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January 2009 Edition
CONSOL ENERGY
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AT UTAH MINING ASSOCIATION PRESIDENT'S REPORT On December 12th of last year, the Utah Mining Association's Executive Committee appointed me to serve as UMA's President. David Litvin left the organization at the end of the year and I know you join me in wishing David well. I have taken on this role through April by which time the Executive Committee will decide on a plan to determine the management of the association. Although I have served on the UMA Board of Directors for over twenty-five years my professional background has been in engineering and construction and not association management. I have had the support and encouragement from the officers and many others on the Executive Committee while I tackle this role. The Utah Mining Association remains a viable and financially strong entity that supports its membership before various regulatory agencies and legislative bodies. The Utah State Legislature is currently in session and Marilyn Tuttle, our Administrative Assistant, and I are focused on several ever changing pieces of legislation under consideration. Of particular interest is Senate Bill44 sponsored by Senator Gene Davis concerning an increase of state fees for coal mine permits. We believe that this proposed bill will be sent to an interim committee to give the association and DOGM time to agree on the magnitude of any increase. House Bill 255 sponsored by Representative Christine Watkins seeks to repeal the Sales and Use Tax relating to mining. We believe this bill will not see passage but any changes to our exemption are watched very carefully by your staff and our legislative committee. You can see what we are following and monitor the progress on any bill by accessing the legislative section of the UMA Website. The UMA legislative website address is: http://www.utahmining.org/legislation.html The UMA 2009 Legislative Directory, in pdf format, is also available at the same website address for download. Over the coming weeks I look forward to meeting with as many members as I can and remain willing to discuss any topic that may concern you and our industry. Please contact me either at the office at (801) 364-1874 or by e-mail at rob@utahmining.org Thank you.
EVENTS CONSOL ENERGY ACQUIRES NAMING RIGHTS CONSOL Energy and the National Hockey League's (NHL) Pittsburgh Penguins have announced a 21-year deal for naming rights to the new Pittsburgh multi-purpose arena. CONSOL Energy Center will be home to the Pittsburgh Penguins and is scheduled to open in time for the 2010-2011 NHL season. The facility will also serve as a centerpiece for year around entertainment in the region, including world class concerts, family shows, and a wide variety of other events. "For more than 140 years, CONSOL Energy has been a part of the Tri-State Region's history," said J. Brett Harvey, President and CEO of CONSOL Energy. "We areproud to help write a new chapter in Pittsburgh's history by sponsoring this wonderful new facility." A major partner of the organization for several years, CONSOL Energy is most commonly known by fans for its energizing "Power to the Penguins" video played prior to hockey games.
KENNECOTT CHARITABLE FOUNDATION DONATES TO LOCAL CHARITIES Copperton, Utah – The Kennecott Utah Copper (KUC) Visitors Center Charitable Foundation donated $143,000 to support 92 local community charities in December. The Foundation is organized as a Kennecott non-profit entity giving funds exclusively for public welfare, community improvement and charitable purposes, which is limited to providing help to the underprivileged. As part of the amount donated, the Copperton Lion's Club contributed $10,000 as the operator of the Bingham Canyon Mine Lion's Club gift shop. The Foundation raises money for local charities through tax-deductible entrance fees to the Bingham Canyon Mine Visitors Center. Since the inception of the charity fund in 1992, the Foundation has donated more than $2.1 million to local community charities and non-profit organizations, and hosted 2,697,400 visitors to the Bingham Canyon Mine Visitors Center. In 2008, the Visitors Center hosted 153,455 visitors. The Foundation giving is separate from the Kennecott Utah Companies corporate giving. The Foundation touches the lives of people of all different ages and walks of life. This includes charities focusing on children, veterans, disabled, homeless and senior citizens throughout the state. "Kennecott has provided a significant amount of support to Catholic Community Services throughout the years," said Kathryn Brussard, Development and Marketing Director, Catholic Community Services. "The contributions made through Kennecott's charitable foundation have supported numerous programs that have positively impacted and improved the lives of many in need." "Kennecott has always had a strong commitment to local communities," said Ted Himebaugh, General Manager, Bingham Canyon Mine and Kennecott Utah Copper Visitors Center Charitable Foundation President. "One way we demonstrate our commitment is through the Foundation." KUC's Bingham Canyon Mine Visitors Center is open to the public seven days a week from 8 a.m. to 8 p.m. April 1 to Oct. 31. Tax deductible admission fees for 2009 are $5 for passenger vehicles, $25 for mini tour buses and $50 for tour buses. There is no admission charge for school buses, veterans' group tours, boy scouts in uniform, and vans from county operated senior citizen centers.
2009 UTAH LEGISLATURE The 58th Utah legislature 2009 General Session will begin on Monday, January 26, 2009. The session will end at midnight on March 12, 2009. UMA will be following a variety of bills this year. You can see what we are following and monitor the progress on any bill by accessing the legislative section of the UMA Website. The UMA legislative website address is: http://www.utahmining.org/legislation.html. The UMA 2009 Legislative Directory, in pdf format, is also available at the same website address for download. The UMA Legislative and Tax Committee will meet each Monday morning throughout the session to evaluate bills and help formulate policy positions. If you have an interest in a bill and would like to bring it to the attention of this committee, please let us know here at UMA and we can get it to the committee chairman. If you have need for any additional information on a particular bill, please let us know and we will be happy to provide that for you. Please give us a call at 801-364-1874 or email mining@xmission.com
TO NO ONE'S SURPRISE, RAHALL REINTRODUCES MINING LAW REFORM RENO, NV - U.S. House Natural Resources Committee Chairman Nick Rahall of West Virginia has reintroduced legislation to reform the 1872 Mining Law. Rahall's bill easily won the approval of the House during the last congressional session, but was not approved in the Senate. The Hardrock Mining and Reclamation Act of 2009 (HR 269) is nearly identical to the previous bill approved by the House in 2007. It includes an 8% gross royalty on production from future mines on public lands and a 4% gross royalty from mines now operating on federal lands. It would allows the federal government to withdraw wilderness study areas, area of initial environmental concern, areas in the National Wild and Scenic Rivers System, and imposes strong permitting requirements for mines proposed near national parks, such as the Grand Canyon. The measure would also end the sales of public lands that contain mineral resources and establish a clean-up fund for abandoned hardrock mines on public lands. It would also create a community impact assistance account to provide financial assistance for communities impacted by mining, including funds for infrastructure and public services. HR 269 would also allow for the suspension of mining permits and allow the Secretaries of the Interior and Agriculture to order mines cease operations if serious environmental pollution becomes a crisis. Mine operators would only be allowed to suspend mining operations for no more than 180 days without seeking the permission of the federal government. The Secretaries could also deny mining plans of operations or exploration permits. The bill also provides for citizen lawsuits against mining or exploration programs. "I have labored to reform the Mining Law of 1872 for nearly three decades-not just to fight the giveaway of public lands and valuable minerals, and to combat the threats to human health and safety from abandoned mine lands-but because I am a supporter of mining," Rahall said. "I believe we can no longer expect a viable hardrock mining industry to exist on public domain lands in the future if we do not make corrections to the law today." Rahall also named Rep. Jim Costa, D-California, to again chair the Subcommittee on Energy and Minerals Resources, which will oversee any hearings on HR 269. However, National Mining Association President and CEO Hal Quinn said the bill will put "thousands of high-paying mining jobs and mining-dependent communities through the West" at risk. "These are jobs and operations that play a vital role in rebuilding America, but they cannot shoulder the world's highest royalty and remain competitive in the international markets." Quinn added that the royalty and other aspects of HR 699 "are duplicative of other U.S. laws and regulations would needlessly jeopardize U.S. metals mining-further increasing our dependence on foreign sources for the metals we will need to rebuild America." "NMA supports responsible updates to the General Mining Law to keep U.S. mining strong, but this is the wrong medicine for our economy and crushing news for thousands of families in America's mining community," he concluded.
