The state of mining in Ontario

Navigating challenges and embracing opportunities in 2025

Since joining the Ontario Mining Association (OMA) in the autumn of 2024 as president, I have had some time to reflect on its remarkable century-long commitment to bolstering the province’s mining industry. What strikes me is that we find ourselves at an inflection point in 2025 — one marked by unprecedented geopolitical and market challenges, as well as once-in-a-generation opportunities.

Factors such as rising global conflicts, post-pandemic renewal, and geopolitically driven trade defence measures, as well as growing demand for responsibly mined minerals linked to the energy transition, are reshaping the landscape of our sector. Recent global events and an emphasis on Environmental, Social and Governance (ESG) performance indicators have only reinforced Ontario’s competitive advantages: Vast mineral wealth, rule of law, a stable government, respect for human rights, a robust health and safety culture, a diverse ecosystem of service providers, and ample sources of clean energy position the province as a leading mining destination.

Ontario was listed as this year’s lowest-risk jurisdiction globally in the MJI World Risk Report, a comprehensive evaluation of mining investment risk featuring assessments of 117 jurisdictions globally. The OMA is seizing this moment to engage proactively with the provincial government and key stakeholders to build on our advantages and carve out pathways for economic growth, placing the spotlight on the mining sector’s pivotal role in Ontario’s economy and ability to drive innovation.

The critical minerals strategy roadmap to success

Ontario government has commendably prioritized the implementation of its Critical Minerals Strategy (CMS), which aims to establish the province as a leader in the sustainable production of essential minerals. These metals and minerals are vital for clean energy technologies, the digital economy, defence systems, and advanced manufacturing, among other sectors. The CMS goals are closely aligned with those in the “Driving Prosperity Phase 2” document, which aims to retool the automotive sector for electric vehicle production and facilitate the development of the battery supply chain. Additionally, they align with insights from the Critical Minerals Talent Strategy, released by the Ontario Vehicle Innovation Network, which serves as a roadmap to leverage Ontario’s skilled workforce for building a comprehensive electric vehicle supply chain.

The findings in the Advanced Manufacturing Council’s 2024 Final Report further emphasize how Ontario can maintain its manufacturing leadership. This synergetic strategic vision is crucial for optimizing our complete supply chain — from mining to manufacturing — thereby enhancing economic resilience, creating jobs, and boosting Ontario’s innovation capacity and leadership within the global clean technology landscape. It also underpins Ontario’s newly announced plan to accelerate strategic resource development to build a revitalized Canada-U.S. alliance, dubbed “Fortress Am-Can,” which aims to foster global stability, security, and long-term prosperity.

As Ontario makes clear our ambition to supply allied nations with critical minerals and be a global player in the clean technology market, the OMA applauds the commitment to facilitate electric vehicle infrastructure and production within the province. The investment of over $50 billion in downstream manufacturing over the past few years signals unwavering federal and provincial governmental support. However, existing gaps in funding upstream mining development pose significant challenges that we must collectively address to maintain Ontario’s competitive edge and harness our ability to lead.

The current landscape: Challenges in upstream development

While considerable momentum has been building for downstream manufacturing, it is crucial not to overlook the upstream mining operations fundamental to sustaining this growth. To paraphrase Canada Nickel CEO, Mark Selby, just as the farm-to-table experience begins with seeding the crop, every step in our supply chain is essential for cultivating sustainable growth and success. While continued growth in the mining sector is critical for our economy, security, and environment, Ontario’s mines and smelters are currently grappling with significant challenges that threaten their profitability and long-term viability in an increasingly competitive market.

Our province is facing intense rivalry from international competitors in base metals markets, particularly given that Indonesia, the world’s leading nickel supplier, maintained ample supply through the second half of 2024, fuelled by a surge in Chinese smelting projects. As Indonesia continues to ramp up its nickel smelting capacity with 44 operations — as of September 2024, a staggering increase from just a decade prior — Ontario’s mines and smelters find themselves in a precarious position. As our major producers compete for global capital for local investment, de-risking new projects or expansions will require a whole-of-government approach to secure those necessary investments in innovation, operational improvements, and mine life extension. This plan should feature diversified support mechanisms such as competitive energy pricing, strategic tax incentives, and concierge regulatory approvals to fortify the entire mining production spectrum.

