Evolving Regulatory Environments

Changing with the times

The ripples of President Trump’s return to the White House extend far beyond trade and top-level politics. His administration has moved to rapidly accelerate the permitting timelines of several key critical mineral projects in the US. The president’s Immediate Measures to Increase American Mineral Production executive order, signed in March, asserted a need for the US to “reduce our reliance on foreign nations,” arising due to what the Order labels “overbearing federal regulation” of mining projects. It tapped into a commonly voiced concern from industry on both sides of the border: mines take too long to develop.

For Canadian jurisdictions, including Québec and Atlantic Canada’s provinces, this poses a competitiveness risk – and so has spurred a redoubled desire to accelerate development. “With the US speeding approvals and easing rules, Québec risks falling behind,” maintained Josianne Beaudry, partner at legal firm Lavery.

Emmanuelle Touissaint, president and CEO of the Québec Mining Association, agreed: “Other jurisdictions – including the US, EU and Ontario – have already acted to streamline permitting for critical minerals. Québec must show similar urgency.”

It makes for a difficult and delicate puzzle. Québec, especially, has been long-renowned for its world-class environmental, social and governance (ESG) regulatory frameworks, which ensure the ubiquity of the highest of standards across its mining sector. At the same time, however, it is viewed as a slow and expensive jurisdiction to develop in. In the Fraser Institute's 2024 survey ranking global mining jurisdictions, Québec slid to 22nd on investment attractiveness, from 5th in 2023, with respondents citing concerns over taxation, regulatory inconsistency and legal hurdles. Industry insiders nevertheless insist that this is not a race to the bottom; that there is ample possibility to accelerate mine development without sacrificing sustainability.

Though the extent to which ESG regulation may be abridged in the US is still uncertain, reaction from industry in Canada has been swift, as noted by PwC’s Québec mining lead, Maxime Guilbault: “Recent shifts toward loosening regulatory frameworks in the US mean that we have seen sustainability advisory begin to move down clients’ priority lists,” he said.

"10 to 15 years to permit a project, as things currently stand, is simply too long. Québec and Canada have enormous potential, but we risk missing this opportunity." Frank Mariage, Partner, Fasken

EY’s Patrick Bertrand-Daoust observed the same: “The rollback of ESG and DEI policies under the Trump administration has created uncertainty for Canadian companies regarding potential shifts in domestic regulations.”

That is to say, the industry appears to be anticipating eastern Canadian jurisdictions will move in a similar direction to their southern neighbors, and is holding off on committing to sustainability initiatives until some new clarity emerges.

Seeking to offer his own developmental impulse, Canadian Prime Minister Mark Carney pledged to remove federal duplication of permitting reviews for major mining, infrastructure and energy projects under what he called a new “one project, one review” approach. “It is time to build,” Carney declared when announcing the policy move. For his part, Québecois Premier François Legault publicly expressed his desire for accelerated permitting in his province in March 2025, to the delight of many industry stakeholders.

It is unclear, though, just how quickly this could happen without sacrificing ESG policy. Dominique Amyot-Bilodeau, partner at law firm McCarthy Tétrault, highlighted a need for “cultural shifts” and “gradual legislative change” in any approach maintaining high regulatory standards. Seeking to maintain or enhance their global competitiveness, while not sacrificing the world-class sustainability they have achieved, regulatory environments across Québec and Atlantic Canada are in something of a state of flux in 2025.

Mixed reviews for Bill 63

In 2024, Québec’s government introduced a number of amendments to the province’s Mining Act, packaged in a legislative item commonly referred to as Bill 63. The amendments, which came into force in November 2024, represent the most substantial update to Québec’s mining regulatory framework in a decade, including changes to exploration rights, new environmental assessment reporting requirements, and a selection of new ministerial powers. GBR spoke with some of Québec’s top mining lawyers to build a picture of the mining sector’s response to the bill, and heard reports of mixed reactions from industry stakeholders.

Among the Bill’s central changes were a series of alterations to requirements upon prospectors in Québec. Where speculators could previously accumulate land claims without intent to develop them further, passively awaiting a potential buyer, the Bill made those claims – now labelled “exclusive exploration rights” – subject to minimum work requirements, providing impetus for active exploration. There has also been some praise for updated environmental assessment processes, including evaluations by the Office of Public Hearings on the Environment (BAPE), which now apply to all new projects regardless of size. Frank Mariage and Dominique Amyot-Bilodeau, partners at Fasken and McCarthy Tétrault respectively, agreed that these changes were broadly accepted gladly by Québec’s mining sector: “These changes were well received, thanks to the industry’s commitment to transparency,” said Mariage; while Amyot-Bilodeau similarly affirmed: “These steps promote credibility and transparency,” and called the changes “positive.”

Other amendments, however, have been regarded as burdensome for exploration companies. Among them was the prohibition of prospecting on lands covered by urbanization perimeters or private holdings, with the municipality or landholder’s consent now required to conduct exploration activity. Exploration in Québec has increasingly moved southward, closer to denser urban areas less acquainted with mining, as demand for the region’s critical mineral reserves has risen in recent years. Amyot-Bilodeau commented on the potential challenge this presents to mineral explorers: “This shift may hinder future discoveries, especially as demand for strategic minerals rises. Many of today’s priority minerals were not considered critical a decade ago, underscoring the need for territorial flexibility.”

