Mining 1988

The US economy continued to grow steadily in 1988, reaching an annual rate of $5 trillion in the last quarter (US trillion = 1012). The value of domestically processed mineral-based materi¬als rose 20% to $300 billion (US billion 109). The value of metals produced from US ores rose 40% to more than $10 billion, industrial minerals rose 6%' to $20 billion, and recycled scrap more than doubled to $10 billion. Increasing economic activity stimulated metal prices. Yearly lows and highs were 95 cents and $1.68 for copper, 52 cents, and $1.30 for aluminum, 34 cents and 42 cents for lead, and 43 cents and 75 cents for zinc. A number of mining and metal companies experienced significantly increased profitability. Consumer demand strongly affects mining because the US economy is relatively saturated with long-lived products. Consumer, mortgage, and Federal debt continued to rise. About 246 million US citizens already possess 170 million licensed motor vehicles and 100 million dwelling units. New car production remained at the 1987 level of 7.1 million units. Truck and bus production, however, rose 7% to 4.1 million units. New housing starts fell 7% to 1.5 million units. Imports supplied a significant proportion of total US consumption of several important mineral materials. By year-end, imports of crude and refined petroleum exceeded domestic crude oil production. Such imports cost $42 billion. Imports of nonfuel mineral-based materials were valued at $44 billion and exports at $35 billion. The US and Canada-the world's two largest trading partners-consummated a historic free trade agreement. In February, President Reagan transferred responsibility for stockpiling strategic and critical materials to the Secretary of Defense. And, in July, the GSA group that bought, stored, rotated, and sold stockpiled materials was transferred to the Defense Department's Defense Logistics Agency. Concern about apartheid in South Africa continued, resulting in increasing attention to chromium, manganese, platinum-group metals, cobalt, vanadium, and gold. The Defense Production Act, authorizing priorities and allocations, supply expansions, voluntary agreements, and the National Defense Executive Reserve, was amended to include provisions for averting harm to national security from foreign takeovers. The DPAct, in effect through September 1989, is now up for further extension. Under the Act, the US Bureau of Mines maintains the Emergency Minerals Administration. During the year, consultations were held with Canada to strengthen the North American Defense Industrial Base. Coal production, 60% from open pits, rose 5% to 870 Mt (960 million st). Nearly four-fifths was burned to generate 57% of US electricity. Exports included 56 Mt (62 million st) of metallur- gical coal and 29 Mt (32 million st) of steam coal, with a total value of $4 billion. Domestic petroleum produc¬tion fell 2% to 574 hm3 (3.6 billion bbl). Uranium mining, including recovery from phosphates, was unchanged at 5.9 kt (6500 st). Nonfuel minerals Major metals Raw steel production-a major con¬sumer of many minerals-rose 14% to 92 Mt (102 million st). Domestic iron ore production rose 25% to 59 Mt (65 million st), about 96% pelletized. Net imports rose 37% to 16 Mt (18 million st). Raw steelmaking capacity of 102 Mt (112 million st) was unchanged. Voluntary Restraint Agreements with 21 steel exporting nations limited im¬port penetration to about 20% of the domestic market. Domestic producers of bulk ferroal¬loys of chromium, manganese, and sili¬con operated at about 75% of capacity. The US mined no manganese or chro-