The provincial government is moving forward with the recommendations from the BC Mining Jobs Task Force (MJTF) to boost the mining sector and create good jobs and a strong, sustainable economy.
As part of this work, British Columbia is making the Mining Flow-Through Share (MFTS) tax credit, and the B.C. Mining Exploration Tax Credit (METC), permanent incentives to support investment. This will bring immediate benefits to B.C.’s mineral exploration sector by creating more certainty and economic activity to support jobs.
“I’m very excited to acknowledge the work done by the BC Mining Jobs Task Force and the recommendations they put forward to strengthen mining, exploration and the communities that depend on this important sector. We are making these tax credits permanent, something the previous government would not do,” said Premier John Horgan. “This is a major step to creating a stronger mining industry – one that creates jobs for British Columbians today, tomorrow and beyond.”
The tax credits were among the items announced by Premier Horgan in response to the MJTF’s recommendations during the annual Association of Mineral Exploration’s Roundup 2019 in Vancouver.
“The task force’s recommendations show what we can accomplish when we work together as government, First Nations, labour and industry leaders. Because mining is a foundational industry in British Columbia, it is a critical aspect of building a better B.C. —and these recommendations give us the direction to do exactly that,” said Michelle Mungall, Minister of Energy, Mines and Petroleum Resources. “I’m very proud of the task force’s work.”
The government reviewed all actions contained in the report and developed a plan to implement, develop and study task force actions through a staged approach. To support the recommendations of the MJTF, the B.C. government will also be significantly increasing its investment in the Ministry of Energy, Mines and Petroleum Resources, ensuring resources are available to improve mining application processes and industry safety and oversight.
In addition, government is committing $1 million to work with industry and all levels of government to develop a mining innovation roadmap, and an additional $1 million for the continuation and expansion of the Regional Mining Alliance, which promotes mineral exploration, Indigenous partnerships and mining in B.C.
The full implementation plan includes a review of the mining sector’s fiscal framework as it relates to the task force’s recommendations: the establishment of best practices for mitigating community impacts from mining, the development of a plan to attract and retain women in mining, the development of options for an accessible worker database, the co-ordination of mine-sector branding with CleanBC, and reviewing economic partnerships with Indigenous communities.
“The mining sector plays a pivotal role in B.C.’s economic growth, creating thousands of jobs for the people of this province,” said Bruce Ralston, Minister of Jobs, Trades and Technology. “Looking forward, we need minerals for a low-carbon future, and we want to make sure British Columbia is well positioned to deliver our commodities to the global market. The work of the Mining Jobs Task Force and its recommendations will undoubtedly provide a surge to this industry that will be felt for many years to come.”
Edie Thome, president and CEO, Association for Mineral Exploration (AME) —
“We are pleased that the provincial government is living up to their commitment to support the mineral exploration and mining industry and its future in this province. Our goal as the Mining Jobs Task Force was to collaborate and come to consensus on actions that would be meaningful and value all perspectives as we move forward together. AME looks forward to implementing the actions and making our collective vision a reality. This is a major step to building a sustainable and strong mining industry – one that all British Columbians can be proud of.”
Alan Young, director, Materials Efficiency Research Group —
“Over the last few years the mining sector has faced sobering challenges, including a tailings dam failure and ongoing water quality issues. The Mining Jobs Task Force Report lays a framework with the potential to address many of these challenges and build a more responsible, inclusive and competitive sector that is responsive to industry, Indigenous peoples, government, communities and civil society.”
Bryan Cox, president and CEO, Mining Association of B.C. (MABC) —
“The Mining Association of B.C. was pleased to participate in the task force and commends the government for bringing together a diverse and skilled group to complete this important work. The mining industry in B.C. is an essential pillar of the economy, providing responsibly produced commodities to the world and opportunities for prosperity in communities in every region of the province. By ensuring that B.C. has a growing, sustainable and inclusive industry that is globally competitive, these opportunities for prosperity can continue to grow for the benefit of all British Columbians and future generations. MABC looks forward to working with the government, Indigenous communities and other important stakeholders to implement the actions in this report.”
Michelle Laurie, staff representative, United Steelworkers —
“By implementing several significant recommendations of the Mining Jobs Task Force, the Province has sent a clear signal that it understands the important role the mining sector plays in providing jobs for British Columbians. We are especially grateful to see government will be moving forward on a roadmap to address future skills and labour needs and is also strengthening workplace health and safety.”
- The 12-member task force included representatives from industry, First Nations, municipal and provincial government, an environmental non-governmental organization, labour, post-secondary/training and the financial sector.
- They submitted their final report on Dec. 19, 2018. The provincial government will provide more details about how the Mining Jobs Task Force recommendations will be supported when Budget 2019 is released on Feb. 19.
- In addition to the vision statement of the task force: “British Columbians are proud of our growing mining industry as the backbone of an inclusive, progressive and low carbon economy,” the task force developed five areas of focus:
- supporting a healthy and diverse workforce;
- realizing community benefits;
- enhancing B.C.’s fiscal and regulatory competitiveness;
- fostering innovation; and
- building awareness of mining’s role in a prosperous B.C.
- The MFTS provides a non-refundable B.C. income tax credit to individuals who have purchased flow-through shares from a B.C. mining company. The tax credit is worth 20% of mining expenditures that the mining company flows through to the individual.
- The METC is a refundable B.C. income tax credit for eligible individuals and corporations conducting grassroots mineral exploration in B.C. and is worth 20% or 30% of qualified mining exploration expenditures. The government’s decision to make these credits permanent will create more certainty and incentives to invest in B.C.’s mining industry.
- Mining and related sectors in B.C. provide jobs for more than 30,000 people in communities throughout the province and have a production value of more than $8 billion.
- Currently, more than 3,000 businesses in British Columbia provide supplies or services to mining operations in this province.
For more information on the Mining Jobs Task Force, visit: https://www2.gov.bc.ca/gov/content/industry/mineral-exploration-mining/exploration-in-bc/bc-mining-jobs-task-force
For more information on the Mining Flow-Through Tax Credit, visit: https://www2.gov.bc.ca/gov/content/taxes/income-taxes/personal/credits/mining-flow-through
For more on the Mining Exploration Tax Credit, visit: https://www2.gov.bc.ca/gov/content/taxes/income-taxes/corporate/credits/mining-exploration
A backgrounder follows.