To:Alex who wrote (536)
From: John Barendrecht Tuesday, Jul 15, 1997 12:13 PM
Respond to of 82910
Study Shows Mining Generates $524 Billion for U.S. Economy
WASHINGTON, July 15 /PRNewswire/ -- The domestic mining industry had a combined direct and indirect impact on the economy of the United States of nearly $524 billion in 1995, according to a new study released today by the Western Economic Analysis Center on behalf of the National Mining Association.
The study, Everything Begins With Mining -- Mining and the American Economy, shows that mining has an importance in the economy disproportionate to its size, NMA President and CEO Richard L. Lawson said.
``Mining literally takes a part of nature that has little or no economic value and creates something of value from it. Much of America's prosperity is due to an abundant supply of mineral resources,'' Lawson said.
``This study, 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 circulate and recirculate,'' Lawson said.
``When you look beneath the surface, everything begins with mining and we're just scratching the surface today,'' Lawson said. ``We want to track the resources in all dimensions and at every step. This study looks at the initial step, from the mine to the first customer. Subsequent studies will follow the added value of mined products through the manufacturing process to finished consumer goods, which will show the comprehensive economic impact of mining.''
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.
According to the study's author, Dr. George F. Leaming, 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.
Among the 50 states, California received the greatest economic benefit from the mining industry, according to the study. California ranked first in combined direct and indirect economic benefit from the mining of solid minerals, even though it ranked only fifth in the value of mineral production.
The California economy gained more than $52 billion and 469,000 jobs in 1995 as a result of the combined direct and indirect impacts of mining throughout the United States, the study showed.
``California's gain came not only as a result of the state's role as a minerals producer, but also because of its role as a manufacturing, trade, service and financial center for much of the western United States,'' Leaming said.
New York received the second greatest gain with a total boost to its economy of more than $31 billion and more than 227,000 jobs. Texas was not far behind with a gain of almost $29 billion and more than 308,000 jobs as a direct and indirect result of mining in the United States.
Among the top 20 states that gained the most personal, business and government income directly and indirectly from mining, 12 (California, New York, Pennsylvania, Michigan, Ohio, Illinois, Indiana, New Jersey, Massachusetts, North Carolina, Virginia, and Georgia) received more business income from mining in other states, although they had significant mining industries of their own.
Among the top 20 states, only two (California and Arizona) are in the public lands areas of the West, traditionally thought of as being the center of American mining. Six states (Ohio, Illinois, Indiana, Michigan, Minnesota and Missouri) are in the Midwest, while eight (Kentucky, West Virginia, Texas, Florida, North Carolina, Georgia, Virginia and Alabama) are in the South. Another four (New York, Pennsylvania, New Jersey and Massachusetts) are in the Northeast.
The study also showed that the total benefit to the nation's economy was nearly nine times the $60 billion value of solid minerals mined in the United States in 1995.
Moreover, the total number of American jobs created both directly and indirectly by the domestic mining industry was more than 15 times the number of workers directly involved in mining. The total personal income generated from mining was enough to pay the wages of nearly 5 million American workers, only 6 percent of whom were actually employed in mining.
``If mining were to cease within the United States, those nearly 5 million people and their families would lose that income, but the nation would still require minerals for making automobiles and other consumer products, for housing and highways, for farming, for electricity generation and countless other uses,'' Leaming said.
``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.''
