Annual Report 3 - New Mexico - Energy, Minerals and Natural ...

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84 COPPER: The copper mining sector in New Mexico continued to experience a decrease in production quantity and value in 2009. In 2009 copper production decreased 46.5 percent to 121.2 million pounds (Figure 7). Copper production value fell to $289.6 million, a 58.6 percent decrease from 2008 levels. New Mexico ranks third in domestic copper production after Arizona and Utah. New Mexico-produced copper is used in the manufacture of electrical components. Production (pounds) 800,000,000 600,000,000 400,000,000 200,000,000 0 New Mexico Copper Production and Value, 1989 - 2009 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Production Production Value Freeport-McMoRan Copper and Gold Inc., subsidiaries produce copper and byproduct metals at two mines in Grant County in southwest New Mexico: the Chino and Tyrone mines. The Chino Mine consists of the Santa Rita open pit, the 43,000 ton per day Ivanhoe Concentrator and a 150 million ton per day solvent extraction/electro winning (SX/EW) plant. Freeport is working on permitting a new 35-acre waste rock pile to facilitate future pit mining at Chino. The Tyrone Mine consists of a SX/EW plant and large open pit operations. The two other Freeport copper operations in New Mexico are both on standby status. The Continental Mine includes a 20-acre tailings pond that contains magnetite recovered by previous operators during the milling process. Freeport has been reducing the pond volume by selling magnetite to offsite buyers. Freeport-McMoRan submitted an application in spring 2010 to return its fourth New Mexico property, the Little Rock Mine, to operating status. Freeport is currently working on updating the Little Rock Closure/Closeout Plan and financial assurance. ENERGY, MINERALS AND NATURAL RESOURCES DEPARTMENT $800,000,000 $600,000,000 $400,000,000 $200,000,000 $0 Figure 7 Production Value ($)
Copper employment decreased 58.7 percent to 813 workers and payroll decreased 41.4 percent to $39.5 million. The decrease in copper employment and payroll can be attributed to the declining copper spot prices and resulting mine layoffs. Copper spot prices tumbled from $3.63 per pound in September 2008 to $1.49 in December 2008. Freeport-McMoRan announced in December 2008 it would suspend open pit mining and concentrator activities at Chino, while continuing copper production from its SX/ EW plant. The Chino mining suspension resulted in the layoff of approximately 600 workers in February 2009. Freeport also reduced mining at Tyrone by 50 percent in early 2009. The last layoff of this magnitude at New Mexican copper operations occurred in 2001-2002. Because of world-wide mine suspensions and closures, international copper supplies decreased as production stalled. The copper market tightened and prices began to recover in 2009, rising to $2.75 per pound in fall 2009 and $3.33 per pound in December 2009. By the end of 2009, Tyrone was operating at 80 percent of capacity. Because of improved market conditions, Freeport plans to restart mining operations at Chino in early 2011. Reclamation activities have continued at the copper mines during the economic downturn. Despite ongoing reclamation projects at Tyrone, Chino and Continental, reclamation employment in the copper sector decreased 59.8 percent to 98 workers. Freeport-McMoRan completed engineering designs and work plans for the reclamation of the majority of the inactive tailings impoundments at the Chino Mine. Reclamation of the tailings is scheduled to be completed in the summer of 2011. Freeport has been approved to extend the Groundhog No. 5 Stockpile reclamation completion date from 2009 to 2011. Reclamation activities at Tyrone have focused on the grading, cover and drainage reclamation work at the tailing impoundments. In 2009 there were two copper exploration projects permitted by the Mining Act Reclamation Program in Grant County: Galway Resources’ Lone Mountain Project and New Mexico General Minerals’ Gold Lake Project. New Mexico Copper Company was granted an exploration permit for the Copper Flat Project in Sierra County in November 2009. In September 2010, New Mexico Copper initiated the new mine permitting process with the submission of a Sampling and Analysis Plan for the Copper Flat Mine. MOLYBDENUM: New Mexico remains a major producer of molybdenum, ranking sixth in domestic molybdenum production. The state’s primary molybdenum producer is Chevron Mining Company’s Questa Mine and Mill in Taos County. The Questa operation, an underground gravity block cave mine, produces molybdenite concentrate (MoS2) and is one of three primary-producing molybdenum mines in the U.S. Molybdenum is also produced as a by-product of copper production at Freeport-McMoRan operations. ANNUAL REPORT 2010 85 Photo by: Freeport-McMorRan Gold and Copper, Inc. Over 4,000 acres have been reclaimed at Tyrone since reclamation activities started in 2003.
