The Association for Mineral Exploration (AME) released Wednesday an economic impact assessment on the federal government’s commitment to expand eligible activities under the Canadian Exploration Expense (CEE) and broaden the critical Mineral Exploration Tax Credit (METC).  

Changes to CEE eligibility will cover engineering, feasibility, and technical costs.  The Carney government changed the METC in Budget 2025, and AME said it is optimistic the government will follow through on its CEE commitment when Budget 2026 is introduced later this year.  

Prime Minister Carney has said Canada has to cut back on obstacles to growth, in particular streamlining a complex approval process for major projects that can drag on for a decade or more. In September, he unveiled draft legislation that would speed up the approval process for major natural resource projects.

The EY report found that the government’s commitment would result in a significant return on investment. According to the report, the commitment will create as many as 34,000 full time jobs over the next ten years and $1.6 billion in additional annual mineral exploration spending.   

The report projects up to C$33 billion (23.1 billion) in total economic growth from bringing into production at least three to five mines, plus higher mineral exploration spending.   

It also forecasts a  5x return in Gross Domestic Product (GDP) for every dollar the government invests.  

“Canada has what the world needs, and we have the opportunity to secure the mineral supply chain, strengthen Canada’s military capacity and ensure Canada’s long-term national and industrial sovereignty,” AME CEO Todd Stone said in a news release.  

“We know that by expanding CEE eligibility, the federal government will help kickstart 171 mines across the country awaiting commercial production, bolstering Canada’s economic resilience and sovereignty and creating thousands of good, well-paying jobs.”   

“Right now, there is not a single public policy that the premiers are more united on that would have such a significant impact on investment here in Canada,” Stone said.  

“Over the past six months, AME has led a national campaign of more than 170 companies, Provinces, Territories and Nations supporting this policy. AME is joined by the governments of British Columbia, Alberta, Saskatchewan, Manitoba, Nova Scotia and Yukon calling on the federal government to incentivize investors by expanding the CEE in Budget 2026.”  

The full report is here.