CANADA Trends and Developments Contributed by: Mahdi Shams, Kevin Sorochan, Joshua Krane and Scott Masson, MLT Aikins
• the McIlvenna Bay copper and zinc mine in east- central Saskatchewan; and • the Red Chris copper mine expansion in northwest British Columbia. Defence industrial strategy The federal government is pairing these tools with a defence industrial strategy that sets longer-term demand signals and prioritises domestic capacity, secure supply chains and continental resilience. The strategy is designed to convert national security needs into predictable pathways for shipbuilding, aerospace, surveillance, cyber and munitions. Dual-use and ena- bling infrastructure are now higher on the policy agen- da. Northern corridors, critical mineral processing and ports that support both trade and defence mobility are gaining attention. This shift is intended to prioritise assets with redun- dancy and sovereignty value, not only cash flow. Transactions that bundle industrial capability with enabling infrastructure perform better in screening. Power reliability for electrified yards, hydrogen or LNG bunkering at ports, resilient grid connections at bases and secure data architecture are now part of bank- ability as well as policy alignment. Indigenous consultation Project selection and federal co-ordination are now paired with a stronger expectation of meaningful Indigenous consultation and participation. On 10 September 2025, the federal government created an Indigenous Advisory Council to guide the MPO. The Council includes eleven members from First Nations, Inuit, Métis, and Modern Treaty and Self-Governing communities. Its mandate is practical: promote equity ownership opportunities for Indigenous communities; improve consultation quality; and identify surface issues early so project conditions reflect rights and interests. The Building Canada Act already requires meaningful consultation; however, the Council sup- plies expertise, a shared forum and accountability. Recent case law reinforces this direction. In Kebaowek First Nation v Canadian Nuclear Laboratories , the Federal Court held that the Canadian Nuclear Safety Commission (CNSC) must treat the United Nations Declaration on the Rights of Indigenous Peoples and
the federal UN Declaration Act as interpretive tools when assessing the duty to consult and accommo- date. The CNSC has authority to decide questions of law, so it must use UNDRIP as an interpretive lens. The Court held that the record fell short of the stand- ard, notably in its handling of free, prior and informed consent. The Court further instructed that the process continue under a UNDRIP informed approach with a specific timetable. The case is a clear reminder that faster federal timetables will not rescue a thin consul- tation record. Technology and AI As artificial intelligence becomes increasingly wide- spread globally, its influence on Canada’s energy and infrastructure sectors is starting to become more evi- dent. The government’s investment and research into AI are growing, but they are currently outpacing the infrastructure required to support AI. As the demand for data centres grows, there will likely be a corre- sponding increase in infrastructure projects related to power generation development. Financing Conditions Market conditions in early 2025 were pressured by the threat of tariffs, inflationary pressures, and reduced deal volumes; however, deal values remained high, reflecting greater focus on larger transactions by the market. In the public context, companies of all sizes are seeing a return to greater capital availability to execute on and, accordingly, this has led to increased deal volume, which are expected to persist into 2026 provided there are no further significant changes to the economic and political climate. Private credit Private credit emerged as a significant funding source in early 2025 as public markets remained volatile. Pri- vate credit offers speed and firm commitments that are attractive to borrowers particularly in the face of uncertainty. While the cost is higher than traditional bank debt, the benefits often make it a valuable short- term solution. The result is a hybrid market in which private credit provides speed and certainty, while bank capital offers liquidity and longer-term takeouts once approvals are secured. Direct lenders have partici- pated in large, broadly syndicated transactions, and banks and private credit managers have formed joint
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