The Mining Association of Canada said the country had recently fallen behind international competitors, pointing to US tax cuts, echoing a warning sounded by industry bodies earlier this year.
Several key proposals were outlined in finance minister Bill Morneau's Fall Economic Statement last week, including a long-awaited multi-year renewal of the Mineral Exploration Tax Credit.
The METC was previously renewed annually and the five-year renewal would be the first multi-year extension since its inception in 2000, which Prospectors and Developers Association of Canada interim executive director Lisa McDonald said would provide stability and allow for longer-term planning.
"Renewal of the METC for five years will help to provide greater certainty and boost confidence for investors, and signals government's appreciation of the importance of our junior exploration sector," she said.
"[This] is a major boost for mineral explorers and will help Canada recapture the top global position for mineral exploration investment," MAC president and CEO Pierre Gratton said.
Finland was ranked the most attractive jurisdiction for mining investment this year, according to the the Fraser Institute's annual survey of mining companies, although Canada was named top overall region.
Meanwhile Canadian jurisdictions, led by British Columbia, took four of the five AAA ratings in the Investment Risk Index in the recent Mining Journal World Risk Report 2018 (feat.MineHutte ratings).
MAC further welcomed the proposed accelerated investment incentive, which could enable miners to write off three times the eligible cost of newly-acquired assets in the year the investment was made.
Also, the measure allowing businesses to immediately write off the full cost of clean energy equipment would incentivise investments in northern Canada where there was no access to grid power, MAC said.
"We are hopeful that this will also include the transition currently underway to move towards the use of electric haul trucks, and other heavy equipment," Gratton said.
Morneau said the economic statement was about growing Canada's economy by investing in middle class jobs, helping businesses compete and delivering "real progress" for the middle class.