Mining Sector Review
Ontario has the highest value of mineral production of any province or
territory in Canada. In 2011, the value of metallic and non-metallic
mineral production in the province was estimated to be almost
$10.7 billion.
The
Mining Tax Act levies a tax on profits from the extraction of minerals
(except diamonds) in Ontario. The primary purpose of the mining tax is
to ensure that Ontario receives fair compensation for its non-renewable
resources. Ontario collected approximately $140 million in mining tax
in 2010–11.
Ontario has introduced several mining tax incentives over the years that
were designed to encourage investment at a time when Corporate Income
Tax rates were high. Since Ontario mining operations have benefited
from the recent steps taken by the Province to create an internationally
competitive tax regime, the government is proposing to work with
stakeholders in reviewing the current system to ensure Ontario receives
fair compensation for its non-renewable resources.
