Not Good

http://www.miningjournal.net/stories/articles.asp?articleID=10466

The top news story in the local paper says it all. "Power rates to close mine?" Apparently the mine's electrical power contract with Wisconsin Electric ends at the end of this year. The company that owns the mine expected rates to rise, but not a 43% increase. If there is such an increase, the mine may be forced to shut down in a year or two. The nearby mine next door would stay running since it has a longer lifespan. But from what the story says, the mine where I work would be closing sooner than I, and many other people, had expected. This is something I am not taking very lightly and it concerns me. The recent sqabbles at work involving new schedules and crew changes pale in comparison to news like this. Now we will have to fight the power company in order to keep the mine running and to keep our jobs. Not a fight I was expecting to make so soon.

According to the news article, the fate of the mine lies on the Michigan Public Service Commission. They could do nothing and force the owners of the mine to pay the 43% increase in power rates and shut the mine down. However, they can also recommend a lower increase which would extend the life of both mines. The company is proposing a 14.3% increase, which would still be significant, but certainly not as deadly as a 43% increase could be. I am hopeful the Michigan Public Service Commission thinks these things carefully and realizes the devestating effecting this could have on our economy, especially at this time. Yes, the mine wasn't going to last forever, but this is sooner than a lot of people had expected. It comes rather unexpected, as well.

It just goes to show you how up and down the mining industry has been in the Upper Peninsula for the last 30 years. I remember my dad going through strikes, layoffs, and hearing news about the mine being shut down - only to have things run until the present day. There's also talk of a drought in the spring that could impact us, as well as tariffs on steel imports being lifted late last year by the U.S. government. Yes, the steel industry is doing well right now, but it is a finicky industry. One moment you're up and the next you're down. I was hoping the good times would last a while longer. But hearing this last bit of news, it doesn't sound good for the future.

I am sure you have not heard the last of this from me. I take exception to many of the quotes provided by representatives of Wisconsin Electric. They're basically saying, "the Empire Mine doesn't have a long life expectancy anyways, so this power increase is not a direct effect of its closing." But the thing is, the company was looking for ways to extend the life of the mine beyond the initial reports. If power rates rise dramatically, this basically ends all hopes for those plans, unless there's a way to manufacture iron ore without using as much electricity. I guess time will tell.