The Mining Association of Canada (MAC) has expressed its expectation that the Canadian government’s 2025 budget, which reflected its recommendations and commitments included in the Liberals’ 2025 election platform, would help boost the mining industry and drive critical mineral investments.
A $2 billion investment, allocated to Natural Resources Canada over five years commencing in 2026–27, has established the critical minerals sovereign fund, which seeks to provide strategic support to critical minerals projects and companies.
Dr. Tamer Elbokl, editor-in-chief of the Canadian Mining Journal, described 2025 as a year marked by strategic realignments, rather than a year of megadeals. In an article, Elbokl highlighted:
- shifting company portfolios in response to evolving regulatory expectations, geopolitical tensions, and volatile commodity markets
- the mining sector’s significant consolidation, which was altering North America’s precious metals landscape
- small, strategic deals, which were likewise influencing the sector
- Canadian miners’ pursuit of joint ventures, partnerships, and targeted acquisitions offering scale without too much leverage, considering the uncertain permitting timelines and global trade disruptions
- companies’ tendency to prioritize high-quality assets, firm regulatory footing, and exposure to multiple metals
Elbokl called attention to some recent notable deals in the mining sector.
First, Elbokl noted that a proposed US$50 billion merger between Anglo American and Teck Resources would have significant implications for Canada. Given the increased focus on critical minerals ownership, federal authorities have initiated a national security review under the Investment Canada Act, 1985.
Second, Elbokl discussed Coeur Mining’s proposed acquisition of New Gold Inc., which would shift New Gold’s Canadian operations toward a broad, multi-jurisdictional platform and which showed a trend toward cross-border combinations prioritizing cash flow stability.
2026 outlook
In the article, Elbokl described 2026 as possibly ‘a defining year for M&A deals,’ with evolving policy frameworks and more competition for critical minerals. Elbokl added that the international M&A pipeline going into 2026 was one of the strongest in years.
Elbokl highlighted a round of potential consolidation across copper, gold, lithium, and other critical minerals in 2026, following active dealmaking cycles in the two preceding years. According to Elbokl, numerous significant deals will potentially conclude soon, including:
- Dundee Precious Metals’ (DPM) planned US$1.25-billion acquisition of Adriatic Metals
- Perseus Mining’s proposal for Predictive Discovery in West Africa
Elbokl expected BHP and Rio Tinto to seek multi-billion-dollar deals focusing on copper, lithium, and other metals for the energy transition.