Canada's mining industry rose 1.5% in April - StatCan
(Kitco News) - Statistics Canada (StatCan) reported that the real gross domestic product (GDP) contracted 0.3% in April after 11 consecutive monthly increases. With the first decline in 12 months, total economic activity remained at about 1% below its level before the COVID-19 pandemic in February 2020.
StatCan said that overall, 12 of 20 industrial sectors were down as gains in goods-producing industries (+0.5%) were more than offset by contractions in services-producing industries (-0.6%). Preliminary information indicates a decrease in real GDP of approximately 0.3% in May.
Mining, quarrying, and oil and gas extraction grew 1.4% in April, as all three subsectors were up. The gain in April came on the heels of a 1.7% increase in March.
According to the report, mining and quarrying (except oil and gas) rose 1.5% in April, following a 2.4% gain in March. Metal ore mining (+3.0%) led the growth, as iron ore (+5.9%) and copper, nickel, lead and zinc mining (+4.8%) made the largest contribution to the growth. Coal mining increased 1.8% in April, while non-metallic mineral mining declined 2.4%, mainly as a result of lower potash and diamond mining.
StatCan noted that support activities for mining, and oil and gas extraction grew 7.9% in April, as all types of services were up.
Oil and gas extraction edged up 0.2% in April. A 1.9% decline in oil sands extraction, resulting from lower synthetic oil production in Alberta, was more than offset by a 2.7% increase in oil and gas extraction (except oil sands), as both crude petroleum extraction and natural gas extraction were up.