The Government of Canada has announced that, through Budget 2022: ‘A Plan to Grow Our Economy and Make Life More Affordable’, it is making targeted and responsible investments to create good jobs, fight climate change, and build a stronger economic future for all Canadians.
The country’s Minister of Transport, the Honourable Omar Alghabra, announced investments to enhance Canadian mining industry’s ability to provide the minerals and metals required to reach net-zero emissions by 2050.
Facing the challenges of climate change, technological change and a changing global economy, Canada’s economic success requires focused and concerted action. The Canada Growth Fund will be a new public investment vehicle that will operate at arms-length from the federal government. The fund will initially be capitalised at CAN$15 billion over the next five years and will help attract substantial private sector investment to help meet important national economic policy goals.
Budget 2022 has also proposed significant investments, while working closely with affected Indigenous groups, to contribute to the development of a domestic zero-emissions vehicle chain. These investments will secure Canada’s place in important supply chains with other countries and implement a just and sustainable critical minerals strategy.
In total, Budget 2022 proposes to provide up to CAN$3.8 billion in support over eight years, starting in 2022 – 2023, to implement Canada’s first critical minerals strategy. The Budget would:
- Commit CAN$80 million to public geoscience and exploration programs to help find the next generation of critical minerals deposits.
- Double the Mineral Exploration Tax Credit for targeted critical minerals, including nickel, copper, cobalt, rare earths elements, and uranium.
- Dedicates CAN$1.5 billion for new infrastructure investments to unlock new mineral projects in critical regions, such as the Ring of Fire.
- Allocate CAN$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 elements supply chain.
- Allocate CAN$144 million to critical minerals research and development to support the responsible extraction and processing of critical minerals.
- Renew the Centre of Excellence on Critical Minerals for three more years with an allocation of CAN$10 million.
- Add CAN$40 million to support northern regulatory processes in reviewing and permitting critical minerals projects.
- Invests CAN$70 million for global partnerships to promote Canadian mining leadership.
Budget 2022 also proposes significant funding to make Canada a more attractive destination for critical minerals investment and to secure valuable agreements that would increase production of goods like electric vehicles and batteries. It proposes to:
- Provide up to CAN$1 billion over six years, starting in 2024-25, for the Strategic Innovation Fund.
- Provide CAN$1.5 billion that will support critical minerals projects, with prioritisation given to manufacturing, processing, and recycling applications.
- Support innovative projects through the Strategic Innovation Fund, which will complement other proposed investments in the sector, including a proposed CAN$1.5 billion investment in infrastructure.
- Explore potential opportunities to support the growth of the solar panel industry through these investments.
The Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, comments:
“Budget 2022 is about growing our economy, creating good jobs, and building a Canada where no one is left behind. Our plan is responsible and considered, and it is going to mean more homes and good-paying jobs for Canadians; cleaner air and cleaner water for our children; and a stronger and more resilient economy for years to come.”
The Honourable Omar Alghabra, Minister of Transport, comments:
“We all want to see a brighter future for Canadians. By implementing Canada’s first critical minerals strategy, we are investing in our mining industry’s ability to provide the minerals and metals required to reach net-zero emissions by 2050. We will see a growth in our economy, see thousands of good jobs created, and make Canada a vital part of the growing global critical minerals industry while improving the environment.”
The Honourable Jonathan Wilkinson, Minister of Natural Resources, comments:
“Climate change is both the challenge of our time and the economic opportunity. The mining sector will play a critical role in supplying the minerals and metals for batteries and other technologies needed in the clean economy, and that is why Budget 2022 proposes major investments in this space. This makes good sense for the planet and for the economy.”