Mineral Trade

INFORMATION BULLETIN, JUNE 2012

Canada’s Mineral Trade Surplus Soars to $25 Billion in 2011

Canada depends heavily on its international trade to support the national economy and to sustain a high standard of living. Mineral commodities continued to make a substantial contribution to Canada’s international trade position in 2011. Mineral exports accounted for 22.8% of the country’s total exports and for 17.3% of its imports. Additionally, Canada’s mineral trade balance soared to $24.7 billion in 2011, and should remain at an elevated level in 2012 due to high commodity prices and continued global demand.

TRADE BY COUNTRY

The United States continued to be Canada’s leading partner in the trade of mineral commodities, accounting for 50.1% of total mineral exports and 50.4% of total mineral imports in 2011. The European Union (EU) (22.9%), China (6.1%), and Japan (4.1%) were the next largest destinations for Canada’s mineral exports. China (8.5%), Peru (4.9%), and Mexico (4.4%) were the next leading sources of mineral imports after the United States.

Diversification remains a basic strategy for coping with risk and, while the United States remains Canada’s leading trading partner, the percentage of total exports to the United States has been steadily declining since 1999 while emerging countries have become important destinations for Canada’s mineral products. In 2000, less than 2% of Canada’s total mineral exports went to China, but in 2011, 6.1% of Canada’s mineral exports – with a value in excess of $6 billion – went to China. Exports to Brazil, valued at $1.5 billion in 2011, have more than quadrupled since 2000, while mineral exports to other emerging countries, including Mexico, Indonesia, India, and Russia, have also increased over the same period. As the destinations for Canada’s mineral commodities become more diversified, some market risks are mitigated. Table 1 provides total mineral export and import values for Canada’s leading trade partners in 2011.

Balance of Trade

Canada’s balance of trade for the mining and mineral processing industry reached a near record $24.7 billion in 2011, continuing an upward climb since the global recession in 2009 (Figure 1). Canada continued to maintain positive trade balances with its traditional export markets in the United States, the EU, Japan, and South Korea. Imports from China, Mexico, Chile, Argentina, and Peru significantly exceeded exports to those countries (Table 2), largely due to considerable trade deficits in the mineral and metal fabrication stages (Stage 3–semi-fabrication and Stage 4–fabrication) that resulted from strong demand from Canadian manufacturers for these inputs.

TRADE BY MANUFACTURING STAGE1

Table 1 shows Canada’s trade in minerals and metals by production stage. Traditionally, Canada runs large, positive trade balances in Stage 1–mineral extraction ($23.6 billion in 2011) and Stage 2–smelting and refining ($22.6 billion in 2011). Trade balances for Stage 3 (semi-fabrication) tend to be neutral or slightly negative (-$3.6 billion in 2011) while balances for Stage 4 (fabrication) are traditionally large and negative (-$17.9 billion in 2011). This pattern reflects Canada’s natural resource wealth and its strengths in mineral extraction; the country tends to export ore and primary metals and to import more highly processed goods.

TRADE BY MINERAL CATEGORY

Metallic Products

Traditionally, metal exports account for the largest share of Canada’s mineral exports, and this was again the case in 2011 when they accounted for 75.1% of total mineral exports (Figure 2). Metal exports increased substantially (19.6%) in 2011, reaching a value of $76.5 billion. The export volume and value for most metals increased (Table 3): the value of gold was up 21.4% to $18.4 billion, the value of iron and steel increased 5.9% to $13.6 billion, the value of nickel increased by one-third to $6.8 billion, and the value of copper climbed 24.0% to $6.5 billion. The value of zinc, however, declined by 2.3% to $1.7 billion.

Imports of metal products increased at a slightly lower rate than exports, rising by 17.3% to $65.7 billion. Iron and steel, gold, silver, uranium, and lead all showed significant increases in import value.

