PDAC Welcome Measures In Proposed Canadian Budget
Two Canadian mining organizations are welcoming a number of planned investments included in the country’s proposed budget that was announced Wednesday.
The budget was the second from Finance Minister Bill Morneau under Canada’s Liberal government. News reports described the spending plan as a stay-the-course budget with few surprises, as Canadian officials wait to see the impact of U.S. President Donald’s Trump’s policies on Canadian trade. The government reinstated a so-called “rainy day reserve” of C$3 billion, thereby widening the projected deficit in 2017-2018 to C$28.5 billion from C$27.8 billion forecast in November.
"Budget 2017 contains important steps that have the potential to restore Canada's place as the world's top destination for mineral investment and place to do business, including addressing the infrastructure shortage in Canada's remote and northern regions and supporting industry's innovation efforts,” said Pierre Gratton, president and chief executive officer of the Mining Association of Canada.” “However, more details are needed to determine whether they will be successful in fostering sustainable mining growth and enabling Canada to compete against other nations for much-needed investments."
In particular, the MAC favored programs focused on infrastructure, especially for remote, northern and Indigenous communities. Further, mining organization welcomed the government's commitment to develop a new National Trade Corridors Fund to address congestion in the transportation-supply chain, plus Budget 2016's C$1 billion investment for innovation in natural-resources sectors, calling for programs to be launched yet this year.
Other measures favored by the MAC include a one-year renewal of the Mineral Exploration Tax Credit (METC) during what the organization terms “a critical time for Canada's junior-exploration sector,” funding for the launch of an Indigenous Guardians Pilot Project, and a one-year extension of the Aboriginal Skills and Employment Training Strategy.
"MAC is also pleased to see funding for work-integrated learning, and we are currently working with the Mining Industry Human Resources Council to support such a program for the mining sector," Gratton said.
The Prospectors & Developers Association of Canada praised inclusion of many of the same budget items – the METC, infrastructure spending for remote, northern regions, training programs for Aboriginal people, and the $1 billion fund for innovation.
"A number of initiatives included in Budget 2017 are in line with PDAC's recommendations to ensure Canada's mineral exploration and development sector can further discover and develop the natural resources our nation is blessed with, for the benefit of all Canadians," says PDAC President Glenn Mullan.
The Canada Infrastructure Bank -- announced in the Fall Economic Statement and part of the federal government's nation-building infrastructure plan -- will help unlock natural resources in remote and northern Canada, PDAC said, adding that the mining organization has advocated for this since 2013.
"The METC has been renewed by successive governments because it is a proven, effective incentive that has stimulated investment in grassroots exploration and created greater opportunity," said Andrew Cheatle, PDAC executive director. "Without this vital tax credit, there will be less exploration, which means less mineral discoveries, and ultimately, less economic benefits that are generated by producing mines"
The mineral exploration and mining industry contributes around C$56 billion in gross domestic product annually and directly employs more than 373,000 workers, plus another 190,000 indirectly, PDAC said. Mining is the largest private-sector employer of Aboriginal people in Canada, the organization added. |
