May 2010   —   Issue # 2010-05

Mining Metrics
 

Poll Watch

72 Percent “Not Confident”
Congress Knows What It’s
Doing on U.S. Economy

Even as Congress puts the finishing touches on legislation asserting more government control over the U.S. financial industry, most U.S. voters continue to believe the legislators have little idea what they’re doing when it comes t o the economy, with only six percent (6%) of voter saying they are “Very Confident”.

Source: Rasmussen
May 22, 2010.

My Future
Mining Career

Very soon I hope to be well on my way to a mining-related career, something I had never expected. Mining hasn’t always been a passion of mine, but it is now. Yes, I played with Tonka trunks when I was a child, but mining was fairly unheard-of in my home state of Oklahoma. It wasn’t until I started to question the foundations of our economy that I came to the realization that my true calling was in mining.

Probably the most influential factor in my path was my grandfather. As the grandson of a geologist, I was the beneficiary of many stories about rocks and minerals as a child. Looking back I think I would have been thrilled to find a piece of coal in my stocking, although I never did (but probably deserved it).

While attending the University of Denver I had the opportunity to learn about natural resources and my interest was piqued. The history of the utilization of natural resources showed me a new perspective on human development. We even categorize certain periods of civilization in terms of the metals that we manipulate for economic and human benefit.

The importance of mining and petroleum in civilization lead me to enroll at the Department of Mining and Energy Economics at the Colorado School of Mines and later at the mining engineering department. Although I originally applied to the school in order to study energy, it was immediately clear where I wanted to be when I started classes.

Ultimately, I hope my education will lead to a career in private equity geared towards helping finance new mining projects, but I think there are many other exciting mining-related job opportunities out there.

Some may say that the future of mining is bleak, but I am excited. Much is made of the challenges natural resource producers face, particularly when discussing how best to address climate change. However, little is said about the huge need for copper, uranium, rare earths and other minerals that can help transition our economy from a fossil fuel dependent economy to a long term renewable energy economy. Proponents of climate policy do not realize that the way to a more green and sustainable future is through mining. Climate change policy, if handled appropriately, can help usher in a new age of clean coal technologies and create significant demand for other mining products.

Unfortunately, there is little public appreciation for the importance of American mining. Too many people harbor a stereotypical view of “big bad dirty” mining. Therefore, educating the public about the importance of mining must be an integral part of our future. Focusing on education will help attract bright new minds, hard workers and help create effective energy and environmental policies.

Needless to say, I am excited to be a part of this fascinating, dynamic industry and its future.

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Jeffrey Covington

Jeffrey Covington is a student at the Colorado School of Mines, with an expected graduation date of May 2011.

New ACT Online Tool Helps You Connect with Lawmakers

NMA’s Advocacy Campaign Team (ACT) for Mining recently unveiled its “Social Capital” tool, which makes it easy for ACT users to contact their elected officials about important mining issues by instantly posting a message to their social networking pages.

The Social Capital tool enables ACT users to communicate with their members of Congress via Twitter, Facebook, e-mail or YouTube.

Visit www.ActForMining.org and give our new tool a try.

In other ACT news, this month ACT celebrated another major milestone by passing the 170,000 mark for online activists. ACT began the year with a network of 77,000 online activists and has experienced remarkable growth since early 2009, when ACT’s advocates totaled approximately 19,000.

Join us on Facebook and Twitter

Looking for daily updates on the latest energy information? Join us on our Facebook and Twitter pages, where you can receive breaking news and dialogue with other like-minded American Resources Review readers.

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

Follow us on Twitter at: www.twitter.com/miningfan.

Washington Watch

Murkowski EPA Amendment to See Senate Action;
Graham Predicts Victory

A resolution that would overturn the Environmental Protection Agency’s (EPA) plans to regulate greenhouse gas emissions using the Clean Air Act (CAA) is scheduled to come up for a Senate vote on June 10, according to co-sponsor Sen. Lisa Murkowski (R–Alaska). Murkowski told reporters that she and Senate Majority Leader Harry Reid (D–Nev.) had reached an agreement that the measure, S.J. Res. 26, would come before the Senate under unanimous consent for 10 hours of debate, with no filibuster or amendments in order.

The resolution needs 51 supporters to pass the Senate. If the measure passes the Senate, it will go to the House for consideration. In addition to Murkowski, the bill is co-sponsored by Democratic Senators Blanche Lincoln (Ark.) and Ben Nelson (Neb.), along with all Senate Republicans, leaving Murkowski looking to wrangle eight votes from a group of moderate Democrats.