Nonmetallic Products

Canada’s export trade of nonmetallic products also increased in 2011 to $17.0 billion (+18.9%). Most major nonmetal products experienced increases in volume and value: the potash value climbed 29.4% to $6.7 billion; the diamond value was up 2.1% to $2.7 billion; the sulphur value was up 52.8%, surpassing the $1.0 billion mark (Table 3); and the salt value reached $0.7 billion on 15.5% growth. These four nonmetal exports accounted for almost two-thirds of Canada’s total nonmetallic exports.

The value of nonmetallic imports also increased in 2011 (+11.9%), reaching $10.4 billion. As in 2010, almost all nonmetallic product groups experienced year-over-year gains in 2011; notable increases included titanium oxides (+27.9%) and salt (+25.4%).

Coal Products

The volume of metallurgical coal (or coking coal, used in steel-making) exports increased marginally in 2011 (+0.5%), but the value increased substantially (+35.6%) to $7.4 billion. The volume of thermal coal (used to produce electricity) exports increased in 2011 (+3.1%) and the value increased 15.2% to $0.6 billion. 

Metallurgical coal imports increased in both volume (+21.9%) and value (+37.9%), which reached $0.5 billion in 2011. Thermal coal imports decreased substantially in both volume (-40.1%) and value (-37.2%), which fell to $0.4 billion. 

TRADE BY PROVINCE AND TERRITORY

As in the past, the majority of Canada’s international mineral trade flowed to and from Ontario and Quebec in 2011 (Table 4). Ontario accounted for 46.4% of exports and Quebec accounted for 19.0%. Ontario accounted for 59.5% of imports and Quebec accounted for 16.1%.

Exports of mineral and metal products represented a significant proportion of total exports from most provinces and territories, accounting for virtually all exports from the Northwest Territories, 97.5% of exports from the Yukon, and well over one-third of exports from British Columbia.  

Each province and territory, with the exception of Manitoba, New Brunswick, Nova Scotia, and Prince Edward Island, had a positive mineral balance of trade. Trade surpluses were most notable for Quebec ($7.0 billion), Saskatchewan ($6.0 billion), and British Columbia ($5.7 billion).

1 For trade purposes, Natural Resources Canada divides the mining and mineral processing industry into stages according to the degree of processing or manufacturing corresponding to the product Harmonized System Classification Code. The four stages include Stage 1–Mineral Extraction and Concentrating; Stage 2–Smelting and Refining; Stage 3–Nonmetals and Metals-Based Semi-Fabricating Industries; and Stage 4–Metals and Fabricating Industries. For more information, please visit our statistics web site.

Note: Information in this bulletin was current as of May 1, 2012.

Figure 1
Canada, Value of Mining and Mineral Processing Industry Trade, 2002-11

Figure 1. Canada, Value of Mining and Mineral Processing Industry Trade, 2002-11

Sources: Natural Resources Canada; Statistics Canada.
Note: Mineral trade includes coal.

[Text Version - Figure 1. Canada, Value of Mining and Mineral Processing Industry Trade, 2002-11]

Figure 2
Canada, Value of Mining and Mineral Processing Industry Products Trade, 2002-11

Figure 2. Canada, Value of Mining and Mineral Processing Industry Products Trade, 2002-11

Sources: Natural Resources Canada; Statistics Canada
Note: Stages 1 to 4 for metals and nonmetals; Stages 1 to 3 for coal.

[Text Version - Figure 2. Canada, Value of Mining and Mineral Processing Industry Products Trade, 2002-11]


TABLE 1. VALUE OF CANADIAN MINERAL TRADE, 2011
Stage Domestic
Exports		 Total
Exports		 Total Imports Balance of Trade
($000)
Stage 1 32 439 079 32 535 837 8 962 769 23 573 068
Stage 2 36 675 107 38 301 660 15 714 753 22 586 907
Stage 3 17 307 098 18 411 813 21 997 438 - 3 585 625
Stage 4 11 167 382 12 652 785 30 528 101 - 17 875 317
Total  97 588 666  101 902 095 77 203 061 24 699 034

Sources: Natural Resources Canada; Statistics Canada.
Notes: Mineral trade includes coal. Numbers may not add to totals due to rounding.

