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MiningWeek Online
August 6, 2004 Volume 10, Issue 31
This Week's Issue:
MINExpo® update: Guinn at opening ceremony; housing reservation deadline August 13
Nevada Gov. Kenny Guinn, whose state ranks third in world gold production and is hosting MINExpo 2004® Sept. 27-30 at the Las Vegas Convention Center, will help kick off the show at the opening ribbon cutting ceremony.
The ceremony will take place at 9 a.m. on Monday, Sept. 27, in the Grand Lobby of the convention center. Guinn, NMA President and CEO Jack N. Gerard and other officials will formally open the show and welcome an expected 35,000 attendees and 1,300 exhibitors to the world’s largest mining exposition.
MINExpo is a showcase of state-of-the-art mining equipment and 21st century technologies and services covering every aspect of mining, from exploration and development to construction, extraction and reclamation. It also features 20 educational sessions focusing on the latest information in such areas as underground and surface mining, reclamation, safety and health, processing, environmental issues and other critical topics.
Those planning to attend the show should be aware of several deadlines. The cutoff for early bird registration is today, Friday, Aug. 6 – the registration fee after that date goes up $75, to a total of $175. You can register online at www.minexpo.com or can fax your registration form to 301-694-5124 (credit card payments only).
The housing registration deadline is only a week away – Friday, Aug. 13. Hotel reservations can also be made on the show’s website, by mail to the MINExpo INTERNATIONAL® Housing Center, 3150 Paradise Road, Las Vegas, NV 89109-9096, or by fax to 1-702-386-7818. Many of the hotels in the MINExpo room block have sold out, so be sure to check the MINExpo website for a list of the hotels still available and newly reduced rates at Bally’s and Paris hotels.
Exhibitors have a number of deadlines upcoming in late August and early September for exhibit-related items and should check their Exhibitor’s Services & Marketing Manual, either in hard copy or online, for specific dates.
Gov. Guinn is among several notable officials expected at MINExpo. Others include Interior Secretary Gale Norton, who will present the annual OSM and BLM reclamation awards at a luncheon on Sept. 27; and David Lauriski, assistant secretary of labor for mine safety and health, who will present the “Sentinels of Safety” awards at a breakfast on Tuesday, Sept. 28. Also, several members of Congress, as well as state legislators, are expected to attend.
For more information, visit www.minexpo.com.
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World Bank officials say they will continue funding exploration and development projects
Although broadly agreeing that the recommendations included in the Extractive Industries Review (EIR) represented a “balanced way forward”, the Board of the World Bank essentially rejected recommendations that the Bank no longer continue funding energy exploration and development projects around the world.
The Bank Management Response to the EIR had emphasized that the Bank’s involvement in energy and mining projects would enhance basic environmental, human rights and wealth distribution aspects of the programs it funds in developing countries and would promote sustainable development in those nations. NMA has actively campaigned against these EIR conclusions in comments on the bank’s response to the report submitted in mid July.
Responding to the EIR this week, bank officials opted for more moderate policy reforms than those contained in the document, pledging to pay more attention to whether projects are helping alleviate poverty and human suffering. The bank also agreed to set up procedures to track poverty reduction associated with the projects, to look at the overall quality of governance in host countries and to greater transparency in its project review process and promised to step up its commitment to renewable energy investment, among other things.
But the bank emphasized that the lack of access to electricity and economic development by billions of people in developing nations “underscores the need for our continued, but selective, engagement” in natural resource projects.
As NMA has pointed out, mining is an important element in improving the economies of developing nations and the communities in which projects are located. The actions by the World Bank Board this week will ensure that mining can continue and expand while maximizing the industry’s contribution to the sustainable development goals of each nation.
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Reid asks BLM to phase in planned 25 percent mining claim fee increase
Sen. Harry Reid (D-NV) has asked the Bureau of Land Management (BLM) to phase in over five years a planned 25 percent rise in mining claim and maintenance fees “to help curb the damaging effects” an immediate increase would have on the mining industry.
“Mining is the backbone of Nevada’s rural economy, and a 25 percent increase all at once would be a large blow to the industry,” Reid said in a letter to BLM Director Kathleen Clarke. “I am suggesting a commonsense solution to this problem that will cushion the blow and allow miners to budget over a reasonable amount of time.”
BLM notified the public of the proposed change in June, saying the cost of establishing and maintaining claims to mine federal lands would go up Sept. 1 from $100 to $125, and a one-time location fee will increase from $25 to $30 per claim. According to statute, the agency must adjust fees every five years according to the Consumer Price Index; however, fees have not been adjusted since 1993.
Because mining companies can hold up to several thousand claims, the costs from an increase could be substantial. Susie Mason, secretary of the Nevada Landmen’s Association and a 31-year mining industry employee, said imposing the 25 percent increase during the middle of most companies’ budget year “is staggering,” and that phasing in the increase “would certainly lessen the blow.”
