Political and commercial geology and the world's mineral resources

Chapter XX: Introduction (2)

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-------+---------------------------+--------------+------------------
Con- | | |
trolled| | |
by | | |
capital| | Source of |
of | Company | product | Remarks
-------+---------------------------+--------------+------------------
United | Chile Copper Co. |Mines of the |Capacity will be
States | |Company |increased
| | |
Do | Braden Copper Co. | Do | Do
| | |
Do | A. S. & R. Co. |Local owned |Caldera plant
| |mines |
| | |
Do | A. S. & R. Co., custom | |
| smelters | Do |Carrizal plant
| | |
|Total United States | |
| | |
| United States properties’| |
| reserves | |
-------+---------------------------+--------------+------------------
England| Central Chile Co. |Panulcillo |Balance custom ore
| |mine ¹⁄₃ |
Do | Poderosa mine | |Shipped to U. S.
| | |
Do | Lota custom smelter |Largely custom|Treat custom matte
| |ore |
| | |
|Total British | |
| | |
| British properties’ | |
| reserves | |
-------+---------------------------+--------------+------------------
France | Chanaral |Mines of the }|Product treated at
| |company }|Balbach plant
Do | Naltagua |Mines of the }|(U. S.) in 1917
| +company }|
|Total French | |
| | |
| French properties’ | |
| reserves | |
-------+---------------------------+--------------+------------------
Belgium| Catemo |Mines of the |Refined by
| Reserves |company |Balbach, 1917.
| | |
Germany| Gatico smelter |Custom ore |Tributary to rich
| |and mines |mining district.
| |controlled. |
| | |
| Guayacan smelter | |Formerly shipped
| | |matte to England.
| | |
Chile | 6 mines with smelters |Locally owned |Shipped to big
| |mines |smelters or
| | |exported.
| | |
| Great numbers of mines |Locally owned |Shipped to big
| |mines |smelters or
| | |exported.
| | |
|GRAND TOTAL | |
| | |
| Expected output 1918-1919| |
| | |
| | |
-------+---------------------------+--------------+------------------

TABLE 43.--OUTPUT, RESERVES, AND LIFE OF THREE AMERICAN-OWNED COPPER MINES IN CHILE

The Caldera and Carrizal custom smelters of the American Smelting & Refining Co. treat ores shipped from various smaller mines. The Carrizal plant has been closed. Two chief properties are tributary to this plant,--the Carrizal Alto and the Astilla mines. A large number of properties are tributary to the Caldera plant, among them: Dulcinea, Flamenco, Morado, San Juan, El Gallo, etc. Throughout northern Chile there are a great many small copper mines. From the Braden property east of Valparaiso to the Chili Copper Co., southeast of Iquique, the entire country seems to be unusually rich in copper.

There are five important Chilean mines controlled by _French or British capital_. See Table 42. All are vein mines with no considerable tonnage of developed ore reserves, and the combined output is nearly 50,000,000 pounds of copper a year (a considerable part being from custom ore shipped by small mines) in the form of blister or matte. This production is normally shipped to France or England.

The American Metal Co. and L. Vogelstein, representing _German capital_, are believed to control, through selling and refining, much of the output of the French, British and Belgian mines. These concerns also own custom smelters in Chile and probably have interests in many mining properties there. The big business in Chilean ores shipped into the United States is done by these concerns, although the American Smelting, Refining & Mining Co. is also an important factor. These ores come from many small mines, although there are a few important ore shippers, one of which is British owned. Most of the mines are ostensibly Chilean owned, but much of the financing, marketing of products, etc., is done by American houses with German affiliations.

It seems that Chile may soon become the second largest copper producer of the world. American capital has led in the development of the Chilean deposits, as American interests have discovered and furnished funds for the equipment of the two leading producers, and the third most important ore body is American owned. This is the more remarkable in light of the fact that American capital has so far been conspicuous by its absence in the development of the other important industries of Chile. Were it not for the present difficulties of building up plant facilities, due to shipping shortage, high cost of equipment, etc., the American-owned copper mines would today be still larger producers than they are. However, American capital now completely controls about seven-eighths of the total output. Substantially all the copper produced in Chile is shipped to the United States. The Chili Copper Co. produces in Chile a refined electrolytic copper, and this is the only finished refined copper produced in South America. Braden can produce a grade of copper that does not compete with electrolytic but is refined enough to go directly to the consumer.

PERU

Peru is one of the important copper-producing countries of the world. The chief mines are at extreme altitudes, however, and their character and location is such as to indicate that production will probably remain stationary or at least not show any important increases in the next few years. There are two important districts: Cerro de Pasco (elevation, 14,300 feet) and Morococha (elevation 13,700 feet).

