Cameco’s open pit mine Credit: MAC
The Mining Association of Canada (MAC) has released its annual Facts & Figures report which provides an overview of the country’s mining sector. The majority of the figures are from 2018.
Economic impact of mining
In terms of mining’s economic impact, in 2018, the minerals sector contributed $97 billion, or 5% to the total nominal GDP and accounted for 19% of the value of total domestic exports. MAC has highlighted a need for the federal government to focus on tax competitiveness and regulatory certainty to maintain Canada as an attractive destination for exploration and development investment.
Looking at the prospects for the industry, MAC notes that for the 10-year period between 2019 and 2029, the value of mining projects planned and under construction was projected at $80 billion, well below the $160 billion estimated in 2014. Also of note, between 2007 and 2018, mining direct investment abroad increased more than three-fold to $80 billion while mining foreign direct investment into Canada remained largely stagnant at $24.5 billion.
Mining is estimated to employ 626,000 people in Canada, which includes 409,000 direct jobs.
Regulatory changes at the federal level
Over the last year, a number of pieces of legislation were introduced which would impact permitting and operations. These include the federal price on carbon, tax competitiveness reforms, as well as the Impact Assessment Act, which governs how resource projects are assessed and permitted at the federal level. MAC notes that it is too early to evaluate the impact of these on mineral and energy investment. MAC also highlights that qualitative data suggests Canada’s overall competitiveness when compared with other jurisdictions is declining due to both federal and provincial regulations.
Canada’s role in mining finance
According to the report, the Toronto Stock Exchange (TSX) as well as the TSX Venture Exchange (TSX-V) together list half of the world’s publicly traded mining companies. In the last five years, the two exchanges combined raised more mining equity capital than any other exchange. In addition, MAC notes that Canada remains one of the world’s top destinations for mineral exploration investment.
To read the full report, visit www.Mining.ca.