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Show Pare Friday, June 7, 1957 THE WESTERN MINERAL SURVEY 2 Remarks of Se cretary Require Clarif ication Foreign Imports The record requires that Interior Secretary lYed A. Seatons remarks on the minerals program for metals other than lead and zinc be clarified. Secy. Seaton under examination by the Senate Interior Committee anent that program of the administration, was quoted in saying the nations resource base in antimony was sufficient to support a sustained high level of output. This is a somewhat strange reference at best. So far we can determine, the only native antimony mine, mill, smelter and refinery in the U.SA. at Stibnite, Idaho has been liquidated because of the failure and refusal of the federal government to sustain the industry on a defense basis. Mr. Seaton is quoted further as saying that imports are a minor factor on the potash business. The potash producers emphatically do not agree and are seeking controls right now on shipments from Communist East Germany. When mining and beneficiation facilities are completed on a huge project in western Canada, our neighbor to the north will prove a very real and significant threat to perfection of proposed exan- long-rang- e slons in the domestic industry, in eluding projeots at Moab. The Interior Secretary Is quoted as saying that copper was excluded from the long range minerals program because of continued good prices and the fact that a 2 cent excise tax comes into effect when the price falls below 24 cents a pound. Major producers believe that copper ought at least to be selling for 35 cents a pound. They have so stated frequently. The chairman of Anaconda Co. has said, based on exhaustive research, that given continued wage and materials inflation and failure of world copper prices to respond, sizeable reductions in underground mining of copper in the western states will become necessary. Further, Phelps Dodge Corp., representatives have proposed specifically that the 2 cent excise tax become effective at 32 cents and not at 24 cents as at present. As for tungsten, it is apparent, even if the 30 million dollar supplemental appropriation is forthcoming from Congress this session, that basically tungsten needs a higher tariff. It 'has been proposed vigorously An Editorial . Utah Oil Prospects In Millions This industry faces absolute in the industry that present tungto doubled least sten tariff be at liquidation in the minds of many retariff unless an effective quota system place It on a par with tung- on imports is devised. posing on sten products entering this foreign-produce- d country. The statement is made that no reasonable program of support could, on the basis of present technology, provide assurance of development of a commercial, domestic cobalt industry in the near future, This has a most serious implication, if not explained by the Secretary. What of the cobalt mine and mill at Cobalt, Idaho, and the refinery at Garfield of Calera Mining Co., wholly owned affiliate of Howe Sound Co. Millions of dollars have been spent by Howe Sound in perfecting the metallurgy of the Idaho cobalt deposits under the pressure of an insistent federal government. Present purchase program for Calera is fast disappearing. World cobalt prices have dropped precipitously. Is it the federal governments intention that this property be forced into liquidation? On manganese, Mr. Seaton says the present purchase program continues into 1960 and makes a program unnecessary. Some manganese producers urge that government consider exploration of this ore from purchasing selected areas an an incentive to the discovery of other important nonferrous metals associated with manganese deposits. Mr. Seaton is challenged that By Robert W. Bemick fluorspar surpluses resulting from Tribune Business Editor huge imports into the U.S A., par(Reprinted from The Salt Lake Tribune, June 1, 1957) ticularly from Mexico, are at all of temporary. announce Government expenditure Let the United States 100 million dollars of the taxpayers money in the state in 1957, .) As Sen. George Malone has said so colorfully, Mr. Seaton is to be commended most highly for breaking the sound barrier on the tariff issue within Mr. Eisenhowers cabinet. However, it appears he has Potash Hit Utah Producers ' the problems which must be considered by Delhi-TaylOil Corp. in the development of its hundred of millions of tons of potash in Grand County is the eastern market on which it will sell its finished product. been very badly informed as to Not only are equitable freight the status of many domestic rates competitive with producers metals other than lead and zinc. Mexico district a New in the factor, but growing imports of potash adversely affect the proposed Utah operation. WESTERN MINERAL For instance, the American PotSURVEY ash Institute reports that importations of the material into eastCIRCULATION NFWS ern states from Communist East 121 Chi rch Street Phone Ell German continue to swell each 2402 Curtla St., Denver year, posing a threat to the doALplne (R-Nev- Among or . mestic producers. ADVERTISIKa COX EM 2608 Last year, potash imports totaled 166,000 tons of which almost --402 Curtli St.. Denver ALplne 50.000 tons were from Communist Entered ae eeeond elau natter at 8a ! in 1955 CAke City, Utah, under Act of March Sr. East Germany. Imports tons and in 1679. were 160,000 1954, Subscription rates: $5.00 for tvo years; 107.000 tons. 13.00 Slit Lake City, Utah for one year. Picase mention Western Mineral Survey jrhen writing to advertisers. Advertising rates on application. U M. HILL Editor All news appearing In the Western Mineral Survey la obtained from sources wlleved to be reliable but no responsibility (s assumed for accuracy of statements. Reproduction of any material from this publication must have written permission from the publisher. At the present time, says the New Mexico Miner substantial quantities of foreign potash are being sold at eastern seaboard prices of from $2 to $5 a ton less than delivered price of domestic potash on these same markets. There are no import duties on potash and the government has thus far refused, despite industry pleas, to act to prevent dumping of foreign potash on the American market. and we would be deluged with comments of praise and interest for this program on the part of die Department of Long-Ran- ge far-sight- ed Defense. Should a charming capitalist from Boston announce he iny tended to make hub caps for helicopters at