Canada seeks alternative capital sources to reduce reliance on China and offers U.S. secure supply of critical minerals amid trade tensions
Canada will extend a tax credit on mineral exploration for two additional years as part of the government's move to support investment in exploration projects, energy, and natural resources, Natural Resources Minister Jonathan Wilkinson said on Sunday.
The mineral exploration tax credit is a capital market tool that offers investors a 15% tax credit to invest in flow-through shares of smaller mining companies. It was set to expire on March 31.
Wilkinson said the extension is to ensure that the mining sector has the tools to raise capital for exploration projects. The move is also an attempt by the government to provide companies with an alternative source of capital to China.
Canada has maintained a tough stance against investments from Chinese state-owned enterprises in domestic mining companies. It has asked at least five companies to divest investments from Chinese state-owned enterprises in Canadian-listed companies.
"There was some degree of anxiety on the part of the sector, especially the juniors (exploration companies), whether it's going to be renewed," Wilkinson said in an interview.
The extension is expected to provide C$110 million ($76.05 million) to support mineral exploration investment, he added.
The extension will be announced during the annual Prospectors and Developers Association of Canada (PDAC) conference in Toronto, one of the world's largest gatherings of mining companies and their financiers, which starts on Sunday.
Miners are bracing for a possible trade war in North America unleashed by U.S. president Donald Trump, who is threatening to impose a 25% tariff on most Canadian goods.
Miners are also watching for tougher controls on the export of critical minerals from China. Wilkinson said that Canada has pitched a mutually beneficial partnership to the U.S. by offering Washington a secure supply of critical minerals such as germanium and gallium.
"There are specific types of critical minerals that Canada has that China has been providing in large quantities to the United States, that they have now banned the export (of) into the United States," he said.
Wilkinson said his argument to U.S. officials has been that it is far better to talk about how the U.S. and Canada can help each other. Canada has prepared retaliatory measures in case Trump proceeds with tariffs on Canada and Mexico.
While Canada might not impose an export tax on metals in the first round of its counter-tariff measures, it is considering one on commodities such as zinc, copper, and nickel in the future.
"That may not be the first order of business, but certainly those are tools in the Canadian toolbox, and we're not taking any tools out right now," Wilkinson said.
A suspect crashed his truck into the hallway of a Detroit-area synagogue where children were attending preschool on T...
Iran should continue “blocking the Strait of Hormuz,” while the U....
The U.S. should shut down its military bases in the Middle East, Iran's new Supreme Leader Mojtaba Khamenei ...
Iran’s President Masoud Pezeshkian has set recognition of Tehran’s inalienable rights, payment of war ...
International security and climate change are top of the agenda as leaders and policymakers from around the world mee...
Australia and Canada said on Thursday they had signed new agreements on critical minerals as Canadian Prime Minister Mark Carney made a landmark address to the Australian parliament, a sign of the developing bond between the "middle powers".
Canadian Prime Minister Mark Carney arrived in Australia on Tuesday (3 March), aiming to bolster relations between the two so-called "middle powers" amid what he has called a "rupture" in world order.
Mexico has dispatched fresh humanitarian shipments to Cuba as fuel shortages deepen under renewed U.S. pressure, while Canada prepares assistance of its own.
Canadian Prime Minister, Mark Carney, announced on 16 February that the Honourable Janice Charette has been appointed as the next Chief Trade Negotiator to the United States. She's been tasked with overseeing the upcoming review of the Canada-United States-Mexico Agreement (CUSMA).
The U.S. should shut down its military bases in the Middle East, Iran's new Supreme Leader Mojtaba Khamenei said on Thursday (12 March). His words were read out by a broadcaster on state Iranian television.
A towering lava fountain from Kilauea shot about 400 metres into the air late on Tuesday (11 March) on Hawaii Island, prompting temporary closures at Hawaii Volcanoes National Park and part of a key highway as volcanic ash and debris fell over nearby areas.
More than 68,000 children in eastern Afghanistan have been displaced after clashes between Afghan and Pakistani forces intensified along the border, according to a new report by Save the Children.
Georgia has cancelled international tenders for the construction of major road sections that form part of a regional highway linking the country with the borders of Armenia and Azerbaijan.
Centuries-old palaces and mosques in Isfahan, Iran’s celebrated cultural capital, lie in ruins after a series of air raids struck the city’s historic centre, leaving officials to warn of a devastating loss to both national and global heritage. AnewZ’s Touraj Shiralilou visited the city.
A suspect crashed his truck into the hallway of a Detroit-area synagogue where children were attending preschool on Thursday and was shot dead following a confrontation with security personnel. Fortunately, no one else was seriously injured, according to authorities.
Freight transport on the China–Europe Railway Express grew strongly in the first two months of 2026, highlighting the growing importance of rail links between Asia and Europe. The network moved about 352,000 shipping containers between January and February, a 25% increase from a year earlier.
At least 64 people have been killed in southern Ethiopia following recent landslides and floods, the regional government’s communications office said on Thursday (12 March), citing local police
Start your day informed with AnewZ Morning Brief. Here are the top news stories for the 12th of March, covering the latest developments you need to know.
Norwegian police apprehended three brothers suspected of carrying out Sunday's (8 March) bombing at the U.S. embassy in Oslo, in an attack investigators have branded an act of terrorism.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment