'The Treasure House of the Nation'

The Enterprise F1 April 20, 2015 Mining INSIDE 'The treasure house of the nation'

True to Abe Lincoln's vision, Utah owes a great

No more pizza parties deal of its wealth Bill Sims Jr. has a different take on to its variety of the common practice of rewarding employees for clean safety records. producing mines He says that incentives like parties for no reported accidents causes It was the spring of 1862 — just workers to engage in injury-hiding over a year into his presidency and near- nine out of 10 times. ly 35 years before Utah would join the page F5 Union — when Pres. Abraham Lincoln made a bold state- Mining Lists ment about a land he had never seen. “Utah Utah Mineral Mines will yet become the page F10 treasure house of the Utah Coal Mines nation.” Now, more page F14 than a century and a MARK half later, Lincoln’s COMPTON vision has become a proven reality. Since the earliest days of the territory, mining has been a vital component Issue Sponsor: of the economy of Utah. Utah is blessed with a rich mineral endowment. Mineral deposits are broadly distributed across Utah, and there are mining districts in 24 of the state’s 29 counties. Only about one-tenth of 1 percent of the state’s 54,393,600 acres has been touched by mining activities, yet Utah’s mines have produced an impressive variety of minerals. There are at least 75 minerals that have economic value found in Utah and several have helped make the state a major mineral producer on the national and world scale. Copper, coal, gold, silver, uranium, iron, lead, zinc, molybdenum, phosphate, salt, potash, beryllium and Gilsonite head the list. With economic viability these resources will add to the strength and wealth of the state for many years to come. As early as 1847, pioneer settlers began harvesting salt from the Great

see HISTORY page F16 F2 · April 20, 2015 · FOCUS: Mining · The Enterprise - Utah's Business Journal

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© 2015 Wells Fargo Bank. N.A. Financing mining equipment – to buy or to lease? Evaluate the equipment your orga- ability to use the equipment’s revenue- ever, some types of long-lived assets Steve Pratt nization currently uses. Take time to generating capacity over time to help may be financed at 100 percent of the Wells Fargo Bank consider where updating, supplement- pay for it. Rather than tying up cash in purchase price. Leases are structured to provide periodic payments based on If you’re considering an equip- ing or replacing your fleet of equip- a large purchase, loans and leases may an agreed-upon or estimated equipment ment acquisition for your mining busi- ment could benefit your business. help you preserve liquidity for other value at the beginning and end of a ness — or any business, for that mat- Also, determine if there are additional business needs. lease term. ter — it makes sense to compare the items of new or used equipment that When it’s time to acquire equip- 2. Risk of obsolescence. If you respective benefits of buying or leasing will help your business operate more ment, determine whether buying or purchase equipment you bear the risk to determine which option is right profitably or expand its capabilities. leasing is going to serve your long- that it could decrease in value as a for your company. Before you buy or New mining equipment is often more term interests most effectively. Here result of technological advances or lease, give careful consideration to efficient and may cost less in near term are just three considerations: changes in the needs of your busi- choosing equipment that will fit your repairs and maintenance. Used equip- 1. Down payment. Depending on ness. If you lease the equipment, the project pipeline, foster productivity and ment may require a lower initial invest- the type of equipment, you may need ment. Whether the equipment is new to provide a cash down payment as position your business for long-term see FINANCInG pg. F14 growth. or used, a loan or lease provides the part of a loan structure. Recently, how-

