The State of Canada’s Mining Industry 1 TITLE THE MINING ASSOCIATION OF CANADA The Mining Association of Canada (MAC) is the national organization of the Canadian mining industry. We represent companies involved in mineral exploration, mining, smelting, refining and semi-fabrication. Our member companies account for most of Canada’s output of metals and minerals. MAC’s functions include advocacy, stewardship and collaboration. Our goals are to promote the industry’s interests nationally and internationally, to work with governments on policies affecting minerals, to inform the public and to encourage member firms to cooperate to solve common problems. We work closely with provincial and territorial mining associations, other industries, and environmental and community groups in Canada and around the world. DATA AND SOURCES This annual report reflects currently available data, the majority from 2019, though some from prior years and some from 2020. Dollar amounts are expressed in Canadian dollars unless noted otherwise. Author: Brendan Marshall, Vice President, Economic and Northern Affairs Design: McKenna Design & Strategy Acknowledgments: This report could not have been prepared without the significant assistance of the dedicated staff of the Minerals and Metals Sector at Natural Resources Canada. Special thanks are also extended to Cynthia Waldmeier from MAC and Monique Laflèche. 2 TITLE TABLE OF CONTENTS LIST OF FIGURES 04 LIST OF ANNEXES 05 STATE OF THE INDUSTRY AND KEY ISSUES 06 MINING: MINERALS AND METALS ARE ESSENTIAL TO OUR EVERY DAY LIVES 09 1. MINING AND THE CANADIAN ECONOMY 10 Global Economic Trends 10 Mining’s Contribution to the Canadian Economy 13 Mining in the Provinces and Territories 14 Taxes and Other Payments to Governments 16 Indirect Contributions to Mining Industry Suppliers 16 2. THE ACTIVITIES: PRODUCTION, PROCESSING AND TRANSPORTATION 24 Production of Key Minerals 24 Production Values 25 Processing of Minerals 25 Transportation of Mining Products 26 3. THE MONEY: RESERVES, PRICES, FINANCING, EXPLORATION AND INVESTMENT 36 Canadian Reserves 36 Mineral and Metal Prices 36 Financing 37 Exploration 37 Investment 39 4. THE PEOPLE: EMPLOYMENT, COSTS AND INNOVATION 47 Workplace Safety and Health 47 Mining Industry Employment 48 Key Costs 51 Innovation and Research and Development 54 5. THE ENVIRONMENT: SUSTAINABLE DEVELOPMENT AND SOCIAL RESPONSIBILITY 59 Environmental Stewardship 59 Climate Change and the Mining Industry 61 The Clean Energy Economy 64 Indigenous Relations and Benefit Agreements 66 Regulatory Environment 67 6. THE WORLD: INTERNATIONAL MARKET ACTIVITIES AND DEVELOPMENTS 73 Canadian Mining’s International Presence 73 Canada’s Mineral Trade 75 Canada’s Trade Policies 75 The Canadian Investment Regime 78 ANNEXES 84 THE CANADIAN MINING INDUSTRY AT A GLANCE 108 3 TITLE LIST OF FIGURES Figure 1: Canada’s Real Gross Domestic Product by Industry, 2007–2019 17 Figure 2: Canada’s Real Gross Domestic Product, Mining, Mineral Manufacturing, and Oil and Gas, 2008-2019 18 Figure 3: National GDP by Income and Expenditure (2007-2019) 19 Figure 4: Canada, Value of Mineral Production by Province and Territory, 2009 and 2019P 21 Figure 5: Canadian Mining Industry Clusters 22 Figure 6: Total Mineral Development Expenditures, by Stage and Province and Territory, 2019P 23 Figure 7: Value of Canadian Mineral Production, 1999-2019P 29 Figure 8: Canada’s Top Ten Metallic and Non-Metallic Mineral Products, by Value of Production, 2008 and 2019P 30 Figure 9: Production of Synthetic Crude Oil by Oil Sands Mining Plants, Alberta and Canada, by Quantity and Value, 1998-2018 31 Figure 10: Non-Ferrous Smelters and Refineries in Canada, 2019 32 Figure 11: Canadian Production of Selected Refined Metals, 2004-2019P 34 Figure 12: Crude Minerals and Processed Mineral Products Transported by Canadian Railways, 2005-2019 35 Figure 13: Canadian Reserves of Selected Metals, 1980-2018P 41 Figure 14: Metal Prices, 2001-2019 42 Figure 15: Mining Equity Raised—Role of Toronto Stock Exchange, 2000-2019 43 Figure 16: Geographic Reach of TSX-Listed Companies, January 2020 43 Figure 17: Mineral Exploration and Deposit Appraisal Expenditures, by Province and Territory, 2007-2020I 44 Figure 18: Mineral Exploration and Deposit Appraisal Expenditures, by Company Type, 2007-2020 45 Figure 19: Mineral Exploration and Deposit Appraisal Expenditures, by Target, 2009 and 2019P 45 Figure 20: Capital Expenditures in the Canadian Mining Industry, 2009-2020I 46 Figure 21: Minerals and Metals Sector Employment, by Subsector and Product Group, 2019P 55 Figure 22: Cumulative Hiring Requirements by Forecast Scenario (2020-2030) 56 Figure 23: Representation of Women in Mining Industry and All Industries, Selected Occupations and All Occupations (2011 and 2016) 56 Figure 24: Representation of Indigenous Peoples in the Workforce, Mining Industry and All Industries, 2016 57 Figure 25: Representation of New Canadians and Visible Minorities in the Mining Workforce (2006, 2011, 2016) 58 Figure 26: Selected Costs of Production in the Mineral Industry1, 2018 58 Figure 27: MAC Member Company Application of International Standards and Programs 68 Figure 28: TSM Tailings Management 69 Figure 29: TSM Biodiversity Conservation Management 70 Figure 30: TSM Energy Use and GHG Emissions Management 71 Figure 31: Mining Industry Energy and GHG Emissions Data, 1990 and 2014-2018 72 Figure 32: The Geographical Distribution of Canada’s Mining Assets, 2018 79 Figure 33: Canadian Mineral Industry Direct Investment Abroad and Foreign Direct Investment Stocks, 1999-2019P 80 Figure 34: Mining Company Investment in Host Countries-2017 81 Figure 35: Balance of Canada's Mineral Trade, 2019 83 Figure 36: Value of Canada's Mining and Mineral Processing Industry Trade, 2003-2019 83 4 TITLE LIST OF ANNEXES Annex 1: Producing Mines in Canada, 2019 84 Annex 2: Mining Establishments in Canada, by Mineral, Province or Territory, 2018 89 Annex 3: Canadian Production of Leading Minerals, by Province and Territory, 2019P 90 Annex 4: Canada’s World Role as a Producer of Certain Important Minerals, 2019P 91 Annex 5: Mineral Production of Canada, 2010 - 2019P 95 Annex 6: Canadian Reserves of Selected Major Metals, 1978 - 2018P 98 Annex 7: Employment Count and Annual Compensation in the Canadian Mining, Smelting and Refining Industries, 2007–2019 99 Annex 8: Total Compensation per Job, by Select Canadian Industrial Sector, 2007-2019 101 Annex 9: Domestic Exports of Minerals and Mineral Products, by Commodity and Country of Destination, 2019 102 Annex 10: Total Imports of Minerals and Mineral Products, by Commodity and Country of Import, 2019 105 5 TITLE STATE OF THE INDUSTRY AND KEY ISSUES PROTECTING THE HEALTH AND SAFETY OF EMPLOYEES, CONTRACTORS AND COMMUNITIES IS DEEPLY INGRAINED IN THE CANADIAN MINING INDUSTRY’S CULTURE AND IS A POINT OF FOCUS NOW MORE THAN EVER IN THE FACE OF THE ONGOING COVID-19 PANDEMIC. From building mobile testing units at remote mine bars on public transport. This technology, which has been locations, to chartering planes for fly-in fly-out operations to tested by Canada’s National Research Council and several ensure social distancing, to allowing Indigenous employees research entities and certified in independent laboratories, to remain in their home communities with full pay, the eliminates up to 99.99% of bacteria, viruses and other mining sector has prioritized the health and safety of their germs and could be a game changer in preventing the employees, their contractors and the communities in and spread of diseases like COVID-19. around which they operate, and will continue to do so. Markets for many of these products transitioned through Canada’s mining industry supplies the materials required a highly volatile period in spring 2020, with operations for the manufacture of products essential for Canadians, reeling from supply chain disruptions and associated including medical technologies and medications, and it has delays, production curtailments, and in some cases, been critical that supply chains stay open so that mined operational stoppages. Fortunately, mineral and metal products are readily available for the people and businesses prices rebounded over the summer months, with many who rely on them. Mined materials, like gold, carbon, zinc, having exceeded pre-COVID highs at the time of writing. uranium and nickel, are required in the instruments used in Globally, Canadian mining operations have withstood hospitals around the globe. For example, gold is an integral COVID-19 better than many peers in other jurisdictions, ingredient in the hundreds of millions of Rapid Diagnostic with companies adapting their health and safety policies to Tests that are used around the world each year, carbon is accommodate risks, build confidence, and ultimately return needed in everything from hospital furniture to ventilators, to production with comparably limited disruption. and it is thanks to nickel alloys and nickel-containing stainless steel, essential materials in surgical steel, medical Beyond safety, MAC member companies have gone further, devices and diagnostic tools, that we are able to provide making contributions to foodbanks, women’s shelters, medical solutions and prolong lives. Indigenous organizations and health authorities across Canada exceeding $40 million. These are in addition to the Mined metals like copper play an important role in donation of tens of thousands of N95 masks, test kits and killing bacteria and preventing patients from acquiring ventilators