Government extending support for mineral exploration in Canada
News release
March 28, 2024 - Ottawa, Ontario - Department of Finance Canada
Today, the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, announced that the federal government will extend the 15-per-cent Mineral Exploration Tax Credit for investors in flow-through shares for an additional year, until March 31, 2025.
The Mineral Exploration Tax Credit, which was scheduled to expire on March 31, 2024, provides important support to junior mineral exploration companies working to unlock Canada’s tremendous mineral wealth, creating jobs, and growing the economy. This extension is expected to provide $65 million to support mineral exploration investment.
Canada’s abundant minerals and metals are a key driver of our economy. Canada has the talented workers, infrastructure, innovation, and environmental stewardship necessary to sustainably develop our natural resources, creating good-paying jobs that grow the economy. By investing in the exploration and mining sector, the government’s economic plan is enabling sustainable natural resource development, creating good jobs, growing the economy, and advancing Indigenous economic participation.
From building more homes, faster, stabilizing prices and helping Canadians keep more of their money, to ensuring Canada’s businesses have the support they need to grow, the government’s economic plan is focused on creating more jobs and building an economy that works for everyone.
Quotes
“Canada has an abundance of the minerals needed to build our net-zero economy. Supporting exploration efforts to find mineral deposits is a key part of creating the next generation of good-paying mining jobs across the country, including in northern and remote communities. Our economic plan is investing in good opportunities for workers and the supports businesses need to grow, to build an economy that works for everyone.”
- The Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance
“Canada is a mining nation, and the responsible and sustainable management of our mineral resources has provided good jobs and wealth creation for generations of Canadians. Today’s announcement shows Canada’s commitment to continue to support this key sector while building out mineral value chains, especially for critical minerals. Critical minerals are not just the building blocks of clean technology like solar panels and electric vehicle batteries—they are a key ingredient for creating significant and sustainable economic opportunities for Canadian workers and Canadian businesses.”
- The Honourable Jonathan Wilkinson, Minister of Energy and Natural Resources
Quick facts
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The 15-per-cent Mineral Exploration Tax Credit helps mineral exploration companies—especially junior mineral exploration companies—raise capital by providing individual investors with an additional incentive to finance early stage “grassroots” mineral exploration using flow-through shares.
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In 2021, the Mineral Exploration Tax Credit supported over 300 companies to raise equity by issuing eligible flow-through shares to more than 12,400 investors.
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As part of Canada’s Critical Minerals Strategy, in 2022, the federal government introduced the 30-per-cent Critical Mineral Exploration Tax Credit, which supports certain critical mineral exploration expenses incurred in Canada and renounced to flow-through share investors.
- The Critical Mineral Exploration Tax Credit applies to exploration expenditures targeted at minerals used in the production of batteries and permanent magnets (both of which are used in zero-emission vehicles or are necessary in the production and processing of advanced materials), clean technology, or semi-conductors.
- The 30-per-cent Critical Mineral Exploration Tax Credit cannot be claimed in addition to the 15-per-cent Mineral Exploration Tax Credit.
Contacts
Media may contact:
Katherine Cuplinskas
Press Secretary and Senior Communications Advisor
Office of the Deputy Prime Minister and Minister of Finance
Katherine.Cuplinskas@fin.gc.ca
Media Relations
Department of Finance Canada
mediare@fin.gc.ca
613-369-4000
General enquiries
Phone: 1-833-712-2292
TTY: 613-369-3230
E-mail: financepublic-financepublique@fin.gc.ca
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