MASSENA — Crypto mining operations have been a part of Massena for a number of years, and now one of them is positioned to be among the largest in the world.

Coinmint, through its operating subsidiary North Country Colocation Services, operates in the old Alcoa East smelting plant which had been dormant for a number of years.

Crypto mining is a process by which specialized computers receive a small monetary reward in the form of a crypto currency for a specific crypto coin for processing and validating transactions online.

“We definitely are one of the largest operations in the world, with a total possible capacity of 435 megawatts for the whole operation,” said NCCS CEO David Fogel.

But it’s not just a matter of the power usage and computing power available on site, Fogel said. He said Coinmint is invested in the North Country and hopes to continue to help the local community in a number of ways.

“Right now, as of Q1 2022, we’re operating at 145 megawatts. That’s a big jump from the 80-100 megawatts we operated at during 2021,” Fogel said.

Fogel said the operation is capable of handling even more computing but infrastructure would need to be planned and expanded over time to accommodate.

“We are slowly increasing our capacity, building out the infrastructure within the building and adding more as we go,” he said.

Staffing Increases

In total, Coinmint employs 99 full-time employees, according to Fogel.

“We started out with a handful of local contractors when we first started but as we have expanded and began operating with a larger capacity, we continued to add more and more employees,” he said.

Most employees are skilled laborers, like electricians and engineers, but some are entry level jobs, Fogel said.

“We offer full benefits for every employee too; which includes health insurance, dental insurance and soon a new 401k. So, a single employee who is on our health insurance will pay nothing for the plan and anyone enrolled in the 401k will see a 5% company contribution, regardless of whether or not they contribute anything themselves,” Fogel said.

As Coinmint continues to expand, Fogel said plans are in place to add additional staff as well.

“Right now we’re looking to hire an additional 20 employees or so, all 100% local workers, on a full-time basis. As we grow and our capacity goes up, we hope to have at least one employee per megawatt used. So if we hit our max capacity of 435 megawatts, that would mean we would have at minimum 400 employees. That’s the goal anyway,” he said.

When asked about the pay scale available for employees, Fogel was unable to comment in great detail.

“We are not comfortable sharing detailed compensation information about our employees or a class of employees, but we can say with confidence that our compensation and benefits are very competitive for the region,” he said.

Employee Training, Retention

Though most employees come in with extensive training and experience in their chosen field, unskilled laborers may soon have even more opportunities through a future training program.[img_assist|nid=320170|title=Coinmint staff unbox and prepare several processors for a client, readying them for installation. Coinmint houses hundreds of processors from numerous companies who mine for crypto currency. |desc=(Photo Courtesy of Coinmint)|link=none|align=middle|width=920|height=1024]

 “Much like other companies, like GM or Alcoa, we will have a training program so our staff can learn a new skill or become better and build off of their existing training. That all is in the planning stages but we hope to have that ready to go very soon,” he said.

Coinmint is partnering with SUNY Canton for the training program, while also consulting Clarkson University for employee hiring, Fogel said.

“SUNY Canton is always ready to explore relationships with north country businesses. Our Career Services Office helps place our in-demand graduates locally, regionally and nationwide. Training for current employees is available through Career Ready Education and Success Training (CREST) Center,” said Greg Kie, Senior Media Relations Manager for SUNY Canton.

The training program would also allow employees the opportunity to move within departments at the facility, with cross training and upward mobility being a key goal.

“If someone comes in working X job and wants to start doing Y, we want to facilitate that for them, so we have happy employees for one, but it would also allow us to retain employees as well,” Fogel said.

Economic Impact

Many residents cite crypto mining operations for a rise in electric rates, though Massena Electric and the New York Power Authority have measures in place to safeguard against that, according to Town Attorney Eric Gustafson.

“We ensure everything is done at the market rate for these companies. The tariffs are already in place with Massena Electric and market power is sold to them pursuant to MED tariffs,” he said.

Fogel elaborated further, in the case of Coinmint, who are in the unique position of negotiating with providers directly for open market power.

“We don’t use Massena Electric or NYPA for our power delivery, we go right to the NY ISO. We get better rates, first and foremost, but it also just makes the most sense for us and the scale of our operation,” he said.

At a moment’s notice, operations could be throttled and power diverted from Coinmint to assist in the event of a power outage as well.

“That is part of the agreement and we have procedures in place to ensure we can throttle our operation at a moment’s notice and we can do that in a matter of minutes,” he said.

Though specific figures were not offered, Fogel is confident Coinmint contributes to the local economy in a big way through employee benefits and salaries, enabling individuals to put money back into the local economy by purchasing commodities and goods.

Environmental Impact

A key concern many local residents have, as well, revolves around the potential impact the operation will have through heat distribution and noise creation. Fogel addressed those concerns, saying the company specifically sought their current location because of these factors.

“We intentionally located in a former aluminum smelting plant because it was specifically designed with a natural air cooling system. Also, unlike a gas turbine powered facility, for example, any heat that is generated in our facility is expelled into and absorbed by the air, not cooled by a nearby water source,” Fogel said.

The environmental impact also plays a key role in pricing for customers of Coinmint.

“We install the most advanced and energy efficient mining equipment available in our facility at every opportunity.  To encourage our customers to use the most efficient equipment, we typically charge higher fees for customers who have less efficient machines with us,” Fogel said.

Shipping materials are also a major concern for the company, with so many smaller operators co-locating at the facility. Appropriate measures are taken to ensure materials and waste are disposed of in an efficient manner.

“We make a big effort to recycle all packaging materials which includes proper trash separation and finding alternate ways to dispose of, for example, foam,” he said.

Decommissioning Plans   

Another major difference between Coinmint and other crypto operations is the nature of decommissioning failed or outdated equipment.

“We primarily co-locate for other mining companies, which means any used mining equipment that is no longer being employed at our facility is typically returned to their owners and dealt with by them.  There is an active secondary market for used equipment and spare parts, so much of this equipment is recycled in whole or in part.  But in any event we do not have a trash or disposal issue at our facility,” Fogel said.

Other operations have come under fire for not having proper decommissioning plans in place to ensure outdated equipment doesn’t end up in landfills, but Fogel maintains that Coinmint is cognizant of the processes needed to properly dispose of electronic waste.

“While limited, to the extent we have any remaining (electronic) trash, we transport it to proper recycling sites,” he said.

For more information about Coinmint, visit https://www.coinmint.one/