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By Arno C. Fieldner

Coal for coke production is fundamentally necessary for the manufacture of pig iron , and pig iron must be had for making steel - a vital element in our modern industrial economy . In both World Wars , special effort by Government and industry was required to meet the emergency of greatly increased demands . In the first World War , lack of coke - oven capacity , rather than lack of coking coals , was the principal problem ; but in the second World War both oven capacity and coking -coal mining capacity were pushed to the utmost . Because of inadequate supply , it became necessary to allocate a part of the production of these coals from other fuel use to coke production . This was done by the Solid Fuels Administration . These experiences raised a question , during and after the war, as to the nature and amount of the minable reserves of coking coal suitable for the manufacture of metallurgical coke ; and to what extent the lower -rank and lowergrade coals could be utilized by improving preparation and by appropriately blonding different coals . Obviously , much investigation and research are required to find answers to these questions . Somo work was done by Governmental and industrial agencies during the war , and , fortunately , more has been undertaken since the close of It is the purpose of this paper to review briefly our fuel reserves , with special reference to coking coal , and to discuss the problems of utiliz . ing progressively poorer coking coals as the reserves of high - quality coals approach depletion .

Mar 1, 1950

By Walter E. Lewis

This circular presents the method of making tests and apparent results of comparing performance of tungsten carbide insert bits and steel detachable bits by the Cleveland-Cliffs Iron Co. at the company's mines on the Marquette iron range of Michigan. The mines are at Ishpeming and Negaunee, Mich., and include the Cliffs Chaft, Mather "A", Cambria-Jackson, and Mather "B". There are four general characteristic types of high-grade iron ore on the Marquette range. B. H. Boyum2/ classifies the Cliffs Shaft as "hard-ore" and the Cambria-Jackson and Mather "A" as "soft-ore" types of deposit. Shaft sinking through Jasper, slate, and graywacke was in progress at this writing at the Mather "B", with completion at 3,100-foot depth in August 1949. The many different kinds of rock and ore at the mines of the Cleveland- Cliffs Iron Co. and the experimental work being carried on with carbide in- sert bits make it possible to compare, generally, the carbide insert and steel detachable bit. The type of "hard ore" at the Cliffs Shaft mine re- quired close study of the possible use of the insert tit, and their records are more complete than those of the "soft-ore" mines. History and development of tungsten carbide tips inserted in rock drill bits have been covered by R. W. Adamson, C. H. Vivian, R. C. Sullivan,5/ and others. Tungsten carbide insert rock bits have only recently been introduced to the domestic mining industry. Although unusual performance records are being reported at operations employing the insert bits, the general adaptability of the tool to all rock types and the advantages to be gained by using carbide insert tits remains to be demonstrated. Insert-bit performance is being observed at numerous mines and quarries throughout the United States The several mining operations at the Cleveland-Cliffs Iron Co. at Ishpeming, Mich., is one site where exhaustive comparative tests of insert and conventional steel detachable bits are currently in progress. Results to date are sufficiently impressive to be of general interest to the mining

Mar 1, 1950

By R. W. Stahl, H. E. Sanford, J. B. Benson

Immediately following the capitulation of Germany in World War II, the German State was occupied by various allied forces, who supervised all indus- trial activities in the area. Coal production is vital to the industrial life of Germany, and most of the coal is mined in the American- and British- occupied zones of western Germany. The British-occupied zones include the Aachen and Ruhr districts, from which approximately 90 percent of the coal is obtained. Figure 1 is a map of the Ruhr district. Because of the magni- tude of the task of insuring an adequate supply of coal and the necessity for united action, it was deemed best to reorganize the coal-producing facilities in the British zone undor the joint supervision of American and British authorities. As a result, the UK/US Coal Control Group was established accord- ing to the organization plan indicated in figure 2. Headquarters for the group was established at Essen, in Villa Huegol, the prewar home of the Krupp family (fig. 3). One of the many problems recognized immediately by the UK/US Coal Control Group was the necessity of preventing disasters and reducing accidents to work- men in mines undor military-governmont control. Consequently, the United States Bureau of Mines was requested to furnish the services of qualified men to search for the hazards incident to coal mining and to prepare comprehensive reports on the results of their investigations. The authors, who wore selected for this task, spont about a year in Germany and visited all except a few of the smaller mince. Whereas their principal purpose was to investi- gate safety conditions, somo of the operating conditions and practices also wore studied. The results of the studies and investigations are embodied in this circular with the hope that some useful information will be disseminated to the mining industry of the United States, including supervisory officials, safety directors, engineers, and mine workmon.

