British Columbia’s coal mining industry sustains tens of thousands of jobs and generates billions for the provincial economy, according to the latest research.
The economic impact study conducted by Mansfield Consulting Inc. for the Mining Association of BC (MABC), found that B.C.’s overall mining and smelting industry fuels 35,000 jobs and totalled more than $18 billion in economic activity in 2022 alone. The sector also accounted for close to 30 per cent of the value of B.C. exports in 2022.
B.C. is home to seven steelmaking coal mines, as well as 10 metal mines and two smelters. B.C. is also Canada’s leading producer of steelmaking coal (and copper), second largest producer of silver, and the only producer of molybdenum.
The industry contributed $3.7 billion to 200 local and First Nations communities by purchasing goods and services from nearly 4,000 B.C.-based businesses in 2022.
The top five urban communities by mining supply chain spend include Vancouver ($532 M), North Vancouver ($338 M), Burnaby ($218 M), Delta ($126 M) and Surrey ($72M).
The top five regional centres in rural B.C. by mining supply chain spend include Kamloops ($377 M), Prince George ($237 M), Sparwood ($188 M), Elkford ($168 M) and Chetwynd ($101 M).
More coal facts
- Coal creates over 26,000 B.C. jobs in mining, transport, equipment and other related sectors.
- The B.C. coal industry spent over $6.8 billion in goods and services in the five years up to 2021, and generated millions in public revenues for all levels of government that go to support critical services such as health care and education.
- Steelmaking coal is a key ingredient in the production of steel, which is critical to many of the things we rely on each day – our buildings, vehicles, rapid transit and many everyday household items.
Learn more at coalalliance.ca
British Columbia is one of the world’s greenest mining hubs, according to the B.C. Regional Mining Alliance (BCRMA), which is a regional partnership between Indigenous groups, industry and provincial government representatives.
The BCRMA has created a series of new graphics showing mining’s footprint and importance in B.C. It states that over 54 per cent of the province’s total land is protected.
Mining represents 7 per cent of the province’s Gross Domestic Product (GDP), despite only accounting for 0.04 per cent of the land use.
This chart provides a breakdown of materials mined in the Canadian province, with steelmaking coal taking the #1 position, representing 67 per cent of materials mined in the province. B.C. is also the leading producer of steelmaking coal in Canada.
Other data highlighted in the graphic below include:
- British Columbia covers almost 95 million hectares (234 million acres), more than any European country except Russia, and more than any U.S. state except Alaska.
- As the largest mining province in Canada, BC registered $18 billion in revenue from the industry in 2022.
Learn more on the BCRMA’s website.
Canada is one of about 24 countries throughout the world that produce coal, although Canadian production makes up less than 1 per cent of the global coal production, at 6.7 billion mt each year.
While Canada’s production is relatively small, Canadian coal is highly sought after because of its low sulfur and ash properties, and high caloric value, for a higher quality coal.
Coal has been mined in British Columbia for more than a century, and B.C.’s coal supply chain – from mine to railway to export terminal – operates under environmental and safety regulations that are among the most stringent in the world.
To learn more, view the following fact sheets:
B.C. is Canada’s largest producer of steelmaking (metallurgical) coal and is leading the charge on responsible mining. Here in B.C., we produce steelmaking coal with fewer greenhouse gas emissions than any other competing jurisdiction.
Steelmaking coal is an essential ingredient in low-carbon infrastructure like wind turbines. Steel is critical to many of the things we rely on each day – our buildings, vehicles, rapid transit and many everyday household items.
This graphic was prepared by the Mining Association of BC (MABC). For further information about steelmaking coal, read our recent blog post or review the Steelmaking Coal Fact Sheet.
Steelmaking coal is a key ingredient in the production of steel, which is critical to many of the things we rely on each day – our buildings, vehicles, rapid transit and many everyday household items.
