Search Documents

FROM newspaper reports circulated in Indonesia, it seems quite obvious that many people, even the left-wingers, have serious doubts concerning the wisdom of the Indonesian Government in nationalizing the Bangka Island tin mines, formerly operated by the Dutch Billiton Co. Chief source of American dollars for Indonesia has been the 34,000 ton tin production of its mines. Right now, both left and right are concerned with whether the Government will be able to maintain and increase current production. The right wing Moslem party newspaper, Mimbar Indonesia, stated: "It will no longer be possible any more for radical labor leaders to find foreign scapegoats and tell the workers they are working only for foreign interests and foreign managements. It is up to labor now to increase its labors for the national good. It will be a new experience, and the problem is whether we are capable enough to manage these important mines."

Jan 4, 1953

GERMANIUM, once the metals industries' unwanted step-child, has suddenly blossomed into importance. As late as 1951 textbooks failed to mention it and the metal was considered no more than a nuisance that interfered with the electrolysis of zinc. Eagle-Pitcher is the only producer of Germanium, used in power rectifiers and the new transistors. Its basic quality is that its ability to carry current can be changed, and a current flowing through it can be controlled. Germanium is sold by Eagle-Pitcher for about $340 a lb, not bad for a metal that only a few years ago was totally ignored. Eagle-Pitcher gets germanium, cadmium and gallium by roasting the zinc concentrate to convert the sulphides to oxides, then adding coal and salt to the crude zinc oxide and sintering at a high temperature. The oxides of germanium, cadmium and gallium are converted to chlorides. Cadmium and germanium chlorides volatilize, and are gathered for additional processing. The important step is the distillation of germanium tetrachloride.

Jan 1, 1952

Jan 11, 1951

"IRON for iron" may soon be the primary concept of Mexico's mining industry. If reports that President Adolfo Ruiz Cortines intends to extend federal control over mining are true, Mexico will export iron ore to the U. S. only in return for machinery. Actual exporter will be the Federal Government, with negotiations through the Bank of Mexico. Shipments of iron ore, under this kind of arrangement, can be tightly controlled, assuring that machinery and heavy equipment instead of dollars are the means of payment. Expansion of this policy in the next few years can be expected according to reports.

Jan 6, 1953

A Report Of Current Activity In The Industry

Jan 6, 1951

MIXED emotions were produced by the announcement that the buildup of weapons will be stretched out till mid-1954 instead of the previous 1953 deadline. Reason: government assistance programs will be tougher to get but there will be easement in materials allocations. Earlier in February, DPA had announced that tightening up on regulations governing rapid tax -amortization would become effective March 1. In the future, DPA will have to certify amortization contracts for all construction and permanent installations costing more than $100,000. This action was necessary according to DPA's James F. King, so that new industrial expansions already approved could be assessed in the light of the changing critical mineral picture. When DMPA inherited the backlog of government assistance, requests from DMA, it moved in fast. The results of DMPA's work is described in the article on p. 351 by James K. Richardson; The speed with which these requests were approved and the lengthening of the military program have made a reappraisal of the critical mineral list necessary. It looks as though the consumer industries will be getting more metal soon and, led by steel, there is an industry push toward the abandonment of CMP. Relaxing of materials controls appears imminent but discontinuing CMP is in the "let's talk this thing over" stage.

Jan 1, 1952

DESPITE strikes, domestic production of copper and zinc in 1951 rose about 3 pct and 10 pct, respectively. Lead output fell only about 7 pct. Primary refined, including processed scrap and imported concentrates, was somewhat higher for zinc, and slightly lower for copper and lead. Prospects are for moderately larger mine and refined production in 1952 according to Standard & Poor's analysis of nonferrous metals. The survey goes on to report domestic copper prices averaged 14 pct higher in 1951, lead prices 30 pct higher, and zinc prices 32 pct higher. The 2¢ rise in zinc and lead ceilings in October will lift the average price in 1952 over 8 pet, assuming no further price change. Currently, OPS appears opposed to raising the 24 ½ ¢ copper ceiling to the 24 ½ ¢ maximum on imported metal. The steep premiums in world markets are likely to be reduced in 1952. Sales in 1951 were at new peaks. A further moderate rise is indicated for 1952. Earnings of the industry were at a new high in 1951. The increase for companies covered in the survey was perhaps 25 pet, despite a tax rate of about 53 pet, against about 40 pct. in 1950. Relatively maintained to moderately higher earnings are currently indicated for 1952. About two thirds of the companies covered in the survey raised dividends, including extras, in 1951. In general, maintained payments appear probable in 1952.

Jan 1, 1952

TENDENCIES toward nationalization grew noticeably stronger in some areas. Late last fall Bolivia took over the tin mines of four foreign operators and handed them a bill for a fabulous amount claimed for damages. In the same breath, the price Bolivia offered to pay for the mines appeared to many to be slightly ridiculous. Many engineers felt that the country would not be able to run the mines successfully. Even if they could, some thought that the Bolivian Government would gut the orebodies in an attempt to get at rich deposits for high profits, leaving the lean ores in unmineable condition.

