Mining: generating substantial economic benefits for the Nord-du-Québec region

Québec City, October 20, 2020 – The Nord-du-Québec region has seen spending by mining companies increase from $182 million in 2014 to $1.2 billion in 2018, resulting from major growth in mining activities. This is one of the findings from a study published by the Québec Mining Association (QMA) that provides an overview of the impact of mining on Québec’s economy.

In addition to spending, for which the region ranks fourth in Québec, the study shows that the Nord-du-Québec region employs the second largest number of mine workers, with a total of more than 3,900 direct jobs in mining operations. The Abitibi-Témiscamingue ranks first, with almost 4,165 direct jobs in mining operations.

Overall, the study shows that the mining industry in Québec is responsible for more than 48,000 direct, indirect and induced jobs, that almost $10 billion is spent by mining companies throughout Québec, and that a network of more than 3,800 suppliers helps support the development of Québec’s mineral resources. It is also important to mention that the average annual salary in the industry is close to $104,000, well above the average annual salary in Québec of $64,000.

The study also addresses a frequently-asked question: how much do governments receive from mineral resource development? The answer: over $1 billion each year. More specifically, $1.3 billion was paid to the Québec government alone in 2018, without including corporate income tax, while the Government of Canada received a further $500 million.

Although the data relates to activities in 2018, it is the most recent available and provides a representative view of the contribution made by the mining industry to Québec’s socio-economic development.

The full report can be viewed here.

« It is always striking to see the contribution made by the mining industry to Québec’s economy, and this holds true also for the Nord-du-Québec region. The upward trend in the region since 2014 is impressive, especially in terms of spending by mining companies. The way in which the region’s mining sector has been able to innovate and grow over the years offers hope for the future. Strong gold prices are another encouraging sign that point to ongoing economic benefits in the coming years, alongside the presence of essential minerals for transportation electrification and the energy transition such as nickel and lithium. »

« Thanks to the resilience of the workers in Québec’s mining industry and their ability to innovate, mining companies have returned to the levels of activity seen before the COVID-19 pandemic relatively quickly. However, it will be interesting to see, in the next study of economic benefits covering the results for 2020, whether the pandemic has had an impact on employment and expenditure in the Nord-du-Québec region. However, it is in a strong position to recover from the current situation and to continue to enjoy the benefits generated by the mining industry. »

– Josée Méthot, President and CEO of the Québec Mining Association

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 48,006 jobs and total expenditure of $9.9 billion generated by Québec’s mining industry in 2018. The QMA’s mission is to promote, support and proactively develop a responsible, committed and innovative mining industry in Québec.