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MiningWeek Online
August 27, 2004 Volume 10, Issue 34
This Week's Issue:
World copper demand growth reaching impressive levels, Legg Mason says
A year of rising prices and global demand recovery has brought U.S.-based copper producers “out of a five-year deep freeze in terms of profits and new mine development,” according to a new Legg Mason study.
Among the findings of the study:
- Asian industrial development is driving world copper demand growth from the 2 percent level of the past 30 years “to a 4 percent to 5 percent growth rate last seen during the postwar reconstruction of Europe and Japan;”
- Record U.S. debt-to-GDP (Gross Domestic Product), a current account deficit at 5 percent of GDP, social costs related to upcoming baby boomer retirements, and the open-ended war on terrorism “argue for a secular decline in the U.S. dollar, which would favor domestic commodity producers, in our view;”
- “Very low inventories and rising demand should continue;”
- Further dollar weakness “could result in several strong years for copper, as last seen in 1985-1994.”
The four major risks for copper miners, according to the study, are energy (“extracting copper from the low-grade ores of the southwestern United States is more energy-intensive than mining copper-rich ores in South America, Africa and Indonesia”); environmentalism (“One risk is that a return to prosperity in the U.S. copper industry could encourage regulators to raise their demands for new cleanup spending”); expropriation (“Whether by nationalizing copper mines or raising royalty rates, host governments have occasionally ‘changed the rules’ regarding foreign-owned copper production”); and exuberance (“Strong copper prices and growing access to capital could result in copper supply overshooting demand”).
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Vast majority of Elko poll respondents see devastating job losses from Kerry’s proposed mining fee
More than two-thirds of respondents to a poll on the Elko Daily Free Press web site believe a $600 million fee on hard rock mining companies proposed by Democratic Presidential Nominee John Kerry will cause “devastating job losses.”
As of Thursday, Aug. 26, 67.6 percent of those responding to the poll (www.elkodaily.com) said the proposed levy would cause devastating harm. Another 12.1 percent said it would result in some losing their jobs; while 20.1 percent believed there would be no significant impact.
According to the Kerry campaign, the $600 million would come from an 8 percent royalty, a doubling of the annual claims maintenance fee and revisions to the Mining Law governing sale of mineral rights. Monies raised by the proposal would go to maintenance in the nation’s parks and hoped-for jobs creation in associated service businesses.
The proposal was contained in a policy statement from the Kerry/Edwards campaign that was highlighted in an appearance earlier this month at the Grand Canyon. The policy paper (available at www.johnkerry.com/pressroom/releases/pr_2004_0809.html) is vague regarding the terms of the fee, and how it would be applied. It is also unclear if the fee is in addition to a $1 billion tax on minerals operations on public lands that Kerry outlined in remarks at Georgetown University in Washington, D.C., earlier this year (Mining Week, 4-9-04).
NMA has strongly criticized the proposal, noting the fee would cost between 18,000 and 44,000 jobs and result in a net loss to the federal Treasury of $400 million to $500 million, based on independent analyses.
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Nevada metal mines reduce total mercury emissions by 30 percent
Nevada’s metal mines reduced their total mercury emissions by over 30 percent between 2001 and 2002, according to a report by the Nevada Mining Association.
In 2001, Nevada mines produced 12,374 pounds of mercury; in 2002, the total declined to 8,706 pounds, the association said. In April 2003, Environmental Protection Agency (EPA) Region 9 Regional Administrator Wayne Nastri awarded the four largest metal mines in Nevada special Volunteer Mercury Reduction Program awards in recognition of their emission decreases.
According to a 2002 paper by Dr. Mae Gustin, Department of Environmental and Resource Sciences, University of Nevada-Reno, natural sources of mercury air emissions in Nevada are approximately equal to the total emissions from gold ore processing and coal combustion. According to EPA, that total in 2002 was 9,230 pounds.
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Montana Supreme Court to let voters decide fate of cyanide initiative
The Montana Supreme Court refused to decide a case challending the validity of of a November ballot initiative that would repeal Montona’s ban on the use of cyanide in mining practices. The Court said that it did not have the time to determine the constitutionality of the case now, with just over two months until the election, with the “care and forethought required.”
Tammy Johnson, of Miners, Merchants and Montanans for Jobs and Economic Opportunity, said of the Court’s action: “The Supreme Court is very clear. There is not an emergency and the people should be allowed to vote on it.”
I-147 was placed on the ballot after more than 30,000 signatures were collected in a massive statewide grassroots effort. For the first time in Montana’s history, enough signatures were gathered to qualify the initiative in all of Montana’s 56 counties (see Mining Week, 6-25-04).
The initiative would repeal the 1998 ban on cyanide heap leach gold and silver mining, and restore mineral leases lost since the passage of the ban. It would also include environmental protections not in place before the ban, including new restrictions on leach ponds, pads and tailings impoundments; the implementation of new contingency systems for leak management; and ongoing groundwater monitoring and management.
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University of Missouri-Rolla to lead national effort to improve mine health and safety
The National Institute for Occupational Safety and Health (NIOSH) has issued a $4.02 million grant for the University of Missouri-Rolla (UMR) to lead the Western U.S. Mining Safety and Health Training and Translation Center. The center is a consortium of universities, including the Colorado School of Mines, Montana Tech, and the University of Utah.
