May, 2003
INDUSTRY BRIEFS

BLM announces new awards program

Hardrock miners who make exemplary contributions to solid minerals development will be eligible for two types of awards in a new BLM program.

CMA is encouraging companies to participate in the nominations effort and meet the May 30 deadline for entries. Information is available from Jim Hamilton at the California BLM in Sacramento, 916/978-4376.

A “Hardrock Mineral Environmental Award” will be presented for continuous or repeated efforts to successfully meet or exceed federal, state or local reclamation requirements with minimum oversight. The community-oriented award recognizes work that contributes to community quality of life or demonstrates concern for the long-term health of a local community. 

CMA NEWS

CMA office on the move

After a decade at One Capitol Mall, the CMA office is moving to a downtown location at 1107 9th St., Suite 705, Sacramento 95814.

The new office is within a block or two of important state agencies and the Capitol. Phone numbers will stay the same. The move will be completed by June 21, according to CMA Manager Adam Harper.

Thank You,
Conference Sponsors

Here are the sponsors who deserve thanks for their contribution to the pleasures and success of the upcoming 2003 Annual Conference:

Welcome Gifts
Jeffer, Mangels, Butler & Marmaro LLP

Platinum
Downey Brand Attorneys LLP
Molycorp Inc.

Gold
Brown and Caldwell
Glamis Gold Ltd.
Gresham, Savage, Nolan & Tilden LLP
Lilburn Corp.
Montgomery Watson Harza
Newmont Gold Corp.
Tetra Tech EM Inc.
U.S. Pumice Inc.
West Coast Environmental & Engineering

Silver
Gladding McBean
Omya (California) Inc.
Resource Design Technology Inc.

Bronze
Specialty Minerals, Inc.

Banquet
DegreedJobs.com.
Molycorp Inc.
Viceroy Gold Corp.
Weston, Benshoof, Rochefort, Rubalcava & MacCuish LLP

Golf Tournament
B. Demar Hooper
EIP Associates
Graniterock
Montgomery Watson Harza
Newmont Gold Corp.
Omya (California) Inc.

Special Thanks to:
Viceroy Gold Corp., staffing assistance during conference
Geomatrix Consultants, staffing assistance during conference
Yolo County Chapter, Construction Materials Association of California, for sponsoring travel expenses for Cache Creek Conservancy
ICMJ’s Prospecting and Miners Journal, free conference advertising
Miners News, free conference advertising

Member News

David Moser’s name on the door

CMA Environment Committee counsel David Moser has opened a new law firm in San Francisco—Ebbin, Moser & Scagg.

The address is 500 Montgomery St., Suite 900, San Francisco 94111; phone, 415/362-0634; Fax, 415/391-2779; email, dmoser@emsresourceslaw.com

Moser will speak at the Annual Conference May 22 at 2 p.m. on the “Endangered Species: The Bush Administration and the Republican Congress.”

New name, same law firm

Headline writers will welcome the news that CMA law firm member Downey Brand Seymour & Rohwer is scaling down its name to Downey Brand Attorneys LLP.

With the new name come new numbers: Phone, 916/444-1000; Fax, 916/444-2100; website, www.downeybrand.com

Hooper opens new law firm

B. Demar Hooper, formerly with Taylor, Hooper & Wiley, has launched a new law firm and along with a membership in the California Mining Association.

The new B. Demar Hooper Professional Law Corporation is located at 601 University Ave., Suite 146 in Sacramento, 95825. The phone number is 916/649-1949, fax, 916/649-1930; email: demar@bdhooperlaw.com

Hooper will speak at the Annual Conference May 22 during the “Environmental Critical Issues Session” at 2 p.m. He will discuss “Implications for Mine Permitting and Operation.”

Raffle fundraiser for CMEF

Don’t forget to stop by the California Mineral Education Foundation booth at the CMA Conference in May and enter their annual raffle.

This year’s prize is a 17” LCD Display Flat Screen computer monitor, donated by Molycorp Inc. Don’t forget your wallet!


IN THIS ISSUE

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Metal mining takes a punch

Industry Impact: Operators say costs of a new state regulation demanding backfilling and recontouring of open pit metal mines makes foreseeable future projects unviable, which would appear to be just exactly what the governor intended.

CMA Action: Industry mounted strong opposition effort but failed to budge the administration or legislature from an overkill regulation. One company is considering litigation.