The urgency of this initiative is intensifying, especially given the looming threat of potential US tariffs and retaliatory federal measures, which could raise the cost of doing business in Ontario. The challenges are compounded by the geographical remoteness of mining operations in Northern Ontario, which makes attracting talent difficult. Although the mining sector is a lead employer in the North, few employed in the sector are originally from the North, and some are recruited internationally.

This means the sector must contend with attracting workers to the Northern region while competing with employers in more accessible locations, closer to where the bulk of the workforce resides. Housing pressures — and costs, even for modular housing — as well as lack of access to healthcare, education, digital connectivity, other essential infrastructure and certain cultural supports in Northern Ontario impede growth in the mining sector, once again highlighting the urgent need for a comprehensive, whole-of-government approach to find solutions. To truly support the industry, current strategies must be bolstered by investments that not only focus on advanced manufacturing but also enhance upstream exploration, mining operations, and processing facilities.

Elevating all commodities, with an emphasis on gold and key strategic minerals

We strongly believe that these government investments will yield significant benefits for all commodities mined in Ontario, particularly for strategically important minerals like gold. Gold serves as a vital hedge against inflation, currency devaluation, and economic uncertainty, especially in today’s unpredictable geopolitical climate. Gold also plays a crucial role in driving innovation and facilitating the transition to a green economy. It is an essential component in modern technologies, used in conductors, switch contacts, soldered joints, and various electronics like smartphones and televisions. In the medical field, gold is transforming diagnostic tools and treatments because of its biocompatibility and chemical stability. Additionally, its applications are expanding in defence and aerospace technologies.

Gold mining can be a significant contributor to decarbonizing local economies in other ways. Ontario gold mines have been key in adopting innovative technologies to further decarbonization goals, often serving as the initial catalyst in bringing clean energy systems to remote locations. While the outlook for gold remains optimistic, Ontario mines are currently facing significant challenges, including a lack of a robust workforce pipeline for mining careers, rising labour costs, regulatory uncertainty, and other prevalent industry issues that the CMS seeks to remedy.

Recognizing these challenges, the OMA has proposed that gold be added to Ontario’s critical minerals list, following the precedent set by China and Japan, which are leading the world in recognizing gold as a critical mineral. Meanwhile, we continue to underscore that Ontario must adopt an inclusive and whole-of-government approach across the mining production spectrum to uplift not just critical minerals, but also other commodities that remain central to Ontario’s economy. This collaborative strategy is crucial not only for enhancing employment opportunities and contributing to GDP, but also for fostering positive relationships with Indigenous communities and enabling us to build out the “Fortress Am-Can” strategic alliance.

Bridging the funding gap

Ontario’s mining sector stands poised for growth but requires strategic interventions to bridge the funding gap for upstream exploration, operations (including deep-level mining), and processing of critical minerals. In our 2025 pre-budget recommendations, we stressed the need to strike a better balance when it comes to supporting mineral development to ensure a successful battery and EV production future. Our submission encompasses enhancing geoscience data, bolstering domestic processing abilities and creating resilient local supply chains, reforming regulatory frameworks, and promoting innovation within the industry. Establishing a new Am-Can Critical Mineral Security Alliance is a positive start by the government, but this initiative must bear significant investments in upstream mine development and deliver on expanding processing capacity in the province to ensure the “Made in Ontario” supply chain can deliver on the increasing global demand for critical minerals.

Fostering Indigenous partnerships

Another significant component in strengthening Ontario’s mining sector is building economic development opportunities with Indigenous partners. We appreciate that the provincial government remains committed to implementing Resource Revenue Sharing (RRS) agreements, but there is a pressing need to broaden the geographic scope of these agreements to engage more Indigenous communities proximate to operating mines. For these agreements to be successful, it is so important for government to support Indigenous communities at every stage of RRS implementation to ensure that communities do not face financial and capacity constraints to a meaningful participation. To truly foster these partnerships, the government also needs to have a coordinated and expedited process to create more certainty with consultation procedures and accommodation, thus helping to reduce risk and move towards strategic mineral development while advancing economic reconciliation.

