United States Mining – Page 93

Coal Companies Are Hurting. But the Coal Industry Is Not Dying. – by Daniel Gross (Slate.com – September 8, 2015)

September 8, 2015

http://www.slate.com/

Climate hawks must realize that bankruptcies aren’t the way to a lower-carbon future.

Climate hawks have been gleeful over the trend of big U.S. coal companies filing for bankruptcy. Patriot Coal filed for Chapter 11 in May, Walter Energy sought protection in July, and Alpha Natural Resources succumbed in August. And it makes sense: A financially unviable coal industry could be a big step in the movement toward a lower-carbon future.

A report this month by Taylor Kuykendall and Hira Fawad at SNL Energy found that roughly “10.4% of all the coal produced in the U.S.” in the second quarter of 2015 came from companies that have filed for bankruptcy protection. “In Central Appalachia, 37.5% of the coal mined in the quarter came from mines that were owned or operated by companies that have filed for bankruptcy since 2012,” they write.

But coal haters shouldn’t be too gleeful at this spate of bankruptcies. While some mines are being idled, they’re not being shuttered en masse. The financial failure of many coal companies, by itself, won’t necessarily bring about a low-carbon future—and for particularly Americans reasons.

No union coal mines remain in Kentucky – by Dylan Lovan (Associated Press/Salt Lake City Tribune – September 3, 2015)

September 4, 2015

http://www.sltrib.com/

Harlan, Ky. – Kentucky coal miners bled and died to unionize.

Their workplaces became war zones, and gun battles once punctuated union protests. In past decades, organizers have been beaten, stabbed and shot while seeking better pay and safer conditions deep underground.

But more recently the United Mine Workers in Kentucky have been in retreat, dwindling like the black seams of coal in the Appalachian mountains. And now the last union mine in Kentucky has been shut down.

“A lot of people right now who don’t know what the [union] stands for is getting good wages and benefits because of the sacrifice that we made,” said Kenny Johnson, a retired union miner who was arrested during the Brookside strike in Harlan County in the 1970s. “Because when we went on those long strikes, it wasn’t because we wanted to be out of work.”

Hard-fought gains are taken for granted by younger workers who earn high wages now, leading the coal industry to argue that the union ultimately rendered itself obsolete.

Legacy of Hard Rock Mining in the West — Death of a River, a Community’s Response – by Michele Swenson (Huffington Post – September 2, 2015)

September 3, 2015

http://www.huffingtonpost.com/

Michele Swenson is an author and activist.

A century and a half of hard-rock mining with no accountability, without consideration for environmental consequences or downstream neighbors has taken a heavy toll in the West. Metallic, acidic wastewater from mines have a long-term effect on agriculture, ranching, aquatic life, human and wild life, and aquifers.

A 3 million gallon dump of mustard-colored toxic waste from Gold King Mine into the Animas River on August 5 raised the most recent alarm, even as the EPA estimates that the overall discharges from local abandoned mines amount to one Gold King mine disaster every two days. Colorado officials estimate that drainage from 230 abandoned mines in the state result in the failure of 1,645 miles of 105,000 miles (1.6%) of rivers and streams to meet Clean Water Act standards.

Cited as the worst environmental disaster in Colorado history, the Summitville open-pit cyanide heap-leach gold mine sits at an altitude of 11,500 feet in the San Juan Mountains, southeast of the Gold King Mine and 40 miles west of the city of Alamosa, just east of the continental divide. The devastating fallout of this form of mining led one resident to lament that the San Juan Valley had become “the poster child for how not to do mining.”

Let Coal Die a Natural Death – by Editorial Board (Bloomberg News – September 1, 2015)

September 1, 2015

http://www.bloombergview.com/

Coal-fired electricity is becoming ever less profitable. That’s the good news — or it should be, since it gives power companies greater incentive to embrace cleaner and cheaper sources of energy.

But not every energy company is content to let the market guide its decision-making. In a role reversal, at least one energy company is asking regulators to intervene to keep coal profitable for a while longer.

