An economic assessment released Wednesday projects that the federal government’s planned expansion of eligible Canadian Exploration Expense activities and broader Mineral Exploration Tax Credit could generate up to C$33 billion in economic growth. The estimate depends on bringing three to five mines into production and increasing mineral exploration spending.
It also forecasts a fivefold increase in GDP for every dollar the government invests.
Budget 2025 changed the critical-mineral tax credit, while the government has committed to expanding Canadian Exploration Expense eligibility to include engineering, feasibility and technical costs. The Association for Mineral Exploration said it expects the commitment to be addressed in Budget 2026, due later this year.
Prime Minister Mark Carney has also identified lengthy approval processes as an obstacle to growth and unveiled draft legislation in September intended to speed approvals for major natural-resource projects. AME CEO Todd Stone said 171 mines are awaiting commercial production and cited support for the tax change from more than 170 companies, provinces, territories and Nations, as well as British Columbia, Alberta, Saskatchewan, Manitoba, Nova Scotia and Yukon.