Canada's Federal Budget 2022

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:
  • 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, 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.

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