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World-wide steel demand bodes well for Alberta coal, UCP says

Devise a typical checklist of minerals and organic materials crucial to the survival of Planet Earth and it will likely lean heavily into the ones used in batteries.

You know: lithium, graphite, manganese and that bunch.

But what about the worldwide demand for steel and the coal used to make it? Could that elevate the carbonaceous rock from dirty villain to polished superhero?

Perhaps so, recent comments from the UCP in the Alberta legislature suggest.

In fact such a change in image and status is well underway in the U.S. And even the European Union, known for being environmentally conscious, has noted a critical need for steel-making coal.

Properly regulated, the mining of metallurgical coal has an important future in the economies of the province and Canada, said Brian Jean, the minister of energy and minerals. Getting more deposits to market is especially important during the shift now underway in international trade relations and norms, he hinted.

Steel is “absolutely vital for Canada and absolutely vital for the world,” Jean told his colleagues Oct. 29, noting that the EU and the U.S. have both designated steel-making coal as a critical needs.

The EU aims to make Europe the world’s first carbon-neutral continent by 2050. Even so, since 2014 coking coal — high-end metallurgical coal — has been on its list of critical raw materials. That status was reaffirmed in regulations approved in 2024 under the EU’s Critical Raw Materials Act.

Both the U.S Department of Energy and the U.S. Geological Survey this year added metallurgical coal to their lists of critical minerals and materials. And President Donald Trump routinely mentions the mining of “beautiful, clean coal” as part of his MAGA vision.

Although other ways to make steel are coming on stream, 70 to 75 per cent of steel’s world-wide production continues to use furnaces fed by metallurgical coal.

Steel is almost literally everywhere, as the world’s most relied-upon and cost-effective strong alloy. It’s present in bridges, buildings, household appliances, factory equipment and tools, farm equipment, energy infrastructure, cars, trains and more.

“As a province we are working to strengthen industries of national importance and doing so at the highest standards in the entire world,” stated Jean, the member for Fort McMurray-Lac La Biche. “We’re designing a modernized framework that will give clarity to regulation while prioritizing the protection of our water and our environment.”

The positive portrayal comes amid multi-million-dollar lawsuits and settlements as coal companies seek compensation from Alberta over mercurial past policies and decisions across multiple governments. Recent payouts to two companies totalled about $238-million and estimates of the province’s exposure range up to $15-billion or more.

Also within the current frame of reference is the controversial approval of water diversion and drilling for exploration for coal at Grassy Mountain near Blairmore in southwestern Alberta. Northback Holdings received limited approval in May when the Alberta Energy Regulator decided that, with conditions, the company can look for evidence of minable coal deposits at the legacy site.

Opponents of Grassy Mountain point to potential water contamination from the release of selenium as a major concern. Water security, air pollution and threats to wildlife habitat and migration also make the project untenable, they say.

But proponents and supporters say modern technologies and mitigation dramatically reduce risks. They say a new mine at the Eastern Slopes site, if one’s approved, will boost the Crowsnest economy and create jobs.

Garth Rowswell, the UCP member for Vermilion-Lloydminster-Wainwright, touted projects near Nordegg and Grande Cache as the future of mining in Alberta. The underground mines of Valory Resources will “secure Alberta’s position as a world leader in metallurgical coal” that’s clean and not highly volatile, he said.

Mine 14 is approved for a site about 430 km west of Edmonton in Greenview municipal district. Production of about 1.3 million tonnes per year of coal over a decade or more is targeted to begin in mid-2027.

Expected to be much larger but so far only approved for exploration is the Blackstone mine, proposed for a site in Clearwater county about 200 km west of Red Deer.

Valory estimates that the two mines would generate 10,000 to 15,000 direct and indirect jobs over their lifespans. Both, although underground, would be on the Eastern Slopes.

Neither are without controversy, generating concerns about the release of coal dust into the air, threats to hunting, fishing, tourism and wildlife, and water security and pollution. Criticisms of approval and public input procedures are also at the forefront.

The province does not advocate for specific projects, Jean told the legislature. “What we do is strengthen sectors.”

The minister continued: “Investments in innovation, modernization and implementation of world-class water and environmental protection will strengthen our domestic supply chains. We will only allow resources to be developed if the environment is protected as a first priority.”

Depending on the source, Canada ranks third or fourth as an exporter of metallurgical coal. Australia is by far the largest exporter, ahead of Russia, the U.S. and Canada.

Alberta is the second largest producer of metallurgical coal in Canada, but it’s way behind B.C. The Alberta total is under a million tonnes a year, and B.C. comes it at about 29-million tonnes a year or 95 per cent of Canada’s production.

Much of the world’s steel production still relies on metallurgical coal, and Alberta will be there to help meet the demand, the UCP says. Alamy photo