Canadian mining industry on course for transformative expansion in next decade
The United States Inflation Reduction Act (IRA) will act as a powerful tonic for the mining industry, especially in Canada, setting it on course for a transformative expansion in the next decade, according to Ken Hoffman, head of battery raw materials at consulting firm McKinsey & Co. and one of the most influential voices in the industry.
“It’s changed everything,” Hoffman said of the IRA as he delivered the first keynote speech at this year’s Prospectors and Developers Association Conference in Toronto on March 5.
“It’s going to change metal flows; it’s going to change the pricing; it’s going to introduce premiums.” The legislation, which President Joe Biden signed into law in August 2022, contains roughly US$500 billion in lucrative tax breaks to jumpstart the transition to greener energy, including incentives for batteries produced in countries that have free trade agreements with the United States. Hoffman loosely projected the subsidies would inject US$1 trillion into the battery metal supply chain.
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