INDUSTRY & SUPPORT

HIGHLIGHTS FROM 2022’S BUDGET ANNOUNCEMENTS & STRATEGY FEDERAL BUDGET 2022 HIGHLIGHTS

In April of 2022, the Federal Budget was released, and PDAC was encouraged by the Canadian government’s focus on the mineral industry. The Budget included investments and other measures that will help Canada realize its potential to become the leading, sustainable global source of the critical minerals needed for a lowcarbon future.

Budget 2022 also included some of PDAC’s key recommendations made on behalf of the mineral exploration and development industry in Canada.

Alex Christopher, PDAC’s president, is quoted as saying “ Measures outlined in Budget 2022 recognize the importance of our sector, and are applauded by PDAC on behalf of its members and the industry at large.”

The $3.8 billion investment into our industry through Federal Budget 2022 includes almost $80 million over the next five years to expand access to geoscience data to support critical mineral exploration and development. This support is a provision that directly responds to PDAC’s budget recommendations.

Additionally, Budget 2022 includes the expansion of federal fiscal incentives, along with $400 million over the next five years to establish a 30% Critical Mineral Exploration Tax Credit (CMETC). This incentive answers PDAC’s call for the government to double the current mineral exploration tax credit. The new CMETC will be in place until 2027 – three years beyond the current five-year METC term, which is set to end in 2024.

Budget 2022 also recognized our association’s call to increase capacity support for Indigenous communities, with the aim of encouraging their participation in resource development. This support comes with over $103 million allocated in the Budget for the development of a National Benefits-Sharing Framework, and supporting the Indigenous Natural Resource Partnerships Program.

“While the shift in focus towards critical minerals by governments has been swift, it is an opportunity PDAC and the industry has recognized for many years, and we are pleased to see that Canada is being positioned to benefit for the long term,” added Mr. Christopher.

CANADA’S CRITICAL MINERALS STRATEGY

Canada’s Minister of Natural Resources, Jonathan Wilkinson, released the Government of Canada’s Critical Minerals Strategy on December 9, 2022.

PDAC was an active voice in building the Strategy, and the association’s recommendations are seen throughout the piece – which will act as a guide for current and future government decision-making for our industry.

During a public consultation that closed in September, 2022, PDAC offered a series of recommendations that could position Canada for success in the global mineral exploration and development industry – and capitalize on one of the greatest economic opportunities in a generation.

The Strategy recognizes PDAC’s recommendations on the importance of investing in public geoscience and enabling exploration via targeted financial incentives for critical mineral exploration activities in Canada. This will help identify and assess new deposits, reduce risks for proponents and grow the sector.