Minerals and the economy (2024)

Canada is recognized as a leading mining nation. Our minerals sector, which includes exploration, mining and related support activities, primary processing, and downstream product manufacturing, is a mainstay of the economy that supports jobs and economic activity in every province and territory.

Learn what Canada is doing to advance the economy through minerals

Critical minerals

Canada is primed to capitalize on the rising global demand for critical minerals and materials that will power the clean energy transition and advanced manufacturing. Canada is a key global producer of copper, nickel and cobalt and hosts advanced mineral projects for rare earth elements, lithium, graphite and vanadium.

Canada plans to leverage its mining prowess and strong environmental, social and governance credentials. The intent is to create competitive supply chains for critical minerals and value-added products, processes and technologies. These range from zero-emission vehicles (including Li-ion batteries, permanent magnets and specialty alloys) to wind turbines and hydrogen fuel cells, to information and communication technologies (including semi-conductors).

Learn more about critical minerals in Canada and consult the interactive map of critical minerals sites in Canada

Greenhouse gas emissions and advanced green technologies

Developing Canada's minerals sector in clean and sustainable ways will ensure that it can continue to contribute to the Canadian economy for years to come.

Greenhouse gas emissions

Canadian mines have relatively low intensities of greenhouse gas emissions across a range of commodities. Canada’s carbon competitiveness stems from a host of advantages, including access to clean energy sources and significant investments in research, development and adoption of green technologies.

Canadian mines and processing facilities continue to invest to lower their emissions through electrification of equipment and vehicle fleets and through the development of new technologies. This includes mines in remote off-grid locations that have few alternative energy sources. Some of these remote sites have installed wind turbines to reduce their dependency on diesel fuel.

Advanced green technologies

The Green Mining Initiative, led by Natural Resources Canada (NRCan), aims to improve the minerals sector's environmental performance and create green technology opportunities. NRCan works in close partnership with provincial and territorial governments, industry, academia, non-governmental organizations and other interested stakeholders, such as the Canada Mining Innovation Council.

Learn more about green mining innovation.

Mineral production

Canada is the global leader in potash production and ranks among the top five global producers of diamonds, gemstones, gold, indium, niobium, platinum group metals, titanium concentrate and uranium.

Canada is also the world’s fourth-largest producer of primary aluminum.

Mineral production by commodity group

The 2022 value of Canadian mineral production was $62.0 billion, 20% higher than the 2021 value of $51.8 billion. Metals’ value of production increased by 1% from the previous year, while non-metals and coal went up by 52% and 85%, respectively.

Canada's top five mineral products by value for 2022 were gold, coal, copper, iron ore concentrates, and potash. Their combined value was $45.5 billion, accounting for more than two thirds of the total value of mineral production.

Service suppliers

Canadian cities provide regional bases for supporting exploration, mining and allied industries through specialized equipment and service suppliers. Large urban areas, such as Toronto and Vancouver, are also recognized as global hubs for mining and mineral exploration, financing and legal services.

Thousands of firms in Canada are available to provide technical, legal, financial, accounting, environmental and other expertise to the exploration and mining industry.

Transportation plays a key enabling role for the minerals sector, not only in delivering mineral products to markets, but also in bringing equipment and supplies to mining operations. The transportation industries – such as rail – benefit from a vibrant mining sector because mining accounts for over half of Canada's rail-freight tonnage annually.

Learn more about Canadian mineral production.

Principal mineral areas, producing mines, and oil and gas fields in Canada

This map displays the significant metallic, non-metallic and industrial mineral mines; oil sands mines; and gas fields across Canada.

Learn more about the available mining and minerals maps.

Mineral exploration

Mineral exploration is the search for materials in the Earth's crust where concentration and quantity allow for extraction and processing at a profit.

The amount spent on mineral exploration and on deposit appraisal activity depends largely on market conditions and commodity prices. Over the last decade, mineral and metal prices fluctuated significantly, reaching a cyclical peak in 2011 that was driven by rapid growth in China and other emerging market economies. Prices subsequently decreased as supply outpaced demand.

Prices began to recover in the second half of 2016. That trend continued into the second half of 2019, but shifted for most metals in early 2020 because of the economic lockdowns caused by the COVID-19 pandemic.

Metal prices recovered late in 2020 as supply diminished and demand recovered. In 2021 and in the first half of 2022, the prices rose more quickly because of rising inflationary pressures and the Russia-Ukraine conflict. Since mid-2022, prices have generally declined.

Mineral exploration by commodity

Canada benefits from a diversified mineral endowment that includes traditional commodities, such as gold, base metals and diamonds. As well, Canada has commodities that are used in clean energy applications and advanced technologies, such as rare earth elements, graphite and lithium.

Precious metals, particularly gold, remained the leading target for exploration spending ($2.5 billion), which remained flat from the previous year and accounts for 61% of total spending in 2022.

Mineral exploration by province and territory

In 2022, Ontario was the leading jurisdiction in terms of spending on mineral exploration, followed by British Columbia and Quebec. These three jurisdictions accounted for 68% of total exploration and deposit appraisal expenditures.

Mineral exploration by company type

Two types of companies work in mineral exploration:

• Senior companies normally derive recurring operating revenues from mining or other business segments. These are not necessarily mining companies.
• Junior companies have no internally generated revenue (i.e. they do not have an operating mine) and rely mostly on equity markets to raise the capital necessary to conduct their exploration programs.

