deal of pressure has been put on the Defense Minerals Administration to approve purchases of very low-grade stuff, for which there is no conceivable use, and I am glad to note that the Defense Minerals Administration and the General Services Administration have resisted the pressure. Mr. ENGLE. I hope they continue to resist it. I see no reason in the world for putting stuff into stockpiles that cannot be used, and that is why I was asking about this 42-percent ore. Mr. HOLDERER. They will not usually buy low-grade ore, and we have had to assure these people that they can use Mouat concentrates. Timmins says he can take 7,000 tons a month, and probably more if he expands his operation; that is only under his present operation, and that is of the concentrates from this Stillwater deposit, which can be used. Mr. THAYER. During the last war the United States Vanadium Co., from its own mines, shipped about 40,000 tons from Red Lodge, Mont., which averaged about 40 percent Cr2O, with a chromium-iron ratio of about 1.5 to 1. That would be similar to the Stillwater. RED LODGE AND GISH PROPERTIES NOT PLANNED FOR DEVELOPMENT BY THE GOVERNMENT Mr. D'EWART. Red Lodge is at one end of this deposit which is about 27 miles in length. Mr. THAYER. The Red Lodge deposits are on the fronts of the Absaroka Mountains, but the deposits are separate geologically from the Stillwater deposits. Mr. D'EWART. Yes. But the same vein runs to the Benbow claims. Mr. THAYER. Yes. Mr. D'EWART. Are you doing anything with the Red Lodge deposit at this time? Mr. THAYER. No; we are not. The good deposits were pretty well mined out and prospecting for more deposits would be under very difficult conditions. Mr. D'EWART. Are you doing anything with the other end of the deposit with the Gish deposits at Independent? Mr. THAYER. At the east or west end? Mr. D'EWART. The west. Mr. THAYER. The west end? Mr. D'EWART. Yes. Mr. THAYER. No; we are not. The chromite layer at the west end was growing thin, composed of low-grade ore, and rather badly broken up so that it would be expensive to operate. Mr. D'EWART. I understood the claims had changed hands recently, and the new owners were supposed to develop the property. Mr. THAYER. Yes. PRESENT CHROME PROGRAM WOULD STILL LEAVE THE UNITED STATES DEPENDENT UPON OVERSEA SOURCES OF SUPPLY FOR 90 PERCENT OF REQUIREMENTS Mr. ENGLE. If this program is put into operation, to what extent would it make this country free from the necessity of importation? Mr. THAYER. On a thousand-ton-a-day basis, the Mouat mill would produce about 125,000 tons of concentrate a year. Our imports are running about 1.25 million tons a year, so that on a strict basis, without regard to grade, it would be about 10 percent ci present imports, which are somewhat above the rate of consu Mr. ENGLE. You would say about 125,000 tons! Mr. THAYER. Tons of concentrates a year, and our presett are running about 1,250,000 tons a year. FULL DEVELOPMENT AND UTILIZATION OF CHROMITE DEPOSITS Mr. ENGLE. So this thing boils itself down to about th., dost as to how much the Government is willing to spend to n.as independent and save itself from the necessity of dependir g eign imports. Is that what it amounts to? If we want enough money, we can? Mr. HOLDERER. If we care to spend enough money, yes; ents the Oregon deposits and the deposits in Canada, to be w pendent would require every ton of chrome ore we can × rap which would be a very expensive proposition. Mr. D'EWART. But in the case of the Mouat, the prest concentrate is very low, because we have the chromtur, on imported! Mr. HOLDERER. That is correct. The Mouat mine operat be greatly expanded. The deposit is so vast that if we cared fo the money they could more than double; you could have from 10,000 tons a day. PRICE OF IMPORTED CHROMITE Mr. ENGLE. What is the cost of imports at this time? Mr. THAYER. The standard ores are running in the order of $12 a ton. I would like to point out in connection with this cost, that can is on the eastern seaboard and applies to directly usable hei ore near