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Manitoba's Mineral Resources
GIS Map GalleryManitoba Mineral Sector Profile
Current as of October 24, 2011
Size: The mineral industry is the second largest primary resource sector of the Manitoba economy. The 2010 value of production for Manitoba’s mineral industry totalled over $2.5 billion, comprising:
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In 2010, the mineral industry accounted for approximately 5.8% of provincial GDP and about 12% of total exports. Employment averaged 6,100 in 2010, a 5.2% increase from 2009. In 2010, the industry invested $706.8 million in capital expenditures, up 24% from 2009.
In 2010, Manitoba produced*:
- 20.1% of Canada's nickel
- 15.8% of Canada's cobalt
- 10.7% of Canada's copper
- 12.7% of Canada's zinc
- 4.6% of Canada's gold
- 100% of Canada's cesium and lithium
- 27.8% of Canada's selenium
- 6.4 % of Canada's silver
- 37.5% of Canada's tellurium
*Cobalt, silver, selenium and tellerium are by-products of other mined metals or minerals.
Dominant Activities:
- Mining, smelting, refining of base & precious metals
- Mining/quarrying of industrial minerals
- Crude oil extraction
Structure & Concentration:
- There are approximately 45 companies active in mineral exploration and mining in Manitoba. Two mining companies employ approximately half of the workforce in this sector. Manitoba has 9 producing mines, 1 operating smelter and 2 refineries.
- There are about 20 major producers active in the industrial minerals sector in Manitoba.
- There are 50 companies that produce oil in Manitoba, ranging from large multinationals to small locally based producers. 513 new wells were drilled in 2010. At December 2010, Manitoba had 3435 wells capable of producing oil. 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.
Exploration and development highlights:
- In 2010, the value of production for metals increased 26%, industrial minerals 4.5% and petroleum 37% from 2009 and total production value was $2.5 billion, a 28% increase.
- As of October 2011, exploration and deposit appraisal expenditures totalled $84.6 million for 2010, a significant decrease from the 2008 peak of $152 million, but are projected to rebound strongly in 2011 to $115.7 million.
- In 2010, approximately 3318 wells produced over 31,501 barrels of oil per day, more than doubling oil production since 2004. Estimated oil and gas industry expenditures for 2010 total a record-breaking $894 million.
Advanced exploration projects:
- Lalor Project (zinc-copper-gold) 100% HudBay Minerals, Inc.: As of July 2011, capital expenditure investment for the project increased to $704 million with the announcement of a new $144 million dedicated concentrator added to the development plans. The new concentrator is expected to increase production capacity to 4500 tonnes per day at the Lalor underground mine. Initial production is scheduled for 2012 and full production is anticipated in 2014.
- Reed Lake Joint Venture (copper-zinc) 70% HudBay Minerals, Inc. / 30% VMS Ventures Inc.: The Reed Lake deposit contains a NI 43-101–compliant Indicated resource estimate of 2.5 million tonnes grading 4.55% copper. HudBay plans to start site preparation in November and expects to complete the extraction of a 10 000 tonne bulk sample in the fourth quarter of 2012. A production decision is expected early in 2013.
- Snow Lake mine (gold) 100% Alexis Minerals Corporation: Alexis delayed their anticipated production decision to reopen the mine in order to include additional gold resources not reported in the December 2009 feasibility study. The 2009 feasibility study forecast production of 80,000 to 90,000 ounces of gold per year for a minimum of six years. Alexis anticipates the completion of the revised feasibility study in 2012.
- Lost Lake Joint Venture (copper-zinc) 67.5% HudBay Minerals / 32.5% Halo Resources Ltd.: HudBay continues to assess the feasibility of developing the deposit and has started pre-feasibility engineering which is expected to be completed in 2011.
- Monument Bay Project (gold) 100% Mega Precious Metals Inc.: An upgrade and 47% increase of the gold resource was announced in June 2011 based on a National Instrument 43-101–compliant resource estimate. Mega continues to work towards underground development in 2012. Mega and Red Sucker Lake First Nation signed a memorandum of understanding to cover certain portions of the project that lie within the traditional lands of the First Nation.