The chief mines of these districts are now controlled by American capital and may be classed with group 2 of Table 38. The Morococha district was formerly English controlled, but the majority interests have lately been acquired by the Cerro de Pasco Copper Co. (American). The ores in both districts are exceedingly rich and the properties are well fortified with reserves. Developed reserves are adequate to insure four years’ production, and everything indicates that the mines are working extensive and persistent ore deposits. Blister copper is shipped to the American Smelting & Refining Co. in New York for treatment and marketing. Both mines have fully equipped plants, including smelters.

At the plant of Backus & Johnson Co., Morococha, some custom ore and matte from locally owned mines is treated. Among these mines are those of J. Galliver, producing 600 tons matte a year. Backus & Johnson also have a smelter and mines in the Casapalca district. The Sayapullo Syndicate (English) is working the Sayapullo mine under option from the Peruvian owners. Some of this matte is shipped to the Casapalca smelter, and the rest is exported to the United States. The output so far is small; at present 800 tons per year.

Certain small companies ship ores to the United States: from these the copper content amounted to about 4,000,000 pounds in 1917. This goes (1919) chiefly to the American Metal Co. and L. Vogelstein for refining and selling. This ore comes from Salaverry and Trujillo (Casapalca district), Mollendo (southern district, including Ferrobamba, see below), and Callao. All the blister copper is shipped from Callao except small amounts shipped by Backus & Johnson from the Casapalca district. An American company has developed a large body of low-grade ore at Ferrobamba (Cotobamba Province), southern Peru. The property is inaccessible and no work is now being done.

The following résumé gives some of the salient facts concerning the Peruvian copper producers:

TABLE 44.--PRODUCTION OF COPPER IN PERU IN 1918

----------------+--------------+---------+--------------+-------------
| |Developed| |
| Output | Reserves| Product | Control
----------------+--------------+---------+--------------+-------------
Cerro de Pasco | 72,000,000(-)| 4 years |Blister Copper|United States
Backus & Johnson| 28,000,000(-)| 4 years | Do | Do
Huaron (new) | 5,000,000(?)| 4 years | Do |French
Ore shippers | 5,000,000 | ? |Ore |Local
+--------------+ | |
|110,000,000 | | |
----------------+--------------+---------+--------------+-------------

BOLIVIA

There is one important copper producing locality in Bolivia--Coro Coro, central Bolivia (elevation 12,000 feet). Beds of sandstone carry native copper and veins of sulphides. The mines are owned by French capital. There is no smelter, but concentrates running up to 85 per cent. copper are exported to France for treatment. Production is about 12,000,000 pounds annually. Reserves are large, but the almost inaccessible location of the mines has retarded development. Recently, there has been more activity, a flotation concentrator having been installed.

Some of the Bolivian tin and silver mines produce small amounts of copper, but outside of Coro Coro total copper production is insignificant.

VENEZUELA

The Aroa Mines, an English syndicate, owns a copper mine and smelter producing low-grade matte. The property is located along the railroad which terminates at the port of Tucacas. In 1917 the output was 3,500,000 pounds. The product was shipped to the United States and refined and sold there by L. Vogelstein & Co.

ARGENTINA

There are some copper prospects in the extreme western portion of the country, which are really extensions from the Chilean copper-producing areas. One company, Famatina, Ltd., is an English concern which has had an unfortunate career. The company operates the only copper smelter in Argentina, a small affair that mines irregularly. At last accounts a few hundred tons of blister copper was the annual output; this has always been shipped to England, but recently attempts have been made to ship to New York. This blister is exceedingly rich in silver (6 per cent. silver).

AFRICA

Africa is a copper producer of growing importance, almost entirely because of the development of one group of deposits (Katanga), which overshadows all others to such an extent that the African situation is almost completely described by a discussion of the properties of the Tanganyika Concession, Ltd. The mines of this company yield now three-quarters of the copper production of Africa, and their importance in the future will be still greater.

The copper production of Africa comes from south of the Equator and from six general districts, as follows:

TABLE 45.--COPPER PRODUCTION OF AFRICA

(Production, pounds of fine copper)

-----+---------------------+------------+------------+
| | | |
| | | 1918-1919, |
Dis-| Province and chief | | estimated |
trict| mines | 1917 output| output |
-----+---------------------+------------+------------+
1. |_Congo_: Katanga[121]| 60,000,000 | 80,000,000 |
|Bwan M’Kubwa | 4,000,000?| 3,000,000 |
2. |_Transvaal_: Messina | 14,000,000 | 12,000,000 |
3. |_Rhodesia_: Falcon | 7,000,000 | 7,000,000 |
4. |_Cape Colony_: | | |
|Cape Copper-Namaqua | 7,000,000 | 6,000,000 |
5. |Former _German | | |
|Southwest-Africa_: | | |
|Tsumeb (Otavi) | 10,000,000?| 15,000,000?|
| | [122] | |
| | | |
| | | |
|Khan, etc. | 2,000,000 | 4,000,000?|
6. |_Miscellaneous | | |
|northern Africa_ | | |
|not specified | 1,000,000?| 1,000,000?|
| +------------+------------+
|Total |105,000,000 |128,000,000 |
| | | |
-----+---------------------+------------+------------+

[121] Kanshanshi included in Katanga.

