Economist presents results of copper mining study

The Daily Mining Gazette | November 6, 2013
By Garrett Neese  – DMG writer (gneese@mininggazette.com)

HOUGHTON – Despite the economic benefits of mining, the instability and other drawbacks mean the western Upper Peninsula is better off looking elsewhere for prosperity.

That conclusion was reached by Thomas Power, who presented the results of a recent study on the economic impact of copper mining Tuesday night in the Upper Peninsula. Power, a research professor and former economics department chair at the University of Montana, prepared the report for Friends of the Land of Keweenaw, an environmental advocacy organization.

Power appeared at Michigan Technological University Tuesday as part of its Green Lecture Series.

Garrett Neese/Daily Mining Gazette
Thomas Power, a research professor and former economics department chair at the University of Montana, delivers his talk “The Economic Anomaly of Mining: Treasure and Tears” at Michigan Technological University Tuesday night.

In his report, he argues the western U.P. should concentrate on “economic gardening” – supporting start-up and existing businesses – and protecting and enhancing environmental amenities and other “quality of life” assets.

Power said he doesn’t have any animosity toward mining. He came from a metal mining family, and spent the first 18 years of his life falling asleep to the “soft thump” of the Bay View Rolling Mill in Milwaukee. But in many cases, the drawbacks of mining outweigh the positives.

Mining grew popular because of some very real economic benefits: the ability to extract valuable minerals, the high wages for workers – at times, averaging 40 percent higher the average working wage – and the tax revenues for municipalities.

However, any positive impact is tempered by instability, Power said – not just the familiar boom-bust trajectory, but the “flicker.” That occurs as prices in the international metal markets fluctuate, affecting the mine’s profitability. In turn, the mines compensate by reducing the labor force.

“It’s one thing to talk about high wages, but if the high wages are unreliable, the impact of those high wages on the local economy is going to be different than wages people think that they can count on,” Power said.

Technological advances have made mineral extraction more feasible in spots. But the increase in productivity has also reduced the number of employees neede. From 22 workers in 1970, the number needed to produce a thousand megatons dropped to six in 2004, rebounding slightly for unknown reasons to 10 now.

Because the mining job paid better than most of the alternatives laid-off miners are likely to find, they’re more likely to stay around the area and hope to be rehired, Power said.

“They hang on, hoping to be rehired,” he said. “Instead, what they see is more people being laid off.”

The economic benefits to mining are often least felt in the immediate area. Because of their high wages, miners can afford to live in more upscale areas. Often, they don’t want to live near the mine, where environmental degradation or the end of the mine can hurt property values. That potential for instability also discourages investment in local infrastructure, such as schools.

Power didn’t call for an end to mining, but said residents should apply the same kind of cost-benefit thinking mining companies use when they approach projects.

“We have to make choices, and we have to make choices because there are costs as well as benefits,” he said. “What citizens have to do, from a public interest point of view, is to weigh the clear economic benefits associated with mining, but also recognize the potential cost to the community, then make their decision and urge their representatives in government to do the same thing.”

William Keith of Houghton said he hadn’t known miners would commute so far for work.

“I thought it was an engaging presentation,” he said.

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Full report available at http://www.folkminingeducation.info/wp-content/uploads/2013/07/Minings-Economic-Impact-on-Western-UP1.pdf

Do you Wanna Save the Wild UP? Join our Intern Corps!

We are delighted to announce our search for three superstar interns to join Team SWUP starting in the Winter 2014 NMU school semester.

Save the Wild U.P. is at the forefront of protecting our environment and unique culture while promoting sustainable economies. We’re calling for a federal corruption investigation of state mining regulators, tracking new mining developments, educating the public on the hazards of sulfide mining — and hosting free hikes, picnics, concerts and more to celebrate the wonderful wild U.P.!

Update: Our Winter 2014 Internship Application is now closed. Stay tuned for announcements on our Summer and Fall 2014 Intern Corps!

Save the Wild U.P. releases local candidate questionnaire results — showing agreement to protect environment and promote sustainable economy

When we saw that less than 1,900 voters participated in the Marquette City Commission Primary in August, we decided to take on a new project to increase civic engagement in Marquette.

In mid-September we launched a four-page candidate questionnaire for city commission candidates seeking answers to questions we’ve heard in the community — ranging from truck traffic to pedestrian access, from mining to power plants, and more.

“Protecting our environment and communities necessitates civic engagement. We hope results of this questionnaire help voters choose the candidate who best reflects their values,” says SWUP President Margaret Comfort.