© 2015 Wells Fargo Bank. N.A. F4 · April 20, 2015 · FOCUS: Mining · The Enterprise - Utah's Business Journal Forest Service rethinking La Sal uranium mining project The Manti-La Sal National Forest These groups have claimed that as to human health and the environment public comments, so that the plan of is in the process of assessing the part of the large-scale expansion, 3,800 posed by uranium mining be very care- operations will continue to be fully planned expansion of La Sal Mines new exploration holes will be drilled fully reviewed. The regional office protective of public health, safety and Complex, owned by Energy Fuels and an estimated 50 springs would correctly determined that these mines the environment.” Resources, following formal objections be dewatered, in addition to creating cannot be approved without a much Like thousands of uranium mines and claims last month of environmental surface disturbance of more than 200 more comprehensive review, includ- across the Four Corners region, the La violations from Uranium Watch and acres. They claimed that the mining ing the addition of required protective Sal Mines Complex has been operat- other conservation groups. will pose risks to wildlife and people, measures to safeguard the public.” ing intermittently since the 1970s The La Sal Mines is a complex of as it is expected to threaten radio- Uranium ore gathered from the La — opening and closing in response four old uranium mines located near logical and heavy metal pollution of Sal Complex mines will be transported to uranium’s boom and bust cycle. the town of La Sal. groundwater, soil and air. to the White Mesa Mill in San Juan Energy Fuels Resources, the owner of Uranium Watch, along with four Uranium Watch program direc- County. the mines and the White Mesa Mill, other conservation groups, cited viola- tor Sarah Fields said, “The continued In a statement, Energy Fuels suspended operation of the mine in tions of the National Environmental operation of the La Sal Mines Complex Resources said, “The company is con- late 2012 with plans to resume mining Policy Act, Endangered Species Act will cause increasing emissions of and other laws and regulations and radon gas, a radioactive hazardous air tinuing to work with the U.S. Forest when the market price of uranium ore objected to the Forest Service’s draft pollutant, into the community. The Service as they evaluate minor amend- rises. approval of the plan. USFS cannot claim that radon emis- ments to the plan of operations for the The La Sal Mines Complex is In a press release, the environmen- sions, only a quarter-mile from the La La Sal Mines Complex. Contrary to made up of the Beaver Shaft on pri- tal groups alleged that the expansion Sal Elementary School, are safe.” the press release issued by the activ- vate land and the Pandora, La Sal and had been halted. However, this was Western Mining Action Project ist groups, the US Forest Service has Snowball mines and Beaver Shaft later denied in a statement by Energy attorney Roger Flynn said: “Federal not ‘halted’ our plans for the La Sal waste-rock pile on Bureau of Land Fuels Resources. law requires that significant threats Complex, but is merely addressing all Management land.

At the Center of Utah Industry Since 1915

The mining industry is the foundation of our economy, and for the past 100 Years the Utah Mining Association (UMA) has been the voice of the mining industry in Utah. We advocate for the mineral resource and related industries, represent and inform our members in the legislative and regulatory arenas, and educate elected officials, regulators and the public on the importance of a strong Utah mining industry. Lorem Ipsum Dolor Join us in celebrating our centennial in 2015! th o 100 Annual UMA Convention - “Utah Mining: The Next 100 Years” - August 19-21

UMA proudly represents every facet of the mining industry, including: . Companies that explore for, mine, process, smelt and refine Utah’s metals and minerals; . The many companies that provide equipment, supplies, engineering, legal and technical services, banking, power generation and other forms of support to Utah’s mining industry; and . Individuals interested in supporting and promoting the Utah mining industry.

If It Can’t Be Grown, It Must Be Mined! Utah’s mining industry provides the materials needed for daily life in our modern world. We provide high paying jobs that support Utah families. We assist in satisfying our energy needs at home and beyond. And we mine in a way that keeps our employees safe and our operations environmentally sustainable. As the beginning of the supply chain for everything we use and everything we do, everything really does begin with mining.

Utah Mining Association136 S. Main St., Suite 408Salt Lake City, Utah 84101 801-364-1874Email: [email protected] www.utahmining.org

The Enterprise - Utah's Business Journal · FOCUS: Mining · April 20, 2015 · F5

Author: Incentives could lead to employees hiding accidents

lence. We achieve zero injuries only by be delivered within 10 seconds to be Sims decried companies who use Brice Wallace pursuing zero at-risk behaviors,” Sims effective. negative reinforcement, in the form of The Enterprise said. “What does that mean for us in punishment, to try to change behavior. Instead of parties potentially business? Here’s what it means: When “You cannot positively reinforce Bill Sims Jr. has a message for rewarding injury-hiding, a company you hand your worker his $50 gift card people if they hate your guts. True. companies rewarding employees and might instead ask employees and their and his T-shirt and he says, ‘Thank you You can’t. … You can’t punish or dis- employee groups with pizza parties for family members about unsafe condi- very much. What’s this for?’ if he has cipline a team into winning the Super having a clean safety record: Stop it. tions or behaviors at the workplace and to ask you why he’s getting it, you’ve Bowl,” he said. The president of the Bill Sims Co. what can be done to fix them, provide just wasted your money, because he What’s more, if negative rein- and author of a book about employee incentives for that input, and then put doesn’t connect your ‘ice cream’ — engagement, motivation and recogni- forcement actually worked, “the death fixes in place. the T-shirt and the gift card — with penalty would’ve stopped murder years tion suggests that parties and other Sims said any company can his behavior because you didn’t do it incentives for spotless safety records ago,” he said. change its culture in one hour by within 10 seconds.” Companies generally have four can lead to employees hiding injuries changing the behavior of its leader- Financial incentives can change rather than preventing them. types of workers when it comes to ship team. After that, the human behavior, but posi- safety, he said. Incompetent ones “I’m going to blow your mind change will permeate tive reinforcement is much today, folks: Zero injuries is not your take an “I can’t do it” approach. through the company. more effective — a fact Noncompliant ones reflect an attitude goal,” Sims said at the recent fourth He suggested positive proven by brain wave annual Safety Conference, sponsored of “I will not do it.” Compliant ones reinforcement. His own scans, Sims said. will “do it if I have to.” Committed by the Utah Mining Association and example came from his “When your spouse, ones will do it “because I want to” the Utah Manufacturers Association. youth, when his mother when your kid, when your and even look out for their coworkers, “It’s the start of your journey, not the said he needed to eat boss tells you you did whether the “safety cop” is there or end.” his green beans before something right, you light not. Employees will hide injuries for being allowed to have ice up like a Christmas tree. Unfortunately, a Gallup survey a variety of reasons, he said, ranging cream. And let me just ask you all indicates that only 5 percent of the from not wanting to blow the incentive “By god, it worked, one little question: Does nation’s workers are at the commit- party for their colleagues to not want- folks. I changed my behavior. What it cost any of you in this room any ing to be fired for unsafe activity. did Mom do? What you’ve got to do money to tell your kids, your spouse ment stage. “Why? We leave people “It ain’t rocket science,” Sims said. to change the behavior of your 2-year- or your employees or your boss they alone and say nothing when they’re “Poorly designed, lagging-indicator olds, your teenagers, your employees did a good job? Does that cost you any doing it right and then zap them when incentive systems cause injury-hiding or your spouse. She pinpointed the money? No. Why don’t we do it more they make mistakes,” Sims said, dem- nine out of 10 times.” critical behavior and then when my often?” onstrating the need for more positive The proper goal is not zero inju- behavior change occurred, I got a That kind of positive reinforce- reinforcement as a means of gaining a ries but instead zero at-risk behaviors, smile, a hug and big bowl of ice cream ment yields discretionary effort — culture of safety. which he acknowledged is a higher and — hello! — I got all those rein- “they do it when you’re there and they “It’s positive reinforcement, coach- standard. forcers immediately,” he said. do it when you’re not,” he said. That’s ing and leadership,” he said. “It’s the “Zero at-risk behavior is perfec- That immediacy is key, he said, a far cry from workers who wear safe- only way to get people doing it in the tion. … Are you going to get perfec- noting that scientific studies show ty glasses or act in a safe manner only moment of choice when you’re not tion? Realistically, no. But if you that positive reinforcement needs to when the “safety police” are around. there to watch them.” pursue perfection, you achieve excel- F6 · April 20, 2015 · FOCUS: Mining · The Enterprise - Utah's Business Journal

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SALT LAKE / OGDEN / OREM / VERNAL / LAS VEGAS / ELKO / ROCK SPRINGS / GILLETTE The Enterprise - Utah's Business Journal · FOCUS: Mining · April 20, 2015 · F7 Rio Tinto's CRM seeks to halt activities that lead to fatalities