CMA Association Manager Adam Harper noted that even the governor knew how drastic this action was, citing Governor Davis’ press release on SB 22 in which the Governor noted: “The reclamation and backfilling requirements of this legislation would make operating the Glamis Gold Mine cost prohibitive.” Other mines operate under similar cost structures and expanding the requirements statewide simply makes projects unviable statewide. 

While Senate Bill 22 (Sher) is aimed specifically at the proposed Glamis Gold Mine in Imperial County, which has encountered opposition from the Quechan Indian Tribe, the State Mining and Geology Board is extending the rule to all California’s metallic mines.

In addition, the SMGB is removing the requirement that to activate a backfilling mandate you must impact a Native American sacred site.  CMA asked the legislature, the governor and the SMGB to take steps to limit the rule to only projects with such an impact. 

Richard De Voto, president of Canyon Resources, which operates a CR Briggs mine exploration in Panamint Valley, agrees the future looks bleak. With millions of dollars and 14 years already invested in that project, he says “we will not dig another hole.” The company is also considering litigation over property devaluation, he said.

Allen Jones, SMGB chair, maintains the rule “does not prohibit metallic mining and does little more than say you have to clean up the effects of what you do in the communities where you mine.”    

SMGB’s Initial Statement of Reasons notes, “No technical, theoretical, empirical studies, reports or documents were prepared or relied upon by the SMGB in its consideration of this rulemaking.”  If the SMGB had relied on documents (such as the Certified EIR/EIS for the Castle Mountain Mine which CMA submitted) they would have had to acknowledge the increased environmental costs of backfilling. 

Harper notes, “this rule ignored all evidence provided, including real world examples of positive end uses for mine pits from endangered species habitat and reintroduction programs to land fills. The administration didn’t want reason, they wanted to halt metal mining in California.”

He goes on to explain: ”In the end the losers are not just the miners but the people of California. Mining in California is practiced under the strictest of environmental rules and procedures in the world. Effectively banning the activity will only mean that the resources will get produced outside the state and possibly the country, continuing the process of “exporting” the high-paying jobs that are needed in America. It’s simply an example of the Environmental Imperialism that occurs when standards are raised to the point of technical infeasibility; a level that California seems to be reaching more and more.”


Gold earns role in history

The 1849 California Gold Rush produced private fortunes overnight, sparked statehood in 1850 and replaced a tallow and hide industry with a thriving economy.

Financial gains were not always born of the pick, shovel and gold pan of an infant mining industry but of meeting the needs of the miners and others among the 300,000 adventurers flooding into the area. A dry-goods merchant from Bavaria named Levi Strauss recognized miners’ needs for sturdy trousers, and his Levi’s jeans once sold for gold dust are still sold in the nation’s shops and abroad.

John Studebaker made wheelbarrows for miners in Placerville before going back to Indiana to manufacture automobiles. Ghirardelli sold general merchandise before specializing in chocolate. Korbel Champagne made cigar boxes before the bubbly. Banks often collapsed in financial panic periods, but Wells Fargo cashed in on the failure of two business rivals to become the premier Northern California bank.

Ultimately, California gold mines—which produced more than $170 million in gold in 1860-- played an important part in shoring up the federal currency and in providing strong support for the Civil War effort.

Gold continues to play a significant role in national and global economies, according to figures from The Gold Institute. California in 2000 was the fourth largest producer of gold in the nation with production valued at $121,882,000 and an employee force of 2,257.

Nationally, gold production has climbed from a million ounces annually in 1980 to 11 million ounces and is able to meet all domestic needs while making 23 percent of production available for export, an important contribution to the balance of trade.


Conference clock ticking

Mike Pool, state director of the Bureau of Land Management, will hone in on issues and complexities associated with mining on federal land as opening keynote speaker for the May 21-23 Annual Conference at the Hilton Hotel Resort in San Diego.

Pool is one of several distinguished speakers who will emphasize the basic tools needed by industry to gear up for increasing challenges ahead in permitting, environmental litigation and communication.

Brian Anderson, Vulcan Materials, is replacing Steve Cortner in a lively presentation May 22 with Drew Meyer, Vulcan Materials, on how a business can succeed when stepping into the tricky California market from out of state.

In a provocative program addition May 22, Carol Legard, Advisory Council on Historic Preservation, recommends patience and flexibility in working with State Historic Preservation officers and Native American Tribes in a permitting or approval process under the National Historic Preservation Act.

