Study Shows Mining Generates $9.6 Billion for Washington's Economy
SPOKANE, Wash.--(BUSINESS WIRE)--July 15, 1997--The mining industry had a combined
direct and indirect impact on the economy of Washington of $9.6 billion in 1995, according to a
new study released today by the Western Economic Analysis Center, Marana, Arizona.
``The study, Everything Begins With Mining - Mining and the American Economy, shows that
mining has an importance in the economy disproportionate to its size,'' Laura Skaer, Executive
Director of the Spokane based Northwest Mining Association said.
``Mining literally takes a part of nature that has little or no economic value and creates something of
value from it. Much of Washington's prosperity is due to an abundant supply of mineral resources,''
Skaer said. ``Mining clearly is one of the foundations of Washington's economic growth. Without
mining there would be no Boeing, no Kaiser, and no Microsoft.''
A major finding of the study is that people do not have to live in an obvious mining state or work
directly in the mining industry to benefit from mining. In fact, many residents, businesses and
governments in states with only small amounts of mining activity receive large economic gains from
mining in other states.
The study, conducted on behalf of the National Mining Association, for the first time, captures the
direct and indirect results in the economies of localities, states, regions and the Nation as mineral
resources and wealth circulates and recirculates.
According to the study's author, Dr. George F. Leaming, the Washington mining industry had a
direct economic impact on the state of $719 million, including $243 million in income for other
Washington businesses and $204 million in wages and salaries for the 4,200 men and women
employed directly by the industry.
The Washington mining industry also paid $35 million in state and local taxes and another $35.4
million in federal taxes. The value of minerals mined in Washington in 1995 totaled $780 million, the
study showed.
When the indirect economic impacts of mining in Washington are considered, the industry
accounted for personal income of $2.7 billion for 92,300 mining-related jobs; business income of
$5.15 billion; state and local taxes of $528 million and $1.8 billion in federal taxes.
Nationally, the domestic mining industry generated $48.4 billion directly to the U.S. economy in
1995. This total includes direct payments of $27 billion to American businesses; $14.5 billion in
personal income for Americans, including wages and salaries for the industry's 320,400 employees;
$3.5 billion in taxes and other revenues to the federal government; and $3.3 billion in taxes to state
and local governments.
As the industry's direct economic contributions circulate through the economy, the financial impacts
of mining are magnified. According to the study, mining's direct and indirect impact on the U.S.
economy in 1995 totaled $523.6 billion. This amount includes $295.7 billion in income for
businesses that support mining; $143.7 billion in personal income for the 5 million jobs supported
indirectly by mining; $56.9 billion in taxes and other revenue for the federal government; and $27.1
billion in state and local government taxes and revenues.
``To maintain the standard of living of its people and its place in the global economy, the nation will
continue to need minerals,'' Leaming said. ``Without mining, the ability of the U.S. economy to
meet the needs of its people and maintain its global position would be reduced severely. And so
would the abilities of 5 million Americans to meet their needs and those of their families.''
The Northwest Mining Association (NWMA) is a 103 year old, 2,900 member non-profit,
non-partisan trade association based in Spokane, Washington. NWMA's purpose is to support
and advance the mineral resource and related industries, to represent and inform members on
technical, legislative and regulatory issues, to provide for the dissemination of educational materials
related to mining, and to foster and promote economic opportunity and environmentally responsible
mining.
-0- Northwest Mining Association 10 N. Post St., Suite 414 Spokane, WA 99201-0772 (509)
624-1158 Fax: (509) 623-1241
Contact:
Laura Skaer, 509/624-1158
Bob Webster, 202/463-2664 |
