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Economic Impact of the Mineral Industry in New Mexico, 2024

Virginia T. McLemore, Principal Senior Economic Geologist

New Mexico's mineral wealth is among the richest endowments in the United States. In 2022 New Mexico ranked 24th in production among the states. New Mexico's mineral production in 2022 includes:

  • 13th in coal (9 million tons, $352.6 million)
  • 3rd in copper (189 million pounds, $758 million)
  • 1st in potash (0.6 million tons, $412.9 million)
  • agregate (13 million tons, $13 million)
  • gold (7,537,979 ounces, $10 million)
  • 1st in zeolite and perlite

In reserves:

  • Copper reserves: milling reserves 170 mill metric tons of 0.49% Cu, 0.04 g/t Au, 0.87 g/t Ag, and 0.01% Mo; leaching 130 mill metric tons of 0.49% Cu
  • 2nd in uranium 64 million tons ore at 0.14% U3O8
    (179 million lbs U3O8) at $50/lb (EIA)
  • Coal 4.65 billion short tons of recoverable reserves
    (NMMMD)
  • Potash (>522 million tons)
  • Carbon dioxide (16 trillion feet)
  • Helium (AAPG)

In addition exploration is on-going for rare earth elements (REE), copper, gold, fluorite, barite, humate lithium, other critical minerals, and several other commodities.

Direct state revenues from mineral commodities in 2022 were

  • Coal: $6.6 million
  • Potash: $3.8 million
  • Copper: $6.2 million
  • Other commodities: $6.3 million

In a state with only 2.1 million people and a General Operating Fund budget of $7.4 billion, it is estimated that these endowments save the average New Mexico taxpayer about $1000 per year in taxes. The mineral industries also provided property and corporate income taxes while their 4,204 direct employees contributed personal income taxes. Direct employment by industry in 2021 was:

  • Copper: 1,287
  • Potash: 652
  • Coal: 862
  • Remaining producers: approximately 1,403

The multiplier effect of dispersal of these wages through local economies increases their impact many fold. A healthy mineral industry is vitally important to the economy of New Mexico and to maintenance of public education and services.

References

Updated January 29, 2024