Canada's mining industry will invest as much as $140 billion in this country over the next five years, and almost 50% of it will be in Alberta. The province will grow thanks to 12 mining projects proposed for development by 2016 with combined costs of $67.7 billion.
That was the message Mining Association of Canada (MAC) president and CEO Pierre Gratton told his audience at the recent Edmonton Economic Development's 2012 Economic Outlook Luncheon.
"There is tremendous opportunity facing the Canadian mining industry - an opportunity not seen in several generations," Gratton said. "Multi-billion dollar investments are planned in both new and existing projects in virtually every province and territory of Canada, bringing significant economic benefits, and Alberta is set to be a major player."
The $67.7 billion will be invested primarily in the oil, gas and oil sands development that Alberta is most known for, however significant investment is also anticipated in coal, limestone, salt, shale, dimension stone, ammonite shell, sandstone and sand and gravel.
"Alberta's oil sands have the third-largest proven crude oil reserve in the world and, with new projects being added every year, production increases are expected through to 2018," says Gratton. "The province also accounts for 70% of our nation's coal production, by weight."
Large capital investments provide benefits by generating provincial taxes and royalties, employment and economic spin-off service and supplier benefits. MAC provided the following statistics: Alberta royalties and mining tax revenues from oil sands and coal alone (not including corporate and personal income taxes) grew by roughly 16% between 2009 and 2010. Currently more than 140,000 Albertans are employed directly by the mining industry, and that figure is expected to increase over the next 10 years. As well, oil sands mining jobs traditionally are more stable than employment in conventional oil and gas production, which can further help buffer the province from commodity cycle fluctuations. Alberta is also home to more than 540 mining industry suppliers, the third-largest number in Canada, providing services ranging from environmental, engineering and geotechnical consulting to drilling equipment.
Learn more about MAC at www.Mining.ca.