March 15, 2019
The Mining Association of Canada (MAC) released its annual Facts & Figures report, with this year’s data showing that the country’s competitiveness “continues to erode,” and that it is essential for government to take action to reverse this trend.
“Over the past decade, Canada’s leadership in mining has been deteriorating year over year, with no sign of any significant turnaround, and support from governments is absolutely critical to improving this position,” said Pierre Gratton, president and CEO of MAC. “Over the past several months, we have been encouraged by initiatives put forth by federal and some provincial governments in recognition of the challenges our industry faces, including the decision to renew the Mineral Exploration Tax Credit for a five-year term, enhanced Accelerated Capital Cost Allowances and in the recently released Canadian Minerals and Metals Plan, all of which should help reverse current trends. However, this is only a start and we look forward to further action.”
The new Facts & Figures report highlights a number of worrying trends, including:
“One of the most pressing issues of concern for Canada’s mining industry is the fact that investment in new mining projects has fallen, highlighting the fact that our country’s economic prospects are uncertain. Australia, in contrast, continues to make significant inroads in mining, and in 2017, FDI (Foreign Direct Investment) in Australia was $315 billion, or 37 per cent of the country’s total. In Canada, by contrast, mining FDI was $28.2 billion, or 2.5 per cent, of the total,” said Gratton. “Much needs to be done to boost our domestic and international competitiveness in order for Canada to reclaim its position as the global leader in the mining sector.”