NATL INST. OF STAND & TECH

A111Q5 177612

81-2305

jeedings, U.S. Department of

Commerce Public Workshop on

Critical Materials Needs in the

Aerospace Industry,

February 9-10, 1981

U.S. DEPARTMENT OF COMMERCE

National Bureau of Standards

Washington, DC 20234

July 1981

~ QC “ DEPARTMENT OF COMMERCE

100 3NAL BUREAU OF STANDARDS

.Ub6

81-2305

1981

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NBSIR 81-2305 OEC 7 1981

/'.c^ a PROCEEDINGS, U.S. DEPARTMENT OF ' " ' ^ COMMERCE PUBLIC WORKSHOP ON ^ - ^ CRITICAL MATERIALS NEEDS IN THE ^

AEROSPACE INDUSTRY,

FEBRUARY 9-10, 1981

John B. Wachtman, Jr„ Editor

U.S. DEPARTMENT OF COMMERCE

National Bureau of Standards

Washington, DC 20234

July 1981

U.S. DEPARTMENT OF COMMERCE, Malcolm Baldrige, Secretary

NATIONAL BUREAU OF STANDARDS, Ernest Ambler, Director
jDiscl aimer:

"Certain commercial equipment, instruments, or materials are identified

in this paper in order to adequately specify the experimental procedure.

Such identification does not imply recommendation or endorsement by the

National Bureau of Standards, nor does it imply that the materials or equipment identified are necessarily the best available for the purpose."
Foreword

On February 9 and 10, 1981, the Department of Commerce held a Public

Workshop to obtain the views of the American public on three questions

directly pertinent to the Department's responsibilities under the Materials

and Minerals Policy, Research and Development Act of 1980, Public Law

96-479. These questions were:

1) What are the materials issues of primary concern to the

American aerospace industry and its suppliers?

2) What recommendations do the American aerospace industry

and its suppliers have for Federal action to address these

i ssues?

3) Which specific materials should the Department of Commerce

review in detail over the next few months in order to recommend

the most urgently needed programs for Federal action?

The Workshop addressed these questions within three distinct areas:

I. Critical raw materials

II. Critical engineering materials

III. Substitution, conservation, specialized recycling, and

higher performance.

This report includes the formal views presented to the plenary workshop

sessions, the reports of the Workshop Task Forces in each of the three above

areas, and the written submissions invited in the Federal Register notice

of the Workshop.

1

Table of Contents

Foreword Page

I. Table of Contents TCI

II. Public Law 96-479 PLl

III. Federal Register Notice FI

IV. Program PI

V. Talks Presented T

1) INTRODUCTORY REMARKS, John B. Wachtman, Jr., National Bureau T1

of Standards.

Critical Raw Materials

2) CRITICAL ENGINEERING MATERIALS, ISSUES AFFECTING THE U.S. SUPPLY T2

OF MATERIALS, W. R. Hibbard, Jr., Virginia Polytechnic Institute

and State University.

3) CRITICAL AEROSPACE MINERAL MATERIALS, John D. Morgan, Bureau of T3

Mines.

4) REMARKS ON CRITICAL RAW MATERIALS, Russell Babcock, Bear Creek T4

Mining.

5) WORKSHOP ON CRITICAL MATERIAL NEEDS OF THE AEROSPACE INDUSTRY, T5

Robin Brumwell, Cabot Mineral Resources.

6) CRITICAL MATERIAL NEEDS OF THE AEROSPACE INDUSTRY, David Swan, T6

Kennecott Copper.

7) A NATIONAL MATERIALS POLICY FOR A DESTABILIZED WORLD, E. F. Andrews, T7

Allegheny Ludlam.

8) RMI COMMENTS ON THE U.S. DEPARTMENT OF COMMERCE WORKSHOP, Dom Strollo, T8

RMI Company.

Critical Engineering Materials.

9) KEYNOTE ADDRESS, William O'Donnell, Sperry Corporation. T9

10) MATERIALS CRITICALITY IN JET ENGINES, William A. Owczarski , TIO

Pratt & Whitney Aircraft Group.

11) ELECTRONIC COMPONENTS, John M. Kerr, Rockwell International. Til

12) ALUMINUM/TITANIUM, VITAL PRODUCTS FOR THE AEROSPACE INDUSTRY, T12

Sally Couluris, Grumman Aerospace.

13) CRITICAL MATERIALS & MACHINE TOOLS, C. J. Beigle, Rockwell T13

International

.

TCI
V. Talks Presented (continued) Page

14) CRITICAL MATERIAL ISSUES, Jim D. Martin, General Dynamics Corp. T14

15) PRESENTATION ON TITANIUM, Ward W. Minkler, Titanium Metals Corp. T15

16) DEPARTMENT OF COMMERCE WORKSHOP: NATIONAL MATERIALS & MINERALS T16

POLICY ACT OF 1980, P.L. 96-479, Gregory B. Barthold, Aluminum

Company of America.

Substitution, Conservation, Recycling, and Higher Performance

17) ROLE OF SUBSTITUTION, CONSERVATION, RECYCLING AND HIGHER PERFORMANCE, T17

Allen G. Gray, American Society for Metals.

18) WORKSHOP ON CRITICAL MATERIALS NEEDS OF THE AEROSPACE INDUSTRY, T18

J. J. deBarbadi 1 lo, INCO Research & Development Center, Inc.

19) MATERIALS CRITICALITY IN JET ENGINES, William A. Owczarski, Pratt T19

& Whitney Aircraft Group.

20) COBALT AVAILABILITY AND SUPERVALLOYS and NASA'S ACTIVITIES IN T20

THE CONSERVATION OF STRATEGIC AEROSPACE MATERIALS, J. K. Tien,

Columbia University.

21) CRITICAL ELEMENTS IN THE AEROSPACE INDUSTRY, E. P. Whelan, Climax T21

Molybdenum Company of Michigan.

22) COMAT PRESENTATION, Stanley Fass, Allied Chemical Corporation. T22

/I. Task Force Reports

1) Report on Working Group on Critical Raw Materials R1

Chairman: Russell C. Babcock, Bear Creek Mining Company

2) Report on Working Group on Critical Engineering Materials R2

Chairman: F. E. Akin, The Boeing Company

3) Report on Working Group on Substitution, Conservation, Specialized R3

Recycling, and Higher Performance Materials

Chairman: Ellis D. Verink, University of Florida

I. Written Submissions to Workshop

1) Abraham Hurlich W1

2) Roger E. Schwer, Cannon-Muskegon Corporation W2

3) Simon D. Strauss, ASARCO Incorporated W3

4) Richard P. Seelig, Chromalloy American Corporation W4

TC2
VII. Written Submissions (cont'd) Page

5) R. C. Mul ready, Pratt & Whitney W5

6) Jacqueline A. Keith, United States Council of the International W6

Chamber of Commerce, Inc.

7) Simon D. Strauss, ASARCO Incorporated W7

8) Gregory T. Haugan, Department of Transportation W8

9) James Boyd W9

10) Walter T. Joyce, Freeport Minerals Company WIO

11) E. F. Andrews, Allegheny Ludlum Industries, Inc. Wll

12) J. D. Knox, Vermont American Corporation W12

13) W. M. Maul den. The Boeing Company W13

14) Wm. J. Barlow, Wyman-Gordan Company W14

15) Gordon L. Pine W15

16) C. G. Scofield, Forging Industry Association W16

17) Charles Hays, Allied Chemical W17

18) Charles B. Kenahan, U.S. Department of the Interior W18

19) R. P. Carreker, General Electric W19

20) Gerald W. Houck, Jr., American Iron and Steel Institute W20

21) J. L. Wandrisco, Tool & Stainless Steel Industry Committee W21

22) Gregory B. Barthold, Alcoa Aluminum Company of America W22

23) Walter R. Hibbard, Jr., Virginia Polytechnic Institute W23

24) Karl G. Harr, Jr., Aerospace Industries Association of W24

America, Inc.

25) Arthur Baker, 3rd, University of Nevada W25

26) E. N. Hegge, Fiber Materials, Inc. W26

27) Lee S. Smith, Reno, Nevada W27

28) M. J. Skrypa, Allied Chemical W28

29) William L. Hodge, McDonnel Douglas Corporation W29

30) Peter J. Cannon, Denver Research Institute W30

TC3
VII. Written Submissions (cont'd) Page

31) Ward W. Minkler, TIMET Div., Titanium Metals Corporation of W31

Ameri ca

32) R. L. Hallse, General Dynamics W32

33) Frank A. Crossley, Consulting Engineer W33

34) James P. Brazel , General Electric W34

35) Roger E. Schwer, Cannon-Muskegon Corporation W35

36) U.S. House of Representatives, Committee on Armed Services, W36

Defense Industrial Base Panel Report, The Ailing Defense

Industrial Base: Unready for Crisis

37) John K. Tien, Columbia University W37

38) James Beizer, American Mining Congress W38

39) Dorn Strollo, RMI Company W39

TC4
PUBLIC LAW 9G-479—OCT. 21, 1980 94 STAT. 2305

Public Law 9G-479

9Gth Congress

An Act

To provide for a national policy for materials and to strenpthcn the materials

research, development, production capability, and perform.ance of the United

States, and for other purposes. Be it enacted by the Senate and House of Representatives of the

United States of America in Congress assembled. That this Act may

be cited as the “National Materials and Minerals Policy, Research

and Development Act of 1980”.

FINDINGS

Sec. 2. (a) The Congress finds that

(1) the availability of materials is essential for national security, economic well-being, and industrial production:

(2) the availability of materials is affected by the stability of

foreign sources of essential industrial materials, instability of

materials markets, international competition and demand for materials, the need for energy and materials conservation, and

the enhancement of environmental quality;

(3) extraction, production, processing, use, recycling, and dis- posal of materials are closely hnked with national concerns for

energy and the environment;

(4) the United States is strongly interdependent with other

nations through international trade in materials and other

products;

(5) technological innovation and research and development are important factors which contribute to the availability and use of

materials;

(6) the United States lacks a coherent national materials policy

and a coordinated program to assure the availability of materials

critical for national economic well-being, national defense, and

industrial production, including interstate commerce and for- eign trade; and

(7) notwithstanding the enactment of the Mining and Minerals

Policy Act of 1970 (30 U.S.C. 21a), the United States does not have

a coherent national materials and minerals policy.

(b) As used in this Act, the term “materials” means substances,

including minerals, of current or potential use that will be needed to supply the industrial, military, and essential civilian needs of the

United States in the production of goods or services, includifig those

which are primarily imported or for which there is a prospect of

shortages or uncertain supply, or which present opportunities in

terms of new physical properties, use, recycling, disposal or substitution, with the exclusion of food and of energy fuels used as such.

DECLARATION OF POUCY

Sec. 3. The Congress declares that it is the continuing policy of the

United States to promote an adequate and stable supply of materials

PLl

Oct. 21, 1980

”[H.R. 2743]

National

M.aicrials and

Minerals Policy, Research and

Development

Act of 1980. 30 use 1601

note. 30 use 1601.

“Materials."

30 use 1602.
94 STAT. 2306 PUBLIC LAW 96-479—OCT. 21, 1980

30 use 1603.

necessary to maintain national security, economic well-being and

industrial production with appropriate attention to a long-term

balance between resource production, energy use, a healthy environment, natural resources conservation, and social needs. The Congress

further declares that implementation of this policy requires that the

President shall, through the Executive Office of the President,

coordinate the responsible departments and agencies to, among other measures

(1) identify materials needs and assist in the pursuit of measures that would assure the availability of materials critical to commerce, the economy, and national security;

(2) establish a mechanism for the coordination and evaluation

of Federal materials programs, including those involving

research and development so as to complement related efforts by

the private sector as well as other domestic and international

agencies and organizations;

(3) establish a long-range assessment capability concerning

materials demands, supply and needs, and provide for the policies and programs necessary to meet those needs;

(4) promote a vigorous, comprehensive, and coordinated pro- gram of materials research and development consistent with the

policies and priorities set forth in the National Science and

Technology Policy, Organization, and Priorities Act of 1976 (42

U.S.C. 6601 et seq.);

(5) promote cooperative research and development programs

with other nations for the equitable and frugal use of materials

and energy;

(6) promote and encourage private enterprise in the development of economically sound and stable domestic materials industries; and

(7) encourage Federal agencies to facilitate availability and

development of domestic resources to meet critical materials

needs.

IMPLEMENTATION OF POUCY

Sec. 4. For the purpose of implementing the policies set forth in

section 3 and the provisions of section 5 of this Act, the Congress

declares that the President shall, through the Executive Office of the

President, coordinate the responsible departments and agencies, and

shall

(1) direct that the responsible departments and agencies identify, assist, and make recommendations for carrying out appropriate policies and programs to ensure adequate, stable, and

economical materials supplies essential to rtetional security,

economic well-being, and industrial production;

(2) support basic and applied research and development to provide for, among other objectives

(A) advanced science and technology for the exploration,

discovery, and recovery of nonfuel materials;

(B) enhanced methods or processes for the more efficient

production and use of renewable and nonrenewable

resources;

(C) improved methods for the extraction, processing, use, recovery, and recycling of materials which encourage the

conservation of materials, energy, and the environment; and

(D) improved understanding of current and new materials

performance, processing, substitution, and adaptability in

engineering designs;

PL2
PUBLIC LAW 96-479—OCT. 21, 1980 94 STAT. 2307

(3) provide for improved collection, analysis, and dissemination

of scientific, technical and economic materials information and

data from Federal, State, and local governments and other

sources as appropriate;

(4) assess the need for and make recommendations concerning

the availability and adequacy of supply of technically trained

personnel necessary for materials research, development, extraction, harvest and industrial practice, paying particular regard to the problem of attracting and maintaining high quality materials professionals in the Federal service;

(5) establish early warning systems for materials supply

problems;

(6) recommend to the Congress appropriate measures to promote industrial innovation in materials and materials

technologies;

(7) encourage cooperative materials research and problemsolving by

(A) private corporations performing the same or related

activities in materials industries; and

(B) Federal and State institutions having shared interests or objectives;

(8) assess Federal policies which adversely or positively affect

all stages of the materials cycle, from exploration to final product

recycling and disposal including but not limited to, financial

assistance and tax policies for recycled and virgin sources of

materials and make recommendations for equalizing any exist- ing imbalances, or removing any impediments, which may be

created by the application of Federal law and regulations to the

market for materials; and

(9) assess the opportunities for the United States to promote

cooperative multilateral and bilateral agreements for materials

development in foreign nations for the purpose of increasing the

reliability of materials supplies to the Nation.

PROGRAM PLAN AND REPORT TO CONGRESS

Sec. 5. (a) Within 1 year after the date of enactment of this Act, the 30 USC 1604. President shall submit to the Congress

(1) a program plan to implement such existing or prospective

proposals and organizational structures within the executive

branch as he finds necessary to carry out the provisions set forth

in sections 3 and 4 of this Act. The plan shall include program

and budget proposals and organizational structures providing for the following minimum elements:

(A) policy analysis and decision determination within the

Executive Office of the President;

(B) continuing long-range analysis of materials use to meet

national security, economic, industrial and social needs; the

adequacy and stability of supplies; and the industrial and

economic implications of supply shortages or disruptions;

(C) continuing private sector consultation in Federal materials programs; and

(D) interagency coordination at the level of the President’s

Cabinet;

(2) recommendations for the collection, analysis, and dissemination of information concerning domestic and international

long-range materials demand, supply and needs, including conPL3
94 STAT. 2308 PUBLIC LAW 96-479—OCT. 21, 1980

sideration of the establishment of a separate materials information agency patterned after the Bureau of Labor Statistics; and

(3) recommendations for legislation and administrative initia- tives necessary to reconcile policy conflicts and to establish

programs and institutional structures necessary to achieve the

goals of a national materials policy.

(b) In accordance with the provisions of the National Science and

Technology' Policy, Organization, and Priorities Act of 1976 (42 U.S.C. 6601 et seq.), the Director of the Office of Science and Technology

Policy shall:

(1) through the Federal Coordinating Council for Science,

Engineering, and Technology coordinate Federal materials

research and development and related activities in accordance

with the policies and objectives established in this Act;

(2) place special emphasis on the long-range assessment of

national materials needs related to scientific and technological concerns and the research and development. Federal and private, necessary to meet those needs; and

(3) prepare an assessment of national materials needs related to scientific and technological changes over the next five years. Such assessment shall be revised on an annual basis. Where

possible, the Director shall extend the assessment in 10- and

25-year increments over the whole expected lifetime of such

needs and technolo^es.

(c) The Secretary of Commerce, in consultation with the Federal

Emergency Management Administration, the Secretary of the Interior, the Secretary of Defense, the Director of the Centra! Intelligence

Agency, and such other members of the Cabinet as may be

appropriate shall

(1) within 3 months after the date of enactment of this Act,

identify and submit to the Congress a specific materials needs

case related to national security, economic well-being and industrial production which will be the subject of the report required

by paragraph (2) of this subsection;

(2) within 1 year after the date of enactment of this Act, submit

to the Congress a report which assesses critical materials needs

in the case identified in paragraph (1) of this subsection, and

which recommends programs that would assist in meeting such

needs, including an assessment of economic stockpiles; and

(3) continually thereafter identify and assess additional cases, as necessary, to ensure an adequate and stable supply of materials

to meet national security, economic well-being and industrial

production needs.

(d) The Secretary of Defense, together with such other members of

the Cabinet as are deemed necessary by the President, shall prepare a. report assessing critical materials needs related to national security

and identifying the steps necessary to meet those needs. The report

shall include an assessment of the Defense Production Act of 1950 (50

U.S.C. App. 2061 et seq.), and the Strategic and Critical Materials

Stock Piling Act (50 U.S.C. App. 98 et seq.). Such report shall be made

available to the Congress within 1 year after enactment of this Act

and shall be revised periodically as deemed necessary.

(e) The Secretary of the Interior shall promptly initiate actions

to^

(1) improve the capacity of the Bureau of Mines to assess international minerals supplies;

(2) increase the level of mining and metallurgical research by

the Bureau of Mines in critical and strategic minerals; and

PL4
PUBLIC LAW 9G-479—OCT. 21, 1980 94 STAT. 2309

(3) improve the availability and analysis of mineral data in Federal land use decisionmaking.

A report summarizing actions required by this subsection shall be

made available to the Congress within 1 year after the enactment of

this Act. (0 In furtherance of the policies of this Act, the Secretary of the

Interior shall collect, evaluate, and analyze information concerning

mineral occurrence, production, and use from industry, academia,

and Federal and State agencies. Notwithstanding the provisions of

section 552 of title 5, United States Code, data and information

provided to the Department by persons or firms engaged in any phase

of mineral or mineral-material production or large-scale consump>-

tion shall not be disclosed outside of the Department of the Interior in a nonaggregated form so as to disclose data and information supplied

by a single person or firm, unless there is no objection to the

disclosure of such data and information by the donor: Provided,

however. That the Secretary may disclose nonaggregated data and

information to Federal defense agencies, or to the Congress upon

official request for appropriate purposes.

THE MINING AND MINERALS POUCY ACT OF 1970

Sec. 6. Nothing in this Act shall be interpreted as changing in any manner or degree the provisions of and requirements of the Mining

and Minerals Policy Act of 1970 (30 U.S.C. 21a). For the purposes of

achieving the objectives set forth in section 3 of this Act, the Congress

declares that the President shall direct (1) the Secretary of the

Interior to act immediately within the Department’s statutory

authority to attain the goals contained in the Mining and Minerals

Policy Act of 1970 (30 U.S.C. 21a) and (2) the Executive Office of the

President to act immediately to promote the goals contained in the

Mining and Minerals Policy Act of 1970 (30 U.S.C. 21a) among the

various departments and agencies. Sec. 7. Section 1001(a) of title X of the Act of November 3, 1978

(Public Law 95-586), is revised to read as follows: “Sec. 1001. (a) The Congress hereby authorizes and directs that the

rights to the geothermal resources, including minerals present in the

geothermal fiuid, presently vested in the United States of America in

real property designated as Tract 37, located in sections 2 and 11,

township 3 north, range 2 east, Boise meridian, Idaho, containing 4.13 acres more or less; “Tract 38, located in sections 1, 2, 11, and 12, township 3 north,

range 2 east, Boise meridian, Idaho, containing 449.16 acres more or

less;“Unofficial tract 39, located in section 2, township 3 north, range 2

east, Boise meridian, Idaho, described as follows: from the corner of

sections 2, 3, 10 and 11, north 76 degrees 26 minutes 17 seconds, east,

1,705.44 feet, thence north 60 degrees 08 minutes east, 593.41 feet,

thence north 25 degrees 28 minutes west, 911.46 feet to the southeast corner of tract 39 and point of beginning, thence north 25

degrees 28 minutes west, 660.0 feet, thence north 69 degrees 47

minutes west, 933.24 feet, thence south 26 degrees 24 minutes east,

544.50 feet, thence south 57 degrees 26 minutes east, 240.24 feet,

thence north 64 degrees 32 minutes east, 795.30 feet and point of

beginning, containing 14.644 acres more or less; ‘Unofficial tract 40, located in section 11, township 3 north, range 2

east, Boise meridian, Idaho, described as follows: from the corner of

sections 2, 3, 10, and 11, south 84 degrees 44 minutes east, 905.7 feet to the northwest corner of tract 40 and point of beginning, thence south

NonaRgregate

data, disclosure.

30 use 160.5.

Geothermal

resources, conveyance to Boise, Idaho.

PL5
94 STAT. 2310 PUBLIC LAW 9G-479—OCT. 21, 1980

Boise District Office Site, geothermal

resources

utiIi2ation.

22 degrees 40 minutes east, 593.75 feet, thence north 84 degrees 45

minutes east, 940.20 feet, tiience north IG degrees 15 minutes west,

315.2 feet, thence north 87 degrees 45 minutes west, 516.6 feet, thence

south 68 degrees 14 minutes west, 141.3 feet and point of beginning,

containing 4.95 acres more or less; “Unofficial tract 44, located in section 2, township 3 north, range 2

east, Boise m.eridian, Idaho, described as follows: from the corner of

sections 2, 3, 10 and 11, north 76 degrees 26 minutes 17 seconds east,

1,705.44 feet to the southwest corner of tract 44 and point of

beginning, thence north GO degrees 08 minutes east, 593.41 feet,

thence north 25 degrees 28 minutes west, 911.46 feet, thence south 64

degrees 32 minutes west, 795.30 feet, thence south 67 degrees 21

minutes east, 373.03 feet, thence north 58 degrees 18 minutes east,

264.53 feet, thence south 74 degrees 02 minutes east, 154.31 feet,

thence south 14 degrees 50 minutes west, 585.02 feet, thence south 9

degrees 31 minutes east, 165.79 feet and point of beginning, containing 9.94 acres more or less; be transferred by the Secretary of the

Interior in fee to the city of Boise upon payment by the city of Boise of

the fair market value, as determined by the Secretar>’, of the rights

conveyed.”.

Sec. 8. Title X of the Act of November 3, 1978, is further amended

by adding a new section 1003 to read as follows: “Sec. 1003. The Secretary of the Interior, through the Bureau of

Land Management, is authorized to utilize geothermal resources found under the parcel known as the Boise District Office Site,

described as commencing at the southv/est corner of the Old Fort

Boise Military Reservation, thence north 70 degrees 0 minutes east,

1.448.2 feet; thence north 4 degrees 32 minutes east, 627 feet to the

true point of beginning; thence the following courses and distances:

south 87 degrees 8 minutes west, 696.5 feet; thence north 21 degrees

2 minutes west, 532 feet; thence south 69 degrees 4 minutes west,

21.9 feet; thence north 22 degrees 40 minutes west, 86.3 feet; thence

north 84 degrees 50 minutes east, 993.6 feet; thence south 4 degrees

32 minutes west, 624.95 feet to the point of beginning; consisting of

11.53 acres, more or less, contained in section 11, township 3 north,

range 2 east, Boise meridian, Idaho.”.

Approved October 21, 1980.

LEGISLATIVE HISTORY: HOUSE REPORT No. 96-672 (Comm, on Science and Technology).

SENATE REPORTS; No. 96-897 (Comm, on Commerce, Science, and Transportation) and No. 96-937 (dximm. on Energy and Natural Resources). CONGRESSIONAL RECORD:

Vol. 125(1979); Dec. 3, 4, considered and passed House.

Vol. 126 (1980); Oct. 1, considered and pa.ssed Senate, amended.

Oct. 2, House concurred in Senate amendments.

o

PL6
Federal Register / Vol . 46, No. 6 / Friday, January 9, 1981 / Notices

Office of the Secretary

Definition of Aerospace Industry

Materials Needs; invitation for Expression of Pubiic and Private Sector Materiais Needs and

Recommendations for Federal Action

agency: Assistant Secretary of Commerce for Productivity, Technology

and Innovation.

action: Solicitation of written comment

from the public and private sector and

notice of public workshop to review

these public and private sector views.

summary: In Section 5(C) of the Materials and Minerals Policy, Research

and Development Act of 1980. Pub. L

96-479, the Secretary of Commerce, in consultation with the Federal

Emergency Management Agency, the Secretaries of Interior and Defense, and

the Director of the Central Intelligence

Agency, is directed to report to the Congress before October 21, 1981, on

critical materials needs in a specific case related to national security,

economic well-being and industrial production.

As used in the Act, the term

“materials” means substances, including

minerals, of current or potential use that

will be needed to supply the military. Industrial and essential civilian needs of

the United States in the production of goods or services, particularly those which are primarily imported or for which there is a prospect of shortages or uncertain supply, with the exclusion of food and of energy fuels used as such. The Department is considering the aerospace industry as a focus for the

first study and has begun to examine

anticipated materials used in the aerospace industry. An early goal is to select at least three to five selected materials for detailed study of industry

needs, anticipated supplies, and the implications of severe shortages or supply interruptions. Using several

alternative scenarios, the study will estimate the industrial demand for several selected materials. These

demands will be compared with total

world supply/demand estimates for the selected materials in order to support

analyses of the national security,

economic, and industrial production

implications of anticipated supply/

demand disparities.

The Department, by this Notice, is soliciting information from affected individuals and organizations

supporting identification of (1) the particular materials to be examined and

(2)

the current or anticipated problems

with these materials. Suggestions for corrective action will also be

appreciated.

Written statements should be

addressed to Dr. John B. Wachtman. Jr., National Bureau of Standards, Materials

Building B308, Washington. D.C. 20234

for receipt by February 5, 1981. On February 9-10, 1981, the Department of Commerce will hold a Workshop that will be conducted by

John B. Wachtman. Jr., of the National Bureau of Standards, Philip Goodman of

the OfBce of Productivity, Technology

and Innovation and James Owens of the Bureau of Industrial Economics. Various

Departmental activities in the critical materials area are being coordinated

with Pub. L 96-479 responsibilities

through a Task Force under the Chairmanship of Jordan J. Baruch: John

B. Wachtman, Jr., Vice Chairman; James

Owens: Philip Goodman: Antonio

Macone, Office of Commodity Policy;

Leon Karadbil. Office of Industrial Mobilization; Candice Stevens, Office of

Policy, and Robert B. EUert, Office of the General Coimsel. The members of this Task Force will also participate in the Workshop. This Workshop will consist

of summary presentations of responses

to the above questions by the

institutions submitting them, followed

by a general discussion. This Workshop

will take place in the Green Auditorium

of the National Bureau of Standards, in Gaithersburg. Maryland beginning at 9:00 a.m. bo^ days and ending no later than 4:00 pun, on February 10th* SUPP1£MENTARY INFORMATION: All major critical materials needs areas of

the aerospace industry will be open for discussion:

(1) Supplies of, and requirements for, raw and bulk materials;

(2) Supplies of, and requirements for, specifically engineered materials and

forms, including special parts; and

(3) The development of substitute materials including advanced highly

engineered materials. Among the concerns that will be

addressed are:

(1)

Anticipated requirements in the foreseeable future;

(2) Current or anticipated difficulties

in obtaining materials in any form:

(3) Prospects for, and implication of. fluctuations in demand, supply, and

prices:

(4) Timely availability of processed

materials and pans: and

(5) Othermaterials issues of prime

concern to the aerospace industry.

