BC coal for India

An Indian delegation visited BC to meet with Premier Christy Clark last week.

The Indian government forecasts that by 2017, the country will need additional 47 million tonnes of metallurgical coal. Albeit BC’s annual production being 24 million tonnes, BC sits on an estimated coal reserve of 13 billion tonnes with several new metallurgical coal mines in the environmental assessment process.

Overseas coal demand, especially in India, Japan, China and Korea are eyeing into BC for the close proximity and political/geographical stability and technology.

Although there were no deals in the meeting last week, Indian maintenance of good relationship with the coal industry in BC and the increased coal demand from India imply increased coal export from BC in the future. 

With protests regarding additional coal exporting capacity occurring by various environmental groups and residents of the affected area, it is a hurdle which BC needs to jump over.



Current trends in Canadian coal

Canada is phasing out coal nation-wide due to its ‘dirty’ characteristics and moving on to LNG for electricity generation. Currently coal accounts for approximately 13~14% of Canadian power generation and hydroelectricity remain dominant with around 65%.

last of the coal-fired generation plants are expected to shut down (with the extension of life) around the 2030s, resulting in the attempt to sell coal assets by numerous mining companies to players whose coal demand is still strong such as China to dispose of the soon-to-be unnecessary coal assets.

Natural gas currently generates around 6-7% of total energy Canadians use and is projected to increase. Supply-wise, there is no worry as many natural gas deposits are being developed.