BISMUTH

        (Data in metric tons of bismuth content, unless noted)

Domestic Production and Use:  One refinery in Nebraska produced bismuth as a
byproduct of lead refining.  Thirty-five companies in the Eastern United States
accounted for 84% of the bismuth reported consumed in 1995.  Based on the average
annual price, reported consumption was valued at $12.2 million.  Bismuth was used in
pharmaceuticals and chemicals, 53%; fusible alloys and solders, 28%; metallurgical
additives, 17%; and other, 2%.

Salient Statistics--United States:     1991     1992     1993     1994     1995e/
Production, refinery                      W        W        W        W        W
Imports for consumption               1,410    1,620    1,330    1,660    1,400
Exports1/                                75       90       70      160      120
Shipments from Government 
 stockpile excesses                      57       91       --      145      139
Consumption, reported                 1,260    1,300    1,300    1,470    1,500
Price, average, domestic dealer, 
 dollars per pound                     3.00     2.66     2.50     3.25     3.75
Stocks, yearend, consumer               247      272      323      297      350
Employment, plante/                      30       30       30       30       30
Net import reliance2/ as a percent of
 apparent consumption                     W        W        W        W        W

Recycling:  Bismuth was recovered from fusible alloy scrap, contributing about 5% of
the U.S. supply.

Import Sources (1991-94):  Mexico, 37%; Belgium, 27%; China, 12%; Peru, 8%; and
other, 16%.

Tariff:Item                   Number     Most favored nation (MFN)   Non-MFN3/
                                                   12/31/95          12/31/95
Articles thereof,
 including waste and scrap  8106.00.0000              Free          7.5% ad val.

Depletion Allowance:  22% (Domestic), 14% (Foreign).

Government Stockpile:
                       
                       Stockpile Status--9-30-95

                 Uncommitted     Committed      Authorized     Disposals
Material          inventory      inventory     for disposal  Jan.-Sept. 95
Bismuth              366            136            366             139                 

Events, Trends, and Issues:  Growth in the domestic consumption of bismuth was slow
despite the development of several new applications designed to provide nontoxic
substitutes for lead.  New products include bismuth brass, pigments, ceramic glazes,
fishing sinkers, shot for hunting, solders, lubricating greases, and crystal ware. 
In order to make a large impact on the market, lead would have to be restricted or
banned for a significant use, such as plumbing fixtures.  Seven large faucet makers,
representing about one-half of domestic faucet sales, agreed to remove essentially
all lead from plumbing fixtures in the settlement of a suit brought by California and
the Natural Resources Defense Fund.  The brass industry tested several bismuth and
bismuth-selenium free-machining brasses that could be used as a replacement for
leaded brass in plumbing fixtures.  Both machining and leach test results were very
encouraging.  Selenium is added to lower the amount of bismuth required.

Prepared by Robert D. Brown, Jr., (703) 648-4984.

                                BISMUTH

World production of bismuth also has remained fairly flat due mainly to low prices
and level demand.  In 1994 and 1995, output from China and Korea decreased because of
reduced tungsten production.  World lead production has also declined in recent
years, limiting the amount of bismuth that can be produced.  Concerns over possible
shortages caused the price to increase rapidly in July 1994, from about $2.50 per
pound to $4.00 per pound. Since then, the price has been lowered to $3.65 per pound. 
The Defense Logistics Agency (DLA) sold 139 tons of bismuth from the National Defense
Stockpile in 1995; this was slightly more than the entire amount authorized for
disposal in fiscal year 1995.  The DLA was authorized to dispose of 136 tons in
fiscal year 1996.

The U.S. Fish and Wildlife Service again conditionally approved the use of 97%
bismuth-3% tin shot for waterfowl hunting in the 1995-96 hunting season.  Recent
studies have shown bismuth-tin shot to be nontoxic to waterfowl.  Bismuth-tin shot is
an alternative to steel shot, which replaced lead shot for waterfowl hunting several
years ago.  Bismuth-tin shot has much better dropping power than steel shot.

The feasibility study for the Tasna Mine in Bolivia was completed.  It is the only
mine in the world where bismuth is the primary product.
  
World Mine Production, Reserves, and Reserve Base:
                                  
                                  Mine production    Reserves4/  Reserve base4/
                                  1994       1995e/                      
United States                        W          W       9,000          14,000
Australia                           --         --      18,000          27,000
Bolivia                             --         --       5,000          10,000
Canada                             131        150       5,000          30,000
China                              700        800      20,000          40,000
Japan                              150        150       9,000          18,000
Kazakstan                           25         25       5,000          10,000
Mexico                             900        950      10,000          20,000
Peru                             1,000      1,000      11,000          42,000
Other countries                    110        100      15,000          35,000
   World total (rounded)      5/ 3,020   5/ 3,200     110,000         250,000

World Resources:  Bismuth  is recovered in the United States during the processing of
domestic and imported lead ores and concentrates.  Other potential domestic sources
include byproduct recovery from molybdenum or tungsten processing, although most of
these domestic reserves are subeconomic.  World reserves of bismuth are usually
associated with lead deposits, except in China and Korea, where bismuth is found with
tungsten ores, and Australia, where it is found with copper-gold ores.  Bismuth
minerals rarely occur in sufficient quantities to be mined as principal products,
except in Bolivia and possibly China.

Substitutes:  Antibiotics, magnesia, and alumina can replace bismuth in
pharmaceutical applications.  Titanium dioxide-coated mica flakes and fish scale
extracts are substitutes in pigment uses.  Indium can replace bismuth in low-temperature 
solders.  Resins can replace bismuth alloys in holding jigs for machining.  
Glycerine-filled glass bulbs replace bismuth alloys as a triggering device for fire 
sprinklers.  Selenium, tellurium, or lead could replace bismuth in free machining alloys.  

e/Estimated.  W Withheld to avoid disclosing company proprietary data.
1/Includes bismuth, bismuth alloys, and waste and scrap. 
2/Defined as imports - exports + adjustments for Government and industry stock
changes.
3/See Appendix B.
4/Most of reserves and reserve base represent bismuth recoverable from the lead
reserve base.  See Appendix C for definitions.
5/Excludes U.S. production.

                              Mineral Commodity Summaries, January 1996