Deficit-plagued governments can thank the Canadian mining industry for taking some of the sting out of their mounting fiscal problems, said the Mining Association of Canada (MAC).

The industry group's annual report shows that mining contributed $9 billion last year in total payments to federal and provincial governments.

In a Sept. 10 statement, MAC president Pierre Gratton said the figure demonstrates the industry's overall strength in 2011.

“Despite fiscal policy changes, notably the reduction in the federal corporate tax rate in 2011, payment levels were buoyed by generally higher metal prices and increased production.”

Natural Resources Canada reported the mineral industry saw a 21 per cent increase in value with a record $50 billion coming from a combination of higher prices and expanding production last year.

Royalty and mining tax payments to governments increased by $700 million, with Ontario, Alberta, Saskatchewan and Newfoundland-Labrador benefitting the most.

Ontario's annual revenues more than doubled from $72 million in 2010 to $180 million last year because of higher gold and copper prices.

Gratton said the study demonstrates the “significant economic contributions” that the industry delivers to Canada and the provinces.

“Canadians from coast to coast benefit from a strong, competitive mining industry that supports critical government services such as health care, education and skills training, as well as hundreds of thousands of well-paying jobs.”

To view the report go online at www.mining.ca.