Ontario’s Bill 5 is now law: What foreign mining investors should know

On June 5, 2025, Ontario enacted the Protect Ontario by Unleashing our Economy Act, 2025 (Bill 5), introducing a suite of legislative changes intended to accelerate resource development in Ontario, especially in relation to critical minerals, while granting new powers to protect the province’s strategic supply chain. Key amendments to the Mining Act, the Environmental Assessment Act, and the creation of a new Special Economic Zones Act will have important implications for foreign investors, particularly those active in strategic mineral development. Significant changes resulting from Bill 5 and critical considerations for mining sector investors are highlighted below.

Minister gains broad powers over mining rights

Amendments to the Mining Act prioritize prospecting and exploration in support of Ontario’s economy, but only insofar as they don’t harm the province’s strategic supply chain objectives. The Minister of Energy, Northern Development and Mines may expedite the approval process for a project by establishing a Mine Authorization and Permitting Delivery Team (MAPD Team) to create integrated permitting plans and coordinate approvals among ministries, which is designed to cut down review times. However, the Minister also has the power now to suspend or bar new claim registration, revoke existing claims, cancel prospector licences and deny lease issuance.

Faster and more coordinated permitting will assist well-prepared proponents—but only for minister-designated projects. Proposals not deemed “strategic” may receive no benefit. Further, traditional legal protections like notice, a hearing, or compensation are specifically excluded, which can heighten the risk for mining investors, particularly in critical mineral projects. The risk of discretionary cancellation of mining rights should be accounted for in project documents.

Special Economic Zones (SEZs) introduced

The creation of the Special Economic Zones Act, 2025 allows the Minister of Economic Development, Job Create and Trade to designate “Special Economic Zones” (SEZs) for strategic projects – including mining projects, which can override existing municipal planning and local regulations in the same geographic area. Benefits of the SEZ, including a fast-tracked permitting and approval process as well as simplified requirements, are only available to “Designated Projects” and “Trusted Proponents, the terms of which are yet to be clarified by regulation.

Projects inside SEZs could enjoy significantly streamlined approval—but foreign investors must ensure alignment with provincial priorities and approval as “Trusted Proponents.” Early engagement with policymakers to understand eligibility for SEZ benefits is recommended.

New opportunities in Ontario’s “Ring of Fire”

The Environmental Assessment Act has been amended to formally terminate the comprehensive environmental assessment process for the proposed Eagle’s Nest Mine project, located in Ontario’s Ring of Fire, a mineral resource-rich region in Northern Ontario. The Ontario Government has subsequently expressed that it intends to designate the Ring of Fire as a Special Economic Zone as soon as possible, though only after consultation with Indigenous groups.

While the Ring of Fire region holds valuable mineral resources, the lack of key infrastructure and possible disturbance to the ecosystem and wildlife in the area have made it extremely difficult to commence any major exploration projects. The potential designation of the Ring of Fire region as a SEZ could spark renewed interest for mining investors, particularly in light of the removal of environmental regulatory hurdles. Ontario’s new Integrated Energy Plan, Energy for Generations, also hinted that the Greenstone Transmission Line could have the potential of establishing broader grid connection to the Ring of Fire region. However, it remains to be seen whether the region’s ecological sensitivity and Indigenous governance structure could provoke legal or political challenges, which in turn, could increase the risk of regulatory uncertainty.

Potential overlap with the federal Investment Canada Act

Although Bill 5 is a provincial law, its overlap with federal priorities—especially Canada’s Critical Minerals Strategy—means that foreign investments in Ontario’s mining sector may be subject to enhanced scrutiny under the federal Investment Canada Act (ICA). The Policy Regarding Foreign Investments from State-Owned Enterprises in Critical Minerals under the Investment Canada Act (Critical Minerals Policy) affects investments in critical minerals sectors by foreign state-owned enterprises (SOE) (including private investors assessed as being closely tied to, subject to influence from, or who could be compelled to comply with extrajudicial direction from foreign governments).  Projects involving foreign SOEs may be subject tonational security reviews or conditioned approvals. With respect to the notification requirements for the establishment of a new Canadian business or acquisition of control of an existing Canadian business by a foreign investor under the ICA, the Canadian government has stated that mineral properties which are only at the exploration stage are not considered to be businesses and therefore, a notification is not required. However, a producing mine, or a mine which has been temporarily closed due to prevailing economic conditions and not due to depletion of ore reserves, constitutes a business (and therefore may be subject to a notification requirement under the ICA).

Foreign investors, especially state-backed entities, should expect dual scrutiny under provincial and federal regimes, particularly a potential national security review under the Investment Canada Act. Strategic mine development may invite enhanced due diligence, reporting requirements, and consultation.

While Bill received Royal Assent, not all of the amendments are in force. Amendments to the Mining Act and provisions related to the termination of the environmental assessment for the Eagle’s Nest project under the Environmental Assessment Act will come into force on a day to be named by order of the Lieutenant Governor in Council. The Special Economic Zones Act, 2025 is now in force.

For further insight into Bill 5, or to assess implications under the Investment Canada Act, please contact a member of ourForeign Investment, Regulatory & Government Affairs Group.