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Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617A001600060001-7 fWR;VIM pU fit..E:G(Ol, 7R ifl:OS ir4.w~.+t ~i ^ t a - - .. r Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 This document contains information affecting the na- tional defense of the United States within the meaning of the Espionage Act, 50 U.S.C., 31 and 32, as amended. Its transmission or the revelation of its contents in any manner to an unauthorized person is prohibited by law. Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 1. This copy of this publication is for the information and use of the recipient designated on the front cover and of individuals under the jurisdiction of the recipient's office who require the information for the performance of their official duties. Further dissemination elsewhere in the department to other offices which require the informa- tion for the performance of official duties may be authorized by the following: a. Special Assistant to the Secretary of State for Research and Intelligence, for the Department of State b. Director of Intelligence, GS, USA, for the Department of the Army c. Chief, Naval Intelligence, for the Department of the Navy d. Director of Intelligence, USAF, for the Department of the Air Force e. Director of Security and Intelligence, AEC, for the Atomic Energy Com- mission 16 0 f. Deputy Director for Intelligence, Joint Staff, for the Joint Staff g. Assistant Director for Collection and Dissemination, CIA, for any other Department or Agency 2. This copy may be either retained or destroyed by burning in accordance with applicable security regulations, or returned to the Central Intelligence Agency by arrangement with the Office of Collection and Dissemination, CIA. DISTRIBUTION : Office of the President National Security Council National Security Resources Board Department of State Office of Secretary of Defense Department of the Army Department of the Navy Department of the Air Force Document No. 0 0 I O.CHANGE in Class. F1 , DECLASSIFIED ass. CHANGED TO: TS S C 1 DDA Memo, 4 Apr 77 Auth: DDA.RF,S 77/1763 Date: State-Army-Navy-Air Force Coordinating Committee Joint Chiefs of Staff Atomic Energy Commission Research and Development Board Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 Published February 1949 CONFIDENTIAL 0 0 SR-28 A SURVEY OF THE WORLD MERCURY SITUATION TABLE OF CONTENTS SUMMARY WORLD PRODUCTION AND RESERVES ECONOMICS OF MERCURY PRODUCTION USES SUBSTITUTES THE MERCURY CARTEL PRICES TARIFFS THE UNITED STATES Production, Consumption, Foreign Trade and Deposits Present Situation and Future Outlook Emergency Supply and Demand SPAIN ITALY MEXICO CANADA PERU . CHILE UNION OF SOUTH AFRICA . ALGERIA . GERMANY CZECHOSLOVAKIA YUGOSLAVIA TURKEY . CHINA . JAPAN USSR . 7 8 9 10 12 14 16 17 18 18 19 19 19 20 20 21 21 22 23 r 1-Estimated Measured and Indicated Reserves of Mercury by Countries 2 2-United States Tariff on Mercury 7 3-United States Imports for Consumption by Countries of Origin, 1937-1947 11 4-United States Exports of Mercury, 1937-1947 12 5-Mercury Produced In, Imported Into, and Exported From Germany, 1935-44 (In Flasks of 76 Pounds) Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 6-Statistical Summary of the Japanese Mercury Industry 23 7-World Production of Mercury 1938-1947, by Countries (In Flasks of 76 Pounds) 25 8-Statistical Summary of the Mercury Industry in the United States, 1938-47 (In Flasks of 76 Pounds) . 26 9-Mercury Consumed in the United States, 1937, 1942-47, (In Flasks of 76 Pounds) 27 10-Estimated Mercury Reserves of the United States, Including Alaska as of January 1944 (In Flasks of 76 Pounds) . 28 CHARTS-Mercury Mines of the World. 0 0 ? Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 0 0 0 A SURVEY OF THE WORLD MERCURY SITUATION SUMMARY The present US stockpile of 173,519 flasks of mercury is adequate to assure almost a three years' supply at the maximum annual consumption of World War II. In another war, however, the US might consume this supply in two years. The 190 US high-cost mines, closed down in the face of present low prices, provide a sizable strate- gic reserve but the ore is low grade. In an emergency, if the US guaranteed high prices to producers in the Western Hemisphere, production could be increased substantially as it was during World War II. The USSR, Czechoslovakia, and Yugoslavia have sufficient supplies for peacetime requirements. In the event of war a stockpile would be needed to meet sudden increases in consumption, and to insure a constant flow to consumers if faced with transport diffi- culties. It is doubtful if the USSR has a large stockpile; it probably counts on stocks being captured in Spain and Italy if a war should occur. As of August 1948, the com- bined stocks in Spain and Italy amounted to about 175,000 flasks. Italy and Spain are the principal world sources of mercury. In normal years they produce seventy to eighty percent of the world's supply. The only other producers of consequence are the US, the USSR, and Mexico. During the war, the US stimulated the production of mercury. High prices and government assistance caused US production to triple from the year 1939 to 1943; through purchase contracts negotiated by the US, the output of mercury in Mexico, Canada, Chile, and Peru was also increased. At the end of the war, world consumption fell to its lowest level in several decades. A drop in US consumption, immobilization of Germany and Japan, and large world stocks, deprived Spain and Italy of markets for most of their production. Heavy pur- chasing, principally by US firms, during the first half of 1948 reduced Spain's stocks considerably. The future will undoubtedly see a marked increase in the peacetime consumption of mercury. In the US, the new dry cell has provided the largest use. It may eventually have a profound effect on world-wide consumption. The future use of mercury in atomic power plants and other related fields may greatly increase its consumption. Scientific and military uses make mercury a mineral of great strategic importance. Fortunately the US has more than fulfilled its present stockpile objective. Even so, limited government purchases might be thought advisable because of the present low price ($75 a flask). The present price is low and an increase may be expected because of unexpected heavy purchasing by the United Kingdom and large private purchases in Note: The intelligence organizations of the Departments of State, Navy, and the Air Force have concurred in this report; the Intelligence Division, Department of the Army, had no com- ment. The information herein is as of November 1948. Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617A001600060001-7 CONFIDENTIAL the United States. In a future emergency the price might go even higher than it did in 1943, and would necessitate the use of mine labor which could be used for other strategic minerals in short supply. Purchases made now at $56 ($75 less $19 import duty) would also reduce stocks in Italy and Spain which otherwise might fall into the hands of the Soviets. 0 0 0 Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617A001600060001-7 Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 CONFIDENTIAL A SURVEY OF THE WORLD MERCURY SITUATION WORLD PRODUCTION AND RESERVES Spain and Italy normally produce more than seventy percent of the world's supply of mercury. The US accounts for fifteen percent, and Mexico, the USSR, and China all but a small amount of the remainder. World production in 1938 totalled about 150,000 flasks. Italy mined 66,752 flasks and Spain 41,409 whereas in earlier years Spain had accounted for about sixty percent of the combined output of the two coun- tries. The US produced 17,991, Mexico 8,519, and the USSR an estimated 8,700 flasks. Under the impetus of military demands for mercury and consequent rises in the outputs of Spain and Italy, a World War II high was reached in 1941, when the world output reached 275,000 flasks. Italy's output that year reached a peak of 94,160 flasks and Spain, 86,473 flasks. Countries in the Western Hemisphere, however, did not achieve maximum outputs until 1942 and 1943. Axis control of the main sources of mercury prompted intensive effort on the part of US authorities to encourage output in the Western Hemisphere by means of government contracts. These, coupled with high market prices, were responsible for the excellent production records of the US, Mexico, and Canada. The US mined 51,929 flasks in 1943 and achieved its highest annual output since 1872. Mexico produced a high of 32,443 flasks in 1942; Canada's output was increased from six flasks in 1939 to 22,240 flasks in 1943. Consumption dropped when the war ended and world production decreased to 131,000 flasks in 1945. The large surplus of mercury accumulated during the war depressed the 1947-48 prices to the lowest levels in more than ten years. Canada has stopped operations entirely and the major producers in other countries are operating at an annual rate of approximately half their World War II peak years. The principal world mercury deposits are those of Almaden in Spain, those of the Monte Amiata district in Italy, and in the Western Hemisphere the zone of late volcanics bordering the Pacific Ocean. Most deposits are roughly veinlike in form, irregular in size, shape, and grade, and rarely extend more than a few hundred feet in depth, although a few have been explored to more than 2,000 feet. The individual ore bodies are usually small. The average grade of ore in the Western Hemisphere averages from .25 to .65 percent compared with 1.4 percent for the large deposits in Italy and six percent for large deposits of Almaden in Spain. In few cases are reserves "blocked out" for more than a few years operations although the tonnage of indicated and inferred ore may be large. In the US the work of prospectors and producers in searching for and developing mercury deposits has been supplemented by the efforts of the Geological Survey and the Bureau of Mines. This cooperation stimulated the industry considerably during World War II and added large tonnages of mercury to domestic reserves. High prices stimulated exploration ? for ore and development of mines in all countries outside Spain and Italy, while the capture by German armies of the main source in the USSR, the Nikitoka mines, neces- sitated exploitation of several new deposits in that country. Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 CONFIDENTIAL The chances of substantially increasing reserves and developing new mines in Spain, Italy, Canada, the USSR, and China appears to be very good. It is true that in the US and Mexico the most- promising ground has been well prospected, but it is not exhausted and more ore bodies will be found in known districts. The relative shallow depth, irregular shape, and erratic grade of most of the world's mercury deposits, coupled with the possibility of fluctuating prices and their influence on ore-volume .determination, complicate the estimating of reserves. Much of what was considered ore last year is now submarginal at the lower prices now in effect and, therefore, is not commercial ore and could not be called reserves. In the following table practically all of the reserves of Spain, Italy, and possibly Yugoslavia, are commercial whereas all but a few thousand flasks of the total of the remaining countries would be submarginal at present market prices. The US figure includes all mercury that could be mined at prices up to $200 a flask. TABLE 1-ESTIMATED MEASURED AND INDICATED RESERVES OF MERCURY BY COUNTRIES COUNTRY RESERVES (IN FLASKS) Canada 42,000 Chile 8,000 China 25,0001 Italy 800,000 Mexico 83,0001 Peru 8,000 Spain 1,000,000 UNITED STATES 228,200 Union of South Africa ...... USSR 100,000 Yugoslavia 80,000 In general the production of mercury does not necessitate a large capital invest- ment for development and equipment. Mercury mines are numerous but most of them are small in size, allowing production to respond rapidly to demand and reduction of output or cessation of activities to follow closely any decrease in sales. Total world production in terms of dollar value is small when compared to copper, lead or zinc, but the importance of mercury is its use in varied and numerous products essential to civilian and military requirements. Because of the grade and size of their deposits, Spain and Italy could readily supply all world requirements if they were unhampered by tariff or cartel restrictions. Ingenuity and efficiency in the US have permitted the mining and treatment of a grade of ore lower than that which can be profitably mined in any other country. In Spain recovery methods at Almaden have persisted, with only minor changes, for over 0 0 Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 CONFIDENTIAL 0 400 years. Labor is wastefully used in Spain and yet costs in Spain in 1937 were about $12.50 a flask while only a few US producers could mine for less than $60. The Siele mine in Italy which was worked on an efficient basis in prewar years had an average cost in 1937 of $3.37 a flask with the average grade of ore 4.75 percent. In recent years inflation and the employment of too large a labor force, have affected Spain and Italy with consequent rises in production costs. Mining at Almaden is continuing with no regard for economy or modern mining methods. The Italian mines are com- pelled to retain a large labor force regardless of curtailment of production due to the world mercury surplus. 0 0 The properties of high specific gravity, fluidity at ordinary temperatures, elec- trical conductivity and the poisonous effect of its compounds create demands for more than 3,000 uses in widely diversified fields. Most of the mercury consumed is in com- pounds; only a third is consumed as metal. All uses require reduction of ore to metal since the compounds are made from metallic mercury. Rarely are significant amounts reclaimed in normal times as with most other metals, although this may be done when the mercury dry-cell is marketed in large quantities. One of the main uses for mercury is in pharmaceuticals where its toxic effect is utilized as an antiseptic; in compounds it inhibits bacterial and parasitic growth. An increasingly important use is in electrical apparatus; in this group the new mercuric oxide dry-cell is the most significant. The mercury dry battery, first produced in the US in 1944, will have a profound effect on world consumption. This new cell will stand up under high humidity and temperatures, will deliver a constant current, has much greater power for its size (nearly five times the ordinary dry-cell), has a long shelf life, and will deliver the same ampere-hours service whether operated continuously or intermittently. Its use has so far been in military equipment (the new variable-time, radio-proximity fuse, "walkie-talkies", and many other signal devices), and in hearing- aids. New uses and more economical methods of production are being developed and large-scale production should result. Other electrical apparatus utilizing important quantities of mercury are mercury-vapor lamps, giving off ultra-violet rays which are used for scientific and medical purposes, fluorescent lights in rectifier tubes, switches and oscillators. Significant amounts of mercury are used in industrial and control instruments such as thermometers, barometers, tank gages, thermostats, flow meters, gas-pressure gages, gas-analysis apparatus, mercury clutches, and in mercury diffusion pumps that produce the vacuum required for making radio tubes. Mercury is used in the electrolytic preparation of chlorine and caustic soda and as a catalyst in making acetic acid, ammonia, and various other organic compounds. It is a process material in the making of gasoline, activated carbons, lithopone, hydro- chloric acid, hydrogen peroxide, and many other chemicals. Other important uses are in fulminate used in detonators and percussion caps, in antifouling paints for ship bottoms, in tracer bullets, and in making several gases used in chemical warfare. Mercury is used in agriculture for sprays and seed dis- Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 CONFIDENTIAL infectants. Dental preparations use large amounts of mercury and small amounts are still consumed in amalgamation of free-milling gold ore which formerly was the largest use. Mercury is used in vermilion and for carroting fur felt for hats. The latter use, however, has declined considerably, for some localities have laws prohibiting the use of mercury in making felt because of the danger of poisoning. Mercury-vapor boilers have been used in a few power generating plants, and experimentation in this field is continuing. There is little incentive toward substitution in normal times. The amount of mercury required for most purposes is small and its use has little, if any, influence on the price of the finished product. The volume of consumption of mercury is, there- fore, little affected by price changes; consumption is rather a function of technical developments in industry, such as in the shift from amalgamation to cyanidation in the recovery of gold from ores, which effected a large decrease in mercury consumption. The liquid condition which makes mercury applicable for many uses in metallic form is not found in other metals and substitution is difficult. Most of the mercury consumed, however, is used in compounds for which substitutes have been found that could be used under emergency conditions. Lead azide and organic initiators, such as diazo-dinitro-phenol can be substituted for mercury fulminate in explosives. In some detonators tetryl and nitromannite are used, decreasing mercury fulminate consump- tion. Copper-oxide, chromates, and plastic paints can be used to protect ship bottoms in place of mercury paints. Porcelain and metal powders can be used instead of mer- cury in many dental preparations. Sulfa-drugs, iodine and other antiseptics, disinfect- ants and purgatives can be used in place of mercury pharmaceutical compounds. In agricultural preparations copper can be substituted for mercury while potassium chlo- rate is replacing mercury for making felt. Other processes can be used instead of those utilizing mercury as a catalyst in making high-octane gasoline, synthetic rubber and many other vital products. Substitutes for most of its uses could probably be developed in an emergency but mercury supplies may be more readily available than the substitutes. Spain and Italy were supplying all but a small percentage of the world's mercury after World War I. Overproduction, accompanied by wide and frequent fluctuations in prices, developed to the detriment of both countries. On 1 October 1928 these produc- ers first established a mercury cartel under the name of Consorzio Mercureo Europeo. The original purpose of the organization was to regulate production and world price, dispose of large accumulated stocks, with all foreign sales to be made by agents of the cartel. The first agreement was for a ten-year term but was renewed for an addi- tional term of ten years. From 1928-1931 Spain's production quota was to be fifty- five percent of the total sales and after that period Spain was to receive sixty percent of the total, with Italy mining the remaining percentage in each case. During the Spanish Civil War and in World War II the outputs of these countries varied from the 0 0 40 Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 0 0 0 quotas originally agreed to by the cartel. The presidency and central office of the cartel were to alternate annually. The first sales agency was set up at Lausanne, Switzerland, for the purpose of marketing to all countries except the British Empire, where the British firm of "Roura & Forgas" was to be the cartel's agent. The Lausanne office did not operate success- fully and was closed down with "Roura & Forgas" becoming exclusive sales agent for all countries except Italy and Spain. The London firm is believed to have guaranteed to market at least 30,000 flasks a year for three years at a specific price. Later agree- ments with "Roura & Forgas" sometimes gave a fixed commission on all sales and, in some instances, a share of the profits on sales above a certain number of flasks. When economic sanctions were imposed on Italy in 1935 because of the Italian invasion of Ethiopia, Spain sold to nations enforcing the embargo while Italian mer- cury was marketed in the US, Germany, and Japan, which were not parties to the sanctions. The cartel was dissolved during the Spanish Civil War because of the Italian aid to General Franco, but was resumed early in 1939 with Spain allotted fifty-five percent and the Italian producers forty-five percent of the cartel's sales. "Roura & Forgas" again became exclusive agents but that firm's contract was terminated on 1 January 1940. Consortium Internationale du Mercure was established in May 1940 to handle sales to the western allies, but the US and UK negotiated directly with the Spanish Government in 1942, and thereafter. Deutsche Metallgesellschaft became the exclusive sales agent for countries occupied by the Axis. After the end of World War II, Mercurio Europeo was again established and agents appointed to represent it all over the world. The cartel recently has been considering appointing a single firm to represent it in world markets, preferably a US concern. According to the present agreement Spain is allocated 61.5 percent of the cartel's sales and is to sell to the US while the Italian producers are allowed 38.5 percent of the total sales. In 1948, however, exports from Spain when compared with those of Italy amount to much more than those allowed by the cartel agreement. Although the cartel no longer restricts production of its members, it influences production in the rest of the world through policies governing the price of its own out- put. Prior to World War II the cartel maintained a fair price for mercury. It readily could have forced all other mines in the world to close down by price-cutting, for Spain and Italy are the world's lowest cost producers. If this had been carried out, con- siderable agitation against the mercury cartel would have been aroused. Therefore, it was beneficial to the cartel's interests to maintain a price which was sufficient to allow a small number of the world's mines to continue to operate. If the cartel were abolished and mercury was sold on a free market, competition between Spain and Italian producers would probably force the price so low in normal years that mines in the rest of the world would not be able to operate. There are two principal centers for marketing mercury-New York and London- with prices conforming closely in prewar and postwar years to that asked by the cartel, Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 C.I.F. these centers. Since there is a US import duty of $19 per flask, the London price in prewar years was much lower than that of New York, but rarely as much as $19 lower. Long term fluctuations in prices, generally, have been governed by supply and demand, resulting from the peacetime industrial uses to which mercury is put. Occa- sionally some part of demand for the metal is attributable to speculative buyers attempt- ing to capitalize on war scares or anticipated new industrial uses. Speculative activity has been responsible in part for unusual price fluctuations. Following World War I, requirements for mercury declined and prices fell accord- ingly. The lowest point in the US domestic price during this period was reached in the depression year of 1921, when the average annual quotation was equivalent to $46.07 per flask. The London price fell to $43.57 in 1921. Since US mines could no longer operate at these levels, aid was granted to them by way of an increased tariff of twenty-five cents a pound ($19 a flask) in 1922. The return to greater industrial activity during the later "twenties", particularly in the US, resulted in steadily rising prices. But this was insufficient to account for the sharp advance to an average price in New York of $118.15 per flask in 1927. In this case, as normally, the domestic price followed the foreign price. The high foreign (London) price in 1927 may have been owing in part to an informal agreement between the principal producers in Spain and Italy, and in part to heavy purchases by consum- ing countries in anticipation of the establishment of the cartel then under consideration. After the formation of the cartel in 1928, the London price was held at the equiva- lent of more than $105 a flask until June 1931, in the face of declining world markets and increased world stocks. Subsequently, the world-wide depression carried the Lon- don price down to $41.64 in 1933, or to the lowest point for the period from World War I to the present, whereas the New York price fell to $57.93 in 1932. The decline in the world price in 1932-1933 was accentuated by the surpluses produced in the restricted world markets by mines that benefited by the earlier, sustain-price policy of the cartel. Prices gradually increased with only slight fluctuations from 1933 until 1939, when World War II began in Europe. Following the outbreak of the second world conflict, prices in the US rose sharply. In August 1939, the monthly average was $84.41, and by the middle of September the quoted price had virtually doubled. The gains were attributed, primarily, to fears on the part of the cartel's customers that they would be unable to obtain all of their requirements from either regular or alternate sources. Italy's entrance into the war, in June 1940, left Spain to meet the demands for cartel metal in non-Axis countries, and the fulfillment of such demands presented shipping problems. The cartel price was advanced from $200 at the beginning of 1940 to $250 in December of that year, considerably above the equivalent price of $201.10 in London. Both prices were above those prevailing in the US, marking a reversal of the usual rela- tionship. It was rumored that the high prices were to enable Spain to repay Ger- many on favorable terms for reported aid in the Spanish Civil War. The London price rose above that of New York because the UK had to depend on Spain for some of its requirements. 0 0 Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 Highest New York price was $202.52, average for January 1942. The O.P.A. estab- lished ceiling prices for February 1942 and the New York price averaged $196.35 for 1942 and $195.21 in 1943. It dropped steadily thereafter, and in August 1948 was $75.00 a flask. Official London prices were set in May 1941 at about $194.20, raised to $281.44 in 1943. Control was removed completely in October 1945. In December 1946 the London monthly price was less than that of New York for the first time since May 1942. In August 1948 sellers were quoting a London price of $60.00 a flask. The principal world producers of mercury-Spain, Italy, US, Mexico, and the USSR-imposed import duties in prewar years to restrict imports as did certain minor producers-China, Turkey, and India. Duties were levied on mercury imports in Switzerland, Salvador, Nicaragua, Honduras, Cuba, Venezuela, Peru, Bolivia, Uruguay, and Argentina, non-producer countries, for the purpose of raising revenue. A tariff on imports of mercury has been in effect in the US since 1883. The duty of twenty-five cents per pound, or $19 a flask, imposed first in 1922, is still in effect. Owing to fluctuations in mercury prices this duty represented an ad valorem equivalent of sixty-nine percent in 1932, nineteen percent in 1940, ten percent in 1942-1943, and twenty-four percent in January 1948. The tariff is generally credited with stimulating the domestic mercury industry, and making possible the operation of mines that other- wise would not have been developed. 0 1883 10 cents per pound 1890 10 cents per pound 1894 7 cents per pound 1897 7 cents per pound 1909 7 cents per pound 1913 10 percent ad valorem 1922 25 cents per pound 1930 25 cents per pound 0 Production, Consumption, and Deposits. The peak year production was in 1877 when 79,395 flasks of mercury were mined. The output was stimulated by the great demand for mercury by the California gold mines where gold was separated from ores by amalgamation, a method which has been largely replaced by cyanidation. After 1877 there was a general downward trend in output and grade of ore with attendant depletion of many mines. High prices and government assistance increased the output during both World Wars, reaching a peak of 36,000 tons in World War I, and 51,929 flasks in 1943. With Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617A001600060001-7 CONFIDENTIAL the cancellation of government aid in 1944 the price declined and so did production. In 1946 domestic production amounted to 25,000 flasks, while in 1947 it was 23,244 flasks. Production fell off to 8,900 flasks during the first half of 1948. Unless there is an increase in the price, it is believed that only one mine will be able to continue operations during the last quarter of this year. High prices and government assistance during the war effected intensive pros- pecting and development, resulting in large increases in reserves. Measured reserves are small because measured ore is usually extracted during development. The Bureau of Mines and Geological Survey reported total reserves of the US including Alaska, at 86,000 flasks from ore workable at $100 a flask. An additional 400,000 flasks might be recovered at a price of $300 a flask, which is about 5'/2 times the present price f.o.b. Cadiz. Approximately an equal amount could be estimated to occur in Canada, Mexico, and other producing countries of the Hemisphere. (Important United States mines are described in Charts I, II, III, IV, and V of the Appendix.) California is the main producing state, accounting for more than three-fourths of the production in 1947, with the New Idria mine in San Benito County by far the largest current producer in the country. The New Almaden mine in Santa Clara County is the largest all-time US producer. Nevada, Oregon, Idaho, Arkansas, Ari- zona, Texas, and Alaska all contributed significant quantities to the nation's total during the war, but are of little importance in normal years. New discoveries of higher- grade ore found during the war at New Idria and other mines increased the average grade of ore mined from 0.25 in 1942 to 0.6 percent in 1947. In 1938 apparent consumption' amounted to about 19,600 flasks. Under the im- petus of war and the great demand for mercury, consumption reached 62,429 flasks in 1945, largely because of the great demand for the mercury battery for military pur- poses. It fell to 31,200 in 1946 with the cancellation of government contracts for mer- cury products. Returning to a peacetime use pattern, the 1947 total was 35,000 flasks but another rise is expected in 1948, probably to about 38,000 flasks, with the mercury battery responsible for most of the increase. P. R. Mallory & Co., Inc., Indianapolis, Indiana, controls the patents for the manufacture of the new battery. Large scale production for peacetime use is believed to be under way in that company's plant in Tarrytown, New York. A breakdown of US consumption by use is shown in Table 9. Foreign Trade. From 1925 to 1939 about thirty percent of the mercury consumed in the US was imported compared to fifty percent in 1946-1947. Chief prewar foreign suppliers were Spain and Italy, whereas Mexico and Canada supplied most of the US imports during the war, except for 1945 when Spain supplied an amount equal to almost ninety per- cent of that consumed. Most of our future imports are expected to be supplied by Spain and Italy, although 1,500 flasks were imported from Yugoslavia in 1947. General 1 Apparent consumption equals imports plus production minus exports. Data on mercury consumption have been compiled regularly only since September 1939. The first calendar year figures on which a detailed breakdown is available are those of 1942. 0 0 0 Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617A001600060001-7 Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 CONFIDENTIAL 0 imports from January-July 1948 amounted to 30,615 flasks, of which 21,567 flasks were from Spain. Re-exports in prewar years were small, but in 1939 and 1940 the US began shipping large amounts of mercury to the UK and to Japan. The USSR requested mercury in 1942-1943 to open its offensive, and 22,313 flasks were shipped under lend-lease. The large surplus of mercury accumulated during the war depressed the 1948 price to the lowest levels in approximately ten years. US consumption reached a nine year low in 1946, when only 31,200 flasks were used by industry, or about half the 1945 peak level. In 1947 US consumption had risen to 35,000 flasks as a result of substantial increases in consumption by P. R. Mallory Co., who in December began to produce the mercury battery for commercial use on a large scale. Domestic produc- tion in 1947 was only 23,200 flasks and imports 10,228 flasks compared to an output of 25,348 flasks and imports of 23,062 flasks the previous year. In the first half of 1948 US production was 8,900 flasks, general imports 27,254 flasks, and consumption had risen to 25,700 flasks. Stocks in Spain as of August 1948 approximate 75,000 flasks and about 100,000 flasks have been held in Italy where some purchases have been made by local investors as a hedge against inflation. In view of the large stocks held by the cartel and the diminished world consumption-Germany and Japan, two of the four world's largest consumers, are no longer of importance-prices as of August 1948 have declined to $75 a flask, delivered New York. It is believed that only one US producer will continue to operate at this price, and if the price does not rise during the last quarter of 1948 it may discontinue operations. The cartel can readily lower the price because of its large stocks and the need for US dollars in these countries. It is doubt- ful, however, if the price will decrease further, in fact a rise may be expected due to Spain's very large sales in the first half of 1948. Consumption in the US is expected to exceed 38,000 flasks in 1948 as a result of increased battery requirements, mercury clutches, and installation of mercury cells for making caustic soda. P. R. Mallory Co. has constructed a plant for the manufacture of batteries at Belfast, Ireland, to supply European requirements for the mercury dry-cell, thereby increasing consumption in that part of the world. General imports during the first seven months of 1948 have exceeded 30,000 flasks with over 21,000 coming from Spain. General Electric is reported to be the recipient of some of these shipments for a mercury boiler installation. The Mallory Co. is also reported to be purchasing large quantities to take advantage of the low price which is important to the marketing of the mercury dry-cell. Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 CONFIDENTIAL An approximate breakdown on arrivals through July is as follows: Spain ............. 21,567 Mexico ............ 2,533 Italy .............. 1,101 Yugoslavia ......... 413 Japan ............. 3,676 Sweden ............ 75 (re-exports) Netherlands ....... 1,201 UK ............... 49 Total ........... 30,615 (7 months preliminary) What the future holds, politically and economically, is merely conjectural. If large- scale rearmament begins, and this appears most likely, the price and the output of mercury will substantially increase. The large stocks in Spain and Italy would be purchased quickly by the US, UK, or USSR and submarginal mines would be reopened as the price increased. Formerly Spain and Italy dominated world markets and largely determined the price at which mercury was sold to consumers. In the immediate future Yugoslavia may become an important factor. Its importance as a mercury producer, however, could last but a few years, for reserves at the Idria mine are limited, whereas Spain and Italy are assured of their dominant positions for at least several decades. Emergency Supply and Demand. Mercury is one of the few strategic materials of which the US has fulfilled its pres- ent stockpile objective. The present stockpile, as of 30 June 1948, is 173,519 flasks com- pared to a minimum objective of at least 125,000 flasks. The objective is the equivalent of a two-year supply at the 1945 peak year consumption. In the event of another emer- gency consumption would undoubtedly exceed that of 1945. New military uses are being found for the mercury battery which was first manufactured on a large scale in 1945. Further development of the battery should make it necessary for the US to hold its present stockpile intact. The flow of mercury has returned to prewar channels, Spain and Italy having resumed their position as the chief world suppliers. In the event of an emergency these countries probably would be cut off from the US, or at least present a serious supply problem. The present stockpile may be adequate to assure the US of a plentiful supply until domestic production, and that of Canada, Mexico, and Chile could be stimulated. The stockpile is not adequate to meet US needs during a long war. There were approximately 200 mines producing in the US during the peak year of World War II, whereas only three or four are still operating at the current price. The high cost producers, closed by low market prices, total a strategic reserve of inestimable benefit to the US in the event of a future emergency. World War II proved the strategic importance of conserving marginal and submarginal deposits and their value at a time when it is difficult or impossible to procure supplies from foreign sources. The meas- 0 0 0 Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 CONFIDENTIAL 0 0 ured, indicated, and inferred reserves of the mines now closed are reported to total 330,000 flasks from ore workable at $195 a flask, and 481,500 flasks from ore workable at $300 a flask. (See Table 10.) A high price for a definite period may gradually increase the US mine output to about 40,000 flasks annually. Similar contracts with Canadian producers and pur- chases of the production of all of Mexico's mines at World War II prices, may produce a total annual rate of 60,000 flasks from these two countries within three full years of operation. In foreign countries payments should be made to the small individual oper- ators immediately upon delivery of a shipment to the railroad instead of to brokers who reaped large profits during World War II. Small operators had little capital, could not wait a long time for payment, and were forced to sell at a low price to obtain money to keep operating. Chile's output could be increased to 2,500 flasks by a high price and long term contract. It would take several years, however, before US require- ments, as well as those of Canada and the UK, could be supplied by Western Hemisphere production. An increase in the present stockpile by purchases at $50 (duty free) a flask, or lower, in Spain and Italy would be excellent insurance in event of a future emergency. The price would have to be raised to at least $200 a flask in an emergency in order to increase Western Hemisphere production to meet demands, and the time factor of several years would be necessary. The present US price is as low as it was in 1934, 1935, and 1936. It is doubtful if it will fall much lower, in fact, increases over the present price may be expected early in 1949. The difficulties experienced in the US in obtaining labor for mercury and other mines during World War II would be more serious in a future emergency. These and transport problems could be prevented, where mercury is concerned, by purchases made now. Also, a substantial US stock- pile would mitigate the control the cartel holds over the domestic market in peacetime. TABLE 3-UNITED STATES IMPORTS FOR CONSUMPTION BY COUNTRIES OF ORIGIN, 1937-1947 In Flasks of 76 Pounds COUNTRY 1937 1938 1939 1940 1941 1942 1943 1944 1945 1946 1947' 1948 Canada 7,400 15,581 1,565 1,720 Chile 1,409 2,660 982 477 Honduras ... 23 Italy 336 3 ... ... .. ... ... 5,038 1,516 1,101 Mexico 1,533 562 128 6,851 30,112 29,457 16,955 10,852 5,360 1,824 2,533 Nicaragua ... ... ... ... 20 ... ... ... ... Peru 153 ... ... ... Spain 7,042 1,251 2,601 40 104 55,392 3,127 2,161 21,567 Others 510 ... ... ... ... 4,607' 5,414 0 Total 1 Less than 1 flask. ' Includes following amounts reexported to USSR and of origin: 1942, 7,461 flasks; 1943, 14,852 flasks. ' General imports, preliminary figures. 3,107 flasks were imported from Japan and 1,500 flasks 7 months preliminary (general imports). 6 3,676 flasks were from Japan, 413 from Yugoslavia, 1,201 Kingdom, and 75 from Sweden. SOURCES: Bureau of Mines and Department of Commerce. Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 CONFIDENTIAL TABLE 4-UNITED STATES EXPORTS OF MERCURY, 1937-1947 1937 454 1938 713 1939 1,208' 1940 9,617 1941 2,590 1942 345 ' 1943 385' 1944 750 1945 1,038 1946 907 1947 884 Canada received largest amount, 304 flasks. Z The largest amounts shipped to individual countries were 5,178 flasks shipped to United Kingdom and 1,598 to Japan. 1598 flasks were shipped to United Kingdom. I In 1942, 7,461 flasks and in 1943, 14,852 flasks were exported to the USSR, but these amounts have been redesignated as "reexports" since they consisted chiefly of imported metal that was reshipped without changing its form. SOURCE: Bureau of Mines. The Almaden mine, 150 miles southwest of Madrid, is the most important mer- cury deposit in the world. The mine has a record of almost continuous operation since 400 B.C. and its reserves are still believed to be the world's largest potential source of mercury. There is no accurate production record for the first 1,900 years of opera- tion but statistics have been recorded since 1500, giving an output of 6,622,434 flasks mined during the last 446 years. However, since the Civil War in Spain, Italy has been the largest mercury producer. The all-time peak year of production for Spain was in 1941 when 86,473 flasks were produced. Almaden accounted for about ninety- eight percent of this total although two other mines were operating. Spain normally consumes less than ten percent of its mercury output, the remainder being exported. Germany was the chief recipient of Spanish exports in prewar years and during the war. The UK received some of its wartime requirements from Spain. Substantial quantities were also purchased by the US, especially in 1945 when 55,392 flasks were imported-a supply equal to one year's requirements at the wartime rate. The Almaden mine is operated by the Consejo de Administration de las Minas de Almaden and Arayanes, controlled by the Spanish Treasury. Reports indicate that it is a wasteful operation with no attempts at economy or modern mining and treat- ment methods with recovery as low as forty-five percent compared to over ninety per- cent in Italy. Despite this, profits have been large because the ore is very rich, averag- ing over six percent mercury and making Almaden by far the richest mercury deposit in the world. Labor makes up about eighty percent of the cost, largely because of a false fear of mercury poisoning which makes it necessary to pay workers a full monthly 0 Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 0 0 0 wage for only working forty-eight hours a month. The mine ceases operations from June through September to allow the employees to farm. Due to wasteful mining and treatment methods coupled with inflation, costs are believed to have risen to the pres- ent market price, compared to a cost of about $11 a flask early in the war. With modern mining and milling methods and efficient labor practices, costs could be reduced to $7 a flask or less. Almaden is over 1,300 feet deep which is unusual, for mercury deposits are nor- mally shallow. The ore has diminished in grade and volume with depth, but reserves have been reported at 250,000 tons of measured ore averaging six to eight percent and at least 650,000 tons of indicated ore averaging two and one-half percent mercury. These deposits represent about one million flasks of mercury or about twenty-five years of operation at a normal rate. Large potential reserves of high grade ore are believed to exist in deposits to the east, along the strike of the formation in which the mercury occurs at Almaden. These deposits occur in the valley of the Rio Valdeazogue but are within the Almaden concession. (For description of Almaden mine see Chart XIII.) At the end of the war mercury stocks in Spain were reported to total 120,700 flasks. A considerably decreased world consumption and large stocks in other countries made sales difficult even at low prices. In 1947 Spain was unable to sell any mercury to US firms at $65 a flask, plus $19 tariff, until August when a contract for 2,500 flasks was made with P. R. Mallory Company, makers of the mercury battery. This sale was made at $55 a flask, f.o.b. Cadiz. United States producers claim the sale was a violation of the Antidumping Act of 1921. Mallory's agents, Philipp Brothers, requested a reduc- tion in price to make mercury available for experiments. conducted in manufacturing the mercury battery for commercial use. The Consejo Almaden agreed to the contract, stating that the size of the order warranted the discount of slightly more than fifteen percent, and that a large new market might be developed by the experiments. About 1,250 flasks were. sold to Berk & Company of London at a price of about $60 f.o.b. port, a smaller discount, but a smaller order. Large orders, such as Mallory's, were given substantial discounts in prewar years. In 1947 Spain's mercury output amounted to 35,420 flasks and exports were 18,172 flasks compared with a 1946 production of 41,481 flasks and exports of 10,946 flasks. During the first six months of 1948 Spanish exports of mercury increased to 52,707 flasks with more than 21,000 flasks shipped to the US. Production for the first half of the year was 6,358 flasks, thus withdrawals of 46,349 were made from stocks which are now believed to total at' least 75,000 flasks. Two British firms were reported in July 1948 to have purchased from Spain about 15,000 flasks which is equal to about one year's consumption in the UK. The following export figures for the period January 1 to June 30, 1948, were released by the Spanish Customs Service in "Estadistica del Commercio Exterior de Espana": Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 COUNTRY NUMBER OF FLASKS EXPORTED United States ................... 23,000 Canada ........................ 6,610 Great Britain, N. Ireland ......... 13,750 Argentina ...................... 1,175 Sweden ......................... 2,061 Holland ........................ 594 Germany ....................... 4,870 Denmark ....................... 60 Portugal ........................ 81 Venezuela ....................... 10 Others ......................... 14 TOTAL FLASKS .............. 52,225 The total of 52,225 flasks does not agree with the total of 52,707 flasks reported to the US Embassy by Minas de Almaden y Arayanes. Almaden reported exports to the following countries during the first quarter of the year: Switzerland, 98 flasks; Australia, 136 flasks; South Africa, 200 flasks; and India, 202 flasks. These are not included in the Table compiled by the Spanish Customs. For many years Italy has vied with Spain for the position of the world's largest mercury producer. Italy's output of 94,161 flasks in 1941 was the all-time annual peak for any country. Between five and fifteen percent of the country's output is con- sumed domestically. The all-time peak for exports was reached in 1940 when 73,680 flasks were shipped. Before the war, Germany, the UK, and the US received most of Italy's exports whereas during the war all shipments went to Germany and Japan. The two largest producing mines are the Abbadia San Salvatore and the Solforate del Siele. The Idria mine was ceded to Yugoslavia by the terms of the Paris Peace Treaty at the end of World War II. The Abbadia and Siele mines, as well as numerous other prospects, are in the Monte Amiata district in Siena and Grosseta Provinces, seventy-five miles north of Rome, within a mineralized area eighteen miles long by six miles wide. Practically all the mines were damaged during the German withdrawal but have since been repaired. Surface outcrops in the Monte Amiata district were worked by the Etruscans sev- eral centuries B.C., but these properties were idle until rediscovered in 1868. The Abbadia San Salvatore mine has been Italy's largest producer except for 1940 and 1941 when it was surpassed by Siele. The Italian government controls fifty-three percent of the shares of the company. Reserves are reported to be large with the ore averaging over one percent mercury. S.A.M.A.,1 which owns Abbadia San Salvatore, has several other properties which have yet to.be developed. 0 0 0 Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617A001600060001-7 CONFIDENTIAL The Siele property is six miles south of the Abbadia and. is owned by a private cor- poration, Stablimento Minerario del Siele, which pays the government an annual con- cession rent of 10,000 lire plus a royalty of 2,000 lire per flask. Peak year of produc- tion for the Siele mine was 1940 when 41,479 flasks were mined compared with 37,777 flasks for the entire US for that year. Average grade of ore mined was 2.87 percent in 1940 and about two percent in ' 1944. Measured reserves were 225,000 flasks in 1946 while indicated and inferred were several times this figure. All of this is said to be in the Solforate del Siele mine and does not include other properties owned by the com- pany, some of which are now being developed. Siele, as well as Monte Amiata, is a mem- ber of the cartel but can withdraw at the end of the year by giving three months' notice. The Argus mine, near the Siele, is also owned by a private company, Societa Anonima Mineraria Argus of Milan. Maximum annual output has been about 7,000 flasks. The Argus mine is believed to be closed down at the present time because of the low price. Mining methods in Italy in prewar years were much different from those of Spain. Labor was relatively efficient and methods were economical in Italy. Because of greater efficiency and a high recovery, production costs of mercury in Italy were comparable to those in Spain although the Italian ore was lower grade. In fact, costs at Siele were less than half those of Almaden in 1937. When the war ended, costs (based on dollar equivalents at official exchange rates) in Italy rose near those of Spain due to relatively greater depreciation of the lire and to the government insisting that a full labor force be employed despite a reduced output. Costs could be reduced to $10 a flask at Siele by utilizing the present labor force to its best advantage and with improvements in stoping, placing fill, timbering, loading mine cars, ventilation and haulage. During 1946, Sr. Armenise, the president of Stablimento del Siele, approached a Canadian company, controlled by US capital, with a proposal to sell a stock interest in the Italian firm. A study of the mine was made by American engineers, who reported favorably, but the companies were unable to come to terms. When the war ended, stocks in Italy were very small, for the Germans shipped all stocks to Germany before their retreat. With an output of 50,822 flasks in 1946 and 53,984 flasks in 1947, large stocks are being built up since sales have been small. Italian producers were reported to have stocks totalling 90,000 flasks in July 1948 with at least 10,000 flasks held by speculators and consumers. Spain was offering US firms mer- cury at $54 a flask, f.o.b. Spanish ports, in April 1948, whereas Italian companies were getting $55 to $60 a flask, f.o.b. railhead in Italy. Siele has reduced its output to less than 1,000 flasks per month because of its large stocks; it could produce 4,000 flasks a month if markets were available, whereas Monte Amiata could produce 5,000 flasks a month. Average annual Italian consumption is about 5,800 flasks. The present retort capacity of all Italy is about 5,000 flasks a month, of which 3,200 are at the Amiata plant and 1,800 at Siele. Although Italy is supposed to receive 38.5 percent of the cartel's sales, exports from Italy in 1948 have been very much smaller than those of Spain. Italian exports of mercury have dropped monthly, stocks have increased, and the July production was Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617A001600060001-7 Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617A001600060001-7 CONFIDENTIAL reduced to about 2,800 flasks. The 1948 production is not expected to exceed 29,000 flasks. Monte Amiata and Siele have decreased their respective outputs but these companies are still forced to keep a larger number of workers than are necessary. The two small Italian firms, S. A. Mineraria Argus and Soc. Italiana An. Mercurio, have been hard hit by this crisis. Argus has shut down and dismissed its workers, while the output of SIAM has been severely curtailed. Conferences of industrialists, workers and exporters have been held to determine how the situation can be improved. The Italian Government has assured the industry that it will endeavor to include mercury in future trade agreements in an attempt to reduce stocks. The mercury producers are endeavoring to obtain credit from the government, a reduction in taxes and transport fees, and the right to reduce their labor forces at will. The government is believed to have approved a fifty percent reduction in the labor force and a reduc- tion in output to about 2,200 flasks a month. (Detailed descriptions of Italian mines are given in Charts Nos. XII and XIII.) The mine output of mercury increased from 7,376 flasks in 1939 to a peak of 32,443 flasks in 1942. Initial stimulation was the high price being offered by the Japanese. The UK and US were the chief recipients of exports before the war, with small quantities going to South American countries. Japan offered a higher price than the US in 1940 and 1941 and received large quantities. An agreement reached