Vancouver, BC – April 28, 2026 – The Spring Economic Update includes welcomed measures, but more policy certainty is needed to achieve Canada’s critical minerals potential, according to the Association for Mineral Exploration (AME).
Ambitious Vision on Critical Minerals
“The Spring Economic Update underscores Prime Minister Mark Carney’s commitment to continued federal leadership on the Critical Minerals Strategy.” Said Todd Stone, AME President and CEO.
“Prime Minister Carney understands the importance of seizing the generational opportunity to unlock investments in Canada’s critical minerals industry.”
Canadian Exploration Expenditure (CEE) Eligibility
The economic update maintains changes that were brought forward in Budget 2025 to amend the Income Tax Act to clarify that expenses incurred for the purpose of determining the quality of a mineral resource in Canada do not include expenses related to determining the economic viability or engineering feasibility of the mineral resource.
AME continues to advocate for adopting the test for CEE as set out in the Seabridge Gold Inc. v. British Columbia (2025 BCSC 558) decision in the Income Tax Act of Canada that would include pre-production engineering costs, including preliminary economic assessments, prefeasibility studies, geotechnical work, and environmental baseline programs, as eligible CEE.
Uncertainty with the Mineral Exploration Tax Credit (METC)
The Spring Economic Update leaves uncertainty on the Mineral Exploration Tax Credit (METC), expiring on March 31, 2027.
“Businesses require certainty to make informed decisions.” Said Todd Stone. “We urge the federal government to provide long-term clarity on the METC to match its vision on critical minerals exploration and development.”
Originally introduced in 2025, the METC provides a 15% non-refundable tax credit on eligible flow-through shares, helping attract investment into developing critical minerals.
Ensuring Canada Strong Fund Attracts Investment to Mining
AME welcomes the federal government’s announcement of the Canada Strong Fund, Canada’s first sovereign wealth fund aimed at accelerating investment in major projects, including critical minerals.
“With an initial $25 billion commitment, the Canada Strong Fund signals a strong intent to mobilize capital and support nation-building projects,” said Stone.
“To maximize its impact, the Fund must be structured to reflect the realities of mineral exploration and development.”
AME recommends the following:
- Building diversified exposure across the project pipeline, including for early-stage mineral exploration
Adopt a portfolio approach that includes a mix of early-, mid-, and late-stage assets to manage risk while capturing upside from successful discoveries. Along with major projects this would include investments for early-stage and development exploration projects with defence and critical mineral potential, where access to capital is often the most constrained.
2. Implement a dual-use designation to establish a formal dual-use designation for critical mineral projects.
This designation would recognize qualifying projects as serving both civilian economic and national defence purposes — unlocking the priority treatment, streamlined approvals, and dedicated funding Canada’s mineral sector needs to compete globally and supply our allies.
Structure investments to reflect the long development timelines of mining projects, using equity participation and co-investment models that improve risk-adjusted returns and crowd in institutional and private capital for mineral exploration.
3. Align capital deployment with efficient regulatory pathways
Pair investments with coordinated federal efforts to improve permitting timelines, regulatory certainty, and access to land, ensuring capital can translate into timely project advancement.
With the right design, the Canada Strong Fund can help ensure that Canada discovers the minerals of the future, and develops them in the national interest.
About AME
AME champions mineral exploration as the foundation of Canada’s economic independence. We connect exploration to mineral development, clean technology, and national security. Through member advocacy, we ensure exploration remains central to Canada’s sovereignty and economic future.
Learn more, sign up for updates, and get involved at mineralsfortomorrow.ca.
AME Contact
Stephanie Marshall-White
604-404-1031
[email protected]