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INTRIM REPORT ON NUM VISIT TO THE UKRAINE - 12 JUNE 2009
INTERIM SUMMARY OF NATIONAL UNION OF MINEWORKERS MEETING WITH UKRAINIAN MINERS UNION AND DTEK
IN PAVLOGRAD

DETAILED REPORT IN PREPARATION

A delegation on behalf of The National Union of Mineworkers of Great Britain visited Ukraine on the 12th -15th May 2009 to meet with representatives of the Ukrainian Miners Union in Pavlograd, near Dnipropetrovs’k.

Pavlogradugol (Pavlograd Coal) is a subsidiary of DTEK one of Ukraine’s major companies which is now an increasingly important player in the international energy market. The area consists of 10 mines which are privatised mines formerly owned by the Ukrainian state. They were privatised as part of a pilot project by President Kuchma in the 1990’s.

The purpose of the delegation was to develop contact with Ukrainian miners and to discuss common issues of safety, occupational disease, mining conditions and international developments in the energy market affecting coal and the development of clean coal technology.
In addition of importance to the delegation was the improvement of international relations between the miners or our two countries.

During the delegation the NUM delegates visited the Zapadno Donbas Mine near Pavlograd to see working conditions themselves.
The delegation travelled some 600 metres underground and on to the coal face.
The mine was fully mechanised and the delegation were impressed with new programmes towards improving to safety. Everyone was medically assessed before going underground. The delegation met with miners at work and coming off shift. All the miners at work had clearly defined jobs and appeared well trained.
Investment is clearly of importance to the Ukrainian mining industry; and production levels and safety at Pavlogradugol are undoubtedly improving. It was clear that the investment that DTEK had been able to put in place not only ensured high productivity levels, but also high levels of safety; and social support for the miners and their families.

The delegation visited a sanatorium for miners which serve as a preventative as well as a rehabilitative centre for miners. The centre is funded by DTEK as well as the miners Union and is an important facility. The dedication of the staff there was impressive.

It was also a great pleasure to visit the holiday camp for miners’ children.

Wayne Thomas , Area Secretary of the South Wales NUM and National Executive Committee member of the NUM said:

“Conditions at the coal mine were similar to those at my own mine, Tower Colliery. It was interesting to see that with state and company support, high standards of safety are strived for and that the union in co-operation with the mine owners had put safety at the highest level. Whereas there can always be improvement in safety it was interesting to see that there was a common purpose between the miners and the company to continually monitor safety and to seek to maintain improvements year after year.”

Chris Kitchen, National Secretary of the National Union of Mineworkers said

“International solidarity and contact between miners is increasingly important in our global economy. Our intention is to maintain and develop these contacts. As the world comes to grips with our energy crisis, coal in conjunction with clean coal technology will become increasingly important. Links such as those formed between the Ukrainian miners and British miners will lead to a greater understanding between us and greater co operation in providing the energy our countries need alongside improved safety and conditions for miners and their families.”

Chris Kitchen
General Secretary
National Union of Mineworkers
PLANS FOR NEW ALASKA GAS PIPELINE TO CROSS CANADA - 11 JUNE 2009
Exxon Mobil Corp. and TransCanada said today they will join forces to build a massive pipeline to move natural gas from the North Slope of Alaska to U.S. markets.

The state of Alaska granted TransCanada a license to build the project in January 2008, but the Calgary-based firm faced a challenge from another project planned by ConocoPhillips and BP. Exxon’s siding with TransCanada could threaten the Conoco-BP project, called Denali.

“Exxon Mobil and TransCanada have the experience, expertise and financial capability to undertake this project,” said Rich Kruger, president of Exxon Mobil Production Co. “We have on-the-ground knowledge of Alaska and Canada, experience working in the Arctic, a strong history of technology and innovation, and the proven ability to build and operate projects of enormous scale in the most challenging environments.”

Irving-based Exxon will not be a passive customer of the pipeline, which could cost as much as billion and run 1,700 miles, but will likely be involved in the design and construction.

Alaska Gov. Sarah Palin met with Exxon officials in Dallas on Wednesday to make sure the agreement preserved the states’ relationship with TransCanada, said Kurtis Gibson, director of the Alaska Department of Natural Resources Oil and Gas Division.

“We’re encouraged and we’re excited, but we’re not surprise because (the state pipeline license) was designed for just this kind of alignment between private sector companies,” Gibson said.

The agreement between the two companies does not affect the license agreement between the state and TransCanada, said Gibson, and does not change the state’s relationship with Exxon on any other projects.

The state license to TransCanada also provides much of the fiscal stability Exxon is expected to ask for in the project, Gibson said, including a freeze on tax rates for the first 10 years of the pipeline’s operation, and “a willingness to revisit some of the state’s prerogatives on royalty treatment in order to not create obstructions.”

The Chronicle reported Wednesday that Exxon and TransCanada were in talks about the pipeline project.

Steve Rinehart, a spokesman for BP, said the company hasn’t seen details of the Exxon/TransCanada deal, but that the company’s goal “has been and is to get North Slope gas to market,”

“We need to and will consider any viable project to delivery the gas to market, but the project we’re a part of is Denali, we believe in it and it’s moving forward.”

If all goes as planned Exxon and TransCanada expect to conduct an open-season – where customers make bids to indicate their interest in having gas shipped on the line – by July 2010. They would apply for Federal Energy Regulatory Commission licenses in 2011 and 2012, begin construction in 2016 and start operations in September 2018.

