Mineral Production

INFORMATION BULLETIN, MARCH 2013

Canada’s Mineral Production Roars in 2011, Meows in 2012

Global economic uncertainty was the major factor affecting Canadian mineral production in 2012. Weakened global demand for most minerals and metals translated into price declines for these commodities.

Canada’s mineral production reached record values in 2011 ($50.9 billion), exceeding the previous peak of $47.0 billion in 2008. Its production value in 2012 declined 7.9% to $46.9 billion. As shown in Table 1, the three major mineral categories¹ – metals, nonmetals, and coal – all experienced reduced production earnings ranging from 5.4% to 14.5%. Potash, coal, and gold (slightly ahead of iron ore) were the leading production commodities by value in 2012.

Metals

From 2011 to 2012, the production value of metallic minerals declined by 7.7%. Table 2 reveals that most major metal commodities experienced a decline in value in 2012 with gold being the only major exception (up on volume and price).

Nickel led the metal decline in 2012, with its production value down 28.6% from 2011, mainly on price. Uranium was also down on price and volume, resulting in a 20.4% decline in its value in 2012. Although iron ore’s volume was up about 10% over 2011, price declines brought its value down slightly in 2012, by 3.4%. Copper and zinc were in the same position with marginal increases in their 2012 volume, but price declines brought their values down by 7.3% and 7.9%, respectively. Zinc production in 2013 is expected to drop substantially with the closing of the Brunswick mine in March 2013.

Gold was the metal bright spot for Canadian producers in 2012. Its value of production increased 9.3% on slightly higher volume and better prices.

Nonmetals

Nonmetallic minerals in 2012 followed metals with their total production value reduced by 5.4%.

Potash remained, for the third straight year, the top-ranked commodity by production value in Canada (Table 3). Its production volume dropped from 10.7 million tonnes (Mt) in 2011 to 9.0 Mt, with a consequent 7.8% decline in value (Table 2), as weakened global demand led to lower potash prices on world markets.

Canadian diamond production in 2012 recorded a 20% decline in value on a slight drop in volume and a substantial reduction in overall prices.

The value of cement production, tracking an improved domestic construction sector, increased 7.3% on increased volume. The value of sand and gravel also increased 5.1% on slightly improved volume and price.

The value of salt production dropped 19% from 2011 levels, mostly on volume decline. Salt is purchased under contract, with no spot market to establish a market-clearing price, while demand for salt varies with the severity of Canadian winters.

Coal

The value of coal production in Canada declined 14.5% in 2012, almost entirely due to reduced coal prices. At $6.4 billion, coal was the second-ranked Canadian commodity produced in 2012. Canadian mines produced an estimated 31 Mt of metallurgical coal (a higher-value product that is exported for use in steel production) and 32 Mt of thermal coal (a lower-value product used for domestic electricity production).²

Provincial and Territorial Perspective

Ontario led the provinces with a mineral production value of $9.16 billion. On the strength of coal and potash sales, British Columbia and Saskatchewan ranked second and third at $8.31 billion and $8.23 billion, respectively. Quebec followed at $8.18 billion. These top four provinces accounted for more than 70% of the value of Canadian mineral production in 2012.

________________
¹ The values of metallic and nonmetallic minerals, and coal, reflect 2011 actual values and preliminary 2012 estimates.
² Estimates based on the most recent production statistics through November 2012.

**TABLE 1. VALUE OF CANADIAN MINERAL PRODUCTION, 2011 AND 2012 (p)**
Commodity Group	2011	2012 (p)	Change (%)
Commodity Group	($ millions)		Change (%)
Metals	25 569.6	23 608.5	-7.7
Nonmetals	17 839.8	16 880.0	-5.4
Total non-fuels	43 409.4	40 488.5	-6.7
Coal	7 471.4	6 389.0	-14.5
Total production	50 880.8	46 877.5	-7.9

Sources: Natural Resources Canada; Statistics Canada.
(p) Preliminary.

**TABLE 2. PRODUCTION OF CANADA'S LEADING MINERALS, 2012 (p)**
Commodity	Production 2012 (p) (000 tonnes except where indicated)	Change From 2011 (%)	Value 2012 (p) ($M)	Change From 2011 (%)
METALLIC MINERALS
Gold (kilograms)	103 712.9	1.7	5 560.0	9.3
Iron ore	39 427.1	10.4	5 318.9	-3.4
Copper	563.3	1.7	4 478.2	-7.3
Nickel	196.5	-7.1	3 418.0	-28.6
Uranium (1)	9.7	7.1	1 040.9	-20.4
Zinc	608.3	2.9	1 180.1	-7.9
Other metals	n.a.	n.a.	2 612.4	-5.6
Total metals	n.a.	n.a.	23 608.5	-7.7
NONMETALLIC MINERALS
Potash (K₂O) (2)	8 984.0	-15.9	6 981.4	-7.8
Diamonds (000 carats)	10 450.6	-2.8	2 005.2	-20.1
Sand and gravel (4)	225 208.4	1.3	1 639.3	5.1
Cement (3)	12 784.2	7.3	1 702.5	7.3
Stone (4)	151 838.1	-6.1	1 514.9	-4.8
Salt	10 793.9	-15.8	564.4	-19.1
Other nonmetals	n.a.	n.a.	2 472.3	7.9
Total nonmetals	n.a.	n.a.	16 880.0	-5.3
FUELS
Coal	66 942.0	-0.3	6 389.0	-14.5

Sources: Natural Resources Canada; Statistics Canada.
(p) Preliminary; $M $ millions; 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: Numbers may not add to totals due to rounding.

**TABLE 3. CANADA'S LEADING MINERALS BY VALUE OF PRODUCTION, 2012 (p)**
Mineral	Production Value ($ billions)
Potash (1)	6.98
Coal	6.39
Gold	5.56
Iron ore	5.32
Copper	4.48
Nickel	3.42
Diamonds	2.01
Cement (2)	1.70
Sand and gravel (3)	1.64
Stone (3)	1.51
Zinc	1.18
Uranium (4)	1.04

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.

**TABLE 4. MINERAL PRODUCTION BY PROVINCE AND TERRITORY, 2012 (p)**
Province or Territory	Metallics	Nonmetallics	Coal	Total	Share of Production (%)
Province or Territory	($000)				Share of Production (%)
Newfoundland and Labrador	4 379 846	69 550	–	4 449 397	9.5
Prince Edward Island	–	4 133	–	4 133	0.0
Nova Scotia	–	313 152	–	313 152	0.7
New Brunswick	653 542	492 882	–	1 146 424	2.4
Quebec	6 186 055	2 001 004	–	8 187 059	17.5
Ontario	6 231 443	2 931 387	–	9 162 830	19.5
Manitoba	1 324 930	187 505	–	1 512 435	3.2
Saskatchewan	1 177 123	x	x	8 247 464	17.6
Alberta	3 791	x	x	2 706 136	5.8
British Columbia	2 452 766	799 927	5 059 642	8 312 335	17.7
Yukon	498 659	10 949	–	509 608	1.1
Northwest Territories	99 337	1 622 477	–	1 721 815	3.7
Nunavut	600 995	3 670	–	604 665	1.3
Total	23 608 486	16 880 014	6 388 951	46 877 451	100.0

Sources: Natural Resources Canada; Statistics Canada.
- Nil; (p) Preliminary; x Confidential.
Notes: Numbers may not add to totals 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.