Wyoming Mining: Worth Fighting For | Executive Director, Travis Deti

WYOMING MINING: WORTH FIGHTING FOR

BY: TRAVIS DETI

Executive Director Wyoming Mining Association

What a ride the last year has been! From the impacts of the COVID-19 pandemic and the related economic slowdown, to the political turbulence and the change in presidential administration, the last 12 months have certainly been challenging for the Wyoming mining industry. As we gather in the Energy Capital of America this summer and begin to recover, we look to the near-term future and plan our way forward. Stubborn market conditions continue to present significant tests for operators across all four of our industry sectors, exacerbated by lingering effects of the COVID-19 pandemic. Coal continues to face competition from cheap natural gas and heavily subsidized, government-supported and less reliable renewables, and adverse public policy. Our uranium producers continue to face the pressure of low prices and unfair competition from state-sponsored foreign sources. Wyoming bentonite operators continue to feel the impacts of struggling oil and gas production in the state. And our trona (natural soda ash) producers are slowly recovering from downline customer supply chain disruptions and cutthroat foreign competition. 2020 and early 2021 have been tough for all. Our industry in particular will continue to be tested in the foreseeable future as we adapt to a new, significantly less friendly administration in Washington, DC. In the first six months of the Biden presidency, we have seen a host of measures and proposals aimed at restricting mining activities. From restrictions on leasing, increases in federal royalty rates and imposition of new royalties on locatable minerals, to mining restrictions in sage grouse core areas, the barrage of anti-mining concepts are coming fast and furious from Washington and do not bode well.

I still see some positive news and reasons to be hopeful. On the coal front, our support at the state level has never been higher. Wyoming continues to lead in efforts to defend the industry and keep our coal resource viable into the future. Both at home and in Washington, Wyoming continues to press for the development and deployment of viable carbon capture technology to keep coal in America’s electricity generation mix. As the energy debacle of this past winter proved, Wyoming coal remains essential as a low-cost, reliable source of generation where weather-dependent renewables simple are not. The state continues to press for port access to export Wyoming coal to international customers; the rest of the world is continuing to burn coal. The Wyoming Mining Association (WMA) continues to work with state legislators, Governor Mark Gordon, state regulators, and the Wyoming Congressional Delegation to ease the tax and regulatory burden for coal operators. As long as we are so heavily dependent on coal revenue, it remains in the state’s interest continue to defend our coal producers. We remain hopeful that the Biden Administration will see the value in the development of a domestic uranium stockpile. As President Trump’s Nuclear Fuel Cycle Working Group determined, this concept is necessary not only for a safe and stable energy source, but for national security reasons as well. Wyoming uranium producers are well positioned to meet the demand for the stockpile once bureaucratic obstacles are overcome.

Despite the oil and gas downturn, Wyoming bentonite production has been steady as strong demand for pet litter continues. And as the economy continues to reopen, there is hope that demand for oilfield products will increase.

There is hope in the trona patch as well. Production will increase as we extract ourselves from the effects of the pandemic. Trona operators remain optimistic, and expansion projects remain on the board and are coming to fruition. While headwinds for the industry remain, we are prepared to face them. This year’s 65th Annual Convention of the Wyoming Mining Association gives us the opportunity to gather, share our thoughts, ideas and best practices on where we go from here. We will hear from a variety of our national trade association and federal and state partners on what to expect and how we can plan for dealing with the Biden Administration. We will hear about state efforts to defend the industry, as well opportunities on the technology, rare earths and gold mining fronts. Safety and world class reclamation continue to be top priority for all of our member companies, and we look forward to recognizing our award winners, as well. The storm has been strong, but we will continue to weather it. Your staff at WMA continues to work every day on your behalf, and we thank our member companies and our partners of the Mining Associates of Wyoming for your steadfast support. Despite the obstacles we face, the fact remains the Wyoming and America remain reliant on you for the energy and essential products that we use every single day. You are worth fighting for.