Arizona ups lead in U.S. copper output

Vancouver –Despite seeing a decline in copper production, Arizona produced nearly 67% of all the copper mined in the United States during 2000.

Arizona produced 993,000 tons copper in 2000, down some 200,000 tons from 1999. However, it increased its market share within the country to 67%, up from 64% a year earlier.

A report tabled by the Arizona Mining Association (AMA) showed that the copper industry had a US$4.6-billion impact on the state’s economy in 2000. This was the lowest level since 1973 and down substantially from the 1981 peak of US$9.6 billion. The combined direct and indirect impact of the Arizona copper industry on the U.S. economy in 2000 exceeded $16 billion. This was some 10% lower than in 1999.

Driving the lower output has been the dramatic rise in electricity costs for mining operations and dropping copper prices, which recently hit a two-year low.

Phelps Dodge (PD-N), which operates energy-hungry copper mines in Arizona, saw electricity costs triple to US11 per kW. Some employees at the company’s operations there have been laid off and shutdown warnings are in effect.

Adding to the strain is the fact that prices for the red metal are trading at around US70 per lb. at a time when the U.S. economy is foundering. If the country slips into a recession, copper usage would fall further.