Canadian Minerals Yearbook (CMY) - 2008

Coal


Printable version – PDF (188 kb)

Kevin Stone

The author is with the Minerals and Metals Sector,
Natural Resources Canada.
Telephone: 613-992-5199
E-mail: kevin.stone@nrcan-rncan.gc.ca

HIGHLIGHTS

  • Canada’s coal industry plays an important role in the Canadian economy as a direct employer of more than 5000 people and as a provider of more than 10% of Canada’s primary energy.
  • The Herman coal mine project in British Columbia and the Donkin underground exploration project in Nova Scotia received environmental assessment approvals in 2008 and could move towards mine development.
  • The price for coking coal hit a record high of US$300/t in early 2008. Steam coal experienced a high of US$150/t in mid-2008.
  • The coal industry fell victim to the global economic setback with a significant market collapse in the last quarter of 2008 with Willow Creek being idled. It is difficult to anticipate a quick recovery in demand for coal in 2009 as governments in various major economies are still laying out stimulus plans. However, from a mid-range outlook, global demand for coking coal will continue to increase following global economy recovery and growth.

INTRODUCTION

Coal is an organically derived material. It is formed from the remains of decayed plant material compacted into a solid through millions of years of chemical changes under pressure and heat. As the organic maturity process continues, the buried plant material is transformed into different types of coal. In general, the longer the coal is subjected to heat and pressure, the higher its grade and contained heat volume per unit weight. Bituminous coal and anthracite are high-rank coals, also known as hard coal. Bituminous coal is consumed for both metallurgical and thermal purposes. Premium-grade bituminous coal, often referred to as metallurgical coal or coking coal, is used to produce coke, which is a key ingredient in iron and steel-making. Anthracite, the highest rank coal, is often called “smokeless” and can be consumed by households as a fuel for heat and cooking, and by various industries. Lignite and subbituminous coal are low-rank coals, also known as brown coals, consumed only for the generation of electricity.

Coal is the world’s most abundant and widely distributed fossil fuel. According to Coal Information, the annual publication by the International Energy Agency, the world’s total proven recoverable coal reserves were 935 billion t at the end of 2006 spread over and mined in more than 70 countries. At its current production rate, coal will offer more than 149 years of supply, significantly longer than known reserves of oil and gas. Coal is an economical energy source compared to oil and gas.

Coal has been consumed as an energy source for hundreds of years. It provided the energy that boosted the industrial revolution of the 19th century and launched the electric era in the 20th century. Coal was the most important source of the world’s primary energy until the late 1960s when it was overtaken by oil. Today, close to 90% of the world’s total coal production is consumed as steam coal. The majority of steam coal is used to generate electricity and a small portion is used as a fuel for heat or steam, such as for residential building heating; for the cement, pulp and paper, and other industries; and for the agriculture and transportation sectors. Coal-fired power generation currently provides more than 40% of the world’s total electricity. In Canada, 15.5% of the total electricity is provided by coal-fired power generation. About 10% of global coal production is transformed into coke and used in iron and steel-making. Almost all primary steel production worldwide is based on pig iron from blast furnaces fed with coke from coal and iron ore.

The Canadian coal industry plays an important role in the Canadian economy, both as a mining industry and as an energy provider. It currently employs more than 5000 people directly in the production of coal and creates even more indirect jobs in various sectors across the country. Coal provides about 10% of the primary energy needs in Canada. Coal and the coal industry also make a significant contribution to Canada’s national Gross Domestic Product. Canada holds 8.7 billion t of proven coal reserves, including 6.6 billion t of proven recoverable coal reserves, which will provide more than 100 years of production at the current production rate. In addition, about 193 billion t of coal resources have been identified.

Most large-scale coal mines are located in western Canada. Twenty-two coal mines were in operation in Canada and two mines were idled at the end of 2008. Ten coal mines are in British Columbia (B.C.), of which nine were operating and one was idled in 2008. The operating mines are Brule, Coal Mountain, Elkview, Fording River, Greenhills, Line Creek, Quinsam, Trend, and Wolverine. The idled mine is Willow Creek. Alberta is home to nine coal mines. The eight operating mines are Cheviot, Coal Valley, Genesee, Grande Cache, Highvale, Paintearth, Sheerness, and Whitewood. The idled mine is Obed Mountain. Saskatchewan has three mines: Bienfait, Boundary Dam, and Poplar River. New Brunswick and Nova Scotia each have one coal mine (the Minto and Stellarton mines, respectively).

Four companies produce metallurgical (coking) coal or Pulverized Coal Injection (PCI) coal for export: Teck Coal Limited (Teck Coal) with six mines, Western Canadian Coal Corporation (WCC) with two mines, Grande Cache Coal Corporation with an underground mine and a surface mine, and Peace River Coal Inc. (PRC). Two companies produce bituminous thermal coal for export: Sherritt International Corporation (Sherritt) and Hillsborough Resources Limited. Three companies produce subbituminous, lignite, and bituminous coal for domestic coal-fired power generation: Sherritt, operating eight mines; Pioneer Coal Limited; and NB Coal Limited (refer to Table 6 ).

Coal is the number one commodity in volume hauled by rail and handled by ports in Canada. About 34 Mt of coal was hauled by rail and approximately 53 Mt of coal was handled by ports in 2008.

