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 Mining, Minerals & Petroleum
Sector Structure
Size: The value of production in Manitoba’s mining and minerals industry in 2004 was $1.4 billion, comprising: Nickel (49%), Zinc (10%), Copper (10%), Gold (5%), Other Metals (5%), Industrial Minerals (7%), Petroleum (14%).
The above considers extraction only, which contributed 1.7% of Manitoba’s total GDP in 2004. When smelting and further processing is included, along with indirect effects, the mining sector comprises 5.0% of GDP.
Employment in Manitoba’s mineral industry (self employed plus paid employees) averaged 5,800 in 2004, an increase of 9.4% from 2003.
Dominant Activities:
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Mining, smelting, refining of base & precious metals
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Mining/quarrying of industrial minerals
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Crude oil extraction
 Structure & Concentration
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There are approximately 50 companies active in metal mining exploration/production in Manitoba. Two companies employ approximately half of the workforce in this sector. Manitoba has 6 producing mines (metals), 2 operating smelters and 2 refineries.
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There are about 20 companies active in the industrial minerals sector in Manitoba.
- There are approximately 40 companies that produce oil in Manitoba, ranging from large multinationals to small locally based producers. Manitoba has 1,710 wells capable of producing oil, with 119 new wells drilled in 2004. Crude oil produced in Manitoba is shipped through the Enbridge pipeline system to refiners in southern Ontario and the northeast and north-central areas of the United States.
Highlights
- Mining is the second largest primary resource sector of the Manitoba economy. Base metals and articles of base metals account for about 11% of the province’s total exports while mineral products represent approximately 10%.
Sector Capabilities
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Base and precious metals: copper, nickel, zinc, gold
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Industrial minerals: tantalum, cesium, dolomite, spodumene, gypsum, salt, dimension stone, limestone, peat, lime, crushed rock, sand and gravel aggregate
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Crude oil extraction
Competitive Strengths
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Rich reserves
Rich metal deposits in Manitoba’s Precambrian Shield have been mined economically for decades. Based on recent discoveries in the Flin Flon - Snow Lake area, two new mines have been developed that will extend operations there until 2016, approximately 90 years after the first mines were opened. Similarly, new investments in Inco’s Birchtree project near Thompson are projected to extend mining operations there until 2016, about 60 years after initial production.
Although oil has been produced in Manitoba for over 50 years, the province is still relatively underexplored. Production has been obtained from only a small part of the total sedimentary sequence present in the province. Due to the relatively shallow depth of sedimentary rocks in Manitoba and the generally flat terrain, drilling costs are relatively low.
Manitoba mineral resources with potential for future economic development include platinum-group elements (platinum, palladium and rhodium), titanium, vanadium, chromite, silica and potash. Diamond exploration is ongoing but to date no significant kimberlites (the host rocks for diamonds) have been found. Potential also exists for the exploitation of Manitoba’s abundant ultramafic rocks, which could become important in the future in the sequestration of carbon dioxide.
Factor Strengths
In addition to rich mineral deposits and occurrences, Manitoba offers a number of economic factor advantages that support the mining and minerals sector including: affordable land, at or near-surface geological resources, a transparent land tenure system, permitting and protected areas process, competitive business costs, skilled labour, high-quality transportation infrastructure, access to a sea port, and low cost, reliable electricity.
Trends
- Mining investment has been one of the major sources of improved production in the province’s mining industry. For the five years 2000 to 2004, average annual capital investment in Manitoba’s mining industry was approximately $250 million per year.
Key Players
Related Links
Contact
Mr. Gary Ostry
Manager, Minerals Policy & Business Development
Mineral Resources Division
Manitoba Science, Technology, Energy & Mines
Tel: (204) 945-6564
Fax: (204) 945-8427
gostry@gov.mb.ca
www.gov.mb.ca/iedm/mrd
Mr. John Fox
Acting/Assistant Deputy Minister, Mineral Resources Division
Manitoba Science, Technology, Energy & Mines
Tel: (204) 945-4317
Fax: (204) 945-1406
jfox@gov.mb.ca
www.gov.mb.ca/iedm/petroleum
Petroleum
Keith Lowdon,
Acting Director, Petroleum Branch
Box 1359
227 King Street West
Virden, Manitoba
R0M 2C0
Tel: 204-748-4262
Fax: 204-748-2208
Email: klowdon@gov.mb.ca
www.gov.mb.ca/iedm/petroleum
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Nov. 20, 2006
