(Yellowknife, NT – March 18, 2019) Mineral exploration and deposit appraisal spending in 2019 is projected to decline in all three territories, as well as Canada, according to recently released federal government projections.
The projected significant decline in NWT spending represents a 10-year low. In Nunavut, the projected drop in exploration spending is modest, however it marks the fourth year in a row of declines.
From a competitiveness perspective, NWT’s share of Canadian exploration investment is projected to fall to 3.1 per cent from 4.7 per cent. Nunavut’s share is projected to increase slightly to 6.7 per cent from 6.4 per cent, according to NRCan projections.
The recently released Prospectors & Developers Association of Canada (PDAC) Report, State of Mineral Finance 2019: At the Crossroads reveals that declining exploration and deposit appraisal expenditures are due to commodity price weaknesses for gold, base metals and even battery metals, combined with a significant decline in equity and bought-deal financings, and increased competition from sectors like cannabis.
Charts of historical and projected expenditures in northern Canada are in the Backgrounder (attached), and the Chamber has summarized NRCan’s complete data in chart form here.