This article is 3 years old. Images might not display.
The funding, spread over eight years and contained in Ottawa's national budget released on March 7, will primarily be available for critical minerals and metals, including lithium, copper, nickel and cobalt.
"With unprecedented support and extensive measures, Budget 2022 will position Canada's minerals and metals industry for success as a partner in accomplishing Canada's goal of a greener future while also enhancing greater supply chain resiliency, particularly in battery and advanced manufacturing materials," the Mining Association of Canada (MAC) said.
Lead funding contained in the budget include C$1.5 billion to invest in new critical minerals projects, with a priority focus on mineral processing, materials manufacturing and recycling for key mineral and metal products in the battery and rare-earths supply chain.
An additional C$1.5 billion is set aside for new infrastructure investments to unlock new mineral projects in critical regions, such as the "Ring of Fire" minerals area in Ontario.
A further C$144 million to provide for critical minerals research and development to support the responsible extraction and processing of critical minerals.
The budget doubles the mineral exploration tax credit for targeted critical minerals, including nickel, copper, cobalt, rare earths and uranium.
"With today's budget, the Government of Canada has positioned Canada in a leading competitive position for new investments up and down the minerals and metals sector and beyond. Doubtless, these measures will give Canada a lock on the top spot for global exploration investment and spur new investments across the value chain," said MAC chief executive Pierre Gratton.
Miners had been pressing for the funding in the national budget.
Canada classifies 31 minerals as critical as set out in the Canadian Minerals and Metals Plan.
These range from aluminium, copper, cobalt, graphite, lithium, magnesium, manganese, nickel, platinum group metals, potash, rare earth elements, tin, uranium, vanadium to zinc.
Canada follows the US is providing national funding to encourage the development of criticial minerals.
The US does not class copper as critical.
