Western Canadian Coal Corp. claims on planning to reduce operations at mines in British Columbia. If this indeed happens, hundreds of jobs will become effected since there is a decline in demand from steel makers. By reducing operations, it will cause the original rate of 1.3 million tonnes to 750,000 tonnes of coal per year. It is said the event will take place by the end of January. Western Canadian plays a role in the world as they produce metallurgical coal from mines and sell it to world's steel makers. Unfortunately, the world presently has a slumping economy that gives countries such as Asia ideas that there will be no growth in steel sales. As a result, there is a low demand for coal that is usually needed to fuel the furnaces that create steel.
Recently, we have seen America's economy go on a decline. From the Lehman Brothers to the GM and Chrysler, America has not been doing well as a whole. Presently, we can see that an economic crisis in one country does not simply stay in that country. Other's problems can become ours as well as Western Canada's troubles clearly show everyone. As Asia has not found benefit in buying coal to create steel, parts of Canada that produce the coal has become affected. As to make matters worse, U.S may no longer be a buyer of coal depending on the situation of the GM and Chrysler. I believe Harper should take immediate action towards company declines such as these as to avoid future problems.
http://business.theglobeandmail.com/servlet/story/RTGAM.20090106.wwestern0106/BNStory/Business/home?cid=al_gam_mostemail
1 comment:
Obviously, this is an example of an economic issue in one country, causing economic issues in other parts of the world. Clearly, Coal is one of Canada's major exports, and fuels its economy with a large job base. With a shortage in coal and low demand on the world stage, it will effect economies in both Canada, and all over the world.
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