Mining in Utah: past, present, and future.

• Author: Gilchrist, Rose

MINING IN UTAH

Mining has contributed significantly to the social and cultural diversity of Utah. Jobs and riches lured immigrants from southern and eastern Europe and Asia. Mining has been and continues to be a vital component in Utah's economy.

Charles W. Berry, professor of mining engineering at the University of Utah, cited a paper he just completed which estimated about $2 billion is generated by the mining industry. The revenue from metals is about $1.1 billion, and 4/10ths of a billion dollars for industrial minerals and coal represents about a half a billion dollars.

In terms of employment, according to Berry, another important factor in the mining sector is the large multiplier effect. "About 10,000 are employed in the industry. The average wage in the minerals industry is $34,000 per year, while the average overall is $19,000." These high-paying jobs, Berry said, create a lot of ripple benefits to the communities.

"As far as taxes are concerned, the minerals industry and its employees are responsible for about 10 percent of the taxes paid in the state."

Basically seven types of mining activities have played a part in Utah's past and are shaping its present and future. They are gold, silver, copper, coal, uranium, industrial minerals (magnesium, gilsonite, potash, beryllium, etc.), and building materials (sand, clay, cement, stone, gypsum).

Gold Rush

According to Utah State Historical Society historians, the beginnings of commercial mining in Utah are traced to Col. Patrick E. Connor and his troops who arrived in the Salt Lake Valley in October 1862 to establish Fort Douglas during the Civil War. Connor set about exploring and developing the territory's mineral wealth. He sent the men under his command out to prospect, and in 1863 they began locating deposits, staking claims, and establishing mining districts. Placer mining in Bingham Canyon began in 1865, and by 1871 a reported $1 million had been taken from these claims.

Lode mining was more successful. Mercur, Tooele County, began yielding rich production in the 1890s when a cyanide processing plant was built there. Gold Hill on the state's western border and Kimberly in Piute County also enjoyed short and gaudy careers.

Despite the short-lived nature of these early rushes, however, Utah has throughout its history been an important gold producer. In 1944 Utah gold amounted to 34.5 percent of the U.S. production. In 1983, Utah mines produced 238,459 troy ounces of gold valued at over $100 million and 12.2 percent of the nation's output. But most of Utah's gold has not been the primary product of gold mines, but rather the by-product of copper, silver, lead, and zinc operations.

There's Still Gold in the Hills

According to Greg Boyce, director of Government and Public Affairs for Kennecott Corp., 1991 gold production at the Bingham copper mine is forecast at 420,000 ounces of gold.

In addition, the 1990s seem to be developing as a new gold-rush era, due to recent technological developments in processing that allow the recovery of microscopic gold. Berry said "It's very, very fine. The process was developed about 1950, and the present primary gold operations wouldn't have been possible 50 years ago."

Berry also noted the rising price of gold since President Richard Nixon released it for public trading in 1971. It soared from around $50 an ounce to $150, and today it traders for $360 to $400 an ounce. These developments have spurred new activity in primary gold mining.

Kennecott Corp. expects to yield 120,000 ounces from its Barneys Canyon gold mine in the Oquirrhs in 1991. Getty Minerals reopened the Mercur mine with a new processing facility in 1982, and Berry forecast their 1991 mercur output at 120,000 ounces. Mercur was acquired by Getty Minerals in the mid 1980s. "Tenneco Minerals just opened up a gold mine about 40 miles northwest of St. George," he added and forecast this year it would produce 40,000 ounces of gold. These combined operations have made Utah one of the top five producers of gold in the nation today, according to the Utah Mining Association.

Market Factors

Things are looking pretty bright, according to Berry. "There's a lot of exploration going on, and there are a lot of possibilities in the Oquirrhs." The current rush may just be starting, depending on how gold fares on the international commodities market.

Utah Mining Association spokesman Jack Christensen was more cautious. He said the metals industry faces the challenge of increasing costs and environmental regulations. "Some operations will likely to be unable to meet increasing air, water, and ground regulations and could close."

Silver: The Past

Silver was the most important early metal mined in Utah...