Primary zinc smelting companies in the United States in 1947-Continued [Plants that treat primary crude materials exclusively or chiefly] Bishop Concentrate & Cleaning Co., Bishop, Calif-- Location of plant Bishop, Calif. Do. Geo. H. Teal & Associates, Box 37, Boulder, Colo----- Boulder, Colo. Getchell Mine, Inc., Box 2520, Reno, Nev-Winnemucca, Nev. Wah-Chang Trading Corp., Woolworth Bldg., New Glen Cove, N. Y. York 7, N. Y. Producers of ferrotungsten Electro Metallurgical Co., 30 East 42d St., New York, Niagara Falls, N. Y. N. Y. Molybdenum Corp. of America, 500 Fifth Ave., New Washington, Pa. Climax Molybdenum Co., 500 Fifth Ave., New York, Langloth, Pa. EXHIBIT 12 EXPLANATION OF THE PROVISIONS OF H. R. 2031 GENERAL H. R. 2031 is intended to do exactly as the title suggests: "Stimulate exploration, development, mining, production, and conservation of strategic and critical minerals and metals within the United States and its Territories. * * *" The "Findings of fact" and immediate "objectives" presented in the bill (sections 2 and 3, respectively) are self-explanatory. The bill is designed to accomplish the purposes of the title in a most effective and democratic manner. Within certain limitations, it provides assured markets and adequate prices over a necessary minimum period of time. The bill enables equal participation by all-from the prospector in the hills to the giant companies in mining. H. R. 2031, with special emphasis on conservation through the elimination of waste and loss of domestic mineral resources through mining and processing, provides the following essentials: DIRECTOR APPOINTED BY SECRETARY OF THE INTERIOR 1. An Office of National Minerals Development is established within the Department of the Interior. The Director and Assistant Director are appointed by the Secretary of the Interior. MINERALS AND METALS NAMED 2. Development, production, and conservation payments called incentive payments are paid as stipulated on ores or other raw materials of antimony, asbestos, bauxite, beryllium, chromium, cobalt, columbium, copper, corumdum, graphite, kyanite, lead, manganese, mercury, mica, monazite, nickel, rutile, talc (steatite), tantalum, tin, tungsten, vanadium, zinc, and zirconium, together with any materials the Director may add. MAXIMUM BASES PRICES ESTABLISHED 3. Basically, the highest base prices paid by the Metals Reserve Company and premium prices paid under the premium price plan for copper, lead, and zinc during 1942-46, inclusive, are adjusted by a simple parity formula (the percentage increase in the Bureau of Labor Statistics wholesale price index of all commodities-1926 equals 100-since such base prices were first offered and paid) to provide equivalent prices and premiums under current costs and conditions. Subsequent adjustments are to be made in the "maximum incentive base prices" from time to time, depending on fluctuations in the BLS wholesale price index number. Separate consideration and adjustments were found desirable or necessary for copper, lead, zinc, manganese, chromite, tungston, bauxite, and mercury. "Ores," as defined in the bill, "mean and include ores, concentrates, sinters, mattes, nodules, briquettes, ferro-alloys, metals, minerals, or other convertible or usuable raw materials of minerals and metals, and any such products recovered from mine dumps, mill tailings, slag piles, and residues." SPECIFICATIONS 4. Specifications of materials are the same as were required by Metals Reserve Company during 1942-46 unless otherwise provided. INCENTIVE PAYMENTS TO OTHER THAN SMALLEST PRODUCRES 5. The smallest producers receive the maximum incentive base prices automatically on application and submittal of such affidavits or certifications as may be required by the Director. INCENTIVE PAYMENTS TO OTHER THAN SMALLEST PRODUCERS 6. All producers other than the smallest are assigned only such incentive payments as are necessary in each individual case, but not to exceed the maximum incentive base prices established for all. DIFFICULTIES OF PRODUCERS UNDER PREMIUM PRICE PLAN FOR COPPER, LEAD, AND ZINC ELIMINATED 7. The difficulties producers encountered under the premium price plan for copper, lead, and zinc are eliminated by various provisions of the bill, including the section (23) on retroactive incentive payments. EXPLORATION ALLOWANCES 8. Exploration allowances may be assigned to any individual or, under certain conditions, to the Bureau of Mines and the Geological Survey, where justified by substantiating data. 92987-49-ser. 14- -22 CONSERVATION OF DOMESTIC MINERAL RESOURCES THROUGH ELIMINATION OF WASTE AND LOSS IN THE MINING AND PROCESSING OF ORES 9. Conservation of mineral resources is enabled through incentive payments which