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Photo by: Mikal Altomare New Mexico
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Photo by: Mikal Altomare Photo by:
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Contents Message from Secretary Noe
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Organization Charts Energy Conserva
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values on forested, rangeland, and
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800 700 600 500 400 300 200 100 0 C
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ANNUAL REPORT 2010 Figure 3 11
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ANNUAL REPORT 2010 Figure 4 13
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monitoring and emergency response e
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The funding is equally distributed
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Number 120 100 80 60 40 20 0 1992 1
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In Thousands 25 20 15 10 5 0 25 20
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Organization ANNUAL REPORT 2010 Pro
Page 27 and 28:
ANNUAL REPORT 2010 Fernando Martine
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more energy dollars in our state th
Page 31 and 32:
Solar Market Development Tax Credit
Page 33 and 34:
New Mexico’s total installed wind
Page 35 and 36: in 2008 (latest available data), to
Page 37 and 38: 463) to the statutes have been the
Page 39 and 40: CERB program is jointly administere
Page 41 and 42: In 2004, ECMD facilitated the insta
Page 43 and 44: AMERICAN RECOVERY AND REINVESTMENT
Page 45 and 46: Table 2. ARRA Energy Efficiency and
Page 47 and 48: enewable energy and energy efficien
Page 49 and 50: 40% 35% 30% 25% 20% 15% 10% 5% 0% 1
Page 51 and 52: CARBON DIOXIDE EMISSIONS: Carbon di
Page 53 and 54: NEW MEXICO STATE FORESTRY Forestry
Page 55 and 56: Landowners and communities receive
Page 57 and 58: Forestry received and processed 29
Page 59 and 60: drafting land management plans, pro
Page 61 and 62: The New Mexico Forest Legacy Progra
Page 63 and 64: projects, workshops on forest and w
Page 65 and 66: SOCORRO DISTRICT - Catron, Doña An
Page 67 and 68: ANNUAL REPORT 2010 Figure 2 65
Page 69 and 70: ANNUAL REPORT 2010 Photo by: Carmen
Page 71 and 72: Mining and Minerals Division ANNUAL
Page 73 and 74: ACCOMPLISHMENTS ADVANCES IN MINE RE
Page 75 and 76: webpage continuosly improved based
Page 77 and 78: (CCBs) inter-layered with previousl
Page 79 and 80: create a public hazard due to possi
Page 81 and 82: New Mexico remains a leading United
Page 83 and 84: ^_ " XW XW !( ^_ ^_ ^_ ^_ Commodity
Page 85: Due to the closure of the McKinley
Page 89 and 90: Uranium recovery in New Mexico ceas
Page 91 and 92: copper mining in 2009, gold and sil
Page 93 and 94: Potash demand and prices fell at th
Page 95 and 96: Copar Pumice Company ceased pumice
Page 97 and 98: Aggregates are a high volume/low un
Page 99 and 100: Oil Conservation Division A Message
Page 101 and 102: OCD works with representatives from
Page 103 and 104: The division implemented Agreed Com
Page 105 and 106: Data and Statistics OVERVIEW: As of
Page 107 and 108: FY 2010 State General Fund Revenue
Page 109 and 110: State 36% State 17% Private 17% 200
Page 111 and 112: State Parks Division A Message from
Page 113 and 114: More New Mexico communities sought
Page 115 and 116: and combat the growing disconnect b
Page 117 and 118: instructor-led and on-line courses.
Page 119 and 120: Photo by: New Mexico State Parks Ph
Page 121 and 122: esource partnerships resulted in $2
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