Economic Impact The 1998 gross state product was estimated at 38,355 million. Of this, manufacturing accounts for 6,230 million, mining accounts for 1,854 million, primary metals 615.9 million, and fabricated metals 381 million. (US Dept of Commerce Bureau of Economic Analysis, Regional Accounts Data)

Employment The mining and manufacturing sectors are important parts of Utah’s economy. In 1998 manufacturing was the third largest private sector employer, after the service and trade sectors. Mining and manufacturing accounted for 13.8% of the workforce and 17.3% of the wages in the State. Mining workers had the highest average annual wage ($46,200). At an average of $32,400 employees in the manufacturing sector had wages significantly higher than the average $26,500 annual wage. (Department of Workforce Services 1999).

Coal Mining Utah coal production ranked 12^th in the nation in 1997. The State’s 13 active mines had an average daily workforce of about 2,100 and produced 26,400 short tons of coal. Most of this coal (88%) was used to generate electricity. About 1,000 of coal was imported to Utah coke plants in 1997. About half the coal was exported out of state. A fraction (14%) was exported to the Pacific Rim. The same year no Utah coal was used in coke plants. At an average FOB mine price of $18.0 the 1997 value of Utah coal was about $484.7 million. (Utah Energy Statistics, Utah Division of Natural Resources.)

Minerals Industrial minerals were the second-largest contributor to the value of minerals produced in 1997. Major commodities produced in descending order of value include: (1) salines, including sulfate of potash, salt, potash, and magnesium chloride, (2) sand and gravel, and crushed stone, (3) portland cement, (4) phosphate, (5) lime, limestone, and dolomite, (6) gilsonite, (7) common clay and bentonite, and (8) gypsum. Salines were produced by six companies in Utah; 1997 production is estimated at 2.5 million tons, substantially less than in 1996. Portland cement was produced by two companies in Utah; both are operating near their combined annual capacity of 900,000 tons of cement and have plans to expand. Phosphate was produced by SF Phosphates Ltd. in Uintah County; 1997 production is estimated at 2.25 tons of ore. Two companies produced quick or hydrated lime in Utah with a combined capacity of nearly 500,000 tons per year. Several other companies mined limestone for direct use in electric power plants, in steel mills, and for use as aggregate in construction. Three companies produced gilsonite from veins in eastern Utah; 1997 production is estimated at more than 55,000 tons, similar to 1996 production. Nearly 160,000 tons of common clay and over 40,000 tons of bentonite were produced by four companies in 1997. Common clay production was slightly lower than in 1996, but 1997 bentonite production was about the same as 1996 production. Six companies produced gypsum in Utah for 1997; production was more than 330,000 tons, slightly higher than in 1996. Most gypsum was used for making wall board, but some was used in cement plants and for agricultural purposes. Commodities produced in lesser amounts include: fuller’s earth, building stone, decorative stone, lightweight aggregate, masonry cement, and gemstones.

Metals Mining Base metal production was the largest contributor to the value of minerals produced in Utah. In descending order of value, the main commodities were: copper, magnesium metal, molybdenum, and beryllium. Copper production in 1997 was estimated at about 300,000 metric tons of metal. Molybdenum production was estimated at about 17,250 tons of molybdenum concentrate (MoS2 ). The copper and molybdenum production was from Kennecott Utah Copper Corp.’s Bingham Canyon Mine. Other contributions to Utah’s base metal production include beryllium oxide produced by Brush Wellman Inc. from ores mined at Topaz Mountain and magnesium metal produced from Great Salt Lake brines by Magnesium Corp. of America (Magcorp).

Two of Utah’ most important industries are mining/primary metals businesses, Kennecott with over 1,400 employees and Magcorp with about 500. Kennecott Utah Copper, a subsidiary of mining giant Rio Tinto, operates Bingham Canyon, one of the world's biggest open pit copper mines. The company operates its own smelter and refinery and sells its copper to copper fabricators. It also generates 50% of the electrical power it uses through its own power plants. (Magcorp)is a wholly owned operating company of the Renco Metals holding company. Magcorp is the second largest producer of pure magnesium and magnesium alloys in the western world. Magcorp owns and operates its own electrolysis, refining and casting facilities. It sells pure magnesium and magnesium alloys to domestic and international customers in the key end-use markets including die-casting, aluminum alloying, and de-sulfurization. Magcorp also generates 25% of its own electric power.

Precious metal production in 1997 is estimated at nearly 25 tons of gold and 149 tons of silver. Gold was produced from three surface mines, two primary producers (Barrick Gold Corp.’s Barrick Mercur Mine and Kennecott Minerals Co.’s Barneys Canyon Mine) and one by-product producer (Kennecott’s Bingham Canyon Mine). Silver was produced as a secondary metal at the Mercur mine and as a by-product metal at the Bingham Canyon Mine. About 75% of the gold and over 90% of the silver produced were from the Bingham Canyon Mine.