The Mining Association of Canada | The Canadian Mining Story: Economic Impacts and Drivers for the Global Energy Transition 2023 32 Figure 8: Capital Expenditures In The Canadian Mining Industry by Stage, 2021-2224 While capital spending was planned to increase slightly in 2022, it is still close to the historic low point in 2021. Note: 2021 data are preliminary and 2022 data are intended. Although capital spending covers all stages of the industry, 90% is typically invested in extraction and smelting/refining. Within Stage 1, approximately two thirds of capital spending goes towards construction and one-third towards machinery and equipment. In Stage 2, the ratio is reversed, with about one-fifth of spending directed to construction and the rest to machinery and equipment. 2021(p) 2022(I) $million Stage 1 - Total Mineral Extraction 10,838 12,680 Stage 2 - Primary Metal Manufacturing 1,761 2,213 Stage 3 - Non-Metallic Mineral Product Manufacturing 609 650 Stage 4 - Fabricated Metal Product Manufacturing 892 965 Total Mining and Mineral Processing 11,165 12,844 Note: 2021 data are preliminary and 2022 data are intended. Despite increased volatility from the pandemic and geopolitical uncertainty, commodity prices have seen steady year-on-year increases since their low point in 2016. This may lead mining companies to make new and significant investments to meet growing projected demand. The extent to which capital investment in Canada’s mining industry will rebound after years of low growth remains uncertain. Year 10,000 15,000 20,000 25,000 2011 2013 2015 2017 2019 2021 2023 $ Million Figure 7: Capital Expenditures In The Canadian Mining Industry, 2011 – 202223 23 Statistics Canada, Capital and repair expenditures, non-residential tangible assets by industry, table 34-10-0036-01. 24 Statistics Canada, Capital and repair expenditures, non-residential tangible assets by industry, table 34-10-0036-01.