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Mining supplies and services create more jobs than mining, report says

by Greg Klein | November 7, 2014

Ontario’s mining supply and services sector provided 2.5 times as many direct jobs in 2011 as did mining itself, according to a new report. Examining what’s been called a “hidden sector” not tracked by Statistics Canada, PricewaterhouseCoopers LLP conducted the study for the Canadian Association of Mining Equipment and Services for Export. The group released the study late last month, in time for the Ontario Mining Association’s annual Meet the Miners event.

Mining supplies and services create more jobs than mining, report says

Some 268 Ontario companies reported their mining-focused work, including exports, for 2011. Of the businesses, 56% provided mining equipment, supplies and services. Another 31% were consultants and 13% undertook contract mining.

Together they created 40,960 direct and 27,471 indirect jobs in 2011, paying $4.6 billion in salaries of which taxes claimed $1.5 billion. The sector’s contribution to provincial GDP for that year came to $3.9 billion, or $6.2 billion when indirect impacts were counted.

Referring to a 2012 report conducted for the Ontario Mining Association, PwC pointed to more than 16,000 direct jobs in mining itself, compared with 40,960 direct jobs in the industry’s supply and services sector.

The OMA now attributes about 27,500 direct and 50,000 indirect jobs to mining.

“The public may think of mining supply as companies that produce machinery or drilling services,” said a statement from CAMESE managing director Ryan McEachern. “But they are less aware of the tremendous number of mining-specific jobs in banks, legal and accounting firms, business consultants, engineering firms and many other professions.”

The PwC report follows other recent studies extolling mining’s economic virtues. Among them was a report listing some of the benefits to Greater Vancouver from British Columbia’s resources sector and an OMA study examining how a single new mine could benefit Ontario.

Download the PwC report.

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