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MiningWeek Online
November 12, 2004 Volume 10, Issue 44
This Week's Issue:
NMA Government Affairs Committee outlines issues, objectives, strategies for 2005
 
NMA’s Government Affairs Committee (GAC) conducted a successful and highly attended meeting (left photo) of member companies this week to assess the political landscape for 2005, identify priority issues and develop effective strategies to achieve objectives next year. NMA staff also reported on political activities through the association’s two political action committees and “Mine the Vote.” The meeting was an important step in addressing these topics, as outlined by NMA staff at the September Board of Directors meeting. At the beginning of the session, outgoing GAC Vice Chairman Steve Young of CONSOL Energy (right photo, center) was presented a token of appreciation by NMA President Jack Gerard (right) and incoming GAC Chairman Dana Byrne of Cleveland-Cliffs Inc. Following the meeting, NMA members and staff attended concurrent breakout sessions of the Energy Policy and Minerals Policy task forces, to identify priorities and strategies for 2005.
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Abraham: Coal is America’s ‘most important strategic energy resource’
Far from being the environmental villain its critics “would have us believe, coal is indeed America’s most important strategic energy resource,” Secretary of Energy Spencer Abraham said this week.
Speaking at the National Coal Council in Washington, Abraham said, “President Bush and our administration will continue to advocate this point. And we will continue to work . . . to ensure that coal plays its key role in ensuring American energy security in the 21st century.”
Abraham said just as coal helped make America “the world’s foremost industrial power over the past two centuries, it will continue to be an important part of our national economy in the 21st century and beyond. The key,” he said, “is technology.”
The Clean Coal Power Initiative (CCPI) is “moving technologies that might otherwise remain in the laboratory into useful production,” he said. “The technologies in which we are investing right now will address traditional pollutants, as well as the potential climate changes resulting from carbon dioxide emissions.”
The second round of CCPI financing announced just a few weeks ago “makes clear that these awards do not represent just a one-time infusion into clean coal technology, but a major ongoing process to make clean coal power a permanent and substantial part of our nation’s energy mix.” The latest projects, Abraham said, will also contribute to the development “of what is perhaps the most noteworthy aspect of our clean coal program: the FutureGen program – a cost-shared, $950 million project to create the world’s first near-zero-emissions fossil fuel plant.”
The skyrocketing price of crude oil also has DOE examining how coal might help with energy challenges in the transportation sector as well, Abraham said. “Our department is investing in very promising technologies that can convert coal into synthetic crude oil . . . . Imagine the economic and national security benefits of harnessing our abundant coal reserves to lessen our dependence on foreign oil. Through the years, this technology has reduced the cost of converting coal to synthetic oil to something in the $30-per-barrel range. A few years ago, that wasn’t economical – but today, with oil hitting $50 a barrel and more, we can certainly see the value.”
He concluded, “While challenges to commercializing this technology certainly exist, it further demonstrates the long-term promise and potential of America’s vast reserves of coal.”
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United Taconite project brings more jobs to Iron Range, news reports say
A $23 million project to restart an idled production line at United Taconite has already created jobs for construction workers and miners, according to GrandForksHerald.com. Cleveland-Cliffs Inc. and Laiwu Steel own the plant, formerly EVTAC Mining Co.
United Taconite’s Line 1 has been stopped since 1999 and is targeted to restart Nov. 22. The 1 million ton expansion will bump United’s annual pellet production capacity to about 5.3 million tons in 2005. About 51 workers, including 44 steelworkers, are being hired, which will put about 370 hourly workers at the plant that closed in 2003 when EVTAC Mining went bankrupt.
For Cleveland-Cliffs, which controls about 28 percent of North American pellet capacity, the expansion is part of a plant to become the pre-eminent supplier of iron ore products to its steel customers, according to the report, which originally appeared in the Duluth News Tribune.
“Things are very good,” Cleveland-Cliffs spokesman Dana Byrne said. “Both the steel and iron ore industries are very strong right now and it’s driven by global demand. We are sold out this year and we will be sold out next year. We can sell every ton that we can make.”
Cleveland-Cliffs and Laiwu Steel are also looking at expanding United’s annual production capacity to 6 million tons, but no date has been set.
With all six northeastern Minnesota taconite plants running at capacity to meet domestic and international demand, the taconite industry appears poised for an extended run of prosperity, the Duluth News Tribune reported.
