This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 9/30/2019

Canada ranks among the top five countries in the global production of 13 major minerals and metals. Canada is also one of the largest mining nations in the world, producing more than 60 minerals and metals. The mining industry employs more than 373,000 workers across the country in mineral extraction, smelting, fabrication, and manufacturing, and indirectly employs an additional 190,000 people.

Canada also has one of the largest mining supply sectors globally with more than 3,700 companies supplying engineering, geotechnical, environmental, financial, and other services. The mining industry contributed $97 billion to Canada’s GDP in 2017 with the value of mineral production at $43.9 billion. The direct contribution to real GDP totaled $58.4 billion, a 1.4% increase year-over-year; while the sector's contribution to nominal GDP totaled $72 billion, an 11% increase year-over-year. The industry accounted for 19% ($97 billion) of the value of Canadian goods exports in 2017.  According to Trade Economics, “Mining production in Canada averaged 1.92 percent from 1998 until 2019, reaching an all-time high of 23.15 percentage in May of 2017 and a record low of -16.41 percent in August of 2009.”

Market Snapshot
Total mining establishments: 1,201 
Metals: 65 
Non-metals: 1,136 
Value of mining 2016 Canada-wide: $40.8 billion 

TOP 4 PROVINCES (US$)
Ontario: $10.5 billion
Québec: $8.6 billion
British Columbia: $6.3 billion
Saskatchewan: $5.5 billion

The table below shows the 2019 estimates based off the 2015-18 numbers. While the numbers are just estimates, they show a fair amount of increase in total exports and a slight decrease in total imports, with a substantial amount of those imports coming from the US.

Table: Canada Mining, Oil and Gas Machinery by North American Industry Classification System (NAICS)-33313 Production Data (US$ Thousands)

 

2015

2016

2017

2018

2019 (Estimates)

Total Exports 

1,284,285 

973,418 

1,133,359 

1,281,000

1,303,427

Total Imports 

1,615,817  

1,026,363  

1,221,687 

1, 351,000

1,320,086

Imports from the U.S.

713,861 

481,477 

553,180 

589,691

567,954

(total market size = (total local production + imports) - exports)

Sub-Sector Best Prospects

  • Environmental remediation services

  • Exploration, drilling, and mine construction services

  • Gold output is expected to climb, with 2.2% annual growth

  • Mining equipment replacement parts

  • Mining safety and security equipment and services

  • Nickel production will continue to grow in Canada

  • Specialty mining

 

Opportunities

Canada will remain a preeminent mining destination due to vast mineral reserves, stable political and economic environment, and strong capital markets. In 2014, uncertainty over the short-term global economic outlook caused commodity prices to decline.  However, in 2017, healthier commodity prices sent signals that there would be an upswing in the next few years. The Canadian market is promising, as it is forecasted that the conglomerate mining industry will grow from US$19 billion in 2017 to US$21 billion by 2020, averaging 2.4 percent annual growth per year. This growth will provide numerous opportunities for U.S. firms to enter the Canadian market.

One of the largest market opportunities derives from the lack of critical infrastructure in many of Canada’s mining regions. Roads, ports, railways, and power grids often are not available in remote and northern regions of Canada where mining development opportunities are located. Another large series of opportunities are in the Northern Plan (“Plan Nord”) Mining Projects, redesigned in 2015 to attract $50 billion in anticipated investment by 2035. This project is expected to bring thousands of construction and permanent jobs to these northern regions.

Rubicon Minerals, a Canadian gold mining company has recently released a new preliminary economic assessment (PEA) to analyze a better geological model, which has been faulty in the past. Based on a March 2019 resource, the PEA shows a project that will cost $101 million to put back into production and will produce 76,610 oz. gold per year over a mine life of 6 years.

Another major opportunity for growth in the mining industry is the global transition into a low-carbon future. With minerals and metals being the building blocks for low carbon technologies, the demand for mining products will increase drastically due to increased use of wind, solar and energy storage.

Canada has rich deposits in many of the minerals and metals needed for renewable energy technologies. Canada also has 14 of the 19 metals and minerals needed to make a solar PV panel. The mining industry has already taken initiatives to transfer towards a low carbon future with Canada hosting some of the lowest carbon-intensive mines in the world. Canada is a leading producer of responsibly-sourced mineral and metal products globally and can become the world’s leading supplier of inputs for a lower carbon economy.

In 2014, the Government of Canada approved Seabridge Gold's KSM project in northwest British Columbia, seen as the world's largest undeveloped gold project based on mineral reserves. In total, Seabridge budgeted $19.7 million for about 28,000 meters of drilling and surface work in their 2018 exploration program. The company expects ensuing production to contribute more than $400 million in GDP for British Columbia and more than $42 billion for Canada over the life of the mine. Seabridge also holds a 100% interest in the Courageous Lake gold project located in Canada’s Northwest Territories. The company incurred a $10.3 million net loss for the year ended December 31, 2017.

According to the Fraser Institute’s 2018 annual survey of mining and exploration companies, Quebec came in fourth place in the Investment Attractiveness Index. Manitoba moved up to second place this year, after ranking 19th the previous year. An overall Investment Attractiveness Index is constructed by combining the Best Practices Mineral Potential index, which rates regions based on their geologic attractiveness, and the Policy Perception Index (PPI), a composite index that measures the effects of government policy on attitudes toward exploration investment. Meanwhile, the (PPI) lists Saskatchewan in second place, while Manitoba and New Brunswick rank among the top 10.

Upcoming Events/Trade Shows
COPPER CU2019
http://com.metsoc.org/
Vancouver, British Columbia
August 18-21, 2019
 
National Mining Association (NMA) MINExpo
http://www.minexpo.com/
Las Vegas, Nevada
September 28-30, 2020

Canadian Institute of Mining, Metallurgy, and Petroleum (CIM) Convention
http://convention.cim.org/
Vancouver, British Columbia
May 3-6, 2020

Web Resources 


For additional information on this sector, please contact Commercial Specialist Connie Haider at Connie.Haider@trade.gov, tel: 403-265-2115
 

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.