Entrepreneurship, Training and Trade
(1,140 KB) 
Mining, Minerals & Petroleum
Bookmarks on this page:
|
 |
Sector Structure
Mining is the second largest primary resource sector of the Manitoba economy. The 2008 value of production for Manitoba’s mineral industry totalled $2.5 billion, comprising:
- Metallic minerals (61%) including Nickel (28.6%), Zinc (7.9%), Copper (15.6%), Gold (4.5%), and Other Metals (4.8%),
- Industrial Minerals (5.6%), and
- Petroleum (33%).
In 2008, the mineral industry accounted for approximately 6% of provincial GDP and 10% of total exports. Employment in Manitoba’s mineral industry averaged 5,200 in 2008, an increase of 2% from 2007 (Source: Statistics Canada, Labour Force Survey).
Dominant Activities:
- Mining, smelting, refining of base & precious metals
- Mining/quarrying of industrial minerals
- Crude oil extraction
Structure & Concentration:
- There are over 54 companies active in mineral exploration and mining in Manitoba. Two mining companies employ approximately half of the workforce in this sector. Manitoba has 8 producing mines, 2 operating smelters and 2 refineries.
- There are about 20 major producers active in the industrial minerals sector in Manitoba.
- There are approximately 47 companies that produce oil in Manitoba, ranging from large multinationals to small locally based producers. 316 new wells were drilled in 2008. At December 2008, Manitoba had 2,691 wells capable of producing oil. Crude oil produced in Manitoba is shipped through the Enbridge pipeline system to refiners in southern Ontario and the northeast and north-central areas of the United States.
Highlights
-
Crowflight Minerals’ Bucko Lake Nickel Project at Wabowden began nickel production in 2008 with full commercial production expected to be achieved early in the second quarter of 2009. The mining operation has bolstered northern economic and social development by providing jobs for about 120 people, including local residents who received mill processing and underground mine training to work at the mine. All twenty graduates from the two courses were employed by Crowflight Minerals and its contract mining company.
-
Vale Inco spent over $200 million in capital improvements to its Manitoba operations in 2008. Capital projects included the installation of an electrostatic precipitator to mitigate air emissions at the company's Thompson nickel smelter, plus the beginning of a $116 million project to automate the company's Thompson nickel refinery through the installation of new robotic technology.
-
HudBay Minerals Inc. continues to advance their 2007 Lalor zinc-copper discovery near Snow Lake with 6 diamond drills active on the property. In January 2009, HudBay discovered a gold–rich zone in the deposit, offering the company another potential resource development opportunity. HudBay plans to spend $13 million on Lalor in 2009 to advance exploration. The discovery garnered the 2009 Prospectors and Developers Association of Canada’s award for the most significant Canadian mineral discovery.
-
Exploration projects moving forward with feasibility studies for new mine development include HudBay Minerals’ Lalor zinc deposit near Snow Lake, Mustang Minerals’ Maskwa nickel deposit east of Lac du Bonnet and Victory Nickel’s Minago nickel deposit northwest of Lake Winnipeg.
-
Garson Gold Corporation continues to assess the economics of mining at their New Britannia project in Snow Lake with plans to re-activate the mill which is currently on care and maintenance.
-
VMS Ventures continues to explore a significant copper-zinc discovery, the Reed Lake deposit, near Snow Lake.
-
Oil production in Manitoba has undergone rapid growth since 2004, stemming from the discovery and development of the new Sinclair field in south-western Manitoba. Due in large part to the increased activity in this area, the number of producing wells within the province has risen from 1397 in December of 2003 to 2691 producers in December 2008. For 2008, a new annual production record of almost 1.37 million cubic metres (8.6 million barrels of oil) worth an estimated $830 million was reached.
-
BHP Billiton is investing $15 million to explore Manitoba’s untapped potash deposits in the Russell-Binscarth area of southwestern Manitoba.
Sector Capabilities
-
Base and precious metals: copper, nickel, zinc, gold
-
Industrial minerals: cesium, dolomite, spodumene, gypsum, salt, dimension stone, limestone, peat, lime, crushed rock, sand and gravel aggregate
-
Crude oil extraction
Key Players
Competitive Strengths
Mineral Endowment
-
Metal deposits in Manitoba’s Precambrian Shield have been mined for decades. Ongoing development at Flin Flon and Snow Lake will extend operations there until 2016, approximately 90 years after the first mines were opened. The Bucko Lake Nickel Mine, located in the prolific Thompson Nickel Belt, is Canada’s newest nickel mine and is expected to produce an average of 11 million pounds of nickel per year over its currently projected 7 year mine life. Similarly, new investments in Vale Inco’s Birchtree project near Thompson are projected to extend mining operations there until 2016, about 60 years after initial production. In 2006, San Gold Corporation reopened the gold mine at Bissett where the mining history of the region’s mineral-rich Rice Lake gold belt dates back to 1911.
