Mining Industry Profile

Mining plays a vital role in our national economy, national security, and in the life of each individual. Each year, nearly 47,000 pounds of materials must be mined for each person in the U.S. to maintain his/her standard of living. Processed materials of mineral origin account for nearly five percent of U.S. gross domestic product. U.S. electricity costs are among the lowest in the world due to the availability of low-cost coal. In fact, mined materials (coal and uranium) were used to generate 72 percent of all electric power produced in the U.S. during 2000.

Geography

The mining industry plays an important role in all 50 states. As a supplier of coal, metals, and industrial minerals to businesses, manufactures, utilities, and others, the mining industry is vital to the well being of communities across the country.

Markets

Minerals are essential to practically every aspect of our lives and our economy; however, they are scarcely noticeable to most of us. Surface and underground mining are the two mining methods. The method selected depends on a variety of factors including the nature and location of the deposit, as well as the size, depth, and grade of the minerals. Both surface and underground mining are used widely in the extraction of coal.

Production and Supply

In 2000, the total amount of coal produced was 1.07 billion tons. Of this, 374 million tons, or 35 percent, came from underground mines, and the remaining 700 million tons, or 65 percent, came from surface mines.

Of the 1.3 billion tons of crude metal ore produced in the U.S. in 2000, 1.2 billion tons, or 92 percent, came from surface mining.

Most of the industrial minerals in the U.S. are extracted by surface mining. In 2000, the total amount of crude industrial ore mined in the U.S. was 3.2 billion tons. Of this, 3.1 billion, or 97 percent, came from surface mines.

Employment

Mining operations are often the leading employers in the communities where they operate. More than 320,000 people work directly in the U.S. mining industry. Indirect employment in manufacturing, engineering, environment, geology, and others accounts for nearly three million additional jobs.

Energy

Energy used in mining operations accounted for approximately 3 percent of total industrial energy use in the U.S. in 1997, or approximately 1,125 trillion Btu. In 1997, the mining industry spent $3.6 billion on energy, representing about 24 percent of the total cost of supplies. Major energy sources include fuel oil, electricity (purchased and produced on-site), coal, and natural gas. About 34 percent of energy needs are met by fuel oil, followed by electricity at 32 percent.