Feb 1, 1950

By Glenn C. Reed

This report is one of a series based upon investigations made and being made within the Missouri River Basin in Montana by engineers of the Bureau of Mines , Albany Branch , Mining Division . These investigations are made primarily to provide preliminary information to the Department of Interior agencies and to others concerned with planning the proposed Federal power development within the Missouri River Basin . The present report has been designed to permit public distribution of factual data obtained . The field investigations were made during the late fall of 1947 and the summer of 1948. Information on mineral occurrences in several areas in Sweet Grass County also are included in this report because of their close proximity to Park County . Practically all known metallic mineral deposits within Park County were investigated ; some nonmetallic mineral deposits also were investigated. The investigations of the metallic mineral deposits in Park County cannot be considered complete ; some long inactive mines and prospects on which little or no information is of record may have been missed . Many of the underground openings , especially at the long inactive properties , no longer are accessible ; consequently , much of the information regarding history their and development necessarily has been obtained from available Federal and State publications .

Feb 1, 1950

By Paul M. Tyler

According to Lindgren , the economic importance of pegmatites stems from the fact that they represent the principal natural storehouse of two classes of mineral products : (1 ) common minerals in exceptional size and purity and ( 2 ) several of the rarest minerals , which are not commercially available from other types of deposits . Most pegmatites can be described simply as coarse- to very coarsegrained granites . Pegmatite includes coarse -textured igneous rocks of any composition , such as syenitic , alkali syenitic , dioritic , or gabbroitic ; but basic pegmatites are far less common than those that are associated with acid rocks and correspond approximately to the mineral composition of ordinary granite . Moreover , only a very few basic pegmatites can be considered as economic sources of useful minerals . Whereas , in ordinary granitic rocks the individual minerals usually measure 1/8 to 1/4 inch across , in pegmatites they are characteristically over 1 inch and often more than 12 inches in diameter . Although some of the constituents of the pegmatite may be only a fraction of an inch in length , single crystals more than 10 feet long are by no means unusual , and some crystals are enormous . A whole quarry was operated in the Urals within a single crystal of feldspar . Huge quartz crystals are quite common although usually imperfect . Muscovite plates 10 feet in diameter have been mined in India , and the Purdy mica mine in Canada contained a mica crystal measuring 6.5 by 9.5 feet and weighing nearly 7 tons , which supplied more than $20,000 worth of trimmed mica sheet . A loglike crystal of spodumene in the Etta mine in the Black Hills of South Dakota was 42 feet long . Giant crystals of beryl weighing several tons apiece have been mined from several properties . Because so many rare minerals are found in substantial concentration only in pegmatites , it is a common fallacy to suppose that pegmatites are always enriched in rare elements . Traces of most of these elements , of course , are found in almost all igneous rocks , and they reappear in the sediments derived from igneous rocks . It does not follow , however , that all or even most pegmatites contain higher percentages of rare elements than other granitic rocks . Geological evidence points to the probability that notable concentrations of rarer minerals or elements in pegmatites are more or less fortuituous , such additions often being ascribed to events subsequent to the original emplacement of the main body of the pegmatite . Most pegmatites consist principally of potash , feldspar , and quartz . Even mica , although commonly present , is not an essential constituent . Probably

