COLORADO MINING: PAST, PRESENT & FUTURE?
Stuart A. Sanderson, President
Founded in 1876 – Year Colorado became the Centennial state 900 Members representing mineral resource industry in Colorado and the west Spokesman for the industry before the legislature, agencies, Congress, and the courts
Mining: Colorado’s First Industry
Overview Mining in Colorado
• Direct Sales $3 Billion • Employment – 5,685 Direct employees and 12,427 more in related industries – Department of Labor
• National Mining Association study puts employment at over 34,000
• Mining Average wages and benefits $71,000
• Coal Wages/Benefits $100,000 annually
HENDERSON MINE – WORLD’S LARGEST MOLYBDENUM MINE
Henderson – A View from Underground
Molybdenum Molybdenum • Added to stainless and alloy steels for anticorrosive and strength qualities
• It is used in many of the products used in households and industry: – Automobiles, motorcycles, bicycles, industrial, lab, and hospital equipment and parts
– Toothpaste, WD40, light bulbs, cooking utensils, paint, and so much more.
Mined in Colorado!
Mining Matters… when you drive a vehicle.
Molybdenum Uses – Environmental and Safety
–Chemical Grade • Environmental Removing sulfur from petroleum • Safety Smoke retardant for plastics and fibers • Safety Carbon Monoxide Detectors • Safety – Air Safety Bags
….and more
• Lubricant Grade –Additive to greases and oils –Dry Lubricants
• Metallurgical Grade –Steel Alloying –Stainless Steel –HighMo Corrosion resistant steels
including… –Pure Molybdenum metal
– Light bulbs – Computer Heat Sinks – Piston Rings – Anodes for Glass Making
Cripple Creek & Victor Gold Mine
AUGUST 2007 – OVER 3 MILLION OUNCES PRODUCED
What $10 Million in Gold Looks Like
Gold Gold • Used in a variety of products and industries including: – Currency and Jewelry – Medicine and dentistry – Scientific research – Computers and satellites – Cell phones, MP3 players, and automobile airbag control panels
Mined in Colorado! Mining Matters… when you work on a computer.
Nahcolite Solution Mining • Colorado is home to pure
sodium bicarbonate reserves in the U. S.
• Common household uses – baking soda, toothpaste, food and animal nutrition industries
• Industrial applications to protect the environment – water treatment plants and flue gas desulphurization at coal fired power plants – removing sulfur from coal
Gypsum
• Wallboard construction materials in homes and businesses
• American Gypsum mine is located in western Colorado between Avon and Glenwood Springs
Gypsum Gypsum • Primarily used in wallboard and plaster products
• Also used to make Portland cement
• Used in small amounts in agricultural applications
• Pure gypsum is used in glass making
Mined in Colorado! Mining Matters… when you build a house.
COLORADO COAL $1 BILLION DIRECT SALES
Total Employees 2,400 Ave. Pay & Benefits $100,400
Payroll/Taxes Royalties $329 MILLION
ROYALTIES FUND PUBLIC EDUCATION
Source: Colorado Mining Association: 2006 Coal Production & Employment
Starting with Coal Affordable Energy from Coal Mine Draglines
Helps Light Colorado Skylines
Colorado Coal
• Colorado’s demonstrated coal reserves 17 billion tons – 8 th largest
• Colorado’s 2008 production 33 million tons – 8th largest, 4 th among underground coal producing states
• Underground mines account for 66% of production
Coal and Affordable Energy Go Hand in Hand
• Coal accounts for 72% of Colorado’s electricity • According to Xcel Energy recent statement, “coal fired generation reliably meets our customer’s constant need for electricity and plays a significant role in keeping electricity prices low”
• Colorado coal is clean, low in sulfur and high BTU, deemed super compliance under Energy Act
Colorado Leads the Way in Mining, Reclamation and Wildlife Protection
• Reclaimed Lands at Trapper Mine in NW Colorado
Coal Mine Safety and Production Trends
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1970 1975 1980 1985 1990 1995 2000 2001 2002 2003 2004
Fatalities
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Fatalities US Production (million st)
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Fatalities
Why Coal? 27% of the World’s Coal is in Why Coal? 27% of the World’s Coal is in the United States the United States – – Coal is our most Coal is our most
abundant energy fuel abundant energy fuel
Source: Energy Information Administration, March 2006.
