Elko Tourism & Visitors Bureau

That we are the County Seat, Elko hosts the regional headquarters for the two largest gold producers,
and our location on I-80 and a crossroads in rail transport, make us a good bet for the long term

The 2008-2010 Recession provided a “wake up call” to today’s jobseekers. Many witnessed friends who graduated in previous years who thought they had their “dream job” – they moved to a community on the rise, but it crashed along with their career opportunity. While many cities in America can ride roller coasters with their economy, Elko has steadily plodded forward. We’re not flashy. We’re slower to change with fads or economic whims.

Elko County all but missed the economic downturn because we host the regional operations for the two largest gold mining companies in the world. Gold is often sought by investors during turbulent economic times and drops in the stock market, and the companies here have strategically managed growth as the price of gold has risen. As the “hub” of our region for government, transportation, basic retail shopping, as well as being center to many businesses, and state and federal in the region, Elko is proud to boast a diverse economy that doesn’t rely totally on the Gold Industry.

Our convention center hosts an annual Mining Expo when more than 250 vendors descend upon Elko
in the largest expo of its kind in North America

Let’s talk about Gold: Elko hosts the regional operations for the world’s two largest gold producers: Barrick Mining and Newmont Industries. Like how ancillary businesses support an Air Force Base with government contractors or airplane manufacturers have support companies (called First and Second Tier supplies), many other companies are in Elko – from scientists, surveyors, consultants, maintenance, and transport, to name a few.

Matt Murray welcomes us to Newmont’s operation just north of Carlin, NV, which produces dora gold bars –
The size of the mining operations, which run into the billions of dollars, is hard to display, even with photos

Matt Murray, External Relations Representative, Newmont Mining Corporation
Matt welcomes you to Newmont’s Carlin, NV Mine
(Running time 1:33)
Click Here to Play
Apple/iPad

Newmont Mining, one of two goliath mining companies in our region (along with Barrick Gold), produces dore gold bars, which are 92% pure gold. A “doré” is the size of a loaf of bread. Each one weighs about 60 pounds and is worth roughly $650,000. According to Matt, employees here actually go through training on how to handle then because they are extremely dense, and therefore heavy. From here they're shipped to refiners who turn them into bullion, which is then used in electronics, dentistry, jewelry, etc.

Mining is nothing like the past with pioneers and pick axes – now it’s more about science. Most mines here produce almost 100% of their gold from deposits of micron sized, microscopic gold particles that are scientifically “harvested” from massive movements of earth in goliath open air mines. No metal detector can detect micron sized gold particles. Even a gold pan will not capture the tiny particles.

See these little trucks? They are actually 240 ton haulers. Each has 6 tires that are 10 feet tall and cost $35,000 each –
in this Carlin mine alone (see video above), Newmont operates 46 of these monsters

The Wall Street Journal featured Elko in April, 2009 and Fortune Magazine followed up later in the year with “Elko, Nevada: Where the recession never hit” – due to the gold mining operations in our region. In November 2008 Bloomberg.com featured “Elko Glitters.”

Excerpts from the Wall Street Journal, April 9, 2009:

“While Las Vegas, Reno and other onetime hot spots reel from the real-estate crash and wider recession... (Elko]) boasts 26,700 jobs, up from 25,500 a year ago, while Nevada has lost many jobs. Construction is up here, as are taxable sales....The mining companies are keeping the construction industry humming, in contrast to a near-shutdown of construction elsewhere in the state. Barrick and Newmont Mining Corp., which dominate the local mining industry, have built new office buildings in Elko with about 50,000 square feet each.

The Elko County Economic Diversification Authority started construction last month on a $14 million "rail port" that is to house six new industrial tenants, and eventually create an estimated 1,400 jobs. One of the tenants, Pacific Steel & Recycling of Great Falls, Mont., has 38 branch locations in the West and serves mostly mining suppliers here. "This is one of only four spots where we are still in growth mode," said Kelly Wilson, manager of the company's Elko operations. That kind of job-market stability has kept Elko County's unemployment rate of 6.4% in February the lowest in Nevada, where the rate has soared to 10.1%.”

