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									                                                                  NMA Mining Week

                                                                                                              July 11, 2008
                                                                                                         Volume 14, Issue 25

In this issue…
NMA’s Naasz promotes coal          NMA, UMWA call on House members
in Fox Business interview…         to support Boucher CCS bill
page 2
                                     NMA and the United Mine Workers of America (UMWA) this week urged House mem-
House Science and Technology       bers to support legislation designed to provide funding to develop carbon capture and
Committee chairman backs           storage (CCS) technologies.
CCS demonstration projects…
page 2                              In a July 9 joint letter to all 435 members of the U.S. House of Representatives, NMA
                                   President and CEO Kraig R. Naasz and UMWA President Cecil Roberts called on House
MINExpo International® 2008
                                   members to support the “Carbon Capture and Storage Early Deployment Act” (H.R.
education session information
now online…page 3                  6258).
                                     Introduced by House Energy and Air Quality Subcommittee Chairman Rick Boucher
Mining market snapshot…
page 3                             (D-Va.) and Ranking Member Fred Upton (R-Mich.), the bill would establish a $1 billion
                                   annual fund, derived from a modest fee on electricity rates. The fund would be used to
Senate committee backs
                                   support large-scale demonstration projects capable of advancing the commercial avail-
Illinois FutureGen site, rejects
restructured administration        ability of CCS technology.
proposal…page 3                      The bill “is a key step toward advancing the development and deployment of [CCS]
Supreme Court to hear Clean        technologies that are vital to our nation’s ability to reduce greenhouse gas emissions
Water Act mining case…             while utilizing coal to address the needs of a growing population and economy,” NMA
page 4                             and UMWA said.
                                                                                                          See CCS letter, page 2
EIA predicts massive surge
in world coal consumption…
page 4
                                   G8 leaders strike climate deal, stress need for CCS technology
                                    President Bush and the leaders of seven other leading industrial nations this week struck
House Republican leader urges
                                   agreement to reduce global greenhouse gas emissions by at least 50 percent by 2050.
support for CTL bill…page 5
                                   The emissions target was agreed to at a G8 summit on July 8 in Hokkaido, Japan.
EPA awards 20 coal
                                    The agreement includes a call to begin significant research designed to accelerate the
combustion product honors…
                                   development and use of carbon capture and storage (CCS) technologies beginning in
page 5
                                   2010.
Newsbits…page 5
                                     The G8 nations, consisting of the U.S., Canada, France, Germany, Italy, Japan, Rus-
                                   sia and the United Kingdom, stressed that meeting the 50 percent reduction target will
                                   require action by all major economies, such as China and India. Both countries, though
                                   not members of the G8, were on hand for this week’s summit.
                                    In a July 8 communiqué, the G8 leaders stressed that “this global challenge can only be
                                   met by a global response, in particular, by the contributions from all major economies.”
                                     On CCS, the leaders of the G8 nations committed to establish an international initiative
                                   “to develop roadmaps for innovative technologies and cooperate upon existing and new
                                   partnerships.” The G8 leaders said they “strongly support the launching of 20 large-scale
                                   CCS demonstration projects globally by 2010…with a view to beginning broad deploy-
                                   ment of CCS by 2020.”
                                    To support these efforts, the group expressed support for direct government funding,
                                   as well as “fiscal measures to encourage private sector investment.” The July 8 com-
                                   muniqué noted that G8 members have so far pledged over $10 billion annually in di-
                                                                                                         See G8 climate, page 2
                                                                                           NMA Mining Week | July 11, 2008 | Page 2


