TORONTO (miningweekly.com) – Despite a reduced demand for commodities in the current tumultuous global economy, emerging economies, including China, would support commodity prices and Canada’s continuing role as a significant mining jurisdiction.
In a keynote address to the Economic Club of Canada, Scotiabank VP of economics and commodity market specialist Patricia Mohr provided a bullish outlook on minerals and metals prices over the long term, despite this year's slowdown.
In her address, Mohr looked at the fundamental drivers of the mining business, and in particular the role of China and 'emerging markets' as consumers of minerals and metals products.
While China is in transition to lower-trend growth, further industrialisation, modernisation and urbanisation would continue to drive demand for metals. Mohr pointed out that metals and minerals account for one-third of Canada's net exports of all commodities and resource-based manufactured products.
New mining plays – such as the world-class Labrador Trough iron-ore region and The Ring of Fire chromite development, in northern Ontario – would continue to provide significant economic benefits to Canada.
"Mohr's comments underscore the major opportunity for Canadians to capitalise on new investments in the mining sector, estimated to be worth $140-billion over the next decade," Mining Association of Canada (MAC) CEO Pierre Gratton said.
He noted that the keys to success would be creating an enabling regulatory environment, proactively addressing skills shortages and investing in critical infrastructure to capitalise on new projects and ensuring access to emerging markets.
Mohr's address to the Economic Club of Canada coincided with MAC's yearly ‘Mining Day on the Hill’, during which representatives of Canada's mining sector met with politicians and officials, in Ottawa, to discuss opportunities in the mining industry and related key challenges.