< PreviousVisit us online at www.CanadianMiningMagazine.com 13 INDUS TR Y GREETINGS Minerals and metals are no longer just commodities – they are instruments of national strategy and security. They are essential for clean technologies, digital infrastructure, advanced manufacturing, and defence. Countries around the world are scrambling to secure access to critical minerals. It is because of this that our sector is one of the very few largely exempt from tariffs and I do not expect this to change. We are also seeing an increasing interest in state investments in mining projects, which we have not seen in decades outside of Quebec, but which reflects the reality that for some commodities controlled by China, state participation may be necessary. Canada’s minerals and metals sector is increasingly recognized as a cornerstone of economic growth. As global demand for clean energy and secure supply chains accelerates, our sector is uniquely positioned to lead. Indeed, now is the time for all governments in Canada to double down on mining, because we are one of the safest bets in the country. Growing the mining sector means more of the highest paying jobs in the country, an improved balance of trade, a stronger logistics A Once in a Generation Opportunity Pierre Gratton President and CEO Mining Association of Canada supply chain that supports other industries, huge economic spin-offs, significant opportunities for Indigenous communities, and the potential to diversify our economy and insulate it from the impact of tariffs. Our foundation is strong: Our industry contributed $117 billion to GDP in 2023 and supports over 700,000 direct and indirect jobs, including more than 12,000 Indigenous employees. Demand for critical minerals such as copper, nickel, graphite, and lithium is still expected to grow by at least 71% by 2030, driven by the long-arc of the global clean- energy transition. While it’s true that the clean-energy transition is facing headwinds, I believe it’s temporary, and regardless, as the case has been made articulately by Mike Henry of BHP, population growth and urbanization alone will support growing demand for mined products for decades. And the ramping up of defence spending is adding to the demand for metals. It’s a sad comment, perhaps, but war needs mining. MOVING FORWARD RESPONSIBLY We need to seize the moment because despite everything I’ve just mentioned, we need to mine more, much more, if we are to truly address our geopolitical vulnerabilities and support the world’s energy transition objectives and the industrial and defence needs of Canada and its allies. In seizing the moment, though, I want to be clear that we can move faster without compromising on environmental oversight or respect for Indigenous rights. It is these values that have helped drive Canadian mining forward and positioned us as leaders in responsible practice. Our Towards Sustainable Mining (TSM) Standard, for instance, is something that began in Canada over 20 years ago and has now spread around the world driving responsible mining practices in places like Colombia, Mexico, the Philippines, Australia, and most recently, as announced in October, Turkey. Over its 20-year history, TSM has driven significant improvements to how we manage our environmental impacts and build strong relationships with our communities. By being more effective in these areas, we have given confidence to Canada’s minerals and metals sector is at a once-in-a-generation crossroads, with global demand, clean energy, and national security all riding on its success. From high-paying jobs to Indigenous opportunities and strategic supply chains, now is the time for government and industry to act – and move fast.14 For daily news follow CMM on Facebook and X our communities of interest and addressed the concerns of our critics. Today, mining in Canada enjoys an 82% favourability rating in public support, the highest level of support we’ve ever seen for our sector. In a very recent poll by Spark Insight, mining was top of a long list of sectors that are giving Canadians confidence about the country’s future. If this is not mining’s moment, I don’t know what is. SO, HOW DO WE MOVE FORWARD? We must accelerate mineral resource development. Advancing mining projects is key to diversifying our economy, building resilience against global shocks, and boosting long-term productivity. Unlocking new projects will expand our industrial base, create high-quality jobs, and reinforce Canada’s role as a global supplier of minerals and metals. That means taking targeted action – starting with increased investment in mineral exploration, development, and processing. We need effective tax and fiscal incentives, expansion of government- backed financing, and innovation funding. We also need regulatory clarity and timely permitting. And let’s be clear: strong Indigenous partnerships are not optional – they’re foundational. Strategic infrastructure investments, from transportation networks to energy grids, will be critical to unlocking new resource development and boosting competitiveness. A robust mining sector will help Canada reduce its reliance on imports, drive industrial growth, and open new opportunities. It will sustain domestic industries and supply the materials needed for the global clean energy transition. In short, fully leveraging our mineral wealth will build a more resilient, competitive, and productive economy – and secure Canada’s place as a global leader and supplier of choice. BUDGET 2025 – A LEAP IN THE RIGHT DIRECTION On November 4, 2025, Canada’s Liberal government tabled its first budget. It contains several measures that will enhance the competitiveness of Canadian mining and accelerate investments in critical minerals. Budget 2025 responds directly to several requests from the Mining Association of Canada and follows through on several mining-related commitments in the federal Liberals’ 2025 election platform. Specifically, the budget proposes, and is not limited to the following: • To provide $2 billion over five years, on a cash basis, starting in 2026- 27, to Natural Resources Canada to create the Critical Minerals Sovereign Fund. The fund will make strategic investments in critical minerals projects and companies, including equity investments, loan