Mining industry prepays $123 million in taxes

ELKO (AP) - The Nevada mining industry's net proceeds tax payments have soared to about $123 million for 2010, up from $97.5 million in 2009 and $91.8 million in 2008.

University of Nevada, Reno associate economics professor John Dobra told the Elko Daily Free Press that the latest figure is far more than expected and due to higher gold prices.

Gold prices currently are hovering around $1,250 an ounce and have continuously been above $1,000 an ounce since October 2009. The average gold price in 2009 was $972 per ounce.

The mining industry agreed to prepay its 2010 net proceeds of mining taxes to help the state deal with its budget crunch.

Nevada is the world's sixth largest gold producer behind South Africa, Australia, China, Russia and Peru.