Issue link: http://resourceworld.uberflip.com/i/1037672
O C T O B E R / N O V E M B E R 2 0 1 8 www.resourceworld.com 5 Editor's Comments Ellsworth Dickson Ellsworth Dickson, Editor-in-Chief Email: editor@resourceworld.com T: 604 484 3800 | 1 877 484 3800 W ith ongoing negative coverage of coal and climate change in the mainstream media, one might assume that times are tough in the coal sector but you would be wrong – if you happen to work in the coal industry, you are aware that coal mining is in a 'sweet spot'. That's what Ted O'Brian of Xcoal Energy and Resources told the audience at the recent conference, "Canada's Coal Industry: Driving Global Growth" that was presented at the Westin Bayshore, Vancouver, by the Coal Association of Canada. There are a number of factors that have created the current robust coal sector with perhaps the most significant being grow - ing global demand for metallurgical coal, or coking coal, used to make iron and steel. Developing and advanced countries need steel for countless purposes – beams and girders for buildings, tracks for trains and subways, steel for wind turbines, cars and trucks, machinery and tools. This growing demand has been respon- sible for coal recovering from the dismal 2016 price of US $91.85/tonne to the cur- rent US $203.01/tonne. Indeed, demand is so strong thanks to global economic expansion that the supply chain of coal is playing catch-up. In some instances, this has not been particularly easy as coal mining companies need substantial capi - tal to build and upgrade mines while, at the same time, many on Wall Street, for example, don't want to touch coal due to its negative environmental reputation which is not helped by the fact that some jurisdictions need to burn coal to generate electricity. Also underscoring this point are the thermal coal indexes that remain at multi-year highs due to growing Asian demand. As opposed to western banks and financiers, Chinese banks are not shy about providing funds for coal-powered power plants in China, Pakistan, India and elsewhere. It seems a little odd that with the present push for clean, renew - able energy, China is playing such a huge role in building coal plants. Indeed, The New York Times reported that the China Development Bank and the Export-Import Bank of China have provided over US $43 billion in coal financing since 2000. The truth is that coal remains a critical product for expanding populations around the world and Canada plays an important role. "We can truly be a catalyst to inter - national growth. Our premium Canadian coals are highly valued, both at home and abroad," said Mark Bartkoski, Chairman of the CAC and President of Conuma Coal Resources. In a technical presentation by Guy Gilron, Senior Environmental Scientist and Principal of Borealis Environmental Consulting Inc., and Martin Davies, Senior Vice President and Partner of Hatfield Consultants, they discussed the implications of proposed new coal mine effluent regula - tions with particular regard to selenium. Environment and Climate Change Canada has been reviewing the Metal Mining Effluent Regulations which have not been updated since their initial promulgation in 2002. There are new regu - lations for metal and diamond mines. Of course, the Canadian coal industry wants to minimize any selenium discharge and some coal companies have ongoing research dealing with this important topic. However, the big question is: Will new stringent selenium discharge regulations, possibly out by late 2019, be achievable with available technology? This could be a major challenge for coal miners. n Coal mining sector in a 'sweet spot'