Alaska's mining industry: metal prices (2000-2010).

• Author: Cox, William
• Position: Alaska Trends

While the oil industry is the most prominent industry within the Alaska economy (providing approximately 90 percent of State revenues in 2010), the Alaska mining industry also has a significant impact on the State's financial outlook (providing approximately 0.69 percent of State revenues in 2010). Despite its small contribution to State revenues, the Alaska Department of Commerce reports that Alaska's mining industry is valued at more than $1 billion annually and is growing rapidly. In addition, the Alaska Department of Labor reports that during February 2011, the mining industry employed approximately 15,100, substantially more than the oil and gas industry's 12,900.

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The graph shows metal prices for gold, silver and zinc from 2000 to 2010, indexed to 100 in the base year 2000. Although the rising gold prices have received significant amounts of press coverage, the percentage of increase in the price of silver has outpaced the percentage of increase in the price of gold since 2000, increasing 493 percdent versus 339 percent for gold. The price for zinc, although fluctuating widely between 2005 and 2008, increased 92 percent since 2000. Based on the categorization of Alaska's mining industry as a success story by the Department of Commerce, the industry's rapid growth, and substantial price increases in metals shown in the graph, the importance of the mining industry for Alaska's economy seems as though it will only increase. However, actual results in the mining industry are also reliant upon demand for the metals, State and federal regulations, tax policy and a variety of other variables, which cannot be predicted.

Sources: Crude Oil Production: http://doa.alaska.gov/ogc/

Spot Price: http://wwwotax.alaska.gov/programs/oil/prevailing/ans.aspx

ALASKA TRENDS Indicator Units GENERAL Personal Income-Alaska US $ Personal Income-United States US $ Consumer Prices--Anchorage 1982-1984 =100 Consumer Prices--United States 1982-1984=100 Bankruptcies Alaska Total Number Filed Anchorage Total Number Filed Fairbanks Total Number Filed EMPLOYMENT Alaska Thousands Anchorage & Mat-Su Thousands Fairbanks Thousands Southeast Thousands Gulf Coast Thousands Sectoral Distribution-Alaska Total Nonfarm Thousands Goods Producing Thousands Services Providing Thousands Mining and Logging Thousands Mining Thousands Oil & Gas Thousands Construction Thousands Manufacturing Thousands Seafood Processing Thousands Trade/Transportation/Utilities Thousands Wholesale Trade Thousands Retail Trade Thousands Food & Beverage Stores Thousands General Merchandise Stores Thousands Trans/Warehouse/Utilities Thousands Air Transportation Thousands Truck Transportation Thousands Information Thousands Telecommunications Thousands Financial Activities Thousands Professional & Business Services Thousands Educational & Health Services Thousands Health Care Thousands Leisure & Hospitality...