[122] Basis 1914. Present political conditions govern extent of work.
Shipped 1,000,000 pounds copper in ore to United States in 1917.

In District 1, the _Katanga_ district, which includes the Belgian Congo and adjacent territory, the Union Minière du Haut Katanga has acquired from the Belgian Special Committee the ownership of all of the Katanga copper belt but not the Kanshanshi deposit in Rhodesia. Equal, but not the entire, share interests of this company are owned by the Tanganyika Concessions, Ltd., and the Katanga (Belgian) Special Committee. The Lubumbashi smelter of U. M. du Haut Katanga, at Elisabethville, close to the Rhodesian boundary, has seven blast furnaces with a daily capacity of 2,000 tons. The ore treated runs 15 per cent. copper, and yields 96 per cent. blister copper. The past production is as follows: 1911, 996 tons blister copper; 1912, 2,492 tons; 1913, 7,407 tons; 1914, 10,722 tons; 1915, 14,190 tons; 1916, 22,165 tons; 1917, 30,000 tons. This copper is shipped to England, and is consumed there and in France after further refining. There is very little gold and silver in the copper, so it goes to market largely as refined, best selected and tough copper.

Tanganyika Concessions, Ltd., owns concessions in northern Rhodesia containing the Kanshanshi mine (a deposit similar to those in Katanga) owned by a subsidiary railroad company, 70 per cent. of which is owned by Tanganyika Concessions, Ltd. A small blast furnace there is producing. The actual railroad connection with Katanga is north from Rhodesia and thence to the eastern coast of Africa. An uncompleted line from the West Coast is planned to connect these mineral deposits with Lobito Bay (Benguella By. Co.). The Portuguese government has a small interest in certain railway lines in its territory. It seems that the English group, (R. Williams, who was an associate of Cecil Rhodes, T. White and others) with the Belgian Special Committee, control the entire group; but a considerable interest has been sold to the public, mainly British and Belgian investors.

The Bwan M’Kubwa mine farther south on the Rhodesia railroad is a deposit of the same general character. This is owned by British capital, two of the Rhodesian development companies holding a large block of the stock.

Ore bodies are found in Katanga over a district extending 250 miles east-west and 50 miles north-south, and also at scattered localities in Rhodesia. Malachite chiefly and other oxidized ores impregnate certain sediments and constitute the ore bodies, which are very rich (10 to 15 per cent. copper). At Luushia sulphides (3 per cent. copper as chalcopyrite) occur beneath the oxidized ore. Cobalt is common; there is some nickel but not much gold and silver. The developed reserves of the mines of Katanga are estimated at 40,000,000 tons of 8 per cent. copper ore above water level, equal to 100 years’ production at the present rate of output; of the Bwan M’Kubwa mine in Rhodesia at 3,000,000 tons of 4 per cent. ore, besides ore of lesser grade. The reserves of the Kanshanshi mine, in Rhodesia, are not included in the estimates.

In District 2, near the Rhodesian boundary, is the Messina mine, the only copper producer of the _Transvaal_. Along veins in very old gneissic rocks occur shoots and lenses of chalcocite and enargite with some oxide. A little matte is made at the mine but the chief product is concentrates (45 to 50 per cent. copper), all of which were shipped to England. Lately they have been in part sent to the United States. The production was about 14,000,000 pounds in 1915 and the same in 1916. Reserves of 208,000 tons of 5 per cent. ore are reported developed, or not much over one year’s supply. The company is strictly English.

In District 3, the Falcon mines in _Central Rhodesia_ belong to an English company which is treating copper-gold ore occurring in old schists. The production was about 7,000,000 pounds in 1916. The ore carries 2 per cent. copper, $5 in gold, and the reserves are stated at 862,000 tons of this grade, or about four years’ supply.

In the _French Congo_, just north of the mouth of Congo River, is a belt of copper deposits 60 miles long, which have been worked for centuries by the natives. Diabase rocks occur in this vicinity. The output is very small.

