Copper mining has been contributing to the economy of what we now call Arizona since before the arrival of Europeans in the early 1500s. Beginning in the late 19th Century, copper mining and processing became one of the primary means by which first the Arizona Territory and then the State of Arizona were transformed from a wilderness to a modern industrial economy. Copper mining, smelting, refining and fabricating remain an important part of that modern economy even today.
In 2001, the Arizona copper industry had a combined direct and indirect impact on the Arizona economy of more than $3.9 billion, down from the $4.6 billion in 2000.
The total impact included direct and indirect contributions of
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$1.1 billion in personal income for Arizona residents (equivalent to 30,000 jobs for Arizonans) |
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$2.5 billion in sales revenues for other Arizona businesses |
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$202 million in revenues for state and local governments throughout Arizona |
Those impacts were the result of the circulation of the copper industry's direct impact on the Arizona economy of more than $1.2 billion.
In 2001, the Arizona copper industry had a total direct economic impact of:
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$64.0 million in direct payments to the State of Arizona and its local governments in taxes and fees; |
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$803 million to other ARizona businesses for products and services; |
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$411 million in personal income payments to Arizona residents, which includes wages and salaries for the industry's |
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6,900 employees, who produced |
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952,020 tons of copper and other metals with a total value of |
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$1.509 billion (17% less than in 2000). |
Arizona's three large copper producers (ASARCO Incorporated; BHP Copper Inc.; and Phelps Dodge Corporation), and several smaller firms, mined and processed 64% of the copper mined in the United States in 2001.
Arizona copper producers had mining and processing operations at various locations in Cochise, Gila, Greenlee, Mohave, Pima, Pinal and Yavapai counties.
In addition, the major producers have national or regional headquarters in Pima and Maricopa counties. Arizona copper producers also produced substantial amounts of molybdenum, gold, silver, and other metals as byproducts in the production of copper.
Arizona copper companies exported about 7% of the metals they produced to other countries, particularly the Far East. Those exports brought in $102 million in 2001 which helped to offset the nation's foreign trade deficit.
The Arizona copper industry directly employed 6,900 Arizona residents in 2001.
The Arizona copper industry paid its employees more than $411 million in 2001.
Arizona copper industry workers were paid average annual earnings of about $50,752 each in 2001. That was among the highest rates of pay in the state, exceeding the average of $48,412 for manufacturing.
Arizona copper producers also paid 61 million in pensions and supplemental unemployment benefits to former employees living in Arizona.
Arizona copper producers also paid about $250,000 in dividends to their stockholders who lived in Arizona in 2001.
Nearly 30,000 Arizona residents had jobs indirectly as a result of the copper industry's presence in Arizona in 2001. More than 3,000 of those jobs were in state and local government, including public education. Another 12,000 were in trade and service businesses.
The personal income received by Arizona residents indirectly as a result of copper industry spending in the state in 2001 amounted to more than $740 million, an average of about $24,600 per year for those whose jobs were created indirectly by copper industry spending.
The combined direct and indirect personal income provided to Arizona residents by the copper industry amounted to 1% of all personal income received by all Arizona residents from all sources.
Copper industry spending in Arizona in 2001 directly and indirectly created sales revenues of more than $2.5 billion for other Arizona business firms.
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Copper's chemical, physical and aesthetic properties make it a material of choice in a wide range of domestic, industrial, and high technology applications.
The Arizona copper industry spent more than $803 million directly with Arizona suppliers of goods and services in 2001.
The biggest share (40%) of the copper industry's direct spending in Arizona was more than $320 million paid to Arizona wholesalers for equipment and supplies used in copper production.
Public utilities were paid almost $199 million by copper producers, mostly for energy and service.
More than one third (41%) of these purchases were from firms located in Maricopa County. Businesses located in Pima County received about 28% of the total.
Total state and local government revenues provided directly and indirectly by the copper industry in Arizona in 2001 were nearly $202 million.
Total payments to state and local governments made by the Arizona copper industry in 2001 exceeded $59 million.
The biggest part (45%) of the Arizona copper industry's direct payments to state and local governments in 2001 was paid in property taxes ($29 million).
Arizona's public schools received nearly $29 million and the biggest share (45%) of the Arizona copper industry's direct payments to state and local governments in the state in 2001.
The State of Arizona and local governments in Maricopa County received 43% (almost $28 million) of the copper industry's direct payments to state and local governments in Arizona in 2001.
In 2001, the Arizona copper industry used 196,300 acres of the state's more than 72,960,000 million acres. That was less than three tenths of one percent.
Arizona copper production, directly and indirectly, provided federal revenues of nearly $843 million in 2001. That amounted to $4,293 per acre of land used by the copper industry in 2001.
Everything we have comes from the Earth. If it's not a plant or animal, it's a mineral or made from minerals. It is estimated that each American uses about 23.5 tons of newly mined minerals each year.
Of all the minerals used by society, copper has had the most profound effect on civilization. From the dawn of civilization and into the third millennium, copper has played, and continues to play a vital role in contributing to, sustaining and improving society.
What makes copper and copper-based products so valuable to us, and why do societies depend on them? Copper's chemical, physical and aesthetic properties make it a material of choice in a wide range of domestic, industrial, and high technology applications. Copper is ductile, corrosion resistant, malleable, and an excellent conductor of heat and electricity. Alloyed with other metals, such as zinc (to form brass), aluminum or tin (to form bronzes), or nickel for example, it can acquire new characteristics for use in highly specialized applications. In fact, society's infrastructure is based, in part, upon copper. For instance, copper is used for:
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conducting electricity and heat |
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communications |
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transporting water and gas |
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roofing, gutters, and downspouts |
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protecting plants and crops, and as a feed supplement |
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making statues and other forms of ar |
Copper has been in use for 10,000 years, yet it is still a high technology material, as evidenced by the development of the copper chip by the semiconductor industry. |
Copper's Importance in the Arizona Economy in 2001
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