Arizona mineral resource

              ARIZONA

No. 29 November, 2001

Mineral Resource
BLM's Final Rule
On October 25 the Interior Department's Bureau of Land Management (BLM) issued new mining regulations that removed the controversial provision giving the Interior secretary authority to prohibit new mine sites. The final rule will take effect on December 31. The `3809' surface mining regulations, which apply to hard-rock mining on public lands, retain the strict bonding requirements that the Clinton administration added in the last days of office. Gone, however, is the controversial provision that would have allowed the Interior Secretary to veto new mines that would cause "substantial irreparable harm." The mining industry particularly objected to that provision because it was subjective and gave the BLM unlimited veto power over new and revised mining operations. The current mining rule, which became effective January 20, 2001, will continue to provide the regulatory framework governing mining, as amended by the recent ruling. The final 3809 rule can be obtained from any of the BLM's State Offices or accessed from the Bureau's web site, www.blm.gov/nhp/news/regulatory/index.htm.

Phelps Dodge Announces Cutbacks
On October 23 Phelps Dodge Corporation announced the layoff of approximately 1,500 employees, including almost 800 Arizona workers. Phelps Dodge's goal is to curtail copper production by 243,000 tons annually. "For several months, we have been operating in an increasingly difficult economic environment," said Phelps Dodge Chairman, President and Chief Executive Officer J. Steven Whisler. "We've seen the COMEX price of copper fall from 80 cents per pound in March to 65 cents per pound in early September." " We also have experienced increasing softness in the markets Phelps Dodge Industries serves. We now are facing one of the more extraordinary and uncertain economic climates in the past 30 years. Phelps Dodge consistently has taken aggressive action to shape its future, and we are determined to continue to chart a successful course independent of variables we do not control." The affected mines in Arizona are Miami, where the mine and refinery will be temporarily closed, and Sierrita and Bagdad, which will operate at one-half capacity. Phelps Dodge purchased all three of the Arizona properties from Cyprus Amax Minerals in 1999. Morenci, Phelps Dodge's flagship operation in Greenlee County, will not be affected. The Chino mine Bagdad Mine A view of the autogenous mill at Bagdad in Yavapai County. Phelps Dodge will be cutting production in half by January.

Arizona Department of Mines & Mineral Resources, 1502 W. Washington, Phoenix, AZ 85007 602-255-3791, toll-free in Arizona 1-800-446-4259, www.admmr.state.az.us

Arizona Mineral Resource

No. 29 November, 2001

and smelter in New Mexico will also be closed. The cut- copper anodes. Our U.S. rod mills will not be affected by this plan." backs, expected to be completed by January 15, will reAsarco, the other major copper producer in the State, has sult in a 20 percent reduction in production, or about yet to announce plans for any changes in their Arizona opera243,000 tons. tions. Asarco operates Ray, Mission, and Silver Bell mines The Miami mine in Gila County consists of an and the Hayden smelter. Even with the announced cutbacks by open-pit, an SX-EW plant, a 650,000-ton-per-year caPhelps Dodge, Arizona remains the Nation's largest producer pacity smelter, a 380-million-pound-annual capacity of copper. electrolytic refinery, and a 135,000 ton-per-year rod plant. The mine produced 119 million pounds of copper in 2000. Arizona production of copper and gold, Sierrita in Pima county conplotted with price, for the last decade. sists of an open-pit copper-molybdenum mines, a 115,00  ton-per-day concentrator, two molybAriz ona Copper denum roasting plants, a ferro- molybdenum plant, a rhenium plant, and an 1.60 1500 oxide and low grade sulfide dump 1400 leaching operation with SX-EW plant. 1.40 1300 Sierrita produced 245 million pounds 1.20 of copper in 2000. 1200 Bagdad in Yavapai County con1100 1.00 sists of an open-pit cop1000 0.80 per-molybdenum mine, an 900 85,000-ton-per-day concentrator, an 0.60 800 oxide dump leach operation, and a 700 0.40 30-million-pound-per-year SX-EW 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 plant. Bagdad produced 247 million pounds of copper in 2000. Produc tion Pric e The cuts come in response to reduced demand and declining copper prices. Inventory levels have remained high and now stand at more than three times the optimal level. At the Ariz ona Gold end of October copper was 61.5 cents a pound a 14 ½ year low. The weak250,000 ened global economy is a big factor in 400.00 200,000 the decline in demand. "This temporary curtailment 350.00 150,000 plan will reduce copper production while maintaining our core workforce 300.00 100,000 and the operational readiness of our properties so that resumption of the 250.00 50,000 shuttered production can be effected quickly and efficiently," Whisler says. 0 200.00 "The plan also will maintain our inter1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 nal production and consumption balProduc tion Pric e (2000 figure withheld) ances of concentrate, sulfuric acid and
Production, Troy Ounce Average Price, $ per oz
Average Price, Dollars per Pound Production, Thousand tons

