Mining-friendly Federal Budget to Fund Rare Earths and Chromite Research

Rare Earth Deposits & Mining / Rare Earth Exploration, Mining, Processing, & Uses

Date posted: 04/23/15

Greg Klein reports that Canadian mining groups welcomed a number of industry stimulants in the federal budget tabled recently, among them a 23-million dollar, five-year allocation to unlock rare earths and chromium production in Canada. The money, channeled through Natural Resource Canada, would address the technical challenges of separating and processing rare earth elements for use in advanced manufacturing applications and products, said a statement from Finance Minister Joe Oliver. Funding will also support the development of efficient and green processing technologies to reduce the environmental impacts of chromite production. Mining-friendly federal budget to fund rare earths and chromite research Canada could provide 20 per cent of global rare earths demand, Ottawa stated. The budget document added, Canada has the possibility to play a leading role in supplying rare earth elements by potentially fulfilling 20 per cent of global demand. The Mining Association of Canada saw a number of industry benefits, including renewed funding for the Targeted Geoscience Initiative, aboriginal training and environmental assessment. Mining now accounts for a large majority of federal environmental assessments, MAC stated. Support for the Canadian Environmental Assessment Agency, and other federal permitting departments, is essential to ensure the timely and effective review of major mining projects. The costs of environmental studies and community consultations necessary for an exploration permit will now be eligible tax deductions. In B.C. those expenses totalled over 21 per cent of exploration spending in 2012, according to AME B.C. The extension of borrowing limits for the Northwest Territories and Nunavut should encourage infrastructure development, MAC noted. Additional funds for marine safety and the overseas Trade Commissioner Service would also benefit miners, the group pointed out.