Jan 2, 1953

DEFENSE Materials Procurement Agency has been moving rapidly to encourage copper industry expansion programs. Although copper production is at a high level, a shortage exists on a world-wide basis as well as on the domestic scene. Projected expansion programs will not ease this current demand for most of them are 2 to 5 years off. Refining facilities are adequate but there is a shortage of ore and scrap, and it is for this reason that the expansion programs are directed at developing more sources of supply. The domestic expansion programmed thus far and understood to have been arranged with price escalation should the domestic price go to 271/20, were summarized by American Metal Markets as follows (dates of announcement are given in parenthesis: .1-Copper Cities Mining Co.'s, $15,000,000 expansion near Miami, Ariz., to be operating about 1954. DMPA will buy 22,500 tons of copper a year up to a given amount on an agreed price of 23¢ per pound, with some exceptions and depending upon salability at a higher price to other purchasers in the U. S. (September 25th). 2-An RFC loan of $60,000 to North Butte Mining Co. to be paid off on the basis of deliveries at a purchase price of 241/20 per pound (September 25th). 3-A $25,000,000 expansion program by Phelps Dodge to provide 38,000 tons per year by late 1954. DMPA would purchase it at a price of 22¢ per pound up to 112,500 tons providing other purchasers in the U. S. will not pay a higher price (September 26th). 4-Anaconda Copper Mining Co. $40,000,000 expansion in Nevada to provide more than 30,000 (might be increased to 45,000) tons per year. DMPA would purchase the copper at 250 per pound for a limited period of time if it is not salable to industrial users at above this price. Production would start around 1953 (November 14th).

Jan 1, 1952

WITH the present mobilization program in full swing and the enrollment in engineering colleges dropping off, many solutions are offered to relieve the shortage of trained men in the engineering profession. Industry can absorb about 30,000 engineers annually, according to the Engineers Joint Council, and forecasts indicate that the number graduating will have dropped from 38,000 in 1951 to about 12,000 in 1954. If this condition were to continue there would probably not be enough people with technical training to run industry in four or five years.

Jan 12, 1951

AN economist at MIT provided Americans with myth destroying information which should prove effective against the gentlemen of the extreme left. For a number of years they have charged that a small number of companies in each industry has been grabbing more and more of the industry's business. M. A. Adelman has shown that the concentration of business in the hands of big corporations has not shown any sign of growth during the last 50 years. Quite the contrary, there has been a slight decline in this concentration, according to Adelman. There are more small companies per thousand population than ever before. Bearing this out is the fact that International Harvester is now doing 41 pct of the possible market against a former 85 pct; American Can Co. has dropped from 90 pct to 50 pct; American Smelting is down to 31 pct compared with 90 pct; and lastly, U. S. Steel which has plummeted from 65 pct to slightly more than 30 pct of the steel market. Declines of the same proportions have hit big companies in other industries. Price cuts on Detroit's 1953 automobiles indicate that even among the biggest competition is still one of the most important household gods. Big business is still slugging it out for the attention of the American consumer. It's a battle which can only have one result-benefit to the man who buys.

Jan 1, 1953

[ ] ST. JOSEPH Lead Co., is entering the oil business. Andrew Fletcher, St. Joseph president, stated that plans call for a contract with the Continental Oil Co., to drill 11 exploratory wells. Six will be in Texas, one in southern Louisiana, one in northern Louisiana, and one each in California, Oklahoma, and Montana. St. Joseph is also negotiating a contract with the Zephyr Drilling Co., for wells in Wyoming and Colorado. St. Joseph is planning to drill another well on a 6000 acre plot in southern Illinois. Proxies issued before a special meeting of the board, said the new venture is not intended to change the general character of the company's business, or to involve a significant part of its resources. If gas, oil, or minerals are discovered in paying quantities, the company will develop and operate the deposits and dispose of the products for the joint account of Continental Oil and St. Joseph Lead. The mining company will contribute a proportionate share of the cost, but will have definite limitation of its obligation. The amendment to St. Joseph's certificate of corporation, passed by the board meeting, also extended the power of the company to include mining operations of all kinds.

Jan 1, 1952

THERE is at least one concrete indication that Soviet Russia's two most important iron ore producing centers are seriously depleted. While keeping in mind Russia's penchant for reverse propaganda, one piece of evidence indicates that Magnitugorsk in the southern Urals and Krivoi Rog in the Ukraine have been mined to a point where lower grade ores are being recovered. An article in Pravda, Soviet newspaper, by I. P. Bardin. a Russian metallurgist, says that ore presently mined must undergo an expensive enriching cycle before it can be used in blast furnaces. Com- pounding Russian metallurgical troubles is the low quality of coking coals. High ash and sulphur content typifies the coal Badin talks about. Coal from the Ukraine, Eastern Siberia, Kazakhstan, and the Far East requires extensive treatment before it can be used, according to the article in Pravda.

