Government Proposes Tax Credit Extension to Support Mining and Create Middle Class Jobs
News Release
March 5, 2017 – Ottawa, Ontario – Department of Finance Canada
The Government of Canada understands the role that high-growth mining and natural resources companies play in supporting middle class families and communities and building our clean economy.
To make sure Canada remains one of the world's top destinations for exploration and mining, Minister of Natural Resources Jim Carr today announced, on behalf of Minister of Finance Bill Morneau, that the Government proposes to extend the 15-per-cent Mineral Exploration Tax Credit for investors in flow-through shares for an additional year, until March 31, 2018. The credit was scheduled to expire on March 31, 2017.
The credit helps junior mineral exploration companies raise capital by providing individual investors with an incentive to finance early stage "grassroots" mineral exploration using flow-through shares. Over 200 junior companies were able to raise equity in 2015 with help from the credit, by issuing eligible flow-through shares to more than 10,400 individual investors.
The credit will help junior exploration companies raise the capital they need to succeed and provide good, well-paying middle class jobs for Canadians.
Quotes
"As we look to create good, well-paying middle class jobs and grow our economy, we need to support the people, companies and industries that have the greatest potential for growth. Canada's exploration and mining sector is already one of the most successful in the world, and we are proud to support those who work hard to create new opportunities for our country, while investing in our communities."
- Bill Morneau, Minister of Finance
"By extending the Mineral Exploration Tax Credit, our Government is supporting an industry that is increasingly recognized for its innovation and sustainability on the ground here in Canada. Mining in Canada is an essential economic driver and source of good middle class jobs, including in remote communities across Canada."
- Jim Carr, Minister of Natural Resources
Quick Facts
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In December 2016, Canada was recognized at Mines and Money London, Europe's biggest mining finance conference, as the recipient of the Best Country Award. This award is in recognition of Canada's international leadership in governance and for showing the most improvement in terms of attractiveness to mineral investors.
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In Budget 2016, the Government committed to invest more than $1 billion over four years to support clean technology, including in the mining, forestry, fisheries, energy and agriculture sectors.
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The Government of Canada continues to produce public geoscience data and knowledge that allow the private sector to better target their exploration activities.
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Contacts
Media may contact:
Annie Donolo
Press Secretary
Office of the Minister of Finance
annie.donolo@canada.ca
613-769-7187
Media Relations
Department of Finance Canada
fin.media-media.fin@canada.ca
613-369-4000
General enquiries
Phone: 613-369-3710
Facsimile: 613-369-4065
TTY: 613-369-3230
E-mail: fin.financepublic-financepublique.fin@canada.ca
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