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MiningWeek Online
October 8, 2004 Volume 10, Issue 39
This Week's Issue:
Successful MINExpo INTERNATIONAL® takes place in Las Vegas; President Bush, Nevada Gov. Guinn welcome attendees
Among dignitaries at the opening ceremony for MINExpo® 2004, from left-to-right, are J. Brett Harvey, immediate past NMA chairman and president and CEO of CONSOL Energy; Nevada Gov. Kenny Guinn; James Roberts, president and CEO of Foundation Coal Corp. and newly elected NMA vice chairman; and Jack N. Gerard, NMA president and CEO.
The 61st version of MINExpo INTERNATIONAL®, the world’s most technologically advanced mining equipment and services show, drew thousands of attendees and more than 1,200 exhibitors to the Las Vegas Convention Center last week. Indications are it was one of the most successful MINExpos® in history, in terms of both the steady traffic that was generated, and the high quality of the mining professionals in attendance.
The show got off to a rousing start on Monday, Sept. 27 with a videotaped message from President George Bush, a surprise backdrop for the official opening ceremony. From his appearance on a giant screen in the LVCC lobby, the President sent his personal greetings to Nevada Governor Kenny Guinn, NMA President Jack Gerard “and everyone attending this fantastic exhibit of mining technology and know-how.”
In his brief message, the President emphasized mining’s important contributions to the manufacturing economy. “America’s mining industry brings good jobs to communities across America and provides the energy, minerals and equipment that are vital to our economic security and our way of life,” he said.
Gerard said MINExpo 2004 was the “best show ever,” and praised Gov. Guinn for his support of the mining industry in Nevada. “Governor Guinn is a leader among his fellow governors,” said Gerard. “He’s set the bar high for all of us in mining to create new jobs and to operate safely and in an environmentally responsible way.”
Guinn said mining has “played an exceptionally important role in the growth of our state. Mining has always been a part of the bedrock of this state’s economy.” Welcoming the show to Las Vegas, he noted MINExpo is a “showcase for the latest innovations we have for mining.”
John Brinzo, president and CEO of Cleveland-Cliffs Inc and the incoming chairman of NMA, saluted past chairman Brett Harvey, CEO of CONSOL. Also recognized for their contributions to MINExpo were the co-chairs of the program committee, Don Symonds, president of Norwest Corp. and Doug Hardman, president and CEO of J.H. Fletcher and Co.
Governor Guinn joined Gerard and MINExpo Program Chairman, Bill Tate, president and CEO of DBT American, for the official ribbon cutting ceremony. Tate told those present for the ceremony: “You’re about to see a show every bit as big and sprawling as the industry it represents.” He noted that for the 2004 show, “there has been a serious commitment to increasing the quality of the program sessions.”
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NMA Board elects Brinzo chairman, Roberts vice chairman
During its meeting in conjunction with MINExpo INTERNATIONAL® in Las Vegas last week, the NMA Board of Directors elected a new slate of officers, including John S. Brinzo as chairman and James Roberts as vice chairman.
Brinzo is chairman and chief executive officer of Cleveland-Cliffs Inc.; Roberts is president and chief executive officer of Foundation Coal Corp. J. Steven Whisler, chairman and chief executive officer of Phelps Dodge Corp., was elected chairman of the Audit and Finance Committee. Board members serve a two-year term.
“NMA is fortunate to have such distinguished industry leaders as John Brinzo, Jim Roberts and Steve Whisler serve as its elected officers,” said NMA President and CEO Jack Gerard. “We’re a stronger and better association because of their voluntary efforts and the participation of our entire Board and membership.”
Upon his election, Brinzo thanked outgoing Chairman J. Brett Harvey, president and CEO of CONSOL Energy Inc., for his leadership of the national trade association of the U.S. mining industry. “With Brett’s guidance NMA has become a stronger and more effective advocate for policies that are in the best interest of mining and the nation,” said Brinzo.
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Mining companies presented environmental, community outreach and reclamation awards at MINExpo®
NMA president Jack Gerard presents Interior Secretary Gale Norton with a crystal cube bearing the NMA logo at the ceremony.
Three mineral mining companies in Nevada, Oregon and Montana are winners of the 2004 Reclamation and Sustainable Mineral Development Awards. In addition, a dozen coal mining companies were recipients of the 2004 Excellence in Mining Reclamation Awards. All of the awards were presented last week by U.S. Secretary of the Interior Gale Norton at ceremonies during MINExpo INTERNATIONAL®.
