USGS: U.S. Nonfuel Mineral Production Up 6% by Value in 2017

Researched by Industrial Info Resources (Sugar Land, Texas)--U.S. mines produced an estimated $75.2 billion of raw materials in 2017, up 6% from 2016, according to the U.S. Geological Survey (USGS). Nevada was the leading producer in terms of value, followed by Arizona. Industrial Info is tracking more than $79 billion in active U.S. mining projects, including more than $21 billion worth that are expected to kick off construction this year.

U.S. nonfuel mineral production last year included industrial minerals such as aggregates and metals, according to the USGS's newly released annual Mineral Commodity Summaries report.

Increased natural gas and oil production benefitted some of the industrial mineral sectors, the USGS said, but slower construction activity resulted in stagnant production in industrial minerals used in construction.

Nevada led the rest of the nation, with the mining of $8.68 billion in nonfuel minerals, including gold, copper, stone (crushed), sand and gravel (construction) and silver. Industrial Info is tracking Nevada mining projects worth $12.45 billion, including $209 million worth that are expected to be completed this year. One of those is Newmont Mining Corporation's (NYSE:NEM) (Denver, Colorado) $45 million Twin Underground project in northern Nevada. Commercial production at the portal mine beneath the Twin Creek's Vista surface mine is expected in mid-2018. The expansion is expected to average between 30,000 and 40,000 ounces per year for the first five years (2018 to 2022). For more information see Industrial Info's project report and December 11, 2017, article - Newmont Mining Increases 2018 Gold Production Guidance, Maintains Capex.

Arizona came in second last year, having mined or produced $6.61 billion in nonfuel minerals, including copper, sand and gravel (construction), molybdenum concentrates, cement (Portland) and stone (crushed). Global copper miner Freeport-McMoRan Incorporated (NYSE:FCX) (Phoenix, Arizona) recently reported plans to boost capital expenditures in 2018 by 50% from last year, with a focus on developing the $850 million Lone Star oxide project in eastern Arizona. Located seven miles from the company's Safford mine, the project would have reserves of 4.4 billion pounds of copper. The oxide material would be transported to the Safford site for processing. Initial production from the Lone Star oxide ores could begin in 2021. For more information on the Lone Star project, see Industrial Info's project report and January 30, 2018, report - Freeport-McMoRan to Boost Capex 50% in 2018.

Nine other states each produced more than $2 billion worth nonfuel mineral commodities in 2017, including Texas, Alaska, California, Minnesota, Florida, Utah, Missouri, Michigan and Wyoming.

Thirteen mineral commodities produced in the U.S. were worth more than $1 billion each in 2017, according to the report. The estimated value of U.S. industrial minerals production in 2017 was $48.9 billion, 3% more than that of 2016. U.S. metal mine production in 2017 was estimated at $26.3 billion. However, U.S. production of primary aluminum decreased for the fifth consecutive year, declining by about 12% in 2017 to the lowest level since 1951.

The report also noted that the U.S. continues to rely on foreign imports for many minerals. The U.S. was 100% import-reliant on 21 mineral commodities, including rare earths, manganese, niobium and vanadium. In December, President Donald Trump took note of a government report pointing out U.S. reliance on foreign sources for several mineral commodities and signed an order aimed at boosting domestic production of minerals used in everything from computer chips to batteries to equipment used by the military. For more information, see December 28, 2017, article - Presidential Order Could Give Boost to U.S. "Critical Minerals" Miners and January 5, 2018, article - Critical-Minerals Mining Projects Exceed $120 Billion Worldwide.

Click on the image at right for a USGS map showing sources of mineral imports to the U.S.

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