OTTAWA — April 8, 2022: The Mining Association of Canada (MAC) welcomes the government’s forward-looking vision for our sector as proposed in Budget 2022.
With unprecedented support and extensive measures, Budget 2022 will position Canada’s minerals and metals industry for success as a partner in accomplishing Canada’s goal of a greener future while also enhancing greater supply chain resiliency, particularly in battery and advanced manufacturing materials.
Budget 2022 reinforces the government’s commitment to climate action and supply chain security goals by providing strategic funding and programmatic supports to Canada’s minerals and metals sector, underscoring a recognition that the world is better off on climate change when Canada wins on critical minerals.
Specifically, the budget:
- commits $80 million to public geoscience and exploration programs to help find the next generation of critical minerals deposits;
- doubles the Mineral Exploration Tax Credit for targeted critical minerals, including nickel, copper, cobalt, rare earths and uranium;
- dedicates $1.5 billion for new infrastructure investments to unlock new mineral projects in critical regions, such as the Ring of Fire;
- allocates $1.5 billion to invest in new critical minerals projects, with a priority focus on mineral processing, materials manufacturing and recycling for key mineral and metal products in the battery and rare-earths supply chain;
- allocates $144 million to critical minerals research and development to support the responsible extraction and processing of critical minerals;
- renews the Centre of Excellence on Critical Minerals for three more years with an allocation of $10 million;
- adds $40 million to support northern regulatory processes in reviewing and permitting critical minerals projects; and
- invests $70 million for global partnerships to promote Canadian mining leadership.
“With today’s budget, the Government of Canada has positioned Canada in a leading competitive position for new investments up and down the minerals and metals sector and beyond. Doubtless, these measures will give Canada a lock on the top spot for global exploration investment and spur new investments across the value chain,” stated Pierre Gratton, MAC’s president and CEO.
“Today’s budget should also send a strong signal to our allies in the U.S. and Europe that Canada is and will remain a trusted source for responsibly mined and processed materials essential for the world’s low carbon future and security.”
Other aspects of the budget that will have a positive impact on Canada’s mining sector include:
- $120 million to advance Small Modular Nuclear Reactors as a climate action solution;
- a commitment to develop a 30% tax credit, focused on net-zero technologies, battery storage solutions, and clean hydrogen;
- a refundable investment tax credit of up to 60% for the deployment of carbon capture use and storage technologies;
- $103 million to develop a National Benefits-Sharing Framework for natural resources and the expansion of the Indigenous Partnership Office and the Indigenous Natural Resource Partnerships program;
- $450 million to bolster the National Trade Corridor Initiative;
- $136 million to develop industry-driven data solutions to support supply-chain fluidity; and
- $600 million to bolster the Smart Renewables and Electrification Pathways Program.
The establishment of the Canada Growth Fund, capitalized at $15 billion over the next five years, to support the restructuring of critical supply chains in areas important to Canada’s future prosperity including Canada’s natural resources sector.
The mining industry is a major sector of Canada’s economy, contributing $107 billion to the national GDP and is responsible for 19 percent of Canada’s total domestic exports. Canada’s mining sector employs 692,000 people directly and indirectly across the country. The industry is proportionally the largest private sector employer of Indigenous peoples in Canada and a major customer of Indigenous-owned businesses.