Canada Extends Mineral Exploration Tax Credit For Two More Years

The Canadian government will extend its mineral exploration tax credit for an additional two years in a bid to bolster investment in exploration projects, energy, and natural resources, Natural Resources Minister Jonathan Wilkinson announced, Reuters journalist Divya Rajagopal reported.

Canada has taken a firm stance against Chinese state-owned enterprises investing in domestic mining firms.

The tax credit, which offers a 15% incentive to investors who buy flow-through shares of smaller mining firms, was set to expire on March 31. Wilkinson said the extension ensures that mining companies can continue raising capital for exploration projects and provides an alternative to Chinese investment.

Canada has taken a firm stance against Chinese state-owned enterprises investing in domestic mining firms, recently ordering at least five companies to divest their holdings in Canadian-listed firms.

“There was some degree of anxiety in the sector, especially among junior exploration companies, about whether the credit would be renewed,” Wilkinson said. The extension is expected to inject C$110 million ($76.05 million) into mineral exploration projects.