Mineral Commodity Summaries 2011 - Environmental and Energy ...

SIGNIFICANT EVENTS, TRENDS, AND ISSUES7In 2010, the value of mineral production increased in theUnited States, suggesting that the domestic nonfuelminerals industries, especially the metallic mineralsindustries, were beginning to feel the effects of recoveryfrom the economic recession that began in December2007 and lasted well into 2009. Some major miningsectors continued to struggle, however, with noincreases in production or value of production. Mineralsremained fundamental to the U.S. economy,nevertheless, contributing to the real gross domesticproduct (GDP) at several levels, including mining,processing, and manufacturing finished products.Minerals’ contribution to the GDP was more than that of2009, but below that of 2008. Trends in other sectors ofthe domestic economy were reflected in mineralproduction and consumption rates. For instance,continued declines in the construction industry during2010 were reflected in further reductions in theproduction and consumption of cement, constructionsand and gravel, crushed stone, and gypsum, which areused almost exclusively in construction. Performancesin other sectors were mixed and less easilycharacterized.The figure on page 4 shows that the primary metalsindustry and the nonmetallic minerals products industryare intrinsically cyclical. Growth rates are directlyaffected by the U.S. business cycle as well as by globaleconomic conditions. The U.S. Geological Survey(USGS) generates composite indexes to measureeconomic activity in these industries. The coincidentcomposite indexes describe the current situation usingproduction, employment, and shipments data. Theleading composite indexes forecast major changes inthe industry’s direction by such variables as stockprices, commodity prices, new product orders, and otherindicators, which are combined into one gauge. Foreach of the indexes, a growth rate is calculated tomeasure its change relative to the previous 12 months.In 2010, the U.S. primary metals industry was still in therecovery that began in 2009. Although industry activityslowed in 2010, the relatively high leading index growthrate suggested that the recovery in primary metalsactivity is likely to continue into 2011. The recovery inthe nonmetallic mineral products industry is also likely tocontinue in 2011, although activity growth likely will beslower than in the primary metals industry.As shown in the figure on page 5, the estimated value ofmineral raw materials produced at mines in the UnitedStates in 2010 was $64 billion, a 9% increase from $59billion in 2009. Net exports of mineral raw materials andold scrap contributed an additional $16 billion to theU.S. economy. The domestic raw materials, along withdomestically recycled materials, were used to processmineral materials worth $578 billion. These mineralmaterials, including aluminum, brick, copper, fertilizers,and steel, and net imports of processed materials (worthabout $28 billion) were, in turn, consumed bydownstream industries with a value added of anestimated $2.1 trillion in 2010, representing about 14%of the U.S. GDP, the same as in 2009.The estimated value of U.S. metal mine production in2010 was $29.1 billion, about 34% more than that of2009. Principal contributors to the total value of metalmine production in 2010 were gold (30%), copper(29%), iron ore (15%), molybdenum (12%), and zinc(6%). The value of metal production increased by 34%.With few exceptions, metal prices increased in 2010.Gold continued its upward trajectory, reaching an alltimehigh of $1,424.07 per troy ounce in mid-November2010. The estimated value of U.S. industrial mineralsmine production in 2010 was $34.9 billion, 6% less thanthat of 2009, and was dominated by crushed stone(33%), construction sand and gravel (17%), and cement(16%). Although more types of industrial mineralsshowed increased mine production and value thandecreased, the dominant materials continued to decline,but at a slower pace than in 2009. In general, industrialminerals prices were relatively stable, with modest pricevariations.Mine production of 13 mineral commodities was worthmore than $1 billion each in the United States in 2010.These were crushed stone, gold, copper, constructionsand and gravel, cement, iron ore (shipped),molybdenum concentrates, salt, lime, clays (allvarieties), zinc, soda ash, and phosphate rock, listed indecreasing order of value.The figure on page 6 illustrates the reliance of theUnited States on foreign sources for raw and processedmineral materials. In 2010, imports accounted for thesupply of more than one-half of U.S. apparentconsumption of 43 mineral commodities, and the UnitedStates was 100% import reliant for 18 of those. U.S.import dependence has grown significantly during thepast 30 years. In 1978, the United States was 100%import dependent for 7 mineral commodities, and morethan 50% import dependent for 25 mineral commodities.In 2010, the United States was a net exporter of 19mineral commodities, meaning more of thosedomestically produced mineral commodities wereexported than imported. That figure has remainedrelatively stable, with net exports of 18 mineralcommodities in 1978.In 2010, nine States each produced more than $2 billionworth of nonfuel mineral commodities. These Stateswere, in descending order of value—Nevada, Arizona,Utah, Minnesota, Alaska, California, Texas, Missouri,and Florida. The mineral production of these Statesaccounted for 55% of the U.S. total output value (table3).In fiscal year 2010, the Defense Logistics Agency, DLAStrategic Materials (DLA) (formerly Defense NationalStockpile Center) sold $165 million of excess mineralmaterials from the National Defense Stockpile (NDS).Additional detailed information can be found in the“Government Stockpile” sections in the mineralcommodity reports that follow. Under the authority of theDefense Production Act of 1950, the U.S. GeologicalSurvey advises the DLA on acquisition and disposals ofNDS mineral materials. At the end of the fiscal year,