Vancouver, B.C., Canada – The Association for Mineral Exploration (AME) welcomes the federal Budget 2024, which introduces several measures that positively impact the mineral exploration and development industry.
The extension of the mineral exploration tax credit (METC) until March 31, 2025 encourages continued investment in the industry by providing incentives that enable the continued growth of the mining sector. We see the adjustments in the alternative minimum tax to accommodate 80 per cent of charitable donations as a strategic move that offsets some of the capital gains associated with the mining and exploration tax credit (METC) and the critical minerals exploration tax credit.
However, we urge the government to ensure that the increased Capital Gains Inclusion Rate for corporations and trusts does not adversely affect the competitiveness of Canadian companies, and disincentivize mineral exploration financing.
We are pleased to see extensions of the Clean Technology Manufacturing Investment Tax Credit as an impetus for new mining investments. As well we are encouraged by the setting of targets to five years or less for Impact Assessment and permitting processes, in an effort to streamline projects and building investor confidence in the industry.
AME commends the provision of up to $5 billion in loan guarantees for Indigenous Nations as a transformative step towards empowering Indigenous participation in major projects. This initiative furthers economic reconciliation and fosters meaningful partnerships by ensuring that Indigenous peoples have access to equity in the natural resources sector and further benefit from projects the mineral exploration and development industry advances.
Overall, the efforts made in Budget 2024 to improve certainty in the regulatory process and encourage mineral exploration and development investment have the potential to benefit our industry across Canada, but missed opportunities and the inclusion of financial measures which could have consequences that damage one of Canada’s major industries have us concerned.
Association for Mineral Exploration’s (AME) President and CEO, Keerit Jutla, noted:
“We look forward to working with the government to ensure that the measures outlined in Budget 2024 are executed effectively and we will work to continue growing Canada’s position as a leader in the global mining industry and critical minerals value chain – from grassroots exploration through the development of major projects.”
About AME
AME is the lead association for the mineral exploration and development industry based in British Columbia. Established in 1912, AME represents, advocates and promotes the interests of more than 5,000 members who are engaged in mineral exploration and development in B.C. and globally. AME encourages a safe, economically strong and environmentally responsible industry by providing clear initiatives, policies, events and tools to support its membership in delivering responsible projects that advance reconciliation and provide benefit to all British Columbians.
AME Contact:
Keerit Jutla
President & CEO, Association for Mineral Exploration
778.772.4410
[email protected]