The long-sought natural gas pipeline would be a companion to the Trans-Alaska Pipeline System that has been moving oil to U.S. markets since 1977.

The license followed a public bidding process initiated by Palin, who canceled a pipeline deal that her predecessor, Frank Murkowski, had negotiated in closed-door sessions with the three major North Slope producers. That deal was an issue in the Republican gubernatorial primary where Palin defeated Murkowski.

The three producers, Exxon, BP and Conoco, did not take part in Palin’s state bidding process, saying it did not provide the kind of tax and tariff assurances they needed. ConocoPhillips announced its competing project shortly after, and BP joined in that project in April 2008, which is now called Denali.

Many were skeptical of the state-backed project from the beginning, saying it cannot proceed without cooperation from the producers. Dwindling state coffers in Alaska, which relies heavily on royalties payments and taxes from oil and gas production, also undermined support. Some state lawmakers even pushed a resolution asking Palin to revisit the 0 million in incentives given TransCanada.

But a TransCanada-Exxon partnership would bolster the state-backed project, since Exxon holds many of the largest natural gas fields on the North Slope.

The Denali and TransCanada projects have been moving forward with planning work.

When ConocoPhillips and BP unveiled their Denali venture in April last year, they invited Exxon to join them. Exxon declined, and said publicly that it wasn’t aware of that proposal until a few days before it was announced. Exxon said at the time that it would evaluate the Denali plan as well as that of TransCanada, which was the only one of five in the Alaska bidding process that was chosen for further review by Palin’s administration.

TUBE STRIKE BEGINS AFTER TALKS FAIL - 09 JUNE 2009
A strike by thousands of London Underground workers has begun after last-gasp peace talks broke down.

Members of the Rail Maritime and Transport union walked out at the start of a 48-hour stoppage, which will cause travel chaos across the south east.

The RMT union expects the entire network to come to a halt, it will cause huge problems for millions of commuters and visitors and cost businesses tens of millions of pounds.But this is down to London Underground management dragging its feet over finding a way forward. Downing street have told both sides to find common ground and resolve the dispute.

Leaders of the RMT union met London Underground (LU) managers at the offices of the conciliation service ACAS all day but failed to find a breakthrough in time to stop the strike going ahead.
POST OFFICE UNION THREATENS SPLIT FROM LABOUR - 08 JUNE 2009
Gordon Brown will face anger from postal workers when one of the biggest affiliates to Labour will decide whether to split from the party in protest at controversial plans to part-privatise the Royal Mail.

The annual conference of the Communication Workers Union (CWU) will debate its links with Labour and its MPs in the wake of moves for a partial sell-off of the postal group.

The union gives around £1 million to Labour every year in affiliation fees and constituency development funds, but the financial support is now in doubt.

A series of motions will be debated at the Bournemouth meeting, including one to disaffiliate and end all funding to the Labour party "at the earliest opportunity".

Another motion calls for financial support to be withdrawn from any Labour MP who backs the Government's plans.

The union's Coventry branch is calling for the CWU to open talks with other unions to create a "new political framework" to provide "genuine representation" for workers. The branch's motion adds: "Union money spent on affiliation to the Labour party cannot any longer be justified."

The Prime Minister and Business Secretary Lord Mandelson, who is pushing hard for the sell-off, are set to be fiercely criticised by some of the 1,000 delegates.

A vote on disaffiliation is thought to be close and if approved it will deliver another crushing blow to the Prime Minister.

The plans have also been criticised by over 140 Labour MPs, who are planning a huge revolt against the Postal Services Bill when it is discussed in the Commons, probably later this month.

It is believed that many Labour MPs will raise the future of the Royal Mail during the crucial meeting of the Parliamentary Labour Party, which could also decide to call for a leadership election. Union officials and some Labour MPs have said they felt "betrayed" by the Prime Minister over the plans to sell off around a third of the Royal Mail to a private company.
OIL FUTURES HIT NEW HIGH OF .32 AND PREDICTED TO GO HIGH - 06 JUNE 2009
Oil prices closed lower Friday, after briefly rising to a 6-month high above a barrel, as investors took the government's latest employment report as an indication of the improving health of the U.S. economy.

Prices surged to .32 a barrel immediately following the report, but turned lower as the day progressed. Crude ended the session down 37 cents at .44 a barrel.

The oil market pays particular attention to the health of U.S. economy, the world's largest consumer of energy.

Job losses slowed dramatically in May, according to the latest government reading on the labor market. May's job losses were the fewest since last September.

The stronger U.S. dollar, thanks to the jobs report, also contributed to oil's retreat. The euro lost 1.4% against the dollar, the pound was down 1% against the dollar and the greenback surged 1.8% against the Japanese yen.

A stronger greenback weighs down the price of oil because the dollar is used as the currency for oil all over the globe, and so when the dollar strengthens, oil becomes more expensive in other currencies.

Also supporting oil prices, Goldman Sachs (GS, Fortune 500) released a research report Thursday raising its 3-month price target for crude oil to a barrel from a barrel. By the end of 2009, the report predicts oil will reach a barrel, up from a barrel. And by the end of 2010, Goldman forecasts that crude will hit a barrel.

"When Goldman Sachs starts to talk bullish the market seems to move like it just got an offer that it just can't refuse," said Phil Flynn, senior market analyst at Alaron Trading, in his daily research note.

CNN MONEY

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