21222 Gold & Silver Ore Mining in the US Industry Report
IBISWorld Industry Report 21222
Gold & Silver Ore Mining in the US
June 2012
Brian Bueno
Gold digger: Profit will sink as the economic recovery adversely affects gold prices
2 About this Industry
2 Industry Definition 2 Main Activities 2 Similar Industries 2
Additional Resources
4 Industry at a Glance
5 Industry Performance
5 Executive Summary 5 Key External Drivers 7 Current Performance 9
Industry Outlook
11 Industry Life Cycle
13 Products & Markets
13 Supply Chain 13 Products & Services 14 Demand Determinants 15 Major Markets
16 International Trade 18 Business Locations
21 Competitive Landscape
21 Market Share Concentration 21 Key Success Factors 22 Cost Structure Benchmarks 23 Basis of Competition 24 Barriers to Entry 25 Industry Globalization
26 Major Companies
26 Barrick Gold Corporation 27 Newmont Mining Corporation 28 Rio Tinto Group 30 Kinross Gold Corporation
32 Operating Conditions
32 Capital Intensity 33 Technology & Systems
33 Revenue Volatility 34 Regulation & Policy 35 Industry Assistance
36 Key Statistics
36 Industry Data 36 Annual Change 36 Key Ratios
37 Jargon & Glossary
https://www.360docs.net/doc/8c1233174.html, | 1-800-330-3772 | info @https://www.360docs.net/doc/8c1233174.html,
Firms in this industry mine gold and silver bearing ores. Mining includes the development of mine sites and the on-site processing of ore into a concentrate or bullion. Firms typically retain ownership of the
semi-processed gold or silver product and pay for further refining on a
toll-charge basis. The refining process is included as part of the copper, zinc and lead refining industry (IBISWorld report 33141).
The primary activities of this industry are Gold ore mining Silver ore mining Gold ore beneficiation Silver ore beneficiation
Production of gold and silver bullion, dore and concentrates
21221 Iron Ore Mining in the US Firms in this industry mine iron ore.
21223 Copper, Nickel, Lead & Zinc Mining in the US Firms in this industry mine base metals.
21229 Molybdenum & Metal Ore Mining in the US
Firms in this industry mine a range of metallic minerals, including molybdenum.33141 Copper, Zinc & Lead Refining in the US Firms in this industry smelt and refine base metals.
Industry Definition
Main Activities
Similar Industries
Additional Resources
About this Industry
For additional information on this industry https://www.360docs.net/doc/8c1233174.html, https://www.360docs.net/doc/8c1233174.html,
https://www.360docs.net/doc/8c1233174.html,
The National Mining Association https://www.360docs.net/doc/8c1233174.html,
The USGS Mineral Resources Program
The major products and services in this industry are Gold bullion Gold dore
Gold ore and concentrates Silver bullion Silver dore
Silver ore and concentrates
About this Industry
https://www.360docs.net/doc/8c1233174.html, US Census Bureau
https://www.360docs.net/doc/8c1233174.html,
US International Trade Commission https://www.360docs.net/doc/8c1233174.html,
US Securities and Exchange Commission
Additional Resources continued
I BISWorld writes over 700 US industry reports, which are updated up to four times a year. To see all reports, go to https://www.360docs.net/doc/8c1233174.html,
Key Statistics Snapshot
Industry at a Glance
Gold & Silver Ore Mining in 2012Industry Structure
Life Cycle Stage Mature Revenue Volatility High Capital Intensity High Industry Assistance Low Concentration Level
High
Regulation Level Heavy Technology Change Medium Barriers to Entry High Industry Globalization Medium Competition Level
High
Revenue
$14.1bn Profit
$6.3bn
Exports
$480.7m Businesses
145
Annual Growth 12-17
2.1%
Annual Growth 07-12
16.2%
FOR ADDITIONAL STATISTICS AND TIME SERIES SEE THE APPENDIX ON PAGE 36
Key External Drivers World price of gold
The international gold price is positively
correlated to industry performance, with
higher gold prices driving up revenue.
