OTTAWA—The Mining Association of Canada (MAC) has released its annual Facts & Figures report, an overview of trends in the industry including current and future capital spending projections that are expected to rise significantly.
The report addresses challenges stemming from the pandemic, investment competitiveness, supply chain issues, labour market shortages and areas of opportunity, particularly in the critical minerals sector, states a release.
The document reports that year-over-year mineral development expenditures in 2020 are projected to grow from $9.7 billion to $13.6 billion, an increase exceeding 40 per cent. A probable major driver of this investment increase is the rise in mineral and metal prices.
A new project by BHP is cited – the world’s largest mining company has announced it has approved spending $7.5 billion to begin building the Jansen mine, located in Saskatchewan. The project qualifies as the second largest single mining investment in Canadian history, and projects first production of potash in 2027.
In 2021, capital spending intentions in the Canadian mining industry account for 4.6 per cent of Canada’s total at $12.3 billion, up 5.1 per cent year-over-year.
“As the supplier of the materials required for the manufacture of products essential for Canadians, it has been critical that supply chains stay open so that mined products are readily available for the people and businesses who rely on them,” stated Pierre Gratton, MAC’s president and CEO, in a statement. “With minerals and metals being required inputs for health care, low-carbon and communications technologies, there is no doubt that the mining industry continues to play an essential role in contributing to Canada’s economic strength and has significant potential to supply the materials needed to address our climate change priorities.”
Canada has some of the lowest carbon-intensity mineral and metal products anywhere in the world and can and should play a much more significant role in providing the materials the world needs to get to net-zero, Gratton said.
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