Manitoba tax changes to boost new investment

The government of Manitoba is offering tax concessions designed to encourage investment in mining.

The changes, according to Mines Minister Darren Praznik, will result in more than $170 million for mine openings and expansions this year.

The following tax changes were outlined in the recent budget: * Unclaimed federal exploration and development expenses will now be deductible for all mining companies. Previously, the exemption applied only to companies that owned 50% or less of an operating mine in the province.

* Geophysical survey equipment (with the exception of drill rigs) used for prospecting and exploration is now exempt from retail sales tax.

* Prototype equipment used to research and develop mining technologies is also exempt.

* Diesel fuel used exclusively for off-road mineral exploration is exempt from Motive Fuel Tax.