Gold production rises in Nevada the Gold price rises
Gold production has increased in the State of Nevada, the USA's largest Gold producing state, as the Gold price continues to rise.
In Nevada, 5,338,559 oz's of Gold were produced in Y 2010, worth US$6.54-B, Nevada Division of Minerals Deputy Administrator Doug Driesner said Tuesday
That's a big increase over Y 2009, when 5,033,000 oz's were produced, valued at about US$4.9-B.
The value of all minerals produced in the western state exceeded US$7-B in Y 2010, Mr. Driesner said.
Nevada's entire mining industry paid US$204-M in state and local taxes in Y 2010, the Nevada Mining Association said.
Mines owned by mining company Barrick Goldstrike in Nevada produced 2.8-M of Gold in Y 2010, more than the Company's mines in South America, Australia and Africa, according to corporate reports.
Newmont Mining Corporation mined 1.7-M oz's of Gold in the state last year, more than in Australia, Indonesia and Africa.
Barrick Goldstrike estimates that its Nevada mining claims contain 39.2-M more ounces of Gold, more than Chile, Argentina, Australia and Africa.
Newmont estimates its Nevada holdings contain 28.5-M oz's, more than Australia, Africa, South America and Indonesia.
The rising Gold price, having hit a new record recently, and is trading at 1,781.75 oz Tuesday. That is expected to bring more dollars to the state.
Gold mining is a major industry in Nevada, the World's 4th largest Gold producer. The state's Gold production now accounts for 79% of the Country's total.
Nevada's Gold reserves are estimated at 200-M oz.
Mining companies are rushing to start drilling in rural Nevada, which boosts both local and state economies.
"Mining is important to our rural counties in terms of jobs and the wages that those jobs pay, as well as the overall economic impact to the rural community," said Jeff Fontaine, executive director of the Nevada Association of Counties.
Mining companies pay up to 5% in county and state taxes, so the more minerals they mine and sell, the more money the state will get.
Gold mining is counter-cyclical, Mr. Fontaine said. So when the economy is down, the Gold price is up. It's a boom and bust type of industry, he said.
Nevada was made famous in Y 1859 by the discovery of the Comstock Lode, the Country's richest known Silver deposit.
Large quantities of Gold, Silver, Copper, Lead, Zinc, Mercury, Barite, and Tungsten have been mined in the state ever since. Cruse Oil was discovered there in Y 1954.
But now, Gold far exceeds all the minerals produced in Nevada in value of production.
Paul A. Ebeling, Jnr.
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.