How Canada's Mining Sector Impacts the Economy
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How Canada’s Mining Sector Impacts the Economy

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Canada is a mining nation.

From the Rockies to the Canadian Shield, and from the Plains and to the North, the variety of geology that exists in the country is immense – and this has created a large and unique opportunity for groundbreaking mineral discoveries.

As a result, Canada is one of the world’s largest exporters of minerals and metals, supplying approximately 60 different mineral commodities to over 100 countries.

An Intro to Canadian Mining

Today’s infographic comes to us from Canadian Minerals and Metals Plan and it highlights an industry that has given Canada a competitive advantage in the global economy.

How Canada's Mining Sector Impacts the Economy

The mineral sector brings jobs, investment, and business to Canada.

This impact stems from the whole lifecycle of mining, including exploration, extraction, primary processing, design, and manufacturing processes.

Economic Impact

Last year, the minerals sector contributed $72 billion to Canada’s GDP.

Here are the major minerals produced in Canada in 2017, along with their dollar value:

RankMineralValue (2017)Production (2017)
#1Gold$8,700,000,000164,313 kg
#2Coal$6,200,000,00059,893,000 tonnes
#3Copper$4,700,000,000584,000 tonnes
#4Potash$4,600,000,00012,214,000 tonnes
#5Iron Ore$3,800,000,00049,009,000 tonnes
#6Nickel$2,700,000,000201,000 tonnes
#7Diamonds$2,600,000,00022,724,000 karats

According to S&P Global Market Intelligence, more non-ferrous mineral exploration dollars come to Canada than to any other country. In 2017, roughly $1.1 billion – or about 14% of global exploration spending – was allocated to Canada, which edged out Australia for the top spot globally.

Mining and Communities

From mining in remote communities to the legal and financial activities in urban centers such as Vancouver or Toronto, mining touches all Canadian communities.

According to a study commissioned by the Ontario Mining Association, the economic impact of one new gold mine in Ontario can create ~4,000 jobs during construction and production, and can contribute $38 to $43 million to the economy once operating.

Further, more than 16,500 Indigenous peoples were employed in the mineral sector in 2016, accounting for 11.6% of the mining industry labor force, making it the second largest private sector employee.

Innovation Drives Canadian Mining

Canada has an established network of academic thinkers, business associations, financial capital, and government programs that support and promote new technologies that can help set a standard for mining worldwide.

Here are a few examples of innovation at work:

  1. CanmetMINING is currently researching the implementation of hydrogen power to replace the use of diesel fuel in operating underground mines. Once this technology adopted, it could reduce the GHG emission footprint of underground mines by 25% and improve the health of workers in mines by reducing their exposure to diesel exhaust.
  2. New technology is turning what was once mine waste into a potential source for minerals. In the past three decades, six billion tonnes of mine tailings have accumulated with a potential value of US$10 billion. Reprocessing this waste can produce significant recoveries of rare earth elements, gold, nickel, cobalt and other valuable minerals.
  3. Artificial intelligence and new remote-control technology can be deployed to operate mining equipment and find new discoveries.

All these innovations are going to change the nature of working in mines, while creating high-paid jobs and demand for an educated labor force.

Opportunity for Future Generations

A large number of Canadian miners are expected to retire over the next decade. In fact, Canada’s Mining Industry Human Resources Council (MiHR) forecasts 87,830 workers at a minimum will have to be hired over the next ten years.

With game-changing technologies on the horizon, there will be plenty of opportunities for a new generation of high-tech miners. The future bodes well for Canadian mining.

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Mining

Visualizing the New Era of Gold Mining

This infographic highlights the need for new gold mining projects and shows the next generation of America’s gold deposits.

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gold mining
The following content is sponsored by NOVAGOLD
gold mining

Visualizing the New Era of Gold Mining

Between 2011 and 2020, the number of major gold discoveries fell by 70% relative to 2001-2010. 

The lack of discoveries, alongside stagnating gold production, has cast a shadow of doubt on the future of gold supply. 

This infographic sponsored by Novagold highlights the need for new gold mining projects with a focus on the company’s Donlin Gold project in Alaska.

The Current State of Gold Production

Between 2010 and 2021, gold production increased steadily until 2018, before leveling and falling.

YearGold Production, tonnesYoY % Change
20102,560-
20112,6603.9%
20122,6901.1%
20132,8004.1%
20142,9906.8%
20153,1003.7%
20163,1100.3%
20173,2303.9%
20183,3002.2%
20193,3000.0%
20203,030-8.2%
20213,000-1.0%

Along with a small decrease in gold production from 2020 levels, there were no new major gold discoveries in 2021. Meanwhile, annual demand for the yellow metal increased by 10%, up from 3,651 tonnes to 4,020 tonnes

The fall in production and long-term lack of gold discoveries point towards a possible imbalance in gold supply and demand. This calls for the introduction of new gold development projects that can fill the supply-demand gap in the future. 

Sustaining Supply: Gold For the Future

Jurisdictions play an important role when looking for projects that could sustain gold production well into the future.

From political stability to trustworthy legal systems, the characteristics of a jurisdiction can make or break mining projects. Amid ongoing market uncertainty, political turmoil, and resource nationalism, projects in safe jurisdictions offer a better investment opportunity for investors and mining companies. 

As of 2021, seven of the top 10 mining jurisdictions for investment were located in North America, according to the Fraser Institute. Here’s a look at the top five gold-focused development projects in the region, based on measured and indicated (M&I) gold resources: 

ProjectM&I Gold Resource, million ounces*Grade (grams/tonne)Location
KSM88.4Moz0.51g/tBritish Columbia 🇨🇦
Donlin Gold**39.0Moz2.24g/tAlaska 🇺🇸
Livengood13.6Moz0.60g/tAlaska 🇺🇸
Côté Gold13.6Moz0.96g/tOntario 🇨🇦
Blackwater11.7Moz0.61g/tBritish Columbia 🇨🇦

*Inclusive of mineral reserves. **See cautionary statement regarding Donlin Gold’s mineral reserves and resources.

Located in Alaska, one of the world’s safest mining jurisdictions, Novagold’s Donlin Gold project has the highest average grade of gold among these major projects. For every tonne of ore, Donlin Gold offers 2.24 grams of gold, which is more than twice the global average grade of 1.03g/t. 

Additionally, Donlin Gold is the second-largest gold-focused development project in the Americas, with over 39 million ounces of gold in M&I resources inclusive of reserves. 

Novagold is focused on the Donlin Gold project in equal partnership with Barrick Gold. Click here to learn more now

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