COPPER
BY F. W. PAINE
INTRODUCTION
One country stands pre-eminent as the world’s great producer of copper,
and that is the United States, whose production was 60 per cent. of the
total world output in 1917. Iron, coal, oil and copper are fundamental
raw materials of which the United States produces more than any other
country, but only in copper and in oil is the output greater than that
of all other countries together. In copper this has been true since the
early nineties. American copper, English gold, Russian platinum and
Chilean nitrate are common phrases in world markets; as common as the
commodities themselves.
No other country produces or has for many years ever produced one-sixth
as much copper as the United States. While the world output of copper
has been increasing, at the average rate of 5 per cent. annually for 10
years up to 1914 and three times as rapidly since then, the relative
importance of the United States has not declined. On the contrary it
has increased at a greater rate than the total world output. Certain
individual countries, it is true, have since 1914 increased their
output faster than the United States, but there is no indication that
the United States will lose its present dominating leadership.
Because of the magnitude of the copper industry of the United States,
great refining plants have been built up here. American capital also
has gone largely into Canadian, Mexican and South American copper
properties. As a result the United States now imports nearly one-third
as much copper as is produced (18 per cent. of the total world output
in 1917). Thus American capital controls, through refining in addition
to ownership of mines, 78 per cent. of the world’s copper production.
This control should also be equally strong as regards selling.
Obviously, a large part of our domestic, and, as regards statistics,
all the imported copper, is exported in finished form--copper ingots
and bars, brass, electrical machinery, etc. But as regards selling and
even mine ownership in Mexico and South America, there is considerable
German control; although the important mines of Canada, Mexico
and South America are owned by either American, British or French
interests, except those owned by local foreign capital.
TABLE 35.--GEOGRAPHICAL AND FINANCIAL CONTROL OF THE WORLD’S COPPER
MINES
(Production in Metric Tons)
-----+---------+------------------+---------+-----+---------+
Per-| | | | Per-| |
cent-| | | |cent-| |
age | Average | |Estimated| age | |
of |1916-1917| | capacity| of | Owned by|
World|output of| |output of|world| U. S. |
total| copper |Country of origin | copper |total| capital |
-----+---------+------------------+---------+-----+---------+
| |_Western | | | |
| |Hemisphere_ | | | |
59.2| 868,903|United States | 928,000| 57.5| 899,000|
3.3| 49,168|Canada | 58,000| 3.6| 28,000|
3.4| 49,478|Mexico | 65,000| 4.0| 49,000|
1.0| 14,000|Cuba | 10,000| 0.6| ... |
0.2| 2,000|Venezuela | 2,000| 0.1| ... |
4.8| 70,000|Chile | 110,000| 6.8| 86,000|
3. | 43,620|Peru | 45,000| 2.8| 45,000|
0.4| 6,000|Bolivia | 12,000| 0.8| 6,000|
-----+---------+------------------+---------+-----+---------+
75.4|1,103,169|Total Western | | | |
| |Hemisphere |1,230,000| 76.2|1,113,000|
| | | | | |
| |_Eastern | | | |
| |Hemisphere_ | | | |
3.2| 47,500|Africa | 58,000| 3.6| ... |
2.5| 36,550|Australia | 43,000| 2.7| ... |
7.9| 112,900|Japan | 125,000| 7.7| ... |
2.9| 42,000|Spain and Portugal| 42,000| 2.6| ... |
1.3| 18,500|Russia (estimated)| 18,000| 1.1| ... |
4.8| 71,000|Central Powers | | | |
| |(estimated) | 71,000| 4.4| ... |
1.4| 19,000|Norway | 19,000| 1.2| ... |
0.1| 1,000|Sweden | 1,000| 0.1| ... |
0.4| 6,250|Other countries | 6,250| 0.4| ... |
| | | | | |
-----+---------+------------------+---------+-----+---------+
24.6| 354,700|Total Eastern | | | |
| |Hemisphere | 383,250| 23.8| |
-----+---------+------------------+---------+-----+---------+
World| | | | | |
Total|1,456,869| |1,613,250|100 |1,113,000|
100%| | | | | 69[106] |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
-----+---------+------------------+---------+-----+---------+
-----+---------+------------------+------------+-----------+
Per-| | | | |
cent-| | | | |
age | Average | | | |
of |1916-1917| | Owned by | Owned by |
World|output of| | British | German |
total| copper |Country of origin | capital | capital |
-----+---------+------------------+------------+-----------+
| |_Western | | |
| |Hemisphere_ | | |
59.2| 868,903|United States | 29,000 | |
3.3| 49,168|Canada | 30,000 | |
3.4| 49,478|Mexico | Idle | 2,500 plus|
1.0| 14,000|Cuba | ... | 2,000 plus|
0.2| 2,000|Venezuela | 2,000 | |
4.8| 70,000|Chile | 2,500 | 4,500 plus|
3. | 43,620|Peru | | |
0.4| 6,000|Bolivia | | ... |
-----+---------+------------------+------------+-----------+
75.4|1,103,169|Total Western | | |
| |Hemisphere | 63,500 | 9,000 |
| | | | |
| |_Eastern | | |
| |Hemisphere_ | | |
3.2| 47,500|Africa | 58,000[105]| ... |
2.5| 36,550|Australia | 43,000 | |
7.9| 112,900|Japan | ... | ... |
2.9| 42,000|Spain and Portugal| 40,000 | ... |
1.3| 18,500|Russia (estimated)| ... |18,000(?) |
4.8| 71,000|Central Powers | | |
| |(estimated) | ... |71,000 |
1.4| 19,000|Norway | 10,000 | ... |
0.1| 1,000|Sweden | ... | ... |
0.4| 6,250|Other countries | 250 | ... |
| | | | |
-----+---------+------------------+------------+-----------+
24.6| 354,700|Total Eastern | | |
| |Hemisphere | | |
-----+---------+------------------+------------+-----------+
World| | | | |
Total|1,456,869| |212,750 |98,000 |
100%| | | 13.3[106] | 6.1[106] |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
-----+---------+------------------+------------+-----------+
-----+---------+------------------+-----------+--------+--------------
Per-| | | | |
cent-| | | | |
age | Average | | | | Owned by
of |1916-1917| | Owned by |Owned by|local capital
World|output of| | French |Japanese|in producing
total| copper |Country of origin | capital | capital| countries
-----+---------+------------------+-----------+--------+--------------
| |_Western | | |
| |Hemisphere_ | | |
59.2| 868,903|United States | | |
3.3| 49,168|Canada | | |
3.4| 49,478|Mexico |13,500 | |
1.0| 14,000|Cuba | ... | ... | 8,000
0.2| 2,000|Venezuela | | |
4.8| 70,000|Chile | 9,500[105]| ... | 7,500
3. | 43,620|Peru | | |
0.4| 6,000|Bolivia | 6,000 | |
-----+---------+------------------+-----------+--------+--------------
75.4|1,103,169|Total Western | | |
| |Hemisphere |29,000 | ... |15,500
| | | | |
| |_Eastern | | |
| |Hemisphere_ | | |
3.2| 47,500|Africa | ... | |
2.5| 36,550|Australia | | |
7.9| 112,900|Japan | ... | 125,000|
2.9| 42,000|Spain and Portugal| ... | ... | 2,000
1.3| 18,500|Russia (estimated)| | |
4.8| 71,000|Central Powers | | |
| |(estimated) | | |
1.4| 19,000|Norway | ... | ... | 9,000
0.1| 1,000|Sweden | ... | ... | 1,000
0.4| 6,250|Other countries | 2,000 | ... |(3,000)(Italy)
| | | | |(1,000)(China)
-----+---------+------------------+-----------+--------+--------------
24.6| 354,700|Total Eastern | | |
| |Hemisphere | | |31,500
-----+---------+------------------+-----------+--------+--------------
World| | | | |
Total|1,456,869| |31,000 | 125,000|
100%| | | 1.9[106] |7.7[106]|2.0%, divided
| | | | |as follows:
| | | | |Cuba, 0.5;
| | | | |Spain, 0.1;
| | | | |Norway, 0.6;
| | | | |Sweden, 0.05;
| | | | |Chile, 0.5;
| | | | |China, 0.05;
| | | | |Italy, 0.2
-----+---------+------------------+-----------+--------+--------------
[105] Includes Belgian capital.
[106] Percentage of ownership.
TABLE 36.--BUSINESS CONTROL OF THE WORLD’S COPPER MINES
All figures metric tons
------------------------+----------+---------+---------+-------+
| Estimated| | | |
| capacity | | Refined | |
| output of| Refined | in |Refined|
| refined | in | British | in |
Country of origin | copper |the U. S.|Dominions|Germany|
------------------------+----------+---------+--------+--------+
_Western Hemisphere_ | | | | |
United States | 928,000 | 928,000| ...| ...|
Canada | 58,000 | 28,000| 30,000| ...|
Mexico | 65,000 | 52,000| ...| ...|
Cuba | 10,000 | 10,000| ...| ...|
Venezuela | 2,000 | 2,000| | |
Chile | 110,000 | 43,000| 2,500| ...|
Peru | 45,000 | 45,000| | |
Bolivia | 12,000 | 6,000| ...| ...|
+----------+---------+---------+-------+
Total Western Hemisphere|1,230,000 |1,114,000| 32,500| 0|
Percent of total |76.2%[107]| 69 | 2 | ...|
| | | | |
| | | | |
| | | | |
| | | | |
_Eastern Hemisphere_ | | | | |
| | | (or in| |
| | | Belgium)| |
Africa | 58,000 | 5,000| 53,000| ...|
Australia | 43,000 | ...| 43,000| ...|
Japan | 125,000 | 3,000| ...| ...|
Spain and Portugal | | | | |
(estimated) | 42,000 | 2,000| 35,000| ...|
Russia (estimated) | 18,000 | ...| ...| ...|
Central Powers | 71,000?| ...| ...| 71,000|
Norway | 19,000 | ...| 19,000| ...|
Sweden | 1,000 | ...| 1,000| ...|
Other Countries | 6,250 | ...| 250| ...|
| | | | |
| | | | |
| | | | |
+----------+---------+---------+-------+
Total Eastern Hemisphere| 383,250 | 10,000| 151,250| 71,000|
Percentage of total | 23.8 | .7| 9.3| 4.4|
Total percentage | 100% | 69.7| 11.3| 4.4|
------------------------+----------+---------+---------+-------+
------------------------+-------+-------+--------------+---------
| | | |
| | | | Formerly
|Refined|Refined| Refined | sold
| in | in | in other |by German
Country of origin | France| Japan | countries | houses
------------------------+-------+-------+--------------+---------
_Western Hemisphere_ | | | |
United States | ...| ...| ...|( 73,000)
Canada | ...| ...| ...|( 21,000)
Mexico | 13,000| ...| ...|( 2,500)
Cuba | ...| ...| ...|( 10,000)
Venezuela | | | |
Chile | 9,500| ...| 55,000|( 20,000)
Peru | | | |
Bolivia | 6,000| | |
+-------+-------+--------------+---------
Total Western Hemisphere| 28,500| 0| 55,000 |(134,500)
Percent of total | 1.8 | ...| 3.4 | (8¹⁄₄%)
| | |(Chili copper)|
| | |(U. S. owned) |
| | | |
_Eastern Hemisphere_ | | | |
| | | |
| | | |
Africa | ...| ...| ... |( 5,000)
Australia | ...| ...| ... |( 43,000)
Japan | ...|122,000| |
Spain and Portugal | | | |
(estimated) | 5,000| ...| ... |
Russia (estimated) | ...| ...| ... |?
Central Powers | ...| ...| 18,000 |?
Norway | ...| ...| ... |?
Sweden | ...| ...| ... |?
Other Countries | 2,000| ...| 3,000 (Italy)|
| | | 1,000 (China)|
+-------+-------+--------------+---------
Total Eastern Hemisphere| 7,000|122,000| 22,000 |( 48,000)
Percentage of total | .4 | 7.6 | 1.4 | (3%)
Total percentage | 2.2 | 7.6 | 4.8 | (11¹⁄₄%)
------------------------+-------+-------+--------------+---------
[107] The United States controls the sale of substantially all this
copper.