Rio Tinto, the parent company for Utah Mining Association and Utah events. Each has different levels of stantly evaluates their effectiveness. Kennecott Utah Copper, is instituting a Manufacturers Association. frequency and severity. Concentrating Walker called it “mindful” leadership. new process designed to protect work- “You know, we always tell workers, on injury prevention can distract com- “A mindful leader is leader preoccu- ers from dangerous activity that could ‘You’re empowered to stop work,’ but panies from “the things that we need to pied with the possibility of something lead to fatalities. we see time and time again instances be doing to prevent fatalities as well as going wrong. There’s a sense of chron- Critical risk management, or CRM, where they don’t do it because they catastrophic events,” he said. ic unease and they understand that was championed by Rio Tinto’s copper feel other pressures.” To that end, CRM “involves relent- bad news does not travel upwards,” he products group and is rolling out, on a less verifica- said, adding that those leaders interact pilot basis, to all of the company prod- tion to focus with workers to “learn what’s going uct groups. on the critical on” at their level. At its heart, CRM protects workers few controls An earlier version of what would from risks by putting identified con- that actually become CRM “missed the worker” trols in place before they even begin prevent fatali- because the activities were at a high their work, according to Greg Walker, ties,” he said. company level, Walker said. “It didn’t a principal advisor for safety risk “We’re still take it to the workplace, where the risk management at Rio Tinto. Managers, concerned really exists.” supervisors and workers all verify that about injuries At Rio Tinto, critical risks were controls are in place before proceeding. but if we’re distilled to 19, including working in “This is a process that really gives Describing CRM as a process that is trying to manage fatality risk, this is confined spaces, contact with electric- the worker the confidence to stop “revolutionary but beautiful in its sim- where our focus ought to be.” ity, exposure to hazardous substances, work,” Walker said during a breakout plicity,” Walker said companies need to CRM begins with leadership and a sessions of the recent fourth annual have a balanced approach in prevent- culture that understands the risks, puts see RIO TINTO pg. F13 Safety Conference, sponsored by the ing injuries, fatalities and catastrophic critical controls in place and then con-

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F8 · April 20, 2015 · FOCUS: Mining · The Enterprise - Utah's Business Journal

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Equipment maintenace: A lesson in 'an ounce of prevention'

What if you spent a couple of hauling material out of the mine,” The predictive diagnostic oil pan. That led to a big drop in million dollars for a new piece of said Tyler Andersen, condition system in this case is called a the engine oil pressure, which then equipment for your job site and monitoring supervisor for Wheeler Condition Monitoring Analyst, cause the oil filters to plug. If the then had to pay a quarter-million Machinery. “It would have been a which is attached to the truck. It truck had not been immediately dollars more because a small part serious setback for the company if sent an alert to the mine site super- shut down, there would have been had failed, causing a total engine this truck was taken out of produc- visor who immediately shut down a total engine failure resulting in failure? What if that sce- a repair costing more than nario could have been $257,000. Instead, the customer avoided with a predictive paid $1,239 to replace the fuel diagnostics system? injector. The savings was more This near-crisis situa- than $255,000. tion was recently averted The Conditioning for a mining company in Monitoring Analyst technol- Nevada. The engine oil ogy was sold with the truck pressure on a Caterpillar by Wheeler Machinery in Salt 793C haul truck was Lake City as part of the compa- dropping dramatically, ny’s effort to integrate and uti- which was causing a lize more technology to create drastic increase in engine oil filter restriction. But a “repairs before failure” situ- there was no way to ation for customers. “We want know that the problem to add value to the products was happening. we sell and service,” said Leon The 793C is a big Ernest, mine site supervisor truck. It is more than for Wheeler Machinery. “We 44 feet long and 25 believe that our custom- feet wide. It has a payload of 240 ers appreciate things like the tons. It is a workhorse and hav- tion by a catastrophic failure while the truck. A subsequent inspection Condition Monitoring Analyst, ing it out of service would have hauling ore. One of the most costly by mechanics found a failed fuel because it makes them productive been costly for the company. “This repairs is an unscheduled major injector, which was causing raw and profitable and helps them avoid truck runs seven days a week, failure on a haul truck.” fuel to be dumped into the engine costly situations.” F10 · April 20, 2015 · FOCUS: Mining · The Enterprise - Utah's Business Journal

Mineral Mines in Utah Listed Alphabetically

Owner Primary Product Year Mining Rank Mine Name Mine Location Mining Method ------Mined Began Owner Location

Southwest of American Gilsonite Co. 1 American Gilsonite Gilsonite Vernal, Uintah Sub-surface 1904 County Bonanza

