Mineral Explorers Welcome Tax Credit Extension and Recognition of Consultation as Exploration Expense
Vancouver – April 21, 2015 – Today, the Association for Mineral Exploration British Columbia (AME BC) welcomed the federal government’s budget as announced by Minister of Finance Joe Oliver.
“We are very pleased to see the federal government’s commitments to extend the Mineral Exploration Tax Credit through March 2016 and to expand the eligibility of Canadian exploration expenses,” says David McLelland, Chair of AME BC. “Having effective incentive programs that attract and retain responsible mineral exploration programs to Canada are critical to the competitiveness of the industry. This is especially true in British Columbia given the current global economic conditions.
These incentives will be of great strategic and economic value when commodity prices inevitably rise and more world-class deposits are discovered in British Columbia for the benefit of all Canadians.” On March 1, Minister Oliver announced the extension of the federal Mineral Exploration Tax Credit and extension of the eligibility of Canadian exploration expenses (CEE) to include environmental studies and community consultation expenses incurred after February 2015. An Ernst & Young study conducted in 2013 for AME BC found that the average consultation costs borne by representative companies as a percentage of their total exploration expenditures in 2012 was estimated at over 21 per cent.
“The tax incentives confirmed in today’s federal budget will help maintain Canada’s globally competitive edge in attracting investment for mineral exploration and development,” notes Gavin C. Dirom, President & CEO of AME BC. “Members of AME BC look forward to the full implementation of the provision to make community consultation and environmental studies tax-deductible for British Columbia-based companies exploring in this province and across Canada.”
AME BC advocates for a permanent tax credit to further boost confidence in Canada as a destination for investment in mineral exploration and development, but notes the significance of the annual renewal of the credit within a balanced budget. Adds McLelland, “A study by the Prospectors & Developers Association of Canada found that 72 per cent of exploration-stage financing from 2012 through 2014 was by flow-through shares that are made possible by the Mineral Exploration Tax Credit. Clearly, today’s announcement will help encourage investment in mineral exploration that will lead to the discovery and development of future mines.”
About AME BC:
AME BC is the lead association for the mineral exploration and development industry based in British Columbia. Established in 1912, AME BC represents, advocates, protects and promotes the interests of thousands of members who are engaged in mineral exploration and development in BC and throughout the world. AME BC encourages a safe, economically strong and environmentally responsible industry by providing clear initiatives, policies, events and tools to support its membership.
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For further information, please contact Jonathan Buchanan, Director, Communications & Public Affairs, AME BC, at 778.840.0620 or jbuchanan@amebc.ca.