Canada's Gov't Approves Big Nickel Mine in Northern Ontario as Part of Ottawa's Push for Major Projects

By Robb M. Stewart

Canada's government has approved the development of what promises to be the largest nickel mine in the Western world, part of Ottawa's efforts to fast-track major projects it hopes will bolster the economy and counter pressures from U.S. tariffs.

Federal Environment Minister Julie Dabrusin on Friday released her decision to green light construction for Canada Nickel's Crawford project in Northeastern Ontario, a site estimated to contain one of the world's biggest nickel reserves.

Located about 25 miles north of the town of Timmins, Crawford is projected to attract 5 billion Canadian dollars (US3.6 billion) in investment and could create about 4,000 new jobs, the government said. Canada Nickel plans an open-pit mine with the capacity to produce roughly 240,000 metric tons of ore a day and mill with input capacity of 120,000 tons daily, all operating for about 41 years.

Prime Minister Mark Carney's government has pledged to support the building of projects of national interest to strengthen the economy, lure investment and also help drive an increase in exports to countries beyond the U.S., traditionally Canada's biggest export market by far. Canada, like the U.S. and other countries, has also made critical minerals a strategic priority.

"This is how we create investment certainty for Canadian mining here in Ontario and across the country, so we can be a critical minerals superpower and create economic growth and opportunity and enhance supply chain sovereignty for all Canadians," Energy and Natural Resources Minister Tim Hodgson said.

Crawford is the first mining project to receive a decision under Canada's amended Impact Assessment Act since 2019. It was selected for fast-tracking through the federal government's new Major Projects Office, and was one of the first projects picked under the Ontario government's One Project, One Process framework.

Canada Nickel said that with the federal decision secured, it can continue to push ahead with detailed engineering, project financing, and work to gain remaining provincial and federal permits needed to start construction. The company said it has established indigenous partnerships, including a C$20 million equity investment from Taykwa Tagamou Nation, the largest known first nation investment in a critical minerals project in Canada.

Chief Executive Mark Selby said the company advanced Crawford from its fifth drill hole through a feasibility study to the milestone federal approval in under seven years, faster than typical for large-scale projects. He said a construction decision is expected next year.

Companies are expected to carry out a project within five years of Ottawa issuing a decision statement, after which the go ahead will expire unless an extension is given.

Environment Minister Dabrusin in her decision identified possible adverse effects from the project on fish, water quality, migratory birds and indigenous communities, but concluded it was in the public interest for Crawford to be built. She said there were mitigation efforts the company planned to put in place, and the approval imposes legally binding conditions on Canada Nickel that include protections for indigenous people living in and using the area.

Independent economic analysis prepared for Canada Nickel estimated Crawford could contribute about C$70 billion to Canadian gross domestic product over the life of the mine, support about 185,000 person-years of employment, and generate long-term activity in Northern Ontario and Canada. The company's plans envisage Crawford becoming one of the world's largest nickel sulfide operations and North America's only primary source of chromium, two metals used in defence and aerospace equipment, stainless steel, and electric vehicle batteries.

Write to Robb M. Stewart at robb.stewart@wsj.com

Corrections & Amplifications

This was corrected on Aug. 24, 2026. Canada Nickel's Crawford project is in northeastern Ontario. The original version mistakenly described the location as northwestern Ontario.

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July 31, 2026 15:05 ET (19:05 GMT)