Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Image by Brett Weinstein | Flickr Commons.
US Democratic presidential candidate and former Secretary of State, Hillary Clinton, doesn’t believe in coal mining, but she is willing to spend $30 billion on a plan aimed at revitalizing communities dependent on production of the fossil fuel.
The program, revealed Thursday, is part of Clinton’s broader agenda on clean energy. So no, it does not support the mining of the resource, but it does intend to help coal miners, a unionized group, as they will be the most affected by any closings of coal-fired power plants, given the new Environmental Protection Agency’s (EPA) regulations put in place by the Obama administration.
“Today we are in the midst of a global energy transition,” the Plan For Revitalizing Coal Communities says, citing the rise of natural gas and renewable energy. “We can’t ignore the impact this transition is already having on mining communities, or the threat it poses to the healthcare and retirement security of coalfield workers and their families.”
Clinton said she would use federal money to generate economic development through building infrastructure, expanding broadband access and giving tax breaks for new investment in communities hit by a decline in coal production, such as many towns in Appalachia, the Illinois Basin, and the Western coal areas.
“Building a 21st century clean energy economy in the United States will create new jobs and industries, deliver important health benefits, and reduce carbon pollution,” according to the campaign’s fact sheet.
The text also says that Clinton would fight coal companies that she says use bankruptcy proceedings to shirk health-care and pension commitments to retirees and overhaul the troubled black-lung benefit program so it properly awards benefits due.
Public enemy No.1
Republicans were quick to fire back, calling her “the public enemy No.1 for coal miners and their communities,” as she supports the EPA agenda aimed to reduce the role of coal-fired power, which is crippling their way of life.
“If Hillary Clinton were truly on the side of coal country, she would stand up to extreme anti-energy environmentalists that run the Democrat Party instead of embracing their agenda that is killing jobs and driving up costs,” Republican National Committee spokesman Michael Short said in a statement.
Three major coal miners filed for bankruptcy protection this year: Patriot Coal, Alpha Natural Resources and Walter Energy. And this week, Arch Coal said it was talking to creditors about restructuring its balance sheet.
Eight years ago, Clinton ran as a champion of coal, beating then-Illinois Sen. Barack Obama in the Ohio and Pennsylvania primaries.
The coal industry, particularly in the U.S., has struggled to keep pace with the natural gas boom and gradually affordable renewable energy sources.
Currently, coal accounts for one-third of the country’s power generation and domestic consumption has dropped by 25% in the past 10 years. What’s more worrisome, according to latest estimates renewable energy is on track to surpass coal as the largest source of electricity generation by 2030.
17 Comments
George Evans
this problem is common around the world….
I hope it happens effectively, but fear it will be destroyed by the usual dysfunctionality in Washington….or even shelved as too hard…
Billy Samuels
Coal is an energy of the past and hard working coal miners deserve this opportunity to retrain in industries of the present and future.
orangeandblueaussie
Disruption has come to the US coal miners. This will not be the same again. Despite the US government’s lack of legislative support, this is a change which was unpreventable. This should be a welcome package to Appalachian miners whose home towns have been decimated by population declines and a general lack of infrastructure. Their homes are in some of the most historic and picturesque parts of the USA so there should be no reason that people should not want to retire and holiday in their areas. What is required is a deliberate effort to reinvigorate and prepare for their next stage of economic growth. Hopefully Hillary’s package is enough to achieve that.
orangeandblueaussie
I should say that the amount of anger focussed on government actions by the local coal miners is disproportionate to that which the leaders of their primary employers (Alpha Natural Resources, Arch, Walter Energy, Peabody) should be receiving. Some of the corporate deals of the early part of this decade really sealed the fate of this industry. The industry has no one to blame but itself.
T.O.
Clinton won’t do crap and that money will simply vanish.
david c Wold
HRH Hillary ‘S “baiilout’ ? to buy votes ? First she was a “coal miners daughter’ now she is going to reinvent 4, 6 or maybe more states into “the new frontier” on who’s back ? Taxes from what state ? Maine , NH, Ct., ? Or maybe Florida or California ? If you are giving away 60 billions it needs to come from somewhere .
This Country is not a Foundation, Ms. Hillary.
Restless Boomers
Let us first destroy private enterprise in order that we can fund the rebuilding with taxpayer, borrowed and printed money. Coal miners can be retrained to become fast food workers, Wal-Mart checkers and stockers and Hillbilliy Heroin distributors. What’s not to love?
orangeandblueaussie
Would you prefer that coal miners sit at home on their arses waiting for uneconomic coal mines to become economic again?
She’s talking about construction jobs, tourism job and infrastructure that might bring industry.
Terry Headley
The coal mines we are talking about are not “uneconomic” when the marketplace alone is making the decisions. The reason they are having trouble is that the Obama Administration (with HRC’s consent and approval) is forcing the closure of hundreds of coal-fired power plants, which takes away market for the product. In addition, they are making it more and more difficult to extract coal through an on-going regulatory assault directed at mining itself.
Of course, if you have no basic conception of market economics you probably don’t understand the difference between market factors and regulatory pressures.
patentbs
Who does she re-assign next? California agricultural workers? The people who operate today’s power plants? The steel industry? Ship yard workers? Maybe everyone? At 55 years old no one wants a fries with that job.
Damn it get a positive approach some place. How about find a way to clean the stacks – using $30 billion?
Remember when Nuclear came in? Part of the reason was because we could not find a way to remove sulphur from the stacks. It is so easy today. A bit of overkill. I think this may be too.
Conodo Mose
An example of small thoughts from a small mind
klgmac
Progressive policies are killing high paying blue collar jobs everywhere. Not to mention the pensions that were promised to workers. Bankrupt coal miners’ pensions will be partially paid by the nearly insolvent PBGC.
http://www.benefitspro.com/2014/09/24/pbgc-to-cover-pensions-at-coal-company
laru
While running for election Obama talked of “clean coal” to keep the industry going. Politicians lie, there has been no promotion of “clean coal” since the pres took office. Hillary is at the same game.
Lastlight68
If people really hate coal why don’t they just stop using the electricity produced from it. Sit in the dark then I’ll see merit in your conviction. I wish company’s would stop producing it all at the same time. Then sit back and watch the fall out. Then tell them when they come begging , silence ! You got what you wished for! Mr Aussie would be the first in line to beg.
Jamie
Hillary just said she is going to put coal miners out of business.
Richard Voss
NO she didn’t check what she said you useful idiot.
Jamie
So when she said “I’m going to put coal mine out of business what she meant was I’m not? Is that like what she said about not sending or receiving classified emails?