The Prospectors & Developers Association of Canada (PDAC), a prominent Canadian mining industry organization with approximately 7000 members and host to the world’s largest mining event, has submitted a series of recommendations to the Canadian government aimed at enhancing the global competitiveness of the local mining industry.
In response to the government’s initiatives outlined in the 2023 budget, PDAC acknowledges progress but emphasizes the need for further action. As part of Finance Canada’s 2024 budget consultations, PDAC has put forth a list of suggestions to strengthen Canada’s mineral exploration and development sector.
The recommendations primarily concentrate on the fiscal system, including proposals for the renewal of the mineral exploration tax credit system for at least five years beyond the current expiration date in March 2024 and extending eligibility for the critical mineral exploration tax credit by two years starting in 2027 to align the periods for both incentives. Additionally, PDAC advocates for the development of a mechanism to allow for the suspension or deferment of expenditure timelines related to flow-through shares in situations where explorers are impacted by unforeseen circumstances, such as natural disasters like wildfires.
Furthermore, PDAC recommends adjustments to the capital gains tax treatment for flow-through shares to encourage broader investor participation and funding accessibility within Canada. The organization also urges the government to expedite the allocation of $1.7 billion set aside in the 2022 budget to enhance critical mineral supply chain infrastructure and support initiatives such as the Canadian Infrastructure Bank and Canadian Broadband Fund for the development of essential energy, transportation, and telecommunications infrastructure in northern regions.
PDAC calls for increased funding for the Geological Survey of Canada and collaborative efforts with provincial and territorial geoscience organizations to develop comprehensive mineral and energy potential models for evidence-based land management and conservation planning. This information should be made widely available to the public to facilitate informed decision-making.
The 2024 PDAC event is scheduled to take place in Toronto, Canada, from March 3-6. More information can be found at the PDAC website.
