Canada’s 2025 federal budget commits billions to expanding the mining sector even as the government projects a 78.3 billion Canadian dollar ($55.3 billion) deficit for the fiscal year ending March 31. The plan includes major funding and tax incentives aimed at positioning the country as a leading global supplier of critical minerals.

The budget allocates 2 billion Canadian dollars ($1.42 billion) over five years to establish a sovereign fund for critical minerals under Natural Resources Canada. The fund will take equity stakes in mining companies, provide loan guarantees, and sign offtake agreements.

“These measures send a powerful signal to global investors and allies that Canada is serious about improving the competitiveness of its mining industry,” Mining Association of Canada President Pierre Gratton