Report Shows Importance of Coal to British Columbia
A PricewaterhouseCoopers economic report finds British Columbia received substantial benefits from coal production. 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 British Columbia.
The report notes the majority of coal produced in British Columbia is metallurgical (steel-making) coal, an essential material for modern living. Of the 10 producing coal mines in the province, nine produce metallurgical coal and one produces thermal coal. Canada is the third-largest exporter of metallurgical coal in the world (after Australia and the United States) shipping most of the 27 million tons of metallurgical and thermal coal produced every year in British Columbia.
“PwC’s research showed coal exports from British Columbia totaled $7.1 billion in 2011, which was about 22 percent of the total dollar value of exports from the province,” says Janice Plumstead, director, Economics and Statistics at PwC, and the author of the report. “Coal shipments were up by 10 percent to 24.5 million tons in 2011 compared to 2010, and higher coal prices pushed export revenues up by an impressive 35 percent.”
To learn more, download the report.
Illustration courtesy of Coal Association of Canada.