Canada Mining Industry Fiscal Regime Analysis including Governing Bodies, Regulations, Licensing Fees, Taxes and Royalties, 2022 Update

Pages: 31 Published: May 10, 2021 Report Code: GDMMFR0207MR

  • Overview
  • Contents
  • Tables
  • Figures
  • FAQ
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Canada is one of the largest mineral producers globally, producing more than 60 metals and minerals. It is also among the leading producers of potash, uranium, platinum, indium, aluminum, sulfur, cobalt, nickel, zinc, iron ore, graphite, and copper. Furthermore, the country is one of the world’s largest importers of bauxite, enabling it to be the world’s fourth-largest primary aluminum producer.

Industries and economies all over the world have been impacted by the COVID-19 crisis and the mineral exploration and production industry in Canada too has been significantly affected. Provinces across Canada implemented various restrictions on operations in response to the pandemic. While mining operations were declared essential and therefore allowed to continue during the lockdown and restrictions, many miners in Canada curbed production, while a few suspended operations completely.

Canada’s mining industry is governed by different departments and agencies under provincial governments. However, in cases such as mineral activities on federal lands and offshore areas, as well as the usage of uranium as nuclear fuel (from exploration to the disposal of mine waste), a pivotal role is played by the federal government. The Canada Revenue Agency (CRA) governs the tax-related laws in the country. It also manages several socio-economic benefit programs such as incentive systems delivered through the tax system.

In 2017, CRA revised administrative guidelines related to the tax treatment of certain exploration costs in the mining industry. These costs include environmental study expenses, community consultation expenses, and feasibility study expenses incurred by mining companies at the exploration stage. The new guidelines will help CRA to determine whether the exploration costs borne by the companies will qualify as Canadian Exploration Expense (CEE), which provides valuable tax incentives to investors and companies in the mining sector at the exploration stage.

The Department of Natural Resources is the prime body that governs natural resources in Canada. It is responsible for the development, management, conservation, and protection of mines and minerals, energy, and forests in the country. It is also involved in the promotion of green energy and explosive regulations in Canada.

Who is the key governing body in the Canada mining industry?

The Mining Association of Canada (MAC), established in 1935, is the national organization of the Canadian mining industry. MAC’s functions include advocacy, stewardship, and collaboration. It aims to promote the industry’s interests nationally and internationally, work with governments on policies affecting minerals, inform the public and encourage member firms to cooperate to solve common problems faced by companies at the provincial level.

What is the regional-level outlook of the Canada mining industry?

The key regions in the mining industry in Canada are Alberta, British Columbia, New Brunswick, Nova Scotia, and Saskatchewan.

For more insights on the Canada mining industry fiscal regime, download a free report sample

Market Report Scope

Key governing body Mining Association of Canada
Key regions Alberta, British Columbia, New Brunswick, Nova Scotia, and Saskatchewan.

Scope

The report outlines the governing bodies, governing laws, various mineral licenses, and fees by state and territory.

Reasons to Buy

  • Enhance your decision-making capability in a more rapid and time-sensitive manner
  • Find out about Canada’s governing bodies, major laws in the industry
  • Identify various mineral licenses and fees
  • To gain an overview of Canada’s mining fiscal regime

Table of Contents

1 Executive Summary

2 Country Overview

2.1 Macroeconomic Performance

2.2 Ease of Doing Business

2.3 Corruption Index

2.4 Minerals Overview

3 Governing Bodies

3.1 Mining Association of Canada

4 Laws and Regulations

4.1 Canadian Environmental Protection Act, 1999

4.2 Canadian Environmental Assessment Act, 2012

4.3 Metal and Diamond Mining Effluent Regulations, 2002 (Fisheries Act)

4.4 Department of Natural Resources Act, 1994

4.5 Resources and Technical Surveys Act, 1985

4.6 Species at Risk Act, 2002

4.7 Transportation of Dangerous Goods Act, 1992

4.8 Mineral Exploration Tax Credit (METC)

5 Leases and Licenses

5.1 Alberta

– Coal leasing

– Metallic and Industrial Mineral Agreements

5.2 British Columbia

– Coal License

– Coal Lease

5.3 New Brunswick

– Prospecting License

5.4 Nova Scotia

– Mineral Exploration License

– Mineral Lease

5.5 Saskatchewan

– Permits

– Lease

6 Taxes and Royalties

6.1 Corporate Income Tax (CIT)

6.2 Sales Tax

6.3 Withholding Tax

6.4 Royalty Rate

7 Appendix

7.1 Abbreviations

7.2 Methodology

7.3 Coverage

7.4 Secondary Research

7.5 Development Likelihood

List of Tables

Table 1: Ease of doing business, global ranking, 2019–2020

Table 2: Governing bodies and agencies by province/territory, 2021

Table 3: Key laws and regulations by province/territory, 2021

Table 4: Application fees for agreements, Alberta, 2021

Table 5: Fees for coal license, British Columbia, 2021

Table 6: Fees for coal lease, British Columbia, 2021

Table 7: Schedule of fees, New Brunswick, 2021

Table 8: Mineral exploration fees, Nova Scotia, 2021

Table 9: Corporate income tax rate (%) by province/territory, 2021

Table 10: Sales tax by province/territory, 2021

Table 11: Historical GST/HST rates by province/territory, 2008–2021

Table 12: Royalty Rates by province/territory, 2021

Table 13: Likelihood: High

Table 14: Likelihood: Medium

Table 15: Likelihood: Low

List of Figures

Figure 1: Country overview, 2021

Figure 2: Nominal GDP (US$ billion) and real GDP growth rate (%), 2001–2020

Figure 3: Ease of doing business, global ranking, 2019–2020

Figure 4: Corruption perception index rank, 2015–2021

Figure 5: EoDB and CPI ranking, 2020

Figure 6: Mineral’s production trend, 2011–2021

Figure 7: Mining capital expenditures in Canada (US$ billion), 2010–2020

Figure 8: FDI in mining (US$ billion), 2011–2021

Figure 9: Mineral exports and imports value (US$ billion), 2011–2020

Frequently Asked Questions

The Canada mining industry is governed by the Mining Association of Canada.

 

 

The key regions in the Canadian mining industry are Alberta, British Columbia, New Brunswick, Nova Scotia, and Saskatchewan.

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