The resolution was given a public vote of confidence last week by co-sponsor Lindsey Graham (R–S.C.), who predicted that a “majority of the body will say that Congress should set the carbon regulations, not the EPA.”

Sen. Jay Rockefeller had introduced a bill with the support of seven fellow Senate Democrats that seeks to delay EPA’s plans for two years, but Rockefeller on May 25 expressed frustration that his bill has not been able to gain more traction, and appeared to be leaning towards backing the Murkowski resolution.

“Senator Murkowski and I have been working to find a way to suspend EPA climate regulations because we believe that Congress – not an unelected federal agency – should decide these enormous economic issues,” said Rockefeller. “I have a bill that mandates a two year suspension at EPA. ...I think my approach is more effective and has a better chance of becoming law,” he said.

However, he added that “the bottom line is – we cannot wait any longer to send the message that relying on EPA is the wrong way to go. The fate of our entire economy, our manufacturing industries and our workers should not be in the hands of EPA.”

New Senate Climate Proposal Unveiled; Reid Talks Strategy

Sens. John Kerry (D-Mass.) and Joe Lieberman (I-Conn.) on May 12 unveiled their version of climate legislation, the “American Power Act.”

The two senators went forward without the support of Sen. Lindsey Graham (R-S.C.), the sole Republican who had previously endorsed the effort.

Graham most recently declared passage of climate change legislation “impossible” this year given the Gulf oil spill and his stated reservations about the commitment from the Democratic leadership and the Obama Administration to move the bill. “There are not nearly 60 votes [for passage] today, and I do not see them materializing until we deal with the uncertainty of the immigration debate and the consequences of the oil spill,” Graham said this month.

The Kerry-Lieberman bill will, according to the summary, calls for a 17 percent cut in emissions of greenhouse gases (GHGs) below the 2005 level by 2020 and an 80 percent reduction by 2050. Emissions limits would apply differently and, according to varying time tables for various industry sectors, starting with power plants in 2013.

If Sens. Kerry and Lieberman are unable to get 60 votes for their climate change bill the Senate will likely act on a smaller energy bill instead, Majority Leader Harry Reid (D-Nev.) said this month. Reid was referring to S. 1462, which was approved a year ago by the Energy and Natural Resources Committee with the support of several Republicans.

Sen. Rockefeller Outlines Goals for New Mine Safety Legislation

Sen. Jay Rockefeller (D-W.Va.) on May 14 unveiled a broad outline of mine safety improvements he will seek to make via new legislation being crafted in response to last month’s accident at the Upper big Branch in West Virginia.

“The tragedy at Upper Big Branch mine was felt by our entire country, and we are still in pain,” said Rockefeller. “Every worker deserves a safe workplace – and it is the job of elected representatives to make sure that all voices are heard and laws are improved.”

Rockefeller’s office, in a press release, said he is working on “new legislative approaches” on workplace safety that include:

  • Additional workplace safety enforcement and accountability standards through the Mine Safety and Health Administration and the Occupational Safety and Health Administration.
  • Streamlining Pattern of Violation rules and regulations so that repeat offenders are subject to additional oversight and enforcement.
  • Reducing the appeals backlog at the Federal Mine Safety and Health Review Commission in order to prevent companies from avoiding responsibility by making appeals.
  • Improved whistleblower protections to empower miners and all workers to report dangerous conditions.
  • Increased fines and penalties for companies that routinely violate safety laws and regulations.

More information is available at: Rockefeller Mine Safety Outline.

Bipartisan Group of 23 U.S. House Members Urge EPA to
Drop Stringent New Surface Mining Permit Rules

Kentucky Congressman Hal Rogers (R) spearheaded a recent bipartisan effort with 22 other U.S. House members to urge the U.S. Environmental Protection Agency (EPA) to withdraw recently-implemented rules regarding Appalachian surface mining that have caused significant barriers and delays in issuing job-creating coal mining permits throughout the region.

In a May 11 letter to EPA Administrator Lisa Jackson, Rogers and his colleagues requested that EPA instead process pending applications under existing rules while seeking comment from the public on the proposed changes.

“With the EPA’s new rules on surface mining, the Obama Administration has unveiled the latest tactic in its war against Appalachian coal,” said Rogers in a May 11 press statement. “In these challenging economic times, we cannot afford to put 80,000 jobs on the line because the EPA is undertaking a one-sided power-grab, overriding the states, and changing the rules with no warning and with no good reason,” he said.

A copy of the letter is available at: Letter to EPA.

Newsworthy

Nevada Supreme Court to Hear Mining Tax Proposal Case

The Nevada Supreme Court on June 7 will hear arguments over the legality of a proposed ballot initiative that could impose massive new taxes on the state’s mining and natural resource producers.

