Quebec Mining Exploration Association

Quebec Mining Exploration Association

May 07, 2013 11:17 ET

The AEMQ Disappointed by Changes to Mining Royalty Policy

The Association Deplores the Erosion of Quebec's Competiveness

ROUYN-NORANDA, QUEBEC--(Marketwired - May 7, 2013) - The Quebec Mining Exploration Association (AEMQ) has expressed disappointment over measures taken by the Quebec Government regarding changes announced today to the mining royalty policy.

The AEMQ believes that the Quebec Government was not ready to seriously listen to the sound analysis produced by several economic and fiscal research groups and unanimously supported by the whole of Quebec's economic sector.

"The Quebec mining sector is already suffering from severe a financial crisis, and in the last few years, we have had to deal with significant mining taxes. Any changes to the mining tax system threatens our ability to withstand this crisis and especially to regain momentum. Consequently, this new change hinders the progress of our mining sector. It is an incomprehensible move on the part of a government that claims to want to encourage investment in natural resources," declared Philippe Cloutier, Geologist and President of AEMQ

The AEMQ will measure the impact on investment projects to come, on ongoing projects and on the viability of SMEs' operations. However, it has already estimated that the new policy will have a dissuasive effect on the province's potential to attract investment and create wealth in our resource regions and Quebec as a whole. "Quebec has already slipped to number 39 in world rankings for taxation, far behind mining jurisdictions such as Botswana, Guyana and Burkina Faso. By implementing an electoral promise without economic justification, to the detriment of job creation, the government is contributing to the erosion of Quebec's international competitiveness and to the perception that we are no longer a stable jurisdiction," added Valérie Fillion, Executive Director of AEMQ.

The AEMQ considers that, far from lifting the veil on the uncertainty of this plan, by announcing these changes at a press conference, the Minister of Finance, Nicolas Marceau, should nonetheless proceed in validating his propositions through legislation before modifying the Mining Tax Act. Nothing indicates that the announcement made today will be the same one to appear in the future Act or that it will ultimately be passed. As such, the AEMQ is encouraging members to contact their legal advisors and to assess the impact this announcement may have on their projects.

About the Quebec Mining Exploration Association (AEMQ)

The AEMQ is a professional and industrial association representing players in Quebec's mineral exploration. Founded in 1975, the AEMQ's mission is to increase exploration and support the development of mining entrepreneurship in Quebec. The AEMQ has over 2000 individual members that include prospectors, geologists, geophysicists, brokers, tax experts, lawyers and other professionals and practitioners in the mining industry. There are also 250 corporate members representing major and minor mining exploration companies, geological and geophysical engineering consultancy firms, drilling companies, service providers, equipment manufacturers and service providers. It is run by a board of directors composed of 20 representatives from different areas of mining exploration. The AEMQ Head Office is located at 132, avenue du Lac, Suite 203, Rouyn-Noranda (Québec) J9X 4N5.

Contact Information

  • Marie-France Beaudry
    Communications and Public Relations Manager
    Quebec Mining Exploration Association
    819 762-1599 ext. 225 or Cell: 819 277-3863