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MiningWeek Online
August 20, 2004 Volume 10, Issue 33
This Week's Issue:
Kerry plan ‘important recognition’ of coal’s
essential role in economy, Gerard says
Reacting to Sen. John Kerry’s declaration this week that he wants to spend $10 billion to “guarantee the future of clean coal in America’s energy supply,” NMA President and CEO Jack N. Gerard said the proposal is recognition that coal is an essential U.S. energy source necessary for economic growth. But for Kerry’s investment plant to fully realize its promised potential, he said, “it must be internally consistent.”
“Sen. Kerry’s recently released plan for coal offers important new specifics on how coal can be better utilized,” Gerard said. “Particularly welcome is his first explicit repudiation of the Kyoto treaty, which would pose serious threats to the coal industry and the mining communities it supports. In contrast to his past statements of support for binding international agreements to address climate change, his coal technology investment plan now acknowledges the unacceptable hardships that such a treaty could impose on coal mining and on the U.S. economy.”
Gerard said his plan is an “important recognition that coal is an essential source of energy vital to our nation’s economy and that utilizing the nations most abundant energy source must be encouraged rather than discouraged. Support for clean coal technologies will continue the impressive reductions in emissions we have seen from coal-generated power.”
For the Kerry investment plan to fully realize its promised potential, however, “it must be internally consistent,” Gerard added. “Rather than support the development of one technology, we must continue to pursue multiple technologies that will be suitable in a wide variety of circumstances -- ones that will be dictated by the marketplace rather than by regulators. We must ensure that the same commitment to technology also leads our efforts to control mercury and other emissions. Arbitrary caps on carbon emissions, for example, have no place in a policy that rightly places its faith in technological progress.”
Gerard concluded: “Clean coal technologies are valuable, but only if coal can be mined efficiently and cost-effectively. Punitive regulation of mineral and coal mining, nuisance litigation designed to frustrate mining, and permitting delays that stifle investment and production are all fundamentally incompatible with coal utilization and the vision expressed in Sen. Kerry’s plan. Finally, a rational energy policy will depend on a frank recognition of the progress already achieved in air quality and a determination to help inform Americans of this progress rather than mislead them about it. “
“Sen. Kerry must now complete the journey he has started.”
Meanwhile, leaders in West Virginia’s coal industry, where both Kerry and Bush campaigned this week, said they were also reviewing Kerry’s statement, and trying to reconcile it with the senator’s voting record on coal issues. “There’s a concern that an awful lot of what’s in this seems to be a dramatic change from the behavior Sen. Kerry has had in the Senate and whether it’s genuine,” said Bill Raney, president of the West Virginia Coal Association.
“A press release is one thing, and walking where you talk is another. Our guys want someone who is saying we want you mining coal in West Virginia and America. President Bush has done that. He’s done everything he possibly can to make sure these coal miners continue to work,” Raney said.
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2004 election ‘pivotal,’ NMA Elko editorial says; Gerard rebuts critical Post Article
Election 2004 is “shaping up to be the most pivotal one for mining communities” in recent memory, NMA President and CEO Jack N. Gerard wrote in a guest editorial that appeared in the Aug. 14 Elko Daily Free Press.
Meanwhile, an article on the Appalachian coal industry in the Aug. 17 Washington Post belabored “unfounded accusations that the [Bush] administration improperly favors Appalachian coal mining, yet found . . . little space to inform readers of the economic and judicial factors that are far more relevant to the resurgence of the region’s coal industry, or to the environmental progress the industry has made,” NMA responded this week.
In the Daily Free Press editorial, Gerard wrote, “Seldom if ever have two presidential candidates presented voters with a starker choice in how they should view public lands resources,” he said. “Should they be viewed primarily for value they provide to our economic wellbeing, or should they be viewed primarily as of value for our aesthetic enjoyment?”
Gerard noted both candidates support manufacturing employment in states like Nevada, where mineral mining alone provides 9,000 high wage jobs directly and supports the jobs of many thousands more. Both also insist environmental protection must accompany mineral extraction.
But a close examination of the candidates’ records and policies reveal a sharp difference on how each views mineral mining, Gerard said. “Just last year, President Bush removed a restriction on mining unjustifiably imposed by the previous administration that threatened to devastate mineral operations on federal lands.” The so-called millsite rule, Gerard said, demonstrated the president “understood the importance of mining to Nevada’s economy and to the rural West. He also restored balance to federal land management regulations, making them consistent with recommendations from the National Academy of Sciences.”