TABLE 37.--FUTURE IMPORTANCE OF PRESENT COPPER-PRODUCING COUNTRIES AS
INDICATED BY KNOWN RESERVES OF COPPER ORE, AND CAPITAL CONTROLLING
THESE RESERVES
-------------------------+---------+-----+---------------------
| | |Developed reserves in
| | |terms of years’ life
| | | at capacity output
-------------------------+---------+-----+-----+-------+------+
| | | | | |
| | | | | |
|Estimated| Per-| | | |
|capacity |cent-|Owned| | Owned|
|output of| age | by | Owned | by |
| copper | of |U. S.| by |German|
| (metric |world|capi-|British| capi-|
Producing country | tons) |total| tal |capital| tal |
-------------------------+---------+-----+-----+-------+------+
W. Hemisphere: | | | | | |
United States | 928,000| 57.5| 12.4| 12.4 | ... |
| | | yrs.| yrs. | |
Canada | 58,000| 3.6| 15 | 20 | ... |
Mexico | 65,000| 4.0| 5 | large | large|
Cuba and Venezuela | 12,000| 0.7| ... | ... |3 yrs.|
Chile | 110,000| 6.8| 150 | 3 | ? |
| | | | | |
Peru | 45,000| 2.8| 4 | ... | ... |
Bolivia | 12,000| 0.8| ...| ... | ... |
-------------------------+---------+-----+-----+-------+------+
Total |1,230,000| 76.2| ...| ... | ... |
Percentage total reserves| ... | 76.8| 73.6| 2.4 | 0.1 |
| | | | | |
Eastern Hemisphere: | | | | | |
Africa | 58,000| 3.6| ...|66[110]| ... |
Australia | 43,000| 2.7| ...| 7.2 | ... |
Japan | 125,000| 7.7| ...| ... | ... |
Spain and Portugal | 42,000| 2.6| ...|50 | ... |
Russia | 18,000| 1.1| ...|18(?) |18(?) |
Central Powers | 71,000| 4.4| ...| ... | ? |
Norway | 19,000| 1.2| ...|10 | ... |
Sweden | 1,000| 0.1| ...| ... | ... |
Other countries | 6,250| 0.4| ...| ... | ... |
-------------------------+---------+-----+-----+-------+------+
Total | 383,250| 23.8| ...| ... | ... |
Percentage total reserves| ... | 23.2| ...|18.4 | 0.95 |
World total |1,613,250|100 | ...| ... | ... |
Percentage of world total| | | | | |
reserves | ... | ... | 73.6| 20.8 | 1.05 |
-------------------------+---------+-----+-----+-------+------+
-------------------------+----------------------+-------+-------
| Developed reserves in| |
| terms of years’ life | |
| at capacity output | |
-------------------------+------+------+--------+-------+-------
| | |Owned by| | Per-
| | | local | |centage
| | Owned| capital| | of
|Owned | by | in | | total
| by |Japan-| produc-| | re-
|French| ese | ing | Exten-| serves
| capi-| capi-| coun- | sion | of
Producing country | tal | tal | tries | [108] | world
-------------------------+------+------+--------+-------+-------
W. Hemisphere: | | | | |
United States | ... | ... | ... | 713 | 34.
| | | | |
Canada | ... | ... | ... | 63.3| 3.
Mexico |6 yrs.| ... | ... | 20.8| 1.15
Cuba and Venezuela | ... | ... | 3 yrs. | 2.1| 0.10
Chile |5 | ... | consid-| 795.8| 37.9
| | | erable | | [109]
Peru | ... | ... | | 11.2| 0.55
Bolivia |4 | ... | ... | 2.8| 0.10
-------------------------+------+------+--------+-------+-------
Total | ... | ... | ... |1,609.0|
Percentage total reserves| 0.4 | ... | 0.3 | ... | 76.8
| | | | |
Eastern Hemisphere: | | | | |
Africa | ... | ... | ... | 237.6| 11.3
Australia | ... | ... | ... | 20 | 0.95
Japan | ... | 6 | ... | 46.2| 2.2
Spain and Portugal | ... | ... | 50 | 130 | 6.2
Russia | ... | ... | 18 | 19.8| 0.95
Central Powers | ... | ... | ? | 20 | 0.95
Norway | ... | ... | 10 | 12 | 0.55
Sweden | ... | ... | 10 | 1 | 0.04
Other countries | ... | ... | ? | 1.4| 0.06
-------------------------+------+------+--------+-------+-------
Total | ... | ... | ... | 488.0|
Percentage total reserves| ... | 2.2 | 1.65| ... | 23.2
World total | ... | ... | ... |2,097.0|
Percentage of world total| | | | |
reserves | 0.4 | 2.2 | 1.95| ... | 100
-------------------------+------+------+--------+-------+-------
[108] Extension is the product of “Percentage of World Total” and
“Developed Reserves in Terms of Years Life,” and gives total ultimate
relative importance of different countries.
[109] In so far as it affects production this high figure must be
discounted because of the large reserves being compact, the distance
from market and the unfavorable mining conditions of a thinly settled
country.
[110] Katanga equals ⁶⁵⁄₆₆ of this.
NOTE.--Not much weight is to be attached to figures showing more than
10 years of life. Total full future value over long number of years
is greatly reduced when expressed in terms of present value on normal
interest discount. All countries with reserves good for ten or more
years may be considered as being on an equal footing so far as copper
resources are concerned. But, large reserves may mean expanding
production (as in Chile and Africa) and be important on that account
and only on that account.
To weigh ore reserves they have been taken in toto, but Spain would
be no worse off as compared to the United States if her reserves
were put at 10 years instead of at 50 (as calculated above). Her
reserves happen to be of a kind easily blocked out, but her output is
stationary.
[Illustration: PLATE VIII.--Geographical distribution of the principal
copper-producing districts of the world. By F. W. Paine.]
Table 35 shows the different copper-producing countries of the world
and the chief features of financial control of the producing mines.
Table 36 shows the chief features of business control (refining and
selling control) as distinct from control by mine ownership. In both
tables a forecast for future conditions is made by using estimates
of 1918 and 1919 production. These figures are followed out to the
different forms of control. The actual outputs of 1916-17 are given
as a reference and check. Table 37 shows reserves, largely those of
producing mines. Plate VIII shows the location of the principal copper
deposits of the world.
NORTH AMERICA
UNITED STATES
=Production.=--The maximum output of copper from mines within the
borders of the United States was in 1916, and amounted to 1,927,850,548
pounds. In 1917 the output was less, because of labor troubles, but
six leading states showed an increase, and if Montana had equaled the
output of 1916, the 1917 output would have been 1,962,034,512 pounds.
Without good markets and favorable labor conditions, the United States
production cannot reach anything like 2,000,000,000 pounds a year.
Commercial Control
_Control Through Ownership of Mines._--All the productive bodies of
copper in the United States are owned by Americans, except a small
number controlled by English capital. Before the war, there was
evidence of German affiliation and potential control in the copper
industry, but this centered in refining and selling the metal.
Accordingly, the German grip on the industry was highly centralized,
and direct and effective measures were used in breaking it.
Five leading groups are in control of copper production in the United
States. Certain of these have additional important ownerships in South
America and Mexico, which will be discussed under those countries.
TABLE 38.--LEADING FINANCIAL GROUPS IN CONTROL OF COPPER PRODUCTION IN
UNITED STATES
Pounds
_Group 1. Hayden-Jackling “porphyries”_ (closely
affiliated with group 2) Utah Copper, Ray Consolidated
(Ariz.), Nevada Consolidated, (Nev.) Chino (N. Mex.) and
Butte & Superior (Mont.); 1917 output (custom ore not
included) 448,887,253
_Group 2. Morgan-Guggenheim_ (American Smelting &
Refining Co). Kennecott (Alaska) and a large number of
smaller mines owned by Americans which have their ore
treated at plants controlled by this group. The 1917
output of Kennecott and eleven of the chief customers of
American Smelting & Refining plants (smaller custom
shipments to smelters must be added) was 156,954,722
_Group 3. Rockefeller-Ryan_: Anaconda, Inspiration,
North Butte, Utah Consolidated, Mountain Copper (Cal.),
Balaklala (Cal.), Walker mine (Cal.), and Arizona Copper
Co., 1917 output (custom ore not included) 357,308,558
_Group 4. Phelps-Dodge and affiliations_: Arizona and
New Mexico only. Copper Queen, Detroit, Burro Mountain,
Commercial Mining Co. (Phelps-Dodge); 1917 output 123,000,000
Calumet & Arizona--New Cornelia (Briggs-Congdon); 1917
output 79,360,000
United Verde Extension (affiliated with each of above);
total 1917 output 63,242,784
To which must be added custom business which is
important, _e.g._, Arizona Commercial mine, etc.; 1917
business (other custom ore not included) about 10,000,000
-------------
Total for group 4 275,603,113
_Group 5. Calumet & Hecla_: 1917 output, Calumet & Hecla
mine and subsidiaries 168,765,033
Total 1917 output of these five leading groups[111] 1,407,518,679
[111] Exclusive of the small mines (shippers of custom ore) partly
controlled through smelting and refining contracts by same interests.
Important smaller groups may be listed as follows:
_Group 6. W. A. Clark_: United Verde, Elm Orlu (Mont.)
and Ophir Hill (Utah); 1917 output 88,390,038
_Group 7. Adolph Lewisohn_: Miami and, by sale of
output, Shattuck-Arizona; 1917 output 57,058,666
_Group 8. U. S. Smelting, Refining & Mining Co._ Custom
ore and Mammoth mine, Cal., Utah Apex, and Tintic (Utah)
mines; 1917 output 22,600,000
_Group 9. Lake mines_ (other than Calumet & Hecla):
Copper Range Co., Mohawk, Quincy, etc.[112]; 1917 output 99,700,000
[112] Ten different interests.
There is also a group, discussed later, of uncertain or unclassifiable
affiliations, owned by Americans, but in many instances worked under
smelting and refining contracts that merit special mention:
1917 output,
pounds
Old Dominion (Ariz.), (perhaps group 4) 25,758,381
East Butte (and custom ore), (perhaps group 9) 18,000,000
Shannon Copper Co., (Ariz.), (independent) 6,138,219
Penn. Mining Co. (Cal.) (independent) 3,400,000
Cons. Arizona Smelting Co. (independent) 5,000,000
Ducktown Sulphur, Copper & Iron Co., Ltd. (Tenn.),
(English) 5,523,573
--------------
Total unclassifiable and uncertain 63,820,173
Total of groups 1 to 5 1,407,518,679
Total of groups 6 to 9 267,748,704
--------------
Total of all interests 1,739,087,556
Total 1917 United States copper production (from
domestic mines only) 1,873,546,171
Balance (custom ore from small shippers)[113] 134,458,614
[113] This balance includes copper produced as by-product in mining
of other metals in Colorado and the East, estimated at 50,000,000
pounds, and custom shipments from 1,000 small operations, chiefly
to smelters controlled by groups 1, 2, 3, 4 and 6, estimated at
84,458,614 pounds.
Certain mines in the above groups are owned in England, but are
classed with that interest which refines and sells the production.
In group 2, for example, is listed the Tennessee Copper Co., whose
copper is refined and sold at the American Smelting & Refining plant
in Baltimore. In ownership, however, this property should be placed in
group 7, (output 10,547,704 pounds).
In group 3 are two English-owned mines: Arizona Copper Co. (Scotch) and
Mountain Copper Co., (English). Ducktown Sulphur, Copper & Iron in the
last group (uncertain and unclassifiable) is also English-owned. The
combined output of these three English-owned properties is 48,000,000
pounds. This comprises all properties not owned by American capital.
Ducktown Sulphur, Copper & Iron Co., Ltd. is English-owned, but all its
production (copper matte) is sold to the American Metal Co. The others
in the group designated above as uncertain, or unclassifiable, are
entirely American owned, although their production has been marketed by
the American Metal Co. or L. Vogelstein, as discussed later.
None of these groups actually own the mines outright, the mines being
owned by hosts of stockholders scattered all over the country. Of many
companies the president and directors own a very small percentage of
the stock. As regards group 6 and to a less extent group 4, however,
the actual ownership is in very few hands; but this is exceptional. The
copper mines of the United States, like the railroads and the largest
industrial enterprises, such as the United States Steel Corporation,
etc., are, in the last analysis, controlled by their stockholders.
Summarized on the basis of the 1917 output, one finds that the
ownership of American copper mines is as follows: American 97¹⁄₂ per
cent., English and Scotch, 2¹⁄₂ per cent.
_Control Through Ownership of Smelters and Refineries._--Ownership
of smelters that treat domestic ore is substantially identical to
the mine ownership given above. Interests owning active smelters are
less numerous than interests owning mines, because efficient smelting
requires large-scale operations.
