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Matched Legal Cases: ['art 70', '§ 48', '§ 48', '§ 48', '§ 48', '§ 75', '§ 48', '§ 48', '§ 48', 'art 48', 'art 48', 'art 48', 'art 48', 'art 48', 'art 48', 'art 48', 'art 48', 'art 48', 'art 48', 'art 48', '§ 48', 'art 48', 'art 48', 'art 48', 'art 48', 'art 48', 'art 48', '§ 48', 'art 48', 'art 48', 'art 48', 'art 48', 'art 48', '§ 48', '§ 48', '§ 48', '§ 48', '§ 48', 'art 48', 'art 48', '§ 75', '§ 75', '§ 77', 'art 48', '§ 202', '§ 203', '§ 48', 'art 48', 'art 48', '§ 48', 'art 48', '§ 48', '§ 48', 'art 48', 'art 48', 'art 48']

Regulatory Impact and Analysis Reports- Health Standards For Diesel Particulate Concerning: 30 CFR Part 70 and 75 Underground Coal Mines
FINAL REGULATORY ECONOMIC ANALYSIS AND REGULATORY FLEXIBILITY ANALYSIS
FINAL RULE ON 30 CFR 48 TRAINING AND RETRAINING OF MINERS;
EXPERIENCED MINER AND SUPERVISOR TRAINING
Office of Standards, Regulations, and Variances
Mine Safety and Health Administration United States (U.S.) Department of Labor September 24, 1998 TABLE OF CONTENTS SECTION TITLE
INTRODUCTION POPULATION AT RISK BENEFITS COMPLIANCE COSTS EXECUTIVE ORDER 12866 AND REGULATORY FLEXIBILITY ACT II. INDUSTRY PROFILE SUMMARY Introduction Overall Structure of the Mining Industry Economic Characteristics STRUCTURE OF THE COAL MINING INDUSTRY STRUCTURE OF THE M/NM MINING INDUSTRY Metal Mining Nonmetal Mining Stone Mining Sand and Gravel Mining ECONOMIC CHARACTERISTICS OF COAL MINING INDUSTRY ECONOMIC CHARACTERISTICS OF M/NM MINING INDUSTRY Summary Metal Mining Iron Ore and Alloying Metals
Copper and Precious Metals Nonmetal Mining, Including Stone and Sand and Gravel III. BENEFITS INTRODUCTION Summary Methodology DISCUSSION OF COMMENTS POPULATION AT RISK BENEFITS Definition of Miner Experienced Miner Training Significant Changes in the Mine Environment SUMMARY IV. COST OF COMPLIANCE INTRODUCTION DATA SOURCES METHODOLOGY Baseline Types of Cost Cost of Compliance Summary
SECTION-BY-SECTION COSTS §§ 48.2/48.22 Definitions State-Certified Supervisors as "Miners" Requirements for "Experienced Miner" Status §§ 48.5/48.25 Training of New Miners §§ 48.6/48.26 Experienced Miner Training
Development of Training Course Additional "Experienced Miner" Training Costs Significant Changes in the Mine Environment §§ 48.8/48.28 Annual Refresher Training of Supervisors §§ 75.161, 77.107-1, and 77.1709 Plans for Training Programs SUMMARY V. EXECUTIVE ORDER 12866
AND REGULATORY FLEXIBILITY ACT FACTUAL BASIS FOR CERTIFICATION VI. EXECUTIVE ORDER 12875
AND THE UNFUNDED MANDATES REFORM ACT OF 1995 VII. EXECUTIVE ORDER 13045
(PROTECTION OF CHILDREN FROM ENVIRONMENTAL HEALTH
RISKS AND SAFETY RISKS) VIII. EXECUTIVE ORDER 13084
(CONSULTATION AND COORDINATION WITH INDIAN TRIBAL GOVERNMENTS) IX. PAPERWORK REDUCTION ACT
INTRODUCTION AND SUMMARY SECTION-BY-SECTION DISCUSSION §§ 48.2 and 48.22 Definitions State-Certified Supervisors as "Miners" Requirements for "Experienced Miner" Status §§ 48.6/48.26 Experienced Miner Training Development of Training Course Additional "Experienced Miner" Training Significant Changes in the Mine Affecting Safety and Health §§ 48.8/48.28 Annual Refresher Training of Supervisors
II. INDUSTRY PROFILE
II-1 Distribution of Operations and Employment by Mine Type, Commodity, and Size II-2 Distribution of Contractors and Contractor Employees by Major Industry Segment and Size of Operation II-3 Estimated Distribution of M/NM Mines and Miners III. BENEFITS III-1 Coal Mine Supervisory Mine Employment Data III-2 Coal Supervisor Fatalities (1990-1997)
III-3 Newly-Employed Experienced Miner Employment Data III-4 Newly-Employed Experienced Miner Fatality Data IV. COST OF COMPLIANCE IV-1 Compliance Cost Summary by Provision for Coal and M/NM Mines
IV-2 Costs to Remove Exemption for State-Certified Coal Supervisors in Definition of Miner IV-3 Numbers of Newly-Employed Experienced Miners IV-4 Cost Savings Related to the Change in the Definition of "Experienced Miner" IV-5 One-Time Costs for Course Development for "Experienced Miner" Training IV-6 Estimated Annual Additional Costs for "Experienced Miner" Training IV-7 Cost for Instruction on Significant Changes in the Mine Affecting Safety and Health V. REGULATORY FLEXIBILITY CERTIFICATION V-1 Annual Costs Compared to Revenues IX. PAPERWORK REDUCTION ACT OF 1995 IX-1 Summary of Net Information Collection Burden Hours and Associated Costs Imposed by Final Rule IX-2 Burden Hours and Associated Costs for Training Course Development IX-3 Annual Burden for Additional Experienced Miner Training IX-4 Cost for Instruction on Significant Changes in the Workplace that Affect Safety and Health I. EXECUTIVE SUMMARY
INTRODUCTION Executive Order (E.O.) 12866 requires that regulatory
agencies complete a Regulatory Economic Analysis (REA) for any
rule having major economic consequences for the national economy,
an individual industry, a geographical region, or a level of
government. The Regulatory Flexibility Act similarly requires
regulatory agencies to consider the impact of the rule on small
entities. This REA and Regulatory Flexibility Certification has
been prepared to fulfill the requirements of E.O. 12866 and the
Regulatory Flexibility Act. MSHA certifies that this final rule
will not impose a significant economic impact on a substantial
number of small entities. The Mine Safety and Health Administration (MSHA) is making
several changes to 30 CFR part 48, which deals with miner
training. During the rulemaking process, MSHA received written
and oral statements from various sectors of the mining community. The Agency has reviewed these comments and, where appropriate,
used that information in this analysis. This final rule will
change the definition of miner to include State-certified
supervisors, change the definition of experienced miner to reflect
a miner's past experience, and strengthen training requirements
for experienced miners. POPULATION AT RISK
In 1997, there were about 20,650 mine operators, including
independent contractors, employing about 326,650 miners. MSHA
considers about 17,310 (84%) of these operators to be small
entities in that they employ fewer than (<) 20 miners. Only about
92,440 (28%) of the total mining population, however, work for
small operators. BENEFITS This final rule removes the exemption of State-certified
supervisors from the definition of "miner" for purposes of part 48
training. This change affects supervisors in coal mines. From
1990 through 1997, 50 coal supervisors were killed in mining
accidents. Of these, 35 occurred underground. Had the percentage
of fatalities been the same for coal supervisors as their
percentage in the population of coal miners, MSHA projects that 45
coal supervisors, rather than 50, would have died during this time
period. The average of these higher than expected fatalities is
about 0.6 fatalities per year. MSHA expects that the additional
supervisor training required by this rule will help reduce
supervisory fatalities. Similarly, the percentage of fatalities between 1990 and 1997
for miners who had more than 1 year of total mining experience,
but less than 1 year at the mine where the fatality occurred, is
greater than the percentage of fatalities for all other miners
when compared to their percentage in the mining population. During that time period, these newly-employed experienced miners
(NEEMs) accounted for 174, or 22 %, of the 793 fatalities. These
NEEMs, however, constituted only about 5.3% of the miner
population. Had the percentage of fatalities been the same for
NEEMs as their percentage in the mining population, MSHA projects
that 34 NEEMs, rather than 174, would have died during this time
period. These higher-than-expected fatalities averaged about
17.5 per year. MSHA expects that the additional NEEM training
required by this rule will help reduce NEEM fatalities. MSHA estimates that compliance with this final rule will help
reduce by half the greater than expected numbers of fatalities for
supervisors and by 20 percent the greater than expected number of
fatalities for NEEMs -- in total an average of about four
fatalities per year. COMPLIANCE COSTS The incremental compliance costs of this rule include (1) the
annually recurring costs for training previously exempted State-certified supervisors and the added training for experienced
miners, and (2) the one-time cost for modifying existing courses
and developing a new training course for NEEM training. The total
initial cost will be about $3.5 million. This includes an
annually recurring cost of about $2.6 million and the one-time
cost of about $0.9 million for these requirements. These costs
are less than 0.01% of the gross annual revenues of the mining
industry of about $58 billion. EXECUTIVE ORDER 12866 AND REGULATORY FLEXIBILITY ACT Executive Order (E.O.) 12866 requires that regulatory
agencies assess both the costs and benefits of intended
regulations. MSHA has determined that this rulemaking is not a
significant regulatory action. The Regulatory Flexibility Act (RFA) requires regulatory
agencies to consider a rule's impact on small entities. Under the
RFA, MSHA must use the Small Business Administration's (SBA)
definition for a small mine of 500 or fewer employees or, after
consultation with the SBA Office of Advocacy, establish an
alternative definition for the mining industry by publishing that
definition in the Federal Register for notice and comment. MSHA
traditionally has considered small mines to be those with fewer
than 20 employees. For the purposes of the RFA, MSHA has analyzed
the impact of the final rule both on mines with 500 or fewer
employees and on those with fewer than 20 employees. MSHA has
determined that this final rule will not impose a substantial cost
increase on small mines, whether a small mine is defined as fewer
than 20 miners or fewer than 500 miners. MSHA has prepared a Regulatory Economic Analysis (REA) and
Regulatory Flexibility Certification Statement to fulfill the
requirements of E.O. 12866 and the Regulatory Flexibility Act. Using the Agency's traditional definition of a small mine,
one employing fewer than (<)20 miners, the initial cost of this
final rule on small mines will be about $1.88 million, which
includes an annually recurring cost of $1.22 million and a one-time cost of $0.66 million. These initial costs for small mines
(using the Agency's traditional definition of a small mine)
translate into about $109 per mine, which includes annually
recurring costs of $71 per small mine and a one-time cost of $38
per small mine. This industry segment has estimated annual
revenues of about $16.4 billion. The initial cost of the final rule for small mines, using
SBA's definition of 500 or fewer (< 500) employees, will be about
$3.42 million, which includes an annually recurring cost of $2.52
million and a one-time cost of $0.90 million. These initial costs
for small mines (using SBA's definition) translate into about $166
per small mine, which includes annually recurring costs of $122
per small mine and a one-time cost of $44 per small mine. Using
SBA's definition of a small entity, small operators have an
estimated revenue of about $54.7 billion. For all industry
segments, the cost impact is less than 0.1% of revenue. The Agency has determined that this final rule will not have
a significant economic impact on prices, profits, productivity,
employment, or mining output. II. INDUSTRY PROFILE SUMMARY Introduction The industry profile provides background information
describing the structure and economic characteristics of the
mining industry. This profile provides data on the number of
mines, their size, the number of employees in each segment, as
well as selected market characteristics. Overall Structure of the Mining Industry MSHA divides the mining industry into two major segments
based on commodity, the coal mining industry and the metal and
nonmetal (M/NM) mining industry. These major industry segments
are further divided based on type of operation (underground mines,
surface mines, and independent mills, plants, shops, and yards). The Agency maintains its own data on mine type, size, and
employment. MSHA also collects data on the number of contractors
and contractor employees by major industry segment. MSHA categorizes mines on the basis of their employment size. For the purpose of this final Regulatory Economic Analysis and
Regulatory Flexibility Analysis (REA), MSHA has employed two
different definitions of a small mine. Based on its traditional
definition, MSHA defines small mines to be those having fewer than
(<) 20 employees and large mines to be those having at least (>)
20 employees. Based on SBA's definition, MSHA has also evaluated
small mines as having 500 or fewer employees, and large mines as
having more than 500 employees. Over the past 20 years, for
rulemaking purposes, MSHA has traditionally used the less-than-20
definition of a small mine. As will be discussed in the various
sections of the preamble, MSHA's REA meets the requirements of the
SBREFA amendments to the Regulatory Flexibility Act particularly
as it covers small businesses. Table II-1 presents the number of small and large mines and
the corresponding number of miners, excluding contractors and
office workers, by major industry segment and mine type. MSHA
does not maintain a data base which would allow determination of
the types of services provided by independent contractors or the
job titles of contractor employees. TABLE II-1: Distribution of Operations and Employment by Mine
Type, Commodity, and Size MINE TYPE SMALL (<20
employees) LARGE (>20
employees) TOTAL # Mines # Workers # Mines # Workers # Mines # Workers COAL Underground 417 4,178 543 44,784 960 48,962 Surface 722 4,141 388 28,774 1,110 32,915 Shop/Yard/Mill/Plant 372 2,490 119 4,646 491 7,136 Coal Subtotal 1,511 10,809 1,050 78,204 2,561 89,013 M/NM Underground 131 1,123 130 16,590 261 17,713 Surface 8,965 50,015 1,219 80,979 10,184 130,994 Shop/Yard/Mill/Plant 288 2,181 222 18,852 510 21,033 M/NM Subtotal 9,384 53,319 1,571 116,421 10,955 169,740 TOTAL ALL MINES 10,895 64,128 2,621 194,625 13,516 258,753 Source: U.S. Department of Labor, Mine Safety and Health Administration,
Office of Standards, Regulations, and Variances, based on preliminary 1997 MIS
data (quarter 1 - quarter 4, 1997). Excludes contractors and office workers. Table II-2, however, presents MSHA data on the numbers of
independent contractors and the corresponding numbers of
employees, excluding office workers, by major industry segment and
the size of the operation based on employment. TABLE II-2: Distribution of Contractors and Contractor Employees
