209The Mineral Industry of 
Canada' 
By Charlie Wyche2 
 
 
Although the relatively depressed state of the world's industrial economies
resulted in reduced demand for Canadian minerals in 1978, Canada's mining
and mineral processing industries both showed impressive gains in 1979. The
value of mineral production rose strongly in all but one of Canada's provinces
and territories. Although the volume of output fell for some major metals
in 1979, higher prices improved the outlook for producers and stimulated
many investment projects. Mines that had long been abandoned were reopened,
existing mines were expanded, mining employment increased, 
and new exploration projects were started. The most significant market improvements
were for precious metals, copper, aluminum, rolled steel, molybdenum, and
potash. 
The fuel sector also made impressive gains and attracted new capital for
exploration and development. Offshore oil and gas discoveries made in 1979
were encouraging and helped to make Canada's announced goal of self-sufficiency
in the 1990's much more attainable. Prices for coal and uranium remained
strong, and both industries grew and prepared for future expansion during
1979. 
 
PRODUCTION 
 
According to the Canadian Department of Energy, Mines and Resources, overall
mineral production and production value rose only slightly in 1978, compared
with the 1977 levels, but were up significantly in 
1979. The total value of domestic mine output in 1978 increased only slightly,
to $17.2 billion~~ but the value in 1979 increased by more than 29% and reached
$22.2 billion. Mineral production value accounted for 8.5% of the 1978 gross
national product (GNP), which was estimated at $202.1 billion, and 10% of
the 1979 GNP, which was estimated at $216.7 billion. The value of metals
produced increased 51% in 1979, to $6.8-billion, compared with $4.5 billion
in 
1978. The production value of mineral fuels increased 25% during 1979 and
reached a record high of $12.4 billion. The value of nonfuels mineral production
increased 33% above the 1978 level, to $10.0 billion. Production values of
the leading mineral com 
modities in 1979 were as follows: Crude petroleum, $6.5 billion; natural
gas, $4.0 billion; iron ore, $1.6 billion; copper, $1.3 billion; natural
gas products, $1.2 billion; and zinc $0.9 billion. 
Although a few of the provinces and territories actually increased production
of some commodities in 1979, the sharp increases in value were due mainly
to higher prices. Real growth was small or nonexistent, and for copper, gold,
silver, lead, molybdenum, platinum metals, and uranium, output in physical
terms declined in most regions. The most significant changes of the year
occurred in the gold market, where the price increased more than 200%. The
Province of Alberta, with its large oil and gas output, accounted for approximately
50% of Canada's total mineral production value in both 1978 and 1979. The
mineral production values of the provinces and territories in 1978 and 1979
were as follows: