mining

By Ruth Santiago, Sabrina Fernandes, Julie Michelle Klinger, Thea Riofrancos, and Daniel Aldana Cohen - NACLA Report, March 26, 2021

By staff - Trade Unions For Energy Democracy, March 25, 2021

Speakers:

• Heberto Barrios Castillo, Undersecretary, Mexican Energy Ministry- SENER
• Martín Esparza, General Secretary, Sindicato Mexicano de Electricistas- SME
• Silvia Ramos Luna, Secretary General, Unión Nacional de Técnicos y Profesionistas Petroleros - UNTyPP
• Fernando Lopes, trade union consultant in Brazil and former Assistant Secretary General of IndustriALL
• Ozzi Warwick, Chief Education and Research Officer, Oilfields Workers' Trade Union (OWTU), Trinidad and Tobago

By Emily Pontecorvo - Grist, March 3, 2021

Here are two tales of the energy transition unfolding in coal country, USA.

In late 2019, Pacificorp, an electric utility that operates in six Western states, told Wyoming regulators it wanted to shut down several of its coal-fired power plants early and replace them with wind and solar power and battery storage. It said this plan would save customers hundreds of millions of dollars on their electric bills and promised to work with local leaders on transition plans for workers and communities affected by the closures.

Wyoming, a state whose economy relies significantly on coal mining and coal power, went on the defensive. State lawmakers had already passed a law requiring coal plant owners to search for a buyer before being allowed to close a plant. Now, with support from the governor, regulators ordered an unprecedented investigation to scrutinize Pacificorp’s analysis and conclusions. Ultimately they determined the plan was deficient — that the company had not adequately considered allowing the coal plants to stay open or installing technology to capture the plants’ carbon emissions.

By Guy Dauncy - Canada 26 Weeks, March 2020

This is a work of imagination. But the urgency of the crisis is real, the need for the suggested programs is real, and the data included in these proposals is real.

What could the government of Canada do if its Ministers, MPs and civil servants really understood the severity of the climate emergency, and the urgency of the need? This paper shows how we could target a 65% reduction in emissions by 2030 and 100% by 2040. It proposes 164 new policies and programs, financed by $59 billion a year in new investments, without raising taxes or increasing public sector borrowing. The new programs and policies are announced every Monday morning between January and the end of June. To learn what they are, read on.

Read the text (PDF).

By Andy Whitmore - War on Want, March 2021

There is an urgent need to deal with the potential widespread destruction and human rights abuses that could be unleashed by the extraction of transition minerals: the materials needed at high volumes for the production of renewable energy technologies. Although it is crucial to tackle the climate crisis, and rapidly transition away from fossil fuels, this transition cannot be achieved by expanding our reliance on other materials. The voices arguing for ‘digging our way out of the climate crisis’, particularly those that make up the global mining industry, are powerful but self-serving and must be rejected. We need carefully planned, lowcarbon and non-resource-intensive solutions for people and planet.

Academics, communities and organisations have labelled this new mining frontier, ‘green extractivism’: the idea that human rights and ecosystems can be sacrificed to mining in the name of “solving” climate change, while at the same time mining companies profit from an unjust, arbitrary and volatile transition. There are multiple environmental, social, governance and human rights concerns associated with this expansion, and threats to communities on the frontlines of conflicts arising from mining for transition minerals are set to increase in the future. However, these threats are happening now. From the deserts of Argentina to the forests of West Papua, impacted communities are resisting the rise of ‘green extractivism’ everywhere it is occurring. They embody the many ways we need to transform our energy-intense societies to ones based on democratic and fair access to the essential elements for a dignified life. We must act in solidarity with impacted communities across the globe.

This report includes in-depth studies written by frontline organisations in Indonesia and Philippines directly resisting nickel mining in both countries respectively. These exclusive case studies highlight the threats, potential impacts and worrying trends associated with nickel mining and illustrate, in detail, the landscape for mining expansion in the region.

Read the text (PDF).