Feb 1, 1950

By R. A. Cattell

Progress of Bureau of Mines research related to oil and gas during the past fiscal year has been marked by the publication of more than 40 reports on the various phases of the work . These include papers dealing with the production of oil and gas , transportation of gas , chemistry and refining of petroleum , thermodynamic properties of hydrocarbons , and the processing and utiliza- tion of helium . As an additional service to Pennsylvania oil operators , a new suboffice was opened in Bradford , Pa . , during the year . With this addition , the work of the Petroleum and Natural Gas Branch of the Bureau of Mines is now conducted in two large stations , the Petroleum Experiment Station , Bartlesville , Okla . , and the Petroleum and Oil Shale Experiment Station , Laramie , Wyo . , and three field offices and laboratories at San Francisco , Calif . , Dallas , Tex . , and Franklin, Pa., and two suboffices, Wichita Falls, Tex., and the newly opened suboffice at Bradford, Pa. In addition, this Branch operates large-scale helium-production plants in Texas, Kansas, and New Mexico, and maintains ex- tensive helium-bearing gas reserves in Texas and New Mexico. All helium opera- tions are supervised from headquarters at Amarillo, Tex. A small headquarters staff is in Washington, D. C. A backward glance at the road traveled during the past several years by the Petroleum and Natural Gas Eranch of the Bureau of Mines brings out a general background for the events of the fiscal year 1949. Throughout the fiscal year 1945, the activities of the Branch were still mainly concerned with such war activities as making special field studies for the Petroleum Adminis- tration for War, finding ways of increasing rates of production, and supplying data pertaining to the manufacture of aviation and jet-propulsion fuels. A period of adjustment came in 1946, characterized by a turning from war to peace procedures and efforts to give wide distribution to technical facts ob tained in wartime research; also, there came a realization that the demands of war had broadened the horizons of research. This was emphasized in 1947, when a peacetime program was restored, based upon the long view of the Bureau's place as a research agency in oil and gas. Close attention was given to tech- nical detail in 1948, and emphasis was placed on maintaining a balance between the industrial need for technical knowledge and Governmental-research possi- bilities in the fields of (1) withdrawal of petroleum from natural deposits, (2) utilization of petroleum and its products, and (3) commercial utilization of helium. Studies of petroleum production and utilization and helium production and utilization are the normal functions of the Branch. These functions (sometimes expressed in different words) have been the mainstay of this organization since initiation of the work. The details of approach vary with changing conditions, but, fundamentally, the functions have been the same in both peace and war. The work of the past fiscal year has emphasized the advantages that accrue when Government and industry join in a wise use of technical and scientific knowledge gained through research. Outstanding evidence of the beneficial results of cooperative effort by the Bureau of Mines and various organizations is found in the following typical examples, the details of which are discussed in the body of this report. Working in close cooperation with operators along the Gulf Coast, the Natural Gasoline Association of America, and the National Association of Cor- rosion Engineers, the Bureau found, through field testing, that corrosion protection by means of chromates in high-pressure gas-condensate wells costs less than $1 per million cubic feet of gas produced. Laboratory experiments to measure the corrosion effects of carbonic and propionic acids on various steels and alloy steels gave data that will serve as guides in the selection of new. materials for the construction of well equipment to be tested by industry under actual service conditions.

Feb 1, 1950

APPLICATIONS for loan contracts for the exploration, development and mining of strategic and critical metals and minerals are now being accepted by the Department of the Interior. The RFC is authorized and directed by Executive Order 10161 to make such loans but the Secretary of the Interior must pass on the necessity for the loan. Applications should be addressed to James Boyd, acting deputy administrator, Defense Minerals Administration, Department of the Interior, Washington, D.C. rather than to the Field Offices of the Bureau of Mines as was first planned. Application forms are not yet available but it has been learned that data accompanying the application should include the known quantity and grade of reserves, the anticipated rate of production, the equipment, supplies, and man power required for the additional production, etc.

Jan 12, 1950

By Maurice Rey, Victor Formanek, Paul Chataignon

IT is found when floating oxidized lead ores by sulphidization, that the presence of calcium salts in the water, is usually detrimental and lowers the recovery. This effect is particularly marked in dry countries such as North Africa, where the waters often carry large amounts of calcium sulphate and where the ore may even contain gypsum.

