THE VOICE OF THE CANADIAN

MINING INDUSTRY SINCE 1935

Significant Boost to Mining Sector Competitiveness in Fall Economic Statement

The Mining Association of Canada (MAC) welcomes the measures included in the 2018 Fall Economic Statement as an important boost to Canadian mining competitiveness.

The 2018 Fall Economic Statement proposes several measures that will enhance the investment competitiveness of Canada’s mining and metal manufacturing sectors, including:

  • The Accelerated Investment Incentive, which will enable miners to write off three times the eligible cost of newly acquired assets in the year the investment is made.
  • Extending the Mineral Exploration Tax Credit (METC) for a five-year term, bringing greater investment certainty for early stage mineral exploration.
  • Allowing businesses to immediately write-off the full cost of clean energy equipment.

“The enhanced treatment of capital expenditures in the first year for mining and metal manufacturing provides an important incentive to invest in Canada at a time when the mining industry is enjoying generally stronger commodity prices and is looking at growth prospects around the world,” said Pierre Gratton, President and CEO for MAC. “The write-off of the full cost of clean energy equipment will serve to incentivize investments in northern Canada where access to grid power does not exist, supporting a transition to low carbon energy alternatives. We are hopeful that this will also include the transition currently underway to move towards the use of electric haul trucks, and other heavy equipment. 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.”

Canada’s tax regime has fallen behind international competitors in recent years. Budgets 2012 and 2013 reduced or eliminated several direct and indirect mining related tax credits. Most recently, the US Tax Cuts and Jobs Act reforms significantly reduced Canada’s mining tax competitiveness vis-à-vis the US.

“Canada’s tax regime is a major determinant of its attractiveness for domestic and international mining investment,” said Gratton. “MAC appreciates the government’s recognition of the need to improve Canada’s investment competitiveness in mining.”

Other measures contained in the Fall Economic Statement that MAC welcomes include:

  • An additional $800 million over five years for the Strategic-Innovation Fund.
  • A commitment to increase overseas exports by 50 percent by 2025.
  • A proposed increase of $13.6 million to the Multimodal Integrated Passenger-Freight Information System.
  • Bolstering the Canadian Trade Commissioners Service, including a tripling of its CanExport program to help Canadian businesses move into new markets. The mining and mining supply sector significantly values the work of Trade Commissioners around the world that support our access to global markets.
  • A suite of proposals to improve regulatory competitiveness, including the establishment of a dedicated External Advisory Committee on Regulatory Competitiveness.
  • Accelerated investment of $773.9 million over the next five years of national, trade-corridors funding.

The mining industry is a major sector of Canada’s economy, contributing $97 billion to national GDP and responsible for 19 percent of Canada’s total domestic exports. Canada’s mining sector employs 634,000 people directly and indirectly across the country. The industry is proportionally the largest private sector employer of Indigenous peoples in Canada and a major customer of Indigenous-owned businesses.

About MAC

The Mining Association of Canada is the national organization for the Canadian mining industry. Its members account for most of Canada’s production of base and precious metals, uranium, diamonds, metallurgical coal, mined oil sands and industrial minerals and are actively engaged in mineral exploration, mining, smelting, refining and semi-fabrication. Please visit www.mining.ca.

-30-

For more information, please contact:

Cynthia Waldmeier
Director of Communications, the Mining Association of Canada
Phone: 613-233-9392 x225 or 613-894-2128 (cell)
Email: cwaldmeier@mining.ca

Related Resources

Report  | 
MAC's annual flagship publication detailing the latest trends in the Canadian mining industry.

Popular Resources

Report  | 
MAC’s annual flagship publication detailing the latest trends in the Canadian mining industry.

Canadian Mining Stories

The sector is a major economic driver in our Canadian economy and a great contributor to jobs and leading technologies and here are our stories. 

Rochelle Young

Suncor’s Rochelle Young is an environmental scientist of Métis heritage working at Syncrude Canada Ltd. and playing a key role in responsibly reclaiming mine tailings into new landscapes.

Syncrude Reclamation / Lynne Barlow

Not long ago, this was once a mine. Today, we’re restoring the land with many other valuable things. In 2008, Syncrude launched an ambitious project: design a peat-forming, groundwater-fed wetland,...

Subscribe to MAC News

Name

*Indicates a required field

You can unsubscribe from these communications at any time. For more information on how to unsubscribe, our privacy practices, and how we are committed to protecting and respecting your privacy, please review our Privacy Policy.

By clicking submit, you consent to allow The Mining Association of Canada to store and process the personal information submitted above to provide you the content requested.