April 2010   —   Issue # 2010-04

Mining Metrics
 

Poll Watch

Public Trust in
Federal Government
Rising from 50-Year Low

Public opinion research from six national polling organizations from 1958 to 2010 show “trust of the government in Washington” fell in October 2008 to match the lowest level seen in fifty years.

From October 2008 to March 2010, public trust in the federal government edged up slightly.

Source: Pew Research Center
April 18, 2010.

Donation Request

Tragedy and
Mine Safety

The recovery of the 29 victims of the mining tragedy in Raleigh County, W.Va., marked a somber moment for the nation’s mining community. The Mine Safety and Health Administration (MSHA) has launched its investigation into the causes of the event, while legislators in Washington and West Virginia are beginning their own efforts to explore the tragedy and pursue possible new mine safety legislation.

At a time when mine safety is on the minds of many, it is worth remembering that U.S. mining has made tremendous strides in ensuring the safety of all those who work in America’s mines. Those efforts culminated in record safety performance in 2008 and 2009. In fact, 85 percent of all U.S. mines operated last year without a single lost-time injury.

However, this month’s events are a tragic reminder of the work that remains to be done to achieve our goal of zero accidents in the nation’s mines.

The families of the miners lost this month have suffered greatly and are in the hearts and prayers of the entire mining community. If you’re interested in helping support the families who’ve lost loved ones, West Virginia Gov. Joe Manchin has posted information on how you can help on his website.

signature graphic

Hal Quinn
President and CEO
National Mining Association

ACT Online Community Now Numbers More than
150,000 Advocates. Are You One of Them?

The Advocacy Campaign Team (ACT) for Mining, the National Mining Association’s online grassroots mobilization program, celebrated a major milestone this month by passing the 150,000 mark for online activists.

ACT Online is an internet-based grassroots mobilization platform that enables people to connect with their federal and state lawmakers and express their support for policies that promote the responsible use of America’s vast coal and mineral resources.

To become a member of ACT Online, visit www.ActForMining.org.

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Join us on Facebook at: www.facebook.com/actformining.

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Washington Watch

NMA Says Safety is Mining’s Highest Obligation; Suggests
Additional Actions that can be Taken Now

U.S. mining pledged its full resources and commitment to better protect the nation’s miners at an April 27 hearing before the Senate Committee on Health, Education, Labor and Pensions. “That is the responsibility American mining owes all who work in our mines, and it is the debt we owe those who perished at the Upper Big Branch Mine,” said Bruce Watzman, senior vice president for regulatory affairs at the National Mining Association (NMA).

“We do not accept mine tragedies are inevitable,” Watzman continued. “Both operators and the Mine Safety and Health Administration (MSHA) have a shared responsibility to ensure a safe workplace,” Watzman testified. “That shared responsibility led to dramatic improvement in mine safety, including record-breaking safety performance for the past two consecutive years. Nonetheless, the loss of life at the Upper Big Branch Mine calls our progress into question.”

Watzman emphasized the primary responsibility for mine safety rests with mine operators and noted that while all await the investigative results of the Upper Big Branch tragedy, there are steps that can be taken now to further meet the obligations of both mine operators and government regulators.

Watzman proposed four specific areas for increased attention and resources: a focus on risk-based safety performance through programs that share the best-of-the-best in safety performance with all of U.S. mining; a proper utilization of MSHA’s enforcement powers; the need to bring consistency and clarity to the inspection and citation process and the elimination of the existing backlog of contested safety violations; and the importance of a complete and impartial investigation of what happened at the Upper Big Branch mine.

A complete copy of Watzman’s testimony is available at: Bruce Watzman Testimony.

President Obama Eulogizes Fallen Miners, Lays Out Plan for
Safety Examination

President Obama on April 25 delivered a eulogy for the 29 miners who lost their lives at an explosion at the Upper Big Branch mine earlier in April.

“Day after day, they would burrow into the coal, the fruits of their labor, what so often we take for granted: the electricity that lights up a convention center; that lights up our church or our home, our school, our office; the energy that powers our country; the energy that powers the world,” President Obama said at a memorial service for the fallen miners.

Vowing to take a hard look at mine safety rules and regulations, the president asked “How can we fail them? How can a nation that relies on its miners not do everything in its power to protect them? How can we let anyone in this country put their lives at risk by simply showing up to work; by simply pursuing the American Dream?”

Earlier this month, the president said safety law, regulation and oversight must be improved “to help ensure that mining companies no longer use a strategy of endless litigation to evade their responsibilities.”

Speaking from the White House Rose Garden on April 15, the president said he had directed Labor Secretary Hilda Solis and officials at the Mine Safety and Health Administration (MSHA) to lead an investigation into the Upper Big Branch mine accident that claimed the lives of 29 miners on April 5. Their focus, said the president, will be to work with Congress to “strengthen enforcement of existing laws and close loopholes that permit companies to shirk their responsibilities.”

