Coal Mining in Canada to 2020

Coal is by far the most abundant fossil fuel available in Canada, with recoverable reserves totaling 6.6 billion tonnes (t) at the end of 2013, which, according to the BP Statistical Review of World Energy, accounted for 0.7% of global reserves.

Around 53% of the reserves are of bituminous grade and coking type, with sub-bituminous and lignite-graded coal accounting for the rest. The majority of the reserves are located in the western provinces of British Colombia, Alberta and Saskatchewan.

Scope

The report contains an overview of the Canadian coal mining industry together with the key growth factors and restraints affecting the industry.

It also provides information about reserves, reserves by region, production, production by region, historic consumption and forecast, consumption by sector and type, trade, coal prices, competitive landscape and major active, exploration and development projects.

Key Highlights

• Coal is by far the most abundant fossil fuel available in Canada, with recoverable reserves totaling 6.6 billion tonnes (t) at the end of 2013, which, according to the BP Statistical Review of World Energy, accounted for 0.7% of global reserves.

• In 2013, 68.3 million tons (Mt) of coal was produced, a 2.7% increase over 2012, mainly due to an increase in production from the Genesee mine to 5.2Mt in 2013. Over 2014−2020, Canada is expected to produce an average of 83.6Mt of coal annually with several new mines expected to commence production in this period, including the Vista Extension project in Alberta, the Border project in Saskatchewan and the Graham River project in British Columbia.

• Investments in coal projects are more cyclical in nature than other commodities; in 2014, investment is expected to be up by US$0.8 billion, following a 38.5% decline in 2013. However, overall capital investments in the Canadian mining sector are expected to decline for the second consecutive year in 2014 to around US$11.5 billion.

• According to Statistics Canada, the mining industry is the country’s largest private sector employer. The Canadian mining and quarrying industry in 2012 employed 73,000 people, and increase of 10.9% compared with 2011. Growth in employment was stronger in metal mining, at 9.1%, and coal mining, at 4.7%. Non-metal mining recorded a marginal increase of 0.9%.

Reasons to buy

Gain an understanding of the Canadian coal mining industry, the relevant drivers and restraining factors, reserves, reserves by region, historic and forecast production and consumption, production by region, consumption by sector and type, trade, coal prices, competitive landscape and major active, exploration and development projects, and the country's fiscal regime.

