Canada’s mining industry calls for sweeping reforms to stay competitive – report

Canada’s mining sector contributed C$111 billion ($80.9B) to the country’s gross domestic product in 2024, accounting for 3.6% of the economy, according to the Mining Association of Canada’s (MAC) new report, released Wednesday: Facts & Figures – The State of Canada’s Mining Industry, an overview of current trends in Canada’s mining sector based on the latest statistics and analysis. 

Canada’s mining sector is a leader in the world, MAC said. Mineral exports make up a substantial portion of all goods exported: Canada’s C$152 billion in mining exports in 2024 was 21% of the value of all merchandise exports.  

Gold has become increasingly important: in the first ten months of 2025, Canada’s gold exports were worth an average of C$4.3 billion every month. 

The sector encompasses extraction, mining services, primary metal and mineral manufacturing, and downstream metal and mineral manufacturing. When mining, quarrying and oil and gas extraction are included, the sector’s contribution rises to more than 5% of Canada’s GDP, representing a stable and significant share of the economy over the past decade, with Alberta’s mined oil sands playing a major role, the report says.  

Canada’s largest export markets for minerals and metals in 2024 was the United States, which accounted for 51% of shipments, followed by the United Kingdom at 15.6% and the European Union at 7.7%. 

On the import side, Canada brought in $126 billion worth of minerals and metals last year. The United States remained the country’s top supplier, representing 45.8% of imports, while China accounted for 11.9% and the European Union 9%. 

MAC said growing export controls, tariffs and trade bans are creating volatility across global mineral markets, particularly as mining and processing capacity remains concentrated in only a handful of countries.  

The group warned that supply disruptions could trigger shortages and price spikes in sectors such as clean energy and defence. 

Against that backdrop, the association said Canada is well positioned to benefit from efforts by the G7 and allied nations to secure reliable supplies of critical minerals. It pointed to Canada’s low-carbon refined metals and high environmental, social and governance standards as competitive advantages in global procurement markets. 

To capitalize on the opportunity, however, the authors said Ottawa must move faster to approve mining projects, expand infrastructure and introduce competitive fiscal incentives to attract investment. 

MAC also called for expanded geoscience work and mineral resource assessments, particularly in northern Canada, where it said the potential for new discoveries remains high. 

According to the report, measures introduced in the 2025 federal budget — including broader eligibility for exploration and clean technology tax credits, as well as accelerated capital cost expensing — could help boost production of minerals needed for defence, semiconductors and clean technologies. 

Still, the association stressed that the effectiveness of those measures will depend on how quickly they are implemented.  

Reforms needed, association says  

MAC also recommended further reforms, including extending Canadian Exploration Expense eligibility to technical studies and making development costs for brownfield mine expansions fully eligible for tax credits. 

The report noted that mining projects in Canada continue to face lengthy and complex approval processes involving provincial regulations, federal impact assessments and multiple federal permits. 

While governments have started reforms aimed at shortening timelines, the association said further improvements are needed, including better federal-provincial coordination, stronger cooperation between departments and more efficient consultation and permitting processes. 

The full report is here.