The materials finally chosen for detailed study will be specific and

should t3rpify the full range of materials

needs of the industry. For example,

possible specific materials for close examination might include the

following:

(1) Cobalt, as a raw material on which

the U S. is import dependent;

(2) Titanium forgings, as a special

processing capacity need; and

(3) Rapidly-solidified alloys, as a promising route to both conservation of materials or increased perfonnance.

Public and private sector views are

also solicited cm recommended actions

to deal with aerospace materials

problems such as:

(1) improvement in materials

production base;

(2) stockpiling, both. public and

private;

(3) Federal emergency allocation procedures;

(4) improvement of capacity for airframes, engines, and compements:

(5) expanded conservation and

recycling of materials: and

(6) Improved research and

development of new materials both for subsitution and for higher performance.

All written comments that are

furnished in response to this invitation

will be available for inspection and

copying prior to the workshop in the Department's Central Reference and

Records Inspection Facility. Room 5317,

Main Commerce Building. 14th Street between £ Street and Constitution

Avenue, NW„ Washington. D.C. 20230.

Signed: ]annaiy 6. 1981. Jordan |. Barudi.

Assistant Secretary farPmdactivfty.

Technology, aadJnnovation.

|FR Uac. n-730 KiM V-S-9I: ara| BILUNG CODE 3510-13-M

FI
WORKSHOP ON CRITICAL MATERIALS NEEDS OF THE AEROSPACE INDUSTRY

February 9

8:30 Registration

Introductory Remarks John Wachtman

9:00 Summary of Inputs Received John Wachtman

9:15 Congressional Concerns Edwin Hall/Paul Maxwell

9:30 Economic Analysis of Aerospace Industry James Owens

Session I: Supplies of Critical Raw Materials Antonio Macone

9:45 Keynote Talk Walter Hibbard

10:15 Break

10:30 Supplementary Remarks

11:20 Further Supplementary Remarks from Floor

Session II: Supplies of Critical Engineering Philip Goodman

Materi al

s

12:00 Keynote Talk William O'Donnell

12:30 Supplementary Remarks

1:00 Lunch

2:00 Supplementary Remarks, continued

2:20 Further Supplementary Remarks from Floor

3:00 Break

Session III: Substitution, Conservation, John Wachtman

Specialized Recycling, and

Higher Performance

3:15 Keynote Talk Allen Gray

3:45 Supplementary Remarks

4:35 Further Supplementary Remarks from Floor

5:15 General Discussion

6:00 Adjourn

PI
February 10

9:00 Task Force Preparation of Views on Issues, Possible

Actions, and for Specific Materials for Study*

I. Critical Raw Materials Supplies James Owens

Exec. Sec.

II. Critical Engineering Materials Supplies Philip Goodman

Exec. Sec.

III. Substitution, Conservation, Recycling, John Wachtman

and Higher Performance Exec. Sec.

Lunch

Reports of Task Force Chairperson John Wachtman

1:30 I. Critical Raw Materials Supplies

1:45 Di scussion

2:15 II. Critical Engineering Materials

Suppl ies

2:30 Di scussion

3:00 Break

3:15 III. Substitution, Conservation, Recycling,

and Higher Performance

3:30 Di scussi on

4:00 Adjourn

* Chairperson to be elected by Working Groups

P2
SPEAKERS

Keynote:

Supplementary

Keynote

Supplementary

Critical Raw Materials

Professor Walter Hibbard

Virginia Polytechnic Institute

Remarks: E. Andrews

Vice President for Materials & Sciences

Allegheny Ludlum

Russell Babcock

Exploration Manager

Bear Creek Mining Co.

Robert Brumwell

Executive Vice President

Cabot Mineral Resources

John Morgan

Chief Staff Officer

U.S. Bureau of Mines

David Swan

Vice President, Environmental Issues

Kennecott Copper

Critical Engineering Materials

William O'Donnell

Manager, Materiel

Sperry Gyroscope

Remarks: C. J. Beagle

Manager, Material Administration

Rockwell International

Sally Couluris

Financial Analyst

Gruman Aerospace

Everett Gray

Acting Corporate Director of Materials

General Dynamics

John M. Kerr

Director of Materiel

Rockwell International

William Owczarski

Manager, Technical Planning

Pratt & Whitney

P3
Substitution, Conservation, Recycling & Higher Performance

Keynote;

Suppl ementary

Dr. Allen Gray

Technical Director

American Society for Metals

Remarks: John J. de Barbadillo

Research Recovery Section Manager

Inco

Edward Dulis

President

Colt Industries

William Owczarski

Manager, Technical Planning

Pratt & Whitney

Professor John K. Tien

Columbia University

Dr. Edward Whelan

Research Supervisor

Climax Molybdenum

P4
Further information can be obtained from:

Dr. John B. Wachtman, Jr.

Director, Center for Materials Science

National Bureau of Standards

Washington, DC 20234

(301 ) 921-2891

or

Dr. Bruce Steiner

Special Assistant, Center for Materials Science

National Bureau of Standards

Washington, DC 20234

(201 ) 921-2891

P5
INTRODUCTORY REMARKS

John B. Vlachtmanv Jr.

National Bureau of Standards

T1
REMARKS FOR INTRODUCTORY SESSION

WORKSHOP ON CRITICAL MATERIALS NEEDS OF THE

AEROSPACE INDUSTRY

February 9-10, 1981

National Bureau of Standards, Gaithersburg, MD

John B. Wachtman, Jr.

Director, Center for Materials Science

Good morning ladies and gentlemen. I would like to call this

meeting to order. This is a Public Workshop on Critical Materials Needs

in the Aerospace Industry. I am John Wachtman, Director of the Center

for Materials Science, National Bureau of Standards, Department of

Commerce.

• • • • •

This workshop has been organized into three sessions to bring out

the full range of materials uses in the aerospace industry from raw

materials, through products and recycling, and to bring out needs associated

with future developments.

In each of the three sessions today, we will follow the same format.

First, a keynote talk. Second, supplementary remarks by several speakers

designed to highlight special areas of materials concern within the

general topic of the keynote talk. Third, short presentations by members

of the audience. We are asking that the latter be held to a maximum of

5 minutes oral presentation in order to accomodate as many speakers as

possible within the time available. Additional short presentations

would be welcome during the general discussion session at the end of the

day. If still more time is needed for short presentations and general

discussion, we are prepared to modify the schedule to take another hour

tomorrow. Please help allow everyone to be heard by making your point

directly and concisely.

Tl-1
This is a completely open meeting. It was announced in the Federal

Register. All written material submitted will be placed on file at the

Department of Commerce and will be available to the public through the

Department's Reference and Records room. Also, we have made copies of

the written input received through last Friday for distribution today.

We ask that everyone having a written report to submit to us today,

please give it to one of the secretaries at the registration desk. We

will attempt to duplicate this material and have it available for distribution

tomorrow. We are not, I repeat not recording the discussion, so it is

important that we have your written input. It would be most useful to

have any additional input by the end of February.

In tomorrow's workshop session we plan to divide up into three

task forces. Please sign up at the registration desk for your choice of

task force. This will enable us to assign meeting rooms appropriate to

the size of the task force. Each task force will elect its own chairperson preferably someone outside government. We are asking one task

force to take the area of critical raw materials, a second to take the

area of critical engineering materials, and a third to take the area of

substitution, conservation, specialized recycling and higher performance

materials. We would like each task force to deliberate for half a day.

Beginning at 1:30 p.m. tomorrow, each task force chairperson should

present a 15-minute report summarizing the various issues on materials

needs, possible programs to meet these needs, and possible choices of

materials for later detailed study to illustrate these needs and programs.

Following this workshop, the Department of Commerce team will carry

out a more detailed study of a few materials selected as examples. We

will certainly work closely with private sector groups at the later

Tl-2
stages of the study. Details of our later work have not been fixed, but

will be decided upon after review by the Secretary of Commerce of the

results of this workshop. We thank you very much for your participation

and look forward to hearing your views during the next 2 days.

A total of 30 written comments were received by the close of

business Friday. Copies of these can be picked up at the registration

desk. Many of the respondents are present today and can summarize their

views later. To give a general overview of the main views expressed, we

prepared a series of brief summary statements. A number of themes ran

through many of the submissions, although conflicting views were expressed

in some cases.

$1 ide 1 . There were general comments on the potential for materials

limitations in national security, economic well-being, and industrial

production. Need for a concerted national policy to avoid such limitations

was expressed. There was complete agreement with the choice of the

aerospace industry for a case study, with one exception who wanted the

Secretary's report to deal only with certain imported materials, especially

chromium, cobalt, platinum, and manganese.

SI ide 2 . These are, of course, included in this workshop. Concerns

were expressed with widely fluctuating prices for some materials, including

cobalt. Great concern was expressed over the impact of a cutoff in

supply of critical imported materials. The specific materials included

Cr, Co, Pt, Mn, Ti, Ta, Ni , Nb, and A1

.

Slide 3 . Suggested actions included concerted free-world resource

management through NATO and other alliances. Strengthening of the

domestic exploration, mining, and related industries was strongly recommended.

Suggestions included greater access to Federal lands and modification of

regulations that inhibit development of domestic resources.

Tl-3
SI ide 4 . Concern was expressed about future supply of special

engineering materials and products such as titanium, certain stainless

steels, and certain aluminum alloys. Long lead times have been a problem.

They are apparently decreasing but may lengthen if a buildup occurs.

Slide 5 . Additional concern with engineering materials included

special processing capacity, in particular, very large presses, and the

impact of high energy costs.

Slide 6 . A common view concerned the importance of relying on

market mechanisms and private industry to solve problems. It was suggested

that special situations could justify the use of the Defense Production

Act and that market guarantees may be needed for certain cyclical defense

industries.

Slide 7 . One recommended help in this area is the use of multiyear contracts by the Defense department. Tax incentives were recommended

to favor expanded or modernize production.

SI ide 8 . Another type of suggested action involved stockpiling.

Strong recommendations for upgrading stockpiled materials were made.

Suggestions for increased stockpiling were also made, including the

encouragement of private stockpiling. Consideration of stockpiles for

related non-defense purposes was recommended in a few cases, but appears

controversial

.

Slide 9. Continued effort to develop advanced materials and resources

was strongly recommended. Specific needs include improved high temperature

materials for engine and high strength-to-weight and stiffness-to-weight

materials for more fuel-efficient aircraft, spacecraft and missies.

Accelerated efforts in conservation and substitution through the

application of technology was recommended, as was the development of

specialized recycling procedures for critical materials.

Tl-4
Slide 10 . It was suggested that both known and new substitution

technologies should be documented and "stockpiled" to make them more

rapidly useable and to identify gaps. Improved materials characterization

is recommended to support both new development and specifications for

substitution. Better industry/university/government cooperation and a

more favorable climate for longer-term research and development were

recommended.

Let me turn now to a brief mention of groups outside the Department

of Commerce who are associated with this activity. The Secretary's team

is being assisted by liaison representatives from other executive branch

agenices of the Federal Government. These include representatives from

the Federal Emergency Management Agency, the Department of the Interior,

the Department of Defense, the Central Intelligence Agency, the National

Aeronautics and Space Administration, the Department of State, the

Department of Transportation, and the Department of Energy.

The Secretary's team is maintaining contact with the staff of

several committees of Congress which are especially concerned with

National Materials Policy. The following staff members have indicated

their intention to attend this workshop:

1) From the Senate Committee on Commerce, Science, and

Transportation: Ed Hall, Ed Smick, Cheryl Troph,

and Mel Ciment.

2) From the House Committee on Science and Technology:

Paul Maxwell and Tony Scoville.

3) From the Senate Committee on Energy and Natural

Resources: Debbie Bogossian.

4) From the House Committee on Interior and Insular

Affairs: Tom Wolfe and Sharon Cockayne.

Tl-5
Our next speaker is Mr. Paul Maxwell from the staff of the House

Science and Technology Committee. This Committee has played a leading

role in discussion of National Materials Policy and introduced a bill

which eventually became the Act which lead to today's Workshop.

Our next speaker is Mr. James Owens, Director of the Office of

Basic Industries of the Department of Commerce. He will briefly describe

the Department's plans for economic analysis to support the Secretary's

report.

We will turn now to the first session, which is on Critical Raw

Materials. I would like to introduce the Session Chairperson, who is

Mr. Anthony Macone, Acting Director of the Office of Commodity Policy of

the International Trade Administration.

Tl-6
GENERAL COMMENTS

An effective national materials policy needs to be

developed and implemented

Agree with choice of aerospace industry for case study

RAW MATERIALS

Concern with fluctuating prices in recent years

Potential supply disruptions of imported materials

Specific concerns with: Cr, Co, Pt, Mn, Ti, Ta, Ni , Nb, A1

Need concerted free world management through NATO and other

all iances

Step up exploration and development of domestic deposits,

including increased access to Federal lands

Modify environmental and other regulations that inhibit

development of domestic resources

ENGINEERING MATERIALS

Long lead times (forgings and extrusions) have occurred and

may increase if an aerospace buildup takes place.

Larger press capacity (75,000 - 200,000 tons) needed

Large scale power use restrictions inhibit new capacity

construction (e.g., aluminum)

MARKET FACTORS

Country should rely primarily on free-market mechanisms,

removing barriers to market

Defense Production Act needed for special situations

Market guarantees are needed for cyclical defense industries

Multi-year contracts should be utilized by Defense Department

Tax incentives are required to expand or modernize production

capacity

Tl-7
STOCKPILING

The quality of specific stockpiles such as that for cobalt

should be partially upgraded for higher technology uses;

material should be kept up to date

Increased stockpiling of certain commodities is needed

Encourage private stockpiling

Consideration of stockpile use in non-defense situations

ADVANCED MATERIALS

Higher performance materials and related processing technology

are needed to improve aircraft performance and fuel efficiency:

one example, rapid solidification technology

Specialized recycling technology needed, e.g., for tantalum

"Substitution preparedness" should be systematically developed

Materials characterization is needed as a basis for the

development of innovative materials

Industry/university/Government cooperation on research and

development should be stimulated

More favorable climate for longer-term research and development

is needed

Tl-8
CRITICAL ENGINEERING MATERIALS

ISSUES AFFECTING THE U.S. SUPPLY OF MATERIALS

W. R. Hibbard. Jr.

Virninia Polytechnic Institute and State University

12
CRITICAL ENGINEERING MATERIALS

ISSUES AFFECTING THE U.S. SUPPLY OF MATERIALS

W. R. Hibbard, Jr.

Virginia Polytechnic Institute and State University

Blacksburg, Virginia 24061

Historically, concerns for the supply of materials have been related

to those materials (manganese, chromium, tin, cobalt, rubber) which are

not found in the U.S., and those shortages created by unanticipated actions

by governments such as vjar, embargos and regulation as well as over zealous

purchasing agents.

In 1908 during the first Conservation Movement, Theodore Roosevelt

sponsored a Governors Conference which estimated finite amounts of materials,

calculated exhaustion dates, and prescribed conservation.

After World War I, in response to supply concerns, the U.S. Geological

Survey studied the availability of materials and in 1920 reported that

supplies were adequate.

During World War II when sources became unavailable or capacities were

inadequate, the government rushed new facilities and R & D leading to new

substi tutes

.

After World War II, government and industry worked closely together

in an era of economic growth, largely because it was recognized that the

winning of the war was related to such cooperation and the splendid performance of industry and innovation.

In 1952, the President's Materials Policy Commission expressed concern for the rate of materials consumption in World War II and the Korean

War and forecast certain shortages by 1970. (They did not occur.)

Prepared for Department of Commerce Workshop on Critical Materials Needs of

the Aerospace Industry, February 9, 1981.

T2-1
In 1962 Scctt pointed out that goods require materials with certain

properties in order to perform at economically acceptable levels. Competition between materials derives from the most beneficial source of these

properties.

Barnett and Morse reported in 1963 that there was no evidence of increasing resource scarcity between 1870 and 1957 because when a particular

material becomes more scarce, the rate of increase in its price tends to

be offset by substitution of other resources or new resources or new

technology.

By the mid 1960 's, the government and industry honeymoon was over and

starting with the environment movement, an government and industry adversary

position developed between them, which led to the decade of regulation.

In 1968 I testified before the Senate Interior's Subcommittee on Materials

that the U.S. was the largest producer and consumer of materials because even

in the fact< of lower grade ores, rising labor and environmental costs, it

had an aggressive program of advancing technology. Thus between 1900 and

1965, copper reserves grew from 18 to 85 million tons as a result of technology

even though the average ore grade dropped from 4% to 0,7%.

At that time, the U.S. had become the largest importer of materials.

Trends indicated that without new technology, new discovery and with government intervention on price, and long lag times on new facilities, shortages

might develop. (Not in resources but in materials production).

Assuming an adversary posture toward industry the government undertook

an era of public protectionism which increased the costs and uncertainties

of innovation (an early case was new drugs) and stifled productivity to protect the workers (an early case was coal mining). At that time, technology

T2-2
was not a factor--it existed, but was not used in the face of di s-economi es

created by the government. Japan adopted our technologies, and now lead us

in this regard. We did not develop newer technology to overtake them. R & D

shrunk to short term fixes. The mining & materials industries became the

whipping boy of the government and the media.

Under these conditions, economic growth was constrained - consumer confidence disappeared in the era of hassle, recessions developed, and the wage

and energy spirals led to inflation. Voters could believe either side

depending on their wishes.

In 1970 the Mining and Mineral Policy Act became law and required an

annual report on the state of the mineral industry. Both the law and the

reports were ineffective.

In 1973 the National Commission on Materials Policy reported concern

for the supply of materials and recommended actions to preserve such supplies.

After the shortages of 1974, the Commission on Supplies and Shortages

reported in 1976 that the problem was not resource limitations but government

pol icies.

In 1979 the G.A.O. reported that the future of the materials industry

was dim because government actions have discouraged investment in domestic

projects so that imports of zinc rose 89%, copper over 19% and aluminum by

50%. Basic U.S. materials industry is moving out of the U.S. where tax incentives and friendlier governments promote foreign investments.

Every step of the materials cycle is controlled by Federal Agencies

which promulgated 19,366 new regulations in 1979. As a result, regulation

controls the destiny of the U.S. materials industry. The total costs of

Federal regulation to industry is estimated at $100 billion/yr. As the

government grew by $100 billion/yr to $600/billion in 1980, the GNP has

changed to an economy with only 43% in goods and products. $315 billion in

lZ-3
transfer payments to 65 million people (7 million unemployed, 25 million

poverty, 28 million retired ) are not included in the GNP. The government

competes in a captive market against goods and products for the dollar of

the taxpayer, who is required to pay taxes. Can a service dominated economy

support 100 million workers with 65 million getting transfer payments?

With $500 billion in regulation costs and transfer payments, $95

billion in interest payments and $75 billion in government borrowing, it

is no wonder imports are about $250 billion. The goods producing industry

has been struggling through the recession without aid from the government

and without sympathy from the press or the people (except those unemployed

thereby). R & D concentrated on regulation. Innovation in new materials,

processes and productivity disappeared.

Due to regulation lag and excessive costs for domestic products, the

U.S. is importing large amounts of materials in the form of finished products

and components. Most of these materials could be available from domestic

sources. Due to the effect of imports on inflation, unemployment and the

balance of payments, the true cost of imported materials is probably twice

their import price.

Unmindful, the government did not intervene; but generated the National

Materials and Minerals Policy Act of 1980 to restudy the question again.

It is hopeful that the new administration will listen, understand and relieve

the situation.

Poverty level can be calculated several ways which result in the poverty

level population ranging from 11.5 to 25 million. There are 25 million

over 62 years of age, but 33 million receive the original basic type of

Social Security.

T2-4
Laws friendly to interveners have increased the time lag for construction and the economic uncertainty of regulatory demands for new

or expanded facilities. Inflation due to increased government spending

($100 billion/yr increase for last several years) and government borrowing

which has limited available capital has led industry not only not to expand

U.S. capacity but also to withdraw from the domestic materials business, as

in the case of Anaconda who is shipping its copper to Japan.

What is the broad outlook for materials availability in the U.S.?

World interdependence! Certainly for the critical materials: Chromium,

cobalt, titanium, nickel, aluminum and tantalum.

Is this disasterous? Japan is dependent on imports for most materials

and yet has a strong economy based on goods and products. Without large

military costs, Japan can focus on economic growth through the import of

raw materials, the export of high value-added products and yet with a concern for the environment -- through careful planning and unique cooperation

between industry and government.

Perhaps the U.S. should seek similar cooperation and understanding

between government and industry. Perhaps some of the $500 billion now spent

by the government for non-productive purposes could be used to balance the

budget, support innovation and productivity and return the U.S. to a position

of leadership in technology.

Economic growth will not be restored, in my opinion, until we return

to government-industry cooperation and confidence, until public protectionism

is suppressed to the level which exists in Japan and West Germany (based on

government-industry understanding and cooperation) and consumer confidence

is restored based on a single set of facts (not controversies) coming from

T2-5
both industry and government, and finally, the media returns to the traditional role of accurately informing the public rather than seeking out only

controversi es

.

The choice is before us. We need action, not studies or new laws. Let's

get the existing regulations back to reality.

Development or disaster Quo Vadis?

T2-6
BIBLIOGRAPHY

Barnett, H. J. and C, Morse. Scarcity and Growth: The Ec onomics of

Natural Resources Availability . Baltimore, Md . : John Hopkins

University Press, 1963.

Beizer, James, Mineral Alarm Sounded at Congressional Hearing, Mining Congress

Journal , February 1981, p. 31.

Board on Mineral and Energy Resources, R eview of National Mineral Resource

Issues and Problems , Commission on Natural Resources. The National

Research Council, Washington, D.C., 1978.

Comptroller General, The U. S. Mining and Mineral Processing Industry: An

Analysis of Trends and Implications, G.A.O., Report to Congress ID-80-04,

Oct. 31, 1979.

Hibbard, W. R., Mineral Shortages . Hearing Before the Subcommittee on Minerals,

Materials and Fuels of the Committee on Interior and Insular Affairs, U.S.

Senate, Washington, D. C., March 21, 1968

Hibbard, W. R., Materials in Science and Technology Policy: Per spective for

the 1980's , New York Academy of Sciences, Vol . 334, p.

Landsberg, H. H., L. L. Fischman, and J. L. Fisher, Resources in America's

Future . Baltimore, MD.: Johns Hopkins Press, 1 963

.

The Mining and Minerals Policy Act of 1970 (PL-91-631) and Subsequent Annual

Reports of the Secretary of the Interior.

National Commission on Materials Policy. Materials Needs and th e Envi ronment

Today and Tomorrow . Washington, D.C., June 1973 (PL 91-512).

National Commission on Supplies and Shortages, Government and the Nations

Resources , Washington, D. C. 1976 (PL 93-426)

.

National Materials and Minerals Policy Research and Development Act of 1980

(PL 96-479).

President's Materials Policy Commission, Resources for Freedom, Washington,

D. C. 1952.

Scott, A., "The Development of the Extractive Industry." Can. J. Econ. and

Polit. Sci . 28 (1962): 70-87.

Smith, V. K. and J. V. Krutilla, Resource and Environmental Constraints

to Growth, Am Journal of Agriculture Economics, Vol. 61, No. 3, Aug.

1979, p. 395.

U.S. News and World Report. End a Federal Rule and a New One Replaces it . March 3, 1981 , p. 61

.

U.S. News and World Report. Still More Billions to Prop Income. March

3, 1980. p. 73.

T2-7
U.S. News and World Report. When Reagan Takes an Ax to Carter Budget.

January 26, 1981 , p. 73. ~ ~
CRITICAL AEROSPACE HINERAL MATERIALS

John D. Plorcian

Bureau of Hines

T3
•For: Dept, of Commerce Workshop on

Critical Materials Needs of the Aerospace Industry

Gaithersburg, Md.

9 & 10 February 1981

Dr. John D. Morgan

Chief Staff Officer

Bureau of Mines

Dept, of the Interior

Washington, DC 20241

CRITICAL AEROSPACE MINEPvAL MATERIALS

Accelerating defense and energy programs can be expected to generate

increased dEmands for such materials as chromium, cobalt, columbium,

molybdenum, nickel, platinum, tantalum, and titanium; especially materials with

resistance to high temperatures, corrosion, and erosion. For example, the

Pratt & Whitney F-lOO Turbofan engine (below) for the F-15 and F-16 planes

requires 5366 lb of titanium, 5204 lb of nickel, 1656 lb of chromium, 910 lb

of cobalt, 720 lb of aluminum, 171 lb of columbium, and 3 lb of tantalum.

Table 1 and Appendix A provide more details on several important aerospace materials

The efficiency of thermodynamic processes is enhanced by increased temperature

differentials and the number of elements with high melting points is very

limited (Fig. 1). Even electric power generation in conventional steam powerplants will make unprecedented demands upon special property materials if air

quality regulations are to be realized. At the present time in the United

States over 565 million tons of coal are burned annually by electric utilities,

and about half of our electricity is derived from coal. At least 15 tons of

air are required to bum one ton of coal. If vigorous stack gas cleanup is to

become a reality, 8 billion tons of hot corrosive gases will have to be

handled. While the major constituents in powerplant stack gases are well known,

mineral fuels contain many more elements when analyzed at the parts-per-mi 1 1 ion

range, and these trace elements also will be found in some form in stack gases,

fly ash, or bottom ash, requiring treatment to avoid environmental problems.

Coal gasification and liquefaction, oil shale and tar sand development,

magnetohydrodynamics, geothermal and ocean thermal energy, fission and fusion

- all will call for special property materials.

T3-1
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Fig. 1

NEW AND I.^^PROVED MINERAL-BASED MATERIALS ARE NEEDED FOR A WIDE

VARIETY OF DEFENSE. AEROSPACE. AinD ENERGY PROGRAMS SUCH AS:

JET ENGINES. TURBINES. COAL GASIFICATION AND LIQUEFACTION.

MAGNETOHYDRODYNAMICS. FISSION. FUSION AND POLLUTION CONTROL.

FAHRENHEIT CELSIUS

7000°

RESISTANCE TO:

HIGH TEMPERATURES.

CORROSION. AND

ABRAOION ARE REQUIRED.

BUT ONLY

A LIMITED NUMBER

OF ELEMENTS HAVE

HIGH MELTING POINTS

THE MELTING POINT OF

IRON 2800°F (1528°C) ON

WHICH STEEL METALLURGY

IS BASED

COMMONLY USED

METALS GENERALLY

HAVE LOW MELTING

POINTS

CARBON

TUNGSTEN

RHENIUM

OSMIUM TANTALUM

MOLYBDENUM

COLUMBIUM

BORON

IRIDIUM

HAFNIUM RUTHENIUM

RHODIUM

CHROMIUM

THORIUM

VANADIUM

PLATINUM ZIRCONIUM

LUTETIUM titanium

PALLADIUM THULIUM SCANDIUM

IRON cobalt nickel

BERYLLIUM

MANGANESE

URANIUM

COPPER GOLD

SILVER

ALUMINUM MAGNESIUM

ZINC

LEAD

TIN

MERCURY

{THIS CHART SHOWS ALL KNOWN ELEMENTS WITH MELTING POINTS ABOVE

IRON AND MAJOR METALS MELTING AT LOWER TEMPERATURES)

T3-3
STRATEGIC VULNERABILITY

Assessments of strategic vulnerability must consider not only the position

of the United States, but also that of its Allies. Nations and supranational

groups with which we are closely allied are even more dependent upon imports

for many strategic materials than is the United States (Fig. 2). In contrast,

the COMECON bloc is largely self-sufficient - the result of a long-pursued

policy of autarky on the part of the USSR, which, with an area of 8 1/2 million

square miles is ideally situated for such a policy. Further, not just import

dependence but also many other factors must be considered. Materials on hand in

strategic stockpiles, other government stocks, and industry stocks are often

significant. For example: the U.S. posture in several important materials such

as tin, tungsten, manganese, and chromium v.'ould be quite different were it not

for the strategic stockpile, which, hov/ever can only be called upon for defense

purposes. Not part of the strategic stockpiles per se, large gold reserves held

by the Treasury and large helium reserves held by the U.S. Bureau of Mines

assure supplies in an emergency. Possibilities of substitutes and alternates

must also be considered, as must the possible use of low-grade presently non-^

commercial domestic mineral deposits. For example: chromium has been recognized

as an important strategic material ever since World War I. Over many years the

U.S. Geological Survey and the U.S. Bureau of Mines helped to discover and to assess numerous domestic deposits. The Bureau produced chrome concentrates

from domestic deposits as well as ferrochromium, chromite refractories, chromium

metal, and chromium chemicals. Consequently, submarginal deposits could become

sources of supply at some future time. Current Bureau research includes

recovering chromium, nickel, and cobalt from laterite deposits and also from flue

dusts, plating wastes, and other residues.

DEFENSE PRODUCTION ACT

The Defense Production Act of 1950, as amended, currently in effect through

September 30, 1981, provides the basis for defense mobilization efforts. Title I of the DPAct provides specific authority for priorities and allocations, and

Title III provides broad authority for expanding supplies of materials - making

specific provisions for exploration, development, and mining of strategic and

critical minerals and metals, and the development of substitutes for strategic

and critical materials. In 1980 $3 billion was made available under the DPAct

for synfuels, but no funding for nonfuel minerals is presently available. The

creation or enlargement of domestic productive capacity, if it can be done at

reasonable prices should in most cases provide greater flexibility than stockpiles. In fact, one ton of domestic productive capacity is equal to three tons

of stockpiled material under current stockpile planning. During the Korean War

DPAct supply expansion programs as of June 3D, 1956, reached $8.4 billion in

gross transactions with probable ultimate net cost of $0.9 billion. Major

materials programs included:

Aluminum $1.5 bill ion Manganese 0.4 *' Cobalt 0.1 " Titanium 0.9 II Tungsten 0.4 " Columbium-Tantalum 0.1 " Rubber 0.9 II Tin 0.2 " Other materials 0.4 " Nickel 0.9 II Molybdenum 0.2 " (more than 50)

Copper 0.7 II Magnesium 0.1 " ($ 1 billion of machine tools was also covered)

In a few years these programs doubled U.S. aluminum production, increased U.S.

copper mine capacity by a quarter, initiated U.S. nickel mining, created the

titanium industry, quadrupled U.S. tungsten mining, and greatly expanded the

world col umbi um-tantal urn mining and processing industries, as well as expanding

supplies of many other materials for production needs and stockpiles. The latest major

non-fuel use of the DPAct was an $83 million loan in 1967 in the Vietnam War

period to facilitate the Duval Sierrita copper mine development.

T3-4
sm-won

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(The 12 nonfuel minerals of the Nonfuel Mineral Policy Study)

U.S. EEC JAPAN COr.ECON
5 STOCKPILING

Strategic stockpiles have played a major role in U.S. defense planning

ever since World War II. The Strategic and Critical Materials Stock Piling

Revision Act of 1979, PL 96-41, reaffirmed the need for stockpiling, conservation, and development of domestic sources. It specified that "the purpose of the stockpile is to serve the interest of national defense only and

is not to be used for economic or budgetary purposes," and that "the quantities

of the materials stockpiled should be sufficient to sustain the United States

for a period of not less than three years in the event of a national emergency.

The Act also reaffirmed the need to develop domestic resources. At current

prices the overall stockpile status as of mid-1980 was about as follows:

$20 billion

$ 8 " $12 " $ 6

"

$ 6

"

- cost of all goals

- value of inventories toward goals

- cost to complete all goals

- value of excess materials that could be sold

- additional financing needed

Table 2 lists the 93 materials singled out by the U.S. Government as "basic

stockpile materials," largely on the basis of import vulnerability. Several of

the 93 materials have been recognized as stockpile candidates ever since World

War I, while newer ones have been added to the list only after research and

development have proved their utility, such as titanium. 80 of the stockpile

materials are of mineral origin and 13 are of agricultural origin. However,

it would be fallacious to conclude that only the 93 are strategic. For

example, neither steel, nor iron ore, nor coke, nor coking coal, nor limestone

is on the stockpile list, yet steel is considered a highly strategic material

in every modern economy. Despite the large domestic synthetic rubber industry

developed in World War II, natural rubber, a major stockpile item, is still a preferred material for tires for aircraft and many off-the-road vehicles

because it resists high temperatures and abrasion. Materials have been removed

from the stockpile list because substitutes or alternates have been found.

For example, hog bristles for paint brushes have been replaced by tapered nylon,

and Egyptian extra long-staple cotten by domestic sea island cotton and/or

synthetic fibers. The Federal Emergency Management Agency (FEMA) oversees

stockpile management, while the General Services Administration (GSA) buys,

sells, rotates, and stores stockpile materials.

TAX RELIEF

Also in the Korean War period accelerated amortization ("rapid write-offs"

of capital expenditures), authorized by Sec. 168 of the Internal Revenue Code,

was a powerful device to encourage capital investment in areas of national

concern. This incentive alone was sufficient to add nearly one-quarter to U.S.

steel capacity. In the period from October 1950 through December 1956, industrial expansion valued at $37 billion was certified, of which 61%, or $22

billion, was eligible for rapid amortization. The total amount then certified

in materials-related industries was as follows:

Mining

Primary metal industries

Chemical and allied products

Products of petroleum and coal

Pipeline transportation

$2.2 billion

$5.7 " $2.9 " (Aircraft, machine tools

$3.0 " presses and forges, etc

$1.4 " were also certified)

Use of the tax laws to encourage domestic production of strategic minerals is

not limited to periods of war or national emergency. As a general rule,

minerals considered more strategic are allowed higher percentage depletion rates.

Exploration for minerals is also specifically encouraged by the tax laws.

T3-6
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8 INDUSTRY STOCKS

The use of flyvheels Co deliver power

to offset sudden increases in load is accepted practice in machinery design, and

the use of surge bins is standard practice

in materials handling. Expanding such

analogies to national economies points to the

desirability of maintaining larger than

normal working inventories to deal with

unexpected interferences with normal supplies

such as may be occasioned by policicoeconomic

disruptions or such natural disasters as earthquakes, landslides, hurricanes, and

floods. However, escalating costs and higher

interest rates in recent years have tended to discourage the private sector from maintaining large inventories. Tax incentives

for the maintenance of larger than normal

working invent jries have been in effect in

Sweden for a n nber of years. In Che Swedish

system a large proportion of the acquisition

costs of raw materials can be written off in computing taxable income for the year in

which materials are acquired, in contrast

to current U.S. practice, which limits

deduction of raw material costs to the year

in which materials are actually used. Such

an incentive can cover the wide variety of

materials in everyday use (for example,

"chromium" can be metallurgical, chemical,

or refractory ores from many sources; high-,

medium-, or low-carbon f errochromium,

exothermic or electrolytic chromium metal;

sodium bichromate; or even the chromium

content of standard stainless steels as used

in motor vehicle manufacture) . Moreover,

such an incentive permits informed judgments

by numerous buyers and sellers, rather than

requiring direct market intervention by

government entities. Prudent materials

users should base upon reliable sources of

supply, and, if some materials supplies are deemed unreliable, they should have either

alternative materials or alternative

designs in hand, or they should build up larger than normal working inventories.

Extract from:

Morgan paper 800113 in

Society of Automotive Engineers

"Materials Availability for

Automotive Applications"

SP 462, Feb 1980

Swrtim’i lax proTinioni go\cmlng valuation of in- Tcntorics aro designed to eliminate tlic taxation of merely

•nflalionary profitj and to permit the sirengthrning of corporate rei»ourcef against the po^^ihiliiy of inventory

prico decline*. Although provisions exist In other coontrie* to accomplish the same purpovrs, none tote* the same form oa SwedeoV

Tlie basic rule in Sweden is thot the valnatioo of the inventory rnlercd bv the toxp.nvcr in his hfioks of oc- count shall govern for tax purpoves. However, the right

to value inventories in the taxpaver's sound businca*

discretion is subject to certain limilalions established by

tlie tax law*. The main mle provide* that * taxpayer, after Tint writing off all obsolete or unsaleable ilema in fall, may

write down the balance of the inventory by 60 per cent

to a floor of 40 per cml of cost or market value, whichever i* lower. Co*t U determined on a fir»t-in fint-ont baaII. The amount of thi* irrventory write^owri L* dedoctible from taxable income.

Example: A corporation bai* an inventory with a co»l of SKr

1,100,000. Of this stim, items with a cost of SKr 100,000

are ol>M>letc or unsaleable. This amount of SKr 100,000 may he written off for tax purposes. The cost of the remainder of the inventoiy is then SKr 1,000,000. Market value of the inventory is SKr 1,500,000. The

corporation may take the lower of cost or market

value—ID this case, cost, or SKr 1,000,000—and write

it down by 60 per cent, or SKr 600,000, to a hook value

of SKr 400,000. In addition to the sum of SKr 100,000

written off for obsolescence, the difference of SKr

600,000 i* deductible from income for lax purpose*. Tho* it i* available a* a reserve or cushion in fntare year* in Uic crenl of inventory price decline* or re- cession. The main mlc governing: inventory vaJaation u complemented by two Bopplementary roJes. The fint of the*e

i* llic rule of “comparable value.” If the Talne of the inventory at inr end of a corporation** fiacai year, at cost or marke. nd after deducting obsolete or onaaleahle

items, U leaa \> an the average of the valne of the invei>- tory at the cj(h^ of the two prior year* (thl* average value i* called the ^comparable value”), the corporation may write it* inventory down by 60 per cent of that comparable value, rather than by 60 per cent of the value at the end of the income year in questiem. The second supplementary role relates to the valuation

of raw materials or staple commodities in the inventory. The corporation ha* an option to value these inventorr

assets at the lowest market price in effect daring the income year or in anv of the nine previoa* year*, and

then to redace that figure by 30 per cent to give on

inventory valuation equal to 70 per cent of the ten-year

low. If the corporation chooses to value raw materials or staple commodities in this way, it may not also take advantage of the mie of *^comparable value” outlined

above. In any event, a corporation may always write it* irt- ventory down to its actual value despite the foregoing

rales and take appropriate dedaction* from taxable income. So far as the company*s hook* are conceme<l, it i* immaterial whether the amount of an authorixed write- down i* deducted directlv from the cost or market value

of tho inventory on the asset side, or i* set up instead

a* a reserve for inventory price decline on the liability side. The latter method ia ordinarily usetl, however, when

the use of the *^compambIe value” rule results in a negative inventory value. A special provision, enacted in 1964, permits a Swedish

parent company, selling inventory asset* to a foreign subsidiary for furtlicr resale on the foreign market, to defer tax on profits attributable to goods which remain

unsold in the bands of the subsidiarv at llie end of tlie parent's fiscal year. Tlie parent may take a deduction from taxable income, by allocation to an “intercompany

profit account”, of an amount not exceeding the dif- ference between (1) the price at which the parent sold these goods to the subsidiary (minus anv amount of inventory write-down detluclcd bv the subsidiary), and

(2) the parent's cost of these goods. The allocation must

be restored to taxable income during the following fiscal year; at the end of that year the question of a deduction for a rcnewcil oMocation is consideretl in view of the tlten existine circumstance*.

‘‘Section 4.2 - Inventory Valuation** from "The Tax System In Sweden" published by

Skandlnaviska Enskllda Banken,

Stockholm, Sweden Feb. 1972

T3-8
REGULATION OF METALS

AND MINERALS IN

DEFENSE EMERGENCIES

Pursuant to Executive Orders 10480

and 11490 under the Defense Production

Act as amplified by Federal Register

Document 67-1313, and Executive Order

12155 under the Stock Piling Act, the

Department of the Interior is responsible for emergency readiness plans and

programs for all non-fuel minerals.

As set forth in detail in FR 67-1313,

the Department of the Interior is, in

general, responsible for mines, concentrating plants, and refineries, and for

the ores, concentrates, and other

materials treated in such facilities.

The Department of Commerce is responsible

for facilities and materials that are further along in the chain of processing

and utilization, and it maintains the Defense Materials System to channel materials

to defense and defense-related production. Steel, copper, aluminum, and nickel

have long been designated as "controlled materials" and they are the basis for

the "Defense Materials System" through which the Department of Commerce channels

materials to defense rated orders. The Department of the Interior has chartered

the Emergency Minerals Administration to carry out actual operations in the

event of a major emergency, and the Emergency Minerals Administration is based

upon the Bureau of Mines, with support as needed from the U.S. Geological Survey

and other Interior units. In emergencies, the Department of the Interior operates

under the direction of the Federal Emergency Management Agency (FEMA). FEMA, an independent agency, was created in 1979 to consolidate the emergency planning,

civil defense, and disaster relief functions of the government.

The Bureau of Mines continuously monitors domestic production, imports,

exports, stocks, and consumption of all major nonfuel minerals. Detailed reports

are received monthly, quarterly, and/or annually from domestic mines, smelters,

refineries, recyclers, and major users. Monthly import and export data are

obtained from the U.S. Customs Service via the Bureau of the Census of the

Department of Commerce. Bureau of Mines' experts continuously monitor developments

in foreign supply areas. Every month the Bureau of Mines publishes for the guidance

of government and industry its "Mineral Industry Surveys" which give up-to-date

detailed statistics, and for several major important mineral materials monthly

data are also summarized in the Bureau's "Minerals and Materials." A detailed

review of U.S. and world production for more than 100 commodities is provided in

the annual "Mineral Commodity Summaries," and special mineral commodity profiles

giving details of world production, technology, reserves, resources, and outlook

T3-9
10

to the year 2000 are published as appropriate. As a result of its continual

monitoring of mineral supply/demand and its technological competence, the

Bureau of Mines has the framework needed to discharge priorities, allocations,

and supply expansion responsibilities under the legislation cited earlier.

The Bureau would also act as the claimant agency for the mineral sector of the

economy to assure needed fuel, power, transportation , personnel, supplies, and

equipment. To facilitate coordinated government action in the event of an emergency, the Bureau in 1975 organized nearly 100 interagency mineral commodity

committees. These committees include experts from the Bureau of Mines, the U.S.

Geological Survey, and one or more areas of State, Commerce, Defense, CIA, FEMA,

GSA, Treasury, U.S. Trade Representative, Council of Economic Advisors, International Trade Commission, Corrmodity Futures Trading Commission, Council on Wage and Price Stability, and for certain commodities. Agriculture and Transportation. These committees v/ould be promptly called upon in the event of

any emergency.

In the event of a supply disruption, the fij st action to be taken would

be to monitor exports, followed, if necessary, by export controls. The

Export Administration Act of 1979 authorizes use of export controls to restrict

exports detrimental to U.S. national security, to further U.S. foreign policy,

or to protect the domestic economy from the excessive drain of scarce materials

and to reduce the serious inflationary impact of foreign demand. The Secretary

of Commerce is charged with monitoring exports and contracts for exports, of

any nonagricul tural good "when the volume of such exports in relation to

domestic supply contributes, or may contribute, to an increase in domestic

prices or a domestic shortage, and such price increase or shortage has, or may

have, a serious adverse impact on the economy or any sector thereof."

A worsening supply situation would require imposition of a system of

priorities, under Title I of the Defense Production Act, whereby rated orders

would have to be filled first. If priorities proved to be inadequate, they

would be followed by a system of allocations, also authorized by Title I. The Bureau of Mines and the Department of Commerce would implement priorities

and allocations in their respective areas of responsibility.

At some point in a serious shortage situation recourse to the strategic

stockpile might be required. The Stock Piling Act provides for release

"(1) on the order of the President, at any time the President determines the

release of such materials is required for purposes of the national defense;

and (2) in time of war declared by the Congress or during a national emergency^

on the order of any officer or employee of the United States designated by the

President to have authority to issue disposal orders . . . if . . . required

for purposes of the national defense." To release stockpiled materials, FEMA,

in consultation with other agencies including the Bureau of Mines, would

prepare a justification and recommendation for the President's signature.

On receipt of the President's authorization, the Office of Stockpile Disposal

of GSA would release the material to specified recipients.

Export controls, priorities and allocations, and stockpile releases,

however, are only temporary measures of limited effectiveness. Any longlasting supply disruption would call for supply expansion programs under

Title III of the Defense Production Act. These would cover not only domestic

deposits but also deposits in reliable foreign sources. The Bureau of Mines

would recommend needed mineral supply expansion programs to FEMA, which

v/ould then direct GSA to make the necessary contractual arrangements.

T3-10
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T3-12
APPENDIX - COLUflBIUr.

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T3-18
REMARKS ON CRITICAL RAW MATERIALS

Russell Babcock

Bear Creek Mining

(no manuscript submitted)

T4
WORKSHOP ON CRITICAL MATERIAL NEEDS OF

THE AEROSPACE INDUSTRY

Robin Brumwell

Cabot Mineral Resources

T5
February 9-10, 1981

WORKSHOP ON CRITICAL MATERIAL NEEDS OF THE AEROSPACE INDUSTRY

Good morning, name is Robin Brumwell. I am the Executive Vice

President of Cabot Mineral Resources, a division of Cabot Corporaiton.

Cabot Corporation — Supplier to the Aerospace Industry

Under the brand names of Stellite, Haynes and Hastelloy, the Cabot

Corporation is one of the world's leading suppliers of super alloys essential

for the manufacture of jet engines.

Cabot is also the leading producer of tantalum in the United States

and is one of two manufacturers of beryllium alloys in the Western World.

These two latter materials have particular relevance in advanced electronic

applications and, therefore, play an important, although indirect, role in

support of the aerospace industry.

Five major raw materials (and a host of minor ones) are required to

manufacture alloys for the flying gas turbine market — nickel, cobalt,

chromium, molybdenum and tungsten.

Concerns over Raw Material Supply

Nickel, molybdenum and tungsten are not regarded as serious problems

as far as security of supply is concerned. North America is more than

self-sufficient in nickel and molybdenum. While tungsten is approximately

50% imported, supplies are sufficiently diverse throughout the rest of the

world not to cause great concern should disruption from one or two sources

occur.

Supply security of cobalt and chromium are of the utmost concern to

Cabot. Both metals are essentially 100% import dependent and are primarily

fron areas of actual or potential political instability. Furthermore,

substitution possibilities are either non existant or limited in the high

temperature applications for which these metals are required.

The same points are true of tantalum bearing materials and beryl ore. Both are 100% imported, significant quantities originate in areas of potential

supply concern and, in both cases, substitution would for many applications

be painstaking, time ccxisuming or extremely undesirable from a quality

standpoint.

T5-1
Cabot's concern is increased by current moves to expand eventual

capacity of super alloy manufacture three fold at its midwest plant with

the installation of a new 4-Hi mill which will come on stream later this

year. Cabot will use scxne of this additional capacity to greatly develop

its titanium wrought product position thereby further increasing general

anxiety over the continuity of critical material supply.

In a nutshell therefore, the five elements of cobalt, chrcmium titanium,

tantalum and beryllium are items of great significance to Cabot and which

could either directly or indirectly impact upon the production capability

of the U.S. aerospace industry should a major supply disruption occur.

None of this will come as any surprise to any memter of the audience.

Both the criticality and problematic nature of these elements are well

known and I will risk sounding like a broken record if I do not rapidly

progress to what we are doing to protect our supply lines and what the

U.S. government may also do to assist industry.

Cabot's Response

Cabot Mineral Resources has been established as a new division of the

company to concentrate purely upon questions of metals and mineral supply

to Cabot's operating divisions.

CMR's mandate is extremely broad. We will do everything necessary to

ensure the short and long term availability of critical materials. This

means traditional procurement at one end of the spectrum to exploration,

and mine ownership at the other. Between these two points there are numerous

options such as investment in processing facilities, scrap reclamation,

R&D on substitute materials, long term producer contracts and of course

stockpiling. Every critical material we have identified has its own peculiar

set of characteristics and problems and we are developing a custcm tailored

strategy of supply line protection for each one.

However much we organize to be masters of our own destiny in this

regard there are clearly a number of areas where governmental involvement

in support of the national interest is as necessary as it is desirable.

In other areas the converse may be equally true.

Government Involvement

Within the confines of a ten minute address, the following issues can

only be listed in extreme summary. I should also emphasise that these

comments and opinions are iny own and do not necessarily represent the

official view of Cabot Corporation.

T5-2
A) Stockpiles

The concept is undoubted. The practicality is fraught with a number

of well publicized drawbacks:

- Funding

Quantity

Quality

Form

Inadequate or non existant.

Too much? Too little?

Adequate for immediate usage by processors?

Proper balance between ores, intermediates and refined metals?

Form is as important as quantity. There is little point in emphasizing

chromite in a stockpile when the country's ability to convert to

ferro chrome is extremely limited. By the same token with only one

facility in the V'Jestern World capable of processing beryl ore, it

would possibly be safer to give greater enphasis to beryllium inventories

in their end use form.

Quality is more important than anything. Anything that cannot be

used in the stockpile is worse than it being absent altogether. It

provides a false sense of security which may take valuable time to

discover — perhaps in those very circumstances when time cannot be

wasted and replacement materials cannot be obtained.

There is little that needs to be said about having goals and no funds

to achieve them — or funds so small as to be piteously inadequate.

I know it is easy to take pot shots — and these comments are not

meant to be distructive or negative to those who have had the inpossible

task of managing the FEI^ stockpile.

It is not unreasonable to regard a strategic material stockpile as a direct adjunct of the nation's defense program — to be managed and

funded accordingly. There is no alternative view if the U.S. recognizes

its foreign dependence of certain materials and also recognizes that

all supply lines cannot always be protected. I think it goes without

saying that the stockpile should be subject to regular review and

action on quantities, quality and form.

B) Production Incentives

Title III of the Defense Production Act of 1950 exists to provide

fiscal incentives and financial support to expand capacity, develop

new technology and generally provide government stimulation of production

of strategic metals and minerals. Techniques available include:

Production loans

Exploration loans.

Accelerated depreciation of capital equipment.

Purchase contracts with guaranteed floor price on

material produced.

T5-3
This law helped develop much of the copper and molybdenum mining industry

in Arizona. It is a statute that is still on the books and which might

have a very real application, for example, to cobalt mining in the U.S.

The old Blackbird mine in Idaho and the old Madison mine in Missouri have

the potential to supply a useful proportion of U.S. needs and they might

well cane to fruition under the price umbrella held aloft by Zaire and

Zambia since early 1979. If, however, the price of cobalt retreats from

$25/lb. to say $10/lb. , then it may well be in the nation's strategic

interest to extend provisions to the act to the mining conpanies concerned.

C. Tariffs

Tariffs exist to protect domestic business against foreign competition.

However, are these artifical barriers sufficient to stimulate the domestic

production and capacity expansion of those strategic metals where a strong

U.S. industry is required?

Titanium is an interesting case in point. Although exact data is

not available, Russia is reputedly the world's largest manufacturer of

titanium sponge. In spite of the fact that Russia does not possess most

favored nation status, the USSR has, for many years, exported significant but

highly variable quantities to the West. Together with the cyclical nature of

demand, these imports have contributed to a basic instability in the price

structure — which, in turn, has been an undeniable factor in discouraging

domestic capacity expansion.

The ideals of trade liberalization notwithstanding, it might well be

argued that it is a strategic error to allow the production of strategic

materials to be too strongly influenced by countries whom the U.S. could

not reasonably regard as an ally in an emergency situation.

I suggest that there may well be a good case for selective and punitive

tariff imposition or other such barriers to protect strategic materials.

D. Other Issues

This is not the forum for a detailed review of any issue. Suffice, it

to say that a balanced view of environmental protection and mineral development

is necessary — although, obviously subjective and endlessly debatable.

Suffice it to say that a realistic view of embargoes is also necessary if

the U.S. is to avoid damaging its own material position as much as that of

the nation it seeks to punish. Rhodesian chrome is an excellent example.

T5-4
Finally/ and at the risk of stating the obvious, it is clearly the

ultimate responsibility of government to recognize external dangers and

guard against them. There must be a continuing government awareness not

only of domestic metal deficiency but also of those nations where U.S.

dependence lies and the prognosis for supply reliability or disruption for

whatever reason, from these areas in the short and long term.

Although industry will do much to captain its own fate it is, again

obviously, the responsibility of government to provide t!!te incentive and environment

to allow the strength of industry to make it happen — a broad responsibility

to inspire mining, enhance innovation and develop production.

The organization of this workshop is, I believe a refreshing piece of

evidence of the recognition of a number of these issues.

T5-5
CRITICAL MATERIAL NEEDS OF THE AEROSPACE INDUSTRY

David Swan

Kennecott Copper

T6
DEPARTMENT OF COMMERCE WORKSHOP

ON

CRITICAL MATERIAL NEEDS OF THE AEROSPACE INDUSTRY

February 9-10, 1981

Gaithersburg, Maryland

COMMENTS

My comments are on behalf of the American Mining Congress,

a trade association representing more than 200 American companies

involved in the minerals industries.

In dealing with questions of supply of critical materials,

I would like to propose a methodology for identifying and

characterising critical materials issues, particularly those

involving interaction of the public and private sectors and which

views those issues in an international framework.

In developing this, I would suggest we visual! 2e supplying

raw materials as a four (4) step process, consisting of:

- discovery of mineral resources

;

- development of ore bodies into mines;

- mining and benef iciat ion ; and finally

- extraction of desired material in sufficiently

pure form to permit subsequent fabrication

into useful articles.

For those mineral resources which the United States has

adequate competitive grade reserves, the entire process can and

is carried out domestically. Imports and exports at any stage

of the process become almost purely economic decisions based on

such considerations as freight costs, location of facilities and

short-run market conditions. Even for such minerals, however.

T6-1

/ imposit ion . .
Dept . of Conurerce

Workshop 2/9/81

- 2 -

imposition of unilateral U.S. policies can significantly and

adversely alter the competitiveness of the U.S. mining industry

in the international marketplace.

Unfortunately, this desirable state of affairs does not exist

with many minerals, therefore, the interface between the U.S.

industry consumer and offshore supplier is moved towards the

fabrication/end use part of the process. From a policy point of

view, the consuming country has a strong incentive to purchase

supplies of the material as early in the cycle as possible, i.e,,

as ores and concentrates rather than alloys or metals. Conversely, the raw material owner has an equally strong incentive

towards integration toward end uses as far as possible. At this

stage, various government policies come into play, designed to

maximize the self-interests of the producing and consuming

countries. Generally speaking, such arrangements are considered

to be a part of trade policy development and are aimed at

directly supporting the mineral policy goals of sovereign nations.

Inevitably, however, other national policies also impinge

on the location of the interface, but less directly. These

include tax policies, environmental health and safety policies,

employment and labor policies, energy policies, etc.

