PDAC hails two-year METC renewal as boost for Canadian exploration

The Prospectors and Developers Association of Canada (PDAC) said the federal government’s two‑year renewal of the Mineral Exploration Tax Credit (METC) in Budget 2025 will help restore exploration momentum and bolster Canada’s competitiveness.

The Prospectors and Developers Association of Canada represents the mineral exploration and development sector. The association said the industry employed over 724,000 people and contributed $156 billion to Canada’s GDP in 2024.

Karen Rees, PDAC president, said: "Today's renewal of the METC is the right move at the right moment. It restores confidence, signals that Canada intends to compete for exploration capital, and will help drive the discoveries that feed our supply chains. This decision supports jobs and partnerships in rural, remote and Indigenous communities and lays the groundwork for a stronger, more resilient Canadian economy."

Rees added: "We are encouraged that the government recognizes the importance of driving investment into exploration and development. These measures will better position Canada to discover the minerals needed to spur growth, bolster national security and play a strong role with our allies."

Introduced in 2000, the METC works with flow‑through shares to direct high‑risk, early‑stage capital to grassroots exploration nationwide. PDAC noted the measure mobilizes significant private investment with no direct public expenditure, supports jobs and generates tax revenue for local communities.

PDAC warned that Canada’s mineral sector had been under pressure in 2025, with investment leaving domestic markets and the link between new discoveries and supply chains weakening. The association said the METC renewal will help keep risk capital flowing to early‑stage programs and sustain the project pipeline needed for future mines. PDAC reiterated its call for a longer‑term METC commitment to provide market certainty and protect investment.

PDAC also welcomed the government’s decision to expand eligibility for the Critical Mineral Exploration Tax Credit (CMETC) to 12 additional minerals and to commit $2 billion to a critical minerals sovereign fund.

More information is posted on www.Pdac.ca.