a new Salt Lake (provided he could raise the money on a pending underwriting) is is certain that at least the TV stations would arrange a film interview. But let the oil industry spend 100 million dollars in search for new mineral wealth, and theres the occasional comment: What, more oil news? ' Yes More oil news. Sitting down with a pencil and a piece of paper, we figured that on basis of $150,000 a well, out of pocket cost of drilling only, and with some 34 wells now being sunk, die industry is committingO itself to more than five million dollars each 60 to 90 days in search for oil or natural gas. Of course, some of these wells on a development basis will cost less possibly as low as $50,000 at established fields. They ,mav go higher more than one million dollars in the case of a difficult wildcat. Rule of thumb, though, this means that within one year, the industn, without expanding its wildcat program above present levels, Will be spending nearly 20 million dollars in drilling costs aloue in this state in 1957. Dj you know any other industry spending that much this year in development of new resources? We sincerely wish we did. But we dont. Drilling costs are but a fraction of what the petroleum industry spends, however, in its search for oil and gas. You have to keep a group of geologists on the payroll to figure out where to drill. You have to maintain seismographic crews in the field to give you an idea of whether the prospect is worth drilling. This geophysical activity is most expensive. You have to lease the lands. And if you do business with the Indians, this means you have to bid competitively for your leases. On Nov. 1, 1956, oil companies paid the Navajos more than 27 million dollars for rights in the Aneth Pool area, alone. In addition to the bids, you must pay rentals to whether the state of Utah, the federal government or the Indians. We dont include the cost of pipelines, oil refineries, petroleum products lines and marketing costs in our estimate. If we did, pro rata investments of the industry in Utah in the postwar period would be in hundreds of millions. Were only talking about what it costs to hunt for the crude oil and natural gas today. f Naturally, every hole does not hit production. But we believe that Utah is an excellent state in which to search for these mineral resources. We hope the industry continues to believe this. Its something to think about each time you read of a comstarting a new wildcat venture in Utah. fac-tor- land-owner- pany s, Kejr, U. Mineral Plan Joseph M.Pioneer Mining Wins Support of Utahns Dies" In California : GRAND Leaders of the Utah mining industry were high in their praise of the announced principles set forth in the Eisenhower administrations long-ranmierals plan. This program, under consideration in one form or another for several years, adopts the principle of sliding scale tariffs on imports as a means of preserving a healthy mining industry. ge In this action. Interior Secretary Fred Seaton has proved him-ae- lf an honest, dedicated and forceful member of the Eisenhower cabinet. No other Interior secretary in previous cabinets In Washington the last quarter of a century has been able to prevail with such a program. The secretary has won not only a great victory for principles affecting the western mining industry. He has suceeded in laying important groundwork which may yet result in placing the feet of the Republican Party upon the sane and practical path of for the American protection working man against the growing onslaught of importation of low-waproduced foreign goods. Great Assistance From Western ge June JUNCTION, Colo., Funeral services were-helat Brush Colo., Monday, June minerals program were immense and profoundly danger- 3 for Joseph M. Kejr, 66, one-oous In their implications.the principal founders of Moab Uranium Co. of Grand Junction. For example, there were strong Mr. died at San Rafael, element in Washington (and even Calif., Kejr of a kidney ailment. He a few in industry) who favored a had been convalescing from inpermanent program of bartering juries suffered some time earlier surplus American farm products in an auto acident. in consideration .of the promised 3 long-rang- e f - for foreign metals. Such a plan, if allowed to run a full-blocourse, would do incalculable violence to the American system of democratic capitalism, disrupt world trade of the U.S. taxpayer and place the domestic mining industry at the mercy of every would-b- e economist on the staff of some wn Washington bureau. Another alternative, which faced little prospect of being ap- proved by an economy-minde- d Congress, was a proposal for a huge purchase plan akin to the farm program. Reprinted from a Salt Lake Tribune article by Robert W. Bernick. New Paradox Area Shows Gas and Oil In Discovery An important oil and natural gas show has turned up at the Butler Wash area of San Juan County. Ralph Fair, San Antonio, Tex., independent, recovered be- tween 2,140 feet and 4,700 feet of heavily gas cut drilling mud in the area 11 miles southwest of GOP ' With the great assistance of Handing. The test was incomplete bewestern Republican members of of mechanical factora. Howcause the Senate and House, it is doubta shale between 6,586 and ever, ful that the secretary could have 6,912 feet, in what is believed to won out, of course. be the lower Lower Hrmosa did yield important signs of nathe (The announced support of tural gas. This is the first time tariff principle by such leading in this area that gas has been western Democrats as Sens. Alan found below the salt section in Hble of Nevada and Joseph C. OMahoney of Wyoming did much the Paradox Basin. to spur the administration forThis shale section, which Is up ward.) to 400 feet thick and may be a Alternatives facing Mr. Seaton faulted area, appears to be an oily, waxy, crumbling formation. It is the opinion of geologists that while the pressure built up was encouraging during parts of the test, at best the well could be completed at this interval only as a small gas producer. What is important, however, is the show itself. In the Paradox Basin these days this is enough to set oil firms off hunting for a porosity belt nearby which might yield commercial output of oil or gas or both. Location of Mr. Fairs Butler Wash Unit A is in the northwest quarter of the southwest quarter of Section 16, Township 38 South and Range 21 East. Now drilling below 7,000 feet, the wildcat is headed for a test of the Mlssissipplan formation. 1-- d |