In Ohio, the Public Utilities Commission is considering a request from the Akron company FirstEnergy to have consumers cover the higher cost of electricity from three aging coal plants. (One of these just underwent a $1.8 billion pollution-control upgrade to comply with federal law.)

The aim is to keep the plants open for another 15 years. Under this plan, FirstEnergy ratepayers could spend $3 billion more than necessary for electricity, according to the Office of the Ohio Consumers’ Counsel, a state agency.

Lynas CEO Digs In as Rare-Earth Prices Slump – by Rhiannon Hoyle (Wall Street Journal – September 1, 2015)

September 1, 2015

http://www.wsj.com/

CEO Amanda Lacaze says it is time for Lynas to invest more in sales and marketing to grow the business

SYDNEY—As rare-earths miner Molycorp Inc. looks to wind down production at its U.S. mine, Lynas Corp. Ltd., the only other producer outside of China, hopes to do the opposite and raise its output of elements used in batteries, magnets and other high-tech products.

To accomplish that goal, the Australian-listed miner plans to do one crucial thing: “Go out there and sell,” said Chief Executive Amanda Lacaze, in an interview.

Lynas, a former market darling, has found it tough to become a major competitor in the global rare-earths market.

The company was founded with an eye to breaking China’s stranglehold on the industry: The world’s second-largest economy has accounted for more than 90% of world-wide supply in recent times. But it took nearly a decade of development before Lynas began operations at its refinery in Malaysia’s Pahang state in late 2012.

UPDATE 1-Union mulling action on job cuts at Freeport Chile copper mine (Reuters U.S. – August 31, 2015)

August 31, 2015

http://www.reuters.com/

Aug 31 (Reuters) – A Chilean union that represents copper mine workers rejected a move by Freeport-McMoRan Inc to drastically cut staff at its El Abra mine and said on Monday it was considering action.

Last week, Arizona-based Freeport, which owns a 51 percent stake in the mine in northern Chile, became one of the first big global miners to announce it was slashing production because of slumping copper prices.

That would include reducing mining rates at El Abra by about 50 percent to cut and defer costs, and extend the mine’s life, the company said.

Over the weekend Freeport began to send out letters announcing the dismissals and refusing to negotiate, said Juana Mejias, who heads the mine’s local union, adding that around 700 workers were being fired.

“The situation is complex and a true massacre that they have carried out by dismissing 50 percent of the workforce,” she said in a statement on Monday.

Tesla Secures Lithium Hydroxide Supply for Its Battery Factory – by Mike Ramsey (Wall street Journal – August 28, 2015)

May 13, 2016August 31, 2015

http://www.wsj.com/

Electric-vehical maker in long-term contract with Bacanora Minerals and Rare Earth Minerals

Tesla Motors Inc. has secured a North American supply of lithium hydroxide through a long-term contract with mining company Bacanora Minerals Ltd. and Rare Earth Minerals PLC, giving the electric car maker a key base material used to produce lithium-ion batteries used its electric vehicles.

Tesla is building a $5 billion battery factory in Nevada that aims to reduce battery costs by 30% or more, partly by bringing in in-house materials suppliers.

The agreement with the two companies gives Tesla access to below-market-rate lithium in exchange for minimum purchase amounts over a five-year period, according to a statement.

The first phase of the battery factory, under construction near Reno, is expected to be completed next year. When the battery factory is fully built out, it will be capable of making 35 gigawatt-hours of battery cells, which is more than all of the current lithium-ion battery plants in the world today combined.

Colorado mining disaster shows Maine was right to reject mining rules — again – by Nick Bennett (Bangor Daily News – August 30, 2015)

August 31, 2015

https://bangordailynews.com/

Nick Bennett is staff scientist and watersheds project director at the Natural Resource Council of Maine.

2015 has been a year of seconds with respect to mining. For the second time, the Department of Environmental Protection submitted the same weak mining rules it submitted to the Legislature in 2014. For the second time, the Legislature wisely rejected them.

