Good morning, Mr. Chair and members of the committee.
I want to thank you for the opportunity to speak to the committee on behalf of the Mining Suppliers Trade Association of Canada.
My opening statement today will provide a brief outline of our association and its members. Then it will highlight some key findings from a study we participated in that shows how mining suppliers are an important part of generating employment in the mining ecosystem. Finally, it will show how Canada's engagement on free trade with the Pacific Alliance trade bloc is a natural fit for the Canadian mining supply and services sector, or MSS.
MSTA Canada is a national voice for Canada's mining supply and services sector. Over the past 35 years, the association has supported its members by connecting them with opportunities to grow their businesses in the mining industry across Canada and around the world.
In terms of government activity and decision-making, we look to serve our members' interests under two guiding principles. The first principle is a reduction in the complexity and uncertainty of doing business. This can be through more efficient processes with clear, understandable, and timely outcomes. The second principle is to have an increase in the access to opportunities to do business. This can be in the form of the opening of markets or a reduction in barriers to trade. It's our second principle that aligns with Canada's participation in the Pacific Alliance free trade agreement.
Our approximately 280 corporate members are located across the country, and they supply the entire mining industry spectrum, from mineral exploration, resource development, mine design and construction, mine operations, and refining, to reclamation and closure. Most of these companies are small to medium-sized enterprises, or SMEs. I will elaborate more on the demographics of the mining suppliers in the second portion of my remarks, but overall, it has been estimated there are approximately 3,700 companies across Canada that consider themselves mining suppliers.
I would like to highlight one very important aspect of our focus as an association: export. With Canada representing 0.05% of the global population and 1.4% of the world's GDP, we are, by all accounts, a trading nation to ensure economic prosperity. With that perspective, there is a great opportunity for the Canadian mining supplier network in just following Canadian exploration and mining activities abroad, let alone the international mining customers.
In the mining industry, the “Made in Canada” brand is recognized around the world for its safe, reliable, environmentally sound, and productive solutions.
I will now turn to our study. The Conference Board of Canada categorizes the mining supply and services sector as “a multi-billion dollar, widely varied industry in Canada and around the world, yet it is a 'hidden' sector that is not directly measured or tracked.”
To help provide a better understanding and clarity of our “hidden” sector, MSTA Canada participated in the pan-Ontario mining supply and services sector economic impact study. There are three key findings from the report that I would like to highlight here today.
The first finding is that the mining supply and services sector is a widely varied group of companies that were grouped into three major categories. Fifty-eight per cent were categorized as mining equipment, supplies, and services. Thirteen per cent were categorized as mining contract services. These two categories are what most people think of as a typical mining supplier. However, it is the remaining 31% that typically get overlooked. These are, for example, the financial services, accounting companies, law firms, environmental services, and information technology firms.
The second key finding is that almost 88% of the companies surveyed are categorized as SMEs and 70% report exporting outside of Canada, so free trade agreements are very meaningful to the mining supply and services sector.
The final finding I would like to highlight from the study is in terms of direct employment. The mining supply and services sector represents two and a half times as many jobs as the mining companies employ themselves. This is an important point because, as mining is a great economic developer, the mining supply and services sector across Canada will be an important generator of jobs.
Our final point is directed towards the Pacific Alliance trade bloc, which contains Chile, Colombia, Mexico, and Peru. These are considered the top four countries to which the Canadian mining supply and services sector targets their export marketing efforts in Latin America. To help understand why, our research has shown that the Pacific Alliance trade bloc hosts over 500 active exploration and mining projects. In addition, there are more than 220 Canadian-based exploration and mining companies active within the Pacific Alliance, which operate or have ownership in 43% of these projects. This data shows why Canada is a natural fit as a member of the Pacific Alliance for the Canadian mining supply and services sector.
Thank you very much for your time.