ILMA Compoundings April 2018 - 46

"Policy changes are immediately impacting
business, but there is still apprehension
from the mining companies to fully invest in
operations so quickly."
shown the administration's commitment to decreasing regulations.
Young indicates that Whitmore is
already seeing a difference from the
changes. That said, it will take time
for long-term effects to be felt. "Policy
changes are immediately impacting
business, but there is still apprehension from the mining companies to
fully invest in operations so quickly,"
he said. "The impacts on business will
be a slow and steady increase over the
coming years."
Despite the uncertainty, Ellis said
Whitmore believes "less regulations
will trigger more innovative research
and implementation of clean coal
technology; these initiatives will lead
to a higher demand for production
and jobs."
Finding a direct link to policy
change and increased business is not
always straightforward. McGinnis says

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APRIL 2018

| COMPOUNDINGS | ILMA.ORG

there needs to be a healthy balance in
regulations. "The amount before, I'm
not sure they were really the problem.
It comes down to what is economically viable at a site," he said.
Marc Oosterlinck, product manager
of Specialty Petroleum Products at
Daubert, reminds that "regulations
aren't much of a factor for the
lubricants used during mining. For
example, 'cutbacks' are lubricants
used in mining with a heavy dose of
solvents, where the solvent evaporates
off to leave a sticky substance on
open gears. Surprisingly, these are not
heavily regulated."
Still, McGinnis says, greater access
to sites that have been traditionally
left untouched can provide more
options for low-cost areas. However,
not all sites will garner equal interest.
Choices between drilling in the Arctic
or drilling offshore near the Florida

coast have largely different operations
costs. Drilling will be cheaper near
Florida. "There will be a disproportionate interest in areas where the cost
to extract is cheaper," McGinnis said.
Increased access to some areas might
not mean drilling is economical in
the near future, so those areas won't
deliver a proportional lift in activity.
Finally, McGinnis suggested that the
biggest area where the administration
can assist mining is in encouraging
more infrastructure projects. "There
are a lot of capital projects that are
being planned thanks to confidence
in easements in regulations, as well as
campaign promises that were made
regarding more aggressive pursuit of
unfair trade practices," he said, adding
that steel is an industry to watch: "A
lot of lubricants are consumed at steel
mills, and local production of steel
creates mining jobs for local iron ore
and coal, as well as other minerals."

Looking Ahead
McGinnis sees opportunities for
ILMA members that are facing
challenges. "New lubricant demands
are driven by challenging the boundaries of engineering designs more than
large, regulation-related disruptions in
the industry," he said.
Whitmore also sees current change
as a positive. "Overall, there are very
positive changes occurring in the
marketplace for lubricant manufacturers," said Ellis. "Customers are much
more educated, and the demand for
improved technology is high."
There is a mood of cautious
optimism among those in a mining
industry used to domestic and global
fluctuations in regulations, markets
and commodities. In a way, it is business as usual, but there will always be
more opportunities with each political
change and market fluctuation.
Markel is a technical and freelance writer. He can
be reached at josh.markel@jpatrickwriting.com.
http://www.ILMA.ORG
ILMA Compoundings April 2018

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