Grants and Funding Opportunities in the Mining Sector in Canada for 2025

These measures aim to encourage the exploration of new deposits, the development of innovative technologies, the transition to greener practices, and the support of local communities. In other words, public aid for the mining sector takes multiple forms: direct funding, targeted government programs, exploration tax credits, and regional initiatives.

Across Canada, there are mining grants at both the federal and provincial levels. The federal government offers funds and national programs targeting mining companies of all sizes, while each province (and territory) has its own programs tailored to its geological and economic context. This mining support in Canada is especially important in the current context of a rush for critical minerals for clean technologies (lithium, nickel, rare earth elements, etc.) and the need to decarbonize mining operations.

In this report, we will review the main types of mining sector funding available. We will successively examine federal support programs, provincial grants (Quebec, Ontario, British Columbia, and other regions), tax credits related to exploration, funding dedicated to innovation and green technologies, support for small and medium-sized mining enterprises (SMEs), subsidies for energy transition and decarbonization, as well as specific programs for Indigenous communities. We will then describe the application process for mining grants and present some case studies of companies that have benefited from this financial assistance. The objective is to provide a clear and complete overview of the grants and funding available for mining companies in Canada, to help industry players identify the relevant support for their projects.

Federal Support Programs for Mining Companies

At the federal level, Canada has a range of programs aimed at supporting mining companies, whether for exploration, project development, technological innovation, or partnerships with communities. Here are the main government programs for the mining sector offered by the federal government:

• The Strategic Innovation Fund (SIF): This national fund invests in large-scale innovative industrial projects. The mining sector is eligible for the SIF, particularly for projects involving operations modernization, adoption of new technologies, or resource transformation. For example, the SIF supported the creation of networks such as the Mining Innovation Commercialization Accelerator (MICA), a program that funds collaborative projects and helps mining SMEs commercialize innovations. The SIF can contribute up to 50% of eligible expenses for a major project, often in the form of repayable or partially repayable contributions, and seeks to stimulate additional investments from the private sector. For mining companies undertaking an innovative project (advanced ore processing plant, cleaner production process, etc.), the SIF is an important financing option.

• Programs dedicated to critical minerals: As part of Canada’s Critical Minerals Strategy, the federal government has set up several programs specifically targeting projects related to critical and strategic minerals (such as lithium, cobalt, graphite, rare earths, nickel, etc.). Among these programs are:

  • The Critical Minerals Infrastructure Fund (CMIF): This fund finances essential infrastructure for the development of new critical mineral mines. It may include access roads, electrical grid connections, transportation or clean energy infrastructure needed to exploit deposits in remote regions. For example, in 2024, the CMIF awarded grants for the construction of roads and power lines related to a lithium mine project in Ontario and a copper project, to facilitate resource delivery to markets. This type of funding reduces logistical barriers and initial costs for mining companies developing new projects in hard-to-access areas.

• The Critical Minerals Research, Development and Demonstration Program (CMRDDP): This program provides funds for research and development (R&D) and pre-commercial demonstration projects related to critical minerals. It aims to support the emergence of innovative exploration, extraction, processing, or recycling technologies for these strategic substances. For example, a company developing a more efficient extraction process for a rare element could receive partial funding for its R&D costs through this program.

• International Partnerships for Critical Minerals: The federal government also encourages international collaborations to strengthen critical mineral supply chains. An International Partnerships Program exists to fund joint projects with foreign partners (allied governments, research institutes, international companies) aimed at securing supplies or developing shared technologies. While these funds indirectly benefit Canadian mining companies, they are generally structured through specific calls for proposals in collaboration with other countries.

• The Critical Minerals Geoscience Initiative: This component finances the collection and dissemination of geological data on critical mineral potential in Canada. This involves geophysical surveys, geochemical analyses, and the provision of information to prospectors and companies. Indirectly, this is a valuable aid by reducing exploratory risk for mining companies searching for new deposits.

• The Indigenous Natural Resource Partnerships Program (INRPP): Although it covers several natural resource sectors, the INRPP is highly relevant to mining. With $80 million in contributions, it aims to increase the economic participation of Indigenous communities in natural resource projects. Specifically, Indigenous organizations or communities can obtain public funding for initiatives related to mining projects: feasibility studies led by a community, training of Indigenous workers for mining jobs, creation of Indigenous mining service companies, etc. For example, this program recently financed the purchase of equipment (such as drills) by a First Nations partnership in Ontario, enabling them to win a drilling contract for a nickel and copper mine. This type of financial aid allows Indigenous peoples to become true partners and beneficiaries of the economic benefits of mining.

