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Show Pare 2 Delay In Mineral Policy American Gilsonite Plans Test Of 72 Mile Line, To Carry Solids Darkens Bleak Picture By Robert W. Bemick Tribune Business Editor long-rang- e Whatever happened that program, anyway? .to midnight" so far as introduction of this and vitally needed plan the plan which was supposed to be the answer of the Eisenhower administration to the earlier legislation initiated by Congress itself for the domestic minerals industries. This plan Is also the alleged corrective, the alternative or something (only the language experts on the bank of the Potomac can' fill in this space), to findings of the United States Tariff Commission .that segments of the American minerals industry were being cruelly punished by dumping" of foreign materials. Unfortunately, nobody in the domestic minerals industry the people concerned can tell you with any true degree precisely what the administration his in mind. There ere some blurred outlines, of course. Interior Secretary Fred A. Seaton, who 'last fall pomised the introduction of the plan by January, urged expansions of exploration for minerals; bartering consideration of tax relief, hinted at tariffs, one-hal- much-soug- long-awaite- f months past ht d etc., etc. But the failure of the Washington bureaucracy to discuss the matter in specifics with" the domestic industry is not only painful. It's getting to have somewhat sinister overtones so far as the nature is concerned of the legislation which is supposed to come out of the various departments lining the streets of Washington. (This situation moved the Utah Mining Assn, to remonstrance last December.) Lacking any intelligence in, or from, Washington, D. C., miners in the Intermountain Area can only surmise that ithe program is hung up somewhere. This is not, unfortunately, news. It was hung up" before it got started, in this writers opinion. But the dangers of the present lack of action are seriously apparent as Congress blithely continues to trust in the efficacy of this plan" and lops off funds for stockpiling of metals and minerals which procedure has been (in the past) the only factor saving many mines in the West from absolute liquidation. Of course the Congress is answering demands from their constituents to cut down on the fantastic spending in Waahigton. Not having the courage to question the permanent foreign spending programs, they execute the domestic minerals industry the demise of which will also aid the foreigners. According to DoweJones Service, the House Appropriations Committee knocked some 517 millions from requests of various federal agencies for ithe next fiscal year. Largest cuts were made in the General Services Administration program of stockpiling strategic and critical minerals. The committee recommended only 19 million of the 130 million dollars sought for buying strategic and critical materials for ithe stockpile. The panel emphasized the large amounts of materials that are already in the stockpile, the amounts on order and the totals of unspent funds from previous appropriations," the financial service relates. Of course, basically neither the stockpiling nor the administration-sponsored bartering of agricultural goods for rado reduction center. It takes the slurry about foreign-produce- d metals, is any long range" answer to the plight of U. S. metals producers. We are forced to agree that the American prospector has conin many minerals. If verted the nation into virtual ' was a result of and ingenuity price. We recall how nearly nine years ago, James Boyd, then director of the U. S. Bureau of Mines, Stood up in the auditorium of the self-sufficienc- y Tribune Building and listed the critical and strategic" metals the government wanted, needed verily, demanded for the defense of our democracy. h . puns CIRCULATION NEWS ii 121 Church Street 2402 Curtis St., Denver Phone KM ALplne 40 38 ADVERTISING SOU EM 2608 Bolt Lake City, Utah 2402 Curtis St., Denver ALplne 38 Entered as second dais matter at Balt Lake City, Utah, under Act of March 3, 1879. Subscription rates: 85.00 for two years; for one year. 13.00 Please mention Western Mineral Survey when writing to advertisers. Advertising rates on application. Editor U M. HILL All news appearing In the Western Iflneral Survey is obtained from sources believed to be reliable but no responsibility Is assumed for accuracy of statements. Reproduction of any material from publication must have written permission from the publisher. Kennecott Sees Stability In Kennecott Lists Present Prices Charles Cox, president of 1956 Earnings Kennecott Copper Corp., said current cents a the Tuesday Bureau Iron Ore Production Report Among them: lead, zinc, uranium, tungster, antimony, cobalt fluorspar copper, manganese, et al. Lead and zinc are propped up by government stockpiling, now The Western States (California, ending. Tungsten producers are now in the process of liquidation in the United States. Ditto on manganese, fluorspar and antimony. Colorado, Nevada, New Mexico, Missouri, Texas, ' Wyoming, and Cobalt is obviously headed for serious trouble in a year and one-halUtah) increased output 11,796 now and employment producers, production restricting Copper gross tons more than in October, in the U.S.A., are prayerfully hopeful of stabilization at 32 cents a but reduced shipments 15,969 tons. pound. (They claim copper by rights ought to be 35 cents a pound.) Iron ore stocks in the Western For the western states which draw their basic wealth and their States at the end of November were 61,238 tons higher than at hope for a brighter future from the products of their mines, this is, the end of October. indeed a dismal picture. November iron ore imports, reWhat, in fact, hath Washington wrought! ceived from 13 countries, totaled 2,588,995 gross tons. Canada conacid-grad- e SURVEY 29 hours to travel the line from Bonanza to Gilsoniites. This is the minimum speed at which the material can be moved, without the hydrocarbon settling out in the line. Rotary leaf filters manufactured by Eimco Corp., Salt Lake City, squeeze out all but 18 per cent of the water. The gilsonite is then flash" melted at 460 degrees Fahrenheit, which drives off the remaining water. Northwest. The melted, viscuous gilsonite E.F. Goodner, Salt Lake City, president of the joint affiliate of is conveyed to the delayed cokStandard Oil Company of Cali- ing units which produces