An information bulletin from Natural Resources Canada states that annual productivity growth in the country’s minerals and metals sector exceeded that of the total economy between 1984 and 1998.
(The minerals and metals sector is understood to include mineral exploration, mining and quarry industries, primary metals, fabricated metal products and non-metallic mineral industries.)
According to the report, titled Productivity in the Minerals and Metals Sector, productivity in Canada’s coal industry grew at the rate of 6% per year, eclipsing gains in most other industries (generally about 1%).
Furthermore, Canada’s miners consistently out-produced their American competitors. The average Canadian miner of iron ore, for example, produces 4.2 tonnes per hour versus 3.7 tonnes in the U.S. Coal and uranium miners in Canada also have a greater yield per hour than do their U.S. counterparts.
The metals sector accounts for 4% of Canada’s gross domestic product, which is significantly larger than the 3% represented by information technology.
The productivity growth is largely due to three factors: increased investment; innovations in technology; and an increase in the number of skilled workers.
Mining technology has advanced considerably over the previous two decades, thereby boosting efficiency, and Canadian mining companies have remained competitive by reinvesting heavily in technology. In fact, the ratio of investment to value-added in the sector was 50% greater than in manufacturing as a whole over the past two decades. In other words, Canadian mining companies ensured their short-term and long-term contribution the Canadian economy by investing in themselves.
Most of the money was invested in innovative technology, which has occurred at all levels of mining and processing, from exploration to protection of the environment. Some of these innovations include global positioning systems, remote-sensing, robotics and geochemical techniques. Improvements were also made in environmental monitoring and rehabilitation.
The number of skilled, educated miners in the workforce continues to increase. In 1981, only about one-third of all workers in the metals and minerals sector had a post-secondary education, whereas, by 1996, the vast majority had as much. This has resulted in many high-paying jobs in rural and remote areas.
Strong productivity growth has permitted Canada’s minerals and metals sector to expand. As a result, the sector has maintained a constant share of the country’s total economic output. Between 1994 and 1998, for example, 13 of the fastest-growing companies by revenue were mining companies.
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