He was addressing the National Western Mining Conference in Denver, Colorado where coal is the biggest component of the state’s mining industry. Colorado is the eighth-largest coal producing US state with 2003 production of about 36 million tons.

Gerard predicts a major resurgence in coal based on three factors: “First, there are promising new hydrogen technologies on the horizon that may one day generate emission-free energy from coal,” he said.

“Second, there is our economy’s voracious appetite for electricity – which is officially forecast to grow by 50% over the next three decades. Third, I think competing fuels are reaching plateaus of utilization because of their inherent limitations.”

Stressing the importance of minerals and coal, Gerard called for a national policy for minerals and a national policy for energy. He said that rather than a national policy existing, a de facto government mining policy has emerged to thwart the stated policy of Congress. He called it a stealth mining policy.

He said a recent study by Behre Dolbear found that mining in the US is becoming less, not more, attractive as a place to do business. The consulting firm ranked 25 countries by a set of criteria measuring their friendliness to mining investment. The US ranked fourth best overall – tied with Chile, but below Australia, Canada and Mexico in that order.

Gerard said The US Geological Survey recently reported the US is 100% import dependent on 16 major minerals, ranging from bauxite to titanium.

“Equally troubling is the declining rate of mining investment. Of all the money invested in global mineral exploration in 2002, the US share was just 7% - a 66% decline from just 1997,” he said.

Some major problems were around the lack of timely awarding of permits, which can take four to eight years.

“Other issues – like the current moratorium on patents, royalties and abandoned mine reclamation – also need to be addressed as they generate uncertainty for operators,” Gerard said.

He also emphasized that the NMA was not working to weaken existing environmental enforcement.

“Our industry complies with environmental laws that are second to none in the world. As a result, our operations have minimal environmental impacts by any objective standard,” he said

“The compliance record of the typical company here in the US bears comparison with the best operators in any other. We willingly accept this environmental responsibility as part of our unwritten pact with the American public … whom we know demand no less.”

Turning to the Energy bill now before the US Congress, Gerard strongly endorsed its agenda to “capitalize on the inherent advantages of coal by ensuring that coal utilization meets the rising environmental expectations of American consumers.”

Key aspects of the bill include:

• A new Clean Air Coal provision authorizes $US2 billion to facilitate the installation of advanced emission control equipment and new technology.

• Existing power plants will have the opportunity to accelerate depreciation of the cost of new emission control equipment. (More than half of the electricity capacity in Colorado would qualify for accelerated depreciation.)

• Clean Coal Technology tax incentives will speed the adoption of coal based systems that will be significantly advanced over current ones.

• More than $US1.4 billion will be offered over 5 years – plus another $US1.8 billion in the Clean Coal Power Initiative – to develop next generation combustion systems

He referred to the new but widely misunderstood coal leasing provision which he said would benefit all parties.

“Essentially, it gives Western companies on Federal land similar operational flexibility they would have operating on private lands. At the same time, this flexibility gives Eastern operators greater assurance that Western coal won’t be dumped on a poor market – and make market conditions worse.”

Gerard concluded by saying a minerals reform policy would make a vital contribution to an overall policy for restoring America’s manufacturing strength and arresting the decline of its high-wage manufacturing jobs.

“The comprehensive energy bill will make a similar contribution to reforming the nation’s energy policy. It will stimulate coal utilization – increase fuel diversity – and lessen the dangerous over reliance on natural gas that now contributes to price spikes and the weakness of our industrial base.”