Québec Government budget for 2020-2021 : the Québec Mining Association disappointed by the lack of support for mining development

Québec City, March 10, 2020 – The Québec Mining Association (QMA) is disappointed by the 2020-2021 budget tabled by the Minister of Finance, since it was hoping to see more measures specifically designed to stimulate mining activities.

The good news in the budget is that the government intends to promote the critical and strategic minerals (CSM) sector using a $90 million budget envelope to

  • step up knowledge acquisition, education and awareness regarding critical and strategic minerals as well as the promotion of their potential;
  • encourage innovation and develop expertise and value chains associated with critical and strategic minerals;
  • contribute to the development of the green sector, recycling and exemplary environmental practices.

Although the QMA’s main demand was for support to reduce the costs of mineral development, this measure is the only measure that applies specifically to the mining industry.

Among other interesting items in the budget, the QMA notes the creation of a new investment and innovation tax credit (C3i) to encourage companies to purchase manufacturing and processing equipment, computer hardware and management software. However, the QMA would have liked to see the mining sector made eligible for the tax holiday for major investment projects after previously being unjustifiably excluded.

As the mining sector begins its shift to the digital future, the QMA is pleased to note that the objectives of C3i include

  • Supporting the acquisition of new technologies to digitize production processes;
  • Promoting the modernization of manufacturing equipment to increase robotization and automation.

« Given that Québec has just dropped from 4th place to 18th place in the Fraser Institute’s latest ranking of the best jurisdictions for worldwide investment, the Québec Mining Association hoped to see more in the 2020-2021 budget. We remain confident, however, about the government’s intentions, in particular to make the mining sector more competitive and attractive and a more effective generator of prosperity in Québec. »

« Although disappointed by the lack of measures for the mining sector in the budget, we will continue to work with the government as a key partner to ensure the long-term viability of mining in Québec. »

– Josée Méthot, QMA president and CEO

About the Québec Mining Association

The Québec Mining Association (QMA) was founded in 1936 and speaks proactively for mining companies involved in exploration, extraction and processing, mining contractors and junior mining companies, along with suppliers, institutions, non-profit organizations and other mining sector partners. It is proud of the 40,540 jobs and total expenditure of $8.5 billion generated by Québec’s mining industry over the last year. The QMA’s mission is to promote, support and proactively develop a responsible, committed and innovative mining industry in Québec.