Canada’s mining industry delivered solid growth in 2023, contributing C$117-billion, or 4% of GDP, and directly employing 430 000 people. However, the sector faces pressure from regulatory frustrations, infrastructure bottlenecks, and emerging trade tensions with the US, the Mining Association of Canada (MAC) said in its flagship 'Mining Story 2025' report.

While economic and geopolitical turbulence defined the global landscape, marked by high inflation, disrupted trade and political instability, Canada’s mining sector stood firm. Total mineral production reached C$71.9-billion in 2023, down slightly from the previous year but well above 2021’s C$58.6-billion. 

The country remained a global leader, producing more than 60 minerals and metals from nearly 200 mines, including top global rankings in potash, uranium, niobium, palladium, and diamonds.

“Despite economic headwinds, mining continues to anchor the Canadian economy,” said MAC CEO Pierre Gratton. “But we cannot rest on our success: increasing national security concerns of Canada and its allies and the ongoing shift to a low carbon economy will require more minerals and metals than we produce now."

Gratton stressed that without improvements to regulatory efficiency, Canada risks missing out on the generational opportunity presented by rising demand for low-carbon technologies. Demand for critical minerals, such as lithium, graphite, nickel and cobalt, is forecast to rise at least 71% by 2030, driven largely by clean energy and electric vehicle markets.

Although the federal government has set new permitting targets – five years for non-designated projects and two for designated ones – MAC flagged that these goals remain aspirational without wholesale reforms across government departments. “We need a regulatory regime that is efficient, effective and reliable, not just targets,” said Gratton.

The association welcomed recent fiscal adjustments to federal tax credits, aimed at incentivising mineral exploration and development, but said further legislative fixes must be passed without delay to unlock investor confidence.

Meanwhile, Canada’s outdated transport infrastructure has emerged as a key vulnerability. The country experienced its first-ever simultaneous rail service halt from both Class 1 railways in 2024, with port disruptions in British Columbia and Quebec compounding logistics challenges. Shipping costs by road and rail remain elevated compared with pre-pandemic levels.

"While the government is seized with economy-wide supply chain challenges, concrete solutions, such as legislative fixes to longstanding mining industry recommendations to address transportation network challenges remain elusive," said Gratton.

Trade tensions with the US are also looming over the industry. With bilateral mineral and metals trade reaching C$146-billion in 2023, MAC warned that tariffs or protectionist policies could damage both economies and incentivise Canadian producers to pivot toward alternative export markets.

Despite the challenges, the report highlighted Canada’s leadership in environmental, social and governance performance, Indigenous participation, and responsible production. The mining sector directly supports more than 12 000 Indigenous jobs and accounts for more than 90% of export value from territories like Nunavut, Yukon and the Northwest Territories.

Looking ahead, MAC estimates the sector will need to hire at least 135 000 new employees within the next decade. Addressing labour shortages, particularly among women, youth, and visible minorities, alongside investments in education and training, will be key to sustaining future growth.