Status report on Canadian coal mining

"How well is the Canadian coal industry able to expand in the tough competition with other fuels in Canada and with other suppliers in the international, metallurgical and thermal coal trade? Coal production as a whole decreased between 1950and 1960 and, although there has been a tripling of production since then, underground production continued to decrease until 1975. This trend has been reversed to a certain extent as a result of the modernization of mines in Cape Breton, but in 1978 over 85% of coal production came from surface mining.Against this background, the paper reviews current Canadian mining operations as described in papers presented at the 1979 CIM Annual General Meeting. Conclusions are then drawn regarding some of the longer-term mining applications in relation to the latest coal demand forecast, which indicates a potential Canadian production requirement of 160 million tonnes per year by 2000. IntroductionThe Canadian 'coal industry is experiencing a period of expansion and a new record for production is set with each passing year. This growth pattern over the last IS years has been based on two main markets-the generation of electricity in Canada and the export of coking coal to Japan. Supply to those markets has entailed either the development of mining, coal preparation and transportation systems for the delivery of large volumes of products with predetermined specifications or the establishment of minesite plants designed specifically to suit the characteristics of the coal in the adjacent deposits (Fig. I).Coal is a low-value commodity in relation to its bulk, and the economics of coal use become progressively less attractive with increasing distance from the producing mine. The transportation component in the export trade and in the movement of western coal to Ontario is a major cost factor. In the latter case, it approaches the cost of coal produced at the mine. In addition, the .international competition among coking coal producers chasing diminishing markets in a worldwide steel recession as well as the competition from U.S. coals and other fuel s for Canadian thermal coal have introduced a tight set of parameters to govern mining practices in all parts of the country. Some appreciation of the required changes in mining techniques brought about by declining traditional markets and the rigorous demands of the new bulk markets can be gained by comparing production from surface and underground mines over the past 25 years (Fig . 2)."