Four keys to mining success

More than 418,000 Canadians are working in the mining and support sectors, says the Mining Association of Canada

The number is higher than initially thought, and it incorporates new data from Natural Resources Canada. It brings the number of mining employees from 330,000in 2011 to 418,000 people in 2012, accounting for one in every 41 Canadian jobs. Year-over-year employment growth shows an increase of more than 11,000 jobs, or 2.8%, from 2011 to 2012.

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Industry workers have the highest wages and salaries of all Canadian industrial sectors, with an average weekly pay of $1,559, surpassing workers in finance, manufacturing, construction and forestry. With more than 3,200 companies supplying goods and services to mining operations, Canada has one of the largest mining supply sectors in the world.

The mining sector contributed $52.6 billion to Canada’s GDP in 2012 and its exports accounted for$92.5 billion, or 20.4%, of all exports. The value of Canadian mineral production was $46.9 billion in 2012, and mineral exploration and deposit appraisal expenditures maintained the $3.9 billion record set in 2011.

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Canada is a top producer of potash, uranium, aluminum, cobalt, titanium, tungsten, cadmium, diamonds, platinum, sulphur and nickel.

In 2012, the Toronto Stock Exchange and the TSX Venture Exchange held 70% of the world’s mining equity financings, comprising 70% of the equity raised globally for the year.

“Canada’s ability to attract highly-mobile global mining investment is contingent on several factors aside from commodity prices set by the global market,” said MAC’s president and CEO, Pierre Gratton.

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Mining association wish list

• An effective regulatory process: In the face of changes to the Canadian mining regulatory regime, every effort must be made to ensure a smooth transition to the new regulatory model and avoiding delays.
• Sufficient human resources: Mining companies will need to hire more than 145,000 people over the next decade to replace retirees and fill new positions. Having skilled workers is crucial for growth.
• Improved infrastructure: Operating mines are often in remote areas and they require roads, marine access and power grids. A long-term strategic approach to infrastructure investment will be required to fully capitalize on opportunity, particularly in the North.
• Competitive trade and investment environment: There is increasing competition from other mining jurisdictions, such as Australia and China. The federal government needs to establish trade, investment and double taxation agreements, and provide programmatic support to help companies compete.

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Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.