District 4, _Cape Colony_, is the oldest important copper producer of modern Africa, but its chief deposits, worked since 1852, are nearly exhausted. The Cape Copper Co. and Namaqua Copper Co. are south of the Orange River in a district 90 miles by rail from a port on the West Coast. The ore is bornite and chalcopyrite, in irregular lenses; the reserves are equivalent to only two years of production. Each mine has a mill and smelter. Further refining is done at the Briton Ferry smelter of the Cape Copper Co. in Wales, which has a capacity of 12,000 tons per year of refined copper and electrolytic copper. All these companies, including the railroad, are entirely British. Cape Colony copper production is dependent on this one district, from which the 1917 output was 6,000,000 to 7,000,000 pounds.

In District 5, the former colony of _German Southwest Africa_, copper deposits are numerous, and next to diamond mining the production of copper is the most important industry of the province. The main deposit is the Tsumeb in the northeast part of the country, where solid sulphides of lead and copper occur in dolomite. Fifty thousand tons of ore carrying 13 per cent. copper and 40 per cent. lead was shipped in 1917. There is a smelter here and the mine has rail connection. The company working these deposits was the Otavi Minen und Eisenbahn, but through the Southwest Africa Co. the English had an interest in the property. The English now have control. The Khan mine, second in importance to Tsumeb, is working a pegmatite vein in schist. In 1914 a mill treating 50 tons a day was shipping 60 to 70 per cent. concentrates to Europe. The ores are chalcopyrite and chalcocite.

In District 6, _northern Africa_, there are some deposits of copper in Algeria, Egypt, and Morocco. They are not of importance at present. De Launay describes them as chiefly veins in rocks of much younger age than the important deposits of Africa which lie south of the Equator.

Matte and blister produced in Africa are normally treated at small English plants or at the Briton Ferry smelter, Wales, which is a plant of some size.

The general economic situation as regards African copper ores in 1917 is shown in the table.

TABLE 46.--PRODUCTION AND SHIPMENTS OF COPPER FROM AFRICA IN 1917

Considerable of this copper goes to the United States. In 1917, as shown below, the total amount of copper received in this country was 7.5 per cent. of the total African production.

TABLE 47.--SHIPMENTS TO THE UNITED STATES IN 1917

-----------------------+---------------------------+-------+---------
| | Ship- | Copper
| | ments | content
| Grade Shipped | (tons)|(pounds)
-----------------------+---------------------------+-------+---------
Otavi to New York |Ore (12 per cent.) | 3,900 |1,048,000
Messina to New York |Ore (45 per cent.) | 703 | 715,000
Do |Matte (45 per cent.) | 306 | 310,000
Cape Copper to New York|Concentrates (55 per cent.)| 375 | 460,000
| +-------+---------
| | 5,284 |2,533,000
Katanga |Blister | ... |5,437,000
| | +---------
Total | | |8,000,000
-----------------------+---------------------------+-------+---------

AUSTRALASIA

Copper production in Australasia is not now increasing. In recent years the production (metric tons) has been as follows:

1912 1913 1914 1915 1916 1917
16,600 22,900 37,592 32,512 35,000 38,100

Formerly German metal buying and refining companies controlled the Australian copper output (as that of lead and zinc) by virtue of refining and selling contracts. Hence the year 1914 brought disorganization to Australian mining. War-profits taxation on Australian mines has been severe; and government aid, formerly granted, has been largely withdrawn. Lack of labor, inability of new properties to obtain railroad connections, and absence of government encouragement to prospecting, have retarded the copper industry since August, 1914. Aside from former German control based on selling and refining contracts, all Australian copper mining is and has been under British control. The properties are owned by British and Australian capital and present refining and selling arrangements will prevent the German metal companies from again getting any foothold in the field. All former contracts with German agencies were abrogated. The government took this phase of the matter in hand, and one step was to purchase the entire production of Australia for the first half of 1918 at £106 to £108 per ton.

The Australian copper situation in 1917 is exhibited in the table following:

TABLE 48.--PRODUCTION OF COPPER AND REFINING PLANTS IN AUSTRALIA IN 1917

[123] Ores mined are primary, consisting of chalcopyrite and
chalcocite. Secondarily enriched ores near the surface have been
entirely mined out.

As stated, the ownership of these mines is strictly British, and at present the refining and marketing is now British instead of German. Two refineries, both recently enlarged and improved, now have a capacity of over 60,000 tons a year, which is well in excess of the present output of the country. Towards the end of 1917, the Copper Producers’ Association Proprietary, Ltd., was formed in Australia for the purpose of selling and shipping copper on a co-operative basis. All copper producers were invited to join. Wallaroo & Moonta, Mount Morgan, Mount Lyell and the Cloncurry mines are members of this association, as is the Electrolytic Refining & Smelting Co., which treats the ores of these mines. The company markets its products in England and Australia. Its chief brands are E. S. A. (electrolytic) and E. S.A.F.R. (fire refined). These brands are also sold by Elder Smith & Co., Ltd., of London and Australia, which has had a financial interest in the Wallaroo & Moonta Co. since the early days, and has financed and marketed the copper production of this company since 1915.