CCS letter continued from page 1               NMA’s Naasz promotes coal in Fox Business interview
  The letter noted that 50 percent of
U.S. electricity comes from coal and
that consumer demand for electricity is
expected to grow by 30 percent over the
next two decades.
 “All sources of energy – coal, natural gas,
nuclear and renewable – will be needed to
help meet that demand,” said the letter.
  “H.R. 6258 will advance coal as a sus-
tainable and affordable source of energy
while securing the livelihoods of more
than 100,000 coal miners nationwide,
creating new jobs and protecting our
economy,” NMA and UMWA wrote.
 A copy of the NMA-UMWA letter is
available at: NMA-UMWA Letter.                  NMA President and CEO Kraig R. Naasz this week promoted the ability of coal
                                               to provide a secure and affordable source of energy capable of meeting America’s
G8 climate continued from page 1               growing energy needs in a July 8 interview on the Fox Business Network.
rect government-funded research and              Naasz emphasized that America is home to a 250-year supply of coal, stressing
development. “We also agree to take            that the mining community is mining and using coal in an increasingly clean fash-
various policy and regulatory measures         ion.
to provide incentives for commercializing        Naasz underlined the need for federal support to help accelerate the development
these technologies.”
                                               of advanced carbon and capture and storage (CCS) technologies and praised the re-
  Following this week’s summit, the            cent agreement by G8 leaders to undertake a significant CCS demonstration effort.
                                                The July 8 interview can be viewed at: Naasz Fox Interview. 
17-member Major Economies Meet-
ing, a U.S.-led climate change group,
will meet July 14 and begin discussing
possible country-specific emission reduc-      House Science and Technology Committee chairman
tion targets that could be used to meet        backs CCS demonstration projects
the G8 50 percent emissions reduction            House Science and Technology Com-         ductions remains a daunting challenge
goal.                                          mittee Chairman Bart Gordon (D-Tenn.)       and meeting that challenge will require
 A copy of the G8 climate declaration is       recently wrote to President Bush to         unprecedented investments in advanced
available at: G8 Declaration.                 emphasize his support for large-scale       technologies.”
                                               carbon capture and storage (CCS) dem-
                                                                                             The letter urged the president to use
                                               onstration projects and called on the
                                                                                           this week’s G8 meeting in Hokkaido,
 NMA Outreach: NMA regularly                   president to support such projects.
 participates in various conferences,                                                      Japan, to “assure our international part-
                                                 In a July 2 letter, Gordon backed a       ners that you will aggressively and cre-
 events and other forums to highlight
 key association initiatives and spotlight     strategy recommended by the Inter-
                                                                                           atively pursue the necessary cost-sharing
 important developments in the mining          national Energy Agency (IEA) and the
                                                                                           mechanisms and incentives for facilitat-
 community. Here’s a look at upcoming          Carbon Sequestration Leadership Forum
 events.                                                                                   ing the revolution in energy technol-
                                               that calls for the launch of 20 CCS proj-
                                                                                           ogy deployment required to achieve…a
                                               ects by 2010.
 •	 NMA	Senior	Vice	President	of	Com-                                                      more secure, reliable, affordable and
    munications	Carol	Raulston	will	par-         “If we do not make a substantial in-
                                                                                           sustainable energy-use outlook.”
    ticipate	in	a	panel	discussion	at	the	     vestment to demonstrate integrated CCS
    U.S.	 Energy	 Association’s	 confer-       technologies now, our ability to imple-       Gordon added that “collaboration with
    ence,	 “Energy	 Supply	 Forum,”	 on	       ment a comprehensive and meaningful         our global partners on the development,
    July	16	at	the	National	Press	Club	in	     climate change program could be seri-       demonstration and deployment of CCS
    Washington,	D.C.                           ously undermined,” wrote Gordon.            technologies will help us make sound
                                                Referencing a recent IEA CCS report,       policy decisions.”
                                               Gordon said it is “abundantly clear that     A copy of the letter is available at: CCS
                                               achieving greenhouse gas emissions re-      Letter. 
                                                                                            NMA Mining Week | July 11, 2008 | Page 3


