Technology moves rapidly in the mining industry as companies compete to extract mineral resources in remote wilderness locations while minimizing their impact on the environment. Data integration, battery tech and robotics and automation are propelling the industry into the future.
How Canadian mining companies qualify for SR&ED
Capital-heavy mining operations rely on high-risk innovation to get the edge on both their competitors and the practical and technological challenges of extracting valuable metals and ores from the earth’s crust.
Canadian mining companies working on a problem that cannot be solved by current industry knowledge may benefit from the SR&ED tax credit. The R&D tax credit program allows mining companies to deduct qualifying costs of research and development work for tax purposes, or, depending on the claimant, receive tax credits. This effectively reduces the company’s tax bill.
Use our sector checklist to see if your mining company’s R&D work qualifies for SR&ED.
Mining and engineering projects have historically represented significant categories of SR&ED claims reviewed by the CRA.
Innovation in the mining industry that qualifies for Canada’s SR&ED tax credit
Here are some examples of innovative work within the mining sector that may qualify for Canadian SR&ED where they involve technological uncertainty and systematic investigation:
A new geophys survey technique
A mining company develops a new geophysical surveying technique to detect deeper ore bodies. This innovative work is eligible for the SR&ED tax credit because:
- it improves methods beyond standard practice; and
- there is uncertainty in whether the new approach will be better at detecting ore bodies than existing techniques.
More information about SR&ED eligibility from CRA.
Improve recovery rates for refractory gold
A mining company wants to improve recovery rates for gold that is not easily leached by standard methods. It experiments with different processes to deal with refractory gold, finding several that could meet its requirements. The company can apply to the SR&ED program because this work involved experimenting with materials, inputs and processes and results were uncertain.
Developing software for safer, more efficient blasting methods
A company develops specialized software that helps mine engineers control blasting operations to fragment rock in a way that minimizes vibration, preventing damage to nearby structures and ecosystems.
This software development work involved a systematic process of investigation, and targeted a technological uncertainty about the fragmenting behaviour of rock. This made it eligible for the Canadian SR&ED program.
Discover more about how Canadian SR&ED can help software developers.
Custom robotics to work in remote locations underground
A tech company builds a custom mobile inspection robot intended for use in a remote lithium mine in Quebec.
This project takes on technological challenges in integration, reliability and performance. The tech and mining company were uncertain if it was possible to build a robot inspector that was reliable and rugged enough for use in a remote location. These features make the research eligible for SR&ED.
Find out how we advise engineering companies on their SR&ED claim.
There are some mining activities that won’t be eligible for SR&ED, namely prospecting, exploring or drilling for, or producing, minerals.
How to maximize your SR&ED claim
The best way to make the most of your SR&ED claim is to get expert advice in filing it. Our dedicated tax consultants can help mining companies to plan research projects from the start in a way that optimizes their SR&ED tax claim.
To get an idea of how much a mining company can claim from the SR&ED program, use our calculator.
Why choose our SR&ED experts for mining?
Our highly committed team of professionals will give your mining research projects a comprehensive assessment to help maximise eligible SR&ED expenditures while improving claim defensibility.
There is no upfront fee when you outsource your research tax credit claim to Canadian SR&ED. We work on a contingency basis, taking as our fee a small percentage of the refund. So, there is no strain on your cash flow when you work with us.
Get in touch to learn more about the SR&ED consulting service we offer to Canadian mining companies.
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