He also ordered an investigation into the procedures, capabilities and authorities of MSHA – “to take a hard look at our own practices and procedures” so the agency can manage effective mine safety oversight.

The president specifically emphasized the citation contest process and the backlog of cases pending before the MSHA Review Commission and directed the secretary to immediately streamline the regulations implementing the Pattern of Violation process under section 104(e) of the Mine Act.

A complete copy of President Obama’s April 25 memorial service remarks is available at: Remarks by the President at Memorial Service.

A complete copy of President Obama’s April 15 remarks on mine safety is available at: Remarks by the President on Mine Safety.

Senate Democrats Scrambling to Save Climate Change Bill
After Graham Bolts Over Immigration Reform Plan

Plans for a Senate vote on climate change legislation being developed by Sens. John Kerry (D-Mass.), Joe Lieberman (I-Conn.) and Lindsay Graham (R-S.C.) have been thrown into serious doubt over a contentious fight on whether and when the Senate should attempt to pass an immigration reform package.

The loss of Graham’s support would likely be a fatal blow to the bill’s chances, as Graham is seen as a key player in efforts to win some Republican support to offset expected anti-climate votes by some centrist Democrats.

Prior to a scheduled April 26 unveiling of the climate bill, Graham announced in an April 24 letter that he was abandoning his efforts to work with Kerry and Lieberman, expressing outrage that Senate Majority Leader Harry Reid (D-Nev.) had decided to push an immigration bill before the climate bill.

In his April 24 letter, sent to business and conservation groups the three senators consulted with in crafting the bill, Graham charged that moving forward “on immigration – in this hurried, panicked manner – is nothing more than a cynical political ploy.”

“I deeply regret that election year politics will impede, if not derail, our efforts to make our nation energy independent,” Graham said in his letter.

Days later Reid relented and said the climate bill would move first, given that it is much more developed than the immigration bill.

Reid’s move, however, wasn’t enough to satisfy Graham who has taken a harder line, saying he opposes any plan to move an immigration bill this year and will withhold his support for a Senate climate vote unless Reid drops immigration completely.

The possible timing for action on the Kerry-Graham-Lieberman climate bill remains unclear. Both Kerry and Lieberman said this week that they are focused on getting Graham back in the fold and are not considering moving forward without him.

Rep. Boucher Objects to EPA Guidelines for Appalachian
Coal Mining; Asks for Suspension

Rep. Rick Boucher (D-Va.) recently wrote to senior Environmental Protection Agency (EPA) officials expressing “strong opposition” to guidelines the agency recently released affecting coal mining permits in Appalachia.

Boucher asked the agency to suspend implementation of the guidelines immediately and conduct a formal rulemaking process to properly assess impacts of the new policy on mining and to solicit public comment.

“I am concerned that the water quality standards [in the guidelines] have grave implications for the Virginia mining industry,” said the chairman of the House Energy and Environment Subcommittee.

A copy of Rep. Boucher’s letter is available at: Rep. Boucher Letter to EPA.

Sen. Reid Vows to Block Mining Law Reform Bills

The Associated Press (AP) recently reported that Senate Majority Leader Harry Reid (D-Nev.) intends to block votes on separate Mining law reform bills proposed by Rep. Nick Rahall (D-W.Va.), chair of the House Natural Resources Committee, and Sen. Jeff Bingaman (D-N.M.), chair of the Senate Energy and Natural Resources Committee.

According to the AP, at an April 7 meeting with mining industry representatives, Reid said Rahall’s bill in particular would kill mining and wouldn’t go anywhere as long as he’s majority leader.

“We have people who want to get rid of mining,” Reid said. “I have a good feeling about this industry. Times are good and the price of gold is good, but mining is cyclical. We need to support the industry in good times.”

Reid, who faces a tough re-election fight this year, said if he’s not re-elected, the likely candidates to replace him as Senate majority leader would not be “friends of mining” as he is. “I don’t know anybody in Congress who knows as much about mining as I do,” he said. “I am happy to work for mining.”

Newsworthy

Las Vegas Review-Journal Poll Shows Support for
Massive New State Mining Tax

A narrow plurality of Nevada voters say the state’s mining industry should pay higher taxes on minerals, even if a tax hike requires an amendment to the state’s constitution.

That’s the result of a recent survey by Mason-Dixon Polling & Research, commissioned by the Review-Journal.

According to the poll, 40 percent of likely voters support and 37 percent oppose changing the way mineral proceeds are taxed, which is proposed in a ballot initiative led by the Progressive Leadership Alliance of Nevada, or PLAN. There were 23 percent undecided and the margin of error is plus or minus 4 percentage points.

