Saskatchewan Regulation 17/2025 amends provisions under The Mineral Resources Act, 1985, specifically section 10.5. The amendment introduces changes to The Mineral Exploration Tax Credit Regulations, 2014. The key amendment modifies clause 2(2)(d) of the 2014 regulations.

Previously, this clause outlined the types of eligible exploration expenses for tax credit purposes, particularly focusing on specific mining-related expenditures. The amendment makes two distinct adjustments to this clause. First, it introduces a grammatical change by inserting the word “or” after subclause (ii), which helps clarify the list of qualifying expenses. Second, it expands the list by adding a new subclause (iii), which includes “any flow-through critical mineral mining expenditures as defined in subsection 127(9) of the Income Tax Act (ITA) incurred after April 7, 2022.”

This addition significantly broadens the scope of eligible expenditures that can qualify for the provincial mineral exploration tax credit. By incorporating this new category, the regulation aligns Saskatchewan’s tax credit provisions with federal definitions of critical mineral expenditures, thereby potentially incentivizing greater investment in exploration activities targeting critical minerals.

By extending tax incentives to cover expenditures related to critical minerals, the province wishes to demonstrate its strategic interest in fostering sustainable resource development and strengthening its position in Canada’s mining sector. This regulatory amendment may also serve as a response to evolving market demands, technological advancements, and the increasing importance of securing domestic sources of critical minerals amid global supply chain uncertainties.

On December 15, 2022, Bill C-32 received Royal Assent, introducing a new non-refundable “30% Critical Mineral Exploration Tax Credit” (30% CMETC). This tax credit is designed to incentivize investment in mining companies engaged in the exploration of one or more of 15 critical minerals. The 30% Critical Mineral Exploration Tax Credit (CMETC) is available for costs related to mineral exploration in Canada. It applies to expenses that are passed on from mining companies to investors who buy flow-through shares (FTS). When companies issue flow-through shares, they give up the right to claim tax deductions for exploration costs, and instead, the investors can claim those deductions on their own taxes. To qualify for the tax credit, the flow-through share agreements must be signed between April 7, 2022, and March 31, 2027. This means that the tax credit helps encourage investment in critical mineral exploration by offering tax benefits to investors during that time period. The 15 critical minerals eligible under this program include nickel, lithium, cobalt, graphite, copper, rare earth elements, vanadium, tellurium, gallium, scandium, titanium, magnesium, zinc, platinum group metals, and uranium.

Saskatchewan Regulation 17/2025 represents a targeted policy measure to improve the competitiveness of Saskatchewan’s mineral sector by incentivizing exploration spending, particularly in the area of critical minerals, through adjustments to existing tax credit regulations.

Saskatchewan (17/2025) April 4, 2025
Disclaimer: Insights are for informational purposes only and do not reflect RRI’s official position or constitute legal opinion.