Within the past week, Gerard noted, Sen. Kerry proposed imposition of a new $600 million fee on mineral operations, with a plan to use the money to improve tourism in national parks. “This may be good news to anyone interested in leaving a mining job to earn far less clearing nature trails. But it is bad news for many others whose mining job supports a family or whose job or business relies on mining wages.”
Gerard pointed out that an independent analysis of a virtually identical proposal “found a fee like the senator’s would cost up to 44,000 mining jobs in the western U.S. When economists at the University of Nevada examined the fee’s local impacts, they concluded it would destroy up to 20 percent of Nevada’s mining industry. Not only would an enormous new tax on mining operations drive the industry and the jobs it supports offshore, it would also increase our country’s reliance on foreign powers for minerals we have in abundance.”
“So, the difference between the candidates’ views on mineral mining is clear – and explains why this election may finally be the crucial one the pundits always promise us,” Gerard concluded. “The choice is yours.”
In a letter rebutting the Post article, Gerard said, “The demand for electric power, not the White House, is the decisive factor that favors coal as an affordable and reliable fuel. Coal production this year is on track to break a record. A recent Standard & Poor’s study shows that the regulatory bottlenecks to greater coal production belittled in your story are in fact significant obstacles to meeting rising demand and avoiding brown-outs.”
Gerard noted the Post “failed to mention that a Federal Appeals Court upheld current procedures precisely because they were judged legal under Federal laws. You ascribe sinister motives to a rule change that merely adopted a long-standing definition used by EPA (Environmental Protection Agency) to ensure consistency with the (U.S.) Army Corps (of Engineers).”
Gerard pointed out that supplying Americans with low-cost, coal-based electricity would obviously “require earth to be disturbed. But federal law requires that mined land is restored to a productive state – and to date more than 2 million acres nationwide have been reclaimed.”
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Kennecott Minerals to improve major road crossings on Salmon Trout River tributary
Kennecott Minerals Co. has announced a stream crossing replacement project that will “substantially improve the natural glow of a tributary to the Salmon Trout River and its ability to sustain a healthy ecosystem.” The project is located approximately 10-to-12 miles west of Big Bay, MI.
The company said the project is the result of its efforts in conducting baseline environmental studies to evaluate existing conditions in the general area for the potential development of an underground nickel/copper mine on the Yellow Dog Plains. Kennecott said a series of environmental baseline studies are being conducted to document the health of the area watershed. “Studies show the eroding stream crossing continues to contribute sediment into the waterway from precipitation and snow melt runoff.”
Kennecott said it has worked closely with several key local conservation organizations to assess the crossing and potential improvements that would benefit the waterway environment. “Recommendations from these groups have been incorporated into the road construction plan and stream crossing improvements that Kennecott Minerals will undertake.”
An engineering study of the crossing, commissioned by Kennecott Minerals, was used to create a new design that will “significantly minimize sediment from entering the waterway,” the company said. “The new crossing will replace an aging, undersized culvert with a new larger elliptical design and improve the road condition to reduce erosion.”
Kennecott Project Manager Jon Cherry said, “As the private land-owner on either side of the crossing, we believe this road crossing improvement is necessary for the general upkeep of the road, but it will have the very important result of improving the health and vitality of the headwaters of the Salmon Trout River. We’re very pleased to have the opportunity to work with environmental groups to determine the best approach for improving these water resources,” he said.
Kennecott is exploring the Eagle Project in Michigan’s Upper Peninsula, a high value nickel/copper deposit located about 25 miles northwest of Marquette. The company is currently conducting environmental, economic and engineering studies to determine the feasibility of developing the deposit into an underground primary nickel mine, which would be the only such facility in the United States. The company said preliminary evaluations estimate the capital investment for the project will exceed $100 million.
The company is working closely with a state Department of Environmental Quality work group, consisting of representatives from local and state government bodies, conservation groups and the mining industry. The group has met five times thus far and is slated to meet again in Marquette Aug. 23-24 before forwarding recommendations on establishing state underground mining regulations to the state legislature.
Work group member Michelle Halley, a Marquette attorney with the National Wildlife Federation, said she feels the group has made good progress on “bare bones” issues such as permits and environmental impact assessments. “Overall, I think things are going well,” she told the Marquette Mining Journal. “We can live with this.”
Cherry told the Mining Journal good regulations are also good for the mining industry. “From Kennecott’s perspective, we’re very pleased with the progress of the work group.”
