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
What to know about avian influenza in dairy cows and the risk to humans
Why is H5N1, or bird flu, a concern, how does it spread, and is there a vaccine? Here are the answers to some frequently asked questions about avian influenza.
'I was scared': Ontario man's car repossessed after missing two repair loan payments
An Ontario man who took out a loan to pay for auto repairs said his car was repossessed after he missed two payments.
opinion The special relationship between King Charles and the Princess of Wales
Royal commentator Afua Hagan writes that when King Charles recently admitted Catherine to the Order of the Companions of Honour, it not only made history, but it reinforced the strong bond between the King and his beloved daughter-in-law.
New Norad commander calls Canada's defence policy update 'very encouraging'
American troops will be spending more time training in the Far North, the new commander of Norad says, a strategy that fits 'hand-in-glove' with Canada's renewed focus on Arctic defence.
$70M Lotto Max winners kept prize a secret from family for 2 months
During a special winner celebration near their hometown, Doug and Enid shared the story of how they discovered they were holding a Lotto Max ticket worth $70 million and how they kept this huge secret for so long.
Are Canadians getting sick from expired food?
A new survey by Dalhousie University's Agri-Food Analytics Lab asked Canadians about their food consumption habits amid rising prices.
Documents reveal Ottawa's efforts to get Loblaw, Walmart on board with grocery code
It was evident to the federal government as early as last fall that Loblaw and Walmart might be holdouts to the grocery code of conduct, jeopardizing the project's success.
Charlie Woods, son of Tiger, shoots 81 in U.S. Open qualifier
Charlie Woods failed to advance in a U.S. Open local qualifying event Thursday, shooting a 9-over 81 at Legacy Golf & Tennis Club.
Improve balance and build core strength with this exercise
When it comes to cardiovascular fitness, you may tend to focus on activities that move you forward, such as walking, running and cycling.