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 2003, the Arizona copper industry had a combined direct and indirect impact on the Arizona economy of more than $2.691 billion, down from the $3.1 billion in 2002 and less than a third of the all-time high reached in 1981.
The total impact included direct and indirect contributions of
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$3.518 billion direct and indirect impact on the Arizona economy |
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$817 million in personal income for Arizona residents (equivalent to 18,000 jobs for Arizonans) |
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22,200 jobs for Arizonans |
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$1.718 billion in sales revenues for other Arizona businesses |
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$156 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 $1.087 billion which was 1% above the 2002 direct impact and slightly more than the 1988 direct impact.
In 2003, the Arizona copper industry had a total direct contribution of:
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$62.555 million in direct payments to the State of Arizona and its local governments in taxes and fees (6% more than in 2002); |
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$656.801 million in direct payments to other Arizona businesses for products and services (3% more than in 2002); and |
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22,200 jobs for Arizonans |
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$367.563 million in personal income payments to Arizona residents, which includes wages and salaries for the industry's |
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5,900 employees, who produced |
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823,490 tons of copper and other metals with a total value of |
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$1.532 billion (12% more than in 2002). |
Arizona's three large copper producers (ASARCO Incorporated; BHP Copper Inc.; and Phelps Dodge Corporation), and several smaller firms, mined and processed 67% of the copper mined in the United States in 2003.
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 Maricopa county.
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 $129 million in 2003 which helped to offset the nation's foreign trade deficit.
The Arizona copper industry paid its employees nearly $293 million in wages and salaries.
Arizona copper industry workers were paid average annual earnings of about $49,900 each in 2003. That was among the highest rates of pay in the state, exceeding the average of $49,100 for manufacturing by 2%.
Arizona copper producers paid almost 75 million in pensions and other benefits to former employees living in Arizona.
Arizona copper producers also paid about $57,000 in dividends to their stockholders who lived in Arizona in 2003.
Nearly 12,000 Arizona residents had jobs indirectly as a result of the copper industry's spending in Arizona in 2003. About 1,700 of those jobs were in state and local government, including public education. Another 5,900 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 2003 amounted to more than $450 million, an average of about $37,200 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 the personal income earned by all Arizona residents from in 2003.
Copper industry spending in Arizona in 2003 directly and indirectly created sales revenues of more than $1.7 billion for other Arizona business firms.
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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.
The Arizona copper industry spent more than $657 million directly with Arizona suppliers of goods and services in 2003. That was 3% more 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 (35%) of the copper industry's direct spending in Arizona was more than $228 million paid to Arizona wholesalers for equipment and supplies used in copper production in 2003.
Public utilities were paid almost $205 million by copper producers, mostly for energy and service.
Almost half (47%) of these purchases ($312 million) went to businesses located in Pima County. Businesses located in Maricopa County received about 33% of the total.
Total state and local government revenues provided directly and indirectly by the copper industry in Arizona in 2003 reached almost $156 million.
Total payments to state and local governments made by the Arizona copper industry in 2003 exceeded $62 million up 6% from 2002.
The biggest part (39%) of the Arizona copper industry's direct payments to state and local governments in 2003 was paid in property taxes ($24 million).
Arizona's public schools received over $27 million and the biggest share (44%) of the Arizona copper industry's direct payments to state and local governments in the state in 2003.
The State of Arizona and local governments in Maricopa County received nearly 45% (almost $28 million) of the copper industry's direct payments to state and local governments in Arizona in 2003.
In 2003, the Arizona copper industry used 185,000 acres of the state's more than 72,960,000 million acres. That was only one quarter of one percent.
Arizona copper production, directly and indirectly, provided federal revenues of more than $600 million in 2003. That amounted to $3,245 per acre of land used by the copper industry in 2003.
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 2003
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