guarantees, and offtake agreements. • To provide $371.8 million over four years, starting in 2026-27, to Natural Resources Canada to create the First and Last Mile Fund. This new fund would support the development of critical minerals projects and supply chains at the upstream and midstream segments of value chains, with a focus on getting near-term projects into production. The First and Last Mile Fund would absorb the Critical Minerals Infrastructure Fund and leverage its existing funding envelope to provide up to $1.5 billion in support through 2029-30. The fund would also continue to support clean energy and transportation infrastructure projects related to critical minerals development. • To create the Productivity Super- Deduction – a set of enhanced tax incentives covering all new capital investment that allows businesses to immediately write off a larger share of the cost of these investments. • To remove the proposed oil and gas emissions cap, providing the oil sands mining sector with greater investment certainty. • To extend the availability of the Carbon Capture Utilization and Storage Tax Credit full credit rates by five years so that the full rates apply to eligible expenditures from the start of 2022 to the end of 2035. • To expand eligibility for the Critical Mineral Exploration Tax Credit (CMETC) to include an additional 12 critical minerals necessary for defence, semiconductors, energy, and clean technologies: bismuth, cesium, chromium, fluorspar, germanium, indium, manganese, molybdenum, niobium, tantalum, tin, and tungsten. • To expand eligibility for the Clean Technology Manufacturing Investment Tax Credit to support polymetallic extraction and processing, a longstanding MAC request, and expanding the list of critical minerals eligible for the Clean Technology Manufacturing investment tax credit to include antimony, indium, gallium, germanium, and scandium. • To increase total business facilitated by Export Development Canada by $25 billion by 2030 to support expanding Canada’s exports and trade development activities in sectors of strategic importance for Canada, including in critical minerals, energy, clean technology, infrastructure, and defence. • To renew the Mineral Exploration Tax Credit until 2027, as announced by the previous government last March.Visit us online at www.CanadianMiningMagazine.com 15 • To increase funding to the Canada Infrastructure Bank by $10 billion for nation-building projects. • To allocate $1 billion to Transport Canada to create an Arctic Infrastructure Fund. • To allocate $443.0 million over five years, starting in 2025-26, to Natural Resources Canada and Innovation, Science and Economic Development Canada (ISED) to support the development of innovative critical minerals processing technologies, support joint investments with Allies in Canadian critical minerals projects, and develop a critical minerals stockpiling mechanism to strengthen Canadian and allied national security. • Several measures to support youth employment, including new funding for the Youth Employment Strategy. • Committing to introduce legislative amendments to the Competition Act to remove some aspects of the greenwashing provisions while maintaining protections against false claims. These measures, taken together, send a powerful signal to the mining industry, global investors and Canada’s allies that Canada is very serious about improving the competitiveness of Canada’s mining industry. If implemented, this budget promises to usher in a new era in mining investment, creating high paying jobs, boosting exports, creating major opportunities for Indigenous Canadians and protecting Canadian sovereignty for years to come. Let’s hope the budget is passed through Parliament as expeditiously as possible. CANADA’S MINING MOMENT Now, more than ever, our mining sector sits at the crossroads of powering Canada’s economy and protecting our environment. When our mines thrive, they generate safe, well-paid jobs for hundreds of thousands of people and deliver minerals produced under the highest environmental and labour standards. Our trading partners and allies count on Canada for a secure and stable supply of these critical materials. It’s up to government and industry to join forces and ensure we meet that demand. As we look ahead, we have real strengths to build on. We lead the world in responsible mining practices, from respect for Indigenous and human rights to environmental stewardship and governance. In an era of geopolitical uncertainty and trade disputes, that reputation makes our minerals more valuable than ever. Canada’s mining industry stands ready to power the global energy transition and bolster security for us and our allies. We have a once-in-a-generation opportunity to create shared prosperity from coast-to- coast-to-coast – but that window won’t stay open forever. So, let’s move swiftly and collaborate closely. Let’s get it done. M PIERRE GRATTON WAS APPOINTED PRESIDENT AND CEO OF THE MINING ASSOCIATION OF CANADA (MAC) ON JUNE 1, 2011. BASED IN OTTAWA, MAC IS THE NATIONAL ORGANIZATION FOR THE CANADIAN MINING INDUSTRY. ITS MEMBERS ARE ENGAGED IN MINERAL EXPLORATION, MINING, SMELTING, REFINING AND SEMI-FABRICATION.18 For daily news follow CMM on Facebook and X FEATURE From soaring operational complexity to the race for future-facing minerals, 2026 is pushing the mining industry into uncharted territory. This year’s Top 10 report reveals the pressures, pivots, and possibilities that will shape global strategy in the year ahead. By Theo Yameogo, EY Americas Metals & Mining Leader The Big 10: Global Mining Risks and Opportunities for 2026 As we step into 2026, the metals and mining sector finds itself at a critical juncture, shaped by a confluence of challenges and opportunities that demand both immediate attention and strategic foresight. The ongoing global shifts – ranging from geopolitical tensions to the urgent need for sustainable practices – are redefining the operational landscape for mining companies. As it does every year, EY proudly publishes a comprehensive review of the top risks and opportunities that are primed to influence the sector’s trajectory, surveying 500 mining leaders from across the globe to paint a robust picture of what’s dominating board meetings, fueling strategy, and