Canada’s federal government is scrapping a proposed mining project in BC, ultimately hindering Canada’s energy exports during a time of heightened global energy insecurity.
Following deliberations with indigenous groups, the public, and scientific experts, Ottawa decided not to proceed with the Sukunka Coal Mine Project, an open-pit coal mining operation and processing plant proposed by Glencore Canada near Tumbler Ridge, BC. The project’s Assessment Report, conducted by the province of British Columbia on behalf of the federal government, concluded such mining activity would negatively impact the region’s caribou and grizzly bear population, release selenium and mercury into nearby waterbodies, and alter the land’s traditional purposes for the Indigenous population.
“The scientific evidence gathered in assessing this project showed that its negative impacts were significant and could not be mitigated,” said Canada’s Minister of Environment and Climate Change Steven Guilbeault. Glencore’s proposed coal mine, which had an expected lifespan of 20 years, was going to produce 3 million tonnes of steel-making coal for overseas exports. Glencore estimated the mine would have provided a $450 million boost to BC’s economy, with the construction phase creating 700 jobs and 250 jobs once the facility becomes operational.
China, which recently eased Covid-19 restrictions, is expected to increase its coal consumption substantially as industrial activity resumes. As such, the communist country is looking to foreign coal producers to meet its demands. According to Chinese customs data, Russia exported about 2.5 million tons of coking coal to China in September, up from 900,000 tons from the same period one year ago.
Information for this briefing was found via The Government of Canada, Glencore and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.