Economic Impacts and Drivers for the Global Energy Transition Report Highlights State of Canada's Mining Industry

OTTAWA, ON, May 10, 2023 /CNW/ - Today, the Mining Association of Canada (MAC) released Economic Impacts and Drivers for the Global Energy Transition, a report that provides an overview of current trends in Canada's mining sector based on updated statistics and analysis. The latest data is showing a strong return to form with recent increased policy supports expected to ensure the sector is able to supply the minerals, metals and energy products essential to Canada and its allies.

"As one of the lowest carbon-intensity producers of mined products in the world, Canada fulfills the need for minerals and metals better, and with higher environmental and social standards, than most competing mining jurisdictions," said Pierre Gratton, MAC's President and CEO. "Building green economy value chains provides a once-in-a-generation chance for Canada. We can be a key player in the economy of the future if we seize the opportunity before us."

The mining industry continues to be a critically important part of Canada's economy, and contributed $125 billion to the GDP in 2021, 5% of the total. Mining, quarrying and oil and gas extraction made up 7.9% of Canada's $2 trillion gross domestic product. In 2021, the sector made up a larger portion of Canada's economy than finance, construction, transportation or retail trade. The mining industry is responsible for 665,000 jobs in communities from coast to coast to coast and proportionally continues to be the largest private sector employer of Indigenous peoples.

To provide the resources that are required, Canada must create an investment and regulatory environment that works. Over the past 12 months the mining sector has seen positive commitments from the federal government, including the Canadian Critical Minerals Strategy, the 2022 Fall Economic Statement, and the 2022 and 2023 Budgets. Budget 2023 also included a commitment to a strategy to improve overall timelines for new projects by this fall.  These measures, and the enhanced collaboration with allies in the European Union and US, are encouraging.

"Recent commitments, specifically those included in Budget 2023, will improve our industry's ability to provide the minerals and metals integral to low-carbon technologies and the energy transition – this is good news as time is of the essence if we are to establish Canada as the global mining supplier of choice," said Gratton.

The report proposes a number of recommendations that will enhance the Canadian mining sector's competitiveness, including investments in areas like:

• Mineral Processing – In order to remain competitive, Canada should enhance domestic levels of mineral production through investment in mining and mineral processing.
• Exploration – In order to increase mineral production, Canadian governments should undertake comprehensive mineral resource assessments so they can include mineral potential in regional assessments and land management decisions. This is particularly true of northern Canada, where the potential for new discoveries is high.
• Infrastructure – Substantial investment in building the economic backbones of road, rail, power lines and communication lines will ensure that Canadians can benefit from the rich natural resources of our country. Enhanced infrastructure investments are particularly important to Canada's North where the infrastructure deficit brings significant challenges. 
• Workforce – The demand for skilled labour is increasing, and recruiting and retaining a diverse, skilled and knowledgeable mining workforce is essential.  Given the key role Indigenous peoples in particular play in Canada's mining sector, the federal government should continue to support Indigenous skills training programs, including the Indigenous Skills and Employment Training Strategy.

"Canada should be the top jurisdiction in the world to invest and explore, but we do face challenges. We are no longer a top producer of minerals critical for a low-carbon economy and many minerals are not being produced at the levels they were a decade ago," continued Gratton. "The stakes have never been higher and this year's report demonstrates that, with the right supports, our industry will be better able to provide the sustainably produced products essential to businesses and the public, both domestically and for our allies across the globe."

For more information on MAC's Economic Impacts and Drivers for the Global Energy Transition report, and its associated policy recommendations, visit: https://mining.ca/resources/reports/mac-report-2023/.     

The mining industry is a major sector of Canada's economy, contributing $125 billion to the national GDP and is responsible for 22 percent of Canada's total domestic exports. Canada's mining sector employs 665,000 people directly and indirectly across the country. The industry is proportionally the largest private sector employer of Indigenous peoples in Canada and a major customer of Indigenous-owned businesses.

About MAC

The Mining Association of Canada is the national organization for the Canadian mining industry. Its members account for most of Canada's production of base and precious metals, uranium, diamonds, metallurgical coal and mined oil sands, and are actively engaged in mineral exploration, mining, smelting, refining and semi-fabrication. Please visit www.mining.ca.   

SOURCE Mining Association of Canada (MAC)

Cynthia Waldmeier, Senior Director of Communications and Public Affairs, [phone] x225, 613-894-2128 (cell) or [email protected]