Canada Coal Industry
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The Canada coal industry accounts for approximately 10 billion tons of coal reserves. The nation is the fourth largest coal exporter, after Australia, the US and South Africa. It exports both thermal and metallurgical coal. The Canada coal industry comprises of over 24 functional coal mines, producing about 70 million tons in 2007 (equivalent to 1.17% of the world production). The coal industry of Canada is monitored by the Coal Association of Canada; which is headquarterws in Calgary (Alberta).
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Canada Coal Industry: History
The Canadian coal industry can be traced back to 1639, with the opening of the first mine at Grand Lake. French soldiers began mining at Cow Bay (Cape Breton) in 1720, which later began supplying coal to various American ports. By 1870, the region operated 21 mines.
The production of coal in the 1950s was largely carried out for domestic heating. The usage of coal for industrial purposes was replaced by petroleum products. The industry mushroomed in the 1960’s, when coal producers entered long-term contracts with the Japanese to supply coal.
Canada Coal Industry: Major Players
Major export destinations of the Canadian coal industry (according to reports by the government of Canada, 2008) include:
CountryExport (in million tons)Japan10.3South Korea6.2The US1.8
The chief coal producing regions and companies in Canada are:
- Alberta: Alberta Coal Valley Mine, Highvale Mine, Whitewood Mine and Genesee Operations
- British Colombia: British Columbia Bullmoose Mine, Elkview Mine and Coal Mountain.
- Saskatchewan: Saskatchewan Power Corp, Poplar River Mine, Boundary Dam Mine and Bienfait Mine.
Canada Coal Industry: Issues
Some major constraints associated withn Canada’s coal industry include:
- Environmental issues: processing of coal (especially thermal coal) emits harmful gases and elements, such as carbon dioxide and mercury.
- Infrastructure constraints: lack of efficient and safe methods of coal extraction creates a drag on the industry.
- Government regulations: on production, distribution and work standards.
- Outdated technology: the industry is largely labor intensive. Hence, introduction of new technology is resisted to a huge degree.
The coal industry plays a vital role in the Canadian economy. It contributes approximately $5 billion to the nation’s GDP and provides over 56,000 jobs. The industry also meets one-seventh of Canada’s primary fuel and energy needs, primarily for generating electricity.



