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MiningWeek Online
March 19, 2004 Volume 10, Issue 11
This Week's Issue:
Leavitt: EPA mission includes environmental protection, economic progress
Environmental Protection Agency (EPA) Administrator Mike Leavitt told NMA’s Board of Directors this week his mission at the agency is to “create an atmosphere where we do not just protect the environment, but accelerate that protection while doing it in a way that preserves economic progress.”
Speaking at the breakfast meeting, Leavitt said the nation has made significant progress over the past 30 years in cleaning up its air, water and land. “The opportunity for the next 30 years can be defined by saying we have to increase the velocity of our environmental progress, but in a way that preserves our economy. We have to do it even better,” he added.
Doing it better requires a “better way,” Leavitt said, that includes “the use of technology; the use of markets, especially cap-and-trade programs that will give incentives for people to do things faster; and collaborative problem solving.”
Leavitt noted that over the past three decades, the U.S. now “finds itself in a place where we have this commitment environmentally, but we also have a global economy. Environmentalism and globalism have moved at the same pace – we are competing with other countries.”
Turning to air quality issues, Leavitt said EPA’s interstate air quality rule “is pursuing the same goals as (President Bush) is pursuing with his Clear Skies proposal. We still think Clear Skies is the best way to deal with this, but we can’t wait” for the legislative outcome of that initiative before taking action.
However, Leavitt acknowledged the cost burden the EPA proposal places on industry. “These are not inexpensive propositions,” he said. “We’re talking about as much as $50 billion in investment over the next 10 years. But I sense the utility industry will support this if there is enough certainty to recoup investment.”
Leavitt stressed his “better way” at EPA includes “collaborative problem solving, measuring results and not rewarding process. I am hopeful we can create a culture of decision-making within EPA – an atmosphere of problem solving, not confrontation.”
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Government’s role is to provide good
environment for job creation, Evans says
Creating an environment where “businesses do what they do best, which is create jobs,” is a key element in the continuing revival of the U.S. economy, Secretary of Commerce Don Evans told NMA’s Board of Directors this week.
“Everybody in America wants the same thing – a good job,” Evans said. “All we can do in government is create the conditions for you (industry) to do what you do well, which is create economic wealth.”
In contrast, excessively high health care and energy costs, frivolous law suits, unnecessarily harsh regulations and restricted international markets are all disincentives for businesses to create jobs, he said. “These are issues that face all industries (including mining).”
Evans said the U.S. economy “is incredibly strong, with 6.1 percent growth in the last half of 2003, productivity at amazingly high levels, the creation of 364,000 jobs over the last six months, declining unemployment, inflation in check, and low interest rates. The long-term fundamentals of this economy are very strong,” he added.
Evans praised the mining sector for its contribution to the economy and “for employing a lot of people in your industry – these are good, high paying jobs.” He also noted the “tremendous amount of energy delivered” by coal to the economy through providing more than half the nation’s electricity generation. He also expressed gratitude for the industry’s support of the administration’s energy policy initiatives.
Evans noted President Bush’s FutureGen initiative is aimed at eventually producing a zero emissions coal-based plant. “I’m a believer in technology in our society – that’s where we’ll find the solutions to problems.”
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Bush urges Congress to pass energy bill; key Senators send letter of support to Frist, Daschle
President Bush this week called on Congress to pass the energy bill during a speech on the economy at the U.S. Chamber of Commerce.
Meanwhile, 20 key bi-partisan senators sent a letter to Senate Majority Leader Bill Frist (R-TN) and Minority Leader Tom Daschle (D-SD) supporting their intent to bring the legislation (S. 2095) to the floor after the March recess.
“We need an energy bill,” Bush told the Chamber. “If you’re a manufacturer, it’s hard to plan if you’re worried about either your energy costs or whether you’re going to have energy at all.”
Bush added, “Congress needs to get us an energy bill. If they’re interested in jobs staying here at home, if they’re interested in creating an environment in which we’re competitive, we need an energy bill – one that encourages reliability for electricity, and one that encourages conservation and helps us become less dependent on foreign sources of energy.”
