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 despite some declines in recent years.
In 2002, the Arizona copper industry had a combined direct and indirect impact on the Arizona economy of more than $3.102 billion, down from the $3.9 billion in 2001.
The total impact included direct and indirect contributions of
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$938 million in personal income for Arizona residents (equivalent to 23,000 jobs for Arizonans) |
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$1.995 billion in sales revenues for other Arizona businesses |
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$169 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 $1.075 billion which was 16% below the 2001 impact and about the same as the 1988 direct impact.
In 2002, the Arizona copper industry had a total direct economic impact of:
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$59.128 million in direct payments to the State of Arizona and its local governments in taxes and fees; |
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$693 million to other ARizona businesses for products and services; |
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$77 million in personal income payments to Arizona residents, which includes wages and salaries for the industry's |
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6,200 employees, who produced |
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854,979 tons of copper and other metals with a total value of |
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$1.362 billion (10% less than in 2001). |
Arizona's three large copper producers (ASARCO Incorporated; BHP Copper Inc.; and Phelps Dodge Corporation), and several smaller firms, mined and processed 69% of the copper mined in the United States in 2002.
Arizona copper producers had mining and processing operations at various locations in Cochise, Gila, Greenlee, Mohave, Pima, Pinal and Yavapai counties. In addition, two of the large firms 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 8% of the metals they produced to other countries, particularly the Far East. Those exports brought in $107 million in 2002 which helped to offset the nation's foreign trade deficit.
The Arizona copper industry directly employed 6,200 Arizona residents in 2002.
The Arizona copper industry paid its employees nearly $306 million in wages and salaries.
Arizona copper industry workers were paid average annual earnings of about $49,800 each in 2002. That was among the highest rates of pay in the state, exceeding the average of $48,500 for manufacturing.
Arizona copper producers also paid 70 million in pensions and other benefits to former employees living in Arizona.
Arizona copper producers also paid about $24,000 in dividends to their stockholders who lived in Arizona in 2002.
Nearly 23,000 Arizona residents had jobs indirectly as a result of the copper industry's presence in Arizona in 2002. About 2,600 of those jobs were in state and local government, including public education. Another 8,300 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 2002 amounted to more than $560 million, an average of about $33,600 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 nearly 1% of all personal income received by all Arizona residents from all sources.
Copper industry spending in Arizona in 2002 directly and indirectly created sales revenues of more than $2.0 billion for other Arizona business firms.
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The Arizona copper industry directly employed 6,200 Arizona residents in 2002 and paid its employees nearly $306 million in wages and salaries.
The Arizona copper industry spent more than $639 million directly with Arizona suppliers of goods and services in 2002. That was 20% less than in the year before but higher than any amount from 1983 to 1988 during the last recession in the copper market.
The biggest share (39%) of the copper industry's direct spending in Arizona was more than $251 million paid to Arizona wholesalers for equipment and supplies used in copper production.
Public utilities were paid almost $168 million by copper producers, mostly for energy and service.
More than one third (35%) of these purchases ($226 million) were from firms located in Maricopa County. Businesses located in Pima County received about 32% 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 2002 exceeded $59 million.
The biggest part (44%) of the Arizona copper industry's direct payments to state and local governments in 2002 was paid in property taxes ($26 million).
Arizona's public schools received nearly $26 million and the biggest share (44%) of the Arizona copper industry's direct payments to state and local governments in the state in 2002.
The State of Arizona and local governments in Maricopa County received 40% (almost $24 million) of the copper industry's direct payments to state and local governments in Arizona in 2002.
In 2002, the Arizona copper industry used 202,700 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 $670 million in 2002. That amounted to $3,301 per acre of land used by the copper industry in 2002.
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 2002
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