Mariage summarized explorers’ responses, in the context of a challenging financial market for junior miners: “Extra burdens for juniors, when they are already struggling to fund their activities, have not been well received. We have to make exploration easier, not harder.”

Meanwhile, new discretionary powers for the Minister of Natural Resources and Forests, allowing the Minister to restrict access to mining lands or roads in cases of safety concerns, or to order the relocation or removal of mined material, were also widely regarded as concerning. The lawyers interviewed for this report identified the potential for these new powers to further politicize mining project development and foment uncertainty for explorers and their potential investors. “The bill introduces uncertainty, adds regulatory complexity, and is seen as increasing operational risk,” asserted Andrew Disipio, partner at Bennett Jones.

Responding to those concerns, Minister Maïté Blanchette Vézina assured that the new powers did not present a barrier to mining: “These are exceptional measures, rarely used, and not intended to block development. Since the law was adopted, I have had no intention of exercising them. Their purpose is to enhance social acceptability and ensure projects move forward more smoothly, not to create obstacles,” she said.

Lavery’s René Branchaud and Josiane Beaudry highlighted an additional potential knock-on effect of Bill 63’s provisions: with the US moving to liberalize parts of its mining regulatory framework, there remains a risk that these Mining Act amendments drive up costs for explorers, frustrating Québec’s relative jurisdictional attractiveness. Bennett Jones’ Disipio was explicit on this point: “While responsible governance is essential, Bill 63's amendments to the Mining Act do little to make Canada more attractive and competitive as a global mining jurisdiction,” he advised.

"Eastern Canada offers world-class geology and an excellent environment for mining and exploration. These provinces offer government support, skilled workforce, reliable infrastructure and positive community relations." Rajesh Sharma, President and CEO, Fancamp Exploration

Making Atlantic mining attractive In Nova Scotia, concerted efforts from government and industry stakeholders are aimed at a turnaround for the province’s mining fortunes. It ranked a paltry 79th (of 82) in the Fraser Institute’s 2024 survey – by far the lowest in Canada, and placed alongside international peers including Bolivia (76th), Mozambique (78th) and Niger (80th). Sean Kirby, executive director of the Mining Association of Nova Scotia, described how a four-decade buildup of red tape, including a total ban on uranium mining and exploration, which he described as “based more on politics than science,” had stifled the sector.

In early 2025, Nova Scotian Premier Tim Houston vowed to make a change – to “take the ‘no’ out of Nova Scotia.” Since then, his administration has slashed through previous restrictions, including the aforementioned uranium ban. Speaking with GBR, he said: “Some parts of Canada have been developing their natural resources, while others have not. Nova Scotia has been among the latter. It is time for us to step up, and I am trying to lead Nova Scotia in that direction.”

In New Brunswick, an upcoming new governmental mineral strategy – due for publication in October 2025 – aims to accelerate natural resource development while maintaining high environmental and social standards. The province's minister of natural resources, John Herron, tasked with putting the strategy together, promised a highly tailored “white glove” approach to welcoming new projects, and a focus on predictability to attract investors. He also emphasized how New Brunswick’s small size makes it agile and accessible for miners. Minister Herron described New Brunswick's government’s methodology as one of being “constructively impatient, but committed to getting it right” – pushing for speed, but committed to sustainability.

In its reforming efforts, the Ministry will presumably be buoyed by the fact that it is a sentiment already echoed by companies operating in the province. Rajesh Sharma, president and CEO of gold explorer Fancamp Exploration, said the jurisdiction’s access is “excellent,” while Manganese X Energy Corp’s CEO Martin Kepman described the provincial government as “highly supportive.”

"Nova Scotia has a negative reputation in the global mining industry as a place to invest, and our permitting system is a major reason. To help build a stronger province, we need clear, science-based, consistently-applied rules." Sean Kirby, Executive Director, Mining Association of Nova Scotia

Newfoundland and Labrador, meanwhile, has successfully established itself as a top-tier mining jurisdiction. Fraser Institute rankings since 2020 placed the province in 8th, 21st, 4th, 9th and 6th on global attractiveness, indicating a consistently positive view from investors and mining operators. When asked what could be done to push the province to even greater heights, Amanda McCallum, executive director of Mining Industry NL, expressed her desire to see a simplification of the province’s permitting and land access systems, which she described as “overlapping.” Since 2022, the province has been reviewing its Mineral and Mining Acts, with an aim to modernize its legislative and regulatory framework. It published its Critical Minerals Plan in late 2023. Among the provisions of the Plan was the labelling of high-purity iron as a critical mineral – Newfoundland and Labrador was the first Canadian province to do so, signalling an intent from the province to remain on the front foot in its critical mineral ambitions.

Article header image by All in Stock at Adobe Stock

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