8.8¢ 28%
6.8¢ 65%
5.9¢ 95%
5.7¢ 10%
5.8¢ 67%
5.1¢ 96%
7.6¢ 72%
6.2¢ 7%
6.6¢ 75%
7.6¢ 89%
8.9¢ 46%
11.3¢ 1%
6.0¢ 96%
6.6¢ 46%
9.1¢ 38%
6.7¢ 78%
6.7¢ 63%
6.9¢ 53%
6.1¢ 85%
7.0¢ 48%
7.8¢ 39%
7.4¢ 70%
6.3¢ 49%
8.1¢ 25%
7.5¢ 58%
5.9¢ 94%
7.1¢ 87%
9.5¢ 2%
7.6¢ 37%
6.5¢ 57%
7.5¢ 65%
6.8¢ 39%
4.9¢ 91%
6.6¢ 45%
8.3¢ 56%
5.2¢ 98%
7.3¢ 61%
6.3¢ 61%
5.1¢ 1%
11.6¢ 10%
18.3¢ 14%
NH 12.6¢ 17% VT 11.1¢ 0% MA 12.2¢ 25% RI 11.9¢ 0% CT 12.0¢ 12% NJ 11.1¢ 19% DE 7.6¢ 60% MD 7.8¢ 56%
¢ = average retail price per kilowatt hour for CY 2005
% = percent of total generation from coal for CY 2005
Retail Cost Per kWh & Percent of Coal Generation Retail Cost Per kWh & Percent of Coal Generation
< 6.0¢ > 6.0¢ 7.0¢ > 7.0¢ 8.5¢ > 8.5¢ Hydro
13.2¢ 14%
Coal is Affordable – Consumers in States Who Use More Coal Pay Lower Rates
Source: U.S. Environmental Protection Agency, IEA Annual Energy Outlook 2005.
U.S. coal used for electricity has tripled since 1970 while U.S. coal used for electricity has tripled since 1970 while emissions have been significantly improved emissions have been significantly improved
Coal Use Grows While the Environment Improves
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1949 1959 1969 1979 1989 1999 2009 2019 2029
Million Barrels / Day
Production
Imports
Peak, 1970
Alaska
EIA Forecast
D e p e n d e n c e
Our Growing Dependence on Foreign Oil Creates LongTerm
Unacceptable Risks
CTL and CTG Technologies Mean a Broader Use for Coal
STEEL ELECTRICITY
INDUSTRIAL GAS
PIPELINE SNG
SPECIALTY CHEMICALS
ETHANOL
DIESEL
JET FUEL HYDROGEN
• China developing 27 new CTL plants
• Successful B52 test flight using Fischer Tropsch fuels
• Air Force sees half of Defense needs from CTL by 2020
• U.S. Congress considers bills for offtake agreements and incentives
Uranium – Who Needs It? Answer – We do
• Nuclear energy accounts for nearly 20% of U. S. electricity, second only to coal
• Nuclear reactors produce emission free electricity
• Nuclear reactors and uranium mining operations are subject to strict regulation
• Uranium – essential in nuclear medicine 0
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Gas Nuclear Coal
49.7%
19.3%
The world’s existing 435 nuclear reactors currently need 180 million pounds of uranium each year.
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Million Pounds
Needed Produced
80 million pound gap
The United States generates as much nuclear energy as France, Germany, Spain, Sweden, and the United Kingdom combined! The U. S. consumes over 51 million pounds annually, but produces only 3 million pounds
And demand will only increase.
Centennial Project Location Map
Slides Courtesy of PowerTech USA
Challenges to Mining • Increasing public knowledge of mining – CMA Outreach Program
• Avoiding preemptive bans on mining Local and statewide efforts to ban heap/vat leach mining for gold and in situ/surface mining for uranium
• Climate Change – how to cut carbon without economic catastrophe
• Limitations on coal use PUC has already ordered the closure of two power stations
Source: PIRA.
Worldwide CO 2 Trends China has Overtaken the U.S. as the Largest CO China has Overtaken the U.S. as the Largest CO 2 2 Emitter Emitter
in 2007 and Will Equal the U.S. Plus EU15 by 2020 in 2007 and Will Equal the U.S. Plus EU15 by 2020 Colorado’s contribution Colorado’s contribution – – 1.7% of U. S. total 1.7% of U. S. total
Our Concerns • Recent Holy Cross Energy study – A 20% emissions reduction in greenhouse gases, means that Colorado’s coal use would need to fall from the current 70% level to only 30% of the power supply in little more than a decade.
• This would be the largest, and most costly, change in the history of the Colorado electric industry.
• Impact would fall hard on Colorado and especially hard on low income consumers, as the inability to pay utility bills, according to Energy Outreach Colorado, is one of the principal causes of homelessness
• Impacts on Colorado coal production
New Energy Economy – Relies on Minerals Solar Power
Reflector material is Aluminum or Silver
Wind Towers and turbines need copper, molybdenum, and others
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100
Indium
Selenium
Telluriu
m
Vanadium
REE
Alumina
Mangane
se
Gallium
PGM
Cobalt
Zin
c Silve
r
Lithiu
m
Bromine
Coppe
r
Commodity
% Im
port
? ?
New Energy Economy – Import Dependency
RAISING PUBLIC AWARENESS CMA’S WEBSITE
COMMUNITY PROJECTS
• Taste of Colorado, NSTA Convention, Presentations to communities across Colorado
ROCKS ON YOUR FACE
• CMA has developed a visual display of minerals and how they are in products used in your everyday life
COLORADO MINING: PAST, PRESENT & FUTURE?
Stuart A. Sanderson, President www.coloradomining.org