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DOE’s UCR program awards $3.4 million to 22 universities in 18 states
The Department of Energy’s (DOE) 2004 University Coal Research (UCR) Program has awarded $3.4 million in fossil energy research grants to 22 universities in 18 states.
The funds will be used to explore the “best ways to use clean coal technology while protecting the environment,” said Energy Secretary Spencer Abraham. “The selected projects are an integral part of President Bush’s Clear Skies Initiative, and focus on enhancing clean energy.”
The 2004 projects cover a wide range of research areas, including developing new systems and capabilities to improve performance and reduce the costs of existing advanced power systems; developing materials to detect fossil fuel gases under high pressures and temperatures; finding new carbon dioxide and/or hydrogen separation technologies; and designing new turbine combustors with improved stability and emissions.
Seven of the concepts are entering their first phase of research, while four are continuing research from last year. Of the four in Phase II, research will be focused on improving the overall efficiency of producing hydrogen, removing mercury by improving barrier filters, and improving the conditions under which solid oxide fuel cells operate.
The grants include nearly $1 million in cost-share funds from the universities, and the research will target the President Clear Skies, Global Climate Change and FutureGen Initiatives.
For more information, visit www.fossil.energy.gov/news/techlines/2004/tl_ucr_awards_04.html.
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Mine the Vote gears up!
It may be the height of summer, but there are only 74 days remaining until Election Day – and the stakes are high.
Voters who work in the mining industry across the country have a clear choice to make on the representatives who will decide the important issues of national energy and minerals policy. As candidates plead their cases and hit the campaign trail, now is the time to maximize your civic participation and educate yourself on the candidates’ positions by being a part of Mine the Vote 2004.
Developed by NMA, Mine the Vote 2004 is a simple program for association members and their employees to use. This technology-driven online tool allows users to register to vote, apply for absentee ballots, find polling locations, research candidates at all levels of government, and learn more about the public policy issues important to America’s mining industry. Promoting this simple website and valuable resource to the mining industry will make an impact.
By significant margins, surveys consistently show that employees prefer to receive election-related information from their employers. This information is viewed as more balanced than communications from unions, television news reports and paid campaign advertising. Just consider the fact that voter registration and voter turn-out has increased by 14 percent when employers encourage their workers to learn more about the issues and fully participate on Election Day. In this day of record-close elections, every vote does matter and can shape the direction of mining policy for years to come.
To make sure you organization is doing everything to engage and encourage your employees to fully participate in this year’s election, visit the Mine the Vote 2004 website at www.minethevote.org or contact NMA’s Marc Ross at mross@nma.org or (202) 463-2664.
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Marc Ross joins NMA in grassroots position
Marc Ross has joined NMA as its new Director of Grassroots and Constituent Relations and will head up the association’s Mine the Vote voter education and turn-out effort and its ACT Online grassroots communications program.
“This is a crucial year for mining. Our employees, their families and all those who support the role of mining in our economy have the opportunity to make their voices heard through Mine the Vote and ACT. NMA is fortunate to have someone of Marc’s experience and enthusiasm to head up these two important programs,” NMA President & CEO Jack Gerard said this week.
Prior to joining NMA, Marc directed the grassroots advocacy program of the American International Automobile Dealers Association and was with the DCI Group, a consulting firm specializing in grassroots mobilization and communications. He is an Ohio native and a graduate of Bowling Green State University,
For more information about Mine the Vote and ACT, visit www.minethevote.org and www.nma.org.
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Glamis receives final construction permit at Marigold Mine in NV
Glamis Gold Ltd. said the Nevada Division of Environmental Protection has formally approved the modification to the Marigold Mine Water Pollution Control Permit.
The company said the action fully permits it to construct the Cell 12 leach pad, barren solution process pond and to begin construction of the waste rock dumps as described in the Millennium Project Supplemental Environmental Impact Statement approved earlier this year.
Glamis said development of the Target 1 pit, where the latest expansion phase will begin, is already underway, and pre-stripping activities and construction of the access road to the Cell 12 leach pad are progressing. Initial ore mining is planned to coincide with the commissioning of the first phase of the new leach pad in September, Glamis said.
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Under environmental group pressure, Montana DEQ orders Kendall Mine to stop pad reclamation
Canyon Resources Corp. and its subsidiary, CR Kendall Corp., this week said they were disappointed the state of Montana, “under pressure from an environmental group, has required the company to halt reclamation at its Kendall Mine northeast of Lewistown.”
