Canada to extend its mineral exploration tax credit for two years

Canada has extended its mineral exploration tax credit by two years as a measure to support exploration projects, energy and natural resources investments, Jonathan Wilkinson said on Sunday, citing Reuters.

The Mineral Exploration Tax Credit is a capital market tool that provides a 15% tax credit for investors who buy tradable shares in small mining companies. The policy expires on March 31.

Mr Wilkinson said the extension was intended to ensure that the mining industry had the tools to finance exploration projects. The measure is also a government's attempt to provide alternative sources of funding for businesses.

At present, Canadian mining enterprises are in financing difficulties, and the government is facing the challenge of overseas funds.

In an interview, Wilkinson said junior companies were eager to get funding and the extension was expected to provide C$111 million support for mineral exploration.

The measure will be announced at the Toronto Exploration Annual Conference (PDAC) on Sunday (March 9). PDAC is one of the world's largest mining conferences.

Mining companies in North America could face a trade war launched by U. S. President Donald Trump, who has threatened to impose a 25 percent tariff on most Canadian goods.

Mining companies will also face tight controls on key mineral exports. Wilkinson said Canada and the United States can mutually benefit, and Canada can provide the United States with the much-needed supply of gallium and germanium.

Mr Wilkinson said Canada and the US could sit down and talk seriously about how to help each other. If Mr.Trump insists on imposing tariffs on Canada and Mexico, Canada is ready to retaliate.

While Canada may not impose an export tax on metals in the first round of countermeasures, consider future taxes on Zinc, Copper and Nickel.

"This may not be the first step, but it is certainly a measure in the Canadian policy box. We are not going right now."

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