Mining : The Decade Begins With a Difficult Year

After a good year in 1979-strong mineral demand, adequate prices for most metals, minimal labor problems-1980 was not so good. The US produced $24.8 billion worth of nonfuel minerals last year, up 3.5% from 1979, according to preliminary US Bureau of Mines figures. But the $800 million increase was the smallest annual gain since 1977 and reflected reduced auto and construction industry demand, strikes, and energy shortages. Preliminary figures for 68 minerals show that production of 42 decreased, 25 increased, and one was unchanged. Production of 11 of 21 US-produced minerals was up. Noteworthy mineral events in 1980 included a copper industry strike, increased gold and silver prices, troubles in the iron ore and uranium industries, discussion about a US nonfuels mineral policy, and corporate interest in mining companies as merger targets. Recessionary conditions experienced by the Western world in 1980 resulted in a slowdown in new mine development, evident in the relative scarcity of major new base metal projects. This could lead to short term supply/demand anomalies within the next few years which, in turn, could have a significant effect on metal prices, according to Mining Magazine (Jan. 1981). World Mining (Sept. 1980) noted that US mining strength is in open pit operations. A much lower tonnage is mined underground and is centralized in trona, uranium, lead, zinc, molybdenum, potash and, to a lesser extent, copper. The most notable increase in new underground mines has been in Wyoming's trona district where new mines are being developed and production will increase, the magazine said.