Today in North Bay, Ontario, Prime Minister Stephen Harper announced his party’s commitment to two important measures that will support Canada’s mineral exploration and development sector. If re-elected, Prime Minister Harper promised to renew the Mineral Exploration Tax Credit (METC) for a period of three years, in addition to creating an enhanced 25 per cent METC for projects in Canada’s northern and remote regions.
The METC plays a key role in attracting investment to mineral exploration and is a vital part of the policy infrastructure that has made Canada the best place in the world to raise money for exploration. PDAC has long advocated for the extension of the METC beyond the historical one-year commitment, as well as measures that will address the high costs of exploration in northern and remote parts of the country. As we enter into a national election, it’s a good time to focus on important policies that will help Canada succeed in the 21st century. We encourage all political parties to commit to enhancing the METC in an effort to ensure that Canada remains a global leader in mineral exploration and development.
The METC is a measure designed to assist mining companies in financing early-stage exploration in Canada using flow-through shares, a made-in-Canada fiscal policy innovation. Flow-through financing has accounted for 70 per cent of all the funds raised in Canada for exploration in recent years, highlighting their importance in attracting capital to the sector.