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Canada’s minerals and mining industry expands in Q2 2021 - StatCan

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(Kitco News) - According to the latest data from Statistics Canada (StatCan), real gross domestic product (GDP) of the natural resources sector rose 0.6% in the second quarter of 2021, the fourth consecutive quarterly increase.

StatCan said that real GDP growth in the natural resources sector was stronger than economy-wide real GDP (-0.3%), reflecting growing demand for natural resource products as many sectors begin to recover from the pandemic.

Real GDP of the energy subsector edged up 0.3% due to increased consumption. This was the lowest energy growth rate since natural resources started recovering from the pandemic-related declines in 2020.

Meanwhile, real GDP of the minerals and mining subsector rose by 0.9% in the second quarter, as production followed increased demand. This was the fourth consecutive quarterly increase, StatCan reported.

Non-metallic minerals rose 1.4% in the second quarter, following a 6.6% increase in the previous quarter due to increased potash and diamond demand. Metallic minerals real GDP increased 1.1% over the same period, driven by the strength of iron ore production, the report revealed.

Importantly, minerals and mining subsector export volumes rose by 1.7% due to increased exports of non-metallic minerals, whereas energy exports fell 9.0% due to reduced energy demand from trading partners.

StatCan added that employment in the natural resources sector rose 1.2%, the fourth consecutive quarterly gain. Job recovery was strongest in the energy subsector (+4,000 jobs), followed by minerals and mining (+1,300 jobs) and forestry (+1,300 jobs).

According to the report, almost all of the losses in natural resources employment stemming from the pandemic have been recovered, but employment numbers are still below 2019 levels.

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