A western Canadian coal producer's viewpoint

"The coal industry is an important part of Canada's economy - as an energy source, employer, and generator of export earnings. Coal comprises 71% of our fossil energy and with rapidly advancing handling and burning technology will clearly play a major role in our national energy mix, eventually as synthetic gases and liquids.International coal markets are very competitive and Canada is disadvantaged by long rail hauls to port, and a heavy tax burden. However, high mine productivity has allowed us to increase our markets.Currently, domestic markets are dominated by coal use for electrical generation, a market with significant growth opportunities.Strong growth is expected in export thermal markets, while metallurgical coal demand is projected to show little or no growth in the medium term. IntroductionThe coal industry is a vital part of the Canadian energy scene .• Coal supplies 17% of Canada's energy.• On a per capita basis, Albertans use more energy in the form of coal than they do oil and gas.• The value of Canada's exports of coal last year was equal in value to all the cars we imported from Japan.• Coal is our largest single export to our seco nd largest trading partner, Japan.• The value of coal produced in Canada exceeds the value of any other single mineral produced in thi s country.• In Alberta, the safety record for coal mines is on a par with that of department store clerks.• The coal industry employs about 25% of the total number of people employed in all metal mines in Canada, directly and indirectly accounting for about 50 000 jobs.Coal comprises 71% of Canada' s hydrocarbon energy resources on a crude oil equivalent basis . This is more than double our oil sands resource and dwarfs our conventional crude oil and gas resources (Fig. I). In the short term, coal as a solid fuel plays a significant part in the Canadian energy scene. In the longer term, coal, in the form of electricity and eventually liquids and gases, has a tremendous role to play. In 1986, Canada produced 57.8 million tonnes, slightly down from the record high of 60.8 million tonnes in 1985. Our exports in 1986 were 26.0 million tonnes, a growth of 53% in three years."