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VANCOUVER, BC --(Marketwired - March 24, 2016) - The Association for Mineral Exploration British Columbia (AME BC) welcomes incentives announced in the Government of Canada's 2016 budget that assist mineral explorers and developers in British Columbia (BC).
The federal budget extends the Mineral Exploration Tax Credit (METC) through March 2017. In a BC context, the federal 15 per cent METC for investors is harmonized with the provincial Mining Flow-Through Tax Credit to further encourage private investment in mineral exploration in BC, resulting in a combined investment tax credit for an individual resident in BC of approximately 32 per cent.
"We appreciate the ongoing federal government support of this vital tax credit which provides direct and immediate assistance to the exploration and development sector," says Diane Nicolson, Chair of AME BC. "Given the protracted downturn and challenges to raising venture capital, the METC is an especially important incentive to attract investors to participate in the financing of mineral exploration activities. Its renewal will encourage more grassroots exploration work, which is critical to the search for new deposits and the development of new mines in the province. This tax credit benefits both the companies and the regions where exploration dollars are spent."
AME BC also supports the federal government's intent to proceed with changes to the definition of Canadian Exploration Expenses (CEE) to qualify certain mineral exploration costs associated with undertaking environmental studies and community consultations as CEE.
"Engagement with project stakeholders and environmental planning and management are key components of mineral exploration and development programs, so expenses related to these important activities should be considered CEE-eligible," said Gavin C. Dirom, President & CEO of AME BC. "We will continue to work with the federal government and other industry associations across Canada to complete these changes, which will assist our members' efforts to obtain mineral exploration permits and advance their projects."
Further, the federal budget has designated $87.2 million for Natural Resources Canada initiatives across the country that support research in forestry, mining and minerals, earth sciences and mapping, and innovation in energy technology. "The federal government's commitment to earth sciences and mapping as well as minerals-related research will further boost Canada's leadership and reputation for innovation and help attract more investment into mineral exploration and development," concludes Dirom.
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 B.C. 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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Director, Communications & Public Affairs