TORONTO (miningweekly.com) – World interest in Canadian minerals and metals reached a record high in 2011 as measured by exploration spending, the Mining Association of Canada's (MAC’s) new 'Facts & Figures 2012' report has found.
Exploration investment in Canada reached C$3.9-billion in 2011, with spending for 2012 expected to have climbed even higher.
"The growth in exploration spending in Canada over the past decade has been remarkable. Despite challenges, such as reduced access to capital for some miners, buoyant mineral prices have increased company willingness to invest significantly in the location and development of certain minerals and metals in Canada,” MAC president and CEO Pierre Gratton said in a statement.
The report found that from 2002 to 2011, exploration spending grew by 585%.
Worldwide in 2011, Canada was the top destination for exploration spending, hosting 18% of global investment. Canada's three territories together received 22% of total 2011 exploration spending. This amount, more than three times the territories' share of production value, reflects growing interest in Canada's northern mineral potential.
Canadian mineral production value rose 21% to a record C$50.3-billion in 2011 as mineral prices went up. While well-established mining provinces continued to dominate in mineral production, with Ontario at C$10.6-billion, Saskatchewan at C$9.2-billion, British Columbia at C$8.5-billion and Quebec at C$7.7-billion seizing the top four spots, there were notable increases in other regions.
For example, Newfoundland and Labrador's mineral production value reached C$5.1-billion in 2011 - a six-fold increase over the last decade.
The industry exported a record C$101.9-billion worth of metals, nonmetals and coal in 2011, accounting for 22.8% of Canada's total exports. The same year, the industry contributed $35.6-billion to the national gross domestic product, paid over C$9-billion in taxes and royalties to Canadian governments and employed 320 000 workers across the country.
"As exploration activity and mineral production are intrinsically linked, the Canadian mining industry could see a dramatic expansion in the years to come. While some volatility is anticipated, the larger determinant in capitalising on the opportunities before us is to ensure the industry has access to the right investment and regulatory environments it needs to support development," Gratton said.
In looking to 2013, the report stressed that despite challenges, the Canadian mining industry's economic prospects are strong. "Regardless of concerns over the growth rates of China and other emerging markets, it is widely held that growth, even if at a moderately reduced pace, is likely to remain strong over the long term," Gratton said.