PDAC calls for Canadian government to provide further mining support
Leading Canadian mining industry body Prospectors & Developers Association of Canada (PDAC) has written to the nation’s government with a number of suggestions which it believes can help improve the local industry’s global standing.
While PDAC, which represents some 7000 members and host to the world’s largest mining event, was encouraged by the moves the government announced earlier in its 2023 budget, it says there is still much to be done.
As part of Finance Canada’s 2024 budget consultations, the association has submitted a list of recommendations that it believes can help bolster the competitiveness of Canada’s mineral exploration and development industry.
Fiscal system needs rejigging
Many of the recommendations focus on the current fiscal system.
This includes calls for the government to renew the mineral exploration tax credit system for a minimum of 5 years beyond the current expiry date of March 2024, while at the same time extending eligibility for the critical mineral exploration tax credit by 2 years from 2027.
PDAC said this would align the eligibility periods for the two incentives.
The mining industry support body also called for the government to develop a mechanism which would allow for the suspension or deferment of expenditure timelines associated with flow-through shares if explorers are impacted by acute situations.
It believes that issues such as the recent wildfire threat, which kept many Canadian miners off their ground, may lead to unintended tax consequences for companies and individuals.
Elsewhere, on the fiscal front, PDAC has recommended that the government adjust its capital gains tax treatment for flow-through shares to reflect the issue price of the security versus the current nil cost base approach. It believes this would lead to expanded participation in the funding mechanism and a broader base of investors within Canada.
Critical minerals funding
PDAC has called for the government to get moving with allocating the $1.7 billion in funding contained in the 2022 budget. That funding was aimed at improving critical mineral supply chain infrastructure.
It says the government also needs to expedite its support of the Canadian Infrastructure Bank and Canadian Broadband Fund to fast track the development of energy, transportation, and telecommunications infrastructure in the north, particularly in the territories and First Nations communities.
The Association also called on the government to lift the level of funding provided to the Geological Survey of Canada and to co-fund provincial and territorial geoscience organisations.
It said the additional funding is required to collaboratively develop comprehensive, regional-level mineral and energy potential models for application in evidence-based land management and conservation planning, and to create a mechanism through which these models can become more widely available to the public.
The 2024 PDAC event will be held in Toronto Canada from 3-6 March.
Further information can be found here.