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Show U OF U LIBRARY CITY 1 STEM MINERAL SURYEY Features Mining, Oil, Financial Salt Lake City, Utah, May Vol. 24, No. 20 Anaconda To Complete New Work j i J y 'f y- it i f 't ic s Anaconda Copper Mining expansion program, is nearing completion. Started five years ago, it has cost nearly $300 million, and includes new plants and properties and further development of existing plants and properties. Cornelius F. Kelley, chairman, and Robert E. Dwyer, president, told shareholders in the report covering 1952" operations: The year 1953 will mark a completion of the major portion of this program and there should ensue a long period of. earnings for the shareholders and benefits to our customers from these important investments. During 1952, capital expenditures amounted to $67,757,312, of which $19.5 million was spent on its properties in Montana and $11,624,000 on its new copper mine development at Yerington, Nev. Another $28 million went for the development of the companys Chilean property at Chauqulcamata, while $8 million was spent on plants of the wholly owned manufacturing subsidiary, American Brass Co. by AnaNearly $7 was spentaluminum-producing conda on its new Anacqnda project Aluminum Co. This plant is located near Columbia Falls, Mont., and will have a rated capacity i of ' 50,000 tons'; of aluminum a year. It will cost about $45 million. Providing construction schedule is maintained, it is expected to start producing sometime in 1954. For the year ended Dec. 31, 1952, Anaconda Copper Mining Company reported gross income of $482,886,592, an increase of 3.93 per cent from the $464,639,-20- 4 in 1951. Net incojme for 1952, rs keeping the expanding needs iff .4heG American economy and in developing new markets for" their proc(gcti assures a outlook for healthy longae the metals. According Ho a statement prepared by Battelle Institute, Columbus, Ohio, consumption of each of these metals has about doubled since 1920. The usefulness and versatility of the materials is so well entrenched in our daily lives that continued expansion in, their consumption is certain as long as the American economy grows. One' estimate shows that by 1975 the United States will need 45 per cent more copper, 0 per cent more lead, and 38 per cent more zinc than in 1950. Expressing the combined opinion of his associate, Director Clyde Williams states that copper, lead, and zinc produced will meet such increased demands although temporary shortages may occur from price difficulties or a national emergency. A? in the past, copper, lead, and zinc producers will meet increased demands by making the most technological advances that enable them to produce the greatest quantity of their products at the cheapest cost Existing supplies of the metals will be stretched by more efficient mining and processing techniques and by continued emphasis on recovery of scrap and waste sup-- , pression. Fundamental to future achievement, of course, is however, was reported at equal to $4.61 a capital share, compared with net of or $5.79 a share, for 1951. The decrease in 1952 was Importance Of Lead-Zin- c Tax Detailed Manganese Plant Now Producing Ariz. The federal Australia Reasons for the proposed adoption of an equalization import tax on lead and zinc entering the United States were detailed by Andrew Fletcher, St. Joseph Lead Co. president, in an address here before the Australian Institute of Mining and Metallurgy. Although he welcomed complete free trade throughout the world, he said that as long as there were international trade restrictions of various kinds, consisting of multiple exchange rates, import and export quotas, devaluation of currencies, and the establishment of quotas, the American mining industry had to devise some means of protecting its own interests. A sliding scale import tax would be the least objectionable device, he declared. Fletcher called attention to the fact that imports of lead last year were 637,000 tons compared with about 75,000 before World War II, and that domestic mine output had declined to 375,000 tons. Who would think from the downward trend of the metals in recent months that, only a year ago, the entire world was imbued with the idea of serious and permanent metal shortages? Our government was using ex- - $39,-981,61- 0, $50,-216,8- 38, 8, $10,-235,22- or 20.38 per cent WENDEN, governments manganese sampling plant and purchasing depot at Wenden, is receiving an average of 44 truckloads of ore daily, says Robert E. Reno, Jr., deputy regional director, emergency procurement service. During the first 41 days of operation, the Wenden depot received over 16,000 tons of manganese ore, containing 19b, 000 units of manganese, and made preliminary payments of over $200,000 to producers. Only 215 tons of ore were rejected by the depot for failure to meet the minimum specification of 15 per cent contained manganese. - Ore Shipments ' Week May 8, 1953 Ending BINGHAM DISTRICT, UTAH Combined Metals Reduction Co. 385 tons. ' U. S. Mines Co. 6749 tons. Utah Copper (Kennecott) n cars daily average. 973 One Tear $2JS0 Increasing Demand For Copper, Lead, Zinc Fishing Job Assures LonjRangOperation Of Properties Progresses The proven resourcefuligesjf environment that from abroad. Outstanding At Rigby Well of copper, lead, and zinc of curates the working among recent overseas efforts made in pn)-duce- Com-pany- t 15, 1853 85-to- EUREKA DISTRICT, UTAH Chief Consolidated 37 cars. Dragon Consolidated clay 25 cars. Courtesy J. A. Hogle & Co. . MELBOURNE, are those being lower grade ores and American - owned sits. Writing in uie . May issue of trie4 Cleveland Federal Reserve Banks MonthlyJBusiness Review, Williamses tes the alert- ness of coper producers in applying technological improvements to their operations as typical of the progressiveness of the nonferrous metal industries. Better drilling, blasting, and hauling techniques have been a major factor in improving mining yields. Available statistics show that ore tonnage output per manhour more than doubled between 1935 and 1945. Lower grade copper deposits have been made an important source of supply. The country is now obtaining most of its copper from ores that contain about one per cent of the metal, as compared to five per cent in 1890. In recent years, the ingenuity of mining engineers in making the e ores profmining of itable