Clark thanks Trudeau for considering ban, tax on thermal coal
Posted May 5, 2017 2:12 pm.
Last Updated June 15, 2017 4:13 pm.
This article is more than 5 years old.
VANCOUVER (NEWS 1130) – BC Liberal Leader Christy Clark‘s request to ban or heavily tax thermal coal from the United States is gaining traction with the federal government.
In a statement Friday, Clark says Prime Minister Justin Trudeau has agreed to seriously review her request, which she made after the United States slapped new duties on softwood.
Clark says Trudeau shows he shares her commitment to secure a trade agreement on softwood.
The BC Liberal Leader, who is campaigning ahead of Tuesday’s provincial election, says they also share a desire to reduce global reliance on dirty thermal coal as a source of electricity.
About 94 per cent of the thermal coal shipped through the province comes from the United States and is bound for Asia, but Alberta also ships it to BC’s coast.
Alberta Premier Rachel Notley said earlier this week that Clark’s suggestion of a $70-a-tonne carbon tax would be bad news for the industry.
Thermal coal industry already struggling
The thermal coal industry is already in a dovetail spin, according to one observer.
Because of its level of greenhouse gas emissions, it’s getting harder to find markets for thermal coal, says Kevin Washbrook of Voters for Taking Action on Climate Change.
“US coal exports from Westshore Terminals in Tsawwassen went down about 30 per cent year-on-year. Ridley Terminals in Prince Rupert, which exports only Alberta coal, are going down as well.”
Even if a BC Liberal government were to tax coal exports rather than outright ban exports, which is another option being suggested, Washbrook predicts the export industry would grind to a halt, because of such low prices.
“The spot price for coal is only about $80 per tonne. Clark’s tax would add another $70 Cdn per tonne. These companies are only making a dollar or two a tonne.”
The top markets for US thermal coal are Japan, Chile and Korea. China used to be a major buyer of thermal coal, but it has curtailed its imports.
Incidentally, expansion of Fraser Surrey Docks to house a coal transfer facility, is still in limbo. The company has yet to apply for key permits. Washbrook’s organization is taking the project to federal court, arguing Port Metro Vancouver failed to consult with the public and local municipalities when approving it.