Metals Products, Ltd., has recently been formed, with works at Port Kembla producing copper wire, brass goods, etc. Importation of copper and brass products into Australia should entirely disappear if the plans of the Australian government and copper producers do not miscarry.

The oldest mine and one of the two leading mines in Australasia is the Wallaroo & Moonta, in _South Australia_. This deposit occurs in a pre-Cambrian complex, intersected by pegmatitic dikes. Ore reserves are believed to be ample: say five years’ supply of developed ore. In recent years, production has been very steady at about 7,000 tons per year of refined copper. This is the only important copper deposit of pre-Cambrian age in Australia.

The other leading mine in Australia is Mount Morgan, in _Queensland_, which until 1910 was one of the largest gold mines in the world. The gold was in the oxidized top of a large low-grade copper deposit, which is now being mined from open cuts. Primary chalcocite, chalcopyrite and pyrite with quartz constitutes the ore deposit. The ore runs 2¹⁄₂ per cent. copper and is concentrated up to 7 per cent. The reserves exceed 4,000,000 tons of 2¹⁄₂ per cent. copper, or 10 years’ supply.

The Cloncurry district is a large area, 200 by 40 miles in extent, containing several copper deposits, which occur in schist and are mainly small bonanzas. The future of this district seems very promising. The chief mines are Hampden Cloncurry, Mount Elliott, Mount Cuthbert; and the developed ore reserves insure five years’ production. The Hampden Cloncurry mine has 300,000 tons of 7 per cent. ore in reserve, a smelter producing blister copper, and railroad connections. The district is hampered by bad climate, etc., and especially by labor conditions. Recent government rulings (1918), as to very short hours of labor and higher wages, are reducing outputs. The Mount Elliott mine, which has a 300,000-ton deposit of 10 per cent. ore, is now (1919) idle because of labor conditions. The Mount Cuthbert mine, which completed a new smelter in 1917, has reserves of 150,000 tons of 6¹⁄₂ per cent. copper, and railroad connections.

The Mount Lyell mine, in _Tasmania_, is an old and steady producer. One class of ore runs 0.5 per cent. of copper and 1.25 ounces silver; the other contains 6 per cent. copper ore, with the same amount of silver. This is a disseminated deposit in schist, near a conglomerate contact. No igneous rocks are known in the vicinity. The reserves are 2,000,000 tons of low-grade ore and 1,000,000 tons of high grade; insuring the present output for 15 years. Considerable of the ore is mined open cut, and this is one of the lowest grade profitable mines in the world. Ores are smelted direct after being mixed, so that the product going to the furnace runs 2¹⁄₂ per cent. copper.

The Great Cobar mine, in _New South Wales_, works cupriferous pyrite carrying 2 to 2¹⁄₂ per cent. copper. Cobar used to produce 4,000 to 5,000 tons of copper a year. After erecting a 1,200-ton smelter in 1912, the company was placed in the hands of a receiver, April, 1914. The reserves are believed to be large. The other chief mines in New South Wales (the C. S. A., Mount Hope, Nymagee, etc.) produce together about as much as Great Cobar. These mines have smelters, and for the most part were formerly of much greater importance than they are today. Several have no railway connections, and this is an important handicap to New South Wales mines, which once produced twice the present output.

In _West Australia_, there have been developed recently a number of promising deposits of pyritic copper ores. There are no important producers, there being no railways.

The present conditions in Australia, in which labor conditions are most important, and the absence of new railroad construction, have seriously affected the development of the copper industry, but the future seems promising. Several important deposits have proved large and the ore bodies persistent. Much of the country has not been explored and many good showings could be worked and some probably developed into profitable mines if conditions were favorable to new ventures. Just the reverse is the case, however. The Mount Lyell company has been exploring northern Tasmania, and recently found in the mine of the Tasmania Copper Co. about 1,000,000 tons of ore carrying copper, zinc, gold and silver and worth $20 to $30 per ton, gross.

It is believed that Australia will continue to be an important copper producer; probably its importance will increase. Weighted reserves, in terms of ore supply to maintain present output, insure copper production continuing undiminished for 7.2 years. These reserves are well distributed among the various producers.

