| Current Coal Sector Contribution |
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| The coal sector contributes significantly to
British Columbia's economy. Total sales in 1999 were C$1.457 billion (fob ship and $0.910
billion ex-minesite) from eight (8) mining operations which employed 3,200 people. |
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| Historical Trends from 1980 to 1999 |
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| The long term trends in the coal sector,
over the past two decades of 1980 to 1999, are illustrated in the following graphs. During
this period total coal sales (metallurgical and thermal) have increased in current dollar
terms and shown a very slight decline in real or constant dollars (Figure 1 includes
current and constant 1980 C$ using a Canadian CPI deflator.). |
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Figure 1. |
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| The relatively strong current-dollar growth
trend over the past two decades has been a direct result of increases in production, since
both current and real/constant-dollar prices declined over the same period. The upward
trend in production and downward trend in current prices is shown in Figure 2. During
1999, international coal contracts were negotiated at significantly lower prices with more
efficient, lower-cost producers being rewarded with larger tonnage. |
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Figure 2. |
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| Fluctuating employment in the coal sector
over the past two decades (see "bars" in Figure 3) is partly explained by
changes in production volumes and partly by major productivity gains. As the North East
coal mines developed in the early 1980's, employment grew to between 5,000 and 6,000
people and remained there until 1991. After 1991, strikes and bankruptcies in the South
East coal mines initiated a major drop in employment, to between 3,000 and 4,000 people
through to 1999. Even as mining operations were
restored and expanded after 1991, employment levels never again exceeded 4,000 because of
major productivity gains through the substitution of capital for labour and through
implemention of better mining systems. The coal sector is currently an important employer
in British Columbia. Currently 3,200 people work in direct mining operations today with an
additional 6,400 indirect and induced employees who also derive their livelihood from the
coal sector. It is important for British Columbia producers to maintain this continuing
trend of productivity gains (see the "line" in Figure 3) for their predominantly
metallurgical coal to compete internationally. The industry is continuously challenged by
low cost supplies from Australia and South Africa, and by recent price pressures from the
restructuring of coal contracts to reward low delivery-cost producers. |
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Figure 3. |
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For questions or more information on statistics
and mineral economy in British Columbia contact Minerals, Oil and Gas Branch or use the toll free number (BC Residents
only).
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