Production down, value up in Nevada's $2.4 billion gold industry
By SCOTT SONNER
ASSOCIATED PRESS
>>Nevada's 7.7 million ounces of gold dwarfs the next largest U.S. gold producer, which in 2001 was Utah with 592,000 ounces, followed by Alaska, 536,000; California, 240,000 ounces; and Colorado, 214,000 ounces; according to the U.S. Geological Survey.<<
Production down, value up in Nevada's $2.4 billion gold industry
RENO, Nev. (AP) - Gold production declined 5 percent in Nevada last year, but higher prices added value to the state's $2.4 billion industry, and exploration is on the rise, state officials said Thursday.
Nevada gold mines produced 7.731 million ounces of gold worth $2.4 billion in 2002, about a 9 percent increase in value from the previous year as the average price per ounce rose from $271 to $310, the Nevada Division of Minerals said.
The largest U.S. gold producer, Nevada ranks third in the world behind South Africa and Australia.
Nevada also leads the nation in silver production, totaling 13.557 million ounces last year, down 22 percent from 2001. The value of the silver declined about 18 percent, from $76 million in 2001 to $62 million last year, the state said.
An additional $300 million worth of mining - from clays and gypsum to limestone, magnesium, opals, sand and turquoise - brought the total value of commodities mined in Nevada last year to $2.8 billion, the annual report said.
"Although precious metal production declined in 2002, Nevada's mining companies continue to make a substantial contribution to the state's economy," said Alan Coyner, administrator of the division under the state Commission on Mineral Resources.
"Exploration activity increased significantly in 2002, which should lead to additional discoveries and production in the future," he said.
Russ Fields, president of the Nevada Mining Association, said the numbers reflect "another very strong year for Nevada gold mining.
"Even though total production is down a bit, 7.7 million ounces is still very strong," he said Thursday from Carson City.
"The difference in the price from $310 to $271 is a tremendous help," Fields said.
"That spurs the exploration activity and that helps with profitability and seems to flow directly into benefits for the rural communities in the state where most of the mining is," he said.
State officials are compiling exploration surveys from mining companies. Preliminary indications are that expenditures in 2002 were greater than anticipated and more than the previous year, deputy administrator Doug Driesner said Thursday.
"We're also seeing an increase in the number of mining claims in counties, up about 5 percent from 2001 to 2002," he said.
Nevada's 7.7 million ounces of gold dwarfs the next largest U.S. gold producer, which in 2001 was Utah with 592,000 ounces, followed by Alaska, 536,000; California, 240,000 ounces; and Colorado, 214,000 ounces; according to the U.S. Geological Survey.
lasvegassun.com |
