1. Vince Matthews Director Colorado Geological Survey The Global Scramble for Minerals and Energy Its Impact on America

3. Mike King, Executive Director

4. YOUR Geological Survey !!! Geology of Water Resources Promote Mineral and Energy Resources Colorado Avalanche Information Center Geologic Hazards Educate Assist State and Federal Agencies

5. Everything you need to know about Mineral and Energy in Colorado

6. Production of Natural Resources is an Important Part of Colorados Economy $11.6 billion

7. Revenue comparison of Colorados Important Economic Sectors (2005) Minerals & Energy Agriculture $ Billion Tourism 48% 96%

8. Distribution of Colorado Mineral & Energy Value 2010 ($ Billions) CO2 0. 3 Natural Gas7.0 Oil 1.8 Minerals 1.5 Coal 1.1

9. Production of Natural Resources has Always been an Important Part of Colorados Economy

10. Just off 51 st Street Boulder 1902

11. Overall Impacts Americans will suffer from natural-resource-driven inflation Americans may see increasing shortages of critical raw materials Conflicts may arise with multi-national corporations operating in America Pressures will mount to develop more of America s natural resources How do we turn lemons into lemonade?

12. Population Comparison China U.S. India

13. Land Area Comparison ChinaU.S. India

14. GDP Comparison - 2007 China U.S. India Source: World Bank

15. GDP Growth Comparison 2004-06 China U.S. India Source: World Bank

17. World Electrical Growth 1990-2009 World 8.3 terawatts increase (+70%) China/India/U.S. 4.7 terawatts (56%)

18. World Electrical Growth India 0.59 U.S. 0.97 China 3.1

19. World Electrical Growth Africa Asia- Pacific Europe- Eurasia Middle East South & Central America North America

20. Industrial minerals: Cement 45 1 Fluorspar 51 1 Rare earths 96 1 Metals: Aluminum 24 1 Antimony 86 1 Copper 16 2 Gold 9 4 Lead 32 1 Magnesium 75 1 Molybdenum 22 3 Silver 12 3 Steel, crude 31 1 Tin 35 1 Tungsten 87 1 Zinc 26 1 Industrial minerals: Cement 45 1 Fluorspar 51 1 Rare earths 96 1 Metals: Aluminum 24 1 Antimony 86 1 Copper 16 2 Gold 9 4 Lead 32 1 Magnesium 75 1 Molybdenum 22 3 Silver 12 3 Steel, crude 31 1 Tin 35 1 Tungsten 87 1 Zinc 26 1 Chinas Share of World Mineral Production in 2005 % Rank Source: USGS, Menzie and Tse

21. Chinas Production and Consumption of Copper Source: USGS, Menzie, et al

22. Global Impact 457%

23. Global Impact

24. Metal prices fall further than during Great Depression The price of key industrial metals has fallen further over the last four months than occurred during the worst years of Great Depression between 1929 and 1933, according to research by Barclays Capital. By Ambrose Evans-Pritchard Last Updated: 7:29AM GMT 03 Dec 2008 Metal prices fall further than during Great Depression The price of key industrial metals has fallen further over the last four months than occurred during the worst years of Great Depression between 1929 and 1933, according to research by Barclays Capital. By Ambrose Evans-Pritchard Last Updated: 7:29AM GMT 03 Dec 2008

25. Global Impact 231%

26. Colorado Impact Difficulty in manufacturing of copper products Increased copper thefts Increased costs to the consumer Copper mine reopening Pueblo man electrocuted while trying to steal wiring 10/27/09 50% of all copper mined in the world was in just the last 25 years

