British Columbia in strategic position to benefit from mining's largest
VANCOUVER, B.C, Sept. 7, 2012 /CNW/ - Canada's mining industry is on the
right path to continued prosperity despite current market volatility,
says the Mining Association of Canada (MAC).
In a speech to members of the Vancouver Board of Trade, MAC President
and CEO Pierre Gratton said regulatory reform, investment in
infrastructure and promotion of strong trade relations with countries
such as China, the world's biggest consumer of metals, will keep Canada
Despite a slowdown in Chinese growth to 7.6 per cent in the second
quarter, from decades of 10 per cent average annual growth, Gratton
noted that most prices remain at relatively high levels, despite a fall
off in recent months, and emphasized that the long-term fundamentals
that have supported rising commodity prices over the past decade
"The mining super cycle is not over, it is taking a pause. This is the
nature of the mining business, which is cyclical," said Gratton. "The
industry is generally better prepared for the current slowdown compared
to last time, which was much more dramatic."
Gratton says globalization and the rise of Asia, and China in
particular, are behind the steadily rising metal prices in recent
years, and the quick recovery from the 2008-09 global financial
crisis. Rapid industrialization in China is driving demand for
minerals and metals used in a wide-range of construction and
manufacturing applications, as the country builds out its
infrastructure base. This means China is a major consumer of two of
BC's top-producing commodities—copper and steel-making coal.
"China will continue to drive demand for minerals and metals well into
the future, and is being followed by a number of emerging nations such
as India and Brazil."
This accelerated Chinese growth is propelling investment in the resource
sector, in particular mineral-rich countries such as Canada. It has
never been more important for Canada to remain competitive to take
advantage of this strong, steady growth.
"Canada has always thrived on trade and the two-way free flow of goods
and capital," Gratton said. "We need to stay the course as a free
trader, and proactively engage the emerging new world order or be left
MAC estimates approximately $140 billion of new mining investments for
Canada over the next 5-to-10 years. BC is expected to see more than
$30 billion in investment over the next 10 years thanks to its wealth
of minerals and its position as Canada's gateway to key Asian markets.
The Mining Association of Canada is the national organization for the
Canadian mining industry. Its members account for most of Canada's
production of base and precious metals, uranium, diamonds,
metallurgical coal, mined oil sands and industrial minerals and are
actively engaged in mineral exploration, mining, smelting, refining and
semi-fabrication. Please visit www.mining.ca.
SOURCE: Mining Association of Canada (MAC)
For further information:
For more information, or to schedule media interviews with Pierre Gratton, please contact:
Jessica Draker, Director of Communications, Mining Association of Canada (613) 295-8005
Alternative contact: Megan Helmer, Account Manager, PR Associates (604) 681-1407