1. COAL DEVELOPMENT IN BRITISH COLUMBIA: OPPORTUNITIES & CHALLENGES OCTOBER 2013

2. The BC Advantage 2  Stable political & investment climate  Competitive taxation & supportive policies  Canada’s Pacific Gateway  World-class infrastructure, including port and rail facilities  Abundant low-cost power  Comprehensive publicly available geoscience

3. B.C. Mining Production: $8.3 Billion in 2012 3  Coal: $5 billion  9 operating coal mines

4. Global Demand for BC Coal 4  BC is Canada’s largest exporter of coal  Over 95% of coal produced in BC is used in the production of steel  Over 70% of BC coal is exported to Asia

5.  3 coal mines currently operating in NE BC: Trend Brule Wolverine  Over 1,400 direct jobs Northeast BC Coal Mines 5

6. Southeast BC Coal Mines 6  5 operating coal mines in southeast BC  Directly employ over 3,700 people  All 5 are owned by Teck with plans to expand in coming years to sustain production levels

7. Major Mine Development Projects in Northeast B.C. 7  Huge development potential in NE coal belt  Roman coal mine is now under construction  Quintette coal mine approved to re-open  5 proposals in EA

8. 2012 Northeast Coal Exploration 8 $ MILLION  $109.3 M spent on exploration programs  120,000 m drilled

9. Building Partnerships with First Nations 9  The Province is in government-to- government discussions with First Nations about coal potential in the NE  These discussions include: predictable consultation processes areas of significance to First Nations mineral tax revenue sharing from new mines and major expansions

10. Province-wide Challenges in Coal Development 10  Water quality management Selenium and long-term water treatment  Wildlife and wildlife habitat Caribou and species at risk  Shortage of skilled labour Trades Underground coal mining

11. Challenge: Selenium Management 11  Selenium is a naturally occurring element and essential to biological function, but is toxic in larger doses  Waste rock from coal mining contains selenium  Province is updating provincial Water Quality Guidelines for selenium  Elk Valley Area Based Management Plan

12. Challenge: Caribou and Caribou Habitat 12  Peace Northern Caribou Plan  Goal is to increase the current population of Northern Caribou in the South Peace from 1,100 animals to 1,200 animals within 3 caribou generations  Commitment to protect 90% of high- elevation winter caribou habitat across the South Peace

13. Challenge: Skilled Labour Shortage 13  15,000 job openings expected  Province is supporting various mining- related skills development initiatives: Employment Skills Access Program BC Aboriginal Mine Training Association BC HR Task Force: Exploration, Mining, Stone, Sand & Gravel

14. Coal for the Future 14  The Province is making significant efforts to address the challenges associated with coal development across BC  Global demand for BC steelmaking coal expected to continue  Coal will continue to be a key part of BC’s economy in the coming years  The northeast = new hub for BC coal