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Canada has unveiled its new strategy on critical minerals essential to the ecological transition and the digital economy. The objective is to speed up the approval of mining projects by simplifying administrative procedures.
The new strategy aims first of all to shorten bureaucratic procedures in order to speed up the obtaining of exploration permits. Indeed, for a mine to see the light of day in Canada, it takes between 5 and 25 years. The federal government therefore plans to simplify the procedure, in particular by eliminating double examinations at the federal and provincial level.
In order to accelerate mining projects and attract investment, the government has also provided tax incentives. As such, it announces the implementation of a new 30% tax credit. The plan also foresees the construction of new infrastructures such as roads, railways and ports in order to access the deposits.
Guaranteeing its energy sovereignty
The new strategy gives priority above all to the production of minerals essential to the energy transition, including lithium, graphite, nickel, cobalt, copper and rare earth elements. Thanks to its mineral-rich subsoil, Canada not only wants to produce for its domestic consumption, but also to supply its Western partners.
The goal is to increasingly reduce dependence on foreign countries, including China, which produces the majority of these minerals. Canada also wants to take advantage of a growing global market. According to the International Energy Agency, the energy sector’s global needs for critical minerals could increase sixfold by 2040.
The mining industry has become strategic for the country. In late October, Canada tightened its investment rules to make it harder for foreign state-owned companies to gain access to its critical minerals sector. The government also recently ordered three Chinese companies to withdraw their stakes in Canadian companies from the sector on national security grounds.