Globe says Aziumt, others face Quebec tax hikes

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Thursday November 22 2012 - In the News

The Globe and Mail reports in its Thursday edition that Quebec's mining sector is taking comfort in the fact that Nicolas Marceau, the province's new Finance Minister, is at least willing to talk about changes to the royalty regime. The Globe's Sophie Cousineau writes Mr. Marceau's first budget, prepared in haste and unveiled Tuesday, maintains the current royalty of 16 per cent on each mine's individual profits. During the election, the PQ had vowed to replace it with new structure that would impose a 5-per-cent royalty on the value of production, coupled with a 30-per-cent "supertax" on any profits above prescribed rate of return. While some expected the budget to spell out those changes, Mr. Marceau announced that he will consult the industry first. "To open dialogue is a positive first step," said Jean-Marc Lulin chief executive officer of Azimut Exploration and outgoing president of Quebec's mining lobby. Mr. Marceau remains determined to reform Quebec's regime to collect $388-million in extra revenue. "We started working on a new framework and this regime will come into force in a matter of months," he said. The former Liberal government raised the royalty on profits to 16 per cent from 12 per cent.

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