Resources Boom Fuels Demand for Underground Labor, Spurs Skyrocketing Pay; a $1,200 Chihuahua

By JOHN W. MILLER

MANDURAH, Australia—One of the fastest-growing costs in the global mining industry are workers like James Dinnison: the 25-year-old high-school dropout from Western Australia makes $200,000 a year running drills in underground mines to extract gold and other minerals.
The heavily tattooed Mr. Dinnison, who started in the mines seven years ago earning $100,000, owns a sky-blue 2009 Chevy Ute, which cost $55,000 before a $16,000 engine enhancement, and a $44,000 custom motorcycle. The price tag on his chihuahua, Dexter, which yaps at his feet: $1,200.

James Dinnison, a 25-year-old high school dropout from Western Australia, makes $200,000 a year running drills in underground mines to extract gold and other minerals. Why is he paid so much? John Miller explains on Lunch Break.

ST. LOUIS , Nov. 17, 2011 /PRNewswire/ -- Patriot Coal Corporation (NYSE:PCX - News) today announced the realignment of its operations management to strengthen oversight of key mine complexes in Appalachia and facilitate plans for expansion of captive production.  Effective November 21 , the following management team will report directly to Bennett K. Hatfield , Executive Vice President & Chief Operating Officer:

• ·John R. Jones will join Patriot as Vice President, Operations – West Virginia South Region, including the Rocklick, Wells, Big Mountain and Paint Creek complexes.
• ·James N. Magro will serve as Senior Vice President, Operations – West Virginia North Region, including the Panther, Kanawha Eagle and Federal complexes.
• ·Michael D. Day will be Senior Vice President – Engineering and West Virginia Central Region Operations, with dual responsibilities for both the corporate engineering group and an operating region that includes the Logan County, Corridor G, Campbell 's Creek and Blue Creek complexes
• ·Lawrence J. Millburg will become Vice President, Operations – Kentucky Region, including the Bluegrass, Dodge Hill and Highland complexes
• ·Terry G. Hudson will continue in his current position as Vice President – Safety.
• · E. Kent Hartsog will continue in his current role as Vice President - Operations Support

International Energy Outlook 2011 (IEO2011) released today by the U.S. Energy Information Administration (EIA) presents updated projections for world energy markets through 2035. The IEO2011 Reference case projection does not incorporate prospective legislation or policies that might affect energy markets.

Worldwide energy consumption grows by 53 percent between 2008 and 2035 in the Reference case, with much of the increase driven by strong economic growth in the developing nations especially China and India. "China and India account for half of the projected increase in world energy use over the next 25 years. China alone, which only recently became the world's top energy consumer, is projected to use 68 percent more energy than the United States by 2035." said Acting EIA Administrator Howard Gruenspecht.

The Associated Press story about the anticipated decline of Central Appalachian coal production paints a bleak picture for the future of coal in that region. According to the article, coal production is expected to plummet in the near future, primarily due to depletion of mineable reserves.

The writer cites a 2010 report by Mcllmoil and Hansen of Downstream Strategies, an environmental consulting firm in Morgantown, W.Va., as well as other sources. As a geologist familiar with coal resources in Eastern Kentucky, I wanted to find out more about how Mcllmoil and Hansen arrived at these conclusions.

With so many things (issues) going on with the state and federal governments that affect our everyday operations and with the 2012 Regular Legislative Session beginning in January, the Association is planning to host three regional meetings to discuss legislative, regulatory and political topics. Each of the three regional programs will commence at 3 p.m. and conclude with a “Friends of Coal” reception.  All WV Coal Association members are encouraged to attend the meeting in their area or all three, if you choose.

The first regional meeting will be held on November 16 at the Waterfront Hotel in Morgantown.  The second meeting will be on November 29 at the Charleston Civic Center and the third on November 30 at the Tamarack Conference Center in Beckley.  Please mark your calendars now.  More information and meeting materials will be forthcoming.