Mining Association of Canada | 2023 Report

The Mining Association of Canada | The Canadian Mining Story: Economic Impacts and Drivers for the Global Energy Transition 2023 25 The financial health of the mineral exploration and mining sector can be measured by exploration and deposit appraisal and by capital spending, both of which are affected by mineral and metal prices. Canada’s ability to capture mineral investment is contingent on mineral prospects and the policy environment, of which tax policy is a key determinant. CANADIAN RESERVES Mineral resources of metals, non-metals and precious stones are present across the country. The process of determining whether it is financially feasible to extract these resources begins with exploration. There are specific names attached to mineral resources, depending on the level of confidence with which they are known. Mineral resources may be inferred, indicated or measured in increasing levels of confidence and measurement. Indicated and measured resources can be converted into probable or proven reserves depending on the confidence that a qualified person has in the estimates, and on the factors that affect the costs of extraction. Mineral reserves decrease through mining activities but can increase through exploration and the development of new technologies. SECTION 3 The Money: Reserves, Prices, Financing, Exploration, Investment and Fiscal Policy