Candidates rush to remote Nevada gold town

ELKO, Nevada (Reuters) - The remote mining town of Elko became the unlikely center of the battle to lead the United States on Friday as several candidates came to town on the eve of Nevada's presidential nomination contests.

The rural area, far from the state's famed casinos in Las Vegas and Reno, played host to Democratic hopefuls Sen. Hillary Clinton and Sen. Barrack Obama after Republican candidate Mitt Romney swung through for an early morning visit.

Former Democratic Sen. John Edwards already made a stop on Thursday evening in the town, which has a population of 22,000 and is a four-hour drive from either Reno or Salt Lake City in Utah.

"Right now Elko is the center of a titanic struggle for the presidency of the United States," David Axelrod, Obama's political advisor, told Reuters.

"It's a battleground. There's a lot of independent-minded voters in Elko who are late deciders."

Towns like Elko are seen having the rural voters who can help decide close battles in Nevada that are part of the state-by-state process to choose the Republican and Democratic candidates who will contest November's presidential election.

Unlike many areas of the United States threatened by recession, the economy is booming in the northeastern Nevada region -- where much of the country's gold is mined -- 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 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 complaint opposite to that heard in many parts of the country.

THE BROTHEL BAROMETER

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

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

"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," Franzoia said.

"For me as a politician in a small town, it's exciting."

(Editing by John O'Callaghan)

(To read more about the U.S. political campaign, visit Reuters "Tales from the Trail: 2008" online at blogs.reuters.com/trail08/)