The annual awards for outstanding environmental performance and community involvement were won this year by Round Mountain Gold Corporation’s Manhattan Mine in Round Mountain, NV; Connor Creek Mine in Baker County, OR; and Golden Sunlight Mine in Whitehall, MT. The awards are sponsored by the Department’s Bureau of Land Management (BLM). For more specific details about the hardrock mining awards, visit the BLM website at www.blm.gov.
Seven coal companies were named OSM’s National Award winners for their outstanding reclamation efforts and exemplary stewardship in compliance with the letter and spirit of the Surface Mining Control and Reclamation Act (SMCRA). They included: Farmersburg Mine of Black Beauty Coal, Co., a subsidiary of Peabody Coal Co., Vigo and Sullivan Counties, IN; San Juan Mine of San Juan Coal Co., a subsidiary of BHP Ltd., in Waterflow, NM; Tatum Mine of TXU Mining Co., Beckville, TX ; Guston Run Mine of Patriot Mining Co., a subsidiary of Anker Energy Co., in Pursglove, WV; Illinois Surface Operations of Consolidation Coal Co., Sesser, IL; Payne Mine of Shafer Brothers Construction, Pursglove, WV; and Jacobs Ranch Mine of Jacobs Ranch Coal Co., a subsidiary of Kennecott Energy Corp., in Wright, WY.
Three coal companies won OSM’s Good Neighbor Awards for successfully working with community stakeholders and surrounding landowners. The winners: Trapper Mine of Trapper Mining Inc., in Craig, CO; Freedom Mine of Coteau Properties, a division of North American Coal Co., in Beulah, ND; and Phoenix Surface Mines of Coal-Mac Inc., a subsidiary of Arch Coal, in Ragland, WV.
Winner of the 2004 OSM Director’s Award for outstanding reclamation efforts was the Ruffner Mine in Yolyn, WV, operated by Arch of West Virginia, a division of Arch Coal Co. In addition, OSM’s Special Award, recognizing exemplary reclamation using government financial reclamation contracts, was won this year by Coal Loaders Inc. with its partners, the Sportsmen Association of Greensburg and Hoffer Site, in Unity Township, PA.
For more information on the 2004 OSM Excellence in Surface Coal Mining Reclamation Awards, visit the OSM website at www.osmre.gov.
Discussing all the winners, NMA President and CEO Jack N. Gerard said: “The entire U.S. mining industry is proud of the employees and managers of these companies for demonstrating the excellent reclamation, rising standards and state-of-art practices that our member companies employ in their communities today.”
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“Sentinels of Safety” awards presented at MINExpo cap safest year ever in nation’s coal, mineral mines
Eight mining companies were presented with prestigious “Sentinels of Safety” awards at MINExpo last week, recognizing distinguished records during 2003 in the safest year ever for U.S. mining.
The annual awards, initiated in 1925 by then-Commerce Secretary Herbert Hoover, are sponsored by NMA and the U.S. Mine Safety and Health Administration (MSHA) of the U.S. Department of Labor.
Assistant Secretary of Labor David Lauriski presented the awards during luncheon ceremonies at MINExpo INTERNATIONAL®, the quadrennial mining equipment exposition hosted by NMA at the Las Vegas Convention Center. Lauriski noted this year’s winners logged more than 3 million employee hours without an accident. “They have earned these awards by implementing safety measures that have been tailored to their own operations,” he said.
NMA President and CEO Jack Gerard joined Lauriski in saluting the safety accomplishments of the industry. “These awards signify our industry-wide dedication to safety, a commitment that last year helped us to achieve the lowest number of mine fatalities since incidents were first recorded in 1900,” said Gerard. “This record was made possible by companies like those we honor today, whose efforts ensure that mining is not only a vital industry for our economy but a safe industry for our workers.”
In each of the past three years, said Gerard, the mining industry has achieved successive safety records, showing “a trend of improving safety conditions that has put the industry closer to its goal of zero injuries and fatalities.”
Sentinels of Safety Awards recognize a mining operation in each of eight separate categories that recorded the most hours in a calendar year without a single lost-time injury. A minimum of 30,000 hours are required for consideration. Beginning in 2005, the Sentinels of Safety Awards will be expanded to allow greater recognition of the safety accomplishments of both small and large mines.
