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MiningWeek Online
May 7, 2004 Volume 10, Issue 18
This Week's Issue:
Rogers, Beauprez visit NMA
From left to right, NMA President Jack Gerard, Rep. Mike Rogers (R-MI) and Rep. Bob Beauprez (R-CO).
Reps. Mike Rogers (R-MI) and Bob Beauprez (R-CO) visited NMA this week to brief staff and member company representatives on the upcoming election and other issues. Appointed to the deputy whip team and the Majority Leader’s leadership council in his first term, Rogers currently serves as Deputy Whip for Coalitions and on the influential Energy and Commerce Committee. His subcommittee assignments include: Energy and Air Quality, Environment and Hazardous Materials, Health, and Oversight and Investigations. Beauprez, who was recently appointed by House Majority Leader Tom DeLay (R-TX) to serve on the House Energy Action Team (HEAT), has been vocal in urging the Senate to pass comprehensive national energy legislation and on other natural resource issues. He briefed the staff and members on Colorado election prospects in the fall campaign, the war in Iraq, and the economy.
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Lignite Energy Council conducts annual fly-in, Hill visits
The Lignite Energy Council (LEC) this week conducted its annual Washington fly-in and Hill visits, with NMA hosting the group at its D.C. headquarters adjacent to Capitol Hill. LEC was briefed by NMA, the Edison Electric Institute and the National Rural Electric Cooperative Association on climate change, mercury rules, energy legislation and other important issues. NMA’s Senior Vice President – Government Affairs John Shelk (front left) is shown during his presentation to the group; next to Shelk is LEC President John W. Dwyer.
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EPA notice withdraws proposed rule on storm water effluent limitations guidelines
The Environmental Protection Agency (EPA) on April 26 published a notice withdrawing a proposed rule that considered imposing effluent limitations guidelines (ELGs) and new source performance standards for the control of storm water discharges from construction sites.
The decision is relevant to mining since currently certain earth disturbing activities occurring at mine sites are required to obtain coverage under the construction general storm water permit. Withdrawal of the proposal to establish ELGs for the construction industry means those activities that currently fall within the construction general permit will not be required to meet numeric effluent limitations, but instead will apply best management practices where it is determined to be necessary.
The notice said the agency determined that establishing uniform national technology-based standards is not the most effective way to address storm water discharges from construction sites. Factors EPA considered in making its determination included (but were not limited to): the effectiveness of existing federal, state and local programs; total annual costs of the proposed ELGs; and the impact on small businesses compared with the estimated environmental benefit of the additional capture of approximately 1 percent more of the overall sediment loads.
NMA is currently encouraging EPA to place all mining activities within one storm water permit – the Multi-Sector general permit – to avoid the dual permitting scheme that currently exists. NMA members seeking additional information on this issue should contact Karen Bennett at 202-463-3240, or kbennett@nma.org.
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Contract negotiations begin at Stillwater mine and metal recovery facilities
Stillwater Mining Co. this week said its representatives and those of the Paper, Allied Industrial Chemical and Energy Workers (PACE) International and its Local 8-0001 met in Billings, MT, to begin discussions for a new labor agreement.
“Bargaining teams from the Union and Stillwater management established the ground rules and laid the foundation for the upcoming meetings,” the company said. “Additional bargaining sessions have been scheduled.”
Stillwater said the company and the union “entered into an agreement that all statements to the media concerning negotiations will be done jointly unless 24 hour notice has been given from one party to the other.” Approximately 900 hourly employees at the mine located near Nye, MT, and the metal recovery facilities in Columbus, MT, are covered by the current contract that expires July 1, 2004.
Stillwater is the only U.S. producer of palladium and platinum and is the largest primary producer of platinum group metals outside of South Africa.
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WMC members visit Capitol Hill
Members of the Women’s Mining Coalition (WMC) were in Washington this week for their annual visits to Capitol Hill. Using NMA’s headquarters location as a base of operations, some 32 WMC members representing 16 mining states contacted numerous Congressional offices, discussing such key issues as energy policy and the need for a national minerals policy.
The WMC is an integral component of NMA’s grassroots and educational efforts. WMC members work for mining companies, equipment manufacturers, vendors and suppliers to the industry, and as technical consultants to mining companies. They present a compelling and personal story to members of Congress and federal policy makers regarding the importance of coal and mineral production in their local communities and for the U.S. in general.
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Chamber of Commerce urges Leavitt to investigate alleged EPA-NRDC conflict of interest
The U.S. Chamber of Commerce last week urged Environmental Protection Agency (EPA) Administrator Mike Leavitt to investigate the “appearance of a conflict of interest” between the agency and the Natural Resources Defense Council (NRDC).
In comments submitted to EPA on its proposed mercury air rule, the Chamber disclosed a “possible conflict of interest by an NRDC official” who was later employed by the agency. “That official filed the original lawsuit against the EPA, which instigated the rulemaking process on mercury,” the Chamber said. “He then had oversight over the settlement of that lawsuit, which was ruled in NRDC’s favor as a senior official with the EPA.”