The price is set by the interaction
between supply and demand, with
investor demand for gold increasing
during periods of economic trouble and
uncertainty. This driver is expected to
increase over 2012, representing a
potential opportunity for the industry.Investor uncertainty
Gold has long been regarded as a safe investment. When investors are seeking less-risky investments, demand for gold increases. Therefore, investor uncertainty is positively correlated with industry performance. This driver is expected to increase decrease slightly over 2012 as the US economic recovery gains steam, despite continued concerns over Europe.
Executive Summary In 2011, US production of mined gold
and silver ore reached its lowest point
in almost twenty years, but the US
Gold and Silver Ore Mining industry
achieved record-high revenue. This
apparent contradiction reflects the
power precious metal prices, which are
traded on world financial markets,
have on industry performance. Over
the five years to 2012, gold prices and
industry revenue are projected to
climb at annualized rates of 18.6% and
16.2%, respectively. The increase has
been driven by growing global demand
from investors seeking a safe
investment after the recent economic
downturn. In 2012, revenue is
expected to jump an additional 6.3% to
$14.1 billion as prices climb due to
recessionary conditions in Europe and
continued disappointment in the US
economic recovery.
On the other hand, demand from
jewelry manufacturing, the industry’s
primary domestic market segment, has
decreased in recent years because of
price increases and declining consumer
demand. In fact, jewelry’s domestic
share of industry revenue is currently
56.1%, down from 68.0% in 2009.
However, investment demand has
grown tremendously, especially in the
global market, where investment
demand in gold is almost 40.0%.
As demand grows domestically and
internationally, producers are
attempting to boost production to take
advantage of high prices. However, a
lack of investment in exploration and
mine development in the 1990s and
early 2000s has made it difficult for
producers to catch up. Gold production
dropped consistently from 2001 to
2009, but managed to increase over
2010 and 2011 because of recent
investments in production. Over 2012,
US gold production is expected to jump
a further 3.2% to 245 metric tons. Silver
production is expected to remain
relatively stable after resource depletion
caused significant drops in the late
1990s. The four largest firms, which
account for 74.9% of industry revenue,
have invested in mine-expansion
projects to reap the benefits of high gold
and silver prices. Over the five years to
2017, US economic growth is expected
to ramp up, thereby easing some of the
upward pressure on gold and silver
prices. As a result, industry growth is
projected to slow to an average annual
rate of 2.1% to $15.6 billion.
Industry Performance
Executive Summary | Key External Drivers | Current Performance Industry Outlook | Life Cycle Stage
G old prices will fall as the economy recovers, causing revenue to grow slightly through 2017
Key External Drivers continued Demand from jewelry manufacturing
Jewelry manufacturers are the primary
users of gold and silver. An increase in
demand from jewelry manufacturers will
positively affect this industry. This driver
is expected to increase slightly over 2012.
World price of silver
The international price for silver tends
to reflect the balance between supply
and industrial demand. Industry
accounts for the bulk of silver usage, but
investment demand is a growing
demand source. This driver is expected
to decrease over 2012.
Regulation for the mining sector
Industry performance is sensitive to
changes in government regulation
relating to mining. In particular,
environmental concerns may halt a
mining project or lead to higher costs as
these concerns are met. This driver is
expected to remain stable during 2012,
but continues to pose a potential threat
to the industry.
Price movements Gold sales account for 91.0% of industry
revenue, making the price of gold a
significant driver. The price per troy
ounce of gold is expected to average
$1,634 in 2012, marking a 4.4% jump
from 2011. In 2011 alone, the price soared 27.7%. Before that, in 2010, the average yearly price of gold surged
26.1%. The global economic downturn and resulting flight of capital to gold, which is widely regarded as a safe haven during periods of financial upheaval, have driven the price increases over the past few years. The recent geopolitical unrest in the Middle East and Northern Africa, fears of surging crude oil and commodity prices, and economic uncertainty in US and European markets fueled much of the gold price growth in 2011. In 2012, investment demand is expected to continue mounting, with some European countries dipping into recession along with continued weakness in the US economy and political movements concerning US and European debt and budgets.