in July 1941 between the US and Mexico provided that the former would obtain the surplus produc- tion of certain strategic commodities, including mercury, then placed under export control by the Mexican Government. The US obligated itself to acquire surpluses of metal over and above that sold through regular channels to nations in the Western Hemisphere having export limitations in effect similar to those in Mexico. Toward the end of 1943 demand for mercury eased and prices began to decline, as did mine output. By 1947 production had fallen to about 9,700 flasks with a further drop expected in 1948. At the present low price Mexican producers are finding competition more difficult than in prewar years. Costs and taxes are higher than ever, and it is difficult to continue operating. Mercury deposits are widely distributed in Mexico. Occurrences have been reported in more than 200 localities scattered through two-thirds of the States of Mexico. There are six major districts: Nuevo Mercurio, Zacatecas; Sain Alto, Zacatecas; Canoas, Zaca- tecas; Cuarenta, Durango; Huitzuco, Guerrero; and Huahuaxtla, Guerrero. The Nuevo Mercurio district is in the desert country of northern Zacatecas and was discovered in 1940. It was the largest producer during the war, accounting for more than 7,000 flasks annually in peak years. The district is made up of a few low limestone hills in a wide expanse of sand flats. Water has to be shipped forty miles by rail and fifteen miles by truck. Mineralization is largely found at intersections of faults in anticlines. There were sixteen principal mines and fifty smaller mines operating at Nuevo Mer- curio during the war with over 200 prospects. Over 900 retort tubes were in opera- tion in Mexico in the early years of the war, but by early 1943 these had been replaced by the newly developed Manfrino and by Herreschoff furnaces. ? s 0 Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617A001600060001-7 Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 CONFIDENTIAL The ore deposits in the Sain Alto district of western Zacatecas are of two types, fissure fillings in sandstone and shale, and shear zones in- rhyolite. Cinnabar occurs in small rich pockets unsuitable to large scale operations and worked best by the local "gambusinos". In the Canoas district of southeast Zacatecas the ore is found in fracture zones in rhyolite. The output from Canoas was relatively small. The Cuarenta district is located in the semiarid mountain region of northern Durango and was discovered in 1932. The deposits are situated along fault zones in rhyolite and along a tilted contact of granite and conglomerate. Greatest production occurred between 1940 to 1943, when it reached about 3,600 flasks annually. Opera- tions stopped in August 1943 owing to the decrease in the price of mercury. The Huitzuco group of mines, sixteen miles east of Iguala in Guerrero, was dis- covered in 1869. The deposits are novel for the ore is livingstonite, a rare mercury- antimony sulfide. The ore occurs in lenses and fissure fillings, and was concentrated by flotation. Mining was discontinued early in 1944 because of the low price of mercury. The Huahuaxtla mine, about twenty miles north of Iguala in Guerrero, was dis- covered in 1923; the main ore deposit occurs in a gouge zone between limestone and shale. Production reached 2,000 flasks annually early in the war. The mercury industry in Mexico is finding it difficult to continue producing at present low prices and the 1948 output has been reduced considerably over that of 1947. Production amounted to 9,698 flasks in 1947 while exports totalled 9,654 flasks, of which ? 5,578 flasks went to the UK and 2,453 to the US. There is little prospect of improve- ment or even of maintaining the present position unless the price increases. Mexican mines cannot compete or maintain large production in a completely free market. Only a few mines are continuing operations and these are high grading. Representatives of the cartel recently visited Mexico for the purpose of including Mexican producers in the cartel. It is reported that this plan has been dropped temporarily because it was found that Mexico was not a sufficiently important producer at present because of the low world price. Mexico has important reserves of mercury which could supply the US with a large part of its requirements in an emergency. Output could readily be increased by a high price and a contract for that country's exportable surplus for a fixed period. The system of purchasing should suit the local conditions in Mexico, that is, payment should be made to individual producers immediately on delivery of a shipment to the near- est railhead, regardless of the small size of the shipment. The small operator in Mexico does not have sufficient capital to wait a long time for payment. (Descriptions of the individual mines are given in Charts VIII, IX, X, and XI.) 0 Domestic consumption was met by imports of 1,000-2,000 flasks before World War II, domestic production accounting for only six flasks in 1939. The substantial increase in price and the impending shortage of mercury in the Western Hemisphere led to exploration and development of mercury deposits in British Columbia. In 1942 and Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617A001600060001-7 CONFIDENTIAL 1943 the US Government's Metals Reserve Company contracted for the purchase of mercury from the Pinchi Lake Mine of Consolidated Mining and Smelting Company, Ltd., and the Bralorne Takla Mine of Bralorne Mines, Ltd. By 1943 Canadian produc- tion reached a peak of 22,240 flasks, the Pinchi Lake mine becoming in that year the largest producer in the Western Hemisphere. The Metals Reserve contract was ter- minated with Consolidated Mining and Smelting in the fall of 1943 when large stocks began to build up in the US. The Pinchi Lake mine soon produced a large surplus and was closed in July 1944 because there, too, large stocks had been built up and the mine labor was needed at the company's lead mine. From 1940-1944 Pinchi Lake mine yielded 52,600 flasks of mercury valued at $10,000,000. The Metals Reserve contract with Bralorne ran until September 1944 when that company's newly developed property closed, and Canada did not produce mercury in 1945, 1945, or 1947. Both mines occur in the same belt along a major fault zone, 150 miles long and from 200 to 1,000 feet wide. The potential of this mercury belt is believed to be considerable, but the low price of mercury, the high cost of supplies and transport, and the shortage of mine labor will prevent the mines from reopening. The mercury belt, however,. is extremely important to the US and the British Empire as a major source of mercury in an emergency. The output could readily supply the emergency requirements of the UK and Canada and provide large amounts to the US. During an emergency the mercury mines compete with lead, zinc, and other mines for the mine labor in the area. Canada imported 2,010 flasks in 1946 and 5,430 flasks in 1947. The increase in imports was due to the installation of mercury cells for use in a new caustic soda plant. Aside from this installation Canadian consumption amounted to 2,646 flasks in 1947. PERU The Santa Barbara mine, Province of Huancavelica, was first opened by the Span- iards in 1599 to supply the South American Colonies with mercury for amalgamation of gold and silver from their ores. The mine closed in 1839 after producing 1,479,000 flasks of mercury making it one of the world's largest all-time producers. High prices and the attempt to increase the mercury output of the Hemisphere by purchase con- tracts resulted in the reopening of the Santa Barbara mine and the development of a new mine in the Chonta district. Production reached a World War II peak of 326 flasks in 1943 but mining ceased entirely in 1946. (For a description of the mines see Chart No. XI.) The mercury produced in Chile is mined with gold at the Punitaqui mine in Ovalle Province. Cinnabar occurs in the northern part of the mine workings. The peak -year of production was 1943 when 2,561, flasks were produced as the result of a contract -concluded-on January 26, 1942, between the US and Chile for 9,000 flasks of Chilian mercury in eighteen months, but this amount was never reached: A new. agreement was concluded in August 1943, effective for another twelve months. . Prior to 1942 0 0 0 Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617A001600060001-7 Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 CONFIDENTIAL 0 Chile's output was shipped to the UK, Japan, and South America. Production has declined in recent years with the decrease in the price of mercury. (The Punitaqui mine is described in Chart No. XI.) The Monarch Kop mine in the Letaba district of Transvaal was developed with gov- ernment financial aid and began producing in 1940. By 1943 production reached 1,189 flasks annually, the country was self-sufficient for the first time, and small amounts were exported. Imports from Spain and Italy formerly supplied all domestic require- ments, important amounts being consumed in the gold industry. In 1944 the output reached a peak of 1,192 flasks and fell off in subsequent years. The mine recently closed down owing to the low price for mercury and to the exhaustion of developed reserves. (See Chart XIII.) Production of Algeria reached 791 flasks in 1940, mined from the Ras-El-Ma deposit in the Department of Constantine. The deposit is small, the ore averages less than 0.5 percent. The entire output is shipped to France. In 1947 the output amounted to 348 flasks. (See Chart XIII.) 40 In normal years Germany was the "second largest consumer of mercury with an average annual consumption of 21,710 flasks for the period 1925-1929 and 18,480 flasks from 1930-1938. With the advent of war German apparent consumption, ex- ceeded that of the US by approximately 15,000 flasks in 1938 and by 1940 reached a peak of more than.85,000 flasks. Italy and Spain were the principal. sources of supply. Spanish mercury was sent to Germany in payment for a debt owed Germany. Ger- man exports were small until 1943 when 5,570 flasks were exported, mainly to Japan. TABLE 5-MERCURY PRODUCED IN,,IMPORTgD.INTO,_AND EXPORTED FROM GERMANY, 1935-44, IN FLASKS OF 76 POUNDS . 1935 116 24,918 435 1936 1,102 19,958 348 1937 174 25,904 174 1938 1,363 32,866 58 1939 1,102 24,802 116 1940 870 84,326 87 1941 522 66,457: 551 1942 522 49,372 435 40 1943 ... 60,076 5,570 1944 ... 24,860 1,363 Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617A001600060001-7 CONFIDENTIAL Germany was the largest consumer of mercury in the world in 1940 and 1941. A large part of this increase resulted from the gradual conversion to mercury cells in the production of chlorine and caustic soda. Increased consumption also resulted from the expansion of synthetic rubber plants, mercury-arc rectifiers, and other electrical devices. The easy availability of mercury to Germany in the prewar period, and the shortage of other vital materials, encouraged its use in new projects and as a sub- stitute for materials in short supply. The only important mercury deposit in Germany is the Landsberg mine at Ober- moschel near Bingen in the Rhein Palatinate. After being idle for nearly a century, the mine was reopened with government assistance in 1934 under the general pro- gram for increasing national self-sufficiency in production. The ore averaged 0.2 per- cent and production costs were correspondingly high. The government expected the mine to produce about 3,500 flasks a year, but peak output was 1,775 flasks produced in 1937. By 1942 only about 522 flasks were mined and the mine closed down, pre- sumably because sufficient mercury was being received from Italy to supply all needs. At the end of the war large stocks of mercury were found in Germany (all but 9,000 flasks were shipped to the US stockpile. The 9,000 flasks remaining were sold in Belgium. Domestic requirements and a small surplus for exports are normally provided for by the Mariabana and Mernik mines near Vranov and Teplov in Slovakia. Before World War II these mines were owned by a French company. Recent details on the ownership and operation of these mines are lacking. It is probable that they have come under government ownership as a result of the nationalization of Czechoslovakian industry. The 1940 output was 2,582 flasks but is believed to have dropped in subsequent years. At the end of World War II, the terms of the Paris Peace Treaty gave Yugoslavia the Italian territory surrounding Trieste, including the Idria mine which had been ceded to Italy by Austria after World War I. The Idria mine was operated by the Italian government and its production was subject to cartel control until siezed by the Yugoslavs. The mine is now operated by Rudnik Ziveta Sreba, controlled by the Yugoslav government. Idria is one of the largest all-time producers but its reserves are believed to be limited. Prewar production averaged about 8,000-10,000 flasks annually. The mine is reported to be operating at the present time; in fact 1,500 flasks were shipped to the USSR from Yugoslavia in the last querter of 1947, and significant quantities are being shipped to the USSR. Idria is selling small quantities on world markets at prices slightly under those quoted by the cartel. It is doubtful if production could be increased to more than 15,000 flasks per year for reserves are not extensive. Explorations by the Italians at the beginning of the war failed to reveal any new ore bodies. CONFIDENTIAL 20 0 ? 40 Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617A001600060001-7 Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617A001600060001-7 CONFIDENTIAL 0 1940 13,800 1941 14,600 1942 11,050 1943 8;400 1944 1,670 0 There are two principal deposits in Turkey, the Ahirli and Karareis mines both of which are on the Karaburnu Peninsula and are easily accessible by sea. Turkish mercury production increased to 597 flasks a year in 1938, but fell off in subsequent years. During World War II the Turkish army was the principal buyer with small quantities exported to UK, Egypt, and Palestine. The mines have been worked only during periods of high prices. Equipment and methods are primitive while the ore is low grade. The mines are reported to be. capable of a substantial increase in output, possibly to 5,000 flasks a year, if crushing equipment, a modern furnace, and a new haulage system were installed. In 1938 a partnership, the Karareis Mercury Mines Operating Company, Ltd., was formed between Karareis, fifty-five percent government owned, and the Turkish owners of Ahirli. The government then turned over its interests to this company provided the mines were operated according to government regulations. 0 The largest production since 1925 was in 1939 when 4,918 flasks were mined while the peak year of exports was in 1940 when shipments totalled 6,258 flasks. There is a small domestic consumption for amalgamation purposes and in making vermilion and, possibly, fulminate. The Chinese mercury deposits occur within a belt 420 miles long by 180 miles wide, extending from western Hunan southwest through Kweichou, Yunan, and into Kwangsi and Szechuan Provinces. Hunan was the principal producer through 1940 but Kweichou has had the largest output since that time. The mines are small and scattered, with the ore averaging about one percent mercury. Mining methods are primitive and operations are not carried on during the farming season. Ore is treated in native retort furnaces and losses are high. The mines are largely controlled by the Chinese National Resources Commission. When German armies captured the USSR's chief producer of mercury, China, as well as the US was called upon to make up the deficiency in supply. In 1941 China exported about 3,480 flasks to the USSR; in 1942 about 5,800 flasks were shipped. Although China's deposits are small, they are numerous and of considerable po- tential importance. No study of reserves is believed to have been made and there is little development ahead of mining. Technical assistance is needed and, should this Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617A001600060001-7 Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617A001600060001-7 CONFIDENTIAL be supplied, China will have an important surplus for export over and above domestic requirements. Stock-piling of mercury for war purposes appears to have been started in Japan as early as 1935 with a sharp increase in purchases from Spain and Italy, Japan's chief sources of supply. Imports reached a peak of 38,051 flasks in 1941. In the succeed- ing years imports exceeded 600 flasks in one year only, 1943, when Italy and Germany shipped a total of 7,842 flasks. Korea was the main recipient of small exports, with some mercury going to Formosa for amalgamation of gold ores. Mine output was inconsequential before World War II, amounting to only 368 flasks in 1937, and Japan depended on imports for its annual requirements of about 12,000-14,000 flasks. Gov- ernment assistance in the form of subsidies and the discovery in Hokkaido of the Itomuka mine which accounted for more than three-fourths of Japan's wartime output, increased domestic production to a peak of 7,096 flasks in the year 1944. Production amounted to 1,421 flasks in 1946 with only Itomuka and Oketo operat- ing at the end of the year. Japan's future requirements have been estimated at 5,800 to 8,700 flasks annually of which domestic production may be able to supply one-half. Japan's known reserves were reported to total 43,964 flasks in 1945, but much of this is low in grade. Practically all the above-marginal reserves are in the Itomuka mine. Several of the mines are equipped with flotation plants but at Ito- muka losses were high and flotation did not prove economical. The average grade of ore mined declined from 1.9 percent mercury in 1939 to 0.18 percent in 1945. Future operations will necessitate selective mining to operate economically, together with efficient exploration, mining, milling and distillation methods. CONFIDENTIAL 22 0 9 Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617A001600060001-7 Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 CONFIDENTIAL 0 YEAR IMPORTS MINE OUTPUT . EXPORTS APPARENT 1930 7,167 121 348 6,940 1931 7,640 102 406 7,336 1932 9,883 69 696 9,256 1933 10,703 234 812 10,125 1934 14,442 196 754 13,884 1935 23,673 148 899 22,922 1936 14,845 429 957 14,317 1937 16,003 368 783 15,588 1938 11,078 716 377 11,417 1939 14,500 1,429 870 15,059 1940 19,020 3,520 870 21,670 1941 38,120 4,323 1,450 40,993 1942 546 5,197 1,450 4,293 1943 7,842 6,706 1,041 13,507 1944 349 7,096 635 6,810 1945 3 3,139 145 2,997 1946 .... 1,361 1947. .... 1,619 .... In prewar years the USSR was self-sufficient and the world's fourth largest producer, with an output of about 8,700 flasks of seventy-six pounds annually, prac- tically all of which was produced at the Nikitovka mines in the Ukraine. The Ger- man armies closed in on the mines in 1941, but the Russians removed the equipment to deposits further east before the Germans arrived. However, the USSR had lost its one large producer at a time when consumption was almost immediately increased by war requirements (fulminate primers, pharmaceuticals, etc.) from 8,700 flasks to a rate of more than 15,000 flasks annually. Large-scale production of mercury deposits in Asiatic Russia began in 1939 or 1940 with the building and expansion of Im. Frunze, an antimony-mercury combine. After the loss of Nikitovka, production of Im. Frunze at Khaidarkan, Chauvai, and Turgai in Central Asia was increased and exploitation of other deposits began, such as the Chagan-Uzun in the Altai Mountains and those near Vladivostok in Siberia. Estimated 1943 capacity of the Im. Frunze combine was believed to be about 5,000 flasks; Chagan-Uzun, 2,500; and the Siberian deposits, 800. By the summer of 1942 domestic production is believed to have reached a produc- tion rate of about 6,500 flasks annually. Chinese mercury shipments amounting to 3,480 flasks in 1941 and 5,800 flasks in 1942 were flown to Russia from Kunming to alleviate the shortage but supplies still became drastically short. The USSR requested 23 CONFIDENTIAL Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 CONFIDENTIAL 7,000 flasks of mercury from the US during 1942 and almost 8,000 flasks were shipped during that year through Lend-Lease. At the end of 1942 USSR authorities requested that additional supplies from both China and the US be shipped immediately. Preparations were being made for an offensive and requirements increased considerably. During 1943 about 15,000 flasks were shipped to the USSR, again under Lend-Lease, but Chinese shipments dropped off. No further requests to the US were made and the only imports were in the form of manufactured goods. From 1943 through 1946 the USSR imported 7,366 flasks from China. No mercury was shipped from China to the USSR during 1947. The present position of the USSR is apparently one of self-sufficiency where civilian requirements are concerned; in fact, productive capacity including the Nikitovka mines, now reported to be back in operation, is believed to equal the wartime demand. Should purchases be made in the near future by the USSR they would be. limited to low- priced offerings for stockpile purposes. The Mercurio Europeo, international mercury cartel, has large stocks of mercury on hand and would like to sell substantial quantities without materially affecting the market. This could only be done by selling to the USSR or to other governments for stockpile purposes and may be a possibility. Although the mercury mines of the USSR and Satellite countries should be able to meet all domestic demands in event of an emergency, a stockpile would be needed to maintain a constant flow to industry. Many deposits have been reported but most of these have yet to be exploited. Lack of equipment is a major limiting factor. With more intensive exploitation, it is probable that the output of mines in the USSR could be increased to 17,000 flasks annually within a few years. This would approximate the World War II rate of consumption. At the same time the Idria mine, now held by the Yugoslavs could supply at least 8,000 flasks annually to the USSR, and Czechoslovak production could be increased. . If the USSR should invade Europe, about 175,000 flasks would fall into the hands of the Soviets. There are at least 75,0.00 in. Spain and 100,000 in Italy as well as small stocks in France, Belgium, Norway, the Netherlands, and Sweden. 0 0 Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 CONFIDENTIAL TABLE 7-WORLD PRODUCTION OF MERCURY 1938-47, BY COUNTRIES (In Flasks of 76 Pounds) ? 0 Algeria 191 256 791 147 121 146 165 326 340 348 Australia : New South Wales ... 8 1 2 ... 8 8 8 Queensland ... 3 37 34 15 15 12 3 ... Austria 1 9 1 8 8 . 4 e 8 8 Bolivia (exports) ... 7 ... ... ... 51 2 3 Canada 10 6 2,024 7,057 13,630 22,240 9,682 ... ... Chile 44 1008 100 8 1,305 2,256 2,563 1,181 862 827 8 China 560 4,931 3,403 2,756 4,293 3,133 3,510 1,828 1,189 290 Czechoslo- vakia 2,900 2,669 2,582 8 , 8 8 8 8 8 Germany 1,392 1,218 957 899 493 3,480 1 8 3,480 8 a 8 8 Italy 66,752 67,154 91,230 94,161 75,885 61,945 22,997 25,527 50,822 53,984 Japan- 592 1,358 3,394 4,323 5,197 6,706 7,096 3,139 1,361 1,619 Korea (Chosen) 16 1 2 1 1 1 1 1 1 1 Mexico 8,519 7,376 11,653 23,137 32,443 28,321 26,053 16,443 11,661 9,700 New Zealand 10 ... ... 73 150 93 90 30 ... 8 Peru ... ... ... ... 145 326 152 209 5 ... Rumania ... 21 176 8 8 8 8 Southern Rhodesia 2 1 2 3 2 2 ... ... Spain 41,409 35,912 52,214 86,473 72,288 47,756 34,349 40,694 41,801 35,420 Sweden ... ... ... 59 11 ... 21 1 . 8 Tunisia 270 58 125 88 3 2 ... ... ... 8 Turkey 597 359 500 242 176 271 143 158 75 Union of S. Africa ... ... 42 204 579 1,189 1,192 852 764 ... 1 1 8 USSR 8,700- United States 17,991 18,633 37,777 44,921 50,846 51,929 37,688 30,763 25,348 23,244 Yugoslaviag ... ... ... ... ... .... a a 'Estimates included in the total. 2 Production less than 1 flask. 8 Data not yet available; estimate included in the total. 4 Included under Germany. 8 Includes Austria. "Estimate. 7 Preliminary. 8 Output of Idria Mine included under Italy until ceded to Yugoslavia after World War II. Present output believed to be at the rate of 10,000 flasks annually. C.I.A. estimate. SOURCE: Bureau of Mines. 0 Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 CONFIDENTIAL ~r N O C9 000 O C) Cl Ch c+o Ci 00 r1 0 00 L o ~c~ a+ CV Eft' - r~ M 0 CO 't m V Q C) NV O CV M O O O O M c6 C O O) CV O LO CV O) C'7 09- -4 M ?-4 LO L- 00 m C) CC CO CO 114 n-1 M N O L CV O O O O M CO ri CV - M +?i CV O O M CO O CM to 144 1144 m 4= C) LO lf) O (= I O ~ CCn a -1 00 11 L f! M O ~ E- 1-4 CO 60. H} m r-q M m Cq to 1144 -q "tt " UO U'.) C> CD 00 ~ O CA .--I Ca r-i q LC , O) CO p.7M L 4 O C) tf) It to to 114 II;V 00 LO C- CO 00 .--i M O n O CD M M L O O O C- C) Cq CO O) LO LO r-4 " m r-i L GO. Gr~ CV O O O O (- 0 -C) C) O CV .44 O) O O L6 f Ell:, u) 00 O 00 O NC.')' LO dr r1 C- 609- Ej} CV L O) L O -4 L C7 C) L to 00 _4 L .-?4 O O C -4 C6 14 ri CD CO O M I L M L O r--I N C) Cfl N cf) .--4 O ti Ef} H} CV M CO L C) c4 CO O N O 000 O) I M CO C) C C) CD CD i -i O C) CD O - u Cd der O ~ . 4 r-4 Grp N I~r W- _q C) Cu LUi 4 0 C) O) O CO M L c 0 0 0) L-~ 60? O Idq o x+ 0 O VI U ?v k Cd ~. O 0 : Y+ 0 bD C w O O O CONFIDENTIAL 226 Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 CONFIDENTIAL TABLE 9-MERCURY CONSUMED IN THE UNITED STATES, 1937, 1942-47, (In Flasks of 76 Pounds) 0 1937 1942 1943 1944 1945 1946 1947 Pharmaceuticals 8,088 14,563 8,358 11,166 4,093 3,037 Dental preparations 1,198 566 442 537 1,086 598 Fulminate: Munitions l 1,931 Blasting caps } 4,146 J { 1,211 1,890 1,115 682 538 Agriculture 1,533 1,993 3,930 2,862 3,134 5,622 Antifouling paint 1,220 2,702 .2,439 1,661 994 760 Electrolytic preparation of-Chlorine Caustic Soda 549 691 657 597 546 665 Catalysts 3,253 4,432 4,764 3,650 3,310 5,079 Electrical apparatus' 4,550 3,284 7,092 24,468 3,849 6,720 Industrial and con- trol instruments' 3,529 3,674 3,249 3,776 3,960 4,686 Amalgamation 180 24 29 205 76 119 General laboratory 294 360 265 337 196 199 Vermilion 215 185 2 2 2 Redistilled 1 6,175 5,384 6,613 9,712 5,572 4,653 Other 9,103- 10,880 2,236 2,343 3,167 1,701 35,000' 49,700 6 54,500 3 42,900 6 62,429 31;200 6 35,100 ' A partial breakdown of the "redistilled" mercury showed its largest use was for industrial and control instruments and the remainder for dental preparations, electrical apparatus, and laboratory purposes. ' Included in "Other." S A large part was used for chemical warfare purposes. ' Apparent consumption, breakdown not available before 1942. 6 The items do not add up to total which has been increased to cover approximate total consumption. SOURCE: Bureau of Mines. 0 Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 CONFIDENTIAL TABLE 10-ESTIMATED MERCURY RESERVES OF THE UNITED STATES, INCLUDING. ALASKA, AS OF JANUARY 1944 (In Flasks of 76 Pounds) Alaska Arizona Arkansas California Idaho Nevada Oregon Texas Washington Total a~~~rr vii 'a zs Cd .0 cd U cd.0 Cd V o " cd U j w M 0 300 300 600 9,500 14,200 23,700 14,500 30,200 44,700 ... 500 500 3,500 3,500 7,000 3,500 3,500 7,000 200 3,500 3,700 200 3,500 3,700 31,000 34,000 65,000 72,400 107,400 179,800 90,300 160,600 250,900 ... 1,000 1,000 14,300 3,700 18,000 34,000 5,400 39,400 5,400 8,000 13,400 25,000 50,000 75,000 29,000 75,000 104,000 3,500 1,000 4,500 10,000 6,800 16,800 13,000 7,800 20,800 500 500 1,000 2,500 3,000 5,500 3,000 6,000 9,000 ... ... ... 500 500 ... 2,000 2,000 40,700 45,300 86,000 137,400 192,600 330,000 187,500 294,000 481,500 1Ore at most mines is indicated and inferred because ore is extracted during development. Z Cumulative totals. SOURCE: Bureau of Mines. 0 0 0 Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 No. Name and Location Ownership and Nation- Production ORE DEPOSITS AND ORE RF372VES PRODUCTION METHODS TRANSPORTATION on of Mine or Produc- ality of Controlling -.ear Flasks of Geological and Mineralogical Notes and Ore Analysis and Plant Capacities Labor Deployed Map ing Area Capital 76 pounds and other Data ALASKA 1. Decourcey Mine, Decourcey Mining Co. Lenses of cinnabar averaging 1 foot thick occur Cinnabar lenses developed by Air service from Decourcey Mountain United States Control. along 5 zones of enrichment in sandstone and shale surface trenches and adits. Ore Flat to Decourcey on Region, 35 miles beds over 1,800 feet in length and 385 feet in hand sorted to 30 percent Hg. charter basis at Jk3O southwest of Flat width. Sedimentary beds intruded by dikes and sills conc. Retort plant constructed a trio.800 lbs. of on east slope of of diabase. Ore bodies vary in dip from 50 to 80 at mine. Output 1944, 400 fl. freight. From Fair- Iditarod River. Alaska Production degrees. Ore averages 32 lbs. Hg per ton. Reserves: (est.) banks to Flat, Developed ore, 6,970 tons containing 322 lbs. Hg freight by air is 26 1940 162 per ton. eta. a pound 1941 Not separated 1942 Not separated 2. Red Devil Mine, 8 New Idria - Alaska Co. 1943 786 Cinnabar associated with stibnite in brecciated and Mined underground through adits Transported by boat miles west of Sleit- Headquarters: San 1944 548 altered andesite dikes of Tertiary age intruding and shafts. Cut and fill method to United States. nut, which is on the Francisco, California. 1945 Not separated Upper Cretaceous sandstone and shales. Ore occurs in of mining. 40-ton wood-fired Owners also operate Kushokwim. River United States Control 1946 699 form of lenses in both andesito and sediments along Gould Rotary furnace. Develop- New Idria mine in about midway the contact. Ore avera,,es l2 Hg. Reserves: 4 ment partially financed by Gov- California. Mine between Bethel and lenses have total indicated reserve 11,000 tons ernment Funds. Further opera- could yield 300 to McGrath. George- 45.3 lbs. Hg/ton. 7 lenses inferred reserve 15,000 tions depend on higher prices. 400 flasks a month town District tons 36.7 lbs. Hg/ton. for a few years at 610 46'N 1570 20'W high prices. CANADA Canada Production 3.(a) Pinchi Lake Mine Consolidated Mining 1939 6 The two mines are 90 miles apart but both occur in Mine developed by a 3-compartment Pinchi Lake capacity 12 miles from Fort and Smelting Co. 1940 2,024 the same belt which lies along a major fault zone shaft, 250 feet deep on 65 degree increased 20 times St. James, on Headquarters Trail, 1941 7,057 about 150 miles long and from 200 to 1000 feet wide. incline. Six mine levels opened, in 3 years. Start- Manson Creek, B. C. Canadian 1942 13,630 The ore bodies at these two mines and elsewhere along total of about 5,000 feet of ad producing in 1940 British Columbia Control. 1943 22,240 the belt are found in sheared and brecciated lime- drifts, 6,000 feet of raises and and tried cold press- 1944 9,682 stone or in carbonitized serpeitine with fault gouge 20,366 feet of diamond drilling. ing but discontinued 3.(b) Bralorne Takla Vine Bralorne Mines Ltd. 1945 --- and impervious caprock often controlling deposition Treatment plant capacity 1200 tons it because it proved Takla Lake 1946 --- of cinnabar. At Pinchi Lake, the larger cinnabar ore ore per day consists of coarse unsuccessful. Mines British Columbia bodies are in limestone overlain by schist. The crushing by gyratory crushers, closed down in 1944 Pinchi Lake 52,600 grade varies considerably from 0.25 to 3% Hg. wedge roasters, rotary kiln fur- with cancellation of from 1940-44, value naces and condensers. Reported contracts with $10.000,000. mercury recovery 95%, impurities United States. Bralorne 1,700 0.005%. in 9 months. CALIFORNIA 4. New Idria Mine, New Idria Quicksilver Largest producer in Ore is cinnabar in silicified shale breccia beneath Mine developed by means of adite Produces more mer- 57 miles south of Mining Co. the United States. steep thrust fault that brings Jurassic sandstone at levels 200, 300, 400, 500, 700 cury annually than Tree Pines, 67 miles United States Control. Accounted for more and serpentine against overturned Cretaceous shale and 1,000 ft. below outcrop5from its next three southeast of Holli- than 1/3 country's and sandstone beds. Both ore and silicified zones 1,000 ft. level a three comport- United States oom- ster, 55 miles south- production in 1946. are controlled by changes in dip and strike of fault ment winze extends to 1,400 ft. petitors. 75-100 east of Mendozo. Second largest all and are principally in inverted troughs. Main min- level. Total length of under- worlonen. San Benito County. time producer. eralized zone, which contains several ore shoots is ground workings is 20 miles. Ore Altitude 2,500 to 20-100 feet wide, 1,000 feet long and 1,500 feet is processed in 4 Gould rotary 5,200 feet. deep. Ore averages 0.5 - 1.5% Hg. Reserves: Old furnaces. dumps and stops fills which contributed much to pro- duction in recent years are largely exhausted. Newly discovered ore shoots are large and high grade. Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 CONF' ENTIAL No. on Map Name and Location of Mine or Produc- ing Area Ownership and Nation- ality of Controlling Capital Production Year Flasks of 76 pounds ORE DEPOSITS AND ORE RESERVES Geological and Mineralogical Notes and Ore Analysis PRODUCTION METHODS and Plant Capacities TRANSPORTATION Labor asployed and Other Data CALIFORNIA (Cont'd.) 5. Lea Grant Mine, Ownership not reported. Cinnabar is disseminated in sandstone?and fills Shallow surface and underground 20 miles north of United States Control. fractures therein. There are at least 5 zones of workings, widely scattered. 100- Idria, 45 miles mineralization. Ore averages 0.2% Hg. Mineralized ton rotary furnace. southeast of Holli- area is about one square mile. Individual ore ster, San Benito. shoots are pockety and known reserves are small. 6. Sulphur Bank Mine, Bradley Mining Co. Total production to Cinnabar disseminated within highly kaolinized zones Open pit mine. Roughly one Reserves 1944: near the southeast United States. the end of 1944 was of altered "bouldery" andesite, especially near con- square mile in area. Ever- Measured none, Indi- arm of Clear Lake, 126, 285 flasks. tacts and in open spaces formed by joint planes or increasing amounts of overburden cated and Inferred 10 miles north of small faults. Cinnabar also forms thin "paint" in must be moved in order to main- 34,170 flasks from the town of Lower the Franciscan fault breccia beneath the andesite, tain a constant amount of ore. 165,000 tons of ore. Lake, Lake County. chiefly around sandstone boulders in fault breccia In 1938, 144,999 dry tons of Gould Rotary furnace. exposed in bottom of Herman pit. Ore averages waste rock was excavated and 0.6 - 0.7% Hg. 22,186 tons of 0.72% ore mined. 7. Abbott Mine International Metal Third largest pro- Details on geology not available. Ore averages Extensive underground workings, Transport by truck eastern boundary of Development, Inc. ducer in the United 0.77; Hg. Reserves are comparatively small with many are caved, Deepest shaft to 1jilliams, 24 Lake County, 24 United States Control. States in 1944. fair chance of discovering new high-grade ore is 285 feet. 40-ton rotary miles, then via miles west of the shoots. Line closed in August 1946. furnace. Southern Pacific, town of Williams, Lake County. 8. Great Western Mine Bradley Mining Co. Ore bodies occur in beds of silica-carbonate rock,in Mine developed by 8 miles at 2,000 ft. alti- United States Control. Franciscan sandstone,and in chert beds. The depos- underground workings mostly in- tude on the north its in silica-carbonate rock are the most important. accessible, and distributed slope of Mt. St. California Prod. Cinnabar is the ore mineral. Ore averages 0.6% Hg. through a vertical distance of Helena, 4 miles by Reserves are very small. over 750 feet. Entry to main road southwest of 1938 12,277 workings by adit, winze inclined Middletown, Lake 1939 11,127 25? to 30? connects main level County. 1940 18,629 adit with orebody on lower level. 1941 25,714 Stoning, using square set method 1942 29,906 of mining. Herresbhaft furnace 1943 33,812 of 20 tons daily capacity. 