The value of Canadian mining

Despite significant growth in the Canadian economy over the past 20 years, the Canadian mining industry’s contribution to the gross domestic product has remained relatively stable within a range of 3.5%-4.5%. Over the previous five years, the minerals and metals contribution to Canadian GDP averaged 3.78%.

In 2002, Canada’s GDP grew by 4.7%, or $30.5 billion, to reach $977.58 billion. Through the four stages of mineral activity, from mining and concentrating to smelting and refining through to the manufacture of fabricated and semi-fabricated products (but excluding the equipment and services related to mining), the minerals and metals industry contributed $36.15 billion to the GDP.

Meanwhile, the contribution of services related to mining contributed $4.11 billion, a decrease of $1.03 billion, or 20.1%, over 2001.

Mining accounts for 3.7% of Canada’s GDP, and can be divided into four stages:

— primary mineral production (mining and concentrating);

— metal production (smelting and refining, including iron and steel);

— minerals- and metals-based semi-fabrication industries; and

— metal fabrication industries.

In 2002, mining’s contribution to GDP increased by $972 million, to $36.15 billion from $35.18 billion, an increase of 2.8%. The first of the above stages was up 0.41%, accounting for 25.41% of the total; the second increased by 0.78%, to 21.87%; the third slid 2.94%, to 21.11%; and the fourth jumped by 1.74% for a 31.61% share.

The first stage, which includes coal but excludes oil and gas, contributed roughly $9.19 billion to Canada’s total GDP, while the second stage contributed an additional $7.9 billion, for a total of $17 billion.

Metal mining and nonferrous metal smelting and refining contributed $6.8 billion or 1.13% of GDP. By comparison, the agriculture sector contributed $12.68 billion to 2002 GDP; forestry and logging contributed $5.64 billion; and computers and electronics chipped in $10.97 billion.

— The preceding is from Facts & Figures 2002, a publication of the Mining Association of Canada.

The Mineral Industry GDP in 2002

% of Total % of Total

$billionsMining GDPEconomy GDP

Stage 19.18625.410.94

Metal4.97113.750.51

Nonmetal3.2258.920.33

Coal0.9902.740.10

Stage 27.90821.870.081

Iron and Steel Mills and

Ferro-alloy Manufacturing3.5749.890.37

Primary Production of Alumina

and Aluminum2.4896.880.25

Non-ferrous Smelting and

Refining1.8455.100.19

Stage 37.63121.110.78

Stage 411.42931.611.17

Total for Mineral Industry36.154100.003.70