Investors seeking safe investments flock to gold based on the hope that its value will rise or at least be maintained. This growing demand is especially evident in the rising popularity of gold exchange-traded funds (ETFs), which allow investors to purchase gold ETF shares without worrying about physical storage or insurance. Investment in gold ETFs and similar products reached a record high in 2008 and then doubled in 2009.
As opposed to gold, silver is tied more closely to the industrial sector and represents only 9.0% of industry revenue. Industrial demand for silver has declined modestly due to weak economic activity, but investment demand for silver has been increasing. The price of silver has increased at a five-year annualized rate of 19.4% since 2007, with a slight drop in 2009 due to the recession and decreased industrial activity. Many of the same factors affecting gold prices have boosted silver prices, including growing investor demand. Rising demand for silver began in 2006 when a silver ETF was first established. In 2012, the price of silver is expected to contract slightly by 7.5% to average $32.60 per troy ounce, following a 74.5% surge from the previous year.
Internationally, investment demand exceeded jewelry demand for the first
Current Performance The Gold and Silver Ore Mining industry
is one of the few industries that has
benefited from the economic crisis and
turbulence of recent years. From 2007 to
2012, industry revenue is projected to
grow at an average annual rate of 16.2%
to total $14.1 billion. The rapid and
continued rise in gold prices, which have
risen at an average yearly rate of 18.6%
since 2007, has been the main cause for
revenue and profit growth. In fact,
increased demand from domestic and
international investors drove gold prices
to an all-time high of $1,895 per troy
ounce in September 2011. Despite
growing demand, production has
dropped since 2000, lowering supply and
further increasing prices. However, gold
and silver production increased in 2010
and 2011 as mining companies attempted
to benefit from the current high prices.
By 2012, strong investor demand will
drive prices up an additional 4.4%. This
increase in prices, coupled with rising
production over the year, will boost
revenue 6.3% in 2012.
D emand from domestic
and international investors
has driven gold prices up
Price movements continued time in 2009. Growing investment
demand and consumption swelled prices
enough for jewelry demand to drop,
causing jewelry manufacturing’s
domestic share of industry revenue to fall
from 68.0% in 2009 to 56.0% in 2010.
The downward trend in jewelry demand
is compounded because investors are
more likely to interpret rising gold and
silver prices as a sign that prices will
increase further. Meanwhile, jewelry
purchases have been put on hold as
manufacturers and consumers delay
buying until prices drop.
Production and industry size While gold and silver prices have risen
strongly, those increases have failed to
translate into a substantial increase in
output during the five years to 2012 due
to a lack of prior exploration and
development activity in production.
Gold production is projected to increase
at an average annual rate of 0.5% to 245
metric tons over the five years to 2012.
Production increased for the first time
in a decade in 2010 and recorded
another uptick of 2.6% in 2011. Silver
output has decreased at an annual rate
of about 1.9% to 1,162 metric tons over
the five years to 2012.
Low gold prices in the late 1990s and
early 2000s reduced interest in gold
exploration and the development of new
mines. As a result, there were
insufficient new projects to replace
depleted mine reserves. With gold and
silver prices at all-time highs, there is
renewed interest in new mining
operations like the extension of the
Cortez Hills mine in Nevada, which was
completed in 2010. Cortez Hills and
other newly developed mining
operations helped increase gold output
over 2011 and into 2012.
However, some mine developments
have faced setbacks due to regulations
and environmental opposition. For
example, the Cortez Hills mine
expansion by Barrick Gold Corporation
was recently the subject of legal action.
Opponents of the project had sought an
injunction to stop operations due to
environmental concerns. The federal
Bureau of Land Management issued a
Record of Decision (ROD) in March 2011
approving the Supplemental
Environmental Impact Statement for the
Cortez Hills mine. The ROD removed
restrictions in place due to the
injunction and enabled the operation to
immediately revert to its original scope.
Despite renewed interest in gold and
silver mining, the number of enterprises
is estimated to increase at a moderate
yearly rate of 0.9% to 145 from 2007 to
2012. In comparison, there were more
than 200 firms operating in the industry
a decade ago. The decrease in
enterprises over the past decade has
occurred as large producers have
acquired smaller ones and then merged
among themselves in search of
economies of scale. However, more
recent enterprise growth has occurred
because firms have entered the industry
through mining, processing and loading
operations due to increased demand..
