PDAC Research Paper Advocates For Long Term METC Extension

Mining is a strategic industry for Canada, and exploration, as its research and development phase, is its driving force. A number of financial challenges currently facing the industry are impacting the ability of the junior companies that conduct exploration to raise the capital their projects require. The PDAC has recommended to the federal government that the 15% Mineral Exploration Tax Credit should be renewed. We also believe the mining industry would benefit from longer-term stability, which can be achieved at this time by lengthening the METC approval period from its current one-year time frame to three years. METC has become the life-blood of the exploration industry. It has been in place for twelve years, and has become an integral part of the “Super” Flow-Through system for grassroots exploration which supports the junior mining industry. Read more in this in depth research paper.

February 8, 2013

PDAC Survey on Tax Treatment of Expenditures for Community Consultation, Environmental Studies and Feasibility Studies.

The Prospectors and Developers Association of Canada (PDAC) requests your help in completing this survey to ensure that funding from Flow-Through Shares and other tax incentives for mineral exploration in Canada continue to provide optimum benefits to the exploration industry. The results of this survey will be used by the PDAC, in its discussions with federal and provincial government officials, to clarify the tax treatment of such costs and ensure consistency of such categorization across Canada. To participate in this survey click the following link.

PDAC presents to federal Standing Committee

On February 5, 2013, the PDAC’s Senior Program Director, Nadim Kara, presented on Bill C-47, the Northern Jobs and Growth Act, in front of the federal Standing Committee on Aboriginal Affairs and Northern Development. During the presentation, jointly created with the NWT & Nunavut Chamber of Mines, the PDAC articulated its support for the NWT Surface Rights Board Act and proposed six amendments to the Nunavut Planning and Project Assessment Act. Download a copy of the Powerpoint here or read the transcripts of the presentation here.

2011 PDAC pre-budget submission to the Standing Committee on Finance

In August 2011, the PDAC offered its recommendations to the Standing Committee on Finance during its deliberations on the 2012 Federal Budget. Please click here to see the complete submission.

The PDAC recommends that the following measures be adopted to sustain the mineral industry in Canada and create jobs:

1. Make the current Mineral Exploration Tax Credit (METC) - which has been renewed, often on an annual basis since 2000 - permanent, thereby providing greater certainty to the exploration industry and investors.
2. Increase the knowledge of our natural resources as a key driver to exploration success through continued investment in the Geomapping for Energy and Minerals (GEM) initiative, and the Targeted Geoscience Initiative (TGI).
3. Encourage good corporate social responsibility and environmental practices by undertaking a review, in consultation with industry, of the tax rules governing the extent to which community consultation and environmental compliance costs are eligible for the Canadian Exploration Expense (CEE) deduction.

2011 mineral industry recommendations to Canada’s Energy and Mines Ministers

Kananaskis, Alberta, July 2011

The PDAC, the Mining Association of Canada (MAC) and members of the Canadian Mineral Industry Federation (CMIF) were invited to provide federal, provincial and territorial mines ministers with views and recommendations regarding policy issues of importance to our industry. The CMIF members represent the majority of companies engaged in mineral exploration, mining, and processing – accounting for most of Canada’s production of base and precious metals, uranium, diamonds, metallurgical and thermal coal, potash and mined oil sands. [Summary]

PDAC Position Statement – Land Use Planning and Land Access

In spring 2010, the PDAC Lands and Regulations and Aboriginal Affairs committees participated in a workshop to develop a position statement on land access and land use planning.

Finalized in January 2011, the statement offers the PDAC’s views on Guiding Principles and Practices for Public Policy and Legislation that its members believe should guide the development of public policy and legislation regulating land use planning for Crown lands and governing access to those lands for mineral exploration and mine development purposes.

For a copy of the PDAC’s position on Land Use Planning and Land Access please follow the link:
English    French

The Mineral Industry and the 2011 Federal Election

Important note on the Mineral Exploration Tax Credit:

On March 31, 2011, the Mineral Exploration Tax Credit (METC) expires. 

Implications for investors and issuers: Flow-through share agreements signed after 31 March 2011 will not be legally entitled to renounce Canadian Exploration Expenses (CEE) that are eligible for the 15% federal METC. However, existing agreements are still entitled to renounce CEE eligible for the 15% METC provided that related expenses qualify as FTME (Flow-Through Mining Expenses) and are incurred:
(a) before December 31, 2011 if renounced in 2010 or before April 1, 2011 under the look-back rule; or 
(b) before December 31, 2012 if renounced after March 31 2011.

For further information, please see the Natural Resources Canada METC page.

Party platforms and the mineral industry

Conservative Party of Canada: click here

• p. 60, commits to extend the Mineral Exploration Tax Credit to help sustain and create jobs in the Canadian mining industry

Liberal Party of Canada: click here

• p. 15, commits to an “Innovation and Productivity  Tax Credit” for small, early-stage start-ups

New Democratic Party of Canada platform: click here

• p. 9, commits to “extend eligibility for the mineral exploration tax [credit] for an additional three years beyond March 31, 2012. This will apply to flow-through share agreements entered into on or before March 31, 2015”

Bloc Quebecois platform: click here

Mineral industry submissions

• PDAC pre-budget submission to the Standing Committee on Finance (August 2010) 
  Click here
• Canadian Mineral Industry Federation submission to the Mines Ministers (August 2010)  English    French
• The Government of Canada’s intention to extend the Mineral Exploration Tax Credit, announced in today’s budget, is welcomed by the PDAC. News release (March 22, 2011)

If you have any questions, please contact:

Philip Bousquet, Senior Program Director - pbousquet@pdac.ca or 416-362-1969 Ext. 230
Lesley Williams, Program Assistant - lwilliams@pdac.ca or 416-362-1969 Ext. 294

Over the years the advocacy role of the Prospectors and Developers Association of Canada has grown substantially. The association has been called upon to represent the industry on a wide range of issues of importance to its members and the mineral exploration sector, including access to land, mining and securities regulations, Aboriginal affairs, corporate social responsibility, finance and taxation, geosciences, environmental issues, and health and safety.

In July 2007, the PDAC board of directors approved a new five-year strategic plan containing four priority areas. These include land access and Aboriginal issues, particularly the settling of land claims and building industry-community relationships. That concern was reflected in the signing in March 2008 of a Memorandum of Understanding between the PDAC and the Assembly of First Nations.

A second priority is to meet the human resources challenge facing the industry, and particularly to attract students to exploration careers.  An important initiative coming out of this is the annual two-week Student-Industry Mineral Exploration Workshop, which was launched in 2007.

The strategic plan also identifies the PDAC’s international role as a priority, especially meeting the needs of international delegates to the convention and offering services to international members.

The final priority is to expand the PDAC’s work in corporate social responsibility. At its 2009, the association launched e3 Plus: A Framework for Responsible Exploration to help exploration companies continuously improve their social and environmental performance

March 2009