Canada’s coal industry contributed an estimated $5.2 billion to Canada’s GDP last year, according to PwC’s just- released analysis of the industry.
“Coal has always played an important role in contributing to Canada’s economic strength,” said Coal Association of Canada president Ann Marie Hann. “This report helps to confirm the profound impacts the coal industry has on our economy and our communities through employment, taxes and royalties to governments and regional expenditures.”
Janice Plumstead, PwC director of economics and statistics and study leader, said the study didn’t break down coal’s contribution to B.C.’s GDP. But she said as Canada’s second-largest coal jurisdiction, B.C. is receiving significant revenue from the industry.
“B.C. is the largest exporter of coal [of Canadian provinces].”
Plumstead added that between 2001 and 2011, PwC determined that Canada’s coal exports jumped to approximately $8 billion from $1.8 billion. PwC found that coal mining exports grew slightly faster than other mining exports for that decade. They rose an average of 15.9% annually compared with total mining exports, which increased an average of 15.5%.
The report found that more than 42,000 Canadians are employed directly and indirectly through the industry, and that average industry salaries are more than double the average wage. It also found that, since 2004, the percentage of coal-mining jobs in Canada’s mining industry has increased, and now accounts for 14% of the broader mining industry.
PwC reported that the industry is creating sizable benefits for government through the more than $300 million in annual royalties remitted.
PwC determined that, as of 2010, B.C. was Canada’s second-largest coal-producing jurisdiction, producing 27 million tonnes compared with Alberta’s 30 million tonnes. It found that most of the coal produced in B.C. is metallurgical and exported to Asia for steelmaking. In contrast, it found that production in Alberta and Saskatchewan is largely thermal coal used domestically for generating electricity.
In 2011, the Coal Association of Canada commissioned PwC to quantify coal mining’s contribution to the national economy. The report involved surveying coal companies across Canada to determine the scope of their mining activities, expenditures, salaries and employment information, research and development spending and coal shipments.
