StockGuru Canada

Canadian Mining

Canada is one of the biggest mineral producing countries in the world. Mining in Canada has been conducted since the seventeenth century but it gained rapid progress during the past one hundred and fifty years. And throughout these one hundred and fifty years of mining, the Canadians have showed that they are the best users, promoters and sellers of natural resources. Canada’s mining sector forms the backbone of the country’s economic structure. Following are some amazing stats about the Canadian mining industry.

• Canada is the world’s largest producer and exporter of Potash (world’s richest reserve).
• It is the leading supplier of uranium in the world.
• The Canadian mining sector is the world’s second largest producer of Asbestos and Sulphur.
• Canada is the third largest producer of titanium, platinum group metals (PGMs) and mine zinc.
• It is the fourth leading producer of aluminum around the globe.
• Canada comes fifth in producing copper, lead, silver and gold.
• The country is among the leading producers of nickel, salt and other minerals.

Despite such astonishing facts and figures, it is only the beginning of the impact of Canada on the world’s minerals market. Canadian mining is still progressing and prospering. A number of latest discoveries have been made during the recent years. Discovery of rich nickel, copper and cobalt at Voisey’s bay and the diamond mines at Ekati have added more distinct feats to the achievement of the Canadian mining sector.

The government of Canada also pays extra attention towards mining as it is one of the biggest industries of the country. Currently a number of companies are operational in Canada to extract more and more minerals. These companies get special aid, grants and support from the government. They also have to abide certain laws and regulations.

The role of mining on the Canadian economy is magnificent. It has given a huge boost to the country’s economy. Canada is one of the world’s largest exporters of minerals, an industry which earns the country billions of dollars. According to recent reports, the mining sector helped improve the country’s economy by 3.3%. The increase in extraction of petroleum products has increased the mining sector by 2.0%.

Precious metals are the most popularly traded mining shares in the stock market.  Gold and silver are among the top listed mining stocks.  Mining stocks can be very popular, however, mining stocks are very volatile with their prices fluctuating  now and then. Its value depends upon the extraction of minerals by the company.

SILVER

Silver Mining stocks are one of the most traded mining stock shares around the globe.  Since silver forms the backbone of the economic structure of various countries,  its shares are widely traded across the world. The global economy and the instable conditions for investment are rapidly increasing the demand of silver. The value of these stocks is determined by currency exchange rates, trading volume, the price of silver and the profit gained or lost by the company. There are a number of risks associated to the silver stocks as its value is fixed by a combination of different factors. There are not many companies in the stock market that directly focus on silver stocks. Most of the silver extraction comes as a byproduct of gold mining.

Since centuries, humans have been using gold for various purposes. It has been a valuable metal and has been used in making jewelry and other arts even before the recorded history. Now days, it is used in numerous things but most commonly it is used for jewelry. Gold is found in earth’s crust and gold mining is done to extract it from there. After extraction, it is refined and is brought into pure form.

GOLD

Gold mining shares are also the most widely traded shares around the globe. The value of gold in the international market is determined by a number of factors. As mentioned above, the extraction of gold is the most important factor on which its price depends.

More than thirteen hundred companies are registered at the Toronto Stock Exchange, TSX. Shares of all these companies are traded electronically.  Shares of Silver and Gold companies along with other precious metals are mostly traded. The top five companies which are involved in silver trading in TSX are as follows:

1. Goldcorp Inc.
2. Pan American Silver corp.
3. Silver Standard Resources Inc.
4. Silvercorp Metals Inc.
5. First Majestic Silver corp

COPPER

Copper is a ductile metal with very high thermal and electrical conductivity. Humans have been using copper since ancient times. The Romans used it for various purposes.  Today, copper is used for different purposes. It is used for making wires, jewelry, daily use items etc.

Although copper stocks are not that popular as compared to precious metals stocks, they are still one of the mostly traded stocks. The prices of these stocks like the other metals depend upon various circumstances,  mainly the rate of extraction of the mineral. The market cap of these stocks is comparatively less than the value of the precious metals.

NICKEL

Nickel is a silvery-white metal with a golden tinge. Humans are using nickel since centuries and its uses have been traced as far as 3500 B.C. The major nickel producing sites are located in Canada and Russia. A number of companies are operating in this field and are trading their shares in the stock markets across the globe. Although nickel shares are not as popular as other mining stocks, they have maintained their value in the stock exchange. The prices of these shares vary from day to day. Their value depends upon the progress of the mining company.

