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Ontario Tables Sweeping Bill to Restrict Foreign Access to Critical Minerals
May. 02, 2025 09:20AM PST
While proponents say the changes are necessary to attract investment and compete in a geopolitically competitive market, some have raised alarms about the erosion of safeguards to protect the environment.
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Ontario has introduced legislation aimed at tightening control over the province’s mining and energy sectors by limiting foreign involvement, fast-tracking resource development and scaling back species-at-risk protections.
The Protect Ontario by Unleashing Our Economy Act, 2025, also known as Bill 5, was announced at the Toronto Stock Exchange on April 17 by Premier Doug Ford and Energy and Mines Minister Stephen Lecce.
According to the government, the new bill is designed to “safeguard Ontario’s critical minerals, secure the province’s energy infrastructure, and reduce regulatory bottlenecks that hamper development.”
“With President Trump taking direct aim at our economy, it cannot be business as usual,” Ford declared during the announcement, referring to recent US moves to prioritize domestic supply chains for critical resources.
The proposed law would grant the Ontario government sweeping new powers over the mining sector.
These would include the ability to suspend or revoke mining claims, deny transfers or leases and limit access to Ontario’s Mining Lands Administration System — particularly for entities linked to “hostile foreign regimes.”
It would also allow the government to restrict foreign participation in the province’s energy sector.
“In today’s changing world, we need to be clear-eyed about the risks from those who want to exploit our resource bounty,” Lecce said in an April 25 press release that covers the legislation. “That is why it is essential that Ontario is protecting our critical minerals and energy sector from getting into the wrong hands.”
Kevin Holland, member of provincial parliament for Thunder Bay-Atikokan, added that the measures are especially significant for Northern Ontario, where the economy is deeply tied to resource extraction.
“Ontario is taking important actions to protect our mining and energy assets during this volatile time,” he said.
Rolling back environmental protections
According to the provincial government, the legislation is partially a response to concerns raised in a 2021 national security report in which Canada’s natural resources are identified as a strategic vulnerability.
However, the proposed legislation has sparked sharp criticism from environmental advocates who warn that Bill 5 undermines Ontario’s Endangered Species Act. It would be replaced with a much narrower Species Conservation Act that redefines what constitutes a species’ habitat.
Under current law, a habitat includes all areas a species needs to live, migrate and reproduce. The new definition reduces this to “a dwelling place, such as a den, nest or other similar place,” plus the immediate surrounding area.
Critics argue that this change all but guarantees habitat loss for vulnerable species.
“The definition of habitat is so narrow that what it means is less habitat than the species has now,” Laura Bowman, a lawyer with the environmental law charity Ecojustice, told CBC. “And less habitat than the species has now, for a species already in decline, virtually ensures extirpation or extinction,” she added
The bill would also eliminate the requirement for recovery strategies once a species is declared at risk — a key mechanism under the current law that sets out steps to restore populations to sustainable levels.
The legislation is part of Ontario’s push to accelerate development in the Ring of Fire, a mineral-rich region in the province’s far north. The Ford government has long touted the area’s potential to supply key inputs like nickel, lithium and chromite for electric vehicles and clean technologies. According to the government, Bill 5 will “cut red tape and streamline approvals” to jumpstart projects that are currently mired in lengthy environmental and consultation processes — often involving Indigenous communities whose territories overlap with planned developments.
Despite the growing need for secure critical minerals supply chains, the decision to pair national security rhetoric with the rollback of environmental protections is likely to ignite political and legal challenges in the months ahead.
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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
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