p Preliminary. 
 
1 Less than 1/2 unit. 
 
Source: Energy, Mines and Resources Canada, Ottawa, 1988. 
  CANADA MINERALS YEARBOOK—1988ance (MEDA) in 1983-84 had a dramatic
impact on mine exploration and development. Exploration expenditures totaled
$513 million in 1986, $1.09 billion in 1987, and about $840 million in 1988.
The program allowed the investor to deduct depletion in the year it was earned
from income of any source. 
 The sale of flow-through shares has raised $3 billion for exploration from
1983 to 1988. Where exploration was financed at least in part with flowthrough
shares, mineral deposits have either come into production since 1983 or are
currently being prepared for production. At least 17 of the 25 new commitments
in 1988 are for gold projects. During the 1975—87 period, emphasis
on base metal projects dedined from 62.6% of total mineral exploration expenditures
in 1975 to 13% in 1987. Expenditures on exploration for precious metals (gold,
silver, and platinum-group metals) increased from 6.7% in 1975 to 82% in
1987. 
 The new Canadian Exploration Incentive Program (CEIP) instituted on July
21 , 1988, replaced MEDA as of January 1 , 1989. Only those exploration expenditures
that have been financed by flow-through shares will be eligible for CEIP.
The program provides a Government grant equal to 30% of eligible exploration
expenses up to $8.4 million per year; the depletion allowance will be reduced
to 16% beginning on January 1, 1990. The new CEIP was expected to reduce
exploration activity, particularly when Canada has an urgent need of more
exploration for copper, lead, zinc, and nickel to replenish its declining
ore reserves. 
 
 
PRODUCTION 
 
 
 The value of total mineral output, including metals, industrial minerals,
and fuels, increased by almost 10% from 1987 to $30. 1 billion. According
to the Canadian Department of Energy, Mines and Resources (EMR), the met-

 
964 
als sector had an extraordinary performance with its output value reaching
$10.8 billion, an increase of 36%. The output value of industrial minerals
grew to $4.0 billion, an increase of 16% . The value of structural materials
was $2.3 billion, an increase of 9.5%. The total nonfuel sector value increased
to $15.7 billion, an increase of 29°7o. The value of fuels produced,
excluding uranium, decreased by $800 million or 12% , mainly as a result
of lower~ oil prices. Nevertheless, this sector, which included oil, natural
gas, natural gas byproducts, and coal, contributed $14.5 billion or 48% of
the total value of Canadian production. The dollar values of gold, uranium,
lead, sulfur, oil, and natural gas byproducts were adversely affected by
a combination of the decrease in market prices and by the firming of the
Canadian dollar. 
 The 10 leading mineral commodities, based on value of output, were petroleum,
natural gas, nickel, copper, gold, zinc, coal, natural gas byproducts, iron
ore, and uranium. The text tables show the production values of the Provinces
and Territories in billion dollars and the values of principal mineral production
in million dollars. 
 
Province or Territory 
1 987 
l988~ 
Alberta 
12.9 
12.1 
Ontario 
4.2 
5.8 
British Columbia 
2.7 
3.2 
Saskatchewan 
2.4 
2.5 
Quebec 
2.1 
2.2 
Manitoba 
.8 
1.3 
Northwest Territories 
.7 
.8 
Newfoundland 
.5 
.7 
New Brunswick 
.5 
.7 
Yukon 
.3 
.4 
Nova Scotia 
.3 
.4 
Prince Edward Island 
(1) 
(1) 
Total 
27.4 
30.1 
 
Commodity 
1987 
l988~ 
Metals: 
960 
2,646 
Nickel 
 
 
Copper 
1 450 
1,883 
Gold 
1,663 
1,800 
Zinc 
1,112 
1,678 
Ironore 
1,053 
1,128 
Uranium 
891 
900 
Silver 
320 
307 
Lead 
298 
271 
Platinum-group 
137 
140 
Molybdenum 
95 
88 
Total1 
7,979 
10,841 
Industrial Minerals: 
562 
860 
Potash 
 
 
Cement 
752 
823 
Sand and gravel 
580 
636 
Stone 
440 
488 
Sulfur, elemental 
394 
375 
Asbestos 
179 
218 
Salt 
180 
210 
Lime 
127 
154 
Clayproducts 
159 
150 
Gypsum 
66 
72 
Sulfur in smelter gas 
60 
60 
Total' 
3,499 
4,046 
Mineral Fuels: 
9,156 
7,597 
Petroleum, crude 
 
 
Natural gas 
3,480 
4,041 
Coal 
1,238 
1,550 
Natural gas byproducts 
1 41 5 
1,308 
Total' 
15,289 
14,496 
p Preliminary. r Revised. 
 
 
1 Data may not add to totals shown because of independent rounding. 
 
Source: Energy, Mines and Resources, Canada, Ottawa, 1988. 
 
 
 
 
 The Canadian minerals industry improved its performance as a result of reduced
production costs, increased productivity, and higher commodity prices, especially
for base metals. 
 New projects announced to be brought on-stream will require capital expenditure
of more than $610 million. Onehalf of this new investment will be for gold
projects; 17 of the 25 new projects committed for production will be gold
mines. Since 1977, 160 mineral deposits