Despite pressure from lower metal prices, the economic outlook for Canada’s three Northern territories is good, driven by gold, base metal and diamond mining.
RENO (MINEWEB) – ‘With market conditions difficult in 2013, mining companies remain cautious”, says The Conference Board of Canada’s Territorial Outlook: Spring 2014. “And that sentiment can still be felt. Many companies are against budgeting for power spending on mineral exploration this year, led by a significant pullback in Nunavut.”
“Financing remains difficult to obtain for new projects and exploration programs,” said the report.
Nevertheless, “The business case for many of the mining projects in the North remains strong,” the document forecasts. “Future demand for minerals will be sturdy as the world continues to claw its way back from the Great Recession. In fact, Nunavut and Yukon will see their economics advance at a steady pace over the next two years as investment to expand mineral production provides a big boost to job creation and economic development over the next few years.”
“Long-term demand prospects for base metals and gold are positive and will lead to the active development of several more mines over the next decade,” said the three Conference Board of Canada’s economists—Justine Cook, economist; Marie-Christine Bernard, associate director, national and province forecast; and Glen Hodgson, senior vice president and chief economist–who prepared the outlook report. “Some large mining projects are already underway, while others are expected to go ahead over the near term.”
NUNAVUT
“While the outlook for the mining industry remains bright, there are risks in that outlook” for Nunavut, the economists advised.
The Mary River iron ore mine and Agnico-Eagle’s Meliadine gold mine will boost Nunavut mining output beginning in 2015 and 2018, said the report. Agnico’s Meadowbank is slated for closure in 2018. However, “The Meliadine mine will be a larger operation than Meadowbank and will operate at a lower cost per ounce of gold produced,” said the economists.
“Overall, we expect the mining industry, which is composed of metal mining and mining services, to grow by 2.3% this year,” said the report. “Next year, although the forecast calls for slightly lower production at Meadowbank, the beginning of the production at Mary River will boost growth in the industry to 7.3%, followed by 5.3% growth in 2016.”
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