2008 SAFEST MINING YEAR ON RECORD; The Mine Safety and Health Administration (MSHA) recently confirmed that 2008 marked the safest year on record in U.S. mining. Following the release of MSHA's year-end safety data, NMA President and CEO Hal Quinn said the data demonstrate the success of the mining community's comprehensive efforts to continually improve safety performance. Quinn emphasized that mine operators continue to work towards a goal of zero fatalities. According to MSHA, 51 mining employees lost their lives on the job during 2008, while half the nation's mines operated without a single lost-time injury. "The 51 fatalities at U.S. mines in 2008 are a great loss to all of us," said Quinn. "Their loss also means we are short of the only goal that counts – zero fatalities," said Quinn. U.S. mining is back on track with year-over-year improvements in mine safety that began in the 1990s -- a trend that has resumed in a year with record new employment and resource production." "By achieving our safest year on record in 2008, U.S. mining is demonstrating that significant improvements in workplace health and safety can be realized through the use of advanced technology, enhanced safety training and awareness, sound laws and regulations and sophisticated risk analysis," said Quinn. "It takes a commitment by all members of the mining community -- operators, miners and regulators -- to use all these tools to make good on our shared commitment to achieve zero fatalities and injuries in America's mines." Quinn stressed that more than $500 million has been invested in new safety and training technology at U.S. mines over the last three years. He noted that "mines are promoting mine safety and health as a core value -- instilling the values of safety leadership, accountability and personal involvement in every employee and providing them with the training and tools to prevent fatalities, injuries and occupational illnesses." In an effort to further improve mine safety, NMA unveiled the "Stay Away, Stay Alive" safety campaign deigned to reduce accidents and fatalities associated with unsafe activity in proximity to continuous mining machines in underground coal mines. "This is a voluntary awareness program specifically tailored to a safety need our industry has identified," said Alliance Resources Partners President and CEO Joe Craft, who also chairs NMA's Safety, Health & Human Resources Committee. "Our goal at NMA is to continue to be proactive going forward," said Craft. NMA and its member company safety professionals developed new safety training and awareness materials based on analyses of actual accident reports. The materials highlight specific actions that should be avoided. The materials include a training video, as well as hard hat stickers and a safety poster that build on the information in the video, which are meant to provide ongoing awareness of the campaign. NMA will provide the new safety materials to safety directors at NMA member companies and is making them available to all U.S. underground coal mining companies as part of the association's commitment to bring every miner home safely at the end of every shift. The innovative program is a first step intended to help lay the groundwork for the next generation of underground mining technology that will be used to detect unsafe proximity to mining equipment. More information on NMA's safety campaign is available at: http://www.nma.org/stay_alive.asp
REP. ELLSWORTH INTRODUCES NEW MINE SAFETY TAX CREDIT BILL Rep. Brad Ellsworth (D-Ind.) introduced tax incentive legislation designed to assist mine operators' efforts to deploy the latest in mine safety technology. The bill also contains provisions targeted at strengthening mine rescue team training. The "Improved Mine Safety Act of 2009" provides a 50 percent tax credit covering the cost of qualified advanced mine safety equipment. Equipment covered by the tax credit include emergency communication technologies and devices for constant communication with individuals outside the mine; electronic identification and location devices; emergency oxygen-generating devices; pre-positioned oxygen supplies; and comprehensive atmospheric monitoring systems that monitor levels of carbon monoxide and other gases. For mine rescue training, the bill revises an existing tax credit by increasing the size of the credit, allowing the credit as an offset against the alternative minimum tax and making the credit permanent. "On behalf of the nation's mining community, NMA thanks Rep. Ellsworth for introducing legislation to provide important investment incentives that will accelerate the introduction of new safety technologies, safety training and additional mine rescue capabilities into the nation's mines," said NMA Senior Vice President of Regulatory Affairs Bruce Watzman. "U.S. coal mining operators are working rapidly to develop and deploy new safety procedures and equipment, and Congressman Ellsworth's legislation will help advance the installment of the latest and most advanced technologies, while also improving the response capabilities of mine rescue teams," said Watzman. "We applaud Congressman Ellsworth for his dedication and hard work towards improving the safety of coal miners both in Indiana and across the country.
