Oil sands deposits in Northern Alberta, Canada represent a wealth of resources attracting huge capital investment and significant research focus in recent years. As of 2005, crude oil production from the current oil sands operators accounted for 50% of Canada's domestic production. Alberta's oil sands deposits contain approximately 1.7 trillion barrels of bitumen, of which over 175 billion are recoverable with current technology, and 315 billion barrels are ultimately recoverable with technological advances. A major problem of operating machinery and equipment in the oil sands is the unpredictable failure from operating in this highly aggressive environment. One of the significant causes of that problem is premature material wear. An approach to minimize this wear is the use of protective coatings and, in particular, a cermet thin coating. A high level of coating homogeneity is critical for components such as bucketwheels, draglines, conveyors, shovels, heavyhauler trucks etc. that are subjected to severe degradation through abrasive wear. The identification, development and application of optimum wear solutions for these components pose an ongoing challenge. Nanostructured cermet coatings have shown the best results of achieving the degree of homogeneity required for these applications. In this study, WC-17Co cermet powder with nanocrystalline WC core encapsulated with 'duplex' Co layer was used to obtain a nanostructured coating. To apply this coating, high velocity oxy-fuel (HVOF) thermal spraying technique was used, as it is known for producing wear-resistant coatings superior to those obtained from plasma-based techniques. Mechanical, sliding wear and microstructural behavior of the coating was compared with those of the microstructured coating obtained from spraying WC-10Co-4Cr cermet powder by HVOF technique. Results from the nanostructured coating, among others, showed an average of 25% increase in microhardness, 30% increase in sliding wear resistance and a significant increase in the dry sand abrasion wear resistance when compared with the microstructured coating.