R ising gold and silver prices
have failed to translate
into increased output
Weak production Total US gold production for 2013 is
forecast to decline slightly to about 239
metric tons as falling prices encourage
producers to scale back production and
costs to maintain profit margins. New
gold-mining projects are anticipated to
begin in the United States during the next
few years, but they will fail to offset the
impact of mine closures. Furthermore, depleting resources nationwide will keep production low and drive producers to invest in international locations. As a result, US production is projected to drop at an average annual rate of 1.5% to 226 metric tons by 2017.
Weak and stagnant production output in the face of volatile price changes will encourage producers to reduce costs. In
Precious metals In 2013, the price of gold is anticipated to
fall 9.5% as investment demand
diminishes due to stronger economic
growth and an increased market supply.
By 2014, however, gold prices will likely
increase due to anticipated demand from
jewelry manufacturing and a lower
production supply. Fueled by
downstream consumer demand, industry
exports are projected to grow at an
average annual rate of 3.4% through 2017
to total $568.0 million, while imports
will increase at an average annual rate of
9.0% to total $290.7 million over the
same period. Nevertheless, investment
demand for gold will remain strong as the economy recovers, particularly in Asia, where the market is projected to escalate. Consumers and investors have become more risk averse, and many that invested in these metals will likely retain their investments as a hedge against another economic downturn. This trend signifies another reason for minimal drops in gold prices in the future. Also, constrained supply will put a floor under gold prices. The overall effect of these factors will lift prices to average about $1,949 per troy ounce by 2017. Over the five years to 2017, the world price of gold is projected to increase at an annualized rate of 3.6%. Similar to gold, silver prices will continue their upward trend, increasing at an average annual rate of 5.0% to $41.60 per troy ounce. Growing investment demand in silver and increased manufacturing activity from 2014 to 2017 will drive the increase. A boost in silver production domestically will also help increase the metal’s share of industry revenue.
Industry Outlook Revenue and profit for the Gold and
Silver Ore Mining industry heavily
depends on the output and price of
gold. Industry revenue is forecast to
fall 9.5% over 2013 as lower
precious metals prices pull down the
value of shipments. However,
further gains are projected to occur
from 2014 to 2017. Overall, revenue
is expected to increase slowly at an
average annual rate of 2.1% to total
$15.6 billion in 2017.
Weak production continued 2013, overall profit is projected to drop as
the price for gold falls and costs increase.
Rising revenue from 2014 to 2017 will
offset that drop to an average annual rate
of 5.7% across the five years to 2017.
Merger and acquisition activity will also
continue as companies attempt to benefit
from economies of scale, while high-cost
mines likely will close. This trend will
reduce the total number of enterprises at
a yearly average rate of 0.7% to total 140
over the five years to 2017.
Decline
Potential Hidden Gems
close down; developed technology and markets
Shake-out
Iron Ore Mining
Jewelry Manufacturing
Inorganic Chemical Manufacturing
Copper, Nickel, Lead & Zinc Mining
Industrial Machinery & Equipment Wholesaling Gold & Silver Ore Mining
Industry Life Cycle The Gold and Silver Ore Mining industry
is in the mature stage of its life cycle.
Domestic production of both metals is
decreasing, although rapidly rising gold
and silver prices mean that industry
value added has grown as a share of GDP.
The industry’s value added is extremely
volatile because high gold prices can
inflate revenue and profit, thereby
masking the real factors making this a
mature industry. As a result, the
projected 13.9% average annual growth
in industry value added over the 10 years
to 2017 is higher than the projected 2.1%
GDP growth over the same period.
Demand and revenue growth over the
past five years falsely make the industry
appear like a growing one, but US
participation in the global industry is
slowly diminishing.
The industry has experienced a flight
of producers to international markets,
where newer mineral deposits are plentiful and input costs are lower. Large-scale merger and acquisition activity as firms seek to deal with growing costs and high capital requirements has also resulted in a continued decrease in enterprises, which have diminished at an average annual rate of 0.9% since 2007, and will continue to drop at a rate of
0.7% over the next five years.
