Economic Impact of Lead and Mining

2013
Mining in the U.S.
Minerals drive the U.S. economy and support our modern lifestyle. Annually,
each American consumes 45,557 pounds of minerals1 critical to the transportation, communications, construction, healthcare, military, consumer products
and technology fields. Minerals and related industries contribute more than
$2 trillion annually to the economy.2
Exploration, mining and metal production represent some of the highest paying
jobs of any industrial category. Annual salaries average more than $85,000 and
often climb to well over $100,000 for experienced workers.2
U.S. mining in 2010:
■
Supported 1.98 million jobs, including 627,650 direct and 1,353,400
indirect jobs.3
■
Expects to add 11,000 to 13,000 jobs annually over the next two decades.1
■
Generated $119 billion in U.S. labor income.3
■
Added $225 billion to the GDP.
■
Contributed $50 billion in federal, state and local taxes.
3
Mining in Missouri
billion
$2.7
Mining plays a significant role in Missouri’s
workforce and economy. Missouri’s lead mining
district is world-class in both size and purity of lead.
$
Added
5 billion
in GDP
■
Adds $5 billion in GDP through direct and
indirect economic activity.3
■
Directly employs 16,850 people and supports
49,290 total jobs.3
■
Pays an average salary of $68,698, which is 65 percent higher than Missouri’s
average salary.4
■
Contributes nearly $979 million in income and payroll taxes from Missouri
workers, including $356 million in state and local taxes.3
■
Generates 2 percent of the state’s GDP.3
8 Additional content online at www.doerun.com
$1
annually in direct
earnings from mining
payroll.3
3
Mining in Missouri annually:
Missouri mining provides:
billion
annually in total
Missouri wages.3
T H E D O E R U N CO M PA N Y
The Doe Run Company’s Economic Impact
For more than 300 years, lead and zinc have been mined in Missouri from
large deposits of host rock in Southeast Missouri.
The Doe Run Company (Doe Run) traces its history to 1864 when its
predecessor, the St. Joseph Lead Company, purchased land in Southeast
Missouri and consolidated local mining operations. Today, Doe Run is one of
the largest integrated lead producer in the world. It operates one of the world’s
largest, single-site lead recycling facilities, the world’s second largest lead
mining district and the last remaining primary lead smelter in North America.
Lead is the third
most used
standard material
by the Department
of Defense.5
Missouri is home to the complete closed-loop
supply chain for lead and lead products providing
tremendous potential to further leverage and develop
business opportunities at all points in the supply chain.
Three battery manufacturing companies operate
in Missouri, taking advantage of their proximity to
lead metal.
Committed to sustainable operations, Doe Run prepares an annual
sustainability report to share its economic, environmental and social
contributions.
Doe Run’s total economic impact
is nearly $1 billion annually.6
■
Doe Run contributes $318 million
annually to Missouri household
incomes.6
■
Doe Run generates more than
$30 million per year in taxes
for Missouri.
■
Doe Run employs 1,545 people
in Missouri.
8 Additional content online at www.doerun.com
■ Two-time winner of St. Louis
Green Business Challenge
Merit and Circle of Excellence
Award.
■ Recipient of 25 Mine Safety
and Health Administration’s
Sentinel of Safety Awards, the
highest safety honor in the
U.S. mining industry.
■ Five-time winner of The
Business Communications
Report Apex Award for annual
reports.
■ Frequent winner of local,
FAST FACTS:
■
Awards and Certifications:
■
■
In 2012 Doe Run spent more than
$217 million on Missouri-based
suppliers.
Since 1994, Doe Run has spent
more than $67 million on
remediation at former mine sites
and in surrounding communities
within St. Francois County, Mo.,
(Old Lead Belt).
regional and national mine
rescue competitions.
■ Holds numerous certifica-
tions from the International
Organization for
Standardization.
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T H E D O E R U N CO M PA N Y
Organizational Overview
Southeast Missouri Mining and Milling Division
Missouri is home
Doe Run’s complete lead lifecycle begins with
to some of the
exploration. Doe Run operates six underground mines
richest mineral
within the Southeast Missouri Mining and Milling
deposits in
Division (SEMO). Here, ore containing lead (galena),
the world.
zinc (sphalerite) and copper (chalcopyrite) is located,
blasted, crushed and hoisted to the surface, then
concentrated at Doe Run’s four mills. The SEMO division produces 250,000 tons
of lead ore concentrates annually. Doe Run’s high-purity concentrates are highly
desired by smelters and traders around the globe.