the consuming center. The $40 for Montana would be on off-grade material, a long way from the place w. -going to be consumed. The over-all cost would be higher from Montana. Mr. ENGLE. What you are saying is that the $40 is for the -lurgical grade? Mr. THAYER. Metallurgical grade at Baltimore. Mr. ENGLE. And that is 4 percent! Mr. THAYER. With, I think, about 3.2 to 1 chomium-tez rat. Mr. ENGLE. That is what percentage of chrome ! Mr. THAYER. Forty-eight. Mr. ENGLE. Of course that is very high grade. Mr. THAYER. Yes. Mr. ENGL. In any event, your conclusion is that ever w Mouat properly in operation at the currently planted rate would depend on foreign imports for 90 percent of ot requirements! Mr. HOLDERER. That is right. PRICE OF $115 A TON PAID FOR HIGH-GRADE CHROMITE AT GOVERNMENT'S GRANTS PASS PURCHASE DEPOT CONSIDERED THE MAXIMUM LIMIT Mr. ENGLE. Is there any disposition in Defense Minerals Administration to set a ceiling above which the Government will not go in paying for chromium ores? Is the price being paid for chromite at Grants Pass considered the ceiling! Mr. HOLDERER. Yes, at the present time. Mr. ENGLE. As a matter of policy, the price at Grants Pass is considered the ceiling? Mr. HOLDERER. Yes. Mr. ENGLE. In other words, the maximum which the Government is willing to pay now, as a matter of policy, is $115 for 48 percent chrome, with a 3 to 1 chromium-iron ratio; is that correct! Mr. HOLDERER. Yes; 3 to 1 chromium-iron ratio. Mr. ENGLE. I assume, Mr. Holderer, that you are not in position to comment on policy, but if you could get 48 percent, 3 to 1, produced for somewhere around $130, do you think it would be in our national interest ? Mr. HOLDERER. I do not-at the present time I would say "No." Mr. HOLDERER. That is right. Mr. ENGLE. And assumptions we could make? Mr. HOLDERER. Yes, Mr. ENGLE. Are you in position to state percentagewise what amount of chromium is in the stockpile! Mr. HOLDERER. I have no information; no. Mr. ENGLE. Are you in position to say whether or not the current supplies are sufficient for the emergency situation? Mr. HOLDERER. I have no information on the quantity in stockpile. Mr. ENGLE. Well, that is the answer; what we have is the answer as to whether or not we would wind up with enough chromite. Mr. HOLDERER. We are currently importing in excess of our cur rent demands; as to the quantity, and as to how much we have in stockpile, and what it would take to carry us through the emergency, I do not know; I have no information on that. CONVERTING LOW-GRADE MONTANA CHROMITE CONCENTRATES TO FERROALLOYS OR ELECTROLYTIC CHROMIUM AT SOURCE WOULD REDUCE TRANSPORTATION COSTS AND MAKE MORE NEARLY COMPETITIVE WITH FORFIGN ORES Mr. D'EWART. I would like to comment a little further on the price ratio in relation to the point of consumption. If the chromite-consuming plant is placed closer to the ore deposits in Montana, which would produce high chromium content products close to the source of chromite, transportation cost would be reduced, and would result in being able to bring the products to Baltimore or other points at a lower price. Mr. HOLDERFR. That is correct. Mr. D'EWART. And it would be in better position to compete with imported ores? Mr. HOLDERER. Yes. running about 1.25 million tons a year, so that on a strict te basis, without regard to grade, it would be about 10 percent present imports, which are somewhat above the rate of consu Mr. ENGLE. You would say about 125,000 tons? Mr. THAYER. Tons of concentrates a year, and our present ir are running about 1,250,000 tons a year. FULL DEVELOPMENT AND UTILIZATION OF CHROMITE DEPOSITS IN UNITED STATES AND CANADA COULD MAKE UNITED STATES WE INDEPENDENT OF OVERSEAS SOURCES OF SUPPLY Mr. ENGLE. So this thing boils itself down to about this, does it as to how much the Government is willing to spend to make independent and save itself from the necessity of depending upo eign imports. Is that what it amounts to? If we want to enough money, we can? Mr. HOLDERER. If we care to spend enough money, yes; conside the Oregon