Fuels help boost mineral output to $41 billion

The total value of output from Canada’s mineral industry rose an estimated 5.2% last year to $41.3 billion, thanks largely to higher prices for petroleum products. The estimate, released by the federal department of Energy Mines and Resources (EMR), includes data from four sectors of the mineral industry: fuels, metallics, nonmetallics and structural materials.

Within the fuels sector, which includes coal, natural gas, gas byproducts and crude petroleum, the value of production rose 18.8% to $23.5 billion in 1990 compared with $19.8 billion in 1989.

“This overall increase of about $3.7 billion over the previous year’s level was largely accounted for by petroleum,” says EMR.

Although the volume of petroleum produced actually fell by 1.1% in 1990, the effect of higher prices caused the value of output to rise by 27.3% or about $3 billion over the 1989 level, says EMR.

Excluding fuels, however, the value of other mineral production declined to $17.8 billion from $19.5 billion a yearago. Most of the decrease occurred within the metallic minerals group, reflecting lower average prices for some of the leading metals.

For metallic minerals, the total value of production fell 8.6% to $12.8 billion, down from $14 billion in 1989. Nickel experienced the most significant decline, plunging by $1 billion or 33.5% in 1990. Meanwhile, the volume of nickel output actually increased by 0.5%.

That metal was followed by zinc which declined $262 million, or 9.6%, even though its volume of production was up.

Iron ore showed the next most significant decrease in dollar terms with production value falling $57 million to reflect a lower level of output in 1990.

Losses within the metals group were partly offset by gains in the value of someother metals such as copper, which rose $106 million or 4.4%.

As well, the value of output for platinum group metals increased by $64 million or 45% while gold rose $62 million or a modest 2.7%.

Nonmetallics, including asbestos, potash, and sulphur,declined by 8.1% to $2.4 billion from $2.6 billion in 1989. Structural materials, such as sand, gravel, stone, cement and lime, fell 9.1% to $2.6 billion from $2.9 billion in 1989.

Within the nonfuel sector, the top commodities in terms of value of production last year were copper at $2.5 billion, zinc at $2.5 billion, gold at $2.4 billion, nickel at $2 billion, iron ore at $1.3 billion and potash at $900,000.

On a regional basis, Ontario contributed the largest share of nonfuel mineral output, accounting for 35.5% of the total. Quebec was second with 16.7% followed by British Columbia with 12%, Manitoba with 6.8% and Saskatchewan with 6.3%.