T6-2

/In the
Dept . of Commerce

Workshop 2/9/81 -3-

In the more advanced countries, very often application of

these types of policies have a larger impact on mineral availability than do trade policies and it is this area which I propose that we concentrate on. In order to analyze the economic

impact of these policies, it is necessary to identify the policy

asymmetries between the U.S. and producing countries and to

determine whether these inhibit or enhance the availability of

a specific mineral resource.

I have extracted a number of these examples from the exX . cellent GAO report, "The U.S. Mining and Mineral-Processing

Industry : An Analysis of Trends and Implications:" to illustrate

how they impact* the aval lubiTity "of" resourcers- in the real w’orld.

In its testimony in support of the National Materials

and Minerals R&D Act to Congress, the American Mining Congress

recommended that specific responsibility for identifying these

policy asymmetries be assigned in the President's Office with

the requirement that policy changes be proposed which would

support the national objectives of assuring adequate supplies

of critical raw materials.

I would suggest that our examination of critical resource

needs for the aerospace industry follow this method of analysis.

This conference can provide an important input by contributing

useful data to carry out the charges of the Congress in enacting

the National Materials & Minerals Policy Research St Development
A NATIONAL ^lATERIALS POLICY FOR A DESTABILIZED WORLD

E. F. Andrews

Allegheny Ludlam

T7
• 14-Point Outline

A NATIONAL MATERIALS POLICY FOR A DESTABILIZED WORLD

1 .

2 .

3.

4 .

5 .

6 .

7 .

8 .

9 .

10 .

11 .

12 .

13.

14 .

Growing import dependence for strategic materials is now an

established fact.

From the Paley Commission through the interagency study, we

still do not have a national policy. It is time to stop

studying and start implementing.

Research and technological development will play a major role,

but they cannot be relied upon for short-term emergencies.

Four metals are of primary concern: chromium, platinum,

manganese, and cobalt, in that order. I pick these because

of their pervasive use in defense, basic industry, quality

of life.

We need to form a National Non-Fuel Minerals Board with the

power of the Presidency to coordinate this broad policy.

This board should be backed up with an advisory board from

the private sector, such as the President's Resource Advisory

Board

.

We need to reexamine our land use policies.

We need to internationalize the Bureau of Mines.

We need a total reexamination of the stockpile and the stockpile laws, including an examination of the parameters for

economic use of the stockpile.

We need to reexamine our tax and depreciation laws so that

they will be stimulators rather than disincentives.

We need a nationwide, coordinated ‘research and development

program.

We need to reexamine and effect better balance between the

pragmatic consideration of our national needs and the

advancement of social justice throughout the world -- a reordering of our priorities.

We need a reexamination of our business laws, including the

Foreign Corrupt Pracrice Act sc as not to render American

business uncom.petitive as it tries to deal in the world

market

.

I believe than Public Lav; 96-479

legislation to finally put; into

policy

.

conuains all the necessary

ractice a national m.aterials

D/81

T7-1
A NATIONAL MATERIALS POLICY FOR A DESTABILIZED WORLD

I have devoted most of the last 30 years working in and

being concerned about the materials supply problems of my company

and my country. For many years, I have been calling for a national

materials policy and a higher profile on this general subject. I

believe it is finally beginning to move to the top of the national

agenda, and I am very pleased to have it do so. In the past decade,

we have gone through the National Materials Policy Commission,

National Commission on Supplies and Shortages, and the interagency

study of the materials problem. But nothing much occurred to change

the collision course of which the Paley Report gave timely warning.

Nothing much, that is, until what can be milestone legislation

cleared Congress last October.

Chromium presents a good example of why such a policy is

needed. The United States has virtually no chromium indigenous to

this country. But at the same time, we were in an accelerating,

high level of consumption, we passed a group of environmental laws

that virtually mandated an additional increase in the consumption

of chrome to make the clean air and clean stream equipment and

converters on our automobiles. After we had mandated this increase

in the consumption of chrome, we then unilaterally, in another part

of government, placed an embargo on the importation of chromium

from what was then our largest supplier, Rhodesia. At the same

time, we applied stricter environmental enforcement on the antiquated ferrochrome industry, reducing its productive capabilities.

Also at the same time, we allowed unlimited export of stainless

steel scrap, each ton of which contained 400 pounds of chrome.

Truly, a good example of the need for a coordinated materials

policy

.

A brief look at history, and particularly at some events

and developments that occurred in the lifetimes of most of us here,

will help explain and in part define our present national predicament

in this matter.

America had all the resources it needed from the outset of

its nationhood and through its first 150 years or so. It was singularly blessed with timber, water, iron, coal, copper, petroleum, and

much more adequate for the American economy of those days.

That happy condition began to change markedly after the

First World War. It was not that we exhausted our resources but

that new materials were required by our industrial society: rubber,

for instance, as we realized with a shock when, in the Second World

War, the Japanese overran southeast Asia.

The explosion in technological development during and

after that last global war has meant unprecedented advances in the

quality of our national life and has wondrously transformed older

industries and brought new industries unimagined only decades ago.

But that explosion also put an end to our historic self-sufficiency.

T7-2
•A NATIONAL MATERIALS POLICY FOR A DESTABILIZED WORLD

PAGE 2

We are import-dependent^ in whole or in part ^ on a long list of

minerals without whose assured and long-term supply we cannot

function in the industrial sense. I am not speaking here of oil,

for that IS a topic which has not wanted for attention, but of

non-fuel mineitals: chrome, cobalt, manganese, platinum-group

metals, nickel, tin, tungsten, and a score or so more.

Beyond technological development at a constantly

accelerating rate of sophistication, the minerals predicament

was enormously complicated by vast world-wide political changes,

these included "decolonization" by the old Western imperial powers

and the emergence of Third World nations. And it so happened that

Providence chose to endow a number of the Third-World nations,

particularly those in southern Africa, with minerals on which we

are most dependent.

However salutary certain global political changes may be

in the historical annals of self-determination, they have meant,

to say the least, a destabilization of minerals access.

Now, as we venture further into the topic of non-fuel

minerals, it would be well to avoid two extremes of mental attitude.

First, there's the attitude of blind faith in technological

miracles. We solved the World War II rubber crisis in short order,

didn't we? We put a man on the moon,' didn't we? Surely we can make

cobalt or chromium out of straw or who-knows-what when the crunch

comes I The fallacy of such gee-whizery lies not in any essential

deficiency of technological research and development. Lord knows

we've seen astonishing developments that have altered dependence

on minerals. Consider what frozen foods have meant in respect to

tin cans. Or the laser and satellite communications in respect

to copper wire. Yes, there will surely be technological developments

at some unforeseen time that will reduce or perhaps eliminate our

present dependence on one or more strategic minerals.

But the point is precisely that the time is unforeseen.

Time is at the heart of the problem. What presses for immediate

attention and coordinated action is getting America from now to,

say, 1990 or 1995. Wonderful indeed if we are mining the moon in

the next century. But what can be done to mine the earth and have

assured access to its mineral treasures in the next five, ten,

fifteen years?

Secondly, I recognize that, there some authorities

concerned that we may be consum.ing basic resources of this

faster rate than we should. I do not wish to get into that

who are

world at a argument

.

T7-3
A NATIONAL MATERIALS POLICY FOR A DESTABILIZED WORLD

PAGE 3

however, I am one who believes that the world is not really running

out of raw materials. It has been said that the first pound of

copper ever discovered in this world is probably still here somewhere. Of course, all and everything are finite. If somehow or

other, we consume or destroy until there is no place to stand on

this planet, then I guess we could say the raw materials are gone.

But I do not believe that is within our time frame of thinking.

I do not anticipate that we are likely to encounter any serious

natural consuraints on the existence of raw material, at least in

the next 25 to 50 years and possibly 25 decades. In the case of

those raw materials that may run out, if there are any, we will

merely let the system work as we reach deeper into the bowels of

the earth for less yielding ores. Costs will rise. As the cost

to extract these materials rises, the price to the consumer will

rise. As the price rises, consumers will be forced to design away;

and by the time the supply is exhausted, the need for the product

will be gone also. It really is a self-correcting system, if we

will just let it alone and let it happen.

Avoiding then either extreme -- the one of blind trust

in instant technology, the other of resource-despair — let's look

at the situation in four just basic minerals.

First off, there's chrome , indispensable to the, manufacture of stainless steel, ball bearings, and surgical equipment.

This country has virtually no indigenous chrome. The world's

reserves of it lie almost entirely in southern Africa -- in the

Republic of South Africa and in Zimbabwe, the former Rhodesia.

Then there's cobalt , essential to jet-aircraft engines,

machine-tool bits, and permanent magnets, to name some broad

categories. We import 98 percent of our cobalt, the bulk of it

from Zaire, the former Belgian Congo. Guess which nations account

for a big share of the world's reserves, after one totals Zaire's

and Zambia's? Our not-so-well-wishers , the Soviet Union and Cuba.

Next, there's manganese , without which you can't have

steel, period; and for which we are almost wholly import-dependent.

Of the world's present reserves of manganese, the U. S. Bureau of

Mines estimates that southern Africa accounts for some 40 percent

and the Soviet Union for 50 percent.

Finally, there's the platinum group of m.etals, on which

we are more than 85 percent import-dependent for the manufacture

of catalytic converters and a variety of electronic and chemical

products. Roughly three-quarters of platinum-group reserves are

in South Africa and about one-quarter in the Soviet Union.

This recital indicates why the four I have chosen out

of a much longer list surely quality as "strategic" and why the

T7-4
A NATIONAL MATERIALS POLICY FOR A DESTABILIZED WORLD

PAGE 4

reliability of their supply is less than reassuring. You also

see why the Soviet Union already holds a powerful position from

which to conduct a "resource war" and why southern Africa has

been aptly called the "Persian Gulf of Metals."

The hallmark of such strategic minerals is their pervasive

use throughout a modern industrial economy. Let us suppose, for a moment, that somebody in Detroit or any other American city were to

say, well, in a pinch we could make do without chrome or cobalt.

Make do? Without these you couldn't build a jet engine

or an automobile, run a train, build an oil refinery or a power

plant. You couldn't process food, under present laws, or run a sanitary restaurant or a hospital operating room. You couldn't

build a computer, clean up the air and water, and on and on.

The four minerals I've mentioned, plus others which we

must import, impact intensely on our national defense — for what

defense could there be without planes and tanks and missiles?

They impact intensely on our basic industry and on our quality of

life, as shown by some of the specifics I've cited, and on the

employment of our work force. With regard to jobs and national

output, listen to what Helmut Schmidt, Chancellor of West Germany,

has said about his country of some 60 million people. If -you cut

off West Germany's chrome for a year, according to Schmidt, there

would be two-and-a-half million people unemployed and a drop in

the GNP of 25 percent. Translate this in terms of tl;ie American

economy and you have a "crises" by the most conservative definition of that term.

Such are the broad outlines of our mineral dependence.

What can we do to alleviate it or at least render it less precarious?

One thing we can and must do is stop comumissioning

studies that come to nothing. What we need are studies upon which

we are determined to act. Happily, a solid start in that constructive direction was made in the closing weeks of the last

Congress. It was then that the lawmakers passed, and rhe outgoing President signed, what is formally known as the National

Materials and Minerals Policy, Research and Development Act of

1980.

The Act declares, and I quote, "that it is the continuing policy of the United States to promote an adequate and stable

supply of materials necessary to maintain national security,

economic well-being and industrial production with appropriate

attention to a long-term balance between resource production,

energy use, a healthy environment, natural resources conservation,

and social needs." It sets forth a comprehensive list of steps

T7-5
A NATIONAL MATERIALS POLICY FOR A DESTABILIZED WORLD

PAGE 5

to be undertaken by Executive departments and agencies in line

with the Act's objectives and calls on the President to submit

to Congress within a year of the law's enactment a "program

plan" -- including budget proposals and organizational structures.

Against the background of this promising start, some

general comments and recommendations on certain aspects of a

future program may be in order.

1.

We need a coordinating mechanism, operating immediately under the President. Let us call it, for the sake of

hypothesis, a National Non-Fuel Minerals Board. It should have

full authority to cut across departmental jurisdictions in the

interest of designing and carrying out a total and consistent

minerals policy.

As part of the Executive Office of the President,

the N.N.M.B. would coordinate and mitigate programs, tasks and

analyses among the various agencies relating to the security of

strategic minerals supplies. It would also recommend actions for

the President, Congress and other Executive agencies.

It would add no new bureau or department but would

combine the in-place functions of one each from State, Treasury,

Defense, Commerce, Interior, Transportation, Labor and Energy.

2.

To facilitate private sector advice , I would

establish the President's Resource Advisory Board (PRAB) —

modeled after the structure of the former "President's Foreign

Intelligence Advisory Board," i.e. limited term membership of

distinguished experts from relevant fields, in this case from

the mining, minerals production and end user industries; plus

the fields of labor, environmental studies, regulation impact,

investment banking and geopolitical/national security affairs.

3.

We need a thorough inventory of our nation's reserve

and resources in strategic and other minerals -- a reliable data

base, in other words. Specifically, this need concerns what is or

may be available as reserves in America's public lands.

The Federal Government owns about one-third of the

u. S. land area, mostly in the West and Alaska. In 1968, the

amount of this land withdrawn from mining and exploration -- and

my own concern at this point is with exploration -- came to

17 percent. Eight years later, the figure was almost 70 percentl

As an Interior Department official noted at the time

the withdrawal for conservationist purposes "is being done too

T7-6
A NATIONAL MATERIALS POLICY FOR A DESTABILIZED WORLD

PAGE 6

often without detailed knowledge of the existing mineral potential

of these lands." At the very least, I would add, Americans have a right to know what resources of theirs have been locked away and

are being locked away and why I

4. We need to internationalize the capabilities of the

U. S. Bureau of Mines to assess supplies of minerals. The data base

provided by the Bureau in this country — with respect to those

areas where it may freely operate — is the best in the world.

But the minerals problem is worldwide in scope, and so the data

base should be as worldwide in scope as international political

conditions allow.

The new public law recognizes this need by directing

the Secretary of the Interior to promptly initiate actions aimed

at improving the Bureau's capacity in an international sense. A

decided improvement, it should be noted, could be effected by

stationing a total of 20 to 30 Bureau experts in a few select

countries

.

5. We need a total reassessment of our present defense

stockpile -- amounting, at today's inflated prices, to about

$12 billion — and we need new policies concerning it.

The reassessment should be made in the light of such

considerations as quantity, quality, and mix. Are we too short on

this and too long on that? What have time and weather done to the

quality of, say, cobalt that was laid down 25 years ago? Should

we not, for example, change the ratio of imported ferrochrome to

chrome ore, now that a series of misguided actions in the past has

virtually destroyed our former capaciry to smelt chrome ore into

ferrochrome?

Questions like these and remedial measures based on

answers to them can help bring about a viable stockpile, appropriate to current realities.

A new program will then be required for, among other

things, buying and selling relatively small quantities each year

so as to maintain the quality of stockpile materials on the one

hand and to make sure that markets are not dislocated on the other.

Further, Congress should establish parameters for certain

limited economic uses of the stockpile. This statement must not be

taken as implying there should be an economic stockpile, distinct

from the established one for defense. Rather, it means that in

the case of certain stockpile items which are essential to national

well-being and on v;hich we are import-dependent, Congress should

T7-7
A NATIONAL MATERIALS POLICY FOR A DESTABILIZED WORLD

PAGE 7

allow for carefully circumscribed conditions under which they can

be drawn on for economic purposes.

Economic use of the stockpile could have value in providing the time required for the United States to implement such

long-term and -.more permanent solutions as substitution, conservation, and the development of alternate sources would provide.

The United States must consider this alternative in its domestic

and foreign supply policy.

The present policy of using the strategic stockpile as

a de facto economic stockpile, subject only to the vaguest guidance

and controls, we believe, is unwise and should be discouraged.

The legislators should explore to establish guidelines

under which the stockpile could be so used. Among these should be:

(a) A certain percentage of import dependency before an item

would be considered for stockpiling -- example, 75%.

(b) The geographic location of the supplying countries should be

considered. In other words, the urgency would be quite different perhaps on an item from Canada, as opposed to an item

from China or Africa.

(c) The number of supplying countries would be heavily considered.

If only two or three countries supplied the item, it would be

considered with a great deal more concern than if twenty or

twenty-five countries could supply the item.

(d) The ease of substitutibility of the material would be an

additional criterion and the essentiality to the domestic

economy and to our security would also be weighed.

(e) We should take into account the economic or non-economic

leverage that we might have on the supplying country. In

other words, are they more dependent upon us than we are

upon them?

(f) The political stability of the supplying country would be

a major consideration as would be the cartelability of the

item.

Congress should also provide in the enabling legislation

the parameters under which items would be taken out of the stockpile. Stockpile disposal for price stabilization purposes I

consider would be unwise and an inadvisable intrusion in the

free market; however, certain other parameters for disposal should

be made quite clear so that all concerned would know when a dispose

time was near; for example:

T7-8
A NATIONAL MATERIALS POLICY FOR A DESTABILIZED WORLD

PAGE 8

(a) Never dispose of stockpile for export purposes.

(b) Never dispose at a higher rate than the difference between

consumption and production in this country.

(c) Never sell from the stockpile when the material is available

through normal channels.

(d) Replace materials in the stockpile only at times of low market

activity

.

(e) Insofar as possible, sell only to domestic consumers.

The most difficult problem is providing for the management

of the stockpile within the parameters set forth by Congress. How

can economic use of the stockpile be designed and operated so that

it will not be misused for financial advantage of special interest

groups? How can it be sufficiently insulated from the political

process to prevent its misuse yet insure it will achieve the public

benefit for which it was established? It must be sufficiently

insulated from the political process that it may act in the public

interest and yet remain responsive to Congressional scrutiny.

One final word on stockpiling. It is not and cannot be

a long-term solution to our import-dependence on strategic minerals.

It can only serve as a buffer in case of crisis, tide us over in

case of war, give us options and maneuvering room in ^case of civil

disruption at a source of overseas supply. In short it is a limited

hedge against risk in a highly disturbed world.

6. We must, as the new law states, "promote a vigorous, comprehensive, and coordinated program of materials research and

development." At the same time, we must overhaul tax policies

towards the mining and metallurgical industries. Ironically enough,

these policies have been a disincentive, not only to research, but

to the capital formation needed to develop the fruits of research

as well as the resources available to us.

7. But even as we press on with R&D, we must avoid fantasies

of a quick technological fix. Substitution — the use of a new or

modified substance for another -- can readily become a voodoo

incantation to exorcise the demons of mineral dependence. If one

remembers in this context that a substitute -- for chrome say -- has to be of as good a performance quality as the material for which

it substitutes and also that it has to be reasonably pricecompetitive, then fantasy will give way to reality. And reality

is, for example, one considered estimate that it would take us

10 years to design away from chrome and might cost as much as a billion dollars; meanwhile, there is more than a thousand-year

supply of chrome in southern Africa that might well be sold for

something like 50 cents a pound.

T7-9
A NATIONAL MATERIALS POLICY FOR A DESTABILIZED WORLD

PAGE 9

These comments should not be taken as depreciating

I purposeful R&D across the spectrum of materials and minerals,

but rather as putting the problem of dependence in focus. The

one key element of that problem is diplomatic -- which leads to

the next point.

8. We must reconsider the balance — some would call it

I imbalance -- we have struck in recent years between the require-

! ments of national security and the advancement of social justice

j throughout the world. The Washington Star put the issue well in

an editorial some months ago, entitled "Bulletin froro the Resource

War. "

". . .While the Kremlin (wrote the Star ) has been

trying to advance its interests via build-ups of

well-positioned bases and client states in such

areas as Africa, the United States has concentrated

on human rights and hopes of coming out 'on the right

side of history' by forbearing to press material or

geopolitical interests against revolutionary regimes.

"There is still time for us to protect ourselves

in the area of strategic materials. But it will take

a rethinking of priorities in the way we define allies

and adversaries abroad as well as in domestic stockpiling policies."

Keep in mind that at the heart of our predicament is fair

access to sources. Put another way, the problem is not sufficiency

of the strategic minerals on which we depend, but rather the

peculiar nature of their geographic distribution. Given that

nature, disruption of some supply is a very real possibility.

And the power to disrupt is, in this matter, the power to deny.

I would briefly note, however, with respect to what the

Washington Star called "rethinking of priorities in the way we

define allies and adversaries abroad," the phenomenon of selective

indignation. This phenomenon has characterized much of our diplomacy

towards mineral-rich areas of southern Africa. For instance, at one

time we embargoed the importation of chrome from the then state of

Rhodesia while at the same time we were buying chrome from that

citadel of human liberty, the Soviet Union.

What is the answer to such inconsistency and, more

specifically, to the need for looking after our security interests

no less than our moral ones? At the least, it seems to me, we

should tilt to the principle that our conducting trade with another

nation carries no implication whatsoever that we either approve or

disapprove of that nation's internal policies.

T7-10
A NATIONAL MATERIALS POLICY FOR A DESTABILIZED WORLD

PAGE 10

9. Further, in the diplomatic arena, we should try, in

international forums and with individual Third-World countries,

to shore up contract law and equity in financial and commercial

transactions. The essence of such law and equity is common benefit

to all parties concerned, as we have to make clear more forcibly

than we have done. To accomplish that will take, among other

things, persistence and a stockpile of patience.

It has been nearly 30 years since the Paley Report warned

us of the predicament that lay ahead for us in strategic minerals.

The warning was by and large ignored. The predicament is upon us.

But it need not become a crisis if we rally ourselves now to act

steadfastly and with purpose.

The materials and minerals law adopted last fall is a

good start. But it is only a start. Nothing guarantees that we

will proceed with appropriate speed to make the most of it —

nothing, that is, except the initiative and resolve of people

like yourselves all across the nation.

Initiative and resolve are each a human resource. And

fortunately, America has those qualities in abundance.

If we bring them to bear now on our minerals predicament,

we will not and cannot fail.

1/29/81

E. F. Andrews

T7-11
mi COMMENTS ON THE U.S. DEPARTMENT OF COMMERCE WORKSHOP

Dom Strollo

RMI Company

T8
RMI COMPANY COMMENTS

U.S. DEPARTMENT OF COMMERCE WORKSHOP

February 9, 1981

RMI Company is an integrated producer of titanium mill products, with

sponge facilities in Ashtabula, Ohio, ingot and mill product facilities

in Niles, Ohio, and finishing facilities in Washington, Missouri.

In this paper, we would like to review several of the key topics of concern to us in the titanium industry;

(1) The critical nature of the industry

(2) The uses of the metal

(3) A brief history of the industry

(4) The strategic importance of titanium to America's future

(5) The advantages in the applied use of titanium

We will close by suggesting some questions that might be addressed

in any study that may be made.

At RMI Company, we reaffirm the belief that the current and future status

of titanium mill products production aud demand should be the subject of

such a study on critical materials needs. History has shown that end

products are essential to many facets of American life, not the least of

which is our nation's defense preparedness.

General Alton Slay, formerly head of Air Force Systems Command, had identified the titanium industry as one where domestic productive sponge

capacity is, and may continue to be, insufficient to meet domestic industrial and defense market demands.^

Titanium sponge is the necessary feedstock for the production of titanium

metal. The metal is low in density, light in weight, exceptionally strong,

and resistant to many forms of corrosion.

RMI

.“TITANIUM

^The Air Force Systems Command Statement on Defense Industrial Base

Issues, Gen. Alton D. Slay, November 13, 1980.

T8-1
RMI

.“TTtanium

Alloys have been developed that have the strength of steel, at 60% the

density. These alloys can be used at temperatures far exceeding 1000°F.

Because of this special property, titanium alloys are the most engineeringly efficient materials of construction for critical parts of both

defense and commercial airframes, and the power plants used to propel

them. Currently, about two-thirds of all titanium mill product shipments are allocated to the aerospace industry.

Of the aerospace purchases, approximately 50% go to America's defense

contractors for such programs as the F-14, F-15, F-16, F-18, various

types of offensive and defense missiles, and helicopters. These programs

utilize titanium to reduce weight and increase operational integrity.

The titanium mill products shipped to commercial aircraft manufacturers

are primarily for use in the Boeing family of airliners, Lockheed's L-1011,

and the McDonnell Douglas DC-10 (KC-10) and DC-9 series. Principally

Pratt and Whitney and General Electric, through their subcontractors,

consume millions of pounds annually for both defense and commercial aircraft jet engines.

In the evolution of jet engines, the addition of a two-stage titanium

fan to a basic straight jet helped produce 42% more takeoff thrust, while

reducing fuel consumption by 13% and specific weight by 18%. The current

generation of large, high-bypass-ratio engines have substantial amounts

of titanium alloys in the fans and compressor sections, as well as other

structures. These engines, and the aircraft they propel, could not have

been built without titanium alloys.

Despite the obvious engineering advantages of the metal, there has often

been a reluctance on the part of industry executives to fund expansions.

We believe it valuable to briefly review the history of the industry.

This will help us to better understand the position we are in now.

T8-2
In the 30-year history of the titanium industry, market demand has been

extremely erratic. Because of large anticipated government contracts,

and private enterprise expectations, a number of companies have, in the

past, entered into the supply market. Unfortunately, many of those programs were abruptly terminated, due primarily to the lack of political

and economic support (e.g., the B-1, B-70, and SST programs). Thus,

several companies withdrew from sponge production. Included are such

industry giants as Union Carbide, DuPont, Crane Company, Crucible Steel,

and Dow Chemical. (Although Dow has recently reentered in a joint

venture with Howmet.)

In the 1960s, with increased defense spending, and a new generation of

commercial aircraft coming on stream, capacity was once again developed

to meet anticipated demand. But, because of program terminations, and

despite exceedingly low domestic sponge prices, the non-integrated producers bought their sponge product from Russian and Japanese sponge producers. These countries were dumping their sponge on American markets,

with subsidies from their governments.

Domestic sponge consumption and production fared no better throughout

most of the 1970s. But, a recent surge in demand finds the industry

producing at capacity levels.

A combination of reasons have led to this surge in demand and resultant

capacity constraints. Among them are: (1) the almost complete withdrawal of the Soviets from supplying Western markets, (2) other offshore

supply channels being redirected to fulfill internal and other markets,

and (3) a spike in demand from both industrial and aerospace users.

When we talk about the first two items just mentioned, it is important

to reemphasize the "dumping" practiced by the Russians and Japanese. A

suit was won against the Soviets in 1968 for dumping practices, yet the

penalties were not enforced. If they had been, it is quite likely that

production capacity would have been in place domestically.

T8-3
RMI]

fitANIUM

The importance of titanium in the defense establishment and in com- mercial markets, and the susceptibility to disruptive foreign product

penetration, make it clear that a strong domestic industry for this

strategic metal is advantageous to the United States.

An examination of expanded uses of alternative ore sources may be a valuable addition to any proposed study. America has vast resources —

ilmenite — which can be process upgraded to a form comparable to

rutile, which is then compatible with existing process facilities.

With the keen interest being shown in rutile producing countries about

developing their own metal reduction plants, domestic integration would

assure this important industry of plentiful and totally self-sufficient

resources

.

Titanium is a cost-effective material of construction, especially when

one considers elements beyond initial cost; elements like: lifespan,

cost of construction, cost of maintenance, etc. This can be most

accurately measured by comparing titanium to other materials of con- struction, like zirconium, inconel s, hastelloys, and nickel alloys.

In 1980, the following relative prices have been demonstrated (where

titanium = 1 .00)

.

Zirconium 2.8

Hastelloy C276 2.8

Inconel 625 2.1

Hastelloy G 1.5

Nickel 200 1.3

Inconel 600 1 .2

Incoloy 825 1 .1 Monel 1.1

Carpenter 20 1 .0

Titanium 1.0

Alloy Steel 0.1

Compared to other metals, the discrepancy can be seen even further:

Tantalum 53.5

Columbium 26.7

Titanium 1.0

2 Relative costs of plate product

T8-4
There are a number of reasons why a strong domestic industry is extremely

important to the United States. We have previously discussed the strategic

importance of the industry, and, the United States could be in the enviable position of self-sufficiency in at least one strategic metal.