Jim Volberding, project manager of CR Kendall, said the environmental group – the Montana Environmental Information Center (MEIC) – at first accused the company of not wanting to reclaim the site, but is “now doing everything it can to make sure reclamation can’t continue.” The Montana Department of Environmental Quality (DEQ), he said, “drew up this reclamation plan, walked it through the public process, and the plan was approved by operation of law. Now they tell us that if CR Kendall implements the plan, they’ll cite the company and claim it’s in violation of the plan.”
The Kendall Mine produced gold and silver from 1988 through 1998. Reclamation was conducted on an ongoing basis while the mine was operating, with total or partial backfilling of five of the six pits from which ore was extracted. As mined areas and non-ore rock piles were completed, recontouring, topsoil spreading, and revegetation were accomplished. Over the last several years, native grasses and more than 200,000 trees and shrubs have been planted and reclamation has been completed on three quarters of the disturbed area of the Kendall mine site.
CR Kendall said in 1997, the two heap leach pads were rinsed of residual cyanide by continuous circulation of water and a treatment plant was installed to reduce dissolved metals. The company installed a collection and treatment system for low volume water flows from disturbed areas which had minor exceedance levels of some constituents so that none of this water would leave the mine site. “These waters are pumped to a lined containment pond where they are stored for irrigation application to revegetation areas during the growing season. In fact, because of the long-term drought in central Montana, local ranchers have been using some of this contained water for their livestock,” the company said.
“As a result of these water management activities and the lithology (limestone) and chemistry (no sulfides) of the ore and non-ore rock, there is absolutely NO residual cyanide from the modern mining activity or acid-generating capability at the Kendall site,” CR Kendall said.
The reclamation work remaining at the site involves recontouring and capping the leach pads with 36 inches of clay and soil prior to revegetation. “This work should significantly reduce the amount of incident precipitation which will penetrate the pads and, therefore, the amount of water that will need to be stored and applied to irrigation,” the company said.
However, the DEQ faxed a letter to Kendall on Aug. 6 saying if work on capping the pads did not cease, the agency would cite the company as being in violation of its permits. CR Kendall says the letter came following pressure on DEQ from MEIC.
Approximately $8 million has been expended on reclamation activities at the Kendall minesite, Canyon Resources said. In addition, the original $1.869 million bond cash required by the Montana Department of Environmental Quality for the site’s reclamation has been deposited with the DEQ for its use on further reclamation at the site.
The company said it has submitted a cost-effective closure reclamation plan to the DEQ that will ensure the site remains environmentally stable over the long run.
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PDM selected for prestigious R&D award as technological innovation
The TEOM® Personal Dust Monitor (PDM) has been selected by R&D Magazine as one of its “R&D 100” award winners, given to the year’s most significant technological innovations. The award will be presented at the magazine’s 42nd annual awards banquet, Oct. 14, in Chicago.
The PDM is the result of several years of partnership between NMA; the National Institute for Occupational Safety and Health (NIOSH); Rupprecht & Patashnick Co. Inc. (the manufacturer); Bituminous Coal Operators’ Association Inc.; and the United Mine Workers of America (UMWA). The groups have been working cooperatively toward development of a mine-worthy continuous dust monitor that could be worn by miners and provide real-time data.
The devices were initially successfully tested in the laboratory and by NIOSH in underground mines. Over the next 12 months, additional laboratory and in-mine testing will be undertaken to document the PDM’s precision, reliability and mine worthiness. Widespread use of PDMs can be expected to generally improve the dust sampling and control landscape, empowering miners and operators to take real time corrective action when circumstances warrant, and generally improve health conditions underground, if all testing is successful.
An ad recognizing the award will appear in the September issue of R&D magazine.
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Newsbits
Ian Atkinson has been named vice president-exploration and strategy, for Hecla Mining Co., effective Sept. 1. A senior corporate executive with more than 30 years experience in international exploration and mining management, Atkinson has been assisting Hecla as an independent management consultant on due diligence and exploration activities and auditing resource replacement data . . . . Peabody Energy has appointed Anne Wathen O’Donnell as senior counsel for Appalachia operations, and Mark L. David as senior counsel for generation development . . . . The Doe Run Co.’s 2003 annual report to communities has won the Business Communications Report award for publication excellence . . . . James M. King has been elected the 51st president of the Rocky Mountain Mineral Law Foundation at the organization’s annual meeting in Vail, CO . . . . Golden Cycle Gold Corp. has named Donald L. Gustafson has vice president-exploration, effective Aug. 1. He will remain a member of the board of directors with the title of director and vice president-exploration. He previously was involved with the company as a geological consultant.
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