• Regional Development Agencies: Canada has federal agencies tasked with regional economic development (such as FedNor for Northern Ontario, DEC for Quebec, PrairiesCan in the West, CanNor in Northern Canada, etc.). These agencies manage grant or contribution programs that, although not exclusive to the mining sector, are often used to support mining or para-mining projects that create jobs in the regions. For example, a mining service company in Nunavut or Yukon could receive a contribution from CanNor to expand its facilities or invest in equipment, aiming to stimulate the local economy. Similarly, FedNor has previously financially supported mining innovation centers in Ontario or ore processing plant projects in the province’s north. The funding from these agencies typically covers a portion of capital or start-up costs for a project with regional benefits, often as non-repayable contributions or interest-free loans.

• Sustainable Development Technology Canada (SDTC): This federal organization funds companies developing innovative clean technologies. In the mining sector, SDTC (known as TDDC in French) has supported numerous projects—for example, new mine site remediation techniques, processes to reduce water consumption or emissions, or electric equipment for mining operations. Mining SMEs focused on environmental innovation can apply to SDTC calls for proposals to obtain substantial grants (often in the millions of dollars) covering part of the costs of developing and demonstrating their clean technologies.

• Canada Infrastructure Bank (CIB): Although not a traditional grant, this public bank can invest through low-interest loans or equity in infrastructure related to the mining sector. For example, the CIB could contribute to the financing of a railway link to a mining district or a renewable energy project powering several remote mines. These investments reduce capital costs for infrastructure benefiting mining companies. It is a complementary financing tool to direct grants, geared toward large infrastructure projects.

In short, the federal government offers a diversified range of mining support, from direct grants to tax credits, including strategic loans and contributions. Mining companies, whether junior explorers or major producers, can benefit from these programs. It is important to note that many federal funding programs require a form of counterpart: promoter investment, collaboration with partners, or alignment with national priorities (such as critical minerals or emissions reduction). Nevertheless, this government support can be decisive for the financial viability of many large-scale mining projects.

Provincial Grants in the Mining Sector (Quebec, Ontario, B.C., etc.)

Each Canadian province has its own programs and incentives to support the mining industry within its territory. These provincial government programs for mining reflect regional priorities, whether to stimulate exploration, encourage investment in mines, promote innovation, or ensure local benefits. Below is an overview of the main assistance provided by key provinces (Quebec, Ontario, British Columbia) as well as a glimpse of other regions.

Quebec: Extensive Support and Generous Tax Incentives

Quebec is known for its strong support of the mining sector, particularly for mineral exploration. Among Quebec’s key measures:

• Refundable Tax Credits for Exploration: Quebec offers a refundable tax credit to companies that incur mineral exploration expenses in the province. This credit, which is refundable (meaning it is paid even if the company owes no tax), varies by region and company type. For an exploration company that does not yet operate a mine (often a junior), the credit can cover 28% of exploration expenses incurred in Quebec (and even up to 38.75% if the work is carried out in the Middle or Far North of Quebec, more remote areas). These generous rates, among the highest in Canada, substantially reduce the net cost of exploration for juniors. Even mining companies already in production are entitled to a credit (although the rate is lower, for example 12% of expenses in southern regions). This measure was designed to maintain Quebec’s attractiveness in comparison with similar gold jurisdictions and has encouraged many discoveries over the years.

• Quebec Flow-Through Share Regime: In addition to the corporate credit, Quebec has its own flow-through share regime that is very advantageous for investors. In addition to the 100% deduction of transferred exploration expenses (as across Canada), Quebec grants subscribers an additional deduction of up to 20% of the amount invested in flow-through shares. By combining all tax benefits (federal and Quebec), a Quebec investor in an exploration company’s flow-through shares can deduct up to 120% of their investment from taxable income. Furthermore, Quebec allows a capital gains tax exemption on part of the gain from the sale of these shares (up to the subscription cost). This highly attractive tax regime is designed to attract capital to mineral exploration projects in Quebec, particularly for critical minerals, where the province aims to become a leader.

• Program to Support Sustainable Development in the Mining Sector: Launched in 2022, this Quebec program aims to help mining companies (especially exploration companies and their suppliers) improve their environmental and social practices. For example, Component A of this program subsidizes companies seeking to obtain sustainability certifications (such as the ECOLOGO® certification for responsible exploration). Financial assistance is provided to cover part of the audit and compliance costs. The total program envelope is modest (a few million dollars over several years), but it supports multiple small initiatives contributing to more responsible mining. In 2024, the Quebec government awarded, through this program and in partnership with the Quebec Research Fund, nearly $6 million in grants to 16 applied research projects aimed at solving technical and environmental challenges in the mining sector, particularly related to critical minerals and reducing the ecological footprint of operations.

