Yeah, that's lath, and it's what every HD and Lowes employee I've talked to thought I was talking about when I asked for expanded metal. I'm pretty confident it's galvanized too.
And even if you could burn it off safely, that stuff is Flimsyville and I doubt it would hold up long for a charcoal basket. Just for curiosity, I shot my fire with my laser thermometer during my last smoke, and IIRC I got temp readings in the neighborhood of 700 degrees in the heart of the fire. I don't think that stuff would stand up to that kind of heat for long, but I've been wrong before.