Mining 1990

In the first half of the year, lessening of cold war tensions was welcome. But Iraq's invasion of Kuwait in the second half led to the Persian Gulf War in January and February 1991. This caused an oil shock that dampened the economy. So the US gross national product rose only 0.9% to $5,463 billion (US billion = 109). The buildup of military forces in the Persian Gulf area focused greater attention not only on petroleum but also on other strategic materials. The Department of Defense continued to review stockpile goals and to upgrade several mineral materials. In addition, the Bureau of Mines continued to maintain the standby Emergency Minerals Administration. The Defense Production Act, which authorizes priorities, alloca¬tions and supply expansion, lapsed on Oct. 20. So the Selective Service Act of 1967 became the authority for assuring that orders of the armed forces and defense atomic-energy programs were given priority treatment. Consumer demand strongly affects mining worldwide. US citizens carry significant debt, and large stocks of housing and consumer goods are already in place. Some 250 million persons have 188 million licensed motor vehicles and 100 million dwelling units. Consequently, new car production fell 11 %, to 6.1 million units. Truck and bus production fell 8%, to 3.7 million units and new private housing starts fell 13% to 1.2 million units.