not be elected to the board of directors at the Meeting. In the event that fewer than three directors are elected at the Meeting, Sherritt will be required to call a special meeting without delay for the election of directors. SC2 encourages fellow shareholders to vote "AGAINST" the re-election of Leon Binedell, Louise Blaise, Shelley Brown, Dr. Peter Hancock, Sir Richard Lapthorne, and Chih-Ting Lo at the Meeting. Doing so will help bring about the positive change that Sherritt needs.
Additional Information
The information in this news release could constitute a solicitation of a proxy under corporate and securities laws. Accordingly, SC2 is providing the disclosure required under the CBCA and section 9.2(4) of National Instrument 51-102 – Continuous Disclosure Obligations in accordance with securities laws applicable to public broadcast solicitations.
This news release and any solicitation made by SC2 in advance of the Meeting is, or will be, as applicable, made by SC2, and not by or on behalf of the management of the Company. All costs incurred for any solicitation will be borne by SC2, except that, subject to corporate and securities laws, SC2 may seek reimbursement from the Company for its out-of-pocket expenses, including proxy solicitation expenses and legal fees, incurred in connection with the solicitation.
SC2 is not soliciting proxies in connection with the Meeting at this time. SC2 may solicit proxies pursuant to an information circular sent to shareholders, after which solicitations may be made by or on behalf of SC2, by mail, telephone, fax, email or other electronic means as well as by newspaper or other media advertising, and in person by directors, officers and employees of SC2, who will not be specifically remunerated for the solicitation. SC2 may also solicit proxies in reliance upon the public broadcast exemption to the solicitation requirements under corporate and securities laws, conveyed by way of public broadcast, including through news releases, speeches, or publications, and by any other manner permitted under Canadian corporate and securities laws. SC2 may engage the services of one or more agents and authorize other persons to assist in soliciting proxies on its behalf.
SC2 is not requesting that shareholders submit proxies at this time. If SC2 commences a formal solicitation of proxies in connection with the Meeting, any proxy may be revoked by instrument in writing by the shareholder giving the proxy or by its duly authorized officer or attorney, or in any other manner permitted by law and the articles of the Company. None of SC2 or, to its knowledge, any of its associates or affiliates, has any material interest, direct or indirect, (a) in any transaction since the beginning of Sherritt's most recently completed financial year or in any proposed transaction that has materially affected or would materially affect Sherritt or any of its subsidiaries, or (b) by way of beneficial ownership of securities or otherwise, in any matter proposed to be acted on at the Meeting other than the election of directors or the appointment of auditors.
Sherritt's head office address is Bay Adelaide Centre, East Tower, 22 Adelaide Street West, Suite 4220, Toronto, ON M5H 4E3. A copy of this news release may be obtained on Sherritt's SEDAR+ profile at www.sedarplus.ca.
SC2 Inc. is a private investment vehicle and a shareholder of Sherritt International. SC2 advocates for board accountability, operational discipline, and the creation of long-term value for all stakeholders.
SC2 Inc.'s affiliate, Seablinc Canada Inc., is a proud supplier to the Moa JV in Cuba.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Cision Canada
an hour ago
- Cision Canada
Yardi launches Aspire Platinum package with cutting-edge AI tools
The learning management platform upgrades its offering to include advanced features for enhanced customization, engagement and integration capabilities SANTA BARBARA, Calif., June 6, 2025 /CNW/ -- Yardi ® is proud to announce the launch of Aspire Platinum, the newest and most advanced tier of its Yardi® Aspire learning management system, designed for property management companies that need advanced tools to scale training, improve engagement and stay ahead of change. Among the standout features in Aspire Platinum is Aspire AI, a powerful set of content creation tools that help training teams move faster and do more. With just a few clicks, teams can generate interactive courses, embed scenario-based challenges, build assessments, translate it all to other languages and more. "Aspire Platinum is for companies that want the latest technology to support strong, effective training programs that solve real business challenges." said Patty Evans, industry principal for Yardi Aspire. "It's built to help training teams save time, reach more people and make a bigger impact." Platinum also includes tools that make training more interactive and efficient, such as: Surveys and live polling for real-time feedback and engagement SCORM course compatibility for importing external content Embedded esignature workflows for policies, checklists and acknowledgments Microsoft Teams chat integration for seamless collaboration and communication Aspire