Proposed law aims to limit foreign participation in Ontario mining and energy sectors

New measures seek to enable province to deny transfer or lease of mining claims

Proposed law aims to limit foreign participation in Ontario mining and energy sectors

Ontario said the newly introduced Protect Ontario by Unleashing Our Economy Act, 2025, seeks to preserve and prioritize access to the province’s critical minerals and energy sectors and help Ontario’s and Canada’s economy be more resilient and self-reliant.

The proposed legislation offers new measures enabling the provincial government to:

  • suspend or remove a registrant from the Mining Lands Administration System (MLAS)
  • suspend the MLAS system itself
  • deny a mining claim’s transfer or lease
  • revoke a mining claim registration or terminate a lease if necessary
  • limit the participation of specific foreign jurisdictions or entities in Ontario’s energy sector

The provincial government noted in a news release that the current scheme provides no safeguards to prevent adversarial foreign governments and corporations from staking a claim to the province’s critical mining resources without any intention of benefiting Ontarians and Canadians.

Currently, there are also no protections to stop hostile foreign regimes and bad actors from participating in the province’s energy sector, according to the announcement by MPP Kevin Holland and Stephen Lecce, Ontario’s energy and mines minister.

“In today’s changing world, we need to be clear-eyed about the risks from those who want to exploit our resource bounty,” Lecce said in Ontario’s news release. “That is why it is essential that Ontario is protecting our critical minerals and energy sector from getting into the wrong hands.”

“Ontario is taking important actions to protect our mining and energy assets during this volatile time,” Holland added in the news release. “This is especially important for Northern Ontario, as critical mineral and mining resources are an integral part of our economy.”

"The Government of Ontario’s work in protecting our critical minerals and mining resources will help maintain and create high-quality jobs in Thunder Bay and Northwestern Ontario,” said Ken Boshcoff, Thunder Bay mayor, in the news release.

Aims of measures

Ontario said the measures introduced in the proposed legislation aim to:

  • safeguard the province’s critical mining resources and energy infrastructure
  • protect Ontario’s essential energy usage from foreign entities
  • keep the province’s energy systems safe from risks and threats such as malware, manipulation, tampering, surveillance, and ratepayer harm due to the involvement of foreign companies

“Our government is taking action to secure our supply chains, from exploration to extraction, to ensure Canadian interests, jobs, and sovereignty always prevail,” Lecce said in Ontario’s news release.

Ontario added in the news release that the proposed legislation aims more broadly to cut red tape and streamline approvals to hasten critical mineral and resource development projects, including in the Ring of Fire.

The provincial government’s news release noted that a 2021 report titled “Foreign Interference Threats to Canada’s Democratic Process” revealed that the country has been a target for foreign interference due to its wealth of natural resources.

“Canadian resources ought to benefit Canadians, not hostile, foreign regimes,” Lecce said in the news release.