New Critical Minerals Incentives to Grow Saskatchewan Mining Sector

Released on August 8, 2024

The Ministry of Energy and Resources is now accepting applications to two new critical minerals incentive programs, which will drive investment and innovation in Saskatchewan's critical minerals industry from extraction to processing. 

The Critical Minerals Processing Investment Incentive (CMPII) and the Saskatchewan Critical Minerals Innovation Incentive (SCMII) targets 11 critical minerals found in the province, which are all essential to global economies, national security and everyday life. The CMPII supports value-added processing projects, while the SCMII supports commercial innovation projects.

"The Saskatchewan critical minerals advantage is clear," Energy and Resources Minister Jim Reiter said. "The Fraser Institute has ranked Saskatchewan as the best jurisdiction in Canada and third in the world for mining investment attractiveness. These new, targeted incentives will help in protecting and promoting Saskatchewan's continued leadership on a global scale into the future."

The two new incentives will support development in Saskatchewan's emerging helium and lithium industries. They will also support development of minerals with near-term high potential such as copper, zinc, magnesium, nickel and rare earth elements. 

"As we transition the Prairie Lithium project from exploration into development, incentives like these are very important to help attract the large investments that are required to build these projects," Arizona Lithium Executive Director Zach Maurer said. "The Government of Saskatchewan's focus on critical minerals has allowed us to expedite our transition into the development phase faster than any other region in North America."

The incentives are based on the established and successful Oil and Gas Processing Investment Incentive (OGPII) and the Saskatchewan Petroleum Innovation Incentive (SPII).

"The government's ongoing support to the helium industry in Saskatchewan —through incentives which I believe don't exist in any other jurisdiction in the world — is what sets Saskatchewan above all other regions for critical minerals exploration and processing," North American Helium Chairman and CEO Nicholas Snyder said. "Support and incentives through programs such as the OGPII, and the new CMPII have led to investment of approximately $0.5 billion by NAH in Saskatchewan. The CMPII and the SCMII incentives have been and continue to be critical for us to attract new investment funding to execute on our growth plans."

The CMPII and OGPII will share the same $500 million funding pool and be available until March 2029. Qualifying applicants investing a minimum of $10 million will receive transferable Crown royalty and freehold production tax credits valued at 15 per cent of eligible project costs. 

For innovation-related projects, the SCMII and SPII share the same funding pool of $100 million and will receive applications until March 2029. Qualifying applicants investing a minimum of $1 million will receive transferable Crown royalty and freehold production tax credits valued at 25 per cent of eligible project costs. 

More than 50,000 Saskatchewan residents are employed in the mining and energy sectors, contributing to a strong and growing economy that benefits everyone in the province. These incentive programs will ensure the mining, oil and gas sectors continue their strong GDP contributions to the provincial economy.

The launch of the two new critical minerals incentives will support the goal of doubling the number of critical minerals produced in the province by 2030 as announced in Saskatchewan's Critical Minerals Strategy released in 2023.

To find out more about our incentive programs and services, please visit:
https://www.saskatchewan.ca/business/agriculture-natural-resources-and-industry/mineral-exploration-and-mining.

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