Government Supports Jobs and Safe Operations of Junior Mining Exploration
“The government is proposing to increase flexibility for flow-through share issuers such as junior resource companies at the pre-revenue stage, which face unique challenges due to COVID-19. This proposed change would provide important support and flexibility to help these companies through these challenging times.”
- Bill Morneau, Minister of Finance
“Junior mining companies are facing unprecedented challenges today. We have heard their concerns—and that’s why we are taking action to help these companies manage their capital, and build stronger supply chains, including the critical minerals and the products that will power our net-zero future.”
- Seamus O’Regan, Minister of Natural Resources
“This announcement is another example of our government continuing to respond to the needs of individuals and business in the North during this difficult time. Mining is critical to the economies of the territories and we have heard from the mining sector that the measures announced today are essential to sustain the minerals sector during the COVID-19 crisis and position the North for a strong post-COVID-19 economic recovery. Our government will continue to be there to help this vital industry and its workers.”
- Daniel Vandal, Minister of Northern Affairs
Exploration is key to sustaining Canada’s mining industry, which produced minerals worth $48 billion in 2019. Mining provides more than 620,000 high paying jobs to Canadians across the country. The measure announced today would support exploration in all regions of the country.
The mining sector is the largest private sector employer and contributor to gross domestic product in all three territories. It provides over 10,000 direct and indirect jobs, produces over $3 billion in annual business spending, and generates important tax and royalty revenues to public, Indigenous governments, and Inuit organizations across all three territories.
Mining is the largest private sector employer of Indigenous people in the North. In Nunavut, 97.5% of residents who work in the industry in the territory are Indigenous; in the Northwest Territories, 52.5% of residents employed in the sector are Indigenous.
Many junior mining exploration and other flow-through share issuers, are experiencing significant challenges as a result of COVID-19 - for example, restrictions on their operations.
Providing a 12-month extension of the time to incur eligible flow-through share expenses will allow flexibility for these companies to plan for safe operations and meet their renunciation commitments, thereby protecting jobs. This measure will also allow companies to avoid costs from not meeting their original flow-through share timelines.
Media may contact:
Office of the Minister of Finance
Department of Finance Canada
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