PDAC 2022: War, supply issues have increased importance of critical minerals, says Wilkinson

Natural Resources minister Jonathan Wilkinson has said that Russia’s invasion of Ukraine and the fragility of global supply chains have “heightened” the importance of critical minerals as he welcomed mining company delegates on the opening day of PDAC 2022.

Wilkinson described the transition to net-zero as a “competitive race” between the world’s largest economies, with demands for minerals like lithium and graphite, used in electric vehicles, to increase by 1,000% in the future.

“There is a risk of them becoming a bottleneck rather than an enabler of energy transition and so early and rapid development is required,” he said. He added that Canada possessed all of the 31 minerals in the country’s critical minerals list.

In April, the federal government allocated up to $3.8 billion over eight years in this year’s budget, to develop electric vehicle components such as batteries and permanent magnets and ensure that the country becomes a vital part of the global critical minerals industry.

Applauded by miners, the budget also introduced a new 30% tax credit for exploration expenses incurred in Canada that target minerals like nickel, lithium, cobalt, graphite, copper, rare earths elements, zinc, uranium, platinum group metals and others.

During his speech at PDAC’s Canada Day session, Wilkinson also hinted at reducing the time needed to start up mines in Canada.

“Going forward it simply cannot take us 15 years to develop a new mine,” he said, adding that the government’s recently launched Regional Energy and Resource Tables will bring together different groups in the sector “to identify and seize the greatest opportunities for growth.”

The minister further said that the government is currently working to strengthen the Canada-U.S. critical minerals action plan and boosting mineral security in the wake of the Russian invasion.

“This is a historic time for Canada’s mining industry. If we are thoughtful and bold in our actions, we can leverage Canada’s inherent advantages…to create a truly sustainable, prosperous, low-carbon and dynamic natural resources economy,” Wilkinson concluded.