Federal Budget 2021

PDAC provided recommendations for Federal Budget 2021 that will enhance Canada’s mineral industry competitiveness. As an industry that employs over 634,000 Canadians in rural, remote, northern and Indigenous communities and contributes 5% to Canada's GDP, government action is critical to help the mineral sector continue to be a key driver of Canada’s economy.

PDAC Recommendations for Budget 2021

PDAC recommendations

Recommendation 1

That the government increase the Mineral Exploration Tax Credit (METC) from 15% to 30% in each province, and to 40% in each territory, until 2024, in conjunction with the 5-year METC renewal in 2019, with a mechanism to extend it further. 

Recommendation 2

That the government consider adding a “Force Majeure” clause into legislation that would provide a regulatory mechanism to suspend or defer the timelines associated with flow-through shares (FTS) in the case that an event such as the current COVID-19 pandemic reoccurs.

Recommendation 3

That the government equitably distribute the $98 million committed to the Targeted Geoscience Initiative (TGI) and Geo-mapping for Energy and Minerals (GEM) program and over the next 5 years. 

Recommendation 4

That in recognition of the recently announced investment towards geoscience initiatives, the government commit additional funding to identify, geologically map and model critical mineral prospective regions in Canada.

Recommendation 5

That the government create a federal funding mechanism to help provincial and territorial governments undertake comprehensive mineral resource assessments, based on geoscientific studies, in order to understand and incorporate the value of mineral potential into land management decisions

Recommendation 6

That the government establish an interdepartmental governmentindustry taskforce to investigate policy options and make recommendations to accelerate exploration and development of mineral resources critical for Canada’s transition to a low-carbon economy. 

Recommendation 7

That the government establish a broader mandate for the Economic and Finance Subcommittee Inter-Governmental Working Group (IGWG) to identify priority areas for regulatory modernization of the FTS regime, and commit to such a modernization initiative. 

Recommendation 8

That the government commit to significant investments in housing, water, and access to high-speed internet, and others that contribute to improved health and educational outcomes and enhances engagement between government, the mineral industry and indigenous communities under pandemic and post-pandemic conditions.