Showing posts with label Mining. Show all posts
Showing posts with label Mining. Show all posts

Saturday, April 5, 2014

The Horrifying Health Effects of Mining



Recent studies suggest that coal mining affects the health of everyone who lives nearby—not just those who work in the mines.








In the middle of a sentence, Gary Bone has to stop and gasp.


“I lose my breath,” he tells me through the phone.


Bone is 56 and suffers from asbestosis, chronic obstructive pulmonary disease (COPD), and black lung. These aren"t the only remnants of nearly 20 years working in the coal mines of West Virginia. A scar on his back marks the spot where three discs were removed from his spine after a rock fell on him.


“Any kind of injuries you can imagine, a coal mine"s going to have it,” Bone says. “I"ve seen people that"s got their eye put out, fingers mashed up, whole lot of cuts, whole lot of back injuries. Back injuries are one of the most visible things.”


Bone isn"t the only miner with stories like these. Junior Walk, an outreach coordinator with the anti-mining nonprofit organization Coal River Mountain Watch (CRMW), says his grandfather survived several injuries in the mines.


“He broke his back twice in two different rock falls underground, where the ceiling just collapsed in on him. Broke his legs once—both of his legs—getting run over by a man trip, which is how they transport you in and out of the coal mine,” Walk says. “He made me swear to him when I was a kid that I would never set foot in an underground mine.”


Today, Walk"s grandfather has black lung, and Bone"s mobility is severely limited. The biggest disasters of coal mining certainly make the news—like the Upper Big Branch Mine explosion in 2010, which killed 29 men and shook the ground beneath the house where Walk grew up. But a growing body of research suggests that the invisible threats that cause many miners to retire early—the respiratory problems, the cancer, the chronic disease—also debilitate and kill an untold number of West Virginians each year.


In recent years, research has drawn new links between coal mining and health problems in the areas where that mining takes place. In response, local groups are working to support further research and boost awareness of these problems. The chemical leak that left 300,000 West Virginians without water for more than a week in January, the 108,000-gallon slurry spill on Feb. 11, and another slurry spill just days ago have brought national attention to the issue. Local advocates hope that this attention, in combination with new research, will translate into a more open dialogue on the health dangers of coal mining.


Janet Keating, executive director at the nonprofit organization Ohio Valley Environmental Coalition, says that the spills should draw attention to the more chronic problems at hand.


“The day-to-day air and water pollution and associated health impacts from living with mountain removal and large-scale surface mining has been largely ignored by lawmakers and people in West Virginia living outside of the southern coal regions,” she wrote in an email.


Health impacts have been an everyday worry for Bone, whose wife has been by his side through all the doctor"s appointments and the difficult days. While we"re on phone, he stops to call out to her: “Peggy, put something on, it"s cold out!”


It"s one of the coldest Januaries in decades. Into the receiver, he says, “I should be doing that. I should be starting my wife"s vehicle.”


Chronic disease, birth defects, and coal


Mortality rates attributed to kidney, respiratory, and heart disease are significantly higher in Appalachian counties with high levels of coal mining, compared to non-mining areas, according to a 2009 study.


Cancer is a particular culprit. A study that compared two rural West Virginia communities, one with mining and one without, found that self-reported cancer rates were twice as high in the mining areas. In areas with mountaintop removal (or surface mining), rates of lung, bladder, kidney, and colon cancer, along with leukemia, are all higher than in non-mining areas. These findings control for other risk factors, like smoking and socioeconomic status. (Lung cancer and kidney disease hospitalization rates, though, were actually lower in areas with coal production. This may be because people aren"t necessarily hospitalized in the community where they live, the author of this study points out.)


COPD, which affects Gary Bone, has also been linked to coal mining. The odds of COPD hospitalization increase 1 percent for every additional 1,462 tons of coal mined in an area during one particular year, according to a study published in 2007. Odds of hospitalization for high blood pressure increase, too—1 percent for every 1,873 tons mined that year.


One of the most stunning findings of recent years: the risk for birth defects in areas where mountaintop-removal coal mining is prevalent is significantly higher than in non-mining areas, according to a study published in 2011. The study looked at two periods of time: 1996 to 1999, during which risk was 13 percent higher in areas with this type of mining; and 2000 to 2003, during which risk was 42 percent higher. Six of seven types of birth defects—including circulatory/respiratory, central nervous system, and gastrointestinal—were “significantly higher” in areas with mountaintop removal. This, again, is after controlling for other factors.


Dr. Michael Hendryx, a professor of applied health science at Indiana University, who co-authored the study, has been researching health issues in the coal mining areas of Appalachia since 2006. He says the research left him with little doubt about the impact of the mining industry.