It is our hope that any proposed study would consider this crucial fact.

There are a number of avenues that might be examined when we consider

this potential. Included are: (1) improvements in productive capabilities, (2) additional R&D into the potentials for material conservation

and wise application, and (3) fulfillment of the stated goals of the

national stockpile.

Taking the last item first, there are currently only 32,331 tons of

titanium in the stockpile. Of this, 10,836 tons are considered not to

3

be of stockpile grade. The objective is 195,000 tons. Thus we really

have only 11% of our goal attained.

The strategic importance of the metal is acknowledged by being placed on the list of materials in the Strategic and Critical Materials Stockpiling

Act. This act requires the acquisition of materials determined to be

"deficient or insufficiently developed to supply industrial, military,

and naval needs of the country for common defense," and necessary to

"prevent wherever possible a dangerous and costly dependence of the

United States upon foreign nations for supplies of these materials in

times of national emergency." U.S. Code, Section 98 (1951)

In this sense, titanium is comparable to cobalt. Both metals are vital

to the country. Both are especially important in the development of

cost-effective and fuel efficient jet engines.

With any surge in defense preparedness requirements, the United States

would not have enough titanium stockpiled to last the aerospace industry

one year. This is true -- even assuming we devote all current production

capabilities to aerospace. New and current aerospace systems production

would be slowed severely, especially in essential engine production.

"3Mineral Commodity Summaries 1980, U.S. Bureau of Mines, U.S. Department

of Interior.

T8-5
Long-term contracts for replenishment and rebuilding of the stockpile

would be one means to give domestic industry the incentive to go even

further in current expansion plans and programs. It would insure both

a complete stockpile, and the productive capacity to respond to critical

or surge requirements. The United States would indeed be capable of

self-sufficiency in one strategic metal. As this indicates, we would

then have developed a significant improvement in our materials production base.

The rebuilding of American industrial strength should not rely solely

on defensive weapons procurement. The strength of the United States

depends on a totally strong industrial economic base. And, part of a strong economic base in America is energy development and energy con- servation. Titanium is the preferred application material in many

energy-related applications, including: auxiliary heat exchangers,

condensers for liquefied natural gas, steam turbine blades, geothermal

power, and instrumentation and piping for oil exploration.

One of our common objectives in this meeting today is to illustrate the

crucial issues facing our country. We believe our discussions, to this

point, have demonstrated the importance of the titanium industry, and

its critical applications.

Securing a strong economic and defense capable industrial base is imperative in the United States today!! To do this, we must adopt intelligent,

rational policies with which to act most propitiously. To develop these

policies, we need to initiate aggressive and insightful studies which

will lay the foundation for policy formulation.

We are hopeful that this discussion will assist you in defining our nation's needs. And, we would respectfully suggest that titanium be

included in the initial studies, so that a comprehensive titanium

policy can be developed to the benefit of everyone.
In a proposed study of titanium production capacity and demand requirements, there are a number of questions that might be asked. These may

provide the basis for policy initiatives. Though the following list is

certainly not all-inclusive, it may be representative of other issues

that might be covered in a study of this nature.

(1) Would it not be advantageous to U.S. policy-makers to

be made totally aware that the defense concerns of the

United States today imply that critically needed

materials be examined completely? As previously suggested, America would easily become self-sufficient

in titanium metals production if the incentives to do

so were present.

(2) Might it not be of concern to U.S. policy-makers to

understand how our balance of payments can be affected

by the redevelopment of a strong domestic industry?

Rather than a reliance on imports which may be suddenly

cut off, for economic or defensive reasons, it may

be better to be in a position where value added production can be sent out of the United States instead

of into the United States. One way for America to

fight the awesome effect of payments out of the United

States, due to the huge deficit from OPEC accounts,

is to increase exports. Many aerospace contractors

are running surplus accounts now (most notably

Boeing), and strong domestic subcontractors could help

maintain or build, this payment flow into America.

(3) Might we not look at the current U.S. policy initiatives

concerning redeveloping America through applied R&D?

Research and development on improved alloys has been a way of life at RMI Company. As new areas of application

grow, R&D becomes an even more essential element in the

total equation. As demand for the metal grows, industry

T8-7
feels an obligation to put its first priority on facility

expansion. Inasmuch as the titanium industry is extremely

capital intensive, this does not always allow for congruent

growth in R&D for the future. It is suggested then that

careful thought be given to the possible benefits of legislation to encourage R&D funding -- be it through grants or

tax benefits.

(4) One element of policy in government today is to understand

the problems of strategically important industries. Government can be very beneficial by encouraging communications

that enhance predictability. Thus, study of the titanium

industry may include a comprehensive analysis of longterm market demand. The recent, and temporary, shortfall

in capacity versus demand requirements was partially due

to the lack of communication of true demand. Would

industry have added capacity to prevent this problem if we had an accurate picture? The answer is yes. In fact,

RMI Company recently did add to capacity — an increment

of over 25%. Past history has made the industry shy about

expansion. Long-term contracting might be examined as potential methods of building a sense of economic security

in this strategically important industry.

(5) It might be worthwhile to examine the federal emergency

allocation policies and procedures. Included in these

laws are the potential for assisting American industry

in capacity expansions, economic production practices,

and other incentives for domestic industry to produce at

levels not only to support defense requirements, but also

allow commercial development not to be restricted or impinged upon.

T8-8
In 1950, the Congress passed the Defense Production Act.

This act, in its present form, is used:

To establish a system of priorities and

allocations for materials and facilities,

authorize the requisitioning thereof, provide financial assistance for expansion of

productive capacity and supply, provide

for price and wage stabilization, provide

for the settlement of labor disputes,

strengthen control over credit, and by

these means facilitate the production of

goods and services necessary for the

national security and for other purposes.

Specifically, the act provides for the implementation of

a system — the Defense Priorities System — which permits

the President to accelerate the production of critical

defense items by causing the manufacturer to place these

items at the front of the production line; guaranteed

loans to expedite deliveries of national defense systems;

and direct government loans to industry to expand plants

and facilities in order to develop or produce essential

material

.

(6) The Department of Commerce could act as a synthesizer of

the needs of the titanium industry. With the two previous

topics in mind, is it not worthwhile to have the assistance

of a central body who can recognize both commercial and

defense requirements, and recognize both classified and

unclassified demands?

Might we not also look into the question of materials substitution capabilities as an element of U.S. policy? For

example, titanium is an excellent candidate for substitution

among many nickel -based alloys.

T8-9
To carry this one step further, might not U.S. policy

place even greater emphasis on more extensive applications in energy and environmental areas? These are

areas where titanium metal is constantly being demonstrated to be the most engineeringly efficient and

cost-effective material of construction.

In conclusion, we would like to suggest that it may be beneficial to use titanium as a vehicle of policy analysis. Though it is an atypical metal,

it is one where there is a definite domestic solution.

The life of the titanium industry has been very short, only three decades;

yet, the potential for critical applications which will be immensely beneficial to the United States is tremendous. And, the developed technologies

put titanium on the threshold of fantastic growth.

With an integrated effort on the part of the producers, users and other

members of private industry, hand-in-hand with our military and other

government agencies, solutions may be readily obtained.

T8-10
KEYNOTE ADDRESS

William A. O'Donnell

Sperry Corporation

T9
I am pleased to have the opportunity to address the

Department of Commerce Workshop on Critical Materials Needs of

the Aerospace Industry. The Workshop has been planned to

establish a framework and lay out essential ideas for the

Department of Commerce report due to the Congress in October

of 1981. The report is required under Public Law 96-479,

entitled Materials and Minerals Policy, Research and Development

Act of 1980.

The Congress has taken steps to establish a National

Policy to deal with, those materials, including minerals of

current or potential use, that will be needed to supply the

military, industrial and essential civilian needs of the United

States in the production of goods or services. Of particular

interest are those materials or minerals which are primarily

imported. The continued availability of these materials is of

concern to the United States. The Aerospace Industry also

shares the concern.

The U.S. is more than 50 percent dependent on foreign

sources for over half of the approximately 40 minerals which

have been described as most essential to our $2.3 trillion

uoiiar econoi..y. .'‘.any ol t'ncse essential minerals consc exclusively from foreign sources and some of the most critical

of them from highly unstable areas of the world.

T9-1
Last year the U.S. had to import over $25 billion worth

of non-fuel minerals. This dependence on foreign sources for

raw materials vital to our industries has been increasing for

many years.

Aerospace Industries Association reported estimated

1980 aerospace sales of $50.5 billion, up from $45 billion in

1979. The increase is slightly above the rate of inflation and

marks continuance of the Industry's upward climbing activity

curve initiated in 1978. Backlog at year-end 1980 was expected

to top $97 billion, up 30 percent over the $75 billion on the

books at the end of 1979.

Aerospace exports increased substantially, from

$11.7 billion in 1979 to $14.6 billion in 1980 an increase

of almost 25 percent. The net export balance is estimated at

$11.3 billion and Aerospace continues as the nation's number one

manufacturing exporter.

Profits, after taxes, as a percentage of sales are

estimated at 4.4 percent, down from 5 percent in 1979. For

1981, AIA forecasts total sales of $57 billion, or almost

13 percent over the 1980 level.

Our industry has a lot at stake should tlieie bo an

interruption in its vital supply of critical materials and

minerals

.

T9-2
The Aerospace Industry has been selected by the

Department of Commerce as a focus for the first study in

connection with P.L. 96-479 and has begun to examine anticipated

materials used in the Aerospace Industry, I have been asked to

deliver a keynote address on the general topic "Critical

Engineering Materials" used by the Aerospace Industry. As an Industry

Chairman of the Materiel Management Committee of the Aerospace

Industries Association# I chair a group made up of approximately

40 Procurement executives of member Aerospace companies. We are

concerned with:

. Availability of supply

, Lead times

. Escalation

, Critical materials

. Federal regulations common to our buying practices

and

. Other non-proprietary matters related to Procurement.

Within our companies we are the individuals charged with obtaining

the materials required by our manufacturing locations. We seek

sources of supply# worldwide# that will assure quality delivery

at a price we can afford to pay. You are being addressed by a

professional Buyer. We buy materials for developmental work —

engineers#' for production work — manufacturing and quality

departments# for plant and equipment — buildings arc. machine

tools. All# but with the possible exception of the brick and

mortar# involve materials or components using critical materials

and minerals.

T9-3
Following my keynote address, there will be a series

of presentations specifically covering critical materials and

minerals as they are used in:

. Electronics

. Engines

. Airframes

and

, Machine Tools

I believe you will find them pinpointing the vital materials and

minerals used in each category.

My talk will:

FIRST

Summarize the key critical materials " issues " with respect

to the Aerospace Industry as I see them and offer

alternatives

and

SECOND

Suggest a particular material or two that would provide

the most useful focus for a Departmental report designed

to bring out these key issues and recommended action.

In our business planning cycle at my corporation,

Sperry, we annually develop business planning for one year and

T9-4
for five years, in the product areas. We start with an

appraisal and under that heading include such elements as a

summary of current performance, environmental assumptions,

markets, strengths and weaknesses, opportunities and threats

and an evaluation of previous strategies. That is the first

step. Again, we call it an appraisal. I believe the fact that

P.L. 96-479 is on the books attests to the fact that, as a

nation, an appraisal has been made and that the evaluation of

our previous strategies concludes that if we continue on the

same non-action oriented path as we have pursued in the past

20 years, we are headed for a profit loss and a possible

negative growth. This appraisal has been made on the basis of

potential non-availability of critical materials and minerals.

In the National Security sector, we can foresee diminishing

sources or extremely high prices to be paid for essential

materials. In the Industrial sector we, and our allies, are

headed for the possible strangulation of economy without a

strategic plan to combat the diminishing availability of key

materials. So, the appraisal has been made. We have identified

weaknesses and threats and made our appraisal and now move on

to a Strategic Plan.

The Strategic Plan includes a statement of business

areas, key issues, strategies, development programs, manpower,

facilities, management for results objectives and financial

goals. We have stated our business area, and for the purpose

T9-5
of this meeting have restricted it to the Aerospace business.

It is a $50 billion dollar industry and it consists of both

military and commercial products. Aerospace continues as the

nation's number one manufacturing exporter - $14.6 billion in

1980. In a logical progression, that brings us to key issues.

Our strategies and development programs will be the output of

this workshop and subsequent task groups. A completed plan will

be ready by October, 1981.

Are there any key issues facing the Aerospace Industry?

I believe there are. Aerospace Industries Association President,

Karl Harr, delivered his annual address providing a review of

the Industry's status in December 1980. Many of the statistics

I have used were included in that address. In partial summary,

Mr. Harr called for:

. Multi-year procurement funding

. More realistic projections of inflation rates in

estimating program costs

. Reduction in excessive controls in the procurement

process

.

Mr* Harr summed up his address with this advice to the new

administration

;

"In space, concentrate- on making the utilization of that

domain so feasible as to make it a commonplace option for

businesses and governments to take full advantage of

the economic and social gains that space offers.

T9-6
In commercial aircraft, concentrate on maintaining U.S.

leadership in the world marketplace.

In defense — most important of all — concentrate on

getting new systems into the inventory, even at the risk

of passing up the last increment of technological advance

in the name of sufficient quantity and timely delivery."

Certainly some of these goals include key issues to the Aerospace

Industry as an entity.

Let me present 9 key issues to Aerospace, specifically

related to Public Law 96-479, National Materials and Minerals

Policy, Research and Development Act of 1980.

Key Issue #1

Can the Aerospace Industry, or the Government, identify

and quantify critical materials as included in P.L. 96-479?

Can we identify current usage, predicted usage, by material

or mineral, with a degree of accuracy for the next decade?

Alternative 1 — the data accumulated to date which identifies

critical materials and minerals, its current usage and

predicted usage, is adequate and correct. We may accept this

data. A National Materials Policy utilizing this data will

provide a realistic basis for Industry business planning over

the next 5 to 10 years.

T9-7
Alternative 2 — an intensive effort is required to

accumulate accurate data and develop forecasts of usage

in both the military Aerospace business and the commercial

business areas. The meager data that does exist is simply

a regurgitation of past data, myth and postulation. The

entire spectrum of materials and minerals used by Aerospace

must be reassessed by both industry and government working

together: industry through its Trade Associations; government

through the Department- :of Commerce, Defense and other

agencies to identify and quantify the critical materials

and minerals. To accept existing data will be misleading.

To generate new data will require the allocation of industry

resources in terms of manpower and costs. The same will

apply to governmental agencies.

Alternative 3 — rather than attempt to eat the whole

elephant in one bite, accept some data and thoroughly

examine only minimal, key materials or minerals to develop

a model program and policy. There is sufficient time to

permit this approach. Three (3) to 5 minerals could be

identified and quantified in this manner in 4 to 6 months

and the balance at the rate of 8 to 10 per year thereafter.

Key Issue #2

The Congress passed the Strategic Materials Act in 1939

followed by the Strategic and Critical Materials Stockpile Act

T9-8
of 1946, to create a strategic and critical materials

stockpile for emergency ’use in times of war. The stockpile,

as originally planned, was to be used solely for defense

materials purposes? however, since 1946 there have been

frequent, and severe, shifts in stockpile objectives having

little to do with defense.

The consequences of materials stockpile sales to balance

the national budget and sales to try to control prices or

reduce inflation have severely hindered the system. Today

there are many shortages and imbalances in the stockpile.

Of the 62 family groups and individual materials that are

stockpiled, approximately 60 percent do not meet the

established goals. We currently stockpile only 17% of

titanium sponge against our goal, 33% tantalum in all forms,

48% of cobalt, 52% of columbium and 86% of chromium.

Clearly, our stockpile is in a dangerous position. Should

there be only one stockpile, for military use in times of

emergency or should there be one for military, one for

industrial commercial use by industries such as Aerospace

or should there be one stockpile for use by both?

Alternative 1 — there is sufficient data to increase the

national stockpile to required levels and it should be

done immediately. The stockpile should be available for

T9-9
Critical military emergency use. Congress must support the

full FY *81 FEMA (Federal Emergency Management Agency)

stockpile request of $100 million to increase the stockpile.

Alternate 2 — we should wait until the picture is more

definitive and then increase the stockpile.

Alternate 3 — the stockpile should be built up to cover

emergency military usage and should cover the commercial

sector of our Aerospace business as well. The economic

strength this industry furnishes the nation, both domestically

and for export, requires that we make the stockpile available

to the Aerospace industry. This will require additional

stockpiling and may be used in times of economic uncertainty

related to drastic price increases possibly due to cartel

type actions or the shutdown of supply due to geopolitical

reasons. There is not sufficient time to develop substitutes

or develop sources for items such as cobalt, titanium,

nickel, tungsten, aluminum and others.

Alternate 4 — if the government wants to stockpile for

emergency military use, that is fine. But, the commercial

Aerospace sector considers that it can effectively do the

job itself, provided adequate tax incentives are made

available through legislation to permit it to handle the

cost of preventing critical material stock-outs.

T9-10
Key Issue tf3

In Defense contracting, the current one-year procurement

method of buying to an annual authorization bill causes

Industry to be loath to make capital investment for

programs funded for only one year. Both business and

government planning are largely affected. We could achieve

significant economies by buying materials and components

in larger quantities. We could even procure more critical

materials at today's prices and availability if we had

the mechanism to procure shapes and components containing

critical materials and the incentive to do so, beyond one

year or contract limitation, even in multi-year contracts

in effect. Current multi-year contracts have a cancellation

ceiling of $5 million. We have advance procurement funding

for long-lead but as prices escalate, particularly in the

critical materials area, we need more advance procurement

dollars. Short supplies will lengthen lead time. Do we

have any possible way out of the growing dilemma and the

possible future undesirable effects on our industry?

Alternate 1 — the Congress can increase the present

$5 million cancellation ceiling limit on multi-year contracts

to a higher, more enabling figure of $100 million. This

will assist the Aerospace military segment as an industry.

It will permit added capital investment. It will permit

bettor planning. It will lower costs. More critical items

can be procurred at today's prices and availability. This

could help us over the next 4 year period.

T9-11
Alternate 2 — advance Procurement funding can be increased.

Many critical materials and minerals are included in our

long-lead parts. We now have aircraft with 4 year lead

times. While long-lead procurement appropriations have

increased from $650 million in FY '76 to over a billion

dollars in Fiscal Year 1980, the alternative is costly

schedule slippages. Advance procurement to termination

liability, rather than full funding, is a way to minimize

the dollar impact. Funding to termination liability means

that we only pay for the contractor's actual expenditures

plus termination liability for the advance procurement

contract. Application in the area of materials, shapes and

components requiring critical materials will help solve the

problem of growing shortages, escalating prices and potential

eventual supply disruption.

Alternate 3 — the current methods of contracting are

acceptable and, besides, we can't afford to invest in long

term multi-year contracting (4 or more years) even though

there may be a cost savings, as much as 30%, according

to General Slay and we also are okay in the area of

Advance Procurements. After all, we've gotten by so far.

We are currently paying through the nose in escalating costs

and lead times for items containing critical materials but

that's just a fact of life.

Key Issue ^4

The same key issue exists in the commercial Aerospace sector.

T9-12
other than government stockpile and substitution, are

there other means avai-lable to the commercial Aerospace

sector to beat the critical materials problem? Advance

funding and multi-year contracts are not available in this

sector.

Alternate 1 — long term contracts are sought and acquired

in the commercial sector. Excellence of product and

continued good planning techniques will be adhered to.

Alternate 2 — Congressional actions to enhance capital

formation, through realistic tax incentives, will be

sought. Awareness of the industry needs will be made

known to the Congress.

Alternate 3 — the by-products of P.L. 96-479 will be

available and, as such, utilized.

I will mention other key issues as I see them but

do nothing more than list them;

Key Issue #5

Substitutes for unobtainable or uneconomically priced

materials and minerals will be required. Since this is a

topic to be covered in subsequent presentations, I will

T9-13
not dwell on it, I only hope we do embark on substitution

programs rather than tend to live with the problem as we

have in many cases, like gold.

Key Issue tfS

Cartel actions are likely to form in the mineral areas.

Can we and our allies survive resulting price increases?

Key Issue #7

The United States Aerospace Industry faces fierce

competition from Europe in the commercial ayiation arena

and to a lesser degree in the military. Industry, in

general, faces industrial competition from Japan. Can

we get a competitive edge in the area of "critical

engineering materials"? Are they formulating national

policies and, if so, what can be learned?

Key Issue #8

Will current goyernment regulations permit the development

of alternate sources within the continental United States?

Key Issue ^9

What timetable can we expect for our resulting task force

proposals to be turned into desirable legislation?

T9-14
- 15 -

So much for key issues. There are probably more. It

is up to us to help to develop the necessary strategies and

development plans to complete the entire planning cycle.

I have also been asked to select a critical material

or two that would provide the most useful focus for a Departmental

report designed to bring out these, key issues and recommend action.

The key materials I would select are:

Titanium

Cobalt

Tantalum

I have selected these materials since one essentially

represents airframe — titanium; engines — cobalt; electronics —

tantalum. Each is extensively imported and at least one# cobalt#

has a potential source of domestic supply. Substitution is

difficult# particularly in cobalt and titanium# and predictably

easy in the case of tantalum# at least as it is used in the

production of electronic capacitors. Prices have escalated in

all three. Between 1978 and 1980# titanium sponge has increased

80% # refined cobalt 117%# and tantalum ore 300%. It has been

pointed out by General Slay that the price rise in cobalt

alone caused# for example# price increases for the F-lOO engine

of almost $18 #000; the J-79 engine# $21 #000; and the

TF-39 engine# $21 #000. Our domestic capacity to shape

T9-15
forgings containing titanium and cobalt is limited. Each of the

key issues I have listed and the alternates listed apply to

these three materials. The recommended actions I shall leave

to the output of this workshop and those persons involved in

the area of "critical engineering materials".

I am pleased to note that not only are we in the

Government and Aerospace Industry concerned with critical

materials, but so is the general population of the United States.

The new issue of the Readers' Digest, and you simply can't get

any more "general population" oriented than that monthly,

carries a boldface title on its cover titled "Strategic Minerals,

The Invisible War". It devotes 5 pages to our topic. I would

comment that the Invisible War is becoming Visible and Vocal.

The time has cornel Thank you.

T9-16
mERIALS CRITICALITY IN JET ENGINES

William A. Owczarski

Pratt & Whitney Aircraft Group

TIO
THE HEART OF MODERN AIRCRAFT IS ITS JET ENGINE (fIG. 1). A JET ENGINE

IS MADE OF MANY SOPHISTICATED METAL ALLOYS^ CHOSEN FOR LIGHTNESS^ HEAT

RESISTANCE^ STRENGTH AND DURABILITY. TITANIUM ALLOYS AND HEAT-RESISTANT

"superalloys" CONSTITUTE MORE THAN 85% OF THE ENGINE'S WEIGHT. THESE

TWO CLASSES OF ENGINEERED ALLOYS ARE INDISPENSABLE TO THE PRODUCTION OF

A JET ENGINE WITH THE POWER^ DURABILITY AND EFFICIENCY REQUIRED BY OUR

nation's military and commercial aircraft. these alloys are FORMULATED

FROM A VARIETY OF BASIC METALLIC INGREDIENTS. TO BUILD AN FlOO ENGINE

(fig. 2)j which powers our nation's front line DEFENSE AIRCRAFT^ THE

F-15 AND F-16^ REQUIRES AN INPUT WEIGHT OF 520^ LBS. OF NICKEL^ 1656 LBS.

OF CHROMIUM^ 910 LBS. OF COBALT^ 5366 LBS OF TITANIUM^ 720 LBS. OF

ALUMINUM^ 3 LBS. OF TANTALUM^ AND 171 LBS. OF COLUMBIUM. EACH OF THESE

METALS IS IMPORTED FROM SOME OVERSEAS SOURCE. SOME FOREIGN SOURCES LIKE

CANADA OR AUSTRALIA ARE SECURE^ STABLE AND FRIENDLYj OTHERS SUCH AS THE

SOVIET UNION OR ZAIRE ARE LESS RELIABLE FOR DIFFERENT REASONS. WE ALL

KNOW THAT IN 1978 CIVIL WAR ERUPTED IN ZAIREy CAUSING THE COBALT MINES

TO CLOSE. MORE THAN 50% OF THE WORLD'S COBALT COMES FROM ZAIRE AND THE

DISRUPTION IN PRODUCTION CAUSED WORLD-WIDE SHORTAGES. BY 1978 COBALT

WAS ALLOCATED TO USERS AT 70% OF 1977 CONSUMPTION AND WELL BELOW ACTUAL

REQUIREMENTS. THE SHORTAGES CAUSED PRICE JUMPS FROM $6.85/LB. TO ABOUT

$50. 00/ LB. IN THE SPOT MARKET AND CAUSED LARGE INCREASES IN LEAD TIME

FOR OBTAINING BASIC MATERIALS TO PRODUCE ENGINE PARTS. TODAYy THE MINES

ARE PRODUCING AGAIN BUT ECONOMIC PROBLEMS BESIEGE ZAIRE AND THE RISK OF

DISRUPTION REMAINS.

TO ILLUSTRATE THE NATURE OF OUR CONCERN^ LET'S EXAMINE THE IMPACT OF

A LONG-TERM COBALT SUPPLY CUT-OFF ON U.S. AIRLINES BY LOOKING AT ONE

PART IN ONE ENGINE TYPE. IN 1979^ SOME 83% OF THE COMMERCIAL FLIGHTS

TlO-1
- 2

-

IN THE UNITED STATES WERE IN AIRCRAFT EQUIPPED WITH OUR JT8D ENGINE. ON

THE AVERAGE^ THESE ENGINES OPERATE ABOUT 2^500 HOURS PER YEAR AND THE

FIRST TURBINE VANE (FIG. 3 ), WHICH IS A 60% COBALT ALLOY^ HAS A USEFUL

LIFE OF lOyOOO HOURS BEFORE IT IS REPLACED. THE PIPELINE FOR REPLACEMENT

PARTS IS ABOUT TWELVE MONTHS LONG FROM OUR MELTING SUPPLIERS TO DELIVERY

OF SPARE VANES TO THE AIRLINES. FROM THE TIME COBALT SHOULD BE CUT OFF

FROM OUR MELTING SUPPLIERS^ WE COULD SUPPLY SPARE PARTS TO OUR AIRLINE

CUSTOMERS FOR ONLY A YEAR. AT THE END OF THAT TIME^ THE JT8D-POWERED

FLEET WOULD START TO BE GROUNDED AT THE RATE OF ABOUT 25% PER YEAR.

ALTHOUGH THE ILLUSTRATION HAS BEEN LIMITED TO ONLY JT8D PARTS (FIG. ^)

j

ALL ENGINES^ FROM ALL MANUFACTURERS^ USE COBALT-CONTAINING ALLOYS FOR

FIRST TURBINE VANES, IN THE REAL CASEy TO AVERT GROUNDINGS^ LESS SATISFACTORY ALTERNATIVE MATERIALS WOULD BE USED^ BUT SIGNIFICANT PENALTIES

WOULD RESULT. THE IMPACT ON OUR DEFENSE AND COMMERCIAL AVIATION SYSTEMS

WOULD BE EXTREMELY SERIOUS.