MINExpo International®                      Senate committee backs Illinois FutureGen site, rejects
2008 education session                      restructured administration proposal
information now online                        The Senate Appropriations Committee this week preserved funding to help con-
                                            struct the FutureGen plant in Mattoon, Ill., and rejected an approach favored by
                             Informa-
                                            the Bush Administration that would have scrapped the Mattoon plant in favor of
                           tion regard-
                                            funding the installation of clean coal technologies at various integrated gasification
                           ing the 20       combined cycle (IGCC) coal-fueled power plants.
                           education
                                              On July 10, the committee unanimously approved a $27 billion bill funding the
                           sessions         U.S. Department of Energy (DOE) for fiscal year (FY) 2009. The bill preserves $134
                           that will be     million in funding for the next administration to use to support the construction of
                           offered at       the FutureGen plant at the proposed Mattoon site, while re-directing funds the ad-
MINExpo INTERNATIONAL 2008 can              ministration had requested for a revised approach to the FutureGen project.
now be found online at www.minexpo.           In January, U.S. Energy Secretary Samuel Bodman announced that DOE was re-
com. MINExpo® is scheduled for Sept.        neging on its commitment to help fund construction of the $1.5 billion FutureGen
22-24, with the education sessions tak-     plant in Mattoon. Under the original approach, DOE was to have partnered with
ing place Sept. 23 and 24.                  the FutureGen Alliance, a consortium of leading private sector coal producers and
  The comprehensive series of 20 edu-       electric utilities, to build the plant. Once completed, the FutureGen plant would be
                                            the world’s first nearly emissions-free coal-fueled electricity plant.
cational conference sessions will offer
show attendees the opportunity to earn        The administration had requested $156 million to support its revised IGCC ap-
professional development hours, with at-    proach in FY 2009. In addition to preserving the $134 million in funding, the com-
                                            mittee approved bill re-directs all of the $156 million the administration requested
tendees awarded two professional devel-
                                            for the new FutureGen approach to help support DOE’s long-running Clean Coal
opment hours for each session attended.
                                            Power Initiative.
Douglas Hardman, president and COO
                                              Last week, Southern Illinois University’s Clean Coal Review Board voted to award
of J.H. Fletcher and Co., and Raja
                                            $2 million in grants to support gasification, production and plant efficiency studies
Upadhyah, president of Pincock, Allen
                                            for the Mattoon FutureGen plant. In response, the FutureGen Alliance said it will
& Holt, are the program co-chairmen         match the grant and spend up to $6 million in private money on engineering and
responsible for developing MINExpo’s        cost control studies.
educational sessions.
                                              “Due to local support in Illinois and bipartisan support on Capitol Hill, FutureGen
  The sessions at this year’s show will     at Mattoon continues to move forward,” said FutureGen Alliance CEO Michael J.
cover the latest advances in a range of     Mudd in a July 8 statement. “Our nation and the world cannot address climate
subjects, including safety, underground     change without cost-effective carbon capture and storage technology,” said Mudd.
mining, sur face mining, processing,        “The sooner we advance the technology, the sooner society will benefit from clean,
bulk materials handling, coal, markets,     affordable and secure energy.”
workforce, environment issues, explora-      A copy of the July 8 alliance statement is available at: FutureGen Statement. 
tion, resource recovery and new mine
development.                                 Mining Market Snapshot
 Registration, hotel room reservation        Coal Figures                                    Cumulative year    Change over last
and ticket purchases for tour and special                                                    to date            year
                                             Week ended June 28, 2008
events can all be done on-line at MIN-
                                             EIA Coal Production (000 tons)                           570,483                0.8%
Expo’s web site.
                                             Edison Electric Institute Electricity Output
  Registration before Aug. 8 is $100 and                                                            1,984,091                0.5%
                                             (GWh)
$200 after that date. Registration in-       American Iron and Steel Institute Raw
cludes access to the show’s exhibits and                                                               54,409                2.4%
                                             Steel Production (000 tons)
educational conference sessions. The
                                             Metal Figures
special events are the U.S. Department
of Interior Awards Luncheon on Sept.         Copper Prices ($/mt - week avg. Grade A Cash) 6/27/08                      $8,560.25
23 and the Sentinels of Safety Awards        Gold Prices ($/troy ounce - week avg. London Final) 6/27/08                  $896.45
Luncheon on Sept. 24.                       Source: NMA Weekly Statistical Summary/Platts Metals Week
                                                                                               NMA Mining Week | July 11, 2008 | Page 4


