Thursday, September 20, 2007

Mining industry's answer to new, Democratic climate on Capitol Hill: money for Democrats

With a new Democratic majority in Congress, the mining industry has been challenged like never before, writes Jim Snyder of The Hill. As Democrats have pushed for new mining regulations, the industry has responded by stepping up its lobbying efforts and by sending more contributions to the Democrats, Snyder writes. While the National Mining Association's two political action committees gave about 90 percent of contributions to Republicans in recent years, by the end of 2008 40 percent will go to Democrats. “We need to broaden our support on the Hill,” Kraig Naasz, the NMA's president and chief executive, told Snyder.

Under the Republican majority, the industry had gained subsidies for "clean coal" in the 2005 energy bill, but now it faces increased pressure to improve safety from Reps. George Miller, D-Calif., and Rep. Nick Rahall, D-W.Va. Their bill would force the industry to speed its implementation of the safety measures Congress mandated after the Sago mine disaster in West Virginia in January 2006. Rahall is also working to reform the Hardock Mining Law of 1872, to make mines pay higher royalties.

"Climate-change bills present perhaps the biggest challenge to the industry," Snyder writes. "Coal now accounts for 52 percent of the electricity produced in the country. Most energy experts say coal would remain a significant source of electricity to meet expected increase in energy demand. But a bill that raises the price of carbon dioxide could push more utilities to use natural gas and other fuel sources that emit less carbon dioxide than coal does." (Read more)

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