Platinum builds on the robust foundation of the comprehensive Aspire Plus package, trusted by property management companies of all sizes. Aspire Plus features a customizable course catalog, event and mentorship management, embedded authoring tools, company resource library, mobile app and a sleek, modern, personalized learning experience. "We designed Aspire Platinum to give companies more flexibility, faster content creation and better ways to engage their teams," added Evans. "It offers the sophistication and efficiency that today's property management leaders need, without making things more complicated." Aspire Platinum helps organizations modernize their learning strategy, support compliance and build high-performing teams in a way that's personalized, scalable and easy to manage. Find out which Aspire package is right for you, or book a demo to see it in action. About Yardi
Globe and Mail
2 hours ago
- Globe and Mail
‘June dips are buying opportunities': CIBC's Mokhtari on his latest market views and 10 top stock picks
North American equity markets rallied sharply in May. The S&P/TSX Composite Index posted a 10-day rally last month, which pushed the index above 26,000 for the first time. This positive momentum is not over, according to CIBC's chief market technician Sid Mokhtari. He is forecasting a move above 27,000 in the months ahead. Mr. Mokhtari publishes a monthly report with his Top 10 stock ideas and his disciplined process continues to lead to portfolio outperformance. He screens and selects stocks from the largest 100 members by market capitalization within the S&P/TSX Composite Index. In the first five months of 2025, his portfolio of stock selections delivered a double-digit return of 11.4 per cent, compared to a 5.85 per cent gain for the broader index. His stock selections also outperformed the S&P/TSX Composite Index in 2024, 2023 and 2022 by 5.8 percentage points, 6.3 percentage points and 2.7 percentage points, respectively. For June, his Top 10 stock ideas include nine additions and one carryover from the prior month. They are: Aritzia (ATZ-T), Eldorado Gold (ELD-T), Exchange Income (EIF-T), Killam Apartment REIT (KMP-UN-T), MDA Space (MDA-T), NGEx Minerals (NGEX-T), Parkland (PKI-T), Shopify (SHOP-T), Sun Life (SLF-T), and the lone carryover is Power Corp. (POW-T). On June 3, I spoke with Mr. Mokhtari to get his technical take on the markets. We also delved into his June stock picks and ETFs with attractive technical setups. In a report that you published on June 1, you said both the TSX Composite Index and the S&P 500 exhibit a 'cup and handle' or 'pole and pennant' pattern. Could you break down these technical terms and what it suggests for future moves in these two indices? 'Pole and pennant' and 'cup and handle' patterns are typically associated with accumulation as well as uptrend continuation. With a 'pole and pennant', you see a surge in momentum and a sharp rise in a share price or an index. Then, you have a shallow consolidation in a short time frame, and that needs to resolve itself in the direction of the momentum burst. We estimate that we saw capitulation in April. Coming off the April lows, breadth began to exhibit an expansionary phase and momentum surged. This forced broader indices to shift upward in a very sharp fashion, creating almost a V-shaped recovery that created the pole. If we're correct in our breadth and market internals estimation, indices may pause and create a pennant that is often associated with period of a shallow consolidation before momentum reemerges to the upside. With a 'cup and handle' pattern, you have a gradual rounded bottom pattern, and that's a shift in trend bias. You lose sellers and gain buyers. Then, you have a secondary saucer-like pattern that develops above the bigger rounded pattern. A 'cup and handle' is a technical observation that is often associated with accumulation tendencies and usually results on the upside. I would say 'pole and pennant' is the one that I see a lot among U.S. stocks. Within Canada, we see a lot more rounded 'cup and handle' patterns. And a 'cup and handle' pattern is often seen within commodity indices or commodities, in general. So, both patterns suggest the S&P/TSX Composite Index and the S&P 500 will exhibit a pause in momentum, or consolidation period, after which they will resume their uptrends? Correct. And how long do you anticipate that pause or consolidation phase will last? The consolidation is shallow in amplitude. In other words, dips are shallow. And the phase of consolidation is not an elongated one. It lasts weeks to a month or two. So, we think by summer, as we go into July, we should be at higher levels for both the S&P 500 and the TSX Composite Index. So, the adage 'sell in May and go away', might instead be 'buy the dips in June and go away'? I genuinely think that's the case. I think 'sell in May and go away' is the wrong narrative. Market internals are very healthy. They have improved significantly. Breadth is in good shape. We see broader participation of many individual names in both the U.S. and Canada and momentum conditions are good. So, any pushback in the month of June should be a buying opportunity. In fact, since the