A KPMG survey showed, almost all of Canada's mining company leaders express the urgent need for more investment, government commitment, and favorable tax policies to bolster the growth of the critical minerals industry. Critical minerals, essential components in green and digital products ranging from solar panels to electric vehicle batteries, are deemed pivotal for Canada's economic advancement, with the federal government launching a Critical Minerals Strategy in 2022, backed by nearly $4 billion in budgetary allocations. Despite Canada's abundant mineral resources and historical dominance in the global mining sector, industry leaders assert that current government policies fall short in fostering the sector's potential.
Mining firms identify several challenges, including mitigating Environmental, Social, and Governance (ESG) risks, raising capital, reducing costs, and navigating regulatory hurdles, particularly concerning decarbonization. While optimism remains high regarding Canada's potential to lead in critical minerals, concerns persist regarding the complexity of tax incentives like the Critical Mineral Exploration Tax Credit (CMETC) and the potential non-renewal of the Mineral Exploration Tax Credit in the upcoming federal budget. Heather Cheeseman, KPMG's national mining leader in Canada, emphasizes the industry's need for greater support to realize Canada's ambitions as a sustainable global leader in critical minerals amid the transition to a green economy.
