The Attractiveness of New Brunswick to Mineral Investors

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University of New Brunswick
The attractiveness of an area to mineral investors depends on both geological and non geological factors. In a Canadian context, each province may be ranked in terms of attractiveness depending on the relative benefits offered to the industry. Mineral wealth and mineral potential are the two most important factors. New Brunswick has a rich and diversified mineral heritage. Geological and technical infrastructures, in New Brunswick, are adequate. The labour force is mature, well trained, productive and affordable. Taxation is the most important non geological factor. Mining companies face federal and provincial corporate income taxes, provincial mining taxes and royalties and provincial non profit taxes. Total tax payments across Canada can be compared by modelling hypothetical mines. Such models show that for some typical base-metal deposits, New Brunswick offers benefits that ranks it fourth or fifth in the country. New Brunswick offers a fair tax treatment. There is not enough secondary processing and downstream manufacturing in the Province. Royalties have been found to provide for an inefficient use of resources and place junior mining companies at a disadvantage relative to larger integrated companies.