MSHA PUBLISHES FINAL MINE RULE The U.S. Department of Labor's Mine Safety and Health Administration (MSHA) has published the final rule that requires operators of underground coal mines to provide refuge alternatives to protect miners when a life-threatening event occurs that makes escape impossible. The rule is based on agency data and experience, recommendations from the National Institute for Occupational Safety and Health report on refuge alternatives, research on available and developing technology, state regulations, and public comments and hearing testimony. The rule implements Section 13 of the Mine Improvement and New Emergency Response (MINER) Act of 2006. "This final rule will help reassure coal miners that, should a mine emergency occur that prevents them from escaping, they will have a protected, secure area to sustain them while they await rescue," said Richard E. Stickler, acting assistant secretary of labor for mine safety and health. Underground coal mine operators must address the location, capability and capacity of refuge alternatives in written Emergency Response Plans; train miners to locate, transport, deploy, use and maintain refuge alternatives; conduct pre-shift examinations of refuge alternatives and components; and locate refuge alternatives on mine maps. Two types of refuge alternatives are allowed: Pre-fabricated selfcontained units, and units consisting of 15 psi stoppings constructed prior to an event in a secure space with an isolated atmosphere. Other refuges currently approved in Emergency Response Plans would be phased out over time. Refuge alternatives must provide at least 15 square feet of floor space per person and, depending on mining heights, 30 to 60 cubic feet of volume per person. The airlock can be included as useable space. For locations near the working section, the capacity is the maximum number of persons that can be expected on or near the section at any time. In an outby area, the capacity is the maximum number of persons reasonably expected to use the refuge alternative. Refuge alternatives must be located within 1,000 feet from the nearest working face and from locations where mechanized mining equipment is being installed or removed; and within 1-hour travel distances in outby areas, unless the operator requests - and the MSHA Refuge alternatives and their components need to sustain persons for 96 hours, or 48 hours if advance arrangements are made for additional supplies from the surface. Food, water, lighting, first-aid
supplies, and sanitation are required. A two-way communication system that is part of the mine communication system - which can be used from inside the refuge alternative - and an additional communication system and other specifications set forth in the operator's approved Emergency Response Plan, are required.
Return to Top of Page EIA OUTLOOK PREDICTS INCREASED COAL USE The Energy Information Administration (EIA) has released its preliminary Annual Energy Outlook 2009, which predicts that total coalbased electricity generation will increase nearly 1% annually through 2030 to 2,401 billion kilowatts hours. However, the outlook forecast that coal's share of the electricity generation market will stand at 47% in 2030 isdown from the 55% figure predicted in the 2008 outlook. That projection is predicated on an expected dramatic rise in renewable source generation due to renewable fuel standards expected to impact generation in many states. Regarding coal-to-liquids transportation, the preliminary forecast predicts that 76 million tons of coal will be needed for domestic CTL production through 2030, a 45% drop over the agency's previous 2030 projection of 137 million tons.
ENERGY
UTAH ENERGY DEBATE: COAL AND RENEWABLES Utah has coal, but it needs to look at renewable energy resources. Utah needs to look at renewable energy resources, but it already has coal. Those two similar-sounding but diametrically opposite viewpoints emerged during an energy-development forum at the Capitol. Some speakers wanted the state to focus on renewable energy resource development, while others said coal remains a plentiful and relatively affordable resource for at least the near future. Eighty-seven percent of Utah's energy needs are met by coal-fired generation, compared with 50 percent nationally. But Dianne Nielson, energy adviser for Gov. Jon Huntsman Jr., said technologies must be put in place to help coal burn cleaner in order to reduce emissions, and the state must diversify its energy resources "and bring on renewables." Huntsman has set goals for energy-efficiency, the expansion of renewable energy use and the reduction of emission levels. "There isn't any question that Utah's economy will grow, but it has to grow with a diverse set of resources, and it must include renewables in the future, such as solar, geothermal, and wind. It's alternative fuel for transportation, compressed natural gas, hybrid vehicles, all kinds of plug-in hybrids," she told a crowd of about 60 at the forum, presented by the Women's State Legislative Council of Utah. "We have the ability and we have