Companies mentioned

Grande Cache Coal Corporation

Teck Resources Ltd

Westmoreland Coal Company

Table of Contents

1 Executive Summary

2 Coal Mining in Canada – Drivers and Restraints

2.1 Coal Mining in Canada – Drivers

2.2 Coal Mining in Canada – Restraints

3 Coal Mining in Canada – Reserves, Production, Consumption and Trade

3.1 Reserves by Grades and Geographical Region

3.1.1 British Columbia

3.1.2 Alberta

3.1.3 A typical proximate analysis of various coals is tabulated below:

3.2 Historical and Forecast Production

3.3 Total Production by Grade

3.3.1 Total production by grade – bituminous

3.3.2 Total production by grade – lignite

3.4 Total Production by Type

3.4.1 Total production by type – steam, coking and lignite

3.5 Total Production by Province

3.5.1 Alberta

3.5.2 British Columbia

3.6 Total Production by Mining Method

3.7 Coal Prices

3.8 Total Production by Major Mines

3.9 Major Exploration and Development Projects

3.10 Consumption vs Trade

3.10.1 Domestic consumption vs exports

3.10.2 Domestic consumption by sector – power generation

3.10.3 Consumption by type – coking, steam and lignite

3.10.4 Exports to destination countries

3.10.5 Exports by type

3.10.6 Imports from country of origin

3.11 Demand Drivers

3.11.1 Demand for steel in offshore markets to drive Canadian coal production

3.11.2 Chinese steel production

3.11.3 Japanese steel production

3.11.4 South Korean steel production

4 Competitive Landscape

4.1 Grande Cache Coal Corporation

4.2 Teck Resources Limited

4.3 Westmoreland Coal Company

5 Fiscal Regime

5.1 The Canadian Mining Industry – Governing Bodies

5.1.1 Alberta

5.1.2 British Columbia, Ministry of Energy and Mines

5.1.3 Nova Scotia, Department of Natural Resources

5.1.4 Ontario, Ministry of Northern Development and Mines

5.1.5 Quebec, Ministère des Ressources naturelles et de la Faune

5.1.6 Newfoundland and Labrador, Department of Natural Resources

5.1.7 New Brunswick, Department of Natural Resources and Energy (DNRE)

5.1.8 Saskatchewan, Minerals, Lands and Policy Division

5.1.9 Manitoba, Department of Innovation, Energy and Mines

5.1.10 Yukon, Department of Energy, Mines, and Resources

5.1.11 Northwest Territories

5.1.12 Northwest Territories (NWT) and Nunavut Chamber of Mines

5.2 The Canadian Mining Industry – Governing Laws

5.2.1 Alberta

5.2.2 British Columbia

5.2.3 Nova Scotia

5.2.4 Ontario

5.2.5 Quebec

5.2.6 Newfoundland and Labrador

5.2.7 New Brunswick

5.2.8 Saskatchewan

5.2.9 Manitoba

5.2.10 Yukon

5.2.11 Northwest Territories

5.2.12 Nunavut

5.3 The Canadian Mining Industry – Mining Licenses and Rights

5.3.1 Alberta

5.3.2 British Columbia

5.3.3 New Brunswick

5.3.4 Nova Scotia

5.3.5 Saskatchewan

5.4 The Canadian Mining Industry – Key Fiscal Terms

5.4.1 Royalty

5.4.2 Annual rents

5.4.3 Corporate Income Tax

5.4.4 Provincial Income Tax

5.4.5 Branch Profit Tax

5.4.6 Withholding Tax

5.4.7 Capital Gains

5.4.8 Goods and Service Tax / Harmonized Sales Tax (HST)

5.4.9 Depreciation

5.4.10 Other Provincial Taxes

5.4.11 Business Loss

6 Appendix

6.1 What is this Report About?

6.2 Methodology

6.3 Secondary Research

6.4 Primary Research

6.5 Contact GlobalData

6.6 About GlobalData

6.7 GlobalData’s Services

6.8 Disclaimer

List of Tables

Table 1: Coal Mining in Canada – Established Initial in-place Resources and Remaining Recoverable Reserves of Raw Coal in Alberta (Billion Tonnes), December 31, 2014

Table 2: Typical Proximate Analysis of Various Coals

Table 3: Coal Mining in Canada – Coal Production (Million Tons), 2000–2020

Table 4: Coal Mining in Canada – Total Production by Grade, Bituminous and Lignite (Million Tons), 2000–2020

Table 5: Coal Mining in Canada – Total Production by Type, Steam, Coking and Lignite (Million Tons), 2000–2020

Table 6: Coal Mining in Canada – Major Active Mines, 2014

Table 7: Coal Mining in Canada – Major Exploration Projects, 2014

Table 8: Coal Mining in Canada – Major Development Projects, 2014

Table 9: Coal Mining in Canada – Consumption vs. Exports (Million Tonnes), 2000–2020

Table 10: Coal Mining in Canada – Domestic Consumption by Type (Million Tonnes), 2010–2020

Table 11: Coal Mining in Canada – Export to Region and Destination Countries (Million Tonnes), 2013

Table 12: Coal Mining in Canada – Exports by Type (Million Tonnes), 2000–2020

Table 13: Coal Mining in Canada – Import from Region and Country of Origin (Million Tonnes), 2013

Table 14: Coal Mining in Canada – Grande Cache Coal Corporation, Major Projects, 2014

Table 15: Coal Mining in Canada – Teck Resources Limited, Major Projects, 2014

Table 16: Coal Mining in Canada – Westmoreland Coal Company, Major Projects, 2014

Table 17: The Mining Industry in Canada – Alberta Coal Royalty Rates (%), 2014

Table 18: The Mining Industry in Canada – Saskatchewan Tiered Royalty (%), 2014

Table 19: The Mining Industry in Canada – British Columbia Annual Rent for Coal License (CAD/ha), 2014

Table 20: The Mining Industry in Canada – Provincial Corporate Tax Rates (%), 2014

Table 21: The Mining Industry in Canada – GST/HST Rates(%), 1997–2014

Table 22: The Mining Industry in Canada – Depreciation Rates (%), 2014

Table 23: The Mining Industry in Canada – British Columbia Mineral Land Tax Rates (CAD), 2014

Table 24: The Mining Industry in Canada – British Columbia Coal Carbon Tax (CAD), 2010–2014

List of Figures

Figure 1: Coal Mining in Canada – Total Capital Investments by Mining Sub-Sector (%), 2012–2014

Figure 2: Coal Mining in Canada – Planned Reduction of Coal Fired Electricity Generation Capacity, (2007–2040)

Figure 3: Coal Mining in Canada – Location of Coalfields in Canada

Figure 4: Coal Mining in Canada – Coalfields in British Columbia

Figure 5: Coal Mining in Canada – Location of Coalfields in Alberta

Figure 6: Coal Mining in Canada – Coal Production (Million Tons), 2000–2020

Figure 7: Coal Mining in Canada – Total Production by Grade, Bituminous and Lignite (Million Tons), 2000–2020

Figure 8: Coal Mining in Canada – Total Production by Type, Steam, Coking and Lignite (Million Tons), 2000–2020

Figure 9: Coal Mining in Canada – Coal Production by Province (%), 2013

Figure 10: Coal Mining in Canada – Coal Mines by Province, 2013

Figure 11: Coal Mining in Canada – Historic and Projected Coal Production in Alberta (Million Tonnes), 2003–2023

Figure 12: Coal Mining in Canada – Historic Average Annual Coking Coal Prices* (US$/Tonne), 2006–2013

Figure 13: Coal Mining in Canada – Forecast Coking Coal Contract Prices* (US$/Tonne), 2013#–2019

Figure 14: Coal Mining in Canada – Historic Average Annual Thermal Coal Prices* (US$/Tonne), 2006–2013

Figure 15: Coal Mining in Canada – Forecast Thermal Coal Contract Prices* (US$/Tonne), 2013#–2019

Figure 16: Coal Mining in Canada – Domestic Consumption vs Exports (Million Tonnes), 2000–2020

Figure 17: Coal Mining in Canada – Canadian Electricity Generation by fuel Type (%), 2013

Figure 18: Coal Mining in Canada – Domestic Consumption vs. Consumption by Type (Million Tonnes), 2010–2020

Figure 19: Coal Mining in Canada – Export to Destination Countries (%), 2013

Figure 20: Coal Mining in Canada – Exports by Type (Million Tonnes), 2000–2020

Figure 21: Coal Mining in Canada – Import from Country of Origin (%), 2013

Figure 22: Coal Mining in Canada – Steel production in China, South Korea and Japan (Million Tonnes), 2013-2019

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