Figure 1 - Principal Canadian Coal Mines and Ports

CANADIAN DEVELOPMENTS

Sherritt International Corporation completed its acquisition of the remaining share in the Royal Utilities Income Fund from the Ontario Teachers’ Pension Plan in June 2008. Following the acquisition, Sherritt created a coal business unit that delineated its coal operations into three groups: Prairie Operations, Mountain Operations, and coal development assets. Sherritt’s Prairie Operations own and operate the Paintearth, Sheerness, Genesee (a 50-50% joint venture by Sherritt and EPCOR), Poplar River, Boundary Dam, and Bienfait mines, and operate the Highvale and Whitewood mines under contract. The Mountain Operations’ principal asset, Coal Valley Resources Inc. (CVRI), is owned by Sherritt (50%) and the Ontario Teachers’ Pension Plan (50%). CVRI mines and sells thermal coal and owns the Coal Valley mine, Obed Mountain mine, Gregg River mine, and Coleman properties. Currently, the Coal Valley mine is the only active mine; it sold 3.6 Mt of thermal coal in 2008. The coal development assets include the Carbon Development Partnership (CDP), a 50-50 partnership between Sherritt and Norit Canada that holds more than 10 billion t of coal reserves and resources. CDP is currently working towards monetizing its coal reserves through the development of various projects. CDP’s foremost project is the Dodds-Roundhill coal gasification project. Sherritt currently supplies domestic utilities and international companies with fuel for electricity generation.

Teck Resources Limited (Teck) acquired the remaining 60% interest in the Elk Valley Coal Partnership from Fording Canadian Coal Trust and became the sole owner in October 2008. Upon completion of the transaction, Teck created five business units and one was designated to manage the metallurgical coal operations. Teck Coal Limited was created to replace Elk Valley Coal Corporation. The change in ownership did not disrupt the operations.

In British Columbia, the Herman coal mine project proposed by WCC received environmental assessment approval in November 2008. WCC can now proceed with mine development. The project, which is an open-pit mine with a capacity to produce 0.8-1.1 Mt/y of metallurgical coal, is located in northeastern B.C. approximately 16 km (33 km by road) west of Tumbler Ridge. The coal will be hauled by truck to WCC’s nearby Wolverine coal mine for processing. Capital costs are estimated at $55 million and the project is expected to generate approximately 100 jobs annually over the 10-year life of the mine.

In Nova Scotia, the Minister of Environment approved the environmental assessment of the proposed Donkin underground exploration project in December 2008. The Donkin coal block is situated on the east peninsula of Cape Breton Island. In the 1980s, the federal government financed the development of two exploratory tunnels from what is commonly referred to as the Donkin mine site. During this period, over $80 million was spent on digging these tunnels and conducting other exploratory work related to this coal reserve. Although the reserves are estimated to contain up to 300 Mt of recoverable coal, production was shut down in 1992 when the price of coal fell. No coal was ever extracted, and the tunnels were sealed and allowed to flood. As the mine entrance is situated on land near Sydney but the coal seam extends out under the ocean, both the federal government and Nova Scotia claim jurisdiction over the Donkin coal block. On November 13, 2007, Parliament passed the Donkin Coal Block Development Opportunity Act to pave the way for mine development to proceed. Xstrata, who was granted the right to develop the Donkin coal block in December 2005, spent many months and many millions of dollars pumping water from the flooded tunnels as part of a feasibility study to determine if the mine can be operated profitably. In 2008, Xstrata completed its feasibility study and submitted the project environmental impact study in October 2008. The company outlined a mine development plan that included: Phase I - preparatory work both on the surface and subsea (one year); and Phase II - removal of an average of 2000 t/d (two to three years). A positive outcome would be a longwall mining operation in 2012 with production beginning in 2014. It is anticipated that the production rate of a longwall mining operation would range between 3.7 and 5.2 Mt/y. The life of the mining operation beyond the exploration phase is estimated to be between 20 and 30 years. Xstrata Plc is a diversified mineral producer listed on the London and Swiss stock exchanges. Xstrata owns 75% of Donkin Coal Limited and Erdene Gold owns 25%.

PRODUCTION

Preliminary figures indicate that Canada produced 68.1 Mt of coal in 2008, or 1 Mt less than the 69.1 Mt produced in 2007.

Alberta produced 31.5 Mt of coal, B.C. produced 26.6 Mt, Saskatchewan produced 10 Mt, and New Brunswick and Nova Scotia each produced a limited amount.

About 26.7 Mt of the production was coking coal for export; approximately 5.6 Mt of the production was bituminous steam coal for export and the rest (36.5 Mt) was steam coal destined for domestic coal-fired power generation. Most of the output in the coking coal category was hard coking coal and a small portion was PCI coal. The majority of the steam coal was subbituminous and lignite coal, while more than 10% was a bituminous-grade steam coal.

Figure 2 - Canadian Coal Production, 1998-2008

CONSUMPTION

It is estimated that Canada’s coal consumption in 2008 was similar to the 2007 level at about 60 Mt. The largest consumer in 2007 was coal-fired electricity generation, which used 53 Mt of coal in 21 coal-fired power generation plants. About 4.3 Mt of metallurgical (coking) coal was transformed into coke to be used in the steel industry. Various industries consumed about 2.4 Mt of coal for energy use and 690 000 t for non-energy use. Of the total amount consumed, 38 Mt was sourced domestically and 22 Mt was imported.

Alberta, the largest coal-consuming province, consumed 27 Mt of coal in 2007, accounting for 45% of Canada’s total coal consumption. Alberta’s coal consumption was almost all used in coal-fired power generation, which amounted to 26.6 Mt in 2007, accounted for half of Canada’s coal consumption for electricity generation, and provided about 66% of the electricity supply in the province. Industrial and other uses of coal consumed 417 000 t in 2007.

Ontario is the second largest coal-consuming province. In 2007, Ontario consumed close to 18.1 Mt of coal, including 13.1 Mt for coal-fired power generation, 4.3 Mt for coke production, 485 000 t for use by various industries, and 265 000 t for non-energy uses. It is estimated that coal-fired power generation provided about 16% of the province’s total electricity in 2007. It is expected that Ontario’s coal consumption will be stable in the short term as the province has postponed the closure of all coal-fired power generation plants to 2013 due to electricity demand increases.

