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Feds ante up with extension to mining exploration tax credit

The continuation of the 15 per cent tax credit for another year is expected to boost exploration investment by $65 millionĀ 
Mining exploration drill core samples from display at Prospectors and Developers Association of Canada convention.

The federal government has added another year to the mining exploration tax credit.

The extension is expected to boost mining exploration activity across Canada and provide additional investment and jobs in the exploration community.

Federal Finance Minister Chrystia Freeland has announced that Canada will extend the 15 per cent Mineral Exploration Tax Credit (METC) for investors in flow-through shares for an additional year, until March 31, 2025, said a news release from Ottawa. That specific tax credit was set to expire on March 31 of this year.

The Department of Finance said the tax credit "provides important support to junior mineral exploration companies working to unlock Canada’s tremendous mineral wealth, creating jobs, and growing the economy," said the release. 

"This extension is expected to provide $65 million to support mineral exploration investment."

The mining exploration sector includes prospectors, financiers, drilling companies and mining supply companies that explore remote regions of Canada in the search for new minerals that can be developed into mines.

The news was welcomed by Lisa McDonald, executive director of the Prospectors and Developers Association of Canada.

“PDAC is pleased that the Government of Canada listened to our call and renewed the Mineral Exploration Tax Credit,” said McDonald. 

“The one-year extension falls short of our recommended five-year term but is a positive step in bolstering investment into early-stage mineral exploration in Canada.”

PDAC president Raymond Goldie said the tax credit keeps the mining exploration sector competitive.

"For two decades, the METC has played a pivotal role in the competitiveness of Canada's mineral exploration sector and attracted billions in domestic investments," said Goldie. 

"We thank Minister Freeland for this extension and Minister Wilkinson for supporting the renewal of this vital program."

Minister Freeland said the tax credit will pay off in the next generation of new mines and good paying jobs. 

“Canada has an abundance of the minerals needed to build our net-zero economy. Supporting exploration efforts to find mineral deposits is a key part of creating the next generation of good-paying mining jobs across the country, including in northern and remote communities. Our economic plan is investing in good opportunities for workers and the supports businesses need to grow, to build an economy that works for everyone.”