Saskatchewan’s critical mineral advantage

Growing global populations, the adoption of clean technology, and geopolitical uncertainty are driving an unprecedented level of focus from governments and companies around the world on the sustainable and reliable supply of natural resources.

At the centre of this focus is critical minerals, and Saskatchewan is home to 23 of the 31 minerals found on Canada’s critical mineral list. Critical minerals are key inputs in renewable power generation, fertilizer, clean electricity technologies, electric vehicles, and are essential for electronic devices and other products we commonly use every day. One example of critical minerals in action is smartphones. While brands and devices vary, on average there are a staggering 14 different critical minerals inside a smartphone.

There are three main reasons why governments and companies worldwide are in a race to explore for, mine, process, and refine these minerals. They are of strategic importance to economic and national security, and they are vulnerable to supply-chain disruptions. The presence of these minerals in

Saskatchewan offers our province a unique opportunity to build upon its strong foundation as a global supplier of food and energy security, and to become a key supplier of the critical minerals that are essential to the planet’s future.

In March of 2023, the Government of Saskatchewan launched Securing the Future: Saskatchewan’s Critical Minerals Strategy, to drive increased exploration and grow resource development in the province.

The strategy has focused goals that include increasing Saskatchewan’s share of Canadian mineral exploration spending, doubling the number of critical minerals being produced in the province, establishing Saskatchewan as a rare earth element hub and growing Saskatchewan production of potash, uranium, and helium.

As the world transitions to a clean energy economy, global demand for critical minerals is set to skyrocket by 400 to 600 per cent over the next several decades. Minerals such as lithium and graphite, used in electric vehicle batteries, will see demand increase by as much as 4,000 per cent.

Saskatchewan is currently the world’s top producer of potash, boasts the world’s highest-grade uranium deposits, and has a thriving helium sector, but the province has the potential to also advance significant projects in lithium, copper, zinc, REEs, nickel, and cobalt to production.

In Saskatoon, the Saskatchewan Research Council is constructing North America’s first fully integrated, commercial demonstration Rare Earth Processing Facility with hydrometallurgy, separation, and metal smelting stages. Expected to be fully operational in late 2024, this facility will be among the world’s most sustainable for the extraction and processing of rare earth elements.

Two provincial government programs were expanded in 2023 to boost investment, encourage exploration and improve the province’s global competitiveness in the critical minerals space. The Targeted Mineral Exploration Incentive was increased from $750,000 to $4 million annually and geographic and mineral eligibility was expanded. This opens the program to hard-rock mineral exploration anywhere in the province. This program is intended to increase exploration drilling, which is needed to advance new discoveries — key to diversifying the province’s resource base.

The province also enhanced The Saskatchewan Mineral Exploration Tax Credit, tripling its rate to one of the highest rates of its kind in Canada. It offers a non-refundable 30 per cent tax credit to Saskatchewan taxpayers who invest in eligible flow-through shares issued by mining or exploration companies. Exploration is an important first stage in the mineral development process and is needed to develop new mines. Incenting the industry with a tax credit such as this is a key part of increasing mining exploration and the value of mining exports.

Exploration in Saskatchewan is also supported by strong public geoscience, including a multimillion-dollar investment for the development of a centralized geoscience data management system that will make high quality geoscience data more easily accessible.

The Government of Saskatchewan allocated an additional $2.4 million in 2023 to establish an integrated system for the collection, management, and distribution of Saskatchewan’s public geoscience data. This will provide an online platform to support industry access and submission of geoscience information and will improve service to Saskatchewan explorers and enhance the investment attractiveness of Saskatchewan’s critical minerals resources.

The Saskatchewan critical minerals advantage is clear. The Fraser Institute’s Annual Survey of Mining Companies 2022 ranked Saskatchewan third in the world and first in Canada in the Investment Attractiveness Index. The province boasts among the most sustainable production of minerals in the World, coupled with a highly competitive business environment for exploration, mining, processing, and manufacturing. Critical mineral opportunities abound in the province. Saskatchewan is a critical minerals leader today and will be a critical minerals powerhouse tomorrow. ✘

worksafesask.ca