Steel also plays a critical role in green energy production. Whether it is a wind turbine, solar panel, tidal power system or bio-energy infrastructure – it all requires steel. For example, 100 tonnes of steelmaking coal is required to produce the 185 tonnes of steel used in a typical wind turbine.
Why is Canadian coal in demand?
Canada’s steelmaking coal is in extremely high demand because it is high-grade bituminous hard coking coal – some of the highest quality of coal available. In fact, Canada is the world’s third largest exporter of metallurgical coal, after Australia and the United States.
Coal is the largest export through Port Metro Vancouver and generates 26,000 jobs across BC each year. The coal exported from BC is a combination of steelmaking and thermal coal from mines in Canada and the United States.
Here in British Columbia, coal has been safely mined and transported for more than 100 years. The coal supply chain – from mine to railway to export terminal – operates under environmental and safety regulations that are among the most stringent in the world.
We are proud be an important economic driver in our province.
Want to learn more? Download the Steelmaking Coal Fact Sheet.
Strong metallurgical coal prices and rallying thermal coal markets are spurring heightened interested in Canada’s coal mines and projects, according to a recent S&P Global Platts article.
The Coal Association of Canada seeks to drive further global investment to the sector, which is already catching the eye of a number of Australian-listed companies.
The CAC is anticipating strong attendance for its annual conference in Vancouver from Sept. 12-14, which this year is focusing on attracting investment for development of Canada’s coal reserves.
“Our high-grade metallurgical and thermal coal combined with first-rate infrastructure and transportation for getting out coal to market on both the east and west coasts makes Canadian coal a cost-effective solution for a resource that is in very high demand,” CAC is quoted in the S&P Global article.
U.S. thermal coal miners are increasingly shipping out of Canada, due to limited coal export capacity at California ports and congested U.S. east coast terminals.
Westshore Terminals exported 7.2 million mt in Q1, the article states, of which 56 percent was metallurgical coal and 44 percent was thermal.
U.S. coal exports totalled 52.7 million mt in June, up 31.7 percent compared with the same period last year, according to the latest data reported in Hellenic Shipping News.
B.C.’s mining industry is growing strong, largely due to increased demand and commodity prices for metallurgical coal, according to PwC Canada’s latest mining report.
Metallurgical coal, or steelmaking coal, saw the largest year-over-year price surge in 2017, increasing 50 per cent compared to 2016, the report finds. Copper also showed strong growth, rising 27 per cent year-over-year in 2017, while the average zinc price increased 38 per cent.
Metallurgical coal is needed to produce the steel for everything from cars to clean-energy infrastructure such as public transit and wind turbines.
“Rising demand for these and other commodities from countries such as China is helping drive prices higher, as is the growing need for metals to help with infrastructure development and in the transition to a low-carbon economy,” Bryan Cox, president and CEO of the Mining Association of British Columbia, states in the report.
B.C. is Canada’s largest exporter of metallurgical coal. Shipments totalled 28.6 million tonnes in 2017, up from 25.4 million tonnes in 2016 and 24.4 million tonnes in 2015. Metallurgical coal prices averaged US$173/tonne in 2017 compared to US$115/tonne in 2016 and US$101/tonne in 2015.
Metallurgical coal operations in B.C. saw overall revenues increase to $6.3 billion in 2017 from $3.9 billion in 2016.
Optimism in B.C.’s mining sector is growing strong, the PwC survey states. Gross mining revenue from B.C. operations came in at $11.7 billion compared to $8.7 billion in 2016. Net mining revenue, which is after cost deductions for treatment and refining, freight and transportation and sales and marketing, was $10.1 billion compared to $7.3 billion in 2016. Net income before taxes rose to $3.5 billion compared to $1.4 billion in 2016.
Read the full PwC report.
On his way from Edmonton to Red Deer, Robin Campbell is thinking about the road ahead for Canada’s coal industry. He knows it’s far from smooth, yet he displays the kind of gritty determination typical of so many Albertans.
Coal, he says, remains part of the world’s energy mix. And steel-making coal will continue to be an important Canadian export as long as the world…well, needs steel.
