Order in Council 377/2024 introduces the Saskatchewan Critical Minerals Innovation Incentive Regulations, designed to promote innovation in the extraction and processing of critical minerals within the province. Established under the authority of The Financial Administration Act, 1993, these regulations create an operational framework for a new incentive program aimed at improving the industry.

The document begins with essential definitions crucial for understanding the regulations. Key terms include “Act,” referring to The Financial Administration Act, 1993; “Eligible Costs,” which are costs deemed allowable under an agreement related to specific projects; “Eligible Innovation,” which denotes innovations meeting the technological readiness standards set by the minister; “Eligible Project,” referring to projects involving critical minerals that the minister deems innovative; and “Participant,” which designates individuals or entities whose applications for eligible projects have received approval and who have entered into agreements.

The Saskatchewan Critical Minerals Innovation Incentive Program is officially established under these regulations, to be administered by the minister responsible. The primary objective is to incentivize projects that improve the recovery, processing, and commercialization of critical minerals.

To qualify for the incentive, projects must meet specific eligibility criteria. These include an innovation requirement, where the project must represent either a novel innovation or a significant modification of an existing process; a minimum investment of $1 million in eligible costs; a stipulation that the applicant must not be a government body or a not-for-profit corporation; and the condition that the project must not be operational prior to submitting the application.

Participants in approved projects can earn transferable credits, which equate to 25% of their approved eligible costs, with a maximum cap of $5 million in credits. These credits may be applied toward the remission of royalties and taxes associated with the project. The regulations specify the processes for earning, transferring, and applying these credits, including the conditions under which credits may be transferred to a business associate.

The minister is also tasked with maintaining a comprehensive record of each eligible project, which includes approved eligible costs, earned credits, and any transfers of credits. Participants and transferees must provide necessary information and grant access to their records for the minister, ensuring transparency and accountability in the program’s implementation.

By providing a framework for financial incentives, the regulations aim to encourage significant investment in technological advancements while ensuring that projects adhere to environmental and operational standards. This initiative positions Saskatchewan to improve its competitive edge in the critical minerals market, supporting sustainable development and economic growth within the province.

Saskatchewan (OC 377/2024) August 2, 2024