The electrolytic refineries are all American owned. Large-scale
units, representing heavy capital investments, are essential in
electrolytic refining. A small refinery cannot compete successfully
with large ones. The average important copper mine produces enough ore
to make about 25,000,000 pounds a year, whereas the average smelter
produces three or four times as much blister or casting copper, and
the average electrolytic refinery can produce over 250,000,000 pounds
annually. Consequently, there are only six groups (Hayden-Jackling,
Morgan-Guggenheim, Rockefeller-Ryan, Phelps-Dodge, Calumet & Hecla,
and U. S. Smelting, Refining & Mining Co.) interested in refinery
ownership. No small producer has the capital or the size to be able to
enter this field. Table 39 shows electrolytic copper refineries of the
United States and their ownerships:
TABLE 39.--OWNERSHIP AND CAPACITY OF AMERICAN COPPER REFINERIES
------------------------------------------+----------+---------------
|Ownership,| 1917 capacity
Works | group-- | (pounds)
------------------------------------------+----------+---------------
Baltimore Copper Smelting & Rolling Co. | 1 and 2 | 720,000,000
Nichols Copper Co. Independent and in part| 4 | 500,000,000
Raritan Copper Works | 3 | 460,000,000
American Smelting & Refining Co. | 1 and 2 | 288,000,000
United States Metals Refining Co. | 8 | 250,000,000
Tacoma Smelting Co. | 1 and 2 | 204,000,000
Anaconda Copper Mining Co. (new plant) | 3 | 180,000,000
Calumet & Hecla Mining Co. | 5 | 65,000,000
Anaconda Copper Mining Co. (old plant) | 3 | 65,000,000
Balbach Smelting & Refining Co.[114] | |
(former German affiliations) | ... | 48,000,000
| +---------------
Total capacity | | 2,780,000,000
| |
| |1917 production
| | (pounds)
Electrolytic copper | ... | 1,452,744,593
Secondary electrolytic copper | ... | 66,337,771
Imported copper made into electrolytic | ... | 555,000,000
| +---------------
Total 1917 refinery production | ... | 2,074,082,364
------------------------------------------+----------+---------------
[114] This company treats copper scrap and imported copper ores and
matte.
The refineries control the situation to a very considerable extent. A
copper producer must obtain electrolytic refining in order to market
his product. Lake copper and casting copper do not require electrolytic
refining, although producers of casting are often at a disadvantage
when there is a big premium on electrolytic copper and casting can only
be sold at a large discount.
The smelters do not control the situation in the same way. In the
United States are a large number of custom smelters--32--that actively
compete for ores; some have many branches. Moreover, a mine of any
size will have its own smelter, as the capital investment is far less
than that required for an electrolytic refinery. As the table shows,
there are only seven groups (the six above enumerated and the Balbach
Smelting & Refining Co.) interested in electrolytic refining, and one
of these (the smallest) is to a considerable degree interested in the
treatment of secondary or scrap copper.
The electrolytic refinery control of the copper production of the
United States is shown by the 1917 figures. In that year the production
of electrolytic copper was 1,452,744,593 pounds; of Lake copper, 238,
508,091 pounds; and of casting copper, 152,293,487 pounds. Electrolytic
copper thus constituted 77¹⁄₂ per cent. of the total.
_Control Through Selling and Distribution of Copper in Finished
Form._--Groups owning mines, smelters, and refineries invariably also
control or own the selling agencies that distribute the product to
the consumer. In these cases, control through selling is the same as
control through mine ownership, but is increased by the copper in ores
received at custom smelters.
Control through selling, then, is identical to the control shown in
Table 38, so far as groups 1, 2, 3, 4, and 8 are concerned, if certain
additions at the expense of the other groups are made. But every
producer of Lake copper controls the sale of its product, because Lake
copper needs no electrolytic refining. Hence in groups 5 and 9 mine
ownership and control through selling are identical. This is a fact of
considerable interest and confirms the fact of control through refinery
ownership. Groups 6 and 7 (Table 38) are large producers, and although
they do not own refineries they are able to control the sales of their
product. The refineries are willing to refine their copper on toll and
return the marketable copper to the mine owners, who make sale to the
trade. Groups 2, 3, and 7 now control copper even further, as they own
brass mills, wire and rod mills, etc. They manufacture a part of their
production and sell it as copper wire, finished brass, etc., instead of
making sales to the brass and wire mills of ingots, bars, cakes, etc.,
which is and has been always the general practice.
There remains to consider the control, through selling, of the six
uncertain groups (total production 63,820,173 pounds) and some of the
134,458,614 pounds of copper produced from custom ore. A large part of
this, as noted, is lodged in groups 1, 2, 3, 4 and 8.
For many years three concerns affiliated with the German metal combines
(Merton Co. and Metallgesellschaft, of Frankfort-on-the-Main, and
Aaron Hirsch, of Halberstadt) have been active in the copper business
of the United States. Their activity has been confined to selling
of copper produced in this country, and to ownership and selling of
copper produced in foreign countries but brought to the United States
for smelting and refining. One small refinery is or was owned by this
group in the United States, and two smelters, treating mainly foreign
ores. It also owns smelters in Mexico and South America, and had close
connections with two large refineries in New Jersey, so that it sold
all the electrolytic copper produced by one plant and an important part
of the production of the other plant.
_German Control of American Copper._--The exact German ownership of
these concerns was disclosed during the war by the work of the Alien
Property Custodian, and was as follows: (1) American Metal Co., with an
issued capital of $7,000,000, of which the German holdings amounted to
$3,336,000, or close to 50 per cent.; these holdings were taken over
by the United States authorities; (2) L. Vogelstein & Co., of which 80
per cent. of the stock was held by Germans (A. Hirsch & Sohn) and 15
per cent. by L. Vogelstein, a naturalized American citizen; (3) Beer,
Sondheimer & Co., entirely German owned. The government seized the two
last-named concerns.
The _American Metal Co._ markets the copper of the Old Dominion, East
Butte, Shannon, Penn. Mining Co. and Ducktown Sulphur, Coal & Iron
companies. Blister copper 99 per cent. pure is purchased on contract
from the first-named four companies by the American Metal Co. This
copper is refined for the American Metal Co. by the Nichols Copper Co.,
and the finished product sold to the trade by the American Metal Co.
The Ducktown Sulphur, Copper & Iron Co. sells all of its production,
as copper matte, to the American Metal Co., which has it treated and
sells the finished product. In this manner 58,820,173 pounds was
controlled through sale by the American Metal Co. in 1917. In addition,
considerable domestic custom ore and a large amount of copper imported
from Canada (Granby), South America and Mexico is handled by the
American Metal Co. in the same way. Such imported copper totals up to
three times as much as the domestic copper so controlled.
So far as domestic copper is concerned this situation will be
corrected. The Nichols Copper Co. is free to refine this copper and
sell it or turn it back to the producers for sale; it does this latter
for Phelps-Dodge and Miami. It can be assumed that control through
selling will cease as regards the 58,820,173 pounds cited above and
also as regards Granby’s production--about 50,000,000 pounds.
The American Metal Co. may be sold to American interests,[115] thus
clearing up the situation in imported copper to some extent. Certain
Mexican and Chilean properties owned by the American Metal Co. will
perhaps not be sold, and such properties can be considered as likely
always to be German owned.
[115] The German holdings in the American Metal Co. are reported sold
to an American syndicate in which L. Vogelstein participated.
The American Metal Co. owns the Balbach electrolytic refinery, and from
treatment of scrap and imported copper (Chilean and Japanese blister
and copper) at that plant obtains and sells about 50,000,000 pounds of
refined copper per annum.
The concern of _L. Vogelstein & Co._ lost its chief hold on American
copper production in 1915. Up to that time L. Vogelstein & Co. worked
very closely with group 8 (United States Smelting, Refining & Mining
Co.). The output of the United States Smelting Refining & Mining Co.
mines and smelters was sold by Vogelstein as well as the output of its
electrolytic refinery. But since 1915 this American-owned enterprise
itself sells all the copper produced by its own mines and smelters.
But Vogelstein still controls the sale of the copper treated at the
plant of the United States Metals Refining Co.,[116] over and above
what is produced by the United States Smelting, Refining & Mining Co.
from its own mines and smelters. This remaining copper consists in
part of imported copper, and in part of the output of the Consolidated
Arizona Smelting Co., which is an American-owned enterprise. The output
was large in 1917 (about 20,000,000 pounds) but three-fourths of it was
ore from the United Verde Extension mine. The United Verde Extension
has since completed its own smelter and no longer turns over a part
of its copper output to Vogelstein through the Consolidated Arizona
Smelting Co. The output of United Verde (group 6) also was formerly
sold by Vogelstein, but now is sold by the owner of the mine.
[116] The United States Metals Refining Co. was a subsidiary of the
United States Smelting, Refining & Mining Co., sold, 1920, to the
American Metal Co.
Therefore, the only copper controlled in 1918 by Vogelstein through
selling was about 50,000,000 pounds a year, the output of mines owned
by Consolidated Arizona Smelting Co. (about 5,000,000 pounds) and
the imported copper, of which about 45,000,000 pounds was treated in
1917. The latter is controlled by Vogelstein not only by selling of
the product but in part by smelting contracts and in part probably, as
regards South America, by ownership of mines.[117]
[117] L. Vogelstein is reported to have sold his interests to the
American Metal Co. and subsequently, early in 1920, to have acquired
a fifth interest in that company.
_Beer, Sondheimer & Co._ has never been a large factor in the United
States copper industry, although much interested in zinc. But the firm
does control the sale of some copper and owns a smelter at Norfolk.
This smelter treats imported ores for the most part, but also obtains
some copper from pyrites (sulphur ores) coming from the United States
and Canada. Perhaps as much as 10,000,000 pounds of domestic copper was
sold by Beer, Sondheimer & Co. in 1917. The company owns an important
Cuban mine.
As American capital owns American copper mines, smelters and
refineries, German interests were able to obtain a foothold only
through selling organizations (trading in metals), which later they
extended to close working arrangements with electrolytic refineries,
which were naturally interested in finding a good cash market for their
output. The fact that Germany prior to 1914 was the biggest foreign
buyer of United States copper, made easy the successful development of
the carefully laid German plans.
In the future such plans can be guarded against by encouraging copper
producers to sell their own output. All the large producers already
do this, a change in this respect having developed since 1914. Sales
in foreign markets can now be properly managed under the provisions
of recent legislation permitting copper producers to enter into a
combination in the sale of export copper. This counteracts the old
German system of a buyers’ combine against the sellers of copper,
which was an important factor in forcing American producers to have
German concerns sell their product. But it will be necessary for the
electrolytic refineries to co-operate in this policy of American
selling control of American copper. Producers whose output is only
a few million pounds per annum probably cannot afford to establish
their own selling agencies; such producers will include all who have
no smelter but ship to custom smelting plants. The production can be
sold by the large custom smelting plants, which are American owned,
or these small producers could establish a common sales agency. Other
larger producers, as those whose copper is now sold by the American
Metal Co., should be enabled to do their own selling. In this they have
been blocked by the lack of refining facilities, except on a basis that
took away from them selling control of their product. This situation
can be corrected by regulations that put electrolytic refineries on a
recognized toll basis for all American customers. All refineries have
about the same costs and their combined capacity is ample to treat all
the blister copper that will be produced. They should receive good
profits on the business, but it should be unlawful for refineries to
refuse to treat blister copper on toll and insist that copper must be
sold to them outright. The toll system is already in use at several
refineries and has proved satisfactory.
As shown above, there are in the United States a few very large
refineries whose ownership is in few hands. If these refineries control
the sale of all the production of copper several objectionable features
develop. The few sales agencies handle so much copper that there is a
tendency to co-operate with representatives of foreign consumers who
can buy in large quantities, and it is not difficult to manipulate the
market temporarily, in disregard of actual conditions of demand and
supply. Thus the entire output of copper, one of our great natural
resources, is placed in the hands of groups who, while interested
in mining, are more interested in refining. The best interests of
the industry are more nearly those of the miner than of the refiner.
Therefore, the most positive dislodgment of former German control of
copper through selling will come from the breaking up of the former
system and transferring each unit of that system to other hands; rather
than transferring the old units in block to non-German hands. Sales
of American copper should be handled by a large number of separate
agencies actively competing for the domestic market; this is essential
in the interests of the consumer and of the country. But export
copper business should be handled through one agency or association
representing all the sales agencies, as is now legal, and this should
be done in the interests of the producer and of the country.
=Reserves of United States Copper Mines.=--The developed reserves of
United States copper deposits are fully equal, in proportion to output,
to such reserves in foreign copper deposits. This insures the fact that
for the next ten years, at least, the copper production of the United
States will maintain its present relative dominance over all foreign
countries.
A large proportion of all copper deposits are of such a deep-seated
character that at no time can large reserves be positively developed,
even when they exist. On the other hand, all over the world the mines
with large known reserves are horizontal deposits, lying near the
surface, because only in such occurrences is it possible to block out
easily and cheaply big tonnages of ore. There are in the United States
six very important deposits of this type, the so-called “porphyries.”
