Home Archives April 2008 Oregon gold rush isn’t what it used to be

Oregon gold rush isn’t what it used to be

| Print |  Email
Tuesday, April 01, 2008

Goldbars.jpg

STATEWIDE There may be gold in them thar Oregon hills, but nobody’s mining it. Even with gold prices hovering at all-time highs in the neighborhood of $1,000 per ounce, the same dozen or so mining companies that have held mining claims for years continue to pass on Oregon while looking elsewhere, usually overseas, to capitalize on the global gold rush.

Gold spurred the settlement of northeastern and southwestern Oregon in the 19th century, but the industry has never recovered from high labor costs, tightening state regulations and the downfall of gold prices. Those prices have bounced back spectacularly as the dollar has weakened, but there are no mining companies in Oregon positioned to capitalize, says Gary Lynch of the Oregon Department of Geology and Mineral Industries.

“There’s very little exploration going on in the state, and without exploration you won’t see much mining,” says Lynch. “The industry went overseas about 10 years ago, and they may be hesitant to come back because of permitting requirements.”

Richard O’Brien, the CEO of Newmont Mining, the second-largest mining company in the world, was born in Portland, but his Denver-based company has ventures further overseas each year. Newmont formerly leased a property called Grassy Mountain, southwest of Vale, but the company wrote off its $33.8 million investment in Oregon in 1996 in favor of development in countries such as Ghana, where Newmont is building schools near its mines to train future workers.

Oregon’s days as a gold producer are long gone, but that doesn’t mean there aren’t companies cashing in on the skyrocketing metals prices. One example is Esco Corp. of Portland, a privately held manufacturer of heavy mining equipment that has seen sales growth in South America and Africa.

“We’ve definitely been benefiting from these strong prices and from the increase in global demand,” says Jon Owens, Esco’s vice president for mining and construction products. “There’s been a lot of expansion of existing mines, and when production increases we benefit.”                                                   

BEN JACKLET



Have an opinion? E-mail This e-mail address is being protected from spambots. You need JavaScript enabled to view it

 

More Articles

The Alchemist

September 2014
Tuesday, August 26, 2014
BY LINDA BAKER

David Howitt explains why Portland consumer brands like Stumptown and Voodoo Doughnuts are taking the world by storm.


Read more...

The Backstory

October 2014
Thursday, September 25, 2014

In our cover story this month, Wendy Collie, CEO of New Seasons Market, and Kim Malek, owner of Salt & Straw, discuss their rapidly growing businesses and Portland’s red hot food scene. The conversation provides an interesting lens through which to explore trends in the grocery store and restaurant sectors.


Read more...

Two sides of the coin

Contributed Blogs
Monday, August 25, 2014
0825 thumb moneyBY JASON NORRIS | OB GUEST BLOGGER

Ferguson Wellman’s investment views on the economy and capital markets.


Read more...

What I'm Reading

September 2014
Wednesday, August 27, 2014

Kim Ierian, President of Concorde Career Colleges, and Deborah Edward, Executive Director of Business for Culture & the Arts, share their recent reads.


Read more...

Powerlist: Law Firms

October 2014
Thursday, September 25, 2014
BY KIM MOORE

A conversation with leading partners at law firms in Portland and eastern Oregon, followed by October's powerlist.


Read more...

Podcast: Interview with Pete Friedes

Contributed Blogs
Wednesday, August 27, 2014

082714-thumb friedesbookTom Cox interviews Pete Friedes, author of "The 2R Manager," about becoming a Best Boss.


Read more...

Poll Wrap-Up

News
Friday, August 15, 2014

2014 NewPoll-report-newsletterthumbIn this week's poll, we asked readers: "Who should pay for the troubled Cover Oregon website?" Here are the results.


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS