Ottawa's five-year renewal of the Mineral Exploration Tax Credit (METC) received a thumbs-up from the Mining Association of Canada (MAC).
As announced in the government's Fall Economic Statement, METC is a 15 per cent non-renewable tax credit used by junior mining companies to raise exploration funds through flow-through shares.
Because of its effectiveness, industry people have lobbied for a multi-year commitment by the government since exploration programs tend to stretch out for years. Many exploration programs have been funded through the program since its inception in 2000, including some of today's operating mines.
"Extending the METC for five years, a request of the exploration sector for many years, is a major boost for mineral explorers and will help Canada recapture the top global position for mineral exploration investment," said MAC president Pierre Gratton in a Nov. 21 news release.
The Prospectors and Developers Association of Canada (PDAC) said the tax credit has been essential to attracting exploration investment for the past 18 years. The commitment to extend it to 2024 brings greater stability to the junior mining sector.
"The METC is a critical component of our industry that helps to catalyze investment in mineral exploration projects that lead to the discoveries that could become the mines of the future," said PDAC president...