Jan 11, 1950

By V. S. Swaminathan

This year, Great Britain is looking back over a century to August 14, 1850, the day when the first "Act for the Inspection of Coal Mines" was passed in that country, an act which signaled the end of over two hundred years of hitherto uncontrolled and dangerous mining practices.

Jan 11, 1950

CHAIRMAN DOUGHTON of the House Ways and Means Committee announced on September 23 that the committee has scheduled public hearings on an excess-profits tax, beginning on November 15, 1950. In the meantime, the staff of the Joint Committee on Internal Revenue Taxation and the staff of the Treasury Department are to confer jointly on this question in the hope that such conferences may result in the preparation of a report on excess-profits tax proposals which could be used as a basis for testimony before the committee. It is thought that this procedure may aid in the draft of an excess-profits tax bill for introduction in the House when Congress reconvenes on November 27.

Jan 11, 1950

By L. Weaver

THE Tennessee Copper Co.'s mines are in the southeast corner of the state of Tennessee. Polk Co., in the well-known Ducktown copper basin. Their new circular production shaft will eventually be the only ore hoisting shaft, and is located for handling ore from Boyd, Calloway, Mary, and Cherokee mines. A circular, rather than a rectangular, shaft was decided upon because: 1-The circular shaft section is stronger when lined with concrete. Reinforcing steel was not required, thus reducing lining cost by one- quarter. 2-Water sealing was desired; it was thought it could best be done with a concrete lining followed by pressure grouting to eliminate water seeps. 3-The shaft labor saving equipment could best be used in a large opening, so the round section was made for economy, sinking, mucking, concreting and water sealing. Less shaft steel is used than could have been possible with steel sets. There are no posts required; center beams and Tee plate assembly placed at 10 ft hold the 100 lb steel guide rails. The shaft is 12 ft 7 1/2 in. ID of the concrete walls. This is large enough for two 10-ton hoisting skips and a ladder compartment. One of the skip compartments is for hauling equipment. The grouting equipment was a 2%xlO-in. Gardner-Denver grout pump, air powered and developing 1000 lb pressure. A grout mixer, also air driven, fed the mixed solution into a tank coupled to the pump suction. Grout materials used were mostly water and Portland cement. Some Bentonite was used to seal porous ground near the surface.

Jan 11, 1950

Taking the Long View THE present international situation has serious implications for this nation. The possibility of total war is no more appalling than the threat of making the United States permanently into an armed camp. A period of ten years under such conditions could mean a Communist victory without firing a shot-if the present trend toward statism is allowed to continue. As individual citizens and as members of the mining profession we have the power to oppose the march toward socialism. We must not adopt shortsighted policies dictated by self-interest, but must endeavor to size up the situation as a whole and act according to what will be best in the national interest. The economic picture for the metal mining industry under present emergency conditions is apparently bright. Demand for metals exceeds supply. But there is danger that fluctuating prices will bring Government regulation. Care must be exercised in our pricing policies, or the calamity of Government intervention will be inevitable. President Truman's "loophole" reference to percentage depletion early in the year caused a brief flurry of excitement, but now that the immediate threat is over the industry has lapsed into sommolence on this subject. Special tax privileges accorded the mining industry because of inherent risks should be guarded by a continuing propaganda campaign to educate Congress and the public. If this is not done we may find ourselves losing the necessary tax protection which we now possess by a capricious act of legislation. Stockpiling minerals from abroad certainly lengthens the life of our own mineral resources. The present consumer demand for the base metals indicates foreign sources of supply for stockpiling. However, this is only one facet of the problem. For strategic military reasons it is necessary that the United States have quick sources of all minerals within our national boundaries. Undeveloped mineral deposits do not meet this need so that where it is possible to encourage our own mineral development by stockpile purchases, it should be done. A need exists for an overall controlling agency that would make purchases for the stockpile according to military necessity, current metal market conditions, and so as to strengthen the mining industry. In the course of the history of the United States we have been engulfed in several wars by the necessity of protecting our economic rights abroad trading privileges-and also because of moral obligations. Disregarding the moral side, it is difficult to reconcile fighting wars to protect world freedom of trade when in peacetime we attempt to restrain such trade by tariff barriers. When it comes to accepting subsidies from the Government in one form or another it is difficult to overlook the immediate personal gains and see in the future that where the Government lays out capital it becomes a partner in the business and not a silent one. It is apparent that hope for the traditional American way of life cannot be bought without some self-sacrifice; and we cannot wait for the other fellow to start it because it is the responsibility of each individual citizen. By taking the long view our course should be apparent and not diverge sharply from our own personal benefit.