Supreme Court to hear                             EIA predicts massive surge in world coal consumption
Clean Water Act mining                              The U.S. Department of Energy’s En-          EIA reported that coal’s share of world
                                                  ergy Information Administration (EIA)        energy use “has increased sharply over
case                                              recently predicted that global coal con-     the past few years, largely because of
 The U.S. Supreme Court recently an-              sumption will jump nearly 65 percent         strong increases in coal use in China,
nounced that it will review a lower court         by 2030. EIA’s International Energy          which has nearly doubled since 2000
decision that quashed a Clean Water               Outlook 2008 predicts that world coal        and is poised to increase strongly in the
Act (CWA) Section 404 permit issued to            consumption will increase from 123           future.” According to EIA, owing to its
NMA member Coeur Alaska, Inc.                     quadrillion Btu in 2005 to 202 quadril-      “large domestic base of coal resources
  Late last month the court said it will          lion Btu in 2030 at an average annual        and continuing strong economic growth,”
consider whether process wastewater               growth rate of 2 percent.                    China alone accounts for 71 percent
discharges from mining operations are               The dramatic increase in global coal       of the predicted increase in world coal
governed by the dredge-and-fill permit            use is the result of a predicted 50 per-     consumption.
program operated by the U.S. Army                 cent jump in world energy consumption         The EIA report projects that increased
Corps of Engineers under CWA Section              documented in the report. According to       coal consumption in the U.S. and India
                                                  the report, 85 percent of that increase is
404, or whether such discharges are                                                            will each account for 9 percent of the
                                                  due to expected strong economic growth
covered by effluent limitations under the                                                      projected world increase.
                                                  in developing countries.
National Pollutant Discharge Elimina-                                                            Elsewhere, the report also predicts an
                                                    In North America, EIA predicts coal con-
tion System under the jurisdiction of the                                                      upswing in the production of alternative
                                                  sumption will grow from approximately 25
Environmental Protection Agency.                                                               fuels, including coal-to-liquid fuels. By
                                                  quadrillion Btus in 2005 to nearly 33 qua-
  NMA, along with several state mining                                                         2030 EIA projects production of various
                                                  drillion Btus in 2030. However, the growth
associations, filed an amicus brief on                                                         alternative fuels will total nearly 10 mil-
                                                  predicted in North American coal con-
Feb. 29 urging the Supreme Court to               sumption is dwarfed by EIA projections for   lion barrels per day, up from the current
                                                  coal consumption in China. EIA predicted     production level of 2.5 million barrels
review a May 22, 2007, decision by the
                                                  that Chinese coal consumption will more      per day.
United States Court of Appeals for the
Ninth Circuit that invalidated a permit           than double, jumping from nearly 47 qua-      A copy of EIA’s International Energy
issued to Coeur Alaska, Inc. under the            drillion Btus in 2005 to approximately 103   Outlook 2008 is available at: EIA re-
CWA covering the discharge of mine                quadrillion in 2030.                         port. 
tailings.
 A copy of NMA’s amicus brief is avail-                         World Coal Consumption (Quad Btu)
able at: Supreme Court Brief.                                                2005
                                                      India Russia, 4.8              Africa, 4.2
                                                                                                             China,
           Mining Calendar Events and                 8.6%
                                                      India,
           conferences covering important                                                                     46.9
            mining issues are routinely held            8.6 Europe,
            across the nation. The following                 13.2
            may be of interest to members
    of the mining community:                                  Other, 20.0                                  North
                                                                                                          America,
  July 18-20, 2008                                                                                         24.8
  Friends of Coal Auto Fair
  Beckley, W.Va. This	 three	 day	 event	
  features	hundreds	of	cars,	motorcycles	                       World Coal Consumption (Quad Btu)
  and	 trucks,	 as	 well	 as	 a	 flea	 market,	                               2030
  arts	 and	 crafts	 and	 a	 Saturday	 night	
  concert	 featuring	 performances	 by	                       Other, 27.0                                      China,
  well	known	country	music	groups.		All	                     Russia, 5.7                                       103.4
  proceeds	 from	 the	 event	 are	 given	 to	
  help	 support	 the	 YMCA	 Youth	 Sports	                    Africa, 5.6
                                                                                                           North
  Complex	 and	 youth	 programs.	 	 More	                      Europe,
                                                                                                          America,
  information	 is	 available	 at:	 Friends	 of	                  12.6
                                                                       India, 15.5                         32.4
  Coal	Auto	Fair.
                                                  Source:	Energy	Information	Administration, International Energy Outlook 2008
                                                                                          NMA Mining Week | July 11, 2008 | Page 5


House Republican leader                                           EPA awards 20 coal combustion
urges support for CTL bill                                        product honors
 House Republican Leader John Boehner (R-Ohio) this week            The U.S. Environmental Protection Agency’s (EPA) Coal Com-
urged House members to support a petition being circulated        bustion Products Partnership (C2P2) recently announced that it
by Rep. Peter Roskam (R-Ill.) that would force a House vote       was honoring 20 organizations and individuals with awards to
on bipartisan legislation designed to accelerate the domestic     recognize efforts meant to safely increase the use of coal com-
production of coal-to-liquid (CTL) transportation fuels.          bustion products (CCP).