Saskatchewan consumed 9.7 Mt of coal in 2007. Of that total, 9.4 Mt was lignite coal consumed for coal-fired power generation, providing about 60% of the province’s electricity supply. Various industries in Saskatchewan consumed 327 000 t of coal in 2007.

Nova Scotia consumed 2.7 Mt of coal in 2007. Almost all of this consumption was used in coal-fired electric power generation, which provided about 54% of the province’s electricity supply. New Brunswick consumed 1.1 Mt of coal in 2007, all for coal-fired electric power generation. Quebec consumed 796 000 t in 2007 for energy and industrial purposes. Its coal consumption has remained stable for the last decade. British Columbia consumed 654 000 t of coal in 2007, also for energy and industrial purposes. B.C.’s consumption has been stable for the last five years. Manitoba consumed 300 000 t of coal in 2007. Most of it, 233 000 t, was used for electricity generation and a limited amount was used for industrial purposes.

INTERNATIONAL TRADE

According to Coal Information, the world’s total coal production was 6488 Mt in 2007, including hard coal and brown coal (subbituminous and lignite), and the world’s total coal consumption was 4632 Mt of coal equivalent.1 The global coal trade volume was 917 Mt in 2007.


1 The term “total coal” refers to the sum of hard coal and brown coal after conversion to a common energy unit (tonne of coal equivalent). The conversion is done by multiplying the calorific value of the coal in question by the total volume of hard coal and brown coal used, measured in physical units, i.e., in tonnes. The energy content of one tonne of coal equivalent is 29.3 gigajoules, or 7000 kilocalories, and corresponds to 0.7 tonnes of oil equivalent.


WORLD MAJOR COAL-PRODUCING COUNTRIES, 2006 AND 2007
Country 2006 2007
Production Ranking Production Ranking
(Mt)   (Mt)  
China 2 320.2 1 2 549.2 1
United States 1 067.9 2 1 052.0 2
India 459.5 3 484.4 3
Australia 367.5 4 395.2 4
Russia 284.6 5 313.7 5
Indonesia 221.2 7 259.2 6
South Africa 244.8 6 243.6 7
Germany 200.1 8 204.6 8
Poland 156.1 9 147.8 9
Kazakhstan 96.2 10 86.4 10
Turkey 64.3 14 72.5 11
Colombia 65.6 12 71.7 12
Canada 66.4 11 69.5 13
Greece 64.5 13 64.4 14
Czech Republic 62.4 15 62.2 15

Sources: Natural Resources Canada; International Energy Agency.


Canada exported approximately 32 Mt of coal in 2008, accounting for 47% of its coal output during the year. Canada is one of the leading seaborne hard coking coal suppliers to world markets and almost all of the coking coal produced in western Canada is destined for offshore markets. In 2008, Canada exported about 26.5 Mt of coking coal and about 5.7 Mt of steam coal. Coking coal exports remained at 2007 levels, but steam coal exports increased significantly from 4 Mt in 2007 to 5.7 Mt in 2008. The largest increase in steam coal exports was to South Korea, whose export volume doubled from 1 Mt in 2007 to 2 Mt in 2008. Steam coal exports to Brazil and China also increased by 500 000 t each.

About 80% of Canada’s seaborne coal exports were shipped through coal terminals in Vancouver while the rest was shipped through the Ridley Terminals in Prince Rupert in northern B.C.

Canada imported 20.6 Mt of coal in 2008. Of its total imports, 17.4 Mt was steam coal to be used in coal-fired power generation and 3.3 Mt was coking coal to be used in coke manufacturing. The United States supplied 17.9 Mt and the combined supply from Colombia, Venezuela, Russia, and Ukraine was 2.7 Mt.

Figure 3 - Canadian Coal Exports, 1998-2008

PRICES

Most of Canada’s coking coal was traded on an annual contract basis. The Canadian coking coal producers settled the 2008 coal year contract prices at US$300/t in early 2008 as the global coking price hit record highs. However, the average achieved price was C$210/t f.o.b. for the 2008 calendar year based on the Canadian customs recorded export prices.

There are several reasons why the average customs recorded price differs from the producers settled contract prices. The contract prices for a coal year start on April 1 of the current year and end on March 31 of the next year. The customs recorded price covers a calendar year and includes the value recorded in the first quarter of 2008 under 2007's contract price and the value recorded from the second to fourth quarter of 2008 under 2008's contract price. Some carry-over volume shipped in the new coal year is priced under the previous year’s contracts. Customer requests for blending different grades of coal may result in price variations that are different from settled contract prices.

It is reported that Canadian producers have settled their 2009 coal year contract prices at US$116-$129/t.

Canada increased its steam coal exports to 5.7 Mt in 2008. Preliminary customs recorded price data indicate that the average price for steam coal (all types) exports was C$95/t in 2008.

Canada imports both coking and thermal coal into Ontario, Nova Scotia, and New Brunswick. Most coking coal was imported into Ontario at an average imported coking coal price of C$107/t in 2008. Thermal coal was imported into Ontario, Nova Scotia, and New Brunswick at an average imported thermal coal price of C$57/t in 2008.

The majority of domestically sourced coal was from so-called “mine-mouth” operations, which involve extracting coal at mining sites and then trucking it to adjacent coal-fired power generation plants to be used for electricity production. The majority of mining and power generation operators are engaged in long-term contracts. Sherritt, the largest thermal coal producer in Canada, reported its average realized price at $14.55/t in 2008. However, this price is merely a reflection of the cost of mining coal and cannot be regarded as the prevailing market price.

