The gouvernement du Québec has brought forward a substantial revision of the mining duties regime with the objectives of:

• Improving the regime’s profitability for the government, without compromising the competitiveness
• Simplifying the application of the regime and reducing the administrative burden
• Stimulating mining development in northern Québec
• Adapting the regime for the development of diamonds

The calculation method of an operator’s annual profit is based on a mine-by-mine approach. This approach applies to an operator’s fiscal year beginning after March 30, 2010. Losses relating to one mine may not be applied to reduce the profits of another mine.

In addition, this revised is characterized by:

1. the concept of eligible operator
2. a mining duties rate increasing gradually
3. a gradual rise of the rate applied to the credit on duties refundable for losses
4. changes to the following allowances :
   • Additional Allowance for a Mine Located in Northern Québec
   • Depreciation Allowance
   • Exploration Allowance
   • Allowance for Mineral Deposit Evaluation and Mine Development before Production
   • Allowance for Mineral Deposit Evaluation and Mine Development after Production
   • Processing Allowance
5. new rules that apply to work financed by flow-through shares by which certain expense are excluded
6. special rules which will apply to the determination of the value of precious stones
7. the continuance of environmental trust

See also

• Budget excerpt – Revision of the mining duties regime
• Previous Act