Mining Benefits Illinois Economy

mining in a quarryIn response to an outside request, Subhash Bhagwat provided information regarding the beneficial economic impacts to the local economy of a new mining operation. The impact of any primary employer (mining or any other) in the immediate region is quite similar and comparable. The multiplier effect on the economy is influenced by such factors as (1) spending by employees, (2) money spent by the mine for contractual services hired from the region and its further ripple effects, (3) institutions and businesses (schools, hospitals, shops, etc.) in the region generating economic activities that would at least be diminished without the mining activity, (4) taxes paid to local governments, and (5) construction businesses that directly depend on the mined materials. The employment multiplier can be assumed to be 1:3. That is, three additional jobs are created for every job in the new mine. In dollar terms, the multiplier can vary from 2.5 to 3, depending on differences within the mining sector. Coal mines, for example, deliver coal to power plants that can be close or far away. Construction aggregates, however, are sold mostly within 20 to 30 miles of the mine. Wages in coal mines may also be higher than in pits or quarries. It would probably be fair to assume the overall dollar multiplier to be $2.50 to the Illinois economy for each $1.00 spent for mining.