Candidates rush to remote Nevada gold town

LAS VEGAS (Reuters) - The remote mining town of Elko becomes the unlikely center of the battle to lead the United States Friday as several candidates come to town on the eve of Nevada's presidential nomination contests.

The rural area far from the state's famed casino centers of Las Vegas and Reno is hosting Democratic hopefuls Sen. Hillary Clinton and Sen. Barrack Obama, with Republican candidate Mitt Romney also scheduled for an early morning visit.

Former Democratic Sen. John Edwards already made a stop on Thursday evening in the town, which is four hours drive in either direction from Reno and Salt Lake City in Utah.

Unlike many areas of the United States threatened by recession, the economy of the northeastern Nevada region -- where much of the country's gold is mined -- is booming, with housing and workers very much in demand.

"The economy of course is in a runaway with the price of gold being what it is," said Lou Eklund, who moved to the region in 1963 when gold cost $35 an ounce, compared to its current record highs above $900.

"One of the problems they have is hiring enough help," said Eklund, who retired here after setting up a drilling company.

Elko Mayor Michael Franzoia, who owns several local fast food restaurants and gas stations, said that with local unemployment at just 3.8 percent he has had trouble finding employees. "It's way too low," he said in a reverse complaint from that heard in many parts of the country.

Businessman Jeff Arnold says he is experiencing the impact of the local mining boom and the economic slowdown elsewhere.

He owns two legal brothels -- Nevada is the only U.S. state where prostitution is permitted -- one closer to the Utah border catering to truckers who are spending less because of rising diesel costs, and a second one where business is booming closer to the mines.

"My brothels could indicate that there is a diminishing economy outside the state," Arnold said in an interview. "But our (second) business has benefited from mining and construction. There's a lot more business."

Despite its remote location -- there are no direct flights from either Las Vegas or Reno and no highway from Las Vegas -- politicians seem to like coming to Elko, whose population is 22,000.

"In the 12 years since I've been mayor, I've been able to shake hands with former President George Bush, former President Jimmy Carter, the current President (George W.) Bush and Vice President Dick Cheney," Mayor Franzoia said.

"For me as a politician in a small town, it's exciting." (Editing by Stuart Grudgings)