The House of Commons Standing Committee on Natural Resources met to study critical minerals, hearing from representatives of the helium and mining industries, the Business Council of Canada, and the Manitoba Métis Federation. Witnesses included Richard Dunn (Helium Developers Association of Canada), Pierre Gratton and Photinie Koutsavlis (Mining Association of Canada), Jeff Gaulin (Vale Base Metals Canada), Michael Gullo (Business Council of Canada), and Peter Fleming (Manitoba Métis Federation).
Richard Dunn stated that Canada’s helium sector is struggling due to uncompetitive tax treatment, including exclusion from standard depreciation schedules and the flow-through shares program, which has slowed exploration and driven companies to the U.S. He recommended amending the Income Tax Act to designate helium as a mineral resource, arguing this would unlock private investment, enable domestic liquefaction, and reduce reliance on U.S. facilities, especially given Russian market saturation and security-of-supply concerns.
Pierre Gratton argued that Canada’s mining sector faces a critical moment, with U.S. tariffs and Chinese dominance in downstream processing underscoring the need to boost domestic production. He called for amending the clean manufacturing investment tax credit to lower the 90% critical mineral content threshold for polymetallic deposits and to expand eligibility beyond battery metals to include defence-related minerals, warning that without changes, investment will go elsewhere.
Jeff Gaulin emphasized that Canada can be a secure global supplier of critical minerals but needs to sharpen its competitiveness. He recommended positioning Canada as a supplier of choice for NATO, expanding investment tax credits to cover mine development expenses, encouraging Canadian pension funds to invest in critical minerals, and streamlining work visas for global mining talent, noting that the U.S. is accelerating mine permitting and could become a competitor.
Photinie Koutsavlis noted that Canada’s mining sector is a global leader in low-carbon production, with greenhouse gas intensity falling by about 3% per year from 2014 to 2023. She stressed that maintaining strong output-based carbon pricing and reinvesting revenues into low-carbon innovation is essential to balance climate goals with competitiveness in globally traded industries.
Michael Gullo argued that Canada has lost market share in critical minerals due to slow regulatory processes and a lack of a national trade infrastructure strategy. He recommended creating a critical mineral reserve for NATO allies, raising project designation thresholds to enable “one project, one assessment,” and benchmarking financial incentives against global competitors to unlock capital, noting that Canada has the third-longest lead time for mining projects globally.
Peter Fleming stated that the Red River Métis, as section 35 rights holders, must be included in critical mineral development, with improved consultation and economic participation. He highlighted a direct royalty agreement with a potash company as a model and supported expanding the port of Churchill as a major project, while warning that the federal government’s focus on economic reconciliation often overlooks social aspects like protecting cultural sites.
The committee also discussed regulatory challenges, with several witnesses noting that Canada’s permitting processes are among the slowest in the OECD, and that Bill C-5 is a positive step but insufficient without broader structural reforms to reduce duplication and speed up approvals.
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