These are:
TABLE 40.--“PORPHYRY” COPPER MINES IN THE UNITED STATES
---------------------------+-----------+----------
| | Years of
| | life at
| Reserves| present
Mine | (tons) |production
---------------------------+-----------+----------
Utah Copper Co. |200,000,000| 31
Ray Consolidated Copper Co.| 90,000,000| 30
Chino Copper Co. | 80,000,000| 27
Inspiration Consolidated |120,000,000| 20
Nevada Consolidated | 80,000,000| 20
Miami Copper Co. | 50,000,000| 20
+-----------+----------
Total |620,000,000| 26
---------------------------+-----------+----------
These mines in 1917 produced 31.5 per cent. of the total United States
output.
The New Cornelia mine is of similar type and has already developed
75,000,000 tons, but as it is new its 1917 output was small. The
Arizona Copper Co., Ltd., is also of this type, as are certain new
developments in the Phelps-Dodge properties.
These “porphyry” deposits occur in or near intrusive igneous rocks of
various ages. Fully one-third of the United States production is now
and will continue to be obtained from such deposits. On the average,
about 1 per cent. copper is recovered from the ore.
Distinct from the shallow and horizontal-lying disseminated ores
or “porphyry coppers,” are the deep mines. The two oldest and most
important deep-mine districts in the United States are Butte, Montana,
and the Keweenaw Peninsula, Michigan. The mines of Butte work steeply
dipping veins. It cannot be considered that over five years of ore
reserves are known, and probably not over 2¹⁄₂ years of reserves are
actually blocked out on three sides. However, there are no indications
of early exhaustion, as the veins are profitable at more than 3,000
feet, the greatest depth to which mining has yet progressed. The
deposits of northern Michigan are in pre-Cambrian rocks. They have been
important producers of copper for over 50 years, and several mines
have reached a vertical depth of more than 5,000 feet. Certainly not
over five years of ore reserves are fully developed, but there are no
signs of early exhaustion. These two districts, Butte and Michigan, now
produce about 30 per cent. of the total United States output, a smaller
proportion than before the development of the “porphyries.” The average
copper content of the Michigan deposits ranges from 0.5 per cent. to 2
per cent. and of the Butte deposits 2.5 to 5 per cent.
Certain ore deposits (usually massive but irregular) which are situated
mainly in Arizona constitute the third important general class. These
deposits produce about one-quarter of the total United States output.
Bisbee, Jerome and Globe (Arizona), and Kennecott (Alaska), are the
main localities. Owing to the irregular nature of the deposits and the
distance from the surface at which the ore is found, large developed
reserves cannot be blocked out in advance. Such reserves are assumed to
be five years.
Apart from the three classes of deposits described above are many
smaller deposits, of which the most distinct class are the pyritic
bodies, notably those of Tennessee and California. Such deposits are
often profitable even when of low grade, because the sulphur as well as
the copper is recovered. Reserves in such deposits are large: equal,
say, to ten years’ life. Deposits of this class are important in Spain,
Norway and in part in Japan. Mines producing copper as a by-product
should also be grouped here.
From the above outline the table below has been compiled:
TABLE 41.--DEVELOPED RESERVES OF UNITED STATES COPPER MINES
------------------------------------+----------+--------+-----------
|Percentage| |
| of | |
| total |Years of|Extension
General group | output | life | [118]
------------------------------------+----------+--------+-----------
The “porphyries” | 35 | 26 | 9.10
Deep mines | 30 | 5 | 1.50
Rich ore bodies (Arizona and Alaska)| 25 | 5 | 1.25
Pyritic ore bodies | 5 | 10 | 0.50
Others | 5 | 2 | 0.10
+----------+--------+-----------
Average | 100 | 12.4 | 12.45
------------------------------------+----------+--------+-----------
[118] “Extension” is the Percentage of Total Output multiplied by the
Years of Life, giving the relative importance of each group.
The known ore reserves serve as a basis for the assumption that the
production of copper in the United States will continue at the present
figures for at least ten years.
CANADA
Canadian copper-producing properties are entirely controlled by
American and British capital in about equal proportion, changes
involving construction of new refineries and a shift in selling
control being assumed to be already effective. Up to the present time
the natural development has been for Canada to depend largely on the
United States for refining facilities. It is likely that in the future
local or English control in this field will be closer than heretofore,
although the Canadian copper industry will always be closely identified
with that of the United States.
There are three chief copper properties in Canada which are controlled
by United States capital, all in British Columbia, as well as several
small mines in this province and in others. By far the largest is the
Granby Consolidated Mining, Smelting & Power Co. This company has
mines in two districts. One of these properties is nearly exhausted;
the other is a new and vigorous producer. Smelters are operated at
each place. The Granby company is controlled by the same interests
that own the Nichols Copper Co. (electrolytic refinery). Considerable
custom ore is treated by Granby, a large amount coming from Alaska.
The other two mines are those of the Canada Copper Co. and the Howe
Sound Co. Their production is refined and sold in the United States by
American concerns. The developed reserves at these three mines are all
large, being fully adequate for fifteen years at the present rate of
production.
The only property in Canada which has established facilities for
producing copper ready for the consumer is the Consolidated Mining &
Smelting Co., of Trial, B. C. This Canadian company owns and operates
its own mines, smelter and electrolytic refinery. The capacity of the
refinery is now 14,000,000 pounds refined copper annually. The ores
are massive pyritic bodies without great developed reserves, but the
probable reserves are large.
The English and American properties at Sudbury yield nearly as much
copper as the Granby company, although their main business is nickel
production. A small part of the output is refined in Wales, producing
copper sulphate; but the largest part has been refined in New Jersey.
A refinery is being completed in Canada that will treat these
copper-nickel mattes and produce refined copper. These copper-nickel
deposits occur in pre-Cambrian rocks, and the known or potential
reserves are very large. They are described in more detail in Chapter
VI.
In Ontario and Quebec there are a number of pyrite mines where some of
the pyrite contains considerable copper. Most of the pyrite is shipped
to the United States, where the copper is recovered, refined and sold.
The production of Canada is growing, and the country will become
of increasing importance as a source of copper. Known reserves are
larger in proportion to output than in the United States and there
will probably be important developments of new districts. The northern
British Columbia region is of exceptional promise.
CUBA AND THE CARIBBEAN
The copper output of Cuba has increased in an extraordinary degree
during the past few years, but there are no indications that this
increase will continue. Two mines are responsible for nearly all the
production. One is an old mine near Santiago, the El Cobre, which
yielded about one-quarter of the total output. It is owned by the
German metal combine, which ships the ore and concentrates to Norfolk,
where they are treated by the smelter owned by Beer, Sondheimer &
Co., who have always marketed the production. The Matahambre mine,
in Pinar del Rio Province, yields nearly the entire remaining Cuban
output; it is owned by Cubans. Ore is shipped to the United States
Smelting, Refining & Mining Co., of New York, and is believed to be
sold by L. Vogelstein & Co. The reserves of copper ore in Cuba can
not be considered large. Statistics of Cuban output are conflicting:
producers’ reports, statistical authorities and United States commerce
reports not being in agreement. All production is shipped in crude form
to the United States for refining.
There are copper deposits in Central America,[119] and at one or two
points in the West Indies outside of Cuba. To date production has been
insignificant, although future possibilities are considerable.
[119] The Rosita mine, in Nicaragua, has 1,500,000 tons of ore
blocked out, running over 5 per cent. copper. It has not been
equipped.
MEXICO
The future importance of Mexico as a producer of copper or of other
metals will be determined not only by the character of her natural
deposits but by political conditions. The latter have materially
decreased the output during the past few years, so that in 1917
production was about 100,000,000 pounds, probably not much over half
what it would have been had normal conditions been continuous since
1912.
=Commercial Control.=--Three companies now produce about three-fourths
of the total copper. Two of these are owned by _American capital_
and their product is refined and sold in the United States. Situated
near the Arizona border, they have not suffered from the revolution
as much as the properties farther south. These two companies are the
Greene Cananea Copper Co. (Ryan-Rockefeller, group 3 of Table 38) and
Montezuma Copper Co. (Phelps-Dodge, etc.; group 4 of Table 38). The
developed reserves at the Montezuma Copper Co. are equivalent to five
years at present production and those at Cananea can be considered
about the same. Both districts have important possibilities. Near
Greene Cananea is another American property, Democrata Cananea, which
is a producer of moderate size. The Cananea district is now producing
at the rate of over 50,000,000 pounds per annum. Another American
property of note is the Teziutlan Copper Co., Puebla, now idle due to
revolutions. It has a smelter which normally ships 12,000,000 pounds of
blister copper annually to the Anaconda company’s electrolytic plant.
Considerable copper is produced at the plants of the American Smelting
& Refining Co., which has three copper smelters, one at Matehuala, San
Luis Potosi; one at Asarco and another at Aguascalientes, Durango.
_French capital_ controls the third important property (among the
three most important in Mexico), which is on the peninsula of Lower
California. This is the Boleo, owned by the Rothschilds; as it is far
removed from the heart of Mexico, operations have not been greatly
disturbed. The mine is an old producer with large potential reserves,
and the actual developed reserves will maintain present output for
six years. The Boleo ore deposits, which are of an uncommon type, are
Tertiary sediments that contain 3.5 per cent. copper ore, usually as
oxides. Smelters near the mine produce blister copper and matte, which
normally is shipped to France. During the war a large part of the
blister and matte came to the United States and passed into the hands
of the American Smelting & Refining Co. French interests also own the
Compagnie d’Inguaran, near Ario, Michoacan. There are large developed
reserves, but the property is idle because of political conditions and
absence of equipment or rail connections. French capital also controls
the Magistral Ameca Co., in Jalisco, where large ore reserves have been
developed. This property is also idle due to political conditions.
_English capital_ controls the Mazapil Copper Co., which has large
plants, including smelters, in Zacatecas and Coahuila. This is one of
the largest copper companies in Mexico as well as one of the oldest
important mines. It was idle for some time because of the Mexican
revolutions, but has been reopened recently.
To sum up, the production in Mexico at present is three-quarters
American controlled (of which one-half may be assigned to group 3 and
one-quarter to groups 2 and 4), while the remaining one-quarter is
French controlled. But present output and known reserves give no true
picture of future possibilities. Mexico can become of first importance
as a copper producer, ranking possibly second only to the United States
or equaling Chile and Japan among the world’s producers. The natural
resources are there and in the future will surely be developed much
more extensively than ever before.
_German capital_ must be taken into consideration, and especially the
activities of the American Metal Co. in Mexico, notably more vigorous
since 1914 than before. It is believed that the company has made
substantial profits from Mexican mining investments in this period
and has obtained a very strong foothold. The Compañia Metallurgica de
Torreon is one of the American Metal Co. subsidiaries, owning promising
mines, chiefly in the development state, and smelters already equipped
to produce 20,000,000 pounds of copper yearly. The Mapimi smelter is
also owned by the American Metal Co., as are many other companies. What
is the future Mexican political situation to be and what part will the
American Metal Co. or the German metal combine play in the Mexican
copper industry? There is no more pertinent question in the entire
field of the political and commercial control of the copper resources
of the world, particularly as American capital is largely interested
in Mexican copper mines and has made enormous investments there. Also
the natural tendency is for most of the Mexican copper to be shipped
to the United States for refining and marketing. American refineries,
with cheap fuel and efficient methods, are the natural destination for
Mexican raw copper.
SOUTH AMERICA
South America is the second largest copper-producing continent of
the world, but at present stands far behind North America. The
copper-producing countries of South America, in the order of their
importance, are Chile, Peru, Bolivia, Venezuela and Argentina.
CHILE
Chile is a copper producer of rapidly increasing importance, as
indicated by production records of recent years.[120]
[120] According to Chilean statistics, and estimate for 1917.
1914 1915 1916 1917
Metric tons 44,665 52,341 71,288 95,000
The largest mines of Chile are controlled by _American capital_. Group
2 of Table 38 (the Morgan-Guggenheim interests) controls the Chile
Copper Co., Braden Copper Co. and the Caldera and Carrizal custom
smelters. The developed ore reserves of the Chile Copper Co. are the
largest in any known copper deposits in the world and the reserves
of Braden are among the largest known. Group 3 of Table 38 (Anaconda
Copper Co.) has a property with large developed ore reserves--the Andes
Copper Co. This mine is not yet (1918) producing.
Table 43 (p. 243) gives data concerning these American-owned mines.
These three mines are allied to the “porphyries” of the United States
in character, but they are less profitable because the external
conditions make operation more difficult.