COAL PROJECTS DEVELOPMENT

Two coal projects, the Herman mine project in B.C. and the Donkin mine project in Nova Scotia, received environmental assessment approval in 2008. There are still six previously proposed coal projects awaiting environmental assessment approval from the B.C. government: the Roman coal mine project (coking) by Peace River Coal Inc. (PRC), the Gething project (coking) by Dehua International Mines Group Inc., the Lodgepole mine project (coking) by Cline Mining Corp., the Horizon mine project (coking) by PRC, and the Mount Klappan project (anthracite) by Fortune Minerals Ltd.

PRC applied for an environmental assessment on its Roman coal mine in September 2007. The company proposed to develop a new open-pit coal mine with a production capacity of 2-4 Mt/y and a mine life expectancy of 15 years. The proposed mine is located 25 km south of Tumbler Ridge.

Dehua International Mines Group Inc. applied for an environmental assessment for its Gething coal mine project in November 2006. The project is located in northeastern B.C., 25 km northwest of Henderson’s Hope. The company proposes to construct an underground mine and a coal preparation plant. The mine is projected to produce 2 Mt/y of coking coal over a 40-year mine life.

Cline Mining submitted an application for an environmental assessment for its Lodgepole mine project in January 2006. The project is located in the Crowsnest Coalfield of southeastern B.C.; the company is planning to produce 2 Mt/y of coking coal for export.

The application for an environmental assessment for the Horizon mine project was originally submitted by Hillsborough Resources Limited in September 2005. The project is now under the Peace River Coal Limited Partnership, a partnership between Anglo Coal Canada (66%), Hillsborough (14%), and NEMI (20%). It is located near the closed Quintette and Bullmoose mines, but the Horizon area has never been mined. Part of the project also includes some lands previously explored as the Quintette property. Planned production for the project is 1.6 Mt/y of coking coal.

Fortune Minerals Limited applied for an environmental assessment for its Mount Klappan mine project in October 2004. The project is located 160 km northeast of Stewart in northern B.C. It includes an open-pit mine and a preparation plant with anticipated production of 1.5 Mt/y of anthracite coal.

In Alberta, Sherritt and the Ontario Teachers’ Pension Plan applied for an environmental assessment for a coal gasification project in early January 2007. The Dodds-Roundhill gasification project is located 80 km southeast of Edmonton, Alberta. The $1.5 billion project will be the first commercial application of coal gasification technology in Canada. The proposed project involves mining subbituminous coal and processing it into gas. Production will begin in 2011 and the project will reach its designed capacity of 320 million cubic feet per day of synthetic gas by 2012. Coal reserves and resources were estimated at 320 Mt in the project area and a 40-year mine life is expected.

ENVIRONMENT

The Government of Canada is committed to drastically reducing Canada's greenhouse gas emissions and air pollution. It has set a national target of an absolute 20% reduction in greenhouse gases from 2006 levels by 2020.

Projects under the $230 million ecoENERGY Technology Initiative announced in 2007 received funding in 2008. These public-private partnership projects focus on research, development, and the demonstration of clean energy technologies to accelerate the development and market-readiness of technology solutions such as carbon capture and storage.

The Canadian coal industry has continuously made progress with respect to environmental concerns such as the disturbance of land, acid mine drainage, greenhouse gas emissions, and the production of particulate associated with the burning of coal. Some coal mining companies have already been recognized for their successful environmental management programs. Multiple awards on mine reclamation and rehabilitation have been given to several coal mines across Canada.

EPCOR and Sherritt Coal received the 2009 Alberta Chamber of Resources’ Major Reclamation Award in February 2009 for their environmental work at the Genesee mine. EPCOR and Sherritt Coal reclaimed and rehabilitated 600 ha of land, turning it into productive farm land and wildlife habitat. The Alberta Ministry of Environment nominated the Genesee mine for the environmental work.

Fording River Operations received the British Columbia 2007 Mining and Sustainability Award for its ongoing commitment to the environment, safety, and the community. The B.C. government stated that “Fording River Operations is a leader in mining reclamation and is working hard to ensure that mining leaves a very small footprint on the land, protecting water and wildlife in the Elkford, Fernie and Sparwood communities.” Fording River Operations was a three-time winner of the British Columbia Jake McDonald Mine Reclamation Award for outstanding reclamation achievements in 2005, 1992, and 1979.

Cardinal River Operations received the 2006 Alberta Chamber of Resources Major Reclamation Award for its reclamation efforts in the Sphinx Creek mining area near Cadomin, involving the creation of a fish habitat in an end pit lake and re-vegetation of a wildlife habitat in the surrounding area. This award was independently nominated by the Alberta Ministry of Environment, which chooses a single project from the hundreds completed annually in Alberta that best represents the values and principles of sustainable land use and reclamation achievement.

New coal mines and mine expansions are required to have environmental assessments under provincial legislation and, in some cases, also require a federal environmental review under the Canadian Environmental Assessment Act. Environmental assessments ensure that mining activities, such as the removal of vegetation, relocation of overburden, construction of roads, storage of waste rocks, reclamation of previous mined areas, and mining operations, are done in a way that manages the negative effect on the environment.

OUTLOOK

In 2008, global coal demand and supply experienced an abnormal ride. At the beginning of the year, demand for both coking coal and thermal coal was so high that it drove prices to historical highs. The 2008 coking coal contracts settled at US$300/t or above on an f.o.b. basis. Demand pushed spot market prices for thermal coal to about US$150/t. The elevated prices reflect supply shortfalls in several major coal-producing countries such as China, Australia, and South Africa. However, in the last quarter of the year, the global financial crisis slowed economic growth and had a significant impact on the demand for many commodities, including coal. Global demand for coal collapsed and coking coal contract prices for 2009 settled in the range of US$120-$130/t. Thermal coal spot market prices declined to US$62/t in the first quarter of 2009. It is reported that Canadian producers have settled their 2009 coal year contract prices at US$116-$129/t.