CHROMIUM^ WHICH IS ALSO USED IN TURBINE VANESy TURBINE BLADES AND

TURBINE DISKSy SHAFTS^ BEARINGS^ CASESy SEALS AND COATINGS^ IS ANOTHER

METAL IMPORTED FROM SOUTH AFRICA AND THE SOVIET UNION. THE UNITED

STATES IS 90% IMPORT-DEPENDENT ON CHROMIUM^ AND THE REMAINDER COMES

FROM RECYCLED SCRAP> NOT DOMESTIC MINERAL SOURCES. JET ENGINE NEEDS

FOR CHROMIUM CANNOT BE SATISFIED FROM COMMERCIAL SCRAP BECAUSE OF

PURITY REQUIREMENTS. A STUDY BY THE NATIONAL MATERIALS ADVISORY BOARD

IN 1978 stated; "while (chromium) is an important ingredient in many

COMMODITIES^ IT IS IRREPLACEABLE IN STAINLESS STEELS AND HIGH TEMPERATURETlO-2
- 3

-

RESISTING SUPERALLOYSy TWO CLASSES OF MATERIALS THAT ARE VITAL TO THE

TECHNOLOGICAL WELL-BEING OF THE NATION. CURRENTLY THERE IS MQ

CHROMIUM-FREE SUBSTITUTES THAT CAN BE USED IN THESE CRITICAL APPLICATIONS^

NOR ARE ANY SUCH SUBSTITUTES LIKELY TO BE DEVELOPED IN THE FORESEEABLE

FUTURE." ALTHOUGH THE CURRENT SUPPLY SITUATION IS ST ABLE> THERE REMAINS

A RISK TO BE ADDRESSED FOR THE LONG-TERM FUTURE.

TITANIUM ALLOYS ARE USED FOR NEARLY 30% OF THE ENGINE BY WEIGHT IN FAN

AND COMPRESSOR BLADES^ DISKS AND CASES. TITANIUM COMPONENTS ARE ONE-THIRD

LIGHTER THAN EQUIVALENT STEEL PARTS AND MAKE POSSIBLE THE WEIGHT ADVANTAGE

WHICH GIVES THE ENGINE AND AIRCRAFT FUEL EFFICIENCY AND SUPERIOR PERFORMANCE. TITANIUM SHORTAGES OCCURRED IN 1979 AND 1980 ^ NOT BECAUSE OF

RAW MATERIAL SUPPLY INTERRUPTIONS FROM AUSTRALIA^ WHERE 85% OF THE WORLD's

RUTILE IS^ BUT BECAUSE OF DOMESTIC AND WORLD SPONGE-MAKING CAPACITY. SPONGE

IS THE INITIAL METALLIC FORM OF TITANIUM WHEN IT IS REFINED FROM THE

RUTILE ORE. THE SPONGE SHORTAGE WAS INTENSIFIED WHEN THE SOVIET UNIONy

A MAJOR SUPPLIER^ CUT ITS EXPORTS TO THE U.S. SIGNIFICANTLY.

THE OVERALL LIST OF MATERIALS DESCRIBED EARLIER FOR THE FIDO ARE USED

IN BROADLY SIMILAR QUANTITIES IN ALL JET ENGINES (FIG. 5 ). BUT BASED

ON CRITICALNESS TO PRODUCT^ RISK FACTORS AND ACTIONS WHICH CAN BE TAKEN^

WE BELIEVE THAT COBALT^ CHROMIUM AND TITANIUM ARE MATERIALS WHICH DRAW

THE FOCUS OF ATTENTION AT THE DEPARTMENT OF COMMERCE IN THIS STUDY

REQUIRED BY THE NATIONAL MATERIALS AND MINERALS POLICY^ RESEARCH AND

DEVELOPMENT ACT OF 1980 .

ACTIONS HAVE ALREADY BEEN TAKEN AT PRATT & WHITNEY AIRCRAFT TO ADDRESS

THE CRITICAL MATERIALS ISSUES. SUBSTITUTION OlG. 6) OF ONE ALLOY BY

TlO-3
ANOTHER AVAILABLE ALLOY HAS BEEN ACCOMPLISHED WHERE POSSIBLE TO REDUCE

II CRITICAL MATERIAL USE. ALLOY CHANGES IN ONE MILITARY ENGINE VANE RESULTED

i IN A SAVINGS OF 65^000 LBS. OF COBALT IN 1980. DISK ALLOYS ARE BEING

I:

' CERTIFIED FOR USE IN COMMERCIAL ENGINES WHICH WILL RESULT IN FURTHER

SAVINGS. HOWEVER^ THESE ARE THE EASY SUBSTITUTIONS WHICH HAVE BEEN

IDENTIFIED^ AND ALTHOUGH IMPLEMENTATION IS COSTLY^ THEY ARE BEING PURSUED.

FURTHER PROGRESS TOWARD SUBSTITUTION WILL COME MORE GRUDGINGLY^ INVOLVING

; HARD DECISIONS ON TRADE-OFFS IN PERFORMANCE OR IN FIELD MAINTAINABILITY.

I BEYOND THE USE OF AVAILABLE MATERIALS THERE IS THE OPPORTUNITY FOR NEW

MATERIALS YET TO BE DISCOVERED. ONE SUCH RESEARCH EFFORT IS BEING FUNDED

BY THE DEFENSE ADVANCED RESEARCH PROJECTS AGENCY (DARPA) AND THE AIR

FORCE IS FOSTERING RAPID SOLIDIFICATION RATE (RSR) POWDER TECHNOLOGY^

TO SEEK NEW ALLOYS WHICH CAN PERFORM WITH REDUCED CRITICAL METAL CONTENT.

CONSERVATION EFFORTS ARE ALSO BEING IMPLEMENTED IN THE FORM OF INCREASED

EMPHASIS ON MATERIAL RECYCLING. IN ONE CASE^ THE CHIPS FROM MACHINING

A TURBINE DISK ALLOY WITH HIGH COBALT AND CHROMIUM CONTENT ARE COLLECTED^

AND AFTER CLEANING RETURNED TO THE MELTERS TO MAKE THE ALLOY FOR NEW

DISKS. WE HAVE REACHED A POINT WHERE UP TO 20% OF THIS DISK MATERIAL

USED CONSISTS OF THE RECYCLED MATERIAL. EmPHASIS ON NET-SHAPE MANUFACTURING TECHNOLOGY IS ANOTHER SOURCE OF CONSERVATION. WhEN A PART

FORGING CAN BE MADE CLOSER TO NET-SHAPE^ LESS INPUT MATERIAL IS REQUIRED.

USE OF ADVANCED TECHNOLOGIES SUCH AS GATORIZING^^ AN ISOTHERMAL FORGING

PROCESS^ ALLOWS REDUCED FORGING ENVELOPES. A PROGRAM IS IN PROCESS TO

REDUCE THE INPUT WEIGHT OF NINE KEY FIDO PARTS FROM 1200 TO 600 POUNDS

BY THIS PROCESS. MORE WORK IS NEEDED AND WILL CONTINUE^ BUT THESE EFFORTS

DO NOT ELIMINATE THE NEED FOR CRITICAL MATERIALS; THEY JUST REDUCE THEM.

TlO-4
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THE CRITICAL MATERIALS PROBLEM IS MULT I "FACETED AND WILL REQUIRE A

VARIETY OF SOLUTIONS. THREE SPECIFIC ACTIONS WHICH ARE NEEDED WILL

REQUIRE GOVERNMENT^ PRODUCER AND CONSUMER COMMITMENT AND COOPERATION

(fig. 7 ). THESE are; ( 1 ) INCREASE DOMESTIC SUPPLIES OF CRITICAL

MATERIALS; ( 2 ) IMPROVE THE USE OF OUR NATIONAL STOCKPILE; ANDy ( 3 ) PROMOTE AND SUPPORT ADD I Tl ON At^ CONSERVATION.

WHILE THERE HAS BEEN SOME RECENT PROGRESS IN RECOGNIZING THAT MULTIPLE

USE OF THE 760 MILLION ACRES OF FEDERAL LANDS IS NECESSARY^ FURTHER

ENCOURAGEMENT IS NEEDED TO SEEKj DEVELOP AND PRODUCE DOMESTIC SOURCES

OF CRITICAL MATERIALS. THE COBALT^ CHROMIUM AND NICKEL DEPOSITS IN

IDAHO AND CALIFORNIA ARE EXAMPLES OF POTENTIAL DOMESTIC RESOURCES THAT

CAN BE DEVELOPED WHILE RECOGNIZING THE NEED TO PRESERVE THE NATURAL BEAUTY

OF THE WILDERNESS IN WHICH THEY EXIST. THANKS TO THE IDAHO WILDERNESS

BILL, THE MINERALS IN THE BLACKBIRD MINE CAN PROVIDE MUCH NEEDED COBALT

METAL IN THE NEAR FUTURE. IT MAY ALSO BE NECESSARY IN THE CONTEXT OF A

MATERIALS INSURANCE POLICY TO PROVIDE FINANCIAL INCENTIVES FOR DOMESTIC

PRODUCTION. HIGHER PRODUCTION COSTS OF LOW GRADE ORES IN THIS COUNTRY^

COUPLED WITH THE ADDITIONAL COSTS OF ENVIRONMENTAL OR REGULATORY

RESTRICTIONS^ MAY HINDER THE NORMAL ECONOMIC DEVELOPMENT PROCESS OF

DOMESTIC MINES. SOME FORM OF TAX AID> DEPLETION ALLOWANCE OR GOVERNMENT

PRICE SUPPORT COULD BE NEEDED TO PERMIT DEVELOPMENT OF AN ECONOMICALLY"

MARGINAL BUT BADLY-NEEDED SOURCE.

THE TECHNOLOGY FOR MINERAL BENEFICIATION SHOULD RECEIVE FEDERAL SUPPORT

AND STIMULATION IN THE FORM OF RESEARCH AT BUREAU OF MINES^ AT UNIVERSITIES

OR OTHER RESEARCH INSTITUTIONS TO FIND WAYS TO DISCOVER AND PRODUCE MINERALS

TlO-5
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NOT<PRESENTLY ADAPTABLE TO JET ENGINE PRODUCTION. FINALLY^ THE

LONGER TERM FUTURE MAY FIND THAT MAJOR MINERAL RESOURCES WILL COME

FROM THE SEA. THE CURRENT LAW OF THE SEA TREATY APPEARS TO WORK

AGAINST THE KIND OF STRONG GOVERNMENT SUPPORT NECESSARY TO ESTABLISH

AN AMERICAN TECHNOLOGY AND SEA MINING INDUSTRY WITH GUARANTEED ACCESS

TO THOSE MINERALS WHICH THE OCEAN FLOORS CAN PRODUCE.

NEXT TO INCREASED DOMESTIC SUPPLY^ THE USE OF THE NATIONAL STOCKPILE

CAN BE THE BEST GUARDIAN AGAINST FUTURE TEMPORARY SUPPLY INTERRUPTIONS.

AT LEAST FOR SHORT"TERM EMERGENCIES^ OUR STOCKPILE CAN PROVIDE THE MAiLklALS

TO KEEP GOING. BUT THE PRESENT STATE OF THE STOCKPILE IS INADEQUATE IN

QUANTITY AND PROBABLY IN QUALITY. THE STATIC NATURE OF THE STOCKPILE

SUGGESTS THAT THE SPECIFICATIONS OF TODAY MIGHT NOT BE MET BY RAW

MATERIALS PUT INTO STOCKPILE 20j 30^ OR ^0 YEARS AGO. THE EXISTING

STOCKPILE MUST BE INVENTORIED FOR QUALITY^ RESUPPLIED WHERE NEEDED AND

THEN KEPT DYNAMIC TO AVOID FURTHER OBSOLESCENCE. THE EXCLUSIVE USE OF

THE STOCKPILE AS A DEFENSE STOCKPILE MAKES IT RELATIVELY USELESS IN

TIMES WHEN WE ARE NOT AT WAR. IT WOULD BE FAR MORE EFFECTIVE IF ITS

USE COULD BE CONSIDERED FOR ECONOMIC EMERGENCIES AS WELL^ SUCH AS WOULD

HAPPEN IF AFRICAN COBALT OR CHROMIUM WERE NOT AVAILABLE. FURTHERMORE^

IF NATURAL DISASTERS PREVENTED PRODUCTION OR SHIPMENT OF A CRITICAL

MATERIAL^ THE STOCKPILE SHOULD BE AVAILABLE TO AVOID ECONOMIC DISRUPTION WHICH COULD DAMAGE OUR INDUSTRIAL BASE. RECENT TESTIMONY BY

GENERAL ALTON D. SLAY> COMMANDER^ AIR FORCE SYSTEMS COMMAND^ WARNS OF AN

ALREADY THIN DEFENSE INDUSTRIAL BASE AND "SPRINT" CAPABILITY. THE

STOCKPILE CAN ALSO BE USED TO HELP STIMULATE SOUND CAPITAL INVESTMENT

TlO-6
- 7

-

IN CRITICAL MATERIALS-PRODUCING INDUSTRIES BY BUYING TO FILL THE STOCKPILE DURING THE VALLEYS OF DEMAND AND THEN SUPPLYING DURING THE PEAK

"crunch." IT MIGHT BE USED TO STABILIZE SEGMENTS OF INDUSTRY LIKE THAT

OF TITANIUM SPONGE PRODUCTION WHICH HAVE BEEN RELUCTANT TO ADD CAPACITY

DUE TO THE CYCLIC HISTORY OF THE USE OF TITANIUM IN OUR COUNTRY.

THE THIRD ELEMENT^ CONSERVATION^ HAS NOT BEEN EXHAUSTED AND COULD BE

FURTHER STIMULATED BY GOVERNMENT RESEARCH AND DEVELOPMENT SUPPORT THROUGH

AGENCIES LIKE THE DEPARTMENT OF DEFENSE^ NATIONAL AERONAUTICS AND SPACE

ADMINISTRATION^ DEFENSE ADVANCED RESEARCH PROJECTS AGENCY^ DEPARTMENT

OF ENERGY^ AND NATIONAL SCIENCE FOUNDATION. SUPPORT OF NEW KNOWLEDGEBUILDING STUDIES CAN HELP INDUSTRY UNDERSTAND WHY MATERIALS HAVE THE

PROPERTIES THEY DO AND LEAD TO DEVELOPMENT OF NEW MATERIALS AND METHODS

FOR MANUFACTURING THEM.

CONCERTED ACTION TO SOLVE OUR NATIONAL MATERIAL CRISIS IS LONG OVERDUE.

PRATT & WHITNEY AIRCRAFT PLANS TO CONTINUE TO DO WHAT IT CAN AND IS

PLEASED TO CONTRIBUTE TO THIS CASE STUDY. ONE CANNOT PROVIDE DETAILS

IN THE TIME THIS TALK ALLOWS^ BUT WE WILL BE AVAILABLE AND ANXIOUS TO

EXPAND ON THESE BRIEF COMMENTS DESCRIBING THE PROBLEM AND ITS SOLUTIONS

AT ANY TIME.

THANK YOU FOR THE OPPORTUNITY TO PARTICIPATE.

TlO-7
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T12-36
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T1 2-37
CRITICAL MATERIALS & MACHINE TOOLS

C. J. Beigle

Rockwell International

T13
CRITICAL MATERIALS Sc MACHINE TOOLS

C. J. BEIGLE

ROCKWELL I International

PITTSBURGH, PENNSYLVANIA

IN THE COMPLEX WORLD OF AEROSPACE PRODUCTION, CHANGES

IN AVAILABILITY OR LEAD TIMES CAN ALTER THE CRITICAL

PATH IN THE PRODUCTION SCHEDULE AND FOCUS ATTENTION ON

A SM^LL AREA SUCH AS MACHINE TOOL ACQUISITION. MOST

NEW AEROSPACE PROGRAMS GENERATE A FLURRY OF ACTIVITY

PLACING ORDERS FOR NEW CAPITAL EQUIPMENT. A PORTION

OF THIS WILL BE FOR EXPANSION OF CAPABILITY AND CAPACITY

AND A PORTION WILL BE FOR REPLACEMENT OF EXISTING EQUIPMENT. A SELECTION OF M\JOR MACHINE TOOLS IS NO LONGER

AVAILABLE TO GOVERNMENT AEROSPACE CONTRACTORS FROM

GOVERNMENT INVENTORY AS IT WAS IN PREVIOUS TIME PERIODS.

BIDS FOR THIS EQUIPMENT WOULD BE REQUESTED FROM THE

GENERAL MJ^CHINE TOOL INDUSTRY.

WE NEVER SEEM TO HAVE THE LUXURY OF ADEQUATE LEAD TIME

FROM CONTRACT GO-AHEAD TO THE DATE THE EQUIPMENT MUST

BE ON THE LINE AND OPERATING. "NORMAL" LEAD TIMES ARE

INFLUENCED BY MANY FACTORS AND VARY FOR THE DIFFERENT

TYPES OF ^!ACM INI'S. LARGE, AND '3 AXES GANTKV TVri3 ‘.'C

MILLS RUN lA TO 20 MONTHS LEAD TIKE. MACHINING CENTER

T13-1
TYPE MILLS RUN 14 TO 18 MONTHS, AND CONVENTIONAL MACHINES RUN 9 TO 14 MONTHS FROM ORDER DATE TO DELIVERY.

THIS LEAD TIME IS MORE DEPENDENT ON THE MANUFACTURER'S

BACKLOG, AVAILABILITY OF TRAINED MANPOWER, MACHINING

CAPACITY AND ASSEMBLY FLOOR AREA THAN ON CRITICAL

MATERIALS

.

THE CURRENT ECONOMIC DOWNTURN HAS REDUCED BACKLOGS IN

GENERAL. HOWEVER, SOME COMPANIES HAVE STARTED PLACING

ORDERS FOR CAPITAL EQUIPMENT TO MODERNIZE AND INCREASE

THEIR PRODUCTION CAPABILITY TO MEET THE EXPANDING MARKET

THAT THEY FORECAST FOR THE NEXT FEW YEARS. AS MORE

COMPANIES JOIN IN THIS TREND, BACKLOGS WILL INCREASE

AND THE LEAD TIME FROM ORDER PLACEMENT TO DELIVERY DATE

WILL INCREASE.

THE MACHINE TOOL DESIGNERS DID NOT HAVE THE SEVERE

WEIGHT, STRENGTH AND ENVIRONMENTAL CONSTRAINTS THAT

FACE THE AEROSPACE ENGINEERS. EXOTIC ALLOYS WERE

AVOIDED WHERE POSSIBLE FOR REASONS OF COST AND AVAILABILITY.

THE MOST FREQUENTLY USED MJ^TERIALS IN MACHINE TOOLS

ARE IRON CASTINGS, FORGINGS AND WELDMENTS. THERE ARE,

OF COURSE, SELECTIVE APPLICATIONS OF COMMON S'!'EET,S

AND IN AREAS WHERE HIGH STRENGTH, HARDNESS, ACCURACY

AND LONG LIFE ARE IMPORTANT, STEEL ALLOYS ARE USED THAT

T13-2
DO CONTAIN CRITICAL MATERIALS SUCH AS COBALT, CHROMIUM

AND MOLYBDENUM. THE AMOUNT OF THESE MATERIALS IN A

MACHINE TOOL IS VERY SMALL IN RELATION TO THE MASS OF

THE COMPLETE MACHINE. HOWEVER, THESE PARTS IN MOST

CASES ARE CRUCIAL TO THE OPERATION OF THE MACHINE (CLUTCH

PARTS, HARDENED WAYS, ETC.). IF SOME OF THESE CRITICAL

MJ^TERIALS WERE NOT AVAILABLE, SUBSTITUTIONS COULD BE

MADE TO ALTERNATE MATERIALS IN MANY CASES. THIS COULD

LEAD TO INCREASED COST, LONGER LEAD TIMES, AND POSSIBLE

LOWER PERFORMANCE OR LIFE OF THE EQUIPMENT. IN SOME

CASES, FOLLOWING THE "FOR LACK OF A NAIL, A SHOE WAS

LOST" SYNDROME, THE DELIVERY OF THE ENTIRE MACHINE COULD

BE DELAYED UNTIL THE CRUCIAL PARTS COULD BE PROVIDED.

IF A CRITICAL MATERIAL SUCH AS MANGANESE WERE NOT AVAILABLE, THE IMMEDIATE DROP IN STEEL PRODUCTION WOULD HAVE

A DIRECT EFFECT ON AEROSPACE CONTRACTORS LONG BEFORE THE

SECONDARY PROBLEM OF DELAYED MACHINE TOOL DELIVERIES

COULD BE FELT.

A SEPARATE, BUT EQUALLY IMPORTANT FIELD, IS MACHINE TOOL

CUTTERS AND DRILLS. YOUR COMPANY COULD HAVE ALL OF THE

MACHINE TOOLS INSTALLED BUT WITHOUT CUTTERS YOU CANNOT

MAKE PARTS.,

THE HIGH STRENGTH, HIGH HEAT RESISTANT STEEL AND TITANIUM

ALLOYS THAT ARE USED IN TODAY'S AEROSPACE VEHICLES REQUIRE

T13-3
SPECIAL CUTTERS. THESE CUTTERS HAVE TO BE EXTREMELY

HARD. CARBIDE, WHICH IS NOT A CRITICAL MATERIAL, WORKS

FINE IN SOME APPLICATIONS BUT MANY CUTTERS AND DRILLS

ARE MADE FROM MOLYBDENUM AND COBALT RICH ALLOYS.

DURING THE LAST COBALT SHORTAGE A PROGRAM VJAS ESTABLISHED AT ROCKWELL INTERNATIONAL TO SEGREGATE WORN,

BROKEN AND OBSOLETE CUTTERS AND DRILLS. THESE SCRAP

CUTTERS WERE SOLD TO OUR SUPPLIERS WHO HAD THEM REPROCESSED INTO NEW CUTTERS. PRIOR TO THIS PROGRAM THE

SCPO^P HAD BEEN SOLD ON THE OPEN MARKET AND PROBABLY

ENDED UP IN JAPAN. THIS METHOD OF RECLAIMING CRITICAL

MATERIALS SHOULD BE ENCOURAGED AND EXPANDED.

THE MACHINE TOOL CUTTER INDUSTRY HAS BEEN TRYING TO

DEVELOP NEW CUTTERS TO REPLACE COBALT. THE LIFE OF

CARBIDE TURNING CUTTER INSERTS HAS BEEN GREATLY IMPROVED (ABOUT 7 TIMES THE LIFE OF STANDARD INSERTS) BY

COATING THE INSERTS WITH TITANIUM. IT HAS BEEN FOUND

THAT THIS REDUCED PITTING AND CRAZING OF THE CARBIDE.

ANOTHER NEW CUTTER DEVELOPMENT THAT SHOWS PROMISE IS

THE NEW SINTERED METAL CUTTERS. THESE CUTTERS, WHICH

ARE MADE FROM POWDERED METAL ALLOYS THAT ARE HEATED

AND COMPKESSED, ACTUALLY CONTAIN 10-12T COl’ALT IN

CONTRAST TO THE 8% IN A CONVENTIONAL COBALT ALLOY

T13-4
CUTTER. AT PRESENT THE SINTERED CUTTERS ARE ABOUT

TWICE THE COST OF CONVENTIONAL COBALT ALLOY CUTTERS

BUT THEY ARE HARDER THAN COBALT AND THEY HAVE ABOUT

EIGHT TIMES THE CUTTING LIFE. THE EXPANDED USE OF

THIS CUTTER WILL HAVE THE NET EFFECT OF REDUCING COSTS

AND CONSERVING COBALT IN THE CUTTER INDUSTRY.

THIS PROCESS HAS BEEN SUCCESSFULLY USED FOR END MILLS

AND SOME REAMERS. TESTING IS NOW GETTING STARTED ON

TWIST DRILLS. EIGHTY PERCENT OF THE TWIST DRILLS THAT

WE USE ARE HIGH MOLYBDENUM ALLOY. IF SUCCESSFUL, THE

NEW SINTERED TWIST DRILLS COULD ALSO CONSERVE THIS

CRITICAL MATERIAL.

RESEARCH AND DEVELOPMENT IN THE CUTTER INDUSTRY SHOULD

BE ENCOURAGED TO GREATLY EXTEND THE LIFE OF EXISTING

CUTTERS OR DEVELOP NEW CUTTERS THAT WOULD NOT USE

CRITICAL MATERIALS.

A THIIU) AREA OF CONCERN IS THE DIMENSIONAL TOOLING

THAT IS USED IN AEROSPACE PRODUCTION. TOOLS RANGING

FROM HOT FORMING DIES TO DIFFUSION BONDING TOOLING

AND THE NEW SUPERPLASTIC FORMING TOOLING, ALL REQUIRE

HIGH STRENGTH, HIGH HEAT RESISTANT STEELS. THESE NEW

PRODUCT ! t"'N TI!CUNTf"'U''S lU’DUOE MANUl"A(!TlUn NG

PRODUCE SUPERIOR PARTS BUT REQUIRE EXTENSIVE TOOLING

T13-5
OF STEEL ALLOYS UTILIZING CRITICAL MATERIALS.

IN CONCLUSION, THE LOSS OF COBALT IMPORTS COULD BE OFFSET FOR ABOUT TWO YEARS BY UTILIZING THE GOVERNMENT

RESERVES. THIS WOULD ONLY BE A SHORT TERM SOLUTION.

DOMESTIC SOURCES OF COBALT AND MOLYBDENUM SHOULD BE

DEVELOPED. MACHINE TOOL CUTTER RESEARCH SHOULD BE ENCOURAGED TO DEVELOP MORE EFFICIENT SUBSTITUTE CUTTERS

FOR MOLYBDENUM AND COBALT CUTTERS. AEROSPACE CORPORATIONS, POSSIBLY WITH GOVERNMENT R&D FUNDING, SHOULD

EXPLORE THE USE OF NEW ALLOYS, COATINGS, AND SURFACE

TREATMENTS INCLUDING METGLAS AND ION IMPLANT TO REDUCE

THE DEPENDENCE ON CRITICAL MATERIALS IN TOOL STEELS.

THE MANUFACTURERS OF MACHINE TOOLS COULD BE ENCOURAGED

TO FIND SUBSTITUTION MATERIALS FOR THE CRITICAL ALLOYS

USED IN THEIR PRODUCTS. IT IS DOUBTFUL THAT ANY ACTION

WOUTD BE TAKEN IN THIS DIRECTION UNTIL THE CRITICAL

MATERIALS ARE NO LONGER AVAILABLE OR A NEW MATERIAL

COULD BE OBTAINED AT LOWER COST.-

T13-6
CRITICAL MATERIAL ISSUES

Jim D. Martin

General Dynamics Corporation

T14
CRITICAL MATERIAL ISSUES

GENERAL DYNAMICS CORP.

The specific areas I have been asked to discuss are Castings,

Forgings and Extruded Shapes and the related issues surrounding

these items. These items, or their equivalents, machine from

plate, bar or rod are the basic structural components from which

our aircraft and missile programs are manufactured. They are

used extensively throughout the F-16 Fighter Aircraft, the cruise

missile and various other missile programs manufactured by our

aerospace divisions. As the charts presented indicate, the lead

times and price history of these items indicate they have been

real problems in the past and are likely to be in the future. A

discussion of castings and forgings must necessarily involve a

brief analysis of the primary metals from which these products

are made.

A. Aluminum - The largest number of castings and forgings,

machined parts, etc. for aerospace applications is made

from aluminum. It has been stated by one of our large

aerospace divisions that the greatest impact to their

business in the 1978/1979 time period was the failure of

the aluminum industry to keep pace with the demand. Currently, due to general economic conditions, there has

been a softening in the aluminum marketing. We view this,

however, as only temporary relief and expect a return to

tight market conditions when economic recovery begins and

increased defense requirements occur. It is pertinent to

note that the automotive industry is requiring increased

amounts of aluminum due to environmental and fuel economy

T14-1
considerations. Reasons given to us by the aluminum industry for its slow pace in increasing capacity are: Uncertain market conditions - a large capital expenditure

is required - and the lack of a firm energy policy.

