Bringing Coal Back

[Torture]

Thought this was an excellent, in depth read on the current changes to Coal regulations in Alberta with the pros, cons, history, and comparison to BC's policies laid out. Some commentary on the closure of parks, increased lobbying from the coal industry, and of course, the possibility of well paying jobs in poorer areas of the province. Thought this was wide-ranging and important enough that it deserved a new thread rather than piling on in the AB politics thread.

Stand atop Mount Erickson in southeastern British Columbia and it feels like you can see forever.

Look north, and peer along the jagged ridgelines of the High Rock Range, which stretch to the horizon. To the south, snow-capped peaks in the Crowsnest Range cut into the blue sky, rising above dense green forests. Across the valley to the west, row upon row of sawtoothed summits fade into the distance, melding into mesmerizing array.

And then you look down.

Down the austere slope, in the valley below, is a massive, open-pit coal mine.

The word “mine” evokes images of soot-smeared workers in underground tunnels, but this is actually a mountain in the process of being deconstructed. A geologic wound. Its slopes are blackened and tiered, abuzz with enormous yellow trucks that look tiny from this distance, kicking up grey plumes of dust as they haul the pulverized mountain away, load by load.

This is one of five coal mines owned by Teck Resources in B.C’s Elk Valley. Together, these operations produce the bulk of the mining revenue in a province that has made coal its top export.

Now, turn on your heel and look to the east: past the Continental Divide, over the invisible border into Alberta’s Crowsnest Pass. There’s the distinctive, rounded peak of Crowsnest Mountain and, just beyond that, the Livingstone Range. The same, high-quality coal is locked away in these mountains, yet there are no operational mines here. The last one closed in 1983.

The difference dates back to 1976. That’s when the Progressive Conservative government of premier Peter Lougheed adopted its Coal Development Policy, which restricted open-pit mines across most of the province's Rocky Mountains and Foothills. For the last 44 years, this policy protected some of Alberta's most pristine and iconic landscapes. It also chased mining companies into neighbouring B.C., limiting potential livelihoods for thousands of Albertans.

Now, this long-standing tradeoff between environmental protection and economic opportunity is poised to change.

Grab a cup of coffee, this is a long read.

https://newsinteractives.cbc.ca/long...ging-coal-back

[Locke]

Bringing Coal back at the same time as easing restrictions on hiring 13 and 14 year-olds.

Curious timing...

[missdpuck]

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[Brewmaster]

It seems to me that this would be another way to diversify the economy away from oil and gas which is what many have been calling for. While we don't like the reality of it, the steel we use in almost everything is made using metallurgic coal and there is currently no replacement, unlike thermal coal used for electricity.

If capital is willing to invest in Alberta to develop our resources, and do it under our strict environmental regulations, then I think we need to encourage it. The article paints Teck Resources in a negative light, but they are a leading Canadian company and have a strong record of ESG performance. We should be encouraging these types of companies to invest here and capitalizing on the benefits that go along with having natural resources, before they are no longer of value. I'm not saying we should strip mine every mountain but waiting for the next Facebook, Telsa or Amazon to set up offices in Calgary is not going to get us out of this economic black hole.

But somehow I suspect these projects will never happen because of how resource development has gone in Canada over the last decade. The CBC is already jumping on this and we have all seen how environmentalists can stifle projects using indigenous groups and court challenges. Our society doesn't seem willing to accept that our competitive advantage is our resources, not our moral superiority.

[JJolg]

Its a short term solution that will have a long term impact, unfortunately the eastern slopes wont be the same. Its funny just 2 years after cracking down on OHV use in the eastern slopes they start cutting up the mountain sides for core sample drilling.

[Torture]

Honestly it seems like there is a fine balance to be struck here. Should there be a mine around Coleman/pincher and potentially elsewhere? Sounds like yes. Should it be open season on the Eastern slopes of the Rockies? Most Albertans would probably say no.

[bizaro86]

Originally Posted by Brewmaster

While we don't like the reality of it, the steel we use in almost everything is made using metallurgic coal and there is currently no replacement, unlike thermal coal used for electricity.

I would put myself in the camp of "in favor of thoughtful development of Alberta's met coal resources." This is actually a good time to do so, because Teck is moving their exports away from the Westshore terminal in BC to a terminal they co-own with Canpotex. That means Westshore is highly motivated to find new sources of export coal - I suspect low terminal costs could be negotiated.

But the quoted portion about no alternatives to met coal just isn't true. Certainly in N. America steel production has been moving from blast furnaces (which use met coal) to electric arc furnaces (which don't). The Chinese haven't made this switch yet.

The reason for that (imo) is largely historical. EAF production has mostly used scrap steel in the past. Our mature economies generate a lot of scrap compared to how much steel we produce. Eg the number of new cars isnt much more than the number of 20 year old cars getting scrapped. Growth in China means they are making way more cars now than in the past, so not much scrap as a ratio to new steel.

But electric arc furnaces can also use direct reduced iron pellets. That hasn't happened much in the past, but its technologically mature, it's just an economic question. And low gas prices and high met coal prices make the production of DRI pellets cheaper (DRI is the same iron ore reduced to iron using nat gas), and electric arc furnaces use tons of electricity which is also made cheaper by cheap natural gas.

So while China has built tons of blast furnaces (that will presumably remain operating for quite some time) there absolutely is a viable substitute for metallurgical coal.

[Ozy_Flame]

I'm not against it if there is a market, but I hope it's done responsibly. That includes following ultra strict environmental regulations, not selling crown land or closing provincial parks that would otherwise be used by Albertan residents. I also think this has to be done with a much better, more comprehensive and forward-thinking diversification plan.