Kennecott is a great company and as asset in our community.Thanks
for paying millions of dollars in taxes to fund education, employing thousands
of people so that Utah's unemployment rates stay among lowest in nation,
and for doing it the right way.Keep mining!
Nice proactive PR by Kennecott.But the truth is that $20k to
encourage an early retirement is peanuts.
$20K may be peanuts, but they are looking at billions in costs to recover from
the landslide, and production being less than half their normal. They will be
happy if they are able to make a net profit of "peanuts" this year, or
probably the next couple of years.Companies exist to make profits,
and must in order to remain in business. They do NOT exist to employee people
to do jobs that do not need to be done, or provide benefits that are
unaffordable. Anyone thinking otherwise is free to start up a non-profit
business and see how long they last.The landslide is a huge hit to
Kennecott's bottom line, and frankly I would not be surprised to see them
consider closing the mine entirely. They had previously predicted closing the
present style of mining within a few years anyway.
When the federal government offers early retirement they give $25K but then take
out about $10K for taxes, etc. They should probably take it and run. To
remediate the mine and get it back to the condition it had been for 100 years
will take much time and resources. Daybreak home owners will be on their 3rd
owners by that time. The ponds will be dry as the water will need to be used t
clean the landfill where they take millions of tons worth of waste.This has been a good run but the visitor's center walls were an
indication something was happening. Again, they are just fortunate that no one
was a fatality or seriously injured. PTS syndrome may be there for some.
What kind of restoration plans are there for when they do close the mine
someday? Does it just stay a giant gaping hole, or do they do some sort of
Based on my experience in commercial risk management, the looming question is
not when Bingham returns to full capacity, but if they will ever return to full
capacity. This mine took a catastrophic hit and insurance carriers will be very
cautious going forward.