More government involvement is needed to spur investment in mineral exploration in Canada, according to Guy Dufresne, chairman of the Mining Association of Canada.
Speaking at the recent Cordilleran Round-up in Vancouver, B.C., Dufresne told delegates that there is a need to review federal and provincial corporate taxation systems, levies and other measures which are hampering investment and weakening our international competitiveness.
“If we want the Canadian mining industry to remain a world-class industry, we need to attract global investment,” he said. “To do so, we must offer tax conditions that are more attractive than those of the countries with which we are competing.”
He recommended that provincial governments reduce their corporate tax rates and eliminate certain taxes, so as to promote investment. He also called on the federal government to decrease the effective corporate tax rate to 21% from 28% over five years, a reduction already granted to the high-tech and service sectors.
Turning to environmental issues, Dufresne said the Canadian mining industry has worked hard to ensure that its operations are environmentally responsible. Mining is now one of the few industries boasting a reduction in greenhouse gas emissions below 1990 levels.
“The mining industry has no intention of shirking its responsibilities,” he said. “But we must have environmental regulations that are more ‘aerodynamic,’ more modern, and that better reflect our circumstances.
“The mining industry believes that any new regulatory control standards should be economically and technically justified and based on recognized scientific knowledge.”
He also expressed a need for a clearer and more comprehensive project approval process, adding that the Canadian Environmental Assessment Act is a unique opportunity to improve the country’s regulatory process.
“The mining industry plays a key role in our economy,” Dufresne concluded. “[It’s] one of the few industrial sectors where Canadian knowledge, technology, expertise and corporate leadership dominate internationally. It’s a position Canada must preserve.”
— The preceding is from a publication of the Mining Association of Canada.
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