27. Industrial minerals: Cement 45 1 Fluorspar 51 1 Rare earths 96 1 Metals: Aluminum 24 1 Antimony 86 1 Copper 16 2 Gold 9 4 Lead 32 1 Magnesium 75 1 Molybdenum 22 3 Silver 12 3 Steel, crude 31 1 Tin 35 1 Tungsten 87 1 Zinc 26 1 Industrial minerals: Cement 45 1 Fluorspar 51 1 Rare earths 96 1 Metals: Aluminum 24 1 Antimony 86 1 Copper 16 2 Gold 9 4 Lead 32 1 Magnesium 75 1 Molybdenum 22 3 Silver 12 3 Steel, crude 31 1 Tin 35 1 Tungsten 87 1 Zinc 26 1 Chinas Share of World Mineral Production in 2005 Source: USGS, Menzie and Tse % Rank

28. Leading Importers of Iron Ore 1980–2003 Sources: U.S. Geological Survey Minerals Yearbook; United Nations Conference on Trade and Development.

29. Consumption of Finished Steel Source: USGS China increased 8 times over India increased 4 times over

30. Price of Scrap Iron 559%

31. China 2005 – Opened 70,000 new supermarkets 2006 – Became #3 car manufacturer 2008 – Became #2 car market 2009 – Became #1 car manufacturer 2009 – Became #1 exporter 2009 – Became #1 car market 2009 – Became #2 economy

32. Ball mill gets real Leadville welcome Image courtesy of Leadville Herald Democrat

33. U.S. molybdenum exports

34. MOLYBDENUM Price 997%

35. Ball mill gets real Leadville welcome Image courtesy of Leadville Herald Democrat

36. MOLYBDENUM Price 997%

37. MOLYBDENUM Price

39. ~ 100 Known Occurrences of Molybdenum

40. Precious & Base Metal Increases 01/03 - 04/13 Silver 438% Platinum 255% Gold 297% Palladium 284% Zinc 497% Lead 800% Aluminum 144% Nickel 630% Tin 229% Average Price Increase 379%

41. Selenium GermaniumIridiumManganese Titanium CadmiumChromiumCobalt TungstenVanadium 671% 908% 719% 581% 531% 245% 1620% 8 Tellurium 1123% 600% 2060% 193% 486% Magnesium 362% 580% Rhenium 685% AntimonyBismuth Average Price Increase 746%

42. Percentage Price Increase in the last two years (1/09 – 1/11)

43. Increase in Coal Spot Price 2005 2004

44. 2005 Coal Price Spot versus Contract Spot Contract 2007 $29.75

45. Chinese companies and their rivals are scouring the globe from Australia to Africa for access to the raw materials needed to sustain the Asian nations growth as commodity prices surge. --June 23, 2006 (Bloomberg)

46. Renewable Energy WIND - Neodymium - Molybdenum - Iron Ore SOLAR - Cadmium - Tellurium - Indium - Germanium - Gallium - Selenium - Silicon - Copper

47. CommodityPrimary SourcesApplications in Alternative Energy AntimonyChinaThermoelectric/paraelectric materials BariumChinaThermoelectric/paraelectric materials BismuthChina, MexicoThermoelectric/paraelectric materials CobaltKinshasa,AustraliaPhotovoltaics (solar cells) GalliumChinaPhotovoltaics, paraelectric materials GermaniumBelgium,CanadaPhotovoltaics (solar cells) IndiumChina, CanadaSolar cells, thermo/paraelectric ManganeseGabon, S. AfricaPhotovoltaics NickelCanadaFuel cells Platinum groupSouth AfricaFuel cells, para/thermoelectric mtrls Rare EarthsChinaFuel cells, para/thermoelectric mtrls ScandiumChina, RussiaThermoelectric/paraelectric materials SeleniumCanadaSolar cells, thermoelectric materials StrontiumMexicoThermoelectric/paraelectric materials TantalumBrazilThermoelectric/paraelectric materials TelluriumBelgium, GermanySolar cells, thermoelectric, TinPeruThermoelectric materials TitaniumAustralia, S. AfricaSolar cells VanadiumCzech Rep., S. AfricaFuel cells ZincCanada, MexicoPhotovoltaics, fuel cells, thermoelectric Strategic and Critical Materials with uses in Alternative Energy applications for which the U.S. is dependent on imports for 50% or more of consumption

