Policy

Budget 2016

Canada’s rich natural resource endowment remains a pillar of the country’s economic engine and maintaining the vibrancy of the mineral exploration and development industry will help ensure economic growth, jobs and fiscal sustainability for Canada. The Prospectors & Developers Association of Canada recommends the Government of Canada take the following actions in Budget 2016 to ensure the viability of Canada’s unique mineral sector. 

Increasing the Mineral Exploration Tax Credit (METC) to 30% for a period of 3 years

In light of the worsening fiscal conditions for the junior exploration sector, PDAC recommends the federal government increase the METC to 30% for a period of three years. This action will catalyze investor interest in this innovative, entrepreneurial industry and increase the flow of risk-tolerant capital to companies exploring in Canada. Flow-through shares accounted for more than two-thirds of all exploration-focused financing on Canadian exchanges from 2007-2014. The METC provides an important incentive for investors to allocate venture capital to support grassroots mineral exploration in Canada. Read more >>>

Modernize and update the 2007 Guidelines on Canadian Exploration Expenses (CEE)

Over the last eight years, the minerals industry has identified the need to update the 2007 Guidelines to address interpretation challenges and bring them into alignment with the contemporary operating realities of companies exploring in Canada. Financing generated from the issuance of flow-through shares must be allocated to specific types of exploration activities (i.e. the funds cannot be used to pay for overhead costs such as rent or salaries). These specific types of exploration activities are commonly referred to as “grassroots Canadian Exploration Expenses”, which must be for the purpose of determining the existence, location, extent, or quality of a mineral resource, or petroleum or natural gas, in Canada. Read more >>>

Support Mineral Exploration in Remote and Northern Canada

Remote and northern Canada is rich in mineral resources and the minerals industry is a proven private sector driver of economic activity in these areas. The industry accounts directly for 20-25% of territorial GDP and has paid roughly $800 million in taxes and royalties to governments over the last 10 years. The mining industry is also the largest private sector employer of Aboriginal peoples in Canada and it has been estimated that the industry could need as many as 8,500 workers over the next decade in the three northern territories. These economic and social contributions are even more significant when the remote areas of provinces are included. Read more >>>