The federal government expects the mine to add $70 billion to Canada's GDP
Ottawa has cleared Canada Nickel to build its Crawford nickel-cobalt mine north of Timmins, Ontario, closing out the last federal regulatory step for a project that could rank among the largest nickel operations in the Western world.
The approval shifts the company's attention to the multibillion-dollar task of financing construction.
The approval, confirmed July 31, makes Crawford the first mining project to clear the federal Impact Assessment Act since the law was amended in 2019, according to the Impact Assessment Agency of Canada.
Environment Minister Julie Dabrusin issued the decision statement, finding that "the potential effects within federal jurisdiction are justified when taking into account the benefits this project will provide," the agency said.
For investors, the decision shifts the story to funding.
Chief executive Mark Selby told the Globe and Mail the mine will cost about US$2bn to build, though Canada Nickel needs to raise roughly US$2.5bn to cover interest and related costs, with about US$1.5bn from debt and US$1bn from equity.
The Globe reported that tentative financing includes US$500m in debt from Export Development Canada, another $500m from an unnamed Canadian government agency and roughly US$600m in tax credits tied to critical minerals and carbon capture.
Samsung SDI holds an option to buy 10 percent of Crawford for US$100m, as per the same report, leaving about US$300m that Selby expects to raise through private equity and further government sources.
Canada Nickel's balance sheet underscores the gap.
The company posted a net loss of $13.9m for the six months ended April 30 and carried bridge-loan liabilities of $44.5m, according to filings summarized by industry outlet The Deep Dive.
Selby has said the company aims to reach a construction decision in 2027, with production targeted for 2029.
Ottawa framed Crawford as an economic anchor.
The federal release estimated the project will add about $70bn to Canada's GDP over a roughly 41-year life and attract $5bn in investment.
The government put job creation at up to 4,000 careers, while CBC News reported the mine is expected to generate 5,000 jobs during construction and 1,300 once operating.
The open-pit mine and on-site mill, about 42 kilometres north of Timmins, would process close to 90m tonnes of ore a year.
The approval came with strings attached.
The impact assessment found the project would harm fish and migratory bird habitat, water quality, Indigenous communities and Canada's ability to meet its climate goals, reported by CBC News, yet Dabrusin concluded the benefits justified proceeding.
She imposed dozens of legally binding conditions, including water-quality monitoring, lighting rules to protect migratory birds and a tailings facility that must be managed and tested for the life of the mine, according to CBC.
Dabrusin said in a statement that Canada's impact assessment process backs "well-planned projects that benefit communities."
It relies on Indigenous engagement and "evidence-based decision-making" to create conditions for job creation, economic opportunity, and development, she said.
Indigenous partners hold a direct stake. Taykwa Tagamou Nation has made a $20m equity investment in the project, described in the reporting as the largest known First Nation investment in a critical minerals project in Canada, and owns about 6.5 percent of Canada Nickel, per a Red Cloud Securities note cited by the Northern Miner.
Welcoming the decision, Selby said it backs developing Canada's critical minerals "in partnership with all levels of government and Indigenous Nations."
He said his team completed the federal permit in four years and advanced Crawford from its fifth drill hole to feasibility study in under seven years, "substantially faster than typically required for large-scale projects."
Government ministers cast the approval as proof of faster permitting, with Natural Resources Minister Tim Hodgson saying it showed the government's commitment to getting projects approved while maintaining environmental standards and respect for Indigenous rights, according to the federal release.
Conservative natural resources critic Carol Anstey disagreed the process was quick.
"Seven years. One project. Still zero shovels in the ground. That's the Liberal record under the Impact Assessment Act," she said in a statement to CTV News, noting that construction had yet to begin and that Liberal laws still stood in the way of mines, pipelines and other major projects.
Crawford sits within a broader federal push.
The government referred the project to its Major Projects Office in late 2025, one of 18 files the office has taken on to accelerate developments seen as strengthening the economy against the US trade war.
Ontario separately fast-tracked Crawford under its One Project, One Process framework early in 2026.
The Globe reported the deposit holds the world's second-largest nickel reserve and is expected to become the largest nickel mine in the Western world once built.
Selby has tied the project to supply-chain security, noting that most of the world's nickel now flows from Indonesia through operations largely under Chinese control, while Canada Nickel says Crawford will feed defence, aerospace, stainless steel, electric-vehicle battery and advanced-manufacturing supply chains.
Sector reaction ran supportive.
Red Cloud Securities analyst Ron Stewart called the milestone the product of years of technical work and First Nations engagement, as per the Northern Miner, and Noble Mineral Exploration, which held the Crawford ground until 2019 and retains an interest, publicly congratulated Canada Nickel on the approval.
With the decision statement in hand, the company said it will continue detailed engineering, pursue financing and seek the remaining provincial and federal permits required before construction can start.
