The Prospectors & Developers Association of Canada (PDAC) is encouraged to see its recommendations on behalf of Canada’s mineral exploration and development industry reflected in the Federal Government’s Critical Minerals Strategy, launched today by Jonathan Wilkinson, Canada’s Minister of Natural Resources.
In a public consultation that closed in September this year, PDAC offered a series of recommendations to position Canada for success and capitalize on one of the greatest economic opportunities in a generation.
As the world looks for new sources of minerals and metals to fuel the low carbon transition, demand for critical minerals is set to increase as essential inputs for renewable energy and clean technologies, such as electric batteries, wind turbines, solar panels and small modular reactors.
“For Canada to become a meaningful source of critical minerals, governments must enact policies that strengthen the mineral exploration and development sector, boost our domestic production capacity and reduce our reliance on foreign sources that may reflect jurisdictions with lower environmental, sustainability and governance standards,” said Alex Christopher, PDAC President.
“The Critical Minerals Strategy announced today provides guideposts for taking steps to support our industry right here in Canada, so that we can supply ourselves, and the world, with the critical minerals and metals needed to achieve a low-emissions future.”
The Strategy recognizes PDAC 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.
The Critical Minerals Strategy follows the 2022 federal budget that dedicated $3.8 billion to the mineral exploration and mining industry, 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.
“While emphasis on critical minerals may appear rapid, it is something that PDAC and the industry has known for many years, and we are pleased to see it being recognized for the true potential it can offer for Canada – and the world’s – transition to a low carbon future,” added Mr. Christopher.
“Mineral exploration and mining contributed more than $130 billion to Canada’s economy in 2021, employs more than 664,000 individuals — including Indigenous Peoples who make up 12% of the workforce — and generates significant social benefits for remote and northern communities.”
PDAC looks forward to collaborating with the Federal Government to implement the Critical Minerals Strategy, and to further commitments in Budget 2023 to ideally positions Canada’s mineral exploration and development industry to take advantage of this generational opportunity.