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By Alex Whalen and Julio Mejía
According to the latest data, capital expenditure (a measure of investment) in Newfoundland and Labrador’s mining industry has plummeted from more than $1 billion each year from 2021 to 2024 to $503 million in 2025 and an estimated $482 million in 2026.
This is bad news for Newfoundlanders and Labradorians. The mining industry plays a key role in the provincial economy, representing nearly 8 per cent of all economic activity, more than 8,000 jobs (with some of the highest wages of any job category) and billions in exports.
How can the Wakeham government help attract more investment and drive more growth in this crucial industry?
First, it’s important to emphasize what the government is already doing well. The province’s data on permit times is very strong. Timely movement through the permitting process is an important factor in investment, as jurisdictions with longer approval timelines are less attractive to investment. In fact, according to a recent survey of mining investors, out of 68 jurisdictions worldwide, in 2025 Newfoundland and Labrador was the only jurisdiction where 100 per cent of permits were processed within six months or less. Relatedly, 80 per cent of survey respondents said the province met its own timelines for permit approvals “most of the time”—the highest score in Canada.
But clearly there’s room for improvement. For example, in 2025 (the latest year of survey data) 43 per cent of survey respondents expressed concern about “regulatory duplication and inconsistencies” in the province, up from 21 per cent in 2024. And 21 per cent of respondents also expressed concern about the legal system, up 15 percentage points from 2024, while 18 per cent expressed concern about uncertainty over the “administration, interpretation and enforcement of existing regulations,” up 8 points.
Survey respondents also pointed to “infrastructure” conditions and “uncertainty concerning disputed land claims” as areas of concern. The Wakeham government should address these concerns to help drive more investment.
Federal regulations also have an effect. While the Carney government has emphasized the importance of natural resource development in Canada, regulatory uncertainty remains a project-killer in Canada. Carney’s new “Major Projects Office” has yet to approve any projects and likely won’t meaningfully reduce regulation. But if the provincial and federal governments work together to remove regulatory inconsistencies, reduce uncertainty and lower the overall regulatory burden, they could help boost investment in Newfoundland and Labrador.
With the current focus on economic growth in St. John’s and Ottawa, an expanded mining sector represents a key opportunity to increase prosperity in the province. The Wakeham government should set a clear goal to bring investment back to the levels seen between 2021 and 2024, for the benefit of Newfoundlanders and Labradorians.
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