News from Colorado Mining Association

www.coloradomining.org

Colorado Mining Association Newsletter

December

2011

In This Issue

114th National Western Mining Conference

Deserado Mine Sets New Safety Record

Thirteen New Sustaining Members Join CMA

CMA Contributes to Capitol Dome Restoration

Federal Roadless Rule Upheld - CMA Supports State Alternative

Colorado Supreme Court Sanctions Tax Increase

ANGLOGOLD CEO CUTIFANI, OTHER INDUSTRY LEADERS TO HIGHLIGHT CMA CONFERENCE

COLORADO - THE MILE HIGH MINING HUB MARCH 19-22, 2012

Hub - A place that is a center of activity or interest;

Synonymous with center, core, nucleus and heart

Mark Cutifani, AngloGold Ashanti CEO, one of the world's leading gold producers, will deliver the keynote address at the Colorado Mining Association's (CMA) 114th National Western Mining Conference & Exhibition, to be held March 19-22, 2012 at the Westin Hotel Denver. Cutifani's presentation will be the first of many by industry leaders from around Colorado, the U. S. and the world, including Fredrick Palmer, Senior Vice President, Peabody Energy, Gary Goldberg, Executive Vice President & Chief Operating Officer, Newmont Mining Corporation, and Dr. Bill Scoggins, President, Colorado School of Mines.

The preliminary program and registration is available on the CMA website at www.coloradomining.org or click here.

Since the Colorado Mining Association's founding in 1876 - the year that Colorado achieved statehood - a diverse and vibrant mining industry has grown throughout the state. Colorado is the nation's number one producer of molybdenum, the fourth leading producer of gold, the 11th ranking coal producer, and the only source of specialty minerals like pure sodium bicarbonate. Colorado's mining industry creates high paying jobs, such as those in coal mining that exceed $100,000 in annual wages and benefits. The conference will provide updates on the latest opportunities in Colorado's diverse mining sector.

Equally important, the conference will also feature Colorado's diverse infrastructure of Colorado based companies whose reach spans the entire globe, with Denver at its core. Colorado based companies have figured in some of the most important corporate, merger and acquisition activities in the entire industry, which the conference will showcase.

So mark your calendars for March 19-22, 2012 and make plans to stay in Denver, the center, the core, the nucleus and heart of worldwide mining, the Mile High Mining Hub.

DESERADO MINE SETS NEW SAFETY RECORD

OCTOBER CELEBRATION HONORS 167 MINERS

CMA President Stuart Sanderson delivers proclamation to Deserado Mine Manager Alan Hillard commending the mine's employees on working an entire year injury free.

On October 12, the Deserado Mine (an underground coal mining operation near Rangely, Colorado) achieved a historic safety milestone, completing 365 days without a lost time accident. During the one year period, an average of 167 miners worked with care over 300,000 hours in the underground mine producing over 2.5 million raw tons of coal without a single reported lost time accident. This is only the second time in the mine's twenty-nine year history that workers completed 365 days with no lost time injuries, the last during the years 2002-2003.

At a celebration held October 24, CMA President Stuart Sanderson read a proclamation commending Blue Mountain Energy Company, its management and employees for the successful creation of a culture of mine safety. And the company sweetened the pot with bonuses including $365 for working an entire year injury free.

According to Mine Manager, Al Hillard, "Our safety record begins with the support of top management, including the board of directors, and works its way through our whole team of miners. We have great people that not only look out for themselves, but for the other guy as well." Upon this new success the mine has adopted a new motto, "At Deserado, we do it safe!"

The Deserado Mine is owned and operated by Deseret Power, based in South Jordan, Utah.

NEW MEMBERS SWELL CMA RANKS

SUSTAINING MEMBERSHIP EXCEEDS 150 FOR FIRST TIME

Please join CMA in welcoming the following new sustaining members.

Click here to read complete descriptions of the companies' services on the CMA website.

