Natural Resources
Around 43% of the world’s publicly listed mining and exploration companies are listed on Canada's TSX and TSXV and the country ranks as the fifth largest energy producer in the world. Canada's abundance of natural resources, global market access and commitment to emissions reducing technology make it a prime investment location for forward-thinking energy, minerals and metals, and forest sector companies. Closely linked to Canada’s cleantech industry, the natural resources sector is constantly evolving to meet the need for cleaner energy and mining solutions, while supplying world demand.
For BP, Canada is one of the better places to invest in the world. It is a stable economy; it has a stable political system. It has pragmatic regulations that allow us to be both safe and efficient. It has great people…just great talent locally.
Oil and gas in Canada
Canada is the world’s third largest crude oil exporter and the world’s sixth largest exporter of natural gas. The Canadian oil and gas industry is characterized by unparalleled market access, well-integrated coast-to-coast transportation infrastructure and an innovative approach to clean resource development. From 2000 to 2018, the emission intensity of Canada’s oil sands operations dropped by 33%, notably through technological and efficiency improvements.
Minerals and metals in Canada
Key strengths of Canada’s mineral sector include abundant mineral and metal resources, sustainable mineral development, sophisticated financial institutions, broad expertise in geoscience and an extensive science and technology network. Canada is the largest producer of potash worldwide, second-largest for uranium, third-largest for diamonds, and fourth for primary aluminum.
Forest industry in Canada
One of the top global manufacturers of forest products, Canada is among the world’s largest producers and exporters of softwood lumber, accounting for 20% of Canada’s forest product exports.. Increasing demand for wood products from emerging economies, along with the growing need for alternative energy sources—including biomass—are creating new opportunities for companies investing in Canada’s forest industry.
Investing in natural resources in Canada
Market access
Canada is the largest supplier of crude oil and refined petroleum products to the United States and has active infrastructure development for delivering crude oil and natural gas supplies to Asian and European markets. Shipping times to Asia from Canada's west coast LNG projects are about ten days shorter than from the U.S. Gulf Coast, giving investors a significant cost advantage.
With an integrated system of coast-to-coast rail lines, an 840,000 km-long pipeline system and several expansion proposals, Canadian oil, gas and overall energy production, is well connected to domestic and export markets.
Incentives
The Mineral Exploration Tax Credit (METC) helps exploration companies raise equity funds by passing on tax credits to investors on eligible expenses. The 15% non-refundable tax credit can be applied against investors’ federal income tax that would otherwise be payable for the taxation year in which the investment was made.
Flow-Through Shares (FTS) allow foreign investors to transfer eligible exploration and development expenses to their beneficial owners, which can then be applied for tax credits for these expenditures. This feature generates attractive prices for FTS, enabling investors involved in the exploration, drilling, production, refining or pipeline operation to fund its activities more easily.
Leading Research Institutes
You’re in good company
Recent Investment Announcements
Dow
US-based chemical company Dow will invest between $200 million and $225 million to expand its ethylene plant in Fort Saskatchewan. The expansion will increase the plant's capacity by 130,000 tonnes per year.
Tenaris
Tenaris announced a $36 million investment to expand its product capabilities and improve its operational performance at its seamless and welded steel pipe mills to support domestic manufacturing for the oil and gas sector.
Shell
Shell Canada, Mitsubishi, Korea Gas Corporation (KOGAS), Petronas and PetroChina are jointly developing a $40 billion liquefied natural gas (LNG) export facility near Kitimat, Canada. The largest private sector investment project will create 10,000 jobs at the height of construction.
Nexen
Nexen, an oil and gas company and a subsidiary of China-based China National Offshore Oil Corporation, is to invest $400 million to expand its project in Long Lake, Alberta. The project is expected to yield 26,000 barrels per day.
Vale
Brazilian mining company Vale is constructing a $2.2 billion nickel mine in Newfoundland and Labrador. This expansion of the company’s existing Voisey’s Bay mine is expected to prolong operations by 15 years, creating 1,700 jobs.
Rio Tinto
Anglo-Australian-headquartered Rio Tinto announced plans to invest $250 million in its Vaudreuil alumina refinery, extending operations at the plant beyond 2022. The refinery supports over 1,000 jobs in Quebec’s Saguenay-Lac-Saint-Jean region.
ArcelorMittal
ArcelorMittal Long Products Canada, a subsidiary of Luxembourg-based ArcelorMittal, invested nearly $70 million in its Contrecoeur, Quebec steel production facilities. The investment enables the company, which supports 1,700 direct jobs in Quebec and Ontario, to maintain its leading position in steel in North America, with a focus on product quality facilitated through modern plants and a reduced environmental footprint.