ARTICLE | June 09, 2026
Governments at both the provincial and federal levels continue to direct significant investment toward Northern Ontario’s economy. Several developments over the past few months signal that timelines are moving and that capital is being deployed, not just announced. For local businesses, staying current on what is happening and what programs are available continues to be worth the effort.
Ring of Fire Construction Has Started
On June 2, 2026, a ceremonial groundbreaking took place in Geraldton to mark the start of construction on the Municipality of Greenstone’s Main Street Rehabilitation Project, the first road segment in the broader Ring of Fire road network. The $81.3 million project will connect Highway 11 to Highway 584, a span of five kilometres, and is considered the southern starting point of the roughly 500-kilometre corridor that will eventually reach mineral deposits in the Far North and provide all-season road access to two remote First Nation communities for the first time.
The contract was awarded to Pioneer/Minodahmun Development LP, a First Nation-owned partnership. Additional groundbreaking events for other sections of the road network are expected later this summer. The province has indicated all sections are on track to open by 2030, five years ahead of the original schedule.
The Ring of Fire is projected to generate approximately $22 billion in economic activity over 30 years and support more than 70,000 jobs across the province. With construction now actively underway, the supply chain demand that comes with a project of this scale is moving from a future consideration to a near-term one.
Mining Permitting and Processing Capacity
Ontario’s One Project, One Process (1P1P) framework, which we covered in our February 2026 article, has designated three Northern Ontario projects to date: Frontier Lithium’s PAK Lithium Project, Canada Nickel’s Crawford Project, and Kinross Gold’s Great Bear Project. As noted previously, more predictable permitting timelines benefit local businesses across construction, logistics, engineering, and professional services, not just mine operators directly.
The $500 million Critical Minerals Processing Fund remains available, with the goal of keeping more refining and value-added processing activity within Ontario. Businesses involved in processing, engineering, or supply chain support for the minerals sector may want to assess whether they are eligible for support through that program.
Infrastructure Funding for Municipalities
The Northern Ontario Resource Development Support (NORDS) Fund has been made a permanent program, with $15 million committed annually. All 144 northern Ontario municipalities are eligible. Funding supports infrastructure projects such as road and bridge improvements connected to resource development activity in mining, forestry, and agriculture. Municipalities will have the opportunity to submit projects through Transfer Payment Ontario later this summer.
Since 2021, NORDS has delivered $75 million in municipal infrastructure support across the region. Making it an ongoing program rather than a fixed-term one gives municipalities more certainty when planning larger multi-year infrastructure projects.
Federal Investment in Greater Sudbury Manufacturing
FedNor recently announced close to $3 million through its Regional Tariff Response Initiative (RTRI) for three Greater Sudbury manufacturers. The investments supported equipment upgrades, automation integration, and production expansion across the three businesses, with outcomes including increased domestic production capacity, reduced reliance on international supply chains, and the creation of new local jobs. The RTRI is designed for businesses responding to the impact of U.S. tariffs by modernizing operations or diversifying supply chains.
What to Keep in Mind
As activity in the region accelerates, a few areas remain relevant for business owners to revisit.
Government funding programs. Between the NORDS Fund, the Critical Minerals Processing Fund, and FedNor’s Northern Ontario Development Program, there are several active programs available to Northern Ontario businesses and municipalities. Eligibility and timing requirements vary, and most require applications before eligible costs are incurred.
Capital investment planning. The 2026 Ontario Budget proposes an immediate 100% write off for manufacturing and processing machinery, equipment, and buildings, pending the passage of federal legislation. Separately, the Ontario Made Manufacturing Investment Tax Credit provides eligible Canadian-controlled private corporations with a 10% refundable credit on qualifying investments of up to $20 million per tax year, for a maximum credit of $2 million annually. Qualifying investments include buildings used for manufacturing and eligible machinery and equipment. Both measures require planning before costs are incurred, and your advisor can help assess which applies to your situation.
SR&ED claims. As covered in our recent article on the SR&ED tax credit, changes effective for taxation years beginning after December 16, 2024 have expanded eligibility and reintroduced capital expenditures as an eligible cost. Businesses in mining, engineering, and related technical fields that are improving processes or equipment may have credits worth reviewing.
Connect With an FCR Advisor
FCR works with businesses, First Nations organizations, and municipalities across Sudbury, North Bay, Espanola, and Northern Ontario to assess funding eligibility, plan capital investments, and support decisions through periods of growth and change. If you would like to understand how recent developments connect to your specific situation, reach out to our team to start the conversation.
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