Canada's Metals & Minerals Industry Sees $10.5 Billion in Construction Starts on Horizon for Second-Half 2015

Researched by Industrial Info Resources (Sugar Land, Texas)--The Canadian Metals & Minerals Industry isn't far behind that of the U.S. in projects set to begin construction in the second half of 2015, with $10.54 billion worth now scheduled, according to Industrial Info's project database. Almost 70% of the total can be found in three places: Nunavut, British Columbia and Quebec.

Click on the image at right for a graph detailing Metals & Minerals Industry projects that are set to begin construction in Canada in the second half of 2015, by province or territory.

Nunavut leads all other provinces and territories in spending for Metals & Minerals projects set to begin construction in the second half of the year, although nearly all of the territory's amount--$3.43 billion--is attributed to a single, deeply disputed project: Baffinland Iron Mines Corporation's (Oakville, Ontario) expansion of its controversial Mary River Iron Ore Mine, near Pond Inlet. The project, which is part of a long-term plan to ramp up the 3.5 million-ton-per-year operation to 20 million tons per year, has faced opposition from environmental activists, who are concerned about the possible impact on wildlife, including walruses, and the Inuit people, who are worried it will damage property. For more information, see June 12, 2015, article - Western Canada to See More than $20 Billion in Project Kickoffs in Third-Quarter 2015, with Renewables in Lead.

British Columbia is in second place with $2.42 billion in projects set to kick off from July through December. Among the most-watched is Canpotex International Canada Limited's (Saskatoon, Saskatchewan) $350 million construction of the first phase of a potash export terminal in Prince Rupert. The facility, which is expected to hold between 11.5 million and 12 million tons per year of potash, is designed to handle vessels of up to 180,000 dead-weight tons. The project is being developed alongside Prince Rupert Port Authority's expansion of the Ridley Island road, rail and utility corridor, which also is being planned to boost export capacity. Hatch Mott MacDonald (Iselin, New Jersey) is performing engineering, procurement and construction (EPC) services.

Quebec takes the bronze with $1.39 billion in slated kickoffs, including BlackRock Metals Incorporated's (Montreal, Quebec) $700 million construction of an iron, titanium and vanadium mine and mill in Chibougamau. The open pit is expected to produce 3 million tons per year of concentrate over the 30-year mine life. It also includes a 27-kilometer railway that will connect it to Rio Tinto plc's (NYSE:RIO) (London, England) own rail system, transporting the produced concentrate to planned ship loading facilities at Saguenay Port Authority's Grande-Anse Marine Terminal. BBA Incorporated (Montreal) is serving as consultant.

Among the remaining provinces and territories, Saskatchewan, which is one of the world's leading exporters of potash, has the largest project: Karnalyte Resources Incorporated's (TSX:KRN) (Calgary, Alberta) $653 million, first-phase construction of a carnallite solution mine and potash-processing plant in Wynyard. The facility, which is designed to produce 625,000 tons per year of potash from carnallite minerals, is the first of a three-phase, $2.09 billion project. Foster Wheeler USA Corporation (Houston, Texas), a subsidiary of Foster Wheeler AG (NASDAQ:FWLT) (Baar, Switzerland), is performing EPC services.

More than two-thirds of the industry's TIV--about $7.12 billion--is related to 38 projects that are now in the planning stages, where plenty of factors could increase, decrease or eliminate the expected spending. The Metals & Minerals Industry also has five projects worth about $3.4 billion in the engineering stages, while 28 projects worth $74 million already have kicked off the first stage of construction and will kick off the next in the second half of the year.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.