TABLE 42.--CHIEF COPPER PRODUCERS OF CHILE. THEIR OWNERSHIP AND
RELATIVE IMPORTANCE
-------+---------------------------+------------+-----------------+
Con- | | Plant | |
trolled| | capacity, | |
by | | 1918 | |
capital| | (pounds | Nature of |
of | Company | a year) | product |
-------+---------------------------+------------+-----------------+
United | Chile Copper Co. |120,000,000 |Refined copper |
States | | | |
| | | |
Do | Braden Copper Co. | 72,000,000 |Blister copper |
| | | |
Do | A. S. & R. Co. | 24,000,000 |Blister copper |
| | |and matte |
| | | |
Do | A. S. & R. Co., custom | | |
| smelters | 24,000,000 | |
| +------------+ |
|Total United States |240,000,000 | |
| | | |
| United States properties’| | |
| reserves | 150 years | |
-------+---------------------------+------------+-----------------+
England| Central Chile Co. | 6,000,000 |Matte |
| | | |
Do | Poderosa mine | 2,000,000 |Ore (rich) |
| | | |
Do | Lota custom smelter | 8,000,000 |Blister |
| | | |
| +------------+ |
|Total British | 16,000,000 | |
| | | |
| British properties’ | | |
| reserves | 3 years | |
-------+---------------------------+------------+-----------------+
France | Chanaral | 15,000,000 |Blister and matte|
| | | |
Do | Naltagua | 10,000,000 |Blister |
| +------------+ |
|Total French | 25,000,000 | |
| | | |
| French properties’ | | |
| reserves | 5 years | |
-------+---------------------------+------------+-----------------+
Belgium| Catemo | 11,000,000 |Blister |
| Reserves | 5 years | |
| | | |
Germany| Gatico smelter | 8,000,000 |Blister |
| | | |
| | | |
| | | |
| Guayacan smelter | 3,000,000 |Matte |
| | | |
| | | |
Chile | 6 mines with smelters | 5,000,000 |Matte |
| | | |
| | | |
| | | |
| Great numbers of mines | large |Ore |
| | | |
| | | |
| +------------+ |
|GRAND TOTAL |308,000,000 | |
| | | |
| Expected output 1918-1919|244,000,000 | |
| | (110,000 | |
| |metric tons)| |
-------+---------------------------+------------+-----------------+
-------+---------------------------+--------------+------------------
Con- | | |
trolled| | |
by | | |
capital| | Source of |
of | Company | product | Remarks
-------+---------------------------+--------------+------------------
United | Chile Copper Co. |Mines of the |Capacity will be
States | |Company |increased
| | |
Do | Braden Copper Co. | Do | Do
| | |
Do | A. S. & R. Co. |Local owned |Caldera plant
| |mines |
| | |
Do | A. S. & R. Co., custom | |
| smelters | Do |Carrizal plant
| | |
|Total United States | |
| | |
| United States properties’| |
| reserves | |
-------+---------------------------+--------------+------------------
England| Central Chile Co. |Panulcillo |Balance custom ore
| |mine ¹⁄₃ |
Do | Poderosa mine | |Shipped to U. S.
| | |
Do | Lota custom smelter |Largely custom|Treat custom matte
| |ore |
| | |
|Total British | |
| | |
| British properties’ | |
| reserves | |
-------+---------------------------+--------------+------------------
France | Chanaral |Mines of the }|Product treated at
| |company }|Balbach plant
Do | Naltagua |Mines of the }|(U. S.) in 1917
| +company }|
|Total French | |
| | |
| French properties’ | |
| reserves | |
-------+---------------------------+--------------+------------------
Belgium| Catemo |Mines of the |Refined by
| Reserves |company |Balbach, 1917.
| | |
Germany| Gatico smelter |Custom ore |Tributary to rich
| |and mines |mining district.
| |controlled. |
| | |
| Guayacan smelter | |Formerly shipped
| | |matte to England.
| | |
Chile | 6 mines with smelters |Locally owned |Shipped to big
| |mines |smelters or
| | |exported.
| | |
| Great numbers of mines |Locally owned |Shipped to big
| |mines |smelters or
| | |exported.
| | |
|GRAND TOTAL | |
| | |
| Expected output 1918-1919| |
| | |
| | |
-------+---------------------------+--------------+------------------
TABLE 43.--OUTPUT, RESERVES, AND LIFE OF THREE AMERICAN-OWNED COPPER
MINES IN CHILE
-----------------+--------------+-----------+---------------
| Output, First| Ore | Life at
Company | six months of| reserves |present output,
|1918, (pounds)| (tons) | (years)
-----------------+--------------+-----------+---------------
Chile | 50,000,000 |350,000,000| 200
Braden Copper Co.| 36,000,000 |150,000,000| 125
Andes Copper Co. | non-producing| 50,000,000|Work suspended
| (capacity | | for present
| 24,000,000)| |
-----------------+--------------+-----------+---------------
The Caldera and Carrizal custom smelters of the American Smelting
& Refining Co. treat ores shipped from various smaller mines. The
Carrizal plant has been closed. Two chief properties are tributary to
this plant,--the Carrizal Alto and the Astilla mines. A large number of
properties are tributary to the Caldera plant, among them: Dulcinea,
Flamenco, Morado, San Juan, El Gallo, etc. Throughout northern Chile
there are a great many small copper mines. From the Braden property
east of Valparaiso to the Chili Copper Co., southeast of Iquique, the
entire country seems to be unusually rich in copper.
There are five important Chilean mines controlled by _French or British
capital_. See Table 42. All are vein mines with no considerable tonnage
of developed ore reserves, and the combined output is nearly 50,000,000
pounds of copper a year (a considerable part being from custom
ore shipped by small mines) in the form of blister or matte. This
production is normally shipped to France or England.
The American Metal Co. and L. Vogelstein, representing _German
capital_, are believed to control, through selling and refining, much
of the output of the French, British and Belgian mines. These concerns
also own custom smelters in Chile and probably have interests in many
mining properties there. The big business in Chilean ores shipped into
the United States is done by these concerns, although the American
Smelting, Refining & Mining Co. is also an important factor. These
ores come from many small mines, although there are a few important
ore shippers, one of which is British owned. Most of the mines are
ostensibly Chilean owned, but much of the financing, marketing of
products, etc., is done by American houses with German affiliations.
It seems that Chile may soon become the second largest copper producer
of the world. American capital has led in the development of the
Chilean deposits, as American interests have discovered and furnished
funds for the equipment of the two leading producers, and the third
most important ore body is American owned. This is the more remarkable
in light of the fact that American capital has so far been conspicuous
by its absence in the development of the other important industries of
Chile. Were it not for the present difficulties of building up plant
facilities, due to shipping shortage, high cost of equipment, etc.,
the American-owned copper mines would today be still larger producers
than they are. However, American capital now completely controls
about seven-eighths of the total output. Substantially all the copper
produced in Chile is shipped to the United States. The Chili Copper Co.
produces in Chile a refined electrolytic copper, and this is the only
finished refined copper produced in South America. Braden can produce a
grade of copper that does not compete with electrolytic but is refined
enough to go directly to the consumer.
PERU
Peru is one of the important copper-producing countries of the world.
The chief mines are at extreme altitudes, however, and their character
and location is such as to indicate that production will probably
remain stationary or at least not show any important increases in the
next few years. There are two important districts: Cerro de Pasco
(elevation, 14,300 feet) and Morococha (elevation 13,700 feet).
The chief mines of these districts are now controlled by American
capital and may be classed with group 2 of Table 38. The Morococha
district was formerly English controlled, but the majority interests
have lately been acquired by the Cerro de Pasco Copper Co. (American).
The ores in both districts are exceedingly rich and the properties
are well fortified with reserves. Developed reserves are adequate
to insure four years’ production, and everything indicates that the
mines are working extensive and persistent ore deposits. Blister
copper is shipped to the American Smelting & Refining Co. in New York
for treatment and marketing. Both mines have fully equipped plants,
including smelters.
At the plant of Backus & Johnson Co., Morococha, some custom ore and
matte from locally owned mines is treated. Among these mines are those
of J. Galliver, producing 600 tons matte a year. Backus & Johnson also
have a smelter and mines in the Casapalca district. The Sayapullo
Syndicate (English) is working the Sayapullo mine under option from
the Peruvian owners. Some of this matte is shipped to the Casapalca
smelter, and the rest is exported to the United States. The output so
far is small; at present 800 tons per year.
Certain small companies ship ores to the United States: from these the
copper content amounted to about 4,000,000 pounds in 1917. This goes
(1919) chiefly to the American Metal Co. and L. Vogelstein for refining
and selling. This ore comes from Salaverry and Trujillo (Casapalca
district), Mollendo (southern district, including Ferrobamba, see
below), and Callao. All the blister copper is shipped from Callao
except small amounts shipped by Backus & Johnson from the Casapalca
district. An American company has developed a large body of low-grade
ore at Ferrobamba (Cotobamba Province), southern Peru. The property is
inaccessible and no work is now being done.
The following résumé gives some of the salient facts concerning the
Peruvian copper producers:
TABLE 44.--PRODUCTION OF COPPER IN PERU IN 1918
----------------+--------------+---------+--------------+-------------
| |Developed| |
| Output | Reserves| Product | Control
----------------+--------------+---------+--------------+-------------
Cerro de Pasco | 72,000,000(-)| 4 years |Blister Copper|United States
Backus & Johnson| 28,000,000(-)| 4 years | Do | Do
Huaron (new) | 5,000,000(?)| 4 years | Do |French
Ore shippers | 5,000,000 | ? |Ore |Local
+--------------+ | |
|110,000,000 | | |
----------------+--------------+---------+--------------+-------------
BOLIVIA
There is one important copper producing locality in Bolivia--Coro Coro,
central Bolivia (elevation 12,000 feet). Beds of sandstone carry native
copper and veins of sulphides. The mines are owned by French capital.
There is no smelter, but concentrates running up to 85 per cent. copper
are exported to France for treatment. Production is about 12,000,000
pounds annually. Reserves are large, but the almost inaccessible
location of the mines has retarded development. Recently, there has
been more activity, a flotation concentrator having been installed.
Some of the Bolivian tin and silver mines produce small amounts
of copper, but outside of Coro Coro total copper production is
insignificant.
VENEZUELA
The Aroa Mines, an English syndicate, owns a copper mine and smelter
producing low-grade matte. The property is located along the railroad
which terminates at the port of Tucacas. In 1917 the output was
3,500,000 pounds. The product was shipped to the United States and
refined and sold there by L. Vogelstein & Co.
ARGENTINA
There are some copper prospects in the extreme western portion of the
country, which are really extensions from the Chilean copper-producing
areas. One company, Famatina, Ltd., is an English concern which has had
an unfortunate career. The company operates the only copper smelter
in Argentina, a small affair that mines irregularly. At last accounts
a few hundred tons of blister copper was the annual output; this has
always been shipped to England, but recently attempts have been made
to ship to New York. This blister is exceedingly rich in silver (6 per
cent. silver).
AFRICA
Africa is a copper producer of growing importance, almost entirely
because of the development of one group of deposits (Katanga), which
overshadows all others to such an extent that the African situation
is almost completely described by a discussion of the properties of
the Tanganyika Concession, Ltd. The mines of this company yield now
three-quarters of the copper production of Africa, and their importance
in the future will be still greater.
The copper production of Africa comes from south of the Equator and
from six general districts, as follows:
TABLE 45.--COPPER PRODUCTION OF AFRICA
(Production, pounds of fine copper)
-----+---------------------+------------+------------+
| | | |
| | | 1918-1919, |
Dis-| Province and chief | | estimated |
trict| mines | 1917 output| output |
-----+---------------------+------------+------------+
1. |_Congo_: Katanga[121]| 60,000,000 | 80,000,000 |
|Bwan M’Kubwa | 4,000,000?| 3,000,000 |
2. |_Transvaal_: Messina | 14,000,000 | 12,000,000 |
3. |_Rhodesia_: Falcon | 7,000,000 | 7,000,000 |
4. |_Cape Colony_: | | |
|Cape Copper-Namaqua | 7,000,000 | 6,000,000 |
5. |Former _German | | |
|Southwest-Africa_: | | |
|Tsumeb (Otavi) | 10,000,000?| 15,000,000?|
| | [122] | |
| | | |
| | | |
|Khan, etc. | 2,000,000 | 4,000,000?|
6. |_Miscellaneous | | |
|northern Africa_ | | |
|not specified | 1,000,000?| 1,000,000?|
| +------------+------------+
|Total |105,000,000 |128,000,000 |
| | | |
-----+---------------------+------------+------------+
-----+---------------------+------------------+---------------
| | |Reserves, years
| | Control | of life at
Dis-| Province and chief | | this rate
trict| mines | | of output
-----+---------------------+------------------+---------------
1. |_Congo_: Katanga[121]|English-Belgian | 100
|Bwan M’Kubwa |English | large
2. |_Transvaal_: Messina |English | 1¹⁄₂
3. |_Rhodesia_: Falcon |English | 4
4. |_Cape Colony_: | |
|Cape Copper-Namaqua |English | 2
5. |Former _German | |
|Southwest-Africa_: | |
|Tsumeb (Otavi) |(English since | 4
| |conquest of German|
| |Southwest |
| |Africa) |
|Khan, etc. | | 4
6. |_Miscellaneous | |
|northern Africa_ | |
|not specified |French | ?
| +------------------+---------------
|Total |Almost entirely |
| |English |
-----+---------------------+------------------+---------------
[121] Kanshanshi included in Katanga.
