NEWS RELEASE: New report shows importance of coal to B.C.

February 15, 2013

A new report from PwC shines a light on the important the important role coal plays in B.C.’s economy and how it contributes to a better B.C.

Report: Economic impact analysis of the coal mining industry in B.C.:

In 2011, the coal industry generated an estimated $3.2 billion in provincial GDP and approximately $715.2 million in tax revenue for all levels of government including $399 million in tax revenue generated by economic activity and $316.2 million in mineral tax payments to British Columbia. The revenue collected by government helps to pay for government infrastructure including schools, roads and hospitals as well as provincial services and supports.

The majority of the coal mined in British Columbia is metallurgical coal – which is used to make steel and essential competent of modern life. The majority of coal produced in B.C. is exported to Japan and South Korea. It’s in high demand from consumers because of its low sulfur, low ash, and high carbon content which burn more cleanly than other coals.

Coal also creates jobs. Over 26,000 people are directly employed by the coal industry and they earn higher than average wages. For example, the estimated annual wage for those directly employed by coal companies was $95,174, twice the average provincial wage of $43,500! Higher wages often result in increased consumer spending which benefits B.C. businesses and most importantly the smaller more remote communities where mining takes place.

Coal clearly benefits B.C. With 12 billion tonnes of potentially mineable resources, coal can help ensure that B.C.’s economy remains strong for years to come.


Economic and Social Impacts

 The coal mining industry contributes just over $3.2 billion in value-added GDP to the provincial economy.
 In 2011, the value of provincial coal production reached $5.7 billion.
 Total tax payments made by the coal mining industry to all levels of government in 2011 was $715.2 million – this
includes $399 million in tax revenue generated by economic activity and $316.2 million in mineral taxes paid to
the B.C. Government.
 Tax revenue helps government support infrastructure and government programs which enrich the lives of people
living in B.C.

Coal Resources

 British Columbia has 12.9 billion tonnes of potentially mineable coal resources, of which 8 billion tonnes are
located in the East Kootenay coalfields in southeast B.C. and 4.9 billion tonnes are located in the Peace River
coalfield in northeast B.C.
 B.C. has 10 operating coal mines located in the northeast (Peace River area) and the southeast (Kootenay area),
and Vancouver Island. Additional project sites throughout the province are under exploration or at other stages of
advanced development.
 9 mines produced metallurgical coal (used for making steel) while one mine (located on Vancouver Island)
produced thermal coal.

Production and Exports

 In 2011, B.C. coal production represented almost 40% of national coal production.
 B.C. has produced around 25 million tonnes of primarily metallurgical (steel-making coal) and thermal coal every
year generating significant economic and social benefits.
 Export sales for metallurgical and thermal coal were $7.1 billion in 2011, representing 22% of total exports from
British Columbia.
 Canada is the third largest exporter of metallurgical coal after Australia and the United States and 89% of
Canadian metallurgical coal comes from B.C.
 Coal exports are a major contributor to B.C.’s export activity making up 21.8% of total provincial exports in 2011.
 Japan and South Korea consumed the largest share of B.C’s total metallurgical coal exports, however China’s
demand for B.C. coal has been on the rise recently.


 Canada’s coal industry requires a highly skilled and technical workforce including engineers, geologists,
technologists, environmental scientists, and a variety of tradespeople such as electricians and heavy duty
 Over 26,000 jobs in B.C. are attributable to the coal industry.
 The estimated average yearly wage for workers directly employed by coal companies was $95,174 in 2011. This
is twice that of the provincial wage of $43,500.

About the Report

 The Coal Association of Canada engaged PricewaterhouseCoopers LLP (PwC) to quantify the economic
contributions of British Columbia’s coal mining industry. This report is a companion to a national coal report
released in October 2012.
 The economic impact analysis of the B.C. coal industry is based on a confidential survey of the coal companies
operating mines in BC as well as companies involved in the exploration and development of new mine sites.
 Along with information from coal companies, information from Statistics Canada and Natural Resources Canada
were used to estimate industry impacts.

For more information:
Michelle Mondeville
Coal Association of Canada