PROFIT PERFORMANCE STABILITY PROFIT PERFORMANCE INNOVATION DIVERSITY DIVERSITYINV STABILIEST TIYN PROFIT PERFORMANCE INNOVATION PROFIT DIVERSITY STABILITY STABILITY DIVECANADA’SRSI COMPETITIVETY INN ADVANTAGESOVATION PROFIT DIVERSITY STABILITY PROFIT PERFORMANCE INNOVATION PROFIT DIVEMININGRSITY STABILITY PERFORMANCE INNOINDUSTRIESVATION DIVERSITY PROFIT PERFORMANCE STABILITY PROFIT PERFORMANCE STABITLITY PROFIT DIVERSITY STABILITY DIVERSITY INNOVATION PROFIT PERFORMANCE STABITLITY PROFIT DIVERSITY ’S CANADA’S KEY STRENGTHS

SECTOR Abundant mineral and metal resources

In 2015, Canada’s mining, mining-related A WEALTH OF Sustainable mineral support activities and mineral processing OPPORTUNITIES development: one project industries employed nearly 373,0001 workers and contributed $60.3 billion to Canada’s Canada produces some 60 minerals and and one review in a gross domestic product (GDP),1 accounting metals, and is the world’s largest producer clearly defined time period for 3.3 percent of the total GDP.1 In 2015, of . It is also a major producer of Canada’s mineral exports, which include ores, aluminium,* , diamonds, , , concentrates, and semi- and final-fabricated group metals, salt, tungsten Sophisticated financial mineral products, accounted for 19.1 percent and .5 In Canada, there are over institutions of Canada’s total domestic exports.1 1 200 producing mines (metal, non-metal and ); 50 non-ferrous smelters, refineries » In 2015, Canada remained the world’s and steel mills; and 7,000 stone quarries Broad expertise top destination for mineral exploration, and gravel pits. Canada’s total value of in geoscience attracting 14 percent of global non- mineral production was $40.8 billion in ferrous exploration expenditures.2 2016.6 Canada’s top five mineral products by value for 2016 were gold, , potash, Extensive science and » Canada had some 3,700 suppliers ore and coal. Their combined value was technology network in 2015.3 These are included within $24.0 billion, accounting for almost 60 percent the consulting services, contracting, of the total value of mineral production.6 equipment, supplies and consumables and support services sectors.

» Canada remained the world’s top destination * (Canada accounts for a significant amount of for non-ferrous mineral exploration the global production of primary aluminium, but investment in 2015, attracting 13.5 percent does not host a domestic source of bauxite, an ore that is first processed into alumina and of global exploration budgets, while then into aluminium. Thus, Canadian-based Canadian-based companies accounted for operators must import bauxite and alumina.) 31.8 percent of global exploration budgets.1 1. Natural Resources Canada, Minerals and Metals Fact Book – 2016. Estimates based » Stock of foreign direct investment on data. in Canada’s mining industry 4 2. SNL Metals and Mining, World Exploration totalled $10.4 billion in 2015. Trends 2016.

3. Mining Association of Canada, Facts & The mining industry is investing in renewable Figures of the Canadian Mining Industry energy systems to improve reliability and 2016. Based on Statistics Canada data. reduce energy costs, with renewable 4. Statistics Canada. energy systems generating power and heat 5. Natural Resources Canada, Exploration and installed or under development at mines Mining in Canada: An Investor’s Brief. 2016. in several countries, including Canada.7 Estimates based on Statistics Canada data.

6. Natural Resources Canada, Information Bulletin: Canadian Mineral Production. March 2017.

7. International Energy Agency, Renewables 2015 Global Status Report. MINERAL RESOURCES CANADA’S MINING INDUSTRY is comprised of companies covering a GREENLAND wide spectrum of activities ALASKA (USA) all along the value chain.