[122] Basis 1914. Present political conditions govern extent of work.
Shipped 1,000,000 pounds copper in ore to United States in 1917.
In District 1, the _Katanga_ district, which includes the Belgian Congo
and adjacent territory, the Union Minière du Haut Katanga has acquired
from the Belgian Special Committee the ownership of all of the Katanga
copper belt but not the Kanshanshi deposit in Rhodesia. Equal, but not
the entire, share interests of this company are owned by the Tanganyika
Concessions, Ltd., and the Katanga (Belgian) Special Committee. The
Lubumbashi smelter of U. M. du Haut Katanga, at Elisabethville, close
to the Rhodesian boundary, has seven blast furnaces with a daily
capacity of 2,000 tons. The ore treated runs 15 per cent. copper, and
yields 96 per cent. blister copper. The past production is as follows:
1911, 996 tons blister copper; 1912, 2,492 tons; 1913, 7,407 tons;
1914, 10,722 tons; 1915, 14,190 tons; 1916, 22,165 tons; 1917, 30,000
tons. This copper is shipped to England, and is consumed there and in
France after further refining. There is very little gold and silver in
the copper, so it goes to market largely as refined, best selected and
tough copper.
Tanganyika Concessions, Ltd., owns concessions in northern Rhodesia
containing the Kanshanshi mine (a deposit similar to those in Katanga)
owned by a subsidiary railroad company, 70 per cent. of which is
owned by Tanganyika Concessions, Ltd. A small blast furnace there is
producing. The actual railroad connection with Katanga is north from
Rhodesia and thence to the eastern coast of Africa. An uncompleted line
from the West Coast is planned to connect these mineral deposits with
Lobito Bay (Benguella By. Co.). The Portuguese government has a small
interest in certain railway lines in its territory. It seems that the
English group, (R. Williams, who was an associate of Cecil Rhodes,
T. White and others) with the Belgian Special Committee, control the
entire group; but a considerable interest has been sold to the public,
mainly British and Belgian investors.
The Bwan M’Kubwa mine farther south on the Rhodesia railroad is a
deposit of the same general character. This is owned by British
capital, two of the Rhodesian development companies holding a large
block of the stock.
Ore bodies are found in Katanga over a district extending 250 miles
east-west and 50 miles north-south, and also at scattered localities in
Rhodesia. Malachite chiefly and other oxidized ores impregnate certain
sediments and constitute the ore bodies, which are very rich (10 to
15 per cent. copper). At Luushia sulphides (3 per cent. copper as
chalcopyrite) occur beneath the oxidized ore. Cobalt is common; there
is some nickel but not much gold and silver. The developed reserves
of the mines of Katanga are estimated at 40,000,000 tons of 8 per
cent. copper ore above water level, equal to 100 years’ production at
the present rate of output; of the Bwan M’Kubwa mine in Rhodesia at
3,000,000 tons of 4 per cent. ore, besides ore of lesser grade. The
reserves of the Kanshanshi mine, in Rhodesia, are not included in the
estimates.
In District 2, near the Rhodesian boundary, is the Messina mine, the
only copper producer of the _Transvaal_. Along veins in very old
gneissic rocks occur shoots and lenses of chalcocite and enargite with
some oxide. A little matte is made at the mine but the chief product is
concentrates (45 to 50 per cent. copper), all of which were shipped to
England. Lately they have been in part sent to the United States. The
production was about 14,000,000 pounds in 1915 and the same in 1916.
Reserves of 208,000 tons of 5 per cent. ore are reported developed, or
not much over one year’s supply. The company is strictly English.
In District 3, the Falcon mines in _Central Rhodesia_ belong to an
English company which is treating copper-gold ore occurring in old
schists. The production was about 7,000,000 pounds in 1916. The ore
carries 2 per cent. copper, $5 in gold, and the reserves are stated at
862,000 tons of this grade, or about four years’ supply.
In the _French Congo_, just north of the mouth of Congo River, is a
belt of copper deposits 60 miles long, which have been worked for
centuries by the natives. Diabase rocks occur in this vicinity. The
output is very small.
District 4, _Cape Colony_, is the oldest important copper producer of
modern Africa, but its chief deposits, worked since 1852, are nearly
exhausted. The Cape Copper Co. and Namaqua Copper Co. are south of the
Orange River in a district 90 miles by rail from a port on the West
Coast. The ore is bornite and chalcopyrite, in irregular lenses; the
reserves are equivalent to only two years of production. Each mine
has a mill and smelter. Further refining is done at the Briton Ferry
smelter of the Cape Copper Co. in Wales, which has a capacity of 12,000
tons per year of refined copper and electrolytic copper. All these
companies, including the railroad, are entirely British. Cape Colony
copper production is dependent on this one district, from which the
1917 output was 6,000,000 to 7,000,000 pounds.
In District 5, the former colony of _German Southwest Africa_, copper
deposits are numerous, and next to diamond mining the production
of copper is the most important industry of the province. The main
deposit is the Tsumeb in the northeast part of the country, where solid
sulphides of lead and copper occur in dolomite. Fifty thousand tons
of ore carrying 13 per cent. copper and 40 per cent. lead was shipped
in 1917. There is a smelter here and the mine has rail connection.
The company working these deposits was the Otavi Minen und Eisenbahn,
but through the Southwest Africa Co. the English had an interest in
the property. The English now have control. The Khan mine, second
in importance to Tsumeb, is working a pegmatite vein in schist. In
1914 a mill treating 50 tons a day was shipping 60 to 70 per cent.
concentrates to Europe. The ores are chalcopyrite and chalcocite.
In District 6, _northern Africa_, there are some deposits of copper in
Algeria, Egypt, and Morocco. They are not of importance at present.
De Launay describes them as chiefly veins in rocks of much younger age
than the important deposits of Africa which lie south of the Equator.
Matte and blister produced in Africa are normally treated at small
English plants or at the Briton Ferry smelter, Wales, which is a plant
of some size.
The general economic situation as regards African copper ores in 1917
is shown in the table.
TABLE 46.--PRODUCTION AND SHIPMENTS OF COPPER FROM AFRICA IN 1917
-------------------+-----------+--------------------+--------------
|Production,| Chief product | Shipped to--
Mine | (pounds) | shipped |
-------------------+-----------+--------------------+--------------
Katanga | 60,000,000|matte and blister |England
Cape Copper-Namaqua| 7,000,000|matte |England
Messina | 14,000,000|concentrates, matte,|
| | hand-picked ore |England
Falcon | 7,000,000|concentrates or ore |England
Bwan M’Kubwa | 4,000,000| |Katanga plants
German Southwest | | |
Africa, Otavi, | | |
Khan | 12,000,000|ore |England or
| | |Germany
North Africa | 1,000,000|ore |France
+-----------+ |
|105,000,000| |
-------------------+-----------+--------------------+--------------
Considerable of this copper goes to the United States. In 1917, as
shown below, the total amount of copper received in this country was
7.5 per cent. of the total African production.
TABLE 47.--SHIPMENTS TO THE UNITED STATES IN 1917
-----------------------+---------------------------+-------+---------
| | Ship- | Copper
| | ments | content
| Grade Shipped | (tons)|(pounds)
-----------------------+---------------------------+-------+---------
Otavi to New York |Ore (12 per cent.) | 3,900 |1,048,000
Messina to New York |Ore (45 per cent.) | 703 | 715,000
Do |Matte (45 per cent.) | 306 | 310,000
Cape Copper to New York|Concentrates (55 per cent.)| 375 | 460,000
| +-------+---------
| | 5,284 |2,533,000
Katanga |Blister | ... |5,437,000
| | +---------
Total | | |8,000,000
-----------------------+---------------------------+-------+---------
AUSTRALASIA
Copper production in Australasia is not now increasing. In recent years
the production (metric tons) has been as follows:
1912 1913 1914 1915 1916 1917
16,600 22,900 37,592 32,512 35,000 38,100
Formerly German metal buying and refining companies controlled
the Australian copper output (as that of lead and zinc) by virtue
of refining and selling contracts. Hence the year 1914 brought
disorganization to Australian mining. War-profits taxation on
Australian mines has been severe; and government aid, formerly granted,
has been largely withdrawn. Lack of labor, inability of new properties
to obtain railroad connections, and absence of government encouragement
to prospecting, have retarded the copper industry since August,
1914. Aside from former German control based on selling and refining
contracts, all Australian copper mining is and has been under British
control. The properties are owned by British and Australian capital and
present refining and selling arrangements will prevent the German metal
companies from again getting any foothold in the field. All former
contracts with German agencies were abrogated. The government took this
phase of the matter in hand, and one step was to purchase the entire
production of Australia for the first half of 1918 at £106 to £108 per
ton.
The Australian copper situation in 1917 is exhibited in the table
following:
TABLE 48.--PRODUCTION OF COPPER AND REFINING PLANTS IN AUSTRALIA IN 1917
--------------------------+-----------+-------------------------------
|Production,|
| 1917, | Refineries
Chief mines |(long tons)|
--------------------------+-----------+-------------------------------
Queensland: | |
Mount Morgan | 8,000[123]|Port Kembla plant, Electrolyte
| |Refining & Smelting Co., Ltd.
Hampden Cloncurry | 8,000[123]|Capacity, 29,000 tons
| |electrolyte copper per annum;
| |12,000 tons fire-refined copper
| |per annum.
Other Cloncurry district| |
mines | 4,000[123]|Mount Elliott completed
| |refinery at Bowen, Queensland,
| |in 1917; capacity 10,000 tons
| |refined copper.
| |
South Australia: | |
Wallaroo & Moonta | 7,000 |Wallaroo & Moonta smelter,
| |Bowen, Queensland; capacity
| |increased from 7,000 to 10,000
| |tons per annum.
| |
Tasmania: | |
Mount Lyell | 5,000 |Ships to Port Kembla.
New South Wales: | |
Great Cobar | 2,500[123]|
C. S. A. and Mt. Hope, | |
etc. | 2,250 |
West Australia and Papua: | |
New pyrite ore bodies of | |
promise opened | 1,250 |
| |
+-----------+
|38,000 |
--------------------------+-----------+-------------------------------
[123] Ores mined are primary, consisting of chalcopyrite and
chalcocite. Secondarily enriched ores near the surface have been
entirely mined out.
As stated, the ownership of these mines is strictly British, and at
present the refining and marketing is now British instead of German.
Two refineries, both recently enlarged and improved, now have a
capacity of over 60,000 tons a year, which is well in excess of the
present output of the country. Towards the end of 1917, the Copper
Producers’ Association Proprietary, Ltd., was formed in Australia for
the purpose of selling and shipping copper on a co-operative basis. All
copper producers were invited to join. Wallaroo & Moonta, Mount Morgan,
Mount Lyell and the Cloncurry mines are members of this association,
as is the Electrolytic Refining & Smelting Co., which treats the
ores of these mines. The company markets its products in England and
Australia. Its chief brands are E. S. A. (electrolytic) and E. S.A.F.R.
(fire refined). These brands are also sold by Elder Smith & Co.,
Ltd., of London and Australia, which has had a financial interest in
the Wallaroo & Moonta Co. since the early days, and has financed and
marketed the copper production of this company since 1915.
Metals Products, Ltd., has recently been formed, with works at Port
Kembla producing copper wire, brass goods, etc. Importation of copper
and brass products into Australia should entirely disappear if the
plans of the Australian government and copper producers do not miscarry.
The oldest mine and one of the two leading mines in Australasia is
the Wallaroo & Moonta, in _South Australia_. This deposit occurs in a
pre-Cambrian complex, intersected by pegmatitic dikes. Ore reserves
are believed to be ample: say five years’ supply of developed ore. In
recent years, production has been very steady at about 7,000 tons per
year of refined copper. This is the only important copper deposit of
pre-Cambrian age in Australia.
The other leading mine in Australia is Mount Morgan, in _Queensland_,
which until 1910 was one of the largest gold mines in the world. The
gold was in the oxidized top of a large low-grade copper deposit, which
is now being mined from open cuts. Primary chalcocite, chalcopyrite and
pyrite with quartz constitutes the ore deposit. The ore runs 2¹⁄₂ per
cent. copper and is concentrated up to 7 per cent. The reserves exceed
4,000,000 tons of 2¹⁄₂ per cent. copper, or 10 years’ supply.
The Cloncurry district is a large area, 200 by 40 miles in extent,
containing several copper deposits, which occur in schist and are
mainly small bonanzas. The future of this district seems very
promising. The chief mines are Hampden Cloncurry, Mount Elliott, Mount
Cuthbert; and the developed ore reserves insure five years’ production.
