With long-term “resource country” strategy in western developed countries, especially among G7 countries, Canada is the “mining financial center in the world “.
Canada is rich in mineral resources, has more than 60 varieties of mining and is the third largest mining producer in the world. Production of potassium chloride, cobalt, uranium, nickel, copper, zinc, cadmium, titanium, aluminum, asbestos, diamonds, platinum group metals, molybdenum concentrate, salt, gypsum are leading in the world. Canada owns about 300 metal, non-metal and coal mines, more than 3,000 quarries and sandstone trenches, over more than 50 non-ferrous smelting plants and steel plants. In Canada, mineral transportation volume accounts for 60% of the entire railway and other land cargo transportation.
In Canada, mining industry contributed to 4% of GDP, provided employment for more than 369,000 people and supported additional employment in mineral exploration, production and processing, environmental services, transportation and equipment maintenance. Mining industry in Canada is the principal income source of more than 150 communities in rural and remote areas. Mining is vital in Canada’s economic development.
Canada is a federal state consisting of ten provinces and three territories . Its mining industry is administered by both federal and provincial governments. According to the Canadian Constitution Act, mining industry is generally governed by the provincial government, including exploration, development, mining and mineral resources mining site construction, management, reconstruction and closure of business.
Federal and provincial governments in Canada have given equal treatment to foreign investors and domestic investors in mining, which includes the same tax rate, mining right fee, access to information, resources and government services. The Government of Canada actively encourages foreign investments. In general, foreign investments are not constrained by the Canadian Investment Act if not directly related to acquiring of shares or business assets. In mining, exploration phase is not considered as a business acquisition and therefore not bound by the Investment Act whereas the production is considered as an asset acquisition and is subject to review and approval by the government.
The Government of Canada recognized the high risk and capital intensive nature of mining industry. In order to develop effective policies, promote the healthy development of the mining industry, the Government of has carried out specific mining development policies, including preferential tax rates and financing.
Canada Government is committed to improve the domestic mining investment environment through the following approaches: (1) timely disclose government funded earth science information (2) establish competitive tax rates and policies; (3) optimize government management and services; (4) build basic infrastructures; (5) simplify mining investment and financing; (6) created good natural and living environment; (7) develop high quality and talented labour.