When global steel mills operate at capacity, global demand for coking coal typically exceeds supply. However, as global steel demand is significantly reduced, global supply exceeds demand. Most of the global coking coal producers have cut their 2009 production. In Canada, Teck Coal has cut 2 Mt of production and other Canadian coking coal producers have also announced scaled-down production of about 3 Mt in 2009.

It is difficult to anticipate a quick recovery in the demand for coal in 2009 as governments in various major economies are still laying out stimulus plans. However, from a mid-range outlook, global demand for coking coal will continue to increase following the recovery and growth of the global economy. When considering the consumption and supply trends from 2003 to 2007, a continuous increase in demand for energy, particularly for coal, is seen. Global coal consumption increased from 5154 Mt in 2003 to 6485 Mt in 2007 at an average annual growth rate of 6.2%. Meanwhile, global coal production increased from 5127 Mt in 2003 to 6488 Mt in 2007 at an annual average growth rate of 5.7%. While global brown coal production remained stable at about 930 Mt/y, global hard coal production grew significantly from 4195 Mt in 2003 to 5543 Mt in 2007. The increases were driven largely by the continuous increasing demand for energy. Increased oil and gas prices and volatilities in energy availabilities in recent years have also contributed to increased coal use.

It is expected that global coal demand will have a significant impact on Canadian coal production, particularly coking coal production and exports. Based on the producers’ announcement, coal output in 2009 will likely drop to around 63-64 Mt. The decline will mainly be felt in coking coal production and export markets, which are expected to decrease by 5 Mt each. Steam coal production will remain stable as most of the steam coal is destined for domestic coal-fired electricity generation.

CANADIAN COAL COMPANIES’ WEB SITES

The Coal Association of Canada
www.coal.ca
Teck Resources Limited
www.teck.ca
Sherritt International Corporation
www.sherritt.com
Western Canadian Coal Corporation
www.westerncoal.com
Grande Cache Coal Corporation
www.gccoal.com
Hillsborough Resources Limited
www.hillsboroughresources.com

Notes: (1) For definitions and valuation of mineral production, shipments and trade, please refer to Chapter 58. (2) Information in this review was current as of March 31, 2009. (3) This and other reviews, including previous editions, are available on the Internet at www.nrcan-rncan.gc.ca/mms-smm/busi-indu/cmy-amc/com-eng.htm.

Note to Readers

The intent of this document is to provide general information and to elicit discussion. It is not intended as a reference, guide or suggestion to be used in trading, investment, or other commercial activities. The authors and Natural Resources Canada make no warranty of any kind with respect to the content and accept no liability, either incidental, consequential, financial or otherwise, arising from the use of this document.


TARIFFS
Item No. Description Canada United States  EU Japan
MFN GPT USA Canada Conventional Rate (1) WTO (2)
27.01 Coal; briquettes, ovoids and similar solid fuels manufactured from coal
2701.11 Coal, whether or not pulverized, but not agglomerated: anthracite Free Free Free Free Free Free
2701.12 Coal, whether or not pulverized, but not agglomerated: bituminous coal Free Free Free Free Free Free
2701.19 Coal, whether or not pulverized, but not agglomerated: other coal Free Free Free Free Free Free
2701.20 Briquettes, ovoids and similar solid fuels manufactured from coal Free Free Free Free Free 3.9%
27.02 Lignite, whether or not agglomerated, excluding jet
2702.10 Lignite, whether or not pulverized, but not agglomerated Free Free Free Free Free Free
2702.20 Agglomerated lignite Free Free Free Free Free Free
27.04 Coke and semi-coke of coal, of lignite or of peat, whether or not agglomerated; retort carbon Free Free Free Free Free Free-3.2%
27.05 Coal gas, water gas, producer gas and similar gases, other than petroleum gases and other gaseous hydrocarbons 6.5% Free Free Free Free Free
27.06 Tar distilled from lignite or from peat, and other mineral tars, whether or not dehydrated or partially distilled, including reconstituted tars Free Free Free Free Free Free
27.08 Pitch and pitch coke, obtained from coal tar or from other mineral tars
2708.10 Pitch Free Free Free Free Free Free
2708.20 Pitch coke Free Free Free Free Free Free
2712.90.90.20 Petroleum jelly; paraffin wax, micro-crystalline petroleum wax, slack wax, ozokerite, lignite wax, peat wax, other mineral waxes, and similar products obtained by synthesis or by other processes, whether or not coloured: other: other: lignite (montan) wax Free Free Free Free 2.2% 2.7%
28.03 Carbon (carbon blacks and other forms of carbon not elsewhere specified or included) Free Free Free Free Free 3.9%

Sources: Canadian Customs Tariff, effective January 2009, Canada Border Services Agency; Harmonized Tariff Schedule of the United States, 2009; Official Journal of the European Union (Tariff Information), September 19, 2008 edition; Customs Tariff Schedules of Japan, 2009.
(1) The customs duties applicable to imported goods originating in countries that are Contracting Parties to the General Agreement on Tariffs and Trade or with which the European Community has concluded agreements containing the most-favoured-nation tariff clause shall be the conventional duties shown in column 3 of the Schedule of Duties. (2) WTO rate is shown; lower tariff rates may apply circumstantially.