• State Corporations and Mining Investment Funds: Quebec also uses financial levers through its state-owned companies or specialized funds. Investissement Québec (IQ), the government’s financial arm, frequently takes equity stakes in strategic mining projects or offers low-interest loans. For example, IQ has invested alongside private partners in lithium mine projects for battery production to ensure development in Quebec. Similarly, Quebec created dedicated funds such as the Capital Mines Hydrocarbons Fund (formerly used to invest in major mining projects) and SIDEX (an investment fund created in partnership with the industry, aimed at injecting venture capital into small exploration companies). These mechanisms are not traditional grants, but rather direct investments or patient financing, reflecting public commitment to project success. They complement grants by providing additional financial resources to mining companies in need.

• Northern and Indigenous Initiatives: Quebec places particular importance on mining development in the North (Plan Nord) and on the involvement of Indigenous communities. One original measure is the Indigenous Exploration Fund Agreement: the government encourages Indigenous communities in the Middle and Far North to establish their own mineral exploration funds. Quebec can provide up to $350,000 per year per Indigenous fund, provided the community also contributes. These funds are used to finance activities such as prospecting on Indigenous lands, training Indigenous prospectors, promoting local mineral potential, and even creating small exploration companies owned by the communities. Two such funds already exist (one managed by the Inuit of Nunavik, the other by the Cree of the James Bay region), strengthening the capacity of Indigenous peoples to actively participate in the mining industry on their traditional territory. Moreover, Quebec shares a portion of mining revenues (royalties) with certain Indigenous communities, ensuring that the benefits also reach local populations.

In summary, Quebec offers a coherent set of mining financial aid: very generous tax advantages for exploration, targeted subsidies for sustainable development and innovation, and strategic financial interventions through state-owned entities. This comprehensive package makes Quebec one of the most attractive jurisdictions to launch and develop mining projects, particularly in the field of exploration.

Ontario: Support for Exploration and Critical Minerals

Ontario, another major mining province (notably for gold, nickel, and battery metals), has implemented new programs in recent years to boost exploration and innovation, in addition to its established measures:

• Ontario Junior Exploration Program (OJEP): Launched in 2021, the Ontario Junior Exploration Program is a targeted grant for small exploration companies. The program offers up to $200,000 per project, covering a maximum of 50% of eligible exploration expenses (drilling, analysis, studies, etc.). It explicitly aims to encourage exploration in the province, both for traditional minerals and critical minerals. Juniors receiving this grant must cover the other half of the costs, ensuring leverage. The OJEP has already benefited many companies: for example, in 2022, several small gold and lithium companies announced having received OJEP support to carry out drilling campaigns in Northern Ontario. This aid reduces their need to raise funds on the markets, which can be difficult in the early prospecting phase.

• Critical Minerals Innovation Fund (Ontario CMIF): Not to be confused with the federal CMIF, Ontario has created its own fund (often referred to as the Critical Minerals Innovation Fund in English) to support innovative projects in the critical minerals supply chain. Initially endowed with $5 million over two years, this program provides funding of up to $500,000 per project, covering 50% of eligible costs. Eligible projects include R&D, development of new extraction or processing technologies, improved processes to enhance critical mineral value, etc. The goal is to strengthen Ontario’s critical minerals sector by stimulating investments and collaboration between actors (mining companies, tech SMEs, universities). For example, a research project to more efficiently extract rare earth elements from a complex ore could receive this funding. The fund’s terms include staggered payments (part upon approval, part mid-project with a progress report, and the remainder upon delivery of results), ensuring serious execution. This fund is part of Ontario’s Critical Minerals Strategy published in 2022, which is the province’s roadmap for developing resources like the Ring of Fire chromite, northwestern lithium, etc.

• Ontario Tax Incentives: On the tax side, Ontario offers individuals a tax credit for flow-through shares related to exploration expenses in the province (often called the Ontario Focused Flow-Through Tax Credit). This credit equals 5% of exploration expenses incurred in Ontario via flow-through shares. In practice, an Ontario investor subscribing to flow-through shares of a junior active in Ontario will be eligible for a 5% investment credit, in addition to federal deductions. This rate is more modest than in Quebec or British Columbia, but it still improves the attractiveness of investing in Ontario-based exploration. Ontario also provides, at the corporate level, a mining tax exemption for new mines during an initial period (to encourage investment in new production), although this is more of a mining tax regime than a direct grant.