David Quick, a BLM spokesman, told the San Francisco Chronicle the agency was reviewing Reid’s letter and could not yet comment. He added that it was not clear whether the law would allow the fees to increase gradually.
NMA has opposed the proposed BLM increase since it was included in the Interior Department’s budget request earlier this year, and is continuing to look for opportunities to address the issue as Congress works on the agency’s appropriations bill.
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DNR scientists discover highest concentrations of gold ever found in Minnesota
Scientists from the Minnesota Department of Natural Resources (DNR) say they recently discovered the highest concentrations of gold particles ever found in the state during routine soil sampling near Soudan, in northeastern Minnesota about 80 miles from Duluth.
Cautioning that the discovery doesn’t mean that significant gold deposits exist, Harvey Thorleifson, director of the Minnesota Geological Survey said, “I have worked in major gold mining districts in Canada and these results are as impressive as anything I’ve ever seen there.”
He added the findings could result in serious exploration of the region by mineral mining companies. “With several years of effort by industry, major economic and employment opportunities could result,” he said.
Gold has long been known to exist in the region, but has never been explored or mined on a significant basis. Dave Dahl, a DNR geologist who worked on the soil testing with Thorleifson and other scientists, said finding gold in northeastern Minnesota is not far-fetched – he pointed out that one of the state’s Canadian neighbors, the province of Ontario, is one of the world’s gold mining centers. Minnesota’s Iron Range and Ontario’s gold mining areas share similar geology, he said.
Among other things, Soudan is home of the University of Minnesota’s Soudan Underground Laboratory, located at the site of the first iron mine in the state.
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Connaughton underscores Bush coal commitment; Woodley encourages remining in separate Ohio visits
Council on Environmental Quality (CEQ) Chairman James Connaughton underscored President Bush’s commitment to coal, while U.S. Army-Civil Works Assistant Secretary J.P. Woodley Jr. encouraged remining abandoned coal mines in separate visits to Ohio last week.
Joined by Mark R. Maddox, the Department of Energy’s acting assistant secretary for fossil energy, Connaughton said President Bush is committed to funding clean coal technology and ensuring the future of coal as the nation’s primary energy source. He was in Beallsville to address local miners and energy officials at American Energy Corp.’s Century Mine.
“Coal is the backbone of the American economy,” Connaughton said. “And clean coal is the backbone of a healthier economy.” Maddox praised the administration’s Clean Coal Power Initiative (CCPI), which has funded clean coal technology (CCT) demonstration projects.
Connaughton said CCT could create a $50 billion market for clean coal by giving companies the incentive to use coal instead of other energy sources. He said while Bush is committed to having a diverse group of energy sources for the nation, the president also believes coal should remain the dominant one for the foreseeable future.
“Coal is the price anchor, the reliability anchor and the national security anchor,” Connaughton said. He added that utilities are in favor of coal’s dominant position because of the stability it provides energy markets.
Maddox said the president will increase clean coal technology funding from $1.6 billion to $3.7 billion through 2011.
Woodley, meanwhile, was in Columbus for an “opportunity to cooperate in a partnership with the U.S. Department of the Interior’s Office of Surface Mining (OSM) to encourage the remining of abandoned coal mines. Because of the great potential associated with the remining process, I wanted to see for myself what opportunities existed,” he said.
Like Connaughton, he stressed the administration “firmly believes that it is critical for this nation to have a diversified, domestic fuel supply for electricity generation, and Ohio coal plays a very important role in this regard.” He added that remining would help mitigate acid mine drainage and heavy sediment loads from abandoned coal mines from bygone eras, an important stream quality problem in Appalachia.
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Norton says copper is ‘strategic resource’ during tour of PD technology center
Interior Secretary Gale Norton said copper is a strategic resource for the United States during a tour of Phelps Dodge Corp.’s (PD) Process Technology Center near Stafford, AZ, with Rep. Rick Renzi (R-AZ) last week.
Norton told PD employees that many of her colleagues in Washington don’t realize how many products used each day are made from materials that must be mined. She also emphasized the importance of balancing the requirements of environmental stewardship with the need to produce the raw materials needed in our modern world.
Renzi said the tour was undertaken because “this is the premier research and technology center in the world for copper and ore extraction. I wanted to be sure Secretary Norton had the opportunity to come here and see it firsthand.” PD President and Chief Operating Officer Timothy R. Snider accompanying the officials during the tour of the facility.
The PD center employs approximately 85 engineers, scientists and technicians. The employees of the center are targeting the best and most rich (in copper ore) areas in the world, Renzi said.
“This isn’t just blasting and hoping to get a good ore vein,” he said. “This is simulation mining done so the company can chase and mine the ore,” he told the Eastern Arizona Courier.