Ash Grove Cement Co. Portland cement Leamington, 2 Ash Grove Surface 1980 products Millard County Overland Park, Kansas

Kennecott Utah Copper Bingham Canyon Mine Southwest Salt Corp. 3 Copper Open pit 1906 (Kennecott Mine) Lake County Rio Tinto Group London, England

Limestone and Southwest of Graymont Corp. 4 Cricket Mountain associated Delta, Millard Surface N/A products County Richmond, B.C., Canada

Holcim Inc. Limestone, cement East of Morgan, 5 Devils Slide Surface 1904 products Morgan County Bedford, Maine

Sulfate of potash, Compass Minerals Great Salt Lake, 6 Great Salt Lake Minerals magnesium Solar evaporation Approx. 1972 Tooele County chloride Overland Park, Kansas

CML Metals West of Cedar 7 Iron Mountain Project Iron Open pit Late 1800s City, Iron County St. George

Southeast of Lisbon Valley Mining Co. 8 Lisbon Valley Mine Copper Moab, Grand Open pit 1999 County Moab

Intrepid Potash Inc. Great Salt Lake, 9 Moab Facility Potash Solar evaporation 1965 Tooele County Denver, Colorado

Great Salt Lake Morton Salt 10 Morton Salt Salt near Grantsville, Solar evaporation N/A Tooele County Grantsville

Magnesium, U.S. Magnesium LLC Rowley Operation Rowley, 11 calcium chloride, Solar evaporation 1972 U.S. Magnesium Tooele County iron chlorides Salt Lake City

Northwest of J.R. Simplot Co. Phospates and 12 Simplot Vernal Mine Vernal, Uintah Surface 1960 derivatives County Boise, Idaho

Great Salt Lake Cargill Salt Inc. 13 Timpie Facility Salt near Grantsville, Solar evaporation N/A Tooele County Minneapolis, Minn.

Northwest of Materion Corp. 14 Topaz Mountain Beryllium Delta, Juab Surface 1968 County Mayfield Heights, Ohio

Intrepid Potash Inc. Great Salt Lake, 15 Wendover Facility Potash Solar evaporation Approx. 1938 Tooele County Denver, Colorado

N/A = Information not available Please note that some firms chose not to respond, or failed to respond in time to our inquiries. All rights reserved. Copyright 2015 by Enterprise Newspaper Group The Enterprise strives for accuracy in its list publications. If you see errors or omissions in this list, please contact us at [email protected]. The Enterprise - Utah's Business Journal · FOCUS: Mining · April 20, 2015 · F11 F12 · April 20, 2015 · FOCUS: Mining · The Enterprise - Utah's Business Journal

Will it become a cell phone or a computer?

The Bingham Canyon Mine is one of the top producing copper mines in the world. As a result, lights turn on, computers power up, music is played, cell phones get charged, cars run and apps can be downloaded. The list goes on and on. The truth is, copper makes modern life possible.

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Ad_FINAL_10x13-5.indd 1 4/15/15 12:23 PM The Enterprise - Utah's Business Journal · FOCUS: Mining · April 20, 2015 · F13 RIO TINTO from page F7 falls from height and underground fire. After analyzing critical risks, the controls were selected, and criteria addressed the design, implementa- tion and training associated with each control. At the manager, supervisor and worker levels, controls are checked to address each of the risks before work begins, all in a seamless manner. All front-line workers and contractors are empowered to stop work if critical controls are missing, Walker said. “We do believe that critical risk management is a game-changer. … There’s an energy and excitement about it that’s hard to explain. It gives us laser focus on critical risks and critical controls. It really helps build this type of operational discipline, and the workers are every bit a part of this process as the managers and supervisors,” he said. “It gives us a systematic means of checking all the controls and not going off of memory. I don’t know how we'd feel if our [airline] pilots did their checks just going off a memory.” F14 · April 20, 2015 · FOCUS: Mining · The Enterprise - Utah's Business Journal

Coal Mines in Utah Listed by 2014 Coal Production in Tons

Owner Year Mining 2014 Coal Production Rank Mine Name Mine Location Mining Method Began (tons) Owner Location

Bowie Resource Partners LLC Northeast of Salina, 1 Sufco Mine Underground, longwall 1941 6,539,000 Sevier County Louisville, Kentucky

