In 1998, Natural Resources Canada reported that just 10 percent of Canada’s mineral industry could be considered value-added. That is, only a fraction of the minerals mined were processed domestically into high-value products, thereby contributing more meaningfully to the Canadian economy. The other 90 percent? Exported in raw form, allowing other nations to profit from Canada’s resources.
At the time, Natural Resources Canada estimated that increasing the ratio of minerals processed domestically by just 5 to 10 percent could raise domestic production by $100 million, or about $180 million today. If this were 1998, we could argue that the Canadian government should invest in expanding its value-added processing capabilities, such as iron fortification, steel casting, and mineral processing, all of which would have generated greater revenue for Canada.
But it isn’t 1998. It’s been 27 years, and we still don’t know what, if anything, has changed. Natural Resources Canada has yet to publish an updated, comprehensive estimate of how much of Canada's mineral output is processed domestically, leaving policymakers in the dark on a crucial sector of the economy. Without a clear understanding of how much of Canada’s mining output is value-added today, officials cannot make informed policy decisions to strengthen the sector.
Additionally, in a global trade environment increasingly shaped by protectionism and Trump tariffs, it is more important than ever for Canada to invest in its domestic production capabilities. But knowing where to invest is critical. Every dollar Canada invests in mining is a dollar not invested in automobiles, shipbuilding, or advanced manufacturing—so policymakers must be well informed when drafting key industrial policy.
Canada can’t compete in the 21st-century economy using 20th-century data. Natural Resources Canada must update its value-added analysis to clarify the current state of the Canadian mining industry and guide sound industrial policymaking.