The mission of the employees is to develop, adapt and implement safe, environmentally sound, low-cost metal and mineral extraction technology. By doing this, Phelps Dodge will be able to continually improve its existing operations, provide changes across the business and ensure effective reclamation and remediation in anticipation of facility closures at the end of the mine’s life. “We have a lot of ore with only a small amount of copper in it, so we have a lot of ore to move,” mining communications manager J. Kimball Hansen said. “The center was designed to improve the efficiency of our process.”
The researchers also provide effective tools, measurements and data to support technology development and implementation. The staff is being developed to achieve technical excellence, create value through technology and provide relevant, accurate and timely technical information to Phelps Dodge staff and operations.
Phelps Dodge spends between $15-$20 million on process development.
The technology center’s vision is to become the world leader in the development and commercialization of value-adding copper extraction technology.
Samples of ore are brought in from all over the world -- primarily South America, but also Africa and Australia -- to be tested at the facility seven miles east of Safford.
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NMA Honorary Director Gordon Bonnyman dies in Tennessee
George Gordon Bonnyman, 84, an NMA honorary director and retired chairman of the Blue Diamond Coal Co., died July 30 in Knoxville, TN.
Mr. Bonnyman was born in Knoxville and graduated from Princeton University. He was awarded numerous medals, including a Bronze Star with a cluster and a Chinese Medal of Merit for service in the U.S. Army in the Pacific theatre during World War II.
He began his career with Blue Diamond in 1946 as assistant engineer and assistant general manager, eventually becoming president in 1953. Blue Diamond in 1998 became part of James River Coal Co., one of the leading coal producers in Central Appalachia. Mr. Bonnyman served on the Board of Directors for the National Coal Association (NCA), a predecessor organization of NMA, until 1991, at which time he became an honorary director.
Mr. Bonnyman is survived by his wife, Isabel; daughters Isabel Stanley and Anne Bonnyman; sons Gordon Bonnyman Jr., Alexander Bonnyman and Brian Bonnyman; 12 grandchildren; and four great-grandchildren. Services were held Aug. 3 at Sacred Heart Cathedral in Knoxville, with internment at Highland Memorial Cemetery.
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Court sets Aug. 13 deadline for MT response to environmentalists’ attempt to remove mining initiative
The Montana Supreme Court has set a deadline of Aug. 13 for state response to a petition by an environmental group seeking to stop an initiative scheduled to be on the November ballot that would overturn Montana’s ban on cyanide heap leach mining.
The court still has not said whether it will accept the case filed last month by the Montana Environmental Information Center and a landowner, which alleges the Nov. 2 ballot measure seeking repeal of the ban in new gold and silver mines is so broad it is unconstitutional.
Supporters of the initiative, I-147, are confident of the initiative’s wording. “We took great care to make sure we were in full compliance with the law,” said Tammy Johnson, campaign manager for Miners, Merchants and Montanans for Jobs and Economic Opportunity for I-147. “We’re confident the wording of I-147 will hold up to legal scrutiny.”
I-147 would repeal a 1998 law, the result of another initiative (I-137) that banned cyanide mining, and would also mandate some environmental protections that were available when the technique was last legal, but not specifically required by law.
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Limestone trade on Great Lakes soars to highest level in six years
Shipments of limestone on the Great Lakes reached their highest level in six years during July, according to the Lake Carriers Association (LCA).
Loadings totaled 5.1 million net tons, an increase of 22 percent compared to a year earlier and 12 percent compared to the month’s five-year average.
“While the totals reflect strong demand for both aggregate and metallurgical stone, rising water levels also played a role,” LCA said. “The Lakes are anywhere from two to 13 inches above their levels of a year ago. As a result, some vessels in the stone trade are carrying as much as 1,400 tons more each trip. The largest quarries can load 45-50 cargoes in a month, so the deeper drafts are contributing to the upturn.”
For the year, the Great Lakes limestone trade stands at 19.3 million net tons, an increase of 31 percent compared to the same point in 2003. On a five-year average basis, the trade is 14 percent ahead of the pace.
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Newsbits
Environmental Protection Agency Administrator Bruce Leavitt has named Rich McKeown as his chief of staff. He has served as the agency’s senior counselor since Leavitt’s appointment in November 2003 and replaces Tom Gibson, who steps down Aug. 7.…Newmont Mining Corp. has appointed Russell Ball as vice president and controller. Ball has been with the company for more than 10 years in various audit, accounting and financial positions, and previously was the Group Executive for Investor Relations .…American Electric Power has named Lionel L. Nowell III, senior vice president and treasurer of PepsiCo Inc., to its board of directors….Cleveland-Cliffs Inc. recently announced tentative contract settlements with the United Steelworkers Union, representing approximately 2,000 hourly employees at its four managed iron ore mines in Minnesota and Michigan.…Peabody Energy has named Christina A. Morrow as Director of Investor Relations and Assistant Treasurer. She was previously Senior Manager of Investor Relations and has been with Peabody since 2001.
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