FACTS ON THERMAL COALJune 2017

Handlingsteelmaking

& thermalcoal

Long term contracts withCanadian &

US mines

Westshore Terminals: North America’s largest coal export terminal

47 yearsoperating on

Canada’s west coast

$270 millionin capital

investments underway

$45 millionenvironmental enhancements

The economic benefits of thermal coal through British Columbia are sizable

One-thirdof coal

exports through BC

1,000+ jobsIn Canada

1,000+in U.S.

$21 milliontaxes & fees

to governmentannually

$1.1 billioneconomic

activity in thelast decade

Westshore Terminals

$30 million BC marine services &

local suppliers annually

Valued at$832 million

annually

A ban will have no impact on global consumption; coal will be sourced elsewhere, and Canada will lose the economic benefits of export trade

BCExports11millionMT

Global ThermalProduction

5,800 million MT

Global Exports 1,000 million MT

40% of the world’s population relies on thermal coal to meet their basic electricity needs

Currently, 95 countries have a combined 7,000+ coal-fired plants, with an additional 500 planned or in construction

These nations depend on thermal coal exported through Canada for their electricity needs

Without our exports, they would turn to Indonesia, Australia or Russia to diversify their supply

South Korea, Japan & Chile: Key Markets for our Customers

Korea49%

Chile28%

Japan20%

U.K2%

China1%

Source:Westshore,2015

A ban or levy would have significant negative impacts across the industry

An ban, levy or tax is not the answer; we need to keep Canada strong and open for global trade

IT WILL

• Immediately result in hundreds of job losses for Canadians in BC and Alberta

• Eliminate $21 million in taxes and fees from Westshore alone to all levels of government

• Remove $30 million in annual local spending in Metro Vancouver by Westshore

• Cut 100 ships and related spending on fuel and other goods and services

• Further strain Canada-U.S. and BC-Alberta trade relations

IT WILL NOT

• Create jobs or economic activity for BC, Alberta or Canada

• Reduce global consumption of thermal coal for coal-dependent nations, like Japan and South Korea

• Increase Canadian steelmaking coal exports with the excess terminal capacity that exists today

• Help Canada-U.S. trade or inter-provincial relations