Coal miners in Canada continue to remain bullish on the fate of the sector in the world market amid dropping prices and an oversupply in China, one of the world's largest consumers of the raw basic commodity.

In fact, Canadian coal companies all the more plan to continue investing in both exploration programs and development of new mines.

"What we see is companies are investing in mine development, they are doing exploration and they are looking for new deposits. There is the expectation that there will be new opportunities to export to Asia," Janice Plumstead, director of consulting and deals at PricewaterhouseCoopers (PwC), and one of the presenters at the Coal Association of Canada's national conference in Vancouver, told The Vancouver Sun earlier this week.

Although increase in the production of coal is dependent on the discovery of new mines, the national conference believed Asian demand for coal, specially the metallurgical coal type, remain strong regardless of the inventory overflow in China.

Metallurgical coal is a high-quality type of coal used for steelmaking. Fortunately, British Columbia has an abundance of this type of coal.

Canada's exports of thermal coal, used for energy production, are likewise expected to increase owing to improvements in B.C.'s port infrastructure.

An example of a coal miner investing into its future would be Coalspur Mines, which according to its chief executive officer, Eugene Wasaty, has an agreement with the Port of Prince Rupert to help in the port's $90 million expansion. It was not specified in the report of The Vancouver Sun how much is the contribution of Coalspur Mines into the Port of Prince Rupert expansion.

"Thermal coal [exports] have been growing at 10 per cent per year - this is seaborne trade - and we do not see a supply-demand imbalance. We believe with that rate of growth, will be a shortage of good quality thermal coal in the markets and that will dictate price increases," Mr Wasaty said.

"There's volatility in the market but we think the coal market will continue to grow and there will be opportunities for Canadian companies," Ms Plumstead said.

Canada's coal production in 2011 reached a total of 67.3 million tonnes, of which 40 per cent were exported, the PwC said, citing preliminary results of its own report on the industry. This translated to revenues of $6.5 billion.

The coal industry contributed $5.2 billion to Canadia's overall GDP.

Read more:

Vale SA Suspends Operations of Australian Carborough Downs Coal Mine

Australia's Gloucester Coal Merger with China's Yancoal Australia OKd

BHP Billiton Welcomes Australian Environmental Go Signal on Pilbara Port Expansion, But Says Decision To Proceed Still To Take Time