by Major Industry Segment and Size of Operation CONTRACTORS SMALL (<20) LARGE (>20) TOTAL # Contr # Workers # Contr # Workers # Contr # Workers COAL 3,561 14,151 333 15,753 3,894 29,904 M/NM 2,855 14,161 381 23,829 3,236 37,990 TOTAL CONTRACTORS 6,416 28,312 714 39,582 7,130 67,894 Source:
U.S. Department of Labor, Mine Safety and Health Administration,
data (quarter 1 - quarter 4, 1997). Excludes office workers. For the purposes of the Small Business Regulatory Enforcement
Fairness Act (SBREFA) amendments to the Regulatory Flexibility Act
(RFA), MSHA also has evaluated the impact of the final rule on
mines with fewer than (<) 500 employees. Economic Characteristics The U.S. mining industry's 1997 production is worth in excess
of $58 billion in raw mineral resources. Coal mining contributed
about $20 billion to the Gross Domestic Product in 1997 and M/NM
mining contributed about $38 billion.(1) Another estimated $14-17
billion is reclaimed annually from recycled metal and mineral
materials such as scrap iron, aluminum, and glass.(2) The Agency obtained financial information on the various
mineral commodities primarily from the U.S. Department of the
Interior, former Bureau of Mines, and the U.S. Department of
Energy, Energy Information Administration. STRUCTURE OF THE COAL MINING INDUSTRY MSHA separates the U.S. coal mining industry into two major
commodity groups, bituminous and anthracite. The bituminous group
includes the mining of subbituminous coal and lignite. Bituminous
operations represent over 93% of the coal mining operations,
employ over 98% of the coal miners, and account for over 99% of
the coal production. Using MSHA's traditional definition, about
60% of the bituminous operations are large (having 20 or more
employees) whereas nearly all anthracite operations are small
(having fewer than 20 employees). Underground bituminous mines are more mechanized than
anthracite mines in that most, if not all, underground anthracite
mines still hand-load. Over 70% of the underground bituminous
mines use continuous mining and longwall mining methods. The
remaining use drills, cutters, and scoops. Although underground
coal mines generally use electrical equipment, a growing number of
underground coal mines use diesel powered haulage equipment. Surface mining methods include drilling, blasting, and
hauling and are similar for all coal commodity types. Most
surface mines use front-end loaders, bulldozers, shovels, or
trucks for coal haulage. A few still use rail haulage. Although
some coal may be crushed to facilitate cleaning or mixing, coal
processing usually involves cleaning, sizing, and grading. Preliminary data for 1997 indicate that there are about 2,561
active coal mines of which 1,511 are small mines (about 59% of the
total) and 1,050 are large mines (about 41% of the total).(3) These data indicate employment at coal mines to be about
89,013, of which about 10,809 (12% of the total) work at small
mines and 78,204 (88% of the total) work at large mines.(4) MSHA
estimates that the average employment is 7 miners at small coal
mines and 75 miners at large coal mines. STRUCTURE OF THE M/NM MINING INDUSTRY The M/NM mining industry consists of about 70 different
commodities including metals, industrial minerals, stone, and sand
and gravel. Preliminary data for 1997 indicate that there are
about 10,955 active M/NM mines, of which 9,384 are small mines
(about 86% of the total) and 1,571 are large mines (about 14% of
the total).(5) These data indicate employment at M/NM mines to be about
169,740, of which about 53,319 (31% of the total) work at small
mines and 116,421 (69% of the total) work at large mines.(6) MSHA
estimates that the average employment is 6 miners at small M/NM
mines and 74 miners at large M/NM mines. Table II-3 presents the
number of M/NM mines and miners by major commodity category, mine
size, and employment. In addition, MSHA estimates that about 210
sand and gravel or stone operations are owned by state, county, or
city governments. TABLE II-3:
Estimated Distribution of M/NM Mines and Miners* Commodity SMALL (<20
Employees) TOTAL # Mines # Miners # Mines # Miners # Mines # Miners Metal 178 1,046 196 40,375 374 41,421 Nonmetal 554 3,051 234 22,178 788 25,229 Stone 2,672 20,081 907 46,359 3,579 66,440 Sand & Gravel 5,980 29,141 234 7,509 6,214 36,650 TOTAL 9,384 53,319 1,571 116,421 10,955 169,740 * Includes office workers. Excludes contractors. Metal Mining Metal mining in the U.S. consists of about 25 different
commodities. A significant number of metal commodities are mined
at only one or two mining operations in the nation. Metal mining
operations represent about 3% of the M/NM mines, employ about 24%
of the M/NM miners, and account for about 33% of the value of M/NM
minerals produced in the U.S.(7) About 48% of the metal mining operations are small. Underground metal mining uses a few basic mining methods,
such as stope, room and pillar, and block caving with primary
noise sources being diesel powered haulage equipment, pneumatic
drills, and mills. Larger underground metal mines use more
hydraulic drills and track-mounted haulage whereas smaller
underground metal mines use more hand-held pneumatic drills. Stope mining uses more hand-held equipment. Surface metal mines
include some of the largest mines in the world. Surface mining
methods (drill, blast, haul) use the largest equipment and are
similar for all commodity types. Nonmetal Mining For enforcement and statistical purposes, MSHA separates
stone and sand and gravel mining from other nonmetal mining. There are about 35 different nonmetal commodities, not including
stone or sand and gravel. About half of the nonmetal commodities
include fewer than 10 mining operations; some include only one or
two mining operations. Nonmetal mining operations represent about
7% of the M/NM mines, employ about 15% of the M/NM miners, and
account for about 35% of the value of M/NM minerals produced in
the U.S.(8) About 70% of the nonmetal mining operations are small. Nonmetal mining uses a wide variety of underground mining
methods. For example, potash mines use continuous miners similar
to coal mining; oil shale uses in-situ retorting; and gilsonite
uses hand-held pneumatic chippers. Some nonmetal commodities use
kilns and dryers in ore processing. Others use crushers and mills
similar to metal mining. Underground nonmetal mining operations
generally use more block caving, room and pillar, and retreat
mining methods; less hand-held equipment; and more electrical
equipment than metal mining operations. As with underground
mining, surface mining methods vary more than for other commodity
groups. In addition to drilling, blasting, and hauling, surface
nonmetal mining methods include other types of mining methods,
such as evaporation beds and dredging. Stone Mining There are basically only eight different stone commodities of
which seven are further classified as either dimension stone or
crushed and broken stone. Stone mining operations represent about
33% of the M/NM mines, employ about 39% of the M/NM miners, and
account for about 19% of the value of M/NM minerals produced in
the U.S.(9) About 75% of the stone mining operations are small (having fewer than 20 employees). Stone generally is mined from quarries using only a few
different methods and diesel powered haulage to transfer the ore
from the quarry to the mill. Crushed stone mines typically drill
and blast whereas dimension stone mines typically use channel
burners, drills, or wire saws. Milling typically includes jaw
crushers, vibratory crushers, and vibratory sizing screens. Sand and Gravel Mining Based on the number of mines, sand and gravel mining
represents the single largest commodity group in the U.S. mining
industry. About 57% of the M/NM mines are sand and gravel
operations. They employ about 22% of the M/NM miners and account
for about 13% of the value of M/NM minerals produced in the U.S.(10) Over 96% of the sand and gravel operations are small. Construction sand and gravel is generally gathered from
surface deposits using dredges or draglines and only washing and
screening milling methods. As in other surface mining operations,
sand and gravel operations use diesel powered haulage equipment,
such as front-end loaders, trucks, and bulldozers. In addition,
industrial sand and silica flour operations mill the ore using
crushers, ball mills, screens, and classifiers. ECONOMIC CHARACTERISTICS OF THE COAL MINING INDUSTRY
The U.S. Department of Energy, Energy Information
Administration, reported that the U.S. coal industry produced a
record 1.06 billion tons of coal in 1996 with a value of over $20
billion. For 1997, production through September 1997 was
estimated to be 814.9 million tons.(11) 1997 year-end production
levels are expected to meet and exceed the previous year's level;
preliminary MSHA data estimates production to have reached
1.088 billion tons.(12) U.S. consumption was estimated in a report sponsored by the
Western Fuels Association to be slightly over a billion tons per
year with a recoverable reserve base of about 297 billion tons.(13) Further, this report estimated that the use of coal will rise by
200-250 million tons per year from a 1997 consumption level of 850
million tons. The Energy Information Administration put total
1996 consumption at 983,334 thousand short tons; for January
through September 1997 consumption was estimated by the agency to
be 747 million short tons with electric utilities being the
largest consumer, followed by other industrial uses, coke plants,
then residential/commercial users. Industrial uses include the
use of coal products in the manufacturing of other products, such
as plastics, dyes, drugs, explosives, solvents, refrigerants, and
fertilizers.(14) Of the several different types of coal commodities,
bituminous and subbituminous coal account for 91% of all coal
production. The remainder of U.S. coal production is lignite (86
million tons) and anthracite (4 million tons). Although
anthracite offers superior burning qualities, it contributes only
a small and diminishing share of total coal production. A small
fraction of U.S. coal production in 1997 (less than .5%) was
anthracite.(15) Mines east of the Mississippi account for about 53% of the
current U.S. coal production. For the period 1949 through 1995,
coal production east of the Mississippi River fluctuated
relatively little from a low of 395 million tons in 1954 to 630
million tons in 1990. (It was 505 million tons in 1996.) During
this same period, however, coal production west of the Mississippi
increased each year from a low of 20 million tons in 1959 to a
record 490 million tons in 1995.(16) The growth in western coal is
due in part to environmental concerns that led to increased demand
for low-sulfur coal, which is concentrated in the West. In
addition, surface mining, with its higher average productivity, is
much more prevalent in the West. Preliminary MSHA data for 1997 indicate that small mines
produced about 3.9% of the total coal mine production (about 42.2
million tons) and large mines produced about 96.1% of the total
(1,044.8 million tons).(17) MSHA calculations indicate that the
average total production per miner for 1997 was about 3,910 tons
at small mines and 13,370 tons at large mines. The average total
coal production for 1997 was about 28,000 tons per small mine and
1,262,600 tons per large mine. The Energy Information Administration estimates that 1997
coal exports were $40.76 per short ton for about 90 million short
tons and imports were $33.45 per short ton for 7 million short
tons.(18) The 1996 estimate of the average value of coal at the
point of production was about $19 per ton for bituminous coal and
lignite, and $36 per ton for anthracite.(19) MSHA continues to use
$19 per ton as the value for all coal production because
anthracite contributes such a small amount to total production
that the higher value per ton of anthracite does not greatly
impact the total value. The total value of coal production in
1997 was about $20.67 billion of which about $803.7 million was
produced by small mines and $19.86 billion was produced by large
mines. On a per mine basis, the average coal production was
valued at over $0.5 million per small mine and $18.9 million per
large mine. The relationship between of U.S. coal production and U.S.
consumption has fluctuated significantly during this decade. Year-to-year fluctuations in exports of U.S. coal vary more than
domestic consumption. During the 1990's, changes in exports from
the previous year varied from a 24% increase to a 27% decrease
whereas changes in domestic consumption only varied from a 4%
increase to a 1% decrease.(20) In 1991, there was a fairly large overproduction level; by
1993, consumption had outpaced production. The market fluctuated
again with an oversupply in 1994 and near equilibrium in 1995.(21)
In 1996 there was a 90 million tons oversupply; most of the excess
production was exported and the remainder was stockpiled. Japan
(11.8 million tons), Canada (9.4 million tons), and Italy (9.1
million tons) were the top three importers of U.S. coal. For
1997, the year began with a large gap between consumption and
production; however by year's end, the Energy Information
Administration estimated near equilibrium. Throughout the 1990's
imports have been notably low, and consumer stocks have declined. The U.S. coal industry enjoys a fairly constant domestic
demand. The demand for coal by electric utilities continues to
increase annually. A 1997 report found that coal should account
for 44% to 77% of electric growth to 2010; experts predict coal
will be the lowest cost source of electric power.(22) Currently,
the U.S. spends $200 billion annually on electric energy. MSHA
does not expect a substantial change in coal demand by utilities
in the near future because of the high conversion costs of
changing a fuel source in the electric utility industry. Other
experts in energy predict that coal will continue to be the
dominant fuel source of choice for power plants built in the
future. Nuclear and hydropower currently comprise, and are
anticipated in the future to comprise, a small fraction of fuel
sources for utilities. The international market for coal was marked by several
notable events in the 1990's. The breakup of the Soviet Union
(USSR), a new political regime in South Africa, and economic
policy changes in the United Kingdom and Germany contributed to
price and demand changes in coal's global marketplace; newly
independent, former USSR republics provided competition to U.S.
companies for a share of the European coal market; and the deep
European recession of 1993-1994 caused exports of coal to
decrease.(23) Similarly, the cessation of the economic boycott of
South Africa, and its new political leadership, has led to new
interest in South African exports. South Africa ranks third after
Australia and the U.S. in coal exports. Its coal exploration and
mining have the nation poised to maintain its global position. The privatization of British power companies and the elimination
of coal subsidies in Germany have led to an increased interest in
U.S. coal. These international economic policy changes are
predicted to create a substantial export opportunity for U.S. coal
over the long term.(24) The net effect of these aforementioned international
activities appears to be a continued demand for U.S. coal at or
near current levels. The U.S. can expect additional competition,
however, from other current coal producing countries (e.g.,
Australia, South Africa, former USSR republics, Poland), as well
as from new suppliers in Colombia, Venezuela, China, and
Indonesia.(25) The U.S. coal industry has vast reserves of unmined
coal which is predicted to satisfy coal's demand for another half
millennium if mined at the current rate. Since 1992, coal has been targeted as the top producer of CO2
emissions but many scientists argue with that contention.(26) There
had been some concerns prior to the Kyoto summit that there would
be severe cuts in CO2. Compromises were made at the summit,
however, and the cuts were not as drastic as had been anticipated. Passage of the Kyoto treaty must be ratified by national
governments. The economic health of the coal industry may be summarized as
a fairly stable market which may be subject to periodic price and
demand fluctuations. These fluctuations are largely functions of
domestic supply disruptions and increased international
competition. ECONOMIC CHARACTERISTICS OF THE M/NM MINING INDUSTRY Summary The 1997 value of all M/NM mining output was in excess of $38
billion.(27) Metal mining contributes $13 billion to this total and
includes metals such as aluminum, copper, gold, and iron. Nonmetal mining is valued at $13.3 billion and includes
commodities such as cement, clay, and salt. Stone mining
contributes about $7.4 billion, and sand and gravel contributes
about $4.8 billion to this total. The entire M/NM mining industry is markedly diverse not only
in terms of the breadth of minerals, but also in terms of each
commodity's usage. For example, metals such as iron and aluminum
are used to produce vehicles and other heavy duty equipment, as
well as consumer goods such as household equipment and soda pop
cans. Other metals, such as uranium and titanium, have limited
uses. Nonmetals like cement are used in construction while salt
is used as a food additive and on roads in the winter. Soda ash,
phosphate rock, and potash also have a wide variety of commercial
uses. Stone and sand and gravel are used in numerous industries
including the construction of roads and buildings. A detailed economic picture of the M/NM mining industry is
difficult to develop because most mines are either privately held
corporations or sole proprietorships, or subsidiaries of publicly
owned companies. Privately held corporations and sole
proprietorships typically do not make their financial data
available to the public. Further, parent companies are not
required to separate financial data for subsidiaries in their
reports to the Securities and Exchange Commission. As a result,
financial data are available for only a few M/NM companies, and
these data are not representative of the entire industry. Each commodity has a unique market demand structure. The
following discussion focuses on the effects market forces on a few
specific commodities of the M/NM industry. Metal Mining Historically, the value of metals production has exhibited
considerable instability. In the early 1980's, excess capacity,
large inventories, and weak demand depressed the international
market for metals while the strong dollar placed U.S. producers at
a competitive disadvantage with foreign producers. In response, many metal mining companies reduced workforces, eliminated
marginal facilities, sold non-core businesses, and restructured. At the same time, new mining technologies were developed and wage
increases were restrained. As a result, the metal mining firms
now operating are more efficient and have lower break-even prices
than those that operated in the 1970's. For the purposes of this analysis, MSHA used the Standard and
Poor's methodology of dividing metal mining into two categories: iron ore and alloying metals, and copper and precious metals. Metal mine production is valued in excess of $13 billion. Copper,
aluminum, gold, and iron are the highest revenue producers of the
metal industry. Iron Ore and Alloying Metals Variations in the prices for iron and alloying metals, such
as nickel, aluminum, molybdenum, vanadium, platinum, and lead,
coincide closely with fluctuations in the market for durable
goods, such as vehicles and heavy duty equipment. There also
exists substantial vulnerability to world economic conditions. As
a result, the market for these metals is cyclical in nature and is
impacted directly by changes in aggregate demand and the economy
in general. The U.S. was the third largest producer of steel in the world
for 1995 and 1996. The U.S. produced 94.7 million metric tons (M
mt) of crude steel output in 1996, down slightly from 1995. 1997
levels were predicted to be 99.2 M mt, a 4.8% increase. The U.S. produced 62.5 million long tons of iron ore in 1995;
in 1996, the total was 62 million long tons. Domestic iron ore
production, consumption, and trade were largely unchanged in 1996
from the previous year.(28) Production for 1996 was valued at about
$1.7 billion. U.S. resources are mainly low-grade taconite-type
ores which require beneficiation and agglomeration for commercial
use. The construction of mini-mills is expected to add 10 to 15
million tons of capacity to the flat-rolled market by the new
millennium. Because of concern over the availability of low
residue scrap, investment in alternative iron-making technologies
has become of interest to the industry. One alternative to scrap
is direct-reduced iron (DRI). U.S. DRI capacity is expected to
reach 4 million metric tons a year in the near future.(29) The U.S. ranks fourth in world production, producing 6% of
the world's iron ore. The top five iron ore producing nations
account for nearly two thirds of world production. International
prices increased for the second consecutive year but 1996 prices
were considerably lower than those of 1991.(30) 1997 prices were
estimated to be slightly below the previous year's, reaching
$30.41 per metric ton. In addition, U.S. steel shipments, a dominant iron ore end-use, increased in 1996 for the fifth consecutive year--a feat
which has not happened since the mid-1930's.(31) The 1997 steel
shipments were the highest since 1974 according to the American
Iron and Steel Institute; U.S. steelmakers shipped 105.5 million
tons.(32) Shipments for construction and contractors' products were
up by 10 percent but shipments for industrial equipment fell by 7
percent. Steelmakers are hoping for new life in the industry in
response to an announcement that ultra-light steel cars, weighing
140 pounds less than a typical production vehicle, are being
developed as prototypes. The new body cost was reduced by about
$150. This may introduce some concerns for the aluminum industry
since aluminum's increased usage in car designs has begun to slow,
and it is currently three times as costly as steel.(33) Both nickel and aluminum have experienced strong price
fluctuations over the past few years. In the mid 1990's as the U.S. and world economies recovered from the global recession of
the early 1990's, demand for such alloys was improving and prices
had begun to recover. 1997 marked the second successive year of price concerns for
the nickel market. Supply problems played a major role in this. Cuba, East Europe, and the Commonwealth of Independent States
(CIS) increased their exports in 1997. China reported a
substantial export increase and Russia also increased exports. For 1998, Western production is anticipated to rise substantially
and modest increases are expected by Cuba, Eastern Europe, and the
CIS.(34) A small surplus is expected for 1998 after a much larger surplus the previous year. Nickel demand is tied to the stainless steel sector; 65% of
all primary nickel goes into stainless steel. There was a 9.3%
increase in Western stainless steel production in 1997, primarily
due to a strong global economy. Nickel production grew 5% in
1997, reaching 998 thousand metric tons (K mt). The Asian currency crisis has introduced some concerns in the
stainless steel market (and, therefore, the nickel market). Some
analysts forecast slower production rates at stainless steel
mills. Though there exist legitimate concerns, the nickel market
is expected to be close to balance during 1998. However, analysts
believe the Asian financial crisis will have an impact on nickel
and stainless-steel consumption for years to come.(35) The U.S. leads the world in national production, capacity,
and consumption of aluminum. For 1997, U.S. primary aluminum
production hit 3,600 K mt, a steady increase since 1994. The 1996
U.S. domestic production stood at 3,155 K mt while the nation's
demand for 1996 was about 5,030 K mt; the excess demand over
supply was met by imports (2,490 K mt) along with
recovery/recycling (3,315 K mt) and inventory reductions
(150 K mt).(36) Since 1993, some of the biggest import shipments
have come from Canada (62%), Russia (18%) and Venezuela (5%). It must be noted that primary production of aluminum will
continue to be impacted by the push to recycle. Recycling of
aluminum now accounts for 30% of the aluminum used worldwide (35%
in the U.S.) and this percentage is expected to rise in the coming
years. Due to the increase in aluminum recycling, prices have
been falling and inventories fluctuating since the mid to late
1980's.(37) For 1996, world primary aluminum demand remained at about
20 M mt; for the last 15 years, consumption of primary aluminum
has increased about 5 M mt, or about 2% per year.(38) Industry
analysts predict a strong consumption demand for lead and only
modest increases in mine and smelter production. With significant
reductions in worldwide metal stocks in the London Metals Exchange
(LME) and the U.S. Defense Logistic Agency (DLA) stockpile, prices
have increased significantly. In 1996, LME lead prices averaged
$0.35 per pound.(39) For 1997, the U.S. Geological Survey stated
that there was a 3% increase in world primary aluminum demand. The transportation sector continues to be the dominant U.S.
market for aluminum. Until 1995, the packaging industry had
dominated the demand market. Transportation constitutes about 32%
of domestic consumption; packaging, 26%. The transportation
market is expected to grow in foreign markets, particularly in
Western Europe and Japan.(40) Demand and production of aluminum is
expected to continue to increase at a slow, steady pace as long as
the world economy remains free of economic shocks. Lead mining smelting and consumption increased in 1996 and
were expected to continue to do so in 1997; preliminary 1997 data
found mine production at 2.133 M mt. Lead production is marked by
significant changes in primary and secondary smelting and
refining. U.S. secondary production now accounts for more than
70% of production (for the world, the share is 50%). Secondary
capacity continues to expand in the U.S.; in 1997, secondary
production was 2.875 M mt up from 2.717 M mt the previous year. Primary production in 1997 was 2.22 M mt. For 1998, experts
forecast the primary production market to hit 2.3 M mt, and the
secondary production market to be 2.959 M mt. Similarly, demand
for lead reached record levels in 1996, growing to 5.302 M mt.
This is slightly less than what was predicted to occur for 1997.(41) For 1998, total consumption is forecast to be 5.413 M mt. In general, the market for lead is anticipated to be free of
market fluctuations and shocks. The market is believed to be in
modest surplus. LME lead prices are expected to average 25 cents
per pound for 1998. In addition, the market is expected to remain
in surplus for the year. The market for other alloying metals is notably divided. Molybdenum's market for 1996 was characterized by market analysts
as one of consolidation and stability.(42) The alloy had been
overproduced in 1995; to meet the 1996 demand, there was a
resultant de-stocking (stocks were reduced by about 10%) and
overall molybdenum demand declined. 1996 molybdenum prices were
predominately stable through the year; however, significant
average market price drops were experienced in mid-year 1996. For 1997, the molybdenum market showed relatively healthy
demand and strong prices. Though there were significant price
fluctuations during the year, December prices were 15% higher than
the previous year. Much of the fluctuation was attributed to
international activity. Foreign exports and imports changed significantly during
1997. In 1996, China shipped 8% of the total annual exports but
for 1997 China's share rose to 25%.(43) The Asian financial crisis
of late 1997, which continues into 1998, has crippled Asian
demand. China is believed to be oversupplying the world market,
and some major U.S. mining operations, after experiencing
production problems, have increased production. The net effect
appears to be a glut in the world market with prices being pulled
down after a fairly strong start in 1998. Additionally, analysts
are watching for changes in supply within the Commonwealth of
Independent States; Armenia and Uzbekistan are investigating
production opportunities. In 1996, the U.S. consumed 6,547 mt of cobalt for use in
superalloys, magnets, chemical driers, cemented carbides, and
other uses. For 1997, consumption hit 7,080 mt, nearly 3% higher
than what was forecast. Analysts predict 1998 consumption to be
7,362 mt.(44) Growth is mainly attributed to the super-alloy and
catalyst areas. During 1996, cobalt experienced significant price shocks,
ending the year at $21.79 per pound. For high grade cobalt,
prices fluctuated widely during 1997; analysts saw price
differentials as large as $5.50/lb. For 1998, much of the same is
expected.(45) The 1997 market was reflective of the demand levels of the
aerospace industry and producer inventories.(46) World consumption
hit 27,100 mt in 1997 and is expected to reach 28,600 mt for 1998. World production for 1998 is expected to be 29,502 mt, more than a
5% gain from the previous year. Cobalt production is dependent on
nickel and copper production. In addition, about 20% of cobalt
consumption (1,500 tons) is recycled each year.(47) Copper and Precious Metals The market for copper and precious metals, such as platinum,
gold, and silver, is marked by great uncertainty and price
volatility. The market for precious metals is particular
vulnerable to spikes in the world economic cycle and to supply-side developments. The copper industry generates about $4.5 billion annually. 1997 copper production in the U.S. is estimated at 1,894 K mt;
1996 mine production stood at 1,839 K mt.(48) Approximately 35% of
the U.S. copper supply is derived from recovered/recycled copper
materials. 1997 production provided an oversupply of refined copper
because production outstripped demand. The 1996 market was nearly
in balance for the first 8 months of the year; copper prices
remained relative higher for the first 5 months of 1996.(49) However, the market was thrown into a state of high volatility
amid rumors of market manipulation. In June, it was revealed that
a Japanese company's head copper trader had amassed a $1.8 billion
loss from unauthorized trades over a 10-year period.(50) With this
news, prices fell sharply, by as much as 20% for some national
markets. In 1997, the prices were modestly higher on the LME. For 1998, modest oversupply is predicted. The continuing strength
of the world economy, despite Asian problems, is said to favor new
rises in consumption -- probably at a lower rate than in 1997.(51) However, the average 1998 price of copper may be lower than the
last year's. The gold and silver markets continue to be marred by
speculative demand spurs; consistent recovery and growth have been
difficult to achieve due to the uncertainty of U.S. buyers and
shifts in production in South Africa and Russia. Prices for gold
and silver fluctuated by as much as 17 and 25%, respectively,
during 1993. The metal is used for the manufacture of photographic
products (50% of the refined silver consumption), electrical and
electronic products (20%), electroplated ware, sterling ware and
jewelry (10%), and miscellaneous other uses (20%).(52) About 2,000
tons of silver are recovered annually. The U.S. ranks in the top
five silver producing countries with an estimated 64 million
ounces (M oz) in new mine production and 60 M oz in secondary
sources for 1997. Industrial demand for silver in 1996 grew about
3% from the previous year and was estimated to increase about 2%
in 1997.(53) Some analysts have contributed the level of
international silver demand to a surge in Indian silver demand
during the latter half of 1996; Indian imports increased by more
than 30% (to 100 M oz). Indian silver demand was fueled by rising
consumer demand for silverware and heavy weight silver jewelry (a
favored method of saving among rural Indian populations).(54) In
fact, India is the world's largest consumer of silver. U.S. silver production for 1996 of 814 million ounces was
valued at $300 million. During 1997, silver started off the year
at $4.74/oz (8% less than the previous year); by the end of the
year silver had reached $6.39/oz, a nine year high. For 1997,
total silver consumption was estimated at 820 M oz, and 840 M oz
is predicted to be the 1998 total consumption. In early 1998, the
total world silver supply for 1997 was estimated to be 570 M oz. In early February 1998, silver reached a 9.5 year high after
Warren Buffet disclosed his silver purchases.(55) Buffett bought
129.7 million ounces of silver for $858.6 million.(56) Prices went
as high as $7.50 per oz in early February 1998; some analysts even
suspect the price could reach $8/oz before year's end. The U.S. ranks second behind South Africa in national gold
production. Approximately 325 mt were produced in the US in 1997,
up from 320 mt in 1996; the 1997 production level was estimated to
be slightly below the records set in 1992 and 1993 (332.1 mt).(57) Gold production across the globe has fluctuated significantly
during the 1990's. In 1993, Russia began to cut back its gold
production, which had generated low prices in the global market
since 1990; in 1997, Russia's production was up by 15 mt to 135
mt. South Africa's production level was down in 1997 by 8 mt to
490 mt. World production hit 2,300 mt in 1997. As well on the demand side, hoarding and gold loans were
little more than half the previous year's level in 1996; the
decline in hoarding occurred primarily in the principal hoarding
markets of the Far East and Indian sub-continent.(58) However, the
use of gold in fabrication (e.g., jewelry, coinage, electronics,
etc.) increased by 0.7% in 1996. In late October 1997, the gold bullion price hit its lowest
level in 12 years.(59) 1997 prices were under pressure for more
than a year since the International Monetary Fund (IMF) announced
it would sell five million ounces of its reserves to fill a gap in
its fund for supporting the world's poorest countries. After that
announcement and sales by the Dutch, Australian, and Russian
central banks, the price has stagnated. Gold watchers had been concerned since July 1997 when gold
futures prices sank to a 12-year low. That drop was primarily
fueled by Australia (the third largest gold-producing nation),
which announced that it had sold 68% of its gold reserves to buy
U.S., Japanese, and German government bonds. Speculation was
rampant that other nations would follow. By mid November 1997, gold had broken the "psychological
benchmark" of $300 an ounce, a feat unaccomplished since March
1985.(60) There had been pressure for months based on concerns that
European central banks would start selling their reserves to
prepare for the creation of one currency under the European
Monetary Union. By early December, there had been some recovery but the price
continued to go down. Speculators were also concerned about the
effect of the Asian financial crisis.(61) By January 1998, gold had
hit an 18.5 year low of $281.80 per oz. Some good news for the gold industry came in the form of
record purchases for 1997. The World Gold Council reported that
demand hit 2,935 tons, a 9% increase from 1996. Developing
countries were primarily responsible, increasing their demand by
13% to 2,129 tons. Developed markets increased by only 1% to 806
tons. Overall gold demand is expected to be strong in 1998
despite the Asian financial crisis; analysts cite strong growth in
personal incomes in most of the important consuming countries as
factors for a strong 1998 demand.(62) Platinum group metals (PGMs) are considered to be precious
metals and industrial metals. Platinum prices fluctuated
significantly from 1996 to early 1997. Per ounce prices were off
by as much as $80 in early 1997 compared to the same time in
1996.(63) There has been some concerns about the PGM group. Platinum and palladium have been plagued with problems of
oversupply until 1997. South Africa during the early 1990's
strongly increased production, and Russia has sold large volumes
of its stockpiles of platinum, palladium, and rhodium. For 1998, analysts estimate that there will be a modest
oversupply of platinum despite drops in Russian exports.(64) South
Africa and the U.S. are anticipated to increase production
modestly. About 9% of the annual supply comes from scrap recovery
operations (426 K oz). Palladium hit an 18-year high in early 1998, when the metal
hit $232 an ounce.(65) By mid March 1998, the metal reached $275 an
ounce. There was widespread speculation on the Russian supply,
which accounted for 3.2 million ounces of the 5.65 million ounces
used in 1997. Palladium is used mainly in car catalysts to remove
noxious exhaust gases and is also used for high-grade electronics
and dentistry. Concerns about Russian supply, particularly after
Russian President Boris Yeltsin became seriously ill, pushed
prices to a new high.(66) By mid April 1998, Russian export delays
had pushed palladium to nearly $302 per oz.(67) By the end of
April, prices had risen to $390 per oz as delays continued in
Russian exports of palladium and platinum.(68)
Rhodium is the third most important PGM. In 1990, rhodium
was the most expensive metal in the world at $7,000 an ounce, but
this was short lived. It has a market structure in which supply
and demand have been in sync for the last 5 years but supply just
exceeded demand for 1997. This is expected to continue in 1998.(69) Nonmetal Mining, Including Stone and Sand and Gravel Nonmetal mine production is valued at more than $25.5
billion.(70) Included in this figure is the production of granite,
limestone, marble, slate, and other forms of crushed and broken or
dimension stone. Other lucrative commodities in the nonmetal
category include salt, clay, phosphate rock, and soda ash. Market
demand for these products tends not to vary greatly with
fluctuations in aggregate demand. Crushed stone is the leading
revenue generator with production valued in excess of $7 billion. Construction sand and gravel production is valued at about $4.3
billion.(71) Evaluating financial information for nonmetal mining
operations is particularly difficult. Financial data are
available only for relatively large mining operations, and these
often engage in a wide variety of business activities, of which
mining is typically only a small part. Many large mining firms
have financial interests in mines or mills of different
commodities, thereby making it difficult to evaluate the financial
aspects of any specific commodity. Publicly held firms are not
required to separate financial data for their subsidiaries in
their reports to the Securities and Exchange Commission, and
financial data are not available for most of the small mines
because they are not publicly owned. (About 98% of the small M/NM
mining operations are stone, sand and gravel, or other nonmetal
operations.) Sand and gravel and stone products, including cement, have a
cyclical demand structure. As a recession intensifies, demand for
these products sharply decreases. Some stability in the market
was achieved during 1993 and early 1994. Demand for stone,
particularly cement, is expected to grow by as much as 4.8%, and
demand for sand and gravel is expected to grow by as much as 2.3%. Natural aggregates consist of crushed stone and sand and
gravel. Crushed stone includes limestone and dolomite (71% of
U.S. production), granite (15%), taprock (8%) and miscellaneous
others (6%), including marble, calcareous marl, slate, shell, and
volcanic cinder, and scoria.(72) Aggregates are used in
construction and agriculture, as well as for chemical and
metallurgical processes. It is estimated that aggregates account
for more than two-thirds of the 3.3 billion metric tons of nonfuel
minerals produced in the U.S. Experts predict that sand and gravel will grow by about 0.5%
annually until 2020 and stone by 1%.(73) The production of recycled
aggregates, mostly from concrete and asphalt, has been increasing. That trend is expected to continue and increase, especially
considering the recent passage of the Intermodal Surface
Transportation Efficiency Act of 1998. Lime is produced at 115 plants in the U.S.; approximately
19.3 million tons were produced in 1997 at a value of about $1.13
billion. U.S. producers enjoy little competition from foreign
sources; experts estimate that net import reliance as a percentage
of apparent consumption is about 1%.(74) Lime and limestone are
substitutes in many uses such as agriculture, fluxing, and sulfur
removal. Limestone contains less reactive material and is much
less costly than lime. The U.S. ranks second behind China in lime
production and limestone reserves.(75) Germany is a distant third. Domestic salt production decreased slightly in 1997; total
production was estimated to be 41,700 K mt with a value of about
$960 million.(76) The chemical industry is a leading consumer,
totaling 42% of all salt sales. Highway use accounts for 34% of
U.S. demand. Because there are no economic substitutes or
alternatives, as well as there being a practically unlimited
supply, salt has one of the most stable supply structures among
nonmetals. Crude talc ore production for 1997 is estimated to be valued
at $33 million. There are 17 talc mines in the U.S., and they
produced about 1,060 M mt for 1997, a substantial increased from
the previous year. About 197 M mt are exported. The nonmetal is
used for various applications ranging from ceramics (34%), paper
(23%), paint (19%), roofing (5%), cosmetics (2%), and other
miscellaneous uses (12%).(77) The U.S. is the largest soda ash producer in the world with
its 1997 production reaching a record 11.7 million short tons
(M st), a 4.5% increase from the previous year.(78) Soda ash is
used in the production of glass, soap and detergents, paper, and
food. Both salt and soda ash have a fairly constant demand
structure due to the products' uses and the lack of suitable
substitutes. The U.S. exports roughly 40% of its total soda ash
sales. Shipments to Asia, Europe, and Mexico increased during
1997. U.S. production is dominated by a handful of producers
ranging from Solvay Minerals to FMC Corp, with FMC being the
largest. The largest consumer of soda ash is the glass industry, which
accounts for 49% of U.S. domestic sales. The increased use of
recycled glass has caused less demand for soda ash in the glass
market. Overall, the demand for soda ash is relatively strong; it
has applications in other areas including a new application in the
titanium dioxide industry. Consumption for flue gas scrubbing,
water treatment, and other uses remained constant during 1997. The outlook for the industry in 1998 is optimistic. However, it
should be noted that aggregate worldwide demand is subject to
regional economic effects, and generalizations are difficult to
make. The Asian financial crisis is expected to make predictions
about that region difficult. The lifting of European Union
tariffs is anticipated to aid exports, but problems may develop
with currency exchange rates. U.S. domestic consumption is
predicted to be healthy with modest growths predicted. The
industry operating rate is expected to increase to 96-97% of
effective capacity.(79) Phosphate rock, which is used primarily to manufacture
fertilizer, has an unusual market structure. U.S. production and
exports of phosphate rock have declined in recent years, and
imports from Morocco increased by 180% from 1991 to 1992. In
1997, however, the U.S. remained the world production leader, with
China and Morocco, respectively, being the next largest producers. Experts estimate that marketable production for 1997 was
42,590 K mt, notably lower than the previous year (45,400 K mt). Domestic consumption was estimated to be 43,190 K mt.(80) International production continued to put U.S. domestic production
in a tightening position. The U.S. is the world's largest
consumer of phosphate rock, using 30% of all rock produced
worldwide. Analysts note that major U.S. fertilizer producers
continue to investigate overseas opportunities. In addition,
Israel, Jordan, and Thailand had significant production expansion
activities during 1997. Other countries, such as South Africa,
Tunisia, Syria, and Senegal, have also expanded capacity in recent
years.(81) The remaining nonmetal commodities, which include boron
fluorspar, oil shale, and other minerals are typically produced by
a small number of mining operations. Despite this fact, annual
production of pumice, perlite, vermiculite, and some others is
valued at the tens of millions of dollars for each product. Overall, the production from nonmetal mining increased from
1991 to 1996; 1996 estimates put capacity utilization for stone
and earth minerals at about 97%.(82) The net result for the
nonmetal mining industry may be higher demand and increased prices
for stone and various related commodities. III. BENEFITS
INTRODUCTION Summary Although the existing training programs have contributed to
the reduction in the number of miner fatalities and injuries, MSHA
has determined that these numbers can be reduced further through
changes that will improve training, making it more responsive to
the needs of the industry and more effective for individual
miners. This chapter of the final REA contains MSHA's estimate of
the numbers of fatalities and injuries that will be prevented by
the final rule, and a discussion of other qualitative and
quantitative benefits. Methodology MSHA reviewed its accident and injury data for the 8-year
period of 1990 through 1997 as the basis for determining the
numbers of fatalities and injuries occurring to supervisors and to
newly-employed experienced miners (NEEMs). In order to compare supervisor and experienced miner
fatalities with those in the general mining population, MSHA
estimated the numbers of supervisors and NEEMs from 1986
demographic data on the coal and M/NM mining workforces collected
by the former Bureau of Mines.(83) These data contain the
percentage of miners by job category and by length of mining
experience by commodity, location, and mine size. MSHA used this
survey data because it is the most comprehensive set of data
currently available. MSHA also used data provided by MSHA's Division of Mining
Information Systems (MIS) to determine the current numbers of
mines and miners by commodity, location, and mine size. Finally,
MSHA assumed that the past history of mining fatalities can be
used as a basis to project future numbers of mining fatalities. Consequently, the 1990 through 1997 fatality data are averaged to
provide an estimate of the annual number of future mining
fatalities. DISCUSSION OF COMMENTS MSHA has reviewed and, where appropriate, has included
information presented in the comments it received on its
Preliminary Regulatory Impact Analysis and Regulatory Flexibility
Analysis: Proposed Rule on Part 48 Training (PRIA), August
1991.(84) Specifically, MSHA received comments from the mining
industry addressing the Agency's conclusion that supervisors and
NEEMs have higher than expected fatality rates. One commenter
stated that professional managerial personnel with infrequent
exposure to mining hazards "do not suffer disproportionate
fatality rates" and, in fact, may have "extraordinarily low injury
and fatality rates." This commenter stated further that MSHA
regulations exempt all State-certified supervisory personnel, in
both coal and M/NM. MSHA's analysis does not delineate between classes of
managerial responsibility based on frequency of exposure. The
reasons for this are: (1) MSHA's fatality abstracts do not
provide enough information to determine a supervisor's frequency
of exposure; and (2) these abstracts show that all job categories
of supervisors have experienced fatalities, which means that all
job categories of supervisors have been exposed to mining hazards. In this analysis, MSHA compares the percentage of fatalities among
coal supervisors to the percentage of fatalities among
nonsupervisory miners and finds that supervisors in coal
operations experience about 16% more fatalities than expected. If
the number of supervisor fatalities were attributed to a smaller
portion of supervisors, as commenters suggested, then the number
of excess fatalities relative to the number of expected fatalities
would increase. Another commenter stated that attributing a lack of part 48
training to the higher than expected fatality rate among
underground coal supervisors or NEEMs is "too simplistic." This
commenter contends that most mines already provide supervisors
with some or all of the required part 48 training. Commenters submitted alternative explanations as to why
supervisors and NEEMs have a fatality rate higher than other
categories of miners. One commenter stated that many supervisors
often do not use the best judgment in every situation; neither do
they use necessary safety equipment in all cases. Further this
commenter stated that the higher fatality rate for NEEMs was due,
in part, to the fact that some miners were using techniques
learned from previous mining experience which might not be
appropriate to handle a different mining condition or situation. In both the PRIA and this REA, MSHA estimates that about 20%
of the supervisors at small underground coal mines, 40% of the
supervisors at large underground coal mines, and 75% of the
supervisors at surface coal mines receive or conduct part 48
annual refresher training. All supervisors at M/NM mines are
required to receive part 48 training. Furthermore, in the PRIA,
the Agency acknowledged that training, in and of itself, does not
prevent accidents. The Agency contends, however, that training
contributes to a reduction in accidents, injuries, illnesses, and
fatalities by fostering safe work practices, increasing job skills, and enhancing hazard awareness and prevention. The PRIA
stated that compliance with the revised part 48 rule would help
prevent about 50% of the excess supervisory fatalities and 20% of
the excess NEEM fatalities. In the absence of any comments or data demonstrating a
greater or lesser impact, MSHA projects, based on data from 1990-1997, that compliance with this final rule will help reduce the
greater than expected number of supervisory and NEEM fatalities
for NEEMs by 4 fatalities per year (0.5 supervisor and 3.5 NEEM
fatalities). MSHA contends that effective training, tailored to the needs
of individual miners and supervisors, together with reinforcement
of management's policies, procedures, and work practices affecting
miners' safety and health, can have a substantial impact on
eliminating the unsafe behaviors and work practices described by
commenters. Another commenter stated that "supervisors are generally
exposed to the same hazards as are miners." In addition, this
commenter stated that "supervisors direct the work activities of
miners and this has an impact on the miners' health and safety
environment. In that regard, supervisors should have increased safety training beyond that required" for miners in part 48 and
in other standards under 30 CFR. As stated by some commenters, supervisors and NEEMs may be
exposed to higher levels of risks because of their previous job
experience and their perception of what is expected from them in
their job. MSHA's underlying basis for the final rule, however,
is that supervisors, NEEMs, and all other miners are generally
exposed to the same types of mining hazards. Thus, MSHA expects
that the percentage of fatalities and injuries for supervisors,
for NEEMs, and for all other miners should be similar, if not
equal, to their percentage in the population. If the fatality rates were to differ among these groups,
particularly if supervisors and NEEMs were to have a higher
percentage of fatalities or injuries than other miners, part of
the explanation for these differences may be the differing
frequency of exposure to situations involving higher levels of
risk. Part of the explanation, however, also is the differing
amounts and types of experience and training received by these
groups. In addition, NEEMs may have a lack of familiarity with
the specific mine environment and the mine's working and safety
procedures. The disproportionate number of fatalities among
supervisors and NEEMs suggests that more effective training is
necessary to reduce the number of fatalities in these high risk
groups. It is generally accepted that effective training of
workers, regardless of industry, contributes to an increased
acceptance of safe work practices and a reduction in accidents,
injuries, and illnesses. The Congress recognized the efficacy of
training in the Federal Mine Safety and Health Act of 1977 (Mine
Act) by requiring miner training. POPULATION AT RISK The population-at-risk are those coal supervisors who do not
receive the part 48 training and those NEEMs who do not receive
the necessary level of mine-specific training. MSHA estimates
that there are about 5,900 coal supervisors and about 17,240 NEEMs
(6,910 in coal and 10,330 in M/NM) who will be affected by the
changes in the part 48 requirements. BENEFITS
Definition of Miner Under existing§§ 48.2(a)(1)(ii) and 48.22(a)(1)(ii),
supervisory personnel subject to MSHA-approved State-certification
requirements are not considered to be "miners" and, therefore, are
not required to receive part 48 training. The final rule removes
the exemption for these supervisors, thereby requiring them to
receive part 48 training. The final rule will affect coal mine
supervisors, particularly underground coal supervisors who are
subject to State-certification requirements recognized by Coal
Mine Safety and Health. There are few State-certification
programs for surface coal supervisors. Because the safety
regulations for coal mines already require some supervisory
training that duplicates courses in part 48 annual refresher
training, MSHA estimates that affected supervisors must receive an average of 5 additional hours of training annually as a result
of this final rule. MSHA expects that the final rule will have a
negligible effect on M/NM supervisors, because Metal and Nonmetal
Mine Safety and Health does not recognize State-certification, and
all M/NM supervisors are required to receive part 48 training. In Table III-1, MSHA presents the numbers of coal supervisors
affected by work location and size of the operation, including
independent contractors. MSHA used data from the former Bureau of
Mines' survey, "Characterization of the 1986 Coal Mining
Workforce,"(85) to estimate the distribution of these supervisors
between surface and underground operations. TABLE III-1:
Coal Mine* Supervisory Mine Employment Data Location &
Size # mines # miners # superv (%) # superv
/mine # superv
needing add'l
training (%) <20 miners UG 1,574 8,464 1,822 (21.5%) 1.2 1,458 (80.0%) 20 miners UG 628 49,177 4,296 (8.7%) 6.8 2,577 (60.0%) Total UG 2,202 57,641 6,118 (10.6%) 2.8 4,035 (66.0%) <20 miners SF 3,498 16,496 3,552 (21.5%) 1.0 888 (25.0%) 20 miners SF 755 44,780 3,911 (8.7%) 5.2 978 (25.0%) Total SF 4,253 61,276 7,463 (12.2%) 1.8 1,866 (25.0%) Total <20 5,072 24,960 5,374 (21.5%) 1.1 2,346 (43.7%) Total 20 1,383 93,957 8,207 (8.7%) 5.9 3,555 (43.3%) Total 6,455 118,917 13,581 (11.4%) 2.1 5901 (43.5%) * Includes contractors. Excludes office workers. Table III-2 contains the total number of coal supervisory and
nonsupervisory fatalities for the period 1990 through 1997. Based
on these data, it is evident that underground coal supervisors
experience a disproportionate number of fatalities. From 1990
through 1997, 50 coal supervisors (12.9% of all coal fatalities)
were killed. Of these, 35 occurred underground. Had the
percentage of fatalities been the same for coal supervisors as for
non-supervisory coal miners, MSHA projects that 43 coal
supervisors (23 of which are underground coal supervisors), rather
than 50, would have died during this time period. The average of
these higher than expected fatalities is about 0.9 fatalities per
year. TABLE III-2:
Coal Supervisory and Nonsupervisory Fatalities*
(1990-1997) Mine
Type # non-superv # non-superv fatals
(% of miners) #
superv # superv fatals
expected # superv
fatals UG COAL 51,523 197(0.38%) 6,118 23 (0.38%) 35 SF COAL 53,813 143(0.27%) 7,463 20 (0.27%) 15 ALL COAL 105,336 340(0.32%) 13,581 43 (0.32%) 50 * Discrepancies due to rounding. In analyzing these numbers, another point of interest is that
the discrepancy between the actual and the expected number of
supervisor fatalities is greater for underground coal supervisors
and less for surface coal supervisors. This is the result that
would be predicted given that about 66% of underground coal
supervisors are not currently required to receive the MSHA part 48
miner training, whereas only about 25% of surface coal supervisors
are not required to receive such training. These data are
consistent with MSHA's judgment that the lack of part 48 training
for State-certified coal supervisors contributes, in part, to the
increase in coal supervisor fatalities. To some extent,
supervisors may be at greater risk than miners because supervisors
are constantly moving around in the active mining areas; are
called upon to handle problems or unusually hazardous situations;
and, because they perform many different mining-related tasks and
are often exposed to a greater variety of potential hazards.(86) MSHA does not contend that training in and of itself would
eliminate all supervisor fatalities. On the basis of its
experience, MSHA anticipates that implementation of this final
rule will help reduce the excess number of supervisory fatalities
by about 50% (0.5 fatalities) per year, and also will contribute
