WHAT'S IT WORTH? ECONOMIC IMPACT OF NEW YORK'S MINING AND CONSTRUCTION MATERIALS INDUSTRY

According to US Bureau of Mines and US Geological Survey data, the State of New York has ranked 15th among the 50 States in total non-fuel mineral value for the past 25 years. This rank is based on a voluntary survey of a few hundred of New York's approximately 2500 permitted mines. The most recent (2005) USGS value for non-fuels minerals produced in New York is $1.29 billion, which does not reflect indirect or spillover values. Actual and perceived value enters into permitting and siting decisions by local and state regulatory and planning agencies regarding mines, mineral processing plants and ancillary facilities. Consequently, an economic impact study was performed to determine the true value of New York's mineral industry. The analysis included all commodities mined in New York: crushed and dimension stone, sand & gravel, clay, garnet, peat, salt, talc, wollastonite, and zinc as well as the cement, hot mixed asphalt (HMA) and ready-mix concrete (RMC) industries. Using IMPLAN, a regional input-output economic model, preliminary data for 2007 indicate that these industries generated $897.2 million in wages and 19,900 jobs in New York. Total sales for the same period for mining, HMA and RMC were $3.187 billion. A conservative estimate of the fiscal impact shows that the industries generated New York and local sales tax of $24.3 million, New York personal income tax of $27.5 million and corporate tax (mining only) of $5.8 million. Voters, and hence municipalities, often prefer that a mine or construction materials facility not be located in their community. The economic impact of these preferences is seldom considered. In order to estimate this impact, the effect of NOT having mines proximal to construction sites was evaluated. Crushed stone is heavily used by the New York State Thruway. As a modeling exercise, both one quarter and one half of the mines supplying the Thruway's needs were randomly eliminated as material sources and changes in transportation costs were calculated at diesel fuel costs ranging from $3.00 to $5.00 per gallon and including labor, depreciation, insurance, and overhead. Eliminating one quarter of the mines increases the annual material transportation costs to the Thruway increase by 42%. Removal of one half of the mines increases transportation costs by 59%.