The essentials for miners in Canada's 2013 federal budget
The Mining Association of Canada (MAC) sees both positive and negative influences on the Canadian mining industry from the 2013 federal budget announced yesterday.
On the bright side:
1) The 15% Mineral Exploration Tax Credit (METC) will be extended for at least another year. This is a crucial tax incentive for juniors, particularly given current market jitters and the difficulty juniors are having raising sufficient capital.
2) Skills shortages are satisfactorily addressed.
- The Canada Job Grant
- Increased support for paid internships
- Smoother process of apprenticeship accreditation
- More funding to promote education in areas of labour demand shortage
- Enhanced Aboriginal training programs
3) $37 million pledged over the next two years for mining research partnerships between government and industry.
1) Elimination of the Accelerated Cost of Capital Allowance (ACCA) for new and expanding mines.
2) Reduced deduction rate for pre-production mine expenses. (In some cases up to 70%).
To read the Mining Association of Canada's full analysis of Budget 2013, click here.
For full coverage of Budget 2013 from the Globe and Mail, click here.