Almost exactly two years ago Gov. Scott Walker signed Republicans' polarizing mining bill into law in an effort to jump-start a giant iron mine in far northwestern Wisconsin.
The legislation dramatically re-shaped Wisconsin's mining regulations to ease the permitting process for the open-pit mine Gogebic Taconite planned to dig just south of Lake Superior. Environmentalists complained the measure would gut the state's environmental protections, but Republicans said it would create thousands of jobs.
Mineral commodity prices were down and Walker wanted to give mining companies, mining equipment makers and their suppliers a boost. Republicans even admitted it would inevitably lead to environmental damage.
And, with numerous groups already vowing to challenge the bill in court, Sen. Tom Tiffany also acknowledged that changes were made to the legislation to put the state on stronger legal ground to withstand such a challenge. "The bill reflects the reality of mining. There are going to be some impacts to the environment above the iron ore body," said Tiffany, R-Hazelhurst. "If the law is challenged and ends up in court, the judge needs to know it was the Legislature's intent to allow adverse (environmental) impacts. That way, a judge can't find fault if the environment is impact.
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Creating a positive business environment was clearly a higher priority than a clean and healthy environment for families to live and children to grow. Walker articulated his emphasis on jobs while feigning concern for the environment.
I'm thrilled to sign legislation into law protecting environmental safeguards, while providing certainty to the mine permitting process. ... I am hopeful today's actions will result in the creation of thousands of private sector jobs in the coming years. . .
This is going to be a job creator. It is a generational job creator. It's not going to all happen tomorrow. It's going to happen day after day, week after week, then year after year.
One problem though. The jobs thing just doesn't seem to be materializing. A few months after signing the bill, Caterpillar, which in 2010 bought longtime mining equipment maker Bucyrus in South Milwaukee, started laying off workers in the state. Hundreds of workers, basically half the factory, have lost their jobs.
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Caterpillar officials aren't saying much, but Joy Global, a large Milwaukee-based mining equipment maker, said lower commodity prices are leading to job cuts. Ted Doheny their CEO is not optimistic. "Accordingly, we're accelerating our global facility optimization plans and further reducing staffing."
"Global facility optimization plans . . ." Gee, I wonder what that means? Maybe sending jobs overseas?
Marquette University finance professor David Krause says part of the problem for mining is slower economic growth in huge markets like China. Krause says when growth slowed a half decade ago, there was an oversupply of minerals and prices tumbled. (NPR)
There is some hope that in a couple of years current mining equipment will need to be replaced but there isn't much hope of any real growth in the industry anytime soon.
It doesn't look like sales of mining equipment will grow much anytime soon. In fact, that mining company that demanded the special legislation that Governor Walker signed in 2013, it now says it may cancel its planned iron ore mine in northern Wisconsin. (NPR)
Well isn't that just great! At least now environmental regulations have been weakened, just the thing that looks good on a Republican presidential candidate's resume.