Alberta Implements Royalty Rate on Helium to Address Increasing Global Demand

As technology around the world continues to advance, the demand for helium has been steadily increasing. That is because the noble gas is a necessary ingredient for a variety of uses, including healthcare, high speed internet, and cleaning rocket fuel tanks. Helium gas is also found in computer, mobile phone and tablet chips, as well as airbags, microscopes, and computer hard drives.

With such an increasing demand for helium, Canada is in a favorable position. Currently, Canada is the 5th in the world for possessing some of the largest helium reserves. However, the province of Saskatchewan is the only place that helium is extracted for commercial use. Conversely, Alberta also houses significant helium reserves – especially in the southeastern part of the province, but the lack of a royalty rate has deterred several companies from extracting the gas.

Source: Saskatchewan Geological Survey

But, that is all about to change now. Previously, Alberta did not have a royalty rate in place, which in turn created a de-incentivized potential market for the extraction of helium. Nonetheless, with the demand for helium continuously increasing, the province’s government has decided to impose a royalty rate of 4.25%, which will further increase investment interest in the helium extraction industry.

Information for this briefing was found via Calgary Sun and the Government of Alberta. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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