R E S O U R C E S - M I N I N G
The mining industry represents about $50 billion a year, or about 4% of Canada’s GDP. Although appearing to be only a small part of the overall economy, mining is crucial for a number of reasons:
• It is the prime employer in a very large number of Canadian communities.
• It was and is used by the federal government to develop access to remote regions.
• It supports the development of spin-off, supplier industries including transportation, utilities, construction, manufacturing and industrial development and supplies them with raw materials for manufacture.
Though Canada is recognized as a world leader in many resource extraction activities, its resource extraction industry is not as competitive as many off-shore locations, due to its more stringent environmental regulations and the higher cost of labour.
Mining development and production is tied to the global consumption of raw materials. Prices for mined materials fluctuate with supply and demand. World pricing in foreign currencies is the main driver for resource extraction management, determining the creation of new mines, and the production rates of existing mining operations.
New mine development is also tied to global and local construction industry costs, such as the price of steel and fuel. Recent increases in the price of steel and fuel has delayed development in several geographic locations in Canada.
Demand for base metals and minerals is strong, fuelled partly by economic expansion in China and other Eastern countries. The demand for gold and other precious metals and minerals is also strong, fuelled by currency and economic turbulence.
Changing Client Needs
Mining and related companies will need to deal effectively with constantly changing mining regulatory frameworks, ranging from initiatives such as the Kyoto protocol, to changes in the local regulatory frameworks.
Dillon has serviced mining clients in Canada for several decades, following the philosophy of partnering with clients, and helping them succeed by adding value. While a small player in the industry, we offer high value services such as:
• expertise in a wide range of environmental services
• monitoring and reporting requirements
• environmental compensation issues
• mine closure procedures
Dillon’s major strength is our history of a strong working relationship with provincial and federal public officials via our extensive office network, combined with our approach to client relationships.