- Minago Project (nickel) 100% Victory Nickel Inc.: In August 2011, Victory Nickel was granted an Environmental Act Licence for a 10 000 tonne per day nickel mine. The Minago open pit will produce approximately 25 million pounds of nickel in concentrate and 1.15 million tonnes of by-product frac sand per year for 10 years.
- Makwa Project (nickel-PGE) 100% Mustang Minerals Corp.: A National Instrument 43-101–compliant reserve estimate in 2010 outlined a 10 million tonne open pit. Mustang continues work on a feasibility study and has purchased a mill facility to reduce the capital costs outlined in the study. Mustang and Sagkeeng First Nation signed a memorandum of understanding as the first step in a community engagement process to benefit both parties.
Mining operations:
- CaNickel Mining Limited (formerly Crowflight Minerals Inc.) resumed production at their Bucko Lake Nickel Project near Wabowden in April 2011. Production was stopped in October 2010 to introduce company-owned mine production and mine modifications. CaNickel expects to mine 220 000 tonnes of ore in 2011 to produce approximately five million pounds of payable nickel.
- San Gold Corp. continues to expand their mining operation at Bissett with further exploration successes and record quarterly production levels in 2011 with a full-year production forecast of 80,000 ounces.
- HudBay Minerals is proceeding with the 777 North expansion project which will provide additional feed to its Flin Flon concentrator and zinc plant and additional exploration opportunities..
- Vale is pursuing new mine development opportunities, particularly the 1-D Project which is currently in the pre-feasibility stage. The company announced plans to transition its Thompson operations to mining and milling with the phasing out of smelting and refining by 2015. The Government of Manitoba, City of Thompson, United Steelworkers and Vale continue to work together exploring options to keep the processing facilities operational beyond 2015.
Aboriginal/industry agreements:
- Memorandum of Understanding between Manitoba Keewatinowi Okimakanak. (MKO) and the Mining Association of Manitoba
- Memorandum of Understanding between Sagkeeng First Nation and Mustang Minerals as a first step in a community engagement process regarding Mustang’s Makwa Nickel Project
- Memorandum of Understanding between Mega Precious Metals and Red Sucker Lake First Nation to cover certain portions of the company's Monument Bay project that lie within the traditional lands of the First Nation
Sector Capabilities:
- Base and precious metals: copper, nickel, zinc, gold
- Industrial minerals: cesium, dolomite, spodumene, gypsum, salt, dimension stone, limestone, peat, lime, crushed rock, sand and gravel aggregate
- Crude oil extraction
Key Players:
COMPETITIVE STRENGTHS
Mineral Endowment:
- Metal deposits in Manitoba’s Precambrian Shield have been mined for decades. Ongoing development at Flin Flon will extend operations there until 2016 and at Snow Lake, the Lalor deposit is expected to support mining to 2030 and beyond. These developments will see mining activity in the Flin Flon–Snow Lake region extend over 100 years since the first mines were opened. The Bucko Lake Nickel Mine, located in the prolific Thompson Nickel Belt, is expected to produce an average of 11 million pounds of nickel per year over its currently projected 7-year mine life. Similarly, new investments in Vale’s Birchtree project near Thompson are projected to extend mining operations there beyond 2020, more than 60 years after initial production. In 2006, San Gold Corporation reopened the gold mine at Bissett where the mining history of the region’s mineral-rich Rice Lake gold belt dates back to 1911.
- Large areas of high mineral potential in remote regions of the province remain under explored when compared with similar regions elsewhere in Canada. This represents a potential avenue for considerable growth in Manitoba’s mineral sector and may provide significant employment opportunities for northern and Aboriginal communities near new mineral exploration and development projects.
- Manitoba mineral resources with potential for future economic development include platinum-group elements (platinum, palladium and rhodium), rare earth elements, uranium, titanium, vanadium, chromite, silica, diamonds and potash.
- Although oil has been produced in Manitoba for over 60 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.
