Buried treasure: underground activity brings billions to the state.

AuthorMischel, Marie
PositionSpecial Report

Utah's mining industry is bringing to the surface more than silver and gold. Coal, potash, uranium, molybdenum, beryllium, rock aggregate and building stone are among Utah's underground treasures.

Utah's mining industry adds billions of dollars to the local economy. In fact, according to the Utah Geological Survey, nonfuel and solid energy mineral production was valued at $5.2 billion in 2011, including $2.6 billion for base metals, $1.2 billion for industrial minerals, $720 million for precious metals and $690 million for energy minerals (coal and uranium).

Kennecott Utah Copper alone produces about 300,000 tons of copper a year--97 percent of the copper mined in Utah--as well as 400,000 ounces of gold, 4 million ounces of silver and 30 million pounds of molybdenum, according to Kennecott.com.

Although the 1,900-acre Bingham Canyon Mine dominates the Oquirrh Mountain landscape, "the majority of mines in Utah are in rural areas and most of them are the small mines that are less than 10 or five acres," says Dana Dean, associate director over mining in the state's Division of Oil, Gas and Mining.

The level of mining activity depends heavily on the price that can be obtained for the product. "The market price will make or break a project, or some projects may have to run in the red to be available for when you can make the money in the market; Dean says. "That's always been the case with mining and other mineral activities."

What's Hot, What's Not

"Right now coal is experiencing a soft market, so there has been some reduction there; Dean says. "Most of the mines are staying at their current production rate, but a couple of them have either reduced production or have temporarily shut down."

Currently, 10 mines in Utah produce coal. Carbon and Emery counties have the most coal mines, one of which crosses into Sevier County; Kane County also has one.

Among the contributing factors for the soft coal market, Dean says, are the comparatively low price of natural gas and the number of power plants being converted from coal to natural gas. "It wouldn't have a huge economic impact on the state as a whole if things continue to slow down, but Carbon and Emery counties would be very hard hit if things continue to slow down much further--if they were shutting down mines and laying off more people she says.

Nevertheless, one coal mine recently was permitted but not has begun construction. "They're ready to go when the market changes." In contrast to coal...

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