USGS says bleak 2009 economy cut U.S. mineral production value by 22%

Despite the global economic recession, Nevada gold again proved itself the champ in U.S. nonfuel mineral commodities last year with Arizona copper mines following close behind, a USGS report revealed.

RENO, NV - 

Continued declines in the U.S. housing market and automobile manufacturing resulted in reduced production and consumption of metals in the United States last year, the U.S. Geological Survey noted in its 2010 Minerals Surveys.

Nevertheless, the USGS advised, the recovery of the U.S. primary metals industry indicated that an expansion in industry activity could occur this year.

The estimated value of minerals produced at U.S. mines last year was $57 billion, a 20% decline from $72 billion in 2008. The value of domestic metal mine production in 2009 was $21.3 billion, about 22% less than in 2008. Although the quantity of metal production declined 7%, the value of that production declined by 22% last year.

U.S. industrial minerals mine production in 2009 was $35.8 billion, an 18% decline over 2008.

However, mine production of 13 mineral commodities in this country was worth more than $1 billion each last year including crushed stone, cement, and gold, copper, construction sand and gravel, molybdenum concentrates, iron ore, salt, clays, lime, soda ash, phosphate rock, and zinc.

Nevada led the U.S. in the value of nonfuel mineral commodities production in 2009, with seven states each producing more than $2 billion worth of nonfuel mineral commodities. The remaining states were, in descending order of value-Arizona, Utah, California, Texas, Alaska and Florida. The total combined mineral production of these nine states accounted for more than 46% of total domestic output value last year.

During fiscal year 2008, the Defense Logistics Agency (DLA) sold $81 million in minerals material from the National Defense Stockpile. At the end of the fiscal year, mineral materials valued at $1.23 billion remain in the stockpile, the USGS said.

COPPER

Domestic mine copper production declined by 9% to 1.2 million tones and the value fell to about $6.2 billion. The principal copper mining states, in descending orders of production-Arizona, Utah, New Mexico, Nevada and Montana-accounted for more than 99% of domestic copper production. The USGS said 20 mines accounted for about 99% of production.

Copper and copper alloy producers were used in building construction, 50%; electric and electronic products, 21%; transportation equipment, 11%, consumer and general products, 10% and industrial machinery and equipment, 8%.

Forty percent of U.S. copper imports came from Chile, 34% from Canada, 13% from Peru, 6% from Mexico and 7% from other countries, according to the USGS.

U.S. copper mine production, which had been expected to increase by more than 200,000 tons last year declined by 120,000 tons following significant revisions to mine plans by several producers.

World Resources: The USGS estimated 550 million tons of copper remain in identified and undiscovered resources in the U.S., and 1.3 billion tons in the Andes Mountain of South America. Global land-based resources exceed 3 billion tons. Deep-sea nodules were estimated to contain 700 million tons of copper.

GOLD

Gold was produced at 50 lode mines, a few large placer mines (all in Alaska) and numerous smaller placer mines in Alaska and the Western States, with a small amount recovered as a byproduct of base metals. Thirty operations yielded more than 99% of the gold produced in this country. Commercial grade refined gold came from 24 producers.

The USGS estimated that domestic gold mine production in 2009 was 10% less than in 2008. "Reduced production from several mines in Nevada, and the closure of one mine in Montana and one in Nevada, accounted for most of the decrease. These decreases were partially offset by an increase in production from one new mine in Washington and increases from several mines in Nevada. Because of the decrease in production, the United States fell to the fourth leading gold-producing nation; however, the United States was still a net exporter of gold," the agency said.

World Resources: U.S. gold resources indicated 33,000 metric tons of gold in identified and undiscovered resources. Nearly one quarter of the undiscovered gold as estimated to be contained in porphyry copper deposits.

IRON ORE

Mines in Michigan and Minnesota shipped 99% of the usable ore produced in this country with an estimated value of $2 billion. Twelve iron ore mines, eight concentration plants and eight pellet plants operated last year. Eight mines operated by three companies accounted for virtually all of the production.

The U.S. produced and consumed 1% of the world's total iron ore output. Import sources included Canada, 58%; Brazil, 34%, Chile, 2%, Trinidad and Tobago, 2% and other, 4%.

World Resources: U.S. resources are estimated to be about 27 billion tons of iron ore. World resources are estimated to exceed 230 billion tons of ore, according to the USGS.

LEAD

The value of mined lead in the US was estimated at $671 million in 2009 with five Missouri lead mines, plus mines in Alaska and Idaho yielding most of the total. The lead-acid battery industry accounted for about 88% of U.S. lead consumption.