The Hampden Cloncurry mine has 300,000 tons of 7 per cent. ore in
reserve, a smelter producing blister copper, and railroad connections.
The district is hampered by bad climate, etc., and especially by labor
conditions. Recent government rulings (1918), as to very short hours of
labor and higher wages, are reducing outputs. The Mount Elliott mine,
which has a 300,000-ton deposit of 10 per cent. ore, is now (1919) idle
because of labor conditions. The Mount Cuthbert mine, which completed
a new smelter in 1917, has reserves of 150,000 tons of 6¹⁄₂ per cent.
copper, and railroad connections.
The Mount Lyell mine, in _Tasmania_, is an old and steady producer. One
class of ore runs 0.5 per cent. of copper and 1.25 ounces silver; the
other contains 6 per cent. copper ore, with the same amount of silver.
This is a disseminated deposit in schist, near a conglomerate contact.
No igneous rocks are known in the vicinity. The reserves are 2,000,000
tons of low-grade ore and 1,000,000 tons of high grade; insuring the
present output for 15 years. Considerable of the ore is mined open cut,
and this is one of the lowest grade profitable mines in the world. Ores
are smelted direct after being mixed, so that the product going to the
furnace runs 2¹⁄₂ per cent. copper.
The Great Cobar mine, in _New South Wales_, works cupriferous pyrite
carrying 2 to 2¹⁄₂ per cent. copper. Cobar used to produce 4,000 to
5,000 tons of copper a year. After erecting a 1,200-ton smelter in
1912, the company was placed in the hands of a receiver, April, 1914.
The reserves are believed to be large. The other chief mines in New
South Wales (the C. S. A., Mount Hope, Nymagee, etc.) produce together
about as much as Great Cobar. These mines have smelters, and for the
most part were formerly of much greater importance than they are today.
Several have no railway connections, and this is an important handicap
to New South Wales mines, which once produced twice the present output.
In _West Australia_, there have been developed recently a number of
promising deposits of pyritic copper ores. There are no important
producers, there being no railways.
The present conditions in Australia, in which labor conditions are most
important, and the absence of new railroad construction, have seriously
affected the development of the copper industry, but the future seems
promising. Several important deposits have proved large and the ore
bodies persistent. Much of the country has not been explored and
many good showings could be worked and some probably developed into
profitable mines if conditions were favorable to new ventures. Just
the reverse is the case, however. The Mount Lyell company has been
exploring northern Tasmania, and recently found in the mine of the
Tasmania Copper Co. about 1,000,000 tons of ore carrying copper, zinc,
gold and silver and worth $20 to $30 per ton, gross.
It is believed that Australia will continue to be an important copper
producer; probably its importance will increase. Weighted reserves,
in terms of ore supply to maintain present output, insure copper
production continuing undiminished for 7.2 years. These reserves are
well distributed among the various producers.
ASIA
JAPAN
Copper deposits are found over a large part of central Japan. The ores,
which occur in Tertiary volcanics, consist of chalcopyrite and pyrite
running 2¹⁄₂ to 3¹⁄₂ per cent. copper, and are commonly concentrated
before smelting. The gangue is usually quartzose. Lenticular deposits
of cupriferous pyrite in Paleozoic schists and sediments occur on
the west and the south side of Japan. These mines yield smelting ore
carrying about 3¹⁄₂ to 4 per cent., but contain very little silica.
Pyritic smelting is extensively practiced. Over one-half the copper
production comes from four chief mines: Ashio and Kosaka of the
Tertiary type; and Hitachi and Beshi of the Paleozoic schist type.
The state reserves to itself the right of original ownership in
all ores, including copper. The right to work them is granted to
individuals or companies of Japanese nationality. Copper mining,
smelting and refining companies seem to be entirely Japanese in
ownership and policy. The number of mines is considerable, but their
ownership is concentrated into a few hands and the smelting and
refining industry is still more concentrated. Japanese producers sell
their own copper, all foreign selling agencies being strictly Japanese.
The mines in Japan are not generally worked as joint-stock enterprises,
but are mostly family properties inherited by the present owners. A
table showing the 1917 copper production of Japan indicates these
facts. (See Table 49.)
Because of labor conditions, abundant fuel near the mines and water
transportation, Japanese copper production has increased rapidly in
recent years. High prices and the adoption of modern methods of mining
and smelting have been important contributing factors. There seems no
reason to expect that Japan’s production will decrease, but not enough
is known of geological conditions to enable one to discuss the future
outlook. The only mine whose reserves are known is the Beshi, which
has reserves adequate for 100 years of production at the present rate,
which is 10 per cent. of the Japanese output. The reserves at other
mines are not developed far ahead, but must insure several years of
continued production at the present rate.
The production and exports of Japanese copper in recent years are as
follows (in terms of metric tons):
----------+------+------+------+------+-------+-------
Year | 1912 | 1913 | 1914 | 1915 | 1916 | 1917
----------+------+------+------+------+-------+-------
Production|63,893|67,697|71,046|76,039|101,467|124,306
Exports |30,000|42,000|45,500|59,500| 62,000| 72,000
----------+------+------+------+------+-------+-------
TABLE 49.--JAPANESE COPPER PRODUCTION
Producing companies and brands of copper marketed. The companies named
have selling offices in London and in other foreign consuming centers.
---------------------+-----------------------------------------------+
| Smelters |
+-----------+-----------------------------------+
Company and | |1917 production (pounds) of refined|
chief mines owned | Location | and casting[124] and brands sold |
---------------------+-----------+-----------------------------------+
Mitsu Bishi & Co. |Osaka |15,000,000 |
Osaruzawa | | |
Arakawa | | |
Ikuni and 6 | | |
smaller mines | | |
Brands sold | |Arakawa, Mitsui Bishi, casting, |
| |etc. (rough copper) |
| | |
Furukawa & Co. |Osaka |17,000,000 |
Ashio |(Amagasaki)| |
also Ani, Furukura,| | |
Kune and 6 smaller | | |
mines | | |
Brands sold | |Furukawa, Ani Tiles, refined |
| |Maragata Best Selected |
| | |
Fujita & Co. |Inushimo |3,000,000 |
Kosaka (North end | | |
Honshu) | | |
Brands sold | |Obiye casting, etc. (rough copper) |
Kuhara Mining Co. | |None |
Hitachi (near | | |
Tokio) | | |
| | |
| | |
3 smaller mines 30 | | |
per cent. custom | | |
ore | | |
Brands sold | | |
Baron Sumitomo |Shikoku |22,000,000 |
Beshi |Island |Beshi Best Selected |
Brands sold | | |
Nippon Metals Co. of | | |
Kobe |Moji | |
Brands sold | |S. Z. K. (Susuki) and some casting |
| | |
Denkibundo Co. | | |
| +-----------------------------------+
Total casting rough| | |
copper and best | | |
selected sold | |57,000,000 |
| | |
Total electro- | | |
lytic refining | | |
capacity[125] | | |
| | |
1917 output of | | |
electrolytic | | |
estimated | |217,000,000 |
| +-----------------------------------+
Total | |214,000,000 or 124,306 metric tons |
| |_Eng. & Mining Journal_ figure 1917|
| |output. |
---------------------+-----------+-----------------------------------+
---------------------+-----------------------------------------------
| Electrolytic refineries
+-----------+-----------------------------------
Company and | | 1917 estimated capacity
chief mines owned | Location | (pounds) and brands sold
---------------------+-----------+-----------------------------------
Mitsu Bishi & Co. |Osaka |15,000,000
Osaruzawa | |
Arakawa | |
Ikuni and 6 | |
smaller mines | |
Brands sold | |M. B. (Mitsu Bishi)
| |
| |
Furukawa & Co. |Osaka |67,000,000
Ashio |(Nikko |
also Ani, Furukura,|Plant) |
Kune and 6 smaller | |
mines | |
Brands sold | |F. M. (Furukawa Mines)
| |
| |
Fujita & Co. |Mosaka |20,000,000
Kosaka (North end | |
Honshu) | |
Brands sold | |Kosaka
Kuhara Mining Co. |Hitach |100,000,000
Hitachi (near | |
Tokio) | |Reported capacity at least 20% in
| |excess of 1917 output.
| |
3 smaller mines 30 | |
per cent. custom | |
ore | |
Brands sold | |H. M. (Hiatachi Mine)
Baron Sumitomo | |
Beshi | |
Brands sold | |
Nippon Metals Co. of | |
Kobe | |19,000,000
Brands sold | |
| |
Denkibundo Co. |Bundo |13,000,000
| +-----------------------------------
Total casting rough| |
copper and best | |
selected sold | |
| |
Total electro- | |
lytic refining | |
capacity[125] | |235,000,000
| |
1917 output of | |
electrolytic | |
estimated | |
| |
Total | |
| |
| |
---------------------+-----------+-----------------------------------
[124] Balance smelted to cathodes and treated electrolytically.
[125] Plant capacity. Evidently not reached in 1917.
Since the high copper prices of 1916 there was a heavy importation
of Chinese copper coins into Japan. In 1917 one concern alone had
contracted for 200,000 tons of such coins, which contain about 85 per
cent. copper, and the rate of importation at that time would mean
60,000 tons refined copper a year from this secondary source. This
development has enabled Japan to make heavy exports of copper.
The collapse of Russia removed one of Japan’s big copper markets. Japan
will probably not be able profitably to produce a large exportable
surplus of copper unless the price obtained is fairly high compared to
quotations ruling in 1912 to 1914. Under normal conditions Japan will
supply her own needs for copper with little or nothing to spare.
KOREA (CHOSEN)
The Seoul Mining Co. (Collbran and Bostwick) is producing from contact
deposits, one 50 miles and the other 100 miles from a harbor. This
American concern is a dominant trading and banking house in Korea and
is working mines formerly operated by Koreans. The copper ores are
sulphides between limestone and granite. Five hundred tons of 60 per
cent. concentrates were shipped from Chosen to the United States in
1917.
CHINA
The present production of China is 2,000 tons a year, and the chief
deposits are in Yunnan Province. A great many localities are reported
to show copper ores, mainly cupriferous pyrite in very old schists,
or in Permian basalt. The latter deposits are too small for modern
methods. In the last hundred years, lack of wood to make charcoal has
restricted output to a nominal amount. Small seams of native copper are
highly esteemed by the natives. The ores are carefully hand-picked, and
the small-scale methods are wasteful.
The Tungschuanfu mine, Yunnan, the chief mine in China, has a yearly
output of about 1,000 tons of copper. The district has been worked
for hundreds of and probably is very rich. The ores, replacements in
limestone and veins in shale, are 8 per cent. copper and the reserves
are large. The Yaoki Kansu government smelter is a modern plant with a
capacity of four tons of copper a day.
There are several other mines, all controlled by the government.
Outside engineers have reported favorably on some of them, but the
government closely regulates copper mining in China because it affects
currency and government profits on coinage of copper. There are also
some copper mines worked with the contact iron deposits of China
(formed by contact action of diorite); and deposits of malachite in
Triassic sandstone are worked at several points.
INDIA
India is not a copper producer. The Rakha Hills mine of the Cape Copper
Co. (see Cape Colony) has 400,000 tons of 4 per cent. copper ore
developed and a smelter is being built. India is an enormous copper
consumer, and it is surprising she has never been a producer.
EUROPE
Political and commercial control of much of the copper production of
Europe is obviously uncertain in the extreme, as are any figures of
production for the Central Powers and Russia. (See Table 49.)
SPAIN, PORTUGAL, NORWAY AND SWEDEN
Spain is the oldest and steadiest producer of copper in the world. The
chief deposits are controlled by English capital and their developed
reserves insure present production for 30 to 60 years. The copper is
largely refined to finished form in England and enters the market there
under various brands. The Rio Tinto is an enormous deposit worked by
open pits.