AATA

John Aronson

President

300 Boardwalk Drive

Fort Collins, CO 80525

Tel: 720-583-2081

email: john.aronson@aata.com

AATA International, Inc. (AATA) is a professional environmental and social consultancy specializing in management and permitting for natural resource development projects worldwide.

APPLIED GEOMECHANICS

Jeff Keller

Sales & Marketing Manager

15579 E. Hinsdale Circle, Suite 100

Centennial, CO 80112

Tel: 303-883-1306

email: Jeff.keller@geomechanics.com

Applied Geomechanics is a leading supplier of monitoring systems and services for bridges, buildings, tunnels, dams, slopes, embankments, volcanoes, landslides, mines and construction projects around the world.

ARCADIS

Jerry Koblitz

Senior Vice President

630 Plaza Drive, Suite 100

Highlands Ranch, CO 80129

Tel: 720-344-3500

email: jerry.koblitz@arcadis-us.com

ARCADIS is an international company providing consultancy, design, engineering and management services in the fields of infrastructure, water, environment and buildings. We aim to enhance mobility, sustainability and quality of life by creating balance in the built and natural environment.

ARS COMPANIES

Scott Reynolds

5405 W. 56th Avenue

Arvada, CO 80002

Email: sreynolds@arscompanies.com

Headquartered in Denver, Colorado with a branch office in Arvada, Colorado ARS employs a work force of up to 200 employees. Formed in 1985 the ARS Companies is currently managed by President and General Manager Scott Reynolds. The ARS Companies is a privately held consortium consisting of six separately managed lines of business.

CHEMISTRY & INDUSTRIAL HYGIENE

Mike Hallacy

Director of Marketing and Sales

10201 W. 43rd Ave.

Wheat Ridge, CO 80033

Tel: 303-420-8242 x 120

email: mhallacy@C-IH.com

C&IH provides health hazard assessment and risk control for all mining related operations. Since 1987, Chemistry & Industrial Hygiene, Inc. (C&IH) has provided risk management solutions to industries faced with occupational and environmental health hazards. For more information, go to http://www.c-ih.com/services/health

DAVIES PUBLIC AFFAIRS

Rob Rice

Executive Vice President

808 State Street

Santa Barbara, CA 93101

Tel: 805-962-4550

email: rrice@daviespublicaffairs.com

Davies Public Affairs is ranked in the top public relations/public affairs firms nationally and is the third largest environmental PR firm in the country. From traditional outreach to highly structured online campaigns, web 2.0 applications, Davies builds and implements integrated grassroots programs to gain (or divert) the attention necessary to favorably shape public opinion and build genuine support for their clients' projects. Clients include Fortune 100 companies and some of the largest names in mining worldwide.

ENERSYS

James Hill

Manager-Mining Products

80 Stewart Avenue

Washington, PA 15301

Tel: 724-228-4160

email: james.hill@enersys.com

EnerSys® is the largest industrial battery manufacturer in the world, operating manufacturing and assembly facilities worldwide for customers in over 100 countries. Worldwide and Americas headquarters are located in Reading, Pennsylvania, USA with regional headquarters in Europe and Asia.

INTERMOUNTAIN ELECTRONICS

Rod Brown

Vice President, Sales & Marketing

1511 South Highway 6

Price, UT 84501

Tel: 877-544-2291

email: rbrown@ie-corp.com

Founded in 1985, Intermountain Electronics, Inc. (IE) designs, engineers, manufactures and services custom electrical distribution and control equipment for a variety of industries. IE caters to various industries, including underground mining, surface mining, power generation, oil and gas, refineries, utilities and federal, state and local governments.

