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By E. D. Attanasi, M. W. Bultman, J. H. DeYoung

The 1987 recovery in the US mining industry permitted modest increases in exploration expenditures that year (Fig. 1). Favorable market conditions apparently allowed the gains to be sus¬tained in 1988. There was great uncer¬tainty early in the year as to whether world and US economic growth would be a casualty of the October 1987 worldwide stock market crash. By nearly all measures, the performance of the US minerals industry was strong¬. A weak US dollar and the strong growth of worldwide capital spending resulted in in¬creased US exports of con¬sumer and producer durable items as well as strong domes¬tic demand for metals. In fact, 1988 US steel industry exports reached levels not attained since the mid-1970s. It was re¬ported that steel industry labor productivity is now roughly twice the 1981 level. Among metals with signifi¬cant average nominal price increases in 1988 over 1987 levels were copper (43%), alu¬minum (52%0), and zinc (44%). Even though domestic copper production has grown since 1984 by 30% in mining and 24% in refining, em¬ployment in mining and milling is 4% below the 1984 level. Domestic unit costs are reported in the range of $1.10 to $1.33/kg (50 to 60 cents per lb). The US base metals industry is proba¬bly in its best cash position in many years. However, there has not been a large increase in exploration expendi¬tures. This is due mostly to the percep¬tion that worldwide capacity can easily be increased. Industry reports do show that "low cost" copper producers have been buying reserves from weaker com¬panies. The 1987 Society of Economic Ge¬ologists (SEG) survey of exploration activity indicated that 95 cents out of every exploration dollar spent by US and Canadian firms was for base and precious metals (Economic Geology, January 1989). Press reports, though, make it clear that most of that spending was targeted for precious metals. US claim staking data (Fig. 2) rein¬forces this suspicion. The apparent lag in new claim filings in Alaska and phe¬nomenal growth in filings in the lower 48 states suggests that exploration is directed at relatively low risk targets. In the conterminous 48, more than 40% of the new claims were made in Nevada, indicating an emphasis on gold (although even Nevada had some base metals exploration). Even with a price decline during 1988, the difference between the gold price and average global "cash" production cost of $7.30/g ($227 per oz) still leaves room for an attractive return (Northern Miner, 1988). Exploration plans and results Metals Economics Group (Halifax) indicated in its 1988 exploration survey that exploration expenditures by US and South African firms would be at about 1987 levels. It also reported that Canadian and Australian firms were ex¬pected to reduce their exploration spend¬ing significantly. Firms in both coun¬tries were caught in changes in tax laws. In Canada, the Mining Ex¬ploration Depletion Allow¬ance (MEDA) once permitted generous tax write-offs to in¬dividuals investing in miner¬als exploration. It was to be replaced in January 1989 with the Canadian Exploration In¬centives Program (CEIP). Although structured and ad¬ministered differently than MEDA, CEIP can provide an equivalent or possibly greater financial incentive for min¬eral exploration, for junior mining companies. In 1987, it is estimated that junior com¬panies accounted for two¬-thirds of the off-property (or grass roots) exploration ex¬penditures in Canada. Australia will revoke the tax exemption for gold in 1990. Australian operators, therfore, were expected to concentrate efforts on speeding up pro¬duction during 1988 and 1989. In 1988, Chile and Mali announced special efforts to attract gold explora¬tion by foreign companies. The Cana¬dian government continues to express concern about the write-off (and drawdown) of base metal reserves. Falconbridge did announce a new initiative to identify additional base metal reserves in the Sudbury district. Discoveries Gold deposits dominated discoveries

Jan 1, 1989

By E. D. Attanasi

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.

