British Columbia, Canada is rich in natural resources and has over 150 years of mining history. In 2017 alone, we produced $8.8 billion worth of mine products, including coal, copper, gold, molybdenum, silver, aggregates, industrial minerals and other mining products.
KEY ADVANTAGES
We offer the ideal business environment for extractive industries. British Columbia is known as a center of expertise in mineral exploration and world leader in mine health and safety practices.
The province is home to the world’s largest concentration of exploration companies and mining professionals. More than 700 mining and mineral firms choose
Vancouver as their base of global operations.
Our world-class educational institutions produce knowledgeable and skilled workers.
We are a supplier of choice for mineral and coal resources, offering efficient supply chains and superior transportation links. These include three transcontinental Class 1 railways with double-stack capability and the shortest sea route between North America and Asia.
British Columbia has a robust venture capital market and a culture of innovation.
British Columbia provides ongoing support for the mining industry.
We are consistently working to provide more and better infrastructure. The recently completed Northwest Transmission Line extends British Columbia’s high voltage transmission grid to the northwest region, providing clean electricity to support mining developments in the area.
We have developed world-class geological databases, cataloging a growing inventory of more than 14,000 mineral occurrences.
We offer a streamlined review and approval process, making it efficient to set up operations in British Columbia.
We offer competitive corporate tax rates, generous incentives, tax or royalty credits and low-cost electricity and natural gas.
SECTOR SNAPSHOT
Mining in British Columbia has a long and productive history, with mine exports growing 139 percent from 2013 to 2016. Currently, 16 metal and coal mines are in production and over 1000 significant industrial mineral and aggregate operations are found throughout the province. Our mining industry continues to grow in environmentally sustainable and socially responsible ways to meet global demand.
British Columbia’s mineral and coal exports were worth more than $9 billion. At $6.5 billion, we are Canada’s largest exporter of coal.
We exported $2.6 billion worth of copper ores and concentrates as Canada’s largest copper producer.
We are Canada’s only producer of molybdenum ores and concentrates ($110 million in exports).
SECTOR INCENTIVES
British Columbia offers both industry-wide and mining-specific incentive programs for corporations and individuals.
B.C. Mining Exploration Tax Credit (B.C. METC)
This program provides a refundable tax credit equal to 20 percent of qualified mining exploration expenses less the amount of any assistance received or receivable. If the exploration expenditures are incurred in prescribed areas affected by the mountain pine beetle, the credit is increased to 30 percent.
B.C. Mining Flow-Through Share Income Tax Credit (B.C. MFTS)
An individual who invests in flow-through-shares may receive a nonrefundable tax credit equal to 20 percent of a corporation’s B.C. flowthrough mining expenditures that are transferred to the individual in a given year. B.C. flow-through mining expenditures are specific exploration expenses incurred after July 30, 2001, and renounced by a corporation issuing the flow-through shares.
B.C. Training Tax Credits
This program provides refundable tax credits for apprentices and employers who take part in apprenticeship programs administered through the Industry Training Authority.
Property Tax Credits
Mine operators and other industrial businesses can claim industrial property tax credits of 60 percent for school property taxes.
Cumulative Tax Credit
Under the Mineral Tax Act, a cumulative tax credit is a reduction of Net Revenue Tax (NRT) based on the Net Current Proceeds (NCP) Tax paid. This credit ensures that investors pay either NRT or NCP but not both.
Investment Allowance
Investors can claim an investment allowance when they file a Mineral Tax Return to allow for interest on the capital invested in the mine while it is in commercial production.
New Mine Allowance
This allowance increases by one-third the value of eligible capital expenditures for new mine developments and significant expansions brought into production before January 1, 2020. It means 133.3 percent of a mine’s qualifying capital expenditures can be added to its Cumulative Expenditure Account to reduce payable taxes once the project is complete.
Nisga’a Exemption
Under the Nisga’a Nation Taxation Agreement, a mine operating on or under Nisga’a Lands in northwestern British Columbia is exempt from provincial Mineral Tax.
Capital Cost Advantages
Corporations claiming capital cost allowances for income tax depreciation purposes in respect of certain mining activities may put individual capital assets in separate classes instead of pooling them. Eligible assets include certain production machinery and equipment.
Property Tax Exemptions
Tangible personal property, such as production machinery, business equipment, furniture, and inventories, is exempt from property tax in British Columbia.
British Columbia Incorporation Service in 24 Hours
Business Corporations are incorporated in British Columbia, according to the provisions of the British Columbia Business Corporation Act with the British Columbia Corporations Division. Company Formations Canada provides fast and easy British Columbia Incorporation Service and provides all the documents your new British Columbia corporation will need to stay up-to-date and in compliance with the British Columbia Business Corporation Act.
