Arizona copper towns brace for mine reopenings
By MAX JARMAN, The Arizona Republic
PHOENIX -- Faded copper boomtowns in the Pinal Mountains, 85 miles east of Phoenix, are about to boom again.
Soaring copper prices have companies scrambling to open new mines in the mineral-rich Globe-Miami Mining District or restart older operations that were closed when metals prices plunged a decade ago.
But the historic Gila County mining towns of Globe and Miami are not prepared to handle the renewed mining activity in the area and the up to 1,000 new jobs it is expected to bring.
"We have not planned for this," Miami Vice Mayor Ray Webb said.
Many of Miami's houses and commercial buildings were abandoned years ago and are crumbling and uninhabitable. Neither Miami nor Globe, four miles to the east, has enough dwellings to accommodate the new miners and their families. Miami's aging water and sewer systems can barely handle existing residents, and in Globe there is little private land available to build homes.
"We're just getting by now," said Ed Carpenter, vice president and manager of the Sunstate Bank office in Globe and president of the Southern Gila County Economic Development Corp.
Currently, there are about 575 construction workers employed in the area getting Australian mining giant BHP Billiton Ltd.'s closed Pinto Valley Mine ready to reopen this fall.
Hundreds more workers will arrive in June to begin work on the new Carlota copper mine near Pinto Valley. And it's possible that Phelps Dodge could reopen its Miami Mine, putting more people to work.
When BHP and Phelps Dodge Corp. closed their Miami mines in 1998 and 2001, copper was selling for 65 cents a pound. Now, thanks partly to China's burgeoning economy, copper is going for around $3.25 per pound and was as high as $4 last year.
Mark Blakely, project manager for the new Carlota Mine being developed by Quadra Mining Ltd. of Vancouver, British Columbia, said financing is in place for the $220 million mine and that construction is expected to begin in June. About 400 people will be employed during the construction phase, which will last until August 2008, when the mine is scheduled to open with about 200 full-time employees.
"It's going to get pretty busy around here when we both get up and running," Blakely said. "There will be a lot of jobs and a lot of money being spent."
Workers at Pinto Valley already have gobbled up much of the available housing in the area. Motels, even frilly bed-and-breakfast inns, are booked up with construction workers, particularly during the week,
"Before, we would sell maybe 10 rooms a night," said Bobby Kapoor, manager of the 40-room Super 8 Motel in Globe. "Now, we're selling 35 to 40."
The area also is feeling pressure from Phelps Dodge's new Safford mine, 75 miles southeast of Globe. Many of the more than 600 people working on the new mine are living in the Globe-Miami area and commuting to Safford, where there also is a critical housing shortage.
Globe Mayor Stanley Gibson said that the community has formed a housing committee to encourage home construction, but it could be a year or more before new houses are available.
Despite the lack of preparedness, residents and businesses that hung on through a decade of tough times after mines closed are jubilant about the renewed mining activity and the prospect of good local jobs.
Maryan Jones, 19, of Globe, was commuting 170 miles round trip to a construction job in Phoenix. Now, he drives five miles to Pinto Valley, where he is on a construction crew getting the mine ready to reopen.
"It's easier than driving to Phoenix," he said, noting that working close to home allows him to spend more time with his young son.
But Ed Gardea, manager of Ortega Shoes in Globe, notes, "It's always been feast or famine in Globe.
"Before the mines closed, there were strikes and people were out of work for months at a time."
Besides Pinto Valley and Carlota, Resolution Copper Co., a limited liability company made up of BHP and another mining giant, London-based Rio Tinto Plc, is developing an underground copper mine about 15 miles west of Miami, near Superior.
The project hinges on a land exchange with the federal government that would give Resolution Copper control of the property surrounding the mine site. If it goes through, the project will employ 1,000 people during construction and 400 permanent miners when open, perhaps by 2017.
Another possibility is the reopening of Phelps Dodge's Miami mine, which was closed in 2001. If the mine is reopened, it could create another 300 jobs.
Freeport-McMoRan Copper & Gold Inc., which in March paid $26 billion for Phelps Dodge Corp., said it would boost production to take advantage of high copper prices. That could include reopening old mines, such as Miami.
"Our mines on 'care and maintenance' can always be brought back," Phelps Dodge spokesman Ken Vaughn said.
Ironically, the decision to reopen Pinto Valley comes as BHP, the world's largest mining company, is completing the permanent closure of its underground copper mine in San Manuel. It once employed more than 3,000 miners.
San Manuel and Pinto Valley, which had 450 miners at the time, both closed in 1998 when copper prices plunged. The Miami area was hit again two years later when Phelps Dodge Corp. closed its open-pit copper mine in Miami, putting 300 people out of work.
While the San Manuel mine was permanently closed, Pinto Valley was kept on "care and maintenance" so it could be restarted in the event copper prices rebounded.
"When we shut the mine, copper was 65 cents a pound," noted Francis McAllister, a spokesman for BHP's Pinto Valley operations. "Now, it's selling for over $3."
BHP recently held a job fair in Miami to enlist permanent employees for the mine, which is expected to operate for five years, or until the ore is depleted.
"This town needs something to wake it up," said Stella Henderson, who has lived in Globe for more than 50 years. "Look around. It's pretty dead."
The goal of the story comments section at NapaValleyRegister.com is to have an open, thought-provoking, civil community forum for all issues.
What gets your comment posted?
• Staying on topic
• Keeping your comment to 300 words or less
• Avoiding name-calling
• Addressing your comments to the message rather than the messenger
What gets your comment deleted?
• Personal attacks
• Derogatory remarks
• Name-calling of any sort
• Going off-topic
• Hate speech
• Racially-insensitive comments
• Implying guilt of a subject in a crime story before there is a court verdict
• Posting e-mail addresses
• Posting comments of a commercial nature
• POSTING WITH ALL CAPITAL LETTERS
• Linking multiple comments together with "to be continued..." to get around the 300 word limit.
The fine print
- Comments are either approved or denied. We do not edit comments.
- You are welcome to modify and resubmit a denied comment.
- Comments may take several hours to be posted.
- Comments posted are those of the writer, and do not necessarily reflect the opinion of NapaValleyRegister.com, its employees or its parent company.
- Do you have information on a story? Please go to our
virtual newsroom to send us a news tip.
- If you feel a posted comment has violated our guidelines, please contact
online@napanews.com or add a comment indicating you have an issue and our moderators will review the comment in question.