Highlights State of Canada's Mining Industry
OTTAWA, ON, June 6, 2024 /CNW/ - Today, the Mining Association of Canada (MAC) released The Mining Story – Canadian Mining Industry Facts and Figures, a report that provides an overview of current trends in Canada's mining sector based on the latest statistics and analysis.
The current state of mining and the Canadian economy is strong. In 2022, mining, quarrying and oil and gas extraction represented 7.8% of Canada's gross domestic product (GDP). The sector made up a larger portion of Canada's economy than finance, construction, transportation or retail trade. The mining sector includes extraction, mining services, primary metal/mineral manufacturing and downstream metal/mineral manufacturing. Each of these areas saw substantial increases in contribution to Canada's GDP in 2022.
- Extraction contributed $45 billion to GDP, an increase of 21% from 2021.
- Mining services contributed $10.1 billion to GDP, an increase of 50% from 2021.
- Primary metal/mineral manufacturing contributed $23 billion to GDP, an increase of 13% from 2021.
- Downstream metal/mineral manufacturing contributed $30.4 billion to GDP, an increase of 23% from 2021.
"The rebound in mineral and metal production is great to see, after a lengthy period of lower commodity prices." said Pierre Gratton, MAC's President and CEO. "As Canada and its allies seek to secure critical minerals and other mining products for the future to address national security and climate change goals, these numbers also tell us about how much wealth can come to Canada if we build out our mineral endowment."
Canada produces more than 60 minerals and metals through its mining activities. The total value of Canadian mineral production in 2022 was $74.6 billion, up from $58.6 billion in 2021. This growth was led by the increase in production values for nonmetals and coal. The total value of mineral and metal production has quadrupled since 2000. Canada is among the top producers of metals and non-metallic minerals in the world. It is the top producer of potash, second largest producer of niobium and uranium, and third largest producer of precious diamonds and palladium (by metal content).
To provide the resources that are required to accomplish our transition to a low-carbon economy, Canada must create an investment and regulatory environment that works. Over the past few years, the mining sector has heard positive commitments from the federal government, including the Canadian Critical Minerals Strategy, Fall Economic Statements, and the 2022, 2023, and 2024 Budgets. These measures, and the enhanced collaboration with allies in the European Union and US, are encouraging – but the true measure of success lies in the effective and efficient implementation of policies that will speed the delivery of Canadian minerals and metals to the global markets that are clamoring for them.
"The mining industry is an engine of Canada's economy, but current demand for our natural resources presents us with opportunities on a scale we've never seen before – efficient and effective collaboration between government, industry, and all communities of interest will ensure that our industry continues to benefit all Canadians." Added 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.
For more information on MAC's The Mining Story – Canadian Mining Industry Facts and Figure report, and its associated policy recommendations, visit: https://mining.ca/resources/reports/facts-figures-2023/
The mining industry is a major sector of Canada's economy, contributing $161 billion to the national GDP and is responsible for 21 percent of Canada's total domestic exports. Canada's mining sector employs 694,000 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.
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)
Paul Hébert, Vice President, Communications, 613.292.2876, [email protected]
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