• Northern Ontario Heritage Fund (NOHFC): The NOHFC is a Northern Ontario economic development fund. It is not exclusive to the mining sector but regularly funds mining-related projects. For example, the NOHFC can provide grants or loans to a mining service company to set up operations in a northern town or co-finance the construction of local infrastructure (secondary access road, vocational training, etc.) linked to a job-creating mining project. Ontario, through this fund, has supported the expansion of mining camps, the establishment of training centers for mining trades, or the purchase of specialized equipment by Northern SMEs supplying the mines. This support enhances the local economic benefits of mining activities and helps regional small businesses grow through mining opportunities.

• Indigenous Measures and Revenue Sharing: Ontario has recently implemented revenue-sharing agreements with certain First Nations. For example, for mines on traditional lands in Ontario’s Far North, a portion of the provincial mining taxes or royalties is redistributed to the local Indigenous communities. This ensures a direct benefit for the First Nations concerned when mines are developed. Furthermore, Ontario’s Ministry of Mines funds capacity-building programs for Indigenous communities (workshops on exploration, support for consultation and community planning around mining projects). While not a grant to a company, this facilitates a more secure and collaborative investment climate, ultimately favoring the realization of mining projects.

In summary, Ontario relies on exploration grants (OJEP) and innovation funds (critical minerals) to stimulate discovery and project development, in addition to federal tax credits. Its provincial support, slightly less generous than Quebec’s in fiscal terms, is increasingly geared toward strategic minerals and Indigenous participation, reflecting the province’s evolving economic and social priorities.

British Columbia: Encouraging Exploration and Sustainable Innovation

British Columbia (B.C.), rich in gold, copper, and industrial metal mines, primarily offers tax incentives and a few targeted programs to support its mining sector:

• British Columbia Mining Exploration Tax Credit: B.C. provides a refundable tax credit of 20% on mineral exploration expenditures incurred in the province by eligible companies. This credit, similar in mechanism to that of Quebec but at a lower rate, allows juniors exploring in B.C. to receive a refund equivalent to one-fifth of their expenses (after deducting other assistance received). To encourage exploration in certain areas particularly affected by the mountain pine beetle crisis, the province offers a bonus rate of 30% if the work is carried out in these specific regions. This program has the advantage of being fully refundable: even a company in the pure drilling phase with no revenue can receive the credit in the form of a provincial treasury refund. In addition, there is also a complementary tax credit for individual investors (through flow-through shares) of about 20% of transferred exploration expenses. Thus, British Columbia mainly relies on fiscal incentives to attract exploration investment.

• Innovation and Training Initiatives: The province also supports mining innovation through various partnerships. For example, British Columbia collaborates with the federal government and the industry through the Canada Mining Innovation Council and other consortia to fund applied research projects (smart mining, waste reduction, etc.). It has developed the B.C. Mining Innovation Roadmap, a roadmap identifying priority areas for innovation and how to support them. In practice, the B.C. government supported the creation of centers such as the Britannia Mine Research Center and programs like Mines Digital Trust to test new digital technologies in real mining environments. Moreover, through funds like Innovate BC or CleanBC, a mining company in B.C. can access grants for pilot projects aimed at reducing greenhouse gas emissions or environmental footprints (for example, installing electric mining vehicles in a copper mine received financial support under the CleanBC Industry Fund, which reinvests part of the carbon tax revenues into grants for companies reducing their emissions).

• Support for Communities and Mining Regions: British Columbia has a mining revenue-sharing program with Indigenous communities. Agreements have been signed so that when a new mine opens, a portion of the provincial revenues generated by that mine (royalties, mining taxes) is paid to the affected First Nations, often in the form of a trust fund for community development. In addition, the province manages the Rural Economic Development Fund, which can provide grants to small mining towns to diversify their economy or improve their infrastructure (roads, local airports) in view of a mining project. While these initiatives are not directly grants to companies, they create a favorable environment for mining companies operating in B.C. by fostering social acceptance and improving shared infrastructure.

In summary, British Columbia relies heavily on exploration tax credits to maintain a high level of prospecting activity. At the same time, it invests in innovation and improved practices (notably through the climate lens with CleanBC) and in collaboration with local communities. Provincial financial support for mining projects may be less visible here than in other provinces, but the overall ecosystem (geoscientific data, tax incentives, benefit-sharing mechanisms) remains highly welcoming for the industry.