By Elizabeth Perry - Work and Climate Change Report, February 23, 2021

A February study examined the economic changes in 22 counties the authors call “Frackalachia” – home to the Utica and Marcellus shale gas industry. The report, Appalachia’s Natural Gas Counties: Contributing more to the U.S. economy and Getting less in return examines the period from 2008 to 2019, a time when the area went from producing a negligible portion of U.S. natural gas to producing 40%. The report summarizes the job forecasts provided by oil and gas industry economic impact studies, (over 450,000 new jobs for Ohio, Pennsylvania, and West Virginia), and shows the actual economic data from the U.S. Bureau of Economic Analysis – a 1.6% increase in jobs – at a time when the number of jobs across the U.S. grew by 9.9%. Detailed statistics demonstrate the differences amongst counties and states – with Ohio faring the worst and Pennsylvania faring the best. The report’s analysis shows that in the entire area represented by the 22 counties, the share of the national personal income fell by 6.3 percent, the share of jobs fell by 7.5 percent, and the share of the national population fell by 9.7 percent , while 90% of the wealth generated from fracking left the local communities.

The report was produced and published on February 10 by the Ohio River Valley Institute, a non-profit think tank based in Pennsylvania, founded in 2020 with the vision of “moving beyond an extractive economy toward shared prosperity, lasting job growth, clean energy, and civic engagement.” This report has been widely reported, including in “Appalachia’s fracking boom has done little for local economies: Study”(Environmental Health News , Feb. 12), which summarizes the report and adds context concerning the health effects of fracking, and the failed attempts to expand production to petrochemicals and plastics using ethane, a by-product of the fracked natural gas.

By Sean O'Leary - Ohio River Valley Institute, February 12, 2021

Economists debate whether there is such a thing as a “resource curse”.

Between 2008 and 2019, twenty-two old industrial and rural counties in Ohio, Pennsylvania, and West Virginia, which make up the Appalachian natural gas region, increased their contribution to US gross domestic product (GDP) by more than one-third. In 2008, the 22 counties were responsible for $2.46 of every $1,000 of national output. By 2019, the figure had climbed to $3.33. Their rate of GDP growth more than tripled that of the nation. However, during the same period, measures of local economic prosperity—the economic impacts of that growth—not only failed to keep pace with the increased share of output, they actually declined.

• The 22 counties’ share of the nation’s personal income fell by 6.3%, from $2.62 for every $1,000 to just $2.46.
• Their share of jobs fell by 7.6%, from 2.62 in every 1,000 to 2.46.
• Their share of the nation’s population fell by 10.9%, from 3.26 for every 1,000 Americans to 2.9 for every thousand.

It is a case of economic growth without prosperity, the defining characteristic of the resource curse.

Most of the GDP increase in this group of counties was due to the Appalachian natural gas production boom, which was facilitated by the advent of a drilling technique called hydraulic fracturing, or “fracking” for short.

Read the text (PDF).

By Nick Cunningham - DeSmog, February 11, 2021

The decade-long fracking boom in Appalachia has not led to significant job growth, and despite the region’s extraordinary levels of natural gas production, the industry’s promise of prosperity has “turned into almost nothing,” according to a new report. 

The fracking boom has received broad support from politicians across the aisle in Appalachia due to dreams of enormous job creation, but a report released on February 10 from Pennsylvania-based economic and sustainability think tank, the Ohio River Valley Institute (ORVI), sheds new light on the reality of this hype.

The report looked at how 22 counties across West Virginia, Pennsylvania, and Ohio — accounting for 90 percent of the region’s natural gas production — fared during the fracking boom. It found that counties that saw the most drilling ended up with weaker job growth and declining populations compared to other parts of Appalachia and the nation as a whole.

Shale gas production from Appalachia exploded from minimal levels a little over a decade ago, to more than 32 billion cubic feet per day (Bcf/d) in 2019, or roughly 40 percent of the nation’s total output. During this time, between 2008 and 2019, GDP across these 22 counties grew three times faster than that of the nation as a whole. However, based on a variety of metrics for actual economic prosperity — such as job growth, population growth, and the region’s share of national income — the region fell further behind than the rest of the country. 

Between 2008 and 2019, the number of jobs across the U.S. expanded by 10 percent, according to the ORVI report, but in Ohio, Pennsylvania, and West Virginia, job growth only grew by 4 percent. More glaringly, the 22 gas-producing counties in those three states — ground-zero for the drilling boom — only experienced 1.7 percent job growth.

“What’s really disturbing is that these disappointing results came about at a time when the region’s natural gas industry was operating at full capacity. So it’s hard to imagine a scenario in which the results would be better,” said Sean O’Leary, the report’s author.