secular bull market began in 2009, when May is a strong month, you typically see follow-through strength into July. So, June dips are buying opportunities. So, I have a constructive bias, even based on seasonal characteristics. Are you maintaining your single-digit positive return forecasts for this year for both the S&P/TSX Composite Index and the S&P 500 Index? As of May 30, the year-to-date price return is nearly 6 per cent for the TSX and less than 1 per cent for the S&P 500. I am. My base case is either very low double-digits returns for both indices or high single-digit returns. During year one of the U.S. presidential cycle, the S&P 500 has a median return of 8.1 per cent and a hit rate of 58 per cent. (A hit rate is a measure of frequency of observations.) For the S&P/TSX Composite Index, the median return is 9.6 per cent, the hit rate is about 65 per cent. So you do have slightly higher relative observations for the TSX Index, also noting that, at least by our measures, we should be able to see better propensity for TSX index to hold itself better relative to the S&P 500 in the second half of the year. The S&P/TSX Composite Index broke above 26,000 for the first time last month and the S&P 500 is nearing 6,000. I know you're anticipating a potential pause in June, a shallow consolidation for a brief period, but if an uptrend does resume in the summer months where could these indices rise to? Fresh discovery becomes difficult once we begin to make new highs. For the TSX Composite Index, I am measuring 27,100 to as high as 27,500. That would be my amplitude measured move. For the S&P 500, 6,475 to as high as 6,500. And over what time period? I would not be surprised if we resolved that in the next few months. In a report that you published last month, you noted an improvement in growth and momentum factors and a rotation away from value, low volatility and dividend yield factors. Given your outlook for the uptrend continuation for major North American indices, will growth and momentum stocks continue to be the leaders? I think that's the case. We still see that factor rotation favouring growth and momentum. Offence versus defence is certainly showing a better technical backdrop. I looked at four sectors and put them together on an equal-weight basis, and they were financials, consumer discretionary, industrials and technology, and divided them by utilities and staples. So, I put the offensive sectors in the numerator and defensive sectors in the denominator, and there is a technical chart that shows this ratio does have better upside potential, which favours strength in the numerator or weakness in the denominator. Was that analysis looking at sectors in the S&P/TSX Composite Index? That was for the TSX. For the U.S., we see the same thing. For the U.S., we found that defence is also resting. We're seeing utilities pausing and drifting, staples pausing and drifting, but against them we're seeing technology leading and sharply showing strength. We're seeing financials continuing to show better relative and absolute performance. We also see 'Magnificent Seven' stocks starting to show a very strong set of positive reversals, and that's a very big weighting in the S&P 500. When we spoke in January, you said, 'Bitcoin is a vehicle that is slowly becoming of asset allocation importance.' You added that given the strong run, the price of Bitcoin could dip to US$80,000 or lower, which would mark a good level to revisit the cryptocurrency. Your forecast was accurate. In April, Bitcoin fell below US$80,000 before surging to a record high in May. What is your current outlook for Bitcoin? I noticed in your matrix table that ProShares Bitcoin ETF (BITO-A) jumped in its rankings last month and entered the top 10. Like the markets where we see a pause and refresh, this should also be applied to Bitcoin and cryptos. We don't see Bitcoin falling below US$90,000 on a pullback. We think it would be a shallow correction. On the upside, we measured it to be closer to US$137,000 to as high as US$150,000 for Bitcoin so there's a lot of upside for Bitcoin, in our opinion. We're also seeing miners that are associated with cryptocurrency mining show better moving internals. Miners are showing positive reversals and better improving technical backdrops. Could you highlight a couple of them for our readers? In Canada, there's Galaxy Digital (GLXY-T), which recently had a sharp move and has now pulled back. I think this pullback can provide another opportunity given the pullback is on thinner volume and we're already seeing a 'golden cross' pattern within Galaxy Digital. There's one in the U.S. that everybody looks at called Strategy (MSTR-Q), formerly known as MicroStrategy. That's another good one that is showing better share price action. Both the 50-day and 200-day moving averages are marginally rising. This is a very constructive pattern for Strategy. Do you have technical targets for Galaxy and Strategy? For Galaxy, we are looking at revisiting the previous high. In other words, we should get back to a $35 handle and we should also be able to push through $35 on the upside. We measure that move to potentially be to $44, $45 levels. Strategy should be able to get back