Auditor finds federal critical minerals strategy lacking analysis of impact on climate, Indigenous people

A federal audit of Canada's strategy to promote the extraction of critical minerals says the government isn't giving due consideration to the potential impact of mining on the environment, biodiversity and Indigenous people.

The report on the federal critical minerals strategy was tabled in Parliament November 7 by the commissioner of the environment and sustainable development, Jerry DeMarco.

The critical minerals strategy was announced in the 2022 budget, and allocated $3.8 billion over eight years to focus on increasing the supply of critical minerals to be used in the supply chain toward a net-zero economy. 

The government says increasing the supply of critical minerals is essential in making the switch to a green economy that relies on technology such as EV batteries, digital devices and solar panels.

Ontario has its own critical minerals strategy to promote and speed up mineral extraction, mainly in the north, to feed the supply chain established in the south.

DeMarco says Natural Resources Canada hasn't done a good job of gathering information and analyzing the adverse effects of mining on the environment, including the building of roads and transmission lines, and the fact that increased mining could lead to producing greenhouse gas emissions and affect biodiversity..

He added that the goal of advancing reconciliation with Indigenous nations has also fallen short, and that ongoing engagement is needed.

While targets for economic reconciliation such as revenue-sharing and job opportunities have been set in consultation with Indigenous communities, DeMarco said there are few measures to make sure culturally significant sites are protected and living conditions in First Nations improve.

"In practical terms, essentially what the theme of our recommendations is in the Canadian critical mineral strategy audit is: look before you leap, don't solve one problem and simply create another," said Demarco during questions following his presentation. "And also, learn from the history of contamination from previous mines in Canada, which we reported on to Parliament in the spring."

Natural Resources Canada provided a statement in response to the report 

"We have accepted the commissioner's recommendations where they align with the scope of the strategy, respect jurisdiction, and do not harm Canada's ability to fight climate change. In fact, much of the work recommended is well underway within Natural Resources Canada," it said.

The government says it is seizing opportunities to make mining part of the green economy.

"For example, just last month we announced $4.4 million towards connecting Timmins' Crawford Nickel Sulphide Project with Ontario's clean electricity grid," said the statement.

It also said the government is committed to Indigenous partnerships and recently announced $2.7 million in funding through the Indigenous Natural Resource Partnerships Program (INRP) to support the purchase of two production mining drills.