Jan 10, 1950

By Olaf Hondrum

CHURN drilling equipment at Bagdad consists of two Bucyrus Erie 27-T model drills and one 22-T drill with gasoline engines. The drilling tools weigh approximately 1600 lb. The holes are drilled with 7-in. bits which are heated in an oil burning furnace and sharpened in an electrically powered bit sharpener. A service truck brings the bits to the drills and takes the dull bits back to the shop. The bits weigh around 250 lb. when new and are handled by drill crews without any mechanical handling device.

Jan 10, 1950

REPUBLIC STEEL CORP. and Armco Steel Corp. have joined in a $160,000,000 project for the production of iron ore from Taconite in the Lake Superior mining region. The two companies announced acquisition in equal shares of 100 pct ownership of the stock of Reserve Mining Co., which controls a vast deposit of magnetic Taconite iron ore on the eastern end of the Mesabi range in Minnesota. Through Reserve Mining the two companies will build a plant for manufacturing high grade ore from Taconite near Beaver Bay on the north shore of Lake Superior. The first announcement calls for about a $60,000,000 plant which will be built as soon as plans are completed and will have an annual capacity of about 2,500,000 tons of iron ore pellets. Longer range development plans call for future expansion of the plant to provide an annual capacity of 10,000,000 tons. This will amount to an additional investment of

Jan 10, 1950

By Neil Donnell, O&apos

MODERN mine maps are largely a product of evolution. The first mine maps used in the west were old composite maps with all the levels plotted on the same sheet. The composite was widely used and occasionally is seen even now. This type of underground map had serious limitations. One was the development of an indecipherable complex of workings around steep shafts. The other limitation was that of size; often when a working passed the limit of the sheet no map was made of it. These old maps have been superseded by the single level maps, laid out in squares or rectangles which can be expanded indefinitely in all directions. This produces a system capable of unlimited expansion in three dimensions, with all the detail of every working clearly marked and legible. A good set of mine maps should be laid out in blocks, all blocks of equal size. Each block should be limited by plane coordinates without overlap on bounding map quadrangles. At all times the direction of North should be indicated as an aid in remembering bearings of underground workings. It is desirable that all maps of whatever scale be plotted on sheets of uniform size. In fact, it is possible to make nearly all underground maps, surface maps and sections on sheets of the same size.