Southwest of Bowie Resource Partners LLC 2 Skyline Mine Scofield, Underground, longwall 1981 4,170,000 Carbon County Louisville, Kentucky

UtahAmerican Energy Inc., subsidiary of East Carbon, Murray Energy Group 3 West Ridge Mine Underground, longwall 1982 2,514,000 Carbon County St. Clairsville, Ohio

Energy West Mining Co., Northwest of subsidiary of PacifiCorp 4 Deer Creek Mine Huntington, Carbon Underground, longwall N/A 2,089,000 County Portland, Oregon

Castle Valley Mining West of Huntington, 5 Bear Canyon Mine Underground, longwall N/A 1,056,000 Emery County Huntington

Northeast of Underground, longwall Bowie Resource Partners LLC 6 Dugout Canyon Mine Price, Carbon and 1998 676,000 County room & pillar Louisville, Kentucky

Alton Coal Development LLC 7 Coal Hollow Mine Alton Surface strip 2011 563,000 Cedar City

UtahAmerican Energy Inc., subsidiary of South of Price, Murray Energy Group 8 Lila Canyon Mine Underground, longwall 2010 335,000 Carbon County St. Clairsville, Ohio

*Coal production figures courtesy of the Division of Oil, Gas and Mining, Utah Department of Natural Resources Please note that some firms chose not to respond, or failed to respond in time to our inquiries. N/A = Information not available. All rights reserved. Copyright 2015 by Enterprise Newspaper Group The Enterprise strives for accuracy in its list publications. If you see errors or omissions in this list, please contact us at [email protected].

FINANCING or loan structure, you should consult losses, etc.) may also benefit by leas- Once you’ve determined your with an accountant and tax advisor to ing, where depreciation deductions can equipment needs, talk with a banker from page F3 be certain of the applicability for your be taken by the lessor, which can be who can connect you with a mining company. Flexible payment terms and passed on to the lessee in the form of equipment finance specialist. Together, transaction may be structured so that interim financing may also be avail- lower rental payments. Leasing may they can help you determine which of the risks of obsolescence, devaluation able in lease and loan transactions. also assist with debt covenant compli- your financing options — whether it’s and changing markets are borne by the A key advantage in leasing equip- ance. a loan or one of many different types lessor. Depending on the type of lease ment is that the lessee decides what Loans also offer distinct advan- of leases — may fit your needs. A min- structure, there may be no obligation to do with the equipment at the end of tages to companies that need capital ing equipment finance specialist may to purchase the asset at the end of the the lease term. End-of-lease options equipment. For instance, loan pay- also be able to assist with knowledge term of a lease. for the lessee may include purchasing ments can be based on fixed or float- about equipment vendors or help in 3. Expense deductions. With a the equipment, renewing the lease, or ing rates, fixed principal and interest, the review of competitive bids. Before loan and certain lease structures, the returning the equipment. The option or fixed principal plus interest. This making a decision about your equip- borrower is considered the owner of to return the equipment can benefit a allows a company to lock in rates and ment investment, be sure to consult the equipment for tax purposes and business because disposal of equip- terms that fit its long-term capital or with your accountant and/or tax advi- often may claim depreciation expense ment can be uncertain, costly and time financing strategy. Some companies sor. and interest expense that could reduce consuming. It also allows a company benefit from owning assets that are a company’s taxable income. With to focus on its core business versus central to their business when the Steve Pratt is the Utah territory man- an operating or true lease, the lessee managing non-core assets. Purchase equipment has a useful life beyond the ager, Wells Fargo Equipment Finance, typically claims no asset or liability options can be structured in a wide Construction Group. repayment terms of the loan. In such on its balance sheet with the lease variety of ways, including fixed dollar Nothing contained in this article should be payments treated as an expense deduc- amounts or fair market value. cases, it may make more sense to own the equipment and retain the benefit of considered tax or accounting advice and you tion on the lessee’s income statement. Companies that do not have tax should consult with your own tax, accounting As part of the evaluation of any lease liabilities (because of net operating depreciation expenses. and financial advisors. The Enterprise - Utah's Business Journal · FOCUS: Mining · April 20, 2015 · F15

