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MAC comments on federal budget 2011

The Mining Association of Canada (MAC) welcomes several of the measures in federal Budget 2011 tabled yesterday.

"The mining industry is an engine of economic growth in Canada", said Pierre Gratton, President and CEO of the Mining Association of Canada "and we applaud those measures in the budget that support and enhance that growth".   Particular measures include:

  • Ongoing reductions in Canada’s corporate tax rate
  • Continued support for enhanced flow-through shares
  • Support for strategic infrastructure investments like the construction of an all-season road between Inuvik and Tuktoyaktuk
  • Enabling Ridley Terminals to borrow from capital markets so it can proceed with much-needed facility expansion plans
  • Funding an India strategy that combines branding, market development, academic partnerships and free-trade negotiations - India offers attractive long-term, mutually-beneficial opportunities for Canada's mining industry

The Canadian mining industry accounts for some 19% of Canadian exports, contributes over $10 billion in annual payments to governments, and provides business for 3,200 supplier companies, including around half of the freight revenue of Canada’s railroads.  While important in remote communities, the industry also generates prosperity in our major cities – Toronto, Vancouver, Montreal, Edmonton, Calgary and Saskatoon all feature areas of global mining leadership.  

The existing contribution of Canada’s mining sector, however, is expanding. “The current strong resurgence in commodity prices, driven by emerging markets, is creating new opportunities for growth and investment in Canada’s mining sector not seen in a generation.” added Gratton.  “Several new mining projects are in construction across Canada while many others are in advanced stages of development, promising billions of dollars in new investment and thousands of jobs in every region of the country.”  Mineral exploration has rebounded from the 2008 economic crisis and Canada continues to attract the largest share of global exploration spending. 

The mining sector needs a stable and attractive business environment in which to invest.   Yesterday’s budget includes important enhancements that environment.   We look forward to working with Government to further strengthen Canada’s leadership position on the global mining stage. 

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About the Mining Association of Canada

Based in Ottawa, the Mining Association of Canada is the national organization for the Canadian mining industry. Its members are engaged in mineral exploration, mining, smelting, refining and semi-fabrication.