Mining companies rely on suppliers for a broad range of goods and services that they need to manage their businesses effectively. Canadian firms have the capacity of supplying the entire mining industry spectrum including mineral exploration, mine development, mining, mineral processing, environmental monitoring, smelting and refining.
The majority of Canadian mining supply firms are small firms, with annual revenues of less than $25 million and with less than 200 employees. While there are also many much larger firms, some with international operations, the typical Canadian mining supply firm is characterized by a highly specialized technology that occupies a specific market niche.
After five years of building a database, CAMESE believes that Canada is home to more than 600 "highly specialized" companies that derive a dominant part of their revenues by supplying the mining industry. We estimate that this first tier group adds over $1 billion to our Gross National Product, half of which is exported.
When we add "specialized" firms for which mining may not be a dominant activity but still an important one, the total of firms in the sector rises to about 1,900. This second tier group includes major manufacturers serving many industrial sectors.
When a broader definition is taken, including financial, legal, accounting and management consulting firms the figure swells to an estimated 3,000 firms.
While we have no estimate of the economic impact of the total 3,000 firms, it is clear that mining supply is big business within Canada.
CAMESE - Canadian Association of Mining Equipment and Services for Export
Jon Baird Managing Director
October, 1999
