OTTAWA (CU)_Canada’s mining industry is one of the largest in the world, with the country long been known as a major gold producer. However, in its efforts to mine and process minerals for the booming electric vehicle sector, it has lagged several other nations, including China. However, this is about to change, as Canada’s efforts to become a key part of the global EV supply chain is now expected to receive a multibillion-dollar boost.
During its recent federal budget unveiling, the government announced plans to spend $3.8 billion to boost domestic production of lithium, copper and other minerals that are critical for the EV sector. The spending will include grants for mineral surveying, processing and recycling, as well as subsidies for infrastructure and tax credits for the digging of new mines. “The world economy is going green. Canada can be in the vanguard, or we can be left behind,” Finance Minister Chrystia Freeland said as she presented the budget to parliament.
The announcement came at a time when miners have been complaining over the fact that the federal government has been investing in battery components and facilities, like a gigafactory in Windsor, while overlooking the need to procure minerals to build EV products at these facilities. Therefore, the multibillion-dollar spending pledged by Ottawa was hailed by miners, with Greg Andrews, chief executive of rare earths miner Search Minerals Inc, describing it as “a game-changer”. David D’Onofrio from PowerOne Capital Markets, which is invested in several Canadian lithium and nickel projects said: “The general climate in Canada is becoming more and more supportive, which is very good for the industry.”
However, it must be noted that the government does not intend to lessen regulatory requirements for new mines as part of the spending. Mining in Canada is largely regulated at the provincial level, and this will be the case for the foreseeable future.