has brought into production huge deposits at Bis bee, Arizona, and Butte, Montana. Such operations no doubt will continue as long as the price of copper remains sufficiently high to ' render them worth while. Recognizing the key role of imports in the countrys total supply picture, copper, lead, and zinc producers have always sought to develop maximum output from overseas deposits. In 1950, about of our consumption of of the lead, and zinc, one-haof the copper came at the Chuquica-mat- a mine in Chile, probably the largest single source of copper in the world. Here, new processing equipment is being installed that will greatly expand production from previously untapped reserves. Peru and Northern Rhodesia are being studied for expansion in their copper production and potentials. Metals producers will take in stride any replacement of copper, lead, and zinc by alternative materials, Williams continues. The country will still need greater quantities of copper, lead, and zinc for their By COL. RAY E. COLTON Ben F. Klippel, drilling contractor, Duchesne, Utah, reports that operations are now in progress on a fishing job to recover a lost drilling bit from a depth of 455 feet in the Idaho Oil & Mines Corporation well Bullock-Soremso- No. 1, n tion NW loca- of the SW V of section 32, township range of Boise Meridian, Jefferson County, Idaho. Halliburton Oil Cementing Company, Rock Springs, Wyoming has completed cementing the eight inch casing, and all that remains before drilling is resumed to test natural gas zones, is to complete the fishing job which should be completed this week. Test well drilling site has been selected for a second well to be driled to a depth of 2000 feet rotary tools and to be known as Bullock-Guymo- n Number 1, loof NW cation NW section st 2, township range of BPM. Bonneville County, Idaho. This will be a test to the Madison limestone. Drilling pipe is already at the well site and drilling will start in the near 38-ea- st most essential uses. In the electrical industry, for where copper has its greatest use, expanding needs within the next 75 to 100 years, if not before, might require all available supplies of this metal. Copper, lead, and zinc, furthermore, have such excellent properties that new uses will always be found to compensate for losses in old applications. In the last 30 years, future. comMr. Ben H. Bullock, Provo, lead as an high-test is president of the Idaho in Utah, gasolines pound has taken on increasing im- Oil & Mines Corporation, Eigportance. Recent studies at hty, Idaho- and Mr. Ray D Battelle verity that copper is Steele of Goshen, Utah, is a di a useful constituent in fertil- rector. izer and in paints for ship bottoms. As long as the American economy grows, the research head concludes, copper, lead, and zinc will share in that Officials of Utana Basins ,Oil growth. Company disclosed that Utana has acquired a 10 per cent workleases ing interest in two to the Hamilton. Dome adjacent Hot Field, Springs County, Wyo., on which a development well will be commenced within 30 days. The well is scheduled Operations of Rico Argentine Mining Company during 1952 at to test Tensleep (Weber) properties located at Rico, Colorado, resulted in a net profit of formationthe at about 3500 feet. $253,005 computed after taxes but before depletion allowances. The eases Were obtained on a This compares with $337,723 for the previous year. farmout from On this basis, earnings for the Oil Company by the New World year amounted to just less than Oil Company, Ltd., from whom 29 cents per share against 38 Utanas lease interest was obcents per share for 1951. The deThe well is considered Clayton: Silver Mines had a crease was attributed, in the tained. step-out a from the producing gross income of $62,737 during most part, by company officials area of the Hamilton Dome the first quarter from its oper- to lower metal prices. Current Field and, if productive, will ation in the Bayhorse district of assets at year-en- d totaled extend the limits of the field the Custer County, a report to the $1,236,940. which now contains 96 producSpokane Stock exchange this week reveals. This is about 10 Information contained in the ing wells. The nearest produccent the $67,507 below, gross companys annual report releas- ing well is located & mile north per of the previous quarter and less ed in Salt Lake this week dis- of the new drill site. than half the $128,820 received closed that despite the unusually from ore sales in the first three severe weather during three months of 1952. months of the year, 43,659 dry tons of lead-zin- c ore were milled to stimulate efforts 1033 tons of flux grade and traordinary dry production all over the world crude pyrite were sold during The WASHINGTON, D. C. and buying with frenzy. the year. U. S. Navys $50,000,000 oil exI never subscribed to the docThe average daily tonnage ploration project at Point Bar-rotrine of metal shortages, even milled begun in 1944 is too costly each day the mill operat the height of the hysteria, to continue, Navy Secretary Anore was 146 dry tons. The and so advised my friends in ated derson the House Armed told tons 1880 milled consisted of dry Washington. I believed that the from Service Committee as he anand 41,779 dry tons shortages were artificially cre- mineddumps to nounced suspend the plans from underground workated, largely by the intervention venture. of government in metal mar- ings. Production costs were higher kets. Anderson said the Navy also 1952 than in 1951. Most of will in There can be no shortage of cancel a request that Conused during the the supplies a in market any commodity gress give it $9,700,000 to carry where supply and demand func- year were up in price; the power on the work next year.. tion, for the price of the article rate was increased; tomore labor the mine He told the committee that will provide automatically a me- was needed due more extensive will be an orderly with- -, there chanism by which any malad- workings being most of the of equipment and perand drawal underground justment is. corrected, Fletcher sonnel from the project. Continued on Page 2 stated. ex-pl- e, 38-ea- th, low-grad- anti-kno- ck . - . one-thi- anti-fouli- ng Utana Basins Oil rd Expands Holdings lf one-four-th Rico Argentine Mining Co. Records Profit During 1952 40-ac- re British-Americ- an Clayton Silver Navy To Suspend Oil Exploration r |