PDAC: Ottawa details $1.5B road, power fund

Canada officially launched on Tuesday a $1.5-billion First and Last Mile infrastructure fund that had been outlined in November’s federal budget to get metals from mines to markets.  

The earmarked cash is to be used for mine site development projects like roads and power transmission, infrastructure enabling midstream processing, and work on transportation routes to markets, Tim Hodgson, Minister for Energy and Natural Resources, said at the Prospectors and Developers Association of Canada convention in Toronto.

“We are even more important today than we were before the weekend,” Hodgson, referring to the Iran war, told delegates. “The world really wants more Canada. So this is an opportunity for us to make very clear to all of our allies, if you are looking for a stable and safe and reliable values-based producer of energy and critical minerals, a producer that will not use that energy or critical minerals for economic coercion, Canada is the place to invest.”

Hodgson listed five projects marked for $115 million of the fund. They were part of $165.2 million across 22 projects, and in addition to 30 projects granted small-scale funding on Monday at the convention. The total capital invested in Tuesday’s projects (not the government funding) is valued at $434 million, the minister said.

Upheaval

U.S.-led global upheaval has pushed Canadian lawmakers to pass the most mining-friendly budget in decades. Leaders say they want to quicken the pace of resource development and broaden trade partners. PDAC is often the place where government funding promises become more detailed by identifying specific amounts.

The budget gave the Natural Resources ministry $372 million in the First and Last Mile fund over four years, starting in 2026-27. The new fund absorbs the former Critical Minerals Infrastructure Fund, Hodgson said.

A $2-billion sovereign fund – which was also mentioned in the budget — is to start “this spring,” Hodgson said. It is to make equity investments, provide loan guarantees and enter into offtake agreements for eligible projects and companies, according to the budget.

First, last

The first set of investments under the First and Last Mile Fund include pre-construction activities like Indigenous engagement, environmental assessments, detailed planning, and shovel-ready projects moving ahead with energy upgrades, the minister said. They include new hydro power in B.C., and transmission lines in Saskatchewan, he said.

The federal government is allocating up to $17.8 million under the Energy Innovation Program for four projects aimed at advancing clean energy technologies.

It is also committing up to $27.5 million under the Critical Minerals Research, Development and Demonstration program for three projects focused on developing advanced mining technologies.

Under the Indigenous Natural Resource Partnerships program, the government will provide up to $2.8 million for three projects intended to increase the economic participation of Indigenous communities and organizations in natural resource development and the clean energy transition.

Data, tool

Ottawa will also allocate up to $2.2 million under the Critical Minerals Geoscience and Data initiative for seven projects designed to generate and improve access to data supporting exploration of critical mineral deposits in Canada.

Hodgson also mentioned a new tool to help companies steer projects through approvals. The Mine Permit Navigator is designed to improve transparency and coordination in federal permitting to support industry partners, he said.

“It will provide proponents with clear guidance on regulatory requirements and defined pathways through approvals,” he said. “It will make sure that mining companies – big and small – can spend less time on bureaucracy, and more time on building.”