Nevada miners hopeful as prices improve

Wednesday, Sept. 4, 2002 | 11:18 a.m.

CARSON CITY -- Gold production declined slightly in 2001 in Nevada to 8 million ounces, but the state is still the largest producer in the United States, the Nevada Mining Association said today.

Association President Russell Fields said there were 8.58 million troy ounces produced in 2000. Nevada's gold production accounts for about 72 percent of all U.S. production and 10 percent of the world's production.

The state is the third largest gold producer in the world behind South Africa and Australia.

Fields said part of the reason for the slight decline was the price of gold was down in 2001.

"Costs at all operations were cut and significant gains in efficiency were made in order to maintain profitability," the Mining Association said.

But Fields said the current price is about $310 per ounce and he expected a strong performance this year.

"The industry is cautiously optimistic about the future," Fields said. The association said there was 72 million ounces of proven and probable gold reserves for future Nevada production.

The association said the total value of mineral production last year was $2.5 billion, down slightly from $2.7 billion in the previous year. The 2001 number includes some $76 million worth of silver, the highest in the nation.

Mining in Nevada remains a major economic force, with direct and indirect employment of 47,500 people. With its relatively high wages -- an average annual salary of $60,000 -- the mining industry says it pumped $1.4 billion into Nevadans' household incomes in 2001.