The value of mining and petroleum production
Mining and petroleum industries are the second-largest primary resource industry in Manitoba’s economy. In 2013, capital expenditures on mining and petroleum development totalled an estimated $1.4 billion and the industries accounted for approximately seven per cent of provincial GDP and 8.7 per cent of total exports. The value of mining and petroleum production in 2013 totalled more than $3 billion.
The good news is that we have seen even more investment in mining in recent years with two new mines developed by Hudbay Minerals, the Lalor and Reed mines. They were recently officially opened and are expected to create 373 permanent jobs while injecting millions into the Manitoba economy.
Hudbay’s Lalor mine, located 13 kilometres west of Snow Lake, contains gold, zinc, copper and silver. It is one of the most significant base-metal discoveries in a generation and is expected to support mining beyond 2030. The total mine construction budget is $441 million. Ore from the mine will be processed at the refurbished Snow Lake concentrator, where capacity has been doubled to 2,700 tonnes per day.
The Reed copper mine, located in the Grass River Provincial Park, 45 kilometres west-southwest of Snow Lake, is a joint venture between Hudbay and VMS Ventures Inc. Copper reserves associated with the project have an estimated value of $800 million.
The mines are an example of the effectiveness of Manitoba’s regulatory process, progressing from discovery to production in less than seven years.
Manitoba has been recognized nationally and globally as one of the best places in Canada for exploration. Our government has worked hard to create a supportive environment for the mining industry.