Mining 1987

Introduction In 1987, the US economy continued to grow steadily, reaching an annual rate of $4.6 trillion in the last quarter. The value of domestically processed mineralbased materials rose slightly to $250 billion. The value of US metals rose sharply to more than $7 billion. Industrial minerals rose slightly to $18 billion recycled scrap was valued at $4 billion. Metal prices rose sharply toward year-end. A number of mining and metal companies experienced increased profitability, fostering more optimism about the future. Consumer demand strongly affects mining because the US economy is relatively saturated with long-lived products. Consumer, mortgage, and federal debt continue to rise. 244 million citizens already possess 170 million licensed motor vehicles and 100 million dwelling units. New car production fell 9% to 7.1 million units, but truck and bus production rose 9% to 3.8 million units. New housing starts fell 10% to 1.6 million units. Excess productive capacity exists not only in the US, but also in many other countries. Consequently, the US mineral industry is encountering stiff competition from others, as well as increasing competition from newer engi¬neered materials. Domestic production of plastics rose 9% to 25 Mt (27 million st) - on a volume basis, double all metals. Some 7% of petroleum goes to make petrochemicals including plastics. Imports of nonfuel mineral-based materials in 1987 were valued at $37 billion and exports at $24 billion. Imports supplied a significant proportion of total US consumption of several important mineral materials, including many classified as strategic and critical. In December, the Congress mandated that any major changes in stockpile goals be made only by law, and that the Department of Defense submit annually detailed stockpile supply/demand analyses. Concern about apartheid in South Africa continued, resulting in increasing interest about chromium, manganese, platinum-group metals, cobalt, vanadium, and gold. The National Critical Materials Council continued to monitor the US materials position. The Defense Production Act, authorizing priorities and allocations, supply expansions, voluntary agreements, and the National Defense Executive Reserve continues in effect through Sept. 30, 1989. Under the DPA, the US Bureau of Mines maintains the Emergency Minerals Administration. Further consultations were held with Canada to strengthen the North American defense industrial base. Coal production, 60% from open pits, rose 2% to 825 Mt (910 million st) valued at $21 billion. Nearly four-fifths was burned to generate 56% of US electricity. Exports included 42 Mt (51 million st) of metallurgical coal and 24 Mt (27 million st) of steam coal, with a total value of $3.3 billion. Domestic petroleum production fell 5% to 480 Mm' (3 billion bbl). Uranium mining, including recovery from phosphates, fell 4% to 5.9 kt (6500 st). Nonfuel minerals Major metals: Raw steel production - a major consumer of many minerals - rose 7% to 79 Mt (87 million st). Domestic iron ore production rose 11% to 44 Mt (48 million st), about 96% pelletized. Net imports, though, fell 8% to 11 Mt (10 million st). Raw steelmaking capacity fell 6% to 102 Mt (112 mil-