Mineral output climbs

The value of production for the Canadian mineral industry, excluding oil and gas but including coal, increased to $19.84 billion in 2000, up $1.13 billion, or 6.7%, from 1999.

Metal mining accounted for 55.8% ($11.1 billion) of Canada’s mineral production value in 2000, followed by non-metals at 20.1% ($4 billion), structural materials at 17.4% ($3.5 billion), and coal at 6.6% ($1.3 billion).

Based on higher prices for specific metals, the value of 2000 metal production increased for the first time since 1997, rising by 3.1%, or $1.28 billion, over 1999 levels. The increase was chiefly due to a 48% increase in the value of nickel to the tune of $765.7 million. Meanwhile, copper production jumped 23.5% to $321.5 million, and platinum group metals (PGMs) soared 85% to $214 million.

Higher metal prices for PGMs, nickel and copper helped increase production values in 2000 but were not enough to surpass the 1997 level of $11.5 billion.

In terms of non-metal production, its value increased slightly in 2000, rising by $59.2 million, or $1.8%. Potash remained the dominant commodity in the sector, representing 8.6% of total Canadian production. Its value increased by $80.4 million, or 4.9%, over the previous year.

Diamond mining, in its second full year of production in Canada, also increased in value, rising 5.3%, or $31.9 million. BHP Billiton’s Ekati mine, in the Lac de Gras region of the Northwest Territories, produced 2.6 million carats valued at $638.2 million, compared with 2.4 million carats in 1999 and 203 carats in 1998.

The value of coal production dropped by 10.8% in 2000 to $1.32 billion with production levels dropping 3.3 million to 69.15 million tonnes. It marked the third consecutive year of declining coal production, down from its record high of 78.7 million tonnes in 1997.

Structural material production value grew marginally to $3.45 billion, an increase of $83 million since 1999.

Cement remained the most important commodity in the structural materials category, with shipments valued at $1.26 billion, or 6.3%, of total mineral production value.

Based on the value of mineral output, nickel became Canada’s leading mineral by value in 2000, with production worth $2.36 billion; followed by gold at $2.06 billion; potash at $1.71 billion; copper at $1.69 billion; zinc at $1.57 billion; iron ore at $1.54 billion; and coal at $1.32 billion.

Over the 12-month period ended Dec. 31, 2000, two new mines opened and four reopened. On the downside, 13 mines closed.

— The preceding is an excerpt from Facts and Figures 2000, a publication of the Mining Association of Canada, with assistance from the federal Department of Natural Resources.