Deficit-plagued governments can thank
the Canadian mining industry for taking some of the sting out of
their mounting fiscal problems, said the Mining Association of Canada
The industry group's annual report
shows that mining contributed $9 billion last year in total payments
to federal and provincial governments.
In a Sept. 10 statement, MAC president
Pierre Gratton said the figure demonstrates the industry's overall
strength in 2011.
“Despite fiscal policy changes,
notably the reduction in the federal corporate tax rate in 2011,
payment levels were buoyed by generally higher metal prices and
Natural Resources Canada reported the
mineral industry saw a 21 per cent increase in value with a record
$50 billion coming from a combination of higher prices and expanding
production last year.
Royalty and mining tax payments to
governments increased by $700 million, with Ontario, Alberta,
Saskatchewan and Newfoundland-Labrador benefitting the most.
Ontario's annual revenues more than
doubled from $72 million in 2010 to $180 million last year because of
higher gold and copper prices.
Gratton said the study demonstrates the
“significant economic contributions” that the industry delivers
to Canada and the provinces.
“Canadians from coast to coast
benefit from a strong, competitive mining industry that supports
critical government services such as health care, education and
skills training, as well as hundreds of thousands of well-paying
To view the report go online at