Fortune Minerals Ltd T.FT

Canada needs to act soon……real soon.

[Jim1712]

Canada needs to act with a sense of urgency on critical minerals

Canadian Mining Journal - April 2, 2024

 

 

What will it take for Canada to reach its ambitious critical minerals goals?...My answer was that Canada’s preliminary steps towards a viable strategy will require much more significant involvement by the government, including financial support, streamlining approval processes, and removing regulatory barriers, if meaningful progress is to be made…Domestic critical minerals producers need greater investment and support from the Canadian government to be able to shoulder the financial risks of carrying a new mining project through to completion…Since 2022, the government has pledged $1.5 billion over six years to be invested in the manufacturing, processing, and recycling of critical minerals; launched the Critical Mineral Exploration Tax Credit; and provided $25 million in funding to engage with Indigenous communities…These developments are positive, but much more is needed. $1.5 billion would barely cover the cost of a single proposed highway project to Ontario’s Ring of Fire. And while Canada’s $28 billions of investments in EV battery production with auto manufacturers are encouraging developments, these projects will require a steady supply of critical minerals to succeed…Another aspect of investment is access to capital. While increased scrutiny over certain foreign investments in the mining sector is crucial for Canadian national security, this has further restricted the already limited supply of investment capital available to critical minerals producers. The impacts of such measures must be balanced through both ongoing investment in Canadian producers and by encouraging investment from international firms not deemed to present security risks…Unlike many of its international allies, Canada is fortunate to have reserves of many of these minerals beneath its soil. Our ability to ensure a stable supply of critical minerals is largely a matter of providing increased financial support to Canadian mining companies while streamlining approval processes and removing regulatory barriers.