“I can definitively say that there are higher levels of health problems in mining communities, especially mountaintop removal communities, than others,” he says. “To try to pretend that we don"t have enough information to try to act, that we don"t know what is happening, is unethical. It"s immoral.”


Not everyone agrees that the evidence is definitive. Nancy Gravatt, senior vice president of communications at the National Mining Association, points to several responses that she says refute the results of studies like Hendryx"s. One study by Dr. Jonathan Borak, et al., concludes that coal mining isn"t an independent risk factor for increased mortality in the Appalachian region and points to other factors such as obesity and poverty. Borak"s paper was reportedly funded by the National Mining Association , though Borak has maintained his opinions are not for hire.


Representatives of coal company Alpha Natural Resources did not respond to interview requests for this article.


An environment built by coal


Another way that scientists have tried to assess the effect of coal on public health is to measure the air and water quality near both surface and underground mines.


Several recent studies indicate that when it comes to environmental pollutants, mining areas are often much worse off than areas where no mining is taking place. One study collected particulate matter from the air within one mile of an active mountaintop removal site in southern West Virginia, and found it to be 38 percent sulfur and 24 percent silica. According to Hendryx, the silica (in this case, crystalline silica) is a particular cause for concern.


“Crystalline silica is toxic. It"s highly carcinogenic, and I think it"s the silica in particular that"s driving the health problems we"ve seen,” he says.


Another paper, authored by Dr. Laura Kurth of the National Institute for Occupational Safety and Health and slated for release soon, has documented for the first time that there is more ultrafine particulate matter in areas with surface mining. Ultrafine particles are smaller than a tenth of a micron in size, and can penetrate through the lungs into the blood system, Hendryx explains.


Water quality has also been affected by mining. A study published in the Proceedings of the National Academy of Sciencesin 2011 notes that waste rock from mountaintop removal mines is often disposed of in nearby valleys, where it comes into contact with streams. The study found that the amount of sulfate, magnesium, and selenium in the water increased in proportion to the amount of mining upstream, and in some areas, there was a “very high incidence” of selenium-linked developmental deformities in the larvae of two types of fish.


Large amounts of selenium can be toxic, though it"s unclear whether there"s enough selenium in West Virginia waterways to harm humans. Still, selenium levels in West Virginia waters have been a topic of debate between community groups and politicians for years. In 2013, a bill to weaken current maximum selenium standards and conduct more research about whether selenium is actually impacting West Virginia streams passed almost unanimously.


One possible source of water pollution is the slurry that remains after the coal frothing process in coal prep plants, in which coal dust is separated from other materials so that the dust can be used. This slurry, and the chemicals in it, is pumped into huge reservoirs, called slurry impoundments, or into underground mines.


Gravatt confirmed in an email that, “On occasion, [slurry] can be disposed of in abandoned underground mines. To do so, operators need to get a permit from the state water authority (at least in the case of WV). It should be noted that disposing of such materials in abandoned, underground mines avoids placing the same materials on the surface in impoundments.”


Walk grew up with well water, and remembers that it would sometimes run red from the faucet.


“Anybody with half a brain wouldn"t drink it. But you still have to shower in it, you"ve got to wash your clothes, wash your dishes. Sometimes my parents would even cook with it because they boiled it and when you boiled it, it looked fine, smelled fine,” Walk said. He learned later that boiling the water doesn"t make the chemicals go away.


Science and community


Local groups have generally advocated for greater awareness about coal mining"s health impacts in three ways: community education, policy work, and direct action.


In 2013, OVEC partnered with the Southern Appalachian Labor School to host a series of public meetings in Fayette County, W.V., to educate people about the impacts of coal mining.


These meetings inspired a group of citizens to organize a study in their area with Hendryx"s help. About 45 people were surveyed for self-reported illnesses. Although the sample size was small, Keating said the most important result was empowering people to defend themselves.


“People in the state have been "done to" and "done for" long enough,” she said. “It"s time that people realize that they do have power.”


Many of OVEC"s efforts have centered around raising awareness in small communities. The organization provides water testing around the state upon request, and in the last two years, has hosted a conference to open up a dialogue between people affected by fracking and others affected by mountaintop removal. At least one faith group plans to help Hendryx conduct a survey this year, Keating said.


“There are a lot of people of faith here, and it"s more difficult for politicians or industry to marginalize us when we have solid backing from the faith community,” she said.


On the policy front, Coal Mountain River Watch in collaboration with OVEC and other groups won a legal settlement in 2011 that required Alpha Natural Resources, a coal company, to construct selenium treatment facilities at a cost of more than $ 50 million.


