Arizona Mining Association

A History of Mining in Arizona | Copper: The Star of Arizona | Copper: An Economic Profile | Mine To Market

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Dollars and Cents — The Economic Picture
In our increasingly complex world the demand for copper grows each year because of its usefulness and versatility. Many people mistakenly think that the copper companies set the price of copper, but it is not as simple as that. To understand the copper market, one must understand some basics about economics.

In our increasingly complex world the demand for copper grows each year because of its usefulness and versatility. Many people mistakenly think that the copper companies set the price of copper, but it is not as simple as that. To understand the copper market, one must understand some basics about economics.

	Copper is a commodity, and its price is determined by supply and demand not by the companies that produce it.
	Supply and demand indicates how much of a product is available and how willing and able consumers are to buy it.
	In 1994 the price of copper was $1.07 per pound. When more copper was needed in 1995, the price rose to $1.35 per pound. This contributed to inflation. When the price of copper rises, the price of products requiring copper also rises.
	In the early to mid 1990's copper prices were high — mostly over a dollar per pound.
	In the late 1990's economic conditions in Asia (the world's largest copper consumer) caused a severe reduction in the demand for copper. Thus, there was a sharp decline in the price of the metal. The new price ranged from $.60-$.80 per pound. This caused a recession for the copper industry.
	The cyclic nature of a commodity market provides hope that the price of copper will rebound with new building and manufacturing both in the U.S. and abroad.
	Quality control, investment in state-of-the-art equipment, reorganization and more efficient use of the workforce, tracking costs, and developing new technologies can lower operating costs and result in more money for profit while continuing to supply the world with a much-needed resource.
	The copper mining industry impacts the economy by providing personal income, increasing sales for businesses, and generating revenue for local, state, and national government.

It's Where We All Live — The Environment

A modern lifestyle necessitates mining for natural resources. While it is important to understand that all mining impacts the environment, it is an interesting fact that mining has touched less than one quarter of 1% of all the land in the United States. In the past, little thought was given to mining's environmental impact, and much of the current opinion and thought about mining is based on historical rather than up-to-date, factual information. Today, though, because of educational outreach, general increased awareness, and the enactment of laws and environmental regulations, mining's negative impact has been significantly reduced.

Still, mining's negative effect on the environment cannot be minimized. Impact occurs not only in the immediate vicinity of a mine, but also in areas surrounding the mine itself. These issues involve the water, the soil, and the air.

Impact to Soils
	Exposure of rock resulting in acidic soil conditions
	Concentration of high levels of metals
	Disposal of waste rock or slag into open areas
	Erosion of exposed soils and tailings

Impact to Air
	Emissions from smelters
	Generation of dust at mine sites

Impact to Water
	Disposal of metals and acidic chemicals
	Leakage into groundwater or rivers
	Drainage of acidic rock

Impact in Other Areas
	Destruction of wildlife habitats
	Destruction of plant habitats

Mining companies must deal with environmental impacts before, during, and after mining. In their initial mine plan companies include procedures for environmental controls that will be followed in all phases of mine development. These procedures include a reclamation plan, which is the procedure a company will follow to make mined land safe and stable and to prepare it for a subsequent use. Possible measures to prevent or reduce environmental impact are:

Remediation of Soils
	Removing and treating contaminated soil
	Recontouring exposed soils
	Revegetating tailings
	Amending tailings with biosolids and other fertilizers

Remediation of Air
	Treating and filtering smelter gases to remove toxins
	Spraying mine roads, tailings, and other active areas with water or dust inhibitors to settle dust

Remediation of Water
	Establishing passive wetland systems
	Flooding inactive underground workings to cut off oxygen supply necessary to sustained generation of acidic water
	Sealing exposed surfaces in underground workings to inhibit the oxidation process
	Backfilling mine workings with reactive materials to neutralize and treat waters that pass through them
	Recycling water and other liquids


Remediation in Other Areas
	Transplanting disturbed plants
	Providing alternative habitats for displaced animals
	Recycling equipment and mined metals

Mining companies pay careful attention to environmental issues, realizing that minimizing mining's impact today will ensure a better world for everyone both now and in the future.

Continue Reading Copper: The Mighty Metal

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