to north of US$460, US$480 from where it is. This is effectively a chart that is heavily tied to Bitcoin. Are there other thematic ETFs that are exhibiting major moves, either higher or lower, in your matrix? We still like silver and gold. We had a pause because of their seasonality. We saw a slower pace of advance in the miners, VanEck Gold Miners ETF (GDX-A), VanEck Junior Gold Miners (GDXJ-A) and Global X Silver Miners ETF (SIL-A). These ETFs are showing positive reversals. Seasonal strength for both silver and gold tends to become stronger as you go into the end of the summer. Here too, I estimate that dips will be able to provide a buying opportunity for anyone whose interested in this space. We like gold. We like silver. Silver has underperformed. I think that gives silver better potential buoyancy relative to gold. Last month, you added TD Bank to your top 10 best ideas basket and you had an initial price target of $94. The share price closed the month of May at $94.77. Your technical target was spot on. This month, you removed TD from your top 10 list and replaced it with Sun Life. However, I noticed in your technical scorecards that multiple bank stocks continue to rank well. We find some of the insurance names to be less overbought relative to banks. I am of the view that banks have already put out a great set of earnings and a lot of good news may already be discounted in the share price. So, I would not be surprised to see a period of consolidation or a pause among the banks and maybe a rotation in favour of lifecos. The recent technical breakout in Sun Life share price is still new from a time horizon perspective, with a momentum buy signal that was triggered only three weeks ago. It is reasonable to suggest that many alpha capture models are likely overweight Sun Life stock. It has a durable relative strength backdrop. It ranks well in our matrix process with a big increase in its delta - month over month rank. Fundamentally, our desk is also positive on SLF based on continued profit improvement in the U.S., earnings growth, growth in Asia and share buybacks. Earnings per share estimates are coming in above consensus and there could be further upside if our views are correct for the U.S. equity markets head higher into summer. And your technical target for Sun Life is? We are measuring $93.10 to as high as $95 for Sun Life on the upside. I noticed that half of the securities on your top 10 best ideas list are at or very close to all-time highs, those being Power Corp, Sun Life, EIC, MDA and NGEx Minerals. They're not looking overbought or overextended to you then? We do believe the stocks that make 52-week highs are likely to make new 52-week highs as time progresses just because momentum begets momentum. It's also a relative ranking for me. So, Power Corp. is a defensive name. I always have to be balanced in my view when we construct a basket of top 10 best ideas to make sure that I have a cushion in case there is a measure of defence that develops during the month. So, I think Power Corp. fits that call. Power has already broken out of its range, and pullbacks should be supported. MDA is poised to breakout, I'm measuring $34 to as high as $36. It has a flat top that has been in place for the past 12 months and has gone to this same reference point a few times, and I think if you knock on the same door often, it will open for you. Parkland is an interesting addition to your top 10 best ideas list as it has a potential near-term potential catalyst. They received a takeover offer, which shareholders will vote on later this month. I've had this name in our basket in the past and I think this is a name that has a backdrop of a shift in trend, i.e. a 'golden cross' condition, which is your 10-week moving average over the 40-week moving average. Also, there's been a lot of positive divergences throughout the past six months. By divergences, I mean momentum has been showing bottom building - that's positive divergence. The breakout above $37 for PKI established what's called a 'double bottom' technical pattern that should bring about a measured move north of $42. So, I'm thinking PKI below $40 is attractive. Earlier you remarked on the importance of having a very balanced portfolio. Given the need to have a diversified portfolio, is there a stock that would have appeared on your top 10 best ideas list but due to sector constraints you weren't able to include it? AGF (AGF-B-T) is a great name. It has a positive trend shift in our work. It has a reasonable yield and a good longer-term relative strength shift. AGF is a name that we like, but it's also a name that is not liquid enough. But nonetheless, I do know the sentiment for AGF is positive. Technical scores and quantitative factors for AGF are positive. It's a good name that continues to show a $14 handle as a measured move. It's not added because there are other more liquid names that stand above it. Looking at global investment opportunities, European ETFs continue to rank well. In your global regional ETF matrix, the top five ranked ETFs, starting with number one, are the Global X MSCI Greece ETF (GREK-A), followed by the iShares MSCI Italy ETF (EWI-A), the iShares MSCI Spain ETF (EWP-A), and then two German ETFs - the iShares MSCI Germany ETF (EWG-A) and Franklin FTSE Germany ETF (FLGR-A). Do technical indicators suggest that the strength in European markets will remain intact or do you think this rotation to growth and momentum factors may lift U.S. focused ETFs? We find a very deeply oversold condition that favours the S&P 500 from a mean reversion perspective over iShares MSCI ACWI ETF (ACWI-Q), the All Country World Index. So, we would not be surprised to see a pause or consolidation with some of these strong runners like Greece, Italy or Germany or other regions compared to S&P 500, which is not as overbought. I do admit that my ranking order is still keeping the S&P 500 on the lower side. The U.S. has come up in its ranking to number 51 out of 64 that we monitor, a 10-point delta relative to previous months. So, the U.S. has come up but it's still in the lower bucket of our ranking process. An interesting move I saw was move higher in the iShares MSCI Hong Kong ETF (EWH). It ranked number 36 in your regional ETF matrix on April 29, and the latest figure I saw was number 7. We like Hong Kong. We like Japan. iShares MSCI Hong Kong ETF (EWH) and iShares MSCI Japan ETF (EWJ) both exhibit a very good technical backdrop, they're not overbought by any measure, and I think that it's reasonable to make the case that if you want to diversify from the away from the U.S., having exposure to those parts of the world would not be a bad idea. Generally speaking, we like iShares MSCI EAFE ETF (EFA-A). We still think that the U.S. dollar is probably going to stay at best flat to lower, and that should be able to buoy a lot of those regions. But, I am very cognizant that if we're correct about our estimation about the 'pole and pennant' pattern that has been developing and the V-shaped recovery that is developing within the 'Magnificent Seven' and with some of the U.S. mega-cap stocks, I would not be surprised to see the S&P 500 perform relatively better in the weeks, months ahead compared to Europe or other regions. Anything else that you want to mention to readers? We're seeing good breadth expansion within the REIT space in Canada. So, InterRent REIT (IIP-UN-T) was acquired last month. We saw a big move in the broader REIT space in Canada and we're seeing a better follow-through in the likes of Killam Apartment REIT. So, we added KMP to our basket. Killam is currently trading at $19 and change, it has a very strong band of support at $18.50, and notable upside potential closer to $20.50. It also has a good yield, so I think Killam is a good name to have in our basket. But it's not just KMP, we see a broad improvement within the REIT space. Breadth in TSX REITs has notably improved with the members having broadly recovered above their medium and longer-term averages. Both BMO Equal Weight REITs Index ETF (ZRE-T) and iShares S&P/TSX Capped REIT Index ETF (XRE-T) are showing better durability in their momentum readings that should support the sector from a buy the dip perspective. This Q&A has been edited for brevity and clarity.
Cision Canada
3 hours ago
- Cision Canada
Government of Canada introduces legislation to build One Canadian Economy
OTTAWA, ON, June 6, 2025 /CNW/ - Today, the Honourable Dominic LeBlanc, President of the King's Privy Council for Canada and Minister responsible for Canada-U.S. Trade, Intergovernmental Affairs and One Canadian Economy, introduced new legislation to build a stronger, more competitive, and more resilient Canadian economy. One Canadian Economy: An Act to enact the Free Trade and Labour Mobility in Canada Act and the Building Canada Act, will remove federal barriers to internal trade and labour mobility, and advance nation-building projects crucial for driving Canadian productivity growth, energy security, and economic competitiveness. Advancing Major Projects The proposed legislation will accelerate the realization of major, nation-building projects that will help Canada become the strongest economy in the G7, deepen our trade relationships with reliable partners, and create good Canadian jobs. The federal government will determine whether a major project is in the national interest based on consultations with provinces, territories and Indigenous Peoples. Projects will be evaluated in accordance with the following criteria: Strengthen Canada's autonomy, resilience and security; Provide economic or other benefits to Canada; Have a high likelihood of successful execution; Advance the interests of Indigenous Peoples; and Contribute to clean growth and to Canada's objectives with respect to climate change. Projects will only be designated following full consultation with affected Indigenous Peoples. When a project is designated, it is conditionally approved upfront. The project will go through existing review processes, with a focus on "how" the project will be built as opposed to "whether" it can be. The federal major projects office will coordinate and expedite these reviews. The results, along with consultation with Indigenous Peoples, will inform a single set of binding federal conditions for the project. These conditions would include mitigation and accommodation measures to protect the environment and