Natural Resources Minister Jonathan Wilkinson says that while other countries isolate themselves from foreign investment, Canada is “open for business.”
Speaking Monday at the Prospectors and Developers Association of Canada convention in Toronto, Wilkinson announced several new measures meant to drive “rapid development” of Canada’s critical minerals sector.
He said the federal government is extending the 15 percent mineral exploration tax credit by two years, a measure it expects will free up $110 million to help develop mining sites, primarily in the North.
“In the exploration stage of the mining space there is a need to incent risk capital – and there is presently not enough capital flowing into this space,” Wilkinson told convention delegates.
“Federal instruments have been important tools in creating the incentives that are necessary for this critical part of the value chain to advance, and the mining exploration tax credit has been critical in this regard.”
The tax break, which was set to expire at the end of March, is for investors in flow-through shares—a mechanism that allows smaller mining companies to transfer expenses to the investor.
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“It’s great. We were hoping to see that,” said Pierre Gratton, president of the Mining Association of Canada.
“It’s certainly nice to see this out there and announced.”
Critical minerals are materials vital to a country’s economic or national security. They have become a leading political issue in recent weeks, thanks to U.S. President Donald Trump’s repeated calls for Canada to be absorbed by the United States.
Prime Minister Justin Trudeau was caught on a hot mic last month saying Trump’s threat was “a real thing” tied to his administration’s desire to access Canada’s critical minerals.
Canada is a key supplier of 13 of the 35 minerals on the United States’ critical list.
Wilkinson also announced the federal government is releasing another $500 million from its $1.5 billion critical minerals infrastructure fund to help pay for energy and transportation projects associated with Canada’s critical mineral supply.
“Better infrastructure is key to Canada’s critical minerals supply chain,” said Transportation Minister Anita Anand in a news release.
