The federal budget presented in Ottawa includes a proposal that is creating optimism in Newfoundland and Labrador’s mining industry. Prime Minister Mark Carney’s budget suggests expanding eligibility for the critical mineral exploration tax credit to cover 12 additional minerals, such as manganese and fluorspar. This development could have positive financial implications for two companies in the region.
AMED Funds, based in Singapore, aims to revive fluorspar mining on Newfoundland’s Burin Peninsula, while Tacora Resources, located in Wabush, is also set to benefit. Graham Letto, Tacora’s general manager of stakeholder relations, expressed excitement about the opportunities in the mining industry, particularly in critical minerals. Letto highlighted the significance of high purity iron ore and manganese, both classified as critical minerals. Tacora is currently exploring the potential to upgrade manganese into a high-quality concentrate through testing in a Chinese facility.
Letto emphasized the importance of government support in advancing their mining operations, especially in producing saleable products and generating additional revenue. He noted that critical minerals play a vital role in technology and vehicle electrification, garnering significant attention from the government.
Amanda McCallum, executive director of Mining Industry N.L., described the budget as “positive and promising,” with commitments aimed at supporting the mining sector. Notably, the budget includes the creation of the critical minerals sovereign fund and the expansion of the critical mineral exploration tax credit. McCallum highlighted the sector’s substantial contribution to the province’s GDP, ranking as the second-largest contributor after oil and gas. She pointed out the job creation and increased exploration activities in the province, with a projected $258 million in exploration expenditures for 2025.
McCallum stressed the need for government support to sustain the sector’s growth and exploration activities. She advocated for the introduction of a Newfoundland and Labrador mineral exploration tax credit as a value driver and enabler for further development. Willem Jacobs, managing director of Toronto-based advisory firm Clariti, involved in the fluorspar mine project, did not provide a response by the time of publication.