Toronto (January 11, 2023) – The federal government announced the end of 2022 Canada’s Critical Minerals Strategy which follows the government’s allocation of $ 3.8 billion CAD in funding commitment in Budget 2022. With five key objectives: supporting economic growth and competitiveness; promoting climate action and environmental protection; enhancing global security and partnerships with allies; advancing Indigenous reconciliation; and fostering diverse and inclusive workforces and communities. The strategy seeks to position Canada as a global leader in supplying critical minerals to industries and other countries.
The strategy highlighted a list of 31 critical minerals, but Canada will keep a particular focus on six specific minerals which were selected for their abundance of supply in the country, and their role in the supply chain: lithium, graphite, cobalt, copper, and rare earth minerals. The federal government plans to accelerate the approvals process for new mines through a concierge service within the Critical Mineral Centre of Excellence.
Laila Hawrylyshyn, co-chair of the Brazil-Canada Chamber of Commerce Ottawa (BCCC Ottawa), explains this strategy will create not only job opportunities but also a boost to the economy, making Canada an important player in the growing global critical minerals industry.
Funding
With over $ 3 billion CAD allocated in the plan and the inclusion of a 30% exploration tax credit for targeted minerals, Laila states that there will be a significant opportunity for companies in Canada to leverage new funding sources.
These resources will be able to be used across the development phase of projects and in a variety of applications including the construction of needed infrastructure to bring mines online, like roads and transmission lines, to end-of-life recycling plants of minerals which will allow minerals to re-enter the supply chain as base resources.
To help drive the growth of critical mineral production, the government has allocated funding for specific initiatives. These include:
- $ 1.5 billion CAD for infrastructure development for critical minerals and the supply chain.
- $ 79.2 million CAD for public geoscience and exploration.
- A 30% Critical Mineral Exploration Tax Credit for target critical minerals.
- $ 47.7 million CAD for targeted upstream critical minerals research and development through Canada’s research labs.
- $ 144.4 million CAD for critical mineral research and development, and the deployment of technologies and materials to support critical mineral development for upstream segments of the value chain.
- $ 1.5 billion CAD for the Strategic Innovation Fund (SIF) to support critical mineral projects with prioritization given to advanced manufacturing, processing, and recycling applications.