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Shell opens hydrogen refueling station in the Nation’s Capital
Secretary of Energy Spencer Abraham and representatives of Shell and General Motors this week opened the first hydrogen refueling station in Washington, D.C. The station is the first integrated gasoline / hydrogen station in North America and represents a “major step toward realizing President Bush’s goal of reducing America’s dependence on foreign sources of energy by developing new, innovative technologies such as hydrogen fuel cells,” DOE said.
“Today’s opening of the hydrogen refueling station is an important step forward as this Administration works toward energy independence and a cleaner environment,” said Secretary Abraham. “Projects like this one help prove that hydrogen and fuel cell technologies work, which will allow private industry to make a future commercialization decision.
“President Bush recognizes that a hydrogen economy has the long-term potential to deliver greater energy independence by reducing America’s dependence on foreign sources of energy,” continued Secretary Abraham.
Shell’s hydrogen station is the centerpiece of a joint demonstration project with General Motors. The site will be used to refuel General Motors’ fuel cell vehicles in the Department of Energy (DOE) Vehicle and Infrastructure Learning Demonstration and Validation Project. This will be the first station to be deployed in a potential Washington, D.C. to New York hydrogen corridor.
Secretary Abraham announced the “Learning Demonstrations” Project on April 28, 2004, as an opportunity to assess important data under real world environments that will re-focus research efforts. The total expected DOE share for the Learning Demonstrations is $190 million over five years, with an additional private cost share of approximately $190 million.
In last year’s State of the Union address, President Bush communicated his vision that “the first car driven by a child born today could be powered by hydrogen, and pollution-free.” Demonstration projects like the one announced today address major technical and economic hurdles in renewable and distributed hydrogen production technologies that must be overcome.
For more information, visit www.eere.energy.gov/hydrogenandfuelcells.
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NMA amicus brief urges court to set aside belt entry ventilation standard
NMA filed an amicus brief with the U.S. Court of Appeals for the District of Columbia Circuit, supporting Jim Walter Resources Inc.’s petition to review and set aside a mandatory Mine Safety and Health Administration (MSHA) standard concerning use of a conveyor belt entry as an intake ventilation air course.
MSHA published a final rule on April 2, 2004, containing a maximum velocity provision which limits the velocity of air in all belt entries, whether or not they are used to ventilate working sections. Jim Walter Resources filed a petition for review of the standard on May 27, arguing the agency promulgated the final rule without following the requirements of the Federal Mine Safety and Health Act. The United Mine Workers of America (UMWA) also filed a petition challenging the final regulation.
In its brief, NMA noted while MSHA issued a proposed rule to allow air coursed through the belt entry to ventilate working places, it did not include a maximum belt air velocity limitation, which was added to the final rule. “This provision is not a logical outgrowth of the proposed rule because nothing in the proposed rule gave interested parties any reason to anticipate that MSHA would adopt a maximum velocity limitation and the parties did not have the opportunity to comment meaningfully.”
NMA asked the court to set the standard aside. Oral arguments in the case are scheduled for March 11, 2005.
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Golden Phoenix Minerals reports high-grade molybdenum drill results from Ashdown
Golden Phoenix Minerals Inc. said it has received high-grade molybdenum drill results from its Ashdown project in Humboldt County, NV.
“These drilling results confirm that Ashdown has a significant molybdenum deposit with high grades,” said Steven Craig, vice president and chief geologist. “The drilling program was designed to both confirm the existence of high grades and to delimit the zone for mining purposes. With molybdenum prices at $26 per pound, each percentage of molybdenum is worth $520 in a ton of ore,” he said. “Because the deposit averages 2.9 percent, the average in-ground value of the ore is $1,508 per ton.”
The company also said permitting efforts for the pilot mill “are on track at this time and permit applications are being reviewed by the agencies.”
Golden Phoenix Minerals signed a Letter Agreement with PRS Enterprises, Inc. in September 2003 to act as manager and operator of the Ashdown development project. Final agreements have to be completed before full funding is provided by PRS to Golden Phoenix for advancement of the project. In addition to molybdenum, Ashdown also contains a substantial gold resource that could be developed into an operating mine.
Approximately $8 million in past exploration and development drilling has been conducted on the Ashdown property since about 1980. This money was applied to drilling about 270 reverse circulation and core holes, driving 1,800 feet of tunnel to obtain bulk samples of the molybdenite mineralization for testing, and conducting several feasibility studies for open pit and underground mining operations.