Today, CRMW is helping to spearhead the Appalachian Community Health Emergency Act in the U.S. Congress. The act, introduced in February 2013 by Rep. John Yarmuth, a Democrat from Kentucky, would require comprehensive studies on mountaintop removal"s impact on human health. It has 45 co-sponsors in the House.


Walk is a member of at least three local advocacy groups, and is a founding member of RAMPS (Radical Action for Mountain People"s Survival), which focuses on nonviolent direct action. He recalls one of those campaigns as we walk up a muddy path through Roberts Cemetery, a small island of public land at the center of the Hobet Mountain surface mining complex. Fallen leaves coat the hillside, but when we reach the top, the scene opens up: The mountains are mostly bare of trees. Ahead of us, a thin layer of grass sprouts from a huge pile of rubble that resembles a mountain, and in the distance, a few large machines groan dully. It"s a Saturday; the site is quieter than usual.


Walk describes an event that RAMPS put together called the Mountain Mobilization, which happened here at Hobet in July 2012. “It was pretty awesome,” he says. “We just had about 50 of our good friends go with us, climb up all over their equipment, and lock ourselves to things, and generally raise havoc that day on that mine site, and shut them down.”


The site was shut down for a day, and 20 people were arrested. Their total bail amounted to $ 500,000. But Walk"s goals were to raise awareness and cost the coal companies money, and RAMPS achieved those goals.


Home in the mountains


Walk and I stop the car off the side of Route 3, which runs for miles along the base of Coal River Mountain. We"re trying to get a good look at a valley fill, where rock and debris from a nearby mine piles up between the ridges to the south. It"s hard to see through the trees, but the sun is coming out on an otherwise gray December day, and flickering off the Big Coal River below. The branches sway in a gust of wind left over from the rainfall.


“I would never live anywhere else,” says Walk. He grew up just down the road, and as a kid, spent his free time riding four-wheelers in the mountains.


“My grandpa used to collect arrowheads a lot, … and there was this one place he used to take me on Coal River Mountain called Bear Wallow, and that place doesn"t exist any more,” he says. “It was on top of a ridge. They blew it up.”


After high school, Walk worked in a coal preparation plant for six months. Walk quit working there, but then took a job as a security guard at another plant.


“I felt like I had blood on my hands when I worked that job, and I just couldn"t do it,” he says. “I knew that the people who lived below that mine site I was making money off of were going through the same things I went through when I was a little kid, and I felt miserable about it. And that"s when I started coming around the local organizations around here and seeing what I could do to help out.”


 


 

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The Horrifying Health Effects of Mining

Thursday, March 27, 2014

Android apps secretly trick phones into mining cryptocurrency

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Android apps secretly trick phones into mining cryptocurrency

Friday, February 21, 2014

Uprising Against Illegal Mining Pits Villagers Against Miners & Police

At A Political Statement, the privacy of our visitors is of extreme importance to us (See this article to learn more about Privacy Policies.). This privacy policy document outlines the types of personal information is received and collected by A Political Statement and how it is used.

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Like many other Web sites, A Political Statement makes use of log files. The information inside the log files includes internet protocol (IP) addresses, type of browser, Internet Service Provider (ISP), date/time stamp, referring/exit pages, and number of clicks to analyze trends, administer the site, track user"s movement around the site, and gather demographic information. IP addresses, and other such information are not linked to any information that is personally identifiable.

Cookies and Web Beacons

A Political Statement does use cookies to store information about visitors preferences, record user-specific information on which pages the user access or visit, customize Web page content based on visitors browser type or other information that the visitor sends via their browser.

DoubleClick DART Cookie

  • Google, as a third party vendor, uses cookies to serve ads on A Political Statement.
  • Google"s use of the DART cookie enables it to serve ads to users based on their visit to A Political Statement and other sites on the Internet.
  • Users may opt out of the use of the DART cookie by visiting the Google ad and content network privacy policy at the following URL - http://www.google.com/privacy_ads.html.

These third-party ad servers or ad networks use technology to the advertisements and links that appear on A Political Statement send directly to your browsers. They automatically receive your IP address when this occurs. Other technologies ( such as cookies, JavaScript, or Web Beacons ) may also be used by the third-party ad networks to measure the effectiveness of their advertisements and / or to personalize the advertising content that you see.

A Political Statement has no access to or control over these cookies that are used by third-party advertisers.

You should consult the respective privacy policies of these third-party ad servers for more detailed information on their practices as well as for instructions about how to opt-out of certain practices. A Political Statement"s privacy policy does not apply to, and we cannot control the activities of, such other advertisers or web sites.