48. Percent imported

49. REE = Rare Earth Elements = 15 + 2 neodymium, lanthanum, terbium, dysprosium, cerium, europium, yttrium, praesodymium cerium lanthanum neodymium samarium gadolinium

50. Toyota Prius Rare Earths The biggest user of rare earths of any object in the world!

51. China Grabs the Market China Controls 97.3% of the Market

53. HONG KONG China is set to tighten its hammerlock on the market for some of the worlds most obscure but valuable minerals. --August 31, 2009 ( The New York Times )

54. World faces hi-tech crunch as China eyes ban on rare metal exports –August 24, 2009 (London Telegraph) China Considers Rare-Earth Reserve in Inner Mongolia –September 2, 2009 (Bloomberg News) As hybrid cars gobble rare metals, shortage looms –August 31, 2009 (Reuters)

57. 22% Imported Cement producers 1.China 2.India 3.U.S. China Consumes ½ of all the concrete in the world 20032004 U.S. cement manufacturing is 81% foreign owned

58. Haniotis, 2008, Conference on The Food Crisis of 2008: Lessons for the Future, Imperial College London Fertilizers Energy Metals/Minerals Agriculture Increase in Price of Commodities

59. Fertilizers - Dollars per ton $165 per ton $853 per ton Source: USDA

60. Sources: USGS Data Series 140– Graphing: mazamascience.com

63. U.S. Energy Split Oil Natural Gas Coal Uranium Renewables

64. CommodityPercent of U.S. Percentage Price Percent Imported energy supply Increase 2003-07 (2007 Net) Coal243810 Oil3730667 Uranium 948189 Natural Gas2420616 Hydroelectric 2.5-- Biomass 3.6-- Solar.1-- Wind.5-- Geothermal.3-- 93% 7% Source: EIA, Annual Report 2009 U.S. Energy Split

65. Hydro Generation – U.S.

66. World Coal Consumption

67. COAL Consumption- China

68. Chinas Production and Consumption of Coal

70. Coal Spot Price 5/07 – 7/10 China begins net import of coal 12/06 $38 per ton $140 per ton + 63%

72. COAL Consumption- India 14% imported!

73. COAL Consumption- U.S. 0% imported!

74. China/U.S. Coal 62% of world consumption. 58% of world production.

75. 19 % Russia 29 % United States 62% 0f World Coal Reserves 14 % China

76. COAL Production - Colorado

77. World Nuclear Consumption

78. NUCLEAR- China

79. NUCLEAR- India

80. China : 32 new plants by 2020 4 per year through 2015 9 GW to 60 GW India: 17 new reactors by 2012

81. NUCLEAR- U.S. The last nuclear power plant came on line in 1996 Since then has U.S. nuclear generation -- Increased? Decreased? Remained flat?

82. NUCLEAR- U.S. Last nuclear power plant came online.

83. And, the largest nuclear power generator in the world?

84. The United States generates as much nuclear energy as France, Germany, Spain, Sweden, United Kingdom combined!

85. World Nuclear Power Consumption 436 Plants Operating 55 Under Construction 50 - 60 Countries Applied to IAEA

86. The worlds existing 436 nuclear reactors currently need 180 million pounds of uranium each year. 80 million pound gap Consumption Production

87. Source: Cameco

89. World Oil Consumption

90. OIL CONSUMPTION- China Source: BP

91. OIL- CONSUMPTION India Source: BP

92. OIL- U.S. Consumption

93. Oil Production - Colorado

94. OIL- U.S. Production 1900 - 2009 Source: EIA 44% Less

96. 5% 1948 1% 1924 10% 1959 20% 1969 30% 1975 40% 1980 50% 1986 60% 1990 70% 1995 80% 2000 90% 2004 50% of the OIL Consumed by the Human Race Used Since 1986 90% of the OIL Consumed by the Human Race Used Since 1959 Start 1859 (data from Arnulf Grubler, 1998; BP Statistical Review of World Energy, 2008) Copyright J. D. Hughes GSR Inc, 2008 1094 Billion barrels Consumed