to reducing the overall frequency and severity of accidents. Experienced Miner Training The final rule will modify the definition of "experienced
miner" to remove an existing restriction on miners whose mining
experience may be extensive but not recent. Under the existing
rule, a newly-hired person is required to receive new miner
training if that person had not received new miner training within
the preceding 12 months; or had not accumulated at least 12 months
of mining experience during the preceding 3 years. Under the
final rule, once a miner has achieved experienced miner status,
that miner will always be an "experienced miner" for training
purposes. An experienced miner will be: (1) a miner who has
completed new miner training within the past 3 years and has at
least 12 months of mining experience; (2) a supervisor who is
employed at a mine on the publication date of this rule; and (3)
any miner who is currently considered by the previous rule to be
an "experienced miner" on the date of this rule. MSHA recognizes
that some independent contractors may have difficulty accumulating
the required 12 months of mining experience. The preamble to this
final rule, therefore, explains MSHA's policy which allows certain
independent contractors credit for time worked in environments
similar to mining in acquiring this 12 months of mining
experience. The final rule also includes additional experienced miner
training requirements so as to assure relevant, cost-effective
training for NEEMs (including both those who have recent
experience, as well as those who do not) prior to their beginning
work at a new mine. MSHA used the former Bureau of Mines' 1986 mining workforce
data as the basis for the percentages to estimate the current
number of NEEMs.(87) Although the total population of miners has
been decreasing over the past decade, MSHA believes that these
1986 percentages provide reasonable estimates of the experience
distribution among the current mining workforce. MSHA anticipates
that, with the recent passage of the Intermodal Surface
Transportation Efficiency Act of 1998, there may be a future
influx of NEEMs in certain segments of the mining industry. Based on the former Bureau of Mines' data, excluding office
workers and supervisors, MSHA calculated that about 5.3% of miners
have had more than 1 year of total mining experience but less than
1 year of experience at the mine where the miner is currently
employed. The former Bureau of Mines' data, however, presented
this workforce information by work location (i.e., underground,
surface, or other) and by mine size, but not by both in the same
table. The percentage of NEEMs by mine size is greater in small
mines (about 11.5% for coal and 5.8% for M/NM) than in large mines
(about 4.3% for coal and 4.6% for M/NM). The percentage of NEEMs
is slightly larger in coal mining (5.8%) than it is in M/NM mining
(5.0%). Multiplying these percentages of NEEMs in large mines and
small mines by the numbers of miners in surface and underground
mines, MSHA obtained an estimate of the distribution of NEEMs in
surface and underground mines by mine size. In Table III-3, MSHA presents current estimates of employment
data for NEEMs by mine location and size. MSHA did not determine
fatality data by mine size for the period of time covered because
fluctuations in employment from year-to-year can change a mine's
size category. TABLE III-3:
Newly-Employed Experienced Miner* (NEEMs) Employment Data Location & Size # miners* # NEEMs* (% of miners) COAL <20 employees UG 8,464 976 (11.5%) COAL 20 employees UG 49,177 2,109 (4.3%) COAL <20 employees SF 16,496 1,903 (11.5%) COAL 20 employees SF 44,780 1,921 (4.3%) Subtotal COAL 118,917 6,909 (5.8%) M/NM <20 employees UG 2,931 170 (5.8%) M/NM 20 employees UG 18,526 846 (4.6%) M/NM <20 employees SF 64,549 3,752 (5.8%) M/NM 20 employees SF 121,724 5,562 (4.6%) Subtotal M/NM 207,730 10,330 (5.0%) TOTAL 326,647 17,240 (5.3%) * Includes contractors, excludes office workers. Discrepancies due to rounding. Table III-4 presents expected and actual fatality data for
NEEMs compared to fatality data for other miners. The data in
Table III-4 support MSHA's contention that NEEMs incur a
disproportionately large number of fatalities. The percentage of fatalities between 1990 and 1997 for miners
who had more than 1 year of total mining experience, but less than
1 year at the mine where the fatality occurred, is greater than
the percentage of fatalities for all other miners. During that
time period, these newly-employed experienced miners (NEEMS)
incurred 174, or 22%, of the 793 fatalities even though NEEMs
constitute only about 5.3% of the miner population. Had the
percentage of fatalities been the same for NEEMs as the percentage
of fatalities for other miners, including new miners and
supervisors, MSHA projects that 34 NEEMs, rather than 174, would
have died during this time period. The average of the 140 higher
than expected fatalities is about 17.5 per year. TABLE III-4:
Expected and Actual Fatality Data for Newly-Employed
Experienced Miners (NEEMs) (1990-1997) Location
& Size # NON-NEEM* # NON-NEEM fatals
(% of miners)* #
NEEMs* # NEEMs fatals
expected # NEEMs
fatals COAL 112,008 290(0.26%) 6,909 18(0.26%) 100 M/NM 197,400 329(0.17%) 10,330 17(0.17%) 74 TOTAL 309,407 619(0.20%) 17,240 34(0.20%) 174 * Includes contractors, excludes office workers and supervisors. Discrepancies due to rounding. The final rule includes additional site-specific training
requirements to address certain hazards in the mine environment,
and the procedures to avoid these particular hazards. These new
courses are fundamental for experienced miners who are new to a
mine. The disproportionate number of fatalities among NEEMs,
combined with their relative lack of familiarity with the specific
mine environment and the mine's working and safety procedures, as
well as their differing amounts and types of experience, convinces
MSHA that more effective training is necessary to reduce the
number of fatalities in this high risk group. In evaluating the potential effectiveness of these additional
training requirements on reducing the number of NEEM fatalities,
MSHA relied upon its experience with training programs in general. MSHA concluded that programs designed to meet the specific
training needs of the individuals being trained are more effective
than generic, introductory programs designed for persons with no
relevant experience. On the basis of its experience, MSHA
anticipates that implementation of this requirement for additional
training for NEEMs will help reduce the total number of excess
NEEM fatalities (17.5 fatalities per year) by 20%, or 3.5 fewer
NEEM fatalities per year. Significant Changes in the Mine Environment The final rule adds a new provision that requires the mine
operator to instruct miners about significant changes in the mine
environment that could affect the miners' safety or health. This
training applies to those miners who return to work after an
absence of less than one year and fills the need for more
immediate information about potentially significant hazards that
develop in the mine environment while the miner is absent and
which may not be immediately obvious to the returning miner. This
training does not require a certified or qualified instructor, nor
does it require the operator to make a record of such training. The primary benefit to the returning miner is knowledge of
changes in the mining environment that are not immediately obvious
and which could adversely impact the miner's safety or health or
contribute to an accident. Knowledge of the hazard is fundamental
to taking precautions against such hazard. MSHA also expects that
this requirement will encourage the mine operator to focus
attention on evaluating the mine environment and identifying such
changes. SUMMARY MSHA believes that, based on the data from 1990 through 1997,
compliance with the requirements of this final training rule will
reduce the number of fatalities and injuries to supervisors and
NEEMs. MSHA estimates that about four fatalities (0.5 supervisors
and 3.5 NEEMs) will be prevented per year. Although not
quantified, MSHA expects that better trained supervisors will have
an overall impact on reducing mining accidents, injuries,
fatalities, and illnesses. IV. COST OF COMPLIANCE INTRODUCTION This chapter presents MSHA's analysis of the estimated
incremental compliance costs associated with this final rule. The
final rule addresses: (1) definition of "miner;" (2) definition
of "experienced miner;" (3) experienced miner training courses;
(4) training NEEMs returning to mining after an absence of 5 years
or more; and (5) training experienced miners returning to work
following an absence of 12 months or less. MSHA describes the data sources and methodology used for
estimating the compliance cost, and provides both a summary and a
standard-by-standard analysis of these estimates. DATA SOURCES MSHA relied upon Western Mining Engineering's Mining Cost
Service for its estimates of wage rates and benefits.(88) MSHA
determined the number of mines, miners, contractors, and
contractor employees using data from MSHA's Office of Program
Evaluation and Information Resources (PEIR).(89) For the purpose of
this analysis, MSHA included independent contractors and their
employees in the numbers of mines and miners. In addition, MSHA
based its estimates of the percentage of miners affected by each
revision and specific mining practices on MSHA's PRIA, August
1991. That PRIA is part of the public record and was available
for public review and comment. MSHA reviewed these comments and,
where appropriate, used the information in this final REA. METHODOLOGY
This section describes the methodology used to estimate the
incremental compliance costs. This description includes the
baseline from which the compliance costs are estimated, the types
of costs that are estimated, and the labor compensation rates used
to estimate the unit costs. Baseline MSHA estimated the incremental compliance costs of this final
rule using as its baseline full compliance with the existing
training regulations and current industry practices. MSHA
assessed the potential economic impact on the mining industry
based on changes to current mining industry practices that will be
required to conform with the final rule. Types of Cost MSHA estimated the incremental one-time and annually-
recurring costs of full compliance with each provision of the
final rule, as applicable. One-time costs are expenditures that
are incurred once, usually during the first year of compliance
with the new rule. For this rule, one-time costs are expenditures
to develop a new training course and expenditures to modify an
existing training program. Annually-recurring costs are those
operating expenditures incurred every year. The initial cost is
the one-time cost plus the first year's annually-recurring cost. MSHA used an hourly compensation rate, including non-wage
benefits, of $26 for a coal miner; $23 for a M/NM miner; $43 for a
coal supervisor or instructor; and $36 for a M/NM supervisor or
instructor. These figures do not reflect shift differentials or
overtime pay. Cost Of Compliance Summary Table IV-1 shows the costs of full compliance with the final
rule for both coal and M/NM mines. TABLE IV-1:
Compliance Cost* Summary by Provision for Coal and
M/NM Mines PROVISION COAL M/NM ALL MINES One-Time Annually
Recurring One-Time Annually
Recurring Supervisors as
"Miners" $0 $1,268,709 $0 $0 $0 $1,268,709 Redefine "Exp'd
Miner" $0 ($267,443) $0 ($274,309) $0 ($541,752) Add'l "Exp'd Miner"
Training $337,034 $651,932 $581,148 $820,581 $918,182 $1,472,513 Training "Exp'd
Miner" absent >5
yrs $0 ($41,580) $0 ($41,758) $0 ($83,338)
Changes in Mine
Environ $0 $164,105 $0 $245,121 $0 $409,227
TOTAL $337,034 $1,817,304 $501,148 $791,393 $918,182 $2,608,697 * Discrepancies due to rounding. SECTION-BY-SECTION COSTS §§ 48.2 and 48.22: Definitions State-certified Supervisors as "Miners" Under the existing rule, supervisors who are covered by an
MSHA-approved State-certification program had been excluded from
the definition of "miner" and, therefore, were not required to
receive part 48 miner training. The final rule, however, removes
this exclusion so that all supervisors are required to receive
miner training. This change in the training regulation affects the
supervisors in those States that currently have MSHA-approved
certification programs. Whereas some States require an applicant
for certification to pass an examination, a review of State
Certification and Qualification Programs shows that there are no
State requirements for periodic recertification of supervisors.(90)
These certification programs are primarily targeted at underground
coal mine supervisors, although there are programs for surface
coal mine supervisors. Coal Mine Safety and Health recognizes State-certification of
supervisors for the purposes of training. As a result, most
underground coal supervisors and a few surface coal supervisors
currently are not considered to be "miners" and, thus, are not
required to receive miner training. Some coal mine operators
voluntarily give part 48 miner training to their State-certified
supervisors. As determined in the PRIA to the proposed rule,(91)
MSHA estimates that mine operators currently provide this training
to about 20% of the supervisors in small underground coal mines,
40% of the supervisors in large underground coal mines, and 75% of
the supervisors in both small and large surface coal mines and
preparation plants. Table III-1, in the benefits section of this REA, shows the
estimated number of all coal mine supervisors and the number of
supervisors that will require miner training as a result of the
final rule. Numbers are shown for both small and large, and
underground and surface operations. Of the estimated 13,581 coal
mine supervisors, about 5,901 (44%) will require additional
training. Of these 5,901 supervisors, about 4,035 (66%) work at
underground coal mines. MSHA determined that the requirement for these supervisors to
take part 48 training will result in an increase in annual costs. Additional instructor time to train the supervisors will be
negligible because the supervisors will usually take this training
in classes with other miners. There will be a cost for an
additional 5 hours that these supervisors will spend in training
each year. This 5 hours includes the time (about 3 minutes, or
0.05 hour) for the instructor to fill out a certification of
training for each supervisor. MSHA estimates that, although they
currently are excluded from the definition of "miner," these
supervisors already receive about 3 hours of the training required
for annual refresher training. For the purpose of this analysis,
MSHA expects that the State-certified supervisors receive task and
hazard training so that they can properly supervise miners. Table IV-2 indicates the annual incremental cost to train
State-certified supervisors who were formerly excluded from
part 48 training. TABLE IV-2: Costs* to Remove Exemption for State-Certified Coal
Supervisors in Definition of Miner Location/Size Number Needing Training Annual Cost UG Small 1,458 $313,442 UG Large 2,577 $554,124 UG Total 4,035 $867,566 SF Small 888 $190,902 SF Large 978 $210,241 SF Total 1,866 $401,143 Total Small 2,346 $504,344 Total Large 3,555 $764,365 TOTAL 5,901 $1,268,709 *Discrepancies due to rounding. Metal and Nonmetal Mine Safety and Health does not recognize State-certification of supervisors for the purposes of training. As a result, all M/NM supervisors are currently considered to be
"miners" and are not affected by the exclusion of State-certified
supervisors in the definition of "miner" in part 48. MSHA
