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3M Mining Project Proposal Essays

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Executive Summary
Summary and Conclusions
The proposed 3M mining project would provide measurable benefits to the Shasta County economy. It would also provide much needed revenue to Shasta County, as well as its incorporated cities, and schools. Economic activity would be enhanced through expenditures for construction, maintenance, fees, taxes, capital expenditures, and general day to day operations. Spending by the mine during construction will give a large one time boost to the Shasta County economy, and annual operation costs will provided economic and fiscal impact far into the future.
Introduction
The 3M Company out of Minnesota has proposed the construction of a mine on property that the company owns in Shasta County California near the City of Shasta Lake. The property that would be containing the mine is approximately 1900 acres. The focus of the mine would be on sand and gravel but permitting and mine construction could take as long as three years. It is assumed that the mine will be capable of working at full capacity for XXXX years after it becomes fully operational.
Total Economic Impact (Capital, Operational, and Employee Compensation)
The construction of 3M’s mine would provide a significant one time boost to Shasta County’s economy. Employee Compensation and other operation expenses are annual and continue into the foreseeable future. The total economic impact examined in this report is the impact of the mine construction (capital expenses) and one year of operating costs and employee compensation. The results of the IMPLAN input-output model indicate that total county business revenues would increase by $57.7 million, with nearly $23 million of that added revenue generated in the construction sector. Lab...


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... million, would occur in the construction sector. Other sectors seeing a significant increase in sales because of mine construction include utilities ($11.3 million), retail trade ($4.3 million), and real estate ($3.1 million).
Table 1 presents the Shasta County business revenue increases by aggregated NAIC’s sector (North American Industrial Classification). The entries include only those sales by businesses located within the county. Some additional sales will occur at businesses in nearby counties, which will produce some feedback in Shasta County in the form of added retail and other sector sales. For example, a person working in Shasta County on construction of the mine, residing in Tehama County, will make some of his or her retail purchases in Shasta County. However, these effects are not included in the impact calculations or the sector business revenues.



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