Despite the impacts of the worldwide recession on the Canadian mining sector – with some 32 operations closed or suspended over a half year period – the industry remains a significant contributor to the economy, providing C$40 billion to the country’s GDP in 2008 and employing 351,000 workers in mineral extraction, smelting, fabrication and manufacturing. This is reported in the Facts and Figures 2009 publication, which shows mining’s contribution to the economy. In conjunction with the release of the report, the Mining Association of Canada (MAC) has urged governments at the 66th annual Mines Ministers meeting to take action to sustain Canada’s mining industry.

While mining is important in remote communities, it also generates prosperity in Canada’s larger cities. It is estimated that 3,140 suppliers provide equipment, consumables and expertise to the industry, including hundreds of manufacturing, engineering, geotechnical, environmental and financial firms.

The MAC also says it is an important contributor to government coffers. According to a recent study by ENTRANS Consultants, highlighted in the report, the industry paid a record-high C$11.5 billion in taxes and royalties to F/P/T governments in 2008. While these payments will likely decline in 2009, the MAC says it is now, more than ever, that Federal and Provincial Mines Ministers must work together to ensure long-term stability of this important sector.

MAC: “It is critically important that Canada’s natural resource ministers maintain and enhance their dedication to economic development. In this sense, advocacy for infrastructure projects, for improved regulatory efficiency, for more open access to land, for northern development, and for tax incentives to encourage increased investment, among other objectives, remains fundamental to the mandate of natural resource ministers.”

“Minerals and metals help build the products and infrastructure essential to modern life. The mineral exploration and mining industry makes a significant annual contribution to the Canadian economy, including through payments to governments, and its output is fundamental to the emergence of clean energy technologies,” said Gordon Peeling, President and CEO of the MAC.

Peeling: “The Canadian industry faces competitiveness challenges, both at the raw materials and value-added processing stage. By focusing on the priority areas, Canada’s Mines Ministers can contribute significantly to a stronger Canadian industry.”