TORONTO (miningweekly.com) – A new report from PricewaterhouseCoopers (PwC) has confirmed and measured the significant contribution that coal makes to the British Columbia (BC) economy through employment, tax revenue and contribution to provincial gross domestic product (GDP).

In 2011, the coal industry generated about $3.2-billion in provincial GDP and about $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 BC.

"Coal is essential to British Columbia as a catalyst for economic development, international trade, investment in regional communities and the employment of thousands of British Columbians. With 12-billion tons of potentially mineable resources, coal can help ensure that BC's economy remains strong for years to come,” Coal Association of Canada president Ann Marie Hann said.

The report, ‘Economic impact analysis of the coal mining industry in British Columbia’, noted that the majority of coal produced in British Columbia was metallurgical or steel-making coal, a critical material for modern living.

Of the ten producing coal mines in the province, nine produced metallurgical coal and one produced thermal coal.

Canada is the third-largest exporter of metallurgical coal in the world (after Australia and the US), shipping most of the 27-million tons of metallurgical and thermal coal produced every year in BC.

"PwC's research showed coal exports from British Columbia totalled $7.1-billion in 2011, which was about 22% of the total dollar value of exports from the province. Coal shipments were up by 10% to 24.5-million tons in 2011 compared to 2010, and higher coal prices pushed export revenues up by an impressive 35%,” economics and statistics director at PwC and report author Janice Plumstead said.

The coal industry also made an important contribution to provincial employment, supporting over 26 000 jobs in 2011. Many of those who worked in the industry were highly skilled individuals, such as geologists, skilled trades people, and mine engineers who earned higher-than-average wages. The estimated average yearly wage for those directly employed by coal companies was $95 174, twice the average provincial wage of $43 500.

The BC report comes on the heels of a national report produced by PwC called ‘Economic impact analysis of the coal mining industry in Canada’, released late in 2012. In it, PwC surveyed coal companies across Canada to determine the scope of their mining activities as well as their operating and capital expenditures, salaries and employment information, research and development spending and coal shipments.