Global mine production of lead concentrate increased slightly last year. U.S. import sources included Canada, 70%; Mexico, 10%; Peru, 7%; China, 5%; and other, 8%.

MOLYBDENUM

Domestic production of molybdenum in the U.S. was valued at $1.3 billion, which was produced by 11 mines. Only four mines in Colorado, Idaho, Nevada and New Mexico mined moly as a primary product. Iron and steel and superalloy producers accounted for 75% of the moly consumed.

U.S, mine output of molybdenum in concentrate decreased 11% in 2009. Mine capacity utilization was about 71% last year.

Import sources included Chile, 34%; Mexico, 31%; Canada, 22%, Peru, 12% and other, 1%.

World Resources: Domestic identified resource of molybdenum amount to about 5.4 million tons, and in the rest of the world, about 14 million tons. "Resources of molybdenum are adequate to supply world needs for the foreseeable future," the USGS advised.

NICKEL

The U.S. did not have any active nickel mines in 2009. Limited amounts of byproduct nickel were recovered from copper and PGM ores mined in the western United States.

The principal nickel consuming state was Pennsylvania, followed by Kentucky, West Virginia and Illinois. Approximately 45% of primary nickel consumed went into stainless and alloy steel production, 39% into nonferrous alloys and superalloys, 11% into electroplating and 5% into other uses.

Import sources included Canada, 44%; Russia, 15%; Australia, 9%; Norway 9%; and others, 23%.

The U.S. Government sold the last of the nickel in the National Defense Stockpile in 1999. Planned decommissioning activities at former nuclear defense sites are expected to generate 20,000 tons of nickel in scrap.

World Resources: At least 130 million tons of nickel can be found in land-based resources with about 60% in laterites and 40% in sulfide deposits, according to the USGS. "In addition, extensive deep-sea resources of nickel are in manganese crusts and nodules covering large areas of the ocean floor, particularly in the Pacific Ocean.

PGM

Stillwater in Montana is the only primary PGM producer in the U.S. with small quantities of PGMs recovered as byproducts of copper refining in Texas and Utah.

The U.S. imported 89% of the platinum consumed domestically in 2009 and 47% of the palladium consumed.

Platinum import sources included South Africa, 27%; Germany, 17%, UK, 12%; Canada, 5% and other, 39%. Palladium import sources included Russia, 46% South Africa, 21%; UK, 17%; Belgium, 4%; and other, 12%.

The leading demand sector for PGMs continued to be catalysts for air-pollution abatement in vehicles, and also in the chemical, electronics, high tech, glass, and jewelry sectors.

World Resources: "World resources of PGMs in mineral concentrations that can be mined economically are estimated to total more than 100 million kilograms," the USGS said. "The largest reserves are in the Bushveld Complex in South Africa."

RARE EARTHS

Rare earths are not currently mined in the United States. They were previously produced at Mountain Pass, California.

The U.S. continued to be a major consumer, exporter, and importer of rare earth products with $84 million in imports in 2009, a decrease from $186 million imported in 2008. Import sources of rare-earth metals and compounds are China, 91%; France, 3%; Japan, 3%; Russia, 1; and other, 2%.

SILVER

The U.S. produced 1.230 metric tons of silver with an estimated value of $520 million last year. Silver was produced as a byproduct from 33 base and precious-metal mines. Alaska was the leading silver-producing state, followed by Nevada.

The USGS said 63% of the silver consumed in the U.S. was imported last year with import sources of Mexico, 54%; Canada, 26%; Peru, 15%; Chile, 3%; and other, 2%.

Industrial demand for silver declined modestly in the U.S. last year.

World Resources: Ores from polymetallic deposits account for more than two-thirds of U.S. and world silver resources. Most recent silver discoveries have been associated with gold; "however, base-metal occurrences that contain byproduct silver will continue to account for a significant share of future reserves and resources," the USGS said.

ZINC

The value of zinc mined in this country was about $1.18 billion last year. It was produced in six states at 13 mines operated by six companies. Of the total zinc consumed, about 55% was used in galvanizing, 21% in zinc-based alloys, 16% in brass and bronze, and 8% in other uses.

About 76% of the zinc consumed domestically last year was imported. Import sources include: Canada, 55%; Peru, 15%; Mexico, 15%; Ireland, 3%, and other, 12%.

World Resources: Identified zinc resources of the world are about 1.9 billion metric tons.

For more information concerning USGS Mineral Commodity Summaries, go to http://minerals.usgs.gov/minerals/pubs/mcs/

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