Gold Facts:

• If Nevada were a country, its gold production would rank fourth in the world behind China, South Africa and Australia, and it produces 80% of the gold produced in the US.
• The industry brings into our community both white collar scientists and business executive, as well as miners from across the United States and abroad – at a local wine bar you will make new friends with international scientists, college graduates from Notre Dame to Stanford, and new residents from Florida to Wyoming.
• While the gold industry is glamorous, mining gold has become “scientific.” Naturally, mining operations have become incredibly scientific and gold miners are nothing like the old pioneers with pick axes.
• If you have ever watched movies with robbers stealing gold bars and placing them in sacks and making their getaway, this isn’t possible because gold bars are extremely heavy.
• Gold's chemical symbol is Au, named after Aurora, the Roman goddess of the dawn.

What happens if the price of Gold goes down?

These major corporations understand gold is a commodity and strategically invest to “lock in” pricing vs. their costs of operating. For example, in September of 2009 Barrick had 3 million ounces of gold in fixed price hedges and 6.5 million in floating hedges for a total of 9.5 million ounces of gold hedged, representing 128% of Barrick’s annual production for 2009. Barrick’s projected production for 2009 was 7.4 million ounces of gold. Hedges contractually obligate Barrick to sell its production at an average of about $396 per ounce, guaranteeing certainty in cash flow for the company from 2011 to 2019.

During the Recession in the late 1970s in America, the price of gold went up 750%. Between 2001 and 2009 it has risen just 250%. Could gold soar past $2,000 per ounce? No matter what direction it goes, it is nice to know these major gold producers are investing to protect their interests and their influence on our economy.

More on the Elko Economy:

According to a 2007 Buxton Retail Site Assessment, in an article written by Elko Daily Free Press Editor Marianne Kobak (immediately below), because Elko is a “hub” for virtually all business and government for all of Northeast Nevada, Elko has a retail potential of $1.38 billion. We are the county seat. We are located at a strategic highway (I-80) and rail hub (Union Pacific) location. A solid foundation for continued, measured growth is in place!

A modern touch in many downtown and regional buildings, our 2010 city administration building under construction
and that’s Elko Free Press Editor Marianne Kobak – in April, 2006 our population passed 50,000

Six casinos operate in Elko, we have Elko Regional Airport, Elko is our County Seat – we’re the region’s hub for gaming, transportation government, education, shopping, and Federal and State Parks services

Great Basin College is the education leader in Northeast Nevada, bringing important education and technical training programs that support businesses in our area from healthcare to the mining industry. See more in Schools

ECEDA Director Pam Borda with Savage Services Manager Chris Goodall giving a tour of the Rail Port

Elko’s 2009 $14 million Rail Port will create more than 1,000 jobs and will offer a compelling rail transport option to companies looking for alternatives to trucking – Elko is a natural hub between Salt Lake City and Reno and and then on to San Francisco, as well as a north-to-south between Las Vegas and Boise. Its first tenant, Pacific Steel, is a recycling company. This major storage center/rail shipping center was built by Elko to capitalize on the anticipated growth of rail transport vs. trucking and associated expensive gas prices.

Photo from Newmont

Like an airplane manufacturer or a military base, the mining companies here have many
high tech to supplier “support industries,” but there’s a lot more in Elko

Economy Photo Gallery

In 2010 our new government complex was completed behind the original courthouse in Downtown Elko –
living in the county seat has many “convenience benefits” for licenses and permitting

County Government Complex Photos

Additional Information & Growth:

Internet image

Photo from Newmont

Presidential candidate visits Elko (link below) and reclamation efforts at Newmont Mining

Geothermal Power: Many city buildings as well as Great basin College are heated by geothermal power. The system was dedicated in October 1986 with original financing of $1.5 Million. The U.S. Department of Energy provided a grant of $250,000 and the balance was paid for by the participants. Operation cost is covered by an annual $5,000 assessment to each of the four entities that receive service from the system. Individual entities must cover any costs that may be required related to their equipment operation, maintenance, repair or replacement. The system saves the users over $250,000 per year in energy costs.

