About half of the world’s publicly listed mining and exploration companies are listed on Canada's TSX and TSXV and the country ranks as the sixth largest energy producer in the world. Canada's abundance of natural resources, global market access and commitment to emissions reducing technology make it a prime investment location for forward-thinking energy, minerals and metals, and forest sector companies. Closely linked to Canada’s cleantech industry, the natural resources sector is constantly evolving to meet the need for cleaner energy and mining solutions, while supplying world demand.
For BP, Canada is one of the better places to invest in the world. It is a stable economy; it has a stable political system. It has pragmatic regulations that allow us to be both safe and efficient. It has great people…just great talent locally.
Oil and gas in Canada
Home to 10% of global oil reserves, Canada is the fourth largest oil producer in the world. The Canadian oil and gas industry is characterized by unparalleled market access, well-integrated coast-to-coast transportation infrastructure and an innovative approach to clean resource development. Since 2000, GHG emissions per barrel of oil produced in Alberta’s oil sands, have fallen 28%, notably as a result of technological and efficiency improvements.
Minerals and metals in Canada
Key strengths of Canada’s mineral sector include abundant mineral and metal resources, sustainable mineral development, sophisticated financial institutions, broad expertise in geoscience and an extensive science and technology network. Globally, Canada ranks in the top 3 for potash, uranium, niobium, nickel, gemstones, cobalt, aluminum, and platinum group metals.
Forest industry in Canada
Heavily concentrated in Quebec, British Columbia and Ontario, the Canadian forest industry is the second largest softwood lumber producer in the world and exports to 180 countries. Increasing demand for wood products from emerging economies, along with the growing need for alternative energy sources—including biomass—are creating new opportunities for companies investing in Canada’s forest industry.
Investing in natural resources in Canada
Canada is the largest supplier of crude oil and refined petroleum products to the United States and has active infrastructure development for delivering crude oil and natural gas supplies to Asian and European markets. Shipping times to Asia from Canada's west coast LNG projects are about ten days shorter than from the U.S. Gulf Coast, giving investors a significant cost advantage.
With an integrated system of coast-to-coast rail lines, a 760,000 km-long pipeline system and several expansion proposals, Canadian oil, gas and overall energy production, is well connected to domestic and export markets.
The Mineral Exploration Tax Credit (METC) helps exploration companies raise equity funds by passing on tax credits to investors on eligible expenses. The 15% non-refundable tax credit can be applied against investors’ federal income tax that would otherwise be payable for the taxation year in which the investment was made.
Flow-Through Shares (FTS) allow foreign investors to transfer eligible exploration and development expenses to their beneficial owners, which can then be applied for tax credits for these expenditures. This feature generates attractive prices for FTS, enabling investors involved in the exploration, drilling, production, refining or pipeline operation to fund its activities more easily.