YUKON

NORTHWEST TERRITORIES NEWFOUNDLAND & LABRADOR

BRITISH COLUMBIA ALBERTA MANITOBA QUEBEC Saskatoon Vancouver PRINCE EDWARD ONTARIO ISLAND Québec City NOVA SCOTIA Winnipeg Ottawa Halifax

UNITED STATES OF AMERICA Montréal NEW BRUNSWICK Waterloo London Niagara BRITISH COLUMBIA ONTARIO » Available resources include aluminium,* copper, gold, lead, » Available resources include gold, , copper, chromite, lead, zinc, coal, silver, and nickel nickel, cobalt and diamonds » Leading companies: Teck Resources, Rio Tinto, Goldcorp » Leading companies: KGHM Polska Miedź, Vale, Glencore, De Beers Canada, Goldcorp CANADA’S NORTH » Available resources include gold, diamonds, uranium, zinc, QUEBEC copper, silver, tungsten, cobalt and nickel » Available resources include copper, gold, zinc, iron, » Leading companies: De Beers Canada, ArcelorMittal, aluminium,* magnesium, , nickel and diamonds Agnico Eagle Mines Limited, Rio Tinto, TMAC Resources » Leading companies: Alcoa, Tata Steel, Rio Tinto, Glencore, Goldcorp, Hecla Mining Company ALBERTA » Available resources include oil and gas, iron and vanadium ATLANTIC CANADA » Leading companies: Repsol, Nexen-CNOOC, » Available resources in Newfoundland and Labrador: iron, gold, Ironstone Resources copper, nickel and zinc » Available resources in New Brunswick: zinc, lead, gold SASKATCHEWAN and tungsten » Available resources include potash and uranium » Available resources in Nova Scotia: and coal » Leading companies: PotashCorp, , BHP » Leading companies: Glencore, Vale, Tata Steel Billiton, The Mosaic Company, AREVA

RECENT INVESTMENTS

K+S Aktiengesellschaft De Beers Vale In May 2017, Germany-based A South Africa-based company, Brazil-based company Vale, by K+S celebrated the opening of the De Beers Group of Companies expanding its Voisey’s Bay open pit the new potash mine in Canada. invested in the Gahcho Kué Project, to go underground, is extending mine K+S Potash Canada’s Bethune Mine located in the Northwest Territories. life by about 15 years to 2032. An has an investment volume of around This is De Beers’ third diamond additional 400 full-time positions will $4.1 billion creating more than mine in Canada, and the total capital be created to support the underground 300 permanent jobs in Canada. cost is approximately $1 billion. operations and expanded site services. CANADA’S ADVANTAGES

PUBLIC GEOSCIENCE

Legislation in Canada requires the publication of all publicly funded geological surveys. Making geoscientific data available for free is meant to encourage the exploration and development of mineral and energy resources. FINANCIAL INCENTIVES INFRASTRUCTURE » Flow-through shares (FTS) enable a company to transfer eligible exploration According to the World Bank, Canada and development expenses to investors. has one of the world’s best logistics Investors can then apply for tax credit infrastructures,9 including ports and railways. for these expenditures. This feature generates attractive prices for FTS, enabling a junior company to fund GOVERNANCE exploration activities more easily. A clear and transparent pluri-jurisdictional— » Canada offers a variety of financial federal, provincial and territorial—regulatory incentives, including the accelerated regime reflecting Canada’s commitment capital cost allowance (ACCA) and to the environment and effective Canadian exploration expenses (CEE). engagement with Indigenous peoples.2

READY ACCESS EXPERTISE SECOND TO CAPITAL TO NONE

Canada’s leading equity markets, the Toronto Access to a reliable supplies and service OPEN TO TRADE Stock Exchange (TSX) and the TSX Venture industry contributes to the success of AND INVESTMENT Exchange (TSXV), are home to more than investments at all stages, and Canada’s mining half of the world’s public mining companies. expertise covers the full range: exploration, Canada remains one of the world’s most open The TSX and TSXV, on a combined basis, geophysics, geology, geochemistry, remote countries in terms of trade and investment in are also the world’s number one markets sensing, drilling, exploration, financing, mining. The country does not restrict foreign for mining financing, accounting for over investment analysis, due diligence, legal involvement in the development of its mineral 50 percent of the total dollars raised in the services, analytical laboratories, engineering resources—except for uranium. Canada has global public mining sector in 2015. More services, logistical support, environmental trade and investment initiatives with North than $5 billion in public equity capital was management and more. Canada also offers America, Europe, Asia-Pacific, India, China, raised on TSX and TSXV by listed mining a skilled and experienced labour force Korea, the Americas and Africa. Canada also companies through 738 financings. This supported by skills-development programs in offers duty-free access to the United States, represents 56 percent of the number of educational institutions and training initiatives Mexico and many other global markets. global mining financings worldwide.8 led by various levels of government.2

8. (TMX) Group. 2016.