ASIA

JAPAN

Copper deposits are found over a large part of central Japan. The ores, which occur in Tertiary volcanics, consist of chalcopyrite and pyrite running 2¹⁄₂ to 3¹⁄₂ per cent. copper, and are commonly concentrated before smelting. The gangue is usually quartzose. Lenticular deposits of cupriferous pyrite in Paleozoic schists and sediments occur on the west and the south side of Japan. These mines yield smelting ore carrying about 3¹⁄₂ to 4 per cent., but contain very little silica. Pyritic smelting is extensively practiced. Over one-half the copper production comes from four chief mines: Ashio and Kosaka of the Tertiary type; and Hitachi and Beshi of the Paleozoic schist type.

The state reserves to itself the right of original ownership in all ores, including copper. The right to work them is granted to individuals or companies of Japanese nationality. Copper mining, smelting and refining companies seem to be entirely Japanese in ownership and policy. The number of mines is considerable, but their ownership is concentrated into a few hands and the smelting and refining industry is still more concentrated. Japanese producers sell their own copper, all foreign selling agencies being strictly Japanese. The mines in Japan are not generally worked as joint-stock enterprises, but are mostly family properties inherited by the present owners. A table showing the 1917 copper production of Japan indicates these facts. (See Table 49.)

Because of labor conditions, abundant fuel near the mines and water transportation, Japanese copper production has increased rapidly in recent years. High prices and the adoption of modern methods of mining and smelting have been important contributing factors. There seems no reason to expect that Japan’s production will decrease, but not enough is known of geological conditions to enable one to discuss the future outlook. The only mine whose reserves are known is the Beshi, which has reserves adequate for 100 years of production at the present rate, which is 10 per cent. of the Japanese output. The reserves at other mines are not developed far ahead, but must insure several years of continued production at the present rate.

The production and exports of Japanese copper in recent years are as follows (in terms of metric tons):

----------+------+------+------+------+-------+-------
Year | 1912 | 1913 | 1914 | 1915 | 1916 | 1917
----------+------+------+------+------+-------+-------
Production|63,893|67,697|71,046|76,039|101,467|124,306
Exports |30,000|42,000|45,500|59,500| 62,000| 72,000
----------+------+------+------+------+-------+-------

TABLE 49.--JAPANESE COPPER PRODUCTION

Producing companies and brands of copper marketed. The companies named have selling offices in London and in other foreign consuming centers.

[124] Balance smelted to cathodes and treated electrolytically.

[125] Plant capacity. Evidently not reached in 1917.

Since the high copper prices of 1916 there was a heavy importation of Chinese copper coins into Japan. In 1917 one concern alone had contracted for 200,000 tons of such coins, which contain about 85 per cent. copper, and the rate of importation at that time would mean 60,000 tons refined copper a year from this secondary source. This development has enabled Japan to make heavy exports of copper.

The collapse of Russia removed one of Japan’s big copper markets. Japan will probably not be able profitably to produce a large exportable surplus of copper unless the price obtained is fairly high compared to quotations ruling in 1912 to 1914. Under normal conditions Japan will supply her own needs for copper with little or nothing to spare.

KOREA (CHOSEN)

The Seoul Mining Co. (Collbran and Bostwick) is producing from contact deposits, one 50 miles and the other 100 miles from a harbor. This American concern is a dominant trading and banking house in Korea and is working mines formerly operated by Koreans. The copper ores are sulphides between limestone and granite. Five hundred tons of 60 per cent. concentrates were shipped from Chosen to the United States in 1917.

CHINA

The present production of China is 2,000 tons a year, and the chief deposits are in Yunnan Province. A great many localities are reported to show copper ores, mainly cupriferous pyrite in very old schists, or in Permian basalt. The latter deposits are too small for modern methods. In the last hundred years, lack of wood to make charcoal has restricted output to a nominal amount. Small seams of native copper are highly esteemed by the natives. The ores are carefully hand-picked, and the small-scale methods are wasteful.

The Tungschuanfu mine, Yunnan, the chief mine in China, has a yearly output of about 1,000 tons of copper. The district has been worked for hundreds of and probably is very rich. The ores, replacements in limestone and veins in shale, are 8 per cent. copper and the reserves are large. The Yaoki Kansu government smelter is a modern plant with a capacity of four tons of copper a day.

There are several other mines, all controlled by the government. Outside engineers have reported favorably on some of them, but the government closely regulates copper mining in China because it affects currency and government profits on coinage of copper. There are also some copper mines worked with the contact iron deposits of China (formed by contact action of diorite); and deposits of malachite in Triassic sandstone are worked at several points.

INDIA

India is not a copper producer. The Rakha Hills mine of the Cape Copper Co. (see Cape Colony) has 400,000 tons of 4 per cent. copper ore developed and a smelter is being built. India is an enormous copper consumer, and it is surprising she has never been a producer.

EUROPE

Political and commercial control of much of the copper production of Europe is obviously uncertain in the extreme, as are any figures of production for the Central Powers and Russia. (See Table 49.)

