Mining experts heard presentations Monday ranging from blast excavation and copper processing to an update on a study that could lead to the reopening of the Climax molybdenum mine near Leadville.
More than 4,000 members of the mining industry were expected to attend the 109th National Western Mining Conference, which runs through Wednesday at the Colorado Convention Center.
Production value of mining and energy in Colorado last year was about $11.3 billion and is expected to reach $12.5 billion this year, said James Cappa, chief of the mineral-resources section at the Colorado Geological Survey.
In 2006, natural-gas production alone in the state was about $7 billion, Cappa said.
“Natural gas is really the driver,” he said.
The price of molybdenum, which is used in making steel, engine lubricants and other materials, is fueling a boom in mining that ore. Molybdenum is selling for about $25 a pound.
Sparked by demand for the metal in developing nations, production of molybdenum soared last year, boosting the value of mineral production in the state to $1.6 billion.
Phelps Dodge, owner of the Henderson molybdenum mine near Empire, is conducting a feasibility study on reopening its Climax moly mine by 2009.
The study is expected to be finished by August, said James Arnold, general manager of Climax Molybdenum, a Phelps Dodge subsidiary.
“Climax is the best unmanned molybdenum-ore body on Earth right now,” he said.
The ore at the mine is high- grade, and production costs would be low, Arnold said.
There are about 500 million tons of ore that can be recovered at the historic mine, and the company has said it would cost $250 million to reopen it.
If the recently announced acquisition of Phelps Dodge by Freeport-McMoRan Copper & Gold Inc. for $25.9 billion in cash and stock is completed, the two companies could be merged by the time the study is completed, Arnold said.
“If they want to put the money into Climax, we will start up right away,” he said. “If not, we could wait awhile. It is a matter of priorities when they want to do it. If moly prices stay up, I think we would start design work and start up in late 2009.”
The mining conference, sponsored by the Colorado Mining Association, is being held in conjunction with the annual meeting of the Society for Mining, Metallurgy and Exploration.
Staff writer Tom McGhee can be reached at 303-954-1671 or tmcghee@denverpost.com.
