Québec Unveils Its New Mining Tax Regime

On May 6, 2013, the Québec Minister of Finance and the Economy, Nicolas Marceau, with the Québec Minister of Natural Resources, Martine Ouellet, made public the new mining tax regime for Québec, a fiscal measure that will apply to an operator's fiscal year that begins after December 31, 2013. The new regime provides for mining taxes equal to the greater of (i) a minimum mining tax for a fiscal year, and (ii) a mining tax imposed on an operator's annual profit for the relevant fiscal year. The Mining Tax Act (Québec) will be amended to implement the new mining tax regime. These modifications will override the tax regime that was instituted under the previous government which, as of January 1, 2012, had provided for a fixed tax rate of 16% on the operating profits of a mine.