The past decade has reversed industry activity, which experienced a growth stage during the 1980s and 1990s. Gold mine production experienced a revival at that time because the lower costs associated with relatively new production techniques, such as open-cut mining and bacterial leaching, permitted previously uneconomic deposits to be brought into production. New technologies are currently being sought to stabilize increasing costs while meeting environmental standards, but a major change in direction remains elusive.
T his industry is Mature
Products & Services
Gold and silver are sold in three forms:
ore and concentrates, dore and bullion. Gold bullion represents the largest share of industry revenue at 73.0%, and total gold sales account for 91.0% of industry revenue. Silver products make up 9.0% of industry revenue, despite exceeding gold
fivefold in output metric tons. The much higher value of gold accounts for its significant share of revenue.
Silver versus gold
Product shares have shifted slightly over time, with silver’s share slowly
P roducts & Markets
Supply Chain | Products & Services |
Demand Determinants Major Markets | International Trade | Business Locations
KEY BUYING INDUSTRIES
33141
Copper, Zinc & Lead Refining in the US
This industry purchases and refines gold bullion into products that meet world standards for purity.
33991 Jewelry Manufacturing in the US
Jewelry manufacturers produce a range of decorative items from gold and silver.
52
Finance and Insurance in the US
Investment markets and firms that manage investment funds purchase and hold gold and silver for use in commodities trading.
99
Consumers in the US
Consumers purchase gold and silver for decorative and investment purposes from retail markets.
KEY SELLING INDUSTRIES
32518 Inorganic Chemical Manufacturing in the US
This industry provides chemicals used in the processing of gold and silver bearing ore.42383 Industrial Machinery & Equipment Wholesaling in the US
This industry provides heavy earth moving equipment used in gold and silver mines.42469 Chemical Wholesaling in the US
Firms in this industry supply chemicals used in operations.42472
Gasoline & Petroleum Wholesaling in the US Firms in this industry supply fuel.
Supply Chain
Demand Determinants The demand for gold, either in bar form
or fabricated into jewelry and coins, rests
strongly on its traditional role as a store
of wealth for individuals and nations.
Demand fluctuates in response to
consumer and investor confidence since
gold is an investment commodity.
Periods of economic decline and
uncertainty produce an increase in
demand for gold. This negatively
correlated relationship is evident through
gold’s soaring prices and revenue during
the economic turbulence of recent years.
Demand for gold and silver in jewelry
manufacturing moves largely in
response to consumer demand and
disposable incomes, domestically and
abroad. The price of these metals,
however, is determined in investment
markets. As a result, large increases in
the price of these metals can have the
effect of limiting demand for gold and
silver from jewelry manufacturers and
consumers. For instance, during the
recession, many investors fled to gold
and silver as safe commodity
Products & Services continued increasing through 2007, dropping from
2008 to 2010 in response to gold’s quick
rise in price, then increasing through
2012 to its current 9.0% share due to its
own recent price surge. Over the next
five years, silver’s share of revenue is
expected to remain stable: increased
industrial demand for the metal will be
mitigated by continued growth in the
price of gold. Bullion segments largely
dominate the changes in shares of
industry revenue from both metals
because bullion is the primary metal
form used in jewelry and coin
manufacturing, industry and investment.
Bullion market
Revenue shares of bullion, dore and
concentrates have changed minimally
since 2007. Major mining companies
must pay a toll charge to refine
unpurified forms of gold and silver into
bullion. Companies may also sell extra
concentrate and dore inventory to
refineries. Despite rising precious metals
prices, refinement charges have remained
relatively stable; therefore, some
producers are more willing to pay these
charges. As a result, bullion sales have
gone up in relation to concentrates and
dore because demand for gold and silver
bullion from downstream industries is
greater than demand for unpurified
forms. This trend is minimal, however,
and has primarily been seen in gold dore:
its share of revenue has dropped from a
high of 23.0% in 2007.