Campbell, a former Alberta environment minister – and, incidentally, a 4th generation miner who spent nearly 30 years in the coal industry – is the new president of the Coal Association of Canada.
On this day he’s travelling to Red Deer to meet with union representatives. It’s about their members, their jobs, their livelihoods.
Campbell says his mission is to preserve jobs in the industry and to work with governments to play a positive role in fighting climate change. The challenge, he says, is demonstrating how coal has a role to play in the global energy mix and to invest in technologies that have the potential to drastically reduce emissions.
“So we’d like to see the government, especially in Canada, up the ante in research and technology and do a better job of retrofitting plants, patenting that technology and selling it worldwide to developing countries so that they can continue to develop, which is positive for everybody – but do so with much lower emissions.
“India has 240 to 300 million people without power. They’re going to do what they have to do to get that power to their citizens,” he says.
As a former mine worker, union official and cabinet minister, Campbell understands the challenges and issues facing the coal industry. However, the nations of the world, he says, will always need steel, always need affordable and reliable energy. And now, more than ever, Canada needs those tens of thousands of well-paying jobs, direct and indirect, that depend on Canadian coal.
Registration for the Western Canadian Coal Society’s CoalSMART 2016 Forum is now open.
At a time when there is a shortage of good news in coal markets, we explore the steps needed to hit the ground running as the recovery unfolds. How do we position ourselves to make the most of the various coal opportunities in Canada? How can we ensure we keep abreast of developments in coal technology? What are the key industry drivers that bear watching?
Join a diverse group of speakers and participants as we build on the success of CoalSMART 2015.
PROGRAM TOPICS:
– Mining in NEBC Can be Successful!
– What Will it Take For a Comeback? Money, People, Plans, Permission – Panel Discussion
– Seismic Geophysics and Coal Exploration
– Selenium – A Case Study
– Deep Underground Coal Mining
– New Mine Permitting Regulations
– Technological Threats to Metallurgical Coal in Iron & Steel Making
For more information, please read the CoalSMART 2016 Circular.
To register for the Forum, please do so online by clicking here!
Teck Resources Limited (“Teck”) is piloting the use of liquefied natural gas (LNG) to fuel haul trucks at its Fording River steelmaking coal operation in southeast B.C. – the first time LNG has been used as a haul truck fuel at a Canadian mine site. Haul trucks are used to transport rock and steelmaking coal at the mine site.
This project is just one great example of how innovative B.C.’s steelmaking coal industry is in improving the environmental performance of its operations. Coal Alliance members are constantly looking at ways to modernize and reduce the impact of their operations through initiatives like this one.
And the results of these innovations can be significant: the use of LNG as a haul truck fuel source across Teck’s steelmaking coal operations has the potential to eliminate approximately 35,000 tonnes of CO2 emissions annually – equivalent to taking around 8,000 passenger cars off the road*.
Teck itself has a long-term target to reduce annual GHG emissions by 450,000 tonnes at its operations by 2030. Since 2011, Teck has reduced annual emissions by 170,000 tonnes as the result of initiatives it has implemented. As a result of Teck’s focus on reducing emissions, their steelmaking coal has among the lowest carbon intensities in the world at less than half the industry average (60-70kg/CO2e per tonne of steelmaking coal vs. the industry average of over 150 kg/ CO2e per tonne).
These are the types of achievements that make B.C’s coal industry one of the most advanced and progressive in the world. There is a very real need for steelmaking coal internationally, and B.C. is helping to meet that need while minimizing the environmental impact from doing so. Initiatives such as switching to cleaner fuels are a part of this, and deserve to be recognized.
*Calculation based on figures published by the United States Environmental Protection Agency’s Office of Transportation and Air Quality, Average Annual Emissions and Fuel Consumption for Gasoline-Fueled Passenger Cars and Light Trucks, 2008 http://www3.epa.gov/otaq/consumer/420f08024.pdf