Jan 9, 1950

National Minerals Advisory Council A meeting of the National Minerals Advisory Council on August 3rd in Washington, D. C., indicated the vitally important part that the mining industry is to play in the mobilization program. Director James Boyd of the Bureau of Mines told the Council that the Department of the Interior would review the recommendations of all the Council's commodity committees with regard for mobilization planning in the light of the changed international picture. The Council was requested to reactivate its commodity committees and have them gather all available data on supplies, their sources and availability and present and potential production of the minerals and metals represented on each committee. Data on labor, machinery, transportation, automotive and stationary equipment, power, fuel, lumber, water supply are a few of the important items called for in the reports, which are to be presented at a meeting of the Council on September 1 at Salt Lake City. The material in the reports will become the basis for discussing metal and mineral requirements at that time. Discussion at the meeting bared several $64 questions, probably the most important of which are the following: 1. Which of the war-essential metals and minerals and in what quantities can we reasonably expect to get them from abroad under threat of submarines? 2. How are we going to meet the manpower problem posed by (a) migration of labor from mining to manufacturing since the end of World War II and (b) the draft and the calling up of reservists? Opinion was expressed by industry spokesman at the meeting that the function of complying with mobilization requirements be left to those in the industry itself; that is, those having the "know how." This view contended that any administrating governmental agency should be kept as small and streamlined as possible. There was general sentiment against the reactivation of the wartime Premium Price Plan or other bonus plans as a stimulus to production. The thought was emphasized that what was needed was a change in the basic conditions which have fostered the decline in domestic mining activity in the postwar years. One such condition, long overdue for correction, is the tax structure as it applies to mining enterprises. Many quarters both in industry and in government favor tax relief along the lines suggested in the six tax recommendations by the Council to the Secretary of the Interior last December. The Council adopted a resolution expressing a feeling that the following tax recommendations are still feasible and desirable and will accomplish as much toward increasing exploration for new deposits (thereby subsequently increasing production) as will government loans for exploration: (1) Losses from unprofitable ventures should be allowed corporations, partnerships, or individuals as ordinary deduction against current income. (2) Development costs after discovery should be recognized as operating expenses. (3) Allowance for depletion should be made to the stockholder as well as to the corporation. (4) Income should not be taxed without full allowance for losses of loss years. (5) Adequate allowances for percentage depletion should be made. A discussion of the manpower problem led to the Council's acceptance of a resolution advising that "military authorities should proceed with caution in depriving the mining and metallurgical industry of its manpower." The resolution strongly urged that no personnel "directly engaged in exploration, development, production or supervision (of strategic and critical materials) should be drafted for the armed forces, at least until the anticipated demands upon these producers are clarified." Stockpiles The Munitions Board's "Stockpile Report to the Congress" of July 23, 1950 revealed: (1) The total estimated value of the stockpile objective is $4,051,714,510 at the close of fiscal year 1950. (2) The total value of the stockpile on hand, at the close of fiscal 1950 was $1,556,154,352 or 38.4 pct of the total stockpile objective. An additional $494,948,060 was on order, making a total of 50.6 pct on hand plus the amount on order. (3) Materials obtained for the stockpile by the ECA from January to June 1950 amounted to $13,112,085, while development projects by ECA during this period involved the expenditure of $9,322,000, mainly with counterpart funds. Shortly after the start of the Korean conflict it was felt that Congress ould appropriate greatly increased sums for the purchase of materials for the stockpile. This stimulus to the program may increase the dollar earnings of those European nations that are present or potential contractors in our stockpiling program. Such a development would mean that these nations could add to their gold reserves, thereby stabilizing their respective economies and hastening recovery. This seems to be the picture for the next six months anyway. The "bug" appears when it is realized that the increased threat of total world war actually may retard recovery in Europe as nations on the continent may feel inclined to devote more of their resources to defense programs. Industries Essential to Defense The Department of Commerce in response to a request by the Department of Defense issued on August 3, 1950 a "Tentative List of Essential Activities" as a "guide for calling up for active duty members of the civilian components of the Armed Forces." The list includes the following: Primary Metal Industries. Included herein are establishments engaged in the smelting and refining of ferrous and nonferrous metals from ore, pig, or scrap. Metal Mining. This category includes establishments primarily engaged in mining, developing mines or exploring for metallic minerals (ores). This group includes all ore dressing and beneficiating operations. Anthracite Mining, Bituminous Coal and Lignite Mining, Crude Petroleum and Natural Gas Extraction, Mining and Quarrying of Nonmetallic Minerals, Except Fuels. Challenge to the Mining Industry The source of our country's great strength lies in its capacity to produce. In times of stress such things as national morale and manpower are all-important but without a capable industrial machine we would be helpless. That machine must be fed with minerals and metals in order to generate and maintain momentum sufficient to insure success. Consequences of the lack of adequate supplies of essential metals and minerals to increase and sustain our industrial power are not pleasant to contemplate. It is absolutely imperative that we put forth Herculean effort to guarantee ample supplies of such essential materials as copper, lead, zinc, manganese, antimony, mercury, tungsten, tin, chromite, nickel, cobalt, iron ore and rubber. The mining industry faces a challenge more serious than ever existed before in the history of our country. The industry must be equal to the task.

