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. The Nord-du-Québec region remains a strategic player in the mining sector.
As illustrated in the study, all the indicators show that the Nord-du-Québec region plays a key role in Québec’s mining industry. However, given its remoteness, it is not surprising that the number of jobs and suppliers is lower than in the Abitibi-Témiscamingue region.
Québec as a whole derives $10.5 billion in benefits from mining company activities in Québec, of which the Nord-du-Québec region accounts for $1.1 billion, or 10.3% of the mining industry’s total contribution to Québec’s gross domestic product (GDP). Within the region itself, the mining industry generates 21% 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, including 700 direct jobs and 1,645 (2.5%) person-years of employment for residents of the Nord-du-Québec region, who are then able to participate in the local economy. It is also interesting to note that despite the COVID-19 pandemic, the mining industry was able to limit the impact on jobs. From 2018 to 2020, the person-years of employment generated by mining company activities in the Nord-du-Québec region increased from 1,460 to 1,645 (+12.7%).
The COVID-19 pandemic also 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. Of this total, 83 suppliers were established in the Nord-du-Québec region.
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 fivefold over the period and attained a record $631.7 million in 2020.
The data, 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.
To view the complete study, click here.
« The mining industry has demonstrated its resilience and introduced a range of solutions to deal with the COVID-19 crisis and limit its impacts. This report, which covers 2020, highlights the effort made and the results achieved. Despite their prudent approach mining companies, as the report shows, increased the economic benefits they generate in Québec. »
« The mineral potential of the Nord-du-Québec region is obvious. Many different mining projects are under development, in particular for the minerals needed for transportation electrification and the energy transition, such as lithium and the rare earth elements. The future is promising for the region. »– 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.