concluded that no M/NM supervisor will need to receive additional
training as a consequence of removing the exclusion for State-certified supervisors from the definition of "miner." Requirements for "Experienced Miner" Status The existing rule defines an "experienced miner" as one: who
has received training acceptable to MSHA within the preceding
12 months; or who has had at least 12 months experience working in
an underground or surface mine, as appropriate, during the previous 3 years; or who has received the training for a new miner
within the preceding 12 months; or who was employed as a miner on
October 13, 1978, the effective date of the existing rule. Unlike
the proposed rule which referred to an "experienced miner" as one
who has accumulated at least a year of experience in either
underground or surface mining,(92) this final rule defines an
"experienced miner" as one who has accumulated 12 months of mining
experience and has completed new miner training. As discussed in the August 1991 PRIA,(93) MSHA used the former
Bureau of Mines' 1986 demographic survey of the mining workforce(94)
for estimating miners' experience, both the number of years at
their current company and total mining experience, by commodity
and mine size. Based on these data, MSHA estimates that 11.5% of
miners at small coal mines, 4.3% of miners at large coal mines,
5.8% of miners at small M/NM mines, and 4.6% of miners at large
M/NM mines are NEEMs. Of this number, MSHA estimates that about
5% return to mining after an absence of 3 to 5 years and about 1%
return after an absence of 5 or more years. Table IV-3 lists the
numbers of NEEMs categorized by their length of absence from
TABLE IV-3:
Numbers of Newly-Employed Experienced Miners* (NEEMs) MINE TYPE Absent <3 yr Absent >3 yr Absent >5 yr Total COAL UG small <20 918 49 10 976 UG large >20 1,983 105 21 2,109 SF small <20 1,789 95 19 1,903 SF large >20 1,806 96 19 1,921 All Coal 6,495 345 69 6,909 M/NM UG small <20 160 9 2 170 UG large >20 796 42 8 846 SF small <20 3,527 188 38 3,752 SF large >20 5,228 278 56 5,562 All M/NM 9,711 517 103 10,330 ALL MINES 16,205 862 172 17,240 * Discrepancies due to rounding. The change in the definition of "experienced miner" removes a
potential burden on experienced miners who had not worked
12 months in a mine out of the previous 3 years or who had missed
a training deadline, and, as a result, had been re-classified as a
"new miner." A "new miner" classification now requires the
experienced miner to retake either the 24 or 40 hours of "new
miner" training, as appropriate, which is designed for persons
without prior mining experience. The final rule eliminates the existing lapse in "experienced
miner" status after an absence of 3 years. Experienced miners
returning to mining after an absence of 3 years will no longer
have to take "new miner" training, but will have to take the
expanded "experienced miner" training. Consequently, the revised
definition will generate a cost savings in current expenditures
for "new miner" training. Table IV-4 lists the annual compliance cost savings resulting
from returning experienced miners taking "experienced miner"
training rather that "new miner" training. TABLE IV-4:
Cost Savings* Related to the Change in the Definition
of "Experienced Miner" MINE TYPE Absent >3 yr Absent >5 yr Total COAL UG small ($43,154) ($8,123) ($51,277) UG large ($93,237) ($17,550) ($110,787) SF small ($44,526) ($7,916) ($52,442) SF large ($44,947) ($7,991) ($52,938) ALL COAL ($225,863) ($41,580) ($267,443) M/NM UG small ($6,661) ($1,254) ($7,915) UG large ($33,097) ($6,230) ($39,327) SF small ($77,666) ($13,807) ($91,473) SF large ($115,127) ($20,467) ($135,594) ALL M/NM ($232,551) ($41,758) ($274,309) TOTAL ($458,414) ($83,338) ($541,752) * Discrepancies due to rounding. MSHA estimates that "experienced miner" training will require
an average of 6 hours, including the four new courses added in
final§§ 48.6 and 48.26. Mine operators, therefore, will realize
a reduction of 34 hours from "new miner" training for underground
miners (relative to the current requirement of 40 hours) and a
reduction of 18 hours for surface miners (relative to the current
requirement of 24 hours), for those miners returning to mining
after an absence of 3 years, but within 5 years. Experienced
miners returning to mining after an absence of 5 years or more
will have to take a minimum of 8 hours of experienced miner
training. This is a reduction of 32 hours of "new miner" training
for underground miners and a reduction of 16 hours for surface
miners. §§ 48.5/48.25 Training of New Miners Paragraph (d) is clarified and updated to allow "new miner"
training to be valid for 36 months. With this change, a newly-employed miner can take "experienced miner" training even if that
miner has not accumulated the 12 months of mining experience to
attain experienced miner status. As MSHA's intent remains the
same, there are no incremental compliance costs associated with
this provision. Intermittent mine operators and independent
contractors, however, by the nature of their operations, may
realize an additional cost savings because this added flexibility
will allow more miners to attain experienced miner status. §§ 48.6/48.26 Experienced Miner Training In paragraph (a), the final rule clarifies MSHA's intention
that experienced miner training apply to experienced miners who
are: (1) newly-employed by the operator; (2) transferred to the
mine; (3) experienced underground miners transferred from surface
to underground or experienced surface miners transferred from
underground to surface; or (4) returning to the mine after lay-off, work stoppage, illness, or injury resulting in an absence of
more than 12 months. Development of Training Course In paragraph (b), the final rule clarifies several existing
courses and adds four new courses to "experienced miner" training. With respect to the one-time cost to develop training courses,
MSHA determined that there are no developmental costs for three of
the four additional "experienced miner" training courses because
they are existing courses required in "new miner" training which
can be modified to be more relevant to experienced miners. MSHA
expects that mine operators will tailor course materials for the
prevention of accidents, health, and health and safety aspects of
the task to which the experienced miner is assigned. The time to
modify these existing courses and to develop the course "emergency
medical procedures" will average about 1 hour of a supervisor's
time in small mines and about 2 hours in large mines. Table IV-5
summarizes the additional one-time costs for course development. TABLE IV-5:
One-Time Costs* for Course Development for
"Experienced Miner" Training Mine Type # Mines Cost # Mines Cost Total Cost COAL M/NM ALL MINES UG small 1,574 $67,682 540 $19,440 $87,122 UG large 628 $54,008 162 $11,664 $65,672 SF small 3,498 $150,414 11,699 $421,164 $571,578 SF large 755 $64,930 1,790 $128,880 $193,810 All Small 5,072 $218,096 12,239 $440,604 $658,700 All Large 1,383 $118,938 1,952 $140,544 $259,482 Total 6,455 $337,034 14,191 $581,148 $918,182 * Discrepancies due to rounding. Additional "Experienced Miner" Training Costs	Although paragraph (d) is a new provision that requires the
mine operator to vary the time spent on instruction of individual
subjects based on the training needs of the experienced miners,
the additional courses required will increase the time spent on
experienced miner training. MSHA estimates that experienced miner
training will take an average of 2 additional hours because of
these changes. MSHA also included the cost of the additional time
spent by the instructor, generally a mine supervisor, in covering
the new courses. Based on a review of the August 1991 PRIA and additional
information received, MSHA revised the assumptions used in the
PRIA which stated that a small mine would provide this training
about once a year and a large mine would provide this training
about twice a year. In this analysis, MSHA assumed that small
mines typically hire one miner at a time and, therefore, will
provide training frequently throughout the year as each new miner
is hired. Also, MSHA assumed that large mines typically hire more
than one miner at a time and, consequently, large mines will
provide a training class for each group of miners that is hired. For the purpose of this analysis MSHA estimated that large mines
(>20 miners) hire an average of four miners at a time. Table IV-6 presents MSHA's estimated cost of both the
instructor's and the experienced miner's labor time for this
additional training. MSHA estimates that the incremental expense
for supplies and course materials is negligible. TABLE IV-6:
Estimated Annual Additional Costs* for "Experienced
Miner" Training Mine Type Miners Instructors Total COAL UG small $47,723 $78,926 $131,289 UG large $103,109 $42,632 $142,269 SF small $93,010 $153,824 $247,644 SF large $93,890 $38,820 $137,599 All Small $140,732 $232,750 $378,933 All Large $196,999 $81,451 $279,868 All Coal $337,731 $314,201 $651,932 M/NM UG small $7,367 $11,530 $18,826 UG large $36,601 $14,322 $52,267 SF small $162,235 $253,934 $416,240 SF large $240,487 $94,104 $333,247 All Small $169,602 $265,464 $435,066 All Large $277,088 $108,426 $385,514 All M/NM $446,691 $373,890 $820,581 TOTAL $784,422 $688,091 $1,472,513 * Discrepancies due to rounding. Significant Changes in the Mine Affecting Safety and Health Paragraph (e) is a new requirement. It requires experienced
miners returning to the same mine following an absence of
12 months or less to receive instruction about any significant
changes to the mine environment that have occurred while the miner
was away that could affect the miner's safety or health. For the
purpose of this analysis, MSHA estimates that 20% of miners, who
return to work following an absence of 12 months or less, will
need instruction to inform them of new, significant safety and
health hazards in their workplace. MSHA estimates further that
this instruction will be provided orally by the miner's supervisor
and one-on-one with the miner. MSHA estimates that it will take
about 6 minutes (0.1 hour) on the average for this instruction. Table IV-7 summarizes this cost. TABLE IV-7:
Cost* for Instruction on Significant Changes in the
Mine Affecting Safety and Health Mine Type # Miners &
supervrs Cost # Miners &
supervrs Cost Total Cost COAL M/NM ALL MINES UG small 1,693 $11,680 586 $3,459 $15,139 UG large 9,835 $67,864 3,705 $21,861 $89,725 SF small 3,299 $22,764 12,910 $76,168 $98,932 SF large 8,956 $61,796 24,345 $143,634 $205,431 All Small 4,992 $34,445 13,496 $79,626 $114,071 All Large 18,791 $129,661 28,050 $165,495 $295,156 Total 23,783 $164,105 41,546 $245,121 $409,227 * Discrepancies due to rounding. §§ 48.8/48.28 Annual Refresher Training of Supervisors The final rule will add new paragraphs§§ 48.8(c) and
48.28(c) to require all supervisors to have annual refresher
training. The final rule will not incorporate the 30-day
allowance for supervisors to begin annual refresher training as
had been proposed. MSHA is allowing the mine operator 12 months
from the date of publication of the final rule to provide annual
refresher training for supervisors. By allowing 12 months for
this training, the final rule facilitates the incorporation of
State-certified supervisors into the operator's existing annual
refresher training program cycle under part 48. The costs for supervisors to take annual refresher training
are included under the costs for changing the definition of
"miner" to include all supervisors who previously had been exempt
from part 48. §§ 75.161, 77.107-1, and 77.1709 Plans for Training Programs The final rule amends §§ 75.161 and 77.107-1 of the existing
rule and deletes existing § 77.1709 because the changes to part 48
in the final rule duplicates the training required in these
sections. No incremental costs are associated with these changes. SUMMARY
The total initial cost of compliance for this final rule is
about $3.53 million, of which coal operators incur about $2.15
million and M/NM operators incur about $1.37 million. The initial
cost is equal to the one-time cost of $0.92 million ($337,000 for
coal operators and $581,000 for M/NM operators) plus the first
year's annually recurring cost of about $2.61 million ($1.82
million for coal operators and $0.79 million for M/NM operators). V. EXECUTIVE ORDER 12866 AND REGULATORY FLEXIBILITY ACT Executive Order (E.O.) 12866 requires that regulatory
requirements of E.O. 12866 and the Regulatory Flexibility Act. This REA is available from the Agency upon request and is posted
on MSHA's Homepage at www.msha.gov. FACTUAL BASIS FOR CERTIFICATION MSHA used a quantitative approach in concluding that the
final rule does not have a significant economic impact on a
substantial number of small entities. The Agency performed its
analysis separately for two groups of mines based broadly on
commodity: the coal mining sector as a whole and the M/NM mining
sector as a whole. The Agency reviewed available sources of
public economic data on the mining industry and concluded that a
quantitative analysis of the impacts on various mining subsectors
(i.e., beyond the 4-digit SIC level) is not feasible. MSHA is
cognizant of the diversity of mining operations in each sector and
has applied that knowledge in developing the final rule. Under the RFA, MSHA must use the SBA definition for a small
mine of 500 employees or fewer or, after consultation with the SBA
Office of Advocacy, establish an alternative definition for the
mining industry by publishing that definition in the Federal
Register for notice and comment. For the purpose of this
analysis, MSHA analyzed the impact of this final rule for small
and large mines using both the traditional Agency definition and
SBA's definition of a small mine. The Agency compared the costs
of the final rule for small mines in each sector to the revenues
for that sector for both size categories analyzed. The estimated contribution of the mining industry to the
gross domestic product is about $58 billion. The estimated cost
of the final rule is less than 0.01% of this. When estimated
compliance costs are less than 1% of estimated revenues, it is
generally appropriate to conclude that there is no significant
impact on a substantial number of small entities. MSHA believes
that this analysis provides a reasonable basis for the
certification in this case. Table V-1 summarizes the results of
this analysis. TABLE V-1:
Annual Costs Compared to Revenues Mine Type
and Size # Mines Estimated
(millions) Estimated
cost/mine Cost as %
of revenue COAL MINES Small <20 5,072 $0.81 $4,197.9 $159 0.019% Large >20 1,383 $1.01 $15,802.1 $729 0.006% Small <500 6,447 $1.77 $19,205.3 $275 0.009% Large >500 8 $0.047 $794.7 $5,921 0.006% Total Coal 6,455 $1.82 $20,000.0 $282 0.009% M/NM MINES Small <20 12,239 $0.42 $12,344.1 $34 0.003% Large >20 1,952 $0.38 $25,655.9 $193 0.001% Small <500 14,169 $0.75 $35,431.1 $53 0.002% Large >500 22 $0.040 $2,568.9 $1,820 0.002% Total M/NM 14,191 $0.79 $38,000.0 $56 0.002% ALL MINES 20,646 $2.61 $58,000.0 $126 0.005% The Agency estimated revenues for specific mine size
categories as the proportionate share of these mines' contribution
to the Gross National Product (from the Department of the
Interior, former Bureau of Mines, Mineral Commodity Summaries
1997), based on their proportionate share of total employment. VI. EXECUTIVE ORDER 12875 AND THE UNFUNDED MANDATES REFORM ACT Executive Order (E.O.) 12875, Enhancing the Intergovernmental
Partnership, requires executive agencies and departments to reduce
