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."

Federal government moving ahead on recommendations

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.

"These drills, funded by Natural Resources Canada, Giyak Mishkawzid Shkagmikwe Inc. (GMS), and Taighwenini Technical Services Corporation (TTS)—the economic development corporations of Atikameksheng Anishnawbek and Wahnapitae First Nation—will help create training opportunities, wealth generation, and clean economy participation for First Nations. This investment supports Indigenous involvement in the revitalization of Vale's Stobie mine."

An environmental group is welcoming the auditor's recommendations to weight impacts as well as benefits.

The conservation director of the Wildlands League says the report is important, especially coming from within the government itself.

Anna Baggio says a more balanced approach is needed as pressure within the mining industry builds to speed ahead with projects.

"I think Canadians do expect their governments to not just be cheerleaders of mining," she said.

"Let's do this thoughtfully and make sure we are avoiding these adverse impacts and the only way you can avoid them is if you actually acknowledge them and unearth them to begin with."

She says the federal audit should send a message to Ontario to similarly include possible risks of mining in its approach to extracting critical minerals.

The federal audit was one of five reports by the federal environment commissioner looking at Canada's progress toward reducing greenhouse gas emissions.

DeMarco said Canada is still not on track to meet its commitment to reduce emissions by 40 to 45 per cent below 2005 levels by 2030.

He said, so far, Canada has only fallen seven per cent below 2005 levels.