Also for the second straight year, a mining disaster occurred soon after the end of the legislative session and proved that the Legislature was right to reject DEP’s rules. On Aug. 4, 2014, the tailings dam at the Mount Polley mine in British Columbia failed, releasing billions of gallons of mining waste into pristine lakes and streams.

The effects of the pollution from this modern mine, which its owner built in 1997, will linger for decades in some of the most important salmon habitat in Western Canada.

After the Mount Polley disaster, many Mainers breathed a sigh of relief that the Legislature had blocked weak rules that would have allowed Canada-based J.D. Irving to mine at Bald Mountain.

Suppliers Feel Pain as Coal Miners Struggle – by John W. Miller (Wall Street Journal – August 30, 2015)

August 31, 2015

http://www.wsj.com/

Thousands of firms scramble for new customers; ‘it’s been catastrophic’

BROOKVILLE, Pa.—Workers in a rural warehouse here are restoring four machines: a locomotive for coal miner Consol Energy Inc., and three 1947 San Francisco streetcars.

By this time next year, the coal-mining equipment could be gone, and the workers at Brookville Equipment Corp. left repairing just streetcars.

So it goes in coal country, which has been bruised by competition from natural gas, regulation of coal’s heavy carbon footprint, and economic forces like the strong dollar. As big coal miners struggle, their equipment suppliers—thousands of firms sprinkled throughout Pennsylvania, West Virginia, Ohio and Kentucky—are scrambling to find new customers anywhere they can, from gun shops to the San Francisco Municipal Transportation Agency.

For most, nothing will replace the massive scale of the coal-mining sector, and as the generational coal crisis ripples throughout the hamlets and hollows of Appalachia, economists are debating the region’s most viable path for growth.

Appalachian coal country wants Republican nod for federal aid – by Valerie Volcovici (Reuters U.S. – August 28, 2015)

August 28, 2015

http://www.reuters.com/

WASHINGTON – A small but growing number of Appalachian coal communities are urging Republicans in Congress to support a proposed $1 billion federal aid program from the Obama administration to save local economies ravaged by the decline of the coal industry.

Nearly a dozen Appalachian coal mining communities have passed resolutions over the past few weeks supporting President Barack Obama’s Power + program, which was outlined in his 2016 budget. It will be considered in the fall when Congress returns from recess.

From towns such as Norton, Virginia, to Letcher County, Kentucky, local officials have called on their Washington representatives to back the proposal that would provide public funds for new economic activities around reclaimed coal mines in the Appalachian Mountains.

“This isn’t a partisan issue here,” said Eric Dixon, policy coordinator for the Appalachian Citizens’ Law Center in Whitesburg, Kentucky, which has helped push the resolutions across the region. “We have Republicans and Democrats in the mountains who support this plan.”

What does Carl Icahn want with Freeport-McMoran? – by Kip Keen (Mineweb.com – August 28, 2015)

August 28, 2015

http://www.mineweb.com/

The activist investor has taken a big slug of the company’s shares.

HALIFAX – It must have been an interesting exercise for a billionaire that has made a name as an activist shareholder to tackle the mining industry now. To make a list of mining targets in a decimated market with resources meaningful enough to raise the spectre of a serious shake-up at one of the world’s largest mining companies.

It’s fair to simply step back and chuckle for a moment. For a whole lot of miners are so creamed, so loss-making for so many, that an activist raider surveying the field of options must be like the bear that stumbles into a honey factory after a hurricane.

Where to start? Who can I lean on? Which shareholders will treat me sweetest? Would Barrick have been on that list? Teck? Anglo American?

Yee Gads. You wonder if some mining heads might have muttered under their breath Thursday afternoon, Thanks be to Freeport. Icahn leaves us alone.

[History] How Silver Wrecked China – by Stephen Mihm (Bloomberg View – August 25, 2015)

August 26, 2015

http://www.bloombergview.com/

China’s devaluation of the yuan last week surprised many market observers. The yuan, which is pegged to the dollar, had been rising in tandem with the U.S. currency — in part because of expectations the Federal Reserve will increase interest rates soon. With China’s economy slowing, currency markets were pressing for the yuan to depreciate, and the Chinese government, seeking to boost competitiveness in export markets, gave in to the pressure and moved the peg.