the resources in Utah to accomplish all of them." But Kimball Rasmussen, president and chief executive officer of power-generation company Deseret Power, stressed a need for "balance." Coal is a low-cost and native resource for Utah's energy needs, he said. "If you want affordability, sustainability and predictability, build from a base that's already working, and go forward from there," he said. "That's the message that we have. We'd like to encourage Gov. Huntsman to adamantly defend the base that we have as we aggressively move forward to the new situation of greener and cleaner resources in the future." Rasmussen said policy makers face public pressure to "do something," but "gutting" coal-fired power plants by placing environmental restrictions on them could have severe economic impacts. Businesses facing higher energy costs could opt to move operations to countries with worse emissions problems, he said. Rep. Roger Barrus, R-Centerville, said Huntsman's "silence" about the use of fossil energy resources is disappointing. "Regardless of what we do, these new technologies that are on the horizon are at least a decade or moreaway, and the question I have in my mind is, how do we bridge that gap between now and 10 or 15 or 20 years, when they really become commercially viable and can be used in a broad enough arena that they can replace the fossil energy resources we now have?" Barrus said. "I think we're going to be faced with electrical brownouts, fuel shortages and a lot of other things if industry is not allowed to find a way to bridge that gap during the next decade or so." Vanessa Pierce, executive director of the Healthy Environment Alliance, or HEAL, of Utah, urged a look at renewable energy options. She noted that coal is reliable and cost-effective but added that Utah's reserves are limited to perhaps 50 years. She also said Utah communities relying on the coal industry could face a future akin to the present situation of Flint, Mich., which is suffering after years of near-complete dependence on the auto industry. John Baza, director of the Utah Division of Oil, Gas and Mining, cited projections by the federal Energy Information Administration showing that fossil-fuel use in the U.S. will drop by only 3 percent between now and 2030. "That tells me that we're kind of stuck with fossil fuels for a while, that the only way to replace that is to rapidly develop things like nuclear. . .to rapidly move to things like wind and solar. But the Energy Information Administration is saying that shift is not going to occur that rapidly," Baza said. Robin Riggs, vice president and general counsel for the Salt Lake Chamber, said the state needs fossil fuels but also needs to invest "aggressively" in renewable energy development while trying to avoid a spike in customers' energy price. "They don't call these things nonrenewables for nothing," he said.
IN CLIMATE FIGHT, A TIME FOR
CIVIL DISOBEDIENCE? Take the train. Dial down your heat. Write your senator. Taking those individual steps surely helps in the battle against global warming. But, scientists and advocates warn, it's no longer enough to fend off climate disaster. Get ready, some of them say, to hijack oil-lease sales (like a college student did in Utah), to climb smokestacks in protest (like Greenpeace activists did in England), to trespass at power plants (like demonstrators plan to do in Washington, D.C.). It's time, these environmentalists say, for some good, old-fashioned civil disobedience -- the types of nonviolent acts proven effective by the famous (Mohandas Gandhi, Martin Luther King Jr., Rosa Parks) and the faceless (students at Tiananmen Square, anti-war protesters on college campuses, women suffragists in street marches). At a recent Environmental Ministry meeting at Salt Lake City's First Unitarian Church that drew more than 300 people, Tim DeChristopher, the 27-year-old University of Utah economics student who disrupted a December drilling-lease auction, called for an "uprising." DeChristopher didn't use the word lightly, he said, yet "anything short of that will not get us where we need to go." Heeding such calls, organizers are mobilizing for a mass act of nonviolent civil disobedience March 2 to protest coal-fired power plants and the damage industrial pollution has caused to the planet's climate. "We're hoping and preparing for thousands," said Matt Leonard, the Greenpeace coordinator for the event. "It will certainly be the largest such action on climate change in U.S. history. We hope it will be the first of many." Protesters will gather at the Capital Power Plant in Washington -- source of heat and refrigeration for the entire Capitol complex -- walk on to the property, sit down and thereby break the law. "Enough is enough. Action needs to be taken," Leonard said. "But to really meet the climate crisis, we need collective action. You can't do that by buying light bulbs and hybrid vehicles." Gore's plea: The March 2 demonstration will be the first major protest since former Vice President Al Gore, a Nobel Peace Prize winner, in September called for moral