Vancouver - The Mining Association of BC expressed its support for the 2009 federal budget, which includes a number of measures designed to stimulate Canada’s struggling economy.

"The federal government has responded in a very comprehensive way to support Canada’s struggling economy hammered by an unprecedented global financial crisis," stated Pierre Gratton, President and CEO of the MABC.  “A number of the budget initiatives specifically target priorities identified by the mining industry, most notably measures to address the liquidity crisis facing all industry at this time."

The federal budget responds to gaps in credit markets by providing up to $200 billion through an Extraordinary Financing Framework for households and businesses.  These funds will enhance secured credit facilities and lenders assurance facilities and also increase capital flows to key institutions such as the Export Development Bank, the Business Development Bank of Canada and the Canada Mortgage Housing Corporation.

Another notable federal budget commitment includes plans to accelerate the project approval processes through legislative, regulatory and administrative measures, including amendments to the Navigable Waters Protection Act, streamlining the administration of the Fisheries Act and the application of the Canadian Environmental Protection Act.

"The federal process is too long, unpredictable and uncertain and the time has come for major changes in how the federal government conducts project review," added Gratton.  "Some BC mining projects might be operating today, supporting BC’s economy, were it not for federal delays.  The budget’s commitment to move towards reforms and greater delegation of EA processes to the province is urgently needed."

Other budget announcements supportive of the mining industry include an extension of the 15 percent Mineral Exploration Tax Credit, adjustments to the EI Work-Sharing program, a two-year extension of the 50% accelerated capital cost allowance rate for machinery and equipment, lowering tariffs on a range of machinery and equipment, additional funding for the Aboriginal Skills and Employment Partnership Initiative, a proposal to create a Canadian Securities Regulator with willing provinces and a $1 billion Community Adjustment Fund for resource dependent communities.

The MABC is the predominant voice of BC’s mining industry, representing the majority of BC’s mineral and metal producers.

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For more information, contact:                     
Pierre Gratton                           
1-604-681-4321, ext. 120