97. 85% of the worlds oil comes from just 20 of the 65 producing countries 54 of the 65 producing countries are in decline

98. Mexicos declining production at Cantarell field accelerating Mexican state oil company Pemex said Wednesday that production at its Cantarell oil field, the worlds second-largest, will drop faster than expected. 08/03/06 2005 producing 2.2 million barrels per day 2009 producing 0.6 million barrels per day

99. In only five years At 5% decline rate The world will need 19 million barrels! 2007-- IEA says existing fields have 3.7% decline 2008-- IEA says existing fields have 6.7% decline Declines never sleep!

100. 1 of 65 producing countries USA Peak 1970 Source: BP Annual Energy Report

101. USA Mexico Norway UK Indonesia Peak 1997 5 of 65 producing countries Source: BP Annual Energy Report

102. 45 small producers USA Peak ~2000 50 of 65 producing countries Source: BP Annual Energy Report

103. 45 small producers USA 61 of 65 producing countries Brazil Algeria Canada China Kuwait UAE Nigeria Libya Iraq Venezuela Iran Peak 2004 Source: BP Annual Energy Report

104. 45 small producers USA Qatar Angola 63 of 65 producing countries Flat 2004 Source: BP Annual Energy Report

105. 45 small producers USA Saudi Arabia 64 of 65 producing countries Flat? Source: BP Annual Energy Report

106. FSU Former Soviet Union nations 45 small producers USA Saudi Arabia FSU 65 of 65 producing countries Slight Increase Source: BP Annual Energy Report

108. Exporting 1.0 million barrels of oil per day Importing 0.2 million barrels of oil per day

109. Crude Oil Prices

110. Oil shale is being seriously re-appraised.

112. World Natural Gas Consumption

113. NATURAL GAS CONSUMPTION - China 4% imported!

114. NATURAL GAS CONSUMPTION - India 24% imported!

115. NATURAL GAS CONSUMPTION - U.S. 8% imported!

116. NATURAL GAS Production - Colorado

117. Natural Gas Clean Burning! Cheap! Unlimited Supply! Americas Silver Bullet? Low Carbon Footprint!

120. Natural Gas Electrical Generation vs Natural Gas Imports Electricity from Natural Gas Natural Gas Imports

121. Million Cubic Feet of Gas U.S. Monthly Natural Gas Production Well Completions 8,90030,180 Average Initial Production Rockies Trends

122. Natural Gas – Americas Silver Bullet? Americas Silver Bullet?

123. (data copyright IHS Energy, Diagram prepared and copyright by EOG Resources Inc., 2006) 60% From Most Recent FOUR YEARS

124. Natural Gas – Americas Silver Bullet?

125. Oil Geothermal Solar Wind Coal Natural Gas Efficiency Conservation Hydro Nuclear Biomass

126. Geothermal Energy Direct Use Electric Generation Geoexchange Heat Pumps

127. Below the 690 apartmentsnot to mention the gyms, bars, dry cleaners and movie theaterthat make up the 15-acre Linked Hybrid residential complex in Beijing, China, are 660 geothermal wells that eliminate the need for air conditioners and boilers. Each well funnels water 325 feet beneath the ground into bedrock, where the constant 55ºF temperature either heats or cools it before its pumped back to the surface and piped through the buildings concrete floors. The system will reduce energy costs by up to 30 percent in the summer and up to 40 percent in the winter.

128. The Escalator Dilemma Natural Forces are Working Against Our Goals Depletion of Natural Resources Demand for Energy Demand Greenhouse Gas Reduction

129. The future is here! Are we ready?

130. The world is a football field now and youve got to be sharp to be on the team which plays on that field. If youre not good enough, youre going to be sitting and watching the game. Thats all. --Rajesh Rao, founder and CEO of Dhurva Interactive

131. The End! Of the talk, that is.