Gold Mining in the United States

The United States maintains a strong position in the mine production rankings mainly due to the absolvement of the old Soviet Union and because of the development and discovery of massive gold reserves in Nevada. The strong increase in production which started in the 1980’s is of more than passing historic interest to gold investors. To try to assess if this growth has peaked. During the mid 1990s, the United States gold production started to decline and leveled as the decade continued to 300- to 350- ton level. In 2002, the production fell below the 300- ton level for the first time since the discoveries in Nevada. Generally speaking, the mining in the United States is a problem conducing situation. Agricultural and environmental groups along with state and local governments are pressuring and continue to act as a stop in the expansion of the industry.

As an example, four counties in Colorado, (Summit, Costilla, Gunnison, and Gilpin) which are known for their gold production in past times, have prohibited the use of cyanide heap leaching over the past few years, a situation that is being very strongly challenged by the mining industry in the courts. If a ban similar to that would occur in Nevada, where there are already environmental groups who are stirring for larger trust fund contributions to safeguard the environment, a very important part of the United States gold production would be removed from the supply-demand tables. What would result from that would be that many mining companies are concentrating their exploration capital in more friendly environs abroad from the United States.