In the past two years, the economy in Ontario has grown more quickly than that of any G7 country, and mining has played its part, generating between $5 billion and $7 billion in annual mineral production. The provincial government wants to ensure that this contribution continues. In its May 2000 budget, the Progressive Conservative government of Premier Mike Harris sent a clear message to the international mining community: Ontario is open for business.
Highlights of the budget, in relation to its effect on mining, include:
– a reduction in the mining tax rate to 10% from 20%;
– a 10-year mining tax holiday for new mines in remote areas, aimed at promoting development in the Far North and distant aboriginal communities;
– a reduction in the corporate tax rate to 8% from 15.5%; and
– a 30% tax deduction for Ontario residents who own flow-through shares for mineral exploration, thus encouraging private-sector investment for mineral exploration.
“The proposal for reinstatement of flow-through share investment incentives is very welcome and should help attract investors over the long-term,” says David Comba, director of issues management for the Prospectors and Developers Association of Canada. “The budget that came down in May is one of the best mining budgets ever seen in Canada.”
Mining has long played a vital role in Ontario’s economy. The province is Canada’s leading producer of nickel, gold, cobalt, copper, cadmium, selenium and barite, and it also boasts a vibrant aggregates industry.
— The preceding is an excerpt from Mining in Ontario: The Future’s right here, published by the province’s Ministry of Northern Development and Mines.
Be the first to comment on "Ontario budget boosts mining"