The mineral sector experienced a 21 per cent increase in the value of Canadian mineral production in 2011
OTTAWA—Mining industry payments to Canadian provincial and federal governments in 2011 reached an estimated $9 billion, according to The Mining Association of Canada (MAC)
That figure includes not only aggregate mining taxes, royalties and corporate income taxes, but also personal income taxes. The report was prepared by ENTRANS Policy Research Group, an Ottawa-based consulting firm.
“The increase in payments made to federal and provincial governments last year is directly related to the mining industry’s economic strength during this period,” said Pierre Gratton, MAC’s President and CEO.
“Despite fiscal policy changes—notably the reduction in the federal corporate tax rate in 2011—payment levels were buoyed by generally higher metal prices and increased production,” he said.
According to Natural Resources Canada, the mineral sector experienced a 21 per cent increase in the value of Canadian mineral production in 2011 to a record $50 billion stemming from a combination of higher prices and expanding output.
Key findings of the report include:
Regionally, Alberta and Saskatchewan accounted for the largest portion of royalties and mining taxes at 64 per cent.
Newfoundland and Labrador saw royalty and mining tax revenues rise by almost 70 per cent on the strength of higher iron ore and nickel prices, and increased volumes from the Voisey’s Bay operation.
Ontario’s annual revenues more than doubled to $180 million mostly on higher gold and copper prices.