Canada Still World’s Top Mining Destination

Despite the projected labour shortage in mining and related industries in the coming years, Canada remains as the top mining destination all over the world. The Facts and Figures 2012 report revealed that as far as exploration spending goes, Canada trumps all other nations, getting an 18 percent share of the global investment. Australia, U.S., and Mexico only got 13 percent, 8 percent, and 6 percent, respectively, of the world’s mining money. Canada is also a prolific producer of minerals and metals like aluminum, copper, gold, potash, and coal which it exports to various parts of the world. 

That mining has buoyed Canada’s economy, especially in the North, is no secret. Federal, provincial, and state coffers benefit through government royalties and taxes as mining workers get paid substantially higher wages than those of other industries like forestry and manufacturing. As workers flock to Canada’s mines, businesses provide goods and services which in turn contribute to the growth of the local economy.

What makes Canada the most attractive place on earth for companies to bury their dollars in? There are a host of reasons for this but let’s start with how Canada has become such a focal point in world mining financing. The Toronto Stock Exchange (TSX) and the TSX Venture Exchange conducted 90 percent of global mining equity financing, making it the largest mining exchange around the world. Moreover, Canada is the undisputed leader when it comes to TSX and TSX-V mining projects. With more than 5,000 mining projects, Canada has 53 percent of the world’s projects by location compared to only Mexico and Central/South America that only has 1,651 projects or 17 percent; United States with 1,275 projects or 13 percent; Africa with 684 projects or 7 percent; China and Asia at 375 projects at 4 percent; Australia at 280 projects at 3 percent; and UK and Europe with only 315 projects at 3 percent.

Canada has proven and probable reserves of various minerals. Saskatchewan is a significant producer of the world’s potash and currently has undeveloped deposits of uranium in the Cigar Lake project. The diamond, gold, iron ore, and rare earths sectors hold a lot of promise as well.

Well-paid industry workers are another reason why Canada remains a world mining destination. One in every 54 Canadian jobs is in the mining industry. It has not left out Aboriginal Canadians, as the industry is the largest employer in the private sector. The industry also provides the highest wages and salaries compared to other sectors.

This isn’t to say that Canada does not have its own challenges to overcome. And all mining stakeholders—governments and companies—are aware of it. They are taking action to ensure that these issues are addressed so that Canada remains the top mining destination in the world in the years to come.