The mining industry is on the cusp of its largest investment supercycle in history, according to Canada’s Energy and Natural Resources Minister Tim Hodgson.
Speaking at an event this week hosted by Canada House in London, UK, Hodgson said critical minerals are no longer simply industrial commodities but strategic materials that will shape the future of global economies.
“They are the inputs that will decide which economies can grow, which can compete and which countries will secure their economic futures,” he said.
The growing importance of critical minerals has prompted governments to rethink their industrial policies, with Canada seeking to position itself as a reliable supplier.
Hodgson warned that the mining industry is currently unprepared to meet growing demand for critical minerals, raising the prospect of significant supply shortages in the coming years.
An investment supercycle refers to a prolonged period of capital spending on new mining projects, typically driven by major structural changes in the global economy.
The last major mining supercycle began around 2001, when China’s rapid industrialisation drove demand for metals used in buildings, railways, and power infrastructure. It lasted roughly a decade.
According to Hodgson, the next wave of mining investment will be driven by growing demand and concerns over the security and reliability of mineral supply chains.
Streamlining mining projects
To capitalise on the expected investment boom, Canada has been seeking to streamline regulatory approvals for major resource projects.
Hodgson pointed to the Building Canada Act, which was introduced as one of the federal government’s signature legislative initiatives to accelerate major project development.
Ottawa is also seeking to pass the Building Canada Strong Act, a 240-page bill tabled in September that would further simplify the approval process.
If passed, the proposed legislation would establish a process for major projects, including mines, to undergo a coordinated federal review, with decisions targeted within one year after proponents submit the required information.
Hodgson said faster approvals are necessary if Canada is to compete for the investment needed to address future mineral supply shortages.
“Canada has extraordinary resources, but, historically, we may not always have been sufficiently competitive on the execution front,” he said.
The minister was referring to the lengthy regulatory processes that have delayed some Canadian mining projects, limiting the country’s ability to bring new supply to market.
Critical minerals reshape global trade
Beyond rising demand, Hodgson said critical minerals have moved from the margins to the centre of industrial strategies and economic policies worldwide.
Historically, companies sourced metals and minerals primarily based on cost and efficiency. Today, supply chain security, export restrictions, and geopolitical risks are becoming increasingly important considerations.
Hodgson pointed to conflicts in the Middle East and Africa as examples of growing supply chain vulnerabilities.
China has also imposed export restrictions on rare earths and other critical minerals in recent years, adding to concerns over the concentration of global supply.
Canada’s opportunity
The minister’s comments echoed those made by Prime Minister Mark Carney at the World Economic Forum in Davos, Switzerland, in January.
At the event, Carney questioned the future of the established global trading system, warning that major economies were increasingly using trade dependencies and supply chains as tools of economic and political pressure.
He also highlighted Canada’s plans to accelerate investment in strategic industries, including energy, AI, critical minerals, and new trade corridors.
Both leaders have emphasised the need for Canada to strengthen its economic position by developing domestic resources and reducing dependence on vulnerable supply chains.
At the London event, Hodgson said the world was not facing a shortage of demand for metals and minerals, but rather a shortage of dependable supply.
That is the gap Canada hopes to fill as countries seek new sources of critical minerals and mining investment accelerates.
Write to Jackson Chen at Mining.com.au
Main image: Tim Hodgson | X
