Canada Country Report 2014

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Discovery Reports

Canadian Dehua brings best Chinese mining practices to BC

PUBLISHED : Monday, 24 February, 2014, 2:31pm
UPDATED : Wednesday, 10 June, 2015, 10:52am

With its combination of abundant natural resources and a stable government with favourable policies, Canada is a haven for mining investments. Liu Naishun, president of Canadian Dehua International Mines Group, searched worldwide for these ideal conditions before establishing the company in the country. Liu has since given investors ample reasons to place their trust in the Canadian mining industry.

"Canada has the best investment environment in the world," Liu says. "Other countries may have lots of natural resources with good potential but do not have Canada's good government policies and harmony within communities."

Canada is one of only seven countries in the world where large quantities of top-quality coking coal can be found. The country's best coking coal resources in terms of quality and amount are in British Columbia, where miners have traditionally used the open-pit method. Open-pit mining is unable to access resources that are deep underground, leaving a wealth of untapped, high-grade coking coal deposits in the province. Canadian Dehua has been able to develop properties in British Columbia that contain these untapped deposits by leveraging the expertise of its partners in China.

"We use the most advanced mining techniques and management skills, and the latest equipment," Liu says. "The best underground coal-mining technology is found in China, and Canadian Dehua will surely bring the best to Canada."

Canadian Dehua has strong ties with leading Chinese coal producers, such as Kailuan Group and Huiyong Holdings Group, who are experts in coal mine development. It also works with coal end users such as top Chinese steel producers Shougang Group and Hebei Iron and Steel Group.

The company's collaborations with these partners include the Wapiti River, Gething, Murray River and Bullmoose projects. Set to tap British Columbia's richest deposits, all four projects are at the feasibility study stage and will next enter the environmental assessment stage. Production is expected to begin within the next five years. The Wapiti River project, in particular, has the potential quality and deposit to be the world's most productive coking coal property, with estimated reserves of 3.5 billion tonnes.

"We try to do our best for this project, for our partners and for the community," Liu says.

Canadian Dehua ensures the safety of its workers by using innovative Chinese methods such as the room and pillar, and longwall mining techniques. Because the techniques are deep underground, they also significantly reduce the project's impact on the environment. Canadian Dehua specifically used the Gething and Murray River projects to introduce British Columbia to longwall mining, which has been perfected in China. One of the company's partners on the Gething project, Kailuan Group, is China's oldest underground coal mining company with more than 130 years of mining experience.

As part of its efforts to bring the best Chinese mining practices to Canada, Canadian Dehua will open a mining school to support its projects in British Columbia. The school will prioritise Canadian students, particularly First Nations and British Columbians. "One of the challenges we face is the lack of technology and skilled labour for underground mining in Canada," Liu says. "It's up to us to establish a school to train underground managers and workers."

With the groundwork for its projects and alliances with Chinese majors firmly in place, Canadian Dehua continues to encourage world-class partners to accept the provincial government's invitation to invest in British Columbia's resource-based economy.

"Canadian Dehua is a reliable partner, and we welcome investors from all over the world to come and join us," Liu says. "Now is the best time to reinvest in coking coal resources, and companies with vision are bound to see the opportunities."


Canadian Dehua International Mines Group