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Mining Association of Canada praises Freeland budget

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(Kitco News) - The Mining Association of Canada said that the new budget announced by the federal government will attract new private sector investment into Canada's mining, smelting and refining industry.

Deputy Prime Minister and Minister of Finance Chrystia Freeland announced the budget this month.

"In the face of increased demand for low carbon technologies, and the need to ensure the minerals and metals essential to their development are mined with commitments to ESG, Indigenous engagement and sustainability at the forefront, there is no better choice than Canada," said Pierre Gratton, the Mining Association of Canada's (MAC) President and CEO. "I am optimistic that with these new measures Canada will be able to attract new private sector investment into Canada's mining, smelting and refining industry, creating well-paid jobs for Indigenous and non-Indigenous Canadians across the country."

The association highlighted items in the budget that it sees helping the sector:

  • A Clean Technology Manufacturing Tax Credit equal to 30 per cent of the cost of investments in new machinery and equipment used to extract, process or recycle critical minerals essential for clean technology supply chains.
  • A 15 per cent refundable tax credit for eligible investments in clean electricity generation systems, including large-scale and small modular reactors. Eligibility is extended to include publicly-owned utilities, which will accelerate necessary investment in electric infrastructure, including in northern Canada such as the Atlin Hydro Expansion Project and the Kivalliq Hydro-Fibre Link.
  • A commitment to improve the efficiency of the impact assessment and permitting processes for major projects by the end of 2023.
  • A re-allocation of $1.5 billion within the Strategic Innovation Fund to support projects in sectors including clean technologies, critical minerals and industrial transformation.
  • The establishment of a $1.5 billion Critical Minerals Infrastructure Fund, to be managed by Natural Resources Canada, towards energy and transportation projects to unlock priority mineral deposits.
  • Supporting loans to Indigenous communities to support them in purchasing equity stakes in major projects through the Canada Infrastructure Bank.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.