TABLE 50.--PRODUCTION AND CONTROL OF COPPER IN EUROPE
----------------------------+---------+---------+----------+
| | | |
| |Estimated| +
| Output | output | Estimated|
|1916-1917|1918-1919| output |
Country and chief localities| (metric | (metric | 1918-1919|
in which copper is produced | tons) | tons) | (pounds) |
----------------------------+---------+---------+----------+
Germany | | | |
Mansfeld | 30,000 | 30,000 | ... |
| | | |
Mitterberg, etc. | 10,000 | 10,000 | ... |
Austria-Hungary | 10,000 | 10,000 | ... |
Serbia, Bor, etc. | 10,000 | 10,000 | ... |
Turkey, Aghano, etc. | 10,000 | 10,000 | ... |
Bulgaria and Roumania | 1,000 | 1,000 | ... |
+---------+---------+ |
Total Central Powers | | | |
(est.) | 71,000 | 71,000 | ... |
| | | |
Spain and Portugal[127] | 42,000 | 42,000 | ... |
Mason & Barry | ... | ... | 5,000,000|
Rio Tinto | ... | ... |62,000,000|
Tharsis | ... | ... |12,000,000|
Misc. (United Alkali, | | | |
Huelva, Cordoba, etc.) | ... | ... |11,000,000|
Miscellaneous (Calva, Los | | | |
Guardos, etc.) | ... | ... | 3,000,000|
Russia (See Table 52) | 18,500 | 18,000? | ... |
Norway[128] (Sulitolma 40 | | | |
per cent.) | 19,000 | 19,000 | ... |
Sweden | 1,000 | 1,000 | ... |
Other countries | | | |
Italy | 3,000 | 3,000 | ... |
France | 1,000 | 1,000 | ... |
England | 250 | 250 | ... |
----------------------------+---------+---------+----------+
---------------------------+-------------------------------------+
| Control by: |
+---------------+------------+--------+
| | | |
| | | |
Country and chief localitie| | |Handling|
in which copper is produced|Financial[126] | Political |of sales|
---------------------------+---------------+------------+--------+
Germany | | | |
Mansfeld | |Now entirely| |
| |German | |
Mitterberg, etc. | | Do | |
Austria-Hungary | | Do | |
Serbia, Bor, etc. | | Do | |
Turkey, Aghano, etc. | | Do | |
Bulgaria and Roumania | | Do | |
| | | |
Total Central Powers | | | |
(est.) | | | |
| | | |
Spain and Portugal[127] | | | |
Mason & Barry |English |Portuguese |English |
Rio Tinto | Do |Spanish | Do |
Tharsis | Do | Do | Do |
Misc. (United Alkali, | | | |
Huelva, Cordoba, etc.) | Do | Do | Do |
Miscellaneous (Calva, Los| | | |
Guardos, etc.) |Spanish | Do | Do |
Russia (See Table 52) | ? | ? | ? |
Norway[128] (Sulitolma 40 |¹⁄₂ English and| | |
per cent.) |¹⁄₂ Norwegian |Norwegian | |
Sweden |Swedish |Swedish |Swedish |
Other countries | | | |
Italy |Italian |Italian |Italian |
France |French |French |French |
England |English |English |English |
---------------------------+---------------+------------+--------+
----------------------------+----------------+------------------------
| |
+ |
| |
| |
Country and chief localities|Reserves |
in which copper is produced | of ore |Remarks
----------------------------+----------------+------------------------
Germany | |
Mansfeld | |Output in future should
| |not be nearly as large.
Mitterberg, etc. | |
Austria-Hungary | |
Serbia, Bor, etc. | |
Turkey, Aghano, etc. | |
Bulgaria and Roumania | |
| |
Total Central Powers | |
(est.) | |
| |
Spain and Portugal[127] | |No statistics since
Mason & Barry |32 years’ supply|1914.
Rio Tinto |Very large |60 years’ reserves
Tharsis | Do |known.
Misc. (United Alkali, | |
Huelva, Cordoba, etc.) | Do |
Miscellaneous (Calva, Los | |
Guardos, etc.) | Do |
Russia (See Table 52) | |1914 output 36,340 tons.
Norway[128] (Sulitolma 40 | |
per cent.) |Important |Like Spanish deposits.
Sweden | |
Other countries | |
Italy | |Some English capital.
France | |French pyrite mines.
England | |Tin mines.
----------------------------+----------------+------------------------
[126] All companies have foreign stockholders, but dominant
nationality is as indicated.
[127] Export copper to France and England in form of blister, alloys,
cement, pyrite ore and copper ore.
[128] Export copper to England and Sweden chiefly in form of
cupriferous pyrite.
NOTE. Production for 1919 in Germany probably smaller than estimate.
The copper deposits, chiefly massive cupriferous pyrite, in Norway
and Sweden, are similar to those of Spain geologically as well as
economically. Their commercial value depends not only on their copper
content, but on the sulphur and iron recovered. In many cases the
sulphur used in sulphuric acid manufacture is of greater money value
than the recovered copper. Hence the exported copper from Spain,
Portugal and Norway is in several forms: pyrite, matte, ingot copper
from Norway and considerable cement copper or precipitates from Spain
and Portugal. Pyrite is exported to England, the United States, and
perhaps a little to France; the matte, ingot, etc., to various European
countries. Sweden imports as well as produces pyrite. France, Italy and
Russia produce considerable pyrite and before the war France exported
pyrite. Under normal conditions, the copper in all this pyrite is
shipped back and forth over Europe and can hardly be traced. The table
shows the location of raw materials but not the place where marketable
copper is produced. The chief imports and exports of pyrite are
normally as follows:
TABLE 51.--NORMAL EXPORTS AND IMPORTS OF PYRITE FOR CERTAIN EUROPEAN
COUNTRIES
-----------------+-------------+-------------+-------------
Exports from-- |Amount (tons)|Imports to-- |Amount (tons)
-----------------+-------------+-------------+-------------
Spain | 1,500,000 |England | 1,050,000
Norway | 500,000 |Sweden | 100,000
Portugal | 250,000 |United States| 1,000,000
| |France | 100,000
+-------------+ +-------------
Estimated total| 2,250,000 | | 2,250,000
-----------------+-------------+-------------+-------------
GERMANY
Under existing conditions the present output of Germany can not be
closely estimated. The figures in Table 49 are guesses based on the
information available. The Mansfeld deposits are clearly the most
important, and as they are in shales that extend over a large area, the
reserves must be considered large. The Mitterberg mine, owned by the
Krupps, had a pre-war output of only 1,000 tons yearly. Several copper
deposits in the Austrian Tyrol had a pre-war output of 1,000 tons
annually.
The chief source of copper in Germany during the war, however, must
have been from conversion of articles containing copper which were in
use before the war. It is doubtful if 10 per cent. of the yearly copper
production of peace times was destroyed in use. Consequently, in all
countries there is normally a big store of copper in the form of wire,
brass, machine parts, etc. This is what Germany used during the war,
and its replacement is essential to her industrial success in peace.
RUSSIA
The copper production of Russia was rapidly increasing before the
war and reached a maximum in 1913. The ownership of the mines and
refineries was largely English but in part French. Enough development
had been done to indicate that Russia will probably be a large producer
of copper when consistent industrial progress is possible. In 1918 the
mines had been seized by workmen and operations were nearly or entirely
suspended. The copper districts are all in the Urals, the Caucasus
or Siberia. The Russian copper production (in long tons) has been as
follows:
1905 1910 1913 1914 1915 1916 1917
8,700 22,310 33,794 31,435 25,472 20,557 15,700
(34,911) (27,295)
TABLE 52.--COPPER PRODUCTION AND ORE RESERVES OF RUSSIA
(All figures long tons)
----------------+---------------+-------+------+------+---------+
| | Orig- | | 1915 | |
| | inal | | pro- | |
| |invest-| 1913 | duc- | Ore |
| | ments | pro- |tion, | reserves|
| | made | duc- |(esti-| (devel- |
District | Company | by: | tion |mated)| oped) |
----------------+---------------+-------+------+------+---------+
Urals |Kyshtim |British| 7,000| 7,600|3,150,000|
Do |Bogoslovsk | Do | 4,300| 4,100| ... |
| | | | | |
Do |Sissert | Do | 1,100| 1,500|5,000,000|
Do |Tanalyk | Do | 600| 600| 126,000|
| | | | | |
| | | | | |
Do |Verch-Isselz |Russian| 3,000| 2,500| large |
| | | | |reserves |
Do |Nishni Tagilsh | | | | |
|(Demidov) | Do | 2,000| 1,500| |
| | +------+------+ |
Urals total | | |18,000|17,800| |
----------------+---------------+-------+------+------+---------+
Caucasus |Caucasus Copper| | | | |
|Co. |British| 5,500| 3,000|3,600,000|
Do |Allah Verde |French | 2,000| 700| ... |
| | | | | |
Do |Siemens Co. |Russian| 1,500| 800| ... |
| | | | | |
| | +------+------+ |
Caucasus total| | | 9,000| 4,500| |
----------------+---------------+-------+------+------+---------+
Siberia |Spassky |British| 4,756| 3,450| 543,000|
Do |Miscellaneous | Do | | 734| ... |
| | | | | |
Do |Irkysh (Ridder)| Do | (New)| ... |2,300,000|
| | | | | |
Do |Russian Mining | | | | |
|Co. | Do | 410 | ... | 500,000|
Do |Alexeieff Co. | Do | 377 | ... | |
Do |Russo-Asiatic | | | | |
|Corporation | Do | | | |
| | +------+------+ |
Siberia total | | | 5,553| 4,184| |
----------------+---------------+-------+------+------+---------+
Russian chemical| | | | | |
works | | | 1,358| 811| |
| | +------+------+ |
Grand total | | | | | |
Russia| | | |34,911|27,295| |
----------------+---------------+--------+----------------------------
| | |
| | Copper |
| | in ore |
| |reserves|
| | (per |
District | Company | cent.) | Remarks
----------------+---------------+--------+----------------------------
Urals |Kyshtim | 2.75 |Obtains gold as by-product.
Do |Bogoslovsk | ... |Ore hard to follow;
| | |excellent possibilities.
Do |Sissert |(2³⁄₄)-4|
Do |Tanalyk | ... |Developing into a gold
| | |rather than a copper
| | |deposit.
Do |Verch-Isselz | |
| | 2-3 |Massive pyrite ore.
Do |Nishni Tagilsh | |
|(Demidov) | |
| | |
Urals total | | |
----------------+---------------+--------+----------------------------
Caucasus |Caucasus Copper| |
|Co. | 3 |Mines at Khot Eli and Katar.
Do |Allah Verde | ... |Industrial & Metallurgical
| | |Co. of Caucasus.
Do |Siemens Co. | ... |Mines at Tcherek and
| | |Kedabeck.
| | |
Caucasus total| | |
----------------+---------------+--------+----------------------------
Siberia |Spassky | 10.7 |
Do |Miscellaneous | ... |Development companies, see
| | |below.
Do |Irkysh (Ridder)| 5 |1,000,000 low-grade ore also
| | |in reserves.
Do |Russian Mining | |
|Co. | 2.6 |Ore carries other metals.
Do |Alexeieff Co. | |
Do |Russo-Asiatic | |
|Corporation | |
| | |
Siberia total | | |
----------------+---------------+--------+----------------------------
Russian chemical| | |
works | | |Ouchkoff, Kreiners, etc.
| | |
Grand total | | |
Russia| | | |
Russian reserves insure maintenance of 1913 maximum output
for at least 15 years
Copper refineries Capacity per year.
Electrolytic Kyshtim 10,000
Electrolytic Bogoslov 6,000
Best selected (refined) Caucasus Copper Co. 10,000
------
Total 26,000
----------------------------------------------------------------------
Russia has always been in large part dependent on foreign copper and
there was a tariff premium on domestic production. It is likely that
ultimately Russia may more nearly be self-supporting as regards copper
requirements, even if consumption increases greatly. Table 52 shows the
important developed properties, their production in 1913 (maximum) and
in 1915 (estimated), their developed ore reserves, and the nationality
of original capital that made the developments possible.
SUMMARY
Copper, the red metal, is surpassed only by gold and silver in
malleability and by silver alone in electrical conductivity. Next to
iron it is industrially the most important of all metals, as its value
per pound is much greater than that of lead or zinc, and the world
requires and consumes much greater quantities of copper, lead, and zinc
than of any other non-ferrous metals.
The uses of copper are many, but the electrical industry is the
largest consumer. Brass, bronze, and other copper alloys are second
in importance. A considerable quantity of copper sheets, tubes and
other wares are used outside of the electrical industry. Copper is
used in coinage, and in China it is the money standard of the working
population.
The United States, producing a major part of the world’s copper, has
also been responsible for financing and developing more successful
copper mines abroad than any other country. Success has been
facilitated by the presence in the Western Hemisphere of the world’s
chief copper deposits and also by the advances in mining, milling and
metallurgy that have been in great measure the work of United States
engineers. England and Japan control considerable copper production,
but it is small compared to that controlled by the United States.
In the consumption of copper Germany is a big factor. Because of this
fact, German interests and international metal houses have in the past
secured a considerable control over copper supplies through refining
and selling contracts with mining companies. Such control is based
entirely on refining and selling companies and does not extend to
ownership of producing mines, and only to a small degree to ownership
of smelters.
Chile, Mexico, Canada, and the Belgian Congo should become of
increasing importance as copper producers not only because of known
reserves but, in the case of Canada and Mexico particularly, because of
the likelihood of new and important discoveries. The position of the
United States, including Alaska, should be maintained as at present,
neither gaining nor losing as compared to the rest of the world.