The People v. the Coal Baron – by David Segal (New York Times – June 20, 2015)

http://www.nytimes.com/

Don Blankenship always knew exactly what he wanted during the years he ran Massey Energy, once the sixth-largest coal company in the United States. He had specific and emphatic ideas about how to operate mines, how to treat employees and how to deal with regulators. When he issued instructions, he wanted them followed to the letter, and this wasn’t just true about his business.

It was also true about his breakfast.

His former maid, Deborah May, discovered this when she was dispatched one morning to McDonald’s to pick up an egg-and-cheese biscuit for her boss. What she returned with had bacon in it, and that was a problem. Mr. Blankenship flung the bacon, Ms. May recalled in a deposition, part of a lawsuit over unemployment benefits.

“He grabbed my wrist,” she said, and gave her a quick lecture: “Anytime I tell you to do anything, I want you to do exactly what I tell you to do and nothing more and nothing less.”

That was a well-known directive at Massey Energy. Middle managers would occasionally find cans of Dad’s Root Beer on their desks — a mnemonic for “Do as Don Says.”

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Happy days here again for NM mine industry – by Kevin Robinson-Avila (Abuquerque Journal – June 22, 2015)

http://www.abqjournal.com/

The Great Recession cut the bottom out of most mining operations in New Mexico but, in general, the industry is now back on a steady growth path and one sector – potash production in southeast New Mexico – is downright booming.

Overall, total income from mining operations statewide reached a record high in 2013 at $2.8 billion. That’s up from a low of $1.7 billion reported in 2009 during the throes of recession and it’s 27 percent higher than the state’s previous record of $2.2 billion before the economy crashed.

That’s good news for the New Mexico economy, particularly in rural areas, where mining now directly employs about 7,100 people. That represents a nearly 40 percent growth in jobs since 2009, when layoffs in copper production hit the Silver City area, contributing to a 28 percent statewide plummet in mining employment.

And some major new projects could be coming online in the next few years. That includes a huge new potash mine in Lea County, a copper operation near Hillsboro, and the state’s first magnesium mining and processing complex near Deming.

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COMMENTARY: Iron Range legislators: Cross us at your own risk – by Ron Way (Minneapolis Star Tribune – June 22, 2015)

http://www.startribune.com/

It was outrageous that a few legislators huddled in the dead of night at the end of this year’s legislative session and secretly agreed to slip language into a bill to abolish the Minnesota Pollution Control Agency’s Citizens’ Board.

But it’s a mistake to think, as too many do, that the board was done in by big agriculture’s concern that the board had reversed a PCA staff decision and required more environmental study of a planned animal feedlot. It’s another mistake to think that Minnesota business interests were finally successful in salving their decades-long pique that the PCA and its board burden business with “overregulation.”

The PCA board has dealt with many controversial ag and business issues ever since it was created in 1967. Ag got its pound of flesh early on when the Legislature required that one member of the nine-member board be a farmer. Business was able to dilute citizens’ power when then-Gov. Arne Carlson made his MPCA commissioner the board’s chair.

What really happened this year was that Iron Range legislators saw an opportunity to send yet another pointed message to everyone in government that there’s a political price for saying or doing anything that even hints of opposition to long-planned copper-nickel mining in northern Minnesota, with the environmentally dangerous sulfates that come with ore extraction.

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Our view: We’ll all be helping struggling iron mines (Duluth News Tribune – June 15, 2015)

http://www.duluthnewstribune.com/

After a staggering 1,000-plus announced layoffs over recent months, Northeastern Minnesota’s iron-mining industry clearly needs a boost. Thanks to the Minnesota Legislature, every time any one of us flips on a light switch we’ll help provide it.

An energy-jobs bill passed during Friday’s special session authorized lower electrical rates for iron mines and other big energy guzzlers. They’ll pay less, leaving us little-guy residential and commercial power users to pay more to make up for it.

While this fact probably won’t help ease the pain of opening your Minnesota Power bill in the near future, for years, the utility said, the guzzlers have been paying more and the rest of us have been enjoying more-affordable rates as a result. We’ve had it good for some time. When Minnesota Power last raised rates in 2011, for example, state regulators approved a 4 percent increase for residential customers and a 16 percent increase for mines and other large industrial customers, as the Star Tribune reported Friday.

