Report backs coal’s economic contribution to Elk Valley

Steel-making coal operations in the Elk Valley contribute 80 percent of gross domestic product (GDP) produced in the region, according to a study released on Feb. 9 2022.

The study, which was produced by major consultancy company, Deloitte, for the BC Chamber of Commerce, the United Steelworkers Union and Teck Resources reported that coal mining supports more than 30,000 jobs and directly contributes around $1.5 billion in revenue to local, provincial and federal government.

Teck operates four active coal mines in the Elk Valley – Elkview, Greenhills, Fording River and Line Creek – which together are forecast to produce between 25 and 26 million tonnes of steel-making coal in 2021.

The study from Deloitte analysed the relationship between Teck’s four sites, and neighbouring communities of Elkford, Sparwood, Fernie, Cranbrook and Crowsnest Pass by looking at both direct and indirect economic benefits.

Accounting for direct, indirect and induced benefits, steel-making coal mining contributes $6.3 billion to Canada’s GDP, of which $4.6 billion goes to B.C.’s GDP provincially.

Locally, communities directly benefiting from the operations see thousands of jobs and hundreds of millions paid to local suppliers and local employees, and millions in revenue to local municipalities.

Combined, the report found that there were 5,345 full-time equivalent jobs supported by mining in Elkford, Sparwood and Fernie, with a further 1,820 supported further afield of Cranbrook and Crowsnest Pass.

In Elkford, the report said that $200 million went to local suppliers, with $85 million in payments to the 640 directly employed locals and $6.3 million in government revenue.

Sparwood saw $390 million in payments to local suppliers, with $115 million in employee income (to 825 locals directly employed) and $12.7 million in government revenue.

Despite being the largest community in the valley, Fernie was relatively uninvolved with suppliers and government revenue, with only $10 million to local suppliers and $3.5 million to the government. Wages were high though, with $110 million going to local employees, of which there are 755 directly employed by Teck.

You can read the full report at the BC Chamber of Commerce website.

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