TELF AG examines recent Canadian initiatives in the strategic minerals sector
Two important government programs
Globally, one of the most active nations in launching new initiatives related to strategic minerals is certainly Canada, which, a few days ago, through the words of some government representatives, announced new financial support of 5.1 million dollars reserved for 16 projects related to the minerals sector directly involved in the energy transition. The funds come from two distinct national programs that aim to increase the domestic production of specific strategic resources to contribute to the construction of a more complete and ambitious global supply chain. For Canada, these resources represent not only a generational opportunity and valid allies for the industry but also a valuable tool for developing the national economy and creating new jobs throughout the country.
Government support for different sourcing initiatives is linked to funds from the Critical Minerals Geoscience Data Initiative, which includes an endowment of more than $4 million to be allocated to the geological potential of strategic mineral sources, but also from the Global Partnerships Initiative, which will reserve approximately $1 million to strengthen Canada’s bilateral commitments in the minerals sector. The first program, which can count on a total endowment of $79.2 million, aims to improve the quality and availability of data available to the sourcing industry to accelerate its development. The second program, for which approximately $70 million has been reserved in total, focuses instead on strengthening Canada’s global leadership in the minerals sector.
The role of Canadian resources
It is no coincidence that the North American nation is focusing on these resources: in 2022, the Canadian strategic minerals sector employed more than 400,000 people, contributing a whopping $109 billion to the nation’s gross domestic product. A particular area on which national attention is focusing is related to electric vehicles and their batteries, as well as specific financial support, in the belief that this is a sector inevitably destined to grow in the coming decades. Currently, 60 minerals and metals in Canada are produced in approximately 200 mines and 6,500 sand, gravel, and stone quarries distributed throughout the country.
This renewed government support for strategic minerals is an integral part of the broader national strategy dedicated to these resources, which, until 2030, will be able to count on total allocations of 3.8 billion dollars. These sums are reserved for various industrial activities, from exploration to geoscience, processing to production, without neglecting recycling. For Canada, the national strategy dedicated to strategic minerals is firmly intertwined with the climate objectives set by the nation, which by 2030 include reducing greenhouse gas emissions and reaching the target of zero emissions by 2050.
Canada’s attention to the battery and electric vehicle sector is also well demonstrated by the recent government allocation of approximately 10 million dollars for the development of five infrastructure projects in northwestern Ontario: three of these projects involve lithium, a resource considered of great importance for the development of batteries and new-generation vehicles.
