Federal budget could have big implications for Manitoba mining industry
With an insatiable demand for lithium around the world, new tax incentives unveiled in the 2023 federal budget could have big implications for Manitoba's mining industry.
Lithium – the rare earth material that is a critical component in electric car batteries – can be found here in Manitoba.
"The projections for electric vehicle demand are through the roof, and there's not enough lithium supply on the planet right now to supply it," Dave Peck, with Grid Metals Corporation, told CTV News.
He says Grid Metals wants to be a part of it. The exploration and development company plans to extract lithium from an area north of Lac du Bonnet.
It's working with Sagkeeng First Nation to develop the new mines which it estimates are about two years away from being able to extract the material.
"We can build a battery plant here. We have renewable power, we have a great labour force, and we've got everything people would want," Peck said.
At the moment, there isn't a place to process the lithium in Manitoba.
"There's a window right now in terms of these critical minerals. Because they're not going to wait, other provinces and other countries aren't going to wait for Manitoba to get its act together," said Chuck Davidson, the president and CEO of the Manitoba Chambers of Commerce. "Now is the time for us to take advantage of this."
That may be about to happen.
Tuesday's federal budget contains a 30 per cent clean-manufacturing tech tax credit equal to the cost of investments in new machinery and equipment used to extract, process or recycle critical minerals essential for clean technology supply chains.
"Canada has to seize this historic opportunity or else we'll get left behind as the rest of the world's democracies build the clean economy of the 21st century," said Canada's Finance Minister Chrystia Freeland.
The Canadian Mining Association says this budget should help to intensify the mining already going on in Manitoba.
"It will breathe even more life into parts of Manitoba like Thompson, but also quite possibly beyond," said Pierre Gratton, president and CEO of the association.
As part of the budget, the federal government will establish a one and a half-billion-dollar critical minerals infrastructure fund. It will go towards energy and transportation projects to unlock priority mineral deposits.
The government is also promising it will offer loans to Indigenous communities to help them in purchase equity stakes in major projects.
Manitoba's Minister of Economic Development, Investment and Trade Jeff Wharton said the province's mining sector is looking forward to working with the federal government.
"We know that Manitoba has clear advantage in the mining sector to become a worldwide leader in clean and sustainable mineral extraction," a written statement from the minister reads. "The future of Manitoba’s mining and mineral industry is exceptionally bright – with an amazing opportunity for job growth throughout the entire province."
He said he looks forward to learning more about the federal budget and its impacts on Manitoba's mining sector.
CTVNews.ca Top Stories
Stormy Daniels describes meeting Trump during occasionally graphic testimony in hush money trial
Stormy Daniels took the witness stand Tuesday at Donald Trump's hush money trial, describing for jurors a sexual encounter the porn actor says she had with him in 2006 that resulted in her being paid off to keep silent during the presidential race 10 years later.
Former homicide detective explains how police will investigate shooting outside Drake's Bridle Path mansion
Footage from dozens of security cameras in the area of Drake’s Bridle Path mansion could be the key to identifying the suspect responsible for shooting and seriously injuring a security guard outside the rapper’s sprawling home early Tuesday morning, a former Toronto homicide detective says.
Jeremy Skibicki has 'uphill battle' to prove he's not criminally responsible in Winnipeg killings: legal analysts
Accused killer Jeremy Skibicki could have a challenging time convincing a judge that he is not criminally responsible for the deaths of four Indigenous women, a legal analyst says.
Bye-bye bag fee: Calgary repeals single-use bylaw
A Calgary bylaw requiring businesses to charge a minimum bag fee and only provide single-use items when requested has officially been tossed.
Air France flight from Paris to Seattle lands in Iqaluit after heat smell in cabin
A plane travelling from Paris to Seattle was forced to make an emergency landing in Iqaluit after there was a heat smell in the cabin during the flight.
CFL suspends Argos QB Chad Kelly at least nine games following investigation
The CFL suspended Toronto Argonauts quarterback Chad Kelly for at least nine regular-season games Tuesday following its investigation into a lawsuit filed by a former strength-and-conditioning coach against both the player and club.
Boy Scouts of America changing name for first time in 114 years, aiming for inclusivity
The Boy Scouts of America is changing its name for the first time in its 114-year history and will become Scouting America. It's a significant shift as the organization emerges from bankruptcy following a flood of sexual abuse claims and seeks to focus on inclusion.
RCMP not investigating possible foreign interference cases related to Chiu, Dong: Duheme
Canada's federal police force is not investigating any possible instances of foreign interference in the cases of former Conservative MP Kenny Chiu and Liberal-turned-Independent MP Han Dong, RCMP Commissioner Mike Duheme says.
Federal government grants B.C.'s request to recriminalize hard drugs in public spaces
The federal government is granting British Columbia's request to recriminalize hard drugs in public spaces, nearly two weeks after the province asked to end its pilot project early over concerns of public drug use.