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Mining Cost Service
Section LA
Labor U.S.
CONTENTS Compiled by Krista Noyes Salzer

Page Page
Introduction . . . . . . . . . . . . . . . . . . . . . . . LA US 1 U.S. Metal and Industrial Mineral Mine
Federal Employment Taxes . . . . . . . . . . . LA US 1 Labor Survey . . . . . . . . . . . . . . . . LA Metal 1-9
State Employment Taxes . . . . . . . . . . . . . LA US 1
Mine Wage and Benefit Survey . . . . . . . . LA US 2 Selected Metal and Industrial Mineral
Mine Wage Scales and Benefit Plans
Table 1. State Unemployment Grouped by State . . . . . . . . . . . LA Metal 10- 68
Insurance Rates - 2011 . . . . . . . LA US 4
U.S. Coal Mine Labor Survey . . . . . . LA Coal 1-7
Table 2. State Workers' Compensation
Rates - 2011 . . . . . . . . . . . . . . . LA US 7 Selected Coal Mine Wage Scales and
Benefit Plans Grouped by State . . LA Coal 8-36

U.S. Labor - Introduction

Mining Cost Service conducts this annual survey of 0.6% after June 20, 2011. This tax is fully paid by the
mining wages, benefit plans and employment taxes to employer.
provide current information for estimating labor costs for
new projects, and to provide comparative information for Social Security Tax and Medicare Tax
establishing wages and benefit plans for new and existing The Social Security Tax (FICA) and Medicare Tax
operations. State and federal employment tax rates are provide federal funding for retirement, disability,
also summarized. The survey region encompasses the medical and other benefits to workers. Employer and
U.S. employee share in payment of these taxes. Since
This year's metal and industrial mineral mine survey 1994, the Medicare Tax has been calculated and
was conducted between July 2011 and January 2012. applied separately from Social Security Tax.
The coal mine survey was conducted between July 2011 The wage base for 2011 is $106,800 for Social
and January 2012. Security Tax (old age, survivors, and disability
insurance), increasing to $110,100 in 2012; the tax
FEDERAL EMPLOYMENT TAXES rate is 4.2% for employees and 6.2% for employers in
United States' federal employment taxes comprise 2011, and 6.2% for both employees and employers in
Federal Withholding (Income) Tax, Social Security 2012.
(FICA) Tax, and Federal Unemployment (FUTA) Tax. For Medicare, the rate is 1.45% each for
employers and employees, with all wages subject to
Federal Withholding Tax tax.
Withholding (income) taxes are deducted from the
employee's wages and paid to the federal government by STATE EMPLOYMENT TAXES
the employer. They are fully paid by the employee, so All states impose an unemployment insurance tax and
need not be considered in cost estimating. require employers to carry workers' compensation
insurance.
Federal Unemployment Tax
The Federal Unemployment Tax (FUTA) provides Unemployment Insurance Tax
funding for federal support of state unemployment Unemployment insurance taxes are collected from all
programs. The tax rate for 2011 is 6.2% of wages paid, employers to provide state funding for payment of
up to a maximum wage of $7,000 per year for each benefits to unemployed workers. Normally the
employee. Following June 30, 2011 the FUTA tax rate employer pays the entire amount of this tax. The
goes down to 6.0%. A credit up to a maximum of 5.4% exception is Alaska where employees may be
of taxable wages can be taken against this tax for state required to contribute a share.
unemployment taxes paid. The FUTA tax rate after
taking the state tax credit is 0.8%. This decreased to

LA US
Copyright © 2011 InfoMine USA, Inc. 1
U.S. Labor - Introduction

Tax rates are established yearly for each employer. representing 51 metal and industrial mineral mines
Several methods are used by the states for calculating the selected from the 119 included in the 2011 survey.
rates, but in most cases rates depend upon two variables: We selected 328 coal mines from the 59 mines
the employer's experience record and the status of the responding to the 2011 coal mine survey results for
state's unemployment fund. An employer pays a higher inclusion in Mining Cost Service. These mines are
rate if many claims for benefits have been filed against listed on pages LA Coal 8-36. All of the mines are
his account by laid-off workers. All employers pay identified by a code number only.
higher rates if the state fund is low. Additional compensation plan summaries for all
A new employer with no experience record is usually the surveyed mines included in the statistical tables
charged a standard rate for a period of time ranging from are available in two reports from InfoMine USA, Inc.
one to four years until he qualifies for a calculated rate The reports also contain salary scales for managerial,
based on his experience record. This standard rate may technical and support personnel.
be fixed by state law, it may be an average for the state, Survey statistics are tabulated in both the metal
or it may be an average for that industry in the state. and industrial mineral mine section and the coal mine
The tax is calculated by multiplying the rate times section. Mines are grouped by type: surface metal
wages paid. Most states have a maximum annual wage, and industrial mineral, underground metal and
called the "wage base", which is taxable by this formula. industrial mineral, surface coal, and underground coal
Wages paid to each employee in excess of the wage base mines. They are also divided between union and non-
are not taxable. In most states, the wage base is union, and eastern United States and western United
established annually, often as a fixed percentage of the States. For this survey, eastern United States means
average wage for the state. Minnesota, Iowa, Missouri, Arkansas, Louisiana, and
Table 1 lists the new mining employer tax rate, wage all points east. Western United States includes all
base, new employer time period, and the rate range for points west of these states. Following is a brief
experienced employers in each state. description of some of the items in the statistical
tables. (These tables are found in the U.S. Metal and
Workers' Compensation Insurance Industrial Mineral Mine Labor Survey and the U.S.
All states require employers to carry insurance to pay Coal Mine Labor Survey sections that follow.)
medical and other expenses for employees injured on the
job. Until recently, state governments acted as exclusive Number of Mines
carriers for this insurance. Now some states allow The number of survey respondents by mine type is
employers to contract with private carriers. Most of stated. Some of the respondents did not answer all of
these states maintain a program for residual employers the survey questions, so in some cases, the statistics
unwilling or unable to find a private carrier. Rates are for the items to follow do not include all the mines
established for each industry based on the claim record noted here.
for that industry. Tax rates (insurance premiums) are
usually quoted as dollars per hundred dollars of wages Benefits Partially or Fully Paid by Company
paid and are chargeable against the full amount of wages. For each of the benefits listed, the number of mines
Table 2 lists current rates for surface and underground reporting full or partial company payment is stated.
coal miners, surface and underground non-coal miners,
and ore mill workers. Mines with Incentive Bonus Plans
For coal mining, state occupational disease (black Bonus plans reported include plans based on
lung) coverage is included in the rates. In some production efficiency, development advance, cost
instances, federal occupational disease premiums must be savings, ore grade, safety record, contract rates, drill
paid in addition to the rates stated. footage, gold production above a calculated
Where no workers' compensation insurance rate is breakeven, profit, attendance, and various
listed, either none has been established for the state, or combinations of these, along with commodity price.
none was identified by our survey. Each of these plans is briefly summarized in the
appendices.
MINE WAGE AND BENEFIT SURVEY
The individual mine information for U.S. mines was Paid Life Insurance Coverage
provided by company personnel or extracted from Listed here are the range and average amount of life
current union contracts. Listed in this section (pages LA insurance coverage provided at company expense.
Metal 10-68) are actual wage and benefit plan summaries

LA US
2 Copyright © 2011 InfoMine USA, Inc.
U.S. Labor - Introduction

For those mines reporting life insurance coverage as a estimating purposes, one should keep in mind that
multiple of the employee's annual wage, $65,000 was they vary inversely to the amount of wages paid, as
used as a typical annual wage. "K" means thousand. well as varying with the size of the benefit package.
The highest percentages were paid by the coal
Vacation companies, reflecting the large workers' compensation
Vacation periods listed as beginning at threshold times premiums paid by that industry.
different from the fixed times listed here are included
with the next longer threshold time. For mines reporting Shift Differential Paid
vacation times in weeks, five days was assumed to be one Included here are only those mines working multiple
week. shifts.

Total Cost of Benefits Benchmark Hourly Wages


Each employer was asked to calculate the amount his Wages for selected job classifications are listed in the
total benefit package costs as a percentage of base wages summary tables for comparison purposes. The job
paid, including voluntary and mandated benefits. categories listed were selected because they are
Total cost of benefits includes all company provided readily recognized and are common to many mines.
benefits such as vacation, health and life insurance, sick Responsibilities included under the same title can
leave, etc., plus workers' compensation, occupational vary considerably, and similar jobs can have varying
disease (black lung, etc.), unemployment insurance, titles from mine to mine. The jobs were categorized
social security, and medicare. on the basis of job title only.
The survey results are summarized here without
adjustment or verification. In using these factors for cost

LA US
Copyright © 2011 InfoMine USA, Inc. 3
TABLE 1. STATE UNEMPLOYMENT INSURANCE RATES - 2011

New Mine Wage New Mine Experienced


State Tax Rate Base Time Period Rate Range

Alabama 2.7% $8,000 1 yr. 0.2% - 6.8%

Alaska 2.63% 34,600 1 yr. 1.0% - 5.4%


0.58% Amount that can be passed on to employee

Arizona 2.0% 7,000 2 yr. 0.02% - 5.86%

Arkansas 3.7% 12,000 3 yrs. 1.0% - 10.7%

California 3.4% 7,000 3 yrs. 0.1% - 6.2%

Colorado 1.7% 10,000 1 yr. 0.1% - 5.4%


Solvency surcharge: 0.006 for first reporting year (2011) and 0.012 for second year (2012).

Connecticut 3.7% 15,000 3 yrs. 1.9% - 6.8%

Delaware 2.6% Non-construction 10,500 2 yrs. 0.3% - 8.2%


5.6% Construction

Florida 2.7% 8,500 2½ yrs. 2.0% - 5.4%

Georgia 2.7% 8,500 3 yrs. 0.3% - 7.02%

Hawaii 4.0% 34,200 1 yr. 0% - 5.4%

Idaho 3.36% 33,300 2 yrs. 0.96% - 6.8%

Illinois 3.8% Non-construction 12,740 3 yrs. 0.7% - 8.4%


4.1% Construction

Indiana 2.5% 9,500 3 yrs. 0.5% - 7.4%

Iowa 1.0% Non-construction 24,700 3 yrs. 0.0% - 7.0%


9.0% Construction

Kansas 6.0% Construction 8,000 2 yrs. 0.11% - 7.4%


4.0% All other sectors

Kentucky 2.7% Mining 8,000 3 yrs. 1.0% - 10.0%


10.0% Construction

Louisiana 6.2% 7,700 2 yrs. 0.11% - 6.2%

Maine 3.02% 12,000 2 yrs. 0.86% - 7.95%

Maryland 2.6% 8,500 2 yrs. 2.2% - 13.5%


13.3% Construction employers headquartered in another state

Massachusetts 2.83% Non-construction 14,000 1 yr. 1.26% - 12.27%


8.62% Construction

LA US
4 Copyright © 2011 InfoMine USA, Inc.
TABLE 1. STATE UNEMPLOYMENT INSURANCE RATES - 2011 (continued)

New Mine Wage New Mine Experienced


State Tax Rate Base Time Period Rate Range

Michigan 2.7% Non-construction 9,000 2 yrs. 0.06% - 10.3%


8.3% Construction

Minnesota 2.91% $27,000 3 yrs. 0.5% - 9.4%

Mississippi 1.15% 7,000 3 yrs. 0.2% - 5.4%

Missouri 2.7% Non-construction 13,000 2 yrs. 0.0% - 6.0%


3.934% Mining
4.220% Construction

Montana 2.10% Mining 27,000 3 yrs. 0.82% - 6.12%


3.0% Construction
plus - 0.18% Administrative fund tax

Nebraska 2.5% Non-Construction 9,000 1 yr. 0.0% - 8.66%


8.66% Construction

Nevada 2.95% 26,600 3½ - 4¼ yrs. 0.25% - 5.4%

New Hampshire 2.7% 12,000 1 yr. 0.5% - 7.0%


plus - 0.5% Emergency power surcharge
0.5% Emergency trust fund surcharge

New Jersey 2.6825% 29,600 3 yrs. 0.3% - 7.7%


0.3825% Amount that can be passed on to employee

New Mexico 2.0% 21,900 4 yrs. 0.03% - 5.4%

New York 4.1% 8,500 15 months 1.5% - 9.9%


plus - 0.625% Subsidiary tax

North Carolina 1.2% 19,700 2 yrs. 0.0% - 6.84%

North Dakota 1.37% Non-construction 25,500 2 yrs. 0.20% - 10.0%


10.00% Construction

Ohio 2.7% Non-construction 9,000 15 months 0.7% - 12.0%


6.4% Construction

Oklahoma 1.0% 18,600 2 yrs. 0.3% - 9.2%

Oregon 3.3% 32,300 1 yr. 2.2% - 5.4%

Pennsylvania 3.5% Non-construction 8,000 3 yrs. 3.0% - 10.8236%


9.7% Construction

Rhode Island 2.43% 19,600 3 yrs. 2.2% - 10.30%

South Carolina 3.34% 10,000 2 yrs. 0.103% - 8.789%

LA US
Copyright © 2011 InfoMine USA, Inc. 5
TABLE 1. STATE UNEMPLOYMENT INSURANCE RATES - 2011 (continued)

New Mine Wage New Mine Experienced


State Tax Rate Base Time Period Rate Range

South Dakota 1.0 - 1.2% Non-construction $11,000 2 yrs. 0.0% - 9.5%


3.0 - 6.0% Construction
plus - 1% Surcharge

Tennessee 6.6% Mining 9,000 3 yrs. 1.1% - 10.6%


8.1% Construction
2.7% All others

Texas 2.7% 9,000 1.5 yrs. 0.78% - 7.58%

Utah 1.6% Metal mining 28,600 1 yr. 0.4% - 9.4%


1.6% Non-metallic
1.6% Coal mining
5.3% Heavy & Civil Engineering

Vermont 5.5% Speciality Trade 13,000 1 yr. 1.3% - 8.4%


Contractors
6.6% Heavy & Civil Engineering
1.0% Other

Virginia 3.17% 8,000 1 yr. 0.77% - 6.87%


0.2% Fund building charge**
0.28% Pool cost charge**

**Unemployment Insurance benefits are below 50% solvency level in the trust fund,
resulting in additional charges.

Washington 3.61% Metal mining 37,300 1.5 yrs. 0.49% - 6.0%


5.20% Non-metallic mineral
mining & quarrying
5.20% Coal mining
plus - 0.02% or 0.03% for workforce training fund
0.95% social-cost tax

West Virginia 2.7% 12,000 3 yrs. 1.5% - 8.5%

Wisconsin 6.6% Construction 13,000 3 yrs. 0.07% - 7.1%


3.6% - 4.1% All others

Wyoming 2.72% Raw Materials 22,300 2 yrs. 0.67% - 10.0%


and Energy Production
3.17% Not elsewhere classified.
3.44% Construction

LA US
6 Copyright © 2011 InfoMine USA, Inc.
TABLE 2. STATE WORKERS' COMPENSATION RATES - 2011 (Dollars per $100 payroll)

Underground Surface Underground Surface Ore Mill


State Coal Mine Coal Mine NonCoal Mine NonCoal Mine Operation

Alabama* $21.26 $12.64 $5.25 $5.81 $1.79 - 6.42


Alaska 27.16 11.13 10.86 6.79 3.12 - 8.54
Arizona 38.79 10.73 12.62 6.09 2.52 - 7.30
Arkansas 32.30 9.19 7.39 4.22 2.40 - 5.45

California* -- -- 9.89 UG employees 5.71 2.67 - 5.71


6.34 Surface employees

Colorado* 4.44 4.35 3.96 3.03 1.28 - 5.26


Connecticut -- 12.98 17.63 9.53 5.42 - 18.61
Delaware* -- -- 22.91 8.49 6.70

Florida -- 5.35 7.58 3.51 3.61


Georgia* 37.94 7.39 4.94 4.22 2.37 - 3.42
Hawaii* -- 3.82 5.24 3.33 1.86 - 2.81
Idaho -- 5.12 6.88 3.85 3.41 - 6.35

Illinois 70.17 23.44 18.52 13.05 6.87 - 10.02

Indiana 23.58 7.29 3.39 2.73 1.87 - 2.46

Iowa 33.57 12.92 7.21 5.93 3.30 - 7.53


Kansas 35.69 7.19 4.72 4.67 3.06 - 4.92
Kentucky* 24.47 8.53 5.86 2.17 1.59 - 3.21

Louisiana* -- 5.93 5.88 3.74 5.18 - 5.96

Maine* -- 5.47 7.81 4.35 2.45 - 3.99


Maryland* 20.78 12.64 4.90 5.13 1.71 - 3.76
Massachusetts -- -- -- -- --
Michigan -- 9.23 6.45 7.68 6.73 - 7.68

Minnesota -- -- 13.49 7.16 12.30


Mississippi 41.14 11.62 9.60 5.65 3.28 - 5.34
Missouri 76.24 18.00 11.75 7.75 6.45 - 8.17
Montana* 20.46 8.16 7.00 6.23 1.92 - 8.45

Nebraska* -- 3.87 4.63 3.33 1.57 - 3.06

Nevada 33.30 18.04 11.74 10.69 2.64 - 8.50

New Hampshire -- 8.40 12.39 7.73 4.12 - 15.50


New Jersey -- -- -- -- --
New Mexico 14.71 4.44 4.12 2.75 2.75 - 5.12
New York -- -- 10.40 3.25 4.21

LA US
Copyright © 2011 InfoMine USA, Inc. 7
TABLE 2. STATE WORKERS' COMPENSATION RATES - 2011 (Dollars per $100 payroll)
(continued)

Underground Surface Underground Surface Ore Mill


State Coal Mine Coal Mine NonCoal Mine NonCoal Mine Operation

North Carolina -- $24.64 $23.56 $8.51 $5.69 - 9.17


North Dakota $2.31 2.31 2.31 7.58 2.06
(On first $25,500 for each employee per year)

Ohio 7.69 5.13 12.48 13.27 8.93 - 24.27


Oklahoma* 18.97 11.57 7.47 5.32 4.42 - 6.29
Oregon 28.91 10.90 12.18 9.03 2.92 - 8.19
Pennsylvania*
anthracite 81.80 24.30 4.04 3.25 lime quarries 4.72 non-coal
bituminous 30.69 7.78 2.90 quarries noc 23.33 anthracite
auger 33.99 -- 4.49 sand & gravel prep plant
4.02 mineral 4.61 bituminous
prep plant

Rhode Island* -- 5.30 7.09 3.67 2.91 - 3.53


South Carolina* -- 4.63 6.23 3.72 5.37 - 6.23
South Dakota 79.12 14.21 9.60 7.27 3.61 - 7.99
Tennessee 54.25 18.00 21.43 5.61 6.45 - 6.18

Texas* -- 8.92 8.72 8.77 5.02


Utah* 13.67 5.99 8.80 3.62 1.89 - 2.67
Vermont -- 8.82 9.49 6.69 4.80 - 9.42

Virginia 36.11 13.86 6.52 5.23 2.05 - 4.66

Washington $3.8754/hr $1.7036/hr $3.8016/hr $1.7036/hr surface mines $1.0617/hr


$1.8478/hr quarries
$1.3835/hr sand & gravel $1.8478/hr

West Virginia 35.23 11.50 10.02 5.68 3.71 - 6.06

Wisconsin -- -- 17.81 5.97 5.23 - 7.66

Wyoming 3.25 3.25 2.46 metallic 2.46 metallic 2.46 metallic


3.25 non-metallic 3.25 non-metallic 3.25 non-metallic

* Rates listed for Michigan and Minnesota are state assigned rates (assigned risk) for companies unable to find a
private carrier. For California all rates are pure premium rates and do not include administrative charges. Rates
listed for Texas are advisory rates established by the National Council on Compensation Insurance. Actual rates
will vary depending on the carrier. Rates in Alabama, Colorado, Delaware, Georgia, Hawaii, Kentucky, Louisiana,
Maine, Maryland, Montana, Nebraska, Nevada, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Utha, and
Wisconsin, are loss cost and do not include carrier loading.

LA US
8 Copyright © 2011 InfoMine USA, Inc.
U.S. Metal and Industrial Mineral Mine Survey

This year's wage and benefit survey included 56 metal transportation and/or room and board for remote mine
mines, and 63 industrial mineral mines. Most of the sites, retention bonuses, scholarships for dependent
mines are presently active. Listed in this section children, education and training assistance, adoption
(pages LA Metal 10 - 68) are actual wage and benefit assistance, matching charitable gift programs, health
plan summaries representing 51 of the mines selected club memberships, amusement park discounts,
from the survey results and arranged by state. company stock options, and a variety of other
All of the mines are identified by a code number innovative benefits.
only. Wage and benefit plan summaries for 68 Some distinct differences in employment
additional mines are available from InfoMine USA, practices are apparent between small and large mines.
Inc. in a report entitled U.S. Metal and Industrial To demonstrate the differences, we divided the mines
Mineral Mine Salaries, Wages and Benefits, 2011 between those with fewer than 100 employees (50
Survey Results. The report also contains salary scales mines) and those with more than 100 employees (69
for managerial, technical and support personnel at 93 mines). As can be seen by Table 1, miners at small
metal and industrial mineral mines. mines generally make considerably less than their
The industrial mineral mines included 30 union counterparts at large mines. Medical benefits were
and 33 non-union operations. Fifty-nine of the offered at 47 of the small mines and all of the large
industrial mineral mines increased wages in the 12 mines. Many of the mines helped offset the high cost
months preceding the survey, ranging from 1.0% to of medical and dental coverage by requiring an
4.5%. Four of the mines showed no change in wages, employee premium to participate. While most of the
and none of the mines decreased wages. Fifty-two of mines in the survey offer their employees a medical
the industrial mineral operations offered incentive plan, employees at large mines are generally more
bonus plans. likely to benefit from incentive bonus plans and
Included in this year’s survey were 32 non-union retirement plans, plus more vacation and holiday
and 24 union metal mines. Forty surveyed metal time-off.
mines increased wages during the 12 months preceding Mining company retirement packages favor
the survey, with increases ranging from 1.5% to defined contribution plans over defined benefit plans.
10.0%. Sixteen metal mines showed no change in The 401(k) and similar plans, which were originally
wages and none of the mines decreased wages. established as supplemental retirement or savings
Twenty-six non-union and 23 union metal mines benefits, are now the primary retirement program for
offered their employees the opportunity to increase some mines covered by our survey. In this year's
wages through incentive bonus plans. survey, 109 mines provided a 401(k) plan, 26 of
In addition to standard benefit items, some which offered some company contribution as the
companies offer employee assistance programs, safety only retirement benefit offered by the respective
equipment and tool allowances, uniform rental, company.

LA Metal
Copyright © 2011 InfoMine USA, Inc. 1
Table 3. Benchmark Hourly Base Wages and Benefits - Small Mines Versus Large Mines

Small Mines1 Large Mines2


Job Title (50 mines) (69 mines)
Base Wages Base Wages
(U.S. $ per hour) (U.S. $ per hour)
Surface Mines Range Average Range Average

Electrician $13.72 - 31.05 $24.19 $16.66 - 37.87 $26.62


Mechanic 12.12 - 37.57 22.52 13.85 - 35.38 24.67
Heavy Equipment Operator 10.00 - 27.00 19.99 13.37 - 30.50 23.40
Driller 12.00 - 23.89 18.75 13.37 - 29.71 24.46
Production Truck Driver 10.56 - 22.99 16.17 11.78 - 27.83 22.35
Laborer 8.75 - 23.55 17.00 11.78 - 30.39 18.95

Underground Mines

Electrician $11.53 - 29.80 $21.56 $18.76 - 32.10 $26.08


Mechanic 15.45 - 29.77 20.86 17.38 - 38.61 25.71
Miner 15.45 - 36.00 23.32 16.00 - 38.61 25.09
UG Equipment Operator 14.00 - 24.37 18.27 16.38 - 38.61 27.79
Underground Laborer 13.00 - 23.31 16.75 15.78 - 31.31 22.39
Surface Laborer (UG Mine) 16.61* 16.61 19.86 - 30.25 23.95
Milling Operations

Mill Equipment Operator $10.00 - 27.98 $21.19 $15.08 - 47.30 $25.12


Mill Laborer 9.00 - 23.72 17.19 11.78 - 30.25 20.17

Benefits (% of mines) (% of mines)

Incentive Bonus Plans 86% 84%


Life Insurance Plans 84% 97%
Medical Benefits 94% 99%
Retirement Plans 82% 99%

Total Cost of Benefits


38.1% 44.0%
(as a % of wages)

1
Fewer than 100 employees, 2 100 employees or more.
* Limited data.

LA Metal
2 Copyright © 2011 InfoMine USA, Inc.
TABLE 4. Wage and Benefit Summary: Surface Metal and Industrial Mineral Mines - Eastern U.S.

Union Non-union
Number of mines 23 8

Benefits partially or fully paid by company # of mines # of mines


Life insurance 22 7
Medical insurance 23 7
Dental insurance 22 7
Vision insurance 20 7
Retirement benefits 23 7
Sick leave 17 5
Disability Income Insurance 22 7

Mines with incentive bonus plans 18 7

# of mines av. change # of mines av. change


Wages increased in last 12 months 22 +3.0% 8 +2.9%
Wages decreased in last 12 months 0 --- 0 ---
No change in wages in last 12 months 1 0% 0 0%

range average range average


Number of paid holidays per year 6 - 11 9 7 - 10 9

Paid life insurance coverage ($) 25 - 120K 60K 10 - 170K 76K

Number of days vacation provided after


the following years service
1 yr 5 - 10 7 5 - 15 9
3 yr 10 - 15 11 5 - 15 11
5 yr 10 - 15 13 10 - 15 13
10 yr 15 -20 15 10 - 20 14
15 yr 15 - 25 17 10 - 20 17
20 yr 15 - 25 20 15 - 25 19
25/plus 15 - 30 23 15 - 25 19

Total cost of benefits as a % of wages paid, incl.


workers’ comp., unemployment insurance, social 30 -75% 42% 33 - 55% 40%
security and others

Shift differential paid (US$/hour)


Evening $0.15 - 0.75 $0.35 all same $0.50
Night 0.20 - 0.75 0.46 all same 0.50

Benchmark hourly wages (US$/hour)


Mine Laborer $10.27 - 30.39 $20.08 $10.00 - 24.04 $17.09
Heavy equipment operator 12.97 - 30.39 21.76 15.45 - 26.44 19.09
Drill operator 13.37 - 28.74 22.93 13.63 - 16.18 14.90
Production truck driver 11.78 - 27.83 22.82 14.06 - 17.67 15.67
Electrician 13.72 - 30.39 24.24 11.53 - 31.25 23.02
Mechanic 13.72 - 37.57 23.52 13.85 - 27.34 22.21
Mill equipment operator 14.29 - 47.30 24.92 13.10 - 25.75 18.93
Mill laborer 10.37 - 28.74 19.89 12.31 - 24.04 17.40

LA Metal
Copyright © 2011 InfoMine USA, Inc. 3
TABLE 5. Wage and Benefit Summary: Surface Metal and Industrial Mineral Mines - Western U.S.

