Budget changes affect juniors

Mining-company representatives were one of the few groups smiling after studying Ontario’s new budget, says a Canadian Press report.

The industry is applauding the government’s capital tax relief for junior mining companies that issue flow-through shares to investors, and changes to the Mining Act allowing companies to write off funding set aside for mine- closure cleanups.

“This is a significant improvement and cents it] could keep some junior mining companies’ heads above water,” said Steven Parry, past-president of Save Our North, a Timmins-based group lobbying on behalf of resource industries. Before the budget, investors could not make income-tax claims for exploration expenses and junior mining firms could not claim expenditures set aside for future cleanups.

Pierrette Blok, president of the Association of Mining Municipalities of Ontario, said the signals from Queen’s Park are extremely encouraging. “This is very good news,” he said. “As far as the mining sector is concerned, the improved flow-through system adds incentive.”