According to PwC report, in 2011, coal industry generated an estimated $3.2-billion in provincial GDP
VANCOUVER—The Coal Association of Canada is lauding a new PricewaterhouseCoopers (PwC) report showing coal makes a “significant” contribution to the British Columbian economy.
According to the report, in 2011, the coal industry generated an estimated $3.2-billion in provincial GDP and approximately $715.2-million in tax revenue for all levels of government, including $399-million in tax revenue generated by economic activity and $316.2-million in mineral tax payments to B.C.
“Coal is essential to British Columbia as a catalyst for economic development, international trade, investment in regional communities and the employment of thousands of British Columbians,” CAC president Ann Marie Hann said in a statement.
“With 12-billion tonnes of potentially mineable resources, coal can help ensure that B.C.’s economy remains strong for years to come.”
The report notes that the majority of coal produced in the west coast province is metallurgical, which the association called “an essential material for modern living.”
Of the 10 producing coal mines in the province, nine produce metallurgical coal and one produces thermal coal, according to the CAC.
Canada is the third largest exporter of metallurgical coal in the world, shipping most of the 27-million tonnes of metallurgical and thermal coal produced every year in B.C.
“PwC’s research showed coal exports from British Columbia totaled $7.1-billion in 2011, which was about 22 per cent of the total dollar value of exports from the province,” report author Janice Plumstead said.
“Coal shipments were up by 10 per cent to 24.5-million tonnes in 2011 compared to 2010, and higher coal prices pushed export revenues up by an impressive 35 per cent.”
The coal industry also makes an important contribution to provincial employment, according to the CAC, supporting over 26,000 jobs in 2011.
The B.C. report comes on the heels of a national report produced by PwC called Economic impact analysis of the coal mining industry in Canada, released in late 2012.
PwC surveyed coal companies across Canada to determine the scope of their mining activities as well as their operating and capital expenditures, salaries and employment information, research and development spending and coal shipments.
This information, along with data from Natural Resources Canada and Statistics Canada, resulted in a unique picture of the coal industry’s contribution to the Canadian and B.C. economies.