Federal Budget 2018: PDAC welcomes METC renewal, calls for greater action to enhance Canada’s mineral industry competitiveness

OTTAWA, Feb. 27, 2018 (GLOBE NEWSWIRE) -- In today’s budget the Federal Government committed to renewing the Mineral Exploration Tax Credit (METC) until 2019. The METC, established in 2000, is a critical tool that supports the flow of capital required to help finance mineral exploration projects in Canada.

A robust mineral exploration sector is vital to the success of Canada’s mineral industry—which supplies the materials needed for everyday life—and is a key contributor to the Canadian economy, generating significant economic opportunities, particularly in northern and Indigenous communities.

“We appreciate the government’s renewal of the METC in Federal Budget 2018. It has been annually renewed by successive governments because it is an effective, proven fiscal incentive that has stimulated investment in mineral exploration, especially in early-stage grassroots exploration,” says PDAC President Glenn Mullan. “Without the METC there will be less exploration, less mineral discoveries, and less economic benefits for Canadians generated by the industry.”

PDAC had advocated for a three-year extension of the METC to provide greater certainty for investors to boost confidence in Canadian projects, and to provide longer-term stability to junior companies to enable them to plan the financing of multi-year exploration programs. The recommendation for a three-year renewal of the METC was also made by the House Standing Committee on Finance (FINA) in its report to the Minister of Finance. PDAC will continue to advocate on behalf of the industry for a multi-year METC.

Budget 2018 also included investments in areas such as Indigenous skills training and employment, as well as advancements for women entrepreneurs.

PDAC encourages government to implement measures to help improve Canada’s investment climate and enhance Canada’s mineral industry competitiveness, which has been waning in recent years.

“While Canada is regarded as a leader in the mineral industry in many respects, on an international scale it has become increasingly less competitive. In particular, industry is recovering from the economic downturn at a slower rate than other countries,” adds Mullan. “Renewing the METC for one year helps our members in the short term. Yet greater measures are required—by both government and industry—if Canada’s mineral exploration and development sector is to remain globally competitive.”

Improving Canada’s investment climate and enhancing our mineral industry’s competitiveness on the global scale is critical. From remote and Indigenous communities, to large cities across Canada, the mineral industry generates significant economic and social benefits for Canadians. Canada’s mineral exploration and mining industry contributed around $87 billion in gross domestic product (GDP) in 2016 alone, employs nearly 600,000 workers (directly and indirectly), represents around 19% ($92 billion) of domestic exports, and is the largest private-sector employer of Indigenous peoples in the country.

About PDAC

The Prospectors & Developers Association of Canada (PDAC) is the leading voice of the mineral exploration and development community. With over 7,500 members around the world in all sectors of the mining industry, the PDAC’s mission is to promote a globally-responsible, vibrant and sustainable minerals industry. As the trusted representative of the sector, PDAC encourages best practices in technical, operational, environmental, safety and social performance. PDAC is known worldwide for its annual PDAC Convention, regarded as the premier international event for the mineral industry. The PDAC Convention has attracted over 25,000 people from 130 countries in recent years and will next be held March 4-7, 2018 in Toronto. Please visit www.pdac.ca.

Media contact

Kristy Kenny
416-362-1969 ext. 233