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Show REMARKS BY E. W. LITTLEFIELD AT THE BUSINESS COUNCIL IN HOT SPRINGS, VA. MAY 9, 1969 In the space of 12 minutes I have been asked to cover inflationary trends in the mining and construction industries. I do not propose to give the two industries equal time for their contributions to inflation in the economy are not of equal importance. Domestic mining accounts for only about 2% of the gross national product. However, the impact of mineral prices on the economy is considerably larger because among the major minerals the United States is self-sufficient only in coal. We rely on imports for a substantial portion of our needs in copper, lead, zinc, iron ore, and bauxite. Therefore, the prices of these metals are determined in the international markets and are responsive to the balance between supply and demand throughout the world. Domestically the mining industry, like other industries, has had increasing wage rates and has had to pay more for the materials and equipment that it buys. The increase in wage rates last year averaged 18.7 an hour - about in line with the national average. On the other hand, the mining industry in the United States has had to face other special conditions that tend to increase costs: lower grades of ore; higher stripping ratios or deeper mining; newer regulations relating to conservation. In the face of these obstacles, they have minimized their impact on costs through advanced technology and heavy investment in more |