Metals in decline — Canada’s mineral value rises in 1993

In 1993, the value of Canada’s mineral production increased by 1.9%, or about $700,000, from the previous year.

Preliminary estimates by the federal Department of Natural Resources indicate that the value of all mineral commodities, including mineral fuels, increased to $36.1 billion from $35.4 billion in 1992.

Yet of the four mineral commodity groups (metals, non-metals, structural materials and fuels), only fuels increased significantly in terms of overall value.

The value of metal and non-metal production declined by $1.6 billion. Results for individual commodities were mixed; showing increases were gold and coal, while zinc, copper and nickel declined.

Excluding fuels, the overall value of mineral production declined to $13.1 billion from $14.7 billion in 1992, a decrease of 10.8%. Top non-fuel commodities last year were gold ($2.3 billion), copper ($1.8 billion), zinc ($1.2 billion), nickel ($1.2 billion), iron ore ($1 billion) and potash ($900 million).

Non-fuel minerals accounted for 36.3% of the total value of Canada’s mineral production in 1993, down 41.4% from the previous year.

The total value of metallic mineral production fell 13.7%, to $8.8 billion from $10.2 billion in 1992. Gold, copper, zinc, nickel and iron ore continued to lead on the basis of overall value of production, although all except gold registered reduced values of output.

Volume of gold output fell 4.6%, largely because of cutbacks at several large operations, but a second-half increase in the gold price resulted in a gain in value.

Copper production declined 17.7% in value because of mine closures, as well as reduced output of copper at nickel and zinc mines.

Zinc value dropped 31.4% in reaction to lower prices triggered by a worldwide surplus of zinc concentrate. Zinc production in Canada fell 16.5% in 1993. The total nickel value dropped $300 million despite an increase of 1.8% in net production volume.

The value of iron ore production fell 4.4% last year despite a small increase in production.

The value of output of the non-metallic group (asbestos, potash, salt, peat, sulphur, etc.) declined 9.6% to $2 billion in 1993. Salt and peat recorded increases in value, while asbestos and potash decreased.

Among the provinces, Ontario contributed the largest share of the non-fuel mineral output, accounting for 33.6% of the total. Quebec was next, accounting for 19.5%, and British Columbia was third at 12%.