Feds looking to expand critical mineral exploration tax credit is welcomed in N.L., says industry

The federal budget has been tabled in Ottawa, and it has one proposed item that is generating optimism in Newfoundland and Labrador’s mining sector.

Prime Minister Mark Carney’s budget proposes to expand eligibility on the critical mineral exploration tax credit to include 12 additional minerals, including manganese and fluorspar.

That could have positive financial implications for two companies in the province.

Singapore-based AMED Funds is looking to revive the fluorspar mining industry on Newfoundland's Burin Peninsula, and there’s Wabush-based Tacora Resources.

“This is a very exciting time in the mining industry,” Tacora general manager of stakeholder relations, Graham Letto, told CBC News.

“There's lots of new developments, lots of new prospects, lots of new opportunities in the mining industry, certainly in the critical minerals.”

Letto said the products the mine produces, high purity iron ore and manganese, are both considered critical minerals. He added Tacora is also going through a process to test the manganese, a byproduct of its mining operations, in a Chinese facility to see if it can be upgraded into a high quality manganese concentrate.

“Any help that we can get through the federal funds or through provincial, would be, certainly, very helpful in helping us get to that point where we can make this a saleable product and be a second source of revenue,” said Letto.

He added critical minerals are important for technology companies and the electrification of vehicles, so anything classed by the government as a critical mineral will get “good attention.”

“We're very fortunate in this province,” he said, because of a number of rare earth minerals.

“Labrador can become a very important player in this industry if everything is done right and support is there.”

Mining Industry N.L. executive director Amanda McCallum said the tabled budget contains a lot of commitments aimed at supporting the mining sector, including the creation of the critical minerals sovereign fund, which will see investments into critical minerals projects and companies, as well as the critical mineral exploration tax credit expansion.

“Overall, positive and promising,” McCallum said.

She said the mining sector contributes 9.3 per cent to the province's GDP — making it the second largest contributor after oil and gas — and the sector has created thousands of jobs.