New Brunswick Industries Set to Gain from Federal Budget Boost

UPDATE: New Brunswick’s mining and forestry sectors are on the brink of significant growth following the federal budget announced on October 24, 2023, by Prime Minister Mark Carney. Premier Susan Holt emphasized the budget’s focus on infrastructure investments as a “positive step” for the province, aiming to revitalize critical projects.

The budget includes a staggering $2 billion for Natural Resources Canada to strategically invest in critical minerals projects. This funding could provide crucial support for the Sisson Mine, a long-debated tungsten mining project located near Napadogan and Stanley, approximately 50 kilometres northwest of Fredericton. Despite receiving provincial approval in 2015 and federal approval in 2017, the project has faced ongoing delays, primarily due to opposition from environmental and Indigenous groups.

The new budget proposes adding tungsten to the list of critical minerals eligible for mining and exploration tax incentives, which could spur investment in the Sisson Mine. Pierre Gratton, president of the Mining Association of Canada, hailed the budget as “very favourable” for the industry, highlighting the potential for renewed growth. “There’s significant dollars allocated to support infrastructure investments, which can be a barrier to new projects,” he stated.

Additionally, the forestry sector, integral to New Brunswick’s economy, stands to benefit from $700 million allocated for operational support amidst ongoing trade tensions. Derek Nighbor, president of the Forest Products Association of Canada, noted that this funding is essential for protecting workers and businesses during this transitional period. The budget also earmarks $500 million for market diversification and mandates that federal contracts prioritize Canadian lumber.

Nighbor pointed out that while New Brunswick has avoided the layoffs seen in other provinces like British Columbia and Quebec, the looming 45 percent tariff on U.S. softwood lumber poses a significant risk. The Natural Resources Minister, John Herron, expressed support for capping softwood tariffs to ease this burden.

While the budget has received praise from industry leaders, it has faced criticism from environmental advocates. Samantha Green, incoming president of the Canadian Associations of Physicians for the Environment, labeled the budget “disappointing,” stating that it fails to prioritize climate action in favor of industry investments. “The government is not putting the well-being of people ahead of these high-level investments in industry,” she remarked.

As New Brunswick’s industries brace for these changes, all eyes will be on how the federal government implements this ambitious budget to ensure sustainable growth for the province’s economy. What happens next could reshape the landscape of New Brunswick’s mining and forestry sectors for years to come.