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May 27-28, 2021
Hangzhou, Zhejiang, China
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Hangzhou, Zhejiang, China
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Hangzhou, Zhejiang, China
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May 23-24, 2019
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Zhuhai, Guangdong, China
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Hainan Sanya, China
Interview with Braam Jonker, President and CEO of Canada Coal Inc.
Canada Coal is a publically listed company focused on coal exploration and development in Nunavut, Canada. Through its two wholly-owned subsidiaries, Canada Sovereign Coal Corp. and 5200 Nunavut Ltd., Canada Coal holds 75 active licenses comprising approximately 2,442,627 acres located on Ellesmere Island and Axel Hieberg Island in Nunavut (the “Nunavut Coal Property”). Canada Coal commissioned a National Instrument 43-101 compliant technical report in respect of the Nunavut Coal Property, dated September 30, 2011 entitled “The Nunavut Coal Project-Ellesmere Island and Axel Heiberg Island, Nunavut, Canada” prepared by Keith McCandlish, P. Geol., P. Geo., and Susan O’Donnell, P. Geol., of DMT Geosciences Ltd. (formerly Associated Geosciences Ltd.)., Calgary, Alberta, Canada, a copy of which is available on SEDAR at www.sedar.com.
Braam Jonker: Developing the Fosheim bituminous coal project in Nunavut
----Interview with Braam Jonker, President and CEO of Canada Coal Inc.
Asian Metal: Hello Braam, and thank you for agreeing to this interview with Asian Metal. What is the long-term plan for the bituminous coal at the Fosheim deposit? Will it primarily be thermal product or are there plans for production of metallurgical?
Braam: Even though we have discovered some bituminous coal on our Fosheim properties, the coals analyzed to date did not contain the necessary characteristics to qualify as metallurgical coal. The purpose of the planned drilling program is to establish whether the coal at a deeper level below the surface contain the required coking coal characteristics.
Asian Metal: Many US coal consumers and producers have closed facilities or made cutbacks with mild winter weather and a growing market for natural gas for energy generation. It seems that there is still a significant population, particularly in the northern areas, that require coal-fired energy production. Is this the case? The
Braam: Company believes that there is still an important role for coal to play in the future of energy production, both in Canada as well as in the world at large.
Asian Metal: How does the Canadian market compare, and is it possible it could also suffer cutbacks?
Braam: The Canadian energy market does not have the typical coal versus natural gas interaction that you have in the US. That being said, the Canadian coal sector, like most other export coal sectors, is of course also impacted by the changes in the global energy and steel markets and its resulting impact on both price and demand.
Asian Metal: Do you think the recent joint ventures between Asian and Canadian enterprises, which seem to be the driving force behind the recent boom in the Canadian natural resource sectors, will gear the Canadian coal market primarily towards exports?
Braam: Canada is very fortunate in that they seem to have resources well in excess of domestic demand. In this regard, it is to be expected that companies in those countries in need of resources would seek to partner with companies in countries like Canada to meet this demand. Coal is no exception to this phenomenon.
Asian Metal: Does Canada Coal have any current plans for a joint venture or supply agreement with any international corporations?
Braam: Our project is too early stage to comment.
Asian Metal: What is your opinion on the future for both metallurgical and thermal coal in Canada? What challenges might Canadian companies be facing over the next few years?
Braam: As a developed country, the challenge for the Canadian industry is to remain cost competitive with those countries where labor is cheap. A further aspect that requires close attention is the availability of infrastructure. As a bulk commodity, infrastructure is key to the success of any coal project. However, I am confident that with the right level of support, these challenges could be successfully managed and thus the future of coal in Canada could be very positive.
Asian Metal: Despite the fact that 7.5% growth rate is phenomenal, the Chinese market has been slowing and consumption at past rates of 10% is not anticipated to occur going forward. In your opinion, what role will the slowing of the Chinese economy play in the development of the Canadian coal market? Has the current economic stagnation had an effect on the development of the Fosheim project?
