Mr. Speaker, I am glad to rise today with regard to Bill C-4, because there is a part of it that pertains specifically to my riding of Kootenay—Columbia. That is under division 7, clauses 239 to 248, which deal with the Dominion Coal Blocks. I am sure my friend from the Green Party will be listening intently to that.
I want to provide some context with respect to the Dominion Coal Blocks, which most members are probably not familiar with, and how we got to where we are and why we are proposing a divesting of them.
Back in 1897, the Dominion Coal Blocks were created through the Crow’s Nest Pass Act, which allowed for the railways to come in from Alberta to British Columbia. However, they had to provide something back to the federal government in return. They provided a fairly large swath of land in southeastern British Columbia, which gave the rail lines the opportunity to come in. Those lands were acquired by the federal government in 1905. As a result, they were largely underutilized and have supported limited forestry operations and recreational activities since that time.
We know the Dominion Coal Blocks have a huge potential regarding metallurgical coal, which in common terms is the steel-making coal, used vastly around the world for a number of things.
There are two lots in discussion here, those being lot 73 and lot 82.
Lot 73 is located between Sparwood, British Columbia, and Hosmer, British Columbia, to the east. It is a section of land of approximately 2,000 hectares. It contains a very rich resource of metallurgical coal. Some would argue it has as much as 75 million tonnes of metallurgical coal. Others would say it is even higher.
Lot 82, which is located south of Fernie, British Columbia, in what is referred to as the Flathead Valley, poses a bit of a different issue, not only for the federal government but for the Province of British Columbia and municipal and regional governments.
I am glad to see the federal government has considered splitting lot 82. It is a sizeable lot of 18,000 hectares. The southern part of lot 82, which goes into the Flathead Valley, will be protected from natural resource extraction, which I think is a great move by our government, because what it does do is protect the integrity of the Flathead Valley, one of the most precious resources in all of Canada if not North America for its water and forestry resources, as well as a number of wildlife. The greatest habitat of grizzly bear in all of North America is within the Flathead range.
On the other hand, the other part of lot 82 would allow an opportunity for natural resource extraction, should there be an availability for it. That is a great opportunity as well.
This bill being moved forward would give the federal government the opportunity to divest itself of both lots 73 and 82. It is a great opportunity not only for the federal government but also for the extraction industry to move forward with some great opportunities with respect to metallurgical coal.
I will list some of the opportunities available not only through the Dominion Coal Blocks but also through the great resource we have in the southeast corner of British Columbia, of which many members may not be aware. In the southeast corner of British Columbia there are five coal mines. On average we export 27 million tonnes of metallurgical coal per year around the world. We are the second largest exporter of metallurgical coal in the world and the largest exporter in North America. To provide some context, the average price for metallurgical coal is around $150 a tonne. Each car of coal is worth about $15,000, which equates to about $11,200,000 worth of metallurgical coal being extracted out of the Elk Valley per day.
What the Dominion Coal Blocks would do is extend the life of the opportunity for coal extraction within the Elk Valley. The opportunity for any coal company to come along and potentially extract coal, especially from lot 73, is huge.
What I do appreciate, not only from the federal government but also from the provincial government, is that the inclusion of first nations has been paramount in the discussions with regard to the Dominion Coal Blocks and they have been included from the get-go. The Ktunaxa Nation has been a partner in this right from the onset. They understand the value of natural resource extraction, and they have also become a partner with Teck Resources with regard to the opportunity for profit sharing.
I think there are some great synergies that we can see here, with the federal government, with the provincial government and with municipal governments in the areas, where we have satisfied the opportunities for the environment in the Flathead Valley. We have satisfied the opportunity to work diligently and closely with first nations, and we have satisfied the opportunity to divest of some land we have held since 1905. It is time to divest and allow natural resource extraction to continue on in the Elk Valley. Also the federal government would have the opportunity to sell off some land that, for the most part, it would not be able to utilize.
I just want to come back to clause 241 within C-4, which says:
Nothing in the Crow’s Nest Pass Act, in the agreement mentioned in that Act or in any covenant in the instrument conveying the Dominion Coal Blocks to His Majesty in right of Canada operates so as to limit the power of Her Majesty in right of Canada to hold, dispose of or otherwise deal with the Dominion Coal Blocks, or any part of the Dominion Coal Blocks or any interest in them, in any manner and on any conditions that Her Majesty in right of Canada considers appropriate.
I think that is a great way to explain to people that this government has dealt with this in a very efficient manner, a very fair manner, and everyone at the table seems to be happy with how we are going to move forward.
In closing, I just want to say that the coal industry in Canada is a vibrant industry, especially in southeastern British Columbia, and that Dominion Coal Blocks would bring a lot to this, extending the life of many of the mines in the Elk Valley. We are looking forward to the day when we can say the Dominion Coal Blocks would be used for natural extraction, especially in lot 73, and in lot 82, we can say we preserved the environment.