Canada Streamlines Approval Process for Infrastructure and Mining Projects

According to Mining.com, Canadian Prime Minister Mark Carney announced last Friday (March 21) after meeting with leaders of the country's 11 provinces and territories that the federal government will no longer approve major infrastructure and mining projects, leaving the approval process to local authorities.

"By recognizing the provincial governments' review results of major projects, known as mutual recognition, we will eliminate the federal government's redundant reviews," Carney told reporters in Ottawa. "So, one project, one review, we will work with provinces and other stakeholders, including indigenous organizations, to identify projects that align with national interests and accelerate their construction."

Carney stated that the first project to expedite permit approvals is the Cedar LNG project, a joint venture between the Haisla Nation and Pembina Pipeline Corp. Located in Kitimat, British Columbia, the project is expected to invest CAD 5.8 billion and is an LNG export facility led by indigenous groups. Another project is the reconstruction of the Churchill Port in northern Manitoba's Hudson Bay, with an investment of CAD 80 million.

The Liberal leader called for a federal election and proposed several suggestions for the upcoming campaign, similar to an economic agenda. He said that promoting the development of the Ring of Fire critical mineral region in northwestern Ontario will be one of the projects that can be quickly approved in the future.

On the morning of the 21st, Carney stated that the government has abandoned plans to increase the capital gains tax from 50% to 66%. A week earlier, he announced the first policy at a cabinet meeting to cancel the consumer carbon tax, aligning with the views of other leaders, including Conservative leader Pierre Poilievre.

Although the election has not yet been held, Poilievre has also been giving speeches, such as promising on the 19th to approve the Ring of Fire project within six months of being elected.

New Fund

Carney also briefly introduced a fund called First Mile, which provides funding for the construction of transmission and transportation networks to connect mining areas with existing rail and road networks.

"In other words, if you think of a critical mineral project or a project far from existing networks, connecting them may be decisive for the economy and their viability," Carney said. "Now is the time to build."

In the future, another potential major project could be the Grays Bay road and port project in western Nunavut, aimed at connecting the resource-rich Slave Geological Province with the deep-water port of Grays Bay via an all-weather road. The Kitikmeot Inuit Association is advancing the project.

These projects join previously announced government initiatives, such as the highway between Quebec and Ontario, and the integrated power system of Nova Scotia and New Brunswick. The Second Narrows near the Port of Montreal and the Port of Vancouver may also undergo renovations. The Second Narrows is a critical bottleneck for maritime traffic entering and exiting the inner harbor of the Port of Vancouver, especially for bulk terminals, container facilities, and rail connections.

LEENSF

Carney stated that the Ministry of Finance will oversee the Large Enterprise Economic and National Security Facility (LEENSF), providing liquidity support and funding to regional development agencies. The size of the fund and the expenditure amounts for shortlisted projects remain unclear.

Having been in office for only a week, Carney said that federal and local leaders have agreed to develop a national trade and energy corridor strategy for transportation, energy, critical minerals, and digital connectivity. They also pledged to eliminate all interprovincial trade barriers by July 1, Canada Day, which he said would reduce economic losses by CAD 250 billion annually.

"As the Prime Minister of the federal government, our goal is to establish a policy system that facilitates private sector construction of these projects," Carney said. "In other words, by accelerating rather than duplicating approvals, we can create an environment that reduces the risk of taxpayer funds."