On April 17, 2025, the Ontario government introduced Bill 5, called the Protect Ontario by Unleashing Our Economy Act, 2025 (Bill 5), an extensive legislative proposal aimed at accelerating resource development and reducing regulatory burdens across Ontario's key industries, including mining. Notably, Bill 5 also proposes a new discretionary authority to deny the issuance of mining leases and cancel existing claims and tenures for the purpose of protecting the "strategic national mineral supply chain".
This legislation marks another significant step in Ontario's broader economic strategy to position the province as a global leader in critical minerals and infrastructure development and aligns with earlier reform efforts, including the Building More Mines Act, 2023. These initiatives reflect a broader policy shift toward removing regulatory barriers and promoting Ontario's position as a leading jurisdiction for mineral development, energy infrastructure and industrial investment. While Bill 5 aims to remove certain regulatory barriers to mining investment and development, it should be noted that Bill 5 also includes a number of provisions targeting critical minerals supply chain security, which will be of concern to foreign investors in Ontario mining projects and that are reminiscent of recent changes in the federal government's approach to foreign investment reviews in the mining sector under the Investment Canada Act.
If passed, Bill 5 would enact the following notable changes:
Bill 5, if passed, will mark another step in Ontario's evolving strategy to strengthen its economic self-sufficiency and resilience. The proposed reforms come at a time of heightened geopolitical uncertainty, marked by growing trade tensions and competition for critical mineral access, underscoring the urgency of securing domestic supply chains and reducing reliance on foreign-controlled resources.
Ontario holds some of the world's richest deposits of critical minerals essential to clean energy and advanced manufacturing. However, lengthy and complex permitting processes have historically delayed development and discouraged investment. By streamlining approvals and reducing government review times, the proposed changes attempt to address these barriers directly and position Ontario as a more attractive and competitive jurisdiction for mining projects. What is not apparent by the recent legislative announcement, nor in the text of Bill 5, is whether the Ontario government will take further steps to streamline the approvals processes beyond the Mining Act (Ontario), such as those under Ontario's environmental legislation and increase the use of "permit-by-rule" and qualified person-driven approaches to improve efficiency.
Foreign investors will need to take note of the proposed changes to the Mining Act (Ontario) in respect of the new and broadly discretionary authority to deny and revoke mining and mineral tenure. If passed, these changes will create a need for additional consideration and risk assessment when making investment decisions regarding Ontario mining projects. Unlike reviews under the Investment Canada Act, the proposed Mining Act (Ontario) provisions are not subject to any monetary thresholds. We note that the grant of authority to deny or revoke mining tenure is worded in a highly discretionary manner and setting out factors for consideration that may be difficult to challenge in a judicial review context.
Ontario has emphasized in its announcement a commitment to uphold constitutional obligations and environmental standards, ensuring that the path forward balances economic opportunity with social and environmental responsibility. Businesses, investors and Indigenous partners will need to navigate these changes thoughtfully, as Ontario reshapes the regulatory landscape to meet the challenges and opportunities of a rapidly changing global economy.
The Ontario Ministry of Energy and Mines has posted notice of the proposal to the Environmental Registry of Ontario for a 30-day consultation period. Interested stakeholders are encouraged to submit their comments and feedback on the proposed changes prior to May 17, 2025.
Bennett Jones is a premier Canadian business law firm with industry-leading expertise in mining. To discuss how recent developments in the mining industry in Ontario could affect your organization, please contact one of the authors.