Primary Smelting Division
The transformation of lead concentrate into some of the world’s purest lead
and lead alloys takes place at the Herculaneum, Mo., smelter, operating since
1892. Doe Run’s primary smelter processes about half of all lead concentrates
extracted from Doe Run’s Southeast Missouri mines. The facility smelts the lead
concentrate into primary lead metal (versus recycled lead) and lead alloys. The
copper and zinc concentrates are sold to other metal producers. Herculaneum
produced 129,993 tons of finished lead metal and alloys in 2012.
Buick Resource Recycling Division
The Buick Resource Recycling Division (BRRD) processes more than 460 million
pounds of lead-bearing materials each year, including 13.5 million lead-acid
batteries. As one of the world’s largest, single-site lead recycling centers, BRRD
helps complete the lead lifecycle with the capacity to produce more than
160,000 tons of refined lead and lead alloys each year.
Fabricated Products Inc.
Fabricated Products Inc. (FPI) is a wholly owned Doe Run subsidiary. FPI’s
Vancouver, Wash., location primarily produces lead oxide for the manufacturing
of lead-acid batteries. Lead metal fabrication takes place at the Casa Grande,
Ariz., location.
8 Additional content online at www.doerun.com
Did you know?
Missouri’s Old Lead Belt
and Viburnum Trend have
produced more than
90 percent of the primary
lead supply in the U.S.
90%
Lead metal markets:
■ Global demand for lead
is high and expected to grow
5 – 6 percent annually to
16 million metric tons per
year by 2025.
■ The greatest competition
for both lead production
and consumption for the U.S.
is China, which is the world’s
largest producer contributing
approximately 61 percent of
the primary lead production
globally.
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T H E D O E R U N CO M PA N Y
Lead: The Most Sustainable and
Recyclable Metal
Doe Run’s largest metal customers are U.S. corporations that produce batteries
for all applications. Eighty percent of lead is used in production of batteries,
which start more than 800 million passenger vehicles globally, power
commercial transportation, store energy from solar and wind farms, provide
uninterruptable emergency power, and enable energy grid load-leveling.8
In addition to the automobile industry, lead supports many other industries:
■
Energy — power storage for load leveling and uninterruptable power source
and nuclear protection and storage.
■
Military — bullets, submarines, tanks, ships and ignition systems.
■
Construction — earthquake stabilizers, weather- and sound-proofing.
■
Healthcare — backup power, radiation and nuclear medicine protection.
■
Transportation — airport security, air-traffic control power, railroad crossings
and ignition.
■
Technology & Communications — backup power.
■
Consumer products — radiation protection, television and computer screens.
98%
With a
or higher recycle
rate, lead-acid
batteries are the
most recycled
consumer product.7
The Future of Lead
One of the most promising future uses for lead is the
lead-carbon battery and its application to micro-mild hybrid
vehicles. Other battery chemistries present in mild hybrids
add significant cost to vehicles and do not offer the high
recycle rates of lead batteries. Micro-mild hybrid vehicle
sales are projected to grow to 39 million vehicles by 2017,
creating a $6.9 billion market for energy storage devices.9
The prototype LC Super Hybrid battery technology received
a Low Carbon Innovation award from the U.K.’s Low Carbon
Vehicle Partnership. Learn more at www.alabc.org.
Emerging Workforce Trends in the U.S. Mining Industry, Society for Mining,
Metallurgy & Exploration, 2012
2
Minerals Make America, National Mining Association (NMA)
3
The Economic Contributions of U.S. Mining in 2010, NMA
4
Annual Mining Wages vs. All Industries, NMA, 2011
5
Reconfiguration of the National Defense Stockpile Report to Congress,
U.S. Department of Defense, April 2009
1
2008 Development Strategies Economic Study produced for
The Doe Run Company
Battery Council International (BCI)
8
International Lead Association and BCI
9
Lux Research
6
7
2013