The current uncertainty in Asian markets makes it unlikely there will be a significant increase in metal prices in 1999. Only from the year 2000 on can we expect to see a recovery; indeed, the value of Quebec’s metals could decrease slightly this year.
Unless there is a reversal resulting from a significant increase in metal prices or a major discovery in the province, total exploration and deposit appraisal expenditures in Quebec will likely fall in the months ahead.
Off-mine-site exploration and appraisal spending by junior companies could be particularly affected, given the low amount of public financing raised during the last two quarters of 1998.
The slowdown in exploration activities should be noticeable in all regions of the province, with the possible exception of northern Quebec, where the recent disclosure of geoscientific data (including geochemical surveys of lake bottoms and geological maps of the Far North project) and the discovery of several new occurrences should help maintain the level of exploration expenditures observed in 1998.
In 1999, the production of refined nickel is expected to rise significantly, whereas consumption might decrease somewhat. In Quebec, nickel production is poised to increase significantly as a result of the first full year of production at the Raglan mine.
Moreover, the quantity of zinc produced in Quebec could increase significantly, owing to the startup of Noranda’s Bell Allard mine in the Matagami area. Production at Bell Allard is slated to begin in the third quarter.
-The preceding appeared in Summary and Highlights of the Quebec Mining Industry, a publication of the Ministry of Natural Resources.
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