What is metallurgical coal-making, the industry that ex-premier John Horgan is now a part of?

Metallurgical coal, used to make steel from iron ore, is back in the headlines after former B.C. premier John Horgan announced he has joined the board of Elk Valley Resources, a B.C. coal-producing company.

Horgan, who stepped down as premier in November and then resigned his seat as MLA for Langford-Juan de Fuca on March 31, has acknowledged that taking the job with a coal mining company would cause mixed reactions as mining, transporting and burning the fossil fuel is closely associated with greenhouse gas emissions and climate change.

But what exactly is the substance?

How is it different from regular coal?

Metallurgical coal is not the same as the thermal coal used to make steam to produce electricity.

Metallurgical coal, or coking coal, is mined to produce the carbon used in steelmaking.

To make steel, oxygen must be removed from iron oxide. In order to do that, a fuel called coke is required, and that's made by heating metallurgical coal in a blast furnace. Iron ore reduction and the subsequent smelting process are by far the most carbon-intensive aspects of steelmaking.

According to the World Steel Association, in 2020, direct emissions from the steelmaking sector were around 2.6 billion tonnes. That represents between seven and nine percent of global emissions caused by human activity.

Thermal coal mining contributes 30 per cent of global carbon emissions, and the Government of Canada says phasing it out is urgently required.

Mining coal for use in making steel also creates byproducts, one of which is selenium. It has the potential to be an environmental pollutant. B.C.'s Teck Coal Ltd., a subsidiary of Teck Resources, has faced fines in the past for polluting waterways with selenium.

John Steen, director of the Bradshaw Research Institute for Minerals and Mining at the University of British Columbia, said mining companies in the province are moving to use better technologies to remove selenium from water.

"The stringency of the selenium regulation now in B.C. is really tightening up," he said.

He also noted that compared to other jurisdictions mining metallurgical coal, B.C. has more stringent regulations, making coke coal from the province more desirable.

"B.C. is very fortunate to have a source of coal that's very high quality, very high grade," he said. "B.C. coal … is quite highly regulated in terms of environmental impacts and ... that means that we'll be a trusted source of coal for some time."

How much coal does B.C. mine?

According to the provincial government, coal mining is a major industry in the province, employing thousands of people and generating billions of dollars in annual revenue.

In the most recent provincial overview of the industry, from 2020, coal production amounts were forecast to total 25.1 million tonnes that year, down from 30 million tonnes in 2019. 

"Coal remains British Columbia's most valuable mined commodity with sales forecast at $3.97 billion for 2020," reads the report.

Around 95 per cent of coal mined in B.C. is metallurgical coal, while five per cent is thermal coal.

Where is coal mined in B.C.?

According to the 2020 provincial overview report, there are seven mines producing coking coal. Four are in the Kootenay mountains in the southeastern part of the province, and three mines are in B.C.'s Peace region, which is in the northeastern corner of the province.

The four mines in B.C.'s Elk Valley in the Kootenay region are operated by Teck, which spun off its coal mining operations to Elk Valley Resources, where Horgan is now a board member. The company says it employs 4,000 people in relation to the four mines.

What happens to the coal after it is mined?

Most B.C. coal is exported internationally and sent there through ports on the West Coast near Vancouver and Prince Rupert. A smaller percentage is shipped by rail to steel mills in Eastern Canada.

Some products are also sold to steel mills in South America and Europe.

Major markets for British Columbia coal include Asian countries, especially Japan, China, South Korea and India. Products are also sold to steel mills in Eastern Canada and to South America and Europe. 

What is the future of coal mining in B.C.?

Demand for steel is expected to continue to rise across the globe.

According to the World Steel Association, steel production has risen year over year from 189 million tonnes in 1950 to 1,951 tonnes in 2021.

Horgan argues there are ways other than coal to generate power but limited ways to make steel, meaning metallurgical coal will continue to be a necessary component of steelmaking.

However, other experts say the demand for metallurgic coal will eventually wane as greener ways to make steel have been realized and are expected to be widely adopted.

Chris Bataille, an adjunct research fellow for the Center on Global Energy Policy at Columbia University, who studies how to eliminate emissions from heavy industry, says the most promising replacement for coal for steelmaking is hydrogen.

"In the long run, we're just going to see less demand for metallurgical coal, although how fast that occurs depends [on the] ability to globally switch over," he said.

Sweden currently has at least one facility making green steel using hydrogen instead of coal.

A fact sheet from Teck says that  72 per cent of global steel production still relies on steelmaking coal.

The company says it's also committed to having its operations and activities being carbon-neutral by 2050.

Bataille says that although there are still years ahead for B.C.'s coal industry, now is the time to start taking action on its eventual end.

"It would be prescient for the province to be a bit more forward-thinking about that. That part of the mining sector will eventually probably phase out, and it is time now to start thinking about a replacement for mining that substance."