Slight increase in 1992 value of Canadian mineral output

The total value of Canada’s mineral production in 1992 increased by 0.6%, or about $200 million from the 1991 level, the federal department of Energy, Mines and Resources reports.

Preliminary estimates show that the total value of production of all mineral commodities, including mineral fuels, increased from $35.2 billion in 1991 to $35.4 billion in 1992.

Of the four mineral commodity groups — metals, non-metals, structural materials and fuels — fuels recorded the only increase in overall production value. A gain of about $900 million in the total value of mineral fuels production was partly offset by a decline of about $700 million in the total value of non-fuel mineral production.

Gains in overall production value (compared with 1991) were led by crude petroleum (+$790 million), zinc (+$340 million) and natural gas (+$210 million).

Declines were led by gold (-$260 million), coal (-$250 million) and elemental sulphur (-$200 million).

Excluding mineral fuels, the overall value of production declined to $14.6 billion in 1992 from $15.3 billion in 1991, a decrease of 4.4%. Based on production value, the top commodities in 1992 were

— gold, $2.1 billion;

— copper, $2.1 billion;

— zinc, $1.7 billion;

— nickel, $1.7 billion;

— iron ore, $1.1 billion; and,

— potash, $1 billion.

Non-fuel minerals accounted for 41.2% of the total value of Canada’s mineral production in 1992.

The total value of metallic mineral production fell by 2.5%, from $10.5 billion in 1991 to $10.2 billion in 1992. Gold and copper continued to be the two leading metals in Canada on the basis of their overall production values, although both metals registered reduced production levels.

Gold production fell by 10.5% as a result of a number of mine closures and reduced production at several operations. Gold prices continued to remain low. Copper production declined by 4.6% because of a mine closure in British Columbia and reduced production at some locations, particularly in Quebec. Gold and copper production were each valued at about $2.1 billion. Zinc placed third among the metallic minerals on the strength of a 10.2% increase in production combined with a higher average price in 1992. Compared with 1991, when prices declined significantly, the overall value of zinc production rose by 24.7% in 1992 to $1.7 billion.

The value of nickel production was estimated at slightly less than $1.7 billion. Total nickel production remained essentially unchanged from the previous year. However, nickel prices followed a declining trend, attributed to weak international markets and increased world supply.

The value of the production of non-metallics, including minerals such as asbestos, potash, salt and sulphur, declined by 7.7% to $2.2 billion in 1992 from $2.4 billion in 1991. Of the leading non-metallics, potash and elemental sulphur recorded gains in production levels, while asbestos and salt recorded decreases.

The value of structural materials production (including clay products, sand and gravel, stone, cement and lime) fell to $2.2 billion in 1992 from $2.4 billion in 1991. Reduced production levels of structural material commodities were attributed to weak activity in the non-residential construction sector. On a province-by-province basis, Ontario contributed the largest share of nonfuel mineral production, accounting for 32.2% of the total value, followed by Quebec (18%), British Columbia (12.7%), Saskatchewan (8.6%) and Manitoba (7.2%). The other provinces and territories accounted for the remaining 21.3%. The fuels sector includes crude petroleum, natural gas, natural gas byproducts and coal. Together, they accounted for 58.8% of the total value of Canada’s mineral production in 1992.

The value of mineral fuels production increased by 4.4% from $19.9 billion in 1991 to $20.8 billion in 1992. This gain of about $900 million was attributed to increases in the values of production of crude oil (7.6%), natural gas (4%) and natural gas byproducts (5.5%). This gain was partially offset by a decline in the overall value of coal production (-13.2%). Although coal production declined in 1992, the production of crude oil, natural gas and natural gas byproducts all recorded increased levels.

Coal production declined by 9.3% to 64.6 million tonnes, with a total value of $1.7 billion. The decline in coal production was the result of difficulties at three major coal mines in British Columbia, which involved restructuring problems and labor difficulties. Production in British Columbia, Canada’s largest coal-producing province, fell by 32.1% in 1992, while production increased in Alberta, Saskatchewan and Nova Scotia.