“The primary goal of the center is to reduce the number of injuries to miners through an integrated program of training intervention and translational research,” said Dr. R. Larry Grayson, chair and professor of mining engineering at UMR, who will serve as the center’s director.
The center’s goals include identifying the training needs of mining personnel; developing and conducting a training program for mine safety and health issues; providing qualified instructors and faculty across the West to train mining personnel in target areas; evaluating the effectiveness and impact of the training program; and publicizing and distributing project results.
“The mining industry will be able to use the center’s guidelines to assess the effectiveness of job safety training when hazardous situations occur,” added Grayson. The five-year program begins in September.
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U.S. CCSP report highlights climate research accomplishments and future research plans
A new report to Congress released this week by the U.S. Climate Change Science Program (CCSP) highlights recent research accomplishments and plans for future research necessary to “manage the risks and opportunities of changes in climate and related environmental systems.”
Our Changing Planet: The U.S. Climate Change Science Program for Fiscal Years 2004 and 2005, “documents our continued commitment to providing the public and decision makers with the best possible scientific information to address climate variability and change, and related aspects of global change,” said CCSP Director Dr. James R. Mahoney, who is also assistant secretary of commerce for oceans and atmosphere.
He said the study includes highlights of research on climate and global change, such as aerosols, temperature trends, and land cover changes. “This research will help decision makers and managers in the United States and other countries evaluate and respond to climate change,” Mahoney said.
The report includes highlights of recent research conducted or sponsored by the 13 federal agencies that participate in the CCSP, as well as research plans for Fiscal 2004 and 2005. It also describes numerous activities to promote cooperation between the U.S. scientific community and its counterparts worldwide, such as the July 2003 Earth Observation Summit. In addition, the report outlines how the CCSP is moving forward to implement the Strategic Plan for the U.S. Climate Change Science Program, which was released in July 2003.
The report is a requirement of the Global Change Research Act of 1990. More information is available at www.climatescience.gov/Library/pressreleases/pressrelease25aug2004.htm.
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Will you be a part of the democratic process this fall?
According to the Federal Election Commission, over the past 30 years Americans are less and less likely to vote and participate in the democratic process. The decline in the number of American voters has been supported by all types of excuses: “I don’t have time” or even “my vote doesn’t count!”
But the truth of the matter is, voting and your participation does matter.
Being active in this democratic country is simple, if you are a U.S. citizen and you are at least 18 years old, you can vote – pretty straight forward.
To ensure you are a part of the democratic process, in most states you need to register with your state or local election board 30 days before Election Day. In these seven states - Idaho, Maine, Minnesota, New Hampshire, North Dakota, Wisconsin, and Wyoming - you can register and vote on Election Day – how easy is that?
Already registered to vote? Then encourage your friends, family, coworkers and even strangers to register. Send them an email, give them a call or hold your own voter registration drive – let them know that their vote and participation matter.
The National Mining Association has done its part to ensure that the mining industry has an opportunity to be a part of the democratic process – visit www.minethevote.org to find out how simple it is to be a part of the democratic process.
Voting is the ultimate tool in the democratic process – don’t be left on the sidelines this election season – be a part of Mine the Vote 2004.
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Manatee County Commission approval moves Cargill closer to reopening mine
The Manatee, FL, County Commission this week approved Cargill Fertilizer LLC’s request for amendments to a development order and a master mining plan that will bring the company one step closer to re-opening the closed Wingate Creek phosphate mine.
Cargill agreed to 13 additional conditions, citing the company’s strong ethical commitments to the business and the community in which it operates. Cargill plans to extract phosphate rock on the 3,024 acre site for seven years, followed by another four years of reclamation. The operation is estimated to produce up to 2 million dry tons of phosphate rock annually, and create up to 120 full-time jobs, with an $18.8 million economic impact.
Cargill acquired Wingate Creek, which has been closed since 1999, from Nu-Gulf-Wingate Holdings in March 2004. The company immediately began working with county officials to transfer permits from the previous owner. Cargill hopes to reopen the facility by Sept. 15.
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Newsbits
Phelps Dodge Corp., the world’s largest publicly traded copper producer, has unveiled a new corporate web site. The new site includes easy-to-use information categories, a search capability and prominently displayed news items, as well as new colors and design. The web address is www.phelpsdodge.com . . . . Arch Coal Inc. said it has completed the acquisition of Triton Coal Co. for $364 million. The transaction was consummated following the recent decision by the U.S. District Court for the District of Columbia denying the Federal Trade Commission’s request for a preliminary injunction to block the deal, and the refusal by the Circuit Court of Appeals for the District of Columbia to issue a stay pending appeal. “We remain as enthusiastic as ever about the transaction, and we look forward to beginning the integration of the Black Thunder and North Rochelle mines immediately, said Arch Coal President and CEO Steven F. Leer . . . . Bucyrus International Inc. said it a new 495 series electric mining shovel is being shipped from the port of Milwaukee, WI, to Canada, for use at the Mt. Wright mine in Quebec. The shipment is the port’s largest manufactured export this year, the company said.
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