Ontario Responds to Tariffs with Focus on Resource Development

Posted by on May 7, 2025 in Blog | 0 comments

 

As global demand for natural resources continues to grow, countries rich in those deposits are looking for ways to responsibly develop these resources.  This demand and the increased trade pressures appear to be the impetus for recent proposed Ontario legislation.

On April 17, 2025, the Ontario Government announced Bill 5, “The Protect Ontario by Unleashing Our Economy Act 2025.”  In a Technical Briefing by the Ministry of Mines and Energy, they state that the action is, “in response to President Donald Trump’s tariffs and threats of economic force against Canada, the government has a plan to protect Ontario, its workers, businesses, and communities, including through new pieces of legislation to make the province’s economy the most competitive in the G7.”

If the legislation is passed, it would “cut red tape and duplicative processes that have held back” infrastructure and mining and resource development projects, including the Ring of Fire.

According to the announcement, a mining project can take 15 years to be approved. Ontario Premier Doug Ford said, “In the face of current Ontario-U.S. trade tensions, it can no longer be business as usual.  We are cutting red tape to unlock our critical minerals and unleash our economy to create new jobs and opportunities in the north and across the province.”

Bill 5 Key Measures

The key measures in the proposed legislation include the following categories:

  • Create an authority to designate special economic zones.
  • Accelerate mining development in every part of the province.
  • Speed up housing, transit, infrastructure, and other projects impacting certain species.
  • Establish a new Species Conservation Program.
  • Save businesses money by eliminating registration fees for the Environmental Activity and Sector Registry.
  • Protect critical mineral resources from bad actors.
  • Build a secure energy grid.

Bill 5 will encourage resource development in Ontario and “cut red tape” to encourage resource development in the province (Photo by Jonny Rothwell on Unsplash).

The goal is to create the first economic zone by September 2025.  Priority will be given to critical mineral development opportunities.  The announcement specifically mentions nickel, copper, and chromate.

In a blog by Bennett Jones, they state, “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.”

Opposition to Bill 5

As reported by the CBC, “Ecojustice Canada, Environmental Defence and the Wildlife Conservation Society Canada say Bill 5, also known as the Protect Ontario by Unleashing Our Economy Act, would repeal Ontario’s existing Endangered Species Act passed in 2007, and replace it with a significantly watered down version of the original act called the Species Conservation Act.”

Ecojustice lawyer, Laura Bowman, said, “This (Bill 5) won’t speed up projects. It will be catastrophic for wildlife.  What we’re headed toward, if this bill goes ahead, is really just abandoning species protection.”

In the publication “The Pointer,” they refer to Bill 5 as an “unprecedented assault on environmental protection” in Ontario.  Much of the 12-page article is focused on their concerns over the impacts of the mining on various species and ecosystems.

Energy Demands

Globally, energy demand continues to increase.  As underdeveloped nations and populations get richer, so do their energy demands.  Cryptocurrencies are increasingly demanding more energy.  From the US Energy Information System, “Our preliminary estimates suggest that annual electricity use from cryptocurrency mining probably represents from 0.6% to 2.3% of U.S. electricity consumption.”

Rapidly developing Artificial Intelligence is also a huge energy draw. “Goldman Sachs Research forecasts global power demand from data centers will increase 50% by 2027 and by as much as 165% by the end of the decade as compared with 2023” (Goldman Sachs).

Energy is critical for maintaining our lifestyle.  Canada can and must continue to responsibly develop our natural resources to help meet these demands.  Further, as trade tensions between the US and Canada grow, a responsible plan to further develop our natural resources and put more Canadians to work makes sense.

Environmental Assistance

Dragun’s Senior Consulting Partner, Dr. Joel Gagnon, has experience in the mining and resource sectors.  Further, Dr. Gagnon has a specialization in analytical and applied aqueous geochemistry.  If you have questions or need additional information, you can contact us at 519-948-7300.

Alan Hahn drafted this blog.  Alan has an undergraduate degree in Environmental Studies and completed a graduate program in Environmental Management.  He has worked in environmental management for more than 45 years.  He has written hundreds of blogs and articles.  His published work includes HazMat Magazine, BizX Magazine, Michigan Lawyers Weekly, GreenStone Partners, Manure Manager Magazine, and Progressive Dairy.

Christopher Paré, P.Geo, reviewed this blog.  Chris is a senior geoscientist and manager of Dragun’s Windsor, Ontario, office.  Chris has more than 30 years of experience on projects ranging from environmental site assessments (Phase One/Two ESA), excess soils, remedial investigations, soil and groundwater remediation, Permits to Take Water, Records of Site Conditions, vapour intrusion, and site decommissioning.  Chris is a frequent speaker, author, and expert witness.  See Chris’ bio. Follow Dragun Corporation on LinkedInX, or Facebook.

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