TABLE 1.
CANADA, COAL PRODUCTION AND TRADE, 2006-08
  2006 2007 2008 (p)
(tonnes) ($000) (tonnes) ($000) (tonnes) ($000)
SHIPMENTS
  Nova Scotia x x x x x x
New Brunswick x x x x x x
Saskatchewan 10 441 000 x 10 541 000 x 9 921 000 x
Alberta 32 290 000 x 32 718 000 x 31 535 000 x
British Columbia 23 057 000 2 105 270 25 725 000 1 948 999 26 590 000 3 043 413
Total 65 895 200 2 886 182 69 131 000 2 735 202 68 106 000 4 292 333
EXPORTS
2701.11 Anthracite 1 790 339 8 166 254 101 13
2701.12.10 Bituminous coal, metallurgical
Japan 7 224 305 906 079 8 429 625 858 237 8 608 517 1 988 494
South Korea 4 441 137 500 992 5 099 151 490 714 5 078 490 1 122 676
Brazil 1 584 246 203 835 1 448 903 156 946 1 445 768 300 715
Germany 1 679 876 232 599 1 732 687 185 953 1 381 100 290 744
Taiwan 1 220 155 158 019 1 128 743 118 102 1 146 627 249 985
United States 1 460 585 218 251 1 468 551 172 372 1 567 284 221 335
Italy 1 177 213 138 897 1 010 963 95 613 1 080 720 212 315
Turkey 1 080 129 136 984 957 290 97 948 955 554 196 896
United Kingdom 1 417 776 138 957 1 437 082 111 139 1 122 309 152 053
Mexico 274 422 33 038 230 179 21 466 694 832 140 787
Netherlands 993 656 132 474 1 046 723 112 585 598 786 139 745
China 209 899 27 300 139 926 13 201 405 639 122 689
Finland 493 669 63 338 345 345 35 545 426 417 111 954
France 371 839 49 752 591 581 66 517 569 303 88 553
Chile 373 064 38 451 343 929 34 736 366 304 81 859
Spain 174 657 22 766 225 929 31 027 234 565 42 214
Pakistan 54 127 6 908 100 401 10 873 105 965 33 044
Other countries 407 859 45 114 831 676 78 376 707 238 86 758
Total 24 638 614 3 053 754 26 568 684 2 691 350 26 495 418 5 582 816
2701.12.90 Bituminous coal, other
Japan 1 373 511 71 268 2 094 483 107 961 2 000 200 229 968
South Korea 533 695 24 884 907 624 57 860 1 657 078 139 881
Israel 172 459 9 939 328 191 24 438
Brazil 73 415 20 571
Chile 348 209 16 236 357 924 17 726 45 062 8 245
Mexico 75 000 7 963
United States 229 324 14 847 152 774 7 451 139 119 7 609
Guatemala 96 776 5 104 70 000 3 217
Other countries 201 507 10 440 54 672 3 818
Total 2 783 022 142 779 3 739 936 204 755 4 388 065 441 892
2701.19 Other coal
Japan 78 136 10 203 24 101 1 280 541 342 48 068
Brazil 95 951 7 497 378 433 20 814
China 272 22 300 10 255 504 20 032
Taiwan 1 160 188 1 570 304 7 646 507
Italy 839 64 1 855 115 3 368 223
United States 58 801 3 263 55 864 3 531 637 174
Other countries 2 051 190 74 492 6 675 5 156 353
Total 141 259 13 930 254 133 19 412 1 192 086 90 171
2701.20 Briquettes, ovoids and similar solid fuels manufactured from coal
Saint Pierre and Miquelon 1 . . . 1 . . .
2702.10 Lignite whether or not pulverized, but not agglomerated
United States 80 468 7 207 105 792 10 008 119 045 12 769
Other countries 261 20 1 681 157 190 13
Total 80 729 7 227 107 473 10 165 119 235 12 782
2702.20 Agglomerated lignite 28 902 3 218 1 632 181 243 53
2705.00 Coal gas, water gas, producer gas and similar gases, other than petroleum gases and other gaseous hydrocarbons
Jamaica 2 1
2706.00 Tar distilled from coal, from lignite or from peat, and other mineral tars 2 775 695 64 35 55 46
2708.10 Pitch 58 348 22 892 54 535 27 425 54 353 34 709
2708.20 Pitch coke
United States 43 482 16 534 15 985 7 664 66 49
2803.00 Carbon (carbon blacks and other forms of carbon, n.e.s.)
United States 98 507 108 963 108 782 112 573 97 238 132 857
Germany 4 018 6 075 3 829 6 403 4 250 8 057
Belgium 2 669 4 295 5 356 7 517 4 608 7 812
Japan 2 192 3 376 2 277 3 432 2 434 4 766
South Korea 1 598 2 494 1 971 2 892 2 700 4 472
Italy 1 770 3 146 2 233 4 043 2 128 4 235
France 2 281 3 752 2 064 3 081 1 920 3 425
Taiwan 4 303 5 105 2 708 3 483 2 148 3 298
China 1 940 2 745 3 634 4 079 1 913 2 892
United Kingdom 1 148 2 064 1 988 2 684 1 539 2 010
Sweden 550 1 125 530 1 316 844 1 405
Spain 1 268 2 045 722 1 176 668 1 284
India 392 565 550 818 568 1 030
Brazil 400 648 529 785 535 1 017
Thailand 558 837 577 823 546 914
Austria 380 678 540 995 424 864
Other countries 1 030 1 811 1 514 1 969 2 395 3 665
Total 125 004 149 724 139 804 158 069 126 858 184 003
Total exports 27 903 926 3 411 092 30 890 412 3 119 310 32 376 483 6 346 535
IMPORTS
2701.11 Anthracite
Russia 263 703 22 217 279 370 26 770 226 442 49 631
United States 230 506 12 172 140 107 13 037 239 690 26 578
Ukraine 63 433 8 879 18 812 4 341
United Kingdom 121 13 56 6 5 165 1 063
China 16 113 1 755 664 166 490 128
Other countries . . . . . 3 . . . 116 17
Total 510 443 36 157 483 633 48 858 490 715 81 758
2701.12.00.11, 2701.12.00.12 Bituminous coal, metallurgical
United States 4 131 992 390 298 3 321 852 285 900 3 285 565 351 584
Other countries 120 767 17 138 23 543 2 782
Total 4 252 759 407 436 3 345 395 288 682 3 285 565 351 584
2701.12.00.91 Bituminous coal, other, high volatile
United States 5 426 262 380 798 4 762 353 339 926 5 480 402 371 251
Colombia 980 683 69 046 950 798 60 671 1 445 258 135 794
Venezuela 27 502 1 174 66 651 7 164
Other countries 72 991 4 806 89 6
Total 6 507 438 455 824 5 713 151 400 597 6 992 400 514 215
2701.12.00.92 Bituminous coal, other, low volatile
United States 530 162 36 205 236 883 13 537 316 364 27 975
Other countries 572 035 41 831 642 516 44 669 19 7
Total 1 102 197 78 036 879 399 58 206 316 383 27 982
2701.19 Other coal
United States 7 666 404 263 201 7 352 525 246 653 8 544 216 298 900
Colombia 753 878 49 263 652 338 43 387 1 005 134 60 241
United Kingdom 8 092 445 26 947 1 823 8 012 504
Other countries 65 396 3 434 80 13 19 . . .
Total 8 493 770 316 343 8 031 890 291 876 9 557 381 359 645
2701.20 Briquettes, ovoids and similar solid fuels manufactured from coal 599 91 948 104 590 69
2702.10 Lignite whether or not pulverized, but not agglomerated 296 32 443 45 985 100
2702.20 Agglomerated lignite
United States . . . . . . . . . . 150 49
2705.00 Coal gas, water gas, producer gas and similar gases, other than petroleum gases and other gaseous hydrocarbons 99 74 41 31 12 9
2706.00.00.00 Tar distilled from coal, from lignite or from peat, and other mineral tars, whether or not dehydrated or partially distilled, including reconstituted tars 4 382 741
2708.10.00.00 Pitch 31 783 17 859
2708.20 Pitch coke 116 460 3 13 11 056 11 444
2712.90.90.20 Lignite (montan) wax 311 548 113 249 1 4
2803.00.00.10 Carbon, lampblack 3 136 3 391 10 640 9 332 9 852 11 602
2803.00.00.90 Carbon, other 112 164 117 136 102 205 98 295 74 517 91 845
Total imports 20 983 328 1 415 528 18 567 861 1 196 288 20 775 772 1 468 906

