Ottawa, October 8, 2026: Canada’s mining sector could deliver a significant economic boost if the federal government expands tax incentives for mineral exploration and project development, according to a new economic impact assessment commissioned by the Association for Mineral Exploration (AME).
The assessment by EY-Parthenon estimates that proposed changes to Canada’s mineral exploration incentives could generate up to C$33 billion in economic growth, including the development of at least three to five new mines and increased exploration activity. The report also projects as many as 34,000 full-time jobs over the next decade.
Tax Incentives Could Accelerate Mine Development
AME is supporting an expansion of eligible activities under the Canadian Exploration Expense (CEE) program. The proposed changes would allow certain project-advancement activities, including engineering, technical studies and feasibility work, to qualify for exploration-related tax treatment.
According to the assessment, the reforms could attract an additional C$1.6 billion in annual mineral exploration spending and accelerate the pipeline of projects moving from discovery toward construction and production.
AME has highlighted the importance of addressing the financing gap that often emerges between mineral discovery and mine development. The organization says Canada currently has 171 advanced critical-mineral projects that could benefit from improved access to capital and project-development incentives.
Critical Minerals Become Strategic Priority
The report comes as Canada seeks to strengthen its position in the global critical-minerals supply chain. Ottawa has committed billions of dollars to infrastructure, exploration and mine-to-market initiatives, with the government saying the sector can support jobs, regional development, national security and industrial supply chains.
Canada’s exploration activity is also showing strong momentum. Natural Resources Canada says planned mineral exploration and deposit-appraisal spending for 2026 is expected to rise 21% to C$5.3 billion, which would be a record if achieved.
AME argues that encouraging more exploration and bringing viable discoveries into production could generate long-term economic benefits while strengthening domestic supplies of minerals needed for electrification, defence, infrastructure and advanced technologies.