NEW ELK COAL COMPANY

Ron Thompson

Mine Manager

122 W. First Street

Trinidad, CO 81082

Tel: 719-845-0090

Email: ronthompson@newelkcoal.com

The New Elk Coal Mine in Trinidad, Colorado is owned 100% by Cline Mining Corporation. Historically the New Elk Mine was opened in 1951 by the CF&I Steel Company to provide metallurgical coking coal for its blast furnace iron and steel production plant at Pueblo, Colorado. After rehabilitation of the old mine workings, first production from the New Elk Coal Mine recommenced in December 2010 and will continue to ramp up to 2.75 million tons of saleable metallurgical coal produced in 2012 with 3 million tons of coal produced in 2013 and thereafter.

TEXAS RARE EARTH RESOURCES CORP.

Marc LeVier

CEO

304 Inverness Way South, Suite 365

Englewood, CO 80112

Tel: 303- 597-8737

Email: mlevier@texasrareearth.com

http://trer.com/

Texas Rare Earth Resources Corp is a North American based mining company engaged in the exploration and development of mineral properties. Our flagship property, Round Top Mountain in Hudspeth County, Texas, is held under a 20-year renewable lease from the State of Texas to explore and develop a rare earth-uranium-beryllium prospect which includes niobium, tantalum and gallium.

THE WRIGHT GROUP

Roger Forystek

President

1873 South Bellaire

Denver, CO 80222

Tel: 303-863-7788

email: rforystek@twgservices.com

The Wright Group Services (TWG) combines 30+ years of experience with leading-edge products to provide exceptional service and value to our customers. We provide a full range of brokerage services including employee benefits, property and casualty, and retirement. Our goal is to achieve a long-term relationship focused on bringing value to your employee benefits management and insurance programs.

TMEIC

Darren Honaker

Mining Industry Leader

2060 Cook Drive

Salem, VA 24153

Tel: 540-283-2364

email: darren.honaker@tmeic.com

TMEIC is the leading application expert for high performance drive systems and services, combining strong global capabilities with a flexible customer-centric business approach. As an industrial system integrator, TMEIC focuses on industrial markets, brings innovation to industry, takes positive and constructive approaches, and evolves continuously with customers. Built on the proud history of Toshiba and Mitsubishi Electric, TMEIC continues its long tradition of providing high performance, high power drive solutions to customers globally.

WELBORN, SULLIVAN, MECK & TOOLEY

JoAnn Gann

Legal Administrator

1125 17th Street, Suite 2200

Denver, CO 80202

Tel: 303-830-2500

email: jgann@wsmtlaw.com

WSMT is a team of full-service attorneys who specialize in matters related to energy, natural resources, and land-based development. From multinational corporations to entrepreneurial individuals, our clients recognize that the Law of the Land endures in the spirit and integrity of our outstanding team. For more information, please visit www.wsmtlaw.com.

COLORADO MINING ASSOCIATION STEPS UP WITH MAJOR CONTRIBUTION TO CAPITOL DOME RESTORATION

AngloGold Ashanti CEO Mark Cutifani presents gold button worth $1.2 million to Colorado Governor John Hickenlooper. The company is contributiong gold for the restoration of the Capitol Dome.

The Colorado Mining Association (CMA) has joined Share in the Care Colorado as a corporate sponsor.

In providing the sponsorship, Colorado Mining Association president Stuart Sanderson said, "Mining has played an integral role in the settlement of Colorado and its history is intertwined with that of the state.

Members of the Colorado Mining Association provided the gold needed for the initial gilding of the Capitol Dome in 1908 and have supported previous preservation efforts. We are pleased to be a partner in the structural restoration of one of the state's most important symbols."

The Capitol Dome restoration actually represents a comprehensive structural restoration of one of Colorado's most important symbols. James Hare, Executive Director of Colorado Preservation, Inc., said "the State Capitol is 'the people's house' ...the symbol of the Centennial State and the industries, such as mining, that have made it great."

For information on how to contribute to the restoration effort, please go to www.shareinthecarecolorado.org.

