Canada’s mineral output at near record levels

The value of Canadian mineral production reached $83.8 billion in 2001, only slightly less than in the previous year, according to Natural Resources Canada.

The high value is mostly due to strength in the fuels sector, natural gas in particular. The value of fuel production increased 0.8% between 2000 and 2001.

Meanwhile, the value of metallic minerals produced fell 6.8% to $10.2 billion, largely as a result of falling nickel prices. Just as robust nickel prices increased the value of production to $2.3 billion in 2000, falling prices caused value to slip 24% to $1.8 billion in 2001.

A plunge in iron ore production exacerbated the decrease in the value of metallic production, as did lower prices for copper and zinc.

On the upside, the value of uranium increased 42.8%; molybdenum, 22.8%; platinum group metals (PGMs), 18.9%; and lead, 12.2%.

Strong prices also encouraged higher output of PGMs, continuing an upward trend that started in 1998 and resulted in production valued at $569 million in 2001.

Gold value remained stable with a modest increase of 2.9%. Production was valued at $2.1 billion.

The value of nonmetal mining production increased 1.7% to $7.6 billion. The increase marks the category’s sixth consecutive annual rise.

Diamond value shot up an impressive 35.5%; salt, 27.9%; clay products, 11.3%; and cement, 4.3%.

The value of sulphur fell sharply, reflecting weak prices, and similar declines affected potash, lime, peat, gypsum, asbestos, and sand and gravel. Of these, potash had the highest value, at $1.6 billion.

Mined Commodities by Value of Output (billions)

Gold$2.1

Nickel$1.8

Potash$1.6

Copper$1.5

Zinc$1.4

Cement$1.3

Iron ore$1.2

Sand and gravel$1

Stone$0.9

Diamonds$0.8

Uranium$0.7

PGMs$0.6

Salt$0.4