Mining activity in Canada's north could double in the next decade, says the Conference Board of Canada. But its forecast appears to undervalue current production and is sprinkled with "what ifs" and "maybes."
The January report forecasts that Canada's overall northern metal and non-metallic mineral output will grow by 91 per cent from 2011 to 2020, a compound annual growth rate of 7.5 per cent. The board terms that growth as "staggering" compared with anticipated 2.2 per cent annual growth in the Canadian economy as a whole for the same time period.
The report projected that the annual gross domestic product of mining in the north will surge to $8.5 billion in 2020 from $4.4 billion in 2011. This estimate appears hopelessly pessimistic: according to the Mining Association of BC, in 2011 alone overall value of B.C. mineral production was $8.6 billion, if sand and gravel extraction are included.
The report identifies potential hurdles to mining growth, including inadequate or non-existent infrastructure and skilled-labour shortages.
from Western Investor March 2013