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Contractor’s License Utah: 380756-5501 Idaho: RCE-13507 Nevada: 0029753 California: 967731 F16 · April 20, 2015 · FOCUS: Mining · The Enterprise - Utah's Business Journal to be the foundation of Congress (which later became known HISTORY Utah’s economy. The as the Utah Mining Association) took from page F1 industry employs thou- place on a Monday evening on April sands and pays among 5, 1915, at the Newhouse Hotel in the highest average Salt Lake City. At the meeting, R.C. Salt Lake. Early on, stone, clay, sand, wages in the state. Utah gravel and cement were used to build Gemmel, general manager of the Utah ranks seventh in the homes, businesses, various buildings Copper Co., was elected governor of nation in non-fuel min- and churches. the Utah Chapter. As recounted in an eral production, produc- In 1863, soldiers stationed at article in The Salt Lake Mining Review ing more than $4 billion Fort Douglas under the command of in 1915, in his acceptance speech in gross value annually. Col. Patrick Connor, were sent into Gemmel “emphasized his belief that And more than half of the Oquirrh Mountains to explore the organization would have great all Utah exports are for minerals. Their discoveries led to weight and an influence for good in the minerals. the development of mines producing local mining field, and urged earnest gold, silver, copper, lead and zinc and Mining also contrib- utes to Utah’s economic cooperation by all who were interested earned Connor the title of “Father of in mining affairs and kindred indus- Utah Mining.” Over the next 30 years, development in other tries, pledging himself to work for the immigrants from northern and western ways. Approximately best interests of the new chapter.” Europe poured into the mining camps 80 percent of the state’s in and around Bingham Canyon to electricity is coal-gener- Thanks to the “earnest coopera- seek their fortunes. ated, resulting in energy tion” and strong support of UMA’s The abundant low-grade copper costs 30 percent lower members and friends, 100 years later ore was largely ignored in those early than the national aver- the Utah Mining Association does days and it wasn’t until the turn of the age. Lower energy costs indeed have “great weight” and con- century when Daniel C. Jackling, a Colonel Patrick E. Connor helps Utah businesses tinues to be “an influence for good” in young metallurgical engineer, devel- "The Father of Utah Mining" and families and make the mining industry. oped a mass production method of Utah more competitive in As we look toward the next 100 profitably mining and processing the attracting quality manu- years and beyond, the Utah mining ore that commercial copper mining producers, with such minerals as oil, facturing and high technology jobs. industry strives to continue to enhance began. To mine from the surface on a coal, clays, shale, sand, gravel and Mining truly is a foundational our role as the foundation of Utah’s large, industrial scale required labor stone. The Park City mines gener- industry in Utah and throughout the economy and to improve the quality and thousands of immigrants from ated fabulous wealth for many who world. As the industry trade asso- of life and standard of living for all southern and eastern Europe, Asia and used their fortunes to help develop the ciation, the Utah Mining Association Utahns. Mexico came to the area. growing and thriving Salt Lake City (UMA) has been the voice of the min- In about 1869, the Park City area. ing industry since 1915, celebrating Mark Compton has been the president of District was established and soon The rest, as they say, is history. its centennial throughout 2015. The the Utah Mining Association since July, became one of the most outstand- Exploration and discovery continue to association's 100th annual convention 2012, prior to which he was government ing gold, silver, copper, lead and zinc this day. is scheduled for Aug. 19-21 in Provo. affairs manager for the Northwest Mining Association (now the American Exploration producers in Utah. Mines in Summit Today’s safe and environmentally The first gathering of the Utah County also were major nonmetallic & Mining Association) in Spokane, responsible mining industry continues Chapter of the American Mining Washington. The Enterprise - Utah's Business Journal · FOCUS: Mining · April 20, 2015 · F17 F18 · April 20, 2015 · FOCUS: Mining · The Enterprise - Utah's Business Journal