Braam: Canada’s contribution to total Chinese coal imports are relatively low, only about 5Mmt in 2010. However, as the second largest economy in the world, Chinese economic growth does to a degree set the tone for commercial optimism in the world. In my view, it is not just the slow down in Chinese economic growth that is the main driver behind resource demand, but also the way in which the slow down is perceived as representative of the global growth trend. It is this global growth trend that would impact demand for coal both globally as well as in Canada. As Canada Coal is still several years away from potential production, the current economic trend does not have a direct impact on the company, other than the impact of the current capital markets on its share price.
Asian Metal: How does Canada Coal distinguish itself from other coal operations in Canada?
Braam: Canada Coal is unique in several aspects. The significant potential size of its resource, the potential quality of the resource and least not it location just to name a few.
Asian Metal: What type of challenges does Canada Coal face going forward?
Braam: Canada Coal is in early stage exploration and like all exploration companies it will need funding from time to time. The location of its resource also means that exploration activities are limited to certain times of the year.
Asian Metal: Thank you for your time, Braam!
Braam: Thank you!
Braam: Even though we have discovered some bituminous coal on our Fosheim properties, the coals analyzed to date did not contain the necessary characteristics to qualify as metallurgical coal. The purpose of the planned drilling program is to establish whether the coal at a deeper level below the surface contain the required coking coal characteristics.
Asian Metal: Many US coal consumers and producers have closed facilities or made cutbacks with mild winter weather and a growing market for natural gas for energy generation. It seems that there is still a significant population, particularly in the northern areas, that require coal-fired energy production. Is this the case? The
Braam: Company believes that there is still an important role for coal to play in the future of energy production, both in Canada as well as in the world at large.
Asian Metal: How does the Canadian market compare, and is it possible it could also suffer cutbacks?
Braam: The Canadian energy market does not have the typical coal versus natural gas interaction that you have in the US. That being said, the Canadian coal sector, like most other export coal sectors, is of course also impacted by the changes in the global energy and steel markets and its resulting impact on both price and demand.
Asian Metal: Do you think the recent joint ventures between Asian and Canadian enterprises, which seem to be the driving force behind the recent boom in the Canadian natural resource sectors, will gear the Canadian coal market primarily towards exports?
Braam: Canada is very fortunate in that they seem to have resources well in excess of domestic demand. In this regard, it is to be expected that companies in those countries in need of resources would seek to partner with companies in countries like Canada to meet this demand. Coal is no exception to this phenomenon.
Asian Metal: Does Canada Coal have any current plans for a joint venture or supply agreement with any international corporations?
Braam: Our project is too early stage to comment.
Asian Metal: What is your opinion on the future for both metallurgical and thermal coal in Canada? What challenges might Canadian companies be facing over the next few years?
Braam: As a developed country, the challenge for the Canadian industry is to remain cost competitive with those countries where labor is cheap. A further aspect that requires close attention is the availability of infrastructure. As a bulk commodity, infrastructure is key to the success of any coal project. However, I am confident that with the right level of support, these challenges could be successfully managed and thus the future of coal in Canada could be very positive.
Asian Metal: Despite the fact that 7.5% growth rate is phenomenal, the Chinese market has been slowing and consumption at past rates of 10% is not anticipated to occur going forward. In your opinion, what role will the slowing of the Chinese economy play in the development of the Canadian coal market? Has the current economic stagnation had an effect on the development of the Fosheim project?
Braam: Canada’s contribution to total Chinese coal imports are relatively low, only about 5Mmt in 2010. However, as the second largest economy in the world, Chinese economic growth does to a degree set the tone for commercial optimism in the world. In my view, it is not just the slow down in Chinese economic growth that is the main driver behind resource demand, but also the way in which the slow down is perceived as representative of the global growth trend. It is this global growth trend that would impact demand for coal both globally as well as in Canada. As Canada Coal is still several years away from potential production, the current economic trend does not have a direct impact on the company, other than the impact of the current capital markets on its share price.
Asian Metal: How does Canada Coal distinguish itself from other coal operations in Canada?
Braam: Canada Coal is unique in several aspects. The significant potential size of its resource, the potential quality of the resource and least not it location just to name a few.
Asian Metal: What type of challenges does Canada Coal face going forward?
Braam: Canada Coal is in early stage exploration and like all exploration companies it will need funding from time to time. The location of its resource also means that exploration activities are limited to certain times of the year.
Asian Metal: Thank you for your time, Braam!
Braam: Thank you!