A program change moves the Board of Directors meeting from Wednesday at 5 p.m. to Friday at 8 a.m. for a “State of the Association” report, installation of officers and presentation of the President’s Award and John Tooker Spirit of Mining Award. Everybody is invited.

Social events include the annual CMA Golf Tournament, Wednesday morning at Rancho Bernardo Inn, a Behind the Scenes tour for spouses and family at the San Diego Zoo (also on Wednesday), and the Annual Banquet to be held Thursday evening at the Sea World Manatee Rescue Exhibit, featuring a special Shamu Show for CMA guests.

The final event, the Post Conference Soiree will be held on board the Spirit of San Diego for dining and dancing in the beautiful San Diego Harbor.  Click here for details, registration materials and updated program scheduling.

Women-In-Mining Elect

Penny Alexander-Kelley, newly elected president of California Chapter of Women-In-Mining, sees education as an essential tool in emphasizing the value of minerals in everyday life.

An attorney with the firm of Gresham, Savage, Nolan & Tilden, Alexander-Kelley is active on a subcommittee of the CMA Environment Committee.

As president, she says it is her goal “to have every WIM member confident, equipped and able to make an educational presentation in a classroom or other public setting about the value of minerals and their uses in our lives.”

Alexander-Kelley will remind members the regulation of mining and extraction of minerals is changing almost daily; “as is the way local communities and local decision-makers view the importance of mining…”

Other new WIM officers include: Denise Talavitie, supervisor of maintenance, California Portland Cement Company in Mojave; Loretta Berry, large equipment mechanic, US Borax; Shannon Carnie, corresponding secretary; Patti Deer, MDAQMD, recording secretary.

Teacher Conference update

California Mineral Education Foundation-sponsored teacher conferences in 2003 are scheduled June 26-27 in Pomona and July 31-Aug. 1 in Stockton.

The annual conferences combine lectures, workshops and field trips focused on the importance of minerals in everyday life and are designed for K -12 teachers statewide. The June conference will be held at Kellogg West Conference Center, Cal Poly University in Pomona, and the Stockton conference at University of the Pacific.

New officers announced by CMEF are: President, Bruce Warren, Southern California Rock Products Association; Vice President, Linda Falasco, Construction Materials Association of California; Secretary, James Davis, California Geological Survey; Treasurer, John Miles, U.S.Pumice Company. 

CMEF President Warren and Managing Director Carol Berry conducted a successful and well-attended teacher workshop at the recent annual San Diego Science Educators Conference. OMYA (California) Inc. donated mineral samples and supplies for the workshop, and Southern California Rock Products Association sponsored the CMEF booth.

A tidier environment?

Air is cleaner, water quality better and toxic chemical releases fewer today than in the past, according to the eighth annual Index of Environmental Indicators.

Released by the American Enterprise Institute and Pacific Research Institute, Index research received by Western Business Roundtable shows air pollution in the United States has declined by 25 percent over 30 years and toxic releases have dropped by more than 50 percent in 15 years.

Steven Hayward, author of the report, says long-term improvements in air quality are significant but rarely reported because annual declines are small. Sulfur dioxide emissions, for example, dropped barely 3 percent last year, but compared with 1976 levels, the decline represents a 67 percent reduction.

Data for drinking water is incomplete, but one improvement report indicates the number of U.S.children exposed to unsafe drinking water came down from 20 percent in 1993 to 8 percent in 1999.

Tax Seminar: ‘Let’s talk’

The seventh annual CMA Mineral Property Tax Assessment Seminar in Bakersfield delivered a recent invitation to assessors and miners to use “education and information” to broaden communication between the two communities.

Peter Finie, Vulcan Materials, chairs the CMA Tax Committee and believes the message bears repeating if it encourages dialog and helps both sides understand the issues in establishing a fair and proper basis for property valuation.

“That was my intent when I started this seven years ago, and it has seen results. I did not expect miracles, but it has opened doors,” Finie says. He believes proof is a consistent attendance of between 50 and 60 “equally divided between assessors and industry.”

George Welch of the Los Angeles County Assessors Office attends several industry-type seminars yearly and calls the CMA program “informative and one of the best…an excellent forum for meeting with taxpayers, as well as with government and industry.”

A highlight of the seminar was a tour of the Taft Production Company cat litter clay-based materials mine hosted by Mike Funkhouser.

The 2003 Seminar tax assessment materials may still be purchased. For information, call Stephanie Pridmore, CMA, 916/447-1977.

END