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Released December 02, 2021 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Canada's gross domestic product (GDP) is on track for growth as the country reopens, and is expected to return to peak levels in 2022, with minimal headwinds. Benefitting from this is the country's Metals & Minerals Industry, which is seeing changes and some shift in the types of projects as Canada and the rest of the world moves into the era of energy transition. In a Wednesday webinar, Joe Govreau, Industrial Info's vice president for research for the Metals & Minerals Industry, and Michael Bergen, executive vice president of Marketing and Analytics, discussed the outlook for the country's Metals & Minerals sector.
Canada is the second-largest market after China in regard to the value of active Metals & Minerals projects, and mining easily represents the largest sector in the country's industry, with about $90 billion in active projects. Stronger metals demand has increased project activity, and metals prices, while off their peaks of earlier this year, remain elevated, which is good news for mining project development. Other project drivers in the mining sector include the electrification of the mining sector and a goal of net-zero emissions from oil sands operations by 2050. Coupled with this is the rising demand for battery metals, which is expected to continue its ascent, especially for lithium, cobalt and nickel.
Outside of mining, Canada is the largest exporter of cement and aluminum to the U.S., representing about 50% of aluminum imports and 33% of imported cement, as well as 18% of the iron and steel imports. As a result, Canada stands to benefit from the U.S.' recently passed $1.2 trillion Infrastructure Investment and Jobs Act.
According to Govreau, there are about 250 high- and medium-probability Metals & Minerals projects scheduled to kick off in Canada in 2022, representing about $13.7 billion. The mining sector dominates planned spending, with about 94% of the overall value. Gold mining projects represent the largest portion, followed by potash and ferroalloys.
Spending at smelters represents the largest non-mining sector, with projects such as Alcoa Corporation (NYSE:AA) (Pittsburgh, Pennsylvania) and Rio Tinto's (NYSE:RIO) (London, England) joint venture pilot project at an Ontario smelter for the development of electrolytic pot cells aimed to commercialize new technology that will eliminate all direct greenhouse gases and produce oxygen. Once operational, the demonstration will continue through 2024 and could lead to the process being used at all of Alcoa's smelters. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can click here for the detailed report. The second largest non-mining sector segment is steel production, in which the Canadian government is assisting companies in the decarbonization process.
All in all, barring any major, unexpected headwinds, Canada's Metals & Minerals Industry stands to benefit in the current "new normal" climate, with elevated metals prices, increasing infrastructure development in both Canada and the U.S., and the energy transition's responsibility for increased battery metals demand and new, cleaner technologies.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 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.
Canada is the second-largest market after China in regard to the value of active Metals & Minerals projects, and mining easily represents the largest sector in the country's industry, with about $90 billion in active projects. Stronger metals demand has increased project activity, and metals prices, while off their peaks of earlier this year, remain elevated, which is good news for mining project development. Other project drivers in the mining sector include the electrification of the mining sector and a goal of net-zero emissions from oil sands operations by 2050. Coupled with this is the rising demand for battery metals, which is expected to continue its ascent, especially for lithium, cobalt and nickel.
Outside of mining, Canada is the largest exporter of cement and aluminum to the U.S., representing about 50% of aluminum imports and 33% of imported cement, as well as 18% of the iron and steel imports. As a result, Canada stands to benefit from the U.S.' recently passed $1.2 trillion Infrastructure Investment and Jobs Act.
According to Govreau, there are about 250 high- and medium-probability Metals & Minerals projects scheduled to kick off in Canada in 2022, representing about $13.7 billion. The mining sector dominates planned spending, with about 94% of the overall value. Gold mining projects represent the largest portion, followed by potash and ferroalloys.
Spending at smelters represents the largest non-mining sector, with projects such as Alcoa Corporation (NYSE:AA) (Pittsburgh, Pennsylvania) and Rio Tinto's (NYSE:RIO) (London, England) joint venture pilot project at an Ontario smelter for the development of electrolytic pot cells aimed to commercialize new technology that will eliminate all direct greenhouse gases and produce oxygen. Once operational, the demonstration will continue through 2024 and could lead to the process being used at all of Alcoa's smelters. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can click here for the detailed report. The second largest non-mining sector segment is steel production, in which the Canadian government is assisting companies in the decarbonization process.
All in all, barring any major, unexpected headwinds, Canada's Metals & Minerals Industry stands to benefit in the current "new normal" climate, with elevated metals prices, increasing infrastructure development in both Canada and the U.S., and the energy transition's responsibility for increased battery metals demand and new, cleaner technologies.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 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.
