SASKATCHEWAN ENCOURAGES VALUE-ADDED MINERAL PROCESSING

The Government of Saskatchewan has announced the introduction of a five-year Corporate Income Tax incentive for corporations that process minerals imported into the province to the prime metal stage, which has the potential for a range of positive economic effects.

"Our government is committed to enhancing Saskatchewan's capacity to add value from natural resources," Enterprise Saskatchewan Minister Ken Cheveldayoff said. "For the province at large, this incentive will mean beneficial short-term economic activity and significant long-term gain, while an increase in corporate presence will serve to further raise our national and international presence and impact."

The introduction of the five-year Corporate Income Tax incentive will provide significant encouragement for new and existing firms to establish processing facilities in the province. In order to qualify for the tax incentive, an eligible corporation must:

• Operate exclusively in the processing of imported minerals or mineral concentrate to the prime metal stage of development;
• Maintain a minimum capital investment of $125 million in the Saskatchewan operation; and
• Maintain a minimum incremental employment of 75 full-time employees in Saskatchewan.

The initial year of eligibility for the tax incentive by an eligible corporation will be the first year Saskatchewan Corporate Income Tax is payable and will extend for the following four consecutive taxation years.

"This change will significantly enhance the attractiveness of refining imported minerals in our province," Cheveldayoff said. "We hope to attract quality, high-paying jobs to Saskatchewan as a result. We believe this type of targeted tax incentive holds great potential for encouraging economic growth in our province, and simply adds to the overall attractiveness and competitiveness of our business climate - which is already considerable."

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For more information, contact:

Chris Dekker
Enterprise Saskatchewan
Saskatoon
Phone: 306-933-6744
Email: chris.dekker@enterprisesask.ca