Jan 9, 1950

THE research and policy committee of the Committee for Economic Development, a non-profit research organization composed of leaders in industry and the professions, including such prominent figures as Dwight D. Eisenhower, Paul G. Hoffman, and Charles E. Wilson, recently published a report entitled "How to Raise Real Wages." Since its founding in 1942 the CED has initiated many objective studies on matters of national economic policy, and has gained a fair measure of prestige from its activities. The CED's latest report cites the more than three- fold rise in real wages in the United States in the past 50 years and attributes the accompanying improvement in the standard of living to the great in- crease in production per man hour. The report states that in order for production to continue rising in the future with the attendant increase in real wages four basic conditions must be manifest: (1) better methods, (2) more capital, (3) better training of workers, and (4) better management. The report cautions that although prospects for increases in output per man hour are good "it is desirable that steps be taken to encourage such a rise."

Jan 8, 1950

By H. C. Weed

THE Inspiration Consolidated Copper Co., located in the Globe-Miami district at Inspiration, Ariz., became a producer of copper in 1915. From 1915 until 1948, 116,278,000 tons of ore were produced from underground workings by the block-caving system of mining. In April 1948, open-pit ore production from portions of the ore body was started and earlier plans for block-caving in these areas were abandoned. The change was due to economic conditions.

Jan 8, 1950

PUBLIC hearings began before the Committee for Reciprocity Information on May 24, 1950, for the purpose of unearthing data and opinion that will be helpful in the forthcoming reciprocal tariff and other trade-barrier negotiations at Torquay, England, on September 28th of this year. The conference this fall will constitute the "third round" of tariff negotiations under the General Agreement on Tariffs and Trade concluded at Geneva in 1947. The United States plans to negotiate with 17 other countries on possible tariff modifications on various articles all the way from baby carriages and bottle caps to lead and zinc-bearing ores. On May 31, June 1 and June 2, spokesmen appeared before the Committee for Reciprocity Information on behalf of the domestic lead and zinc mining industries. Producers of these metals protested the inclusion of paragraphs 391 (lead-bearing ores, dust and mattes), 392 (lead bullion, lead in pigs and bars, and scrap lead), 393 (zinc-bearing ores of all kinds), and 394 (zinc in blocks, pigs or slabs, and zinc dust) of the Tariff Act of 1930, as amended in the list of articles to be considered for possible tariff concessions at Torquay. It was pointed out that although operating costs have more than doubled since 1939 tariffs on these metals were actually higher in that year than at present. This, coupled with the detrimental effects of the recent series of devaluations, has sounded the death knell for a substantial number of domestic lead and zinc mines-a most undesirable development in the face of the ominous international situation, according to these spokesmen. It was urged that higher rather than lower tariff rates are needed on these metals. The opinion was expressed that it was inconsistent to foster a high living standard in our western areas and then, once it is attained, to undermine that condition by minimizing the protection that was partly responsible for it. The main theme of some arguments implied that although every effort should be made to close the "dollar gap" abroad, serious consideration must be given the methods employed lest our national security position be jeopardized in the process. The House Committee on Foreign Affairs completed hearings on H. J. Res. 236, to provide for United States membership and participation in the International Trade Organization. Hearings began on April 19th and ran for over five weeks. Many witnesses from industry and government presented voluminous testimony, which will not be available for public distribution for several weeks. However, it is no secret that the most controversial provisions of the Draft Charter of the ITO are: (1) Article 17 (Chapter IV on Commercial Policy) which would obligate members to negotiate for the reduction of tariffs and the elimination of trade preferences; (2) Article 20 which would prohibit the use of quantitative restrictions for protective purposes; (3) Article 16 which promulgates rules to implement the principle of non-discrimination in international trade; and (4) provisions permitting the use of protective measures for promoting economic development, particularly in backward areas, even though such provisions are inconsistent with those of the three articles cited above. United States membership in the International Trade Organization is essential to the successful operation of that body in view of this country's position as the economic giant in the present international trade pattern. Many countries are reluctant to take any action toward the ratification of the charter until it is known what course America will pursue. However desirable or undesirable the ideal of free multilateral trade may be it is unlikely that this Government's participation in the ITO will materialize soon. Advices in Washington indicate that H. J. Res. 236 will not be enacted during the present session of Congress. The legislative pattern designed to secure Congressional approval of the ITO is similar to that of the St. Lawrence Seaway project. The Seaway project was pending in treaty form for several years before the Foreign Relations Committee of the Senate and when the Administration decided to incorporate this project into bill form it was found that, while it passed the House promptly, the Senate decided to pigeonhole it because of the obvious intent to circumvent the constitutional prerogative of the Senate to advise and consent to the ratification of treaties. The ITO bill may be slated for a similar fate. It is deemed essential by western Senators and Congressmen that the present session of Congress enact some form of mining legislation before its adjournment, now set for July 31st. These legislators from prominent ore-producing states do not desire to return to their home areas in the fall emptyhanded. Aside from that, it is entirely superfluous to reiterate the necessity for maintaining a healthy domestic mining industry as a bulwark against a sharp rise in the temperature of the "cold war". Now that S. 2105 has failed a new bill is taking shape in the Senate Interior and Insular Affairs Committee. It is similar in language to H. R. 8221 (to encourage the conservation and development of the mineral resources of the United States) reported by the House Public Lands Committee on May 3, 1950, but so far has failed to receive approval of the House Committee on Rules. There are some qualified observers in high circles in Washington as well as in the mining industry who favor a tax incentive program to stimulate investment in mining enterprises, as opposed to a conservation and exploration program. The Bureau of Mines and the Treasury Department have undertaken a joint study to determine the need for modification of the tax laws as they apply to mining. The study is scheduled for completion before the end of the year, and appears to be supplementary to the investigation initiated by the National Minerals Advisory Council which culminated in the submittal of recommendations to the Secretary of the Interior in December 1949. The "cold war" is largely responsible for the increased demand for metals. Stock-pile purchases and heavy industrial demand due to military needs distort markets and disrupt normal price trends. Such activity has an unhealthy influence on metal production, luring some producers into a state of dependency on the continuation of this condition. When stock-pile objectives are met sometime in the future purchases must then come to a halt unless international "fireworks" are touched off. It can only be hoped that technological improvements and further mechanization of mines coupled with the stimulus of a rising population will offset the anticipated drop in industrial demand and cessation of stockpile purchases when the international crisis abates.

