Looking out the front door of his home in Reno, Nev., John Dobra can see three “For Sale” signs on neighboring properties. On his drive into work as professor of economics at the University of Nevada, he passes many more. The signs are indicators of a depressed housing market and the outward symbol of a state in economic crisis.

Nevada continues to lead the nation in bankruptcies, foreclosures and joblessness. Although Las Vegas, the state’s largest city, continues to draw tourists to its famed casinos, gaming has been hit hard by recessionary pressures. Those who are still coming to Sin City aren’t spending as much as in past years, and the growth that has driven Nevada’s prosperity for decades has ceased. The result is a state-wide record-high unemployment rate of more than 14 percent – and at least 15 percent in Las Vegas.

“We are not doing well,” Dobra said. “The recession has had a significant effect on the state’s economy. People are losing their houses, jobs and life savings.”

But drive along Interstate 80 toward Elko County and signs of the recession begin to disappear. Here, in this large but sparsely populated pocket of northeastern Nevada, a different story is unfolding. The unemployment rate in Elko County hovers at eight percent, well below both the state average and the national rate. Much of the area’s prosperity is linked to mining, which is the largest employer and main source of income in several rural Nevada counties.

While some industrial mineral producers have been hurt by the slowdown in new home construction, metals such as gold, silver and copper are riding nearly a full decade of rising prices. Located deep in the heart of mining country, the Elko area is blessed by the largest gold deposits in North America. Barrick operates five mines in Nevada and holds interests in two others.

Barrick is continuing to invest in its U.S. operations, infusing more than $1 billion in capital into mine expansions in Nevada and Montana and hiring approximately 800 new employees in the last five years.

“There is no comparable industry that could be holding up like this in a recession,” Dobra said.

NEW JOBS

After 11 years working in the construction industry, Romney Natapu began contemplating a change in career last year as he noticed a state-wide slowdown in new home construction.

“I came to the conclusion that it was time to try something different,” the 37-year-old said.

In July, Natapu landed a job as a miner at Barrick’s Goldstrike operation about 60 kilometers northwest of Elko. “I never thought mining could be this exciting,” he said. “I am looking forward to learning more about the opportunities in this industry.”

Natapu is one of the hundreds of new faces Barrick has hired in the last few years. The company directly employs more than 3,500 people in Nevada and its operations generate thousands more indirect jobs in the community. It is estimated that the mining industry supports more than 50,000 indirect jobs across the state.

The average annual wage of a Barrick employee in Nevada is well over $60,000, about $20,000 higher than the average income in all occupations statewide. “Even during times of economic hardship in the United States, we are providing our employees with family-sustaining wages, as well as something that is very rare right now in Nevada – job security,” says Michael Brown, Barrick’s vice president of Public Affairs in the United States.

David Klaas couldn’t agree more. He arrived in Elko County just a few months ago to begin a job as senior controls engineer at Barrick’s Cortez mine. After being laid off from his job in the forestry sector in Oregon, Klaas set off with his wife and three children across the country looking for work. It was a difficult year and a hard adjustment for a family used to living in one place. It took more than a year of job hunting, but Klaas finally settled in Elko.

“For the first time in a long time, I feel a sense of security for my job,” he said. “I am excited to be in a dynamic field that has opportunities for me.” As for his family, they are happy to be settled again. “The kids like their school and my wife is glad to be close to her family in Oregon,” Klaas said. “The lifestyle in Elko is terrific. The town is friendly and thriving.”

TAX REVENUES

As Nevada’s largest gold producer, the taxes Barrick pays on its net proceeds are a big boost to state coffers. As the state struggles with an estimated $1 billion budget shortfall, Barrick and other large mining companies have helped Nevada close this gap by prepaying their net proceeds of mining taxes for 2009 and 2010.

“To date, Barrick has prepaid more than $120 million in taxes on expected production in several Nevada counties,” Brown said.