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Canada’s Coal industry
According to the Coal Association of Canada, Canada holds close to 10 billion tones of coal reserves which contribute approximately $5 billion to the economy annually. At the end of 2005, the country had 24 operating coal mines; the large-scale mines being located in western Canada. Coal meets almost one seventh of the country’s primary energy needs, primarily for electricity generation. In 2007, the country produced 70 million tones of coal (60% thermal coal and 40% metallurgic coal), valued at C$2.7 billion. The following graphs represent the trend of coal production and consumption between 1990 and 2007.
The largest coal export markets for Canada are Japan and Korea. While thermal coal is primarily used for domestic purpose, almost the entire production of metallurgic coal is exported. In 2007, the country exported approximately 31 million tones of coal, of which 90% was coking coal valued at $2.9 billion. It also imports coal into central and eastern provinces due to its geographic proximity to the US, around 80% of which goes to Ontario and is mostly used for coal-fired generation
The Elk Valley Coal Partnership is the world’s second largest exporter of metallurgic coal, a high grade of coal which is used as fuel and as a reducing agent in smelting iron ore in blast furnaces. Fording Canadian Coal is the largest coal company in Canada by production and market capitalization. It holds a 60% interest in Elk Valley Coal Partnership. Prairie Mines & Royalty Ltd. is the largest thermal coal producer in Canada.
Around half of Canada’s coal is transported by rail. Coal from mines in eastern British Columbia and western Alberta travels about 1100 km to west coast ocean ports, or 2300 km to Thunder Bay for shipment by lake to Ontario or the United States.
The impact of coal mining on the environment is a growing concern for all the coal producing nations around the world. To address these concerns, Canada has some of the world’s most stringent standards for mine operations, worker safety and environmental protection. These standards also help in ensuring that the land used in coal mining can be returned to other productive uses within a few years of being mined.