Natural Resources

The House of Commons Standing Committee on Natural Resources met to study the supplementary estimates (B) for 2025-26 for the Department of Natural Resources. The Minister of Energy and Natural Resources, Tim Hodgson, appeared alongside deputy and assistant deputy ministers Jeff Labonté, Michael Vandergrift, Isabella Chan, and Glenn Hargrove.

Minister Hodgson opened by framing Canada’s resource development as a "wartime-like effort" to retool the economy, diversify exports, and accelerate major projects through the new Major Projects Office, which he said has already referred two waves of nation-building projects expected to attract nearly $116 billion in investment. He highlighted the supplementary estimates’ $50.3 million increase, including $23.3 million for a defence stockpiling initiative to accelerate domestic critical minerals processing, and stressed that economic reconciliation with Indigenous peoples is central to this work.

Jeff Labonté, Associate Deputy Minister, confirmed that conflict of interest screens are put in place for specific individuals when projects are considered for designation under the Major Projects Office, but he had no further knowledge about whether any specific project was subject to such a screen. He also noted that four NRCan staff have been seconded to the Major Projects Office and that NRCan was among several departments that contributed input to the referral lists.

Michael Vandergrift, Deputy Minister, stated that the department follows various scenarios on global oil demand and that carbon capture and storage technology is important for Canada, with nine business projects currently under way. He said the department has invested in research and development to advance these technologies and that the Pathways Plus project is considered a good project to help meet emissions targets.

Isabella Chan, Senior Assistant Deputy Minister, Lands and Minerals Sector, explained that the critical minerals production alliance announced under the G7 presidency aims to pool demand and address price volatility, and that the $1.5-billion critical minerals infrastructure fund has already announced over $300 million for roads and clean energy to support remote mining projects. She also described the 30% non-refundable critical mineral exploration tax credit for a list of minerals including bismuth, cesium, and chromium, which is harmonized in five provinces.

Glenn Hargrove, Assistant Deputy Minister, said the $500 million in budget 2025 for the forestry sector will support innovation, mill retooling for value-added products like mass timber, research and development, demonstration projects, Indigenous participation, offshore market development, and improved data and monitoring.

During questions, the minister declined to say whether the tanker ban would be exempted or repealed for a potential pipeline project, calling it hypothetical, and stated that the government will work with proponents that have First Nations and jurisdictional support. He also rejected characterizations of the Canadian Nuclear Laboratories contract as a "corporate raid," noting that all management and 95% of employees are based in Canada, and that the Competition Bureau’s review is a normal process. On forestry, the minister said the government is focused on reducing dependence on U.S. commodity exports by building more manufactured homes with Canadian mass timber through the Build Canada Homes program, and that liquidity support for the sector is being prioritized.

The committee debated a Conservative motion to study the awarding of the Canadian Nuclear Laboratories management contract to a consortium of U.S. companies, with the mover arguing it raises concerns about sovereignty and medical isotope monopoly, while Liberal members called the rhetoric superheated and moved to adjourn debate, which was agreed to on division.