So the legislation approved Friday simply allows Minnesota Power to set rates more in line with actual energy use — for both big and small customers, said Pat Mullen, Minnesota Power’s vice president of marketing and communications.

“We have some of the lowest (electrical) rates (for residential customers) in the nation.

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New Mexico Supreme Court asked to review ‘copper rule’ – by Associated Press (Washington Times – June 14, 2015)

http://www.washingtontimes.com/

SILVER CITY, N.M. (AP) – New Mexico’s attorney general and environmentalists want the state’s highest court to review an appellate court’s upholding of regulations that govern groundwater pollution by copper mines.

Attorney General Hector Balderas and several watchdog groups have filed a petition asking the state Supreme Court to weigh in on a previous ruling maintaining the “copper rule.” The regulations, which were approved in September 2013, allow mining companies to exceed water-quality standards at mining sites. This includes new engineering requirements for handling leftover rock, leach piles, tanks and pipelines.

The Supreme Court could decide any day whether to hear the case or dismiss the petition. If the panel reviews the case, a final decision could take years.

Clean-water advocates say the regulations give copper-producing companies too much leeway to pollute groundwater.

“The copper rule flies in the face of the Water Quality Act,” said Douglas Meiklejohn, a New Mexico Environmental Law Center attorney representing the advocacy groups.

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Miners Wait Years to Get U.S. Permits as Republicans Push Reform – by Stephen Stapczynski (Bloomberg News – June 9, 2015)

http://www.bloomberg.com/

The $6 billion Resolution Copper Project in Arizona was discovered almost two decades ago and is slated to become North America’s largest copper mine. Don’t expect production to start any time soon.

Co-owners Rio Tinto Group and BHP Billiton Ltd. waited 10 years to get federal approval in December to gain access to the land. It will probably take another five years to get permits from various federal, state and local agencies for the mile-deep shaft in Arizona.

The tortuous bureaucratic process to approve new mining projects in the U.S. is among the slowest in the world, hindering access to mineral resources that the National Mining Association values at $6.2 trillion. It’s drawing criticism from mining executives and has spurred a Republican-backed push to reform mining laws.
“The U.S., by and large, is the longest of the permitting exercises,” said Diane Garrett, chief executive officer of Romarco Minerals Inc.

Romarco began applying for permits for its Haile gold mine in South Carolina in January 2011 and got federal approval in November. Because the mine is on private land, fewer agencies get to weigh in on permits than for projects on public land, and the process is typically faster. Yet, in one case, a federal agency asked the Toronto-based company to duplicate a study it had already completed for Haile, delaying the process by a year.

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PolyMet environmental review decision still months away – by John Myers (Duluth News Tribune – June 9, 2015)

http://www.duluthnewstribune.com/

State and federal regulators did not meet their goal to have a revised environmental review document on the proposed PolyMet copper mine near Hoyt Lakes completed by early spring, but it should be ready this summer.

A final decision on whether the environmental review, now underway for nearly a decade, is “adequate” is now expected by the end of 2015.

That was the word this week from Tom Landwehr, commissioner of the Minnesota Department of Natural Resources, who said state and federal regulatory agencies are “very close” to making the document available to other agencies and, under open records laws, to the public.

The DNR, U.S. Army Corps of Engineers and U.S. Forest Service have been poring over 58,000 public comments made on the Supplemental Draft Environmental Impact Statement that went public in 2013.

It was by far the most comments ever received on a project in Minnesota, and in some cases the issues raised required the agencies, consultants and PolyMet to rerun computer models and make other technical changes in the proposal.

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Montana takes action on mine waste after B.C. dam failure – by Gordon Hoekstra (Vancouver Sun – June 7, 2015)

http://www.vancouversun.com/index.html

New laws spearheaded by industry after Mount Polley dam failure

The pollution caused by last summer’s dam failure at the Imperial Metals’ Mount Polley and the recommendations from an expert panel this January are having effects in the United States.

