OTTAWA, ON, Sept. 15, 2026 /CNW/ -- The Mining Association of Canada (MAC) welcomes today's announcement by the Government of Canada of the Productivity Mega Deduction, a permanent measure allowing businesses to fully write off the cost of most new capital assets in the year they're put to use. 

For Canada's mining industry, the Productivity Mega Deduction would allow companies to immediately deduct the full cost of a broad range of eligible depreciable assets acquired on or after September 15, 2026, once those assets are available for use. This could include a broad range of machinery, equipment and infrastructure used to build, operate, modernize or expand mines, as well as equipment used in mineral processing, smelting and refining. Qualifying Canadian development expenses incurred from that date would also be immediately deductible, including costs associated with developing new mines and qualifying development work at existing operations.

Mining projects require enormous upfront investment, often years before they begin generating revenue. Receiving these deductions sooner will improve project cash flow and net present value, lower the effective cost of investments in equipment and mine development, and could help some marginal projects or brownfield expansions meet companies' investment thresholds. Making immediate expensing permanent will also provide greater certainty for the long-term investment decisions needed to bring new mines into production, extend the life of existing operations and strengthen Canada's mineral-processing capacity.

Importantly, the measure is broadly commodity-agnostic. This broad eligibility is especially valuable in mining, where projects frequently produce multiple minerals and investment decisions must account for changing markets over the long life of a mine.

"Today's announcement by Prime Minister Carney is transformative. With these announced new measures, Canada will become one of, if not the most, competitive mining tax jurisdiction in the world," said Pierre Gratton, President and CEO of MAC. "It will usher in a new age of new mining investment, spurring job creation, supporting local and Indigenous businesses and increasing Canada's supply of the minerals and metals the world needs and wants from a trusted country like ours. We expect these measures to have demonstrable effect in the near to medium term."

For mining, timing matters: Canada is competing with other jurisdictions for the investment needed to build out mineral supply chains, from base metals like nickel and copper to the critical minerals that allies are counting on. By covering all of mining rather than a narrower list of commodities, the Productivity Mega Deduction stands to mark a turning point for investment across the sector and builds on Canada's growing strength in other commodities like gold and precious metals.

About the Mining Association of Canada (MAC) 

The Mining Association of Canada is the national organization for the Canadian mining industry. Its members account for most of Canada's production of base and precious metals, uranium, diamonds, metallurgical coal, mined oil sands and industrial minerals and are actively engaged in mineral exploration, mining, smelting, refining and semi-fabrication.  

SOURCE The Mining Association of Canada