to respect the rights of Indigenous Peoples. The federal major projects office will include an Indigenous Advisory Council with First Nation, Inuit, and Métis representatives. The federal government will also allocate capacity funding to strengthen Indigenous Peoples' participation in this process. This legislation aligns with the Government of Canada's commitment to a 'one project, one review' approach, which means realizing a single assessment for projects and better coordination of permitting processes with the provinces and territories. The ultimate objective is to reduce decision timelines on major projects from five years down to two years. Canada will uphold its constitutional obligations to consult Indigenous groups to ensure projects proceed in ways that respect and protect Indigenous rights. We are committed to working in a way that respects our commitments to the implementation of the United Nations Declaration on the Rights of Indigenous Peoples Act and the principles of reconciliation, including economic reconciliation. Removing Internal Trade and Labour Mobility Barriers This new legislation builds one economy out of thirteen. It removes federal barriers to free trade within our borders while protecting workers, the environment and the health and safety of all Canadians. In cases where there is a federal barrier, the legislation will allow a good or service that meets comparable provincial or territorial rules to be considered to have met federal requirements for internal trade. For Canadian businesses, this will make it easier to buy, sell and transport goods and services across the country. On labour mobility, the new legislation will provide a framework to recognize provincial and territorial licenses and certifications for workers. This means that a worker authorized in provincial or territorial jurisdiction can more quickly and easily work in the same occupation in federal jurisdiction. This new legislation will make it easier to do business across Canada by removing regulatory duplication and cutting federal red tape. It will also reduce costs or delays for Canadian businesses who follow comparable provincial and territorial rules. Quotes "Canada's new government is building one Canadian economy. Today's legislation will remove federal barriers to internal trade, unleash Canada's economic potential, and get major, nation-building projects built faster across the country. It's time to build big, build bold, and build now." —The Rt. Hon. Mark Carney, Prime Minister of Canada "Our country thrives when we unite around a common purpose. In response to the evolving global trade landscape, the Government of Canada is taking decisive action to strengthen Canada's economy for generations to come. Through this legislation, we are giving ourselves the means to lift obstacles to economic growth and productivity, realize nation-building projects, create jobs and allow businesses to expand. Together with provinces and territories and Indigenous communities, we will make Canada the strongest economy in the G7." —The Honourable Dominic LeBlanc, President of the King's Privy Council for Canada and Minister responsible for Canada-U.S. Trade, Intergovernmental Affairs and One Canadian Economy "Trade within Canada is an essential driver of the Canadian economy, creating jobs, helping businesses expand, and enhancing consumer choice. Every year, more than $530 billion worth of goods and services move across provincial and territorial borders. This is equal to almost 20% of Canada's gross domestic product. That is with internal barriers holding us back. Imagine what we could achieve if people and goods flowed freely across borders in a truly unified Canadian market." —The Honourable Chrystia Freeland, Minister of Transport and Internal Trade "This new legislation is about building a stronger, more connected Canada—by making it easier to trade, faster to build big projects, and better at creating good opportunities for people, businesses, and Indigenous communities from coast to coast to coast. Energy and natural resources are Canada's power, and we will deliver projects that leverage these assets in order to strengthen our security, sovereignty, and economy." Associated Links Internal Trade Clean Growth Office First Ministers' statement on building a strong Canadian economy and advancing major projects Prime Minister Carney meets with premiers and shares his plan to build one strong Canadian economy Stay Connected SOURCE President of the King's Privy Council for Canada and Minister responsible for Canada-U.S. Trade, Intergovernmental Affairs and One Canadian Economy Contact : For more information (media only), please contact: Gabriel Brunet, Office of the Honourable Dominic LeBlanc, President of the King's Privy Council for Canada and Minister responsible for Canada-U.S. Trade, Intergovernmental Affairs and One Canadian Economy, 819-665-6527, [email protected]; Laura Scaffidi, Office of the Honourable Chrystia Freeland, Minister of Transport and Internal Trade, 613-993-0055, [email protected]; Carolyn Svonkin, Office of the Honourable Tim Hodgson, 343-597-1725, [email protected]; Media Relations, Privy Council Office, 613-957-5420, [email protected]