Jan 7, 1950

By Joseph L. Gillson

BRAZIL has had an industry based on ocean beach deposits of heavy minerals containing monazite, zircon, rutile, and ilmenite for well over 40 years, but except at the very earliest period, prior to 1906, and again during World War 11, has this industry been at all comparable in size with similar operations in other countries. Limiting factors have been neither a lack of reserves nor lack of markets (except for zircon). Although poor local transportation and shipping facilities have handicapped the development in Brazil, these conditions were perhaps equally bad (when mining operations started) in the Indian State of Travancore, and in New South Wales and Queensland, Australia, in which states the principal production of beach deposits of heavy minerals has occurred. The outstanding restraints on the Brazilian industry have been the lower quality of the Brazilian minerals, the relative small size of individual deposits that were known until recently, the lack of interest of Brazilian investors in mining ventures, and the unfavorable climate for investment of foreign capital under Brazilian mining law. The lower quality of the minerals is indicated by the fact that the Brazilian monazite carries only 5 to 6 pct ThO2,*, and the ilmenite 56 1/2 pct TiO2, whiteness of the Australian zircon. An inadequate market for the abundant zircon that will be avail- able in any operation in Brazil is certainly a heavy restraint, since otherwise it could be an important byproduct. The oxide of zirconia, baddeleyite, that has come from Brazil is from other sources. 1 Since the Brazilian beach sands carry only a little rutile, that mineral has not been available as a valuable byproduct to help finance the operations.

Jan 6, 1950