Mineral Production
INFORMATION BULLETIN, MARCH 2012
Canada’s Mineral Production Reaches a Record $50 Billion
In 2011, the value of Canada’s mineral production increased for the second consecutive year, rising 21.0% to reach a record $50.3 billion.1 Production values increased for most major minerals mined in Canada, and all three mineral categories – metals, nonmetals, and coal – experienced sizeable increases (Table 1). Potash, coal, and iron ore were the leading commodities, by value of production, in 2011.
METALS
The overall value of metallic mineral production increased 18.3% to $25.3 billion on the strength of higher prices for most major metals.
The volume and value of Canada’s nickel production increased sharply in 2011 (Table 2), which, in part, is related to a full year of production from Canada’s Vale operations after a 12-month labour dispute that ended in July 2010. Nickel shipments were up 35.7% and the resulting value was up 44.9% to $5.1 billion. These gains came despite volatility in nickel prices, which trended downward throughout 2011 due to increased concerns about the global economic recovery.
On the strength of strong prices, and reflecting a full year of output from Vale’s Canadian operations, copper shipments increased in both volume (+8.5%) and value (+27.2%), totaling $5.0 billion and accounting for nearly 20% of Canada’s metallic mineral production value.
Production volumes for gold decreased in 2011 (-3.9%), but sustained strong prices resulted in a 14.4% increase in the production value, which climbed to $4.7 billion. Similarly, production volumes for silver decreased (-6.5%), but production values increased substantially (+60.6%) to $612 million on the strength of historically high prices.
In 2011, the production volume for iron ore dropped 7.2% relative to 2010, reflecting a temporary reduction in output from the Iron Ore Company of Canada due to its implementation of a phased concentrator expansion program. The value of iron ore production increased marginally (+0.3%) to $5.3 billion, largely due to relatively strong prices.
In 2011, despite a higher average annual price relative to 2010, both the volume (-5.5%) and the value (-4.4%) of zinc production declined. Zinc continued to be ranked among Canada’s most valuable commodities produced with shipments totaling $1.3 billion, but lower output and lower grades from some of Canada’s zinc mines (including Brunswick, LaRonde, and 777) likely contributed to these decreases.
Similarly, uranium recorded higher average annual prices relative to 2010, but both the volume (-12.5%) and the value (-11.5%) of production dropped in 2011. Uranium shipments still totaled $1.1 billion; however, the release of radioactive materials from the Fukushima-Daiichi nuclear plant in Japan, following a devastating earthquake in March 2011, eroded public confidence in the nuclear industry and resulted in decreased demand and lower output.
NONMETALS
The overall value of nonmetallic mineral production increased 22.7%, to $18.0 billion, largely due to increased values for potash and diamonds.
In 2011, potash was once again Canada’s top-ranked commodity by value of production, with shipments totaling $8.0 billion (Table 3). Production volumes reached a new historical record in 2011, up 13.5% compared to 2010 as the result of growing global demand for potash.
Canadian diamond production in 2011 recorded an 8.5% decrease in volume to 10.8 million carats, mainly due to lower grades at BHP Billiton’s Ekati mine. The value of shipments, however, increased 6.1% to $2.5 billion, reflecting higher prices due to increased demand.
With respect to other significant nonmetallic minerals, the production value of elemental sulphur, which is recovered from oil sands operations, nearly doubled in 2011 to reach $566 million. In addition, salt production increased 16.2% to $700 million, largely due to a more severe winter and higher prices that were reflective of increased transportation costs.
COAL
In terms of Canadian mineral production, coal was the second-ranked commodity by value at $7.0 billion (Table 3). This represents a 27.2% increase over 2010 despite a slight dip (-2.1%) in the volume of production. The increased value of production was the result of a tight metallurgical coal supply and record high prices on the global market in 2011.
PROVINCIAL AND TERRITORIAL PERSPECTIVES
All provinces and territories except Prince Edward Island experienced an increase in their 2011 mineral production value (Table 4). Ontario led all provinces with a mineral production value of $10.7 billion, which was up 31.2% over 2010.
Saskatchewan, on the strength of potash shipments, was second at $9.2 billion, while British Columbia rode strong coal shipments to rank third with $8.2 billion.
All three territories, where mineral production plays a vital role in their economy, experienced production increases. Mineral production in the Northwest Territories, led by the diamond industry, totaled $2.1 billion, a 4.9% increase over 2010. On the strength of two new mine openings, mineral production in the Yukon increased by over one third to $402 million. In Nunavut, where Agnico-Eagle’s Meadowbank mine is the only producing mine, mineral shipments increased 30.5% to $414 million.
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1All values are in current Canadian dollars. The Canadian production of metallic minerals, nonmetallic minerals, and coal reflects the 2011 preliminary value of shipments from mines (extraction).
Sources: Natural Resources Canada; Statistics Canada.
(p) Preliminary.
Sources: Natural Resources Canada; Statistics Canada.
(p) Preliminary; n.a. Not applicable.
(1) Uranium value is calculated using spot market prices. (2) Excludes shipments to potassium sulphate plants.
(3) Includes exported clinker. (4) Excludes shipments of sand, gravel, and stone to Canadian cement, lime, and clay plants
Note: Totals may not add due to rounding.
Sources: Natural Resources Canada; Statistics Canada.
(p) Preliminary.
(1) Excludes shipments to potassium sulphate plants. (2) Includes exported clinker. (3) Excludes shipments of sand, gravel, and stone to Canadian cement, lime, and clay plants (4) Uranium value is calculated using spot market prices.
Sources: Natural Resources Canada; Statistics Canada.
– Nil; (p) Preliminary; x Confidential.
Notes: Numbers may not add due to rounding. Production is based on shipments. For full details of the methods used in computing the mineral production of Canada, please refer to the Appendix in Statistics Canada catalogue no. 26-202-XIB.
Additional information is available at:
www.nrcan.gc.ca/minerals-metals/home
© Her Majesty the Queen in Right of Canada, 2012