Supporting Ontario's Mineral Sector
Ontario's mineral sector plays a vital role in keeping the province strong and prosperous. In 2005, estimates put the value of Ontario's mineral production at greater than $7 billion.
Approximately $5 billion (or 66 per cent) of this production came from metal mining, primarily in northern Ontario. In addition, mineral producers paid out almost $1 billion in wages and salaries, and contributed more than $250 million in taxes to federal, provincial and municipal governments.
Since 2003, the Ontario government has worked to support Ontario's mineral sector through several incentives for attracting investment in exploration and mining, including:
- Launching Ontario's Mineral Development Strategy, which will enhance the mineral sector's global competitiveness, while opening new opportunities for all Ontarians
- Investing $10 million to help establish the Centre for Excellence in Mining Innovation at Laurentian University
- Investing $60 million over six years for clean-up of abandoned mines to protect the public and environment
- Creating a competitive tax system for mining -- provincial tax rates for mining are among the lowest in Canada
- Helping to create the Ontario Mineral Industry Cluster Council
- Committing $15 million, over three years, for geological mapping in the Far North
- Supporting one-stop Internet access to provincial mining-related services.
- Ontario maintained the 25 per cent "resource allowance" deduction used for calculating Ontario Corporate Taxes for mining. The federal government removed the 25 per cent allowance for federal tax purposes in 2005 -- a move that was opposed by the mining sector.
- Ontario maintained its 5 per cent tax credit for flow-through-shares for mineral exploration.
- Ontario Mining Tax rate for new remote mines is 5 per cent, compared to 10 per cent for non-remote mines. Remote mines are defined as mines located more than 30 kilometres from an all-weather road or railway.