Residential Development: The Ruby Vista Development, which overlooks Ruby View Golf Course and offers views of the Ruby Mountains, launched in 2010 to meet Elko’s growing need for premium housing. 3,000 residences are planned along with apartments/condominiums in the master-planned community.

Grass-fed Beef: With the growing demand for grass-fed beef, local ranchers have established successful businesses which raise breed cows until they are approximately 18 months old and then sold to another feeding operation (usually in Oklahoma or California). 20 acres is required per cow to sustain a grass feeding operation and our open spaces come in handy.

Healthcare is strong in Elko: Through direct and indirect impacts, the local health care system generates $148.7 million for the local economy each year, according to Gerald Ackerman of the University of Nevada, Reno School of Medicine Office “The Impact of the Elko County Health Care System on the Local Economy.” (2008)

Special thanks to Mary Korpi, Director of External Relations, Newmont Mining Corporation, and Pam Borda of ECEDA for their contributions to this Online Job Tour.

A principal focus of ECEDA is continuing to grow community sustainability through developing economic diversity. A signature development in 2009-2010 was the completion of the Rail Port, which is a public/private partnership – as Salt Lake City and Boise have rail hubs, with our location on an existing rail system between them, it was a natural that we develop our own regional spur for Northeast Nevada. Commended by Union Pacific, the property around the Rail Port has already been sold to light industry and off to a great start.

• Would you like to take a tour of the Newmont mining operation or meet with Pam Borda during your interviews at Northeast Nevada Regional Hospital? Just let us know!

2010 Economic Growth examples:

2011 Class A public commercial office space in Downtown for the first time – yet another sign of Elko’s growth

• In just seven months our 2010 Railport generated $21.5 million and contributed $1.2 million to tax base
• SAS Global just broke ground there
• Sears expansion in 2010, Joanne’s announced it will be in Elko in 2011
• New retail complex adjacent to regional airport
• 2010 20,000sf athletic complex and gymnasium facility opened in Elko
• Cummins Rocky Mountain diesel manufacturer opened large center in 2010
• Marriot Extended Stay hotel broke ground in 2010
• Red Hawk master-planned community broke ground in Carlin in 2010 – 500 home sites with retail
• New modern apartment complexes under construction in 2010 to meet housing needs

Spring Creek is finally coming into its own as a community due to the growth of Elko and the desire of many
for more acreage, custom-building, horses, and more “elbow room”

Formerly ranch land, Spring Creek was established three decades ago by the McCullough Development Group as a retirement community – utilities were buried underground, a golf course with lake and small marina, as well as an equestrian center were built. There is also a shooting range as well as private campgrounds here. Today, there are 5,000 lots, 200 miles of roads maintained by the community ($45 x month association fee). Due to the recent growth of population in Elko, Spring Creek has finally become a bedroom community to Elko – a bit closer to the Ruby Mountains and Lamoille Canyon and the sights, but only minutes from NNRH. Recent small developments show how Spring Creek is growing!  Spring Creek Growth Photo Gallery

Websites/Links:

Elko City: www.elkocity.com/econdev/economic_development.htm
Barrick Gold hedging: Forbes article “Bullish Move: Barrick Breaks Free From Hedges,” 9-2009
Mining Quarterly (published by Elko Free Press): www.miningquarterly.com
ECEDA Occupation Categories Brochure
EDECA Available Workforce Brochure
2007 Buxton retail site assessment Elko Daily Free Press article
Video: Presidential Candidate Obama makes his 3rd trip to Elko: www.ksl.com/?nid=148&sid=4289825
Chamber of Commerce: www.elkonevada.com
High Country News/Elko’s Diversity: www.hcn.org/wotr/14130
Western Folk Life Center’s impact (NAI article): www.arts.gov/about/40th/cowboy.html