US Minerals Sector Declines In 2009: USGS

The United States is increasingly turning to foreign sources for minerals, according to a new report by the United States Geological Survey.

The report notes that with a significant decline in production, the U.S. has increasingly drawn from foreign regions’ resources, a trend evident for more than 30 years.

The U.S. minerals sector experienced a major decline, notes the report, titled Mineral Commodity Summaries 2010.

“Over the last year, there has been reduced production of almost every mineral commodity and lower prices for most metals,” said USGS Mineral Resources program coordinator Kathleen Johnson, in a statement.

In 2009, the U.S. produced $57.1-billion worth of raw, nonfuel minerals, a 20% decline from the previous year. The value of domestically processed and refined resources from these raw minerals was $454 billion for 2009, a 25% drop from 2008.

Foreign sources supplied more than 50% of 38 mineral commodities studied in the report, with the United States importing 19 of the 38 exclusively from foreign countries.

The recession has taken its toll on the U.S. economy, with the housing market contributing to a reduction in the production and consumption of construction materials.

Declining automobile and durable-goods sectors also decreased demand for metals including copper, iron, steel, lead and platinum group metals.

But it’s not all bad news.

According to the USGS, gold was the shining light amongst the declining metals prices, having reached an all-time high of US$1,215.21 per troy ounce in early December 2009.

On the other side of the scale, iron ore was hit the hardest, seeing a 50% decrease in production quantity and value last year.

The USGS collects, analyzes and compiles data from the U.S. and 180 other countries. The recently released Mineral Commodity Summaries 2010 report, addresses trends, events and issues in both the domestic and international mining sector, including an examination of 90 companies.

The report is available online at minerals.usgs.gov .