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 Ann Marie Hann, president of the Coal Association of Canada. “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.”
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 industry 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 B.C. was Canada’s second-largest coal-producing jurisdiction as of 2010, producing 27 million tonnes to Alberta’s 30 million tonnes. It found that the majority of coal produced in B.C. is metallurgical and exported to Asia for steelmaking. In contrast, it found that Alberta’s and Saskatchewan’s production is largely thermal coal used domestically for electricity generation.
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.