Six weeks ago, Montana changed its laws in response to the B.C. mine disaster, entrenching in statutes design standards for mine waste-storage facilities, qualifications for engineers and requirements for independent review panels.

The law changes were spearheaded by industry through the Montana Mining Association and sponsored by Republican state Senator Chas Vincent.

In B.C., the mining industry has been cautious in its response to the expert panel recommendations, which included the call for the independent review panels made up of senior geotechnical engineers. And while the B.C. Liberal government says changes are coming, it has said a review of provincial laws could take at least a year.

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Mining Union President Urges Members to Lobby Against Natural Gas Plants – by Kris Maher (Wall Street Journal – June 3, 2015)

http://www.wsj.com/

The United Mine Workers of America is reeling from the loss of coal-mining jobs in Appalachia

MORGANTOWN, W.Va.—United Mine Workers of America President Cecil Roberts urged his members Wednesday to lobby against new natural gas power plants and rally around other political battles as the union reels from the loss of coal-mining jobs in Appalachia and threats to benefits plans for thousands of retirees.

The coal industry faces unprecedented competition as more natural gas is used to generate electricity, overseas demand has waned and the Obama administration proposes tougher emissions standards for power plants. Companies have laid off waves of miners in West Virginia, Pennsylvania, Virginia, Kentucky and Alabama.

“Our members are being laid off in numbers we haven’t seen in decades,” Mr. Roberts told several hundred union members and retirees clad in United Mine Workers of America shirts and baseball hats. The union called the meeting two days ago amid growing anxiety among its membership.

Mr. Roberts said a priority for the union is halting several gas-fired power plants planned for the region that compete directly with plants using coal. He said the union will oppose any tax breaks for natural gas projects.

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State of Minnesota lowers mineral royalty for U.S. Steel – by John Myers Duluth News Tribune – June 3, 2015)

http://www.duluthnewstribune.com/

Minnesota’s top elected officials voted unanimously Wednesday to cut the fees the state charges U.S. Steel Corp. to mine iron ore on state lands on the Iron Range.

The vote is an effort to help the big U.S. steelmaker navigate through tough economic times pushed by a flood of cheap foreign steel and iron ore.

The Executive Council—the governor, lieutenant governor, secretary of state, treasurer, auditor and attorney general—voted to cut the royalty rates for U.S. Steel operations for 15 months, a break that could hit more than $4 million.

Royalties are the fees mining companies pay to whoever owns the mineral rights where they mine, in this case, the state of Minnesota.

The move means less money coming in to the state’s Permanent School Trust Fund and other funds stocked by the mining fees.

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New mine in an old pit: Barrick begins mining at Arturo – by Marianne Kobak McKown (Elko Daily Free Press – June 4, 2015)

http://elkodaily.com/

CARLIN – An old mine site has been reborn.

Barrick Gold Corp. began mining in its Arturo Mine this year. The new operation is located in the former Dee Pit, which is about 45 miles northwest of Elko. Barrick owns 60 percent of the project and Goldcorp owns the other 40 percent.

The Bureau of Land Management issued the mine’s record of decision May 9, 2014 and construction on the project began the end of 2014.

The mine will be mined in three phases, but it is starting in Phase 2 first, said Jerry Johnson, open pit technical services superintendent. Phase 2 is predominantly refractory ore and it will be sent to Goldstrike’s roaster and autoclave.

“It is about 90 percent refractory and about 10 percent oxide mill,” Johnson said. “It’s a smaller pit. It’s about 107 million total tons. It will be about 800 feet deep when we are done with it and about a half a mile in diameter, so significantly smaller than the Goldstrike Pit.”

He said the phases were named before all the drilling was completed, which is why Phase 2 will be mined before Phase 1. Mining with the 4100 shovel started on March 26. “The active shovel bench is just a wee bit of a highwall,” Johnson said.

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Exploration: Lundin: Supersizing nickel-copper discovery at Eagle – by Kip Keen (Mineweb.com – June 4, 2015)

http://www.mineweb.com/

Lundin Mining sinks claws into near-mine nickel copper discovery at Eagle.

Patience and deep wedge-drilling is paying off for Lundin Mining at its Eagle nickel-copper mine in Michigan, US, which recently went into production.

