The Saskatchewan Mining Association says it supports the province’s growth plan for the next decade.
In a news release, the SMA says the government’s decision to exempt the provincial sales tax on drilling for mining and exploration will help the industry expand its activities.
The association says monies saved through the PST exemption will be reinvested in more holes being drilled increasing the chances of finding new mineral deposits and extending the life of existing mines.
The SMA notes the reinvestment will help the mining supply chain sector as a whole, as about 60 per cent of goods and services for mines are purchased from Saskatchewan suppliers.
The release says in 2019 mineral exploration companies will invest over $200 million in northern Saskatchewan.
It also says the provincial mining sector employs 30,000 people in direct and indirect jobs with a payroll of $1.4 billion to direct employees.