Analytical Summary: Canada’s 2024 mining sector data, showing CA$111 billion in GDP contribution and CA$152 billion in exports, underscores the strategic weight of mineral supply chains as G7 nations move to reduce dependence on China. Mexico faces parallel dynamics: ranking among top global producers of silver, gold, copper, and zinc, yet constrained by permitting delays, contested land rights and state control over lithium that limit private investment. For businesses operating across North American mineral supply chains, regulatory bottlenecks and US trade policy shifts in both countries represent near-term risks to supply security and capital deployment.

The Mining Association of Canada released its annual Facts & Figures report on May 13, showing the country’s mining sector contributed CA$111 billion (US$80.9 billion) to GDP in 2024, equal to 3.6% of the national economy.

The report, which draws on current statistics and sector analysis, covers extraction, mining services, primary metal and mineral manufacturing, and downstream processing. When quarrying and oil and gas extraction are included, the sector’s share of GDP rises above 5%, a level the association said has remained stable over the past decade, driven in part by Alberta’s mined oil sands.

Trade Flows and Market Concentration

Canada’s mineral exports reached CA$152 billion in 2024, representing 21% of all merchandise exports by value. The United States was the top destination, absorbing 51% of shipments, followed by the United Kingdom at 15.6% and the European Union at 7.7%.

Gold has grown in relevance as an export commodity. In the first 10 months of 2025, gold exports averaged CA$4.3 billion per month, the association reported. On the import side, Canada brought in CA$126 billion worth of minerals and metals in 2024. The US supplied 45.8% of those imports, with China at 11.9% and the EU at 9%.

The association flagged that export controls, tariffs and trade bans are generating volatility across global mineral markets, particularly given that mining and processing capacity is concentrated in a small number of countries. It warned that supply disruptions could lead to shortages and price increases in clean energy and defence supply chains.

Canada’s Position in Critical Minerals

MAC said Canada is positioned to benefit from G7 and allied-nation efforts to secure reliable critical mineral supplies, citing the country’s low-carbon refined metals and environmental, social and governance standards as competitive factors in international procurement.

The 2025 federal budget included measures the association said could support production of minerals used in defence, semiconductors and clean technologies,  among them broader eligibility for exploration and clean technology tax credits, and accelerated capital cost expensing. MAC cautioned, however, that the impact of those measures will depend on how fast they are put into practice.

The group also called for expanded geoscience work and mineral resource assessments in northern Canada, where it said the potential for new discoveries is high.

Regulatory and Fiscal Reform Outlined

MAC identified permitting timelines as a structural constraint on sector growth. Mining projects in Canada currently navigate provincial regulations, federal impact assessments and multiple federal permits,  a process the association described as lengthy and complex.

Governments have begun reforms to shorten approval timelines, but MAC said further improvements are needed, including better federal-provincial coordination, stronger inter-departmental cooperation and more efficient consultation and permitting processes.

On the fiscal side, the association recommended extending Canadian Exploration Expense eligibility to technical studies and making development costs for brownfield mine expansions fully eligible for tax credits. It also called for competitive fiscal incentives and infrastructure expansion to attract investment and accelerate project approvals.

Mexico Faces Similar Pressures, Familiar Bottlenecks

Mexico’s mining sector tells a parallel story to Canada’s. The country ranked among the world’s top producers of silver, gold, copper and zinc in 2024, and the industry contributed roughly 2.4% of GDP, according to the CAMIMEX. Mineral exports exceeded US$17 billion last year, with the United States absorbing the vast majority of shipments, a trade concentration that has drawn scrutiny as US tariff policy continues to shift.

The structural challenges, however, run deep. Mexican miners face permitting delays, legal challenges to concessions in indigenous territories and uncertainty stemming from 2022 reforms that temporarily suspended new mining concessions. Land rights disputes have stalled several projects in several states, adding to a backlog that investors say discourages long-term capital commitments.

On critical minerals, the picture is more complex. The current administration has signaled openness to foreign investment, particularly in lithium, but the state-owned LitioMX retains exclusive rights over the resource, a model that has slowed private sector participation and drawn comparisons to nationalization efforts in neighboring countries. Copper and rare earth development, by contrast, remains more open to foreign capital.

As G7 nations accelerate efforts to diversify critical mineral supply chains away from China, Mexico, like Canada, is positioning itself as a reliable, proximate supplier. Proximity to the US market, an established industrial base and existing trade infrastructure under the USMCA give the country structural advantages that few competitors can match. Analysts, however, say permitting reform and legal clarity on land and resource rights will determine how much of that opportunity Mexico can ultimately capture.