Union Non-union
Number of mines 21 43

Benefits partially or fully paid by company # of mines # of mines


Life insurance 21 37
Medical insurance 21 40
Dental insurance 21 39
Vision insurance 18 37
Retirement benefits 21 36
Sick leave 12 19
Disability Income Insurance 21 32

Mines with incentive bonus plans 19 38

# of mines av. change # of mines av. change


Wages increased in last 12 months 17 +3.4% 36 +3.5%
Wages decreased in last 12 months 0 --- 0 ---
No change in wages in last 12 months 4 0% 7 0%

range average range average


Number of paid holidays per year 8 - 12 10 0 - 12 9

Paid life insurance coverage ($) 29 - 600K 102K 30 - 600K 126K

Number of days vacation provided after


the following years service
1 yr 5 - 10 7 5 - 18 10
3 yr 10 - 11 10 5 - 27 11
5 yr 10 - 15 12 5 - 32 14
10 yr 15 - 20 16 5 - 40 17
15 yr 15 - 22.5 18 5 - 42.5 19
20 yr 18 - 25 21 5 - 45 21
25/plus 20 - 25 22 5 - 47.5 21

Total cost of benefits as a % of wages paid, incl.


workers’ comp., unemployment insurance, social 35 - 62% 45% 16 - 57% 40%
security and others

Shift differential paid (US$/hour)


Evening $0.20 - 0.85 $0.38 $0.20 - 1.00 $0.44
Night 0.25 - 1.35 0.53 0.15 - 1.00 0.50

Benchmark hourly wages (US$/hour)


Mine Laborer $12.70 - 23.23 $18.01 $8.75 - 23.55 $17.26
Heavy equipment operator 16.38 - 29.00 23.28 10.00 - 30.50 21.41
Drill operator 22.09 - 26.10 23.90 12.00 - 29.71 23.08
Production truck driver 20.86 - 26.10 23.12 10.56 - 26.49 18.31
Electrician 21.63 - 37.87 26.49 18.50 - 32.10 26.21
Mechanic 19.82 - 30.98 24.94 12.50 - 35.38 24.08
Mill equipment operator 16.38 - 44.41 24.04 10.00 - 32.93 23.00
Mill laborer 15.02 - 25.25 19.06 9.00 - 26.66 17.97

LA Metal
4 Copyright © 2011 InfoMine USA, Inc.
TABLE 6. Wage and Benefit Summary: Underground Metal and Industrial Mineral Mines - Eastern U.S.

Union Non-union
Number of mines 1 3

Benefits partially or fully paid by company # of mines # of mines


Life insurance 1 3
Medical insurance 1 3
Dental insurance 1 3
Vision insurance 1 3
Retirement benefits 1 3
Sick leave 1 0
Disability Income Insurance 1 1

Mines with incentive bonus plans 1 3

# of mines av. change # of mines av. change


Wages increased in last 12 months 1 +3.0% 2 +3.3%
Wages decreased in last 12 months 0 --- 0 ---
No change in wages in last 12 months 0 --- 1 0%

range average range average


Number of paid holidays per year 13 8 - 10 9

Paid life insurance coverage ($) 100K 50 - 120K 80K

Number of days vacation provided after


the following years service
1 yr 5 10 10
3 yr 10 10 10
5 yr 10 15 15
10 yr 15 15 - 20 17
15 yr 20 20 20
20 yr 20 20 - 25 22
25/plus 25 20 - 25 22

Total cost of benefits as a % of wages paid, incl.


workers’ comp., unemployment insurance, social 69% 35 - 39% 37%
security and others

Shift differential paid (US$/hour)


Evening $0.50 na
Night 0.75 na

Benchmark hourly wages (US$/hour)


Underground laborer $18.29 - 19.80 $19.05 $14.00 - 20.92 $18.12
Underground equipment operator --- --- 24.61 - 27.83 26.22
Miner 19.80* 19.80 15.45 - 19.10 17.26
Electrician 18.76 - 21.71 20.24 20.00 - 27.83 24.40
Mechanic 19.80 - 26.32 23.06 19.10 - 27.83 22.28
Mill equipment operator 18.29 - 24.94 21.62 16.00 - 27.83 21.88
Mill laborer 18.29* 18.29 14.00 - 20.92 18.12

* limited data

LA Metal
Copyright © 2011 InfoMine USA, Inc. 5
TABLE 7. Wage and Benefit Summary: Underground Metal and Industrial Mineral Mines - Western U.S.

Union Non-union
Number of mines 9 11

Benefits partially or fully paid by company # of mines # of mines


Life insurance 9 8
Medical insurance 9 10
Dental insurance 9 8
Vision insurance 5 7
Retirement benefits 9 8
Sick leave 5 8
Disability Income Insurance 8 5

Mines with incentive bonus plans 7 9

# of mines av. change # of mines av. change


Wages increased in last 12 months 7 +3.1% 6 +4.6%
Wages decreased in last 12 months 0 --- 0 ---
No change in wages in last 12 months 2 0% 5 0%

range average range average


Number of paid holidays per year 8 - 12 10 5 - 11 8

Paid life insurance coverage ($) 25 - 130K 57K 10 - 130K 99K

Number of days vacation provided after


the following years service
1 yr 5 - 10 6 4 - 18 9
3 yr all same 10 5 - 18 10
5 yr 10 - 15 12 5 - 20 13
10 yr 15 - 20 17 5 - 24 15
15 yr 15 - 20 17 5 - 26 16
20 yr 18 - 25 21 5 - 28 18
25/plus 20 - 30 24 5 - 28 18

Total cost of benefits as a % of wages paid, incl.


workers’ comp., unemployment insurance, social 40 - 65% 49% 15 - 57% 34%
security and others

Shift differential paid (US$/hour)


Evening $0.25 - 0.60 $0.39 $0.20 - 0.25 $0.23
Night 0.35 - 1.00 0.54 0.20 - 0.40 0.33

Benchmark hourly wages (US$/hour)


Underground laborer $15.78 - 31.31 $21.03 $13.00 - 26.65 $20.69
Underground equipment operator 15.86 - 38.61 25.84 14.00 - 30.75 23.14
Miner 17.63 - 38.61 25.28 16.00 - 36.00 26.67
Electrician 19.09 - 30.70 23.64 18.00 - 32.10 26.98
Mechanic 17.38 - 38.61 24.51 17.00 - 32.10 25.55
Mill equipment operator 18.44 - 36.26 26.54 20.00 - 32.81 26.50
Mill laborer 14.76 - 30.25 20.74 17.41 - 26.37 21.25

*Limited data

LA Metal
6 Copyright © 2011 InfoMine USA, Inc.
TABLE 8. Wage and Benefit Summary: Surface and Underground Metal Mines - All U.S.

Union Non-union
Number of mines 24 32

Benefits partially or fully paid by company # of mines # of mines


Life insurance 24 23
Medical insurance 24 27
Dental insurance 24 25
Vision insurance 17 24
Retirement benefits 24 23
Sick leave 12 17
Disability Income Insurance 23 14

Mines with incentive bonus plans 23 26


# of mines av. change # of mines av. change
Wages increased in last 12 months 19 +3.3% 21 +4.0%
Wages decreased in last 12 months 0 --- 0 ---
No change in wages in last 12 months 5 0% 11 0%

range average range average


Number of paid holidays per year 8 - 11 10 5 - 11 9

Paid life insurance coverage ($) 25 - 130K 63K 10 - 300K 113K

Number of days vacation provided after


the following years service
1 yr 5 - 10 7 4 - 18 11
3 yr 10 - 15 10 5 - 27 12
5 yr 10 - 15 12 5 - 32 15
10 yr 15 - 20 16 5 - 40 18
15 yr 15 - 25 17 5 - 42.5 19
20 yr 18 - 25 21 5 - 45 22
25/plus 20 - 30 24 5 - 47.5 22

Total cost of benefits as a % of wages paid, incl.


workers’ comp., unemployment insurance, social 35 - 65% 50% 15 - 57% 39%
security and others

Shift differential paid (US$/hour)


Evening $0.30 - 0.48 $0.34 $0.25 - 1.00 $0.46
Night 0.40 - 0.50 0.46 0.15 - 1.00 0.40

Benchmark hourly wages (US$/hour)


Laborer - surface mine $16.67 - 30.39 $22.42 $10.00 - 23.55 $18.41
Laborer - underground mine 15.78 - 22.86 19.08 13.00 - 26.65 19.85
Laborer - mill 14.76 - 28.74 21.04 12.88 - 26.66 19.65
Mill equipment operator 17.85 - 29.58 23.99 14.16 - 32.93 24.59
Mechanic - surface mine 12.12 - 30.98 23.62 16.10 - 35.38 25.08
Electrician - underground mine 19.09 - 30.70 23.64 18.00 - 32.10 26.02
Equipment operator - underground 15.86 - 28.13 21.91 14.00 - 30.75 23.14
Production truck driver 22.38 - 27.83 25.19 15.40 - 26.49 21.14
Heavy equipment operator - surface 20.98 - 30.39 25.43 13.13 - 30.50 23.66

LA Metal
Copyright © 2011 InfoMine USA, Inc. 7
TABLE 9. Wage and Benefit Summary: Surface and Underground Industrial Mineral Mines
- All U.S.
Union Non-union
Number of mines 30 33

Benefits partially or fully paid by company # of mines # of mines


Life insurance 29 33
Medical insurance 30 33
Dental insurance 29 32
Vision insurance 27 30
Retirement benefits 30 32
Sick leave 23 15
Disability Income Insurance 29 32

Mines with incentive bonus plans 20 32

# of mines av. change # of mines av. change


Wages increased in last 12 months 28 +3.0% 31 +3.2%
Wages decreased in last 12 months 0 --- 0 ---
No change in wages in last 12 months 2 0% 2 0%

range average range average


Number of paid holidays per year 6 - 13 10 0 - 12 9

Paid life insurance coverage ($) 25 - 600K 82K 10 - 600K 109K

Number of days vacation provided after


the following years service
1 yr 5 - 10 7 5 - 10 9
3 yr 10 - 15 10 5 - 15 10
5 yr 10 - 15 13 5 - 15 13
10 yr 15 - 20 16 5 - 20 15
15 yr 15 - 22.5 17 5 - 20 17
20 yr 15 - 25 21 5 - 25 19
25/plus 15 - 30 22 5 - 25 19

Total cost of benefits as a % of wages paid, incl.


workers’ comp., unemployment insurance, social 30 - 75% 42% 16 - 55% 39%
security and others

Shift differential paid (US$/hour)


Evening $0.15 - 0.85 $0.40 $0.20 - 0.60 $0.37
Night 0.20 - 1.35 0.57 0.40 - 1.00 0.56

Benchmark hourly wages (US$/hour)


Laborer - surface mine $10.27 - 25.39 $17.61 $8.75 - 24.04 $16.49
Laborer - underground mine 16.61 - 31.31 21.50 19.45 - 20.92 20.18
Laborer - mill 10.37 - 30.25 18.88 9.00 - 24.04 17.17
Mill equipment operator 14.29 - 47.30 24.96 10.00 - 32.81 21.58
Mechanic - surface mine 13.72 - 37.57 23.32 12.50 - 29.73 22.88
Electrician - underground mine 18.76 - 25.40 21.92 25.36 - 28.70 27.30
Equipment operator - underground 17.68 - 38.61 31.00 19.66 - 27.83 24.68
Production truck driver 11.78 - 20.86 17.69 10.56 - 22.99 15.73
Heavy equipment operator - surface 12.97 - 29.00 21.52 10.00 - 27.15 19.49

LA Metal
8 Copyright © 2011 InfoMine USA, Inc.
TABLE 10. Wage and Benefit Summary: Surface and Underground Metal and Industrial
Mines - All U.S.
Union Non-union
Number of mines 54 65

Benefits partially or fully paid by company # of mines # of mines


Life insurance 53 56
Medical insurance 54 61
Dental insurance 53 57
Vision insurance 44 54
Retirement benefits 53 55
Sick leave 35 32
Disability Income Insurance 52 46

Mines with incentive bonus plans 43 58

# of mines av. change # of mines av. change


Wages increased in last 12 months 47 +3.1% 52 +3.5%
Wages decreased in last 12 months 0 --- --- ---
No change in wages in last 12 months 7 0% 13 0%

range average range average


Number of paid holidays per year 6 - 13 10 0 - 12 9

Paid life insurance coverage ($) 25 - 600K 76K 10 - 600K 111K

Number of days vacation provided after


the following years service
1 yr 5 - 10 7 4 - 18 10
3 yr 10 - 15 10 5 - 27 11
5 yr 10 - 15 12 5 - 32 14
10 yr 15 - 20 16 5 - 40 17
15 yr 15 - 25 17 5 - 42.5 18
20 yr 15 - 25 21 5 - 45 20
25/plus 15 - 30 23 5 - 47.5 20

Total cost of benefits as a % of wages paid, incl.


workers’ comp., unemployment insurance, social 30 - 75% 45% 15 - 57% 39%
security and others

Shift differential paid (US$/hour)


Evening $0.15 - 0.83 $0.37 $0.20 - 1.00 $0.41
Night 0.20 - 1.35 0.51 0.15 - 1.00 0.47

Benchmark hourly wages (US$/hour)


Laborer - surface mine $10.27 - 30.39 $19.02 $8.75 - 24.04 $17.23
Labor - underground mine 15.78 - 31.31 20.46 13.00 - 26.65 19.92
Laborer - mill 10.37 - 30.25 19.67 9.00 - 26.66 18.19
Mill equipment operator 14.29 - 47.30 24.63 10.00 - 32.93 23.02
Mechanic - surface mine 12.12 - 37.57 23.44 12.50 - 35.38 23.76
Electrician - underground mine 18.76 - 30.70 23.02 18.00 - 32.10 26.34
Equipment operator - underground 15.86 - 38.61 25.84 14.00 - 30.75 23.70
Production truck driver 11.78 - 27.83 22.94 10.56 - 26.49 17.98
Heavy equipment operator - surface 12.97 - 30.39 22.59 10.00 - 30.50 21.03

LA Metal
Copyright © 2011 InfoMine USA, Inc. 9
ALABAMA

Mine Code: 487, Alabama.


Limestone, Surface, 2,300,000 short tons per year.
Union: Paper, Allied Industrial, Chemical, & Energy Workers International Union.
95 employees: 37 administrative/managerial and 58 hourly employees.

Hourly
Job Classification Wage Base
Electrical 1 $28.01
Mechanical 1 26.38
Control Room Operator 22.95
Kiln Attendant 20.07
Bulk Loader 19.57
Mechanical 3 19.57
Slurry Operator 18.66
Front End Loader Operator 18.19
Packer 17.76
Laborer 16.82
Attendant 16.82

Wages increased 3% in the last 12 months, effective June 1, 2011.

Benefits % paid Vacation


Life Insurance yes 100 2 x salary Years Days
Medical Insurance yes 80 Service Vacation
Dental Insurance yes 80 1 5
Vision Insurance yes 100 3 10
5 10
Retirement Benefits yes 10 15
401K plan - Salaried: Company match 50% up to 6% of wages. 15 15
Union: Company match 25% up to 6% of wages. 20 20
Defined benefit - Union only 25/plus 20
Sick Leave yes Salaried only
Disability Income Ins. yes 100
Union: Short-term disability - up to 26 weeks.
Salaried: 90 days salary continuation.

10 days paid holidays per year.

Shift differential: None.

Cost of benefits: (as a % of wages) Mandated Voluntary*


Hourly 8.5% 30%
Salaried 8.0% 27%
*Cost of time-off (vacations, holidays, and sick leave) not included.

Incentive bonus plan: Company pays a bonus based on operating results against operating budget. Payouts vary
between 0% and 120%. Personal objectives are also a component of this plan.

LA Metal
10 Copyright © 2011 InfoMine USA, Inc.
ALABAMA

Mine Code: 729a, Alabama.


Limestone and cement, Surface.
Union.
144 employees: 36 administrative/managerial and 108 hourly employees.

Hourly Hourly
Job Classification Wage Base Job Classification Wage Base
Process Attendant V $47.30 Process Attendant IV $21.77
Central Control Operator 26.75 Process Attendant III 20.82
Electrician AA 24.68 Process Attendant II 20.82
Millwright A 24.88 Millwright D2 19.87
Mobile Equipment A 24.64 Material Handling Equipment Attendant 19.87
Quality Control Tech 5 24.64 Process Attendant I 19.87
Integration 24.09 Millwright D1 18.90
Integration 23.65 Material Handling Equipment Attendant 18.90
Millwright B2 23.65 Helper 18.90
Process Attendant V 23.65 Millwright Helper 17.95
Quality Control Technician IV 23.65 Helper 18.49
Millwright B1 22.71 Serviceman IV 18.49
Materials Handling Equipment Attendant 22.71 Serviceman II 16.04
Electrician C2 21.77 Serviceman I 15.43

Wages increased 3.5% in the last 12 months, effective January 1, 2011.

Benefits % paid Vacation


Life Insurance yes 100 2x salary Years Days
AD&D yes 100 2x salary Service Vacation
Medical Insurance yes 100 1 10
Dental Insurance yes 100 3 10
Vision Insurance yes 100 5 15
Retirement Benefits yes 10 15
401(k) plans: company provides 3% of base pay whether employee 15 17
contributes or not. If employee contributes the company provides 20 20
a 50% match on employee contributions up to 6% of pay. 25/plus 20
Sick Leave yes 5 days
Disability Income Ins. yes
Salary continuation (STD) begins after absence of five days work
in a 30 day period, up to 26 weeks. Payment varies on length of
service.
Long Term Disability (LTD) begins after 180 days of disability
and continues until age 65. Benefit amount is 60% of base salary.

10 days paid holidays per year.


Shift differential: None.
Incentive bonus plan: None.
Other benefits: Company offers flexible spending accounts, Employee Assistance Plan (EAP), and tuition
reimbursement program.

LA Metal
Copyright © 2011 InfoMine USA, Inc. 11
ALASKA

Mine Code: 652, Alaska.


Gold, Surface, Development.
Non-union.
31 employees: 6 administrative/managerial, 22 hourly and 3 contractor employees.

Hourly Hourly
Job Classification Wage Base Job Classification Wage Base
Electrician $31.00 Mine Operator I $21.50
Heavy Equipment Mechanic 31.00 Process Operator I 21.50
Mine Operator III 27.00 Site Services Technician 21.50
Process Operator III 27.00 Fuel/Lube Mechanic 21.50
Millwright 27.00 Mine Trainee/Laborer 19.50
Mine Operator II 24.50 Process Trainee 19.50
Process Operator II 24.50 Laborer 19.50

Wages increased $0.50/hour in the last 12 months, effective January 1, 2011.

Benefits % paid Vacation


Life Insurance yes 100 2x annual earnings up Years Hours
to $300,000 Service Vacation
AD&D yes 100 2x annual earnings 1 80
Medical Insurance yes 100 3 80
Dental Insurance yes 100 5 120
Vision Insurance yes 100 10 160
One exam per calendar year and one pair of glasses every 24 months 15 160
20 160
Retirement Benefits yes 25/plus 160
Simple IRA: Company matches up to 3% of employee contribution

Sick Leave yes 100 part of PLT*


Disability Income Insurance yes
Short Term Disability: 67%of weekly earnings through 13th week of
disability.
Long Term Disability: 66.67% of monthly earnings.

*100 hours paid personal leave time (PLT) per year.

Shift Schedule: 12 hour shifts, 2 weeks on 1 week off.

Cost of benefits: (as a % of wages) Mandated Voluntary


10% 35%

Incentive bonus plans: This mine offers an annual incentive program.

Other benefits: Employee assistance program (EAP), transportation to mine site, military leave, jury duty - 7 days,
bereavement leave - 2 days, and safety equipment allowance- $250.00 per year.

LA Metal
12 Copyright © 2011 InfoMine USA, Inc.
ALASKA

Mine Code: 525, Alaska.


Gold, Underground, 125,000 ounces per year.
Non-union.
218 employees: 68 administrative/managerial and 150 hourly employees.

Hourly Hourly
Job Classification Wage Base Job Classification Wage Base
Carpenter/Construction Leadman $29.83 Assay Lab Technician II $24.03
UG Mine Leadman 29.83 Surface Equipment Operator III 24.03
Electrician I 28.80 Miner IV 22.55
Mechanic I 28.80 Electrician IV 22.55
Millwright Mechanic 28.80 Mechanic IV 22.55
Miner I 28.80 Mill Operator IV 21.91
Senior Water Treatment Plant Operator 28.80 Assay Lab Technician III 21.91
Mill Operator I 27.95 Mill Operator IV 21.91
Senior Lab Technician 27.95 Surface Equipment Operator IV 21.91
Electrician II 27.06 Assay Lab Technician III 21.91
Mechanic II 27.06 Mill Operator V 20.46
Miner II 27.06 Miner V 19.10
Water Treatment Plan Operator I 27.06 Mechanic V 19.10
Mill Operator II 26.25 Mill Operator V 18.19
Surface Equipment Operator II 26.25 Surface Equipment Operator V 18.19
Assay Lab Technician I 26.25 Underground Mine Trainee 17.24
Mechanic III 25.46 Millwright/Mechanic Trainee 17.24
Miner III 25.46 Surface Equipment Operator Trainee 16.45
Warehouse Technician I 25.46 Mechanic I 16.45
Mill Operator III 24.03

No change in wages in the last 12 months.

Benefits % paid Vacation


Life Insurance yes 100 2 x annual wage Years Days
AD&D yes 100 Service Vacation
Medical Insurance yes 100 1 10
Dental Insurance yes 100 3 10
Vision Insurance yes 100 5 15
10 15
Retirement Benefits yes 15 20
Defined contribution: 5% of annual salary 20 20
401K - Company match 50% on first 6% of wages 25/plus 20
Sick Leave yes 100
Disability Income Insurance
Hourly - Short-term - disability at 60% of wage
Long-term - disability at 60% of wage up to age 65.
Salaried - 90 days at full pay, then 60% up to age 65.

10 days paid holidays per year.

Shift differential: Night - $.25/hour.


Shift schedule: 12 hour shifts.

LA Metal
Copyright © 2011 InfoMine USA, Inc. 13
ALASKA

Mine Code: 525, Alaska. (continued)

Cost of benefits: (as a % of wages) Mandated Voluntary


Hourly: 11.37% 18.88%
Salaried: 11.37% 18.88%

Incentive bonus plans:

Hourly: Safety bonus.

Salaried: Objective based incentive program based on completion of goals/targets at the Corporate,
Project, and individual levels. Percentage targets set based on grade level. Employees must
be employed with at the end of the year to qualify for payout.

Other benefits: Relocation assistance - $5,000 maximum, personal leave, jury duty leave - as required by trial length,
EAP (employee assistance program), bereavement leave - 3 days, transportation to mine site
provided, military leave, tool allowance - up to $1,000 for certain positions, safety equipment is
provided, $125 annual safety boot allowance.

LA Metal
14 Copyright © 2011 InfoMine USA, Inc.
ARIZONA

Mine Code: 382, Arizona.


Copper, Surface, 3,000,000 short tons ore per year.
Non-union.
435 employees: 54 administrative/managerial, 293 hourly, and 88 contractor employees.

Hourly Hourly
Job Classification Wage Base Job Classification Wage Base
Lead Hand $25.00 Equipment Operator Step 3 $19.53
Master Operator 23.10 Truck Driver II 17.60
Master Technician 23.10 Maintenance Technician Step 2 17.60
Loader II 21.73 Operations Technician Step 2 17.60
Driller II 21.73 Equipment Operator Step 2 17.60
Lead Maintenance Technician 21.73 Warehouse Counterman 17.60
Lead Operations Technician 21.73 Truck Driver I 15.40
Lead Equipment Operator 21.73 Equipment Operator Step 1 15.40
Loader I 20.63 Maintenance Technician Step 2 Trainee 15.40
Driller I 20.63 Operations Technician Step 2 Trainee 15.40
Senior Maintenance Technician 20.63 Truck Driver Trainee 13.20
Senior Operations Technician 20.63 Equipment Operator Trainee 13.20
Senior Equipment Operator 20.63 Maintenance Technician Step 1 Trainee 13.20
Truck Driver III 19.53 Operations Technician Step 1 Trainee 13.20
Maintenance Technician Step 3 19.53 Stock Clerk 13.20
Operations Technician Step 3 19.53

Wages increased an average of 10% in the last 12 months, effective September 2011.

Benefits % paid Vacation


Life Insurance yes 100 $100,000 Years Days
AD&D yes 100 $100,000 Service Vacation
Medical Insurance yes 85 1 10
Dental Insurance yes 85 3 10
Vision Insurance yes 85 5 10
10 10
Retirement Benefits yes 15 10
401(k) Plan. 20 10
25/plus 10
Sick Leave no
Disability Income Ins. no 60% of gross up to 13
weeks.

10 days paid holidays per year.

Shift differential: Evening - $0.50/hour, night - $0.50/hour.

Cost of benefits: 22% of wages.

Other benefits: Relocation assistance - not to exceed $8,000, jury duty leave - trial days, bereavement leave - 3 days,
housing subsidies - $1,000 per month for key personnel, tool allowance - $100 per quarter after 90
days, prescription safety glasses - $100 per year.

LA Metal
Copyright © 2011 InfoMine USA, Inc. 15
ARIZONA

Mine Code: 382, Arizona. (continued)

Incentive bonus plan: Incentive stock options are granted at the discretion of the CEO and Board of Directors.

Individual safety incentive plan: A contest where employees earn entrys each month. One entry per
month when the following conditions are met (max 12 entries).
- Zero personal injuries above 1st aid
- Zero incidents
- Zero unexcused absences
- Zero near misses with potential of a major consequence
- Zero spills over 20 gallons
- Zero property damage
- Complete and turn in pre-shift inspections
- Do not quit
- Do not get fired.
Grand Prize is a choice of specific model waverunner, motorcycle, or snow machine, and $3,600 for
state and federal taxes.

Crew incentive plan: lunch or equivalent (maximum $10.00/person) for the entire crew will be held
on the first shift of month for the previous month when the following conditions are met:
- Zero personal injuries above 1st aid,
- Zero incidents,
- Zero near misses with potential of a major consequence,
- Zero spills over 20 gallons,
- Zero property damage,
- Do not quit,
- Do not get fired.

LA Metal
16 Copyright © 2011 InfoMine USA, Inc.
ARIZONA

Mine Code: 261, Arizona.


Limestone, Surface, 2,600,000 short tons per year.
Union: Brotherhood of Boilermakers.
87 employees: 23 administrative/managerial and 64 hourly employees.