Output
Mine output for both metals has
experienced declines for years due to
resource depletion and decreased
infrastructure investment. However, US
gold production increased for the second
consecutive year in 2011; before 2010,
gold production in the United States had
declined consistently since 2000. The
recent jump in production can be
attributed to mine exploration and
development in response to rising metal
prices that have made mining activities
more profitable. Total gold production is
projected to increase a further 3.2% to
245 metric tons over 2012, marking an
annualized increase of 0.5% since 2007.
Silver production has been slower to
revive, but is projected to increase 0.2%
to roughly 1,162 metric tons over 2012.
Over the five years to 2012, this total is
estimated to fall at a rate of 1.9% on
average. In spite of weak output, rising
prices for both metals have increased
their revenue totals, creating a rush for
firms to invest in further mine
exploration and development in hopes of
reaping the benefits of higher prices.
Major Markets
Mined gold and silver ore is typically sold to refineries in the Copper, Zinc and Lead Refining industry (IBISWorld report 33141), who then sell refined bullion, concentrates and dore to downstream demand markets. Gold and silver use in the United States is largely dominated by the manufacture of jewelry, representing a demand share 56.1%; investment demand represents a share of 30.7%; industrial uses, including electronics, represent 9.4%; and the remaining 3.8% of demand comes from multiple markets (e.g. photography and dentistry). Because of gold’s 91.0% share of total industry revenue, its market segmentation closely resembles that of the industry as a whole. Silver, however, has its own unique market segments.
Because of its excellent electrical and thermal conducting properties, the demand for silver has a more industrial
Demand Determinants continued investments, causing their prices to
spike. This trend significantly hurt
jewelry manufacturers’ profit margins
since operators were not able to pass on
added costs to downstream industries
due to already low demand for jewelry.
Industrial, dental, and electrical uses
for gold are minimal and demand
fluctuations within these segments tend
to be equally small. Therefore, these
segments do not have a significant effect
on overall demand.
Industrial applications have
historically driven the demand for silver,
but demand for investment purposes has
seen a rise. Rising investment demand
for silver began in 2006 when a silver
ETF was first established. Like gold,
economic uncertainty has driven some of
the recent investment demand for silver.
This new source of demand has helped
raise the price of the metal, but its
connection to the industrial sector is
undeniably stronger as prices
experienced a drop in the recession of
2009. Despite recovery in the industrial
sector and continued economic
uncertainty, silver prices are expected to
drop 7.5% to $32.60 per troy ounce in
2012, representing downward correction
after surging prices the previous year. In
2011 alone, its price soared 74.5% due to
investment demand fueled largely by
economic uncertainty in Europe.
International Trade The United States is the world’s third-
largest gold producer, behind China and
Australia. Recent declines in total US
production, coupled with increases in
Australian production in the past five
years, have caused it to drop from the
second-place rank it held in 2008. The
United States is also a major silver
producer, although it ranks behind Peru,
Mexico, China, Australia, Chile, Peru,
Poland and Russia. Traded gold and
silver ores are usually sent to refineries
within the copper, zinc and lead refining
industry (33141); hence, most refined
traded gold and silver is not accounted
for in the Gold and Silver Ore Mining industry. Roughly 3.4% of industry revenue will be made up of exports in 2012, while 1.4% of domestic demand is expected to be supplied by imports. The value of gold and silver exports with the Gold and Silver Ore Mining industry is expected to reach about $480.7 million in 2012, while the value of imports is expected to equal $188.9 million. Exports have risen at an average annual rate of 46.6% over the five years to 2012, due to substantial increases in gold purchases from China, South Korea, Germany and Australia. Imports have also risen rapidly at an average annual rate of 78.2%, as domestic gold investment markets have increased demand.
The primary sources of gold and silver imports to the United States are Mexico and Canada because of major mining activities located there. Conversely, the main destinations for gold and silver exports are Mexico, China, South Korea and Germany due to the number of firms specializing in gold refining processes in
Major Markets continued focus than gold, being used in
conductive adhesives, fuses and
switches. These and other industrial uses
represent about 60.0% of its demand
share. Photography is also a major user
of silver, accounting for 16.0% of use,
though that share is expected to
decline with the proliferation of digital
cameras. Coin and medal fabrication and
jewelry manufacturing represent the
remainder, at 16.0% and 8.0%,
respectively. Silver coin and medal
fabrication have risen strongly in recent
years because of growing interest in
silver as an investment.
