Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Canada’s mining output grew 2.9% in July, according to Statistics Canada which released its monthly gross domestic product numbers on Friday.
The gains in the mining sector were attributable to more productivity after “. . . a period of production difficulties and maintenance work.”
Oil and gas production was down significantly, actually shrinking the output from the resource sector as a whole.
“Mining and oil and gas extraction fell 0.3% [overall], as the significant decline in natural gas extraction outweighed the increase in crude petroleum production. Support activities for mining and oil and gas extraction also declined, as a result of reduced drilling activity.”
More heartening for the Canadian economy was the growth in manufacturing, showing that there may be some broader based growth in the economy.
“Real gross domestic product rose 0.3% in July following a 0.2% increase in June. Manufacturing and, to a lesser extent, wholesale trade and transportation services were the main sources of growth.”
Chart from Statistics Canada
