NEWS RELEASE: Mining Industry Payments to Canadian Governments Increased by 65% in 2010

OTTAWA, Aug. 4, 2011 /CNW/ – The Mining Association of Canada (MAC) today released its annual report on the level of payments made by the mining industry to Canadian governments.  The report, prepared by ENTRANS Policy Research Group, details the direct revenues that accrue to government from the industry in the form of corporate taxes, royalties and employee income taxes.

“The mining industry makes a significant contribution to Canada’s economy each year,” noted MAC’s President and CEO Pierre Gratton, “ranging from capital investment, stock market activity, Aboriginal community jobs and training, and northern development.  The level of payments made to governments detailed in this study is another useful measure of this contribution, particularly valuable because these revenues are used to support health care, education and other critical government services.”

Highlights from the report include:

•$8.4 billion  paid to Canada’s federal, provincial and territorial governments in 2010, a significant increase from $5.1 billion the preceding year
•another $1.8 billion paid by companies in the downstream fabricated metal products sector
•additional revenues from mining supplier companies across the country, ranging from engineering and equipment firms to railroad and marine owners and operators
•a measure of the royalties and similar payments accruing to each province and territory
•the relevance of regional revenue flows, particularly to Newfoundland and Labrador, Saskatchewan, Alberta, British Columbia, and the Northwest Territories.

“The mining industry is critically important to Canada’s positioning in the global economy as the country’s future success is inherently linked to the continued growth of a competitive and responsible resource industry,” added MAC Vice President of Economic Affairs, Paul Stothart. Over the next five years, MAC has estimated that well over $116 billion could be invested in existing and new projects, creating thousands of high-paying jobs in every region of the country and further bolstering government revenues from the sector.

About the Mining Association of Canada

Based in Ottawa, the Mining Association of Canada is the national organization for the Canadian mining industry. Its members are engaged in mineral exploration, mining, smelting, refining and semi-fabrication.