Back in 2013, Lundin bought the near-production project from Rio Tinto for $325 million. It was a project in flux that was not existentially important for Rio Tinto as a small- to medium-sized nickel-copper deposit.

Still, it was half-built and comprised a nickel-copper reserve that would, for Lundin, diversify it far more seriously into the nickel sphere, something it has lacked.

Reserves at the time (and still) were 5.2mt @ 2.93% Ni and 2.49% Cu, with strong gold, PGM and cobalt kickers. On top of the purchase cost Lundin spent about $400 million to get the mine up and running. It shipped first ore mid-last year.

Now, without recent drilling success, the mine stands on its own two feet. It is to produce some 17,000 tonnes of nickel and 17,000 tonnes copper a year over an eight-year life of mine with average C1 cash costs around $2.55/lb nickel, according to Lundin estimates.

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Three key takeaways from the US Geological Report (Mining.com – June 1, 2015)

http://www.mining.com/

Click here for the 2015 Mineral Commodity Summaries:  http://minerals.usgs.gov/minerals/pubs/mcs/2015/mcs2015.pdf

The 2015 Mineral Commodity Summaries, an annual report from the U.S. Geological Survey, shares information about domestic minerals and their importance to the U.S. economy. Below are some key highlights from this year’s report:

• The estimated value of mineral raw materials produced at U.S. mines in 2014 was $77.6 billion.

The domestic minerals mining industry is a major stimulant of the U.S. economy. The estimated value of minerals produced at U.S. mines increased by $3.3 billion in 2014, and during that year, industries utilized those minerals to add more than $2.5 trillion to the U.S. gross domestic product (GDP).

Industries, including technology, manufacturing, construction and automotive all depend on a secure mineral supply chain to produce the products we use each and every day. With the world’s population growing and requiring more access to technology, the global demand for minerals will continue to increase.

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Lifton says forget the Wall Street Journal on rare earths. – by Jack Lifton (InvestorIntel.com – June 1, 2015)

http://investorintel.com/

Yesterday’s (May 31’s) Wall Street Journal had a really poor article about the impending fate of Molycorp, bankruptcy from failure to meet payment on debts, as it reflects, in the WSJ’s opinion, the rare earth market(s).

The rare earth share market “mania” that began in the USA in 2007 when a group of funds and an entrepreneur bought the defunct, moribund, and on “care and maintenance” Molycorp from Chevron with the stated purpose of bringing it back into production was an attempt to “get ahead” of the “market” as then perceived by this group.

This original core group of Molycorp investors had noted that a rapidly growing demand for the rare earths in high tech consumer goods was going to have to depend on the tumultuous but unpredictable (with regard to the impact of governance by the state as well as private interests) Chinese domestic economy, because at that time (as it remains today) China was the overwhelmingly largest producer of the rare earths.

Today Molycorp has failed as a business even though it has raised and spent between 2 and 3 billion dollars to re-start its California mine and base-level separation facility.

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Molycorp Struggles to Survive Rare-Earths Bubble – by John W. Miller (Wall Street Journal – May 31, 2015)

http://www.wsj.com/

U.S. rare-earths miner is expected to skip loan payment, which could lead to bankruptcy filing

MOUNTAIN PASS, Calif.—In the dusty mountains of the California-Nevada border, 4,800 feet above sea level, the U.S.’s only miner and processor of rare-earths elements is struggling to squeeze a profit out of its small open-pit mine and plant.

On Monday, Molycorp Inc. said it would skip a $32.5 million loan payment, triggering a 30-day grace period that could lead to a bankruptcy filing before the end of June.

The company is trying to survive one of the biggest commodity bubbles in economic history. Five years ago, export restrictions by China, the world’s dominant supplier, and a global political spat inflated the value of rare earths—15 elements used as niche ingredients in magnets, batteries, catalytic converters and other high-tech products—and propelled Molycorp’s stock-market value to over $6 billion.

Since then, rare-earths prices have been on a long slide downward. Now with a market capitalization of around $150 million, Molycorp is indebted and unprofitable. Customers are putting in orders, but the company hasn’t met production targets at Mountain Pass, and is in restructuring talks with firms representing its creditors.

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