Hourly Hourly
Job Classification Wage Base Job Classification Wage Base
Electrician $25.20 Kiln Utility $23.35
Maintenance 24.28 Loader Operator 22.93
Kiln Operator 23.95 Electrician Trainee 22.85
Control Room Operator 23.95 Quarry Driller 22.20
Electrician 23.95 Kiln Assistant 21.53
Serviceman 23.63 Maintenance Man Trainee 21.42
Maintenance 23.63 Utility Equipment Operator 21.18
Quarry Leadman 23.58 Truck Driver 21.18
Quarry Leadman 23.37 Laborer 16.52

Wages increased 3% in the last 12 months, effective February, 2011.

Benefits % paid Vacation


Life Insurance yes 100 1.5 x wage-hourly Years Days
2 x salary-salaried Service Vacation
Medical Insurance yes 80 1 5
Dental Insurance yes 80 3 10
Vision Insurance yes 100 5 10
Retirement Benefits yes 10 15
401K plan - Salaried: Company match 50% up to 6% of wages. 15 15
Union: Company match 25% up to 6% of wages. 20 20
25/plus 20
Defined benefit - Union only

Sick Leave yes Salaried only


Disability Income Ins. yes 100
Union: Short-term disability - up to 26 weeks.
Salaried: 90 days salary continuation.

10 days paid holidays per year.

Shift differential: Evening - $.30/hour; night - $.50/hour.

Cost of benefits: (as a % of wages) Mandated Voluntary*


Hourly 8.5% 30%
Salaried 8.0% 27%
*Cost of time-off (vacations, holidays, and sick leave) not included.

Incentive bonus plan: Company pays a bonus based on operating results against operating budget. Payouts vary
between 0% and 120%. Personal objectives are also a component of this plan.

LA Metal
Copyright © 2011 InfoMine USA, Inc. 17
ARIZONA

Mine Code: 196, Arizona.


Copper, Surface, 12,000,000 pounds copper per year.
Unions: Joint union - 6 unions
156 employees: 40 administrative/managerial, 57 hourly and 59 contractor employees.

Hourly Hourly
Job Classification Wage Base Job Classification Wage Base
Shovel Operator $24.65 Concentrator Operator $22.10
Production Loader 24.65 General SX-EW Operator 22.10
General Heavy Duty Mechanics 23.80 Tailings Dam Construction Crew 22.10
Specialists Crafts - all 23.80 Environmental/Water Facility Operator 22.10
Mill Lead Operator 23.80 Reagent Mixer 21.25
Heavy Duty Mech Operator 23.80 Electrowinning Operator 20.40
Loader Operator (12 yards or larger) 23.80 Lube Mechanic Trainee 20.40
Refrigeration Repairman 23.80 Tire Mechanic Trainee 20.40
Environmental/Water Facility Specialist 23.80 Warehouse Person A 20.40
Heavy Equipment Operator - Conc. 22.95 Mine Trainee 19.55
Multi-Equip Operator - Mine 22.95 Helper 19.55
Shovel Qualified Equipment Operator 22.95 Reagent Mixer 19.55
Rotary Drill Operator 22.95 SX-EW Helper 19.55
Truck Heavy Duty Mechanic 22.95 Mine Trainee 18.70
Shovel Heavy Duty Mechanic 22.95 Helper 18.70
Drill Heavy Duty Mechanic 22.95 Utility Helper 18.70
MU Heavy Duty Mechanic 22.95 Lube Mechanic Trainee 18.70
Dozer Heavy Duty Mechanic 22.95 Tire Mechanic Trainee 18.70
Tire Mechanic 22.95 SX-EW Helper 18.70
Lube P.M. Mechanic 22.95 Plantman B 18.70
Heavy Duty Mechanic - Conc. 22.95 Steamcleaner 18.70
Electrician 22.95 Tailings Dam Crew 18.70
Machinist 22.95 Entrance Level Trainee 18.70
Pipefitter 22.95 Warehouse Person B 18.70
Boilermaker 22.95 Plantman C 17.85
Equipment Operator - Mine 22.10 Laborer 17.85
Ore Truck Driver 22.10 Utility/Insitu Crew 17.85
Water Truck Driver 22.10 Laborer 17.25
Lube Service Mechanic 22.10 Plantman C 17.25
Tire Service Mechanic 22.10

Wages increased 2% in the last 12 months, effective July 1, 2011.

LA Metal
18 Copyright © 2011 InfoMine USA, Inc.
ARIZONA

Mine Code: 196, Arizona. (continued)

Hourly Benefits
Vacation
% paid Hourly
Life Insurance yes 100 $29,000 Years Days
AD&D yes 100 $29,000 Service Vacation
Medical Insurance yes 80 1 10
Dental Insurance yes 80 3 10
Vision Insurance no 5 15
10 20
Retirement Benefits yes 15 20
Defined benefit: $40 per month for each year of service. 20 20
Defined contribution: Yes--for those hired after September 1, 2005 25/plus 25
(annual contribution $2,600)
401K plan : No match.

Sick Leave yes


Disability Income Ins. yes

9 days paid holidays per year.

Shift differential: Evening - $.30/hour; night - $.45/hour; night

Shift Schedule: 8 hour, 10 hour, and 12 hour shifts

Salaried Benefits
Vacation
% paid Salaried
Life Insurance yes 100 2x annual salary Years Days
AD&D Insurance yes 100 2x annual salary Service Vacation
Medical Insurance yes 80 1 10
Dental Insurance yes 80 3 10
Vision Insurance no 5 15
10 20
Retirement Benefits yes 15 20
Defined benefit: For those hired or vested prior to Janaury 1, 2005. 20 20
Defined contribution: For those hired after July 1, 2005 25 25
401K Plan: Company match 100% of first 6% employee contribution
30 plus 30
Sick Leave yes
Salary continuation 100% for 3 months; 66.67% for next 3 months.
Disability Income Ins. yes
LTD up to age 65.

9 days paid holidays per year.

Cost of benefits: Hourly - 44% of wages; salaried - 44% of wages.

LA Metal
Copyright © 2011 InfoMine USA, Inc. 19
ARIZONA

Mine Code: 196, Arizona. (continued)

Incentive bonus plan: Objectives are defined at beginning of fiscal year based on production, costs, environmental,
and safety; in addition to personal objectives. Annual payments based on business and
individual performance.

Other benefits: Personal leave - <45 days with managements approval, employee assistance program, military
leave, jury duty leave - as required by trial length, bereavement leave - 3 days, sign on bonus -
$2,000, relocation assistance - $1,000 for crafts/skilled personnel (must meet 50 mile distance test),
safety equipment allowance - $80 annually for safety shoes, safety glasses program - no exam
included.

LA Metal
20 Copyright © 2011 InfoMine USA, Inc.
ARKANSAS

Mine Code: 637, Arkansas.


Limestone and quicklime products, Surface, 250,000 tons per year.
Union: Operating Engineers
40 employees: 15 administrative/managerial and 25 hourly employees.

Hourly
Job Classification Wage Base
Repairman $15.00
Hysrated Lime Operator 15.00
Stone Mill Operator 15.00
Electrician 15.00
Plant Utility 14.90
Bagger Operator 13.00
Yardman 12.50
Laborer 12.50

Wages increased 1% in the last 12 months, effective February 1, 2011.

Benefits % paid Vacation


Life Insurance yes 100 Years Days
AD&D yes 100 Service Vacation
Medical Insurance yes 65 1 5
Dental Insurance yes 50 3 10
Vision Insurance no 5 15
Retirement Benefits yes 10 15
401(k): 2% match for salary employees 15 15
1.5% match for hourly employees. 20 20
25/plus 25
Sick Leave no
Disability Income Ins. yes 100

9 days paid holidays per year.

Shift differential: Evening - $0.15/hour, night - $0.20/hour.

Cost of benefits: (as a % of wages) Mandated Voluntary


Hourly 24% 10%
Salaried 24% 10%

Incentive bonus plan: $100 per quarter for no lost time accidents.

Other benefits: Steel toe shoe allowance - $120/year, prescription safety glasses allowance - $100/year, and
maintenance employees get a $30/month tool allowance.

LA Metal
Copyright © 2011 InfoMine USA, Inc. 21
CALIFORNIA

Mine Code: 732, California.


Copper/Gold, Underground, 100,000 short tons ore per year.
Non-union.
22 employees: 3 administrative/managerial, 15 hourly, and 4 contractor employees.

Hourly
Job Classification Wage Base
Miner $26.00
Electrician 23.00
Mechanic 17.00
Equipment Operator 14.00
Underground Laborer 13.00

No change in wages in the last 12 months.

Benefits % paid Vacation


Life Insurance no Years Days
AD&D no Service Vacation
Medical Insurance yes 100 1 10
Dental Insurance no 3 10
Vision Insurance no 5 15
10 20
Retirement Benefits no 15 20
20 25
Sick Leave yes 100 25/plus 25
Disability Income Ins. no

7 days paid holidays per year.

Shift differential: None.

Shift Schedule: 12 hour shift schedules.

Other benefits: Bereavement leave - 1 day, jury duty leave.

LA Metal
22 Copyright © 2011 InfoMine USA, Inc.
CALIFORNIA

Mine Code: 151, California.


Lanthanide, Surface, 190,000 short tons ore per year.
Union: United Steelworkers of America.
70 employees: 32 managerial/administrative and 38 hourly employees.

Hourly Hourly
Job Classification Wage Base Job Classification Wage Base
Maintenance Department Carpenter Apprentice $22.95
Instrumentation Electrician $37.87 Janitor 20.08
Journeyman Electrician 33.28 Laborer 20.08
Journeyman Instrument man 33.28 Gardener 20.08
Electrician A 31.21 Facility Operations Department
Journeyman Mobile Equipment Mechanic 30.98 Senior Miner $28.69
Journeyman Machinist 30.98 Senior Facility Operator 28.69
Journeyman Plant Mechanic 30.98 Master Facility Operator 27.25
Journeyman Carpenter 30.98 Facility Operator 25.25
Mobile Equipment Mechanic A 28.69 Trainee 21.23
Machinist A 28.69 Shipping/Warehouse
Plant Mechanic A 28.69 Senior Shipping/Warehouse $26.97
Boiler Tender 28.69 Shipping/Warehouse A 26.11
Carpenter A 28.69 Shipping/Warehouse B 23.52
Electrician B 28.11 Shipping/Warehouse C 22.25
Mobile Equipment Mechanic B 25.25 Shipping/Warehouse Trainee 21.23
Machinist B 25.25
Plant Mechanic B 25.25 Premiums
Carpenter B 25.25 Working Foreman +0.75
Electrician Apprentice 24.61 Leadman +1.50
Mechanic Apprentice 22.95

Wages increased 3.5% in the last 12 months, effective March 16, 2011.

Benefits % paid Vacation


Life Insurance yes 100 1 x salary Years Days
AD&D yes 100 1 x salary Service Vacation
Medical Insurance yes 80 1 10
Dental Insurance yes 80 3 10
Vision Insurance no 5 15
Retirement Benefits yes 100 10 20
401K Plan - company match up to 6% of wages. 15 20
20 25
Sick Leave yes 120 hours per year 25 25
Disability Income Ins. yes 30/plus 30
10 days paid holidays per year.

Shift differential: Evening - $.35/hour; night - $.50/hour.

Other benefits: Safety shoes, and EAP - employee assistance program.

Incentive bonus plan: Safety incentive program - employees receive a gift certificate for meeting safety goals
quarterly.

LA Metal
Copyright © 2011 InfoMine USA, Inc. 23
COLORADO

Mine Code: 243, Colorado.


Gold, Underground, >10,000 short tons ore per year.
Non-union.
12 employees: 2 administrative/managerial and 10 hourly employees.

Hourly
Job Classification Wage Base
Mechanic/Electrician $18.00
Miner 16.00
Laborer 13.25

Wages increased 5% in the last 12 months, effective January 1, 2011.

Benefits % paid Vacation


Life Insurance no Years Days
Medical Insurance no Service Vacation
Dental Insurance no 1 5
Vision Insurance no 3 5
Retirement Benefits no 5 5
10 5
Sick Leave yes 100 as needed 15 5
Disability Income Ins. no 20 5
25/plus 5
5 days paid holidays per year.

Cost of benefits: ($ per hourly employee per year)

Approximately $5,000 per year per employee.

Shift differential: None.

Shift schedule: 8 hour shifts.

Incentive bonus plan: Bonuses are determined by the Board of Directors at the end of the year. The amount of
bonus depends on the company profit for the year.

Other benefits: All safety equipment, tools, and work clothing, including gloves and shoes, as well as
transportation to the mine site, are provided by company. Jury duty - as required, bereavement
leave - as needed.

LA Metal
24 Copyright © 2011 InfoMine USA, Inc.
IDAHO

Mine Code: 643, Idaho.


Gold/Silver, Surface/Underground, Multiple operations, Care and maintenance.
Non-union.
6 employees.

Hourly
Job Classification Wage Base
Lead Miner $36.00
Miner 33.00
Diamond Driller 30.00
Leach Plant Operator 25.00

No change in wages in the last 12 months.

Benefits Vacation-Hourly
Life Insurance no Years Hours
AD&D no Service Vacation
Medical Insurance yes 1 40
Dental Insurance no 3 80
Vision Insurance no 5 80
Retirement Benefits no 10 80
15 80
Sick Leave yes 17 80
Disability Income Ins. no 25/plus 80

6 days paid holidays per year.

Shift differential: None.

Shift Schedule: 10 hour shifts.

Cost of benefits: (as a % of wages) Mandated Voluntary


Hourly 7.5% 7.0%
Salaried 7.5% 7.0%

Bonus System: 6,000 shares common stock per year after one year of employment (value varies).

Other benefits: 2 days personal leave.

LA Metal
Copyright © 2011 InfoMine USA, Inc. 25
IDAHO

Mine Code: 408, Idaho.


Pulverized high-calcium limestone, Surface, 70,700 short tons per year.
Non-union.
24 employees: 3 administrative/managerial and 21 hourly employees.

Hourly
Job Classification Wage Base
Supervisor $19.25
Mill Operator 18.00
Mechanic 17.75
Truck Driver 17.75
Heavy Equipment Operator 17.00
Office/Lab Tech 16.75
Laborer 14.00

No change in wages in the last 12 months.

Benefits % paid Vacation


Life Insurance no Years Days
AD&D no Service Vacation
Medical Insurance yes 100 1 5
Dental Insurance yes 100 3 5
Vision Insurance no 5 5
Retirement Benefits no 10 5
Sick Leave no 15 5
Disability Income Ins. no 20 5
25/plus 5
6 days paid holidays per year.

Shift differential: None.

Cost of benefits: Hourly - 26% of wages, Salaried - 25% of wages.

Incentive bonus plan: Annual Christmas bonus.

Other benefits: Employee Assistance Plan (EAP). Company provides all personal protective equipment.

LA Metal
26 Copyright © 2011 InfoMine USA, Inc.
IDAHO

Mine Code: 364, Idaho.


Molybdenum, Surface, 23 million pounds molybdenum per year.
Non-union.
350 employees: 40 administrative/managerial, and 310 hourly employees.

Hourly Hourly
Job Classification Wage Base Job Classification Wage Base
Tech 6 Tech 3
Mill Operator $24.30 Mill Operator $22.20
Mine Operator 24.30 Mine Operator 22.20
Mill Mechanic 24.30 Mill Mechanic 22.20
Mine Mechanic 24.30 Mine Mechanic 22.20
Electrician 24.30 Electrician 22.20
Tech 5 Warehouse Tech 22.20
Mill Operator $23.45 Tech 2
Mine Operator 23.45 Mill Operator $18.50
Mill Mechanic 23.45 Mine Operator 18.50
Mine Mechanic 23.45 Mill Mechanic 18.50
Electrician 23.45 Mine Mechanic 18.50
Tech 4 Electrician 18.50
Mill Operator $22.20 Tech 1
Mine Operator 22.20 Laborer $16.10
Mill Mechanic 22.20 Sampler Prep 16.10
Mine Mechanic 22.20 Clerical 16.10
Electrician 22.20 Warehouse Tech. 16.10
Entry Level 16.10

Wages increased 3% in the last 12 months, effective January 1, 2011.

Benefits % paid Vacation


Life Insurance yes 80 hourly- up to $120,000 Salaried Hourly
salary - 1x annual wage Years Hours Hours
AD&D yes 80 Service Vacation Vacation
Medical Insurance yes 80 1 120 80
Dental Insurance yes 80 3 120 88
Vision Insurance yes 100 5 120 104
Retirement Benefits yes 10 160 160
401K: Company match up to 5% of wages 15 160 160
Sick Leave no 20 200 200
Disability Income Ins. yes 25/plus 200 200

9 days paid holidays per year.

Shift differential: None.


Shift Schedule: 10 hour and 12 hour.

Incentive bonus plan: Company pays a bonus based on operating results. This company also pays an annual retention
bonus to all employees.

Other benefits: Paid family, bereavement, jury duty, military leave and leave of absence policy. Company pays for
employee safety glasses. $600 per year tool allowance. Employee assistance program based on
continuing education. Safety equipment supplied. Stock purchase plan. Flexible spending program.

LA Metal
Copyright © 2011 InfoMine USA, Inc. 27
KANSAS

Mine Code: 306, Kansas.


Salt, Underground.
Union: United Steelworkers of America.
84 employees: 21 administrative/managerial, 50 hourly, and 13 contractor employees.

Hourly
Job Classification Wage Base
Master Electrician $25.40
Electrician 21.81
Master Mechanic 21.43
Hoist Person 19.29
Mechanic 18.97
Powderman 18.75
Miner 18.22
Package Operator 17.68
Loader Operator 17.68
Laborer 16.61

Wages increased 3% in the last 12 months, effective August 1, 2011.

Benefits % paid Vacation


Life Insurance yes 100 Hourly - $25,000 Years Days
Salaried - 1x annual wage Service Vacation
AD&D yes 100 Hourly - $25,000 1 5
Salaried - 1x annual wage 3 10
Medical Insurance yes 100 Dependent coverage - 75% 8 15
paid by company 10 15
Dental Insurance yes 100 Dependent coverage - 75% 15 20
paid by company 20 20
Vision Insurance yes 24/plus 25
Retirement Benefits yes 100
Union: 401(k) Plan - company match 50% of first 7% of wages.
Admin: 401(k) Plan - company match 100% of the 1st 3%, then 50%
of the next 6% of employee contribution.
Sick Leave no
Disability Income Ins. yes

11 days paid holidays per year.

Shift differential: Evening - $.25/hour; night - $.35/hour.

Cost of benefits (as a % of wages):


Hourly: 40%
Salaried: 40%
*Cost of time-off (vacations, holidays, and sick leave) not included.

Incentive bonus plan: Plan is based on average tons hoisted per day for underground employees or average bags per
day for surface employees, MSHA inspection results and accidents/incidents.
Well bonus day: one extra day off with pay earned for each month of perfect attendance.

Other benefits: Employee assistance program, military leave, jury duty leave - 8 hours pay per day, bereavement
leave - 3 days, safety shoe reimbursement - $100 per year, voluntary uniforms - company pays 60%
of cost, tuition assistance program.

LA Metal
28 Copyright © 2011 InfoMine USA, Inc.
KENTUCKY

Mine Code: 297, Kentucky.


Limestone and crushed stone products, Underground, 1,400,000 short tons per year.
Non-union.
35 employees, 5 managerial/administrative and 30 hourly employees.

Hourly
Job Classification Wage Base
Mechanic $15.45
Welder 15.45
UG Loader Operator 14.90
Driller 13.63
Powderman 13.63
Loader Operator-Plant 13.10
Plant Operator 12.31
Dispatcher 12.00
Truck Driver 11.53
Laborer 11.53

Wages increased 4% in the last 12 months, effective January 1, 2011.

Benefits % paid Vacation


Life Insurance yes 100 $10,000 Years Days
AD&D no Service Vacation
Medical Insurance yes 100 1 5
Dental Insurance no 3 5
Vision Insurance no 5 10
10 10
Retirement Benefits yes 100 Defined Contribution 15 15
20 15
Sick Leave yes 100 12 days/year 25/plus 15
Disability Income Ins. no

8 days paid holidays per year.

Shift differential: None.

Cost of benefits (as a % of wages): Mandated Voluntary


Hourly 18% 16%
Salaried 18% 16%

Incentive bonus plan: Some hourly employees are eligible for a $0.03/ton production bonus paid weekly.
Employee must work full week to be eligible for the bonus. Example: Crush 20,000 tons
per week equals $600 divided among eligible employees.

LA Metal
Copyright © 2011 InfoMine USA, Inc. 29
MARYLAND

Mine Code: 431, Maryland.


Clay quarry and brick plant, Surface, 150,000 short tons per year.
Union: Teamsters.
140 employees: 45 administrative/managerial and 95 hourly employees.

Hourly Hourly
Job Classification Wage Base Job Classification Wage Base
Quarry Shipping and Loading Department
Loader Operator $17.20 Lead Hand Lift Truck $17.87
Laborer 16.77 Lift Truck Operators (large) 17.30
Maintenance Department Lift Truck Operators (small) 17.17
Electrician 1st Class $19.97 Utility Lift Truck Operator 17.17
Lead Hand Plant Maintenance 19.42 Utility/Grinder Back Up 17.17
(1st and 2nd shifts) Shipping/Utility 16.76
Lead Hand Mason $19.24 Yard (hired before 9/1/99) 15.65
Lead Hand Plant Maintenance (3rd shift) 19.14 Yard (hired on or after 9/1/99) 15.65
Maintenance 1st Class 18.86 Plant Clean Up 15.65
Mason 1st Class 18.30 Light Duty 15.65
Carpenter 18.18 Brick Speciality Department
Mechanic 18.18 Hand Moulder - Shapes $17.96
Maintenance Apprentice-2nd Class 17.80 Shapes Setting/Discharge 17.30
Mason 2nd Class 17.80 Shapes Setting/Discharge 16.77
Maintenance Apprentice-3rd Class 17.41 Arch Department
Car Clean/Repair/Grease 16.77 Saw Operator/Yard Person $17.27
Brick Making Add Mix Department
Lead Hand - MM $18.00 Add Mix Person $17.74
Brick Machine Operator - MM 17.73 Sample Department
Grinder Operator - MM 17.73 Sample Person $17.33
Mould Washer - MM 17.30 Hand Assist Department
Setting Department - Tunnel Kiln Lead Hand $18.25
Lead Hand Setter $18.25 Assistant Moulding Gang 17.96
Setters 17.97 Setters 17.85
Set Machine Operator 17.97
Sorter/Operator - Set Machine 17.41 General Laborer $17.21
Burning Department
Lead Hand Fireman $18.29
(Tunnel and Watchman)
Fireman (Tunnel) & Watchman 18.00

No change in wages in the last 12 months.

Benefits % paid Vacation


Life Insurance yes 100 Hourly: $30,000 Years Days
Salaried: 1 ½ x salary Service Vacation
AD&D yes 100 Salaried: 1 ½ x salary 1 10
Hourly: None 3 10
Medical Insurance yes 85 5 10
Dental Insurance yes 85 10 15
Vision Insurance yes 85 15 15
Retirement Benefits yes 20 20
Defined benefit: Salaried - $100 per month for each year worked. 25/plus 20
401K Plan: Company matches ½ of employee contribution up to 3%.

LA Metal
30 Copyright © 2011 InfoMine USA, Inc.
MARYLAND

Mine Code: 431, Maryland. (continued)

Benefits (continued) % paid


Sick Leave no
Disability Income Ins. yes 100

7 days paid holidays per year.

Shift differential: Evening - $.50/hour; night - $.75/hour.

Cost of benefits: (as a % of wages) Mandated Voluntary


Hourly 25% 25%
Salaried 20% 20%

Other benefits: Christmas bonus - $150, Employee Assistance Program, military leave, bereavement leave and
safety equipment.

LA Metal
Copyright © 2011 InfoMine USA, Inc. 31
MICHIGAN

Mine Code: 428, Michigan.


Limestone, Surface, 2,500,000 tons per year.
Non-union.
206 employees: 42 administrative/managerial, 160 exempt, and 4 contractor employees.

Annual
Job Classification Wage Base
Electricians $45,000 - 65,000
Millwrights 45,000 - 65,000
Production Assistants 40,000 - 65,000
Mobile Equipment Operators 35,000 - 55,000
(Truck, Loader, Dozer, etc)
Mechanic 45,000 - 50,000
Laborer 30,000 - 50,000

Wages increased 2% in the last 12 months, effective April 2011.

Benefits % paid Vacation


Life Insurance yes 100 3 x annual salary Years Days
AD&D yes 90 Service Vacation
Medical Insurance yes 80 1 10
Dental Insurance yes 80 3 15
Vision Insurance yes 80 5 15
10 20
Retirement Benefits yes 100 15 20
Defined benefit plan - varied payout. 20 25
401K plan: 75% match up to 6% of base wages. 25/plus 25

Sick Leave yes 100 as needed, no set policy


Disability Income Ins. yes 100

11 days paid holidays per year.

Shift differential: None.

Cost of benefits: (as a % of wages) Mandated Voluntary


Hourly 10 - 16% 26 - 30%
Salaried 10 - 16% 26 - 30%

Incentive bonus plan: Bonus based on criteria in production, safety, costs, and personal goals. Company also
gives quarterly and safety bonus.

Other benefits: Employee assistance plan (EAP), bereavement leave, safety equipment (hat, glasses, tools, etc.),
clothing/boot allowance - $180 per year.

LA Metal
32 Copyright © 2011 InfoMine USA, Inc.
MICHIGAN

Mine Code: 734, Michigan.


Copper, Surface, Start up.
Non-union.
5 employees: 2 administrative/managerial, 2 hourly, and 1 contractor employee.

Hourly
Job Classification Wage Base
Laborer $10.00

Wages increased 2% in the last 12 months, effective September 30, 2011.

Benefits % paid Vacation


Life Insurance no Years Days
Medical Insurance no Service Vacation
Dental Insurance no 1 15
Vision Insurance no 3 15
Retirement Benefits no 5 15
10 15
Sick Leave yes 100 1 week 15 15
Disability Income Ins. no 20 15
25/plus 15
8 days paid holidays per year.

Shift differential: None.

Shift schedule: 8 hour shifts.

Other benefits: Safety equipment allowance - $100/year, jury duty - 5 days paid, bereavement leave - 3 days,
military leave.

LA Metal
Copyright © 2011 InfoMine USA, Inc. 33
MINNESOTA

Mine Code: 501, Minnesota.


Taconite, Surface, 2 mines, 18.7 million short tons taconite pellets per year.
Union: United Steelworkers of America.
1,520 employees.

Hourly
Job Classification Wage Base
Senior Operating Technician $30.32
Maintenance Technician II 28.97
Operating Technician II 28.97
Operating Technician I 27.54
Utility Technician 25.00
Utility Person 22.84

Wages increased 4% in the last 12 months, effective September 1, 2011.

