Mining: generating substantial economic benefits for the whole of Québec

Québec City, October 20, 2020 – A new study of the economic benefits generated by the mining industry in Québec has been published by the Québec Mining Association (QMA). It confirms previous trends and shows that total annual spending by mining companies has continued to increase, reaching almost $10 billion in 2018, an increase of $4 billion since 2014. 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 Abitibi-Témiscamingue region still ranks first in terms of the total amount spent on mining activities, with $3.44 billion spent in the region. Montréal ranks third at almost $1.2 billion.

The results released once again show the full extent of the contribution mining makes in the so-called mining regions but also, significantly, in the major urban centres. In the view of the QMA, it is clear that regions like Montréal and Montérégie are more involved in mining that appears at first glance.

In addition to spending, the study shows that the mining industry in Québec is responsible for more than 48,000 direct, indirect and induced jobs. Of this total, almost 15,000 jobs are held by residents of the Abitibi-Témiscamingue region, over 7,100 by residents of the Côte-Nord region, and almost 11,000 by residents of Montréal and the Montérégie region. 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.

A network of over 3,800 suppliers helps support the development of Québec’s mineral resources, with 1,210 based in the Abitibi-Témiscamingue region, 686 in Montréal and 435 in the Montérégie region. Last, the mining industry contributes almost $9 billion to the province’s GDP.

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.

The full report can be viewed here.

« It is always striking to see the contribution made by the mining industry to Québec’s economy. Although it is easy to think that only the mining regions benefit, in fact the regions of Montréal and Montérégie also receive a major share. It is vital, for Québec as a whole, for the mining industry to remain strong and prosperous. »

« 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. Québec 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.