URANIUM

Uranium is a radioactive element and is a silvery- white metal. Uranium is a common metal which is used in the making of atomic bomb but it has other uses as well. It is used as an energy source, for coloring uranium lass and sometimes for photography as well. Uranium is now a day one of the most expensive and carefully treated metal because it is highly radioactive and can be destructive if misused.

Uranium stocks come under the category of base metals, which after the precious metals are the most widely traded mining stocks in the stock exchanges across the world. The prices of these stocks depend upon the extraction of metal made by the company. If the company is extracting high amounts of metal then shares are high.

Canada is a country rich in uranium resources and a long history of exploration, mining and generation of nuclear power To 2008, more uranium had been mined in Canada than any other country – 428,000 tU, 18% of world total.

Exploration for uranium ore began in earnest in 1942 under direction of the government for military purposes. A wartime ban on private prospecting was lifted in 1947, which led in the early 1950s to the discovery of major deposits near Elliot Lake, Ontario, and northern Saskatchewan. By 1959, 23 mines and 19 treatment plants were in operation, and Canada’s CAN $330 million in uranium exports exceeded the value for every other mineral.

A second burst of exploration in the 1970s resulted in major discoveries in the Athabasca Basin in northern Saskatchewan. Mines at Rabbit Lake, Cluff Lake and Key Lake started up in 1975, 1980 and 1983, which up until 2000 accounted for most of Canada’s uranium production (14,223 tons of U3O8 in 1998). Cluff Lake, Key Lake and the original open pit at Rabbit Lake have now been mined out (underground mining continues at Rabbit Lake). Mines that began operation just a decade ago now contribute most of Canada’s production

Canada produced 10,617 tons of U3O8 in 2008, and in 2009 production was 11,997 tons U3O8 (10,173 tU) – 20% of world total. Most of this comes from its third generation mines, which started operation in 1999 at McClean Lake and McArthur River in northern Saskatchewan (the Rabbit Lake mine in the same region is the third source).

In the early 1990s, the Saskatchewan government had considered phasing out uranium mining in the province. This policy was later reversed after a joint Federal-Saskatchewan study panel on health, safety, environment and socio-economic impact found that the jobs provided by the industry would be hard to replace and that the environmental impact of mining could be minimized. Today, the provincial government actively supports uranium mining, and all new Saskatchewan uranium mines have international ISO 14001 environmental certification.

PLATINUM

Platinum is a silvery white precious metal. Humans have been using platinum since the old age. The ancient Egyptians used it for making jewelry. Platinum jewelry has been found inside the tombs of Egyptian Pharaohs. Evidences of usage of platinum have also been found in South America which date back to 100 B.C. Today platinum is being used in making jewelry, fuel cell and in other industries.

Zinc-lead alloy is the alloy of zinc and lead metals. People have been using zinc-bearing minerals compounds for centuries. Zinc is a bluish white lustrous metal while lead is soft, ductile and bluish white. It is prepared by smelting and then refining the alloy. Australia is the largest producer of zinc-lead alloy where zinc and lead are extracted from mines and then smelted and refined into zinc-lead alloy.

MOLYBDENUM

Molybdenum is a chemical element which was discovered by a Swedish Chemist in 1778, who isolated it from oxide minerals. The name molybdenum is derived from the Greek molybdos, which can be translated as the lead-like.

Most of all molybdenum produced worldwide is used in alloys. Molybdenum containing steel is significantly stronger, more corrosion resistant and more resistant to temperature than normal steel. Due to this property it is widely used in rocket motors and chemical pipelines. Besides, molybdenum alloy is used in chemistry and only a few percent is used as molybdenum metal. It is also used in paints, inks, plastics, rubber, transistors, lubricants, fertilizer for plants spectrophotometric determination of Photostat, etc. It is also used as a synthetic radioisotope. The melting point of molybdenum is the highest amongst all the pure elements found. It is an important nutrient for plants and occurs as enzymes.

Molybdenum mining and processing techniques have been improved continuously since the discovery of molybdenum. In the process of extraction of molybdenum, molybdenite is heated and the sulfide is oxidized into molybdenum oxide by air. The oxide ore is either heated to sublimate the oxide or leached with ammonia which reacts with the molybdenum oxide. Copper is present as an impurity which is then removed by precipitation with hydrogen sulfide.