deposits and the deposits in Canada, to be wholly r pendent would require every ton of chrome ore we can scrape toge which would be a very expensive proposition. Mr. D'EWART. But in the case of the Mouat, the present prio concentrate is very low, because we have the chromium ores be imported? Mr. HOLDERER. That is correct. The Mouat mine operation ce be greatly expanded. The deposit is so vast that if we cared to sp the money they could more than double; you could have from 5,00 10,000 tons a day. PRICE OF IMPORTED CHROMITE Mr. ENGLE. What is the cost of imports at this time? Mr. THAYER. The standard ores are running in the order of $40 $42 a ton. I would like to point out in connection with this cost, that the pr is on the eastern seaboard and applies to directly usable high-gra ore near the consuming center. The $40 for Montana concentra would be on off-grade material, a long way from the place where it going to be consumed. The over-all cost would be substantial higher from Montana. Mr. ENGLE. What you are saying is that the $40 is for the meta lurgical grade? Mr. THAYER. Metallurgical grade at Baltimore. Mr. ENGLE. And that is 48 percent? Mr. THAYER. With, I think, about 3.2 to 1 chomium-iron ratio. Mr. ENGLE. That is what percentage of chrome? Mr. THAYER. Forty-eight. Mr. ENGLE. Of course that is very high grade. Mr. THAYER. Yes. Mr. ENGLE. In any event, your conclusion is that even with th Mouat properly in operation at the currently planned rate we st would depend on foreign imports for 90 percent of our chromi requirements? Mr. HOLDERER. That is right. CE OF $115 A TON PAID FOR HIGH-GRADE CHROMITE AT GOVERNMENT'S RANTS PASS PURCHASE DEPOT CONSIDERED THE MAXIMUM LIMIT Ir. ENGLE. Is there any disposition in Defense Minerals Adminition to set a ceiling above which the Government will not go in ing for chromium ores? Is the price being paid for chromite at ints Pass considered the ceiling? Mr. HOLDERER. Yes, at the present time. Mr. ENGLE. As a matter of policy, the price at Grants Pass is conered the ceiling? Mr. HOLDERER, Yes. Mr. ENGLE. In other words, the maximum which the Government willing to pay now, as a matter of policy, is $115 for 48 percent rome, with a 3 to 1 chromium-iron ratio; is that correct? Mr. HOLDERER. Yes; 3 to 1 chromium-iron ratio. Mr. ENGLE. I assume, Mr. Holderer, that you are not in position to mment on policy, but if you could get 48 percent, 3 to 1, produced r somewhere around $130, do you think it would be in our naonal interest? Mr. HOLDERER. I do not-at the present time I would say "No." Mr. HOLDERER. That is right. Mr. ENGLE. And assumptions we could make? Mr. HOLDERER. Yes. Mr. ENGLE. Are you in position to state percentagewise what amount f chromium is in the stockpile? Mr. HOLDERER. I have no information; no. Mr. ENGLE. Are you in position to say whether or not the current upplies are sufficient for the emergency situation? Mr. HOLDERER. I have no information on the quantity in stockpile. Mr. ENGLE. Well, that is the answer; what we have is the answer as to whether or not we would wind up with enough chromite. Mr. HOLDERER. We are currently importing in excess of our current demands; as to the quantity, and as to how much we have in stockpile, and what it would take to carry us through the emergency, I do not know; I have no information on that. CONVERTING LOW-GRADE MONTANA CHROMITE CONCENTRATES TO FERROALLOYS OR ELECTROLYTIC CHROMIUM AT SOURCE WOULD REDUCE TRANSPORTATION COSTS AND MAKE MORE NEARLY COMPETITIVE WITH FOREIGN ORES Mr. D'EWART. I would like to comment a little further on the price ratio in relation to the point of consumption. If the chromite-consuming plant is placed closer to the ore deposits in Montana, which would produce high chromium content products close to the source of chromite, transportation cost would be reduced, and would result in being able to bring the products to Baltimore or other points at a lower price. Mr. HOLDERER. That is correct. Mr. D'EWART. And it would be in better position to compete with imported ores? Mr. HOLDERER. Yes. |