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Canada's mining, quarrying, oil and gas sectors grew 1.7% in June - StatCan

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(Kitco News) - According to data recently released by Statistics Canada (StatCan), Canada’s real gross domestic product (GDP) expanded 0.7% in June, following two consecutive monthly declines, placing total economic activity 1.5% below February 2020's pre-pandemic level.

StatCan reported that overall, 15 of 20 industrial sectors were up as both services-producing (+0.7%) and goods-producing industries (+0.9%) rose.

The authors of the report noted that the domestic mining, quarrying, and oil and gas extraction grew 1.7% in June, more than offsetting declines in the previous two months, as all three subsectors were up.

StatCan said that mining and quarrying (except oil and gas) rose 1.4% in June as the majority of industries were up. Metal ore mining increased 1.8% on the strength of iron ore mining (+21.8%), as production resumed following a labour stoppage at some facilities in Quebec.

Copper, nickel, lead and zinc mining was up 2.5% while lower gold and silver mining (-11.9%) dampened some of the growth. Non-metallic mineral mining and quarrying rose 1.3% buoyed by higher potash (+1.7%) and diamond mining.

The oil and gas extraction subsector (+2.1%) grew for the third time in four months in June. Oil sands extraction rose 3.2% as crude bitumen and synthetic oil production in Alberta increased for the second month in a row. Oil and gas extraction (except oil sands) grew 0.8% as higher crude petroleum extraction, particularly off of Canada's North Atlantic coast, more than offset lower natural gas extraction.

Support activities for mining and oil and gas extraction rose 0.4% in June as increases in drilling and rigging services more than offset lower support activities for mining, StatCan added.

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