Federal Budget 2022

As we emerge from the COVID-19 pandemic, the mineral industry continues to propel economic recovery and will be a key component in realizing Canada’s path to lower emissions. As a part of Finance Canada’s pre-budget 2022 consultations, PDAC has offered a list of recommendations that would help bolster the competitiveness of Canada’s mineral exploration and development industry.

PDAC Recommendations for Budget 2022

Recommendation 1

That the Federal government increase the Mineral Exploration Tax Credit (METC) from 15% to 30% in each province, and to 40% in each territory, until 2024, in alignment with 5-year renewal announced in 2019.

Recommendation 2

That the Federal government apply a focused enhancement to the METC to accelerate exploration of Canada’s critical minerals. critical minerals

Recommendation 3

That the Federal government provide sufficient resources to develop assessment processes and a mechanism that would allow for multi-year renewal of the METC, a year prior to expiry of the incentive.

Recommendation 4

That the Federal government provide sufficient resources to facilitate an assessment of the Flow-Through Share (FTS) mechanism and identify recommendations to improve regulatory efficiency.

Recommendation 5

That the Federal government significantly expand the funding provided to Natural Resources Canada (NRCan) to further develop the Pan-Canadian Geoscience Strategy (PGS) and accelerate programs related to mineral and energy potential modelling, in collaboration with provinces and territories.

Recommendation 6

That the Federal government create a federal funding mechanism to help provincial and territorial governments undertake comprehensive mineral potential modelling, based on geoscientific data and established best practices.

Recommendation 7

That the Federal government increase the initial funding allotted in Budget 2021 and expand the scope of NRCan’s Critical Battery Minerals Centre of Excellence to work with provinces, territories, and industry to develop processes that better-integrate geoscientific data and mineral potential modelling into government economic development and conservation policies.

Recommendation 8

That the Federal government allocate sufficient resources to facilitate development of an UNDRIP Action Plan through direct engagement with both Indigenous peoples across Canada and the mineral exploration industry, on issues that affect infrastructure, economic development, and regulatory consultation processes.

Recommendation 9

That the Federal government provide additional funding for training and educational services for Indigenous leaders and communities to build capacity in order to ensure meaningful and equitable participation in future regulatory consultation processes.