New incentive program for Ontario in the works

A major government incentive program for Ontario’s mineral exploration industry is being proposed for implementation.

John Gammon, deputy minister of Ontario’s Ministry of Northern Development and Mines, confirmed that the incentive package will come up for cabinet approval in time for the spring budget.

The program, which has yet to be finalized, proposes a series of tax credits for investors who put their cash into mineral exploration, Gammon said. The new program would reward investors with a series of tax credits that become more attractive as the exploration project reaches maturity. The underlying principal, Gammon said, is to allow investors an opportunity to realize tax savings for their risk-taking, but at the same time remove the opportunity for fast-buck artists to get in and out of a project to line their pockets or those of an associate.

A discussion paper on the topic released here last year led to the drawing up of the proposed program. Gammon said the Prospectors and Developers Association of Canada, the Ontario Mining Association and the Save Our North lobby group helped in developing the proposals.