The Economic Impact of Ferrous and Non-Ferrous Mining

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The Economic Impact of Ferrous and Non-Ferrous Mining for Lake Superior Bi-National Forum :

The Economic Impact of Ferrous and Non-Ferrous Mining for Lake Superior Bi-National Forum March 15, 2013

Description:

Description Impact Procedures, Definitions, and Assumptions Mining Suppliers Taxes and Mineral Receipts Ferrous Mining Construction and Operations Impacts Non-Ferrous Mining Construction and Operations Impacts Expansions and New Projects Impacts

Study Area:

Study Area 1. Minnesota 2. Arrowhead Region Note: Impacts are only shown for the State of Minnesota

IMPLAN Input/Output Analysis:

IMPLAN Input/Output Analysis I/O starts as an accounting procedure It ends as a predictive model and an impact assessment tool. IMPLAN models address economic impact analysis, not cost-benefit analysis It can be used for descriptive or analytical purposes

PowerPoint Presentation:

“The agencies in USDA have elected to use the concepts and techniques embodied in your firm's IMPLAN model. It is one of the most credible regional impact models used for regional economic impact analysis.” USDA Letter to MIG ─ April 2009

IMPLAN Output Caveats :

IMPLAN Output Caveats Local or export based purchases that represent transfers from other potential local purchases are not counted The numbers (from U.S. Department of Commerce secondary data) treat both full- and part-time individuals as being employed Assumptions need to be made concerning the nature of the local economy before impacts can be interpreted

IMPLAN Definitions :

IMPLAN Definitions Measures Value Added: The impacting industry’s contribution to the local community; includes wages, rents, interests, and profits Output: The value of local production required to sustain activities Employment: Estimates are in terms of jobs, not full-time equivalent employees; may be temporary, part-time or short-term

IMPLAN Definitions:

IMPLAN Definitions Effects Direct: Initial spending in the study area resulting from the project Indirect: Additional inter-industry spending from the direct impact Induced: Impact of additional household expenditures resulting from the direct and indirect impact

IMPLAN Models:

IMPLAN Models Models for Ferrous and Non-Ferrous Mining include Construction Operations Model impacts use the most recent data available (2010) Impacts are reported in 2012 dollars

Model Assumptions:

Model Assumptions The BBER assumes that these projects are proceeding as planned Construction years: 2012-2016 Operations year for full capacity: 2016

PowerPoint Presentation:

Source: MN DNR, Division of Lands and Minerals

Time Line Assumptions:

Time Line Assumptions Impact Year 2016

GRP Northeast Minnesota 2010:

GRP Northeast Minnesota 2010 Total GRP: $14.9 Billion

Ferrous Mining Suppliers and Their Contribution to Mining Production:

Ferrous Mining Suppliers and Their Contribution to Mining Production

Ferrous Mining Mineral Receipts:

Ferrous Mining Mineral Receipts

Ferrous Mining Construction Total Impact:

Ferrous Mining Construction Total Impact

Non-Ferrous Mining Construction Total Impact:

Non-Ferrous Mining Construction Total Impact

Key Results for Minnesota:

Key Results for Minnesota

Key Results for Minnesota:

Key Results for Minnesota

Key Results for Minnesota:

Key Results for Minnesota

Key Results for Minnesota:

Key Results for Minnesota

Key Results for Minnesota:

Key Results for Minnesota

Key Results for Minnesota:

Key Results for Minnesota

Key Results for Minnesota:

Key Results for Minnesota

Contact:

Contact Jim Skurla , Director Bureau of Business and Economic Research (BBER) 213A Labovitz School of Business and Economics 1318 Kirby Drive Duluth, MN 55812 218-726-7895 jskurla@umn.edu https://lsbe.d.umn.edu/uploads/FINAL%20Mining%202012%20Report.pdf

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