Annual Review 1989 – Exploration – Mining – Minerals Processing - Coal

The US mining industry finished the traumatic 1980s with a strong economic performance. Worldwide economic growth and capital spending led to tight metal markets. So, 1989 metals prices were generally higher than average 1988 prices. Financial markets' volatility resulted from US junk bond defaults, heavy US savings and loan losses and effects on the US budget deficit, higher energy prices, and the seemingly intractable problems of some debtor countries. Moreover, the events in Eastern Europe promise fundamental changes in the world economic system for the 1990s. US mining companies that survived the decade had weathered economic changes that, at one point, reduced industry employment by 40%, drove oil companies to divest or liquidate recently acquired mineral subsidiaries, and led to substantial write-offs of reserves. Canadian and other international minerals firms experienced similar industry upheavels. The forced modernization and capacity rationalization produced an internationally competitive US industry. For example, even though 1989 US copper production was 27% greater than in 1980, industry employment was less than half the 1980 level. The steel industry and other minerals industries showed similar productivity improvements.