We received diverse answers to our questions, but it was heartening to see that every candidate that responded agreed on these critical points —

  • Every respondent supports job growth in industries that will decrease our dependence on extractive mining.
  • Every respondent supports projects that will increase local employment opportunities that promote economic sustainability.
  • Every respondent believes that new mining developments near waterways threaten fish populations and recreational fishing.
  • Every respondent supports holding companies financially accountable for their environmental degradation.

“It is significant to see the overwhelming interest amongst candidates for city commission to decrease our dependence on extractive industries. All of the data shows that sulfide mining is a risky and hazardous business that threatens to leak sulfuric acid into our beloved Lake Superior. It’s critical that science prevail against well-funded corporate public relations campaigns,” said Kathleen Heideman, SWUP vice president.

“Candidates at all levels across the U.P. should know that their positions on mining will define their constituency. Many U.P. voters put economic stability and conservation at the top of their list. Supporting mining-as-usual will not win these votes, and will cost them dearly,” said local attorney and SWUP advisory board member Michelle Halley.

We made every effort in this questionnaire to capture the notes and additions from candidates, added here as footnotes.

Check out the full responses to the candidate questionnaire — and we hope that no matter your political stripe you’ll head out to the polls on Tuesday, November 5th!

 

Speaking Truth to Power: Rio Tinto’s Annual Meeting

LONDON NEWS UPDATE: Alexandra Thebert, attending Rio Tinto’s Annual Shareholders Meeting as a dissident shareholder, voiced the community’s concerns regarding Eagle Mine. She reminded Rio Tinto’s shareholders of the mine’s fraudulent permitting, transportation problems, the removal of air filtration at the mine portal, uranium, and the continually growing opposition to Eagle Mine and growing support for protecting our community’s health and environment.

AUDIO: Listen to this MP3 audio recording of Alexandra Thebert speaking truth to power earlier today — yes, that’s heckling (!) you’ll hear while she speaks — followed by a rebuttal from Rio Tinto’s CEO Sam Walsh.

NEWS CLIPPING: A detailed account of Thebert’s journey to London was featured on the front page of The Mining Journal (4-15-2013):

Article from The Mining Journal 4-15-2013

Stories of Resistance: London Mining Network

Check out this video footage of SWUP’s executive director, Alexandra Thebert, participating in a London Mining Network event held at the offices of Amnesty International!

UK journalist John Vidal of the Guardian moderated a passionate, informative panel discussion, in which Alexandra joined representatives from Arizona, Columbia, Mongolia, South Africa, and West Papua to highlight the appalling labor and environmental records of global mining companies Rio Tinto and Anglo American.

Please help spread the word about this important work by viewing and sharing the video today.

To hear Alexandra’s testimony, start video at 45:18

Does Rio Tinto know what you care about?

We want to hear from you — What would you say to Rio Tinto shareholders in London? Share your concerns in the “comments” section below and we’ll share your thoughts on our website, Facebook, and at shareholders meeting and protests in London.

Save the Wild U.P.’s executive director, Alexandra, will be heading to London to voice community opposition to Eagle Mine at Rio Tinto’s annual shareholders meeting. She will be the 10th person from the Upper Peninsula attending this meeting to highlight the hazards and risks of Eagle Mine to our community and show the shareholders that we won’t “Keep Calm and Carry On” in the face of sulfide mining.

Alexandra will join activists from around the world, including Colombia, Mongolia, and South Africa, to protest and highlight Rio Tinto’s wretched environmental and labor record. You can follow her trip on Twitter @SavetheWildUP, and on Facebook.

This is made possible by a special fund created by activists specifically for this trip and we are grateful for their support.

Marquette County board frustrated by mine tax plan

August 21, 2012

By JOHN PEPIN – Journal Staff Writer (jpepin@miningjournal.net) , The Mining Journal
MARQUETTE – Members of the Marquette County Board were angered and frustrated last week after state officials failed to match their revenue expectations for a proposed state severance tax on non-ferrous mining operations, including the Kennecott-Rio Tinto Eagle Mine. Continue reading

Company is liable

August 20, 2012
The Mining Journal

To the Journal editor:

The decision on Rio Tinto’s haul route is down to the wire and residents of Marquette County are stuck with a list of dismal options that include creating Marquette County Road 595 through a wilderness area, sending massive ore trucks down County Road 550 and through Marquette, and establishing a haul route on County Road 510 that would endanger residents and wildlife. Continue reading

County board frustrated by mine tax plan

August 21, 2012
By JOHN PEPIN – Journal Staff Writer (jpepin@miningjournal.net) , The Mining Journal

MARQUETTE – Members of the Marquette County Board were angered and frustrated last week after state officials failed to match their revenue expectations for a proposed state severance tax on non-ferrous mining operations, including the Kennecott-Rio Tinto Eagle Mine. Continue reading