Benefits % paid Vacation


Life Insurance yes 100 Years Days
Medical Insurance yes 100 Service Vacation
Dental Insurance yes 100 1 5
Vision Insurance yes 100 3 10
Retirement Benefits yes 100 5 10
Defined benefit - $56.25/month per years of employment for 10 15
all service up to 30 years; $75.00/month per 15 20
year of employment over 30 years. 20 20
401(k) plan with company match. 25/plus 20
Sick Leave yes 100
Disability Income Ins. yes 100

10 days paid holidays per year.

Shift differential: Evening - $.35/hour; night - $.50/hour.

Cost of benefits: 47% of wages.

Other benefits: EAP, employee assistance plan, bereavement, jury duty and military leave.

LA Metal
34 Copyright © 2011 InfoMine USA, Inc.
MISSOURI

Mine Code: 481, Missouri.


Limestone, Surface, 12,500,000 short tons per year.
Non-union.
93 employees: 16 administrative/managerial, 42 hourly and 35 contractor employees.

Hourly Hourly
Job Classification Wage Base Job Classification Wage Base
Production Team Leader $29.26 - 32.68 Warehouse $23.99
Shipping Coordinator 32.11 Field Lab Operator 23.06
Maintenance Team Leader 31.58 Material Handler 18.66 - 22.96
Maintenance Planner 29.98 Field Lab Operator 22.76
Maintenance Mechanic 23.34 - 27.47 Lab Technician 22.50
Production Operator 24.32 - 26.34 Shipper 22.24
Maintenance Technician 26.08 Lab Technician 21.91
Process Control 25.87 Customer Service Representative 21.57
Field Lab Operator 25.86 Shipping Coordinator 20.74
Electrician 23.72 - 25.10 Utility Laborer 19.67
Maintenance Utility 24.03 Utility Laborer 18.61

Wages increased 3% in the last 12 months, effective June, 2011.

Benefits % paid Vacation


Life Insurance yes 100 2 x wages Years Days
Medical Insurance yes 80 Service Vacation
Dental Insurance yes 80 1 10
Vision Insurance yes 100 3 10
Retirement Benefits yes 5 15
401K plan - Company match 50% up to 6% of wages 10 15
15 20
Sick Leave yes Salaried only 20 20
Disability Income Ins. yes 100 25/plus 20
90 days salary continuation.

10 days paid holidays per year.

Shift differential: None.

Cost of benefits: (as a % of wages) Mandated Voluntary*


Hourly 8.5% 30%
Salaried 8.0% 27%
*Cost of time-off (vacations, holidays, and sick leave) not included.

Incentive bonus plan: Company pays a bonus based on operating results against operating budget. Payouts vary
between 0% and 120%. Personal objectives are also a component of this plan.

LA Metal
Copyright © 2011 InfoMine USA, Inc. 35
MONTANA

Mine Code: 641, Montana.


Copper and silver, underground, multiple mines, 1,800,000 tons ore per year.
Non-union.
182 employees: 22 administrative/managerial and 160 hourly employees.

Hourly Hourly
Job Classification Wage Base Job Classification Wage Base
Mining Scalers $20.63
Team Leader Mine $27.40 Shop Clerk 16.63
Team Leader Maintenance 27.40
Jumbo Operators 26.37 Milling
Bench Drill Operators 26.37 Underground Crusher Operator $26.37
Bolter Operator 26.37 Electrician I 26.37
Loader Operator 26.37 Instrumentation Technician 26.37
Utility Crew 26.37 Secondary Crusher Operator I 25.35
Mine Mechanic I 26.37 Ball Mill Operator I 25.35
Surface Operator 26.37 Flotation Operator 25.35
Electrician I 26.37 Tailing Dam Operator 25.35
Miner 26.37 Chief Assayer 25.35
Mechanic 26.37 Lab Technician 25.35
Powdermen I 22.99 Mill Mechanic I 25.35
Haul Truck Operator 22.99 Tool Crib Attendant 25.35
Motor Grader Operator 22.99 Underground Crusher Operator II 22.99
Mine Mechanic II 22.99 Secondary Crusher Operator II 21.97
Mine Lubemen 22.99 Ball Mill Operator II 21.97
Mine Welders/Machinist 22.99 Mill Mechanic II 21.97
Light Duty Vehicle/Tireman 22.99 Mill Lubeman 21.97
Drill Helpers 20.63 Underground Crusher Operator III 19.45
Powdermen II 20.63 Secondary Crusher Helper 18.43

Wages increased 2.5% in the last 12 months, effective January 1, 2011.

Benefits % paid Vacation


Life Insurance yes 100 up to $50,000 Years Days
AD&D yes 100 up to $50,000 Service Vacation
Medical Insurance yes 50 1 10
Dental Insurance yes 50 3 10
Vision Insurance yes 100 5 15
Retirement Benefits yes 10 15
401(k): company matches 3% for employees 3% contribution, 15 15
3.5% for employees 4% contribution, or 4% for employees 5% 20 15
contribution. 25/plus 15
Sick Leave no
Disability Income Ins. no
8 days paid holidays per year.

Shift differential: None.

Cost of benefits: Hourly - 32.5%, Salaried - 32.5% of wages.

Incentive bonus plan: Safety incentive, attendance incentive, and production incentive based on tons milled per
month with an average price of copper and silver built into the factor.

Other benefits: Employee Assistance Plan (EAP).

LA Metal
36 Copyright © 2011 InfoMine USA, Inc.
MONTANA

Mine Code: 157, Montana.


Copper/Molybdenum, Surface, 18,000,000 short tons ore per year.
Non-union.
350 employees: 66 administrative/managerial and 284 hourly employees.

Hourly
Job Classification Wage Base
Accounts Payable 15.76
Payroll Clerk 15.76
Human Resources 15.76
Utility 14.25
Administrative Assistants 11.69
Clerk 1 10.59

Wages increased 2% in the last 12 months, effective January 3, 2011.

Benefits % paid Vacation


Life Insurance yes 100 2 x wage base Years Days
AD&D yes 100 4 x wage base Service Vacation
Medical Insurance yes 80 1 10
Dental Insurance yes 80 3 10
Vision Insurance yes 80 5 15
$150 max benefit per year without deductible. 10 20
15 20
Retirement Benefits yes 100 20 25
401K Plan - Company match up to 3% of wages 25/plus 25
Sick Leave yes 100 40 hours per year.
Disability Income Ins. yes 100 60% of base pay for 3
weeks, then 80% of
base pay for up to 6
months.
8 days paid holidays per year.

Shift differential: Evening - $.52/hour; night - $.71/hour.

Shift Schedule: 8 hour, 10 hour, and 12 hour shift schedules.

Cost of benefits: (as a % of wages) Mandated Voluntary


Hourly 10% 25%
Salaried 10% 25%

Other benefits: Personal leave, employee assistance program, military leave, tool allowance, flex benefit plan,
health savings account, grant for education, tuition reimbursement, bereavement leave - up to 3
days, jury duty leave, relocation assistance.

Incentive bonus plan: Discretionary profit participation program for eligible employees is paid as a quarterly
bonus if the company is profitable.

LA Metal
Copyright © 2011 InfoMine USA, Inc. 37
NEVADA

Mine Code: 531, Nevada.


Barite and bentonite, Surface.
Non-union.
92 employees: 13 administrative/managerial, 77 hourly, and 2 contractor employees.

Hourly Hourly
Job Classification Wage Base Job Classification Wage Base
Maintenance Mechanic I $28.93 Maintenance Mechanic II $22.53
Maintenance Mechanic A 28.74 Electrician I 22.53
Maintenance Mechanic A 28.37 Electrician 22.36
Utility Operator II 27.71 Utility Mechanic 22.30
Miner 27.71 Mechanic 22.30
Jig Operator 27.71 Heavy Equipment Operator 22.30
Utility Operator II 27.16 Heavy Equipment Operator 21.82
Miner 23.63 Mechanic Helper 21.78
Technician III 26.33 Front End Loader 21.79
Jig Operator 26.11 Tractor Operator 21.79
Utility Operator 26.09 Maintenance Person 21.78
Maintenance Mechanic II 26.09 Maintenance Mechanic B 21.65
Crusher System Operator 26.09 Utility Mechanic 21.63
Crusher System Operator 24.99 Hopper Loader 21.63
Miner 26.61 Electrician 21.63
Heavy Equipment Operator 25.56 Water Truck Operator 21.40
Crusher System Operator 25.35 Motor Grader Operator Lead 21.40
Jig Operator 25.10 Heavy Equipment Operator 21.40
Heavy Equipment Operator 24.62 Front End Loader Operator 21.40
Maintenance Mechanic II 24.37 Tractor Operator 21.40
Utility Operator II 24.13 Front End Loader Operator 21.35
Heavy Equipment Operator 24.09 Tractor Operator 21.35
Mater Mechanic 23.97 Heavy Equipment Operator 21.35
Heavy Equipment Mechanic B 23.61 Mechanic Helper 20.86
Maintenance Mechanic B 23.61 Driver 20.86
Heavy Equipment Operator 23.48 Warehouseman 20.70
Heavy Equipment Operator 23.14 Maintenance Person 20.49
Welder 23.12 Warehouseman 20.07
Utility Mechanic 23.08 Warehouseman 19.70
Product Maintenance Lead 23.08 Car Inspector 19.70
Maintenance Person 23.08 Packer Operator 19.46
Maintenance I 23.08 Front End Loader Operator 19.41
Electrician 23.08 Tractor Operator 19.41
Production Maintenance Lead 23.08 Helper 18.04 - 22.13
Heavy Equipment Operator 22.69 Laborer 14.84 - 18.74

Wages increased 3% in the last 12 months, effective July 2011.

LA Metal
38 Copyright © 2011 InfoMine USA, Inc.
NEVADA

Mine Code: 531, Nevada. (continued)

Benefits % paid Vacation


Life Insurance yes 100 up to 10x annual earnings Years Days
AD&D yes 100 up to 10x annual earnings Service Vacation
Medical Insurance yes 100 1 5
Dental Insurance yes 100 3 10
Vision Insurance yes 100 5 15
Retirement Benefits yes 10 20
401(k) plan 15 20
20 25
Sick Leave yes 100 25/plus 25
Disability Income Ins. yes 100

12 days paid holidays per year.

Shift differential: Evening - $0.20/hour, night - $.40/hour.

Shift Schedule: 8 hour shifts.

Incentive bonus plans: None.

LA Metal
Copyright © 2011 InfoMine USA, Inc. 39
NEVADA

Mine Code: 483, Nevada.


Limestone, Surface, 4,200,000 short tons per year.
Union: International Brotherhood of Boilermakers.
115 employees: 24 administrative/managerial and 91 hourly employees.

Hourly Hourly
Job Classification Wage Base Job Classification Wage Base
PLC Technician $32.56 Utilityman $22.29
Leadman - Maintenance 29.46 Warehouse Attendant 21.85
Leadman - Maintenance 29.46 Kiln Assistant 21.85
Maintenance Electrician 29.14 Lubeperson 21.85
Maintenance - Mechanic 28.36 Carloader 21.85
Maintenance Trainee 28.36 Carloader 21.85
Maintenance Trainee 27.25 Truck Driver 21.05
Kiln Operator 26.24 Crusher 21.05
Leadman - Production 25.69 Vacuum Truck Driver 20.86
Kiln Operator 24.60 Sweeper Operator 20.86
Loader Operator 23.83 Operator 20.86
Heavy Equipment Operator 22.93 Carloader 20.86
Driller/Blaster 22.93 Laborer 20.86

Wages increased 3% in the last 12 months, effective June 1, 2011.

Benefits % paid Vacation


Life Insurance yes 100 1.5 x wage-hourly Years Days
2 x salary-salaried Service Vacation
Medical Insurance yes 80 1 5
Dental Insurance yes 80 3 10
Vision Insurance yes 100 5 10
10 15
Retirement Benefits yes 15 15
401K plan - Salaried: Company match 50% up to 6% of wages 20 20
Union: Company match 25% up to 6% of wages 25/plus 20
Defined benefit - Union only

Sick Leave yes Salaried only


Disability Income Ins. yes 100
Union: Short-term disability - up to 26 weeks.
Salaried: 90 days salary continuation.

10 days paid holidays per year.

Shift differential: Evening - $.30/hour; night - $.50/hour.

Cost of benefits: (as a % of wages) Mandated Voluntary*


Hourly 8.5% 30%
Salaried 8.0% 27%
*Cost of time-off (vacations, holidays, and sick leave) not included.

Incentive bonus plan: Company pays a bonus based on operating results against operating budget. Payouts
vary between 0% and 120%. Personal objectives are also a component of this plan.

LA Metal
40 Copyright © 2011 InfoMine USA, Inc.
NEVADA

Mine Code: 387, Nevada.


Gold, Surface and underground operations, 108,400,000 million tons of ore per year.
Non-union.
Approximately 2,250 employees: approximately 690 managerial/administrative, 1,010 hourly and approximately 550
contractor employees.

Hourly Hourly
Job Classification Wage Base Job Classification Wage Base
Mine Operator - Tech 6 $30.45 Process Maintenance - Tech 6 $32.10
Mine Operator - Tech 5 29.05 Process Maintenance - Tech 5 30.65
Mine Operator - Tech 4 27.70 Process Maintenance - Tech 4 29.40
Mine Operator - Tech 3 26.35 Process Maintenance - Tech 3 26.35
Mine Operator - Tech 2 23.55 Process Maintenance - Tech 2 23.55
Mine Operator - Tech 1 20.90 Process Maintenance - Tech 1 20.90

Process Operator - Tech 6 $30.45 Underground Operator - Tech 5 $30.75


Process Operator - Tech 5 29.05 Underground Operator - Tech 4 28.05
Process Operator - Tech 4 27.70 Underground Operator - Tech 3 26.65
Process Operator - Tech 3 26.35 Underground Operator - Tech 2 24.65
Process Operator - Tech 2 23.55 Underground Operator - Tech 1 21.90
Process Operator - Tech 1 20.90
Underground Maintenance - Tech 6 $32.10
Mine Maintenance - Tech 6 $32.10 Underground Maintenance - Tech 5 30.65
Mine Maintenance - Tech 5 30.65 Underground Maintenance - Tech 4 29.40
Mine Maintenance - Tech 4 29.40 Underground Maintenance - Tech 3 26.35
Mine Maintenance - Tech 3 26.35 Underground Maintenance - Tech 2 23.55
Mine Maintenance - Tech 2 23.55 Underground Maintenance - Tech 1 20.90
Mine Maintenance - Tech 1 20.90
Leadman Premium $1.00

Wages increased 3% in the last 12 months, effective February 28, 2011.

Benefits % paid
Life Insurance yes 100 2 x base pay
Spouse Life Insurance yes 100 $10,000
AD&D yes 100 2 x base pay
Medical Insurance yes 100 PPO provider
70 Non-PPO provider

Core Plan: Single pays $30/Mo.; family is $78/Mo.; PPO


deductible of $200/individual; Non-PPO deductible is
$1,500/individual; plan pays 100% in-network; 70%
out-of-network. Use of company provided clinic - $10
per visit; pharmacy at clinic or through Rx plan.

Premium Plan: Single pays $57/Mo.; family is $173/Mo.; PPO


deductible $100/individual; Non-PPO deductible is
$1,200/individual; plan pays 100% in-network; 70%
out-of-network. Use of company provided clinic - $10
per visit; pharmacy at clinic or through Rx plan.

LA Metal
Copyright © 2011 InfoMine USA, Inc. 41
NEVADA

Mine Code: 387, Nevada. (continued)

Benefits (continued)

% paid
Dental Insurance: yes 100 Preventative
85 Basic dental
50 Major dental
Vision Insurance: yes 100 exam (after $10 copay), up to $140 allowance, medically necessary contacts.

Retirement Benefits: yes


401K plan: Company match up to 6% of wages. Employee can contribute up to 6% before tax. 100% vesting after 4 years.
Defined contribution: company contributes 5% of eligible compensation to employee’s retirement fund. 4 year vesting.

Sick Leave yes 100 Accrue 3.2 hours per pay period, up to 480 hours; full pay sick, 3 day waiting and
submit claim for benefit. Up to 24 months from initial date of absence at 40% base
pay after sick leave is exhausted
Disability Income Ins. no

8 days paid holidays per year.

Vacation
(Paid time off accrual)
Accrual
Rate
Years Hours Annual Maximum
Service (Per bi-weekly period) Hours Bank
0-4 6.92 180 270
5-9 7.69 200 300
10-14 9.23 240 360
15-19 10.00 260 390
20+ 10.77 280 420

Shift differential: Evening - $.40/hour; night - $.40/hour.

Cost of benefits: (as a % of wages): Mandated Voluntary *


Hourly 13.0% 43.7%
Salaried 13.0% 43.7%
*Does not include cost of time off.

Other benefits: Educational reimbursement: 80% reimbursement eligible expenses, to a maximum of $10,000 per
year. Must successfully complete the course with a “C” grade or better.
Employee assistance program, up to 5 days funeral leave if attending funeral of a relative or 3 days
bereavement leave in not attending funeral. Supplemental life insurance and AD&D are available
to employees, spouses and dependents. Employees can contribute up to annual maximum per
Flexible Spending Account. Military Pay: Pay equalization up to 18 months based on a 40 hour
work week; benefits and bonus on earnings for the 18 months. Transportation to mine- where
available is provided at no cost to employee. Where buses are not available, company pays
$12.00/shift for vehicle maintenance. Tool allowance - up to $1,000 annually.

Incentive bonus plan: Employees can earn up to 5% of annual base by reaching goal averages, based on production
costs and end gold price, minimum payout = 0%; maximum payout = 10%.
If underground targets are met employees receive an underground footage bonus.

LA Metal
42 Copyright © 2011 InfoMine USA, Inc.
NEVADA

Mine Code: 198, Nevada.


Gold and silver, Surface, 2,200,000 ounces doré per year.
Non-union.
324 employees: 30 administrative/managerial, 189 hourly and 105 contractor employees.

Hourly
Job Classification Wage Base
Technician VII $29.58
Technician VI 27.99
Technician V 26.66
Technician IV 25.59
Technician III 24.26
Technician II 22.12
Technician I 20.52

No change in wages in the last 12 months.

Benefits % paid Vacation


Life Insurance yes 100 2 x annual wage Years Days
AD&D yes 100 2 x annual wage Service Vacation
Medical Insurance yes 100 1 8
Dental Insurance yes 100 3 8
Vision Insurance yes 100 5 12
10 12
Retirement Benefits yes 15 16
Defined contribution: 5% of annual salary 20 16
401K - Company match 50% on first 6% of wages 25/plus 16
Sick Leave yes 100 3 days per year
Disability Income Insurance
Hourly - Short-term - disability at 60% of wage
Long-term - disability at 60% of wage up to age 65.
Salaried - 90 days at full pay, then 60% up to age 65.

10 days paid holidays per year.

Shift differential: Night - $0.25 per hour.

Shift Schedule: 10 hour and 12 hours shifts.

Cost of benefits: (as a % of wages) Mandated Voluntary


Hourly 8.36% 21.06%
Salaried 8.36% 21.06%

LA Metal
Copyright © 2011 InfoMine USA, Inc. 43
NEVADA

Mine Code: 198, Nevada. (continued)

Incentive bonus plans: The Quarterly Bonus Plan (QBP) is based on four components: Employee Safety & Health,
Environmental Protection, Silver Production and Direct Operating Costs.

The Safety and Health performance component: If an employee has a work-related


injury/accident or illness during the quarter, that employee will not receive the bonus amount
calculated for safety and health; if more than one reportable incident occurs during the
quarter, no employee will receive the safety portion of the bonus.

The Environmental Protection performance measure is to not have any spills, events or
occurrences that require immediate reporting (within 24 hours) to any regulatory
governmental agencies. Each quarter completed without such an occurrence will qualify all
employees for the environmental portion of the bonus amount.

The Silver Production performance measure is the same as in prior years - if silver production
meets or exceeds the budgeted ounces for the quarter and if the cost per ounce calculation for
the quarter is within 10% of budget, all employees will receive the production portion of the
bonus.

The above three factors make up the basis of the Quarterly bonus plan with each of the three
components equal to one-third of the base bonus amount. The base bonus amount can equal
as much as 7% of your eligible earnings during the quarter.

In addition to the base bonus amount if the mine’s Direct Operating Costs are below budget
for the quarter, 30% of this amount below budget will be shared with employees, up to a
maximum of 14% of the employee’s earnings for the quarter.

Added to the safety, environmental and production elements, the maximum pay out for this
bonus plan is 21% of earnings.

Other benefits: EAP-employee assistance plan, flex savings accounts, safety equipment, prescription glasses
and transportation allowance, personal leave, military leave, relocation assistance, jury duty -
time required by trial, bereavement leave - 3 days.

LA Metal
44 Copyright © 2011 InfoMine USA, Inc.
NEVADA

Mine Code: 179, Nevada


Gold, Surface, >20,000,000 short tons ore per year.
Non-union.
750 employees: 200 managerial/administrative and 550 hourly employees.

Hourly Hourly
Job Classification Wage Base Job Classification Wage Base
Maintenance Technician I $30.48 ALPM/PM Tech II $25.61
Dozer I 29.77 Assay Technician IV 25.61
Grader I 29.77 Blaster III 25.61
Loader I 29.77 Driller III 25.61
Maintenance Technician II 29.77 Survey Technician II 25.61
Operator I 29.77 Haul Truck II 25.61
Senior Blaster 29.77 ISS Technician I 25.61
Senior Driller 29.77 Lube Truck Technician V 25.61
Senior Operator 29.77 Maintenance Technician V 25.61
Assay Technician I 28.05 Operator IV 25.61
Blaster I 28.05 Senior Security II 25.61
Dozer II 28.05 Warehouse Driver 25.61
Driller I 28.05 Warehouse Worker I 25.61
Grader II 28.05 ALPM/PM Tech III 23.89
Loader II 28.05 Assay Technician V 23.89
Lube Truck Technician III 28.05 Haul Truck III 23.89
Maintenance Technician III 28.05 ISS Technician II 23.89
Operator II 28.05 Lube Truck Technician VI 23.89
Senior Warehouseman 28.05 Operator V 23.89
Senior Security I 28.05 Security A 23.89
Tireman I 28.05 Survey Technician III 23.89
Assay Technician II 27.10 Warehouse Worker II 23.89
RTD Water Truck 27.10 ALPM/PM Tech IV 22.97
ALPM/PM Tech I 26.43 Haul Truck IV (entry) 22.97
Assay Technician III 26.43 Assay Technician VI 22.51
Blaster II 26.43 ISS Technician III 22.51
Driller II 26.43 Operator VI 22.51
Haul Truck I 26.43 Security B 22.51
Lube Truck Technician IV 26.43 Warehouse Worker III 22.51
Maintenance Technician IV 26.43 ISS Technician IV 20.69
Operator III 26.43 Laborer 20.69
Survey Technician I 26.43 Security C 20.69
Tireman II 26.43 Warehouse Worker IV 20.69

Wages increased 3.5% in the last 12 months, effective January 1, 2011.

LA Metal
Copyright © 2011 InfoMine USA, Inc. 45
NEVADA

Mine Code: 179, Nevada (continued)

Benefits % paid Vacation


Life Insurance yes 100 2 x annual wage Years Hours
AD&D yes 100 2 x annual wage Service Vacation
Medical Insurance yes 100 1 80
Dental Insurance yes 80 3 80
Vision Insurance yes 5 120
10 160
Retirement Benefits yes 15 160
401K - Company match up to 6%, plus company will invest 20 200
an additional 2% of employee’s compensation each 25/plus 200
pay period.

Sick Leave no
Disability Income Ins. yes

10 days paid holidays per year.

Shift differential: Night - $.25/hour.

Cost of benefits: 43% of wages.

Incentive bonus plans: This company provides a typical production bonus, and both short and long term
employee incentives for meeting production targets and safety targets.

Other benefits: Bereavement leave - 24 hours paid; subsidized gear - boots, gloves, and slickers; safety glasses
program, adoption assistance program, educational reimbursement, and employee share purchase
plan. Dependent Life Insurance - $10,000 spouse and $$5,000 per child up to 26 if full-time
student. Supplemental life insurance available at employee option. Company also offers flexible
spending accounts and an employee assistance program.

LA Metal
46 Copyright © 2011 InfoMine USA, Inc.
NEW MEXICO

Mine Code: 231, New Mexico.


Molybdenum, Underground, >1,000,000 short tons ore per year.
Union: P.A.C.E. International
Approximately 185 employees: 50 managerial/administrative and 135 hourly employees.

Hourly Hourly
Job Classification Wage Base Job Classification Wage Base
Lead Instrumentman $22.30 Equipment Operator $18.75
Lead Miner 21.57 Electrician (GR 9) 18.75
Lead Machinist 21.57 Drill Operator 18.75
Lead Electrician 21.57 Diesel Mechanic 18.75
Tailings Dam Leadman 20.88 Concreteman 18.75
Shovel Operator 20.88 Surface Equipment Operator 18.02
Lead Welder 20.88 Reagentman 18.02
Lead Maintenance Welder 20.88 Repairman 18.02
Lead Shaftman 20.88 Motor Grader Operator 18.02
Lead Pumpman 20.88 Miner Trainee (GR 8, 6 Mo.) 18.02
Lead Powerhouse Operator 20.88 Mechanic 18.02
Lead Mill Mechanic 20.88 Flotation Operator 18.02
Lead Equipment Operator 20.88 Drill Operator 18.02
Lead Equipment Mechanic (including diesel) 20.88 Dozer Operator 18.02
Lead Diesel Mechanic 20.88 Carpenter 18.02
Lead Concreteman 20.88 Cager Skiptender 18.02
Hoistman 20.88 Welder (GR 7) 17.28
Miner 1st Class 20.16 Trackman 17.28
Lead Trackman 20.16 Mechanic (GR 7) 17.28
Lead Mechanic 20.16 LHD Operator II (1st 6 Mo.) 17.28
Lead Labman 20.16 Lead Mill Cleanupman 17.28
Lead Carpenter 20.16 Instrumentman (GR 7) 17.28
Instrumentman (FCC Lic. Req.) 20.16 Heavy Truck Driver 17.28
Gas Repairman 20.16 Head Packing & Dryer Operator 17.28
Equipment Mechanic (including diesel) 19.39 Head Lubeman 17.28
Mechanic 19.39 Equipment Mechanic (GR 7) (including diesel) 17.28
Shaftman 19.39 Electrician (GR 7) 17.28
Miner (24 Mo.) 19.39 Diesel Mechanic (GR 7) 17.28
Machinist 19.39 Warehouseman 16.55
Instrumentman 19.39 Repairman (1st 120 days) 16.55
Electrician 19.39 Powderman 16.55
Batch Plant Operator 19.39 Equipment Operator 16.55
Maintenance Welder 18.75 Welder (GR 5) 15.86
Welder 18.75 Warehouseman (GR 5) 15.86
Shovel Dozer Operator 18.75 Tailings Dam Operator 15.86
Scraper Operator 18.75 Powderman (after 60 days) 15.86
Repairman Welder 18.75 Packing & Dryer Operator 15.86
Mill Operator 18.75 Mucker 15.86
Mill Labor Leadman 18.75 Mechanic (GR 5) 15.86
Mainline Motorman 18.75 Machinist (GR 5) 15.86
Machinist (GR 9) 18.75 Instrumentman (GR 5) 15.86
LHD Operator 1 18.75 Equipment Mechanic (GR 5) (including diesel) 15.86
Lead Warehouseman 18.75 Electrician (GR 5) 15.86
Instrumentman (GR 9) 18.75 Drill Operator Helper 15.86
Heavy Loader Operator 18.75 Diesel Mechanic (GR 5) 15.86
Head Powderman 18.75 Carpenter (GR 5) 15.86

LA Metal
Copyright © 2011 InfoMine USA, Inc. 47
NEW MEXICO

Mine Code: 231, New Mexico. (continued)

Hourly Hourly
Job Classification Wage Base Job Classification Wage Base
Steam Cleaner Operator $14.76 Powderman $14.13
Special Truck Driver 14.76 Power Plant Operator 14.13
Reagentman Helper 14.76 Packing & Dryer Helper 14.13
Mill Operator Helper 14.76 Electrician (GR 3) 14.13
Lube & Steamcleaner Man 14.76 Welder Helper 13.39
Gyratory Crusher Helper 14.76 Mechanic Helper 13.39
Fine Crusher Helper 14.76 Machinist Helper 13.39
Welder (GR 3) 14.13 Equipment Mechanic Helper 13.39
Screen & Conveyorman (Grizz) 14.13 Electrician Helper 13.39
Screen & Conveyorman 14.13

No change in wages in the last 12 months.

