Copper boosting local, state economies

SILVER CITY (KRQE) - Not long ago, Silver City’s economic outlook was bleak.

But today, the situation has significantly improved thanks to recently increased production at the Chino and Tyrone copper mines.

And that improvement not only benefits Silver City but the entire state as well.

“When you see storefronts closed up, and you see the community is not moving – it’s kind of slow – people are cautious about spending monies,” said Jeremiah Garcia, president of the Gila Economic Development Alliance. “(Now) it’s exciting because people are starting to spend money again. People are getting comfortable again.”

Back in 2009, the number of mining jobs in the Silver City area had shrunk to 660 after the Chino mine suspended copper production. But today, the mine employs more than 1,500 people thanks to a jump in the price of copper, according to a mine spokesman.

And that means life is better, not only for the miners, but for small business owners like Johnny Nagle, too.

He owns Nichols Welding in Silver City and currently has about six months worth of work from the mines. To get that work done, he’s paying six salaries and looking to hire at least two more welders.

“(People in town are) building houses, buying cars, putting exhausts on trucks, you know just about everything” Nagle said. “If they’re making money out there, they’re spending it here. So there’s no complaints.”

And every ounce of copper that comes out the ground means more money for the state’s coffers. That means more money for roads, schools and law enforcement.

In 2010, copper added $40 million to the state in payroll tax revenue and another $3 million in direct copper payments, said Fernando Martinez, director of the state Mining and Minerals Division.

“Really it’s the payroll and the jobs that’s the biggest benefits to New Mexico,” Martinez said. “We play such a critical role in mineral development in the country.”

New Mexico is the fourth-largest copper producer in the country behind Arizona, Utah and Nevada.