lawbreaking. "If you're a young person looking at the future of this planet and looking at what is being done right now, and not done, I believe we have reached the stage where it is time for civil disobedience to prevent the construction of new coal plants that do not have carbon capture and sequestration," Gore told the Clinton Global Initiative gathering to loud applause, according to Reuters news service. Since then, author and environmentalist Bill McKibben and poet Wendell Berry have chimed in. Last month, they wrote an open letter, which has circulated widely on the Web, urging mass civil disobedience against coal in March. "We will cross the legal boundary of the power plant, and we expect to be arrested," they wrote. "The worldwide daily reliance on coal is the danger; this is one small step to raise awareness of that ruinous habit and hence help to break it." But the thought of moving beyond conventional acts -- voting, lobbying, giving up cars -- stumps or scares some would-be activists. Others would never dream of breaking the law. After the First Unitarian Church meeting, Robert and Amy Matheson said they felt more aware of the enormity of climate disruption but were unsure what to do next. They didn't know what civil disobedience looked like and were wary of it -- given the risks. "I'm kind of a chicken," Amy Matheson said. "I wouldn't be willing to sacrifice my family, my freedom, my life." Maybe if he were emotionally invested, Robert Matheson reasoned, he would be less afraid. Personal stake: All humans are invested in coal, activists say, even if they don't recognize it. Coal-industry advocates point out that the United States gets about half its electricity from coal; nearly all of Utah's electricity is coal fired. The U.S. Energy Information Administration estimates domestic coal could last for over 250 years at current-use levels. The countries where coal is the primary energy fuel are polluting everyone's lives. Some of the evidence: unprecedented asthma rates in children, the enduring drought in the American Southwest, the worst drought in Australia in 1,000 years, crop failures in Africa, the filthy air on the Wasatch Front, the cheat grass on the Western range and the fires that feed on it. Growing awareness of coal's downside led a British jury in September to acquit Greenpeace activists who climbed a 650-foot coal-plant smokestack in an attempt to shut it down. The jury reasoned that global warming is causing greater harm than Greenpeace. DeChristopher saw his own transgression as a step toward Earth's salvation. With climate chaos looming, he said, "How could I not do this? How could I sit by and be complicit in my own destruction?" The U. student could face federal felony charges and even prison for his protest. Still, he urges more people to do what he did: If an opportunity presents itself, find your voice and stand your ground. But don't go all out without cause, warned Daniel Kessler, a Greenpeace spokesman in San Francisco. "There's no reason for civil disobedience if another [measure] is more effective."
U.S. METAL & INDUSTRIAL MINERAL MINE SALARIES, WAGES AND BENEFITS SURVEY Workers at U.S. metal and industrial mineral mines overall showed increased wages, bonuses and benefits, according to a newly released survey by the CostMine Division of InfoMine. Fifty-three metal and 69 industrial mineral mines in 28 states responded to the twenty-fourth annual survey U.S. Metal and Industrial Mineral Mine Salaries, Wages and Benefits, 2008 Survey Results, published in January 2009. The survey reported increases for hourly employees ranged from 1.0% to 18.0%. The highest paid employees worked in the Alaska mines, commanding over $35.00 per hour in base wages. In the lower 48, Nevada gold mines also paid high wages, topping out over $30.00 per hour in base wages. Employees also had the opportunity to increase their paychecks through incentive bonus plans and overtime pay. Seventy percent of the mines reported using some form of incentive bonus plan. Safety, profit, production, and cost savings are the most commonly cited criteria. So what is going to happen in 2009? That is the question. Will we see a big correction? Not likely, our past experience in this area has shown that as jobs become scarcer, wages tend to level off or drop only slightly. Only rarely do employers lower wages. In this economic environment, cutting benefits and bonuses are more common. In fact, some mines that continue to operate often end up paying higher wages, on average, as they lay off those employees that have the least seniority and therefore, are paid less. Our report will give mining and human resource professionals the data they need for making decisions on compensation and benefits to remain competitive in this challenging environment. Details about this survey are available at www.costmine.com
