Canada isn’t the welcoming mining jurisdiction that it used to be, according to the Mining Association of Canada (MAC). Optimism abounds that the global mining industry is heading in the right direction for 2017, but a new MAC report indicates Canada’s competitiveness is in decline and financiers interested in exploration and mining projects could start parking their investment dollars offshore.
“Very simply, Canada is not as attractive as it used to be for mineral investment, and competition for those dollars is growing globally,” said MAC president-CEO Pierre Gratton in a Feb. 16 news release.
“The recent elimination of federal mining tax incentives, regulatory delays and uncertainty, combined with major infrastructure deficits in northern Canada are all contributing factors that can explain Canada’s declining attractiveness. The time is now to put the right policy pieces in place to better compete for those investments and regain our leadership in mining.”
With only weeks to go before the industry convenes at the annual Prospectors and Developers Association of Canada trade show in Toronto, MAC’s Facts & Figures 2016 report indicates foreign direct investment into Canada’s mining sector dropped by more than 50 percent year-over-year in 2015.
MAC said this is disproportionate to Canadian mining direct investment abroad, which only experienced a six percent decline. The imbalance indicates that companies are less interested in investing in Canadian projects.
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