Canada's Federal Budget 2022

Country / jurisdiction: Canada · Year: 2022 · Status: In force · Level: National · Type: Voluntary

Canada's Federal Budget 2022 introduced a total investment of $3.8 billion over eight years, beginning in 2022-2023 to support the Critical Minerals Strategy. This strategy aims to establish Canada as a global leader in sustainable critical minerals production, processing, and recycling, while ensuring Indigenous participation and environmental protection.

Budget 2022 acknowledged that critical mineral mining projects face unique challenges, including remote locations, changing prices, lengthy regulatory processes, and sustainability. To address these challenges, the Budget proposed (in Canadian dollars):

Up to $1.5 billion over seven years (starting 2023-24) for infrastructure investments to support critical minerals supply chains, contributed to the Strategic Innovation Fund (see also the Critical Minerals Infrastructure Fund ) to support critical minerals projects, with prioritisation given to advanced manufacturing, processing, and recycling applications

$79.2 million over five years (starting 2022-23) for Natural Resources Canada to provide public access to integrated data sets for critical mineral exploration and development

A new Critical Mineral Exploration Tax Credit (as part of Canada’s Critical Minerals Strategy): 30% tax credit for specified mineral exploration expenses incurred in Canada

Applies to expenditures renounced to flow-through share investors

Eligible minerals include nickel, lithium, cobalt, graphite, copper, rare earths elements, vanadium, tellurium, gallium, scandium, titanium, magnesium, zinc, platinum group metals, and uranium

Available for flow-through share agreements entered after Budget Day and on or before March 31, 2025, extended to March 31, 2027

On Indigenous Engagement and Natural Resource Partnerships, Budget 2022 proposes to provide $103.4 million over five years, starting in 2022-23, to Natural Resources Canada for: Development of a National Benefits-Sharing Framework for natural resources

Expansion of the Indigenous Partnership Office

Expansion of the Indigenous Natural Resource Partnerships program

A minimum of $25 million specifically dedicated to early engagement and Indigenous communities' capacity building to support their participation in the critical minerals strategy

Budget 2022 proposes to provide up to $144.4 million over five years, starting in 2022-23, to Natural Resources Canada and the National Research Council to support research and development and deployment of technologies and materials to support critical mineral value chains.

Official source: https://budget.canada.ca/2022/report-rapport/chap2-en.html#wb-cont