Saskatchewan Critical Minerals Innovation Incentive (SCMII)
The Saskatchewan Critical Minerals Innovation Incentive (SCMII) offers transferable royalty credits for qualified innovation commercialization projects at a rate of 25 per cent of eligible projects costs. SCMII targets a broad range of innovations deployed across all segments of Saskatchewan's aluminum, cobalt, copper, gallium, helium, lithium, magnesium, natural graphite, nickel, rare earth elements and zinc industries.
The SCMII program is open to both pilot projects and commercial scaling projects – giving applicants the ability to test their innovations in a pilot setting then deploy them at larger commercial scales. In addition, projects executed on multiple sites and projects that include multiple phases may be considered eligible for the program under a single project application.
The Ministry of Energy and Resources may recognize the re-deployment of an existing innovation as an eligible project as long as it is demonstrated that:
- It is considered necessary to overcome substantial technical challenges or proof of concept challenges; or
- It is conducted under different operating conditions that pose significantly new technical challenges.
SCMII is administered by the Ministry of Energy and Resources.
1. Benefits
- The credits are fully transferable which gives non- producers/non-royalty payers an opportunity to benefit from the program. SCMII encourages multi-company projects as eligible costs can be incurred by a firm other than the principal applicant.
- SCMII has a project-specific awarded credit cap of CAD$5 million (i.e., a maximum of up to CAD$20 million in recognized eligible costs per project).
- SCMII can be used alongside other incentive and grant programs available in Saskatchewan.
- Costs incurred from April 1, 2024, onward, may be recognized as eligible. (January 1, 2018, in the case of helium and lithium projects.)
2. Eligibility
- Must be an eligible innovation:
- A minimum “SCMII Technology Readiness Level” rating of 7 is required.
- Pilot – The innovation is the new to Saskatchewan’s industry for that qualifying material (aluminum, cobalt, copper, gallium, helium, lithium, magnesium, natural graphite, nickel, rare earth elements, or zinc) and does not have an equivalent in the Saskatchewan market.
- Commercial Scaling – The innovation is being demonstrated on a significantly different commercial scale or under significantly different conditions that add a degree of novelty or new technical challenges.
- Must be associated with an eligible activity.
- There are four categories of eligible project activities. Any project that satisfies the eligible innovation criteria must also be directly related to one of the four following categories:
- to improve qualifying material recovery
- to manage adverse environmental impacts
- to increase value-added processing capacity
- to commercialize production byproducts or waste for a qualifying material
- There are four categories of eligible project activities. Any project that satisfies the eligible innovation criteria must also be directly related to one of the four following categories:
- Must include at least CAD$1 million in eligible capital and operating costs.
- Must not be operational prior to the application.
3. How to Apply
To apply for the SCMII program, companies must complete and submit the SCMII Application Form. If you have questions about the application process, refer to the SCMII Program Overview and Application Instructions or contact scmii@gov.sk.ca. Completed SCMII Application Forms may be submitted to the Ministry of Energy and Resources via scmii@gov.sk.ca.
The Ministry of Energy and Resources will be accepting applications until March 31, 2029.
5. News Releases
The Ministry of Energy and Resources has introduced two incentives to boost investment in Saskatchewan's critical minerals industry, focusing on key minerals like lithium and helium.
New Critical Minerals Incentives to Grow Saskatchewan Mining Sector