WORLDWIDE: MINING'S RISING FORTUNES Withering cost cuts across the mining industry have left tens of thousands of people without jobs from Utah's mountains to the Andes -- and there is a litany of evidence that the situation is growing worse. International mining companies, which only months ago were flush with billions in cash amid sky-high prices for commodities and global demand, also have postponed or canceled projects and padlocked the gates to mines as consumers have cut spending on cars, jewelry and housing. Global mining giant Rio Tinto, parent of Kennecott Utah Copper, announced earlier this month that iron ore production, used to make steel, tumbled 18 percent in the fourth quarter and said its aluminum subsidiary would double previously announced production cuts. In response, more than 240 jobs will be lost in Utah as part of a Rio Tinto effort to trim 14,000 jobs worldwide. Locally, employees will be cut from all of the company's business units, including Kennecott Utah Copper, Kennecott Land and Kennecott Exploration. Rio Tinto, which counts Kennecott Utah Copper as one of the shining stars of its worldwide minerals empire, employs 2,400 in Utah, including about 1,800 people at the Bingham Canyon Mine on the eastern slope of the Oquirrh Mountains in Salt Lake County. Worldwide, unwanted copper, gold, bauxite (used in aluminum) and iron ore, is piling up or being left underground as the worst recession in at least a generation saps demand. "Expect inventories to get bigger and expect this continuing process [of cutbacks]," said Andrew Martyn, a portfolio manager who specializes in mining for Toronto- based Davis-Rea Ltd. "It's going to go for quite some time." The effect on many communities worldwide that rely on mining has been immediate. Workers are protesting job cuts and others are expected to begin migrating in large numbers in search of work, some across international borders. "A lot of the communities are remote so that when [mines] do shut down, the town actually collapses," Martyn said. The bulk of the layoffs in the United States are in base metals such as copper and zinc, although major companies are scaling back production of metallurgical coal for use in steel manufacturing. Coal companies have slowed production from Utah to Australia. Coal jobs are among the highest-paying in many rural U.S. communities, potentially creating a dire economic ripple effect. In the past, coal companies have been more recession proof, but the average price per ton for Appalachian coal has fallen more than 35 percent since the summer.
MINING JOBS INCREASE The U.S. Department of Labor (DOL) have reported that U.S. mine operators have created 16,000 new jobs in 2008, defying a nationwide job loss trend that has seen the U.S. lose 2.7 million jobs since December 2007. At the end of November 2008, according to DOL's Bureau of Labor statistics (BLS), about 7,400 new coal mining jobs had been created. The upswing in coal jobs represents a 9.4% increase from 2007. Since the report was released, some layoffs have been announced by U.S. producers due to worldwide economic conditions. For November, BLS reported that the U.S. had lost a total of 533,000 jobs. However, the agency reported that coal mining jobs jumped by almost 1,000 for the month, marking a 1% growth.
GOVERNORS 2009 ECONOMIC REPORT Through the last two decades, the Economic Report to the Governor has served as the preeminent source for data, research, and analysis about the Utah economy.It includes a national and state economic outlook, a summary of state government economic development activities, an analysis of economic activity based on the standard indicators, and a detailed review of industries and issues of particular interest. Below are some of the facts that are available in the economic report: In 2008 mining-related exports totaled $5.1 billion or 48% of the State's total exports; 24 million short tons of coal were produced in 2008 in Utah at a value of $645 million; and natural resources and mining registered the highest job growth rate in Utah at 12.4% in 2008. This report is available on the Governor's Office of Planning and Budget's web site at http://www.governor.utah.gov/dea.
Return to Top of Page 2009
11 Exexcutive Committee Meeting. (persons involved will be notified by e-mail) 13 Board of Directors Luncheon. (persons involved will be notified by e-mail) 22-25 SME Annual Meeting and Colorado Mining Association's National Western Mining Conference, Denver, CO. For more info. visit: www.smenet.org
9-11 Spring Coal Forum, Tampa (Clearwater) Florida. For more info. visit: www.springcoalforum.com/ 25-27 World CTL 2009, Renaisance Mayflower Hotel, Washington D.C. For more info. visit: www.world-CTL2009.com
9-13 Global Uranium Symposium, Keystone, CO. for more info. visit: www.u2009.org
MSHA 16-Hour Training for Metal/Non-Metal Surface Miners, 8 a.m. to 5:00 p.m. Cost $175 Utah Safety Council, 801-478-7878 or 800-933=-5943 For more info. visit http://www.utahsafetycouncil.org/training/mine_health.asp February 19-20, 2009 MSHA 8-Hour Annual Training for Metal/Non-Metal Surface Miners, 8 a.m. to 5:00 p.m. Cost $75 Utah Safety Council, 801-478-7878 or 800-933=-5943 For more info. visit http://www.utahsafetycouncil.org/training/mine_health.asp
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