Canada’s mineral output value fell in 2023, report finds  

Canada’s mineral production posted an 8.3% drop in value in 2023 as revenue from copper, iron ore and potash fell, a new report shows.

The total value of Canadian mineral production fell to $71.9 billion from $78.5 billion in 2022, the Mining Association of Canada (MAC) said in a new report. Revenue from iron ore production slumped 40% while potash output generated 27% less revenue than in 2022, the report shows.

Canada, which produces more than 60 minerals and metals, ranks as the top global producer of potash, the second-largest producer of niobium and uranium and the third-largest producer of precious diamonds and palladium by metal content.

Mining contributed $117 billion, or 4% of Canada’s gross domestic product (GDP) in 2023, the report says. Canada’s mining sector encompasses extraction, mining services, primary metal and mineral manufacturing, and downstream metal and mineral manufacturing.  

Extraction accounted for the biggest share of economic value creation, contributing $54.8 billion to Canadian GDP. This compares with $32.4 billion for downstream metal/mineral manufacturing, $21 billion for primary metal/mineral manufacturing and $8.6 billion for mining services.

When mining, quarrying and oil and gas extraction are included, the sector’s contribution rises to 5.1% of GDP, a stable and significant share of Canada’s economy over the past decade, with Alberta’s mined oil sands playing a major role, the report found.

The total value of Canada’s mineral and metal production has quadrupled since 2000. 

Rising commodity prices have boosted the value of gold, with the industry now surpassing passenger vehicles as Canada’s second largest exporter. Gold production has helped Canada’s mineral product exports reach new records, the report found.  

The economy of the future depends on minerals and metals from Canada, MAC asserts.  

Regulatory efficiencies

“To supply the resources that are needed, Canada must foster a more efficient investment and regulatory environment. In recent years, the mining sector has welcomed positive commitments from the federal government, including the Canadian Critical Minerals Strategy, Fall Economic Statements, and the 2022, 2023, and 2024 Budgets,” the report reads. 

Regulatory inefficiency can slow project momentum, MAC warns.  

“Action is especially important on coordination with provinces including enhanced use of substituted assessments (one project, one review), coordination within the federal government, and process improvements on Indigenous consultation.”

The true test of success lies in the effective and efficient implementation of policies that accelerate the delivery of Canadian minerals and metals to global markets that are demanding them, MAC notes.  

Oil & gas exports

Oil and gas made up a quarter of all of Canada’s exports, at C$177 billion. In 2022, Canada was the third largest exporter of crude oil, responsible for 9% of global exports, and crude oil production in Canada grew from 1.3 billion barrels in 2016 to 1.7 billion barrels in 2024.  

The majority of Canadian crude oil is exported, the report found, and the fraction is growing: from 86% of production in 2016 to 90% of production in 2024.  

“Because of our strong infrastructure and business links, the United States is the primary export destination for Canadian crude oil, receiving more than 95% of our exports,” the authors note.  

“Despite some economic headwinds, mining has been a steady source of growth for the Canadian economy,” MAC CEO Pierre Gratton said. “As Canada and its allies work to secure critical minerals to meet economic, security, and climate goals, these numbers show the wealth that could come to Canada if we develop our mineral endowment.”  

Employment statistics 

Mining employed some 430,000 people in Canada, with an additional 281,000 in indirect employment. This means that one in every 28 employees in the Canadian labour force works in a mining-related job.  

The minerals industry is also an important employer of Indigenous peoples, providing jobs for more than 12,000 individuals in 2023. 

Mining activities in Canada will require more than 100,000 new workers over the next decade, the report says. The industry can build on its success in recruiting Indigenous employees, but will need to increase recruitment of women, young workers and visible minorities to reflect the demographics of the Canadian workforce, MAC asserts, adding that increasing the number of university and college graduates in mining-related fields will also help to create a strong pool of mining workers for the next generation. 

But Gratton cautioned that the country cannot take these statistics for granted.  

“Geopolitical challenges, national security concerns, the transition to a low-carbon economy and the basic need to build and sustain a strong economy in the face of tariffs will require far more mined materials than we currently produce,” Gratton said.

“Canada’s mining sector is better positioned than most to withstand economic headwinds caused by tariffs, so now is the time to double down on attracting new investment into this important sector of the Canadian economy.” 

The full report is here.