9. World Bank, International Logistics Performance Index. 2016. SUPPORT PROGRAMS AND INNOVATION

Canada’s mining industry develops technological innovations in the production and processing of minerals and metals, which includes the Green Mining Initiative (GMI), targeting energy efficiency and sustainable mining. Many foreign mining firms take advantage of Canada’s expertise through R&D programs and Canadian innovative technologies cover collaboration with research organizations: a wide range of sectors, including information and communications » Scientific Research and Experimental technology, and machinery, among others: Development Program (SR&ED) Mira Geoscience – Developed advanced » Canadian Mining Industry 3D and 4D earth modelling and data Research Organization (CAMIRO), management solutions for mineral Sudbury, Ontario exploration, resource evaluation, and geotechnical hazard assessment. » Canadian Mining Innovation Council (CMIC), Ottawa, Ontario Symboticware – Developed ruggedized hardware and software solutions for real- » Centre for Excellence in Mining time gathering, transmitting, and analyzing Innovation (CEMI), Sudbury, Ontario equipment and sensor data for improved safety, productivity and asset utilization. » CanmetMINING and CanmetMATERIALS of Natural Resources Canada Maestro Mine Ventilation – Developed sensors, monitoring and » Mining Innovation, Rehabilitation telecommunications hardware for and Applied Research mine ventilation automation. Corporation (MIRARCO), Sudbury, Ontario MacLean Engineering – Developed heavy equipment innovation engine » Northern Centre for Advanced with roots in underground mining. Technology (NORCAT), Greater Sudbury, Ontario Hard-Line Solutions – Developed heavy equipment remote control » International Minerals products from the ground up to save Innovation Institute (IMII), lives while increasing efficiency in Saskatoon, Saskatchewan mining and other industries.

» COREM, Québec, Quebec Clickmox Solutions – Developed a monitoring system for depth of stress- » C-CORE, St. John’s, induced fractures in underground mine Newfoundland and Labrador openings, a robust bore hole clearance robot, drones for underground mines » National Research Council and a laser-based vehicle positioning Canada (NRC) system for GPS-denied environments. AN ENABLING CANADA HAS A STRONG AND STABLE business climate that is open for business, BUSINESS investment, and trade. Canada benefits from a sound, efficient ENVIRONMENT financial system supported by low taxes and business costs and a government investing in the innovative, clean, inclusive economy of tomorrow. WORLD-CLASS CLUSTERS OF INNOVATION, WITH GOVERNMENT AS PARTNER Canada has strong geographic and sectoral A WELCOMING BUSINESS clusters, as well as R&D-intensive sectors ENVIRONMENT with the lowest business costs in the G7. Canada is the second best place Source: KPMG for business in the G20.

Source: Forbes FINANCIAL STABILITY Canada’s banking system, ranked third by A HIGHLY EDUCATED AND the World Economic Forum (WEF), remains TALENTED WORKFORCE one of the soundest in the world following eight consecutive first place standings. Canada has the most educated talent pool in the OECD with more than half of its population Source: World Economic Forum aged 25-64 having a tertiary level education.

Source: OECD A GREAT PLACE TO INVEST, WORK AND LIVE INVEST IN LOW BUSINESS Canada ranked first among 60 countries for TAX RATES quality of life. Canada is ranked first in the G7 and G20 for overall prosperity of citizens. Canada is the most tax competitive 111 Sussex Drive, Ottawa, country in the G7. Sources: U.S. News and the Ontario, K1N 1J1, CANADA Legatum Prosperity Index Source: KPM Catalogue number: FR5-38/21-2016E-PDF ISBN 978-0-660-05246-5

Summer 2017

Unless otherwise noted, all values in this publication are in Canadian dollars. The content is based on the Follow us on Twitter! latest available information at time of publication. @invest_canada

Images: MacLean EV 975 Omnia Scaler-Bolter (cover image) and Hard-Line’s TELEOP Tele-Remote Control System (page 2 image) both tested in Sudbury, Ontario. Drilling Rig Potash Mine investincanada.com Saskatchewan Canada (page 5 image). All Rights Reserved.