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Critical Minerals Processing Investment Incentive (CMPII)
The Critical Minerals Processing Investment Incentive (CMPII) complements the new Saskatchewan Critical Minerals Innovation Incentive program. CMPII offers transferable Crown royalty/freehold production tax credits for qualified greenfield or brownfield value-added processing projects at a rate of 15 per cent of eligible program costs. CMPII is open to value-added processing projects across all segments of Saskatchewan's aluminum, cobalt, copper, gallium, helium, lithium, magnesium, natural graphite, nickel, rare earth elements and zinc industries.
CMPII is administered by the Ministry of Energy and Resources.
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1. Benefits
- The credits are fully transferable which gives non-producers/non-royalty payers an opportunity to benefit from the program. CMPII encourages multi-company projects, as eligible costs can be incurred by a firm other than the principal applicant.
- CMPII has a project-specific awarded credit cap of CAD$75 million (i.e., a maximum of up to CAD$500 million in recognized eligible costs per project).
- Credits can be claimed at a rate of 20 per cent of total credits in the first calendar year of operations, 30 per cent in the second calendar year and 50 per cent in the third calendar year.
- CMPII can be used alongside other incentive and grant programs available in Saskatchewan.
- Costs incurred from April 1, 2024, onward may be recognized as eligible (January 1, 2018, in the cases of helium and lithium).
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2. Eligibility
In order for a project to be eligible for CMPII it:
- must be an eligible value-added project for one or more of the 11 specified emerging critical minerals;
- must result in a significant increase to processing capacity (for brownfield projects);
- must include at least CAD$10 million in eligible costs;
- must not have become operational before the eligible project application is submitted.
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3. How to Apply
To apply for the CMPII program, companies must complete and submit the CMPII Application Form. If you have questions about the application process, refer to the CMPII Program Overview and Application Instructions or contact cmpii@gov.sk.ca. Completed CMPII Application Forms may be submitted to the Ministry of Energy and Resources via cmpii@gov.sk.ca.
The Ministry of Energy and Resources will be accepting applications from August 1, 2024, to March 31, 2029.
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5. News Releases
The Ministry of Energy and Resources has introduced two incentives to boost investment in Saskatchewan's critical minerals industry, focusing on key minerals like lithium and helium.
New Critical Minerals Incentives to Grow Saskatchewan Mining Sector