deposits is critical, especially in a state needs. als — and lots of them. Expanding Courtesy of with 70 percent public land. Land use Like food and water, energy is renewable energy production will Utah Mining Association decisions have denied access to much essential. It’s the key to a better, longer require significant amounts of copper, of our important mineral resources. life for half the world’s population and steel, molybdenum, zinc, gold, silver, For more than 160 years, min- If we are able to access the depos- it can bring improvements in educa- cobalt, lead, rare earth minerals and ing has played an integral role in the its, the ability to permit projects in tion, health and longevity. Yet, electric more. Any way you look at it, mining development and economic growth a timely manner becomes a critical heat, lights, refrigerated food and med- will continue to be a critical part of our of the State of Utah. Today’s safe and component to attracting mining invest- icine — crucial for basic needs that energy future. environmentally responsible mining ment in the United States and in Utah. some people take for granted — are Here in Utah, energy plays a key industry continues to be the foundation Considering the foundational impor- still unavailable in many parts of the role in our state’s economic develop- of our economy. Mining creates new tance of the mining industry, these are developing world. ment. Utah is well known nationally wealth and provides the high-paying, issues that deserve our attention. To eliminate extreme poverty will as a business friendly state, with a low family-wage level jobs with good ben- Our modern society runs on require affordable access to energy. burden of regulation and low cost of efits that both Utah and our country energy. Think for a minute about the And to satisfy the world’s energy needs doing business. Importantly, we must need. In fact, mining jobs in Utah pay relationship between mining and the will require a true “all-of-the-above” keep in mind that one of Utah’s sig- wages nearly twice the statewide aver- energy we demand and consume. From approach to energy generation, includ- nificant advantages to attracting busi- age. the coal mined in Utah that accounts ing coal, gas, oil shale/oil sands, nucle- nesses, including manufacturing and To most people, mining is some- for approximately 80 percent of our ar, hydropower and renewables. Using high technology jobs, is our low cost thing they never experience firsthand; state’s electricity generation, to the today’s advanced technologies to of electricity. Simply put, cheap power yet they benefit from the products of uranium used to power our nation’s improve emissions, all of these forms lowers business costs and makes Utah mining everyday of their lives. Without nuclear energy reactors, to the copper, of energy development will play a sig- more competitive. the hundreds of thousands of material molybdenum, iron ore, lead, zinc and nificant role in ending global energy Therefore, it is more important benefits that come from the mining other important metals and minerals poverty. than ever to responsibly utilize our industry, your world would be com- that make renewable energy possible, There has been much discussion in own mineral and energy resources. In pletely different from the way you now mining is critical to energizing our the U.S. about increasing production of fact, our economic and energy security live. modern society. renewable energy. A diversified energy depends on it. The Utah mining indus- Mining helps satisfy our energy In fact, all aspects of our economy portfolio can be a good thing, but we try stands ready to provide the jobs and needs, as well as everyday items such — electricity, communications, trans- must keep in mind the continuing materials needed to sustain economic as televisions, cell phones, computers, portation systems, computer networks, importance of coal and hardrock metals growth and improve the quality of life refrigerators, vehicles and even your space and medical technology, national and minerals to our energy future. Coal for all. toothpaste. And no infrastructure proj- security — require minerals and coal. has been an abundant source of reliable You may hear catchphrases like ects, including bridges, buildings or Fortunately, the U.S. possesses exten- and affordable energy for the U.S. and “It all starts with mining” or “If it transportation, in fact, no society can sive domestic reserves of many impor- the world for many years. In fact, the isn’t grown, it must be mined” to help move forward without mining. If you tant mineral resources, if we are able to U.S. is often referred to as the “Saudi make the connection between min- think about all the things you use every access them. Arabia of coal,” as we have the largest ing and everyone’s daily lifestyle and day, you will discover the almost end- We take for granted in this country supply of coal reserves in the world. standard of living, but it really is true. less uses of metals, plastics and paper, that the lights will go on when we flip Forecasts indicate coal will continue to As the beginning of the supply chain all of which depend upon mining for the switch and our heating and cooling be a key component of our energy mix for everything we use and everything their existence. systems will keep us comfortable. But well into the future. we do as a society, everything really Mines can only be located where the fact is as many as half the world’s As we diversify our energy port- does begin with mining. What could be economically viable mineral deposits 7 billion people live without proper folio, a plain and simple fact is that more fundamental to our economy and exist, so the ability to access mineral access to energy for basic human renewable technologies require miner- our lives than that? The Enterprise - Utah's Business Journal · FOCUS: Mining · April 20, 2015 · F19

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