That official, now back at the NRDC, reportedly recused himself from involvement in the mercury settlement, the Chamber said. “However, questions remain regarding his oversight of EPA’s air office during the settlement of the lawsuit and promulgation of the regulation.”
“Any evidence of impropriety could open up a Pandora’s box into the relationship between the NRDC and the EPA,” said William Kovacs, Chamber vice president of environmental affairs. “The circumstances surrounding their relationship raise significant questions about a possible conflict of interest and the rulemaking’s transparency and validity,” he said.
Regarding the mercury proposal, the Chamber said it supports a cap-and-trade policy that would allow flexibility in achieving emissions targets to improve air quality.
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Mining products comprise large portion of rail freight in 2003
Coal, metallic ores and nonmetallic minerals accounted for more than half of revenue freight tons originated for U.S. railroads in 2003, according to Association of American Railroad (AAR) data.
Coal, the largest single commodity transported by railroads, comprised 43.6 percent of the total of 1.799 billion tons of all freight traffic. Metallic ores accounted for 1.8 percent and nonmetallic minerals for 7.4 percent.
The major categories of metallic ores carried by railroads are iron ores, bauxite and aluminum ores, miscellaneous ores, zinc and lead ores, copper ores, and manganese.
Primary metal products accounted for 3 percent; and stone, clay and glass products for 2.8 percent.
More than half of railroad coal shipments are carried in unit trains, large groupings of rail cars assigned to a specific, non-stop route between a mine and a power plant.
AAR has posted these and other statistics at www.aar.org/PubCommon/Documents/AboutTheIndustry/Statistics.pdf.
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Environmental group withdraws appeal of Pogo permit; nearly 200 workers return to work
An environmental group this week withdrew an administrative appeal of a crucial permit at the Pogo gold project, allowing nearly 200 workers to return to the job.
The Pogo mine, operated by Teck-Pogo Inc., is a large development near Delta Junction that is providing hundreds of crucial jobs during construction and operations. Although the project had received all of its major permits, including the most recent one in March from the Environmental Protection Agency (EPA) allowing Pogo to discharge treated wastewater, the Northern Alaska Environmental Center (NAEC) decided to challenge the EPA permit last month.
According to the Anchorage Daily News, the action “blindsided the company, state and federal officials and even some environmentalists.” As a result, Teck-Pogo started laying off its force of over 300 workers.
There was a subsequent outpouring of support in Alaska and elsewhere for the project and criticism of the environmental group’s actions as spurious. According to the Anchorage Daily News, after appealing the Northern Center became the target of pickets and threatening phone messages. “Few conservationists were willing to criticize their counterparts publicly, but several indicated privately that the Northern Center may have stumbled and hurt the group’s credibility,” a story in the paper said.
“The message from the public was loud and clear: Open the mine,” said State Rep. Nick Stepovich (R-Fairbanks).
In exchange for dropping the appeal, Teck-Pogo Inc. agreed to additional monitoring of a nearby salmon-producing river, to fund a fish study and to convene a stakeholder group to watchdog Pogo’s development, according to Gov. Frank Murkowski (R).
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Newsbits
Stephan T. Haynes has been named vice president-corporate finance for American Electric Power (AEP). He is responsible for planning and executing the company’s financing programs, which include debt, bond and equity instruments, as well as banking relationships . . . . Freeport-McMoRan Copper & Gold Inc. reported successful drilling results at its “Deep MLZ (Mill Level Zone)” underground exploration target in Indonesia. PT Freeport Indonesia’s 2004 exploration drilling program is targeting skarn and porphyry mineralization below its MLZ ore body . . . . Ten outstanding Wyoming teachers have been named recipients of the 2004 Arch Coal Teacher Achievement Award. Nearly 500 teachers, students and guests attended the awards ceremony at Carey Junior High School in Cheyenne, WY. Each recipient received an unrestricted cash award of $2,500 from Arch Coal, which operates one of the nation’s largest coal mines, Thunder Basin’s Black Thunder Mine, located near Wright, WY . . . . Jamie Sokalsky has been promoted to executive vice president and chief financial officer of Barrick Gold Corp. Sokalsky previously was senior vice president and chief financial officer of the company since 1999. He joined Barrick in 1993 as treasurer . . . . Cleveland-Cliffs Inc. has appointed John N. Tuomi as vice president-operations services, where he will be responsible for corporate materials and energy procurement, operations improvement, information technology, environmental management and quality assurance. He has been with the company since 1996 . . . . Glamis Gold Ltd. said it is making “excellent progress” at its El Sauzal project in Mexico, which is now expected to start up early in the fourth quarter of 2004, “well ahead of the original schedule.” The company also said it has fully permitted its Marlin project in Guatemala, where construction has already begun . . . . Randy L. Parcel will join Royal Gold Inc. on June 1 as vice president and general counsel. He will have primary legal responsibility for preparation of royalty acquisition and royalty financing documents. Most recently, Parcel was managing partner of the Denver office of Perkins Coie LLP.
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