The Québec Mining Association (QMA) has released its latest report on the economic benefits generated by the mining industry in Québec, covering the year 2020. It identifies the Côte-Nord region as a major player in the industry. Whether in terms of employment or the benefits generated by the activities of the mining industry in the region, all the indicators show the added value generated by the mining sector in the Côte-Nord region.
Québec as a whole derives $10.5 billion in benefits from mining company activities in Québec, of which the Côte-Nord region benefits from $2.9 billion, or 28% of the mining industry’s total contribution to Québec’s gross domestic product (GDP). Within the region itself, the mining industry in Québec generates 37.5% of GDP.
In terms of jobs, the study shows that, in 2020, mining in Québec supported 48,187 person-years of employment in the form of direct, indirect and induced jobs. The Côte-Nord region ranks second in the list of resource regions in which the mining industry provides the most jobs, with 11.6% of all employment generated by mining company activities in Québec, in the form of 7,585 jobs. Compared with the data from the report for 2014, the employment generated by all mining activities in the Côte-Nord region grew by 89% between 2014 and 2020. It is interesting to note that 61.2% of the 3,724 direct jobs in mining in the region were held by employees who were also residents of the region, and therefore participants in the local economy.
The COVID-19 pandemic impacted supply chains, and mining companies had to broaden their network of suppliers in order to continue their activities. The total number of mining industry suppliers with a place of business in Québec was 4,857 in 2020, an increase of 27.8% over two years. Between 2018 and 2020, the number of suppliers in the Côte-Nord region grew from 174 to 199.
It is important to remember that mining provides a significant source of revenue for both the Québec and Canadian governments, which together received $2.4 billion in fiscal and parafiscal revenue. This included almost $1.8 billion for the Québec government, without counting corporate income tax. Fiscal revenue for the Québec government increased by 77.3% between 2014 and 2020.
The most important factor in the increase was mining royalties, which increased five-fold over the period and attained a record $631.7 million in 2020.
The data, although covering activities in 2020, is the most recent available and highlights the contribution made by the mining industry to the province’s socio-economic development.
« The mining industry has demonstrated its resilience and introduced a range of solutions to deal with the COVID-19 crisis and limit its impacts. These actions had positive repercussions, since the report highlights an increase in the economic benefits despite the pandemic. The Côte-Nord region is one of the mining regions that is key to Québec’s economic development, and the contribution of mining company activities to the regional GDP is substantial. »
« In addition to its contribution to the Québec economy, the Côte-Nord region is renowned for its high-quality iron ore. The future appears particularly promising for the region, since the iron it produces will play a significant environmental role in the decarbonization of the steel industry. »– Josée Méthot, QMA President and CEO
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 48,187 jobs and activities totalling $11.7 billion generated by Québec’s mining industry in 2020. The QMA’s mission is to promote, support and proactively develop a responsible, committed and innovative mining industry in Québec.