Plan Nord – Québec’s New Mining Royalty Regime

On May 6, 2013, the Québec government revealed its long-awaited mining royalty and tax regime in an official document titled "A New Mining Tax Regime: Fair for All," available here.

In an Update on March 13, 2013, Osler reported on the proposed mining royalty and tax regime announced in the Québec government's initial consultation paper. As reported at that time, a hybrid royalty scheme was proposed, consisting of a 5% royalty based on the value of the extracted minerals (i.e., ad valorem) and an additional tax on profits that could be calculated on the profit margin of a mine, based either (i) on a rate increasing in lock step with the mine's profitability (i.e., progressive taxation) or (ii) on the taxation of "super-profits," based on a 30% fixed rate.