Doug Driesner, a veteran staff member of
the Nevada Division of Minerals, has seen mining
booms come and go.
But none of them have been like this one.
"I can't think of any commodity that isn't
booming," he says."I've never seen anything
like this."
And the mining industry is investing a
growing portion of its profits from the current
boom into exploration the industry's version
of research and development across
Nevada.
The Division of Minerals reported last
week that the value of commodities mined in
Nevada in 2006 reached $5.1 billion, a recordsetting
figure that marks a $1.4 billion increase
over the 2005 figure.
Gold, not surprising, played the biggest
role.
Nevada's mines produced 6.3 million
ounces of gold during the year, selling it at an
average price of $603 an ounce. A year earlier,
the state's miners sold 6.85 million ounces at an average price of $445 an ounce.
The $3.8 billion in gold produced in the
state in 2006 accounted for nearly three quarters
of industry's proceeds in Nevada during
2006.
(Nevada ranks fourth in the world in gold
production, trailing only South Africa,
Australia and China. The state's production
accounts for 78 percent of the gold mined in
the United States.)
But other minerals boomed, too.
Copper production,much of it from the big
Robinson Mine operated by Quadra Mining
Ltd. near Ely, totaled 127.5 million pounds, up
slightly from 2005 figures.
But copper prices of more than $3 a pound
up more than 80 percent from year-earlier
figures meant the value of the state's production
totaled $389 million during 2006.
Silver production actually declined
from 9.95 million ounces in 2005 to 8.45 million
ounces last year but the value of production
rose to $98 million from $73 million a
year earlier. The reason: Silver prices averaged
$11.54 an ounce in 2006 compared with $7.22
in 2005.
And even the value of less sexy industrial
minerals diatomite, dolomite, lithium, sand
and the like were up sharply last year.
The Division of Minerals said production
of those minerals totaled $860 million compared
with $560 million a year earlier.
State mining officials say they see strong
indications that the industry is using a significant
portion of its newfound profits in exploration
in Nevada.
Alan Coyner, the administrator of the division
of minerals, says exploration apparently
picked up substantially during 2006, and that's
likely to bring additional discoveries into production
in future years.
Last year, the Division of Minerals reported
that mining companies had budgeted about
$153.6 million for exploration in Nevada during
2006. That was up from exploration spending
of about $121.3 million statewide a year
earlier.
For the 35 companies surveyed by the
state, the amount they budgeted for exploration
in Nevada accounted for more than a
quarter of their total exploration outlays worldwide.
And that's translating into boom times for
geologists and other professionals. The state
estimated that more than 200 exploration geologists
were at work in the state last year, a
number that compares with a mere 124 just
two years earlier.
Driesner said preliminary figures show the
growth in exploration is continuing into 2007
as mining companies have money to invest.
