Top 40 Miners Earn Big Bucks

One of the more challenging and time-consuming events on any management team’s calendar is the preparation of the company’s Annual Report. Not only is it a daunting and often frustrating task to agree on its contents and appearance, it’s also a time when the harsh realities of doing business unfold before the eyes of the world. And what’s even more concerning for some…it’s an expensive undertaking. Costly, both in terms of physically producing the Report and secondly, sometimes costly in terms of reputation and future business because of its contents.

Every component and division of the organization comes under the microscope and for some, it’s an awkward and sometimes gut-wrenching experience. Bottom lines are exposed and in some cases, those responsible would probably prefer to keep them covered up but like it or not, the Annual Report is ‘show-and-tell’ time.

In fact, it’s more than just a glossy package of photos, charts, and verbiage but moreover, it’s a lasting testiment to a company’s true worth.

Investors and probably more importantly, potential investors, devour the contents of Annual Reports and this year’s “Top 40 Miners in Canada” study (based primarily on the contents of those Annual Reports) gives readers plenty to absorb.

As in past years, the “Top 40” is a list compiled from information gathered through a number of sources including, as already mentioned, Annual Reports, plus year-end financial statements and other public information from associations and various publications.

As you are about to read, the numbers are somewhat staggering as the Canadian mining industry continues to remain strong across most sectors, especially in the area of gold where the economic slowdown pushed prices to new, all-time highs.

But there’s more than “gold in them, thar hills.”In fact, according the Mining Association of Canada’s recent “Facts & Figures” report, Canada ranks first globally in the production of potash and uranium; second in nickel and cobalt; third in titanium concentrate, aluminum, magnesium, gypsum and platinum-group metal; fourth in chrystolie and cadmium; and fifth in zinc and molybdenum.

And, oh yes, “a girl’s best friend” (diamonds) are making headlines around the world for many Canadian companies too. And by value, Canada is now the world’s third-ranked diamond producer. Canadian diamond exports totalled more than $2 billion last year, versus zero exports in 1998.

Still more interesting statistics about the Canadian mining industry and its contribution to the economy includes the fact that it employs more than 370,000 workers in mineral extraction and processing areas and it accounts for more than $40 billion worth of the country’s Gross National Product; $10 billion in mining and $30 billion in mineral processing and manufacturing.

The Canadian mining industry also exports 80% of its production and accounts for 17% of annual Canadian exports. The words “Made in Canada” truly apply and the county should be proud of those exports.

Furthermore, the industry ‘pays to play’ in that it recently paid approximately $4.7 billion to federal and provincial/territorial governments, consisting of $1.1 billion in royalties, $1.8 billion in corporate income tax, and $1.8 billion in personal income tax, including payments by the fabricated metal products and oil sands sectors that would increase the figure by an additional $4.6 billion.

What’s also interesting is that the mining industry also pays its people well. Average weekly wages and salaries in the mining industry (in 2006) was $1,108 … a level that was 15%, 15%, 22%, and 24% higher than that of workers in the finance, forestry, manufacturing, and construction sectors respectively.

And investing in people is not the only pay out mining companies make. In fact, Canadian mining companies are active investors in Research and Development. For example, a couple of years ago companies invested $54 million in extraction R&D, $274 million in primary metals R&D, and $176 metal manufacturing R&D and Statistics Canada says that more than 4600 R&D people work in the mining and minerals industry, more than the total for the agrifood, oil and gas, electrical equipment and automotive sectors combined and close to the level of the aerospace and pharmaceutical sector.

All in all, the Canadian mining industry is one of the country’s more valuable resources and Canadian Mining Journal is priviledged to be a part of it and we are especially proud to present this year’s “Top 40 Miners” in recognition of their outstanding performances and contributions to the well being of Canada.