  Roskam’s petition is seeking a floor vote on the “Coal-           CCPs are generated from coal used to produce electricity at
                                                                  coal-fueled plants, and the EPA awards recognize achievements
to-Liquid Fuel Act” (H.R. 2208), introduced by House En-
                                                                  including finding new uses for CCPs and developing a web-
ergy and Air Quality Subcommittee Chairman Rick Boucher
                                                                  based educational tool that teaches civil engineering students
(D-Va.) and Rep. John Shimkus (R-Ill.). The bill authorizes
                                                                  about the benefits and uses of these products.
the secretary of energy to set ceiling and floor prices to pro-
tect domestic CTL developers from price manipulation by             “Our C2P2 partners are showing how scientific innovation
                                                                  and resource conservation efforts are adding up to big environ-
foreign energy cartels.
                                                                  mental benefits,” said Susan Bodine, assistant administrator for
  In a July 9 statement, Boehner said Roskam’s petition gives     EPA’s Office of Solid Waste and Emergency Response in a July
House members “the opportunity to support a common                2 statement. “By using 15 million tons of coal fly ash, our na-
sense, bipartisan plan to promote clean alternative fuels         tion reduced greenhouse gas emissions equivalent to the annual
technology that will help bring down the price of gasoline on     emissions of nearly 2.5 million passenger vehicles.”
behalf of American families and small businesses.” Boehner          EPA said the use of CCP products helps conserve natural re-
said a vote on H.R. 2208 would “send a clear signal that          sources, “conserves energy, is cost effective, and helps to com-
Congress is committed to utilizing clean American energy          bat climate change by reducing greenhouse gas emissions.”
in an environmentally-safe way while reducing our nation’s
                                                                   According to EPA, currently 43 percent of CCPs produced are
costly dependence on unstable foreign sources of energy.”         used, an increase from the 32 percent figure recorded in 2001
 Should Roskam’s petition garner the support of 218 House         when C2P2 was started. EPA said its goal is to reach a 50 per-
members, the House would be required to vote on the bill.         cent utilization rate by 2011.
  A copy of Boehner’s statement is available at: Boehner           More information is available at: CCP Partnership. 
Statement.
 More information on CTL fuels is available at www.future-        Newsbits
coalfuels.org.                                                     Incitec Pivot Limited	(IPL),	an	Australian-based	chemicals	
                                                                  company,	recently	acquired	explosives	maker	Dyno Nobel.
 Become a CTL grassroots supporter                                The	acquisition,	announced	in	a	July	1	release,	make	IPL	the	
                                                                  largest	supplier	of	explosives	products	and	services	in	North	
   America’s	 ever-growing	
 dependence	 on	 increas-               CTLC                      America	and	the	second	largest	supplier	in	Australia.		More	
 ingly	expensive	imported	 Coal-To-Liquids Coalition              information	 is	 available	 at:	 	 IPL	 Announcement…	 The	 U.S.
 energy	is	one	of	the	greatest	challenges	to	the	nation’s	        Department of Commerce	 (DOC)	 will	 host	 a	 web-based	
 future	 economic	 prosperity	 and	 national	 security.	 	        seminar	 on	 July	 14	 designed	 to	 highlight	 opportunities	 for	
 Through	the	construction	of	a	nationwide	network	of	             U.S.	coal	and	mining	companies	in	China.		The	web-based	
 grassroots	supporters,	America	can	put	itself	on	the	            discussion	 will	 be	 led	 by	 a	 DOC	 Commercial	 Service	 coal	
 road	to	energy	independence	using	clean,	American-               and	mining	trade	specialist	and	representatives	from	Asian-
 made	coal-to	liquid	(CTL)	transportation	fuels.                  American Gas	 and	 Caterpillar Global Mining China.
   The	Coal-to-Liquids	Coalition’s	grassroots	program	            The	 seminar	 will	 highlight	 China’s	 current	 commercial	
 gives	supporters	the	power	to	connect	with	their	mem-            environment,	China’s	coal-bed	methane	sector	and	mining	
 bers	of	Congress	to	urge	them	to	support	strengthen-             equipment	opportunities	for	U.S.	firms.		Registration	for	the	
 ing	 American	 energy	 independence	 using	 domestic	            China	 seminar	 is	 available	 at:	 	 China	 Seminar.	 	 Additional	
 CTL	fuels.	                                                      information	 is	 available	 by	 contacting	 Shannon Fraser	 at	
   Show	 your	 support	 for	 CTL	 fuels	 by	 becoming	 a	         (202)	 482-3609…The	 Department	 of	 Commerce	 is	 also	
 grassroots	supporter.		You	can	make	your	voice	heard	            coordinating	 the	 Third Clean Energy and Environment
 in	 Congress	 by	 signing	 up	 at:	 CTL	 Grassroots	 Net-        Trade Mission to China and India,	scheduled	for	Sept.	1-12.	
 work.                                                           The	 trade	 mission	 will	 include	 one-on-one	 meetings	 with	
                                                                                                                continued on page 6
                                                                                                NMA Mining Week | July 11, 2008 | Page 6



