Canada's mining industry is on the right path to continued
prosperity despite current market volatility, according to the
Mining Association of Canada (
In a speech to members of the Vancouver Board of Trade, MAC
President and CEO Pierre Gratton said regulatory reform, investment
in infrastructure and promotion of strong trade relations with
countries such as China, the world's biggest consumer of metals,
will keep Canada globally competitive.
Despite a slowdown in Chinese growth to 7.6% in the second
quarter, from decades of 10% average annual growth, Gratton noted
that most prices remain at relatively high levels, despite a fall
off in recent months, and emphasized that the long term
fundamentals that have supported rising commodity prices over the
past decade remain.
"The mining super cycle is not over, it is taking a pause. This
is the nature of the mining business, which is cyclical," said
Gratton. "The industry is generally better prepared for the current
slowdown compared to last time, which was much more dramatic."
Gratton says globalization and the rise of Asia, and China in
particular, are behind the steadily rising metal prices in recent
years, and the quick recovery from the 2008 2009 global financial
crisis. Rapid industrialization in China is driving demand for
minerals and metals used in a wide range of construction and
manufacturing applications, as the country builds out its
infrastructure base. This means China is a major consumer of two of
BC's top producing commodities, copper and steel-making coal.
"China will continue to drive demand for minerals and metals
well into the future, and is being followed by a number of emerging
nations such as India and Brazil."
This accelerated Chinese growth is propelling investment in the
resource sector, in particular mineral rich countries such as
Canada. It has never been more important for Canada to remain
competitive to take advantage of this strong, steady growth.
"Canada has always thrived on trade and the two-way free flow of
goods and capital," Gratton said. "We need to stay the course as a
free trader, and proactively engage the emerging new world order or
be left behind."
MAC estimates approximately $140 billion of new mining
investments for Canada over the next 5 to 10 years. BC is expected
to see more than $30 billion in investment over the next 10 years
thanks to its wealth of minerals and its position as Canada's
gateway to key Asian markets.