Junior mining companies tend to specialize in early-stage exploration activities, while senior companies are more likely to bring mines into production.

Junior companies play a critical role in the discovery and advancement of mineral projects in Canada, projects that represent the next generation of Canadian mines. In 2022, junior mining companies spent $2.3 billion on exploration and deposit appraisal activities, a 10% increase over 2021. Senior company expenditures increased 5% from 2021.

Learn more about Canadian mineral exploration.

Canadian mining assets

Canadian exploration and mining companies are active across the globe. The extent of their presence can be determined by examining the value and location of Canadian mining assets.

In 2021, the total value of Canadian mining assets increased by 4% from the previous year, with the portion located in Canada increasing by 3%. Outside of Canada, the value of Canadian mining assets increased by 4%.

Canada's presence abroad

In 2021, 68% of the value of Canadian mining assets abroad were in the Americas, where the value of assets increased by 5% from the previous year. In total, $196 billion in assets were in 97 foreign countries in 2021. The top 10 countries are presented in the following table.

Learn more about the global presence of Canadian mining companies.

Indigenous partnerships and participation

NRCan’s Lands and Minerals sector is committed to promoting Indigenous partnerships and participation in mineral exploration and mining activities by sharing information to support informed decision-making and promoting community capacity building.

Indigenous representation in the minerals sector has increased in the last decade, especially in the mining industry.

Learn more about our tools and information products on Indigenous participation in exploration and mining.

Indigenous employment

Based on the 2021 census, over 17,300 Indigenous people were employed in Canada's mining and mineral processing industries. About half of the Indigenous employment was in the upstream mining subsector, where Indigenous Peoples accounted for 11% of the industry's labour force, more than double the all-industry average representation of 4%.

Agreements between companies and Indigenous peoples

Agreements between mineral exploration and mining companies and Indigenous communities or governments have helped secure benefits for many Indigenous communities and businesses and improved certainty for exploration and mining companies. Fostering the relationship between industry and Indigenous businesses builds the capacity for Indigenous businesses to capitalize on economic opportunities happening in or near their communities. It also allows industry to create reliable, local supply chains and the social licence to operate in a community.

More than 586 agreements (active and expired agreements at the exploration, development and post-development stages) for 385 exploration and mining projects, have been signed since 1974. Approximately 465 of these agreements were still active in 2021. More than half of the active agreements are in Ontario (157) and British Columbia (99). Furthermore, there has been an increase in agreements for exploration, development and post-development stages:

• 51 prior to 2000
• 524 between 2000 and 2021

The increase is due to both a higher level of exploration and mining activity and a growing focus on building mutual understanding between Indigenous communities and the mining industry. However, for the past few years, there have been fewer agreements for exploration, development and post-development stages with the reduced number of projects.

Nominal GDP in the minerals sector

In 2022, the direct contribution of Canada's minerals and metals sector to Canada's gross domestic product (GDP) was $109 billion, which represented 6% of Canada's total GDP. The indirect effects from the minerals and metals sector added a further $40 billion to the GDP, for a total contribution of $149 billion.

Employment in Canada's minerals sector

The minerals sector offers well-paid, high-quality jobs for Canadians across the country, including many in northern and remote locations.

In 2022, the minerals and metals sector directly employed 420,000 individuals and indirectly employed an additional 274,000, for a total of 694,000 individuals.

At $139,217, the average annual total compensation per job in the mining industry is almost twice the all-industry average of $72,641.

• Employment by subsector, by product group and by year
• Employment by industry and by year
• Compensation per job, by industry and by year

Financing

The Toronto Stock Exchange (TSX) and TSX Venture Exchange (TSXV) are the world's primary listing venues for mining and mineral exploration companies, with more than 1,121 issuers in 2022, accounting for 40% of global listings.

In 2022, about 45% ($7.6 billion) of the world's total equity capital for these activities was raised by companies listed on the TSX or TSXV. This amount also accounted for 53% of the number of mining equity financings for mineral exploration and mining globally. Canada is number one globally in equity financing raised for mining and mineral exploration.

Government revenues

In 2021, the mining and related support activities (mining and quarrying and support activities for mining) paid $5.4 billion in corporate income taxes and royalties. Mining taxes and royalties account for 71% of that amount, while the remainder is paid in the form of corporate income taxes to the federal, provincial and territorial governments.

Read more on taxes relevant to the minerals and metals industries.

Trade

In 2022, Canada's mineral imports and exports, which include ores, concentrates, and semi- and final-fabricated mineral products, recorded a balance of trade of over $31.1 billion.

Exports

Valued at $153.2 billion in 2022, domestic mineral exports accounted for 26% of Canada's total merchandise exports.

Learn more about Canada's mineral imports and exports.

Minerals sector investment

In 2022, the minerals sector invested $17.7 billion in new capital construction and in machinery and equipment, accounting for 6% of the Canadian total.

Learn more about capital investment by Canada's minerals sector.

Major natural resource projects

In 2022, current and potential investment in major mining-related projects (e.g. mine constructions, redevelopments, expansions and processing facilities) over the next 10 years was estimated at $88.3 billion in capital expenditures, across 124 projects, compared with $88.8 billion and 119 projects in 2021.

Learn more about major natural resource projects that are planned and under construction over the next 10years.

Date modified:

2024-07-29