A Year in Review The Manitoba Prospectors and Developers Association looks at Manitoba exploration trends in 2016 Manitoba’s mineral exploration sector continues to be challenged by uncertainty over access to land and capital. In the
Mineral exploration expenditures in Manitoba by senior and junior companies As noted earlier, exploration expenditure spending in Manitoba has continued a dramatic decline over the past five years. The
third quarter of 2016, despite some
graph below shows the expenditures based on seniors and junior
encouraging news, the current state
exploration sector outpaced the senior portion of Manitoba’s
of affairs will not be enough to regain Manitoba’s place among the top Canadian jurisdictions for mineral exploration. 2016: A year in review from a mineral exploration perspective Mineral exploration is essential to the sustainability of the mining sector, but 2016 has continued to be a challenging year. Overall, Canadian mineral expenditures are estimated to be down to $1.4 billion from $4.2 billion in 2011 – representing a drop of 67 per cent. This is a trend that has continued nationally for the past five
sector expenditures. In 2015, the junior portion of the mineral mining sector. Both components continued to decline.
Mineral Exploration Expenditures Manitoba for 2011 through 2016* by Seniors and Juniors
Mineral Exploration Expenditures Manitoba for 2011 through 2016* by Seniors and Juniors * spending intentions
* spending intentions source: Natural Resources Canada source: Natural Resources Canada
(000,000s) 90 67.5 45 22.5 0
2011
2012
years. Natural Resources Canada reports that spending intentions
2013
2014
Seniors
2015
2016
Juniors
for Manitoba in 2016 are $43.9 million. This would be a drop of about 70 per cent. Manitoba had posted $140 million in mineral exploration expenditures in 2011. Since the original discovery of gold at the Penniac Reef Mine over 100 years ago and with the discovery of copper and zinc in the Flin Flon area over 90 years ago, Manitoba has earned a reputation of being a mining province. Both the Flin FlonSnow Lake greenstone belt and the Thompson Nickel Belt are internationally known as world-class deposits. Declining market conditions have contributed to the muting of mineral exploration activities in Manitoba. Mine producers are in the business of mineral production and exploration of known deposits. The mineral exploration sector is in
Market share Natural Resources Canada provides an important service to the mining sector by reporting on statistical trends in Canada. The figures for 2016 were not included as the year is not complete and data for the current year are based on spending intentions which can be both higher or lower than actual expenditures. The figures (below) clearly demonstrate an ongoing lack of expenditures in the Manitoba mineral exploration sector.
Manitoba Mineral Exploration Expenditures ManitobaPercentage Mineral Exploration Manitoba’s of CanadianExpenditures Mineral Exploration Manitoba’s Percentage source: Natural Resources Canada of Canadian Mineral Exploration
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the business of seeking to discover and identify new deposits. The challenges that both mineral producers and explorers experience
4.5
includes uncertainty over market conditions and commodity prices. There are however unique regulatory circumstances that the Manitoba mineral exploration sector faces and represent distinct public policy concerns. The MPDA serves as a voice to represent mineral exploration concerns in Manitoba. A review of current trends demonstrates the sector is experiencing serious challenges.
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Manitoba Mining Review 2016-2017
3
1.5
0 2000
2002
2004
2006
2008
2010
Source: Natural Resources Canada
2012
2014