Newsbits                                  continued from page 5
prescreened	 potential	 partners,	 as	 well	 as	 meetings	 with	        named	vice	president,	business	continuous	improvement;	
national	and	local	government	officials.		U.S.	coal	companies	          Antonnette M. Jackson	 has	 been	 named	 vice	 president	
can	register	for	either	the	full	trade	mission,	or	the	India	or	        of	compensation,	responsible	for	the	design,	development	
China	specific	portions	of	the	mission.		Detailed	information	          and	 management	 of	 compensation	 programs	 aimed	 at	
and	application	procedures	are	available	at:		www.export.               enhancing	employee	retention,	motivation	and	performance;	
gov/cleanenergymission.gov.	 	 The	 application	 deadline	              L. Cartan Sumner, Jr.	has	been	named	vice	president	of	
is	 July	 21.	 	 More	 information	 is	 available	 by	 contacting	      international	government	relations,	responsible	for	working	
Shannon	Fraser	at	(202)	482-3609…Peabody Energy	this	                   with	 international	 governments	 to	 create	 a	 policy-friendly	
week	 announced	 a	 number	 of	 organizational	 changes	 in	            framework	 for	 Peabody’s	 coal	 development	 projects	
its	 administrative,	 operations	 and	 government	 relations	           worldwide;	 and	 Thomas A. Benner	 has	 been	 named	
functions.	 	 Christopher J. Hagedorn	 has	 been	 named	                director	 of	 underground	 mines	 for	 the	 Peabody	 Midwest	
vice	 president	 of	 supply	 chain	 management,	 responsible	           Group,	responsible	for	the	day-to-day	operations	activities	
for	 developing	 comprehensive	 global	 procurement	                    of	 the	 mines,	 including	 safety,	 continuous	 improvement,	
strategies	 while	 managing	 the	 quality	 and	 cost	 of	 goods	        environmental	 management,	 and	 the	 review	 of	 strategic	
and	services	purchased;	Lance N. Throneberry	has	been	                  growth	 opportunities	 for	 Peabody’s	 underground	 mining	
named	 general	 manager,	 supply	 chain	 management	 for	               operations	 in	 Illinois	 and	 Indiana.	 	 More	 information	 is	
Peabody’s	Australia	operations;	Jeffrey A. Maher	has	been	              available	at:	Peabody	Personnel	Announcement.

                              Mining Week is published as a service to members
                              of the National Mining Association, James Roberts,            NMA Mining Week
                              chairman, Kraig R. Naasz, president and publisher.

                               Staff                                          Executive and editorial offices: Communications Depart-
                               Carol Raulston,                                ment, 101 Constitution Ave., NW Suite 500E, Washington,
                               Senior Vice President, Communications          D.C. 20001, telephone 202/463-2600. www.nma.org, fax:
                                                                                                                         April 18, 2003
                               Corey	Henry			Kelly	Me	 zler
                                                      t                       202/463-2614. Change of e-mail address should be directed
                               Leslie	Coleman			Luke	Popovich		               to mphelleps@nma.org.                      Volume 9, Issue 16

                                 Mining	Week,	National	Mining	Association,	and	NMA	are	registered	trademarks	of	the	National	Mining	Association

								
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