Canada’s mining industry is expected to invest nearly C$140 billion in the country over the next five years.
Mining sector in Canada
Canada?s mining industry is expected to invest nearly C$140 billion in the country over the next five years.
Canada is home to more mining companies than anywhere else; about 60% of the world?s
exploration companies are Canadian. In addition, Canadian mining companies spend more on
exploration programmes than any other country. In 2009, Canadian companies had global mining
assets of C$109 billion with Latin America/Caribbean, Africa and US the top three regions.
Canada is rich in natural resources and currently produces over 60 minerals and metals. It is the
number one producer of potash and ranks in the top five for the production of diamonds,
tungsten, zinc, nickel, platinum group metals and many others. In addition the country has the
fifth largest coal deposits. Nearly 700 mining and mineral processing operations, including 140
underground and open-pit mines, are currently active.
The Mining Association of Canada (MAC) estimates nearly C$140 billion in capital
expenditures will be spent in Canada through to 2017; C$71 billion of this on non-oil sands
These 87 non-oil sands project will occur in 11 provinces and territories with investment ranging
from a low of C$3 billion to a high of nearly C$9 billion.
Over the next 5 years investments in the mining sector will be US$ 47 billion. Main companies
Opportunities are not just available selling to the Canadian operations of the mining companies;
as mentioned above Canadian mining companies are active world-wide, operating nearly 400
mines in Latin and South America, the U.S., Africa and Europe. While many of these companies
have subsidiaries in the country of operation, many major buying decisions at made at the
Precious metals (mainly gold) look to remain the leading commodity with base-metals group
second and uranium third. Rare earth elements, including chromite, are expected to remain
Aside from South Africa and Australia, Canada is the largest market for mining and mining-
related equipment. In 2010, the country imported C$6.2 billion of equipment, about C$176
million from the UK. About ¾ of mining equipment is imported.
Equipment Value of UK imports (C$)
Off-highway use dumpers 61,061,800
Self-propelled mechanical excavating machinery 28,523,900
Parts of cranes, work-trucks, shovels 21,017,200
Sorting, screening, separating or washing machines (stones, ores) 14,115,600
Mechanical front-end shovel loaders 14,004,800
Rock drilling or earth boring tools 11,122,000
Latest export opportunities ? Mining
Latest export opportunities - Canada
Getting into the market
Canadian mining operators are known to procure locally, are technologically advanced and can
supply most of what is required for successful modern mining. However, the increase of multi-
national mining companies operating in Canada has lead to a corresponding increase in global
procurement over the past decade.
In Canada there are two traditional distribution channels: direct sales and/or distributor/agent.
Direct sales are usually for large, heavy machinery with high initial costs or equipment that is
very niche oriented. Direct sales can be made either to the mining operator or the Engineering,
Procurement, Construction (EPC) company contracted by the operator. Manufacturers of
smaller, less expensive equipment are more likely to choose a distributor or independent sales
agent. In either case relationships with both parties are essential.
Opportunities exist in niche areas, for example, specialized alloy equipment for use in nitrogen
plants, soft rock mining boring machines, electric conveyors/belts that don?t support combustion
and other technologically advanced equipment that will increase production while reducing
More about doing business in Canada
Market intelligence is critical when doing business overseas, and UKTI can provide bespoke
market research and support during overseas visits though our chargeable Overseas Market
Introduction Service (OMIS).
To commission research or for general advice about the market, get in touch with our specialists
in country - or contact your local international trade team.
Tracey Grindal, UKTI, Calgary. Tel: +00 1 403 539 2246 or email: email@example.com
Contact your local international trade team
UKTI runs a range of events for exporters, including seminars in the UK, trade missions to
overseas markets and support for attendance at overseas trade shows.
Latest events ? Mining
PDAC 2012 International Convention, Trade Show & Investors Exchange ? Mining
March 4-7, 2012
CIM Conference & Exhibition: Edmonton 2012: Minerals for all Seasons
May 3-9, 2012
More about OMIS and other UKTI services for exporters