-
Although oil has been produced in Manitoba for over 50 years, the province is still relatively underexplored. Production has been obtained from only a small part of the total sedimentary sequence present in the province. Due to the relatively shallow depth of sedimentary rocks in Manitoba and the generally flat terrain, drilling costs are relatively low.
-
Manitoba mineral resources with potential for future economic development include platinum-group elements (platinum, palladium and rhodium), rare earth elements, uranium, titanium, vanadium, chromite, silica, diamonds and potash.
Business Strengths
-
In addition to mineral deposits and occurrences, Manitoba offers a number of economic advantages that support the minerals sector including: high mineral-potential, a comprehensive geoscience knowledge-base, financial incentives for exploration and mining, a transparent land-tenure system, competitive business costs, skilled labour, environmental stewardship balanced with industry needs, high-quality transportation infrastructure, access to a sea port, and low-cost, reliable electricity.
-
Manitoba is rated in the top ten worldwide on policy environment for mining investment based on the results of the 2008-2009 Fraser Institute Annual Survey of Mining Companies. Manitoba recently announced new supports for exploration and mining in the province including
-
the Mineral Exploration Assistance Program, which offers $2.5 million annually to assist in the discovery of new mineral deposits and was recently renewed for another three years,
-
a $3 million partnership with the federal government to remap Manitoba’s far north where there is potential to find deposits of gold, base metals, uranium, platinum group elements and diamonds,
-
a new $1 million Training and Workforce Retention Initiative for mining companies and their employees to implement customized training and workforce retention initiatives that will help bridge periods of downtime through up-skilling or re-skilling opportunities that match current and future job demands and by supporting apprentices to complete their apprenticeship programs, and
-
a new progressive mining tax rate of 10 to 17% from the current 18% level and a significant increase to the Mineral Exploration Tax Credit.
-
Manitoba offers various financial incentives for new oil exploration and ready access to a comprehensive information base including forms, production input, technical well files, maps and production histories.
Trends
-
The total value of production for Manitoba’s minerals, including mined metals, industrial minerals and petroleum, totalled $2.5 billion in 2008, down 17.9% from 2007 due largely to price declines.
-
The production value of Manitoba’s top four metals - nickel, copper, zinc and gold - reached $1.425 billion in 2008, down 36% from the 2007 value of $2.229 billion (nickel down 46.5%, copper down 7.4%, zinc down 46.1% and gold up 26.5%). With the exception of gold, these commodities ended 2008 with prices that were significantly lower than 2006 and 2007 levels.
-
In 2008, the international market for Manitoba’s base metals sharply reversed the significant price gains from previous years as global demand fell and inventory levels rose substantially. The higher stocks pushed many base metal prices down to levels near historical averages which prevailed prior to the spike.
-
With declining demand, Manitoba nickel production fell by 8.3% in 2008, copper output was down 7.2% and zinc production decreased 6.9%.
-
Gold output in the province increased substantially in 2006 and continued to rise in 2007. Production volumes in 2008 posted a 2.3% increase.
-
A Statistics Canada survey of investment intentions shows that mining investment (including oil and gas investment) in Manitoba is expected to decline 58% in 2009. This follows a 129% increase in mining capital investment between 2004 and 2008, the second-highest increase among provinces.
-
Company spending for mineral exploration reached an all-time high of $141. 5 million in 2008, a 38% increase from 2007. Although total exploration was largely focussed on base metals, increasing 21.1% in 2008, precious metal exploration rose by almost three-quarters compared to 2007.
-
Oil exploration in 2008 resulted in expenditures of $320 million with 2009 expenditures expected to top $300 million. The industry has spent $1.5 billion in the last five years developing Manitoba’s oil resources.
-
For the petroleum industry, 316 total wells were drilled, a high level but down 3.1% from 2007. Manitoba’s oil production volume increased 3.7% with 1.3 million cubic metres of output. Oil prices increased to $97.27 per barrel, on an annual average basis, from $72.52 in 2007, impacting the value of production in Manitoba which totalled $830.6 million in 2008, a 38.2% increase from 2007.
Related Links
- Manitoba Companies Directory
- Mining Contractors & Consultants
- Mining & Exploration Companies
- Industrial Minerals Exploration & Production Companies
- Mineral Resources Division
- Industrial Minerals
- Petroleum
- Mining & Minerals Convention
Contact Info
Chris Beaumont-Smith |
Tel: 204-945-6564 |
Keith Lowdon |
Tel: 204-945-6574 |
