2012-2013 budget: Quebec and natural resources
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- In connection with the Plan Nord, the Quebec government will be spending $51 million this year, primarily on studies. Of that amount, $10 million is specially earmarked for Hydro-Quebec to evaluate the feasibility of extending the hydroelectric network towards Nunavik and providing mines and Inuit villages with electricity.
- $30 million will be available for Gaz Metro, which will be analyzing the possibility of extending its gas pipeline to the North Shore as part of a project with a potential value of $750 million.
- The government has also mandated the Caisse de depôt (CDPQ) to work with Canadian National on a railway projet aimed at linking the port of Sept Iles with Kuujjuaq.
- The government will be spending $25 million this year on social and economic projects. In addition, it will be investing $19.6 million to build social housing in Nunavik.
- Municipalities will receive $70.3 million under the Quebec Infrastructure Plan in 2012 2013.
- Creation of a new Investment Quebec (IQ) subsidiary: Resources Quebec, which will be seeking to contribute to the development of Quebec’s mining and hydrocarbon sectors and to offer financial solutions to companies seeking to develop large-scale projects that are both transformative and profitable (budget envelope of $1 billion).
- $236 million already invested by IQ and transferred to Resources Quebec.
- $250 million in addition.
- Mining and Hydrocarbon Capital Fund (Fonds Capital Mines et Hydrocarbures/FCMH)
- $500 million for stakes in specific projects within the territory covered by the Plan Nord.
- $250 million for stakes in projects within the province of Quebec.
- Quebec Mining Exploration Corporation (Société québécoise d’exploration minière/SOQUEM): target of an additional $100 million in mining exploration over five years.
- Quebec Oil Initiative Corporation (Société québécoise d'initiatives pétrolières/SOQUIP): abandoned in 1995, SOQUIP will have a new government mandate in the area of hydrocarbon exploration by the end of the strategic environmental assessment process.
- Refundable income tax credit in connection with resources: rates will be lowered for virtually all companies; rates will be raised for some companies as of January 1, 2014.
- Most tax credits that can be claimed by companies that do not exploit any mineral resources or operate any oil or gas wells will be reduced by 10 percentage points; for other companies, they will be reduced by 5 percentage points.
- Companies who are planning to incur mining, oil or gas exploration expenses will be able to avoid this rate reduction in exchange for granting the government an option to acquire a stake in the operation. The options to acquire stakes will be managed by Resources Quebec, IQ’s new subsidiary.
- The investment tax credit in connection with manufacturing and processing equipment will be enhanced with the inclusion of a new category of eligible property, i.e. property acquired prior to January 1, 2018 to be used in connection with the activities of melting, refining or hydrometallurgy of minerals other than gold or silver.