New government announcement electrifies Canada’s mining industry

First introduced in 2018, the government’s Fall Economic Statement specified that clean energy equipment be eligible for immediate expensing. With this change, the cost of specified clean energy equipment became eligible for a full tax write-off the year it is put in use in the business. Unfortunately, this measure did not include most electric mine vehicles when first announced. Prime Minister Trudeau’s recent announcement extends the accelerated write-off to a broader suite of mine vehicles.

“This announcement is welcome news for Canada’s mining sector and responds to one of MAC’s specific budget requests,” said Pierre Gratton, MAC’s President and CEO. “Last year, Canada opened its first all-electric mine, and the deployment of electric vehicles across Canada is accelerating. Nonetheless, such equipment has a significant cost premium, so the announcement will help de-risk such purchases and accelerate the adoption of electric vehicles at more mines. This news, coupled with recent announcements on critical minerals and the Canadian Minerals and Metals Plan, show the government is committed to enhancing our sector’s competitiveness.”

Electric mine vehicles provide significant benefits. For underground mines, electric vehicles reduce ventilation requirements, reduce mine waste through smaller drifts, improve air quality for workers and eliminate greenhouse gas (GHG) emissions that contribute to climate change. Expanded use of electric vehicles should also contribute to lower unit costs over time, which will further accelerate their deployment.

“Just as miners know their materials are essential to the transition to a low-carbon economy, we also know we must reduce our own operational footprint,” said Brendan Marshall, Vice President of Economic and Northern Affairs for MAC. “This announcement underscores the government recognises this and is committed to a sustainable extractive sector as a key component of Canada’s economy.”

The electrification of mines can make a significant contribution to reducing the mining sector’s GHG emissions. Increased investments in infrastructure to provide access to clean electricity are also critical. Canadian mines are also supplying the critical minerals necessary to support the transition to a lower carbon economy, with many Canadian mines supplying some of the world’s lowest carbon intensive nickel, copper and metallurgical coal.

Read the article online at: https://www.globalminingreview.com/environment-sustainability/04032020/new-government-announcement-electrifies-canadas-mining-industry/