If you wish to disable cookies, you may do so through your individual browser options. More detailed information about cookie management with specific web browsers can be found at the browser"s respective websites.


Uprising Against Illegal Mining Pits Villagers Against Miners & Police

Tuesday, January 28, 2014

Osisko Mining CEO says not in talks with Goldcorp



TORONTO Tue Jan 28, 2014 3:23pm EST



TORONTO Jan 28 (Reuters) – The chief executive of Osisko Mining Corp said Tuesday he has not spoken to anyone at Goldcorp Inc since shortly before Goldcorp announced last week it would make an unsolicited takeover bid for the mid-tier Canadian gold producer.


Osisko CEO Sean Roosen, who described the bid as “very hostile,” said he got a courtesy call about the offer roughly half an hour before Goldcorp, one of the world’s biggest gold miners, sent out a press release announcing it.


Roosen spoke to media on the sidelines of a conference in Toronto, where he urged investors to reject the offer. Osisko has called the 15 percent premium being offered by Goldcorp “very low.”


“We are five minutes into the first game of a seven-game series. Don’t sell your stock,” said Roosen in a lunchtime presentation at the TD Securities Mining Conference.


Vancouver-based Goldcorp, which wants control of Osisko’s Malartic gold mine in Quebec, said last week it went ahead with an unsolicited offer after a long series of frustrated attempts to engage Osisko in talks.


Roosen said he expects portfolio managers will make sure they are rewarded for the risk they took investing in Osisko before it had a producing mine. Malartic, Osisko’s only mine, reached commercial production in the spring of 2011.


“If you’re going to invest in growth assets and they’re going to trade at a zero premium at the end of the day, that doesn’t really make a business model for portfolio managers,” he said.





Reuters: Bonds News



Osisko Mining CEO says not in talks with Goldcorp

Sunday, December 8, 2013

Is Mining On The Moon"s Horizon?

Is Mining On The Moon"s Horizon?
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Alexander Klein/AFP/Getty Images

The moon on Oct. 22.


Alexander Klein/AFP/Getty Images



A U.S. company is taking what it hopes to be a small step toward eventually mining the moon.


Las Vegas-based Moon Express just unveiled the design for a small robot spacecraft about the size of a coffee table that it says could move about the moon’s surface powered only by solar panels and hydrogen peroxide.


The company hopes to build the robot and send it to the moon by late 2015, win the $ 30 million Lunar X Prize from Google for the first privately funded moon rover, and eventually get around to putting on the moon an operation capable of extracting valuable minerals.


Even if all goes as planned, that’s a long way off, says Bob Richards, co-founder of Moon Express. It would take repeated moon missions over the next decade before any mining could begin.


“Everything we fight about on Earth, all the resources are available in infinite quantities in space,” says Richards, pointing out the moon has platinum and other rare Earth elements. “The moon is the first shopping market next door to us.”


But Moon Express isn’t the only one eyeing the potential business opportunities on the moon. China’s recently-launched lunar probe also will look for natural resources. And Pittsburgh-based Astrobotic Technology is aiming at the Google Lunar X Prize with space exploration, tourism and resource-harvesting in mind.


There are others in the game, as well. And the United Nations’ Outer Space Treaty of 1967 says anyone is free to harvest resources on the moon, a bit like the high seas.


But Tony Milligan, a teaching fellow of philosophy at the University of Aberdeen in Scotland, argued in a recent paper that the moon shouldn’t be mined unless there are much larger stakes at risk, such as survival of the human race.


“If something tremendously valuable were to be found under the pyramids or under the Sphinx we would think of it as a bad idea to go in and shift or remove or destroy these objects in order to get at it,” Milligan says. “I think we should look towards asteroids rather than churning up the moon or Mars.”




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Read more about Is Mining On The Moon"s Horizon? and other interesting subjects concerning NSA at TheDailyNewsReport.com

Is Mining On The Moon"s Horizon?




Alexander Klein/AFP/Getty Images

The moon on Oct. 22.


Alexander Klein/AFP/Getty Images



A U.S. company is taking what it hopes to be a small step toward eventually mining the moon.


Las Vegas-based Moon Express just unveiled the design for a small robot spacecraft about the size of a coffee table that it says could move about the moon’s surface powered only by solar panels and hydrogen peroxide.


The company hopes to build the robot and send it to the moon by late 2015, win the $ 30 million Lunar X Prize from Google for the first privately funded moon rover, and eventually get around to putting on the moon an operation capable of extracting valuable minerals.