1944 28,052 1945 21 199 9. Mirabel Mine Mirabel Quicksilver. 1 946 17,782 Cinnabar occurs in a silica-carbonate rock in ore Exploration carried to 500 feet 4 miles south of United States Control. shoots of both tabular and pipe-like forms. The below the surface. Extensive Middletown, State largest ore shoot is a tabular body 240 feet long, underground workings. highway runs by the 20 feet wide and 200 feet high. The ore minerals property, Lake are cinnabar, meta-cinnabar and native mercury. County. Ore averages 0.1 - 0.5% Hg. Reserves are very small. 10. Klau Mine Klau Mining Co. lessee. Cinnabar occurs as vein networks in a brecciated A considerable amount of open-pit 1938 - 20 men. 17 miles by road Mrs. Ellard W. Carson, shale, the veins often consisting of greenish clayey work has been done, but the mine west of Paso Robles Owner. material,. Pyrite and marcasite are fairly abundant has been developed chiefly from a in Santa Lucia Range. United States Control. and are commonly associated with the voinlets and 450-foot inclined shaft near the Mine is just off irregular masses of dark red crystalline cinnabar. center of the property. Most of road leading to Cam- Rocks are of Franciscan, Cretaceous and Tertiary age. the many miles of tunnels, shafts bria 15 miles over Ore averages 0.4% Hg. Very little development ahead and cross-cuts driven on the the range. San Luis of mining - Heavy ground. property are now caved. Rotary Obispo County. furnace of 50 ton daily capacity. Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 No. on Map Name and Location of Mine or Produc- ing Area Ownership and Nation- ality of Controlling Capital Production Year Flasks of 76 pounds ORE DEPOSITS AND ORE RESERVES Geological and Mineralogical Notes and Ore Analysis PRODUCTION METHODS' and Plant Capacities TRANSPORTATION Labor Rnployed and Other Data CALIFORNIA (Cont'd.) 11. Oceanic Mine American Quicksilver Ore is of two types: (1) high-grade type is a medium Extensive underground workings, 1938 - 40 men 40 miles by road Co. grained sandstone containing disseminated cinnabar; shafts, edits, and ore" Bouts. from San Luis Obis- United States Control. (2) is a sandy siltstone containing almond shaped Shaft to 750 feet depth below out- po and 5 miles east nuggets" of replacements of fossil shells by cinna- cropjlevel interval 70 ft. in of Cambria. Alti- bar and some native mercury associated with the upper workings and 50 ft. in low- tude 500 ft. San cinnabar. The ore shoot has a maximum horizontal er workings. Mined by top slice Luis Obispo County. extent of 500 feet and a thickness of 15-40 feet. method. Ore is crushed in 2 Her- The mine workings are in rocks of :liocene age. cules-Blake jaw crushers at the Reserves total several thousand tons of low-grade portal of 400 level, transported ore averaging 0.1 to 0.15% Hg. by 2,600 ft. aerial tramway to furnace plant. Gould rotary fur- nace 75 ton per 24 hours, capaci- ty, calcined ore trammed to dump in cars hauled by small gasoline. locomotive. California Prod. 12. Socrates Mine Contact Quicksilver Co. The mine workings are along the sheared northern Mine developed by 6,000 feet of 6 miles southeast United States Control. 1938 12,277 contact of a serpentine dike which cuts the Francis- workings on 4 main levels. from the Geysers, on 1939 11,127 can sandstone. Ore bodies occur along and beneath Rotary furnace of 30 tons daily the divide between 1940 18,629 the contact where native mercury is abundant in capacity. Big Sulphur and 1941 25,714 cracks and fissures in silica-carbonate rock, or is Little Sulphur 1942 29,906 disseminated in the sandstone, and variable amounts Creeks. Sonoma 1943 33,812 of cinnabar nearly everywhere accompanying the County. 1944 28,052 native mercury. Grade of ore varies considerably. 1945 21,199 The main ore shoot extends from the surface to a 1946 17,782 depth of at least 400 feet; its average length is about 70 feet. It is rarely over 15 feet wide. The second main shoot fingers out in depth. It was 160 feet long at the surface and extended downward at least 250 feet. Most of the rich ore has been mined. 13. Mt. Jackson Mine Sonoma Quicksilver - The ore shoots are steeplyd9ipping pipes and tabu- Mine developed by 6,720 feet of 4 miles northeast Mines, Inc. lar lodes, and are generally greatest in the verti- workings on five accessible main of Guerneville in United States Control. cal dimension. They are enclosed in silica-carbon- levels. Rotary furnaces of 100 west-central ate rock. Cinnabar is the ore mineral. Grade of tons and 40 tons daily capacity. Sonoma County. ore is about 0.2% Hg. Reserves: Fairly large re- serves of measurable and indicated low grade ore. In addition unexplored ground below old workings appears promising. 14. Great Eastern Mine Magee Mercury, Inc. The ore shoots are steeply dipping pipes and tabu- Developed by about 5,280 feet of 4 miles northeast of United States Control. lar lodes, and are generally greatest in the verti- accessible workings on 3 main Guerneville. Ad- cal dimension. They are enclosed in silica carbon- levels. Rotary furnace of 80 Koine Mt. Jackson ate rock. Cinnabar is the ore mineral. Grade of tons daily capacity. mine. Sonoma ore averages 0.1 - 0.2% Hg. Reserves are small and County of marginal grade. Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 ? No.- on Map Name and Location of Mine or Produc- ing Area Ownership and Nation- ality of Controlling Capital Production Year Flasks o.f 76 pounds ORE DEPOSITS AND ORE RESERVES Geological and Mineralogical Notes and Ore Analysis PRODUCTION METHODS and Plant Capacities TRANSPORTATION Labor Enployed and Other Data CALIFORNIA (Cont'd.) 15. Reed Mine Bradley Mining Co. The mine lies on a northwest trend-fault between 40 ton rotary furnace. 25 miles west from United States Control. serpentine on the southwest and the Knoxville for- The mine is capable of continuing Monticello, 25 miles mation on the northeast. The silica-carbonate rook production for several years. east from Lower Lake, reported to occur along the edge of the serpentine Yolo County. acts as the enclosing rock for the cinnabar deposits and follows a fault zone ranging between-0 and 100 feet ride and extending for a horizontal distance of more than a mile. Ore averages 0.5% - 0.65% Hg. 16. Mt. Diablo Mine Bradley Mining Co. The deposits are in fracture zones near the foot- Mine developed by an adit and a on the eastern slope United States Control. walls of serpentine masses in Franciscan rocks. Ore winze sunk to a depth of 165 feet. of Mt. Diablo about zone is 4,000 feet long, 5 to 15 feet wide, 60 to Two levels below adit, one at 80 10 miles southeast of 650 dip. Meta-cinnabar is the primary ore mineral. feet depth other at 165 feet. Concord, and 4 miles Other constituents of the ore include cinnabar, Mining is also being carried on east of Clayton, marcasite, pyrite, quartz and fragments of country by open pit and glory-hole Contra Costa County. rock. Reserves are small. methods, 2 rotary ?furnaces, a California Prod. new D retort and condensin unit g recently installed 1938 12,277 1939 11,127 17. Knoxville Mine George E. Gamble of 1940 18,629 Ore deposits are roughly pipe-like in form and ex- Mine developed by 2 shafts and Total production 28 miles east of San Francisco. 1941 25,714 tend to a depth of more than 500 feet. Ore is cinna- underground workings. D-retort 120,000 flasks, Lower Lake in the United States Control. 1942 29,906 bar and meta-cinnabar in black silicified serpentine and rotary furnace of 30 tons fourth largest mine northern end of 1943 33,812 and Knoxville shale. Ore averages 0.1 - 0.2% Hg. daily capacity. in California. Wapa County and 21 1944 28,052 nine essentially worked out and abandoned except Opened in 1862. miles west of Monti- 1945 21,199 for remnants of near-surface ore. Dumps largely cello, Wapa County. 1946 17,782 exhausted. 18. Oat Hill Mine H. W. Gould and R. A. Cinnabar occurs in at least 10 separate veins and Mine developed by 21 miles of 9 miles southeast of Hanan. is also disseminated throughout the adjacent zone underground workings with a Middletown, on The United States Control, of highly altered sandstone, particularly below vertical range of 875 feet. Livermore estate, the footwall of the faults. The country rock is Plant consists of 4' x 64' Napa County. kaolinized Franciscan sandstone. Ore averages rotary furnaces. 0.1 - 0.15% Hg. The ore in the Osceola-Fanny and Humbolt areas is, practically exhausted. The Eureka, Manganita, Mercury and Minnesota vein areas are caved or abandoned but could be reopened. 19. Falcon or Santa Falcon Mercury Mine The ore deposit is in a sheet-like body of silica- During dry season ore is mined Acute labor shortage Ynez Mine Corp. carbonate rock which lies along the northwest-trend- by power shovel from open cuts on in 1943. 7 miles northeast United States Control. ing fault in one of the lenses of Franciscan rock. hill. Wet season from 2 tunnels of Santa Barbara on The ore shoots are small, irregular and tabular. in hill. Ore is trammed to Jew north slope of Santa Cinnabar is the ore mineral. Ore averages 0.1 - crusher at mill, then is fed by Ynez mountains. 0.25% Hg. Reserves: 500,000 tons ore indicated. Cottrell feeders into 3 rotary Santa Barbara County. furnaces; 30 tons, and SO tons. Other equipment: compressors; 1 Universal 1/8 yd. power shovel; 2.- 4 ton trucks; 1 - 2 ton truck; 1 P-4 bulldozer; stopers-jack- hammers, etc. Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 w CONFIDENTIAL No. on Map Name and Location of Mine or Produc- ing Area Ownership and Nation- ality of Controlling Capital Production Year Flasks of 76 pounds ORE DEPOSITS AND ORE RESERVES Geological and Mineralogical Notes and Ore Analysis PRODUCTION METHODS and Plant Capacities TRANSPORTATION Labor Hnployed and Other Data CALIFORNIA (Cont'd.) 20. Red Canyon Mine Cachuma Mining Co. The country rock is made up of ribboned, interbedded, Underground workings, mine is 18 man in 1942 - (Red Rock), 16 United States Control. fine-grained greywacke and a shale of Franciscan age. very well - equipped. lane short of labor dur- miles northeast Operated in recent The ore shoots are tabular bodies,up to 100 feet in workings extend to a depth of ing the war. from Santa Ynez and years by National pitch length, 50 feet wide, and 5 feet thick which 500 feet. There are 8 levels, 14.5 miles from the Mining and Milling Co. follow the faults and irregular pipe-like bodies first 4 are worked out. Equip- San Marcos Highway. situated at the intersection of the faults. Cinna- ment consists of 30 ton Gould Altitude 2,800 feet, bar is the most abundant ore mineral with consider- rotary furnace, adequate conden- Santa Barbara County able meta-cinnabar reported. Ore averages 0.23% Hg. ser system, diesel-driven genera- tor. 1 - 12 ton truck; 1 - 5 ton truck. 21. New Almaden Mine New Almaden Corp. Largest all time U.S. This area is underlain by a broad belt of complexly The workings, which underlie an Total recorded pro- 10 miles southeast United States Control. producer. Now of faulted Franciscan sandstone, greenstone and shale, area of 1 square mile, total at duction to end of from San Jose, minor importance. These rocks contain masses of serpentine much of least 50 miles in length and ex- 1940 - 1,040,952 Santa Clara County. Began producing about which has been converted to silica-carbonate, the tend to a depth of 2,450 feet. flasks. 1820. host rock for the cinnabar deposit. The ore aver- Only those above the 800 foot ages 0.1% to 0.2% Hg. Reserves: Fairly large level are accessible. The plant tonnage of low grade ore some of which is marginal consists of a 100 ton rotary and some submarginal ore. furnace. OREI:ON 22. Horse Heaven Mine Horse Heaven Mines, The ore deposits are closely related to volcanic Mine developed by shaft and 9 Short of labor in at the western edge Inc. ,, plugs. The oldest rocks in the vicinity of the mine levels. 50 ton Herreshoff war years. of the John Day United States Control. mines are a series of andesite flows, tuffs, and furnace. Basin where John Day tuffaceous sedimentary rocks, known as the Clarno River turns north, formation. Ore bearing zone is a block 1,200 feet Central Oregon, long and 400 feet wide. Cinnabar is the most impor- Jefferson County. tant ore mineral but there is also native mercury and meta-cinnabar. Ore averages 0.15% Hg. Reserves: Fairly large tonnage of low grade ore. Oregon Production 23. Bonanza Mine Bonanza Mines, Inc. The cinnabar is concentrated in a thin tuffaceous Mine developed by 6,250 feet of Produced 95% of 8 miles east of United States Control. 1938 4,610 sandstone which lies just beneath a shale-siltstone drifts, cross-cuts and edits in Oregon total in 1946. Sutherlin, 196 miles 1939 4,592 member of the Umpqua formation. Ore averages 0.4 - the mine as well as several hun- 8,034 tons mined, south of Portland, 1940 9,043 0.8% Hg. Reserves moderately small as compared to dred feet of inclined shafts. 8,188 tons furnaced Douglas County. 1941 9,032 past production. Plant consists of one 50 ton and 1,261 flasks 1942 6,935 Herreshoff and 2 - 50 ton rotary recovered. 1943 4,651 furnaces. 1944 3,159 1945 2,500 24. Bretz Mine Bradley Mining Co. 1946 1,326 The known ore-bodies appear to have been localized Uses the furnace at the Opalite Bretz Mercury trucked In southern Malheur United States Control. by faults in both lake beds and volcanic rocks. Mine. to R.R. at fcDermitt. County near the Cinnabar is disseminated in minor amounts in both Nevada-State line. rocks but the ore bodies are in unaltered lake beds 20 miles northeast or in argillized tuff. Ore averages 0.64% Hg. of town of McDer- Large reserves averaging about 0.71% Hg. occur along mitt, Nevada, the sides of the old pits and dumps. L Malheur County. Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 ? Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 ? No. on Map Name and Location of Mine or Produc- ing Area Ownership and Nation- ality of Controlling Capital Production Year Flasks of 76 pounds ORE DEPOSITS AND ORE RESERVES Geological and Mineralogical Notes and Ore Analysis PRODUCTION METHODS and Plant Capacities TRANSPORTATION Labor Employed and Other Data IDAHO 25.. Hermes Mine Bonanza Mines, Inc. The ore is in faulted, silicified zone of a lime- In the main mine area the ore By truck to rail- (Bonanza) United States Control. stone member of a large roof pendant of the Idaho does not extend much over 150 ft. head at Cascade, at the head of batholith. The only mercury mineral is cinnabar: below the surface. Shallow work- Idaho, 82 miles. Cinnabar Creek, Deposits well explored. Ore varies - 0.15 - 0.35% Hg ings. Two - 75 ton rotary fur- 7,600 ft. altitude. Idaho Production Reserves: Several years supply of ore averaging naces. In 1946 868 flasks of 18 miles by road 0.34% Hg. mercury were recovered from from Yellow Pine 1938 --- 7,219 tons of ore. and 12 miles by 1939 Not separated road from Stibnite 1940 Not separated in Valley County. 1941 Not separated ? 1942 Not separated 1943 4,261 26. Idaho-Almaden Mine Idaho-Almaden Mines Co. 1944 Not separated The cinnabar is associated with an opalite gangue. The mine is worked by open pit By truck to Weiser, 11 miles east of United States Control 1945 627 The deposit is a replacement of the folded Payette and from several shafts, the on Union Pacific Weiser which is on 1946 868 sandstone and occurs as a blanket from 20 - 40 deepest being 155 feet with System. the Snake River, feet in thickness beneath a capping of impervious levels at depths 30 and 50 feet. 4,000 ft. altitude, shale. Deposit occurs within an area about a mile Practically exhausted. Closed Washington County. long in a northerly direction, and half a mile wide. dawn several years ago. Grade 0.33% Hg. Reserves are reported to be small. NEVADA 27. Cordaro Mine Cordaro Mining Co. The ore body is in clays and tuffs which overlie Underground workings are over Largest producer in near the Nev-Oregon United States Control. rhyolitic lavas. Cinnabar is distributed over a 1,200 feet in extent. One ore state for many years. line, nearest town north-east trending area about 300 feet wide and body ranged from 10 to 15 feet in Second largest in is McDermitt on 3,500 feet long. Low grade ore. Reserves small. width and extended 80 feet below the U.S. in 1945. highway U. S. 95, Churn drilling disclosed a new ore body at 600 feet. the surface. 120 ton Herreshoff northern part of furnace. Humbolt County. Nevada Production 28. White Peak Mine James 0. Greenan, 1938 336 Two types of deposits: Mine developed by a 112 foot 67 miles southeast United States Control. 1939 828 1. Cinnabar-bearing fault zones in rhyolite. shaft and 325 feet of drifts and from Winnemucca, 1940 5,924 2. Pre-Tertiary rocks and cinnabar bearing diabase cross cuts. 10 ton rotary fur- Humboldt County. 1941 4,238 dikes. The ore shoots in the diabase dikes are nace. 1942 5,201 as much as 60 feet long, 40 feet down the dip, 1943 4,577 and 8 feet wide. Ore averages 1.5% Hg. Small 1944 2,460 reserves of low grade ore. 1945 4,338 1946 4,567 29. Red Bird Mine Fred C. Bacon, The workings of the mine are in upper-Triassic lime- Vine developed by surface cuts Closed in August 1 mile from Tusca- Twin Falls, Idaho. stone conglomerate and shale. Cinnabar occurs as and adits. Most of the ore 1945. rora, Elko County. United States Control. high grade pods and in masses of limestone-conglom- comes from a stope 10 feet wide, crate with many mineralized calcite veins forming 150 feet long and extending 70 low grade deposits. No developed ore reserves, min- feet up the slope from a level ing keeps pace with exploratory work. 30 feet above the haulage level. 6-tube retort furnace. Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 ? No. on Map Name and Location of Mine or Produc- ing Area Ownership and Nation- ality of Controlling Capital Production Year Flasks of 76 pounds ORE DEPOSITS AND ORE RESERVES Geological and Mineralogical Notes and Ore Analysis PRODUCTION METHODS and Plant Capacities TRANSPORTATION Labor Deployed and Other Data NEVADA (Cont'd.) 30. Pershing Mine 22 Pershing Quicksilver Upper Triassic sediments cut by a few diabase dikes Mine developed by edits and Idle in 1945 miles from town of Lovelock Co. United States Control and sills of Jurassic age. Ore bodies occur where shafts. There are 6,135 feet of . , Pershing County. . cinnabar is either in closely spaced disseminated , main workings. Plant consists of crystals or fills numerous fractures. Most of the a 60-ton Herreshoff furnace and a orebodies lie within the conglomeratic dolomite just 50-ton rotary furnace. above the buff sandstone. The main ore body is about 700 feet long, 15 feet wide, and 40 to 50 feet deep. Grade - 0.13% Hg. ARKANSAS 31. Humphreys Gold Corp. Mi Humphreys Gold Corp. Several hundred feet of sedimentary strata which are By truck to Amity on Missouri Largest roducer in ne 16 il United States Control. Arkansas Production divisible into two formations (1) the Jackfork sand- Pacific R.R. 10O-ton Rotary p state durin the war m es southeast stone and (2) the Stanley shale, both are of Pennsyl- furnace. g . from Amity by road, 1938 Not separated vania age. They are highly deformed. The mineral- Clark County. 1939 364 ized zone is 5,200 feet long, 150 feet wide and 40 1940 1,159 to 250 feet deep. Ore averages 0.25 to 0.5% Hg. 1941 2,012 1942 2,392 32. Parker Hill Mine Arkansas Quicksilver 1943 1,532 The Parnell Hill mine is opened near the top of the 15-ton Rotary furnace. and Parnell Hill Co. 1944 191 Gap Ridge sandstone. The ore is near the upper- Mine United States Control. 1945 Not separated sandstone-shale contact. They are of Pennsylvania 6 miles northwest I 1946 Not separated age. Reserves: None in sight. of Murfreesboro, 24 I miles from Amity. Pike County. ARIZONA Arizona Production 33. Mazatal Mts. 1938 Not separated Pine Mountain Mercury 1939 Not separated Not reported. Ore averages 0.15 to 3.3% Hg. During Mine developed by a 210 foot ver- deposits 65 miles south of Mines Co, 1940 740 Pine Mountain Mine the last two years the Ord mine in Gila County has ' tical shaft and several thousand Mesa, 85 miles . 1941 873 United States Control been Arizona s only producer. feet of drifts adits and open southwest of Phoe- . 1942 701 cuts. 50-ton rotary furnace and x. Maricopa 1943 541 a 30-ton Foster paddle-conve or y C 1944 548 - type furnace. y. 1945 Not separated 1946 95 TEXAS 34. Fresno Mine Harris Smith, Homer 17 miles from Ter- lin a 102 mile Wilson. U it d St t Cinnabar is found in marine Cretaceous rocks which Medium size rotary furnace. Largest producer in g , s n e a es Control. are overlain by Tertiary volcanic floors and inter- Texas in 1944 from Alpine, Presidio Count calated continental conglomerates. Most of pro- . Inactive in 1945. y. duction has come from the contact of the Devils River limestone and Del Rio clay but some deposits are in or along steeply dipping calcite veins and raults. Ore averages 0.99% Hg. Reserves are small. Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 ? CONFNTIAL No. on Map Name and Location 'of Mine or Produc- ing Area Ownership and Nation- ality of Controlling Capital Production Year Flasks of 76 pounds ORE DEPOSITS AND ORE RESERVES Geological and Mineralogical Notes and Ore Analysis PRODUCTION 1,tEIHODS and Plant Capacities TRANSPORTATION Labor Employed and Other Data TEXAS (Cont'd.) 35. Study-Butte Mine Texas Mercury Co. Deposit is found along a sharply upturned edge of a Four main levels explore over 3 at the town of United States Control. Texa;. Production sill-like intrusive. The cinnabar occurs in nearly miles of mineralized area. Most Study-Butte, 90 vertical fractures in the intrusive and in irregular of the stopes are 5 to 10 feet miles from Alpine, 1938 Not separated bodies along its contacts. Ore averages 0.75% Ag? wide. Only a few are longer than 95 miles from 1939 Not separated 200 feet or higher than 50 feet. Marathon, Brewster 1940 Not separated The ore is hand sorted. Two- County. 1941 Not separated medium size rotary furnaces. 1942 Not separated 90 miles by truck to Alpine, 1943 1,769 shipping point. 1944 1,095 1945 2,099 36. Chisos Mine United States Control. 1946 --- Several thousand feet of Cretaceous sedimentary 3 main shafts explore an area Since 1897 produced 65 miles by road Operator: The Espera- rocks which are intruded locally by igeous rocks. of !.-square mile. The vertical more than 100,000 from Alpine, do Mining Co. which The ore deposits consist of cinnabar in calcite extent is 840 feet in the eastern flasks. Brewster County. also has the Waldron veins, in breccia zones, and in blanket bodies along part of the mine and 800 feet in mine in Brewster County, favorable stratigraphic horizons. Ore is low grade. the western part. 100 ton rotary No known reserves. furnace. MEXICO 37. San Isidro Mine Mercurio Mexicano S.A. Anticlinal structure in limestone and shale with Developed by 100 foot shaft and 100 workmen in mine. Nuevo Mercurio dis- Mexican Control. cinnabar in veins and bunches 3-12 ft. wide following 300 feet of drifts along vein. 10 workmen in plant. trict, 10 miles via 1942 250 per mo. fracture zones. Ore averages 0.5 - 2% Hg. Reserves: Air drills. Hand methods. 2-40 dirt road from Opal 1943 3,000 33,000 tons of measured ore. ton Nichols-Herreschoff furnaces. on Mexican-El Paso 10 mile dirt road to Opal. Railroad. State: Shipped from Opal, Zacatecas to Zacatecas. Laredo, Texas. Sold to Financi- ra Miners. 38. Buenos Aires Mine Oro Plata y Mercurio Irregular veins with cinnabar in stringers and Shaft 100 feet deep with 330 feet Production to 1942 also Villa Rica Mine S.A. 1942 100 er mo bunches following fracture zones in limestone and of levels on vein. Hand methods. was 750 flasks. 50 and San Jose Mine Mexican Control. . p shale. Ore averages 0.3% Hg. 1-40 ton Nichols-Herreschoff fur- workmen at mine. at Nuevo Mercurio nace. 10 miles by dirt road to 10 workmen in plant. Diet. State: Opal, by truck. R. R. to Laredo, Zacatecas. Texas. Sold to Financiers Miners. 39. El Coyote Mine Carlos Sarabia. Owner. Fracture zones in limestone and shale. Vein of var- Shallow workings along vein. Total production to and others. Mexican Control. 1942 100 per iable width. Cinnabar in stringers and bunches. Ore Mining by hand methods. One 1942 was 1,000 flasks. Nuevo Mercurio Diet. month averages 0.4% Hg. Nichols-Herreschoff 40-ton furnace. States Zacatecas. Mercury shipped 10 miles by truck to Opal, Zacatecas thence by R. R. to Laredo, Texas. 40. La Cruz Mina Cis Miners Sain Alto Folds and fracture zones in sandstone and shale. Vein developed to 400 ft. depth Entire production Sain Alto District. Owner-Operator. 1942 200 per Cinnabar in veinlete in enriched zone 150-300 feet and 300 feet in length. Air drill during the war sold Reached by R.R. via Mexican Control. month deep. Grade of ore varies from 0.5 - 2% Hg. Diesel hoist. Concentrated to to Financiers Miners. Durango branch to 80% Hg. by Denver Flotation unit. Total production to Cantuna. 2-tube retort furnace. Mercury 1942 was 3,000 flasks; States Zacatecas. shipped 6 miles by truck to R. R. 100 workmen in mine. 50 workmen at smelter. Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 ? Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 W Go No. on Map Name and Location of Mine or Produc- ing Area Ownership and Nation- ality of Controlling Capital Production Year Flasks of 76 pounds ORE DEPOSITS AND ORE RESERVES Geological and Mineralogical Notes and Ore Analysis PRODUCTION METHODS and Plant Capacities TRANSPORTATION Labor Deployed and Other Data MEXICO (Cont'da 41. Unidad Benificidora Unidad Benificiadora 1942 10-12 per Fracture zones in sandstone and shale. Cinnabar in Underground mining, along vein, Mercury shipped by Sain Alto district. Sain Alto month veinlets of variable width, mine workings are hand methods. Small retort fur- truck 16 miles to Reached by R.R. via Mexican Control. shallow. nace. Cantuna. R.R. to Durango branch to Laredo, Texas. Sold Cantuna. Road 10 to Financiers Minera. miles to Sain alto then 6 miles to mine. State: Zacatecas. 42. Carlos Fernandez Carlos Fernandez 1942 100 per Fracture zones in sandstone and shale; veins of Deposit developed to depth of Mercury shipped by Property. Sain Owner-Operator. month cinnabar in stringers and bunches of variable width. 100 feet and 200 feet in length. truck 15 miles to Alto District. Mexican Control. Ore averages 1 Hg. Hand mining methods. Denver Cantuna, Zacatecas; 5 miles by road Flotation equipment. R.R. to Laredo, Texas from Sain Alto mine. Sold to Financiers State: Zacatecas. Minera. 43. Felipe Martinez Felipe Martinez 1942 30 per Fracture zones in sandstone and shale. Cinnabar in Deposit developed to d epth of Mercury shipped 16 property. Mexican Control. month stringers and bunches 2 - 6 feet wide. 150 feet and length of 150 feet. miles to Cantuna by 6 miles by road to Hand mining methods. Retort fur- truck then R.R. to mine from Sain Alto. nace 5De type, 11, tons capacity. Laredo. Sold to State: Zacatecas. Financiers Miners. 25 workmen employed. 44. Canoes Mine Thomas B. Miller and 1942 about 100 Fracture zones in rhyolite. Cinnabar in veinlets, Mine developed by 2 shafts, 130 Mercury shipped 12 Reached via Loreto Enrique Lopez, owners. per month quartz gangue, ground honeycombed by holes. Average feet deep, mined by hand. Gaso- miles over dirt road on Aguascalientes Mexican Control, grade .3 to 1% Hg. line hoists. 1 - 40 ton Nichols- to Loreto by truck San Luis Potosi R.R. Herreschoff furnace. 5-pipe re- then to Laredo, Texas and 12 miles via tort furnaces. by R.R. Sold to dirt road. Credito Minero. State: Zacatecas. Large past production. 150 men employed. Diesel power. 45. Santa Brigida Mine Pablo Parkman, Owner. 1943 Est. 100 Two well-defined veins in limestone and shale con- Veins developed 200 feet in To Pozos by truck. 2 miles east of Soc. de Mineros Mexi- per month taining cinnabar, calcite and quartz. Veins are 3 depth and 650 feet in length. R.R. to Laredo, Pozos, R.R. to cones - Operators. and 10 feet in width. Ore varies from 1 to 5% Hg. Mining by hand methods. Flo- Texas. Sold to Pozos, via good Mexican Control. tation plant. 15-ton Scott fur- Credito Minero and dirt road to mine. nace and 7-ton pipe retort fur- Financiers Miners. State: Guanajuato. nace. Several hundred tons of mercury already produced. Also some copper. Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 CONFIDENTIAL No. on Map Name and Location of Mine or Produc- ing Area Ownership and Nation- ality of Controlling Capital Production Year Flasks of 76 pounds ORE DEPOSITS AND ORE RESERVES Geological and Mineralogical Notes and Ore Analysis PRODUCTION METHODS and Plant Capacities TRANSPORTATION Labor Employed and Other Data MEXICO (Cont'd.) 46. San Antonio Mine Tobias K. Guzman and 1943 20-30 per Masses and stringers of cinnabar over large area in Several stopes open to the cur- Mercury shipped 12 Guadalcazar district Associates, Owners. month limestone. face. Shaft 400 feet deep. Gam- miles by truck to 2 miles south by Mexican Control. businos style mining over old Antiquo Morelos then southeast of Trini- stopes, pillar robbing. 51 miles to San Luis dad. State: San Luis Potosi. R.R. to Potosi. Laredo, Texas. Ez- tensive old mine. Past production said to be very large. 50 workmen mine. 50 workmen smelter. 47. Guadalupana-Dulces Information not avail- 1942 10 per Mineralized fracture zones in limestone and marl. "Gambusino" method of mining. Nombres Mine able. month Cinnabar in stringers and pockets of variable width. 20 ton flotation plant. Several 12 miles southwest Known and probable reserves 50,000 tons 0.2% Hg. pipe furnaces. of `Sootezuma, reached by R.R. to Montezuma then 12 miles poor road to mine. State: San Luis Potosi. 48. Linterna Mines Group C.D. Moll and 1942-3 40 per Mineralized fractures and bedding planes in cong:om- Leased to "Gambusinos" for 50% Mercury shipped by Cusrenta district, Jesus Paiz, opera- month erate beds overlying granite. Total reserves all of production. truck 25 miles to 25 miles south of tors. Cie &plot. de classes, 200,000 tons - 0.3% average grade. R.B station at Rosario. Villa Cinabrio. . State: Durango. Durango, Sr. Paul Rosario. Balleros, Owner. Mexican Control. 49. La Cruz Mine Compania Ecplotadora 1940 1,287 Extensive lenses and fissure fillings in dolomite. Mined underground by open-stope Concentrate" Huitzuco group, de Mercurio de Huit- 1941 1,349 The ore mineral is livingstonite, a sulfide of mer- method. Flotation plant; distil- shipped by truck 16 about 16 miles east zuco, S.A. Owners and 1942 821 cury and antimony. Average grade 0.13% Hg., 0.60% lation plant - 8 units. miles to Iguala of Iguala. Operators 1943 882 Sb. The only deposits of livingstonite exploited thence to Tlalne- State: Guerrero. commercially, beside those at Huitzuco, are in the pantla for refining. USSR. Production prior to ? World War II, 70,000 flasks. Employed about 300 persons in 1941. Grade of ore declining, 50. Huahuaxtla Mine Dodero Bros. Owners 1942 250 per Cinnabar in veins from a few inches to 30 feet in Veins developed to 170 feet in Shipped from Iguala about 20 miles and Operators. Com- month width in limestone and shale. Average grade of ore depth and 1,600 feet in length. to Laredo by R.R. north of Iguala, 12 pania Explotadora de is 0.3% Hg. Hand mining methods. 100-ton Past production miles south of Tax- Mercurio de Huahuaxtle, Nichols-Herreshoff furnaces. large. co. Reached via S.A. C.P. Mercury. Vex-Acapulco R.R. Mexican. State: Guerrero. Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 No. on Map. Name and Location of Mine or Produc- ing Area Ownership and Nation- ality of Controlling Capital Production Year Flasks of 76 pounds ORE DEPOSITS AND ORE RESERVES Geological and Mineralogical Notes and Ore Analysis PRODUCTION METHODS and Plant Capacities TRANSPORTATION Labor Hnployed and Other Data MEXICO (Cont'd.) 51. El Moral Mine Cia Minerales Mex 1942 30-35 per Cinnabar in veins and disseminated in rhyolite. Shallow open out mining, hand 15 miles northwest Lessees and operators, month Ore averages 0.25 - 0.33% Hg. Estimated reserves methods. of Mascata, 10 Mexican in 1943 16,000 tons 0.3% Hg. miles by burro to mine. States Jalisco. PERU 52. Chonta Mine Panaminas, Inc. opera- Cinnabar occurs in cavity fillings and a few narrow Hand mining, underground Property is very Chonta District tors, a subsidiary of veins in sedimentary rocks. Grade of ore varies workings, ore is hand sorted. inaccessible. 40 miles southwest. Ventures Ltd. of Peru Production between 0.3 - 0.9% Hg. Reserves are small. 20 ton daily capacity Gould Grade of ore is of Huanuco. Canada. 1941 --- rotary furnace installed in lower than ex- Prov. Dos de Mayo. United States Capital 1942 145 1942. Furnace is coal fired, pected. Altitude: 14,600'. Control. 1943 326 1944 152 1945 209 53. Santa Barbara Mine E. E. Fernandini 1946 5 Irregular pockets of cinnabar in nearly vertical Extensive underground work- Mercury shipped by 2 miles south of Owner, sandstone-limestone beds of Cretaceous age. Ore is ings. Mill planned for 250 truck to Huancave- the town of Peruvian Control. low grade but the tonnage is large. Reopened in tone per day; 2 Gould fur- lice, rail to Huancavelica. 1943. naces and a hydroelectric Callao. Prov. of Huancave- plant of 750 kw. capacity Discovered in 1570 lice. were started in 1943. and worked by Altitude: 12,250'. Spaniards. CHILE 54. Punitaqui Mine Cia.Minera Punitaqui 1938 44 Gold occurs in a mineralized sheer zone, 30 feet wide Deposit developed by an adit Gold-copper concen- 22 miles southwest Chilean owned and 1939 100(Est) and 2,500 feet long, in porphyry. The zone has a 2,500 feet long, a shaft 500 trates transported of Ovalle, Prov. managed. Headquar- 1940 100(Est) N - S strike with a 60? dip. Cinnabar occurs in feet deep, and 4 levels 135 feet by railway to of Coquimbo, Cen- ters: Calla Agus- 1941 1.305 northern part of the mine workings. Ore contains apart. Ore mined by cut-and-fill Chagres Copper tral Chile. tines 925. 1942 2,256 from 6 - 9 gr. Au, 0.01 - 0.07% Hg, 0.6 - 0.8% Cu. method. Flotation plant of 400 smelter; mercury Santiago, Chile. 1943 2,561 Reserves in 1942: Measured ore 300.000 tons, indi- tons daily capacity. Ore con- sold to Metals 1944 1,181 cated ore 600,000 tons. taining cinnabar is treated in Reserve Co. during 1945 862 distillation furnaces. the war. 1946 500(Est) GERMANY 55. Lendsberg Mine German Control. 1938 1,363 Cinnabar disseminated in a melaphyre lava bed. 2 revolving tube furnaces The property At Obermoschel 1939 1,102 Country rock is Permian. Ore averages 0.2%.Hg. 200 tons daily capacity. closed down at near Bingen. A 1940 870 Reserves not reported. 8096 recovery. the end of 1942 port on the Rhine, 1941 522 presumably because southwest Germany. 1942 500 sufficient mercury 1943 --- was being received 1944 --- from Italy. Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 0 No. on Map Name and Location of Mine or Produc- ing Area Ownership and Nation- ality of Controlling Capital Production Year Flasks of 76 pounds ORE DEPOSITS AND ORE RESERVES Geological and Mineralogical Notes and Ore Analysis PRODUCTION METHODS and Plant Capacities TRANSPORTATION Labor. Maployed and Other Data CZECHOSLOVAKIA 56. Mariabana and Before the war- 1937 2,750 Accurate information on the deposits is lacking. Accounts for practically all Output largely Mernik Mines French capital, is 1938 2,900 Average grade of ore is 0.3% Hg. domestic production. consumed domesti- near Vranov and Cinabre Quicksilver 1939 2,669 cally but small Teplov. Co. 1940 2,582 amounts have been in Slovakia. 1941 1.500(Est) exported. 