unfunded mandates on State, local, and tribal governments; to
consult with these governments prior to promulgation of any
unfunded mandate; and to develop a process that permits meaningful
and timely input by State, local, and tribal governments in the
development of regulatory proposals containing a significant
unfunded mandate. E.O. 12875 also requires executive agencies and
departments to increase flexibility for State, local, and tribal
governments to obtain a wavier from Federal statutory or
regulatory requirements. The final rule will impact about 212 sand and gravel or
crushed stone operations that are run by State, local, or tribal
governments for the construction and repair of highways and roads. MSHA provided these governments an opportunity to provide
meaningful and timely input, at the proposed rule stage, through
the promulgation of the proposal for notice and comment. MSHA
also mailed a copy of the proposed rule to each mine owned or
operated by a State, local, or tribal government. No state or
local government commented or requested a waiver of regulatory
requirements. MSHA will mail a copy of this final rule to these
212 entities. The Unfunded Mandates Reform Act was enacted in 1995. While
much of the Act is designed to assist the Congress in determining
whether its actions will impose costly new mandates on State,
local, and tribal governments, the Act also includes requirements
to assist Federal agencies to make this same determination with
respect to regulatory actions. MSHA has determined that, for purposes of § 202 of the
Unfunded Mandates Reform Act of 1995, this final rule does not
include any Federal mandate that may result in increased
expenditures by State, local, or tribal governments in the
aggregate of more than $100 million, or increased expenditures by
the private sector of more than $100 million. Moreover, the
Agency has determined that for purposes of § 203 of that Act, this
final rule does not significantly or uniquely affect these
entities. VII. EXECUTIVE ORDER 13045 (PROTECTION OF CHILDREN FROM
ENVIRONMENTAL HEALTH RISKS AND SAFETY RISKS) In accordance with Executive Order 13045, MSHA has evaluated
the environmental health and safety effects of the rule on
children. The Agency has determined that the final rule will have
no effect on children. VIII. EXECUTIVE ORDER 13084 (CONSULTATION AND COORDINATION WITH INDIAN TRIBAL GOVERNMENTS) MSHA certifies that the final rule does not impose
substantial direct compliance costs on Indian tribal governments. Further, MSHA provided the public, including Indian tribal
governments which operated mines, the opportunity to comment
during the proposed rule's comment period. No Indian tribal
government applied for a waiver or commented on the proposal. IX. PAPERWORK REDUCTION ACT INTRODUCTION AND SUMMARY These paperwork requirements have been submitted to the
Office of Management and Budget (OMB) for review under section
3504(h) of the Paperwork Reduction Act of 1995 (PRA 95). The
final rule contains information collection requirements in§§ 48.2/22, 48.6/26, and 48.8/28. Those required to provide the
information are mine operators and individuals who are paid to
perform tasks for the mine operator (e.g., instructors). Respondents are not required to respond to any collection of
information unless it displays a currently valid OMB control
number. The information collection requirements associated with
certification of part 48 training are approved under OMB Control
Number 1219-0070. Training plan revisions are approved under OMB
Control Number 1219-0009. This final rule will require
modification of the information collection budget for part 48. This chapter presents MSHA's analysis of the estimated
incremental information collection burden hours and costs
associated with the revisions in its experienced miner and
supervisor training final rule. These revisions can be separated
into the following three categories: (1) revising the definition
of "miner;" (2) improving experienced miner training; and
(3) requiring experienced miners returning to work following an
absence of 12 months or less, to have training on the significant
changes in the mine environment, that are not immediately obvious
and that could affect the miners' safety or health, before they
start work. Table IX-1 presents the burden hours and associated
costs for these provisions. TABLE IX-1:
Summary of Net Information Collection Burden Hours
and Associated Costs Imposed by Final Rule PROVISION & ASSOCIATED TASKS HOURS ASSOCIATED COSTS One-Time Annually
Recurring Supervisors as "Miners" 0 295 0 $12,687 Add'l "Exp'd Miner" Training 23,981 17,693 $918,182 $688,091 Instruct on Changes in Mine
Environ 0 6,533 0 $251,834 TOTAL 23,981 24,521 $918,182 $952,613 * Discrepancies due to rounding. SECTION-BY-SECTION DISCUSSION §§ 48.2 and 48.22 Definitions State-Certified Supervisors as "Miners" Section 48.2 and 48.22 requires that all supervisors receive
miner training. The final rule requires a training certificate
for those supervisors who had been exempt from part 48 training
under the current standards. The current MSHA-approved training
form (5000-23) is constructed for ease in keeping a record of the
miners' and supervisors' various training courses. MSHA
anticipates that the keeping of this record for supervisors
requires only a name, date, and check in the appropriate box to
indicate the type of training taken. The burden hour for this
recordkeeping is about 3 minutes (0.05 hour) per supervisor for a
total annual burden of 295 hours at an associated coat of $12,687. Requirements for "Experienced Miner" Status This final rule changes the requirements to obtain
experienced miner status for training purposes. It removes the
lapse in "experienced miner" status currently required when a
miner has been away from mining for over 3 years. There is no
additional or decreased paperwork associated with this change. §§ 48.6/48.26 Experienced Miner Training Development of Training Course The final rule adds four courses to experienced miner
training. Three of these four courses are currently included in
"new miner" training and need only slight modification to tailor
them to the needs of experienced miners. The time to modify these
three courses and to develop the fourth course will require about
1 hour of a supervisor's time in small mines and about 2 hours in
large mines. Table IX-2 shows these burden hours and associated
costs. Table IX-2:
One-Time Burden Hours and Associated Costs for
Training Course Development Mine Type # Mines # Hours Associated Costs Coal 6,455 7,838 $337,034 M/NM 14,191 16,143 $581,148 Total 20,646 23,981 $918,182 Additional "Experienced Miner" Training MSHA estimates that the four additional required courses will
increase the time spent on experienced miner training by an
average of 2 additional hours. Table IX-3 shows the estimated
burden hours and costs for the instructor's time for this
for supplies and course materials are negligible. TABLE IX-3:
Annual Burden* for Additional Experienced Miner
Training Mine Type # Instructors # Hours Associated Cost All Coal 3,654 7,307 $314,201 All M/NM 5,193 10,386 $373,890 TOTAL 8,847 17,693 $688,091 * Discrepancies due to rounding. Significant Changes in the Mine Affecting Safety and Health The final rule requires operators to provide instruction
about any significant changes in the mine environment that have
occurred while the miner was away that could affect the miner's
safety or health. For the purpose of this analysis, MSHA
estimates that 20% of miners, who return to work following an
absence of 12 months or less, will need such instruction. MSHA
estimates further that this instruction will be provided orally by
the miner's supervisor and will take about 6 minutes (0.1 hour) of
the miner's and supervisor's time, on the average. Table IX-4
summarizes the burden hours and associated costs for instruction
to alert returning miners to changes in the mine environment. TABLE IX-4:
Workplace that Affect Safety and Health Mine Type # Miners & Supervisors # Hours Associated Cost Coal 23,783 2,378 $102,254 M/NM 41,546 4,155 $149,580 Total 65,329 6,533 $251,834 * Discrepancies due to rounding. §§ 48.8/48.28 Annual Refresher Training of Supervisors The burden hours and associated costs for supervisors to take
annual refresher training are included under the costs for
changing the definition of "miner" to include all supervisors who
previously had been exempt from part 48. X. ENDNOTES 1. U.S. Department of the Interior, Bureau of Mines, Mineral
Commodities Summaries 1996, January 1996, pp. 3 and 6.
3. U.S. Department of Labor, Mine Safety and Health
Administration, Division of Mining Information Systems, Coal 1997
Size-Group Report: Preliminary (quarters 1 - 4, 1997), MSHA/DMIS
CM 441, March 11, 1998.
5. U.S. Department of Labor, Mine Safety and Health
Administration, Division of Mining Information Systems, M/NM 1997
9. Ibid. pp. 158 and 160. 10. Ibid. pp. 142 and 144. 11. Quarterly Coal Report: July-September 1997, Energy
Information Administration, February 1998, pp.4-8.
12. U.S. Department of Labor, Mine Safety and Health
13. Mills, Mark P., "Coal: Cornerstone of America's Competitive
Advantage in World Markets," April 1997. 14. Ibid., p. 209. U.S. Department of Labor, Mine Safety and Health
Administration, "Coal Mining: Safety Manual No. 1," 1987, p. 23.
15. U.S. Department of Energy, Energy Information
Administration, Annual Energy Review 1995, DOE/EIA-0384(95), July
1996, pp. 213 and 225.
16. Ibid., p. 213.
17. U.S. Department of Labor, Mine Safety and Health
Size-Group Report (Preliminary), MSHA/DMIS CM 441, March 22,
18. Energy Information Administration, February 1998 Op.Cit.,
19. U.S. Department of Energy, Op. Cit., p. 225.
20. U.S. Department of Energy, Op. Cit., pp. 211 and 216.
21. Energy Information Administration, Op. Cit., p. 3.
22. Mills, Op. Cit.
23. U.S. Department of Commerce, International Trade
Administration, U.S. Industrial Outlook 1994, January 1994,
24. Ibid., p. 2-4.
26. Doerell, Peter E., "Coal: World Steam Coal Trade to Increase
66% by 2015," Engineering and Mining Journal, March 1998, pp. 47-49.
27. U.S. Department of the Interior, Op. Cit., pp. 3, 6, 142,
144, 158, and 160.
28. U.S. Department of the Interior, U.S. Geological Survey,
Mineral Commodities Summaries 1997, pp. 84-85. Hogan, William T., Engineering & Mining Journal, March 1997,
29. William S. Kirk, U.S. Geological Survey, 1998.
32. "1997 Steel Shipments Highest since '74," Responsive Database
Services, April 1, 1998.
33. "Steel Counterattacks Aluminum with Ultra-Light Body,"
Responsive Database Services, April 1, 1998. 34. Upton, Doug, "Nickel: Fallen on Hard Times, "Engineering and
Mining Journal, March 1998, pp. 55-56.
36. John W. Moberly, Engineering and Mining Journal, March 1997,
37. Plunkert, Patricia A. and Errol D. Sehnke, "Aluminum,
Bauxite, and Alumina: 1991," U.S. Department of Interior, Bureau
of Mines, January 1993, p. 7.
38. Moberly, Op. Cit.
39. Michael L. Deelo, Engineering and Mining Journal, March
1997, pp.17-18. 40. Plunkert, Patricia A., "Aluminum: Demand and Production
Continue to Grow Steadily," Engineering and Mining Journal, March
1998, p. 46.
41. Deelo, Michael L., "Lead: Reasonably Sound Fundamentals
Growing Demand for Products," Engineering and Mining Journal,
March 1998, p. 49. 42. Anthony, Michael, Engineering and Mining Journal, March
1997, pp. 21-22. 43. Anthony, Michael, Engineering and Mining Journal, March
1998, pp. 54-55. 44. Kielty, Edward R., "Cobalt: Will Tomorrow Ever Come?" Engineering and Mining Journal, March 1998, pp. 38-39.
45. Kielty, Edward R., "Cobalt: Will Tomorrow Ever Come?"
Engineering and Mining Journal, March 1998, p. 40.
46. Kielty, Edward R., Engineering and Mining Journal, March
1997, pp. 11-13.
47. Silva, Enrique, "Copper: Good Fundamentals, But a Very Low
Price, March 1998, p. 34. U.S. Geological Survey, February 1997, Op. Cit., p. 48.
48. Ibid., p. 52. 49. U.S. Geological Survey, p. 53.
51. Silva, Op. Cit., p. 35. 52. Ibid., p. 154.
53. Marvin K. Kaiser, Engineering and Mining Journal, March
1997, pp. 32-34. 54. O'Neil, Tim. Mining Engineering, April 1997, p. 55. "Silver at 9-1/2 year high," CNNfn, February 5, 1998.
56. "Silver Hits Nine-Year High as Buffett Takes an Interest,"
The Wall Street Journal, February 4, 1998. 57. U.S. Geological Survey. Mineral Commodity Summaries,
January 1998. p. 71. Murray, Stewart. Engineering and Mining Journal, March 1997,
59. "Gold hits 12-year low," CNNfn October 27, 1997.
60. "Gold breaks $300 barrier," CNNfn November 14, 1997. 61. "New woes for gold," CNNfn December 5, 1997. "Gold sinks to 18-1/2 year low," CNNfn January 6, 1998.
62. "Record Gold Demand in 1997," Business Wire February 25,
1998. "Demand for Gold Rose 9% Globally in '97," Responsive
Database Services, March 6, 1998. 63. Christian, Jeffrey M., Engineering and Mining Journal, March
1997, pp. 53-54.
64. Christian, Jeffrey M., Engineering and Mining Journal, March
1998, pp. 58-60.
65. "Palladium at 18-year high," CNNfn January 14, 1998. 66. "Yeltsin ails, palladium sails," CNNfn March 13, 1998. 67. "Palladium shining bright," CNNfn April 14, 1998. 68. "Metals melt resistance," CNNfn April 23, 1998. "Palladium edges to new high at fix, then surges," Reuters
April 22, 1998. 69. Christian, Op. Cit., 1998.
70. U.S. Department of the Interior, Op. Cit., p. 6.
71. U.S. Department of the Interior, Op. Cit., p. 144.
72. "Natural Aggregates--Foundation of America's Future," U.S.
Geological Survey, Minerals Information 1996. 73. Ibid.
74. Mineral Commodities Summaries, U.S. Geological Survey,
January 1998. pp. 96-97. 75. Ibid. 76. Ibid., pp. 142-143.
77. Ibid., pp. 168-169.
78. Breunig, William, "Soda Ash: U.S. Production Sets Record,"
Engineering and Mining Journal, March 1998, pp. 64-65.
80. Mew, Michael, "Phosphate Rock: Market Continues to Tighten,"
Engineering and Mining Journal, March 1998, pp. 42-43.
81. Ibid. 82. U.S. Department of the Interior, Op. Cit., p. 8.
83. U.S. Department of the Interior, Bureau of Mines. Characteristics of the 1986 Coal Mining Workforce (IC 9192), and
Characteristics of the 1986 Metal and Nonmetal Mining Workforce
(IC 9193), 1988.	84. U.S. Department of Labor, Mine Safety and Health
Administration, Office of Standards, Regulations, and Variances. Preliminary Regulatory Impact Analysis and Regulatory Flexibility
Analysis: Proposed Rule on Part 48 Training, August 1991. 85. U.S. Department of the Interior, Bureau of Mines. Characteristics of the 1986 Coal Mining Workforce (IC 9192),
1988, Table E-17.
86. Comments to MSHA's 1991 PRIA.
87. U.S. Department of the Interior, Op. Cit., IC 9192 and
IC 9193, Tables E-12.
88. Western Mine Engineering. Mine Cost Service. Spokane,
Washington. Section B2, pp. 8 and 12, 1997.
89. U.S. Department of Labor, Mine Safety and Health
Administration, Information Resources Center, "Coal 1997 Size-Group Report (MSHA/DMIS CM441)," "M/NM 1997 Size-Group Report
(MSHA/DMIS CM441)," "Coal 1997 Size-Group Report (MSHA/DMIS
CT441)," and "M/NM 1997 Size-Group Report (MSHA/DMIS CT441),"
Quarter 1-Quarter 4 (Preliminary), Unpublished data, March 11,
90. U.S. Department of Labor, Mine Safety and Health
Administration, Educational Policy Development, State
Certification and Qualification Programs, Undated.
91. U.S. Department of Labor, Mine Safety and Health
Administration, Office of Standards, Regulations, and Variances,
Preliminary Regulatory Impact and Regulatory Flexibility
Analysis: Proposed Rule on Part 48 Training, August 1991,
pg. IV-8.
92. Ibid., pg. IV-12.
93. Ibid., pg. IV-14.
94. U.S. Department of the Interior, Bureau of Mines. Characteristics of the 1986 Coal Mining Workforce (IC 9192), and
(IC 9193), 1988.