Sources: Natural Resources Canada; Statistics Canada.
–  Nil; . . Not available; . . . Amount too small to be expressed; (p) Preliminary; x Confidential.
Note: Numbers may not add to totals due to rounding.


TABLE 2.
CANADIAN COKE TRADE, 2006-08
  2006 2007 2008 (p)
(tonnes) ($000) (tonnes) ($000) (tonnes) ($000)
EXPORTS
2704.00 Coke and semi-coke of coal, of lignite or of peat, whether or not agglomerated; retort carbon
United States 78 540 20 402 178 019 43 841 36 321 18 858
Cuba 60 17 818 183
Other countries 24 2 5 2 545 103
Total 78 624 20 421 178 024 43 843 37 684 19 144
IMPORTS
2704.00 Coke and semi-coke of coal, of lignite or of peat, whether or not agglomerated; retort carbon
China 133 012 24 143 139 007 46 890 496 635 288 381
United States 644 191 72 875 486 879 60 120 705 250 97 242
Poland 184 947 95 488
Colombia 60 201 13 887 117 793 31 927 17 152 6 518
Germany 1 996 800 1 774 737 1 666 599
Other countries 2 1 11 549 2 154 271 16
Total 839 402 111 706 757 002 141 828 1 405 921 488 244

Sources: Natural Resources Canada; Statistics Canada.
– Nil; . . . Amount too small to be expressed; (p) Preliminary.
Note: Numbers may not add to totals due to rounding.


TABLE 3.
COAL PRODUCTION BY TYPE AND PROVINCE, 1998-2008
  Alberta British Columbia New Brunswick Nova Scotia Saskatchewan Canada
Bituminous Subbituminous Total Bituminous Bituminous Bituminous Lignite Total
(000 tonnes)
1998 10 871 25 285 36 156 24 866 272 2 118 11 790 75 204
1999 9 903 24 229 34 203 24 844 251 1 537 11 659 75 204
2000 6 728 24 168 30 896 25 681 229 1 165 11 190 69 163
2001 5 971 24 940 30 911 27 007 165 881 11 390 70 355
2002 4 957 25 528 30 485 24 397 175 x (a) 11 365 66 608
2003 3 349 24 880 28 229 23 073 141 x (a) 10 665 62 139
2004 2 138 25 147 27 285 27 313 x x 11 586 66 307
2005 3 894 25 742 29 636 26 718 x x 11 017 67 557
2006 6 140 26 153 32 293 23 161 x x 10 440 66 002
2007 (r) 6 721 26 011 32 732 25 941 x x 10 541 69 362
2008 (p) 5 535 26 000 31 535 26 590 x x 9 921 68 106

Sources: Natural Resources Canada; Statistics Canada.
(p) Preliminary; (r) Revised; x Confidential.
(a) Saskatchewan Bureau of Statistics, Monthly Statistical Review.


TABLE 4.
CANADIAN COAL CONSUMPTION, 1998-2008
  Electricity Steel Industry Producer
Use
Non-
Energy
Total
(000 tonnes)
1998 52 455 4 119 1 713 105 430 58 821
1999 52 037 4 360 1 745 179 382 58 703
2000 55 824 4 265 1 959 160 469 62 676
2001 55 537 4 255 1 870 335 396 62 393
2002 55 612 4 201 1 810 216 413 62 252
2003 55 213 4 174 1 931 284 457 62 059
2004 51 241 4 371 2 126 264 489 58 491
2005 52 466 4 289 2 036 72 691 59 554
2006 50 775 4 325 2 216 24 600 57 940
2007 (r) 53 149 4 303 2 364 43 690 60 549
2008 (e) 53 000 4 000 2 200 40 690 60 000

Sources: Natural Resources Canada, Statistics Canada.
(e) Estimated; (r) Revised.


