Energy and Natural Resources Minister Jonathan Wilkinson announced at a Toronto conference that Canada’s federal government will extend the mineral exploration tax credit by two years to encourage investment in junior mining companies. This tax credit, which provides investors with a 15% incentive to invest in flow-through shares of small project holders.
“Canada has long been a mining nation, with the responsible and sustainable management of our mineral resources driving job creation and economic growth for generations. Today’s announcement extending the Mineral Exploration Tax Credit reaffirms Canada’s commitment to strengthening this vital sector. The Mineral Exploration Tax Credit provides support to junior exploration companies as they develop the mines of the future and lay the groundwork to supply the world with the minerals it is looking for.”
The tax, which was scheduled to expire on 31 March 2025, provides important support to junior mineral exploration companies working to unlock Canada’s tremendous mineral wealth, creating jobs, and growing the economy. This extension is expected to provide C$110M to support mineral exploration investment.
“Canada’s abundant minerals and metals are a key driver of our economy, and the Government of Canada is investing to support the talented workers, infrastructure, innovation, and environmental stewardship necessary to sustainably develop our natural resources, creating good-paying jobs that grow the economy.”
Canada has also maintained a tough stance against investments from Chinese state-owned enterprises in domestic mining companies. It has asked at least five companies to divest investments from Chinese state-owned enterprises in Canadian-listed companies, reported Reuters.
“There was some degree of anxiety on the part of the sector, especially the juniors (exploration companies), whether it’s going to be renewed,” Wilkinson said in an interview.
The extension will be announced during the annual Prospectors and Developers Association of Canada (PDAC) conference in Toronto this week.
