The Coal Association of Canada (CAC) is calling on the federal government to formally designate metallurgical coal as a critical mineral, arguing the move is essential to safeguard Canada’s continued role as a dependable supplier in global steelmaking while protecting thousands of jobs.The industry push comes as the United States has imposed tariffs on Canadian metals and minerals while having already classified metallurgical coal as a critical mineral — a step the CAC says Canada must follow to remain competitive.“A metallurgical coal critical mineral designation would reinforce the industry’s position within strategic supply chains and enhance Canada’s ability to provide a stable, independent supply of the coal required to make steel,” CAC president Robin Campbell said in a statement.CAC argues that Canada’s high-quality metallurgical coal — primarily mined in Alberta and British Columbia — is uniquely positioned to serve global markets at a time of growing geopolitical uncertainty.Most of Alberta’s metallurgical coal reserves are concentrated along the eastern slopes at the foot of the Rocky Mountains. Unlike thermal coal, metallurgical, or “coking,” coal is an essential ingredient in high-grade steelmaking.In 2024, metallurgical bituminous coal represented 7.1% of all marketable coal produced in Alberta, according to the Alberta Energy Regulator (AER)..Northback plans to resubmit controversial Grassy Mountain mine proposal for approval.One company operating in the eastern slopes is Northback Holdings Corp., a subsidiary of Australian mining giant Hancock Prospecting, which is currently working on a plan to resubmit their proposed plan for the Grassy Mountain coal project to the AER.Northback welcomed the CAC’s announcement and also emphasized the role of steelmaking coal in a statement to the Western Standard, noting its use in producing 71% of the nearly 1.9 billion tonnes of steel made annually.Northback says its revised plan would create hundreds of permanent jobs in southern Alberta and deliver “hundreds of millions” in economic benefits while delivering “high-quality steelmaking coal to world markets,” in line with the CAC’s assessment of the current climate in Canada.Campbell said the industry’s push for the critical mineral designation is also partly about public understanding.“People see coal as one thing — something for power generation. But metallurgical coal is different. It’s essential for steel, and demand for steel is only going to grow,” he told the Western Standard.A federal critical mineral designation could also carry significant economic benefits.According to Campbell, the metallurgical coal sector currently contributes roughly $10 billion in annual export revenue, and Canada remains the world’s third-largest producer.“It’s an opportunity for Canada to continue to be a world leader in producing it,” Campbell said.“It means good Canadian jobs and good taxes and royalties at all three levels of government. It’s a significant contributor to Canada’s GDP.”Campbell estimates the sector directly employs 10,000 to 15,000 workers, in particular in Alberta and BC, with thousands more jobs supported indirectly across other related industries..WATCH: Ex-Lethbridge mayor demands Smith hold referendum on future of coal mining in Alberta.Currently, Japan remains Canada’s largest buyer, accounting for more than half of metallurgical coal exports, while China continues to be a major customer as the world’s top steel producer.A critical mineral designation also does not exempt companies from environmental scrutiny, Campbell stressed.Instead, he said, it could help modernize regulatory processes and provide certainty for long-term investment.“We have to do a good job mining the product and also uphold environmental standards,” he said.“We want a level playing field, and we need government to understand that. We're a business like any other, but we're not afraid of strict regulations.”Modern mine plans, he said, increasingly rely on progressive reclamation — restoring land and returning it to the public more quickly than was possible in the past.Campbell says the industry is also working to improve water management, an area of major public concern.Earlier this year, the United Nations projected the global population will reach 9.8 billion by 2050, driving up demand for more energy production and steel use in infrastructure projects ranging from bridges to high-rises and shipping, signalling that metallurgical coal isn’t going away anytime soon.With that demand rising and US tariffs creating uncertainty, Campbell said Ottawa has an opportunity to strengthen Canada’s competitive footing.“I don’t think it would hurt,” Campbell said when asked about the designation’s potential role in navigating trade tensions with Canada’s southern neighbours.“We have some of the best reserves in the world. It's prudent for the Canadian government and provincial governments to recognize us as a critical mineral moving forward and make sure there are regulations in place that will allow us to continue to mine this resource.”
