NewMexico's
extractive
minerals
industries-a
three-year
summary
byRobeftW.
Eveleth,
NewMexico
Bureau
of Mines
andMineral
Resources,
Socorro,
NM87801
New Mexico's extractive minerals industries have undergonemany profound changes
during the three-year period ending December 31,,1986. Overall value of mineral and
mineral-fuel production dipped a modest 8%
between 1984and 1985followed by a whopping 35Vodecreasebetween 1985 and 1986
(Table 1). The latter represents the largest
production value decreasein New Mexiio's
history of which I am aware-certainly the
largestdecreasesince accuraterecords'have
been kept.
The lion's share of the decreaseis due, of
course/ to the dramatic decline in both production and value of petroleum productsloil,
gas, and distillate), which, for many
-ofyears,
have accounted for some 83-85%
total
mineral production dollars. During 1984petroleum products contributed g5.Zbillion or
83Voof the total value of New Mexico's mineral production; for 1985,primarily because
of the collapse of the OPEC cartel, this
dropped to $2.9 billion or iust TlVo of the
total. ?rice collapsesof this magnitudeare a
mixed blessing: while all citizens may enjoy
lower prices at the fuel pump, revenuesand
royalties accruing to the state decline in
roughly the same proportion. The shortfall
is made up with tax increases(which no citizen enjoys).
The reader should be aware that even dur-
ing the severelydepressed1985production
year, New Mexico's oil and gas industries
still paid nearly $100 million in direct royaltiesand taxesto the state(New Mexico Oil
and Gas Accounting Division, summary report for 1986).New Mexico'sshareof federal
royalty receipts from the petroleum sector
cameto an additional $91million. Total taxes
and other revenue from oil and gas production, including earnings from the permanent
and severancetax fund, was nearly $750million (Maurice Trimmer, pers. comm. 1987).
Declines were also registered by major
nonfuel mineral industries such as ootash
and uranium. The potashproducershive experiencedconstantproduction cutbacks,layoffs,mine closures,and most recentlyoutright
saleof properties.For example,no less than
four of Carlsbad'ssevenmines changedhands
during 1985due to the many problemsfacing
the indushy. Only one operating propertt
International Minerals and Chemical Corp.,
escapedthe sales block. Except for a slight
rally during the 1984crop year, demand for
U.S. potashhasbeen steadilydecliningsince
the peak year of 1.980,primarily due to insurmountable competition from foreign producers.
Uranium production increased significantly to 1.8 million lb in 1986(up 39% from
the previous year) as a result of renewed
activity bv Chevron Minerals at Mt. Taylor.
However, as older, higher priced contracts
were retired, averageperJb value continued
to drop, from $32.38/lbin 1984to $21.15llb
in 1986.Total value produced in 1986was
little more than one-third of that for 1984.
The coalsectorcontinued its slow but steady
growth (regardlessof the state of the economy, demandfor electricitycontinuesto grow)
and, happily, the copper industry appearsto
have turned the corner toward prosperity.
Both commoditieswere produced in recordhigh quantities;the averageprice of a short
ton of coal also reachedan all-time high of
$23.65.
The copperindustry is experiencingsomething of a comebackfrom the depression-like
conditionsso prevalentfor the lastfew years,
thanks to many improvements geared toward increasing efficiency at Hurley, Playas,
SantaRita, and Tyrone. PhelpsDodge Corp.
purchasedKennecott'sChino mine, mill, and
smelter complex near Silver City, effective
fanuary I, 1987.Phelps Dodge will thus become the largest copper producer in both the
stateand the nation. Mitsubishi still retains
its one-third interest in Chino. The expanded
solv-explant at Tyrone and a planned unit
at SantaRita will likely contribute to another
record vear in 1987.
TABLE l-Mineral and mineral-fuel production in New Mexico for the three-year period ending December 31, 1986.Units are thousand short tons
unless otherwise noted. NA, not available; XX, not applicable; W, withheld to avoid disclosinglndividual company data; P, preliminary (subjectto
revision);E, estimated(subjectto revision);R, revised.Data sources:U.S. Bureauof Mines; U.S. Department of Energy;Oil eonservationDivision,
New Mexico Department of Taxation and Revenue. .1 bbl : 42 gal.
1986P
Mineral comnodity
Quantity
Carbon dioxide, natural (million ft3)
Clays
Coal
Gem stones
Gold (oz troy)
Gvpsum
H-eiium(grade A, million ft')
Humate (Leonardite)
Lime
Natural gas (million ft')
Natural gas liquids (thous. bbls*)
Perlite
Petroleum,crude (thous. bbls*)
Potash
Pumice,incl. cinder and scoria
Sand and gravel
Stone, crushed
Stone, dimension
Sulfur
Uranium, recoverableUrO, (thous. lbs)
Combined value of cement, coppet
lead, mica (scrap), molybdenum, salt,
silver, vanadium, and values indicated
byw
Total value
IJ
67
)1 ))a
NA
w
318
W
79
NA
946,756
48,462
416
79,335
7,563
132
8,363
4,700
7gE
69
2,916
XX
Value, thous. $
q qqq
t43
472,784
200E
w
7,622
w
NA
NA
2,622,576
823,850E
74,775
2,293,581,
204,700
7,269
22,389
17,000E
1.49E
4,245
94,420
358,757
6,876,539
Quantity
101
60
20,909
NA
4q o4q
350
39
NA
NA
Value, thous. $
50,613
1.61.
LqL q7)
200E
1,4,309
7,570
7,456
NA
NA
Rq? ?qt
40,456
479
78,529
1,,235
1,52
8,400E
3,647
20
60
7,329E
XX
606,847E
14,527
2,105,376
156,000
7,774
22,800E
LJ,ZJZ
277
4,28r
4q
??qE
429,249R
Quantity
Value, thous. g
t27
72
27,897
NA
62,455
209
494 )AA
387
36
NA
NA
692,856
38,81.7
386
75,772
1,059
109
7,600
3,500
22
NA
1.,852E
W
W
3,022
r,320
NA
NA
1,330,2U
436,692E
74,209
r,r31,893
r24,600
959
20,600
14,900
378
NA
39,200E
XX
428,770
w
6,339,972
Nau Mexico Geology November 7987
4,r05,155