SPAIN, PORTUGAL, NORWAY AND SWEDEN

Spain is the oldest and steadiest producer of copper in the world. The chief deposits are controlled by English capital and their developed reserves insure present production for 30 to 60 years. The copper is largely refined to finished form in England and enters the market there under various brands. The Rio Tinto is an enormous deposit worked by open pits.

TABLE 50.--PRODUCTION AND CONTROL OF COPPER IN EUROPE

----------------------------+---------+---------+----------+
| | | |
| |Estimated| +
| Output | output | Estimated|
|1916-1917|1918-1919| output |
Country and chief localities| (metric | (metric | 1918-1919|
in which copper is produced | tons) | tons) | (pounds) |
----------------------------+---------+---------+----------+
Germany | | | |
Mansfeld | 30,000 | 30,000 | ... |
| | | |
Mitterberg, etc. | 10,000 | 10,000 | ... |
Austria-Hungary | 10,000 | 10,000 | ... |
Serbia, Bor, etc. | 10,000 | 10,000 | ... |
Turkey, Aghano, etc. | 10,000 | 10,000 | ... |
Bulgaria and Roumania | 1,000 | 1,000 | ... |
+---------+---------+ |
Total Central Powers | | | |
(est.) | 71,000 | 71,000 | ... |
| | | |
Spain and Portugal[127] | 42,000 | 42,000 | ... |
Mason & Barry | ... | ... | 5,000,000|
Rio Tinto | ... | ... |62,000,000|
Tharsis | ... | ... |12,000,000|
Misc. (United Alkali, | | | |
Huelva, Cordoba, etc.) | ... | ... |11,000,000|
Miscellaneous (Calva, Los | | | |
Guardos, etc.) | ... | ... | 3,000,000|
Russia (See Table 52) | 18,500 | 18,000? | ... |
Norway[128] (Sulitolma 40 | | | |
per cent.) | 19,000 | 19,000 | ... |
Sweden | 1,000 | 1,000 | ... |
Other countries | | | |
Italy | 3,000 | 3,000 | ... |
France | 1,000 | 1,000 | ... |
England | 250 | 250 | ... |
----------------------------+---------+---------+----------+

[126] All companies have foreign stockholders, but dominant
nationality is as indicated.

[127] Export copper to France and England in form of blister, alloys,
cement, pyrite ore and copper ore.

[128] Export copper to England and Sweden chiefly in form of
cupriferous pyrite.

NOTE. Production for 1919 in Germany probably smaller than estimate.

The copper deposits, chiefly massive cupriferous pyrite, in Norway and Sweden, are similar to those of Spain geologically as well as economically. Their commercial value depends not only on their copper content, but on the sulphur and iron recovered. In many cases the sulphur used in sulphuric acid manufacture is of greater money value than the recovered copper. Hence the exported copper from Spain, Portugal and Norway is in several forms: pyrite, matte, ingot copper from Norway and considerable cement copper or precipitates from Spain and Portugal. Pyrite is exported to England, the United States, and perhaps a little to France; the matte, ingot, etc., to various European countries. Sweden imports as well as produces pyrite. France, Italy and Russia produce considerable pyrite and before the war France exported pyrite. Under normal conditions, the copper in all this pyrite is shipped back and forth over Europe and can hardly be traced. The table shows the location of raw materials but not the place where marketable copper is produced. The chief imports and exports of pyrite are normally as follows:

TABLE 51.--NORMAL EXPORTS AND IMPORTS OF PYRITE FOR CERTAIN EUROPEAN COUNTRIES

GERMANY

Under existing conditions the present output of Germany can not be closely estimated. The figures in Table 49 are guesses based on the information available. The Mansfeld deposits are clearly the most important, and as they are in shales that extend over a large area, the reserves must be considered large. The Mitterberg mine, owned by the Krupps, had a pre-war output of only 1,000 tons yearly. Several copper deposits in the Austrian Tyrol had a pre-war output of 1,000 tons annually.

The chief source of copper in Germany during the war, however, must have been from conversion of articles containing copper which were in use before the war. It is doubtful if 10 per cent. of the yearly copper production of peace times was destroyed in use. Consequently, in all countries there is normally a big store of copper in the form of wire, brass, machine parts, etc. This is what Germany used during the war, and its replacement is essential to her industrial success in peace.

