BC confirms mineral exploration tax credits in 5th balanced budget

VANCOUVER (miningweekly.com) – The British Columbia provincial government on Tuesday unveiled its fifth consecutive budget in the black, confirming critical fiscal supports for the mineral exploration industry, previously unveiled by Liberal Premier Christy Clark.

The 2017/18 budget, which is expected to run a C$295-million surplus, including positive balances for the next two years, confirms the extension of the British Columbia mining flow-through share tax credit through to December 31, and the expansion of the provincial mining exploration tax credit to include costs incurred for environmental studies and community consultations, as announced by Clark on January 23 at the Association for Mineral Exploration’s (AME’s) Roundup conference.

Clark also announced at the time C$10-million to fund Geoscience BC for two years to stimulate and attract further investment in mineral exploration.

In Budget 2017, tabled on Tuesday by Finance Minister Mike de Jong in the provincial capital Victoria, government included increased funding of C$18-million to the Ministry of Energy and Mines over the next three years to support mine permitting and oversight, including compliance and enforcement.  

The AME on Tuesday expressed its support of the balanced 2017 budget.

“As we see initial encouraging signs of a return to investor confidence for the mineral exploration industry, it is imperative that British Columbia is competitive on a global scale and, in particular, nurtures grassroots and early stage exploration which is vital to the long-term sustainability of the industry,” the AME board chairperson Diane Nicolson said in a statement.

She added that the budget announcement demonstrated that the provincial government is aware of the significant contribution that mineral exploration and development makes to the province, and to its communities and families.

AME president and CEO Gavin Dirom noted the increased funding of the Ministry of Energy and Mines should improve mine permitting in all regions of the province.

According to the Mining Association of Canada, Vancouver is the global centre of expertise for mineral exploration. Some 700 exploration companies are located in British Columbia, most of which are in the greater Vancouver area.

The Clean Energy Association of British Columbia (CEBC) also hailed Budget 2017 for including several items that will help the province build on the competitive advantage its clean, reliable electricity resource provides and help the province meet its goals laid out in the Climate Leadership Plan.

CEBC executive director Paul Kariya noted that the increased use of electricity is critical to its members and to this end, measures outlined in Budget 2017 will help move the province towards this objective.

Budget 2017 announced the phasing out the provincial sales tax (PST) on electricity purchases by businesses over the next two years. PST on electricity will be phased out beginning with a 50% cut effective October 1, and eliminated by April 2019. The province has been alone in Canada in charging PST on electricity.

Government also announced C$40-million in 2017/18 in support of the Clean Energy Vehicle Programme, to continue to provide British Columbians with financial incentives to help make zero-emission vehicles more affordable, and encourage the build out of charging infrastructure to support a higher number of vehicles.