April 7, 2025
2024 was a transitional year for Ontario’s mining sector. Amidst stringent regulatory developments, complexities surrounding financing, and an unpredictable global economic landscape, Ontario mining developers must now contend with numerous considerations.
Partner and head of Torys’ Mining and Metals practice Michael Pickersgill was interviewed by Global Business Reports for its “Ontario Mining and Toronto’s Global Reach 2025” report to explore what these trends mean for the future of the province’s mining sector.
One of the challenges facing not just Ontario’s mining industry, but Canada’s more broadly, is the stringent regulatory environment within which it operates, as well as the number of diverse stakeholder groups that must be considered when passing any new legislation.
“From what we see, Canada at the federal and provincial level has invested significant thinking into a thoughtful and committed plan,” Michael says. “The issue remains in finding ways to execute on that plan, given the number of stakeholders, as well as the competing federal and provincial jurisdiction. There does not appear to be coordinated engagement at different levels of government and with key stakeholders, including, critically, Indigenous communities.”
Read: Torys Quarterly: Canada’s defining moment for energy
Another consideration is the current financial challenges that many Ontario miners—particularly juniors—have faced throughout 2023 and 2024. While the government has introduced incentives to help fund clean energy and infrastructure projects and attract investors, such as the Critical Minerals Infrastructure Fund (CMIF), many claim that the federal funding is too focused on “downstream battery plants and surrounding infrastructure, rather than putting money in the ground for actual exploration,” the report states.
“The challenge is that the funds earmarked by the government and the investment of various interest groups tend to be focused on the pieces of the mining industry that are not extractive,” Michael says. “People are hesitant to invest in the extraction process and would rather be involved in building infrastructure, so there is not as much support for the upstream sector.”
With this said, Michael points out that the money that has been allocated to the CMIF has now been outsourced to expertise outside of the government to try and achieve the deployment of that capital. “I believe this is something that the government is doing right,” Michael says.
Amidst these investment challenges, some junior mining developers are turning toward alternative—yet complex—financing methods, which often come with risks.
“My advice to junior development companies based on the challenges we have seen in financings is two-fold,” Michael says. “First, understand that these new alternative finance providers, while replacing equity, are not wearing an equity hat and will require additional protections that look very much like debt arrangements. Second, a financing plan should have a well thought out plan for shortfalls and timing delays, as these investors will be looking for some cost protection as well as some outside timing protection.”
You can read more about our Mining and Metals work on our practice page.
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