B. Ti tanium - This is the other primary metal associated

with availability of the structural components for our

products and is also a critically short material. Prior

to 1978, there were reasonable capacity and price

stability. Since 1978, the demand has substantially

increased for this material, creating availability on a

strict allocation basis including those with DX and DO

rated orders. This increased demand has further resulted

in lead times of 90 weeks with mills requiring "no

cancellation" provisions and price in effect at time of

shipment. We have received some statistical data

compiled by a major titanium producer which projects

demand by program and commodity during the period 1981

thru 1987. This data rejects a cumulative deficit of 7.8

million pounds of sponge during the 1984 thru 1987 period

without considering the potential multi-roll bomber and

other new programs. Obviously, these conditions will

result in severe shortages and in more rigid allocation

programs unless corrective measures are taken.

T14-2
Even assuming there were no shortages of the basic metals, there

are some specific problems associated with the castings and forgings industry as they relate to aerospace requirements.

1. Precision Forgings - In the last five years a significant

advancement in the state of the art of making forgings

has occurred which enables the manufacturer of forgings

to produce parts with extremely tight tolerances and unusual shapes. The utilization of these types of forgings

is a cost effective alternative to the expensive hog outs

and is becoming increasingly popular throughout the industry. We believe engineers will increasingly specify the

forgings in the interest of freeing up machinists and

spindle time which also have been in short supply. As

the charts presented indicate, the lead time for these

items have been excessive. We believe that these lead

times are indicative of a fundamental lack of capacity by

the forging industry. This capacity is governed by the

following items:

a. Number of Producers - It is our understanding that

the forging industry has recently given testimony

about the industrial base indicating there is plenty

of forging capacity in the U.S. We believe that precision forgings for aerospace application are an exception. There are approximately 200 companies in

the forging industry association with only 40 of these

doing aerospace work. Of these 40, 19 do over 95% of

T14-3
the aerospace business. Our Pomona Division recently

solicited over 80 companies for a forging for the SMI

and SM2 Missile with only 2 responses.

b. Lack of Presses - We understand that there are only

30 presses in the industry that have a range from 500

to 3,000 tons. Although the investment is relatively

small ($500,000 to $1,000,000 per press), it represents a large investment for many which are small

businesses. Further, they expre-ss reluctance to make

these investments in what they perceive to be an unstable market. For certain, very specialized forgings

requiring the very large presses, there is even a

more limited capacity. There are only two presses in

the country of the 50,000 ton variety.

c. OSHA and EPA - The forging industry reports that their

productivity and ability to deliver product is to

some extent affected by these governmental agencies.

One California supplier reports that he has repeatedly

paid fines for use of a petroleum based dye lubricant.

We believe that other forging houses could be susceptible to the same strict enforcement. The industry

is pressing for development of a water based formula.

2. Casting - As you will note from the 1-ead time trends on

the charts presented, the lead times for castings have

remained relatively constant but are still troublesome

T14-4
items. In spite of the loss of many foundries over the

last several years, there is still a significant casting

capacity in the U.S. We have, however, experienced a

significant problem with premium sandcastings which have

high property requirements. There are essentially only

three large companies in this business for which demand

has exceeded supply. This has resulted in lead time of

72 weeks and rapidly escalating prices up to 21% per year.

A program like the cruise missile has a significant number

of such castings, and a surge in production rate would

severely impact the available capacity.

Tn addition to the materials discussed above, several other items

warrant investigation and action. These are graphite composites,

electrical connectors, integrated circuits and discrete semiconductors, bearings, titanium fasteners and other items as may be

identified by the aerospace manufacturers.

No specific recommendations are made on the topics presented except that the solutions to these problems fit into a broader picture that was recently covered by the Air Force Systems Command

in their "Pay Off 80" publication. We join with the Air Force

Systems Command in their recommendations reprinted as follows and

feel these are pertinent to the DOD in general.

T1 4-5
CONDITION ; Government contracts do not fully utilize available

contractinQ techniques to provide appropriate motivation for industry to produce efficiently.

RECOMMENDATIONS ; Increase the use of multi-year contracting as

an excellent way to achieve program stability and economy. It

not only allows contractors to optimize their schedule, stabilize

their workforce, and purchase economic lot buys of material; but

provides the incentives to make needed investments since returnon-investment (ROD decisions are based on more than one year.

Use incentive fees contract techniques to encourage contractors

to implement new manufacturing technology embodied in new processes, methods, and equipment. Such contracts provide a fee

percentage payable if a target is met — in this case, the

investment in a new technology and/or equipment that reduces cost

or improves responsiveness in the performance of the contract.

Use termination protection clauses to guarantee the contractor

the ability to recoup its investment in modern cost-effective

manufacturing severable plant equipment. This technique, as defined in DAR 3-815, does not provide a contractor with complete

risk protection. However, it is especially useful in situations

where ROI is sufficient but substantial risk exists with regard

to program continuity.

T14-6
Use of Capital Investment Clause to provide the contractor with a

share of the savings that result from their investment in severable plant equipment which significantly reduces the cost of a

system acquired by the Government.

Use an award fee to provide an additional incentive to encourage

contractors to implement an aggressive and innovative Manufacturing Modernization program. The award fee should be tailored to

the specific system being acquired, and it should be of sufficient magnitude to provide a real incentive for the company to

perform in an outstanding manner.

AFSC should continue to use competitive procurements for production options but should also encourage contractors to invest in

one-time development, capital equipment, tooling or start-up

charges that can demonstrate cost savings spread over larger

quantities planned for the future. These incentives could

include follow-on guarantees if the contractor can demonstrate

significant cost savings or other benefits.

Provide Government technology funding as an incentive to commit

the contractor (s) to develop plant modernization programs or to

invest in new processes, methods, and equipments that embody new

technology

.

CONDITION : The US is a major mineral and material user and is

becoming increasingly dependent on foreign sources. Some of our

T14-7
imported supplies are concentrated in only a few countries that

are susceptible to political turbulence. Some of our imported

mater ials/minerals could be supplied by domestic sources, if the

right types of incentives were provided. The US has specific

legislation. Title III of the Defense Production Act and the

National Stockpile Act, which could be used to provide incentives

and encourage domestic expansion of supplies.

RECOMMENDATIONS ; Use the National Stockpile Act to encourage

expansion of productive capacity of critical raw materials and

minerals. Long term commitments to purchase would encourage expansion of domestic sources and partially fulfill stockpile

inventory goals.

Revitalize the Defense Production Act, Title III, Expansion of

Productive Capacity and Supply, to provide incentives for

domestic industries to expand capacity and/or develop domestic

capability. These incentives could include loan guarantees,

direct loans, commitments to purchase, direct purchases,

subsidies, and R&D efforts to encourage our domestic industries

to produce needed materials for defense purposes.

CONDITION ; The US's near total dependence on foreign sources for

scarce and critical materials leaves our programs open to sudden

supply disruption and rapid escalation in cost and lead times.

Our present budgetary process is too slow and is unable to adjust

to the rapidly changing world market conditions. Programs need

T14-8
the authority to advance buy limited supplies of select critical

raw and semi-processed materials when it makes good business

sense or when national security needs require it.

RECOMMENDATIONS ; DODD 7200.4, Full Funding for DOD programs,

needs to be changed to permit long lead procurement, not only for

components but for raw and semi-processed materials.

The use of multi-year procurements (MYP) would encourage our contractors to buy materials in economic lot quantities and secure

favorable long term material supply agreements. In addition, it

would provide our contractors with the flexibility to advance buy

material when market conditions project dramatic price/lead time

increases. Current MYP cancellation ceilings are too low ($5M)

to effectively use this procurement technique in many

applications without significant efforts to obtain congressional

waivers. This ceiling should be raised to allow effective and

timely implementation of MYP.

CONDITION ; Lead times for aircraft and related aerospace

products have increased dramatically over the past few years due

to the allocation of critical materials (e.g., titanium sponge,

cobalt) , eroding industrial base, and increases in commercial

orders. The . nationwide industrial problems of low productivity

growth, low capital investment, and a shortage of skilled labor,

especially in defense related lower tier contractors and basic

industries, have contributed to the erosion in the responsiveness

of the industrial base.

T14-9
RECOMMENDATIONS ; Perform a detailed analysis on the impact of

critical material and critical industrial sector choke points to

quantify their effects on Air Force systems acquisitions.

Develop long term as well as short term solutions to improve industrial responsiveness and reduce the probability of material

and parts availability problems.

Develop a forecast model for shortages of critical materials and

parts used by the Air Force. In addition, utilize this model as

a decision-making tool for planning purposes.

Develop remedial actions for those institutional issues surfacing

as a result of our industrial critical sector analyses.

T14-10
LEAD

TIME

TRENDS

ALUMINUM

PRODUCTS

T14-11

TIME

PERIODS
PRICE

TRENDS

ALUMINUM

INGOT

&

TITANIUM

SHEET

&

PLATE

T14-12

2/

3/81

J.

D.M
LEAD

TIME

TRENDS

TITANIUM

PRODUCTS

e>c:

£

to

o

oc<

CO

T14-13

TIME

PERIODS
PRESENTATION ON TITANIUM

Ward Vi. Minkler

Titanium Metals Corporation

T15
Presentation on Titanium

by Ward W. Minkler

NATIONAL MATERIALS ADVISORY BOARD

SEMI-ANNUAL MEETING

September 3, 1980

REVIEW OF MATERIALS AVAILABILITY ISSUES

Of the metals being considered in this two day session, titanium has the

advantage of being the newest engineering structural material. We have a shorter commitment to our past mistakes. Since 1950, the start of production,

there are three characteristics which make titanium of interest for this assessment of major critical and strategic material availability issues:

1. The industry has exhibited a repetitive pattern of overcapacity,

interrupted by short periods when supply has been temporarily

insufficient to satisfy customer delivery requirements. The industry

is in such a cycle today; since mid-1978 sponge and ingot capacity

limitations throughout the world have been one cause for extended

delivery commitments. (I presume this is the primary reason for

including titanium in this availability study). There is strong

evidence that the industry is now entering a more normal period

where supply will exceed demand and commercial considerations,

selling price rather than delivery commitment, will determine supply

source(a conventional buyer's market appears at hand).

2. The commercial production of titanium metal in a competitive multi

source environment was established in the United States in 1950.

Since then, the U.S. has been the world leader in the manufacture

of titanium metal. Presumably, it is in our national interest to

maintain a strong industry because of its importance as a structural

metal in current and future commercial airplanes and military systems.

3. Finally, unlike many other strategic metals, dependence on foreign ore sources is not a consideration. The U.S. has sufficient ore and technology to support anticipated critical titanium applications for the

foreseeable future. Rather, the titanium supply will be determined by

the development of sound markets and the ability of the industry to

attract investment for the plants necessary to maintain the most up-todate efficient production base, compared to our foreign competitors.

In 1980, the bulk of U.S. titanium metal is being manufactured by processes

conceived in the 1930's and reduced to commercial practice in the 1950's and

early 1960's.

*Ward W. Minkler is Vice President - TIMET Division, Titanium Metals Corporation

of America.

T15-1
Titanium Flow Chart

.2 + lb.

Figure 1

As shown in Figure 1, titanium ore, most generally rutile concentrates,

is reacted with chlorine and carbon to form titanium tetrachloride. Alternate

methods include mixtures of synthetic rutile and ilmenite, the latter extensively available in the United States. After purification, the tetrachloride

is reacted with magnesium to produce titanium sponge and magnesium chloride.

While the bulk of titanium sponge throughout the world is produced by reacting

the tetrachloride with magnesium, sodium is being used in three plants, one

in the U.S., one in the United Kingdom and one in Japan. In most instances,

the magnesium or sodium chloride is recycled with only makeup quantities

of magnesium or sodium, and chlorine required.

The sponge is purified, then mixed with specially prepared scrap and alloy

additions, most frequently aluminum, vanadium, zirconium and molybdenum, then

pressed into compacts. The compacts are vacuum-consumable arc-melted into ingots

weighing from three to ten tons. Wrought products are manufactured from ingot

on conventional shaping equipment such as that used to roll and form steel.

The availability of titanium metal is most frequently equated to sponge

capacity. While equipment used for other metals can melt or shape the titanium,

a sponge plant can only manufacture titanium and paces availability. It is also

the controlling item in determining the cost of a titanium mill product.

One of the characteristics of the titanium sponge plant is the high capital

investment compared to other structural metals. This is due to the complexity

of the metal winning process coupled with the small plant size.

Sponge drives not only availability but also economics relative to other

materials. Ore, melting, rolling and forming are not controlling so long as dramatic demand increases are not required on short notice.

T15-2
Table I is a summary of 1979 world sponge capacity and includes announced

expansions. By 1981, U.S. sponge capacity will have been expanded 28%, Japanese

capacity 61% and non-communist world capacity 35%. Further sponge installations

are planned and some under construction. These should start producing in 1982-

1984. Currently, there are numerous U.S. and foreign titanium sponge ventures

under study.

Table I.

World Titanium Sponge Supply For Mill Product Production

(1000 lbs)

1979 1980 1981 1982-1984

U.S.

TIMET 25,000 28,000 30,000 32,000+

RMI Co. 14,500 17,000 19,000 19,000

Oremet 4,000 4,500 6,500 7,500

DH Co. - - - ?

Total 43,500 49,500 55,500

UK

ICI 5,000 4,000 3,000 - RR Consortium - - - 11,000

European Consortium - - - ?

Japan

Osaka 14,000 20,000 29,000 29,000

Toho 12,000 13,000 19,500 19,500

Total 26,000 33,000 48,000 48,500

Non-comnunist total 74,500 86,500 100,500

PRC 4,000 6,000 15,000 7 USSR 77,175 92,600 92,600 7

With one exception, the current expansions are incremental additions to

producing operations(thus substantially lower cost than new greenfield sponge

manufacturing plants). In the U.S., these incremental expansions are the

completion of sponge capacity planned for the late 1960's to support the SST,

B-70 and The YF12A, but left uncompleted due to the severe downturns of the

early 1970's.

This is illustrated in Figure 2. From 1970 to 1978, the U.S. titanium

sponge producers operated at a capacity only in one year, 1974, during a period of intensive inventory building by the aircraft manufacturers.

T15-3
Figure 2

As shown in Table II, foreign sponge producers have historically supplied

the non-integrated melters with the bulk of their sponge. In 1980, it is

estimated imports may exceed 8,000,000 pounds.

Japan

Table II

Sponge Imports

1972-1980

(1000 lbs)

USSR UK PRC Total

1972 4,580 2,817 325 0 7,722

1973 5,860 3,179 1,109 0 10,148

1974 5,505 6,897 877 0 13,279

1975 4,638 1,416 359 0 6,413

1976 2,647 632 189 0 3,468

T15-4
Table II (Cont'd)

Sponge Imports

1972-1980

(1000 lbs)

Est.

Japan USSR

1977 3,417 1,410

1978 1,632 1,202

1979 4,116 660

1980 6,230 712

UK PRC Tdtal

489 0 5,316

227 0 3,061

2 198 4,976

89 1 ,869 8,900

The genesis of the titanium industry was the gas turbine engine and its airframe. As shown in Figure 3, the 1979 military and commercial airplane applications still consumed over 75% of the mill products shipped. While industrial

applications are expanding, we anticipate that, for the next several years,

aerospace will continue to be the backbone of the titanium markets.

Poundsxio® Titanium Mill Product Shipments

Figure 3

T15-5
The swings in demand have been unusually severe for a capital intense

basic metals business such as titanium. This is illustrated in Figure 4, where

I have attempted to show the percentage change in titanium mill product shipments from year to year during 1964-1980. In Figures 3 and 4, I have plotted

our lastest 1981 forecasts of mill product shipments. With such rapicT changes

,

planning and operating a titanium venture becomes a challenge. If we have

correctly identified and quantified market requirements, there will be an excess

of sponge capacity relative to consumption in 1981.

MILL PRODUCT SHIPMENTS

PERCENT CHANGE FROM PREVIOUS YEAR

1964-1981

I l|

I

-30

64 65 66 67 6S 69 70 71 72 73

Year

74 75 76 77 78 79 80 81

Fijure 4

Since 1964, the U.S. has experienced three periods when buying demand has

caused lead times in excess of consumer's desires, these were in 1966, 1974

and from mid-1978 to mid-1980. For the purposes of studying material availability

issues, I believe it would be helpful to review some factors that were present

in 1974 and 1979-1980 to determine their likelihood of recurrence in the foreseeable future. (In this analysis, I have found Bill Swager's excellent study

"Periodic Materials Scarcity: Our National De Facto Materials Policy", presented

to the Aerospace Technical Council, AIA in April, 1979, to be useful). Mr.

Swager quoted the report of the National Commission on Supplies and Shortages

published in December, 1976, which listed the following causes of shortages in

1973-1974:

T15-6
* Sharp demand increases

* Limitations on investment in materials processing industry

* A shortage mentality

* Cutbacks by foreign suppliers and price, increases

In 1974 and 1978, the titanium industry was buffeted by all these factors.

Based upon grossly overly optimisitc market forecasts in 1968, excessive sponge

capacity was installed. Thus, the surge capacity was available to absorb sudden

demand increases until 1978. By 1978, the growth of the industrial uses of

titanium, coupled with unusually high purchases of commercial airplanes, raised

the market to new levels. While the current sponge expansion appears consistant

with forecasted markets, the surge capacity of the 1970's no longer exists.

Limitations on investment will influence future titanium expansion. Despite

uncertain profitability and high capital investment of the titanium business,

incremental additional sponge capacity has been installed reasonably quickly

during that shortage period. This, coupled with a following downturn in sales,

has satisfied customer availability and commercial demands.

Long periods of idle capital investment have taken their toll of earnings

records that would not attract knowledgeable investors. Now the U.S. industry

is not faced with decisions on new greenfield capacity. The day is not far off,

however, when greenfield plants will be necessary if the U.S. industry is to

continue to grow. Financial risks and return potential relative to historical

widely fluctuating prices and market demand will be closely assessed. The normal

condition in the titanium industry has been overcapacity. This has led to

product prices insufficient to justify new capacity. Prior to past incremental

expansions, the titanium market demand has been strong; producers could raise

prices sufficiently to justify rapid incremental expansion.

However, the lead time for new greenfield capacity is substantially longer,

three to five years, and much more costly. Attracting private investment in

view of historical overexpansion and the cyclical market history of titanium

will be a challenge; a problem that this forum might consider, particularly if

the anticipated increased demand is based upon programs considered to be in the

national interest.

It appears the shortage mentality has influenced overbuying in 1974 and in

the present cycle. Because of the limited number of suppliers, the small size

of the industry and the engineering necessity of titanium as an aerospace

structural material, buyers are obviously sensitive to availability. This leads

to aggressive procurement practices and inventory accumulation in excess of that

actually needed to support true consumption, when a potential tight supply is

perceived. The abnormal inventory buildup in 1974 then caused severe reduction

in titanium purchases in 1975 and 1976. There is mounting evidence this has

occurred in 1979 and 1980 and is one of the reasons for the forecasted downturn

in titanium mill product shipments in 1981.

T1 5-7
Cutbacks and price increases by foreign sponge suppliers were, to some extent, a factor in the most recent titanium shortage. Until recently, foreign

sponge was available at prices lower than domestic sponge; at times lower than

domestic costs. This discouraged investment in new sponge capacity and encouraged

the growth of the non-integrated domestic ingot producers with modest capital

investment who were willingly dependent on the lower cost foreign sponge.

However, in 1978, the foreign sponge producer was faced with a new situation.

Energy costs had increased. Demand for titanium external to the United States,

particularly in the industrial markets for products more profitable than sponge,

increased; 1978 and 1979 pruchase contracts were made based upon the depressed

markets in 1976 and 1977. The Japanese producers diverted their production to

other markets. The USSR ceased exporting, apparently for unrelated reasons. Foreign sponge exports to the U.S. fell dramatically during a period of high

market demand.

In 1980, the non-integrated melter, representing approximately 25% bf the

U.S. ingot capacity will import a record quantity of sponge from Japanese sponge

producers currently at prices double that of 1978. This expanded foreign capacity

will again influence U.S. producers' sponge expansion plans, particularly if a strong buyer's market develops breeding historical price degredation.

In concluding, I would like to identify some of the issues facing the

titanium industry which will affect the availability of titanium from U.S.

producers, as well as the strength of our industry relative to our overseas

competitors.

1. By next year, the domestic industry will have sufficient sponge

capability to provide 48 million pounds of mill products. With

present ingot melting capacity and expansions now underway, the

integrated and non-integrated domestic melters will have the

ability to ship 65 to 70 million pounds of mill products, 60%

higher than last record year, 1979. With foreign sponge expansions,

the titanium industry may be faced with overcapacity for the near term rather than under supply, with the attendant commercial

problems.

2. As I stated previously, the world industry has been highly cyclical.

Except for short periods of undercapacity, profitability of sponge

producers has been poor. Despite this, the U.S. industry has res- ponded to increased demand for overexpanding. These shortage

periods resulted in short term profits used for these incremental

expansion investments. Non-market related factors such as price

controls, suspension of tariffs that encourage a temporary surge

of foreign imports, or subsidies by the U.S. users to new foreign

sponge producers, will stunt future domestic incremental expansions.

T15-8
3. Despite tariff protection, the uncertain commercial priorities of

foreign sponge producers in the United States market has made

domestic sponge producers wary. In view of the foreign expansion

now underway, or being discussed, the environment is ripe for

another such cycle.

4. The bulk of the U.S. sponge plants were based upon process designs

of the 1950's and 1960's. Foreign sponge plants have been more

recently installed and could be expected to have operating cost

advantages. The product quality of these foreign sponge manufacturers is preferable to the non-integrated ingot manufacturers. At some time in the future, assuming the demand for titanium continues

to grow at the historic rate, 7% per year, new greenfield plants

will be required. Do we duplicate magnesium or sodium reduction

cycles or do we commit to a more promising but commercially untested

method, such as electrowinning? These decisions will be required

soon, particularly if we assume the three to five year period

normally required to engineer and construct a new reduction plant.

This choice can determine the competitiveness of the U.S. industry

for the latter part of this decade and certainly well into the

90's.

5. If it is determined to be in the national interest to expand

titanium production beyond that which valid demand forecasts would

dictate, some form of government financial encouragement would be

considered appropriate. Underlying this decision could be a temporary increase in titanium required for defense related projects

or for stockpile purchases. This encouragement could involve:

a. Multi-year material commitments for defense-related contracts

that would allow for appropriate cancellation reimbursement to

the titanium producer for cost of capital equipment, inventory

accumulation and loss of revenue, as a result of the cancellation.

b. An indexed stockpile procurement program which contains multiyear purchase contracts to fill stockpile objectives. Purchases

would be made when domestic sponge demand fell below a pre-established percentage of domestic capacity and be suspended when

demand exceeded these levels. One of the factors weighted in

contract awards could be encouragement to construct new or upgraded manufacturing plants.

The future of the U.S. titanium industry will depend on the confidence of

producers and investors in an acceptable return on investments, titanium's

competitiveness as an engineering metal and supportive government policies.

Unlike many other strategic metals, the selectivity of nature will not be a factor.

T15-9
DEPARTMENT OF COMMERCE WORKSHOP: NATIONAL MATERIALS

& MINERALS POLICY ACT OF 1980. P.L. 96-479

Gregory B. Barthold

Aluminum Company of America

T16
DEPARTMENT OF COMMERCE WORKSHOP

National Materials & Minerals Policy Act 1980

P. L. 96-479

Aerospace Industry Considerations - Aluminum

Today's Conditions

A. The U. S. imports almost all of its metal grade ore either in

the form of bauxite or alumina.

B. The industry's raw material base is broadly dispersed so that

any interruption of supply at one source can be accommodated from

other sources. The industry has researched a number of possible

alternatives to bauxite and has developed the technology to use

them. All are processes that would use domestic sources.

C. The National strategic stockpile contains a sufficient amount

of bauxite to meet defense requirements for aluminum until such

time as facilities to process alternative domestic ores can be

brought on stream.

0. U. S. domestic expansion of refining capacity and primary

ingot production has slowed down considerably. The ability to

build power capacity at a reasonably competitive cost is so

constrained by the regulatory process as to virtually eliminate

aluminum smelting expansion domestically.

T16-1
E. The U. S. aluminum industry is expanding its metal production

capabilities outside the United States in such places as Brazil

and Australia partially because these countries continue to demand

a growing share of downstream production. They have the ore, they

want to refine it, and produce the metal to gain the added value.

They have the electrical energy, and the will to meet the

challenge of growth of power supply and the environmental

consequences.

F. The industry's technology base is very strong. New higher

strength, lower density, higher modulus alloys in both ingot

technology and rapid solidification technology are emerging from

our laboratories especially for the aerospace industry. In

addition, our process efficiency in energy use is improving with

the application of new smelting technology and improvements on the

conventional reduction process.

G. Fabricating facilities for aerospace grade sheet, plate,

forgings and extrusions are being expanded to meet the forecast of

increased demand. The airlines' current cash flow problem has

reduced the demand for aircraft that was experienced last year and

was the cause of the extended deliveries experienced by some

builders. More recently the aluminum industry's expansion plans

have been stretched out to keep capacity in balance with forecast

demand

.

T16-2
H. Our international trading competitors have a more advantageous

tax policy than exists in the United States. This tax policy

allows them to modernize facilities and increase productivity. In

the long run they will become more price competitive in fabricated

products to the disadvantage of our domestic industry.

I. The balance between capacity and demand in the aluminum

industry is extremely delicate and fragile but it must be achieved

because the cost of idle facilities in a capital intense business

is too high to endure in today's high interest economy. A standby

surge capacity cannot be afforded.

J. A surge capacity for national security requirements, however,

does exist. The aluminum industry's current production for

defense requirements is approximately 1% of total production. The

balance - 99 % is for commercial applications, i.e., automobiles,

beer cans, siding, electrical cable, foil, etc. These uses would

lose their place in line as non-essential in a national emergency

thus releasing a great portion of that 99 % to defense

applications. The convertibility of fabricating facilities from

non-defense to defense can easily be accomplished. There would be

some bottlenecks. Advance planning as to the type and quantity of

aluminum would be needed to provide for a quick transition. The

bottlenecks that occurred during the past two years have been

recognized and additional capacity is being added. Current

capacity expansions include heat treated sheet and plate, large

press extrusions, and intermediate and large press forgings.

T16-3
K. Recycling, mainly of used beverage containers is becoming a more and more important source of raw material to the aluminum

industry. Recycling consumes five percent of the energy required

to make virgin metal. Thus the use of recycled metal is an

extremely energy-efficient process.

L. Substitution research and development to uncover replacements

for critical alloying elements is worthwhile. The aluminum

industry is highly dependent upon manganese as an alloying

element. A potential manganese shortfall could occur. The

elements of cobalt and chromium while not as important to aluminum

as they are to steel, are used in small quantities in some of the

new alloys being developed in both ingot metallurgy and rapid

solidification technology.

Recommendations:

For the primary aluminum industry to remain competitive and also

expand domestically . . .

1. Long term power at competitive prices must be available.

Current regulations inhibiting the growth of power must be removed.

2. A balance between environmental goals and national defense

needs must be achieved. Opening western lands to selected mining

of critically short minerals should be allowed. Water rights to

exploit domestic aluminum ores must be provided.

T16-4
3. U. S. tax policy should be changed to allow for faster

depreciation of facilities so that expansion and modernization and

greater productivity can occur.

The Defense Department should provide industry with detailed

information regarding its weapons requirements for both peacetime

and mobilization scenarios so that industry can plan to meet these

needs

.