Even if all goes as planned, that’s a long way off, says Bob Richards, co-founder of Moon Express. It would take repeated moon missions over the next decade before any mining could begin.


“Everything we fight about on Earth, all the resources are available in infinite quantities in space,” says Richards, pointing out the moon has platinum and other rare Earth elements. “The moon is the first shopping market next door to us.”


But Moon Express isn’t the only one eyeing the potential business opportunities on the moon. China’s recently-launched lunar probe also will look for natural resources. And Pittsburgh-based Astrobotic Technology is aiming at the Google Lunar X Prize with space exploration, tourism and resource-harvesting in mind.


There are others in the game, as well. And the United Nations’ Outer Space Treaty of 1967 says anyone is free to harvest resources on the moon, a bit like the high seas.


But Tony Milligan, a teaching fellow of philosophy at the University of Aberdeen in Scotland, argued in a recent paper that the moon shouldn’t be mined unless there are much larger stakes at risk, such as survival of the human race.


“If something tremendously valuable were to be found under the pyramids or under the Sphinx we would think of it as a bad idea to go in and shift or remove or destroy these objects in order to get at it,” Milligan says. “I think we should look towards asteroids rather than churning up the moon or Mars.”




News



Is Mining On The Moon"s Horizon?

Monday, October 7, 2013

Leaked Snowden docs show Canada spied on Brazil’s Mining and Energy Ministry


AFP
Oct. 7, 2013


Canada spied on communications at Brazil’s Mining and Energy Ministry, according to Canadian intelligence documents revealed Sunday by Globo television.


The documents were leaked by former U.S. intelligence contractor Edward Snowden. His disclosures including that the United States spied on the same ministry, on President Dilma Rousseff and her aides, have greatly strained US-Brazilian ties.


In the disclosures broadcast on Globo, documents purportedly from the Canadian Security Intelligence Service leaked by Snowden show a detailed outline of the Brazilian ministry’s communications including phone calls, emails and Internet traffic.


Read more


This article was posted: Monday, October 7, 2013 at 9:44 am


Tags: big brother, foreign affairs, internet









Infowars



Leaked Snowden docs show Canada spied on Brazil’s Mining and Energy Ministry

Tuesday, August 13, 2013

Armed Guards Get OK To Return To Wisconsin Mining Site


Heavily armed, masked guards from an Arizona-based security company received approval last week to return to the site of a proposed mine in Wisconsin where they have clashed with protesters. However, the district attorney of Iron County, where the site is located, has implied he will take action against the mining company if the guards try to return with their weapons.


The guards, who have been outfitted with camouflage and semiautomatic weapons, are employed by Arizona’s Bulletproof Securities, a company that specializes in “border security” and “executive” protection and is run by an entrepreneur who also is tied to ventures in real estate and payday loans. Bulletproof’s guards were initially ordered to leave the site of the planned mine July 10 after it was found they were operating without a Wisconsin license.


Gogebic Taconite, the company that hopes to operate a mine on the site has argued the heavily-armed guards were necessary because protesters who are concerned about the impact the mining would have on forests had disrupted operations and attacked equipment at the site.


After investigating whether Bulletproof was operating without a license at the site, Wisconsin’s Department of Safety and Professional Services dismissed the complaints and issued a license Aug. 5. Bulletproof has argued the guards exceeded all of the license requirements and they were simply unaware they needed a specific Wisconsin license in addition to their federal credentials. Records also show Bulletproof contacted Gov. Scott Walker’s (R) office to notify officials they planned to send guards to Wisconsin. The case was turned over to the Iron County District Attorney’s office to determine if the guards violated any laws.


Last week, according to Wisconsin Public Radio News, Iron County District Attorney Marty Lipske said he would not pursue any charges against Bulletproof or Gogebic Taconite if they agree to have the guards monitor the site without guns. Bob Seitz, a spokesman for Gogebic Taconite, did not immediately respond to a request from TPM about whether the company planned to accept Lipske’s offer.


Whether or not the guards — and their guns — are able to return, the future of the proposed mine is unclear. Gogebic is conducting tests to determine whether operating an iron ore mine on the site would be feasible and safe. According to the Duluth News Tribune, officials from the Wisconsin Department of Natural Resources have indicated they have concerns the mining and testing could release asbestos-like fibers into the air. The resources department is planning to hold a hearing about the project Aug. 15 and will be accepting public comments until Sept. 3.