Benefits % paid Vacation


Life Insurance yes 100 1 x salary Years Days
AD&D yes 100 Service Vacation
Medical Insurance yes 100 1 5
Dental Insurance yes 100 3 10
Vision Insurance no 5 10
Retirement Benefits yes 100 10 15
Defined benefit. Employee received $40.00 per month per year 15 15
of service. 20 20
401K savings plan - company matches up to 6% of wages. 25/plus 20
Sick Leave yes
Disability Income Ins. no

10 days paid holidays per year.

Shift differential: Evening - $0.25/hour, night - $0.40/hour.

Incentive bonus plan: None.

Other benefits: Leave of absence up to 1 year for illness or injury (on or off job), military leave, civil leave may
be granted up to one year, to attend school, urgent business, or where it becomes necessary to
move from the area due to health or health of a family member, and bereavement leave - 3 days.

LA Metal
48 Copyright © 2011 InfoMine USA, Inc.
NORTH CAROLINA

Mine Code: 655, North Carolina.


Limestone, Surface, 150,000 short tons per year.
Union.
22 employees: 5 administrative/managerial, 13 hourly, and 4 contractor employees.

Hourly
Job Classification Wage Base
Crusher Operator $19.05
Dozer Operator 17.40
Repairman 17.40
Welder 17.40
Roller Mill Operator 17.25
Loader Operator 17.15
Backhoe Operator 17.15
Haul Truck Driver 12.50
Scale Operator 12.15
Bagger 12.05

Wages increased 3% in the last 12 months, effective May 15, 2011.

Benefits % paid Vacation


Life Insurance yes 100 1x annual salary
AD&D yes 100 1x annual salary Years Days
Medical Insurance yes 80 Service Vacation
Dental Insurance yes 80 1 5
Vision Insurance yes 80 3 10
5 10
Retirement Benefits yes 10 10
401(k): Company match 50% up to 6% of wages. 15 15
20 15
Sick Leave yes 100 5 days per year. 25/plus 20
Disability Income Ins. yes 60

11 days paid holidays per year.

Shift differential: None

Cost of benefits: ($ per employee per year)


Mandated Voluntary
Hourly 8% 25%
Salaried 8% 30%

Incentive bonus plan: Up to 22% of gross salary if pre-determined safety and production criteria are met.

Other benefits: All safety equipment, including steel toe boots, provided by company.

LA Metal
Copyright © 2011 InfoMine USA, Inc. 49
PENNSYLVANIA

Mine Code: 711, Pennsylvania.


Aggregate, Surface.
Union.
150 employees: 46 administrative/managerial and 104 hourly employees.

Hourly Hourly
Job Classification Wage Base Job Classification Wage Base
Process Control Operator $28.88 Welder $25.39
Vac/Fill Process Control Operator 28.88 Shift Electrician 25.10
1st Electrician 27.87 Shift Repairman 25.10
1st Repairman 27.87 Shift Analyst 24.93
2nd Electrician 27.87 2nd Repairman 24.17
Entry Level Maintenance 27.87 Entry Level Maintenance 24.17
Preventative Maintenance Technician 27.87 Feed End Operator 24.17
Senior Lab Technician 27.87 Shift Electrician 24.17
Shift Electrician 27.87 Shift Repairman 24.17
Shift Repairman 27.87 Packhouse Utility 24.13
Welder 27.87 Vac Fill/Plant Utility 24.13
Entry Level Maintenance 26.75 Unloader 23.84
Shift Electrician 26.75 Backhoe Operator 23.47
Entry Level Maintenance 25.93 Kiln Utility 23.47
Shift Repairman 25.93 Lubrication Technician 23.47
1st Auto Mechanic 25.39 Packhouse Utility 23.47
1st Electrician 25.39 Process Assistant 23.47
2nd Repairman 25.39 Storehouse Attendant 23.47
Kiln Utility 25.39 Vac/Fill Operator 23.47
Lab Assistant 25.39 Vacuum Truck Operator 23.47
Laborer 19.49 - 25.39 Bulk Loader 22.78
Mill Utility 25.39 Skid Loader 20.02
Plant Utility 25.39 Sweeper 19.49
Preventative Maintenance Technician 25.39 Dispatch Fill-In 12.79
Shift Analyst Lab Asst 25.39 Dispatch Relief 12.58
Vac/Fill Operator 25.39

Wages increased 3.5% in the last 12 months, effective January 1, 2011.

Benefits % paid
Life Insurance yes 100 2x salary
AD&D yes 100 2x salary
Medical Insurance yes 100
Dental Insurance yes 100
Vision Insurance yes 100

LA Metal
50 Copyright © 2011 InfoMine USA, Inc.
PENNSYLVANIA

Mine Code: 711, Pennsylvania. (continued)

Benefits % paid Vacation


Years Days
Retirement Benefits yes Service Vacation
401(k) plans: company provides 3% of base pay whether employee 1 10
contributes or not. If employee contributes the company provides 3 10
a 50% match on employee contributions up to 6% of pay. 5 15
10 15
Sick Leave yes 5 days 15 17
Disability Income Ins. yes 20 20
Salary continuation (STD) begins after absence of five days work 25/plus 20
in a 30 day period, up to 26 weeks. Payment varies on length of
service.
Long Term Disability (LTD) begins after 180 days of disability and
continues until age 65. Benefit amount is 60% of base salary.

10 days paid holidays per year.

Shift differential: None.

Incentive bonus plan: None.

LA Metal
Copyright © 2011 InfoMine USA, Inc. 51
TENNESSEE

Mine Code: 492, Tennessee.


Limestone, surface and underground operations.
Non-union
Approximately 20 employees: 5 administrative/managerial and 15 hourly employees.

Hourly
Job Classification Wage Base
Electrician I $20.57
Mechanic III 18.28
Operator - Plant IV 17.79
Operator - Equipment IV 16.90
Welder II 16.90
Driller II 16.42
Operator - Plant III 15.96
Truck Driver 15.52
Laborer II 14.68
Welder I 14.68
Truck Driver 14.27

Wages increased 1.5% in the last 12 months, effective January 1, 2011.

Benefits % paid Vacation


Life Insurance yes 100 Salaried: 2x annual wage Years Days
Hourly: $35,000 Service Vacation
AD&D yes 100 Salaried: 3x annual wage 1 5
Hourly: varies 3 10
Medical Insurance yes 83 5 15
Dental Insurance yes 66 10 15
Vision Insurance yes 100 15 15
Retirement Benefits yes 20 20
401(k): Company matches up to 4% 25/plus 25
Sick Leave yes 100
Disability Income Ins. yes 100

9 days paid holidays per year, hourly.


10 days paid holidays per year, salaried.

Shift differential: Evening - $0.50/hour, night - $0.50/hour.

Incentive bonus plan: Safety incentive program for hourly employees.

Other benefits: Employee Assistance Program, tuition reimbursement, flexible spending account,
funeral/bereavement play, jury duty pay, company service award program, matching gifts
programs, prescription safety glasses program, scholarship.

LA Metal
52 Copyright © 2011 InfoMine USA, Inc.
TENNESSEE

Mine Code: 132, Tennessee.


Zinc, Underground, Care and maintenance.
Non-union.
Approximately 50 employees.

Hourly
Job Classification Wage Base
Lead Person $20.10
Maintenance 1 19.10
Miner 1 19.10
Mill Hand 1 19.10
Maintenance 2 18.00
Miner 2 18.00
Mill Hand 2 18.00
Maintenance 3 17.00
Miner 3 16.00
Mill Hand 3 16.00

No change in wages in the last 12 months.

Benefits % paid Vacation


Life Insurance yes 100 $50,000 Years Days
Medical Insurance yes 90 Service Vacation
Dental Insurance yes 100 preventative and 1 10
major services 3 15
Vision Insurance yes 100 5 15
Retirement Benefits yes 100 10 20
401K - Company matches up to 3% of base wages. 15 20
20 20
Sick Leave no 25/plus 20
Disability Income Ins. no

8 days paid holidays per year.

Shift differential: Night - $.35/hour.

Cost of benefits: (as a % of wages) Mandated Voluntary


Hourly 10% 25%
Salaried 10% 30%

Incentive bonus plan: Productivity target 10% paid quarterly.

LA Metal
Copyright © 2011 InfoMine USA, Inc. 53
TEXAS

Mine Code: 681, Texas.


Uranium, In-situ recovery process, 1,000,000 pounds per year.
Non-union.
90 employees: 30 managerial/administrative and 60 hourly employees.

Hourly Hourly
Job Classification Wage Base Job Classification Wage Base
Electrician $23.69 Casing Crew $11.85 - 15.71
Plant Maintenance Welder 21.12 Logger Assistant 15.71
Shift Foreman 20.09 - 20.60 Wellfield Maintenance 13.39 - 15.71
Plant Maintenance Supervisor 20.09 RO Operator 15.19
Plant Operator 14.16 - 20.09 Logger 14.42
Logger Supervisor 19.57 Plant Maintenance 11.33 - 14.42
Mechanic 16.22 - 18.03 Senior Lab Technician 14.42
Crew Leader 17.51 Mechanical Integrity 14.16
Wellfield Operator 14.42 - 17.00 Equipment Operator 13.13
Assistant Plant Operator 12.88 - 16.74 Lab Technician 11.85
Dryer Operator 15.19 - 16.74 Sampler 11.33
Environmental Sampler 16.22 Mine Maintenance 11.33
Backhoe Operator 13.39 - 15.71

Wages increased 3% in the last 12 months, effective January 1, 2011.

Benefits % paid Vacation


Life Insurance yes 90 $30,000 Years Days
AD&D yes 90 Service Vacation
Medical Insurance yes 90 1 16
Dental Insurance yes 90 3 16
Vision Insurance yes 90 5 21
Retirement Benefits yes 100 10 27
401K savings plan 15 27
20 27
Sick Leave yes 25/plus 27
Disability Income Ins. no

9 days paid holidays per year.

Shift differential: Evening - $1.00/hour, night - $1.00/hour.

Incentive bonus plan: Bonus is based on meeting specific goals: Production - 40%, costs - 40%, safety - 20%.

Salaried bonus amounts are weighted by whether the performance meets or exceeds the
threshold in those categories, and the adjusted bonus percentage is factored against a base
salary percentage.

Hourly employees receive a lump sum bonus if the Company meets threshold in all three
categories.

LA Metal
54 Copyright © 2011 InfoMine USA, Inc.
TEXAS

Mine Code: 673, Texas.


Talc, Surface.
Non-union.
50 employees: 10 administrative/managerial and 40 hourly employees.

Hourly
Job Classification Wage Base
Mechanics $12.50 - 17.00
Mine Operators 12.50 - 16.00
Lab Technicians 12.50 - 16.00
Plant Operators 12.00 - 15.00
Laborer 9.00 - 11.25
Baggers 9.00 - 11.25

Wages increased 3% in the last 12 months, effective April 2011.

Benefits % paid Vacation


Life Insurance yes 100 2x annual salary
AD&D yes 100 2x annual salary Years Days
Medical Insurance yes 100 Service Vacation
Dental Insurance no 1 10
Vision Insurance no 3 10
Retirement Benefits yes 5 15
401(k): Company match 100% up to 4% of wages 10 15
15 20
Sick Leave yes 100 5 days per year 20 20
Disability Income Ins. yes 25/plus 25

10 days paid holidays per year.

Shift differential: Night: $1.00/hour.

Cost of benefits:
Mandated Voluntary
Hourly: $4.00/hour $2.00/hour
Salaried: $4.00/hour $3.00/hour

Incentive bonus plan: Safety bonus and annual bonus based on performance reviews as well as Christmas bonus.

Other benefits: Transportation to mine/plant. Wellness plan. Health Saving Plan.

LA Metal
Copyright © 2011 InfoMine USA, Inc. 55
TEXAS

Mine Code: 480, Texas.


Limestone, Surface, 1,800,000 short tons per year.
Non-union.
31 employees: 4 administrative/managerial, 17 hourly and 10 contractor employees.

Hourly
Job Classification Wage Base
Team Leader $22.37
Kiln Operator 19.50 - 21.85
Lead Electrician 20.50
Loader Operator 18.20
Utility 14.15 - 14.53
Mechanic 14.50
Maintenance 14.50
Lab Technician 13.80
Laborer 13.17

Wages increased 3% in the last 12 months, effective January, 2011.

Benefits % paid Vacation


Life Insurance yes 100 2 x wages Years Days
Medical Insurance yes 80 Service Vacation
Dental Insurance yes 80 1 10
Vision Insurance yes 100 3 10
Retirement Benefits yes 5 15
401K plan - Company match 50% up to 6% of wages 10 15
15 20
Sick Leave yes Salaried only 20 20
Disability Income Ins. yes 100 25/plus 20
90 days salary continuation.

10 days paid holidays per year.

Shift differential: None.

Cost of benefits: (as a % of wages) Mandated Voluntary*


Hourly 8.5% 30%
Salaried 8.0% 27%
*Cost of time-off (vacations, holidays, and sick leave) not included.

Incentive bonus plan: Company pays a bonus based on operating results against operating budget. Payouts vary
between 0% and 120%. Personal objectives are also a component of this plan.

LA Metal
56 Copyright © 2011 InfoMine USA, Inc.
UTAH

Mine Code: 486, Utah.


Limestone, Surface, 200,000 short tons per year.
Union: International Brotherhood of Boilermakers.
8 employees: 3 administrative/managerial and 5 hourly employees.

Hourly
Job Classification Wage Base
Working Lead Man $24.13
Quarry Loader Operator 23.04
Hydrate Operator 22.17

Wages increased 3% in the last 12 months, effective June 1, 2011.

Benefits % paid Vacation


Life Insurance yes 100 1.5 x wage-hourly Years Days
2 x salary-salaried Service Vacation
Medical Insurance yes 80 1 5
Dental Insurance yes 80 3 10
Vision Insurance yes 100 5 10
Retirement Benefits yes 10 15
401K plan - Salaried: Company match 50% up to 6% of wages 15 15
Union: Company match 25% up to 6% of wages 20 20
Defined benefit - Union only 25/plus 20
Sick Leave yes Salaried only
Disability Income Ins. yes 100
Union: Short-term disability - up to 26 weeks
Salaried: 90 days salary continuation

10 days paid holidays per year.

Shift differential: None.

Cost of benefits: (as a % of wages) Mandated Voluntary*


Hourly 8.5% 30%
Salaried 8.0% 27%
*Cost of time-off (vacations, holidays, and sick leave) not included.

Incentive bonus plan: Company pays a bonus based on operating results against operating budget. Payouts vary
between 0% and 120%. Personal objectives are also a component of this plan.

LA Metal
Copyright © 2011 InfoMine USA, Inc. 57
VERMONT

Mine Code: 336, Vermont.


Dimension granite, Surface, 2 quarries, 82,000 short tons, 700,000 cu.ft. salable stone.
Union: United Steelworkers.
100 employees: 20 administrative/managerial and 80 hourly employees.

Hourly Hourly
Classification Wage Base Classification Wage Base
Quarry Quarry - Service
Expeditor $22.45 Bar Mechanic/Hoist Mechanic/Bit Grinder $20.45
Powderman 21.20 Machinist 20.45
Derrickman 20.45 Welder 20.45
Hoist Operator 20.45 Mechanic 20.45
Equipment Operator 20.45 Piper 20.45
Quarryman 20.45 Head Ringer 20.45
Drill Operator 20.45 Electrician 20.45
Wiresaw Operator 20.45 Compressor Operator/Utility Truck Driver 20.45
Rigger/Carpenter 20.45

Laborer Trainee (2nd year) 18.41


Laborer Trainee (1st year) 16.36

Wages increased 2.0% in the last 12 months, effective May 1, 2011.

Benefits % paid Vacation


Life Insurance yes 100 $60,000 hourly Days Days
1.5 x base - salaried Years Vacation Vacation
AD&D yes 100 $60,000 Service (Hourly) (Salary)
Medical Insurance yes 1 5 10
Hourly: Company pays 93%. 3 15 15
Salary: Company pays 85%. 5 15 15
10 15 15
Dental Insurance yes 88 Salaried only 15 15 20
Vision Insurance yes 100 20 21 20
Retirement Benefits yes 100 25/plus 25 20
Defined contribution: Company contributes $1.70 per hour to plan
401K plan: 35% match on first $1,000 - 10% match thereafter

Sick Leave no
Disability Income Ins. yes 100 Sickness and accident insurance, pay
$345 per week for 52 weeks with social
security offset for the last 26 weeks.
11 days paid holidays per year.

LA Metal
58 Copyright © 2011 InfoMine USA, Inc.
VERMONT

Mine Code: 336, Vermont. (continued)

Shift differential: Evening-$.75/hour; night-$.75/hour.

Remote quarry travel pay: Employees assigned to remote quarry receive as a temporary rate $.50/hour over the
quarry minimum set wage.

Cost of benefits: (as a % of wages) Mandated Voluntary


Hourly 15% 60%
Salaried 10% 40%

Seniority Bonus Pay:

Years of Service Bonus


5 6.25 cents per hour
6 7.5 cents per hour
7 8.75 cents per hour
8 10 cents per hour
9 11.25 cents per hour
10 12.5 cents per hour
11 13.75 cents per hour
12 15 cents per hour
13 16.25 cents per hour
14 17.5 cents per hour
15 18.75 cents per hour
20 .20 cents per hour
25 .25 cents per hour
30 .30 cents per hour
40 .40 cents per hour
45 .45 cents per hour

Seniority bonuses are paid semi-annually, on or before the last Friday prior to July 1 and the last Friday prior to the
start of the winter shutdown period. The bonus payment prior to Christmas is based on hours paid between June 1
and November 30, and the payment prior to July 1 is based on hours paid between December 1 and May 31. To be
eligible for payment, employee must be on the company payroll at the time of payment except in cases of retirement
or layoff. A discharge cancels accumulated bonus as well as years of service with the company.

Other benefits: Company paid safety equipment (respirators, hard hats, gloves and glasses). Company pays for
up to 2 pairs of safety footwear per year to a maximum value of $80 per each pair. Military
leave, jury duty pay up to 20 days per year, bereavement leave (up to 5 days paid), birth of
biological child - one day paid leave.

Incentive bonus plan: Each regular, full-time union employee (excluding summer employees) shall be entitled to
participate in an incentive program providing for a monthly and annual payments for
production efficiency. For the months of March through December (inclusive) each year,
the Company will pay each employee a monthly payment of $1.00 for each .01 cubic foot
of saleable cubic feet of granite produced in the quarries per man hour worked in that month
in excess of 4.3 saleable cubic feet per man hour worked. Payment will be made not later
than the second (2nd) weekly pay period after the close of the month.

LA Metal
Copyright © 2011 InfoMine USA, Inc. 59
VERMONT

Mine Code: 336, Vermont. (continued)

Benefits: (continued)

Incentive bonus plan: In addition to the monthly payment the company will make an annual incentive payment
to each Employee for the ten (10) month period of fiscal March through December equal
to $25.00 for each .01 of saleable cubic feet produced per man hour worked in the ten (10)
month period in excess of 4.3 cubic feet per man hour worked.

The months of January and February are excluded from both the monthly and annual
incentive plan due to adverse weather conditions and probable layoffs in those months.

Monthly saleable cubic feet produced per man hour worked shall be determined by dividing
the total saleable cubic feet quarried from the Company’s Vermont quarries each month
from the beginning of fiscal March through the last day of quarry work in fiscal December
by the total hours worked by the employees covered by this Agreement during that month.

The annual payment will be based on total saleable cubic feet quarried and total hours
worked for all ten (10) months. Total saleable cubic feet quarried shall be as determined
by the Company and reflected on its books of account. Hours worked shall not include
vacations, holidays, call out time or other paid, but unworked hours.

The President, Treasurer and Staff Representative of the Union shall have the right to
inspect the quarry production, quarry payroll and quarry hours worked records of the
Company to verify the calculations under this section.

The annual payment will be made on the last work day before the annual Christmas holiday
with any inquired adjustment for that last day being paid within seven (7) days. Payment
will be prorated to the nearest one hundredth (0.01) of a cubic foot.

Employees who quit or are terminated during the year shall not be entitled to any payment
under this program. Employees who retire during the year or are absent due to on-the-job
or off-the-job injury shall receive a pro rata share based on months worked during the year.

Employees who retire during a month or are absent due to an on-the-job or off-the-job
injury shall receive the monthly payment on a pro rata share based on days worked in the
month, except a person who is injured on the job will receive the full monthly payment for
the month the injury occurred. In addition, absence due to vacation, holiday or
bereavement will not be considered as time away from the job for purposes of the monthly
payment.

LA Metal
60 Copyright © 2011 InfoMine USA, Inc.
VIRGINIA

Mine Code: 729, Virginia.


Mineral sands, Surface.
Non-union.
201 employees: 57 administrative/managerial, 79 hourly and 65 contractor employees.

Hourly
Job Classification Wage Base
Electrician $24.96 - 29.03
Mechanic 21.81 - 27.87
Information Systems Technician 23.22
Lube Technician 22.17
Laboratory Technician 15.08 - 20.99
Logistics Specialist 16.82 - 20.58
Shipping Operator 19.51 - 20.51
Mine Operator Field Services 15.08 - 19.97
Accounts Payable Clerk 19.78
Mine Operator 15.68 - 19.41
Processing Operator 15.08 - 18.20
Mine Operator - Utility 16.79 - 16.94
Administration Assistant 16.00

Wages increased 4% in the last 12 months, effective March 1, 2011.

Benefits % paid Vacation


Life Insurance yes 100 Years Days
AD&D yes 100 Service Vacation
Medical Insurance yes 90 1 10
Dental Insurance yes 90 3 10
Vision Insurance yes 90 5 10
10 15
Retirement Benefits yes 15 20
401K plan: company matches up to 6%. 20 20
25/plus 20
Sick Leave yes 100 10 days per year
Disability Income Ins. yes 65

10 days paid holidays per year.

Shift differential: None.

Shift Schedule: 12 hours per day.

Incentive bonus plan: None.

Other benefits: Employee assistance program (EAP).

LA Metal
Copyright © 2011 InfoMine USA, Inc. 61
WASHINGTON

Mine Code: 388, Washington.


Limestone, Surface, 200,000 short tons per year.
Non-union.
59 employees: 27 managerial/administrative, 31 hourly and 1 contractor employee.

Hourly
Job Classification Wage Base
Electrician $27.80
Machine Operator 25.75
Quality Assurance 23.00
Millwright 22.70
Assistant Operator 19.50
Lubrication Technician 19.50
Loading/Unloading 18.80
Warehouse Labor 17.50

Wages increased 3% in the last 12 months, effective July 1, 2011.

Benefits % paid Vacation


Life Insurance yes 100 Hourly: $100,000 Years Days
Salaried: $100,000 Service Vacation
AD&D yes 100 Up to $66,000 1 8
Medical Insurance yes 92 3 13
Dental Insurance yes 92 5 18
Vision Insurance yes 80 frames are not covered 10 18
Retirement Benefits yes 100 15 20
401K plan: 1.5% match. 20 25
Defined contribution: 3% of wages. (Profit Sharing) 25/plus 25
Sick Leave yes 66 66% wages up to 20 weeks
Disability Income Ins. yes 100

8 days paid holidays per year.

Shift differential: Evening - $0.40/hour; night - $0.40/hour.


Shift schedule: maintenance 8 hour, support 10 hour, and production 12 hour shifts.

Cost of benefits: ($ per employee per year) Mandated Voluntary


Hourly 18% 30%
Salaried 18% 20%

Other benefits: EAP-Employee Assistance Program, college education program, tool allowances, personal
leave, company housing, relocation allowance, legal services, on-site learning systems, military
leave, bereavement leave - 3 days, overall laundry service, educational assistance, computer and
hardship loans, first aid supplies, safety equipment, prescription safety glasses, free company
products, membership fees paid to professional associations, sickness insurance at reduced cost,
birthday dinners and potlucks and parties and on-the-spot rewards.

Incentive bonus plan: This company provides a safety bonus and a sales incentive bonus for sales staff.

LA Metal
62 Copyright © 2011 InfoMine USA, Inc.
WASHINGTON

Mine Code: 181, Washington.


Gold, Underground, 300,000 short tons ore per year.
Non-union.
300 employees: 80 managerial/administrative, 120 hourly, and 100 contractor employees.

Hourly Hourly
Job Classification Wage Base Job Classification Wage Base
Electrician III $29.80 Miner 2 - Level 1 $24.04
Millwright III 29.77 Mill Operator IV 23.73
Survey Party Chief 29.77 Millwright I 23.73
Trades III 29.77 Trades I 23.73
Miner 3 - Level 3 28.20 Water Treatment Plant Operator IV 23.73
Assay Tech V 27.98 Miner 1 - Level 3 23.31
Mill Operator VII 27.98 Equipment Operator I 23.23
Water Treatment Plant Operator VII 27.98 Miner 1 - Level 2 22.49
Miner 3 - Level 2 27.41 Assay Technician III 22.01
Mill Operator VI 26.32 Mill Operator III 22.01
Water Treatment Plant Operator VI 26.32 Water Treatment Plant Operator III 22.01
Miner 3 - Level 1 26.27 Miner 1 - Level 1 20.33
Miner 2 - Level 3 25.88 Assay Technician II 19.70
Millwright II 25.36 Mill Operator II 19.70
Trades II 25.36 Water Treatment Plant Operator II 19.70
Assay Tech IV 25.22 Summer Intern 19.42
Clerk IV 25.22 Custodial II 18.22
Equipment Operator II 25.22 Assay Technician I 17.41
Mill Operator V 25.22 Custodial I 17.41
Water Treatment Plant Operator V 25.22 Mill Operator I 17.41
Miner 2 - Level 2 24.84 Security 17.41
Electrician II 24.65 Water Treatment Operator I 17.41
Instrumentation Technician 24.65

Wages increased 3.5% in the last 12 months, effective January 1, 2011.

