2024 Reports 6 to 10 of the Commissioner of the Environment and Sustainable Development to the Parliament of CanadaNatural Resources Canada’s critical minerals strategy does not show overall benefits and impacts

Ottawa, 7 November 2024—A report released today by Commissioner of the Environment and Sustainable Development Jerry V. DeMarco found that Natural Resources Canada did not do enough analysis to weigh the benefits of increasing Canada’s supply of critical minerals against impacts on the environment and Indigenous communities, which have been and continue to be affected by mining activities.

In 2022, the federal budget allocated Natural Resources Canada up to $3.8 billion over 8 years to support the implementation of the Canadian Critical Minerals Strategy, which aims to increase the supply of critical minerals in a responsible and sustainable way. These resources are critical for supporting the transition to a net‑zero economy. However, increased mining activities to secure critical minerals could result in adverse impacts on climate, biodiversity, and Indigenous communities.

The audit found that Natural Resources Canada’s indicators for measuring results and progress were incomplete. For example, under the strategy’s objective of advancing reconciliation with Indigenous peoples, there were indicators and targets for economic reconciliation such as revenue sharing and job opportunities, but few indicators for social aspects, such as to measure the protection of culturally significant sites or improvements to local living conditions.

“Moving forward, Natural Resources Canada will have to fully assess risks and impacts of the Canadian Critical Minerals Strategy to help maximize the strategy’s benefits while minimizing adverse effects from increased mining activities,” said Mr. DeMarco. “Otherwise, the benefits of advancing technology in support of the transition to net-zero emissions could be offset by adverse effects on climate, biodiversity, Indigenous communities, and future generations.”

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The 2024 Reports of the Commissioner of the Environment and Sustainable Development, Report 6—The Canadian Critical Minerals Strategy is available on the Office of the Auditor General of Canada website.

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