RUSSIA

The copper production of Russia was rapidly increasing before the war and reached a maximum in 1913. The ownership of the mines and refineries was largely English but in part French. Enough development had been done to indicate that Russia will probably be a large producer of copper when consistent industrial progress is possible. In 1918 the mines had been seized by workmen and operations were nearly or entirely suspended. The copper districts are all in the Urals, the Caucasus or Siberia. The Russian copper production (in long tons) has been as follows:

1905 1910 1913 1914 1915 1916 1917
8,700 22,310 33,794 31,435 25,472 20,557 15,700
(34,911) (27,295)

TABLE 52.--COPPER PRODUCTION AND ORE RESERVES OF RUSSIA

(All figures long tons)

----------------+---------------+-------+------+------+---------+
| | Orig- | | 1915 | |
| | inal | | pro- | |
| |invest-| 1913 | duc- | Ore |
| | ments | pro- |tion, | reserves|
| | made | duc- |(esti-| (devel- |
District | Company | by: | tion |mated)| oped) |
----------------+---------------+-------+------+------+---------+
Urals |Kyshtim |British| 7,000| 7,600|3,150,000|
Do |Bogoslovsk | Do | 4,300| 4,100| ... |
| | | | | |
Do |Sissert | Do | 1,100| 1,500|5,000,000|
Do |Tanalyk | Do | 600| 600| 126,000|
| | | | | |
| | | | | |
Do |Verch-Isselz |Russian| 3,000| 2,500| large |
| | | | |reserves |
Do |Nishni Tagilsh | | | | |
|(Demidov) | Do | 2,000| 1,500| |
| | +------+------+ |
Urals total | | |18,000|17,800| |
----------------+---------------+-------+------+------+---------+
Caucasus |Caucasus Copper| | | | |
|Co. |British| 5,500| 3,000|3,600,000|
Do |Allah Verde |French | 2,000| 700| ... |
| | | | | |
Do |Siemens Co. |Russian| 1,500| 800| ... |
| | | | | |
| | +------+------+ |
Caucasus total| | | 9,000| 4,500| |
----------------+---------------+-------+------+------+---------+
Siberia |Spassky |British| 4,756| 3,450| 543,000|
Do |Miscellaneous | Do | | 734| ... |
| | | | | |
Do |Irkysh (Ridder)| Do | (New)| ... |2,300,000|
| | | | | |
Do |Russian Mining | | | | |
|Co. | Do | 410 | ... | 500,000|
Do |Alexeieff Co. | Do | 377 | ... | |
Do |Russo-Asiatic | | | | |
|Corporation | Do | | | |
| | +------+------+ |
Siberia total | | | 5,553| 4,184| |
----------------+---------------+-------+------+------+---------+
Russian chemical| | | | | |
works | | | 1,358| 811| |
| | +------+------+ |
Grand total | | | | | |
Russia| | | |34,911|27,295| |

Russian reserves insure maintenance of 1913 maximum output
for at least 15 years

Copper refineries Capacity per year.
Electrolytic Kyshtim 10,000
Electrolytic Bogoslov 6,000
Best selected (refined) Caucasus Copper Co. 10,000
------
Total 26,000
----------------------------------------------------------------------

Russia has always been in large part dependent on foreign copper and there was a tariff premium on domestic production. It is likely that ultimately Russia may more nearly be self-supporting as regards copper requirements, even if consumption increases greatly. Table 52 shows the important developed properties, their production in 1913 (maximum) and in 1915 (estimated), their developed ore reserves, and the nationality of original capital that made the developments possible.

SUMMARY

Copper, the red metal, is surpassed only by gold and silver in malleability and by silver alone in electrical conductivity. Next to iron it is industrially the most important of all metals, as its value per pound is much greater than that of lead or zinc, and the world requires and consumes much greater quantities of copper, lead, and zinc than of any other non-ferrous metals.

The uses of copper are many, but the electrical industry is the largest consumer. Brass, bronze, and other copper alloys are second in importance. A considerable quantity of copper sheets, tubes and other wares are used outside of the electrical industry. Copper is used in coinage, and in China it is the money standard of the working population.

The United States, producing a major part of the world’s copper, has also been responsible for financing and developing more successful copper mines abroad than any other country. Success has been facilitated by the presence in the Western Hemisphere of the world’s chief copper deposits and also by the advances in mining, milling and metallurgy that have been in great measure the work of United States engineers. England and Japan control considerable copper production, but it is small compared to that controlled by the United States.

In the consumption of copper Germany is a big factor. Because of this fact, German interests and international metal houses have in the past secured a considerable control over copper supplies through refining and selling contracts with mining companies. Such control is based entirely on refining and selling companies and does not extend to ownership of producing mines, and only to a small degree to ownership of smelters.

Chile, Mexico, Canada, and the Belgian Congo should become of increasing importance as copper producers not only because of known reserves but, in the case of Canada and Mexico particularly, because of the likelihood of new and important discoveries. The position of the United States, including Alaska, should be maintained as at present, neither gaining nor losing as compared to the rest of the world.

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Political and commercial geology and the world's mineral resourcesChapter XX: Introduction (2)

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