The gold and molybdenum mineralization on the Ashdown property is found in quartz veins that cross-cut diorite gneisses. The property is located near a Jurassic granodiorite to granite intrusive, which underlies the northern part of the Pine Forest Range. Gold mineralization occurs as 20 to 100 micron flakes in the quartz vein, while molydenite mineralization occurs separately from the gold. Average grade of the gold as previously reported from the 270 drill holes is about 0.125 opt while the molybdenum is about 2.9 percent.
Mining of any potential ores will be by open pit and underground methods with extraction possibly being done by flotation and gravity separation methods, the company said. Golden Phoenix Minerals intends to conduct mining, processing, and reclamation operations.
The company has a marketing agreement in place with Derek Raphael & Co. Ltd. (DRC). When molybdenite production is underway, DRC will take delivery at the mine site and is responsible for placing it with buyers at a number of worldwide locations.
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Gerard on NPR
Last weekend, “Living on Earth,” the National Public Radio environment show broadcast in 280 markets nationwide, featured Jack Gerard’s observations about the major impact that the mining industry had on the presidential election outcome. Gerard told Jeff Young, the program’s Washington correspondent, that the President’s heavy winning margin in West Virginia suggests that voters there didn’t believe Senator Kerry’s stated support for coal during the campaign in view of his many Senate votes cast against mining. “When you add up that agenda it doesn’t support continued coal production,” said Gerard. “They get it, they understand their jobs are on the line, and I think they voted for their jobs.”
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Doe Run’s Glover smelter first in U.S. to be designated ‘in attainment’
The Doe Run Co. this week announced that its Glover smelter in Annapolis, MO., has been re-designated as an Attainment Area for Lead by the State of Missouri Air Conservation Commission and the U.S. Environmental Protection Agency (EPA).
The Commission’s vote to accept the smelter’s attainment and maintenance plan was unanimous. Likewise, the EPA ratified the state’s decision, publishing in its final rule that “EPA is granting final approval to the redesignation of the lead nonattainment area in Iron County, MO, to attainment of the NAAQS for lead. We are approving the maintenance plan for this area including a settlement agreement which was submitted with the redesignation request.”
“A lot of planning, work, and investment went into the effort to achieve attainment,” explained Aaron Miller, environmental manager with Doe Run. “All of our lead smelters are in attainment with the air quality standard. While we’ve always operated in compliance with all state guidelines, this is a success story for both the company and the state because it demonstrates our long-term commitment to the environment.”
The Glover smelter has been in attainment with the National Ambient Air Quality Standard (NAAQS) for more than 7 years (31 consecutive quarters), according to data collected by air monitors. To be considered an Attainment Area, a facility needs to meet air quality standards for eight consecutive quarters and meet all required rules as set by the EPA. The EPA’s specified air quality standard is 1.5 micrograms of lead per cubic meter of air (averaged over a calendar quarter). The Glover smelter consistently met this standard before going on care-and-maintenance status in December 2003, and continues to do so.
The Doe Run Company, along with its subsidiaries, is a privately held natural resource company focused on environmentally sound mineral production, recycling and metals fabrication. Based in St. Louis, the company and its subsidiaries serve as North America’s largest integrated lead producer and third-largest total lead producer worldwide, employing more than 4,000 people.
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Newsbits
Degussa Admixtures Inc. said it will withdraw from supply of steel fibers for the underground construction environment as of Dec. 31, 2004. Degussa Admixtures Inc. has been involved with the supply of fiber reinforcement through a strategic alliance with S.I. Concrete Systems since 1998. The company said it was a business decision “driven by our confidence in the emerging macro-synthetic fiber technology for underground construction applications” . . . . Dr. Paul Gilman, EPA’s assistant administrator for the Office of Research and Development and the agency’s science advisor, has announced he is stepping down at the end of November to accept a private sector opportunity. EPA said an acting assistant administrator will be named before then . . . . American Electric Power has named Jim Henry as vice president-eastern fuel procurement, Marguerite Mills as vice president-western fuel procurement, Mike Byer as vice president-strategic initiatives, Mike DeBord as vice president-transportation and combustion services, and John H. Massey II as vice president-coal and emissions trading . . . . Stillwater Mining Co.’s Stillwater Mine has been recognized by the Mine Safety and Health Administration (MSHA) as “Most Improved” in the Rocky Mountain District for reduction of injuries, accidents and violations. Stillwater Chairman and CEO Frank McAllister said the company is “pleased with the sustained improvement in safety that the MSHA award represents. We have come a long way in the last three years since adopting a safety management process we call G.E.T. Safe, for Guide, Educate and Train.”
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