EDITORIAL & OPINION — FACTS ‘N’ FIGURES — Growing US economy bolsters mining industry

The U.S. economy expanded 3.9% in 1998, prompting increased consumption of minerals and mineral-based products, according to a study by the United States Geological Survey. Much of this increase in consumption, however, occurred because of increased imports of mineral-based products, especially steel and other metals.

The consumption of minerals reflects the use of non-fuel minerals, such as fertilizers in agriculture, concrete and other building materials in construction, steel in the manufacture of cars and other vehicles, and materials crucial to the communications industry.

According to Mineral Commodity Summaries 1999, the value of raw, non-fuel mineral production was US$40 billion last year, down slightly from US$40.5 billion in 1997. The value of domestic mineral production, however, has increased in 31 of the past 38 years. The three top-producing states are Nevada at US$3.1 billion and California and Arizona at US$3 billion apiece.

Imports of processed metal were valued at US$60 billion and exports were valued at US$35 billion. Imports of metal ores and concentrates, and raw industrial minerals increased slightly to US$3 billion. Exports of raw minerals remained essentially unchanged at $3 billion.

The outlook for the domestic minerals industry in 1999 will depend largely on two sectors of the U.S. economy that are significant consumers of aluminum, cement, copper, crushed stone, glass, sand, gravel and steel. The automobile industry will be the primary source for demand for the metals, whereas highways and mass transit (budgeted for increased federal spending) and other construction will be the primary source of demand for industrial minerals.