ultimately driving decision-making. Indeed, breaking new ground in 2026, operational complexity soared to the No. 1 risk and opportunity, having never before broken into the top 10 rankings. Additionally, the rising costs associated with energy, labour, and regulatory compliance are pressing companies to rethink their capital allocation strategies and operational efficiencies. Moreover, as the demand for critical minerals surges in response to defense spending, technology requirements and the global energy transition, the sector must also navigate the complexities of securing a social license to operate amidst heightened stakeholder scrutiny. This article delves into key takeaways from the 2026 report, highlighting the 10 key risks and opportunities that are shaping the future of the metals and mining sector. By understanding these dynamics, companies can better position themselves to not just compete but thrive in a constantly shifting sector. FEATURE 18 For daily news follow CMM on Facebook and XVisit us online at www.CanadianMiningMagazine.com 19 1OPERATIONAL COMPLEXITY – DECLINING ORE GRADES HIGHLIGHT NEED FOR INNOVATION Operational complexity has emerged as the top challenge for the sector in 2026. Declining ore grades, deeper and more complex orebodies, and aging assets make reliable output harder to achieve. Regulatory delays, labour shortages, and infrastructure bottlenecks further exacerbate production constraints. Restoring predictability – and investor confidence – is expected to require a renewed focus on maintenance discipline and alignment between planning and execution. Companies may be forced to rethink their operational strategies, exploring innovative approaches such as smaller trucks and in-pit crushing to enhance productivity. 2RISING COSTS AND PRODUCTIVITY PRESSURES – INFLATION IS EASING BUT OPERATING COSTS REMAIN HIGH Rising costs and productivity have moved up the ranking from sixth to the second most pressing issue. While higher prices for some commodities have boosted revenue, they have also masked underlying productivity losses. Energy and labour costs, along with increased royalties and trade tariffs, continue to squeeze margins. Companies will be required to adopt digital solutions and innovative practices to unlock cost savings and improve productivity. The integration of data-driven operations and automation is expected to be instrumental in addressing these challenges and enhancing overall efficiency. 3CAPITAL ALLOCATION – M&A ACTIVITY IS TARGETING FUTURE- FACING MINERALS This year’s report indicates capital allocation strategies are shifting as companies prioritize growth-focused investments over shareholder returns. The sector is increasingly favouring brownfield projects, which offer shorter development timelines compared to greenfield projects. Mergers and acquisitions are also becoming prominent as firms seek to secure future-facing minerals, particularly in the copper sector. The recent Anglo American-Teck merger exemplifies how strategic imperatives have the power to drive significant sector transactions, underscoring the importance of consolidating positions in critical commodities. 4RESOURCE AND RESERVE DEPLETION – DEMAND IS OUTSTRIPPING SUPPLY As high-grade orebodies are depleted, mining companies have begun moving into more remote and geologically complex regions. This shift presents significant challenges, including increased costs, logistical complications, and environmental risks. Companies will be expected to invest in advanced technologies and innovative extraction methods to effectively navigate these complexities. Focus will necessarily shift toward enhancing recovery from lower-grade ores through improved processing techniques, ensuring that operations remain economically viable. 5LICENSE TO OPERATE – COMMUNITY OPPOSITION DELAYS CRITICAL PROJECTS Holding firmly in fifth from 2025, license to operate (LTO) remains a critical concern for mining companies as they face increasing scrutiny from regulators and communities. Environmental, social, and governance (ESG) considerations are at the forefront of operational strategies. Companies must engage proactively with local stakeholders to build trust and secure their social license or jeopardize project ambitions. This involves transparent communication, community investment, and adherence to sustainable practices that align with societal expectations. 6THE RECKONING OF WORKFORCE DYNAMICS The 2026 report reflects the crystallization of a looming talent shortage and aging workforce concerns, with workforce dynamics settling as the sixth most pressing issue for the sector. The industry must urgently develop robust training and retention programs to attract a diverse range of skills. As automation and digital technologies become more prevalent, companies will need to ensure that their workforce is equipped to adapt to these changes. Investing in employee development and fostering a culture of innovation will be essential for maintaining market competitiveness. 7GEOPOLITICAL RISKS – RISING TRADE BARRIERS THREATEN SUPPLY AND GROWTH Geopolitical risks, while perhaps surprisingly not the foremost concerns for some, remain relevant in the current landscape. Vigilance about potential trade disruptions and local operational challenges is at an all-time high. Building strong relationships with host governments and communities will continue to be essential for mitigating risks associated with geopolitical tensions. A proactive approach to managing these relationships may enhance operational stability and reduce exposure to external shocks. 8DIGITAL TRANSFORMATION – AI IS THE IMMEDIATE NEXT FRONTIER Digital transformation will continue to become nothing short of pivotal for the mining sector, with innovations promoting data-driven operational frameworks. Companies are already being encouraged to leverage artificial intelligence and analytics to enhance operational efficiency and align with long-term strategic goals. The successful integration of these digital tools has the potential to lead to significant improvements in productivity and resource management. However, companies must ensure that their digital initiatives are closely aligned with business priorities to maximize impact. Visit us online at www.CanadianMiningMagazine.com 19Next >