Increase in mining investment : the response of the Québec Mining Association - QUÉBEC CONTINUES TO BENEFIT FROM A STRONG OUTLOOK FOR GOLD AND A RECOVERY IN IRON PRICES
Québec City, April 12, 2018 – The Québec Mining Association (QMA), accustomed to a steady decrease in mining investment in Québec since 2013, is pleased to note the rising trend that has emerged and that appears set to continue, thanks in large part to the strength of the gold sector. This is highlighted in the latest survey of mining investment conduced by the Québec statistics institute (Institut de la statistique du Québec, or ISQ).
The preliminary data published for 2017 shows that mining investment will reach $2.77 billion, an increase of 8.1% compared to 2016. For 2018, it is predicted that investment will increase by 22.2% to reach $3.39 billion.
"This increase in mining investment confirms what we see on the ground. We are happy that mining companies still believe in Québec and are investing large amounts that are essential to the economic vitality of several regions and of Québec as a whole," says Josée Méthot, president and CEO of the QMA.
According to the ISQ, the Abitibi-Témiscamingue region ranks first for investment with $1.18 billion, taking the place held in 2016 by the Nord-du-Québec region, where investment has dropped by 18.7% to $841 million and which is now in second place. The Côte-Nord region ranks third, with investment of $657 million, an increase of 17.3% attributable largely, according to the QMA, to the resumption of activities at the Lac Bloom iron mine by Québec Iron Ore.
"The best news comes from exploration expenses, which are estimated at $577 million, almost double the result for 2016. Exploration is the only way to identify the next mine that will become a source of pride for the whole of Québec. We have not seen this level of exploration expenditure since 2012. The future looks promising, especially since spending is expected to reach $657 million in 2018," Ms. Méthot continues.
Gold mines accounted for most of the investment in 2017, and the attraction of gold is also driving the increase in exploration expenditure. The Abitibi-Témiscamingue region will benefit from 50% of this spending, thanks to its strong gold potential.
About the Québec Mining Association
The Québec Mining Association (QMA) was founded in 1936 and speaks proactively for mining companies involved in exploration, extraction and processing, mining contractors and junior mining companies, along with suppliers, institutions, non-profit organizations and other mining sector partners. It is proud of the 45,550 jobs and total expenditure of almost $6 billion generated by Québec's mining industry. The QMA’s mission is to promote, support and proactively develop a responsible, committed and innovative mining industry in Québec.