Wednesday, April 28, 2010

Effect on local economy


In places where coal mining, particularly surface mining are prevalent, almost the entire economy derives from the coal operations. Coal companies must pay royalties to the federal and local governments for whatever they produce in those areas, so in many counties in, for example, southern West Virginia, rely entirely on coal companies for their tax revenues (4, 8). Also, local residents provide the skilled workmanship necessary for mining and receive their incomes by working in the mines (8). In short, without the mines, the residents would not have a base for an economy at this point. Some residents actually make money by moving out of the regions altogether; by selling off their land to the coal companies, they are able to move into surrounding areas, however, these areas are not always "better" in terms of safety, security, and quality of life (8). For example, on Kayford mountain in West Virginia, a group of residents own a 50-acre plot of land that covers about one million dollars worth of high-quality coal, but are unwilling to sell the land due to cultural ties (8). These residents make their money by renting vacation cabins atop the mountain to those still interested, despite the bleak scenery surrounding the mountain (8). When residents refused to sell land and took Arch Coal to trial over the issue of surface mining legalities and land rights, the company retaliated by immediately and permanently laying off 30 workers at one mine and another 300 temporary layoffs at various other mines; causing those workers to virtually lose their livelihood (8). Because only about 40% of the workers belonged to the United Mine Workers of America, numerous protests were struck to influence better conditions for the workers and surrounding communities and to prevent the coal companies from shutting down operations in the area, and effectively shutting down the economy (8). Image (9).

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