The report cited Belmont County, Ohio, as a particularly shocking case. Belmont County has received more than a third of all natural gas investment in the state, and accounts for more than a third of the state’s gas production. The industry also accounts for about 60 percent of the county’s economy. Because of the boom, the county’s GDP grew five times faster than the national rate. And yet, the county saw a 7 percent decline in jobs and a 2 percent decline in population over the past decade.

“This report documents that many Marcellus and Utica region fracking gas counties typically have lost both population and jobs from 2008 to 2019,” said John Hanger, former Pennsylvania secretary of Environmental Protection, commenting on the report. “This report explodes in a fireball of numbers the claims that the gas industry would bring prosperity to Pennsylvania, Ohio, or West Virginia. These are stubborn facts that indicate gas drilling has done the opposite in most of the top drilling counties.”

A Boom Without Job Growth

This lack of job growth was not what the industry promised. A 2010 study from the American Petroleum Institute predicted that Pennsylvania would see more than 211,000 jobs created by 2020 due to the fracking boom, while West Virginia would see an additional 43,000 jobs. Studies like these were widely cited by politicians as proof that the fracking boom was an economic imperative and must be supported.

But the Ohio River Valley Institute report reveals the disconnect between a drilling boom and rising GDP on the one hand, and worse local employment outcomes on the other. There are likely many reasons for this disconnect related to the long list of negative externalities associated with fracking: The boom-and-bust nature of extractive industries creates risks for other business sectors, such as extreme economic volatility, deterring new businesses or expansions of existing ones; meanwhile air, water, and noise pollution negatively impact the health and environment of residents living nearby.

“There can be no mistake that the closer people live to shale gas development, the higher their risk for poor health outcomes,” Alison Steele, Executive Director of the Southwest Pennsylvania Environmental Health Project, told DeSmog. “More than two dozen peer-reviewed epidemiological studies show a correlation between living near shale gas development and a host of health issues, such as worsening asthmas, heart failure hospitalizations, premature births, and babies born with low birth weights and birth defects.”

Moreover, oil and gas drilling is capital-intensive, not job-intensive. As the example of Belmont County shows, only about 12 percent of income generated by the gas industry can be attributable to wages and employment, while in other sectors, on average, more than half of income goes to workers.

In other words, it costs a lot of money to drill, but it doesn’t employ a lot of people, and much of the income is siphoned off to shareholders. To top it off, equipment and people are imported from outside the region — many of the jobs created went to workers brought in from places such as Texas and Oklahoma.

Despite the huge increase in shale gas production over the past decade, the vast majority of the 22 counties experiencing the drilling boom also experienced “economic stagnation or outright decline and depopulation,” the report said.

The American Petroleum Institute did not respond to a request for comment.

“[W]e could see long ago that the job numbers published and pushed out by the industry years ago were based in bluster, not our economic realities,” Veronica Coptis, Executive Director of Coalfield Justice, a non-profit based in southwest Pennsylvania, told DeSmog, commenting on the report. “At industry’s behest and encouragement, Pennsylvania promoted shale gas development aggressively in rural areas for more than a decade. And yet, the southwestern counties at the epicenter of fracking do not show any obvious improvement in well-being.”

By Jonathan Neale - Climate and Capitalism, February 11, 2021

I have spent the last year working on a book called Fight the Fire: Green New Deals and Global Climate Jobs. Most of it is about both the politics and the engineering of any possible transition that can avert catastrophic climate breakdown. One thing I had to think about long and hard was lithium and car batteries.

I often hear people say that we can’t cover the world with electric vehicles, because there simply is not enough lithium for batteries. In any case, they add, lithium production is toxic, and the only supplies are in the Global South. Moreover, so the story goes, there are not enough rare earth metals for wind turbines and all the other hardware we will need for renewable energy.

People often smile after they say those things, which is hard for me to understand, because it means eight billion people will go to hell.

So I went and found out about lithium batteries and the uses of rare earth. What I found out is that the transition will be possible, but neither the politics nor the engineering is simple. This article explains why. I start by describing the situation simply, and then add in some of the complexity.

Lithium is a metal used in almost all electric vehicle batteries today. About half of global production of lithium currently goes to electric vehicles. And in future we will need to increase the production of electric vehicles from hundreds or thousands to hundreds of millions. That will require vast amounts of lithium.

There are three ways to mine lithium. It can be extracted from rock. It can be extracted from the brine that is left over when sea water passes through a desalination plant. Or it can be extracted from those brine deposits which are particularly rich in lithium. These brine deposits are the common way of mining lithium currently, because it is by far the cheapest. Most of the known deposits of lithium rich brine are in the arid highlands where Bolivia, Chile and Argentina come together.

