Eligible Expenses Under the NWT Mining Incentive Program

If you are planning a mineral exploration project in the Northwest Territories, it is important to understand which costs the government will reimburse. The NWT Mining Incentive Program (MIP) covers up to 60% of eligible exploration expenses, with a maximum of $240,000 per project. However, only certain costs qualify under the program rules. This guide explains which expenses are eligible, which are not, and how to prepare your budget for a successful application.

What Counts as an Eligible Expense Under the NWT Mining Incentive Program?

The NWT Mining Incentive Program is managed by the Government of the Northwest Territories (GNWT). It supports mineral exploration at all stages, from early prospecting to advanced projects. Funding covers costs that are directly related to the approved exploration program. These expenses must be incurred during the approved funding period.

Main Eligible Expense Categories

Eligible expenses under the NWT Mining Incentive Program usually include:

Geological and geophysical work
- Mapping, sampling, trenching, and geophysical surveys
- Interpretation of geological data by qualified professionals
Drilling and field exploration
- Diamond drilling, reverse circulation drilling, and related fieldwork
- Supervision and technical support directly tied to the program
Field labour and technical personnel
- Wages and professional fees for geologists, technicians, and field crews
- Only reasonable costs directly related to exploration are allowed
Travel and accommodation
- Transportation to and from exploration sites within the NWT
- Camp costs, meals, and accommodations needed for field operations
Equipment rental and supplies
- Short-term rental of exploration equipment
- Consumables such as fuel, sampling materials, and safety supplies
Environmental and technical studies
- Baseline environmental work needed for exploration
- Technical reports connected to exploration results

The program will fund up to 60% of these eligible expenses. Your company must pay at least 40% of the costs from non-government sources.

GrantHub’s eligibility matcher can help you quickly find northern exploration programs by province or territory and funding stage.

Expenses That Are Not Eligible

Some costs might seem like they should qualify, but the NWT Mining Incentive Program does not cover them. These ineligible expenses include:

Land acquisition or mineral claim purchase costs
Corporate overhead, such as office rent or administrative salaries not tied to exploration
Capital equipment purchases meant for long-term use
Marketing, investor relations, or promotion costs
Exploration work done outside the approved timeframe
Expenses not clearly tied to the approved exploration plan

If a cost cannot be directly linked to exploration activity in the NWT, it will not be reimbursed.

How to Prepare Your Budget

A clear and detailed budget is a key part of your NWT Mining Incentive Program application. Here are some tips for preparing your budget:

Break down each expense by category, such as drilling, wages, or equipment rental.
Describe each item clearly. For example, use “diamond drilling – 500 metres” instead of “drilling costs.”
Include only costs tied to the approved exploration program and funding period.
Avoid lump sums or vague descriptions like “miscellaneous” or “other expenses.”
Double-check that each cost is reasonable and not inflated. High or unusual costs may be questioned by reviewers.

Applications with clear, detailed budgets are more likely to be approved. Reviewers from the Northwest Territories Geological Survey (NTGS) and the Department of Industry, Tourism and Investment (ITI) will check that your expenses match your work plan and benefit the NWT economy.

Common Mistakes to Avoid

Including general business overhead
Office rent or executive salaries rarely qualify unless directly tied to fieldwork.
Budgeting capital purchases instead of rentals
Buying equipment instead of renting it often makes costs ineligible.
Submitting vague expense descriptions
Line items like “miscellaneous field costs” raise red flags with reviewers.
Assuming all exploration costs are covered at 60%
Only approved and eligible expenses are reimbursed—others are excluded entirely.

Frequently Asked Questions

Q: What percentage of expenses does the NWT Mining Incentive Program cover?
The program funds up to 60% of eligible expenses, with a maximum contribution of $240,000 per project.

Q: Are employee wages eligible under the NWT Mining Incentive Program?
Yes, wages for field and technical staff are eligible if they are directly related to approved exploration activities.

Q: Can I claim expenses incurred before approval?
No. Only expenses incurred during the approved funding period are eligible.

Q: Are MIP grants taxable?
Generally, MIP funding is considered government assistance and may be taxable. You should confirm treatment with your accountant.

Q: What is the application deadline?
The current deadline is April 30, 2026, at 11:59 PM MDT.

Next Steps

Eligible expenses are the foundation of a strong NWT Mining Incentive Program application. A clear budget that matches your approved exploration activities will help your application succeed and speed up the review process. GrantHub tracks hundreds of active grant programs across Canada, including northern exploration funding—see which ones fit your project, stage, and location.

Eligible Expenses Under the NWT Mining Incentive Program