Despite lower prices for most mineral commodities, the total value of Canadian mineral production in 2015 was $42.8 billion, only -2.6% lower than the 2014 value of $43.9 billion.
The mining industry continues to face headwinds that include slower global growth and excess supply for most minerals, which were partly offset by favorable exchange rates. The Canadian mining sector models its resilience and sustainability in a difficult market. Here are ten factors that contribute to its strength:
1. Mineral Production
Canada produces more than 60 mineral commodities at more than 200 principal mines and 7 000 sand and gravel pits and stone quarries. The total value of mineral production in Canada was almost $43 billion in 2015.
2. Gross Domestic Product
The mining, mining-related support activities, and mineral processing industries represented $66.9 million (3.6% of Canada’s total 2014 GDP).
3. Green Mining
The mining sector is achieving 99% compliance with the prescribed emission limits for arsenic, copper, nickel, zinc, radium 226, and pH; close to 99% for cyanide; and 100% for lead.
375 000 Canadians were employed in the mining, mining-related support activities, and mineral processing industries in 2014.
Canada’s mineral commodity exports – which include ores, concentrates, and semi- and final-fabricated mineral products – accounted for 18.2% ($89.5 billion) of Canadian total domestic exports.
6. Stock Exchanges
Nearly 60% of the world’s publicly listed mining and exploration companies (1 500) are listed on the TSX or TXX-V.
In 2014, Canada was first in equity financing raised for mining and mineral exploration with over 60% ($8.9 billion) of the world’s equity financing raised by companies listed on the TSX or TSX-V.
8. Indigenous Representation
The mining and mineral processing sector employs more than 10 000 Indigenous people, mostly in upstream activities such as mining and quarrying.
9. Mining Assets Abroad
Canadian exploration and mining companies had mining assets abroad worth almost $170 billion in more than 100 countries in 2014.
10. Research and development
$677 million in research and development expenditures by Canadian mining, mining-related support, and mineral processing companies in 2013. 4 560 people were engaged in mining, mining-related support activities, and mineral processing research and development in 2013.
GRC for Mining Benefits
For the last 20 years, IsoMetrix has been providing the mining industry with specialized solutions for the management of Governance, Risk, and Compliance (GRC). The extractive industry constitutes approximately half of IsoMetrix customer base.
Aware of the strength of the Canadian extractive sector, IsoMetrix has established a new office in Toronto, last year, to serve as an entry-point for its expansion into the North American market.
The IsoMetrix range of solutions supports the mining industry in managing all aspects of Governance, Risk, and Compliance across a mine life cycle. Learn more about GRC for mining.
About the Author
Benoit Froment was appointed as Director: North America for Metrix Software Solutions in October 2015. Benoit is responsible for leading the IsoMetrix operations in the US and Canada, including Sales and Marketing, Implementation and Customer Support. He is also an IsoMetrix Subject Matter Expert in Social Sustainability.