Bulletproof Securities, Wisconsin


Hunter Walker

Hunter Walker is a national affairs reporter for TPM. He came to the site in 2013 from the New York Observer. He has also written for New York Magazine, Gawker, the Village Voice, Forbes, The Daily, and Deadspin. He can be reached at hunter(at)talkingpointsmemo.com





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Armed Guards Get OK To Return To Wisconsin Mining Site

Tuesday, August 6, 2013

Decade-long Australia mining boom turns to bust







In this photo taken on Thursday, June 13, 2013, a sign warns that the Peak Downs Highway will be closed for 15 minutes on Friday June 14, as a safety precaution while the Coppabella coal mine across the road blasts southwest of Mackay city, Queensland state, Australia. Falling coal prices have hastened the closure of some financially marginal mines in the region and shed thousands of jobs. (AP Photo/Rod McGuirk)





In this photo taken on Thursday, June 13, 2013, a sign warns that the Peak Downs Highway will be closed for 15 minutes on Friday June 14, as a safety precaution while the Coppabella coal mine across the road blasts southwest of Mackay city, Queensland state, Australia. Falling coal prices have hastened the closure of some financially marginal mines in the region and shed thousands of jobs. (AP Photo/Rod McGuirk)





In this photo taken on Friday, June 14, 2013, a car drives past a residential block for sale below market value on the outskirts Mackay city, Queensland state, Australia. A slump in real estate prices is one of the consequences of the fall in coal prices. (AP Photo/Rod McGuirk)





In this photo taken on Thursday, June 13, 2013, truck driver Ken Smith hauls giant mining truck tires along the Peak Downs Highway southwest of Mackay city, Queensland state, Australia. The Australian mining boom built over a decade on Chinese hunger for energy and raw materials is turning into bust for many business owners as China’s cooling growth reverberates through a country accustomed to winning from the rise of an Asian economic giant. Smith is confident that the mining boom days will return. (AP Photo/Rod McGuirk)





In this photo taken on Thursday, June 13, 2013, a worker stands at Coppabella coal mine, southwest of Mackay city, Queensland state, Australia. Falling coal prices have hastened the closure of some financially marginal mines in the region and shed thousands of jobs. (AP Photo/Rod McGuirk)





In this photo taken on Thursday, June 13, 2013, a worker repairs a drag line bucket used to dig coal in the nearby Bowen Basin at a workshop in Mackay city, Queensland state, Australia. Falling coal prices have hastened the closure of some financially marginal mines in the basin and shed thousands of jobs. (AP Photo/Rod McGuirk)













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(AP) — The Australian mining boom built over a decade on Chinese hunger for energy and raw materials is turning into bust for many business owners as China’s cooling growth reverberates through a country accustomed to winning from the rise of an Asian economic giant.


Endowed with vast mineral resources, Australia has been the envy of the Western world for avoiding recession during the global financial crisis while other wealthy countries drowned in debt. But the country now faces a potentially painful transition as it weans itself off a heavy reliance on its two biggest exports, coal and iron ore.


Australia’s dilemma underscores that China’s long run of supercharged growth has given it enough weight in the world economy to create not only winners, but losers too when its own fortunes change.


Trade between Australia and China equaled 7.6 percent of Australia’s $ 1.5 trillion economy last year, a dramatic threefold increase from a decade earlier, according to an Associated Press analysis of trade data. During that time, mining companies gushed multibillion dollar profits while jobs as mundane as maintenance commanded salaries above $ 120,000.


Now the downside of that tight embrace is being felt across Australia’s mining heartlands and in its bustling cities. The number of jobless is expected to increase more than 70,000 in coming months and the government’s finances are turning a deeper shade of red, forcing cuts to public services.


Andrew Howard has done well from buying and selling jumbo-sized earth moving equipment from his base at an industrial estate in the tropical northeast coast city of Mackay, the largest mining service center in Australia’s richest coal country, the Bowen Basin.


At the height of the global financial crisis, he traveled to the United States to buy up machinery cheap in a depressed economy and later sold it to a resurgent Australian mining industry.


But now Howard plans to shut the doors of his business AFG Equipment in late August after operating for a decade that tracked the rise and fall of Australia’s mineral boom.


“There’s just absolutely nothing happening. We’re just treading water,” he said. “It may bounce back in 12 months, it may bounce back in five years, it’s hard to say.”


With China recording its fifth straight quarter of growth below 8 percent, Howard isn’t optimistic that Australia’s biggest export market will rekindle the cooling mining industry any time soon.


“Everyone realizes it’s pretty serious this time,” he said. “This is probably as bad as we’ve seen it.”


China’s response to the global recession was to pour hundreds of billions of dollars into new highways, bridges, bullet trains and factories, unleashing a new wave of demand for Australia’s mineral riches that helped extend its mining boom. But new communist leaders are resisting calls for another round of stimulus, preferring instead to let the economy settle at a growth rate of 7 to 8 percent — still far outpacing developed countries but a substantial shift lower from earlier double digit expansion.


Falling coal prices have hastened the closure of some financially marginal mines in the Bowen Basin and shed thousands of jobs. The price of Australian coking coal, the premium grade used in steelmaking, has fallen from a peak of $ 330 a metric ton in late 2011 to around $ 135. The iron ore price has tumbled from $ 192 in early 2011 to around $ 130.


The Bureau of Resources and Energy Economics, a government forecaster, said in May that the cancellation or postponement of 150 billion Australian dollars ($ 139 billion) in major resource projects meant the years-long upswing in construction for mining and gas projects had peaked.


The bureau said AU$ 350 billion in committed and potential projects could slump to AU$ 25 billion in 2018, half of what it was when the boom began in 2003.


Tim Miles, chairman of the Mackay Chamber of Commerce, said the mining downturn struck suddenly in the space of a few months late last year with widespread economic ramifications.


“It stopped very quickly so a lot of people have had to downsize their businesses to suit the new market,” Miles said.


“That has meant offloading a lot of equipment if they can, parking a lot of equipment which they still owe money on but are just not making income from and they’re being forced to charge less for their goods and services,” he said.


Miles did not think the downturn had hit bottom yet.


“Twelve months ago we were in a boom that you didn’t have to do a lot to make money. The work just flowed through the door,” Miles said. “But now people actually have to get off their backside and work hard to make a living.”


Sugar cane was Mackay’s original boom industry and is still important to the region but not big enough to pick up the slack.


And while Australia will continue to be a significant minerals exporter, digging up and shipping ore and coal overseas soaks up far fewer workers than building new mines.


Mines that are being constructed are designed to be more cost efficient in preparation for a future upswing in demand that is likely to be far more modest than the past decade’s.


The new reality is still sinking in.


Ken Smith earns a living hauling enormous mining truck tires that can exceed more than 4 meters (13 feet) high between the Bowen Basin and his depot more than 1,000 kilometers (600 miles) away in the state capital Brisbane.


He drives up to 5,000 kilometers (3,100 miles) a week and maintained a hectic work schedule until July when orders dropped off.


He is confident that a gold-rush mentality will return.


“They say it’s slowing down, but they’re still building new mines,” Smith said.


“Once it all starts up again, once the money comes back into the coal, there’ll be a big scramble for staff again,” he said.


After accounting for about half of Australia’s economic growth in the past two years, the contribution of resource extraction industries such as coal and iron ore mining would fall to one third, Australian Treasurer Chris Brown told the National Press Club last month.


“We have reached a cross road,” he said. “This is not a crisis, but it is a challenge.”


To maintain economic growth at its long-term average of 3 percent, Australia must turn to industries other than mining and gas, Bowen said.


It is a shift that will take time and won’t be without pain.


The government expects the unemployment rate to rise to 6.25 percent by the middle of next year from about 5.7 percent at present. Its own finances are rapidly deteriorating as slowing economic growth weighs on tax revenues. In May it forecast a budget deficit of AU$ 18 billion. Last week it announced the shortfall would be nearly twice that.


A euphemistic government order for a bigger “efficiency dividend” will require all government departments and agencies to cut spending.


On Tuesday, the central bank cut its benchmark interest rate to a record low of 2.5 percent.


“We thought we could see it coming,” said Howard, owner of the heavy equipment business. “We didn’t know whether it was a year away, whether it was two years away or it could have been five years away. We just had a feeling we had to pull back eventually.”


He now fears wages in Australia have become too high for the mining industry to compete internationally.


“I travel around the world everywhere buying and selling gear and I think we’ve become a bit complacent. We need to have a good hard look at what it costs us to get coal into a train compared to other countries,” Howard said.


Associated Press




Business Headlines



Decade-long Australia mining boom turns to bust

Sunday, July 14, 2013

Mining the World to Death



Our industrial model, based on extraction, is setting us on a road to eventual collapse.








The following is an excerpt from We Are All Apocalyptic Now: On the Responsibilities of Teaching, Preaching, Reporting, Writing, and Speaking Out, in print at Amazon.com and on Kindle (CreateSpace Independent Publishing Platform, 2013).

 

Progressive analyses of inequality and injustice focus on the illegitimate hierarchies in patriarchy, white supremacy, the imperial nation-state system, and capitalism. The final hierarchal system—and in some ways the most dangerous—is the industrial model of human development, the latest and most intense version of an unsustainable extractive economy.

