Competitiveness, Training and Trade
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Mining, Minerals & Petroleum
Mineral Resources | Industrial Minerals | Petroleum | Mining & Minerals Convention
Sector Structure
Size: The 2006 value of production in Manitoba’s mining and minerals industry reached a record high of $2.6 billion, comprised of : Nickel (39%), Zinc (14%), Copper (16%), Gold (3%), Other Metals (3%), Industrial Minerals (5%), and Petroleum (20%).
The above considers extraction only, which contributed 2.1% of Manitoba’s total real GDP in 2006. When smelting and further processing is included, along with indirect effects, mining and minerals comprises 4% to 5% of provincial GDP.
Employment in Manitoba’s mineral industry (self employed plus paid employees) averaged 6,500 in 2006, an increase of 10.2% from 2005.
Dominant Activities:
- Mining, smelting, refining of base & precious metals
- Mining/quarrying of industrial minerals
- Crude oil extraction
Structure & Concentration
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There are over 85 companies active in mineral exploration and mining in Manitoba. Two companies employ approximately half of the workforce in this sector. Manitoba has 8 producing mines (metals), 2 operating smelters and 2 refineries.
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There are about 20 major producers active in the industrial minerals sector in Manitoba.
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There are approximately 47 companies that produce oil in Manitoba, ranging from large multinationals to small locally based producers. A record high of 476 new wells were drilled in 2006. At December 2006, Manitoba had 2,337 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
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Mining is the second largest primary resource sector of the Manitoba economy. Base metals account for about 12% of the province’s total commodity exports while mineral products represent approximately 18%.
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The production value of Manitoba’s top four metals - nickel, copper, zinc and gold - reached $1.878 billion in 2006, up from $1.067 billion in 2005, an increase of 75.9 per cent.
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BHP Billiton is investing $15 million to explore Manitoba’s untapped potash deposits in the Russell-Binscarth area of southwestern Manitoba.
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Three advanced exploration projects that have the potential to be Manitoba’s next mine are currently underway. In the Wabowden area, Crowflight Minerals has completed a favourable Bankable Feasibility Study and is progressing with the construction of mine infrastructure at the Bucko nickel-copper deposit. The Snow Lake region hosts two advanced projects including HudBay Minerals’ $8.5 million Bur deposit for copper-zinc and Black Pearl Minerals’ Ferro/Wekusko gold property.
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In addition, the following projects are undergoing pre-feasibility studies for potential mine development:
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Independent Nickel Corporation at the former producing Lynn Lake nickel-copper mine,
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Mustang Minerals’ Maskwa nickel-copper project in southeastern Manitoba,
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Victory Nickel’s Minago nickel-copper project northwest of Lake Winnipeg, and
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Rolling Rock Resources’ Monument Bay gold project in northeastern Manitoba.
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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 new oil wells drilled in the province quadrupled from 119 in 2004 to 476 in 2006. In 2006, oil production in Manitoba reached a record level of 1,239,157 cubic meters with a value of $530 million.
Sector Capabilities
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Base and precious metals: copper, nickel, zinc, gold
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Industrial minerals: tantalum, cesium, dolomite, spodumene, gypsum, salt, dimension stone, limestone, peat, lime, crushed rock, sand and gravel aggregate
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Crude oil extraction
Competitive Strengths
Rich reserves
Rich metal deposits in Manitoba’s Precambrian Shield have been mined economically for decades. Ongoing development at two mines in the Flin Flon – Snow Lake area will extend operations there until 2016, approximately 90 years after the first mines were opened. Similarly, new investments in CVRD 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 and potash. Diamond exploration is ongoing but to date no significant kimberlites (the host rocks for diamonds) have been found. Potential also exists for the exploitation of Manitoba’s abundant ultramafic rocks, which could become important in the future in the sequestration of carbon dioxide.
Factor Strengths
In addition to rich mineral deposits and occurrences, Manitoba offers a number of economic advantages that support the mining and minerals sector including: affordable land, at or near-surface geological resources, competitive business costs, skilled labour, high-quality transportation infrastructure, access to a sea port, and low cost, reliable electricity.
Favourable Policy Environment
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Manitoba is rated as having the best policy environment in the world for mining investment, based on the results of the Fraser Institute Annual Survey of Mining Companies 2006/2007. Among the resources and support available to the industry in Manitoba are: financial incentives for exploration, a transparent land tenure system, efficient permitting and protected areas processes, a readily accessible geoscience database, environmental stewardship balanced with industry needs. Manitoba also 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
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Mining investment has been one of the major reasons for increased metal production in the province. From 2002 to 2006, capital investment in Manitoba’s mining industry averaged approximately $303 million per year.
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The 2006 increase in mineral production is attributed in large part to dramatic price increases for various metals including nickel, zinc, copper and gold which rose an average of 70 per cent in value (nickel 52.4 per cent, zinc 123 per cent, copper 76.9 per cent and gold 29.5 per cent).
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Company spending for mineral exploration is at or near all-time highs: $52.9 million for 2005 and $46.9 million estimated for 2006.
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Oil exploration in 2006 resulted in expenditures of $400 million with 2007 expenditures expected to top $300 million.
Key Players
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Related Links
- Manitoba Companies Directory
- Mining Contractors & Consultants
- Mining & Exploration Companies
- Industrial Minerals Exploration & Production Companies
Contact
Mr. Gary Ostry,
Manager, Minerals Policy & Business Development
Mineral Resources Division,
Manitoba Science, Technology, Energy & Mines
Tel: 204-945-6564
Fax: 204-945-8427
E-mail: gary.ostry@gov.mb.ca
Web: www.manitoba.ca/minerals
Keith Lowdon,
Acting Director, Petroleum Branch
Box 1359
227 King Street West
Virden, Manitoba, Canada R0M 2C0
Tel: 204-748-4262
Fax: 204-748-2208
E-mail: keith.lowdon@gov.mb.ca
Web: www.gov.mb.ca/stem/petroleum