1942 1,500(Est) YUGOSLAVIA 57. Idria Mine Rudnik Ziveta Sreba 1936 8,928 Veinlets and dissemination of cinnabar in fractured 4 shafts with 13 connecting Number of work- Province of owned by the Yugo- 1937 8,230 schist and dolomite beds forming a syncline. Min- levels; depth of about men in Gorizia in foot- slay Government. From 1938 until eralization extends over length and width of few 1,300 feet; cut-and-fill Mine Plants hills of Julian Formerly operated by the end of World thousand feet and minable ore is up to 30 feet in mining method used. Ore 1936 541 82 Alps, 25 miles R. Miniere di Idria War II annual pro- thickness. Average grade 0.6% Hg. from 1938-43. Ore hand sorted, coarse goes to 1937 520 80 northeast of of the Italian Govern- duction about reserves limited to less than 10 years at present vertical furnace and fines Mercury marketed Trieste. Ceded ment. 8,500 flasks. production rate. Explorations to northwest and south- to rotary furnace. Distill- by Cartel agree- to Yugoslavia east of deposit have not found new areas of minable ing temp. 800? F. meat with Spain after World War II. ore. until taken over by Yugoslavia. ITALY 58.(a) Abbadia San Salva- S. A. Min. Monte 1936 33,729 The mineralized region covers an area of faulting Mine on east slope of Mt. Shipped by rail tore Mine Amiata 1937 58,666 18 miles long by 6 miles wide. The Mt. Amiata Mine Amiata is developed by from plants to 2 miles north of Italian Government For the period is at the north end and the Siele group in the adits and shafts, cut-and- Port of Livorno the town of Abbe- Control. Through 1938-43 Monte middle of the zone. Within this region the only fill mining used. Waste is for export. dia San Salvatore, Agrarian Sank and Amiata mined 46% igneous rock considered to be of importance is the sorted from the ore in the Number of workmen Province of Siena. the Iri Holding of Italy's total; Tertiary Trachyte lying to the north of the Siele stopes and used for back in Workings 2,400 to Trust. Siele 32%; others concession. Sedimentaries, consisting of limestone, filling. Compressed-air Mine Plants 3,400 ft. above in Tuscany i%, Idria shale and sandstone underlie the greater part of the rock drills and electric 1936 1,099 284 sea-level. 15%. district - the most widespread and most important locomotives were temporarily 1937 744 273 to ore deposition are Eocene. Clays, derived from replaced at end of war due Wood fuel used in the limestone, are probably residual in old lake to power shortage. Tower furnaces with some beds and at Siele were important sources of ore. furnace for lump ore and charcoal and coal. Ore occurs near the fault zone in all Tertiary Cermak - Spirek (similar to formations, as veinlets in limestone, and dissemi- Scott) for fines. nated in sandstone, where it selectively replaces calcareous cement along cracks and fractures. Al- (b) 58 Siele Mines Stabilimento Miner- 1937 18,009 though relatively small at Siele, the individual The Solforate section is de- Haulage is by elec- . C arpine Siele, ario del Siele 1938 17,008 ore bodies are numerous and rich. The cinnabar va- veloped by 3 main shafts to a tric locomotives li Solforate del Siele, Capital: 32,947,200 1939 22,011 ries from a dark red, crystalline to a light red depth of 650 feet, connected miles to the treat- Grande Putizza, lire. 1940 41,479 powdery mineral. Pyrite and marcasite are present by seven major levels over a ment plant at Siele, Abetoso Nibbio Control held by 1941 39,020 with calcite, quartz and gypsum the gangue minerals. total length of about 3000 Labor: 600 men in about 100 miles by Giovanni Armenise 1942 27,013 The average grade of ore mined at Siele in the last feet and across a width of 175 1946, 500 under- road northwest of Italian Capital. 1943 16,658 ten years has varied between 1.86% and 4.75%. The feet. Mining is confined to ground, 250 on the Rome. 1944 1)7,776 average grade of ore mined at Siele in 1945 was the Solforate section with the surface and 24 sal- On the border of 1945 2)5,817 2.25% Hg. compared to 1.52% Hg. at Monte Amiata. Re- Grande Putizza being developed. any employees. Av- Siena and Grosseta serves at 'Monte Aoniata are reported to be sufficient Stoping is principally by the erage wage 11.60 Provinces. l)for 5 months for several decades at the normal rate of production. horizontal cut-and-fill method (1946). Power con- Altitude: 1,500 - Jan.l-May 31. Measured reserves of Siele are 224,650 flasks, all of which is adapted to fairly hea- sumption 110,000 2,200 feet. 2)for 7 months which is in the Solforate del Siele mine; indicated vy ground such as at Siele. to 130,000 kwh per June 1-Dec 31 120,000 flasks, and inferred 375,000 flasks.. There are 5 Spirek furnaces month, purchased at . . with a capacity of 16 tons per 53? U.S. per kwh Operations were sus- day and 3 with a capacity of 24 in 1946. pended from May 31, tons. Recovery is 93%. About 1944 to June 1, 1946 260 pounds of wood is consumed because of the war. per ton of ore. Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 ? Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 CONFIDENTIAL No. on Map Name and Location of Mine or Produc- ing Area Ownership and Nation- ality of Controlling Capital Production Year Flasks of 76 pounds ORE DEPOSITS AND ORE RESERVES Geological and Mineralogical Notes and Ore Analysis PRODUCTION METHODS and Plant Capacities TRANSPORTATION Labor Employed and Other Data ITALY (Cont'd.) 59. Cerreto Piano Mine Soo. It. An. Mercurio. 1936 .1,055 Cinnabar disseminated in Eocene limestone beds and Mine developed by several edits, Number of workmen in Near the village of Italian Control. 1937 974 Pliocene sandstone beds similar to Siele. Ore lower and about 10,000 feet of drifts Mine Plants Cerreto Piano, grade, averages 0.5% Hg. Developments limited. Ore and crosscuts. Considerable 1936 189 21 Province of Grosseto. reserves unknown. mine timber necessary. Cermak- 1937 144 15 Spirek rotary furnaces. SPAIN 60. Minas de Almaden Consejo de Administra- 1937 28,357 The ore occurs in 3 definite quartzite beds of Mine is served by 3 shafts, two Mercury is shipped 130 miles southwest cion de las Minas de 1938 41,409 Silurian marine origin about 80 feet apart and rang- to 14 level (1250 feet), third to ports via the of Madrid, 65 miles Almaden and Arayanes, 1939 35,912 ing in width from 20 to 40 feet. The strata dip to 12 level is for ventilation. Madrid-Alicante R.R. north of Cordoba, a dependency of the 1940 51,803 from 70? to vertical, are fractured, and are inter- Levels are 60 to 90 feet apart. Labor is wasted and Province of Ciudad Treasury. The council 1941 85,523 stratified with bituminous slate. Cinnabar and free All of the ore above the 12th labor cost is 80% of Real consists of 7 members 1942 70,034 mercury are disseminated between the grains of sand level has been mined. Horizontal the total; 2400 men Mineral rights con- appointed by the min- 1943 47,016 in the quartzites and also occur in pockets and extension is limited by faults. are employed where sists of a circle of istry, comprising a 1944 34,200 fissure fillings. There is some pyrite, calcite and Length on upper levels is 600 800 would be suffici- about a 15 mile radi- president, 2 mining 1945 40,694 sericite. The three mineralized quartzite beds are feet and 300 feet on lowest lev- ent. 2 other mines us from the San Teo- engineers, 1 industri- 1946 41,000 (Est) known as the San Pedro - San Diego, San Francisco, els. A modified cut-and-fill produce less than 2% doro shaft. al engineer, 1 lawyer, 1947 9,229 First and San Nicolas, and are usually mined from slate method of mining is used. Mine of the country's 1 finance expert and 6 months wall to slate wall. Grade of ore averaged 6.5% from pillars and shafting are of stone total. Workers are a representative of Production from 1500 1940-45. Measured reserves were reported in 1945 at masonry. There are 16 coal-fired paid a continuous the miners, to 1946 6,622,434 250,000 tons, 6 to 8kg.; and indicated, 650,000 tons shaft furnaces, 8-10 tons daily monthly wage for flasks. No accurate over 2 Hg. This would total about one million capacity, for coarse ore, and 8 working only 8 shifts record from 375 B.C. flasks. Large tonnage of inferred ore occurs but oil-fired furnaces, 8 tons capaci of less than 6 hours to 1499 A.D. estimates are not available. ty, of the Cermak-Spirek type each, because of the - for fines, with top feed through local fear of poison- baffle tiers. Recovery reported ing. to be 92%. Plant capacity is about 10,000 flasks per month. ALGERIA 61. Ras-El-Ma Mines near Soc. Min, Francaise Du 1938 191 Cinnabar with sulphur disseminated in beds of marl Mined by edits and open-stopes. Mercury transported main road between Mercure. 1939 256 and clay. Ore averages less than 0.5% Hg. Reserves 50-ton flotation plant con- by rail from mine Constantine and Headquarters: Par Jasi- 1940 791 estimated in 1940 at 100,000 tons. 0.4% - 0.5% Hg. strutted in 1940. Only used one to Phillipeville. Philippeville. De- mapes. 1941 147 single retort in recent years. Diesel power plant, partment of Constan- Operator Edmond Wells. 1942 121 88 workmen in 1943. tine, Northern Control not known. 1943 146 Algeria. 1944 165 Let. 340 2'N. 1945 326 Long. 2? 5'W. 1946 340 UNION OF SOUTH AFR1OL 62. Monarch Kop Mine The Monarch Cinnabar 1938 Not producing Cinnabar occurs with quartz and calcite in beds of A concentrating plant was con- Supplied all domestic Letaba district, (Pty.) Ltd. 1939 Not producing calcareous chloritic schists 15-20 ft. thick. The structed in 1942. There are 2 needs and started to Murchison Range, British Control. 1940 42 beds are exposed for several hundred feet along sur- small rotary furnaces at the export small amounts East of Gravelotte. 1941 204 ^ face. Mine closed dawn recently due to drop in mer- property. The mine was dis- in 1943. Mercury Eastern Transvaal. 1942 5 .9 cury price and exhaustion of developed reserves. covered in 1936 and began produo- shipped via Selati 119443 1,1889 94 l' 2 The company received a loan from the government to develo s th t ing in 1940 to port. Railway, 1 5 85 p e proper y. Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 ? Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 CONFIDENTIAL No. on Lap Name and Locgtion of Mine or Produc- ing Area Ownership and Nation- ality of Controlling Capital Production Year Flasks of 76 pounds ORE DEPOSITS AND ORE RESERVES Geological and Mineralogical Notes and Ore Analysis PRODUCTION METHODS and Plant Capacities TRANSPORTATION Labor Employed and Other Data TURKEY 63. Ahirli and Karareis Karareis Civar Islet- 1937 483 Vein deposits of cinnabar at shallow depths in "-"orked by underground and open Reported capable of Mines mesi Limited Birketi 1938 597 Cretaceous limestones and in 7iocene basalt. Grade out methods. Treatment pleat producing 6000 near Izmur on the Turkish capital. 1939 359 of ore averages 0.33% Hg. The Karareis property is 250 to 275 flasks per month flasks of mercury Aegean Sea. Prov.of Formerly state parti- 1940 500 said to be richer than Ahirli. These are the only capacity. Mines need crushing per year. Turkish Izmur. Both mines cipation. 1941 242 Turkish mines from which mercury is regularly equipment, new furnace and new army principal buyer are on the Karaburnu 1942 176 mined although deposits have been reported near haulage system. during the war. Peninsula which juts 1943 186 Odemis, and in Ushak (Usak) district near Konya at into the Aegean sea. 1944 97 the Baltali Line. 1945 158 1946 --- U. S. S. N. 64. Nikitovka Mines Nikitovka Combine 1933 6,723 Vein deposits of cinnabar, accompanied by quartz, Before the war, a flotation Mine was being at Nikitovka 19 mile Russian State Control. 1934 7,743 chalcedony, and kaolin. Average grade of ore is plant was used to raise the rehabilitated after south of Artemovsk, 1935 8,700 (Est.) 0.23; Hg. Reports on reserves differ and their grade to 15-20% Hg. The re- recapture by Soviet 245 miles south of 1936 8,700 (Est.) accuracy cannot be determined. duction plant was removed prior troops. Kharkov. Don Basin, to occupation by the Germans. Ukraine 480 40' N 38? 00' E. 65. Khaidarkan deposit, Antimony Mercury Com- 1943 5,000 (Est.) At Khaidarkan, cinnabar occurs with quartz, Potential production of these After the loss of Osh Oblast, Kirgiz bine, Im Frunze. some stibnite, chalcedony and florite in deposits was estimated at Nikitovka in 1941, 390 58' N 710 20' E. Russian State Control Paleozoic rocks. The ore mineral at Turgai 6000 flasks annually in 1943. there was an inten- Chauvai Deposits, in Kazakh is livingstonite, an antimony- sive development of Osh Oblast, Kirgiz mercury sulfide, while at Chauvai it is mercury deposits in 400 08' N, 720 10' metacinnabar. Total mercury reserves of USSR. E. these deposits is reported to be very large. 66. Oirotiya Deposits Russian State Control Ore is cinnabar disseminated in limestone Potential production estimated near Chagan-Uzun and accompanied by pyrite, stibnite and at 2500-3000 flasks in 1943. Altai Krai, Oyrot calcite. Aritovo. 50? 05' N, 88? 25' E. CHINA 67. Hunan Prov. Deposits Controlled by National 1938 435 These deposits are part of the Chinese mercury Ore is mined by hand. Methods During the war mer- at Fong-huang, Huang, Resources Commission 1939 4,664 belt 420 miles long by 180 miles wide, extend- are wasteful. After handsorting. cury was shipped to and Ma-yang. 1940 1,447 ing from Restern Hunan, across Kweichou from ore is treated in native retort Kunming by truck 1941 803 northeast to southwest through Yunnan Province furnaces. Technical assistance then by plane to 1942 951 and extending into Evangel and Szechuan Provinces, is badly needed. Russia The mines are small and scattered. Ore averages about 1% Hg. 68. Szechuan Prov. De- National Resources 1938 145 posits. At Yuyaig Commission 1939 174 and Siu-shan. 1940 20 1941 52 1942 52 Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 ? Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 w CONFIDENTIAL No. on Map Name and Location of Mine or Produc- ing Area Ownership and Nation- ality of Controlling Capital Production Year Flasks of 76 pounds ORE DEPOSITS AND ORE RESERVES Geological and Mineralogical Notes and Ore Analysis PRODUCTION METHODS and Plant Capacities TRANSPORTATION Labor Elnployed and Other Data CHINA (Cont'd.) 69. Kweichou Prov. Kweichou Mining Admin- 1938 1,653 The deposits are scattered over an area of about Mined by hand, primitive methods, Mercury statistics Deposits. istration for the 1939 2,552 9 sq. miles. The ore is cinnabar containing small ore is handsorted and treated in reported by the At Tungjen, and National Resources 1940 1,244 amounts of stibnite and native mercury, occurring native retort furnaces. Losses Chinese government Sanho, Wangchai-chaff Commission. 1941 2,755 as an impregnation of certain beds of magnesium vary between 30 and 407. vary considerably Pachai, Tafahtung 1942 3,828 limestone, and along fissures and bedding planes as and are not always and Sunchi, where 1943 3,422 isolated bunches and irregular disseminations. accurate. deposits are known 1944 2,987 as Wang-shah-ohang Tatung-lah and Yehwuping. JAPAN 70. Yamato Mine Teikoku Suigin Kogyo KK, 1938 46 There are 3 veins consisting of cinnabar and gangue The deposit is worked by an in- Mining ceased in 2z miles east of Imperial Mercury Mining 1939 565 minerals along a fault zone in quartz diorite be- clined shaft along the principal September 1945 but Matsuyama village in Co. Ltd. 1940 1117 lieved to be Tertiary age. The veins average only vein. Pine levels driven from mine was kept un- Uda-machi, Uda-gun, Japanese Control. 1941 548 a few inches in thickness but pinch and swell on the shaft. Mining by underhand watered in 1946. Nara Prefecture. 1942 229 both strike and dip. Walls of veins are filled with stoping. Exploited to a depth of Reserves are sub- 1943 247 disseminated cinnabar and are richest where the 150 feet and 700 feet laterally. marginal. Grade of 1944 128 veins split. Laterally the veins split and fade Concentration is by 50 ton flo- ore has dropped con- 1945 27 out. Reserves: Measured 27,257 tons, indicated tation plant, some handpicking. siderably in recent 72,941 tons averaging 0.03% Hg. Concentrates shipped to retort years and mine is plant at Osaka for distillation. practically ex- hausted. 71. Itomuka Mine Nomura Mining Co. 1938 Not operating Cinnabar and native mercury occur in a group of con- Mining is by open out and under- In August 1944 24 miles west of the Japanese Control. 1939 317 jugate shears which split away from a near-vertical ground methods with the latter of during peak opera- town of Rubeshibe 1940 2,156 fault in andesite. The shears dip 20-60o S and have secondary importance. The deposit tions 2,833 workers in Rubeshibe-machi, 1941 3,523 an average length of 200 to 250 feet. Ore is also has been exploited to a depth of were employed of Tokoro-gun, Abashiri- 1942 4,288 found disseminated in the wallrock. The ore min- about 325 feet. There are 2 flo- which 221 were women. shicho, Hokkaido. 1943 4,784 erals are associated with a gangue of marcasite, tation plants, the Motoyuma, a 370 men were in under.- 1944 5,309 quartz, chalcendony, calcite and a little pyrite. pilot plant of 50 tons capacity ground workings and 1945 2,216 Reserves: measured ore - 916,730 tons 0.14% Hg. and the Itomuka of 200 tons (plannrd 606 people worked in indicated ore - 201,000 0.16% Hg. 600 tons). Furnaces - 1 Herre- the open cut. schoff. Retorts were used for high-grade ore, 12 tubes at mine and 6 tubes at Rubeshibe. SOURCES: Files of the Foreign Minerals Division, U. S. Bureau of Mines; Mining Division, U. S. Bureau of Mines; U. S. Geological Survey; Reports of Supreme Command Allies in the Pacific; Foreign Economic Administration; Consular reports of Department of State; and Files of the Department of Commerce. Information was also gathered from Minerals Yearbooksi issues of London Mining Journal, African World, Engineering and Mining Journal, Mining and Metallurgy. South African Mining Journal, the Metal Bulletin, and Mineral Trade Notes from 1940 - 1947. Reports of private mining companies were used for obtaining information on several foreign deposits. Zb / .m-, 191e Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 Doouaont NO. O 61 'O.CHANGE in C1ass. DECLASSIFIED ,ass. CI A CED TO: TS S C DDA I suo, 4 Apr 77 Auth:DDA G. 77/1763 Dato slJrl~.1 _... BY: --- Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7 CONFIDENTIAL U. S. GOVERNMENT PRINTING OFFICE 3342--STATE--1949 Declassified and Approved For Release 2013/01/29: CIA-RDP78-01617AO01600060001-7