Incentive program to boost critical minerals sector

Targeted for launch in 2027, the new incentive program is a key part of the government’s Minerals Strategy and Action Plan. The plan is designed to unlock the province’s mineral potential, support job creation and strengthen Alberta’s position as a destination for mineral development and processing.

This strategy is critical to Alberta and Canada’s ability to meet growing global demands for critical minerals while strengthening our energy security and supply chains. This sector has the potential to create thousands of good-paying jobs and attract billions of dollars of investment.

“Minerals are essential to our economic future, energy security and global competitiveness. Alberta has an important role to play as a leading North American processor and refiner of critical minerals. These incentives will attract the needed jobs and investment to meet this demand.”

Alberta has a largely untapped but significant mineral resource base, particularly lithium. This is one of the province’s most promising opportunities for mineral development and processing. In Alberta, lithium can be extracted from the brine of old oil and gas wells, often found in the same geological formations as natural gas. According to the Alberta Geological Survey’s recent in-place lithium estimate, the province has one of the largest lithium reserves in the world.

Alberta’s mineral resource base also includes iron, vanadium, rare earth elements, petroleum coke for synthetic graphite production and uranium. Most of the minerals included on Canada’s critical minerals list are found in the province.

To attract this investment, Alberta’s government is exploring different incentives, this includes:

• Non-refundable mineral processing tax credit opportunities and increased access to appropriate Crown Land.
• Contemplation of a “flow-through share” tax credit to support critical mineral exploration in Alberta by allowing corporations to claim a portion of their expenses from exploration and development or resources.

“Alberta is making substantial progress in the critical minerals sector by promoting the exploration of these minerals within the province and advancing the processing of ores into refined products. This initiative not only benefits the citizens of Alberta but also enhances the economic well-being of Canada as a whole.”

The incentive program is a step forward in Alberta’s commitments under a recently signed memorandum of understanding with British Columbia, Saskatchewan, Manitoba, Yukon, Northwest Territories and Nunavut. The Western Canadian Critical Minerals Strategy aims to position the region as one of the world’s leading producers and exporters of responsibly sourced critical minerals.

Quick facts

• The Western Canadian Critical Minerals Strategy will:
  • Promote Western Canada as a global hub for critical minerals innovation and sustainable development.
  • Prioritize regional critical mineral hubs.
  • Identify the infrastructure planning and investment needed to maximize mineral extraction, processing and export capacity.
• Alberta has about 82.5 million tonnes of lithium carbonate equivalent in place, with more than two million hectares already leased for exploration across the province.
  • Our lithium reserves have the potential production of more than 10 billion electric vehicle battery packs, worth an estimated one trillion U.S. dollars.

Related information

• Renewing Alberta’s mineral future: a strategy to re-energize Alberta’s minerals sector
• Alberta Geological Survey
• Government of Canada Critical Minerals List

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• Mining the future