The two primary employers in the city are
Xstrata and
Domtar. Domtar has been in Matagami since 1988 when the company bought out Bisson & Bisson. Xstrata entered Matagami in 2006 when it acquired
Falconbridge Ltd. In 2008, Xstrata put Perseverance, a zinc-copper
volcanogenic massive sulfide ore deposit, into production. Perseverance has a mine life of 5.5 years. Since 1957 ten deposits, including the world class Matagami Lake deposit (25.6 million tonnes grading 8.2% Zn, 0.56% Cu, 20.91 g/t Ag, 0.41 g/t Au), have been discovered and mined out for a total of "44.4 million tonnes with a similar average grade." Further exploration is continuing in the camp through a 50–50 joint venture agreement between Xstrata and Donner Metals. In late 2008,
Donner Metals Ltd. announced that Xstrata Zinc Canada was in the process of completing a scoping study at their jointly owned Bracemac-McLeod property. It is the nearest city to the
Lac Doré Vanadium Deposit. The community is also one of the distribution points for goods and services to the
James Bay Hydroelectric Project. As well, Matagami has a small tourism industry due to the popularity of fishing and hunting in northern Quebec. Hotel Matagami and motel caribou include full-service bars. ==Government==