Jan 7, 1953

THE late steel strike resulted in an unusual reversal of field when Brazilian interests shipped steel to the United States to assure completion of a blast furnace under construction in Cleveland for the national Volta Redonda mill. The furnace is one of the key factors in an expansion program scheduled to raise Brazilian steel production by 280,000 tons, bringing annual output to 1 million tons. The first consignment shipped to Cleveland included 500 tons of slab and plate steel, and was followed later by another 300 tons. Brazil wants to blow in the furnace by July 1, 1953, and the restricted allocation system brought about by the steel shortage offered a real threat to the deadline. Volta Redonda, established during World War II by Brazilian and American financing, accounts for more than half of Brazil's steel production.

Jan 1, 1952

AN indication that Mesabi Range iron use companies may develop their own flotation processes for low grade iron ores is the report that Cleveland Cliffs Iron Co. is adopting a variation of one of the oldest known methods at its new Michigan treatment plant. Basically, the method involves using fatty acids and fuel oil reagents. The idea was developed many years ago and should be free of patent control. With other laboratories working on the same tack, it seems to be a pretty good bet that they will come up with their own processes. Any outside process will have to offer considerable advantage or low royalty rate to get consideration. Much of the appeal of the fatty acid process is the cheapness of the reagent. One source is pulp paper liquor in semi-refined form. With stream pollution legislation acting as a strong pressure, paper companies have been seeking ways to dispose of the material. Wisconsin has even attempted to use it for road binder.

Jan 5, 1953

FOLLOWING- the major explosion disaster in the Orient No. 2 mine of the Chicago, Wilmington and Franklin Coal Co., West Frankfort, Ill., on December 21, 1951, resulting in the death of 119 miners, an investigation was made by the U. S. Bureau of Mines under the direction of J. J. Forbes, Bureau director. The subsequent report concluded that the disaster. was caused by the emergence of a-large body of explosive gas from an abandoned area and simultaneous short circuiting of the ventilating current; the gas was ignited by an electric arc from nonpermissible electrical equipment and the flame was propagated throughout a large part of the affected area by coal dust and possibly by gas from other worked-out and abandoned areas. An immediate repercussion of the disaster was the opening of hearings by the. Senate Labor and Public Welfare Subcommittee on the Neely Mine Inspection Bill (S. 1310, introduced April 11, 1951) which would give federal coal-mine inspectors power to enforce safety recommendations by ordering the withdrawal of all employees where conditions constitute an imminent danger to their safety. Two days of testimony, January 24 and 25, disclosed that coal operators were not in agreement on the bill, although John L. Lewis, speaking for the UMWA, and J. J. Forbes, for the Bureau of Mines, were advocates.

Jan 1, 1952

FRENCH steel makers are ready to support the Schuman plan. Pierre Ricard, vice-president of the French Steel Chamber syndicate, announced the industry's readiness to cooperate with the plan, which is aimed toward giving Europe an integrated steel industry. Steel men appear to have decided in favor of the plan because of its promise to unify the continent. Behind approval is the emphasis placed by French steel plant operators on continuation of the Franco Saar economic union. The French have an, abiding fear of German steel production potential. France is currently producing at an annual rate of 11 million tons, while Western Germany is producing 15.5 million tons of steel. The Saar output is placed at 3 million tons. French industrialists feel that as long as the marriage of French and Saar steel production continues, France can compete reasonably well with Germany. If Saar production should suddenly become part of the Western Germany total, it could result in an unequal competitive situation, giving Germany a production level of 18.5 million tons of steel annually, or 60 pct more than France.

Jan 1, 1952

CHARLES E. WILSON'S second quarterly report "Meeting Defense Goals" was encouraging on the outlook for the mining industry, as prolonged demand for minerals seems assured; but for the individual engineer things are not so rosy. Ten percent of the gross national product is going for defense but the gross national product has been increased by 9 pct since the national emergency was declared apparently a commendable rate of progress. The increased production does not seem to have had the stabilizing effect on prices it should and housewives have been revising domestic budgets upward on a quarterly basis. Government economists have reached the conclusion that more taxes and wage and salary freezing are necessary to counteract inflation.

Jan 8, 1951

MINNEAPOLIS-HONEYWELL Regulator Co., and Trans-Weigh Co., have come up with a conveyor belt that thinks. The belt weighs material and then figures out the tons-per-hour that it carries. And you can't fool it by adding or subtracting material along the way. It makes allowances for any additional material as well as for any loss. The belt rides along a set of rollers. The force exerted on the rollers is transferred to a gage. The weight of the belt is subtracted electrically. Final measurements are fed into an electronic recorder which indicates the flow at the moment and the total amount which has been carried by the belt.

Jan 1, 1952

A Report Of Current Activity In The Industry

Jan 5, 1951