will (1) Permit the recovery of marginal ores that otherwise may never be obtained from mining operations; (2) Encourage and permit the development and installation of processes to produce high-grade products and eliminate waste in benefication and processing; and (3) Permit the recovery of minerals and metals now discarded and lost in the production of other materials. (See sec. 20.) Vanadium is the illmenite ores of the Adirondack region and tungsten from the mother liquors obtained in the production of potash from Trona Lake, Calif., are examples. There is a denfiite possibility of obtaining manganese as a byproduct from some base metals ore as indicated by the USGS and vanadium from certain phosphate deposits. Conservation of minerals resources also is enabled through exploration allowances, as may be determined from section 9, and through research and development pursuant to section 30. MANPOWER AND WAGE CONSIDERATIONS 10. A section on manpower and wage considerations is designed to assure producers operating at a profit without incentive payments that the manpower in their mines and plants will not be disturbed or diminished by producers wholly dependent upon incentive payments for the continuance of operations. RESEARCH AND DEVELOPMENT 11. Research and development on mining and metallurgical processes are essential to derive the maximum benefits and reduce appropriations under the act. Therefore, H. R. 2031 authorizes and directs the Director to contract or arrange with the Bureau of Mines and other Government agencies and public and private parties to perform such work. TREATMENT OF LOW OR OFF-GRADE ORES 12. The RFC shall contract or arrange for the beneficiation or treatment of any low or off-grade materials that may be produced before transferring to the stock pile. LONG-TERM CONTRACTS (15 YEARS) 13. Many undeveloped properties and abandoned mines, starting from scratch, require up to 4 years or more to reach capacity production. For such operations, or where the cost per unit of production otherwise would be too high, contracts may be made by the Director for periods up to 15 years beyond the enactment of the act. LIFE OF ACT (10 YEARS) 14. Except for long-term contracts, the act would remain in effect for 10 years. Orderly and intelligent planning, development, mining, and conservation requires that the plan remain in effect for a minimum of 10 years. ORES PURCHASED AND TRANSFERRED TO NATIONAL STOCK PILE 15. All ores or materials produced with the aid of incentive payments are to be purchased by the RFC and must be transferred to the national stock pile. APPROPRIATIONS 16. During the fiscal year 1950, not more than $100,000,000 may be expended for incentive payments, exploration allowances, and all other disbursements not reimbursable by the Bureau of Federal Supply. After 1950, appropriations shall be made as the Congress from time to time finds necessary. (Whereupon, at 12: 05 p. m., the committee adjourned to the call of the Chair.) Hon. CLAIR ENGLE, EXHIBIT 13 DOMINION MANGANESE CORP., New York 17, N. Y., February 9, 1949. House Office Building, Washington, D. C. DEAR CONGRESSMAN ENGLE: You will recall my appearing before your committee on the Public Lands last year and giving testimony on the stock piling of critical and strategic minerals as well as essential metals so urgently required in time of emergency. As a matter of fact, confronted as we are with the serious shortage of iron and steel at the present time, this situation is becoming increasingly more serious due to the dislocation and poor transportation in India to make possible the importation of the vital mineral manganese to this country. This condition is further aggravated by the reduction in our imports of manganese from Russia. A copy of bill H. R. 2031 has been submitted to me, which I understand has been prepared by the consultant to your committee. With one or two minor changes this appears to be the best bill on stock piling that has been prepared to date. I hope that you will appreciate its significance and importance and in your inimitable way take it upon yourself to also introduce this bill with the possible objective of having it enacted into legislation. House of Representatives, Washington, D. C. MY DEAR MR. ENGLE: Enclosed is a statement by the Oregon Mining Association I wish you would present at the subcommittee meeting to be held on bills H. R. 2031 and H. R. 976. If there is an emergency and a possibility of armed conflict within the next 10 years, it is of great importance that legislation of this type be passed. Very sincerely, Re H. R. 976, H. R. 2031. F. I. BRISTOL, Rogue River, Oreg. OREGON MINING ASSOCIATION, INC., Portland, Oreg., February 11, 1949. COMMITTEE