Benefits % paid Vacation


Life Insurance yes 100 2 x annual wage Years Hours
AD&D yes 100 4 x annual wage Service Vacation
Medical Insurance yes 100 1 80
Dental Insurance yes 100 3 80
Vision Insurance yes 100 5 120
Retirement Benefits yes 10 160
401K - Company match up to 6%, plus company will 15 160
invest an additional 2% of employee’s 20 200
compensation each pay period. Employee can 25/plus 200
contribute up to 50% of wages.

Sick Leave no
Disability Income Ins. yes

10 days paid holidays per year.

Shift differential: Night - $.25/hour.

LA Metal
Copyright © 2011 InfoMine USA, Inc. 63
WASHINGTON

Mine Code: 181, Washington. (continued)

Incentive bonus plans: This company provides a typical underground mine production bonus, plus an employee
incentive of 0% to 10% of wages for meeting production targets and cost targets, and a
safety bonus for no LTAs.

Other benefits: Bereavement leave - 24 hours paid; subsidized gear - boots, gloves, and slickers; safety glasses
program, adoption assistance program, educational reimbursement, and employee share purchase
plan. Dependent Life Insurance - $10,000 spouse and $5,000 per child up to 26 if full-time
student. Supplemental life insurance available at employee option.

LA Metal
64 Copyright © 2011 InfoMine USA, Inc.
WYOMING

Mine Code: 654, Wyoming.


Barite and bentonite, Surface.
Non-union.
190 employees: 27 administrative/managerial, 145 hourly, and 18 contractor employees.

Hourly Hourly
Job Classification Wage Base Job Classification Wage Base
Maintenance Mechanic I $28.93 Electrician $21.63 - 23.08
Maintenance Mechanic A 28.37 - 28.74 Production Maintenance Lead 23.08
Utility Operator II 24.13 - 27.71 Mechanic 22.30
Miner 25.61 - 27.71 Mechanic Helper 20.86 - 21.81
Jig Operator 25.10 - 27.71 Front End Loader Operator 19.41 - 21.79
Technician III 26.33 Tractor Operator 19.41 - 21.79
Utility Operator 26.09 Utility Operator 21.40 - 21.79
Maintenance Mechanic II 23.09 - 25.86 Mill Operator 21.63
Crusher System Operator 25.36 - 25.86 Hopper Loader 21.63
Heavy Equipment Operator 23.61- 25.56 Water Truck Operator 21.40
Master Mechanic 23.97 Motor Grader Operator Lead 21.40
Heavy Equipment Mechanic B 23.61 Driver 20.86
Maintenance Mechanic B 21.40 - 23.61 Warehouseman 19.70 - 20.70
Welder 23.12 Car Inspector 19.70
Utility Mechanic 21.63 - 23.12 Packer Operator 19.46
Maintenance Person 20.49 - 23.08 Helper 18.04 - 22.13
Maintenance I 23.08 Laborer 14.84 - 18.74

Wages increased 3% in the last 12 months, effective July 2011.

Benefits % paid Vacation


Life Insurance yes 100 up to 10x annual earnings Years Days
AD&D yes 100 up to 10x annual earnings Service Vacation
Medical Insurance yes 100 1 5
Dental Insurance yes 100 3 10
Vision Insurance yes 100 5 15
Retirement Benefits yes 10 20
401(k) plan 15 20
20 25
Sick Leave yes 100 25/plus 25
Disability Income Ins. yes 100

12 days paid holidays per year.

Shift differential: Evening - $0.20/hour, night - $.40/hour.

Shift Schedule: 8 hour shifts.

Incentive bonus plans: None.

LA Metal
Copyright © 2011 InfoMine USA, Inc. 65
WYOMING

Mine Code: 111, Wyoming.


Trona/Soda Ash, Underground operations, 4,850,000 short tons soda ash per year.
Union: United Steelworkers of America.
920 employees: 275 administrative/managerial and 645 hourly employees.

Hourly Hourly
Job Classification Wage Base Job Classification Wage Base
Mine Day Relief Operator $36.26
Shearer Operator $38.61 Dayshift Relief Operator - Utilities 36.26
Continuous Miner Operator 38.61 Control Operator-Kiln/Caustic
Relief Operator 38.61 (Special Advancement) 36.26
Blaster 38.61 AAA Class
Longwall Operator 38.05 Control Operator - Kiln/Caustic $36.26
Longwall Utility 38.05 Dayshift Relief Operator - Kiln/Caustic 36.26
Hoistman 38.05 Plant Operator 36.26
Roof Bolter Operator 37.62 Boiler Operator 36.26
Hoist Operator - Trainee/Relief 37.48 Utility Relief Operator 36.26
Belt Technician “A” 36.94 North Control Operator 36.26
Bit Grinder 36.94 AA Class Operator
Cager 36.94 I Operator - Utilities $35.76
Core Driller Operator 36.94 II Operator - Utilities 35.76
Front End Loader Operator 36.94 Boiler Operator - Utilities 35.76
Gen. Services Ventilation 36.94 Crusher/Dissolver Control Op. 35.76
Pump Technician 36.94 Filter Operator 35.76
Jeep Driver 36.94 Plant Operator 35.76
Sanitation Attendant 36.94 Process Operator - Bicarb 35.76
Shaft Attendant 36.94 Bulk Loader Screen Operator 35.76
Shaft Repair Technician 36.94 Senior Lab Analyst 35.76
Shuttle Car Operator 36.94 Plant Operator 35.76
Stores Operator Mine 36.94 Clean-up/Tailings/Relief 35.76
Surface Services, Front End Loader 36.94 A Class Operator
Trash Attendant 36.94 Process Helper - Kiln/Caustic $35.39
Ventilation Class “A” 36.94 Solution Mining Operator 35.39
Core Driller Helper 31.31 Crystallizer Operator 35.39
Utility Helper 31.31 Dredge Attendant - Crystal Recovery 35.39
Maintenance Dayshift Relief Op. - Crystal Recovery 35.39
Class “A” Maintenance (Mine) $38.61 Utility Helper 35.39
Class “AA” Maintenance (Surface) 38.05 Loading Operator - Caustic 35.39
Class “A” Maintenance (Surface) 37.48 Stockpile Operator 35.39
Class “B” Maintenance (Mine) 35.52 North Control Helper 35.39
Class “B” Maintenance (Surface) 34.91 Crusher Helper 35.39
Class “C” Maintenance (Surface) 33.82 Pumphouse Operator 35.39
Class “C” Maintenance Career Student 33.82 Crystallizer Operator 32.88
Plant Calciner Operator 35.39
CPO Class Operator Hi-temp Operator 35.39
Control Operator-Utilities $38.61 Baby Sesqui Operator 35.39
South Control Operator 38.61 Bagging Machine Operator - Distribution 35.39
ZA CLASS OPERATOR Bagging Helper - Distribution 35.39
CCR Control Operator 36.86 Trackmobile Operator - Distribution 35.39
Control Room Operator 36.86 Bagging/Warehouse Operator - Bicarb 35.39
Utility Relief Operator 36.86 Bicarb Operator (Special Advancement) 35.39

LA Metal
66 Copyright © 2011 InfoMine USA, Inc.
WYOMING

Mine Code: 111, Wyoming. (continued)

Hourly Hourly
Job Classification Wage Base Job Classification Wage Base
A Class Operator Utility Relief Operator - Distribution $34.26
Water Treater $35.39 Clean-up Operator 34.26
Stores Operator 35.39 Utility Relief Operator - Bicarb 34.26
Silo Reclaim Operator 35.39 Analyst II 34.26
Cleanup/Relief/Dissolver Operator 35.39 Transloader - Distribution 34.26
South Control Helper 30.09 C Class Operator
B Class Operator Powerhouse Helper - Utilities $33.49
Utility Helper - Utilities $34.26 Acid Cleaner 33.49
Utility Relief Operator - Caustic 34.26 Analyst I - Lab 33.49
Shore Operator - Crystal Recovery 34.26 Clean-up Operator 33.49
Utility Relief Operator 34.26 Analyst Trainee - Lab 32.98
Dissolver Helper 34.26
Trackmobile Helper - Distribution 34.26 Janitor 28.75
Car Cleaner - Distribution 34.26 Yardperson 28.12
Acid Cleaner/Equipment Operator 34.26

Wages increased 4.0% for hourly employees and 2.5% for salaried employees, effective July 1, 2011.

Union Benefits Vacation - Union


% paid
Life Insurance yes 100 1 x annual wages Years Days
AD&D yes 100 1 x annual wages Service Vacation
Medical Insurance yes 80 1 5
Dental Insurance yes 80 3 10
Vision Insurance no 5 15
insurance is offered, but is paid for by the employee. 10 20
Retirement Benefits yes 100 15 20
Defined benefit 20 25
401(k): no company match 25/plus 30
Sick Leave yes Short-term disability
Disability Income Ins. yes
12 paid holidays per year.

Salaried Benefits Vacation - Salaried


% paid
Life Insurance yes 100 1 x salary Years Days
AD&D yes 100 1 x salary Service Vacation
Medical Insurance yes 75 1 10
Dental Insurance yes 75 3 10
Vision Insurance no 5 15
insurance is offered, but is paid for by the employee. 10 20
Retirement Benefits yes 100 15 20
401K plan - company matches 80% of first 5% of 20 25
employee contribution, to 4% of salary. 25/plus 30
Sick Leave yes Short-term disability
Disability Income Ins. yes
12 days paid holidays per year.

LA Metal
Copyright © 2011 InfoMine USA, Inc. 67
WYOMING

Mine Code: 111, Wyoming. (continued)

Shift differential: Evening - $0.60/hour; night - $1.00/hour; Sunday - $1.20/hour.

Shift schedule: 8 hour shifts.


Cost of benefits: ($ per employee per year) Mandated Voluntary
Hourly 15% 25%
Salaried 15% 25%

Incentive bonus plan: None.

Other benefits: All employees: EAP - Employee Assistance program, transportation to mine, safety equipment,
military leave, tools, 3-5 days bereavement leave, jury duty leave.

LA Metal
68 Copyright © 2011 InfoMine USA, Inc.
U.S. Coal Mine Survey

Of the 59 coal mines responding to this year's survey, Other benefits increased as well, including life
38 union and 11 non-union mines showed increases in insurance, AD&D, death benefits, vision, dental,
wages, ranging from 2.0% to 5.0% in the 12 months sickness and accident benefits, and the clothing
preceding the survey. Ten mines showed no change in allowance.
wages. None of the mines reported a decrease in Additions to benefit packages at both union and
wages. Listed in this section (pages LA Coal 8-36) are non-union mines reported in recent surveys tend to
actual wage and benefit plan summaries for 28 coal emphasize education, including student loans,
mines selected from the survey results and arranged by computer loans, and employee education allowances.
state. All of the mines are identified by a code number Eight companies offer employee assistance programs
only. Wage and benefit plan summaries for 31 which provide financial, legal, and mental health
additional mines are available from InfoMine USA, Inc counseling, among other services. Other benefits
in a report entitled U.S. Coal Mine Salaries, Wages and reported include protective safety clothing and shoes,
Benefits, 2011 Survey Results. The report also contains Native Healer coverage, coal for home heating,
salary scales for managerial, technical and support reporting pay, transportation to minesite, medical
personnel at 35 coal mines. Thirty-nine of the 59 coal benefits for domestic partners, personal and family
mines offer some sort of incentive bonus plan. leave, bereavement, jury duty and military leave,
Some of the union mines surveyed are participants fitness equipment loans, Christmas bonuses, and 401K
in the National Bituminous Coal Wage Agreement of thrift and stock purchase plans.
2007. This five-year contract between the United Mine Distinct differences in employment practices are
Workers of America (UMWA) and the Bituminous sometimes apparent between small and large mines.
Coal Operator's Association (BCOA) expires on To demonstrate the differences, we divided the mines
December 31, 2011. Under the contract, currently between those with fewer than 100 employees (11
working UMWA miners received a $1,000 lump sum mines) and those with more than 100 employees (48
bonus in February 2007. Wages increased $4 per hour mines). As can be seen by table 11, on the next page,
over the term of the agreement, $1.50 on January 1, miners at small surface mines make considerably less
2007, $1.00 on January 1, 2008, and $0.50 each than their counterparts at large surface mines. The
January thereafter, through 2011. In addition, the shift differences at underground mines are not as apparent
differential increased to $0.40 per hour for afternoon and can be generally attributed to the influence of
shift work and $0.50 per hour for midnight shift work. union contract on wages. In 2011, 73% of small mines
UMWA pension benefits under the BCOA contract and 65% of large mines offered their employees
increased by $10 per month per year of service. The incentive bonus plans. Employees at large mines are
pension multiplier increased by $4 per month in 2007, generally more likely to benefit from a medical plan
with another $4 increase effective January 1, 2009, and and retirement plan, and receive more vacation and
an additional $2 per month increase effective January 1, holiday time off. This year a higher percentage of
2011. small mines offered incentive plans.

LA Coal
Copyright © 2011 InfoMine USA, Inc. 1
Table 11. Average benchmark hourly wages - Small mines versus large mines (U.S. $/hour)

Small Mines Large Mines


(10 mines) (46 mines)
Average Average
Job Title (US$ per hour) (US$ per hour)
Surface Mines
Electrician $26.96 $28.37
Mechanic 23.48 27.43
Welder 24.25 26.51
Helper 21.50 24.51
Oiler 19.85 26.54
Shovel/Dragline Operator 24.22 29.67
Drill Operator 19.69 26.67
Mobile Equipment Operator 21.20 25.36
Production Truck Driver 19.49 25.25
Laborer 20.50 23.36
Underground Mines
Electrician 27.48 25.49
Mechanic 24.21 24.97
Welder 24.42 24.65
Helper 23.42 23.59
Continuous Miner Operator 28.14 25.00
UG Driller/Shooter 24.01 25.41
Roof Bolter 27.71 24.95
UG Loading Machine Operator 27.51 25.08
Underground Laborer 24.37 23.44
Prep Plant Operations (All mines)
Stationary Equipment Operator 24.61 24.07
Prep Plant Laborer 23.23 23.77
Benefits % of mines % of mines
Incentive bonus plans 70% 63%
Life Insurance 100% 94%
Medical benefits 100% 96%
Retirement plans 80% 94%

LA Coal
2 Copyright © 2011 InfoMine USA, Inc.
Table 12. Wage and Benefit Summary: Surface Coal Mines - Eastern U.S.

Union Non-union
Number of mines 4 8

Benefits partially or fully paid by company # of mines # of mines


Life insurance 4 8
Medical insurance 4 8
Dental insurance 4 7
Vision insurance 4 5
Retirement benefits 4 7
Sick leave 4 2
Disability Income Insurance 4 6

Mines with incentive bonus plans 0 7


# of mines av. change # of mines av. change
Wages increased in last 12 months 4 +2.0% 5 +3.3%
Wages decreased in last 12 months 0 --- 0 --
No change in wages in last 12 months 0 --- 3 0%
range average range average
Number of paid holidays per year all same 11 6 - 12 9

Paid life insurance coverage ($) all same 80K 65 - 130K 98K

Number of days vacation provided after


the following years service
1 year 12 - 14 13 5 - 10 9
3 years 12 - 14 13 5 - 10 9
5 years 12 - 14 13 5 - 15 13
10 years 17 - 19 18 10 - 20 16
15 years 22 - 24 23 10 - 25 19
20 years 25 - 27 26 10 - 25 19
25/plus 25 - 27 26 10 - 25 19

Total cost of benefits as a % of wages paid, incl.


workers’ comp., unemployment insurance, 54 - 58% 56% 25 - 40% 34%
social security and others

Shift differential paid (US$/hour)


Evening all same $0.40 $0.35 - 0.50 $0.40
Night all same 0.50 0.45 - 0.50 0.47

Benchmark hourly wages (US$/hour)


Strip shovel/dragline operator all same $25.18 $22.60 - 24.25 $23.43
Mechanic $24.36 - 24.53 24.45 17.00 - 29.25 22.66
Electrician 24.36 - 25.18 24.77 24.25 - 30.00 27.53
Welder 24.36 - 24.53 24.45 24.25 - 25.25 24.75
Helper all same 23.84 21.50* 21.50
Oiler all same 24.53 15.00 - 25.25 21.09
Mobile equipment operator 24.12 - 24.16 24.14 15.00 - 26.25 21.40
Haul truck driver all same 23.80 15.00 - 21.50 18.25
Laborer 23.76 - 24.53 23.90 15.00 - 25.15 19.16
Driller/Shooter all same 24.16 15.00 - 22.60 19.70
Stationary equipment operator 24.12 - 24.16 24.14 15.00 - 26.60 22.52

LA Coal
Copyright © 2011 InfoMine USA, Inc. 3
Table 13. Wage and Benefit Summary: Surface Coal Mines - Western U.S.

Union Non-union
Number of mines 14 2

Benefits partially or fully paid by company # of mines # of mines


Life insurance 14 2
Medical insurance 14 2
Dental insurance 14 1
Vision insurance 12 1
Retirement benefits 14 1
Sick leave 13 1
Disability Income Insurance 14 1

Mines with incentive bonus plans 11 1

# of mines av. change # of mines av. change


Wages increased in last 12 months 13 +2.8% 1 +2.5%
Wages decreased in last 12 months 0 --- 0 ---
No change in wages in last 12 months 1 0% 1 0%

range average range average


Number of paid holidays per year 10 - 18 11 6 - 12 8

Paid life insurance coverage ($) 40 - 325K 99K 25 - 90K 58K

Number of days vacation provided after


the following years service
1 year 10 - 18 11 5 - 10 8
3 years 10 - 18 12 10 10
5 years 11 - 23 14 10 10
10 years 14 - 23 18 10 - 15 13
15 years 14 - 28 20 10 - 20 15
20 years 14 - 28 22 10 - 20 15
25/plus 14 - 28 23 10 - 20 15

Total cost of benefits as a % of wages paid, incl.


workers’ comp., unemployment insurance, 24 - 62% 41% 21 - 39% 30%
social security and others

Shift differential paid (US$/hour)


Evening $0.30 - 0.60 $0.45 --- ---
Night 0.45 - 0.75 0.54 all same $0.35

Benchmark hourly wages (US$/hour)


Strip shovel/dragline operator $25.81 - 36.66 $30.51 $31.36* $31.36
Mechanic 25.44 - 36.47 29.36 30.07 - 31.36 30.72
Electrician 25.44 - 36.47 29.12 30.07 - 31.36 30.72
Welder 24.45 - 34.82 27.96 30.07* 30.07
Helper 19.29 - 34.53 24.67 24.75* 24.75
Oiler 24.45 - 35.80 28.72 15.45 - 28.67 23.76
Mobile equipment operator 16.83 - 38.62 27.56 13.55 - 28.67 20.39
Haul truck driver 23.92 - 34.53 26.58 12.35 - 27.16 21.42
Laborer 10.71 - 33.73 22.84 22.01 - 24.75 23.38
Driller/Shooter 25.02 - 35.16 28.57 14.40 - 28.67 21.18
Stationary equipment operator 24.78 - 30.02 26.49 24.75 - 28.67 26.71

LA Coal
4 Copyright © 2011 InfoMine USA, Inc.
Table 14. Wage and Benefit Summary: Underground Coal Mines - Eastern U.S.

Union Non-union
Number of mines 20 6

Benefits partially or fully paid by company # of mines # of mines


Life insurance 20 6
Medical insurance 20 6
Dental insurance 20 6
Vision insurance 20 5
Retirement benefits 20 6
Sick leave 20 1
Disability Income Insurance 20 5

Mines with incentive bonus plans 10 6

# of mines av. change # of mines av. change


Wages increased in last 12 months 20 +2.0% 4 +3.3%
Wages decreased in last 12 months 0 --- 0 ---
No change in wages in last 12 months 0 0% 2 0%

range average range average


Number of paid holidays per year all same 11 8 - 11 10

Paid life insurance coverage ($) 60 - 130K 82K 65 - 130K 119K

Number of days vacation provided after


the following years service
1 year 10 - 16 12 all same 10
3 years 10 - 16 12 all same 10
5 years 12 - 16 13 all same 15
10 years 17 - 21 18 15 - 20 19
15 years 22 - 26 23 15 - 25 23
20 years 25 - 29 26 15 - 25 23
25/plus 25 - 29 26 15 - 25 23

Total cost of benefits as a % of wages paid, incl.


workers’ comp., unemployment insurance, 40 - 62% 50% all same 40%
social security and others

Shift differential paid (US$/hour)


Evening $0.30 - 0.40 $0.39 $0.35 - 0.50 $0.38
Night 0.40 - 0.50 0.49 0.45 - 0.50 0.46

Benchmark hourly wages (US$/hour)


Cont. miner/longwall mach. oper. $24.42 - 24.74 $24.44 $16.00 - 31.00 $27.47
Underground electrician 24.01 - 24.74 24.34 25.55 - 34.00 29.28
Underground mechanic 24.01 - 24.74 24.23 17.00 - 30.50 25.82
Welder 24.36 - 24.74 24.41 25.55 - 26.60 26.08
Helper 23.42 - 23.84 23.59 --- --
Loading machine operator 24.01 - 24.33 24.03 16.00 - 31.00 26.79
Roof bolter 24.42 - 24.74 24.44 16.00 - 31.00 26.87
Coal driller/shooter 23.96 - 24.01 24.00 26.60 - 30.50 28.75
Underground laborer 22.77 - 23.67 23.09 25.15 - 27.00 25.81
Surface stationary equip. oper. 24.01 - 24.12 24.09 15.00 - 26.60 24.12
Surface laborer 22.35 - 23.76 23.63 25.15 - 27.00 25.83

LA Coal
Copyright © 2011 InfoMine USA, Inc. 5
Table 15. Wage and Benefit Summary: Underground Coal Mines - Western U.S.

Union Non-union
Number of mines 2 3

Benefits partially or fully paid by company # of mines # of mines


Life insurance 1 2
Medical insurance 1 3
Dental insurance 1 1
Vision insurance 1 1
Retirement benefits 1 2
Sick leave 1 3
Disability Income Insurance 1 1

Mines with incentive bonus plans 1 2

# of mines av. change # of mines av. change


Wages increased in last 12 months 1 +2.0% 1 +3.0%
Wages decreased in last 12 months 0 --- 0 ---
No change in wages in last 12 months 1 0% 2 0%

range average range average


Number of paid holidays per year 11 9 - 11 10

Paid life insurance coverage ($) 80K 20 - 150K 73K

Number of days vacation provided after


the following years service
1 year all same 12 10 - 15 12
3 years all same 12 10 - 15 12
5 years all same 12 10 - 15 12
10 years all same 17 15 - 20 17
15 years all same 22 15 - 20 18
20 years all same 25 15 - 20 18
25/plus all same 25 15 - 20 18

Total cost of benefits as a % of wages paid, incl.


workers’ comp., unemployment insurance, 40% 32 - 49% 41%
social security and others

Shift differential paid (US$/hour)


Evening all same $0.40 all same $0.30
Night all same 0.50 all same 0.40

Benchmark hourly wages (US$/hour)


Cont. miner/longwall mach. oper. $24.42* $24.42 $19.00 - 29.75 $24.46
Underground electrician 24.01 - 31.68 27.75 28.65 - 32.09 29.86
Underground mechanic 24.01 - 31.68 27.75 20.00 - 32.09 27.11
Welder 24.42* 24.42 --- ---
Helper 23.42* 23.42 --- ---
Loading machine operator 24.01 - 28.41 26.41 29.75* 29.75
Roof bolter 24.42 - 28.41 26.41 20.00 - 29.75 24.34
Coal driller/shooter 24.01* 24.01 29.75* 29.75
Underground laborer 22.77 - 26.55 24.22 23.08 - 24.95 24.02
Surface stationary equip. oper. 24.12* 24.12 --- --
Surface laborer 23.76 - 27.51 25.94 19.89 - 24.95 22.73

LA Coal
6 Copyright © 2011 InfoMine USA, Inc.
Table 16. Wage and Benefit Summary: Surface and Underground Coal Mines - All U.S.

Union Non-union
Number of mines 40 19

Benefits partially or fully paid by company # of mines # of mines


Life insurance 40 18
Medical insurance 40 19
Dental insurance 40 16
Vision insurance 38 12
Retirement benefits 40 16
Sick leave 38 7
Disability Income Insurance 40 13

Mines with incentive bonus plans 23 16

# of mines av. change # of mines av. change


Wages increased in last 12 months 38 +2.3% 11 +3.2%
Wages decreased in last 12 months 0 --- - ---
No change in wages in last 12 months 2 0% 8 0%

range average range average


Number of paid holidays per year 10 - 18 11 6 - 12 10

Paid life insurance coverage ($) 40 - 325K 89K 20% - 150K 96K

Number of days vacation provided after


the following years service
1 year 10 - 18 12 5 - 15 9
3 years 10 - 18 12 5 - 15 10
5 years 11 - 23 13 5 - 15 13
10 years 14 - 23 18 10 - 20 17
15 years 14 - 28 22 10 - 25 20
20 years 14 - 29 24 10 - 25 20
25/plus 14 - 29 25 10 - 25 20

Total cost of benefits as a % of wages paid, incl.


workers’ comp., unemployment insurance, 24 - 62% 47% 21 - 49% 36%
social security and others

Shift differential paid (US$/hour)


Evening $0.30 - 0.60 $0.41 $0.30 - 0.50 $0.38
Night 0.40 - 0.75 0.51 0.35 - 0.50 0.45

Benchmark hourly wages (US$/hour)


Laborer - surface mine $10.71 - 33.73 $23.16 $15.00 - 25.15 $21.23
Laborer - underground mine 22.77 - 26.55 23.20 23.08 - 27.00 25.21
Stationary equipment operator 24.01 - 30.02 24.53 15.00 - 28.67 23.89
Mechanic - surface mine 24.36 - 36.47 28.18 17.00 - 31.36 24.12
Electrician - UG mine 24.01 - 31.68 24.75 25.55 - 34.00 29.51
Equipment operator - UG 24.01 - 28.41 24.29 16.00 - 31.00 27.12
Haul truck driver 23.80 - 34.53 25.94 12.35 - 27.16 20.15
Heavy equip. operator - surface 16.83 - 36.62 26.86 13.55 - 28.67 21.45
(Excludes dragline/strip shovel)

LA Coal
Copyright © 2011 InfoMine USA, Inc. 7
ALABAMA

Mine Code: 608, Alabama.


