MAC believes 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 C$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 C$1.5 billion for new infrastructure investments to unlock new mineral projects in critical regions, such as the Ring of Fire.
- Allocates C$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 C$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 C$40 million to support northern regulatory processes in reviewing and permitting critical minerals projects.
- Invests C$70 million for global partnerships to promote Canadian mining leadership.
“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,” Pierre Gratton, MAC president and CEO, said in a media release last week.
The “budget should also send a strong signal to our allies in the US 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,” he added.
The World Bank has estimated that mineral production for key materials has to increase by up to 500% for the world to meet its climate change goals. Canada is already a leading supplier of critical minerals, such as nickel, cobalt, uranium and copper, with among the lowest carbon content in the world, due to the fact that Canada has the world’s fourth cleanest electricity grid with 82% of power from renewable or non-emitting sources.
Canada’s ESG credentials are further bolstered by the commitment of Canada’s mining sector to leading mining standards such as MAC’s Towards Sustainable Mining initiative and as the largest private sector employer and partner of indigenous peoples on a proportionate basis.
“As one of the lowest carbon-intensity mineral and metal producers in the world, one of the greatest climate actions Canada can take in support of Paris Accord objectives is to maximize Canadian production of the low-carbon materials needed to meet projected clean technology demand,” said Gratton, adding that the “budget aligns squarely with this objective.”
More on MAC’s Towards Sustainable Mining initiative is here.