TABLE 2. VALUE OF CANADIAN MINERAL TRADE BY COUNTRY, 2011
Country Total Exports Total Imports Balance of Trade
($000)
United States 51 075 405 38 905 466 12 170 938
European Union 23 303 381 7 368 773 15 934 608
China 6 180 244 6 542 348 -  362 103
Japan 4 139 018 1 103 008 3 036 011
South Korea 2 794 715 885 843 1 908 872
Norway 2 468 989 115 244 2 353 745
India 973 428 644 608 328 821
Mexico 993 574 3 407 595 - 2 414 020
Brazil 1 577 223 1 362 121 215 101
Chile 287 276 1 130 385 -  843 109
Peru 52 283 3 765 688 - 3 713 406
Argentina 45 124 1 998 372 - 1 953 247
Other countries 8 011 434 9 973 611 - 1 963 176
Total Canada 101 902 095 77 203 061 24 699 034

Sources: Natural Resources Canada; Statistics Canada.
Notes: Mineral trade includes coal. Numbers may not add to totals due to rounding.

TABLE 3. VALUE OF CANADIAN MINERAL EXPORT TRADE BY COMMODITY, 2010 AND 2011
Commodity 2010 2011
($000)
Gold 15 131 649 18 363 792
Iron and steel 12 706 182 13 453 823
Aluminum 9 260 431 9 916 697
Coal, thermal and metallurgical 6 232 490 8 272 866
Nickel 5 085 451 6 771 998
Potash and potassium compounds 5 197 393 6 724 335
Copper 5 270 158 6 536 805
Miscellaneous metal products 4 970 780 6 127 434
Iron ore 3 190 593 4 177 526
Silver 1 862 408 3 663 244
Diamonds 2 681 647 2 737 193
Uranium and thorium 2 186 617 2 736 503
Zinc 1 734 624 1 695 477
All other minerals 9 020 966 10 724 401
Total 84 531 390 101 902 095

Sources: Natural Resources Canada; Statistics Canada.
Note: Numbers may not add to totals due to rounding.

TABLE 4. VALUE OF CANADIAN MINERAL TRADE BY PROVINCE AND TERRITORY, 2011
Province/ Territory Total
Exports		 Total
Imports		 Balance
of Trade		 Total Economy
Total Exports		 Total Exports
as a Percentage of
Provincial or Territorial
Total
($000) (%)
Newfoundland and Labrador 3 006 607 131 194 2 875 413 12 120 425 24.8
Prince Edward Island 9 936 45 339 -  35 403 754 568 1.3
Nova Scotia 256 042 593 454 -  337 412 4 469 334 5.7
New Brunswick 932 101 952 578 -  20 478 14 888 113 6.3
Quebec 19 392 082 12 426 616 6 965 466 63 557 831 30.5
Ontario 47 271 487 45 991 645 1 279 842 181 516 411 26.0
Manitoba 2 460 792 2 817 590 -  356 799 11 943 675 20.6
Saskatchewan 7 766 305 1 742 009 6 024 296 29 559 236 26.3
Alberta 5 500 179 5 161 932 338 247 93 556 330 5.9
British Columbia 13 110 626 7 366 681 5 743 945 33 231 262 39.5
Yukon 110 142 4 732 105 410 112 938 97.5
Northwest Territories 2 081 396 – 2 081 396 2 083 762 99.9
Nunavut 1 074   60 1 013 8 189 13.1
Total Canada 101 898 769 77 233 831 24 664 937 447 802 075 22.8

Sources: Natural Resources Canada; Statistics Canada.
– Nil.
Notes: Mineral trade includes coal. Numbers may not add to totals due to rounding. The export data in this table are attributed to the province or territory of origin and the import data are attributed to the province or territory of clearance. As an example, gold mined in the Yukon that is refined in Ontario would be attributed to Ontario.

© Her Majesty the Queen in Right of Canada, 2012