Mining 1989

The US economy grew steadily in 1989, reaching an annual rate of $5.3 trillion in the last quarter (US trillion=1012 ). The value of domestically processed, mineral-based materials rose 5% to $315 billion (US billion=109). The value of metals produced from US ores rose 14% to $11.6 billion, while industrial minerals rose 2% to $20.2 billion. Recycled scrap was valued at $10 billion. Increasing economic activity stimulated metal prices. Yearly lows and highs were $2.31 and $3.56/kg ($1.05 and $1.62 per lb) for copper, $1.58 and $2.57/kg (72 and $1.17 per lb) for aluminum, 77 and 97 cents/kg (35 cents and 44 cents per lb) for lead, and $1.58 and $2.09/kg (72 cents and 95 cents per lb) for zinc. Many mining and metal companies reported reasonable profits. Consumer demand strongly affects mining because the US economy is saturated with long-lived products. Consumer, mortgage, and Federal debt continued to rise. 250 million US citizens already possess 172 million licensed motor vehicles and 100 million dwelling units. New car production fell 4% to 6.8 million units, while truck and bus production fell 1 % to four million units. New housing starts fell 9% to 1.4 million units. Imports supplied a significant proportion of total US consumption of several important mineral materials. Imports of crude and refined petroleum costing $50 billion exceeded domestic crude oil production. President Bush expressed "strong concerns about this country becoming further dependent on foreign oil." And the Department of Energy held a series of hearings around the country to develop ideas for a "national energy strategy."