Provincial funding targets exploration, job creation and economic growth in northern communities
SUDBURY —
The Ontario government is investing in 68 early-stage mineral exploration projects as part of a broader push to strengthen domestic supply chains, support job creation and position the province as a global leader in critical minerals development.
Announced Thursday, the funding will be delivered through the Ontario Junior Exploration Program (OJEP), supporting junior mining companies and licensed prospectors in identifying new mineral deposits. The province estimates the initiative will support 71 jobs across northern and rural communities while generating approximately $18 million in economic output.
The move comes as Ontario advances efforts to modernize its Critical Mineral Strategy, with a focus on reducing regulatory barriers and increasing investment in early exploration — a phase widely considered high-risk but essential to long-term mining development.
“To boost Canada’s self-reliance, Ontario is investing heavily in early exploration to build a pipeline for new mines and new jobs,” said Stephen Lecce, Minister of Energy and Mines. “We overhauled our permitting system, while investing heavily in early exploration, resulting in Ontario emerging in the top spot for early exploration investment and Canada’s most attractive mining investment jurisdiction. Ontario’s new Critical Minerals Strategy will further double down on early exploration to lay the groundwork for the next generation of mines, good-paying jobs and economic growth across northern Ontario. As we face headwinds of uncertainty, Ontario is accelerating responsible resource development to fortify our supply chains, workforce, and economy at this critical time.”
High-risk exploration seen as key to long-term growth
Early-stage mineral exploration remains one of the most uncertain phases in mining, with industry estimates suggesting only one in 1,000 projects ultimately becomes an operating mine. The high costs, long timelines and logistical challenges — particularly in remote northern regions — often limit private investment at this stage.
Ontario’s funding aims to reduce those barriers. Under the OJEP program, eligible projects can receive up to 50 per cent of exploration and development costs. Prospectors may qualify for up to $65,000 per project, while junior mining companies can receive up to $215,000, including enhanced Indigenous Participation Support.
The province says these measures are designed to de-risk early exploration and encourage further private-sector investment, helping unlock untapped mineral deposits critical to future economic growth.
Building a made-in-Ontario supply chain
The investment aligns with Ontario’s broader ambition to develop fully integrated, domestic supply chains for critical minerals such as lithium, nickel, copper and rare earth elements — materials essential for electric vehicles, clean energy technologies and advanced manufacturing.
Demand for these resources is rising globally, and Ontario is positioning itself as a stable and responsible supplier. The province currently leads Canada in mineral exploration and deposit appraisal spending, with approximately $1.1 billion invested in 2024 alone.
Industry stakeholders say programs like OJEP play a crucial role in maintaining that momentum.
“Ontario’s mineral independence is a cornerstone of our economic sovereignty, and programs like OJEP are essential to maintaining it,” said Steve Virtue, President and CEO of Ontario Prospectors Association. “By supporting the early-stage exploration work that drives discovery, this investment ensures our mining pipeline stays strong and our competitive edge stays sharp.”
Leveraging public funding to attract private capital
Since its inception, OJEP has supported more than 200 mining companies, including 165 projects focused on critical minerals. The province reports that every dollar of public funding has leveraged more than two dollars in private-sector investment, underscoring the program’s role in attracting global capital.
In addition to exploration funding, Ontario is investing $500 million in a new Critical Minerals Processing Fund aimed at expanding domestic processing capacity. The initiative is intended to ensure that minerals extracted in the province are also processed locally, supporting job creation and value-added economic activity.
The government is also advancing regulatory reforms through its “One Project, One Process” framework, which aims to streamline permitting approvals by up to 50 per cent by coordinating processes across ministries.
Northern Ontario at the centre of expansion
Ontario remains one of the most mineral-rich jurisdictions globally, with approximately 200 companies actively exploring more than 300 projects, the majority located in northern regions.
The province views continued investment in exploration as critical to sustaining long-term competitiveness, particularly as geopolitical uncertainty and supply chain disruptions increase the importance of domestic resource development.
By focusing on early-stage exploration, Ontario is seeking to secure future mining projects while reinforcing its position as a leading destination for investment in the global critical minerals sector.