British Columbia extends two tax-credit programmes for mining firms

25 January 2016 (Last Updated January 25th, 2016 18:30)

The British Columbia Government has announced plans to extend two tax-credit programmes to help mining companies handle the slump in global commodities prices.

The British Columbia Government has announced plans to extend two tax-credit programmes to help mining companies handle the slump in global commodities prices.

The measures were announced by the British Columbia Premier Christy Clark at the opening of the Association for Mineral Exploration British Columbia's Roundup Conference at the Vancouver Convention Centre.

The government announced extensions of the mining exploration tax credit and the BC mine flow-through share tax credit.

"We know when a mine goes to waste all those mines and all those communities that have been founded on a mine disappear overnight."

In particular, the government plans to extend the provincial government's refundable 20% mining exploration tax credit on qualified exploration expenses, as well as up to 30% in regions affected by the mountain pine beetle infestation.

Clark also announced extension of 20% nonrefundable flow-through tax credit on investment in exploration by shareholders.

Work is currently underway to enable mining firms to defer their power bills amidst low commodity prices, Clark noted.

Clark said: "[We] are working on a plan so that mines can defer some of their very considerable power costs until commodity prices bounce back.

"We know when a mine goes to waste all those mines and all those communities that have been founded on a mine disappear over night."