Vancouver, B.C. — March 6, 2017 — The Association for Mineral Exploration (“AME”) expresses its support of the one-year extension of the Mineral Exploration Tax Credit (“METC”) announced by Canada’s Minister of Natural Resources Jim Carr at the Prospectors & Developers Association of Canada (“PDAC”) 2017 convention in Toronto.
“Mineral exploration and development generate tremendous investment and economic activity across our country each year, while creating high-wage jobs and contract opportunities for Canadian workers, businesses and communities,” said Diane Nicolson, Chair of the Board of Directors of AME. “We are extremely pleased that the federal government has acknowledged the importance of these contributions, and done its part to facilitate ongoing investment in Canada’s mineral exploration and development sector by extending the federal METC through March 2018.
“These investments are not only important to our nation’s economy in their own right, they are also vital to the important work of finding new mineral discoveries to replace depleted resources, and maintain Canada as one of the world’s leading minerals producers and employers. Today’s announcement sends an important signal to the international investment community that Canada remains open to responsible mineral exploration and development.”
The federal 15% METC complements the B.C. Mining Flow-Through Share Tax Credit, which results in a combined investment tax credit for an individual resident in B.C. of approximately 32%. More than 80% of respondents to a recent PDAC survey stated that flow-through shares and the associated federal METC for individuals are critical to their survival and a direct incentive to attracting and sustaining further investment. Furthermore, 61% said the dollars raised have led to new discoveries, providing economic stimulus in typically more remote areas of the country that include Aboriginal communities. Finance Canada has estimated that the flow-through share system stimulates $3 in exploration spending for every $1 in foregone tax revenue.
The tax credit extension was announced in advance of the federal budget, which is expected to be delivered later this month. “We thank the federal government for extending the METC and maintaining the flow-through share system,” noted Gavin C. Dirom, President & CEO of AME.