The letter to Frist and Daschle said: “As Senators who have consistently supported attempts to develop comprehensive energy legislation by each party in the 108th Congress, we believe this critically-needed legislation should be brought to the floor without further delay. The United States desperately needs a coherent energy policy; and S. 2095 will address many of the critical issues facing our nation, including electricity reliability and modernization, the growing imbalance between natural gas supply and demand, and the need to encourage development of renewable resources and energy conservation.”
The Senators noted, “We have been willing to accept compromises on many issues that we believe are important to the country and our constituents in order to achieve the larger goal of an energy policy which will serve the national interest. Therefore, we urge you to work together over the next several days to reach a reasonable agreement for floor consideration of S. 2095 so that the Senate can consider and pass this much-needed legislation upon our return from the March recess.”
The letter was signed by Sens. Ben Nelson (D-NE); Jim Talent (R-MO); Byron Dorgan (D-ND); John Breaux (D-LA); Larry Craig (R-ID); Kent Conrad (D-ND); Lisa Murkowski (R-AK); Norm Coleman (R-MN); Jim Bunning (R-KY); Peter Fitzgerald (R-IL); Mike Crapo (R-ID); Conrad Burns (R-MT); Elizabeth Dole (R-NC); Chuck Hagel (R-NE); George Voinovich (R-OH); Mark Pryor (D-AR); Kit Bond (R-MO); Trent Lott (R-MS); Gordon Smith (R-OR); and Lindsay Graham (R-SC).
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NMA introduces voter registration and education tool: Mine the Vote
NMA unveiled its new get-out-the-vote campaign at its Board Meeting this week. Mine the Vote allows users to register to vote, request an absentee ballot, learn about candidates, and find out how Members of Congress voted on bills that are important to the mining industry.
Mine the Vote is located at www.minethevote.org and NMA members seeking more information on how to get their company involved may contact Myron Meche at mmeche@nma.org.
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Revised DOI NEPA procedures address some NMA concerns
Revised Department of the Interior (DOI) procedures for implementing the National Environmental Policy Act (NEPA) address some of the concerns previously raised by NMA in comments filed with the agency.
The revised final procedures, which now must be followed by all DOI bureaus and offices to meet NEPA requirements, include added modified language, such as “to the extent possible” and “to the extent allowed by law,” to provide additional guidance on the use of consensus based management (CBM). NMA had expressed concern about the emphasis of the original proposal on CBM, particularly language that indicated that consensus must be reached among stakeholders regarding the scope of NEPA.
The final procedures also addressed NMA’s concern regarding proposed language that could have been interpreted to require all permits to be in place prior to completion of the NEPA analysis. The final procedures clarify that all approvals do not need to be in place to complete the NEPA analysis.
NMA’s concerns about the lack of firm time limits; language that could be read to require a combined environmental impact statement for mines that are proposed in the same geographic area; and the types of environmental information to be included in applications, were not specifically addressed by the revised procedures.
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New NMA publication outlines mining’s environment, health and safety achievements
A new publication is available from NMA, outlining the industry’s environment, health and safety commitment and achievements. “The Environment, Health and Safety: Our Commitment,” is a 16-page, four-color booklet that details how the modern mining industry goes far beyond simply meeting market demand for minerals and coal.
“By incorporating programs and technology to assure environmentally responsible operation, improved worker health and safety, and effective partnerships with local communities, mining companies are leaving a proud and sustainable legacy for the present and future,” NMA President and CEO Jack N. Gerard says in the book’s opening message.
Sections of the book focus on the industry’s overall commitment to the environment, land reclamation, water quality, wildlife preservation, air quality, and worker health and safety. It includes relevant statistics and information revealing positive trends in all these areas.
NMA members may receive up to 25 copies of the publication free of charge; additional copies are available for $3.75 each. Non-members may purchase the book for $5 each. For more information, contact Joyce Selig at 202-463-2631 or jselig@nma.org, or visit the publications section of the NMA website, www.nma.org.
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Caterpillar Financial receives Malcolm Baldrige National Quality Award
Caterpillar Financial Services Corp., a unit of Caterpillar Inc., was one of seven organizations recently recognized by President George Bush as a recipient of the 2003 Malcolm Baldrige National Quality Award.
The award is the nation’s top honor for performance excellence and quality achievement and is given to organizations with exemplary leadership, strategic planning, customer and market focus, measurement, analysis and knowledge management, human resource focus, process management and business results.
