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  • March 22, 2023
  • Industry News
Mining lobby warns Ottawa against taking miners for granted in push for more aid

The head of Canada’s top mining association said Ottawa’s strategy to build an electric vehicle industry could fail if it doesn’t encourage miners through tax credits and other incentives to construct the mines needed to produce critical minerals that power EVs, such as nickel and lithium.

Existing policies have encouraged the hunt for new mineral deposits in Canada, and have brought investment from big automakers and battery companies such as Volkswagen Group and LG Energy Solutions in the past year, said Pierre Gratton, head of the Mining Association of Canada.
But the government “appears to have taken for granted” miners, who require millions of dollars to construct mines, Gratton said ahead of the federal budget on March 28.“We have projects now that are almost shovel-ready but they are having trouble raising financing,” said Gratton, who represents a group of about 50 of the country’s biggest miners. “They sort of have taken our sector for granted, just assumed that Canada is a mining powerhouse, and we are going to be fine, but we are not.”

The demand for electric vehicles has increased globally as nations work on ways to meet their climate goals. Canada is looking to build a low-carbon EV industry and in its last budget allocated $3.8 billion to boost the critical minerals sector.
It was a move that Gratton lauded at the time. However, 12 months on, the sector hasn’t benefitted as expected. He said that none of the $1.6 billion so far allocated under the government’s Strategic Innovation Fund (SIF) will benefit an advanced mining project nearing construction.

E3 Lithium Ltd. received $27 million from the SIF last year, but the money was to support the company’s pilot lithium plant. The Alberta-based company is still years away from construction.

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Read the full story in the Financial Post

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