In keynote remarks at the opening ceremonies of the 2015 Prospectors and Developers Association of Canada (PDAC) convention on March 2, Parliamentary Secretary to the Minister of Natural Resources Kelly Block made special note of the Canadian federal government’s support for the long-term success of the Canadian mining industry. Three government announcements were issued in conjunction with the meeting, Block said:
1) A proposal to extend the 15% Mineral Exploration Tax Credit for another year. “During a challenging global economy, this incentive helps keep investment in the mining industry flowing. Since 2006, it has assisted junior mining companies in raising more than $5.5 billion. With the credit scheduled to expire at the end of March, it is still required to help the mining industry thrive and grow.”
2) A proposal to expand the definition of Canadian Exploration Expenses for tax purposes to include the costs associated with environmental studies and community consultations that are required to obtain a permit for grassroots exploration. This means companies can deduct these costs immediately, making it easier for them to raise capital.
3) Significant joint investment with the province of Ontario in First Nations’ efforts to enhance economic development and access to the Ring of Fire region in northern Ontario.
“The government of Canada is supporting the mining sector by keeping taxes low, eliminating red tape and modernizing the regulatory regime for major projects. The government is also investing in public geoscience programs such as the Geo-Mapping for Energy and Minerals (GEM) and the Targeted Geoscience Initiative (TGI), which are securing the long-term prosperity of mining and ensuring informed land-use and resource-management decisions,” Block said.
“In addition, the government of Canada has passed the Extractive Sector Transparency Measures Act, marking Canada’s contribution to global efforts aimed at enhancing the transparency of the extractive sector and helping to brand Canada as a responsible resource developer.”
PDAC Executive Director Andrew Cheatle said, “The provincial and federal governments in Canada are important partners in creating conditions that allow the mineral industry to flourish nationally and internationally. We look forward to further building upon the constructive activities that occurred at PDAC 2015.”
The 2015 PDAC convention from March 1 through March 4 drew 23,578 attendees from more than 100 countries.