Interview: Wilkinson mulls more tax credits for juniors

Canada’s Minister of Energy and Natural Resources says he’s open to discussing ways to boost funding in junior mining stocks and that he’s concerned infrastructure financing will disappear under potential Conservative Party leadership.

Jonathan Wilkinson also said Wednesday he would probably meet with U.S. Secretary of the Interior Doug Burgum next week after planned tariff talks tomorrow were postponed. The government is considering export taxes and new markets, the minister said.

“One of the options that we have is to make critical minerals even more expensive, or potentially, in some cases, to decide we’re going to sell them to other people,” he told The Northern Miner in a phone interview. “We haven’t made that decision yet, but it is a tool in the toolbox, if, in fact, we cannot get the American president to see reason here.”

In spite of the trade war with the U.S., Wilkinson expressed optimism for Canada’s mining industry. This week, he extended the mineral exploration tax credit for two years.

“We are also going to try to have some thought about how we create incentives to drive more private capital into that space,” the minister said. “A lot of them focus on tax measures, whether that’s enhancements to flow-through shares or capital gains. What I would like to hear from the sector is a bit more precision about some of the things that could be done.”

Funding limits

Many mining explorers are increasingly hampered in raising funds as majors reduce exploration and choose to back only a few high-quality juniors. Even as Canada’s unique flow-through shares have surged, there are limited numbers of primarily high-net worth investors attracted to the mining space and many retail investors are excluded in high minimum investment private placements.

Global metal and mining exchange-traded fund assets rose about 6% in the first two months of 2025 to US$352 billion, according to Mineral Fund Advisory. This follows a 13% jump in assets in 2024, further draining the retail investor pool from the junior miner sector.

The mineral exploration tax credit, which was due to expire March 31, will be administered by the Canada Revenue Agency as if the measure had been passed, the minister said. Although Parliament has been prorogued, the agency will treat the credit as existing legislation that’s likely to continue, he added.

The Liberal government’s $3.8-billion critical minerals strategy and $1.5-billion mining infrastructure fund could be undone if Conservative Party leader Pierre Poilievre becomes prime minister, Wilkinson said. Prime Minister Justin Trudeau plans to resign this month and the NDP, which supports the minority Liberal government, said it will trigger an election after Parliament resumes March 24.

“Mr. Poilievre has not made himself clear with respect to things like the investment tax credits, which are really important, especially for the processing part of the sector where the federal government essentially will pay 30% of the capital costs,” the minister said. “That’s an economic initiative, but it’s also a national security initiative, because we have to get away from relying on processed critical minerals from China. So, I’m worried about that for sure. That’s at risk.

“I am worried that he will not understand why things like the critical minerals infrastructure fund, which helps with roads and transmission to get projects moving, is important.”

Election due

Poilievre leads in most polls, but the amount has narrowed dramatically since the tariff fight began.

“Perhaps three or four months ago, people thought maybe it was time, that there would be a change. But I don’t think that’s the mood anymore,” he said. “You may be surprised at the outcome of the next election.”

Wilkinson said he was also upbeat coming out of the Prospectors & Developers Association of Canada’s annual convention in Toronto where on Tuesday he announced $120 million in federal support – to be matched by a similar amount from Ontario – for Frontier Lithium’s (TSXV: FL; US-OTC: LITOF) PAK project. The funds are slated for a new road and bridge to access the project in the province’s northwest. It comes after the federal government this week at the conference opened $500 million in infrastructure spending for new applications.

“I was pleasantly surprised at how positive people are about the momentum in the sector, the prospects for the sector,” he said. “There’s obviously some concern about the United States, but in general, a lot of optimism and momentum.

“While everybody is concerned about the tariffs, it has brought everyone together to appreciate how much we are proud of being Canadian. And you certainly got a sense of that from people in the conference.”

Nuclear reactors

On Wednesday afternoon, Wilkinson turned to his energy portfolio, providing a $300-million loan to Cambridge, Ont.-based Atkins Realis, makers of CANDU nuclear reactors. One of their design advantages is not requiring enriched uranium as fuel, which Canada would otherwise have to contract with the U.S. or Russia to get done.

It also benefits Canadian suppliers like Cameco (TSX: CCO; NYSE: CCJ) by using uranium from Saskatchewan, a useful example of self-sufficiency when Canada’s oldest ally appears bent on economic dominance through threats, chaos and tariffs.

Wilkinson relayed impressions from abroad:  

“I’ve met with a number of other representatives, a number of other governments, and they are just shocked that the United States would treat Canada this way. And of course, they are a little afraid about what comes next for them.”