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