Bill C-39: A New Era For Canadian Mining Project Approvals?

Federal Government Proposes Significant Changes to Project Permitting, Indigenous Consultation and Major Project Delivery

The Government of Canada has introduced Bill C-39, the Building Canada Strong Act, proposing what may be the most significant reform of the federal project approval framework in a generation. The legislation is intended to accelerate the development of major projects across Canada by creating a coordinated federal review process, centralizing Indigenous consultation and establishing a one-year timeline for federal decisions once project applications are complete. More details can be found in the recent Cassels insight, Bill C-39: Building Canada Strong Act Proposes Major Changes to Project Approvals, Trade Infrastructure, and Federal Labour Relations.

For mining companies, project sponsors, infrastructure developers and their lenders, these changes have the potential to materially influence mining project development schedules, regulatory risk allocation, financing strategy and overall project bankability.

Key Takeaway: The Focus Is on Certainty, Not Deregulation

While the proposed legislation focuses on project acceleration, Bill C-39 does not eliminate environmental assessment requirements, federal permitting requirements, or the Crown’s duty to consult Indigenous Peoples.

Instead, the proposed reforms are designed to consolidate federal decision-making, reduce duplication among federal regulators, coordinate Indigenous consultation processes, provide greater certainty regarding timing of federal approvals, and support investment decisions through a more predictable approval framework.

From a mining and project finance perspective, the most important change may be that federal approvals become more predictable rather than materially easier to obtain.

One Project, One Federal Decision

One of the centrepieces of the proposed legislation is a “one project, one decision” model.

Today, a major mining project may require separate federal approvals under a range of statutes, including under the Impact Assessment Act, the Fisheries Act, the Species at Risk Act, and the Canadian Navigable Waters Act, among other federal permitting regimes.

Under the proposed framework, federal reviews would be coordinated into a single process culminating in one single federal decision document containing all required federal authorizations, conditions and mitigation measures.

For project proponents and their financiers, this could significantly reduce the risk associated with sequential or overlapping approval processes and eliminate much of the uncertainty created by multiple federal decision-makers.

The One-Year Federal Review Timeline

Bill C-39 proposes a maximum one-year federal review and decision timeline once a proponent has submitted its completed application package and all supporting studies and information.

Importantly, this is not a one-year period from project conception. Mining companies will still require substantial time to complete environmental baseline work, conduct engineering studies, engage with Indigenous communities, prepare permitting applications and advance feasibility work, in order to prepare the requisite applications.

However, once applications are complete, proponents may have significantly greater confidence regarding federal decision timing.

For projects seeking financing, this increased predictability could become one of the most consequential elements of the proposed legislation.

Indigenous Consultation Remains Critical

Mining companies should not interpret Bill C-39 as reducing consultation obligations.

The Government has expressly stated that:

• the duty to consult remains unchanged;
• treaty obligations remain unchanged; and
• Indigenous rights protections remain unchanged.

The reforms instead seek to streamline the process through a proposed Crown Consultation Hub and a coordinated approach designed to create a single federal consultation process for each Indigenous community affected by a project.

As a result, successful projects will continue to be those that engage Indigenous communities early, build long-term relationships address concerns proactively and pursue meaningful partnership opportunities.

Indigenous support and participation will remain one of the most important drivers of successful mining project development and financing.

Potential Benefits for Critical Minerals Projects

The proposed introduction of “Regions of National Interest” may be particularly significant for Canada’s critical minerals sector.

The framework contemplates regional assessments that could identify strategic development areas such as critical minerals districts, infrastructure corridors, energy transmission corridors, and industrial development regions.

Where regional assessments have already been completed, future projects may benefit from streamlined permitting processes and increased regulatory certainty.

This concept could prove particularly attractive for investors evaluating development opportunities in regions such as Northern Ontario, Northern Quebec, Saskatchewan, and the Canadian North.

Why Project Financiers Should Be Paying Attention

For lenders and project finance participants, regulatory timing and permitting certainty are often among the most critical factors affecting investment decisions.

Historically, many Canadian mining projects have faced lengthy federal review periods, uncertain permitting schedules, multiple federal decisions, evolving consultation requirements, and increased development costs associated with approval delays.

If implemented successfully, Bill C-39 could materially improve the financing environment by:

• providing clearer permitting milestones;
• reducing development schedule uncertainty;
• improving underwriting certainty;
• supporting earlier financing commitments; and
• potentially lowering regulatory risk premiums applied by lenders and investors.

As a result, projects that previously struggled to achieve financing due to timing uncertainty may become more attractive to banks, export credit agencies, royalty and streaming companies, private credit funds, and institutional investors.

What Mining Companies Should Do Now

Mining companies advancing Canadian development projects should begin evaluating how the proposed framework may affect project planning and execution.

Particular attention should be given to:

• permitting strategies;
• application readiness;
• Indigenous engagement programs;
• financing timelines;
• construction schedules; and
• interactions between federal and provincial approval requirements.

While Bill C-39 addresses federal approvals, provincial permitting regimes will continue to play a critical role and may remain the key determinant of overall project development schedules in many jurisdictions.

Looking Ahead

If enacted, Bill C-39 has the potential to reshape how major mining projects are approved and financed in Canada. Although the legislation does not reduce environmental or consultation obligations, it represents a significant effort to improve efficiency, coordination and predictability within the federal system.

For mining companies and their financiers, the principal opportunity may not be faster approvals alone, but rather improved certainty around when those approvals can be expected, enabling more efficient deployment of capital, and reducing one of the most significant risks facing resource development projects in Canada.