UTAH ECONOMIC BEBR AND BUSINESS DAVID ECCLES SCHOOL OF BUSINESS UNIVERSITY OF REVIEW UTAH VOLUME 60, NUMBERS 9 & 10 SEPTEMBER/OCTOBER 2000 STRUCTURAL CHANGE IN UTAH’S METAL MINING INDUSTRY 1970 – 1999 Alan E. Isaacson, Research Analyst For decades, metal mining in the Tintic mining district and responsible for nearly 10 was synonymous with the the Bingham Canyon copper percent of total worldwide economy, life style, and social mine all influenced Utah’s social magnesium capacity. structure of large areas of the and economic structure. Industry Consolidation western United States. These Utah continues to be home Significant structural areas ranged from the northern to several metal mining Idaho silver belt, the copper changes have occurred in the operations which are significant Utah metal mining industry mines of Montana, Arizona and on a worldwide basis. The New Mexico, and the silver during the past several decades. Kennecott Bingham Canyon Production efficiencies and boom towns in the Colorado mine is the second largest Rockies, to gold camps across volumes have increased. Wages domestic copper producer in have consistently been the Nevada. The influence of these terms of capacity and one of the mining areas often extended highest paid of any industry in world’s lowest-cost producers. Utah; however, metal mining well beyond their borders. The Brush Wellman facility During World War II, copper employment is currently about near Delta is the largest and 28 percent of 1970 employment mining was considered one of only three beryllium ore important enough that the levels. Prices received have processing plants in the world. varied widely, with increasing miners were exempt from the The Magnesium Corporation of draft. prices during the 1970s and America (MagCorp) plant on the early 1980s and generally weak Utah was no exception to west side of the Great Salt Lake prices since the mid 1980s. the influence of metal mining. is one of two domestic primary Silver mines in Park City, mines magnesium producers and is BUREAU OF ECONOMIC AND BUSINESS RESEARCH September/October 2000 UTAH ECONOMIC AND BUSINESS REVIEW 2 During the past 30 years, percent beryllium. These alloys Copper—The copper industry the Utah metal mining industry are used in springs, switches, has greatly consolidated over has greatly consolidated. In and connectors by the the past 30 years. In 1970, there 1970, there were 17 copper- automobile, aerospace, and were 17 different mines producing mines located in 11 electronics industries. The producing copper in 11 different different counties, 12 mines sockets for joining integrated counties, although the producing lead, 17 silver- circuits on printed circuit Kennecott Bingham Canyon producing mines in ten different boards are beryllium-copper Mine was by far the largest counties, and 10 zinc-producing alloy, as are connectors in fiber producer. Copper was shipped mines in eight different optic communication systems. from the state in several counties. Many mines produced Beryllium metal accounts different stages of processing. different metals, for example, for about 10 percent of U.S. These included refined copper the Mayflower Mine produced consumption. Its high stiffness, (copper used for manufacturing copper, gold, lead, silver, and light weight, and dimensional products such as plumbing and zinc. stability make it useful in wiring), copper concentrate (the During 2000, there was defense and aerospace copper-bearing minerals which only one mine producing copper applications. For instance, some have been separated from the in Utah, two mines producing structural elements and the other minerals in the ore, used gold, one mine producing silver, brakes on the Space Shuttles as feed material for smelters), and no lead or zinc production. are made from beryllium. and cement copper (an impure metallic copper obtained by Additionally, the copper mine, The Brush Wellman one of the gold mines, and the contacting aqueous copper leach beryllium processing plant, solutions with scrap iron, also silver mine were actually the located north of Delta, is one of same operation—the Kennecott used as feed material for only three facilities in the world smelters). Bingham Canyon Mine. that processes beryllium ore. Kennecott also owned the other (The other beryllium processing Conventional underground gold mine, the Barney’s Canyon facilities are in China and mines producing several Mine, located in the Oquirrh Kazakstan.) The plant opened in different metals, such as those Mountains. 