For once, mining boom benefits all commodities

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.