Abstract
Canada represents a comparatively unique case in the world coal industry, being a significant importer of both metallurgical and thermal coals as well as an exporter. The vast distances between the major coal producing areas in western Canada and the industrial heartland to the east, and commensurate high freight costs explain this apparent dichotomy. Eastern US coals supply much of the industrial requirement in eastern Canada, chiefly the Province of Ontario, the major consumer of imported coals. Only about 25% of this requirement is met with western Canadian coal. Overall, Canada is not a coal based economy. Because of large reserves of oil and natural gas, coal supplies only 10% of Canada's energy needs.
Despite the long-standing reliance on US imports, Canada has become a net exporter of coal on the basis of a comparatively young industry that has blossomed in western Canada since 1970. Metallurgical coal, the foundation of the Canadian export industry, was initially the sole export product but has been joined since the late 1970s by thermal coal. The growth in thermal coal exports is expected to exceed the growth of metallurgical coal exports over the remainder of the 1980s, but metallurgical coal will retain its major share of exports even by 1990.
Not to be forgotten is the relatively modest export trade of metallurgical coal from the east of Canada, where coal has been produced in the mines of Cape Breton, Nova Scotia, for many decades. The extent to which growth of exports from this region can be expected is uncertain at present, although expanded Nova Scotia exports could displace some US exports if expansion can take place economically.
The western Canadian industry is well placed to participate in existing and new world-markets for coal, particularly in the Far East, due to the locational advantages on the Pacific, but also importantly in Europe due to the size and quality of the Canadian resource base and due to competitive mining costs.
In addition, over a decade and a half have been dedicated to the placement of a modern and efficient infrastructure of rail and port facilities in the west to promote the development of a viable export business.
The major portion of this paper addresses the main features of the Canadian coal industry, highlighting the export industry. The main features include: the large, well-located coal resources, growing production, consistent quality, competitive mine costs, modern infrastructure, labour stability and supportive government.
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