The Prospectors & Developers Association of Canada (PDAC) is pleased to see the Government of Canada putting a spotlight on the mineral industry in Federal Budget 2022 by announcing measures that will capitalize on Canada’s potential to become the world’s leading sustainable source of the critical minerals needed to transition to a low-carbon future.
Budget 2022 outlines up to $3.8 billion in funding over the next eight years to support implementation of Canada’s Critical Minerals Strategy, including PDAC’s top recommendation to enhance the flow-through share mechanism by doubling the Mineral Exploration Tax Credit (METC) to 30% for critical minerals exploration.
Availability of the expanded critical minerals METC will be extended until 2027—three years beyond the current deadline of 2024.
“The Federal Government has heard our call to increase the METC from 15% to 30% for critical minerals exploration in Canada and this decision is a reflection of PDAC’s continuous advocacy on behalf of members and the minerals industry at large,” says Alex Christopher, PDAC President.
“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.”
The Budget recognizes PDAC’s call to increase funding to Natural Resources Canada (NRCan) and public geoscience by committing nearly $80 million over the next five years to expand and improve access to relevant data sets to inform critical mineral exploration and development.
Our call to increase capacity support for Indigenous communities to participate in resource development is reflected in Budget 2022 with roughly $103 million being allocated over the next five years to build a National Benefits-Sharing Framework for natural resources as well as support for the Indigenous Natural Resource Partnerships Program.
“Mineral exploration and mining contributes more than $106 billion to Canada’s economy annually, employs more than 392,000 individuals—including Indigenous Peoples who make up 12% of the workforce—and generates significant social benefits for communities from coast to coast to coast.” adds Mr. Christopher. “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.”
PDAC looks forward to engaging with the Federal Government through implementation of these and other Budget commitments to ensure they have a positive impact on Canada’s mineral exploration and development industry.