The province of Saskatchewan is setting aside $600 million for new critical minerals incentive programs over the next five years, hoping to drive investment and innovation in extraction and processing.The Critical Minerals Processing Investment Incentive (CMPII) and the Saskatchewan Critical Minerals Innovation Incentive (SCMII) targets 11 critical minerals found in the province and runs until 2029.The CMPII supports value-added processing projects, while the SCMII supports commercial innovation projects.Energy and Resources Minister Jim Reiter said the programs build on a "clear" Saskatchewan advantage. "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," he said.Helium and lithium are top of mind for near-term growth potential for the province, though copper, zinc, magnesium, nickel and rare earth elements are also in view.Arizona Lithium's began drilling for the Prairie Lithium project in the Williston Basin in 2021. The project utilizes conventional oil and gas drilling and completion methods to access lithium-rich brine from aquifers about 2.3 km underground. Arizona Lithium Executive Director Zach Maurer said such help from the province was crucial."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).North American Helium Chairman and CEO Nicholas Snyder also had praise for the Moe Sask Party government."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," Snyder said in a provincial government press release."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% 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% of eligible project costs. More than 50,000 Saskatchewan residents are employed in the mining and energy sectors. Saskatchewan's Critical Minerals Strategy released in 2023 set a goal of doubling the number of critical minerals produced in the province by 2030.