Jan 1, 1990

By E. D. Attanasi

Exploration for non-fuel minerals has declined since 1988 as recessionary pressures have slowed growth in the industrialized economies. By most accounts, however, 1990 expenditures were still significantly greater than the low levels experienced in the mid-1980s. The Persian Gulf crisis introduced instability in energy prices and greater uncertainty into an already cloudy economic picture. As 1990 unfolded, the US savings and loan problems spread to the commercial banking system, leading to the failure of several major US commercial banks. The Japanese stock market also suffered significant losses as Japan's Central Bank raised interest rates. The Soviet Union experienced shortages of food and other basic items. Its government faces resistance to changes leading to a market economy. Individual Soviet republics also are seeking more control of their own destiny. The cost of German reunification, in terms of the capital required to bring the east's infrastructure and industrial base to western standards, also appears to have been underestimated.

Jan 1, 1991

In 1991, most industrialized countries, except for Germany, were in a recession or a period of reduced growth. The US economy, already in recession, suffered from mounting banking system losses and the uncertainty brought about by the Persian Gulf War. However, US and worldwide minerals exploration did not collapse as it did during the mid-1980s. Even though gold and base metal prices declined, prices were still above cash costs for most operations. This allowed the continuation of established exploration programs but sharply limited new initiatives. Exploration 1990-1991 Planned worldwide 1991 exploration expenditures declined by about 8% from 1990 levels, according to a survey of 153 companies by the Metals Economic Group (MEG). Canada was the leading exploration target with 23% of the total, followed by Australia and the US (19% each), South Africa (13%), Latin America (11%) and the South Pacific (7%). The remaining 8% was split evenly between Europe and the rest of Africa. In Latin America, Mexico and Chile are the most attractive countries for exploration. Recognizing the risks involved, the industry has been cautious about ventures in the former Soviet Union. Survey results also showed that while the majors expected to maintain exploration spending, smaller firms were cutting back or actively seeking farm-outs from the majors (personal communication, M. Wegener, MEG).

Jan 1, 1992

Worldwide minerals exploration slipped in 1992 from 1991 levels. Although industrial production figures showed the US economy emerging from recession in early 1992, it was not until February 1993 that the lagging indicator of unemployment dropped to 7%. Most other industrialized countries are still in recession. Preliminary data for 1992 showed industrial production dropping in Japan (5%), Germany (1.4%), the United Kingdom (0.5%) and France (1.4%). The slowdown in industrial production led to reduced mineral demand. This resulted in lean cash flows from mining operations, which squeezed exploration funding. Although mineral prices were steady during most of 1992, some mineral commodity prices began falling in late 1992 and early this year. Exploration 1991-1992 According to Metals Economics Group (MEG), planned 1992 exploration expenditures were down by about 5%. Geographically, the leading exploration target was the United States with 21 % of the expenditures, followed by Australia (19%), Canada (18%), Latin America (15%), South Africa (9%) and the western Pacific (7.5%). The remaining 10% was split between Europe and Africa. There were absolute increases in exploration expenditures in the United States and Latin America. Latin America showed the largest increase. The change in the Mexican mining law allowing foreign ownership of mines should result in the inflow of direct foreign investment in Mexico's mining industry.

Jan 1, 1993

During 1993, contraction of indus¬trial economies in Germany (-2%), France (-1 %), Japan (-0.1 %), Eastern Europe (-2%) and the former Soviet Union (-13%) dimmed prospects of a robust economic recovery for North America. Some European countries that suffer from high unemployment and large government deficits have non-com¬petitive cost structures that will require long-term economic reforms to solve. Restructuring in the United States also continued in 1993. The sluggish pace of the US economic recovery, in¬troduction of federal tax increases and the persistence of high levels of unemployment did little to inspire consumer confidence. By the end of the year, however, sales of consumer durable and capital equipment began to grow. Depressed demand for minerals by industrial economies in recession was partially offset by continuing rational¬ization or abandonment of non-competi¬tive productive capacity in Eastern Eu¬rope and the former Soviet Union. Al¬though aluminum, lead, titanium sponge and zinc prices fell, increases in copper and steel consumption helped steady their prices along with prices of some alloys. Cash flow to the mining industry - the primary source of exploration funds - was therefore constrained. For many companies, exploration expendi¬tures were reallocated geographically and in terms of commodities sought.

