Government authorities in Canada established a $1.5 billion fund for critical minerals projects in the country last year and have now formulated criteria for projects eligible to receive a portion of it.
The government released the criteria for potential funding recipients on Friday. The Strategic Innovation Fund (SIF) will be allocated to projects involving the 31 critical minerals Canada has identified while prioritizing copper, nickel, lithium, graphite, cobalt and rare earth elements (REE).
Qualifying projects will need to focus on the processing, manufacturing and recycling of critical minerals but mining projects that demonstrate innovative practices and an ability to help develop Canada’s value chains will also be considered. The government wants selected projects to contribute to sustainability in the domestic economy by focusing on clean technologies and renewable energy sources.
“Canada has everything it takes to be a leading force in critical minerals processing, manufacturing and recycling,” said François-Philippe Champagne, Minister of Innovation, Science and Industry.
“Through the SIF, Canada is making smart, targeted investments in the most promising projects, helping to ensure we are the global supplier of choice for critical minerals and the technologies they enable,” said Canada’s Minister of Natural Resources Jonathan Wilkinson. He met with the Business Council of Alberta earlier this week to discuss critical minerals and other clean energy initiatives in Canada.
Thank you Minister @JonathanWNV for joining us and @calgaryeconomic today to discuss the federal government’s Clean Industry Strategy and opportunities in LNG, hydrogen, critical minerals & other technologies to advance Canada’s environmental & economic goals. #AlbertaBETTER pic.twitter.com/ZV4N7DuJZa
— Business Council of Alberta (@BizCouncilAB) July 12, 2023
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Canada unveiled its $3.8 billion Critical Minerals Strategy in December last year, which is allocating $1.5 billion to remote mineral projects throughout the country. It was decided in March that $144.4 million would go toward a Critical Minerals Technology and Innovation Program and $97.2 million would be used for a Critical Minerals Geoscience and Data initiative.
Other investments made through the SIF include $27 million for a lithium production plant run by Calgary’s E3 Lithium Ltd. (TSX.V: ETL) (FSE: OW3) (OTCQX: EEMMF) last fall and $222 million supporting Rio Tinto’s (LON: RIO) (ASX: RIO) iron and titanium subsidiary in Quebec.
Canada and the United States partnered to develop a joint critical minerals strategy at the end of March as well. The U.S. committed US$250 million toward Canadian and American companies involved with processing critical minerals needed for electric vehicles and other technology. The move is intended to help the two countries reduce dependence on China for critical minerals.
Canadian companies involved with critical minerals include Teck Resources Limited (TSX: TECK.A and TECK.B) (NYSE: TECK), owner of the Highland Valley copper operation in central British Columbia; Vancouver’s American Lithium Corp. (TSX-V: LI) (Nasdaq: AMLI), which operates the TLC lithium project in Nevada; and Canada Rare Earth Corporation (TSX-V: LL), a B.C. company that produces rare earth elements like yttrium, gadolinium and neodymium.
rowan@mugglehead.com