Mining industry leaders say it represents a 300 percent tax increase that unfairly targets one type of business and would put miners out of work.

Tim Crowley, president of the Nevada Mining Association, told the paper that the industry still has a legal challenge pending against part of PLAN’s initiative with a June 7 court date in the Nevada Supreme Court.

In the meantime, Crowley said the industry will press its case with the public, arguing such a tax will result in the closing of mines and loss of jobs.

“We have to do more to educate the public, I think we have done a poor job of it in the past,” Crowley said.

A complete copy of the story is available at: Mining Tax Support Growing.

Rare Earth Mineral Production Lags in U.S. as China Dominates

The U.S. lacks the ability to process rare earth minerals today and may need up to 15 years to build a reliable supply chain to ensure their production, according to a new report by the General Accountability Office (GAO).

The U.S. could produce by 2013 some rare earth minerals required for national defense and renewable energy technologies, said GAO. However, GAO said the nation is hampered by the absence of a necessary supply chain, in large part owing to the extensive time needed to secure federal and state permits to begin exploration and production.

The report emphasized that the U.S. has the expertise and resources to transform rare earth oxides into useful metals, but lacks important manufacturing and refining assets.

China meanwhile, the report concluded, is asserting global domination in rare earth production, accounting for 97 percent of global output of rare earths such as boron and cobalt.

Technologies that could enable the U.S. to close the gap with Chinese production and processing will not be available within four years and will be very expensive, said GAO.

According to the report, the Department of Defense is expressing concern over its increasing reliance on China and that country’s monopoly of rare earths. The metals are used in precision-guided missile systems, avionic, radar systems, night vision equipment and satellites.

A complete copy of the GAO report is available at: GAO Report.

New Report Ranks U.S. Lower for Mining Investment

Only four states cracked the top 20 of the world’s friendliest investment regions for mining in the annual Survey of Mining Companies 2009/2010 by Canada’s Fraser Institute.

The Toronto-based, free-market consulting group painted a bleak picture for the future of mining investment in the U.S., where the sole exception appeared to be Nevada, which ranked fifth overall, falling from third place in the 2009 survey.

“The United States needs jobs and economic growth and the mining industry is ready to provide both – just less and less in the U.S. itself,” said Fraser Institute Vice President Fred McMahon.

Wyoming, the second highest ranking state, placed thirteenth overall but fell from second place last year. Alaska and Utah completed the short list of U.S. states ranking in the global top 20. Minnesota and Colorado were among the states falling precipitously from the last survey.

Six of the top 10 spots were held by Canadian provinces, led by Quebec, which ranked number one for the third straight year. The Fraser Institute’s survey canvasses the opinions of 670 mining executives and managers worldwide on the policies and the mineral resources of 72 jurisdictions.

A complete copy of the report is available at: Fraser Institute Report.

Smart Science

Peabody Energy Earns Top Honors for Environmental Leadership
in Colorado

Peabody Energy recently earned dual honors for pioneering land restoration and water management best practices on thousands of acres of rangeland in Colorado.

The company earned the 2009 Excellence in Research and Use of New Practices Reclamation Award from the Colorado Division of Reclamation, Mining and Safety and the Colorado Mining Association. The award was given to honor Peabody for its work to restore lands at its former Seneca operations in Colorado.

In addition, Dennis Jones of Peabody’s Colorado Conservancy Group also was recognized with the state’s Dr. James Pendleton Award for outstanding work to maintain water quality in the semi-arid climate of northwest Colorado. The award is among the highest individual honors presented by the Colorado Department of Natural Resources and the Division of Reclamation, Mining and Safety.

Peabody’s environmental and operations teams work with academics, regulators and community stakeholders to restore Colorado lands to a condition that is typically four times more productive for livestock grazing than native range. Restored lands provide a haven for deer and elk, offering some of the highest densities of big game in the region.

More information is available at: Peabody Environment Awards.

From the Heartland

Kennecott Utah Copper’s Bingham Canyon Mine Visitors Center
Now Open

Kennecott Utah Copper opened its Bingham Canyon Mine Visitors Center on April 1 for the 2010 season, which runs until Oct. 31, weather permitting.

Each year, the fees collected from the Visitors Center, are donated to local charities through the KUC Visitors Center Charitable Foundation. Since its inception, more than $2.2 million has been donated to local community charities and non-profit organizations. The funding benefits the truly needy with a special focus on the disabled, children and the elderly.

This year, visitors can enjoy newly redesigned exhibits and displays, along with interactive information kiosks and video displays. The center, which opened in 1992, has hosted more than 2.7 million visitors and is open seven days a week from 8 a.m. until 8 p.m.

More information is available at: Bingham Canyon Mine Visitors Center.