AWARD WINNERS for 2003 The Sentinels of Safety Award winners for 2003 are:
The Swift Creek Mine (open pit), PCS Phosphate-White Springs, White Springs, FL
5 R Constructors (quarry), 5 R Constructors LLC, Atlanta, GA
Davenport Sand Mine (sand & gravel dredge), Rinker Materials Corp., Miami, FL
Schoolhouse Mine (sand & gravel bank or pit), Unimin Corp., Spruce Pine, NC
Greens Creek Mine (underground metal), Kennecott Greens Creek Mining Co., Juneau, AK
Morton Salt Fairport Mine (underground nonmetal), Morton Salt, a Rohm and Haas Co., Grand River, OH
North Antelope Rochelle Mine (surface coal), Powder River Coal Co., Wright, WY
Beaver Gap E-3 (underground coal), Consol Energy, Inc., Deane, KY
COMMENDATIONS for 2003
In addition to these eight category winners, another 32 mines were commended for their flawless safety record last year.
VICC NO. 3 (underground coal), Paramont Coal Company VA, LLC, ST. Paul, VA
Ruby Energy (underground coal), Spartan Mining Company, INC., Rawl, WV
E-3 Mine (underground coal), Clas Coal Company, Kite, KY
Low Splint NO 1 Mine (underground coal), Meadow Branch Mining Corporation, Norton, VA
Freedom Mine (surface coal), Coteau Properties Company, Beulah, ND
Kayenta (surface coal), Peabody Western Coal Company, Kayenta, AZ
Alex Energy NO.1 Surface (surface coal), Nicholas Energy, Summersville, WV
Eagle Butte Mine (surface coal), RAG Coal West Inc., Gillette, WY
Fletcher Mine/Mill (underground metal), The Doe Run Company, Bunker, MO
Getchell Mine (underground metal), Small Mine Development, LLC, Golconda, NV
Golden Sunlight Underground Mine (underground metal), Small Mine Development, LLC, Whitehall, MT
Casteel Mine (underground metal), The Doe Run Company, Viburnum, MO
Detroit Salt Co. (underground nonmetal), The Detroit Salt Co. LLC., Detroit, MI
Kimballton Plant #1 (underground nonmetal), Chemical Lime Company of Virginia, Ripplemead, VA
Kerford Limestone Co. (underground nonmetal), Kerford Limestone Company, Weeping Water, NE
Randolph Mine (underground nonmetal), Hunt Midwest Mining, Inc., Randolph, MO
Rochester Mine (open pit), Coeur Rochester, Inc., Lovelock, NV
Enoch Valley & South Rass Mines (open pit), Degerstrom Ventures, Soda Springs, ID
Southard Mine and Plant (open pit), United States Gypsum Company, Southard, OK
Dixie Mine (open pit), Engelhard Corp, Gordon, GA
Millard Quarry (quarry), Pennsy Supply Inc., Annville, PA
Alico Road Quarry (quarry), Rinker Materials Corporation, Fort Meyers, FL
Gregg Mine (quarry), Rinker Materials Corporation, Brooksville, FL
Thornton Quarry (quarry), Material Service Corporation, Thornton, IL
Rinker Materials 19th Ave. (bank or pit), Rinker Materials Western Inc., Phoenix, AZ
Little River Plant (bank or pit), Hanson Aggregates West, Inc, Ashdown, AR
MTI Ready Mix (bank or pit), Mullen-Telles, Inc, El Paso, TX
Rinker Materials Maricopa (bank or pit), Rinker Materials Western Inc., Phoenix, AZ
Bridgeburg Dredge & Mill (dredge), Glacial Sand & Gravel Co., Kittanning, PA
M-2 (dredge), Quality Materials, Houston, TX
Sorters Sand & Gravel (dredge), Sorters Sand & Gravel, Humble, TX
Porter Plant (dredge), Hallett Materials, Porter, TX
For more information on the winners’ and nominees’ safety accomplishments, please visit www.nma.org, and to obtain official U.S. mine safety and health data, please visit the website of the U.S. Mine Safety and Health Administration at www.msha.gov.
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MINExpo® snapshot
MINExpo® featured over 1,200 exhibitors and covered more than 460,000 square feet of the Las Vegas Convention Center.
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Mining should enjoy another boom year in 2005, industry leaders say at opening MINExpo® conference
Mining for coal and minerals should enjoy another boom year in 2005, as economic expansion throughout the global economy spurs continued growth in electric power and strong demand for copper, nickel, gold and other metals, industry leaders told the media at MINExpo’s opening press conference.
“Simply put, world-wide demand has struck what has been a relatively quiet market with nearly hurricane-force winds,” said Jack Gerard, NMA president and CEO. “As a result, the state of the industry, both here and abroad, looks very positive for 2005.”
