Trade War to Mining Boom? Experts Urge Faster Approvals at PDAC
Trade war tensions may accelerate mine approvals as Canadian industry leaders push for regulatory reform.
Editorial Team (ET)May 9, 2025
The escalating trade war between the United States and Canada has sent shockwaves through multiple industries, but for the mining sector, it may be the wake-up call governments need to cut regulatory red tape. At the Prospectors & Developers Association of Canada (PDAC) conference in Toronto, top investment bankers and mining executives voiced a growing sentiment: fast-track mine approvals or risk falling behind in the global race for critical minerals.
On Tuesday, U.S. President Donald Trump imposed a sweeping 25% tariff on most Canadian goods and a 10% duty on energy and minerals, citing national security concerns. Prime Minister Justin Trudeau wasted no time in retaliating, slapping C$30 billion worth of countermeasures on American imports, with another C$125 billion in tariffs looming in the coming weeks. While the trade war is expected to disrupt supply chains, some see an unexpected silver lining—the potential acceleration of long-stalled mining projects.
Breaking the Logjam in Mining Permits
For years, Canadian miners have battled complex permitting regulations that can delay a project for over a decade. The process has become so convoluted that investors are increasingly reluctant to commit capital to new projects. TD Securities’ head of investment banking, Ted McGurk, was blunt in his assessment of the situation, stating that government interference is the biggest roadblock to Canada’s resource development.
“We’re a resource country, and government needs to get out of the miners’ way,” McGurk said. “They are the biggest impediment to the industry, and they need to realize that.”
His frustration is not without merit. An unidentified Canadian mining company reportedly began its permit application process in 2012 and is only now expecting final approval in two years. This timeline reflects a troubling trend: data from S&P Global shows that the time required to build a new mine has ballooned to 17.9 years, up from 12.7 years a decade and a half ago.
The Push for Faster Approvals
BMO Capital Markets’ Josh Goldfarb echoed McGurk’s concerns, arguing that the trade war should serve as a catalyst for Canada to rethink its regulatory framework. If the country wants to meet its ambitious goals in electrification and AI, it must ramp up domestic mining production at an unprecedented pace.
“The impact of everything that’s happening is rethinking the regulatory framework,” Goldfarb said. “Is there a way to move quicker in a responsible way?”
The answer, according to industry leaders, is a resounding yes. Canada’s vast mineral wealth puts it in a prime position to capitalize on growing global demand for lithium, copper, and other critical minerals. But without streamlined permitting, mining companies will continue to face insurmountable delays, leaving the country vulnerable to supply chain disruptions and increased reliance on foreign imports.
Investors See Opportunity in Uncertainty
Despite the volatility, investment bankers at PDAC remain bullish on mining. CIBC Capital Markets’ Steven Reid pointed out that even with geopolitical uncertainty, Canada’s resources will be indispensable in the coming years. Whether tariffs remain in place or not, the long-term trajectory for minerals remains strong.
“We’re in a very volatile time,” Reid said. “In any outcome here we’re going to need more resources. Canada is incredibly rich in mineral resources. All this uncertainty still sets Canada up very well.”
Strong demand dynamics and rising commodity prices further strengthen the case for increased mining investment. With major mining companies generating higher cash flows, the sector remains an attractive destination for capital. According to National Bank Financial’s Elian Tener, the fundamentals remain solid.
“Miners are making money,” Tener said. “The sector is investable.”
The Road Ahead for Canadian Mining
The PDAC conference made one thing clear: if Canada wants to cement its role as a critical minerals powerhouse, it must act swiftly. The trade war may be an economic challenge, but it also presents a rare opportunity to break free from regulatory inertia. If policymakers heed the warnings of industry leaders and fast-track approvals, Canada could emerge stronger than ever.
For now, the mining world waits. But with geopolitical tensions rising and global demand surging, the message from PDAC is loud and clear—time is of the essence.
