Canada Set for $10.6 Billion in Third-Quarter 2016 Project Kickoffs, Led by Mining and Power Generation

Researched by Industrial Info Resources (Sugar Land, Texas)--With Canada's Oil & Gas Industry sidelined by low prices and the raging wildfires in Alberta, the nation's power-generation and mining businesses are picking up some of the slack in projected third-quarter 2016 project spending. Industrial Info's Project Database shows $10.64 billion worth of projects that are set to begin construction from June through September, with more than 70% attributed to the Metals & Minerals, Power and Food & Beverage industries.

Click on the image at right for a graph detailing Canada's third-quarter 2016 project kickoffs, by industry.

Still, the $10.64 billion total investment value (TIV) is less than half of the $25 billion projection from roughly a year ago for third-quarter 2015, reflecting the toll of rough market conditions. The Western Canadian market region, which includes British Columbia, Alberta, Manitoba, Saskatchewan and the three territories, accounts for almost half of the TIV with $4.89 billion; despite the wildfires, Alberta leads with $2.35 billion. Quebec and Ontario account for $3.1 billion and $2.14 billion, respectively.

The Metals & Minerals Industry holds a wide lead with $4.54 billion in projects expected to begin construction in Canada in the third quarter, with one of the largest being Lamelee Iron Ore Limited's (Montreal, Quebec) $817 million iron ore mine near Fermont, Quebec. The project involves building a 32 million-ton-per-year open-pit mine, with a 14 million-ton-per-year gravity separation concentrator, to produce 5 million tons per year of iron concentrate over a 20-year mine life. For more information, see Industrial Info's project report.

The Power Industry, which is benefiting from federal and provincial support for renewable energy, is looking at $2.21 billion in kickoffs from July through September. These include Pattern Energy Group Incorporated (NASDAQ:PEGI) (San Francisco, California)$194 million Mont Sainte Marguerite Windfarm in Thetford Mines, Quebec. The project involves constructing 46 Siemens (NYSE:SI) direct-drive wind turbine generators, each with a capacity of 3.2 megawatts (MW), for a total capacity of about 147.2 MW. For more information, see Industrial Info's project report.

The Food & Beverage Industry also plays a strong role in Canada's third quarter, with $853 million worth of projects set to begin construction. More than half of this amount is attributed to G3 Canada Limited's (Winnipeg, Manitoba) $500 million grain export terminal in North Vancouver, British Columbia. G3 plans to overhaul an existing dock to support three ship-loading cranes, construct a railcar-receiving facility that will hold three trains, construct grain-storage and grain-cleaning facilities and install dust-aspiration systems to turn dust into pelleted byproduct. G3 expects to store 8 million bushels for international export. For more information, see Industrial Info's project report.

Still, the $10.64 billion in slated kickoffs is anything but certain. Almost 75% of the total TIV--$7.71 billion--is related to 98 projects that are currently in the planning stages, where plenty of factors could increase, decrease or eliminate the expected spending. Canada also has 38 projects worth nearly $2.37 billion in the engineering stages, while 265 projects worth about $566 million are maintenance-related.

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. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.