Association for Mineral Exploration British Columbia (AME BC)

Association for Mineral Exploration British Columbia (AME BC)

March 29, 2012 20:32 ET

The Association for Mineral Exploration Supports Federal Budget 2012

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 29, 2012) - The Association for Mineral Exploration British Columbia (AME BC) commended the federal government's fiscally disciplined budget and thanked the government for extending the Mineral Exploration Tax Credit until March 31, 2013 as announced by Finance Minister Jim Flaherty today. Importantly, the federal budget emphasizes the importance of building a single, transparent and robust environmental assessment process in Canada.

"We are pleased to see the extension of the Mineral Exploration Tax Credit, which stimulates investment in mineral exploration throughout BC and Canada, as well as the federal government's intention to move to a 'one project, one review' process," stated Gavin C. Dirom, President and CEO of AME BC. "Mineral exploration is the research and development that drives Canada's successful mining sector, and today's announcement demonstrates the federal government's commitment to this critical sector of Canada's economy."

The Mineral Exploration Tax Credit increases exploration financing by providing individuals who invest in companies that are exploring for minerals in Canada with a 15% tax credit on eligible expenditures. To support a vibrant mineral exploration sector, the Canadian government first introduced the tax credit in 2000 for a five year period, and extended it in 2006 for another two years. It has since been extended on a yearly basis and was set to expire on March 31, 2012.

"While we are pleased by today's announcement, we encourage the federal government to simply make the Mineral Exploration Tax Credit permanent," continued Dirom. "Government is faced on a yearly basis with the review of its policy towards the Mineral Exploration Tax Credit and this annual review cycle creates needless work and uncertainty about investing in Canada's mineral exploration and development sector. Making it permanent would send an even stronger and clearer signal to investors that the federal government encourages continued investment in Canada's mineral exploration sector."

"Within the context of an uncertain global economy, AME BC appreciates the federal government delivering a prudent budget that sets the tone for fiscal responsibility while maintaining incentives that attract further investment to successfully explore and develop Canada's world-class mineral resources," concluded Dirom.

About AME BC:

AME BC is the predominant voice of mineral exploration and development in British Columbia. Established in 1912, AME BC represents over 4,700 members including geoscientists, prospectors, engineers, entrepreneurs, exploration companies, suppliers, mineral producers and associations who are engaged in mineral exploration and mine development in BC and throughout the world.

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