No. 29 November, 2001

Arizona Mineral Resource

Spare Tire Crane operator Terry Jones and flat-bed truck driver Tim Gilsdorf position a 10,000 lb. tire in the west storage yard of the Department. The 13-foot diameter tire will remain in storage only until a place is prepared for it in front of the Museum. The tire, from a mine haul truck at the Sierrita Mine in Pima County, was donated by Purcell Western States Tire. APS donated the transport and the crane to unload it. The tire will make a dramatic addition to the outside displays.

The Department website is being expanded and improved on a continual basis. If you haven't visited lately you will find many more of the Department publications online. The Museum brochure is available as a PDF, many of the Circulars are available, the Rockhound page is newly updated, and the Mining Links page could prove very useful. No, the AzMILS database is not online, you still must come in to access it or purchase the maps and index by county. The complete database for the State is available digitally on a 3.5" PC-compatible floppy disc.

www.admmr.state.az.us

Arizona Mineral & Gem Shows The gem show season is in full swing. The following is a partial listing of upcoming shows. For a complete and detailed listing, request Circular 94 or visit the Department website.
  Nov. 30 Wickenburg Gem & Art Fair   Jan. 4 Tyson Wells Sell-A-Rama   Jan. 4 Flagg Gem & Mineral Show   Jan. 18 Gila Co. Gem & Mineral Show   Jan. 23 Quartzsite Pow Wow   Jan. 26 Arizona City Gem & Min. Show   Feb. 9 Wickenburg Gold Rush Days   Feb. 14 Tucson Gem & Mineral Show   Feb. 23 Apache Junction Mineral Show   Feb. 23 Az. Mining & Mineral Museum's Prospectors Day   March 1 Phoenix Gem & Mineral Show

Do you need this information in an alternative format? Please call the Department at 602-255-3795.

Arizona Mineral Resource

No. 29 November, 2001

2002 Mineral Symposium A date has been set, and a call for papers issued, for the Tenth Annual Minerals of Arizona Symposium. The symposium, co-sponsored by the Museum and the Arizona Mineral and Mining Foundation, will be held Saturday, March 23, 2002 at the Museum. Anyone interested in presenting a paper related to Arizona minerals or an Arizona mineral locality may send an abstract to Ray Grant, 3262 W. Monterey Street, Chandler, AZ 85226 before February 1, 2002. The final program, will be announced in February.

BOARD OF GOVERNORS
Sydney Hoff-Hay Chairman Phoenix James Miller Vice Chairman Sun Lakes Leroy Kissinger Secretary - Tucson David C. Ridinger Member - Tucson Eric A. Nordhausen Member - Tucson

W. "Doug" Sawyer Director Ken A. Phillips - Chief Engineer Nyal J. Niemuth - Mining Engineer Diane Bain - Editor Ann Turney - Administrative Assistant Tina Mendoza - Secretary Susan Celestian -Curator Scott Poland Education Curator Liz Anderson - Tour Guide Ann Baker - Tour Guide Shirley Cotà - Tour Guide Joanne Hesterman - Tour Guide Alice Rosenfeld - Tour Guide

STAFF

Arizona Department of Mines & Mineral Resources 1502 West Washington Phoenix, Arizona 85007
Address Correction Requested