Canada has decided to significantly simplify the approval process for major mining and infrastructure projects in response to U.S. tariff threats and to stimulate economic growth.
Mark Carney, the new Prime Minister of Canada, announced on the 21st (local time) after meeting with the premiers of 13 provinces that “the federal government will allow major mining and infrastructure projects with approval only from provincial and territorial governments.”
He added, “We will collaborate with stakeholders, including Indigenous communities, to select key projects and accelerate construction.” As a result, projects approved by provincial governments can commence immediately without further federal review.
Prime Minister Carney stated that the government aims to establish a “National Trade and Energy Corridor” strategy and plans to eliminate all interprovincial trade barriers by July 1. He explained that this could lead to an economic impact of approximately USD 186 billion annually.
Carney emphasized the application of the “One project, one review” principle to eliminate unnecessary procedures, stating, “It is now time to move from discussion to actual construction.”
He highlighted the Cedars Liquefied Natural Gas (LNG) Project in British Columbia and the Churchill Port Revitalization Project in Manitoba as representative projects under this policy.
The Cedars LNG project is a USD 4.3 billion LNG export facility being jointly developed by the Haisla Nation and Canadian oil and gas company Pembina Pipeline. The Churchill Port project aims to modernize a major trade port in northern Manitoba, with an investment of USD 60 million.
Additionally, swift approvals are expected for the “Ring of Fire” mineral development in northwestern Ontario and the Grays Bay Road and Port Project in western Nunavut.
This economic reform initiative is also significant in responding to the tariff threats and protectionist movements from former U.S. President Donald Trump.
Carney stated, “By removing internal trade barriers, we can significantly offset the impact of U.S. tariff measures,” emphasizing the need for the Canadian economy to create more opportunities domestically.
To accelerate project implementation, Canada has also established the “First Mile Fund,” which will support the construction of transmission and transportation infrastructure connecting mining areas with existing road and rail networks.