The challenge is being brought by the Nevada Mining Association against a proposed ballot measure that would ask voters to approve an amendment to the state’s constitution.

The Nevada Constitution currently says a tax of up to 5 percent on the net proceeds of minerals could be charged. The initiative calls for a tax of no less than 5 percent on the gross proceeds of minerals.

The Progressive Leadership Alliance of Nevada is trying to gain the 97,000 signatures necessary to get the measure on the ballot this November, but so far is well short of that threshold, telling the Las Vegas Sun they have collected between 20,000-25,000 signatures to date. The group has until June 15 to get all the required signatures.

In response to the efforts by PLAN, “Nevadans for a Strong Economy,” a new coalition of citizens and businesses dedicated to promoting responsible economic policies, has recently been launched.

More information on “Nevadans for A Strong Economy,” including how to join, is available at: www.notaxscheme.com.

DOE Predicts Increased Coal Use for Electricity by 2035

The U.S. Department of Energy’s Energy Information Administration (EIA) this month released its Annual Energy Outlook 2010, which predicts that total coal-based electricity generation will increase 0.5 percent annually through 2035 to 2,305 billion kilowatt-hours.

Coal maintains its position as the largest fuel provider for U.S. electricity, with the EIA anticipating the addition of 21 gigawatts of additional coal capacity in the power sector between 2008 and 2035. While only 12 percent of total capacity additions are coal, it remains the largest source of electricity generation, providing 44 percent of U.S. power generation in 2035. Natural gas is projected to provide 21 percent of electricity generation; nuclear 17 percent; and renewables, including hydro, wind, solar and biofuels, providing 17 percent by 2035 in EIA’s reference base case analysis.

Overall, coal production increases 6 percent during the period, reaching 1.285 billion tons with Western coal production providing much of the additional output.

A copy of the report is available at: Annual Energy Outlook 2010.

U.S. Air Force to Test “Coal-Powered” Jet Aircraft

The Washington Examiner recently reported that Houston-based energy company Accelergy has begun production of biojet fuel using a mix of Camelina oil and liquefied coal for evaluation by the U.S. Air Force (USAF).

The Department of Defense will likely set standards for synthetic jet fuels in 2013, and CEO Tim Vail claims that Accelergy’s fuel will be able to meet those standards.

“Accelergy is the first to provide 100 percent synthetic jet fuel for the USAF with high thermal stability, increased energy density, lower environmental impact and competitive costs,” Vail told the Examiner.

In 2009, Accelergy entered into a cooperative research and development agreement with USAF for testing fully synthetic fuels that meet or exceed military jet fuel standards.

The company expects fuel deliveries to the Air Force for testing will begin later this year.

A complete copy of the Examiner’s story is available at: Air Force testing coal-powered planes.

Smart Science

University of Illinois Study Charts Job Potential from
State’s Proposed Advanced Clean Coal Projects

A recent analysis prepared for the Illinois Chamber of Commerce found that between 6,500 and 12,300 construction jobs would be created from clean coal projects proposed in the state.

In addition, 6,200 to 8,200 permanent jobs would be created for the annual operation of these clean coal plants or projects.

The analysis looks at the combined direct and indirect economic employment potential for coal plant/project construction and operations over a 30-year period, noting the tremendous “ripple effect” throughout the state’s economy.

A copy of the report is available at: Illinois Chamber of Commerce study.

From the Heartland

Arch Coal Honored with State Environmental Awards

Arch Coal this month announced that its Cumberland River Coal Company as well as Surface Supervisor Wayne Smith earned Virginia state environmental awards for outstanding reclamation efforts.

Cumberland River’s Pardee surface mine was honored with the Virginia Excellence in Reforestation Award for its forestry reclamation project that utilized the Forestry Reclamation Approach to plant native hardwoods in loose soil instead of compacted soil. This project also included the planting of blight-resistant American Chestnuts and native shrubs, along with the creation of wetland features to attract wildlife.

Cumberland River’s Wayne Smith was honored for his “contributions toward advancing reclamation on mined land” by the Virginia Department of Mines, Minerals and Energy and Division of Mine, Land and Reclamation.

The awards were presented at an Interstate Arbor Day event organized by the state mining agencies of Virginia and Kentucky, and hosted by Cumberland River. Approximately 200 people, consisting of educators, researchers and industry, state and federal regulators, as well as students from Appalachia Elementary School in Virginia and Arlie Boggs Elementary School in Kentucky, attended.

More information is available at: Arch Coal Environmental Awards.