Refinement of gold and silver for
jewelry has dropped slightly in the past
five years because of diminished interest
in jewelry as a decorative item; but
investment interest in gold and silver
through jewelry sales has offset the drop
in its revenue share. Dentistry’s share of
revenue has remained stable despite gold
facing growing competition from plastics
and ceramics which are replacing gold
used in dentistry in developed countries.
Gold and silver sales for coin production
and investment bullion grew greatly in
recent years in conjunction with
investment interest in both metals.
International Trade continued these countries for the purpose of
investment activity and jewelry
manufacturing. In fact, China became a
major export destination as recently as
2010 due to rigorous investment activity
by its central bank.
Exports To...
Business Locations 2012
MO
0.0
VT
0.0
MA
0.0
RI
0.0
NJ
0.0
DE
0.0
NH
0.0
CT
0.0
MD
0.0
DC
0.0
1
5
3
7
2
6
4
89
Additional States (as marked on map)
AZ
0.0
CA
2.2
NV
71.9
OR
0.0
WA
2.4
MT
1.0
NE
0.0
MN
0.0
IA
0.0
OH
0.0VA
0.0
FL
0.0
KS
0.0
CO
3.0
UT
8.1
ID
0.0
TX
0.0
OK
0.0
NC
0.0
AK
10.7
WY
0.0
TN
0.0
KY
0.0
GA
0.0
IL
0.0
ME
0.0
ND
0.0
WI
0.0MI0.0PA
0.0
WV
0.0
SD
1.0
NM
0.0
AR
0.0
MS
0.0
AL
0.0
SC
0.0
LA
0.0
HI
0.0
IN
0.0
NY
0.05
6
7
8
3
2
1
4
9
SOURCE: https://www.360docs.net/doc/8c1233174.html,
Production (%)
Less than 3%
3% to less than 10%
10% to less than 20%
20% or more
Business Locations
The geographic spread of industry production reflects the location of gold and silver deposits. Production distribution does not correlate with establishment distribution since mineral reserves and output vary drastically from mine to mine. Almost all of US gold production comes from the West and Rocky Mountain areas, accounting for about 99.0% of quantity mined in 2011 (according to the US Geological Survey’s latest production report). The same regions also dominate silver production in the United States, although the West is less dominant. Nevada leads the country’s gold output, accounting for almost 72.0% of the total. Other important producing states are Alaska, Utah, Colorado and California.
In 2011 (most recent data available), gold was produced at about 50 lode mines, a few large placer mines (all in Alaska), and numerous smaller placer mines (mostly in Alaska and other states in the West). In addition, a small amount of domestic gold was recovered as a byproduct of processing base metals, chiefly copper. Thirty operations yielded more than 99.0% of the gold produced in the United States. Establishments in the industry, however, also include processing and loading centers and operations offices. Despite the inclusion of these locations, the distribution of the 167 establishments remains limited to the West and Rocky Mountain regions.
The largest gold-producing mines in the industry in order of production are Goldstrike in Nevada, operated by Barrick Gold Corporation; Eastern Nevada Operations, operated by Newmont Mining Corporation; Bingham Canyon in Utah, operated by Kennecott Utah Copper, a subsidiary of Rio Tinto Group; Cortez in Nevada, operated by Barrick Gold Corporation; Twin Creeks in Nevada, operated by Newmont Mining; and the Smoky Valley Common Operation in Nevada, operated by Kinross Gold Corporation. Together, these six mine locations account for about 65.0% of total gold production in the United States.
Since gold accounts for about 91.0% of this industry’s revenue, and silver is usually mined in conjunction with gold
Business Locations continued and other metals, the production profile
for gold provides a good guide to the
geographic distribution of the industry.
The West’s importance in gold
production has increased over recent
years. While gold output in the West
declined during the early 2000s in
response to low prices, output fell more
sharply in other regions that had higher
cost operations.