Insight
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9 Pages

Interest in Canadian projects continues even in the 'Age of Austerity'


Interest in Canadian projects continues even in the 'Age of Austerity'

Report summary

Interest in both brownfield and greenfield development of Canadian coal projects remains strong despite a pull-back in expansion capital spending across the coal industry.  In this Insight, we examine how nine projects we've classified as "probable" and "highly probable" to move forward stack up in terms of geography, project sponsors, potential returns, margins, capital efficiency and other metrics.  We then assess how these projects will compete against global peers.

What's included?

This report includes 1 file(s)

  • Interest in Canadian projects continues even in the 'Age of Austerity' PDF - 812.37 KB 9 Pages, 4 Tables, 4 Figures

Description

This Coal Insight report highlights the key issues surrounding this topic, and draws out the implications for those involved.

Participants, suppliers and advisors can use it to look at the trends, risks and issues within the coal industry and gain an alternative point of view when making decisions.

Wood Mackenzie is the only coal industry service provider that offers a market outlook integrated with other sector analyses, including macroeconomics, coal supply, steel markets and gas and power markets.

Our coal analysts are based in the markets they analyse. They work with objective, proprietary data to help you maximise your current and future decision making. From market dynamics to trade patterns, we give you confidence in your strategic planning.

  • Executive summary
  • Introduction
  • Canada looks like a safe bet
  • How do the projects stack up economically?
  • High hurdle rates for projects in the current environment
    • Mining methods, capital intensity and cash costs of projects
  • Canadian projects compare favourably with global peers
  • Developers focus on British Columbia's Peace River coalfield
  • Significant expansion capital will be deployed in Canada
    • Expansion capital expenditure by mine status - Canada
  • Conclusion
  • Appendix I: Coal price assumptions
  • Appendix II: Classification of projects
    • Highly probable projects
    • Probable projects
    • Possible projects

In this report there are 8 tables or charts, including:

  • Executive summary
  • Introduction
    • Summary of Canadian probable and highly probable projects
  • Canada looks like a safe bet
  • How do the projects stack up economically?
    • Financial metrics for Canadian probable and highly probable projects
  • High hurdle rates for projects in the current environment
    • Interest in Canadian projects continues even in the 'Age of Austerity': Table 3
  • Canadian projects compare favourably with global peers
    • Seaborne export metallurgical coal margin curve, 2026 (nominal dollars)
    • Seaborne export thermal coal margin curve, 2021 (nominal dollars)
  • Developers focus on British Columbia's Peace River coalfield
  • Significant expansion capital will be deployed in Canada
    • Interest in Canadian projects continues even in the 'Age of Austerity': Image 3
    • Marketable production by mine status - Canada
  • Conclusion
  • Appendix I: Coal price assumptions
    • Thermal and metallurgical price assumptions used in project valuation (US$/tonne, nominal basis)
  • Appendix II: Classification of projects
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