Mineral Exploration is on the Rise in North America

Global interest in Canadian metals and minerals hit a record high in 2011, with investment in exploration reaching a staggering figure of US $3.9 billion. Exploration spending rose by 585% in the period of 2002-2011, enabling Canada to become a global destination of choice for mineral exploration in 2011. There can be no doubt about it. Mineral exploration is booming in North America and particularly in Canada.

 

The value of mineral production in Canada rose around 21% in 2011 to $50.3 billion driven by price increases of minerals. The leading mining provinces in the country that rule in terms of mineral production include Ontario at $10.6 billion, Saskatchewan at $9.2 billion, British Columbia at $8.5 billion, and Quebec at $7.7 billion. In total, the mining industry contributed $35.6 billion to the national Gross Domestic Product. At the same time, it paid more than $9 billion in royalties and taxes to Canadian governments. The industry also employed 320,000 workers across the country.

 

Since there is an intrinsic link between mineral production and exploration activity, we could witness a dramatic expansion of the Canadian mining industry in the coming years. In order to take advantage of the opportunities that the future holds for the industry, it is, however, important to make sure that there is access to the right regulatory and investment environments that are imperative for supporting development. For instance, mineral exploration products have to be in adequate supply so that exploration activity does not suffer any unnecessary delays or setbacks.

 

The rapidly growing industry does face some challenges, one of which is reduced capital access for some miners. Despite these challenges, the economic prospects of the Canadian mining industry can be said to be quite strong. Though the rate of growth in China and other rising markets can be a cause of concern, Canada’s growth is expected to remain strong even if it is at a somewhat slower pace. In fact, the situation in Canada is much less time-consuming and less burdensome than the scenario currently playing out in the United States.