Coal, Underground, 3,000,000 short tons coal per year.
Union: United Mine Workers of America.
Approximately 400 employees.

Hourly Hourly
Job Classification Wage Base Job Classification Wage Base
Mining Trackman $23.668
Continuous Mine Operator $24.735 Wireman 23.668
Electrician 24.735 Laborer - Unskilled 23.668
Fireboss 24.735
Longwall Machine Operator 24.735 Training Rate 23.094
Mechanic 24.735
Roof Bolter 24.735 Prep Plant
Welder, First Class 24.735 Control Operator $24.684
Continuous Miner Helper - Trainee 24.330 Electrician 24.684
Cutting Machine Operator 24.330 Machinist 24.684
Dispatcher 24.330 Mechanic 24.684
Electrician Trainee (Max. 12 months) 24.330 Welder, First Class 24.684
General Inside Repairman & Welder 24.330 Electrician Trainee (Max 12 months) 24.441
Loading Machine Operator 24.330 Maintenance Trainee (Max 12 months) 24.441
Machine Operator Helper 24.330 Mobile Equipment Operator 24.441
Maintenance Trainee (Max. 12 months) 24.330 Railroad Car Loader Operator 24.441
Rock Driller 24.330 Repairman 24.441
Roof Bolter Helper - Trainee 24.330 Stationary Equipment Operator 24.441
Driller-Coal 23.963 Welder 24.441
Shooter 23.963 Dock Man 24.157
Precision Mason-Construction 23.963 Electrician Helper 24.157
Faceman 23.963 Electrician Trainee 24.157
Dumper 23.963 Machinist Helper 24.157
Shuttle Car Operator 23.963 Maintenance Trainee (Max 6 months) 24.157
Electrician Helper 23.740 Mechanic Helper 24.157
Electrician Trainee (Max. 6 months) 23.740 Repairman Helper 24.157
Maintenance Trainee (Max. 6 months) 23.740 Tipple Attendant 24.157
Mechanic Helper 23.740 Car Dropper 24.077
Motorman 23.740 Car Dumper 24.077
Beltman 23.668 Car Trimmer 24.077
Bonder 23.668 Sampler 24.077
Brakeman 23.668 Bit Sharpener 24.077
Bratticeman 23.668 Service Truck Driver 24.077
General Inside Labor 23.668 Equipment Operator Service 24.077
Mason 23.668 Prep Plant Utility Man 24.077
Pumper 23.668 Surface Utility Man 24.077
Timberman 23.668 Laborer - Unskilled 24.077

Wages increased $0.50/hour in the last 12 months, effective February 2, 2011.

LA Coal
8 Copyright © 2011 InfoMine USA, Inc.
ALABAMA

Mine Code: 608, Alabama. (continued)

Benefits % paid Vacation:


Life Insurance yes 100 Years Days
$60,000 Non-violent or non-accidental Service Vacation
$120,000 Violent or accidental 1 14
Medical Insurance yes* 100 3 14
*Employees pay $10 co-pay up to a maximum of $200/year 5 14
Dental Insurance yes 10 19
Vision Insurance yes up to $200/year 15 24
Retirement Benefits yes 20 27
Defined benefit 25/plus 27
401(k) plan - company match 50% of the first 4% of employee
contribution

Sick Leave yes 5 days/year


Disability Income Ins. yes

11 paid holidays per year.

Shift differential: Evening - $.30/hour, night - $.40/hour.

Cost of benefits: (as a % of wages) Mandated Voluntary


Hourly 9% 53.00%
Salaried 8% 33.85%

Incentive bonus plan: Company offers a two bonuses, one for perfect attendance and one for meeting business
objectives. Perfect Attendance Bonus: if an employee has perfect attendance for the year,
he receives 2 extra personal/sick days for the next year.

Business Objective Bonus: Following is a list of the parameters:

• Payout opportunity is a maximum of 10% of employee annual earnings.

• The corporate component pays up to 3%.

• 0 - 3% based on relative TSR (Total Stockholder Return).

• The operating company component pays up to 7% based on meeting business plan objectives for:
- Safety
- Operating Expense
- Operational Earnings

The total bonus plan payout opportunity is 6% of employee annual earnings, and the payout is split between
the corporate and operating company components. This balances the reward between corporate and operating
company performance. Each component can pay out up to a maximum of 2% based on results.

Other benefits: Employee assistance program (EAP), clothing allowance - $225/year, bereavement leave - 3 days
paid immediate family, 1 day unpaid to attend funeral for extended family, sickness and accident
insurance -$265/week.

LA Coal
Copyright © 2011 InfoMine USA, Inc. 9
ALABAMA

Mine Code: 670, Alabama.


Metallurgical and steam coal, Underground, multiple mines, >5,000,000 short tons coal per year.
Union: United Mine Workers of America.
Approximately 500 employees.

Hourly Hourly
Job Classification Wage Base Job Classification Wage Base
Mine Timberman $23.348
Continuous Mining Machine Operator $24.415 Trackman 23.348
Electrician 24.415 Wireman 23.348
Mechanic 24.415 Labor - Unskilled 22.774
Fireboss 24.415 Prep Plant
Longwall Machine Operator 24.415 Electrician $24.364
Welder, First Class 24.415 Machinist 24.364
Roof Bolter 24.415 Mechanic 24.364
Cutting Machine Operator 24.010 Welder, First Class 24.364
Dispatcher 24.010 Prep Plant Central Control Operator 24.364
Loading Machine Operator 24.010 Mobile Equipment Operator 24.120
Machine Operator Helper 24.010 Repairman 24.120
General Inside Repairman & Welder 24.010 Stationary Equipment Operator 24.120
Rock Driller 24.010 Welder 24.120
Continuous Miner Helper - Trainee 24.010 Railroad Car Loader Operator 24.120
Roof Bolter Helper - Trainee 24.010 Maintenance Trainee (Max. 12 mos.) 24.120
Maintenance Trainee (Max. 12 mos.) 24.010 Electrician Trainee (Max. 12 mos.) 24.120
Electrician Trainee (Max. 12 mos.) 24.010 Tipple Attendant 23.837
Driller - Coal 23.643 Dock Man 23.837
Shooter 23.643 Electrician Helper 23.837
Precision Mason - Construction 23.643 Machinist Helper 23.837
Faceman 23.643 Mechanic Helper 23.837
Dumper 23.643 Repairman Helper 23.837
Shuttle Car Operator 23.643 Maintenance Trainee (Max. 6 mos.) 23.837
Motorman 23.420 Electrician Trainee (Max. 6 mos.) 23.837
Maintenance Trainee (Max. 6 mos.) 23.420 Car Dropper 23.757
Electrician Trainee (Max. 6 mos.) 23.420 Car Dumper 23.757
Electrician Helper 23.420 Car Trimmer 23.757
Mechanic Helper 23.420 Sampler 23.757
Beltman 23.348 Bit Sharpener 23.757
Bonder 23.348 Truck Driver, Service 23.757
Brakeman 23.348 Equipment Operator Service 23.757
Bratticeman 23.348 Preparation Plant, Utility Man 23.757
General Inside Labor 23.348 Surface Utility Man 23.757
Mason 23.348 Laborer - Unskilled 23.757
Pumper 23.348

Wages increased $0.50/hour in the last 12 months, effective August 1, 2011.

LA Coal
10 Copyright © 2011 InfoMine USA, Inc.
ALABAMA

Mine Code: 670, Alabama. (continued)

Benefits % paid Vacation:


Life Insurance yes 100 $80,000 Years Days
AD&D yes 100 $160,000 Service Vacation
Medical Insurance yes 100 1 12
Dental Insurance yes 80 3 12
Vision Insurance yes 90 5 12
Retirement yes 10 17
Defined benefit: Plan pays $69.50/month for each year of service 15 22
20 26
Sick Leave yes 100 5 days per year 25/plus 26
Disability Income Ins. yes 100

11 days paid holidays per year.

Shift differential: Evening - $0.40/hour; night - $0.50/hour.

Cost of benefits: 60% of wages.

Incentive bonus plan: None.

Other benefits: Jury duty and up to 3 days bereavement leave. Protective clothing allowance - $750/year. Military
duty leave - up to a maximum of 2 weeks paid per year. Family & medical leave - up to 12 weeks
unpaid leave. Sickness & accident benefits - sickness: 6-52 weeks at $375/week depending on
length of service; accident: 52 weeks of pay regardless of the length of service.

No family will have to pay more than $240 for in plan physician office visits in any year and no
more than $1,600 in combined out of plan hospital and related charges and out of plan physician
charges.

LA Coal
Copyright © 2011 InfoMine USA, Inc. 11
ARIZONA

Mine Code: 511, Arizona.


Sub-bituminous coal, Surface, 8,000,000 short tons coal per year.
Union: United Mine Workers of America.
Approximately 450 employees.

Hourly Hourly
Job Classification Wage Base Job Classification Wage Base
Coal Loading Shovel Operator $26.764 Stationary Equipment Operator $25.660
Overburden Stripping Machine Operator 26.764 Shooter 25.660
Master Electrician 26.764 Maintenance Trainee II 25.660
Electrician 26.425 Mobile Equipment Operator I 25.660
Machinist 26.425 Maintenance Trainee I 24.125
Mechanic 26.425 Tipple Attendant 24.125
Welder, First Class 26.425 Helpers 24.125
Shovel Oiler 26.067 Car Dropper 25.026
Dragline Oiler 26.067 Car Dumper 25.026
Wheel Oiler 26.067 Car Trimmer 25.026
Groundman 26.067 Sampler 25.026
Welder 26.067 Truck Driver, Service 25.026
Mobile Equipment Operator II 26.067 Utility Man 25.026
Driller and Shooter 25.660 Laborer - Unskilled 25.026
Repairman 25.660 Training Rate 16.796

Wages increased $0.50/hour, effective September 1, 2011.

Benefits % paid Vacation:


Life Insurance yes 100 $75,000 Hourly Salaried
AD&D yes 100 $150,000 Years Days Days
Medical Insurance yes 100 Service Vacation Vacation
Dental Insurance yes 100 1 14 10
Vision Insurance yes 100 3 14 10
Retirement yes 100 5 14 15
Defined benefit: $50.25 per month for each year of service 10 14 15
15 14 20
Sick Leave yes 100 7 days per year 20 14 20
Disability Income Ins. yes 25/plus 14 25

9 days paid holidays per year.

Shift differential: Evening - $.40/hour, night - $.50/hour.

Cost of mandated benefits: $15.50/hour.

Incentive bonus plan: $250 per quarter for increasing production. Based upon achievement of "stretch" productivity
and cost reduction goals.

Other benefits: Flex reimbursement plan, personal leave, bereavement pay, jury duty pay, military leave pay,
reporting pay, and $250 protective clothing allowance.

LA Coal
12 Copyright © 2011 InfoMine USA, Inc.
COLORADO

Mine Code: 550, Colorado.


Sub-bituminous coal, Surface, 2,300,000 short tons of coal per year.
Union: International Union of Operating Engineers.
193 employees: 38 managerial/administrative and 155 hourly employees.

Hourly Hourly
Job Classification Wage Base Job Classification Wage Base
Excavator $30.20 Electrical Repairman $28.10
Dragline Operator 30.20 Machinist 28.10
Journeyman Electrician 30.20 Tireman 28.10
Journeyman Mechanic 30.20 Mechanical Repairman 28.10
Journeyman Machinist 30.20 Welder II 28.10
Front End Loader Operator 30.20
Warehouseman 28.10
Blaster 29.58
Electrician 29.58 Blast Helper 27.64
Mechanic 29.58 Electrician Helper 27.29
Mechanic Helper 27.29
Welder I 29.58
Dragline Oiler 28.73 Utilityman 26.70
Equipment Operator 28.73
Driller 28.73 Hourly Premium
Serviceman 28.73 Leadman with Foreman Papers 2.00
Leadman without Foreman Papers 0.50
Production Truck Driver 28.10 EMT Certification 0.20

Wages increased 2% in the last 12 months, effective December 4, 2011.

Benefits Hourly % paid Vacation:


Life Insurance yes 100 Hourly: 1x salary Union Staff
AD&D yes 100 Hourly: 2x salary Years Days Hours
+$50,000 business travel Service Vacation Vacation
Medical Insurance yes 1 10 88
Company pays $3.45 per hour worked to union health plans, which 3 10 104
covers medical, dental and vision plans. 5 15 120
Dental Insurance yes 10 16 160
Vision Insurance yes 15 20 200
Retirement Benefits yes 100 20 20 200
Company pays $3.15 for every hour worked into Union pension 25/plus 20 200
fund.
401(k):Employee can begin participation the first of the month
following 30 days employment.

Sick Leave yes


Disability Income Ins. yes 100
$600/week after 5 working days off and having used all available
paid leave up to 52 weeks.

10 days paid holidays per year, plus 3 floating holidays.

LA Coal
Copyright © 2011 InfoMine USA, Inc. 13
COLORADO

Mine Code: 550, Colorado. (continued)

Benefits: Salary % paid

Life Insurance yes 100 3x salary


AD&D yes 100 6x salary, and $50,000 business travel accident insurance.
Medical Insurance yes 100 PPO Plan for employees and eligible dependents
Dental Insurance yes 100 $50 deductible, $2,000 max/person/year, $2,000/person/lifetime for orthodontics
Vision Insurance yes 100
Retirement Benefits yes 100
401(k): Employee can begin participation the first of the month following 30 days employment.
Defined Benefit: 12.55% of annual base salary.

Sick Leave yes Employee accrues 8 hours per month. May use when spouse, child or parent is ill.
Disability Income Ins. yes 100
Staff - Long-term disability 66 2/3% benefit beginning 26 weeks from date of disability.

10 days paid holidays per year, plus 3 floating holidays.

Shift differential: Evening - $0.30/hour; night - $0.40/hour. (Intermediate shift - $0.35/hour).

Cost of benefits: (as a % of wages) Mandated Voluntary*


Hourly 13% 11%
Salaried 13% 19%
*Cost of time off (holidays, vacation, sick leave) not included.

Incentive bonus plan: None.

Other benefits: Employee assistance program (EAP), education assistance - 100% reimbursement for tuition,
books, and fees upon successful completion of approved courses, relocation assistance - for select
staff, big game hunting privledges - employees and immediate family members only, flexible
spending account, health club membership. Military leave - up to 15 working days per year, funeral
leave - up to 3 work days, jury duty leave - time off with pay, tool purchase reimbursement - for
journeyman mechanics, mechanic, mechanical repairmen, and machinists, up to $400 per year.

LA Coal
14 Copyright © 2011 InfoMine USA, Inc.
COLORADO

Mine Code: 667, Colorado.


Bituminous coal, Underground, 4,400,000 short tons of coal per year.
Non-union.
350 employees: 67 managerial/administrative and 285 hourly employees.

Hourly Hourly
Job Classification Wage Base Job Classification Wage Base
Underground Surface
Step-Up Foreman $31.85 Step-Up Foreman $28.65
Senior Maintenance 29.75 Senior Maintenance 27.55
Fireboss 29.75 Surface Equipment Operator 25.45
Miner Operator 29.75 Surface Maintenance Man 25.45
Roofbolter 29.75 Laborer 23.35
Shearer Operator 29.75 Warehouseman 20.70
UG Equipment Operator 28.65 Mine Monitors 20.00
UG Maintenanceman 28.65 Bathhouse 17.80
Beltman 24.95
General Laborer 24.95 Hourly premium:
Electrician’s Card $.50
EMT Certification .50
Mine Foreman Certification .50

No change in wages in the last 12 months.

Benefits % paid Vacation:


Life Insurance yes 100 $50,000 - Hourly Years Days
$150,000 - Salaried Service Vacation
AD&D yes 100 $50,000 - Hourly 1 15
$150,000 - Salaried 3 15
Medical Insurance yes 100 5 15
$200 in-network deductable, prescription drug co-pay $5/generic 10 20
$7/name brand. 15 20
Dental Insurance yes 100 20 20
$1,500 per year maximum coverage. $1,000 lifetime orthodontic 25/plus 20
maximum.
Vision Insurance no
Retirement yes
401K: company match $0.50 for every $1.00 up to 10% of wages.
Defined contribution: 2.5% of gross wages at year end.

Sick Leave yes 100 6 days per year


Disability Income Ins. yes

11 days paid holidays per year.

Shift differential: Evening - $0.30/hour; night - $0.40/hour.

Cost of benefits: (as a % of wages) Mandated Voluntary


Hourly 15.92% 33.48%
Salaried 15.92% 33.48%

LA Coal
Copyright © 2011 InfoMine USA, Inc. 15
COLORADO

Mine Code: 667, Colorado. (continued)

Incentive bonus plan: Company pays an incentive bonus based on productivity, safety, coal quality and attendance.

Production
Production goals will be established monthly based on scheduled shifts. Minimum production goals must be met
during the quarter to initiate reward.

Eligibility
Participants include all active regular full-time employees who are on the company’s payroll for the entire plan
period on which the reward is based.

Safety
An employee who sustains a lost time accident (LTA) will not be eligible for a reward during the quarter in which
the LTA occurred. If citations exceed 1.5 per MSHA inspector day in a plan period, there will be no reward for
that plan period.

Attendance
Employees who receive an unexcused absence will be ineligible to receive a reward for the quarter in which the
absence occurred. Employees with one (1) “no pay” day during a quarter will be eligible for 50% of the reward
for that quarter. Two (2) “no pay” days will result in ineligibility for the reward for that quarter. Employees with
attendance problems are subject to corrective action, up to and including termination.

Coal Quality
Coal quality must meet a minimum standard of 11,900 BTU. For each 100 BTU increment above that standard
during the plan period, eligible employees will be rewarded with an additional 10% of the reward percentage.

Profit
The company must be profitable for the quarter for an incentive plan reward.

Other benefits: Military leave - unpaid, bereavement leave - 3 days, jury duty - for the length of the trial, safety
equipment, tool allowance, $5,000 dependent life insurance and optional additional life insurance,
personal leave.

LA Coal
16 Copyright © 2011 InfoMine USA, Inc.
COLORADO

Mine Code: 565, Colorado.


Bituminous coal, Underground, 600,000 short tons of coal per year.
Non-union.
90 employees: 13 managerial/administrative, 63 hourly and 14 contractor employees.

Hourly Hourly
Job Classification Wage Base Job Classification Wage Base
Certified Foreman $32.09 Continuous Miner Operator $24.08
Certified Electrician 32.09 Belt Maintenance 23.08
Mechanic IV 32.09 Outby 23.08
Fireboss 29.11 Utility/Scoop Operator 23.08
Electrician 28.96 Buggy Operator 23.08
Mechanic III 28.96 Roof Bolter Operator 23.59
Mechanic II 26.18 Surface Operator 19.89

Wages increased 3% in the last 12 months, effective May 1, 2011.

Benefits % paid Vacation:


Life Insurance yes 100 $20,000 Years Days
AD&D yes 100 Service Vacation
Medical Insurance yes 100 1 10
Dental Insurance yes 100 3 10
Vision Insurance yes 5 10
Retirement yes 10 15
401K Plan - Company match $0.50 per $1 contributed by employee up to 4% 15 20
of wages. 20 20
25/plus 20
Sick Leave yes Salary - unlimited.
Hourly - 4 days/year.
Disability Income Ins. no

9 days paid holidays per year.

Shift differential: Night - $0.30/hour.

Cost of benefits: (as a % of wages) Mandated


Hourly 38%
Salaried 38%

Incentive bonus plan: Company bonus plan consists of three primary drivers: attendance, safety, and production.

Other benefits: Company provides all safety equipment including coveralls, boots, hard hat, safety glasses,
SCSR and gloves. Prescription safety glass reimbursement - $175/year. Safety boot
reimbursement - $225/year. Relocation assistance, jury duty leave - up to 3 days, bereavement
leave - up to 3 days, military leave, employee assistance program.

LA Coal
Copyright © 2011 InfoMine USA, Inc. 17
ILLINOIS

Mine Code: 675, Illinois.


Steam coal, Surface, 1,500,000 short tons coal per year.
Union: United Mine Workers of America.
Approximately 150 employees.
Hourly Hourly
Job Classification Wage Base Job Classification Wage Base
Surface Mine Prep Plant
Dragline Operator $25.178 Electrician $24.364
Stripper Operator 25.178 Mechanic 24.364
Master Electrician 25.178 Welder 1st Class 24.364
Electrician 24.527 Mobile Equipment Operator 24.120
Mechanic 24.527 Stationary Equipment Operator 24.120
Welder, First Class 24.527 Maintenance Trainee 24.120
Oiler 24.527 Tipple Attendant 23.837
Heavy Equipment Operator 24.162 Mechanic Helper 23.837
Driller/Shooter 24.162 Car Dropper 23.757
Stationary Equipment Operator 24.162 Car Trimmer 23.757
Welder 24.162 Truck Driver (Service) 23.757
Maintenance Trainee ((Max 12 mos.) 24.162 Preparation Plant Utility 23.757
Electrician Trainee (Max 12 mos.) 24.162 Surface Utility 23.757
Electrician Helper 23.877
Laborer 23.877

Wages increased $0.50/hour in the last 12 months, effective January 1, 2011.

Benefits % paid Vacation:


Life Insurance yes 100 $80,000 Years Days
AD&D yes 100 $160,000 Service Vacation
Medical Insurance yes 100 1 12
Dental Insurance yes 80 3 12
Vision Insurance yes 90 5 12
Retirement yes 10 17
Defined benefit: Plan pays $69.50/month for each year of service. 15 22
Sick Leave yes 100 5 days per year 20 26
Disability Income Ins. yes 100 25/plus 26

11 days paid holidays per year.

Shift differential: Evening - $0.40/hour; night - $0.50/hour.

Cost of benefits: 55% of wages.

Incentive bonus plan: None.

Other benefits: Jury duty and up to 3 days bereavement leave. Protective clothing allowance - $750/year. Military
duty leave - up to a maximum of 2 weeks paid per year. Family & medical leave - up to 12 weeks
unpaid leave. Sickness & accident benefits - sickness: 6-52 weeks at $375/week depending on
length of service; accident: 52 weeks of pay regardless of the length of service.

No family will have to pay more than $240 for in plan physician office visits in any year and no
more than $1,600 in combined out of plan hospital and related charges and out of plan physician
charges.

LA Coal
18 Copyright © 2011 InfoMine USA, Inc.
KENTUCKY

Mine Code: 712, Kentucky.


Coal, Surface, Closure Phase.
Non-union.
67 employees: 23 managerial/administrative and 44 hourly employees.

Hourly
Job Classification Wage Base
Mechanic $22.79
Equipment Operator 20.67
Administrative Professional 17.34
Technician 15.17
Parts Runner 14.45

Wages increased 3.2% in the past 12 months, effective January 1, 2011.

Benefits % paid Vacation:


Life Insurance yes 100 2x annual salary Years Days
AD&D yes 100 2x annual salary Service Vacation
Medical Insurance yes 100 1 10
Dental Insurance yes 100 3 10
Vision Insurance yes 100 5 15
Retirement yes 10 20
401(k): Company match up to 3% of wages. 15 20
20 20
Sick Leave yes 25/plus 20
Disability Income Ins. yes 100

9 days paid holidays per year.

Shift differential: Night - $.25/hour.

Cost of benefits: (as a % of wages): 25% of wages.

Incentive bonus plan: $100/month safety bonus if there are no lost time accidents
$400/year medical bonus.
$500/year holiday bonus.
Performance bonus for salaried employees.

LA Coal
Copyright © 2011 InfoMine USA, Inc. 19
KENTUCKY

Mine Code: 642, Kentucky.


Bituminous Coal, Surface, 62,000 short tons coal per year.
Non-union.
5 employees: 1 managerial/administrative and 4 hourly employees.

Hourly
Job Classification Wage Base
Equipment Operator $25.00
Mechanic 20.00
Laborer 15.00

Note: Employees typically get 10+ hours of overtime per week.

No change in wages in the last 12 months.

Benefits % paid Vacation:


Life Insurance yes Years Days
AD&D Insurance yes Service Vacation
Medical Insurance yes 1 5
Dental Insurance no 3 5
Vision Insurance no 5 5
Retirement Benefits no 10 10
15 10
Sick Leave no 20 10
Disability Income Ins. no 25/plus 10

6 paid holidays per year.

Shift differential: None.

Shift schedule: 10 hour shifts.

Cost of benefits: (as a % of wages) Mandated Voluntary


Hourly 25% 10%
Salaried 20% 15%

Incentive bonus plan: None.

LA Coal
20 Copyright © 2011 InfoMine USA, Inc.
LOUISIANA

Mine Code: 679, Louisiana.


Lignite, Surface, 500,000 short tons of coal per year.
Non-union.
40 employees: 10 supervisory and administrative and 30 hourly employees.

Hourly
Job Classification Wage Base
Mining Tech D $24.25
Mining Tech C 22.60
Mining Tech B2 21.90
Mining Tech B1 21.50
Mining Tech B 21.50
Mining Tech A 19.00

Wages increased 2% in the last 12 months, effective March 1, 2011.

Benefits % paid Vacation:


Life Insurance yes 100 2 x salary Years Days
AD&D yes 100 Service Vacation
Medical Insurance yes 100 1 10
Dental Insurance yes 100 3 10
Vision Insurance no 5 15
Retirement yes 10 20
Defined Contribution: 2% of wages 15 25
401K Plan: Company match up to 5% of wages 20 25
25/plus 25
Sick Leave no
Disability Income Ins. yes

12 days paid holidays per year.

Shift differential: None.

Cost of benefits: (as a % of wages) Mandated Voluntary


Hourly 10% 23%
Salaried 10% 21%

Incentive bonus plan: Gainsharing Bonus Plan: This company’s bonus plan uses the ratio of yards moved versus
tons of coal severed. Bonus is calculated on four different cost centers using actual versus
projected costs. The company pays out 70% of the bonus on a quarterly basis, while 30% is
held in reserve until year end. The bonus is then recalculated based on the entire year.

LA Coal
Copyright © 2011 InfoMine USA, Inc. 21
NEW MEXICO

Mine Code: 524, New Mexico.


Bituminous coal, Surface, 3,600,000 short tons coal per year.
Union: United Mine Workers of America.
275 employees: 61 supervisory and administrative and 214 hourly employees.

Hourly Hourly
Job Classification Wage Base Job Classification Wage Base
Lead Person $26.56 Mobile Equipment Operator I $25.19
Coal Loading Shovel Operator 26.26 Electrician Helper 24.68
Overburden Stripping Machine Op. 26.26 Mechanic Helper 24.68
Master Electrician 26.26 Machinist Helper 24.68
Electrician 25.93 Repairman Helper 24.68
Machinist 25.93 Tipple Attendant 24.68
Mechanic 25.93 Maintenance Trainee (Max. 6 mos.) 24.68
Welder, 1st Class 25.93 Car Dropper 24.59
Groundman 25.62 Car Dumper 24.59
Shovel and Dragline Oiler 25.62 Car Trimmer 24.59
Welder 25.62 Sampler 24.59
Mobile Equipment Operator II 25.62 Truck Driver - Service 24.59
Repairman 25.19 Utility Man 24.59
Stationary Equipment Operator 25.19 Laborer - Unskilled 24.59
Driller and Shooter 25.19
Electrician Trainee (Max. 12 mos.) 25.19 Training Rate 13.12
Maintenance Trainee (Max. 12 mos.) 25.19

Wage increased $0.50/hour in the last 12 months, effective August 1, 2011.