1969 and processes bertrandite in the Park City and Tintic ore mined about 50 miles to the districts, often produced a copper concentrate which was Production and Operations northwest, in addition to a small amount of beryl ore imported shipped out of state or to the Major metal producing from other locations. The plant Kennecott Garfield Smelter for minerals produced in Utah over was expanded in 1976 to process smelting. Several operations, the past three decades include beryl ores in addition to the notably the Big Indian leach beryllium, copper, gold and bertrandite mined in Utah, and plant in San Juan County and silver, iron ore, lead and zinc, again in 1980 to expand OK Mine in Millard County, magnesium and vanadium, as capacity. Capacity was further produced cement copper which well as small amounts of other expanded during the early was also shipped to various metals. Production for selected 1990s. The plant produced 6,490 smelters. commodities is presented in tons of beryllium hydroxide The Carr Fork property, Table 1. concentrate during 1999, up located just northeast of Tooele, Beryllium—Beryllium is a from 6,325 tons in 1998. Proven was perhaps one of the biggest lightweight metal used for ore reserves are adequate for 60 disappointments in the Utah alloying copper for strength, years of production at current mining industry in the past 30 aerospace applications, and rates. The concentrate is years. The Anaconda Company semiconductor substrates. processed into beryllium metal, spent four years exploring and About 75 percent of U.S. alloys, and oxide at Brush five years developing the beryllium consumption is in the Wellman’s plant in Ellmore, property at a cost of $220 form of beryllium-copper alloys, Ohio. The Utah facility employs million. The mine was in which contain approximately 2 just under 100 persons. production for only 27 months, BUREAU OF ECONOMIC AND BUSINESS RESEARCH September/October 2000 UTAH ECONOMIC AND BUSINESS REVIEW 3 closing on November 18, 1981. transport crushed ore out of the produced in Utah. Significant In February, 1985 the pumps pit, and a slurry pipeline producers included Bingham were pulled and the mine was system. The primary feature of Canyon, the Mayflower Mine in allowed to flood. Kennecott the Copperton concentrator was Wasatch County, the United eventually purchased the larger grinding mills, to take Park City Mines Company property from the Atlantic advantage of economies of scale. properties in Summit County, Richfield Company. The largest grinding mills and the mines in the Tintic In 1992, Sunshine Mining installed had a 34 foot diameter. District, then operated by the ended production of copper- Additionally, extensive Kennecott Tintic Division. bearing smelter flux from the electronic control equipment The Mayflower Mine, then Trixie Mine near Eureka, was installed to optimize leased by Hecla Mining marking the last year that a operations. The Copperton Company from New Park mine other than Bingham concentrator was enlarged in Resources, closed at the end of Canyon produced copper- 1992 at a cost of $227 million. 1972. The United Park City bearing ore in Utah. Despite The new Outokumpu flash properties were operated by this consolidation, total copper smelter came online in 1995, at Park City Ventures, a 60/40 production in Utah has a cost of $880 million. The new joint venture of The Anaconda increased by about 10 percent in smelter had increased capacity Company and ASARCO, Inc., the last 30 years, from 296 over the Noranda smelter from 1971 until 1978. Noranda thousand tons in 1970 to 328 installed during the 1970s and Exploration, Inc., then leased thousand tons in 1998. Much of more effective pollution control the properties from 1979 until this production increase was equipment. 1982, when the last mining in due to modernization and large Prior to installing the Park City occurred. amounts of capital investment Outokumpu smelter, Kennecott Kennecott operated various made in the Bingham Canyon was exporting approximately 40 mines in the Tintic District until operation. percent of the copper November, 1982. Sunshine The first large capital concentrate produced. The new Mining Company subsequently investment made by Kennecott smelter allowed for all of the leased the Tintic mining in the Bingham Canyon Mine concentrate produced at properties in 1983 and operated over the past three decades was Bingham Canyon to be smelted until the end of 1992. Most of to replace the original in Utah and cut sulfur dioxide Sunshine’s production was sold reverberatory smelter with a emissions by 96 percent. to Kennecott as smelter flux. Noranda smelter in the 1970s. The Bingham Canyon mine The last production in the Tintic The project was completed in is estimated to contain another District was in 1994 when North 1978 and cost $280 million. 15 years worth of reserves and Lily Mining closed its small Production dropped to 50,063 an additional 15 years of heap leach operation, which it tons in 1985, a result of the reserves have been identified for had operated since 1988, at Bingham Canyon Mine closing underground mining. In Silver City. Currently, Chief for modernization. Over $1 addition to copper, the mine is Consolidated Mining is working billion has been invested in also a significant producer of on refurbishing the mill at the Bingham Canyon during the gold, molybdenum, and silver. Trixie Mine and obtaining past 15 years to increase Gold and Silver—These metals operating permits for the Trixie efficiencies and lower were the driving forces behind and Burgin Mines, in addition production costs.