TENTH CIRCUIT UPHOLDS CLINTON ROADLESS "PROTECTIONS"

CMA URGES SUPPORT FOR COLORADO ROADLESS RULE

While CMA considers further appeal of an October ruling by the Tenth Circuit Court of Appeals upholding the Clinton Administration's Roadless Rule, CMA and its members are supporting a Colorado proposal that would allow for limited mineral development on about 20,000 acres in areas essential to the ongoing operation of the state's coal mines. Anti-mining groups bitterly oppose the Colorado roadless process and have attempted to pressure state officials to rescind the rule in light of the court decision.

In a November 28 letter (click here to read) to Governor John Hickenlooper, CMA urged approval of the Colorado roadless rule, which has received strong bipartisan support from two previous administrations. "Development of the Colorado Roadless Rule offers the opportunity to gain new knowledge of the affected areas in Colorado's National Forests," CMA said, and "that improved knowledge base and updated maps offer the opportunity to provide a management plan specifically tailored to Colorado's needs, values, and the condition of the forests."

A decision by the U. S. Forest Service on the Colorado rule is pending. But in a letter Agriculture Secretary Tom Vilsack sent to CMA President Stuart Sanderson last August, he endorsed CMA comments on the importance of mining in job creation. In that letter, Vilsack said: "I agree that mining and job creation are important for Colorado's economy," and he reaffirmed the Forest Service's commitment to considering all of CMA's comments in developing the final rule.

DIVIDED COURT SANCTIONS TAX INCREASE BY STATE AGENCY WITHOUT VOTE OF THE PEOPLE

Decision Puts Jobs at Risk

A sharply divided Colorado Supreme Court, by a 4-2 vote, reversed a unanimous decision of the Colorado Court of Appeals and upheld the Colorado Department of Revenue's (Department) rulemaking to increase the severance tax rate for coal, without a vote of the people, as required by the Taxpayer Bill of Rights (TABOR). The Colorado Mining Association (CMA) and six taxpayers had challenged the agency's rule. They were joined by the business community in Colorado, including the Colorado Association of Commerce & Industry and the Denver Metro Chamber of Commerce, which filed friend of court briefs in opposition to the tax increase. The office of Colorado Attorney General John Suthers defended the tax increase before the Court. Paul Seby, Moye White, LLP), represented CMA and its member companies.

Stuart Sanderson, CMA President, issued the following statement in response to the October 31 ruling:

"The Court's ruling sanctions a bureaucratic end run on taxpayer rights and sends yet another discouraging signal to businesses and industries like coal mining - so important to state and rural economies - that they may not rely on settled interpretations of state law in making decisions to invest in Colorado. TABOR is very clear - no agency, no branch of government, may increase taxes without a vote of the people. Yet the Department's rule reversed the agency's own longstanding interpretation (from 1992 until 2008) that TABOR prohibits upward revisions in the severance tax rate for coal without a vote of the people. The result is an increase in the severance tax rate for coal by 40% for now, and potentially unlimited increases in the tax burden in the future."

CMA cited the Department's about face in roundtable discussions with legislators examining regulatory actions by agencies of state government, most recently in forums hosted by State Senator Bill Cadman. Regulatory uncertainty is a chief reason why Colorado rates low in international surveys measuring the attractiveness of states and countries to new mineral development.

A full copy of CMA's press release is available here.

Upcoming Events

January 12, 2012: Legislative Reception at the Brown Palace at 4:30 pm.

March 19-22, 2012: 114th National Western Mining Conference & Exhibiton at the Westin Tabor Center in Denver. Click here for more information.

Hope to see you there!

Colorado Mining Association

216 16th Street
Suite 1250
Denver, CO 80202
303-575-9199

Contact Jody Courtney if you have any questions about our upcoming events.

jcourtney@coloradomining.org

CMA Education Foundation

Now enrolling for 2012 All About Mining continuing education course!

Click here to visit the website and learn more.

Help us spread the word!