Benefits - Hourly % paid Vacation:


Life Insurance yes 100 $60,000 Years Days
Medical Insurance yes 100 Service Vacation
Dental Insurance yes 95 1 10
Vision Insurance yes 100 3 10
Retirement Benefits yes 100 5 15
Defined benefit 10 20
401(k) plan: no company match 15 20
Sick Leave yes 100 20 25
Disability Income Ins. yes 100 25 25
30/plus 30
12 paid holidays per year.

Benefits - Salaried % paid


Life Insurance yes 100 2 x annual
Medical Insurance yes 100
Dental Insurance yes 100
Vision Insurance no
Retirement Benefits yes 100
401(k) Plan: 2% company match
Sick Leave yes 100
Disability Income Ins. yes

11 paid holidays per year.

LA Coal
22 Copyright © 2011 InfoMine USA, Inc.
NEW MEXICO

Mine Code: 524, New Mexico. (continued)

Benefits: (continued)

Shift differential: Evening - $.30/hour, night - $.40/hour

Cost of benefits: (as a % of wages) Mandated Voluntary


Hourly 9.0% 53.00%
Salaried 8.8% 33.85%

Incentive bonus plan: (Union & non-union employees)

This company’s plan is based on achieving business objectives. Following is a list of the parameters:

• Payout opportunity is a maximum of 10% of employee annual earnings.

• The corporate component pays up to 3%.

• 0 - 3% based on relative TSR (Total Stockholder Return).

• The operating company component pays up to 7% based on meeting business plan objectives for:
- Safety
- Operating Expense
- Operational Earnings

The total bonus plan payout opportunity is 6% of employee annual earnings, and the payout is split between
the corporate and operating company components. This balances the reward between corporate and operating
company performance. Each component can pay out up to a maximum of 2% based on results.

Incentive bonus plan: (Non-union staff)

Profit Sharing Program

• Employees contribute 2% gross wages to participate.


• If employee participates, company matches up to 6% based on pre-tax profits.
• Employee has option to contribute from 0-12% before tax and/or 0-10% after tax to a combined
maximum of 14%

Savings Plus Program

• If employee is contributing to the Profit Sharing Program, the company will contribute 2% of base pay
to the Savings Plus Plan on employee's behalf.

Other benefits: Employee assistance program (EAP), yearly clothing allowance, bereavement paid leave,
dependent care, personal leave, military leave, educational leave, and educational refund.
Salaried and non-union hourly employees also receive employee paid life insurance option 1 to
4 times annual base, employer paid dependent life, 25% or 100% of annual base and domestic
partner benefits. Company provides all required tools for hourly employees.

LA Coal
Copyright © 2011 InfoMine USA, Inc. 23
NORTH DAKOTA

Mine Code: 507, North Dakota.


Lignite coal, Surface, 4,400,000 short tons per year.
Union: International Brotherhood of Electrical Workers.
149 employees: 39 managerial/administrative, 109 hourly, and 1 contractor employees.

Hourly Hourly
Job Classification Wage Base Job Classification Wage Base
Dragline Operator $36.66 Dozer Operator $35.16
Master Electrician 36.47 Motor Grader Operator 35.16
Master Mechanic 36.47 Scraper Operator 35.16
Shovel Operator 36.47 Coal Drill Operator 35.16
Front-end Loader Operator 36.47 Blaster 35.16
Excavator 36.47 Exploration Drill Operator 35.16
Electrician 35.80 Coal Hauler Operator 34.53
Mechanic 35.80 End Dump Truck Operator 34.53
Welder 35.80 Water Truck Operator 34.53
Dragline Oiler 35.80 Exploration Drill Helper 34.53
Dragline/Shovel Mechanic 35.80 Skilled Utility 33.73
Dragline Support Person 35.35 Unskilled Utility 22.24

Wages increased 2.5% in the last 12 months, effective April 1, 2011.

Benefits % paid Vacation:


Life Insurance yes 100 $40,000 Years Days
AD&D yes 100 $40,000 Service Vacation
Medical Insurance* yes 100 1 13
Dental Insurance* yes 100 3 14
Vision Insurance* yes 100 5 16
*Note: Employee may be required to contribute up to 8% of cost depending on 10 21
claims experience. 15 26
Retirement Benefits yes 100 Defined contribution, $2400, plus 5% 20 28
match on additional earnings to 401K. 25/plus 28

Sick Leave yes 100 12 days


Disability Income Ins. yes 60% of wages paid - Salaried/Staff
40% of wages paid - Union

10 days paid holidays per year.

Shift differential: Evening - $.30/hour; night - $.45/hour.

Shift schedule: Three 8-hour shifts per day.

Cost of benefits: (as a % of wages) Mandated Voluntary


Hourly 27.9% 25.7%
Salaried 27.9% 25.7%

Incentive bonus plan: None.

Other benefits: Employee assistance program (EAP), military leave, bereavement leave - 5 days, jury duty leave -
as needed, safety equipment allowance - $200/year, interest free computer and wellness equipment
loans, annual physical exam.

LA Coal
24 Copyright © 2011 InfoMine USA, Inc.
OKLAHOMA

Mine Code: 713, Oklahoma.


Bituminous coal, Surface, 97,700 short tons of coal per year.
Non-union.
8 employees: 1 managerial/administrative and 7 hourly employees.

Hourly
Job Classification Wage Base
Night Foreman $16.45
Oiler 15.45
Dozer Operator 14.60
Driller 14.50
Blaster 14.40
Loader Operator 13.55
End Dump Driver 12.35

Wages increased 2.8% in the last 12 months, effective January 1, 2011.

Benefits % paid Vacation


Life Insurance yes 80 $25,000 Years Days
AD&D no Service Vacation
Medical Insurance yes 80 1 5
Dental Insurance no 3 10
Vision Insurance no 5 10
Retirement no 10 10
15 10
Sick Leave no 20 10
Disability Income Ins. no 25/plus 10

6 days paid holidays per year.

Shift differential: None.

Shift schedule: 10 hour shifts.

Cost of benefits: ($ per month) Mandated Voluntary


Hourly $9,335.00 $3,144.00
Salaried $18,788.00 $3,144.00

Incentive bonus plan: None.

LA Coal
Copyright © 2011 InfoMine USA, Inc. 25
PENNSYLVANIA

Mine Code: 697, Pennsylvania.


Bituminous Coal, Underground, 11,100,000 short tons of coal per year.
Non-union.
636 employees: 148 managerial/administrative and 488 hourly employees.

Hourly
Job Classification Wage Base
Maintenance IV $30.50
Production IV 30.50
Maintenance III 26.60
Production III 26.60
Maintenance II 26.20
Production II 26.20
Maintenance I 25.55
Production I 25.55

No change in wages in the last 12 months.

Benefits % paid Vacation:


Life Insurance yes 100 2x salary Years Days
AD&D yes 100 2x salary Service Vacation
Medical Insurance yes 100 1 10
Dental Insurance yes 80 3 10
Vision Insurance yes 80 5 15
Retirement yes 10 20
401(k): Company matches up to 6% of wages. 15 25
20 25
Sick Leave no 25/plus 25
Disability Income Ins. yes 80

11 days paid holidays per year.

Shift differential: Evening - $.35/hour; night - $.45/hour.

Cost of benefits: 40% of wages for hourly employees.

Incentive bonus plan: None.

Other benefits: Employee assistance program (EAP).

LA Coal
26 Copyright © 2011 InfoMine USA, Inc.
TENNESSEE

Mine Code: 720, Tennessee.


Bituminous coal, Surface and underground, 800,000 short tons per year.
Non-union.
150 employees: 24 managerial/administrative and 126 hourly employees.

Hourly Hourly
Job Classification Wage Base Job Classification Wage Base
Mechanic $17.00 Grader Operator $15.00
Miner Operator 16.00 Loader Operator 15.00
Roof Bolter 16.00 Oil Man 15.00
Scoop Operator 16.00 Shuttle Car Operator 15.00
Crusher Operator 15.00 Truck Driver 15.00
Dozer Operator 15.00 Scale Operator 12.00
Drill Operator 15.00 Security Guard 7.50
Excavator 15.00

No change in wages in the last 12 months.

Benefits % paid Vacation:


Life Insurance yes 100 Years Days
AD&D no Service Vacation
Medical Insurance yes 100 1 10
Dental Insurance yes 100 3 10
Vision Insurance no 5 15
Retirement Benefits yes 100 10 15
401(k): Company matches 3.5%. 15 15
20 15
Sick Leave yes 100 5 days 25/plus 15
Disability Income Ins. no

8 days paid holidays per year.

Shift differential: Evening - $.50/hour

Cost of benefits: $10,000 per year per employee.

Incentive bonus plan: Production bonus: based on clean tons from month.

Other benefits: Bereavement leave - 3 days, auto allowance.

LA Coal
Copyright © 2011 InfoMine USA, Inc. 27
TEXAS

Mine Code: 532, Texas.


Lignite, Surface, 3,000,000 short tons coal per year.
Union: I.B.E.W.
247 employees: 67 managerial/administrative and 180 hourly employees.

Hourly Hourly
Job Classification Wage Base Job Classification Wage Base
Fuel Electrician $28.33 Fuel Mechanic Helper $19.96
Fuel Mechanic 28.33 Fuel Electrician Helper 19.29
Bulldozer Operator 26.66 Mobile Equipment Specialist 18.13
Hauler Operator 23.92 Warehouseman 18.02

Wages increased 3% in the last 12 months, effective February 26, 2011.

Benefits % paid
Life Insurance yes 100 1 x annual (employee can elect up to 6 x annual salary)
AD&D yes 100 1 x annual (employee can elect up to 4 x annual salary)
Medical Insurance yes 80
Dental Insurance yes 80
Vision Insurance yes Vision plan offered at full cost to employee
Retirement Benefits
Thrift Plan: Company matches first 6% of employee contribution. Match is either 75% or 100% depending on the plan the
employee is enrolled in.
Pension Plan: Union employees: Company pays an additional $2.27/hour into union defined benefit plan.

Sick Leave yes 100 5 days per year - 12 hour shift


Disability Income Ins. yes 100
Short-term disability - up to six months salary continuation beginning first day of employment. Return to work provision
for those employees who become well during the second non-paid six months.
Long-term disability - eligible after 6 months of disability. Employee can chose from 50%, 60% pre-tax wage levels or
50%, 60% post-tax wage levels.

10 days paid holidays per year. Vacation:


Hourly Salaried
Shift differential: Evening - $.60/hour, night - $.60/hour. Years Days Days
Service Vacation Vacation
Shift schedule: 8 hour and 12 hour shifts. 1 10 10
3 10 10
Cost of benefits: 28% of wages. 5 11 10
10 16 15
15 18 20
20 21 20
25 23 20

Incentive bonus plan: Performance Enhancement Plan: Company pays an incentive based on a percentage of
employee’s pay triggered by safety, productivity, and annual earnings. Incentive is between
0% and 10% of pay.

Other benefits: Personal leave - 10 days, employee assistance program, military leave, sign on bonus for some
professionals, relocation assistance for some professionals, jury duty leave, bereavement leave, safety
equipment allowance - $25.00, employee retention program offered on a case by case basis.

LA Coal
28 Copyright © 2011 InfoMine USA, Inc.
UTAH

Mine Code: 719, Utah.


Coal, Underground, 400,000 short tons coal per year.
Non-union.
112 employees: 23 managerial/administrative and 89 hourly employees.

Hourly
Job Classification Wage Base
Fire Boss $22.00 - 26.00
Belt Mechanic 20.00 - 26.00
Mechanic 20.00 - 26.00
Miner Operator 19.00 - 25.00
Welding/Fabrication 15.00 - 25.00
Roof Bolter 20.00 - 24.00
Belts Operator 15.00 - 20.00
CDL Driver 16.00 - 19.00
Compliance 16.00 - 18.00
Parts Runner 10.00 - 14.00

Wages increased 2% in the last 12 months, effective January 1, 2011.

Benefits % paid Vacation:


Life Insurance no Years Days
AD&D Insurance no Service Vacation
Medical Insurance yes 75 1 10
Employee is responsible for 25% of cost. 3 10
Dental Insurance no 5 10
Vision Insurance no 10 15
Retirement Benefits yes 15 15
401(k): company matches up to 3%. 20 15
25/plus 15
Sick Leave yes
Hourly employees: 6 days.
Disability Income Ins. no

9 paid holidays per year.

Shift differential: None.

Shift schedule: 8, 10, and 12 hour shifts.

Cost of benefits: Mandated Voluntary


(as a % of wages) ($ per employee per year)
Hourly 7.25% $16,650
Salaried 7.25% $4,850

Incentive bonus plan: None.

Other benefits: Personal leave, bereavement leave - 3 days.

LA Coal
Copyright © 2011 InfoMine USA, Inc. 29
WEST VIRGINIA

Mine Code: 669, West Virginia.


Coal, Surface, 2 mines, 4,900,000 short tons coal per year.
Union: United Mine Workers of America.
Mine 1: 140 employees.
Mine 2: 213 employees.
Hourly Hourly
Job Classification Wage Base Job Classification Wage Base
Surface Mine - Strip and Auger Mines Electrician Trainee (Max. 12 mos.) $24.162
Coal Loading Shovel Operator $25.178 Tipple Attendant 23.877
Overburden Stripping Machine Operator 25.178 Electrician Helper 23.877
Master Electrician 25.178 Mechanic Helper 23.877
Electrician 24.527 Machinist Helper 23.877
Machinist 24.527 Repairman Helper 23.877
Mechanic 24.527 Maintenance Trainee (Max. 6 mos.) 23.877
Welder, First Class 24.527 Electrician Trainee (Max. 6 mos.) 23.877
Shovel and Dragline Oiler 24.527 Car Dropper 23.796
Groundman 24.527 Car Dumper 23.796
Mobile Equipment Operator 24.162 Car Trimmer 23.796
Repairman 24.162 Sampler 23.796
Stationary Equipment Operator 24.162 Truck Driver Service 23.796
Welder 24.162 Utility Man 23.796
Driller and Shooter 24.162 Laborer - Unskilled 23.796
Maintenance Trainee (Max. 12 mos.) 24.162

Wages increased $0.50/hour in the last 12 months, effective January 1, 2011.

Benefits % paid Vacation:


Life Insurance yes 100 $80,000 Years Days
AD&D yes 100 $160,000 Service Vacation
Medical Insurance yes 100 1 12
Dental Insurance yes 80 3 12
Vision Insurance yes 90 5 12
10 17
Retirement yes 15 22
Defined benefit: Plan pays $69.50/month for each year of service 20 26
25/plus 26
Sick Leave yes 100 5 days per year
Disability Income Ins. yes 100

11 days paid holidays per year.

Shift differential: Evening - $.40/hour; night - $.50/hour.

Cost of benefits: 57.5% of wages.

Incentive bonus plan: None.

Other benefits: Jury duty and up to 3 days bereavement leave. Protective clothing allowance - $750/year. Military
duty leave - up to a maximum of 2 weeks paid per year. Family & medical leave - up to 12 weeks
unpaid leave. Sickness & accident benefits - sickness: 6-52 weeks at $375/week depending on
length of service; accident: 52 weeks of pay regardless of the length of service.

LA Coal
30 Copyright © 2011 InfoMine USA, Inc.
WEST VIRGINIA

Mine Code: 683, West Virginia.


Coal, Surface, 2,500,000 short tons of coal per year.
Non-union.
184 employees: 30 managerial/administrative and 154 hourly employees.

Hourly
Job Classification Wage Base
Electrician $29.25
Mechanic 25.25-29.25
Crew Lead 26.25
Mobile Equipment Operator 26.25
Floor Walker 25.25
Equipment Operator 25.25
Prep Plant Operator 25.25
Blaster 25.25
Greaser/Fueler 25.25
Welder 25.25
Apprentice Mechanic 19.25

Wages increased 2% in the last 12 months, effective April 2011.

Benefits % paid Vacation:


Life Insurance yes 100 2x salary Years Days
AD&D yes 100 2x salary Service Vacation
Medical Insurance yes 100 1 10
Dental Insurance yes 80 3 10
Vision Insurance yes 80 5 15
10 20
Retirement yes 15 25
401(k): Company matches up to 6% of wages. 20 25
25/plus 25
Sick Leave no
Disability Income Ins. yes 80

11 days paid holidays per year.

Shift differential: Evening - $.35/hour; night - $.45/hour.

Cost of benefits: 40% of wages for hourly employees.

Incentive bonus plan: None.

Other benefits: Employee assistance program (EAP).

LA Coal
Copyright © 2011 InfoMine USA, Inc. 31
WEST VIRGINIA

Mine Code: 703, West Virginia.


Bituminous Coal, Underground, 9,900,000 short tons of coal per year.
Union: United Mine Workers of America.
923 employees: 173 managerial/administrative and 750 hourly employees.

Hourly Hourly
Job Classification Wage Base Job Classification Wage Base
Mine Timberman $23.348
Continuous Mining Machine Operator $24.415 Trackman 23.348
Electrician 24.415 Wireman 23.348
Mechanic 24.415 Labor - Unskilled 22.774
Fireboss 24.415 Prep Plant
Longwall Machine Operator 24.415 Electrician $24.364
Welder, First Class 24.415 Machinist 24.364
Roof Bolter 24.415 Mechanic 24.364
Cutting Machine Operator 24.010 Welder, First Class 24.364
Dispatcher 24.010 Prep Plant Central Control Operator 24.364
Loading Machine Operator 24.010 Mobile Equipment Operator 24.120
Machine Operator Helper 24.010 Repairman 24.120
General Inside Repairman & Welder 24.010 Stationary Equipment Operator 24.120
Rock Driller 24.010 Welder 24.120
Continuous Miner Helper - Trainee 24.010 Railroad Car Loader Operator 24.120
Roof Bolter Helper - Trainee 24.010 Maintenance Trainee (Max. 12 mos.) 24.120
Maintenance Trainee (Max. 12 mos.) 24.010 Electrician Trainee (Max. 12 mos.) 24.120
Electrician Trainee (Max. 12 mos.) 24.010 Tipple Attendant 23.837
Driller - Coal 23.643 Dock Man 23.837
Shooter 23.643 Electrician Helper 23.837
Precision Mason - Construction 23.643 Machinist Helper 23.837
Faceman 23.643 Mechanic Helper 23.837
Dumper 23.643 Repairman Helper 23.837
Shuttle Car Operator 23.643 Maintenance Trainee (Max. 6 mos.) 23.837
Motorman 23.420 Electrician Trainee (Max. 6 mos.) 23.837
Maintenance Trainee (Max. 6 mos.) 23.420 Car Dropper 23.757
Electrician Trainee (Max. 6 mos.) 23.420 Car Dumper 23.757
Electrician Helper 23.420 Car Trimmer 23.757
Mechanic Helper 23.420 Sampler 23.757
Beltman 23.348 Bit Sharpener 23.757
Bonder 23.348 Truck Driver, Service 23.757
Brakeman 23.348 Equipment Operator Service 23.757
Bratticeman 23.348 Preparation Plant, Utility Man 23.757
General Inside Labor 23.348 Surface Utility Man 23.757
Mason 23.348 Laborer - Unskilled 23.757
Pumper 23.348

Wages increased $0.50/hour in the last 12 months, effective January 1, 2011.

LA Coal
32 Copyright © 2011 InfoMine USA, Inc.
WEST VIRGINIA

Mine Code: 703, West Virginia. (continued)

Benefits % paid Vacation:


Life Insurance yes 100 $80,000 Years Days
AD&D yes 100 $160,000 Service Vacation
Medical Insurance yes 100 1 10
Dental Insurance yes 80 3 10
Vision Insurance yes 80 5 15
10 20
Retirement yes 15 25
401(k): Company matches 6% 20 25
25/plus 25
Sick Leave yes 100 5 days per year
Disability Income Ins. yes 100

11 days paid holidays per year.

Shift differential: Evening - $.35/hour; night - $.45/hour.

Cost of benefits: 40% of wages for hourly employees.

Incentive bonus plan: None.

Other benefits: Union employees receive $1,000/year to use toward medical deductibles and expenses not
covered under medical plan. The worker may pocket the difference if only a portion is spent.
Jury and military duty pay, family and medical leave, and up to 3 days bereavement pay. Safety
equipment is supplied by company.

LA Coal
Copyright © 2011 InfoMine USA, Inc. 33
WYOMING

Mine Code: 680, Wyoming.


Coal, Surface, 25,000,000 short tons of coal per year.
Non-union.
340 employees: 55 supervisory and administrative and 285 hourly employees.

Hourly
Job Classification Wage Base
Mine Tech V $31.37
Mine Tech IV 30.07
Mine Tech III 28.68
Mine Tech II 27.16
Mine Tech I 24.74
Mine Tech Entry 22.01

Wages increased 2.5% in the last 12 months, effective July 2011.

Benefits % paid Vacation:


Life Insurance yes 100 2 x base wage Years Days
AD&D yes 100 1 x base wage Service Vacation
Medical Insurance yes 90 1 10
Dental Insurance yes 80 3 10
Vision Insurance yes 80 5 10
10 15
Retirement yes 15 20
401(k): Company match up to 6% of wages 20 20
25/plus 20
Sick Leave yes 160 hours
Disability Income Ins. yes 100

12 days paid holidays per year.

Shift differential: Night - $.40/hour.

Cost of benefits: (as a % of wages) Mandated Voluntary


Hourly 10% 30%
Salaried 10% 30%

Incentive bonus plan: Company pays two bonuses - a production gainsharing incentive bonus and a safety bonus.

Other benefits: Employee assistance program (EAP), military leave, company provided safety equipment, tool
allowance.

LA Coal
34 Copyright © 2011 InfoMine USA, Inc.
WYOMING

Mine Code: 607, Wyoming.


Steam coal, Surface, 5,200,000 short tons coal per year.
Union: United Mine Workers of America.
Approximately 280 employees.

Hourly Hourly
Job Classification Wage Base Job Classification Wage Base
Backhoe Loader $26.59 Retarder Man $25.52
Dragline Operator 26.59 Retarder Operator 25.52
Front End Loader 26.59 Rock Crusher Operator 25.52
Master Electrician 26.59 Semi-Truck Driver 25.52
Mobile Crane Operator 26.59 Stationary Equipment Operator 25.52
Overburden Stripping Machine Op. 26.59 Tampman 25.52
Shovel Operator 26.59 Tipple Fireman 25.52
Stripping Shovel Operator 26.59 Tipple Operator 25.52
Wheel Operator 26.59 Tipple Washer Operator 25.52
Electrician 26.26 Tractor Operator 25.52
Machinist 26.26 Truck Driver 25.52
Mechanic 26.26 Unit Train Loader Operator 25.52
Prep Plant Mechanic 26.26 Water Truck Driver 25.52
Shop Mechanic 26.26 Beltman 25.01
Tireman 26.26 Electrician Helper 25.01
Welder, 1st Class 26.26 Electrician Trainee I 25.01
Dozer Operator 25.95 Machine Shop Helper 25.01
Front End Loader Operator 25.95 Machinist 2nd Class 25.01
Grader Operator 25.95 Machinist Helper 25.01
Groundman on Wheel 25.95 Maintenance Trainee I 25.01
Mobile Equipment Operator II 25.95 Mechanic Helper 25.01
Scraper Operator 25.95 Serviceman 25.01
Shovel and Dragline Oiler 25.95 Switchman 25.01
Utility Backhoe 25.95 Tipple Attendant 25.01
Welder 25.95 Truck Oiler 25.01
Auger Operator 25.52 Welder Helper 25.01
Boom Operator 25.52 Auger Helper 24.92
Driller 25.52 Bath House Attendant 24.92
Driller & Shooter 25.52 Car Dropper 24.92
Drill Operator 25.52 Car Trimmer 24.92
Dryer Operator 25.52 Car Dumper 24.92
Electrician Trainee II 25.52 Driller Helper 24.92
Haulage Trailer Operator 25.52 Flagger 24.92
Haulage High lift Operator 25.52 Janitor 24.92
Heavy Equipment Operator 25.52 Laborer 24.92
Hydraulic Equipment Operator 25.52 Maintenance Man 24.92
Locomotive Fireman 25.52 Nitrate Bagger 24.92
Locomotive Operator 25.52 Pit Hand Shoveler 24.92
Low Boy Operator 25.52 Pit Man 24.92
Maintenance Trainee II 25.52 Pump Man 24.92
Mobile Crane Operator 25.52 Sampler 24.92
Mobile Equipment Operator I 25.52 Shooter Helper 24.92
Payloader Operator, Reclamation 25.52 Shop Laborer 24.92
Plant Operator 25.52 Slate Picker 24.92
Repairman 25.52 Steambay Attendant 24.92

LA Coal
Copyright © 2011 InfoMine USA, Inc. 35
WYOMING

Mine Code: 607, Wyoming. (continued)

Hourly
Job Classification Wage Base
Tipple Man $24.92
Track Laborer 24.92
Track repairman 24.92
Trip Rider 24.92
Truck Driver, Service 24.92
Utility Man 24.92
Water Carrier 24.92
Water Treater 24.92
Yardman 24.92

Training Rate 13.17

Wage increased 2% in the last 12 months, effective August 1, 2011.

Benefits - Hourly % paid Vacation:


Life Insurance yes 100 $60,000 Salaried Hourly
Medical Insurance yes 100 Years Days Days
Dental Insurance yes 100 Service Vacation Vacation*
Vision Insurance yes 100 1 10 14
Retirement Benefits yes 100 3 10 14
Defined benefit: $49.50 per month per year of service 5 15 14
Sick Leave yes 100 9 days per year 10 15 19
Disability Income Ins. yes 100 15 15 24
20 20 27
Benefits - Salaried % paid 25 25 27
Life Insurance yes 100 2 x annual 30/plus 30 27
Medical Insurance yes 50
Dental Insurance yes 75 * (includes 0-13 graduated vacation days)
Vision Insurance no
Retirement Benefits yes 100
Defined Contribution: Company contributes 8% of annual earnings
when employee contributes at least 2% to the
plan account
Sick Leave yes 100 Based on years of service
Disability Income Ins. yes

11 paid holidays per year. - staff; 12 paid holidays per year. - union.

Shift differential: Evening - $.30/hour, night - $.40/hour

Cost of benefits: (as a % of wages) Mandated Voluntary


Hourly 9.0% 53.00%
Salaried 8.8% 33.85%

Incentive bonus plan: Based on meeting objectives, including safety performance, productivity, and operating
expenses.

LA Coal
36 Copyright © 2011 InfoMine USA, Inc.

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