TABLE 5.
CANADIAN COAL TRADE, HISTORICAL, 1998-2008
  Metallurgical (1) Thermal (2) Total Canada
(000 t) ($000) (000 t) ($000) (000 t) ($000)
EXPORTS
1998 27 972 2 060 927 5 213 301 083 33 185 2 362 010
1999 30 289 1 746 020 3 662 152 136 33 951 1 898 156
2000 30 305 1 632 441 2 196 89 358 32 501 1 721 799
2001 26 914 1 715 603 2 782 118 785 29 696 1 834 388
2002 22 964 1 582 580 2 222 108 642 25 186 1 691 222
2003 23 716 1 480 528 1 389 77 651 25 105 1 558 179
2004 23 847 1 600 072 2 013 121 322 25 860 1 721 394
2005 26 710 3 116 245 1 492 99 320 28 202 3 215 565
2006 (r) 24 639 3 053 752 3 036 167 493 27 675 3 221 245
2007 (r) 26 569 2 691 347 4 111 234 767 30 680 2 926 114
2008 (p) 26 495 5 582 817 5 700 544 909 32 195 6 127 726
IMPORTS
1998 4 536 258 201 15 318 671 063 19 854 929 264
1999 3 857 204 018 16 103 717 592 19 960 921 610
2000 3 493 183 214 15 932 755 576 19 425 938 790
2001 3 987 229 475 15 443 799 304 19 430 1 028 779
2002 4 315 283 037 18 321 809 983 22 636 1 093 020
2003 3 294 180 633 19 422 718 240 22 716 898 873
2004 3 429 242 848 15 585 742 716 19 014 985 564
2005 4 199 366 800 16 885 899 321 21 084 1 266 121
2006 4 253 407 436 16 615 886 486 20 868 1 293 922
2007 (r) 3 345 288 682 15 109 799 687 18 454 1 088 369
2008 (p) 3 286 351 584 17 355 981 881 20 641 1 333 465

Sources: Natural Resources Canada; Statistics Canada.
. . Not available.
(1) Metallurgical includes Harmonized System code numbers 2701.12.00.11 and 2701.12.00.12 for imports and 2701.12 and 2701.12.10 for exports. (2) Steam includes Harmonized System code numbers 2701.11, 2701.19, 2701.12.00.91, 2701.12.00.92, 2701.12.00.99, 2701.20, 2702.10 and 2702.20 for imports and 2701.11, 2701.12.90, 2701.19, 2701.20, 2702.10 and 2702.20 for exports.
Note: Includes domestic exports only.


TABLE 6.
COAL MINES IN CANADA, 2008
Coal Mine Owner Operator Location Production Capacity
(Mt/y)
Type of Coal
Bienfait Sherritt International Corporation Sherritt Coal Prairie Operations Bienfait, Sask. 2.8 Lignite
Boundary Dam Sherritt International Corporation Sherritt Coal Prairie Operations Estevan, Sask. 6.5 Lignite
Brule Western Canadian Coal Corp. Western Canadian Coal Corp. Chetwynd, B.C. 2 PCI
Cardinal River (Cheviot) Teck Resources Limited Teck Coal Ltd. Hinton, Alta. Mine 2.0  
Coal Mountain Teck Resources Limited Teck Coal Ltd. Sparwood, B.C. Mine 2.7  
Coal Valley Sherritt International Corp. Sherritt Coal Mountain Operations Edson, Alta. 4.0 Bituminous steam
Elkview Teck Resources Limited Teck Coal Ltd. Sparwood, B.C. Mine 5.6  
Fording River Teck Resources Limited Teck Coal Ltd. Elkford, B.C. Mine 8.3  
Genesee Sherritt International Corporation and EPCOR Sherritt Coal Prairie Operations Warburg, Alta. 5.6 Subbituminous
Grande Cache Grande Cache Coal Corp. Grande Cache Coal Corp. Grande Cache, Alta. 2 Bituminous coking
Greenhills Teck Resources Limited Teck Coal Ltd. Elkford, B.C. Mine 4.5  
Highvale TransAlta Corp. Sherritt Coal Prairie Operations Seba Beach, Alta. 13 Subbituminous
Line Creek Teck Resources Limited Teck Coal Ltd. Sparwood, B.C. Mine 2.2  
Paintearth Sherritt International Corporation Sherritt Coal Prairie Operations Forestburg, Alta. 3.5 Subbituminous
Poplar River Sherritt International Corporation Sherritt Coal Prairie Operations Coronach, Sask. 4 Lignite
Quinsam Hillsborough Resources Ltd. Hillsborough Resources Ltd. Campbell River, B.C. 0.5 Bituminous steam
Salmon Harbour NB Power NB Power Minto, N.B.   Bituminous steam
Sheerness Sherritt International Corporation Sherritt Coal Prairie Operations Hanna, Alta. 4 Subbituminous
Stellarton Pioneer Coal Ltd. Pioneer Coal Ltd. Stellarton, N.S.   Bituminous steam
Trend Anglo Coal Canada, Northern Energy and Mining Inc., and Hillsborough Resources Ltd. Peace River Coal Inc. Tumbler Ridge, B.C. 2 Bituminous coking, PCI
Whitewood TransAlta Corp. Sherritt Coal Prairie Operations Seba Beach, Alta. 2.8 Subbituminous
Wolverine Western Canadian Coal Corp. Western Canadian Coal Corp. Tumbler Ridge, B.C. 3 Bituminous coking, PCI

Source: Natural Resources Canada.