Indigenous-owned businesses are a major force in Canada’s economy, contributing $56 billion and growing each year. Their success highlights the strength of investments in industries around Indigenous territories and the key role these businesses play in driving economic growth.
As Indigenous communities gain greater economic traction in Canada and Indigenous firms increase their participation in capital markets, the critical minerals sector is poised for exponential growth. With rising global demand for minerals essential to clean energy and advanced technologies, Indigenous-led partnerships and investments are playing a crucial role in resource development.
Critical Minerals: Opportunities and Challenges
Critical minerals such as lithium, nickel, and cobalt are essential to modern industries, particularly in the development of clean energy technologies. Canada has vast reserves of these minerals, and Indigenous communities often hold significant land rights over resource-rich areas. The global push for electrification and renewable energy sources has increased the demand for these minerals, making their extraction and processing a lucrative business opportunity.
Reserves of the six priority minerals have a gross value of more than $300 billion. Focusing on the six priority minerals, Canada’s reserves of cobalt, graphite, lithium, nickel, and rare earth elements rank in the top ten globally while copper reserves are the 13th highest in the world. The country accounts for about 3 percent of global lithium reserves, around 2 percent of reserves of cobalt, graphite, and nickel, and almost 1 percent of copper and rare earth elements reserves.
Extracting six key minerals could lead to around $80 billion in capital investment. Mining requires significant upfront spending, mainly for construction, machinery, and equipment. Estimates from roughly 40 proposed projects show capital costs ranging from $75 million to over $8 billion, with an average of more than $1 billion per site. If these projects move forward, they could bring nearly $60 billion in initial construction investment, plus an extra $20 billion for maintenance and equipment replacement during production.
These projects could add over $500 billion to Canada’s GDP. The development phase alone could contribute $63 billion, create about 95,000 full-time jobs, and generate around $12 billion in tax revenue. Over the lifetime of these mines, GDP gains could reach $460 billion, with tax revenues climbing to $85 billion. This growth would benefit both the national economy and Indigenous communities, creating lasting economic opportunities.
British Columbia’s Role in Critical Minerals and Indigenous-Led Development
British Columbia is in a strong position to play a major role in the global critical minerals market. As Canada’s leading producer and exporter of copper, a key material in renewable energy technologies, the province has a well-established mining sector. While BC’s copper deposits are often classified as low-grade, their high gold content and efficient extraction processes make them competitive with those in Chile and Peru.
Beyond copper, the province holds considerable nickel reserves, particularly in central BC, some of which also contain commercially viable amounts of cobalt. With rising demand for critical minerals in electric vehicle batteries and clean energy, BC’s mining industry has significant potential for sustainable growth.
Each year, nearly $750 million is invested in mineral exploration across the province, reinforcing BC’s reputation as a global centre for geoscience and mining expertise. Many of its mineral deposits contain multiple valuable materials, and new processing technologies could improve extraction efficiency.
Recognising the sector’s importance, the British Columbia government has released a critical minerals atlas, mapping out potential reserves on Indigenous lands and highlighting the vital role of First Nations in resource development. Strengthening partnerships with Indigenous communities will not only create economic opportunities but also encourage further investment, particularly from the United States, which has been actively supporting Canadian critical mineral projects.
Canada Leads U.S. Mineral Trade, and Is Strengthening Ties with the UK
Canada remains the largest supplier of minerals and metals to the United States, with $46.97 billion in imports in 2023, far outpacing China at $28.32 billion and Mexico at $28.18 billion. As a resource-rich nation with a well-developed mining sector, Canada plays a crucial role in securing mineral supply chains for the US, particularly in critical minerals essential for technology and defence. While Canada and the US continue to strengthen cooperation through initiatives like the Canada-US Joint Action Plan on Critical Minerals Collaboration, the UK is also deepening its engagement in the sector.
In March 2023, the UK and Canada agreed to work together on critical minerals, followed by the UK-Canada Joint Science and Technology Cooperation Committee in April 2023, which set research priorities for mineral integration. Most recently, in January 2024, the two nations renewed their partnership to expand collaboration in science, innovation, and technology, sectors that rely heavily on critical minerals. With this growing alliance, Canada could become the UK’s leading trade partner in critical minerals, strengthening supply chains and supporting efforts to secure reliable sources for key industries.
Indigenous Leadership in Mining
Many Indigenous communities have formed partnerships with mining companies or taken ownership stakes in mineral projects. These initiatives create employment opportunities, infrastructure improvements, and revenue streams that support Indigenous self-determination. Through agreements such as Impact Benefit Agreements (IBAs), Indigenous communities negotiate economic benefits, environmental protections, and social development commitments.
Some Indigenous groups in Canada have entered joint ventures with mining firms to extract lithium and other essential minerals needed for electric vehicle batteries. These partnerships provide Indigenous communities with financial stability while allowing them to take an active role in resource governance.
Critical Minerals Strategy
The Government of Canada highlights the following key points as outlined in the Critical Minerals Strategy:
- Open Economy and Stable Governance – Canada remains one of the world’s leading mining nations, with mineral exports valued at $102 billion in 2020, accounting for 21% of total domestic exports.
- Established Manufacturing Sector – Employing around 1.7 million people in 2019, Canada’s manufacturing industry plays a key role in integrating critical minerals into supply chains. The country is also the world’s sixth-largest commercial vehicle manufacturer.
- Abundant Clean Energy Resources – In 2019, 75% of Canada’s electricity was generated from hydro, nuclear, wind, and solar power, enabling more sustainable mining operations.
- World-Class Mineral Resources – Canada’s mining sector contributed approximately $125 billion to the national GDP in 2021, accounting for 5% of the total economy.
- Advanced Mining Expertise – With a well-established network of research and development facilities, Canada continues to drive innovation in mineral exploration, extraction, and processing.
- Strong ESG Standards – The Mining Association of Canada’s Towards Sustainable Mining (TSM) framework is globally recognised for its commitment to environmental and social responsibility. TSM is mandatory for all MAC members operating in Canada.
Considerations for Responsible Development
While mining presents economic opportunities, it must be approached with care and respect for Indigenous lands and communities. Environmental concerns such as land degradation, water contamination, and biodiversity loss require careful management, particularly given the deep spiritual and cultural ties many Indigenous communities have to the land. Where the sea meets the land, every resource carries deep significance. Ensuring their respectful and responsible use is not just a priority—it is a fundamental necessity to prevent missteps and costly mistakes.
Navigating the regulatory landscape adds another layer of complexity. Indigenous businesses must work through permitting processes, federal and provincial regulations, and extensive community consultations to ensure projects align with both legal requirements and cultural values. Additionally, market fluctuations pose challenges, as the value of critical minerals depends on global demand and technological advancements.
Potential Returns
The long-term returns for Indigenous-led mining initiatives can be substantial. Increased economic independence, job creation, and revenue generation contribute to community development, funding essential services such as healthcare, education, and housing. Moreover, Indigenous-led mining projects are often at the forefront of sustainable and ethical mining practices, setting a precedent for responsible resource development in Canada.
The Canadian Indigenous Investment Summit
Critical minerals are a key driver of foreign direct investment (FDI), attracting capital that fuels research, development, and technological advancements. Increased FDI strengthens innovation, accelerates industry growth, and creates lasting economic benefits. Investing in critical minerals not only supports resource development but also enhances global competitiveness and supply chain resilience.
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