This isn’t the first time the two countries’ monetary policies have been closely intertwined. In the Great Depression, China found itself vulnerable to the price of silver, thanks to the misguided moves of U.S. policy makers.

The Great Depression was a global crisis — almost. Every significant economy was devastated, with one notable exception: China. The reason was simple. In 1929, the U.S. and every other major nation pegged their currencies to gold. As the economic historian Barry Eichengreen has described, adherence to this standard punished countries by imposing “golden fetters” that led to crippling deflation. The fixed exchange rates of the gold standard helped transmit the monetary shocks around the world.

China, alone among the world’s major economies, operated under a silver standard in which the currency was pegged to a specific weight of that metal.

China, US Seek ‘Clean Coal’ Agreement as Industry Struggles (Associated Press/New York Times – August 25, 2015)

August 26, 2015

http://www.nytimes.com/

BILLINGS, Mont. — U.S. and China officials took a major step Tuesday toward an agreement to advance “clean coal” technologies that purport to reduce the fuel’s contribution to climate change — and could offer a potential lifeline for an industry that’s seen its fortunes fade.

The agreement between the U.S. Department of Energy and China’s National Energy Administration would allow the two nations to share their results as they refine technologies to capture the greenhouse gases produced from burning coal, said Christopher Smith, the Energy Department’s assistant secretary for fossil energy.

Terms of the deal were finalized late Tuesday. Officials said it would be signed at a later date.

Smith spoke after he and other senior officials from President Barack Obama’s administration met with representatives of China’s National Energy Administration during an industry forum in Billings. The discussions took place near one of the largest coal reserves in the world — the Powder River Basin of Montana and Wyoming, where massive strip mines produce roughly 40 percent of the coal burned in the U.S.

NEWS RELEASE: Behre Dolbear Group’s Annual Where To Invest in Mining in 2015 (August 6, 2015)

August 26, 2015

http://www.dolbear.com/

TODAY it takes 10 years to discover, define, and determine the feasibility of a project and an additional 6 years or more until investors can expect returns from a greenfield mining construction project.

Markets have taken a volatile downward trend in recent months creating concern for host country governments and miners alike. Mineral prices have dropped over the last year. For example, iron ore and coal prices have fallen by half. The market correction has led to a sharp decline in foreign direct investment, forcing the governments of countries hosting new production to reassess their recent goals of extracting more benefit from the industry.

There is now a realization that governments must be more accommodating to remain competitive internationally. Lower export-related tax receipts are putting pressure on governments to adapt more austere budgetary measures.

Today, it takes six years or more until investors can expect returns from a greenfield mining construction project. It typically takes ten years to discover, define, and determine the feasibility of a project.

In Minnesota, fight between mining and environment gets personal – by by Stephanie Pearson (Al Jazeera America – August 23, 2015)

August 24, 2015

http://america.aljazeera.com/

Projects that would bring much-needed jobs could also ruin irreplaceable freshwater resources

ELY, Minn. — It’s the kind of July day that Minnesotans fantasize about in the dead of winter. Puffball clouds float in a blue sky and daisies sprout under stately pines lining Spruce Road, the main artery of an old logging network deep in the Superior National Forest about 15 miles southeast of Ely.

Paul Schurke is bumping down a dirt road in a Dodge Ram pickup truck. He owns Wintergreen Dogsled Lodge with his wife, Susan, and is famous in these parts as the explorer who co-led the first dogsled expedition to the North Pole without re-supply in 1986.

The dirt track ends before it reaches the Boundary Waters Canoe Area Wilderness, the roadless, motorless, cellphone-towerless 1.1-million-acre ecosystem where nearly 250,000 visitors from around the globe annually pilgrimage to paddle a connected chain of more than 1,000 pristine lakes.

Every night they break camp on a forested shoreline to hear the cool northern breeze whisper through the pines and loons project their mournful calls over vast stretches of open water. Occasionally an emerald display of Northern Lights flickers in a sky entirely free of light pollution.