nonfornia and Barbara Oil Corp., said condensible gases, gasoline fractthat early in April, actual trans- ions and green coke." The gasmission of the gilsonite slurry olines go into a catalytic reformer for conversion to motor grade in water would be tested. It is a most unusual program fuels. The cokes go to a rotary kiln and will herald a new day in the where volatiles are driven off. solids of conveyance by pipeline in this western country, according to observers. At Bonanza, the company has completed major changes in the mine in preparation for hydraulic production of ore." The gilsonite will be brought to the surface by hydraulic means and then conKennecott Copper Corporation verted in the new slurry house to consolidated net earnreported fines for mixing with water. last ings year of $143,154,210, The slurry will contain about to a share. This com$13.23 equal 35 per cent gilsonite solids in with or $11.60 pares $125,516,291 water in transmission to the Colo- a share, in 1955, according to the annual report to stockholders issued today by Charles R. Cox, Of Mines President. The increase in net income, the Issues annual report .disclosed, was due primarily to the high average price received for copper in 1956. Production of copper by KenneAccording to the Bureau of cott during 1956 amounted to Mines, United States Department 582,205 tons and sales amounted of the Interior, domestic iron to 495,219 tons. In the first two mines in November produced months of 1957 sales were in 8,351,288 gross tons of iron ore excess of production. Other proand shipped 10,287,596 tons. Mine duction in 1956 included 16,269 stocks at the end of the month tons of Molybdenite, 403,381 oz. totaled 5,327,044 tons. of gold, 3,213,559 ounces of silver November production and ship- and 148,445 pounds of selenium. ments of the Lake Superior disNewer metals, such as titanium, trict (Michigan, Minnesota, and columbium and zirconium, are Wisconsin) were the highest of going to be in important demand, any November since 1952. The the report stated, and Kennecott Superior District mine stocks at is increasing its interest in their the end of the month comprised production. (Kennecott recently 80 per cent of all the iron ore undertook a joint venture with stocks at the mines in the United Allied Chemical & Dye corporStates. ation to build a $40,000,000 In .the Southeastern States to produce titanium metal.) plant How(Alabama, Georgia, Tennessee, ever, Mr. Cox pointed out, the and Virginia) production and principal product of the company shipments declined 157,833 and is copper and will continue to 156,569 gross tons respectively be- be for the forseeable future. The low those of October. need is for additional copper deThe Northeastern States, New posits, and it is mainly toward Jersey, New York, and Pennsyl- their discovery that our explorvania) produced 7 percent and ation program is directed." shipped 6 percent less iron ore in November than in October. e (Reprinted from March 17th Issue of the Salt Lake Tribune) Passage of both joint and concurrent resolutions by the Republican-controlled Utah Legislature urging speedy consideration of a minerals policy by Washington brings something vaguely to mind. It is now two and American Gilsonite Co. Monday will commence preliminary hydraulic testing" of its 72 mile from Bonanza, long pipe-linUintah County, to Gilsonite, near Grand Junction, Colorado. The eight-incfacility eventbe will carring 700 tons ually of the hydrocarbon mindaily to the reduction Bonanza ed at center in Colorado for conversion into high test gasolines and metallurgical grade coke for the aluminum industry of the Pacific 1STERN MINERAL R. 32 pound producers price for copper will afford stability to the market and discourage the substitution of other materials." He told stockholders in the annual report the price has fallen in February 1956. Cox said the average price received by Kennecott for Its copper in 1956 was 41.6 cents a pound against 36.6 cents the previous year. The officials said production of copper by Kennecott during 1956 amounted to 582,205 tons, as compared with sales' of 495,219 tons. He said in the first two months of 1957 our sales were in excess of production." As previously reported Kenne- cott had record net income and total revenues during 1956. Net to $143,154,000, equal to share from $13.23 a common rose $125,516,000 or $11.60 per share 1955. Total revenue amounted to $578,067,000, against $555,939, in 000 in 1955. Cox said the outlook for 1957 is for a continued demand for products of Kennecott." . He said Kennecott is expanding its operations in newer metals as titanium, columbium and zirconium, but Its major product will continue to be copper for the foreseeable future." Radar Island f. FROM UTAH'S MINES - A BETTER UTAH The 1956 assessment of mining property in our state was 27.5 of the total assessed value of all property In Utah. As a result, taxes paid by mining were an Important factor In governmental financing. The mining industry is proud of the part it plays In helping to support education and other government services that mean better communities for the people of Utah. UTAH MINING ASSOCIATION "From the earth comes an abundant life for all" tinued as the leading supplier with 51 percent of the total; Venezuela supplied 28 percent; Peru 6 percent; Chile 4 percent; Brazil and Liberia each 3 percent; Sweden 2 percent, and British West Africa, Cuba, Dominican Republic, Mexico, Phillippines, and United Kingdom the remaining 3 percent. Imports for the first 11 months of 1956 totaled 28,726,852 gross tons. Exports of iron ore from the United States in November totaled 543,061 gross tons; 454,229 tons to Canada; 87,396 tons to Japan, and 1,436 tons to other countries. a1 t i 1 1 More than 100 miles off the New England coast, this man- radar tower in the nations made island" is the first open-se- a new Atlantic defense network against air . attack. Costing $13 million, it houses 60 Air Force personnel on its three decks, and enough electrical gear to supply a city of 100,000. Its three raiders at disspherical radomes" are designed to spot enemy n island" is 6,000-totances which are a military secret. The such amid land so from to ever stand far the largest structure which Oil Gulf to supplied sea conditions, according hazardous fuels and lubricants during the unprecedented erection Job by Raymond Concrete Pile Co. and DeLong Corp. (a joint venture). . |