Jan 1, 1994

The US economy grew at a rate of 4% in 1994 and the gross domestic product rose to $6.74 trillion. With 261 million people - 605,000 in mining, including petroleum -the United States has l 10 million dwelling units and 200 million licensed motor vehicles. New private housing units authorized in 1994 rose 14% to 1.4 million units. New car production rose 11 % to 6.6 million units, while truck and bus production rose 30% to 5.2 million units. The inflation rate was less than 3% and the prime rate of interest averaged 7.15%. The producer price index (1982 = 100) for fuels and related products and power was down 4% to 78, while metals and metal products rose 5% to 125. Chemicals and allied products rose 3% to 132, and non-metallic mineral products rose 3% to 124. The merchandise trade deficit rose 25% to $166 billion. Disorder in the former Soviet Union led to substantial dumping of mineral materials. With vast mineral resources, the former Soviet Union land area totaled 22.4 million km2 (8.6 million sq miles). In comparison, the North Ameri¬can Free Trade Agreement (NAFTA) area (United States, Canada and Mexico) totals 21.4 million km2 (8.3 million sq miles).

Jan 1, 1995

By D. Washington

The US economy and the demand for nonfuel minerals grew at lower rates in 1995 than in 1994. Demand for major metals, such as aluminum, copper and steel, was mixed but relatively stable. The building industry, including highway construction, helped to support modest overall growth in demand for industrial minerals. The value of processed materials of nonfuel mineral origin produced in the United States during 1995 was estimated to be $395 billion, an increase of almost 10%compared with 1994 (Fig. 1). The estimated value of US raw nonfuel minerals production during 1995 was $38billion, about 7% more than in 1994. The value of US minerals production has increased in 30 of the last 35years.

Jan 1, 1996

By R. F. Balazik

By March 2001, shrinking global markets, reduced consumer spending and declines in domestic manufacturing and industrial output ended the longest economic expansion in US history and pushed the nation’s economy into its first recession in a decade. Aggravated by the terrorist attacks of Sept. 11, the recession led to large reductions in the domestic production of processed mineral materials. Some of the most significant production declines in the US metals industry were registered by aluminum, copper and steel producers. They faced strong foreign competition, higher energy costs and lower prices for their products. However, homebuilding and other domestic construction sectors — major users of nonmetallic mineral products such as cement, brick, glass and stone — remained strong enough to help raise the output of industrial mineral materials slightly above previous year levels. A strong US dollar continued to weaken the competitive stance of US metal and nonmetallic mineral materials companies alike against foreign producers in markets at home and abroad.

Jan 1, 2002

By P. A. Plunkert, D. E. Morse, L. McCartan, S. F. Sibley

Following the recession of 2001, restrained consumer spending, declines in domestic manufacturing and industrial output, and increased unemployment led to a lack-luster year in the domestic economy. In 2002, the U.S. real gross domestic product (GPD) grew only 2.4%. Significant production declines in the U.S. metals industry were registered by copper, lead and zinc producers. Steel producers, despite a slight improvement in shipments, continued to face strong foreign competition, higher energy costs and lower prices for their products. Homebuilding and other domestic construction sectors— major consumers of nonmetallic mineral products such as cement, brick, glass and stone — remained strong enough to help raise the output of industrial mineral materials slightly above 2001 levels. A strong U.S. dollar relative to other national currencies continued to weaken the competitive stance of U.S. metal and non-metal mineral materials companies alike against foreign producers in markets at home and abroad.

Jan 1, 2003

By P. A. Plunkert, D. E. Morse, L. McCartan, S. F. Sibley

The average annual growth rate of real gross domes-tic product (GDP) from the third quarter of 2001through the second quarter of 2003 in the United States was about 2.6 percent. GDP growth rates in the third and fourth quarters of 2003 were about 8 percent and 4 percent, respectively. Many other indicators reflected a rebounding U.S. economy — rising consumer confidence, higher retail sales, greater industrial production and more housing starts. Inflation also reached a 38-year low in 2003. The upward trends in many sectors of the U.S. economy in 2003, however, were shared by few of the mineral materials industries. Annual output declined inmost non fuel mining and mineral processing industries, although there was an upward turn toward yearend as prices began to increase (Table 1).