Lithium mining is well established in Chile and Argentina. In both countries the local indigenous people have organized against the mining, but so far been unable to stop it. The mining is toxic, because large amounts of acid are used in the processing. But the mining also uses large amounts of water in places that already has little enough moisture. The result is that ancestral homelands become unlivable.

Bolivia may have even richer deposits of lithium than Argentina and Chile, but mining has not begun there. The Bolivian government had been led by the indigenous socialist Evo Morales from 2006 to 2019. Morales had been propelled to power by a mass movement committed to taking back control of Bolivia’s water, gas and oil resources from multinational corporations. Morales was unable to nationalize the corporations, but he did insist on the government getting a much larger share of the oil and gas revenue.[1]

His government planned to go even further with lithium. Morales wanted to mine the lithium in Bolivia, but he wanted to build factories alongside the mines to make batteries. In a world increasingly hungry for batteries, that could have turned Bolivia into an industrial nation, not just a place to exploit resources.

The Morales government, however, was unable to raise the necessary investment funds. Global capital, Tesla, the big banks and the World Bank had no intention of supporting such a project. And if they had, they would not have done so in conjunction with a socialist like Morales. Then, in 2019, a coup led by Bolivian capitalists, and supported by the United States, removed Morales. Widespread popular unrest forced a new election in October. Morales’ party, the Movement for Socialism won, though Morales himself was out of the running. It is unclear what will happen to the lithium.

That’s one level of complexity. The local indigenous people did not want the lithium mined. The socialist government did not want extractavism, but they did want industrial development.

Those are not the only choices.

For one thing, there are other, more expensive ways of mining lithium. It can be mined from hard rock in China or the United States. More important, batteries do not have to be made out of lithium. Cars had used batteries for almost a century before Sony developed a commercial lithium-ion battery in 1991. Engineers in many universities are experimenting with a range of other materials for building batteries. But even without looking to the future, it would be possible to build batteries in the ways they used to be built. Indeed, in January 2020, the US Geological Service listed the metals that could be substituted for lithium in battery anodes as calcium, magnesium, mercury and zinc.[2]

The reason all manufacturers currently use lithium is that it provides a lighter battery that lasts longer. That gives the car greater range without recharging, and it make possible a much lighter car. In other words, lithium batteries are cheaper.

By Rosa Martínez Rodríguez - Green European Journal, February 10, 2021

Since 2019, Spain has been ahead of the curve with the launch of a Just Transition Strategy to protect its historic coal mining regions from the impacts of decarbonisation. Rosa Martínez examines the uptake of just transition in public policy and where Spain’s affected regions find themselves today. Progress is encouraging, but accelerating processes of digitalisation and automation mean that it is time to bring the notion of just transition up to speed so it can offer future-proof solutions in a world where employment is increasingly precarious.

In 2015, before the Paris Agreement had been ratified, the International Labour Organization published its Guidelines for a Just Transition Towards Environmentally Sustainable Economies and Societies for All. The concept of just transition, however, was already well established among Green parties and environmental activists. It offered a response to critiques of the ecological transition based on its impact on employment, and also reinforced social justice as a core green value.

From political concept to public policy

In Spain, just transition worked its way into public policy months before the EU decision to end financial aid for the coal mining industry took effect, forcing the closure of mines unable to operate without support. The Spanish Socialist Workers’ Party (PSOE), which came to power in 2018 after a vote of no confidence ousted the conservative People’s Party (PP), found themselves in a politically delicate situation, given that the most affected areas were made up of socialist voters. The response from the Ministry of Ecological Transition was to create a Just Transition Urgent Action Plan (2019-2021) for the regions impacted by the closure of the mines and five thermal power plants.

Months later, in February 2019, the Just Transition Strategy featured as one of the pillars of the government’s Strategic Energy and Climate Framework. The introduction of a social angle in climate policy and the energy transition was a first for politics and would later be adopted by the European Commission in the European Green Deal with its Just Transition Mechanism launched in January 2020.

Where are we now? So far, processes have only been implemented in areas affected by the closure of coal mines and thermal power plants through agreements with local administrations – 13 signed to date – with the aim of protecting jobs. In November 2020, a brief progress report was published, detailing the actions carried out to date and giving a sense of the complexity of the challenge undertaken.