Cat Financial offers a wide range of financing alternatives which support the entire Cat product line, and also extends loans to customers and Caterpillar’s network of dealers. The company is headquartered in Nashville, TN.
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Agrium, Simplot, Monsanto receive reclamation awards
Three Idaho mines have been honored for their reclamation efforts by the state’s Department of Lands.
The department cited Agrium Inc.’s Rasmussen Ridge Mine, located northeast of Soda Springs, for Excellence in Ongoing Operations for reducing selenium in vegetation and surface waters.
J.R. Simplot Co. was presented the Excellence in Exploration Reclamation award for its restoration efforts after exploring new mining areas known as Manning Creek, Deer Creek and Wells Canyon. “Good planning, sound construction and innovative reclamation practices contributed significantly to Simplot’s receipt of this award,” the department said.
Monsanto, which has an open pit mining operation near Soda Springs, received the Special Project Award for composting a large amount of unmerchantable timber, blending it with overburden and using the material to reclaim the pit when mining was completed.
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NMA welcomes Apollo Gold to membership
NMA is pleased to welcome Apollo Gold Corp., a gold mining company with operations in Nevada and Montana, as its latest producer member.
The company has 100 percent ownership of the Montana Tunnels, MT, and Florida Canyon, NV, open pit gold mines. In addition, Apollo Gold has two advanced stage development projects in Nevada and Ontario, Canada, and expects to produce 160,000 ounces of gold this year, with more as projects come on line in the future.
The Montana Tunnels Mine, in operation since 1987, produces approximately 70,000-to-80,000 ounces of gold annually, plus substantive quantities of silver, lead and zinc. Florida Canyon, in operation since 1986, is operated by a 100 percent owned subsidiary, Florida Canyon Mining Inc. It produces approximately 100,000-to-140,000 ounces of gold annually as a dore (combined gold and silver metal) product.
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Golden Phoenix announces marketing agreement, permitting progress for Ashdown property in NV
Golden Phoenix Minerals Inc. has signed a marketing contract with W.G. Cook Ltd to seek out the best marketing sales of molybdenite concentrate from its Ashdown gold molybdenum property in Humboldt County, NV.
Golden Phoenix said it has started the permitting process for a pilot mill, designed to run about 100 tons per day of high-grade molybdenum ore and concurrent permitting for a production mill designed to process up to 1,500 tons daily.
“We remain confident that the Ashdown property will produce significant results for the company when fully developed,” said Golden Phoenix President and CEO Michael Fitzsimonds. He said the site “plays a key role in our long-term strategy for positioning Golden Phoenix as a multi-metal producer in the rising minerals and commodities picture.”
From 1880 to 1942, the Ashdown mine produced approximately 50,000 ounces of gold from underground ores. Beginning in 1979, four exploration companies identified potentially open-ended economic open-pittable gold and high-grade underground molybdenum resources on the property.
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Newsbits
American Electric Power (AEP) subsidiary Texas Central Co. has signed an agreement to sell its remaining generating assets, including one coal-based plant, to a joint venture of Sempra Energy Partners and Carlyle/Riverstone Global Energy and Power Fund for $430 million. AEP said proceeds from the sale will be used to reduce debt. The sale is contingent on federal clearances and approval from the Federal Energy Regulatory Commission and is expected to close in July 2004 . . . . Iveco, an Italian manufacturer of commercial vehicles and diesel engines, has opened a U.S. engine operation in Carol Stream, IL. Iveco Motors of North America will serve as an independent engine business focusing on application development, sales, marketing and support of Iveco’s complete line of diesel engines. More information is available at www.iveco.com. . . . MK Gold Co. said its wholly owned subsidiary, Cobre Las Cruces S.A., has entered into an agreement to purchase 500 hectares, or 1,250 acres, of land required for development of the Las Cruces Project. With the agreement, approximately 65 percent of the land initially required for the project has been secured, and negotiations are underway for the remainder, the company said. Las Cruces is a high grade copper deposit in the Iberian Pyrite Belt near Seville, Spain . . . . William E. Ivy, president of the Colorado Operations of RAG American Coal Co., is retiring March 31 – Charles A. Burggraf will assume responsibilities for Twentymile Coal, Empire Coal, Shoshone Coal and Yampa Valley Coal operations and activities, effective April 1.
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