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Federal Budget 2019

PDAC is pleased to provide recommendations for Federal Budget 2019 that will help Canadians participate in the labour market and ensure that businesses are more productive and competitive at home and abroad. As an industry that operates across the country—in urban, rural and remote areas, and is the largest private sector employer of Aboriginal peoples—the minerals sector is uniquely positioned to offer economic opportunities to all Canadians.

PDAC Recommendations for Budget 2019

Renewal of METC for three years

Given the importance of the METC to catalyzing investor interest in super flow-through shares and the need for certainty for proponents, PDAC recommends that the government maintain flow-through shares and renew the METC for a minimum period of three years.

Support the mineral industry’s competitiveness in northern and remote regions

The federal government should support northern and remote mineral exploration and development by:

  • Addressing the infrastructure deficit through increased, strategic investments in transportation and energy infrastructure.
  • Ensuring that any new carbon price regime addresses the unique challenges faced by remote and northern regions, and includes a fiscal support mechanism for mineral exploration projects that must rely on diesel and other fossil fuels (e.g. rebates, a funding pool, tax credit).

Investment in Indigenous communities

PDAC recommends the federal government support efforts to enhance the participation of Indigenous Peoples in the minerals industry through:

  • Foundational social investments (housing, water, infrastructure) to improve health and educational outcomes for Indigenous communities
  • Targeted funds for skills training and entrepreneurship to assist Indigenous Peoples in securing employment and seizing business opportunities 

Accessing Prospective Lands – Balancing Conservation and Economic Development Goals

PDAC recommends that the government create a funding mechanism for provinces and territories to support the undertaking of comprehensive mineral resource assessments, based on geoscientific studies, in order to understand and incorporate the value of mineral potential into regional assessments and land management decisions.

Support for innovation

Support geoscience mapping and innovation in the mineral sector by providing:

  • Increased funding to the Geological Survey of Canada.
  • Fiscal incentives/funding for mineral companies to encourage the testing and adoption of innovative technologies and processes (e.g. innovation funding mechanism, tax credits, etc.).