ON PUBLIC LANDS, House of Representatives, Washington, D. C. GENTLEMEN: We in Oregon are perhaps more familiar with the domestic production of metallurgical chromite than anyone else. More than 50 percent of metallurgical chromite produced during the last conflict was delivered to the railroad at Grants Pass, Oreg. The last remaining chromite producer shut down operations in the summer of 1948. His property is only a few miles from Grants Pass, Oreg. Oregon was a very substantial producer of mercury during the last emergency and had the largest producing mine at the time war was declared. These are the two critical and strategical raw materials on which we can give advice, which if heeded will put the domestic producer into production. Paragraph of section 11, H. R. 2031, outlines a price schedule under which chromite production would immediately be resumed. Metallurgical grade chromite is produced in small mines. The sustaining of this price for several years would see the opening of numerous mines operated during the war and the prospecting and discovering of numerous new properties. In the case of extreme emergency this production could be increased manyfold. Price is the only thing that will bring production. It is hoped that you, gentleman, have information regarding the seriousness of the transportation problem from Turkey and South Africa during the last war. The transportation charges paid on chrome ore exceeded the prices suggested in H. R. 2031. In spite of the fact that the chrome was convoyed, 95 percent of the first 60 boats carrying chrome from these points were sunk. So, you see the cost was tremendous. Mercury has the same problem. The European cartel reduced the price of mercury below the operating cost of the domestic producers and held it there until they had closed down. Just lately they have raised the price to a point where they feel that the wise producer will not resume operation. The cost to the Nation of producing 50 percent of our mercury domestically and 25 percent of our chromite domestically would be very small in comparison to convoying it in times of war. H. R. 2031 covers the situation in detail while H. R. 976 leaves the matter of details up to Director. A compromise between the two should be very effective. If the foreign situation is serious enough to carry a military budget of $20,000,000,000, it certainly is serious enough to supply a small amount of money for raw materials necessary to sustain this effort in time of war. Either we should eliminate the $20,000,000,000 for defense or pass legislation of this type to insure the materials necessary to sustain it. Very sincerely yours, F. I. BRISTOL, President. EXHIBIT 15 Hon. CLAIR ENGLE, THE MINING ASSOCIATION OF THE SOUTHWEST, House Office Building, Washington, D. C. DEAR CONGRESSMAN ENGLE: In view of the fact that the Mining Association of the Southwest will not be represented by any witnesses before the House of Representatives Subcommittee on Mines and Mining hearings on H. R. 976 and H. R. 2031, on February 16, 17, 18, or 21, 1949, we wish to take this opportunity of stating the position of our association with respect to these bills. We recommend enactment of legislation by the Congress that will provide exploration and development premiums for our critical and strategic metals and minerals, especially as applied to the support and assistance of such efforts by the marginal segment of our domestic mining industry, and that such a program be for a sufficient term of years to enable and justify long-range mine planning and development. We believe that a sound domestic mining industry is essential in our national interest, and that a premium price plan on critical and strategc metals and minerals is necessary if we are to have a healthy and sound domestic mining industry. We respectfully ask that this statement of our policy and position be placed in the record of the above mentioned hearings. Thanking you for your interest in this very important subject, we are MINING ASSOCIATION OF THE SOUTHWEST, By VICTOR J. HAYEK, Secretary. Hon. CLAIR ENGLE, EXHIBIT 16 PHOENIX, ARIZ., February 16, 1949. House of Representatives, Washington, D. C.: Will you please incorporate into the record of your hearing on H. R. 976 that the Arizona Small Mine Operators Association is heartily in favor of the enactment of this bill, and is opposed to complicating the subject by a lot of detail designed to benefit individual cases. We want simple and understandable legislation aimed at providing metals for the stock pile and providing new resources for our future national security. We deplore the selfishness which is in evidence, of those who are seeking a formula to fit their particular case in prefer |