TORONTO, March 2, 2015 /CNW/ - Parliamentary Secretary Kelly Block, on behalf of the Honourable Greg Rickford, Canada's Minister of Natural Resources and Minister for the Federal Economic Development Initiative for Northern Ontario, today delivered keynote remarks at the opening ceremonies of the Prospectors and Developers Association of Canada's (PDAC) International Convention, Trade Show & Investors Exchange – one of the world's leading mineral exploration conference and trade shows.
Canada's mining sector continues to innovate and contribute to our economy. The mining and mineral processing industry generates about $60 billion for Canada's GDP, employs some 380,000 Canadians, including 10,000 Aboriginal Peoples, and accounts for one-fifth of Canada's merchandise exports.
Over the past day, the Harper Government has announced support for the long-term success of Canadian jobs in the mining sector, including the Ring of Fire region. Three of those important announcements include:
- Proposing to extend the 15% Mineral Exploration Tax Credit for another year. During a challenging global economy, this incentive helps keep investment in the mining industry flowing. Since 2006, it has assisted junior mining companies in raising over $5.5 billion. With the credit scheduled to expire at the end of March 2015, it is still required to help the mining industry thrive and grow;
- Proposing to expand the definition of Canadian Exploration Expenses for tax purposes to include the costs associated with environmental studies and community consultations that are required to obtain a permit for grassroots exploration. This means companies can deduct these costs immediately, making it easier for them to raise capital, create jobs and contribute to the economy; and,
- Significant joint investment with the Province of Ontario in First Nations' efforts to enhance economic development and access to the 'Ring of Fire' region. This announcement represents our federal government's latest meaningful contribution to helping the province enhance the economic potential of the Ring of Fire.
The Government of Canada is supporting the mining sector by keeping taxes low, eliminating red tape, and modernizing the regulatory regime for major projects. The Government is also investing in public geoscience programs such as the Geo-Mapping for Energy and Minerals (GEM) and the Targeted Geoscience Initiative (TGI) which are securing the long-term prosperity of mining and ensuring informed land-use and resource management decisions.
In addition, the Government of Canada has passed the Extractive Sector Transparency Measures Act, marking Canada's contribution to global efforts aimed at enhancing the transparency of the extractive sector and helping to brand Canada as a responsible resource developer.
- Canada is one of the largest mining nations in the world, producing more than 60 minerals and metals.
- Between 2008 and 2012, the mining and select manufacturing sectors (mining and quarrying, primary metal manufacturing and non-metallic mineral product manufacturing) have contributed annually, on average, $3.84 billion in corporate taxes and royalties.
- This industry contributes about $60 billion to our GDP. That's a more than $10 billion increase over 2009.
- In Economic Action Plan 2013, the Government of Canada committed $100 million over seven years to renew the Geo-Mapping for Energy and Minerals program to significantly advance and modernize geological knowledge in the North.
- The Targeted Geoscience Initiative is a $25-million, five-year (2010–2015) collaborative federal geoscience program that provides industry with the next generation of geoscience knowledge and innovative techniques to better detect buried mineral deposits, thereby reducing some of the risks of mineral exploration.
- The Corporate Social Responsibility Strategy for the Extractive Sector Abroad aims to improve the competitive advantage of Canadian companies by helping them better manage social and environmental risks.
"Our government's low-tax approach supports Canada's competitiveness and protects Canadian jobs. We are helping position our mining industry with tangible measures that allow business to contribute to the Canadian economy."
Parliamentary Secretary to the Minister of Natural Resources
Backgrounder: Canadian Exploration Expense Treatment of Environmental Studies and Community Consultations
Backgrounder: Mineral Exploration Tax Credit for Flow-Through Share Investors
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SOURCE Natural Resources Canada
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