A long-term commitment to education and workforce development is essential for Ontario’s mining industry

Furthermore, it is essential to tackle the lack of a robust workforce pipeline required to sustain current mining operations in Ontario and grow production of minerals and metals, in particular critical minerals, required to meet the 21st century demand and the energy transition. In April 2023, the OMA partnered with the Ontario Labour Market Partnerships (OLMP) program to address local economic and employment challenges in the mining sector. This partnership resulted in a comprehensive labour market assessment and the implementation of a multi-partner information campaign aimed at improving workforce perception among Ontario youth (ages 16 to 28) regarding careers in mining.

To date, results of the sustained, coordinated “This is Mine Life” (TIML) campaign have been outstanding. Both for the total reach of over 14 million and the level of engagement — both online and in-person — from youth and their career influencers, including educators, guidance counsellors, and parents. This level of engagement has been amplified with the significant enthusiasm and collaboration from our industry partners and career ambassadors representing our member companies. Moving forward, the OMA aims to sustain the TIML campaign, leveraging its successes and harnessing continued support for further initiatives from government, industry, and non-profit organizations that share similar mandates to address the labour shortage across the mining industry in Ontario and attract investment and people to Northern Ontario.

To maintain Ontario’s position as a global leader in mining, we must adopt a multi-faceted and sustained approach to develop a workforce that is not only aware of the mining industry’s opportunities and challenges but is also passionate about its role in shaping the future of this sector. The transition from a student to an industry professional requires a deliberate process that spans multiple decades and investments in education and training programs that cater to students at various stages of their academic and professional journeys. It is crucial to begin educating students about the mining industry at a young age and continue to nurture their skills and knowledge throughout their academic journey and into their careers.

As an immediate step, there is a significant opportunity to incorporate ready-made, mining-focused educational resources developed through the TIML initiative into Ontario’s school curriculum. To facilitate this, we propose the establishment of a dedicated task force focused on modernizing the mining curriculum. By doing so, we can ensure that Ontario not only attracts but also retains a workforce equipped to excel and maintain our global leadership position in mining. Achieving this goal will necessitate ongoing collaboration and resource sharing among industry leaders, government agencies, educational institutions, and organizations with aligned objectives and a view to a concerted, generational-spanned, long-term approach to bridging the labour gap and creating a robust pipeline of talent that will support continued growth and innovation in Ontario’s mining industry.

A call for whole-of-government collaboration

As the state of mining in Ontario evolves and the government stresses the need to develop critical minerals, it becomes evident that a collaborative approach across all government levels is crucial for successful implementation of the CMS. National and subnational governments, stakeholders, civil society, and Indigenous communities must be single-minded in purpose to develop our upstream natural resources in a responsible fashion with benefits to local communities, or risk losing control of our supply chains, failing to meet our energy transition objectives, and undermining our national interests.

This concern about unmet objectives and missed opportunities is heightened by the current competitive dynamics of the global marketplace, which poses significant challenges, including potential international tariffs and the pressing need to secure a reliable domestic supply of critical minerals within North America. To secure Ontario’s position as a key player in the global supply chain, it is essential to cultivate a robust and inclusive mining sector by forging strategic partnerships with Indigenous leaders, facilitating accessible educational programs, modernizing the regulatory framework, creating incentives for investment, and committing to ongoing research and development.

Seeding the way forward

The OMA is dedicated to collaborating with the government to achieve these vital objectives. The trajectory of Ontario mining depends on swift and strategic action —cultivating the seeds sown through the CMS will catalyse a resilient and innovative industry. By developing a robust supply chain anchored in a strong mining base, Ontario stands to not only boost its economic outlook and create safe, well-paying jobs but also set a global standard for responsible mining practices. 

Priya Tandon is the president of Ontario Mining Association (OMA).