 

The bounty that makes contemporary mass consumption possible did not, of course, drop out of the sky. It was ripped out of the ground and drawn from the water in a fashion that has left the continent ravaged, a dismemberment of nature that is an unavoidable consequence of a worldview that glorifies domination. 

 

“From [Europeans’] first arrival we have behaved as though nature must be either subdued or ignored,” writes the scientist and philosopher Wes Jackson, one of the leading thinkers in the sustainable agriculture movement. As Jackson points out, our economy has always been extractive, even before the industrial revolution dramatically accelerated the assault in the 19th century and the petrochemical revolution began poisoning the world more intensively in the 20th. We mined the forests, soil, and aquifers, just as we eventually mined minerals and fossil fuels, leaving ecosystems ragged and in ruin, perhaps beyond recovery in any human timeframe. All that was done by people who believed in their right to dominate.

 

One way to understand that domination is the context of the two major revolutions in human history—the agricultural and industrial revolutions.

 

The agricultural revolution started about 10,000 years ago when a gathering-hunting species discovered how to cultivate plants for food and domesticate animals. Two crucial things resulted from that, one ecological and one political. Ecologically, the invention of agriculture kicked off an intensive human assault on natural systems. Gathering-hunting humans were capable of damaging a local ecosystem, but the large-scale destruction we cope with today has its origins in agriculture when humans began exhausting the energy-rich carbon of the soil, what Jackson has described as the first step in the entrenchment of an extractive economy and Jared Diamond has called “the worst mistake in human history.”

 

Human agricultural practices vary from place to place but have never been sustainable over the long term. Politically, the ability to stockpile food made possible concentrations of power and resulting hierarchies that were foreign to gathering-hunting societies. Again, this is not to say that humans were not capable of doing bad things to each other prior to agriculture, but only that what we understand, as large-scale institutionalized oppression has its roots in agriculture. We need not romanticize pre-agricultural life to recognize the ways in which agriculture made possible dramatically different levels of unsustainability and injustice. 

 

The industrial revolution that began in the last half of the 18th century in Great Britain intensified the magnitude of the human assault on ecosystems. Unleashing the concentrated energy of coal, oil and natural gas to run a machine-based world has produced unparalleled material comfort for some. Whatever one thinks of the effect of such comforts on human psychology (and, in my view, the effect has been mixed), the processes that produce the comfort are destroying the capacity of the ecosphere to sustain human life as we know it into the future, and in the present those comforts are not distributed in a fashion that is consistent with any meaningful conception of justice. The ecological consequences of this revolution are painfully obvious. 

 

These two changes in human history come together today in what typically is called “industrial agriculture,” the dominant method of producing food at this moment in history in the United States, the rest of the developed world, and increasingly in the developing world. It is a style of agriculture that everyone agrees has produced substantial increases in yields, tripling the world grain harvest in the second half of the 20th century. Critics, however, point out that those yields have come at the cost of deep, and possibly permanent, injuries to the land, people and other species.

 

Various characteristics of industrial agriculture have been evolving over time, but by the second half of the 20th century the industrial system was firmly in place in the United States. The features of the current system include: (1) heavy use of nonrenewable inputs purchased off the farm, such as chemical fertilizers, pesticides and herbicides; (2) extensive mechanization, making farming both capital- and technology-intensive; (3) heavy reliance on fossil fuels for those inputs and mechanization, to such an extent that critics joke that modern farming is the use of land to covert petroleum into food; (4) decreased self-sufficiency for individuals and communities, and increased dependence on corporations; and (5) a lack of concern for, if not outright hostility toward, systems and living things that do not directly contribute to production.

 

Along with the dramatic increases in food production, the predictable results of this system have been: (1) drastic and continuing loss of topsoil; (2) declining soil fertility; (3) a severe reduction in farm population; and (4) the resulting loss of knowledge of traditional methods that require fewer inputs, less technology, less capital, and more people.

 

This is what Jackson calls “the failure of success,” the paradox of a system that results in more food coming from fields that have less, and less fertile, soil. The so-called “Green Revolution”—a variety of research and social programs associated with the work of Nobel Prize-winning agronomist Norman Borlaug—was not really a revolution but an extension of industrial agriculture to the Third World, which resulted in short-term reductions in hunger but also exported this extremely fragile model to the developing world, creating the same long-term problems.

 

The agricultural revolution produced the first systematic extractive model, which set us on a road to eventual collapse. The industrial revolution ramped up our speed. The material benefits of those revolutions are not spread equally or equitably around the world, which challenges us to create a more just world as we struggle to find a new model for a sustainable world. 

 

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Mining the World to Death