Canada - A Strategic Choice
Canadian Minerals and Metals Industry Canada produces over 60 metals and minerals Contributed some $40 billion to Canada's GDP 369,000 jobs for Canadians in 2006 In 2006, total production of metals, nonmetallic minerals and coal was valued at $33.6 billion ($54.7 billion with the oil sand) 2
2007 = $124 16.3% 8.1% 21.2% 5.5% 7.9% 16.1% 5.6% 2.9% 12.4% 4.0% Notes: Data include base metals, precious metals and diamonds. Based on 1980 international companies with exploration budgets of at least US$100,000. Source: Natural Resources Canada, based on Metals Economics Group s Corporate Exploration Strategies: Worldwide Analysis. 3
/ 2006 17 2007 $7,620 $1 2,980 $1 9,970 25 $3 400 $1,600 $2 3,630 $4,690 $2 6,020 $3 4,160 $1,280 $9,76 0 $670 Note: Revised Spending Intentions Source: Natural Resources Canada, from a federal-provincial-territorial survey of Mineral Exploration, Deposit Appraisal and Mine Complex Development Expenditures, revised. 4
2006 / $4,310 $56 2,040 $224 2,190 $16 2,900 $2,920 $31 2,190 $20 8,610 $390 $47 2,850 $93 9,090 $38 3,410 $547 $212 $102 $22 $211 $14 8,520 $3 910 Value of Canadian Mine Production, by Province and Territory, 2006 (excluding smelting and refining) Note : Data are based on preliminary estimates. Source : Natural Resources Canada, from a federal-provincial-territorial survey on mining and exploration companies; Statistics Canada. 5
Minerals and Metals in Canada Yellowknife (diamonds) Whitehorse (exploration for base metals, gold, and coal) Fort McMurray (oil sands, allied industries) Kitimat (aluminum) Kamloops (copper, molybdenum, gold) Vancouver (allied industries, junior exploration/ mine financing) Trail (lead, zinc) Elk Valley (coal) Athabasca (uranium) Flin Flon (gold, copper, zinc) Fort Saskatchewan (nickel) Saskatoon/ Esterhazy Nunavut (exploration for Diamonds, iron, coal, and base metals) Timmins (zinc, copper, lead, gold) Red Lake/ Hemlo (gold) Thompson (nickel, cobalt) Toronto (allied industries, Sudbury senior exploration/mine (potash, salt) (nickel, copper, financing) cobalt, gold, pgm, allied industries) Raglan (nickel, copper) Rouyn-Noranda (copper, allied industries) Val-d Or (gold, copper, zinc, allied industries) Montréal (allied industries) Voisey s Bay (nickel, copper, cobalt) Labrador City/Fermont Sept-Îles (iron, aluminum) Saguenay (aluminum) Bathurst (zinc, lead) Windsor (gypsum) Thetford Mines (chrysotile) Bécancour (aluminum, magnesium) 6
5000 + 200 +3000 / +/- 50 +2000 $600 34% 22% 23% 14% 4% 4% Pie chart figure includes the value of production from Canadian-mined ores, concentrates and aggregates ($23 billion). The balance ($34 billion) includes the value of production realized from the smelting and refining of domestic and imported ores, concentrates, recyclables, steel, aluminum, as well as, coal and tar sands mining. Source: Natural Resources Canada; Statistics Canada 7
1987 1 2006 9 : 1987 = 100 400 350 300 250 200 150 100 50 0 1987 1988 Real Gold and Silver Index Real Base-Metal Index 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Notes: Index is based on real U.S. dollar prices. Base-metal index includes copper, lead, nickel and zinc. Source: Natural Resources Canada. 2006 4 8
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Fiscal and Taxation Regime Provincial / Territorial governments Alberta, British Columbia, Manitoba, Ontario, Quebec, New Brunswick, Nunavut and the Northwest Territories are lowering corporate income tax rates Reducing or eliminating capital taxes Federal government Reducing corporate tax rate: 22.12% to 15% by 2012 Eliminating corporate surtax by 2008 10
Fiscal and Taxation Regime Example of incentives supporting exploration and mining in Canada: Flow-Through Shares Accelerated Capital Cost Allowance Mine Reclamation Funds 11
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22.12% 200715% 2012 10% / 13.12% 11% 2009 1 1 2008 1 1 GST 2008 1 1 6% 5% 14
1.10 1.05 1.00 0.95 0.90 0.85 0.80 2007/01/01 2007/02/01 2007/03/01 -- 2007/04/01 2007/05/01 2007/06/01 2007/07/01 2007/08/01 2007/09/01 2007/10/01 15
4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 2.7 3.4 2.5 2.8 2.2 1.6 2.8 2.3 1.8 2.7 2.2 3.4 2.0 3.2 0.0 2000 2001 2002 2003 2004 2005 2006 16
600 500 400 300 200 100 0 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 2007 5 9 17
-11.0-4.1-4.4 20.1 17.5 15.9 13.2 12.3 11.4 10.5 10.2 8.4 7.3 6.6 5.5 4.3 50.9 0.9 15.4 2.7 13.0 1.2 3.6 2.3 0.8 0.7 100.0 34.8 11.6 6.8 4.7 0.1 0.8 0.6-20 -10 0 10 20 30 40 50 60 18
1 2 3 4 5 6 7 8 9 10 19
* 10 9 8 7 6 5 4 3 2 1 0 2 5 6 6 6.0 8 9 9 20
G7 25 23 20 15 13 13 14.9 10 5 3 6 7 0 21
55 53 52 52 50 49 49 48 % 45 40 42 41 40 39 39 35 30 22
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