Appearing with Gerard at the press conference were John Brinzo of Cleveland-Cliffs Inc., newly elected NMA chairman; Bill Tate of DBT America and MINExpo program chairman; Jim Roberts of Foundation Coal Corp. and new NMA vice chairman; and John Hanson of Joy Global Inc.
Gerard said U.S. coal consumption will set a record this year and is virtually certain to set a new record in 2005 with an estimated 1.125 billion tons consumed by coal-fired power plants, steel mills and other industrial users. An expected 2.5 percent increase in US electricity demand next year, together with low domestic stockpiles and a strong outlook for export sales will ensure a record year for U.S. coal mines.
On the minerals and metals side of the industry, Gerard said that, globally, copper, nickel and gold are typical of the metals that will enjoy another very good year in 2005. Demand from China and other manufacturing regions could push production above the already high levels seen this year, he said. Most observers forecast world copper production will increase by 5.8 percent both this year and next, with a more modest gain of 2 percent likely in the U.S. this year, possibly increasing slightly in 2005.
Brinzo said in his “35 years with the company (Cleveland-Cliffs), I’ve never seen a better environment for iron and steel in this country. The driving force is China,” he said, which doesn’t have enough iron ore reserves to satisfy demand.
Gold production is expected to be 285,000 kilograms this year and next for the U.S., the world’s third ranked producer. Global output is expected to rise worldwide in 2005 owing to increased gold mining capacity. Iron ore and nickel production in 2005 is also forecast to rise throughout the world, driven by continued heavy demand from steel mills.
Equipment suppliers will be major beneficiaries of the sustained up-cycle in the mining industry forecast for 2005. “Their order books are full,” said Gerard. Demand for a variety of earth moving equipment and mining gear is virtually outstripping supply, as strong demand for coal and minerals spurs the utilization and expansion of mining capacity.
Employment prospects also look bright, particularly in the US mining industry. Gerard said a combination of factors, including high retirement rates and the urgent need for replacement workers skilled in the use of mining technology, is creating high-wage job opportunities throughout the mining regions of the US. “Training a new generation of high-skilled miners and technicians is becoming a major challenge for our industry,” he said.
Roberts said from his company’s perspective, the “shortage is in the hourly workforce. The average age (of workers) at some of our mines is 55. It is a challenge to bring in some of the younger people, but it is something we’re addressing.”
From the perspective of equipment manufacturers, Hanson added, “We’ve gone through 20 years of slow, gradual retrenchment. We are seeing our workforces age – we, too, are going to be faced with significant levels of retirements over the next few years.” Tate said, “Even though we’re hiring everyone who meets our criteria, we are at net zero for the year” at one of the company’s Virginia plants.
“The problem is finding the people, but even when you find them it could take a couple of years to get them up to speed” on modern mining equipment and operations, Roberts concluded.
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DeRocco: NMA takes leadership role with workforce training initiative
Emily DeRocco, assistant secretary of labor for employment and training, addresses the MINExpo Executive Industry Forum. At her right is David Lauriski, assistant secretary of labor for mine safety and health.
NMA has taken a “leadership role” by partnering with the U.S. Department of Labor in the President’s High Growth Job Training Initiative, Emily S. DeRocco, assistant secretary of labor for employment and training, said during an Executive Industry Forum at MINExpo INTERNATIONAL® 2004.
The High Growth Job Training Initiative is centered around government-business-education partnerships working collaboratively to develop solutions to workforce challenges for specific industries. DeRocco told the forum the Employment and Training Administration is charged with creating a “demand-driven workforce system to ensure no workers are left behind. We need to know where the jobs are, as well as current jobs that may be changing,” she said.
She said the administration has established more than 1,900 career centers across America and has invested $15 billion annually toward the initiative. For the program to be successful, she said, employers should share their workforce needs; explain the skill sets a competent employee would possess; learn about the services that are available through the one-stop system; and continually communicate with the system.
“In the short-term, it is our hope that we as a group can overlay your needs with the one-stop system. With the help of NMA, we plan to proceed aggressively,” DeRocco said. “We are very committed to your industry and its success.”
NMA President and CEO Jack N. Gerard said the MINExpo forum was an important step in the continuing evolution of the workforce initiative. “The association will identify and quantify the mining industry’s workforce needs, training tools and funding criteria and move these forward in an effort to ensure that an educated, skilled mining workforce exists in adequate numbers for decades to come,” he said.
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School groups tour MINExpo®
Fourth graders from a local Nevada school toured MINExpo last Thursday. The kids learned about mining and had the opportunity to try out the equipment.
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