The Role Of Industrial Minerals In The Us Economy

No economic activity would take place without human ingenuity, driven by our needs and wants. Economic activity is made possible by the energy from fossil and other energy sources, our technological hardware, the buildings and infrastructure made from materials such as metals, plastics, wood, water, and numerous industrial minerals. Industrial minerals are difficult to define; however, they generally include utilitarian minerals other than metals and fuels. Some of the industrial minerals form an exception to this categorization and, as explained elsewhere in this book, belong to more than one category because of the manner in which they are used. Industrial minerals are so numerous, and their applications so ubiquitous that they often do not receive the attention given to metals or fuels. Nevertheless, without industrial minerals, many of our most fundamental economic activities such as construction of our cities and towns, control of floods, transportation of our people, the search for minerals, the smelting of metals, and the delivery of supplies of clean water would be impossible. How then do we assess the economic importance of such a variety of materials lumped together under the general designation of industrial minerals? The price per ton or the total amount consumed do not satisfactorily explain the relative value of these materials to the economy. For example, the current price of limestone is about $5/t and the price of fluorspar is about $190/t. However, nearly 1.1 Gt of limestone, valued at about $5.5 billion, are consumed in the United States annually, compared with 590 kt of fluorspar, valued at about $1 12 million. It would not, however, be accurate to conclude that the mineral with the higher total value is always more economically important. Many other questions must be answered before making judgments of this type. These questions include how many people are employed in the production, processing, and distribution of the mineral? How is the mineral used? Is it partly or entirely imported? Where do the imports come from? How is the mineral transported? Is the mineral considered critical to national security? Is there a substitute material available in case the mineral supply is interrupted? Where would the substitute be produced? What would be the basic material from which the substitute will be produced? Even when these questions have been answered satisfactorily, the economic importance of the mineral is not completely known until the consuming sectors are studied as well. For example, even though the manufacture of fighter aircraft is vital to the national security, it employs only a fraction of the number of people employed in the housing and construction industry or the automobile industry or the appliance industry. Mineral commodities consumed in these latter sectors of the economy are more significant than those consumed in the production of fighter aircraft, because nearly two-thirds of the Gross Domestic Product (GDP) depends on the purchasing power of individual consumers. In comparison, the entire defense budget accounts for only 6% of the GDP. There is no easy way to present the importance of industrial minerals to the US economy because most minerals have diverse applications and products made from industrial minerals often con- tribute to the production of other goods and services. One way of highlighting the value of a mineral would be to relate it to the GDP reported by categories such as construction, machinery, stone, clay and glass products, electrical and electronic equipment, paper and allied products, and chemicals and allied products. These GDP categories represent industries fundamental to the economy totaling $644 billion, or about 12% of the GDP in 1990. However, these categories are not convenient for discussion of the many minerals that are used in our complex economy. In a general way, minerals are the 5% of our economy that make the other 95% possible. This chapter, therefore, discusses a selected few industrial minerals to illustrate their importance to various sectors of the economy.