Jan 1, 2004

By P. A. Plunkert, D. E. Morse, L. McCartan, J. F. Papp

The mineral sector is a fundamental part of the U.S. economy. It contributes to the real gross domestic product (GDP) at several levels — basic (mining), intermediate processing, manufacturing of finished goods and construction. The real GDP during 2004 increased by 4.4 percent. The nominal GDP was about $11.7 trillion. Housing starts were up by slightly more than 4 percent for the year. And the nation’s unemployment rate decreased to5.5 percent in 2004 from 6 percent in 2003. Interest rates continued to be low (prime rate was 5.25 percent at the end of 2004) but have risen gradually, following rising inflation.

Jan 1, 2005

By F. Freme

Coal production in the United States reached a record level in 2005, ending the year at 1.03 Gt (1,133.3 million st) according to preliminary data from the U.S. Energy Information Administration (Table 1). Production in 2005 was 19.2 Mt (21.2 million st) higher than the 2004 level of 1 Gt (1,112.1 million st) and surpassed the prior record set in 2001 by 5.1 Mt (5.6 million st). Although total U.S. coal consumption rose in 2005, not all coal-consuming sectors had increased consumption for the year. Coal consumption increased in the electric power sector by 2.2 percent and declined in the other industrial sector, while coking coal consumption decreased slightly.

Jan 1, 2006

By D. R. Wilburn

This summary of international mineral exploration activities for the year 2005 draws upon available information from literature, industry and U.S. Geological Survey (USGS) specialists. It provides data on exploration budgets by global region and mineral commodity and identifies significant mineral discoveries and exploration target areas. It also discusses government programs affecting the mineral exploration industry and presents analysis of the mineral industry based on these data. Two types of information are reported and analyzed in this annual review of international exploration for the year 2005. They include budgetary statistics provided by Metals Economics Group (MEG) and information on regional and site-specific exploration activities in 2005 compiled by the USGS.

Jan 1, 2006

By P. A. Plunkert, D. E. Morse, L. McCartan, J. F. Papp

The mineral sector is a fundamental part of the U.S. economy. It contributes to the real gross domestic product (GDP) at several stages —basic (mining), intermediate processing, manufacturing of finished goods and construction. The real GDP increased by 3.5 percent from 2004 to 2005. The nominal GDP was $12.5 trillion at the end of 2005. Housing starts were up by more than 5 percent for the year, and the unemployment rate decreased to 5.1 percent in 2005 from 5.5 percent in 2004. The prime interest rate increased from 5.25 percent at the beginning of the year to 7.25 percent at the end of the year. The value of minerals mined in the United States in 2005 rose significantly because of increased unit prices for some metals —particularly molybdenum — and significantly increased production for some industrial minerals, mainly cement, construction sand and gravel, and crushed stone.

Jan 1, 2006

By F. Freme

For the second time in four years, the coal industry was brought to the forefront of the nation’s consciousness in 2006, as two separate events unfolded which involved coal miners trapped underground. Unfortunately, the tragic results of the 2006 incidents were not the same as in 2002 when the trapped miners were all successfully rescued. In January, two different incidents, both in West Virginia, focused the public’s attention on the dangers that miners face on a daily basis. As a result of these unfortunate events new legislation requiring improvement in safety in underground mines passed both at the federal and state level. In 2006, a total of 47 miners died on the job, matching the total number that occurred in 1995, and more than double the 22 killed in 2005. Notwithstanding those tragic events, coal production in the United States reached another record level in 2006, ending the year at 1.05 Gt (1,161.4 million st) according to preliminary data from the U.S. Energy Information Administration (Table 1). Production in 2006 was 27.1 Mt (29.9 million st) higher than the prior record set in 2005 of 1.03 Gt (1,131.5 million st). Although coal production rose in 2006, U.S. total coal consumption actually declined for the year. Coal consumption decreased in the electric power sector by 1.1 percent, while coking coal consumption decreased slightly. Only the other industrial sector had higher coal consumption in 2006, increasing by 0.3 percent. (Note: All percentage change calculations are done at the short tons level.) U.S. coal exports declined slightly in 2006, while coal imports again reached a record level. The excess production over consumption allowed total coal stocks to increase significantly during the year, as electric generators rebuilt their stockpiles that had fallen substantially in 2005 because of missed shipments in the second half of that year.

