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Canada's mining, quarrying, and oil and gas extraction expands for third consecutive month

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(Kitco News) - According to Statistics Canada (StatsCan), the domestic mining, quarrying, and oil and gas extraction increased 1.2% in March, marking a third consecutive monthly gain.

StatsCan said that Canada’s oil sands extraction (+2.0%) contributed the most to the increase, led by higher production in both crude bitumen and synthetic oil production in Alberta, following unplanned production disruptions earlier in the year.

The agency added that oil and gas extraction (except oil sands) edged down 0.1% in March. Conventional crude oil declines were largely due to lower production in Newfoundland and Labrador. In the west, there were gains in natural gas production to replenish depleted natural gas storage levels, which partially offset the declines in oil production.

Support activities for mining, and oil and gas extraction rose 3.7%, as all forms of support activities were up.

Importantly, according to the report, Canada’s mining and quarrying (except oil and gas) was up 0.3% in March, after alternating between increases and decreases over the last four months.

StatsCan said that higher metal ore mining (+2.8%), largely stemming from growth in copper, nickel, lead and zinc ore mining, was tempered by declines in both potash and diamond mining, adding that a diamond mine in the Northwest Territories scheduled to close in 2025 began reducing production.

StatsCan also reported that the domestic mining, quarrying, and oil and gas extraction (-0.6%) contracted for a second consecutive quarter, as a strong decline in December more than offset increases in the sector from January to March.

Support activities for mining, and oil and gas extraction (-4.9%) contributed the most to the quarterly decline. A 0.1% growth in oil and gas extraction was largely offset by lower mining and quarrying (except oil and gas) (-0.1%).

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By

Vladimir Basov

For Kitco News

Contact vbasov@kitco.com
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