Other Provinces and Territories: Overview of Available Support

• Saskatchewan: Known for its uranium and potash mines, Saskatchewan also encourages the exploration of diversified minerals (gold, base metals, rare earths). The province offers a 10% mineral exploration tax credit to investors subscribing to flow-through shares of a company active in Saskatchewan. This provincial credit adds to the federal credit, enhancing the appeal of exploration projects in the province. In the past, Saskatchewan implemented targeted programs such as the Targeted Mineral Exploration Incentive, which reimbursed part of the drilling costs for projects exploring strategic substances or underexplored areas. Moreover, through Innovation Saskatchewan, funds are available for technological research in the mining sector (e.g., more efficient lithium extraction from brines). Saskatchewan also has a development corporation, the Saskatchewan Research Council (SRC), which supports the industry with pilot facilities (notably a rare earth element processing center under construction with government support to develop this new sector).

• Manitoba: Manitoba manages the Manitoba Mineral Development Fund (MMDF), a grant fund aimed at stimulating mineral development and the economy in northern Manitoba. This fund, administered through the Manitoba Chamber of Commerce, can grant up to $300,000 per project (often in co-financing) for initiatives related to the mining industry. Eligible projects may include geoscientific studies, community participation (consultation, Indigenous engagement), improvement of local infrastructure, workforce training, or even some advanced exploration work. The originality of the MMDF is that it is open not only to private companies but also to local communities and nonprofit organizations that play a role in mining economic development. For example, a northern Manitoba municipality received a grant to improve a road leading to a potential mining zone, while a junior company obtained funding to conduct an economic study on reopening a mine, thereby creating jobs. Manitoba, through this fund, aims to maximize local economic benefits and overcome development obstacles (remoteness, lack of data, etc.). Moreover, Manitoba offers individuals a flow-through share tax credit (similar to B.C. or Sask.), and has funded targeted geological surveys to attract exploration (e.g., a modern mapping program for rare earths in promising areas).

• Atlantic Canada (Nova Scotia, New Brunswick, Newfoundland and Labrador): The Atlantic provinces, while less active than Ontario or Quebec, also offer mining grants, especially focused on exploration:

  • Newfoundland and Labrador has a Junior Exploration Assistance Program (JEA) that grants small exploration companies reimbursements of 40 to 75% of approved exploration expenses, up to a cap (often around $150,000 to $250,000 depending on the project). This program encourages the discovery of new deposits in Newfoundland and Labrador, particularly for minerals such as gold, iron, copper, and recently identified critical minerals.

  • Nova Scotia has the Mineral Resources Development Fund (MRDF), which includes various components: grants for individual prospectors (to cover their basic prospecting expenses), grants for exploration companies (for specific projects, often co-funded up to ~$50,000 or more), and funding for applied research (via local universities) on mining-related topics. The emphasis is on revitalizing exploration in Nova Scotia (gold, zinc, rare earths) and promoting innovation (e.g., mine site rehabilitation projects).

  • New Brunswick has periodically offered exploration mining incentives, such as grants for exploration work (a program existed to reimburse part of drilling costs incurred by juniors in New Brunswick) and a flow-through share tax credit for investors in NB (equivalent to 15% of provincial exploration expenses transferred, in certain budget years). These measures aim to promote the province’s potential in base and strategic metals.

• Northern Canada (Yukon, Northwest Territories, Nunavut): In the territories, mining activity is vital for the economy, and specific programs exist:

  • The Yukon Mineral Exploration Program (YMEP) is a territorial program that provides direct funding to prospectors and small businesses for exploration projects in Yukon. For example, an individual prospector may receive up to $25,000 to conduct trenching, sampling, or surveys on their target, while a company may receive a larger amount (over $100,000) for drilling or other advanced activities. The YMEP is a competitive program (projects are evaluated and ranked) and has significantly contributed to generating new exploration targets in the territory.

  • The Northwest Territories have a Mining Incentive Program (MIP) that works similarly, offering funding to prospectors (up to ~$25,000) and companies (up to ~$240,000) to explore the Territories. The goal is to attract more explorers to this vast region with strong potential (diamonds, gold, rare earths) but facing high costs. The MIP typically covers 60 to 70% of the approved project’s expenses.

  • In Nunavut, the territorial administration often collaborates with the federal government to support exploration and research initiatives (geological surveys via the Geological Survey of Canada, training of residents for mining jobs). Nunavut does not have a direct grant program equivalent to YMEP, but CanNor (the federal northern agency) is very active in contributing to community infrastructure projects linked to mines and feasibility studies for future projects (e.g., evaluating a port to serve an iron mine, with federal co-financing).

As we can see, each province and territory has developed mining development funds tailored to its needs. Whether through tax credits, exploration grants, or economic development funding, all these measures converge toward a common goal: stimulating mining investment and maximizing positive economic and social impacts for the region.