Jan 1, 2007

By D. R. Wilburn

This summary of international mineral exploration activities for 2006 draws upon avail-able information from literature, industry and U.S. Geological Survey (USGS) specialists. The summary provides data on exploration budgets by region and mineral commodity, identifies significant mineral discoveries and areas of mineral exploration, discusses government programs affecting the mineral exploration industry and presents analysis of the mineral industry based upon these data. Two types of information are reported and analyzed in this annual review. They include budgetary statistics provided by Metals Economics Group (MEG) of Halifax, Nova Scotia, and information on regional and site-specific exploration activities that took place in 2006 compiled by the USGS.

Jan 1, 2007

By Staff

The mineral sector is a fundamental part of the U.S. economy. It contributes to the real gross domestic product (GDP) at several stages—basic (mining), intermediate processing, manufacturing of finished goods and construction. The estimated growth rate for the real GDP of the United States for 2006 was 3.2 percent. The nominal GDP was about $13.2 trillion. The value of minerals mined in the United States in 2006 rose significantly because of increased unit price for some metals—particularly copper, zinc and other base metals. There was also a significant reduction in metals stocks. Infrastructure expansion and manufacturing in China and India have been absorbing a significant portion of world output. Domestic production increased for some industrial mineral materials, mainly cement and construction sand and gravel. Production of crushed stone declined less than 1 percent in 2006 compared

Jan 1, 2007

By D. R. Wilburn

his summary of international mineral exploration activities for the year 2011 draws upon available information from industry sources, published literature and U.S. Geological Survey (USGS) specialists. The summary provides data on exploration budgets by region and mineral commodity, identifies significant mineral discoveries and areas of mineral exploration, discusses government programs affecting the mineral exploration industry and presents [ ] analyses of exploration activities performed by the mineral industry. Three sources of information are reported and analyzed in this annual review of international exploration: 1) budgetary statistics expressed in U.S. nominal dollars provided by Metals Economics Group (MEG) of Halifax, Nova Scotia; 2) regional and site-specific exploration activities that took place in 2011 as compiled by the USGS and 3) regional events including economic, social and political conditions that affected exploration activities, which were derived from published sources and unpublished discussions with USGS and industry specialists.

Jan 1, 2012

In 2011, the value of mineral production increased in the United States for the second consecutive year (Table 1). Production increased modestly for most mineral commodities mined in the United States, and price increases, especially for precious metals, resulted in increases in the value of production. Minerals remained fundamental to the U.S. economy, contributing to the real gross domestic product (GDP) at several levels, including mining, processing and manufacturing finished products. Minerals? contribution to the GDP increased for the second consecutive year. Trends in other sectors of the domestic economy were similar to those in mineral production and consumption rates. U.S. apparent mineral consumption (industrial) of 11 mineral commodities decreased substantially from 2005 to 2010 (aluminum, cadmium, cement, copper, iron, lead, salt, soda ash, steel, tin and zinc). Data for 2011 were not calculated, but the data show a sustained decrease (especially for the metals) preceding the recession through 2010, so consumption seems to be behaving differently than production and GDP. After continued decline following the 2008?2009 recession, the construction industry began to show signs of improvement during 2011, with increased production and consumption of cement, construction sand and gravel, and gypsum ? mineral commodities that are used almost exclusively in construction. Crushed stone production, however, continued to decline.

Jan 1, 2012