Business Strengths:
- In addition to known mineral deposits and occurrences, Manitoba offers a number of economic advantages that support the minerals sector including: varied geology with high mineral-potential, a comprehensive geoscience knowledge-base, financial incentives for exploration and mining, a transparent land-tenure system, competitive business costs, skilled labour, environmental stewardship balanced with industry needs, high-quality transportation infrastructure, access to a sea port, and low-cost, reliable electricity.
- Recent initiatives to support mineral and petroleum exploration and development include:
- Renewal of the Mineral Exploration Assistance Program in April 2011 for another 3 years. The program will provide funding of $1.5 million through one offering per year for a total of $4.5 million over the three year period. Since 1995, Manitoba has invested a total of $27.7 million through its Mineral Exploration Assistance Program to support 744 exploration projects. These projects have generated $227.3 million in company spending for exploration in the province.
- The Manitoba Drilling Incentive Program, which provides incentives to explore and develop petroleum resources in the province, was extended at the end of 2008 through to January 1, 2014.
- A progressive mining tax rate of 10, 15 or 17 per cent based on profits and other mining tax incentives making Manitoba among the most competitive mining tax regimes in Canada.
- An increased Mineral Exploration Tax Credit to 30 per cent in 2010 offers Manitoba tax payers the most generous mineral exploration tax credit in the country.
- The Northern Essential-Skills Training Initiative to address skilled labour shortages in the mining sector. Since 2009/10, over 500 have received training in essential skills (ES) including industry specific training such as ES Prep for Underground Mining.
- The Manitoba government, in collaboration with industry, educational institutions, municipal and federal governments, established the Northern Manitoba Mining Academy. The academy, located in Flin Flon and Thompson, will provide training to prepare thousands of workers over several generations for mining employment. Construction is scheduled for completion in winter 2012..
- $77.6 million in funding for 2011-12 to support the cleanup of orphaned and abandoned mines in the province.
- Renewal of the Mineral Exploration Assistance Program in April 2011 for another 3 years. The program will provide funding of $1.5 million through one offering per year for a total of $4.5 million over the three year period. Since 1995, Manitoba has invested a total of $27.7 million through its Mineral Exploration Assistance Program to support 744 exploration projects. These projects have generated $227.3 million in company spending for exploration in the province.
- Manitoba has been recognized nationally and globally as one of the best places for exploration and mining:
- for over a decade, since 1999, Manitoba has consistently ranked as one of the top ten jurisdictions worldwide for mineral policies favourable to mining investment (based on the results of the annual Fraser Institute Survey of Mining Companies).
- Manitoba’s effective mining tax rate is ranked lowest or second lowest in Canada over a range of mine profitability levels according to a federal study published in the Natural Resources Canada Information Bulletin: Taxation of Mineral Income 2012 – How Canada Compares (June 2011).
- For the past three years, Manitoba has ranked as the best (2009 & 2010) or second-best (2011) jurisdiction in Canada to invest in petroleum exploration and development, as rated by oil industry executives in the Fraser Institute's ‘Global Petroleum Survey’.
- for over a decade, since 1999, Manitoba has consistently ranked as one of the top ten jurisdictions worldwide for mineral policies favourable to mining investment (based on the results of the annual Fraser Institute Survey of Mining Companies).
RELATED LINKS
- Manitoba Companies Directory
- Mining Contractors & Consultants
- Mining & Exploration Companies
- Industrial Minerals Exploration & Production Companies
- Mineral Resources Division
- Industrial Minerals
- Petroleum
- Mining & Minerals Convention
CONTACT INFORMATION
Chris Beaumont-Smith
A/Manager, Minerals Policy and Business Development
Mineral Resources Division
Manitoba Innovation, Energy and Mines
Tel: 204-945-6566
Fax: 204-945-8427
E-mail: Chris.Beaumont-Smith@gov.mb.ca
Web: www.manitoba.ca/minerals
Keith Lowdon
Director, Petroleum Branch
Mineral Resources Division
Manitoba Innovation, Energy and Mines
Tel: 204-945-6574
Fax: 204-945-0586
E-mail: Keith.Lowdon@gov.mb.ca
Web: www.manitoba.ca/minerals
