By Rachael Woodhouse
GCN Live.com
Massive fibrous trona from the OCI mine in the Green River Basin. (Credit: Wyoming State Geological Survey)
A key part of the economy in desert areas of Wyoming and California, the mining of trona (natural soda ash) is in danger of drying up – not due to any lack of supply, but due to unfair trade practices that favor cheap, synthetic soda ash produced in China.
While not a household name, the mineral trona is a part of our everyday lives. It is used to make products as diverse as glass, laundry detergent, and paper.
The current royalty rate of 2% is set to expire in October, and Western legislators are not happy about this. In a recent press statement, U.S. Representative Cynthia Lummis (R-Wyo.) sounded off.
“China’s unfair policies, which continue to distort the international trade of soda ash, have become an especially difficult hurdle in Wyoming’s ability to compete in the industry.
“Wyoming’s soda ash industry has begun to rebound, but the economy is still weak. Now is not the time to saddle Wyoming companies with increased taxes. We simply cannot afford to lose any of these good-paying jobs in Sweetwater County communities. That’s why I introduced H.R. 1192, which provides the certainty the soda ash industry needs to create jobs. It also helps to ensure a reliable stream of revenue for the state of Wyoming and the U.S. Treasury. H.R. 1192 will help strengthen jobs and economic vitality in Wyoming and ensure our state remains a world leader in soda ash production.”
A bag of Chinese synthetic soda ash.
According to the Wyoming State Geological Survey, trona deposits were first discovered during October of 1937, and it is still being mined in massive amounts today.
Wyoming hosts the world’s largest trona deposits, an estimated resource of 127 billion tons. Of this, 40 billion tons are mineable using conventional ’hard rock ‘ methods (Leigh, 1997). The soda ash industry in Wyoming’s Green River Basin produces approximately 11 million tons annually. This accounted for more than 95% of U.S. production, and about 38% of the world’s production in 2006 (Kostick, 2007).
Key soda ash facts:
• The six percent royalty on soda ash was imposed in 1995. In 2006, the serving Wyoming delegation worked to reduce the rate to two percent, a mandate that expires in October of 2011.
• More than 90% of U.S. soda ash production occurs in Sweetwater County, Wyoming.
• The Green River Basin in Sweetwater County contains the world’s largest natural trona deposit. Four companies in Wyoming produce over 11 million tons of soda ash a year and employ more than 3,000 people.
• Last year, America’s soda ash industry contributed more than one billion dollars to the U.S. balance of trade.
• By contrast, soda ash produced in China is a synthetic material and is produced more cheaply due to lower production costs.
Unless they want to see the trona mining industry go the way of the logging industry, hurting the Western economy, U.S. Representatives would be wise to back Lummis’ bill. But with Obama cozying up to Hu Jintao, can we hope for a final vote that will benefit America?