Research to develop substitutes for critical elements that are in

short supply should be encouraged.

The aluminum industry, although critical to aerospace, is in

comparatively good health. Those materials and minerals that are

subject to geopolitically caused shortages or those that are

naturally scarce should receive our attention. Aluminum is not in

this category. Federal actions that would assist the domestic

health of industrv in general should be favored instead of those

actions that would discriminate in favor of one material.

T16-5
ROLE OF SUBSTITUTION. CONSERVATION. RECYCLING

AND HIGHER PERFORMANCE

Allen G. Gray

American Society for Metals

T17
AMtKICAN 5 0^I£IV 1- O K. MUIAL.S • Mi. lAl..^ I’AKJ^.OfllO M4073

KEYNOTE TALK

Workshop on Critical Materials Needs of the Aerospace Industry

...Role of Substitution, Conservation, Recycling

and Higher Performance

By

Dr. Allen G. Gray

Technical Director

American Society for Metals

Metals Park, Ohio 44073

Sponsored by

U.S. Department of Commerce

National Bureau of Standards

Gaithersburg, MD

9-10 Feb 1981

The United States is heavily dependent upon foreign sources

for the supply of most strategic metals required by the aerospace

industry. This country imports almost 100 percent of the strategic

aerospace metals, cobalt, columbium, tantalum, chromium, and

manganese

.

For example, of the strategic imports noted above, a single

F-lOO Turbofan engine for the F-15 and F-16 airplanes requires

1656 lb chromium, 910 lb cobalt, 171 lb columbium and 3 lb tantalum.

Also required are 5366 lb of titanium, 5204 lb of nickel and 720 .

lb of aluminum. These too are classed as strategic imports but

circumstances on availability are different w'nich reduces the

vulnerability to cutoff.

The potential for foreign cartels, political unrest, and

production limitation on strategic aerospace metals is great and

is intensified by steadily declining reserves. Thus, it's likely

that the United States will be faced with supply shortages and

price escalations. Since these metals are vital to the welfare

T17-1
of the nation's economy and security, their continued availability

at a reasonable cost and provisions for substitution, recycling and

conservation, to meet a crisis situation are national issues.

The strategic aerospace metals - chromium, cobalt, columbium,

and tantalum are contained in steels, stainless steels and superalloys that are employed in engine manufacturing. Their essential

nature requires that supplies or viable materials technology options

derived from substitution, conservation, or recycling be available

at reasonably acceptable costs. Efforts to develop these options

must begin now, since a new material can take from 5 to 10 years of

research and development efforts before qualifying for aerospace

service

.

It should be noted that the need for high performance alloy

steels, stainless steels, and superalloys requiring the strategic

aerospace metals is increasing as demands have grown for higher

durability, plus higher performance fuel efficient aircraft turbine

engines

.

Likewise, it should be pointed out that a transfer of aerospace

high temperature technology will be a major asset in the development of 'this

country's alternative energy programs including coal gasification

and liquefaction, even deep well exploitation of domestic oil

resources. It's significant that extensive tests on alloys for

these uses conducted by the Metal Properties Council have shown

that a minimum chromium content of 25% is required for long term

service

.

This adds emphasis to the strategic importance of chromium

which continues to appear more critical than the other critical

T17-2
metals, and less secure than ever before. A cutoff of oil supply

and chromium supply would ;attack this country on two fronts.

As a sidelight on this issue, I might say that in an article

in TIME m.agazine entitled, "Strategic Metals, Critical Choices,"

published last January, I was quoted as Technical Director,

American Society for Metals, that "A cutoff of our chromium supply

could be even more serious than a cutoff in our oil supply. We

do have some oil but almost no chromium."

Thus, we conclude that materials availability, either short

term during critical situations or long term due to resource

depletion or overconsumption, is of vital concern to all industries

and to this country's security. Without proper materials many

companies would be forced to close unless they made alternative

plans well in advance.

In fact, supplies of critical materials and their rising

cost present what may be the most serious challenge facing the

industrial American in the remainder of the twentieth century.

Likewise, there is a new awareness of the interdependence

between materials and energy, and further, there is the realization that materials, energy, the environment, and the economy

are strongly connected.

The pursuit of our most important national goals dictates

that we be concerned about materials availability and that we

implement an enlightened National Materials Policy which requires

the development of alternatives and contingency plans which include the technology available for substitution in the event of

a materials crisis, as well as conservation through improved

T17-3
processing and recycling. These are among the important options

we are considering at this workshop session.

To start, I would like to emphasize the importance of developing a substitution potential for critical materials, since I have

been a strong proponent of efforts to foster the substitution

initiative in testimony on the National Materials Policy Bill in

the U. S. Senate in July last year, and in the U. S. House of

Representatives shortly after the bill was introduced.

In my testinomy I proposed that the United States should

embark on an organized effort to foster and support research and

development programs that will advance the practical application

of substitution technology to reduce the impact of supply interruptions in critical metals, particularly chromium and cobalt.

Likewise, it’s evident that a plan should be developed to

document known substitution technologies and "stockpile" this

information

.

As R & D programs are developed to plug gaps and create a^w

options for substituting for critical metals, this technological

information would be added to the information stockpile.

As a spokesman for "substitution preparedness," which is

how I referred to my recommendations in the Congressional testimony,! emphasized that it is essential that appraisal and

recording of substitution procedures in specific applications be

as complete as available information allows.

Needs for additional information should be identified and

defined so that research and development projects can be assigned

to gather data required to expand capabilities in those areas

which appear to be sound and achievable with available means.

T17-4
It should be noted that leadtime is very short in an

emergency situation. Thus a stockpile of information on substitution technology is also a stockpile of time, and a valuable

yet relatively low cost supplement to the commodity stockpile.

Substitution programs should be an important part of

strategic m.aterials planning for individual manufacturing firms

as I will touch on later.

Last year I was invited to make a presentation to the

National Science Foundation, their Metallurgy and Materials

Advisory Board and Staff, on recommendations for materials

substitution research.

I would like to review these recommendations for a national

initiative on materials substitution and conservation which I

included as a part of my testimony in U. S. Senate hearings

last July.

In presentations I have made before company management groups

concerned with strategic materials planning I have encouraged the

development of substitution programs and pointed out that the

objectives of a national initiative on substitution can be applied

to internal (company) substitution R & D programs.

My recommendations for a materials substitution initiative

are summarized below:

1. Find out just how much we know about substitutes for the

most critical strategic metals, particularly chromium, cobalt,

manganese, columbium, tantalum and platinum group metals.

T17-5
2. Appraise the reliability of the information that is available on substitutes for these critical metals and determine

what research is needed to round out available data so that

the substitute materials can be used with full confidence.

3. Document known substitution technoloqies and stockpile this

information in a form that can be utilized immediately by

industry and defense in an emergency. This is "Substitution Preparedness." This information might take the form

of a Substitution Handbook.

4. Identify basic research programs needed to create new options

for substituting for these critical materials and as this

information is developed, add it to the substitution information stockpile. Avoid waiting for a crisis.

5. Structure research to have substitution as its only goal.

Research priority would be determined on basis of probability

of need ; and probability of success . (This enhances substitution preparedness.)

6. Develop ways to improve awareness, interaction, and communications in substitution technology through a program of

workshop/conferences including government, industry and

universities. Likewise, provide universities with information and encouragement needed to utilize more substitution

and resource availability information in materials selection

course

.

T17-6
7. Accept the fact that the government has justification to

assume leadership in 'supporting research to develop an

enhanced substitution potential and in sponsoring work to

gather, store, and deliver reliable information on substitutes for critical materials in a form that can be applied

immediately by defense and industry in an emergency cutoff.

8. Emphasize substitution research in the most critical areas,

particularly, chromium and cobalt, and expand research

to develop new manganese alloys on basis of long term-availability through ocean mining. Emphasize research to utilize

substitutes with wide distribution and domestic sources such

as vanadium and molybdenum.

9. Recognize that the government has an important stake in

replacements and that the nation as a whole and its security

depends upon imports of critical metals. Realize that industry is involved in solving near term problems and has

increasingly turned to application type work and that if

government leaves the task of substitution research totally

to industry it probably will not get done.

Regarding the final point, although there are good reasons

for individual business firms to underwrite work on substitutes

for metals critical to their existence, I would like to comment

briefly on the rationale for government support.

An important consideration in appraising government support

for substitution research is to realize that industry's motivation

to substitute has been principally economic — the tendency is

T17-7
not to address a critical supply situation until a material is

completely unavailable and a crisis has developed. Then, it's

likely that before anything can be done the situation would be

beyond the critical stage.

For example, as long as chromium is available and is relatively economical, as it is today, there's no incentive to substitute for it in heat treatable steels. But since substitution

appears possible in this instance, it makes good sense to research and "stockpile" information now on the production and

heat treatment of chromium-free steels for production of important engineering components. The data could be drawn on

immediately in a chromium emergency.

It should be noted that about 10% of chromium used annually

in this country goes into two grades of constructional alloy

steels, the 8600 series and 4600 series. These steels are

typically used to produce such things as gears and shafts. In

this application, chromium is both highly effective and cost

efficient

.

However, technology can be developed through research to

substitute other alloying elements for chromium. In an emergency

this would release 10% of chromium for uses where substitution

is not available, such as in jet engine alloys. This information would be equivalent to having 10% more chromium in the

stockpile available for essential uses, and should be weighed

against the cost of adding 10% chromium to the strategic

stockpile

.

T17-8
It should be noted that new tools are available today

for studying substitution and interchangeability of alloying

j elements . Computer systems provide new approaches to the design

of steels and alloys with specific properties for substitution

‘ applications.

? For example, a system known as Computer Harmonized-Applii

] cation Tailored (CHAT) alloys was employed during the nickel

i shortage a few years ago to develop an alloy gear steel without

I'i nickel to substitute for SAE8620. This substitute steel

‘

I

;i continues to be used for gears and other components in the

I

^ world's largest truck plant with economic advantages. A simi-

!' lar technique should be applicable for developing chromium-

*! free alloy steels.

' Substitution is one important approach to meeting the

' challenges of strategic critical metals. There is, of course,

l an underlying need to understand and deal with other options

j

II for conservation, including recycling, improved extraction,

r optimum utilization of material properties in design, net shape

I processing, and enhanced durability.

Processing innovations will play a major role in advancing

'J

I both substitution and conservation technology. For instance, high

I speed steels without cobalt utilizing increased quantities of

molybdenum and tungsten are being produced by hot isostatic

pressing (HIP) of powders. Such alloys cannot be produced by

, conventional melting methods because massive segregation of

; molybdenum and tungsten carbides would make the alloys unworkable.
Hot isostatic pressing will make increasingly important

contributions to conservation by reducing the amount of strategic

raw materials required to produce a component. Likewise, the

process enables the optimum utilization of alloying elements in

design

.

For example, new strength goals for nickel base superalloys

can be achieved by increasing the hardener content utilizing such

elements as aluminum, titanium, hafnium, or columbium. However,

when applied to conventionally cast ingots extensive segregation

takes place resulting in an unforgeable product. This problem

can be circumvented by employing hot isostatic pressing of powders.

Advanced materials technology has pushed the use of superalloys to temperatures close to their melting points and materials

must continue to be developed to allow the design of products for

operating more efficiently at increasingly elevated temperatures,

to meet over-all conservation goals.

A better understanding of the role of the gamma prime precipitate in relation to nickel and cobalt and other alloying elements

is crucial. This high temperature strengthener makes possible the

production of superalloys that can be used at the "highest fraction

of their melting temperatures of any material ever developed."

Further improvements are imminent, and research and development must continue to advance the technology of materials for:

production of single crystal turbine blades; for directionally

solidified eutectics, wherein aligned whiskers grow from the

eutectic phase within a ductile matrix, to produce fiber reinforced alloys of great strength and stability-.

T17-10
In other areas of progress, the use of powder metallurgy to

disperse oxide particles in gamma prime strengthened superalloys

promises to improve high temperature strength.

And rapid solidification of powder particles has demonstrated

that higher strength levels combined with better second order

properties are possible through enhanced alloying capabilities.

Regarding the latter, rapid solidification technology holds

promise for the development of materials with higher performance

as well as conservation of critical elements. Some of the

potentials that relate to critical materials, if this new technology can be moved forward, have been noted by Dr. Arden Dement,

formerly Deputy Undersecretary of Defense for Research and

Engineering (now Vice President for Technical Resources, TRW))

as follows:

1. Cobalt free, high creep strength nickel base superalloys

for turbine airfoils in high performance engines.

2. Increase in incipient melting point of nickel base superalloys by as much as 55®C.

3. Oxidation/corrosion resistant iron-aluminum alloys as

substitutes for chromium stainless steels.

4. Laser glazing to produce layers with different alloy

compositions

.

It also should be noted that RST promises to improve aluminum

and titanium alloys as well as superalloys.

Perhaps you have heard that an industry/academia workshop is

being planned by National Bureau of Standards for next July to

explore the potential for RST.

T17-11
In appraising alternate materials, certainly it must be

recognized that such research in many instances must be considered to be high risk and long range. But there is a potential

high payoff by significantly reducing the nation's dependence on

strategic materials.

An example is the intermetallic compounds, such as the

nickel and iron aluminides. The potential high temperature

strength of these materials is of interest, in fact, nickel

aluminides have the capability of competing with current nickel

base alloys. However, ways must be found to improve the mechanical

properties , particularly room temperature ductility , and NASA is

sponsoring work to better understand the fundamental deformation

mechanisms in the aluminide system.

Earlier it was mentioned that R & D should be aimed at

building on resources that are most likely to be available or

that are reasonably well distributed. (It appears that the

Soviets are givng much consideration to this.)

In this regard, manganese is of interest. It is a requirement in every ton of steel produced. Fortunately, it is more

widely distributed than chromium and cobalt; even so, more than

85% of the manganese ore is produced by only six countries, namely,

U.S.S.R., South Africa, Australia, Gabou, Brazil and India

Of future significance is that manganese nodules can be

extracted from the ocean floor and could possibly provide this

country with a reliable source for large quantities of the metal

The /American Mining Congress estimates that many billions of tons

of manganese nodules containing about 30% manganese are available

T17-12
for ocean mining from more than 300 prime mine sites — many

in the Central Pacific Areia. These nodules also contain

smaller amounts of nickel, cobalt, and copper but significantly

no chromium which again emphasizes the criticality of this metal.

While the impact of ocean mining technology is unlikely

to be significant until at least the next decade, the long

term potential for abundant supplies of manganese suggests

research support for alloy designers to develop a new austenitic

stainless alloy system which would substitute manganese and

aluminum for the strategic and expensive alloying elements,

nickel and chromium. ("An Austenitic Stainless Steel Without

Nickel and Chromium," Metal Progress April 1978.) A very limited

amount of research has been done on the Fe-Al-Mn-C compositions

and there's promise that this system should give an austenitic

alloy with good hot strength and cold work workability, while

retaining good oxidation resistance.

Successful development of this class of steels, which would

contain no nickel or chromium could have a significant impact

on the stainless steel industry in relation to raw

material needs and both cost and weight savings.

Enhanced activity is being generated in conservation of

strategic elements by recycling and reclaiming parts by

remanufacturing

.

Special challenges exist in reclaiming and refining superalloy hardware that has been in engine service due to possibility

of contamination. The likelihood of picking up a number of

contaminants from combustion products and protective coatings,

generally means that used parts cannot be recycled directly by

vacuum induction melting.

T17-13
This concern for contamination in recycled metals for

premium quality superalloys has caused a large amoung of scrap

to he eliminated as recyclable back into superallyoys . This

has resulted in superalloy scrap materials finding their way

into the world's scrap market at prices far below their intrinsic

metal values for additives in operations such as steelmaking,

ether elements such as cobalt, tantalum and tungsten are lost.

Progress is being made on the commercial front to advance

recycling technology, however, research and development work is

needed on processes to enhance cost effectiveness of recycling

critical alloys back to the quality of virgin metals.

Likewise, commercial technology is moving forward to

develop more precise methods for building up worn areas in high

temperature parts, such as jet blades, or bearing surfaces and

other types of critical inserts. Experience has shown that rebuilt

parts may last longer than original ones and the time for procurement as cut drastically. This segment of conservation through reclaiming and rebuilding shows unusual promise and research is

needed to develop improved methods. Likewise, a philosophy of

design for rebuildability should be encouraged. This means that

provisions are made in advance for replacement of parts, bearings

etc., that are subject to wear or other forms of deterioration

and may need to be rebuilt or replaced.

T17-14
Now a few main points in closing:

1. Chromium must be rated at the top of the priority list. We

must address policy and research and development tactics to

ward off a crisis with chromium. More' widely dispersed

mineral sites must be sought for. The technological search

for substitutes should be unrelenting, despite the frustration of attempts to date. The technology for recycling

chromium must be advanced. As Dr. Raymond Decker, Vice

President, INCttd., put it, in comments on chromium in his

keynote address at the International Conference on Superalloys,

"It is prudent to have such technologies on the shelf, piloted,

and ready as a contingency plan."

2. We must understand more fully the role of cobalt in superalloys vital to the aerospace industry and in other essential

products such as high speed steels.

3. We should prioritize areas for materials substitution research on basis of probability of need and probability of

success. Substitution research should be initiated on a

broad front.

4. Emphasize research to utilize metals with wide distribution

and domestic sources. Institute programs to develop the

manganese-aluminum alloys system to supplement the nickelchromium stainless steels.

5 . Advance a continuing program to alert industry of the need

to develop and implement strategic materials planning for

their products including and aggressive program on materials

substitution technology.

T17-15
6 . Improve recycling capability including the ability to

utilize a broad range of less pure revert materials and

recover minor strategic metal content..

7. Select the rapid solidication technology (RST) area for

emphasis in a vigorous and comprehensive program of

materials research and development and establish the necessary mechanisms for coordination and evaluation of these

programs

.

I am sure that many other fine ideas will evolve from the

deliberations in this important workshop.

The implications of a critical materials crisis are farreaching and extend beyond the aerospace industry. To illustrate

this I will close with one sentence from an address by Robert J.

Buckley, Chairman and President, Allegheny Ludlum Industries, Inc,

before the Economic Club of Detroit on January 1981. Mr.

Buckley's address was entitled, "Critical Materials for Inaust ry — A Predicament That Need Not Become A Ctisis," and he states;

"All of our national plans for "reindustrialization, putting

people back to work, encouraging economic growth, seeking technological breakthroughs can go for naught if America's current

predicament in strategic non-fuel materials is allowed to become

a crisis."

Granted the problem and solutions related to materials require

looking to the future, the important thing is to get started now.

If we act now to marshall, our technical resources along with

proper organization, we can avoid a predicament that could

become a crisis.

T17-16
WORKSHOP ON CRITICAL MATERIALS NEEDS OF THE

AEROSPACE INDUSTRY

J. J. deBarbadillo

INCO Research & Development Center. Inc.

T18
INCO RESEARCH & DEVELOPMENT CENTER, INC.

A UNIT OF INCO CORPORATE R & D

STERLING FOREST

SUFFERN, NY 10901

Technical Paper 1099-T-OP

February 5, 1981

WORKSHOP ON CRITICAL MATERIALS NEEDS OF THE

AEROSPACE INDUSTRY

- by -

J. J. deBarbadillo*

TO BE PRESENTED AT: National Bureau of Standards

U.S. Dept, of Commerce

February 9, 1981

TO BE PUBLISHED IN: Workshop Proceedings

The author is with the Inco Research & Development Center,

Inc., Sterling Forest, Suffern, NY 10901.

T18-1
WORKSHOP ON CRITICAL MATERIALS NEEDS

OF THE AEROSPACE INDUSTRY

RECYCLING OF SUPERALLOYS

Introduction

It is now generally recognized that the United States

is heavily dependent on imported primary metals for the manufacture of superalloys. Further, the critical importance of superalloys to military and commercial aviation and energy conversion

is apparent. This workshop reflects the concern of many people

that this dependence is undersirable, especially where it

imperils this country's capabilities of military deterrance and

encourages market manipulation for political purposes.

Obviously, there is no single solution to this problem. However,

improved recycling of superalloy scrap and recovery of metals

from waste generated in the production of these alloys must be an

important aspect of our program to ease our dependence of foreign

supplies

.

Scrap Generation and Use

Recycling of scrap is extensively practiced by superalloy producers because of the high cost and periodic scarcity of

many of the metals used in these alloys. Procedures employed to

identify, sort and clean solid scrap are well developed and

widely practiced by commercial scrap processors (1). The quantity of scrap which is consumed by this industry is restricted by

stringent product specifications, limited refining capabilities

of alloy producers and by the number of different chemically

complex alloys in commercial use. Because of these limitations.

T18-2
One of the major findings of the survey was that the

141.2 thousand metric tons (kt) of metal units consumed by the

superalloy industry in 1976 consisted of 42% home scrap, 17%

purchased scrap and 41% primary metal. Individual segments of

the industry varied from this average raw materials mix, but all

producers used some scrap. An estimated 133.7 kt of superalloy

scrap, including obsolete scrap, was generated in 1976. This

material was comprised of 72% solids, 14% turnings, 7% grindings,

1% oxidized material, and 6% in various physical forms which was

lost or discarded. Of the 125.7 kt of material that was

recycled, 6% was remelted for use in superalloys, 27% was downgraded for use in stainless and low alloy steel or cast iron, and

about 7% was exported. The report assumed that the remelted and

exported scrap was already being efficiently used. It thus concluded that programs to improve recycling efficiency should be

aimed at the 41.7 kt of superalloy scrap that was downgraded or

lost. This figure includes material from all scrap classifications although the bulk of it is mixed alloy turnings and

grindings and oxidized or otherwise contaminated material.

Technological Trends in Superalloy Scrap Recycling

Scrap or secondary alloys made from recycled scrap are

desirable raw materials for alloy melters because they are

generally less costly than primary metals when supply and demand

are in balance. However, to be useful, scrap must be free from

impurities such as lead which very detrimental to superalloy

properties. Nonmetallic or organic matter often associated with

lower grade forms of scrap cannot be tolerated by alloy producers

T18-3
and some physical forms such as turnings and grindings are very

difficult to handle. Finallyr very complex alloys such as IN-100

or B-1900 which contain eight or more major alloying constituents

can only be recycled back into the same alloy. All of these

factors combine to limit the amount of scrap which can be

directly reused. However r recent technological trends have

increased the use of scrap and there are prospects for significant further improvements.

The superalloy industry has traditionally required the

highest quality raw materials because its melting furnaces had

little refining capability. For example, costly pure chromium

metal or low-carbon f errochromium was used instead of charge

chromium for most alloys. The adoption of the Argon-Oxygen

Decarburization process (AOD) in the 1970 *s provided wrought

superalloy producers with the capability of removing many common

impurities. This and related processes have had a significant

impact on the raw materials used by the industry. Much lower

grade forms of scrap and primary metals can now be used to produce wrought superalloys on a high volume basis. The use of the

AOD process is now increasing among master alloy producers who

supply the investment casting foundries. Newer systems such as

VOD and plasma-arc refining offer additional refining capability

needed to produce high quality superalloys. In a similar vein, a

recent paper by Woulds (4) described the use of oxygen lancing in

an electric arc furnace followed by refining in a vacuum induction furnace to produce a high quality master alloy ingot of B1900 alloy directly from scrapped engine blades. Testing of

T18-4
investment cast blades produced from this material indicated that

they were essentially equivalent to blades produced from virgin

raw materials. Although more work needs to be done in this area

to fully demonstrate reproducibility, this development should go

a long way toward removing limitations on the use of recycled

material for cast superalloys.

Improved Recovery of Metals from Low Grade Scrap and Waste

Until recently most low grade material was returned to

the primary metals refinery (usually the nickel smelter for

nickel base superalloys) or was melted by a secondary refiner to

produce a nickel or nickel-chromium product for sale to the steel

industry. Refractory metals are generally lost into the slag and

cobalt is lost by dilution in steel where it is generally an

ineffective alloying element. There are other methods of

utilizing this material, some not involving an intermediate

melting process; however, the effect is the same: low recovery

of metals other than nickel.

Although recycling of these low grade materials is

currently unsatisfactory, there has been a significant amount

research interest in the problem and in some cases efficient

recovery is now commercially achieved. The principal limitations

have been the relatively small quantities of material available

at a given location, the complexity of recovery systems and

frequently unfavorable economics.

At one time super alloy turnings were downgraded for use

in steel because they were contaminated and alloy types were

mixed. Now manufacturers are much more careful about segregating

T18-5
alloy turnings as they are generated. Scrap processers have

become skillful at identifying alloy types. Pedigree turnings

are now routinely degreased, fragmented and compressed for

I remelting by superalloy producers. Losses of refractory elements

have been significantly reduced.

Considerable attention is now being paid to the

recovery of alloy grindings which are also generated by component

manufacturers. Grindings are produced in smaller quantities than

turnings and are contaminated with oil, oxygen or grinding wheel

debris. Because of their lower value, less care is often exercised in their collection so that extraneous metallic debris is

often present. Recently, a commercial system for the recovery of

oily stainless steel and tool steel grindings was commissioned

(5). The extension of this process to treat superalloy grindings

would be an important advance in recycling technology. It is

also likely that processes for treating dry grindings using

advanced mineral separation and agglomeration techniques will be

developed within the next few years. It is reasonable to expect

' that, with increased care in collection by grindings by scrap

generators and improved treatment capabilites by scrap

processers, efficiency of recovery of metals from grindings will

I approach that of turnings.

In the future, recovery from materials now considered

as wastes will also take place. Large quantities of material

such as electrochemical machining sludge, electrical discharge

machining sludge, pickle liquor sludge, metallif errous slag,

furnace dust and mill scale are generated (6) . Nickel, chromium

T18-6
and cobalt are recovered directly from some of these materials by

large producers of wrought alloys such as Huntington Alloys, Inc.

and Cabot Corp. Some furnace dust and mill scale is treated along

with stainless steel mill waste by Inmetco(7) and some is

recycled to primary refining facilities.

The above recycling methods either result in recovery

of all of the elements contained in the scrap directly or as a

master alloy, or some elements are deliberately removed and lost.

It has long been recognized that optimum recycling of complex

superalloys would require separation of the individual elements.

The currently downgraded scrap and some of the waste could form

the pool of material from which a separation plant feed could be

drawn. The Bureau of Mines has sponsored research on separation

processes (8-11) . Laboratory scale work, which has been conducted

in Japan, Europe and the Soviet Union, was reviewed in reference

(12) . Although complete separation of elements is technically

feasible and viewed by many as the ultimate solution to metals

recovery, no process has ever reached the commerical stage. The

reasons for this are the complexity and hence high capital cost

of a recovery plant, the volatility of scrap prices and the

difficulty in acquiring sufficient feed for a plant scaled for

optimum efficiency. It is quite possible that the materials

supply situation will make some of these separation processes

economically viable, especially if they are operated by large

primary metal refiners with capabilities for reducing capital

investment by utilizing existing refining capacity for part of

the recovery process. Under normal market conditions, a

T18-7
conunercial process could be in operation in about 5 years. This

time frame could be compressed through government stimulation in

a time of materials crisis.

Industry Trends Which Will Affect Recycling

There have been a number of estimates of superalloy

production for the remainder of this century. These estimates

have a wide variation because of uncertainty over major segments

of the superalloy consuming market such as military spending and

energy conversion policies. A 5% annual growth rate is a median

estimate. However, the volume of scrap generated by this

industry will not grow at this rate and may actually decline

because of significant technological trends.

Component manufacturers frequently use a term buy-tofly (BF) ratio as a direct indicator of the amount of scrap

generated in the production of a given part. BF ratios of 5 (80%

scrap) are not uncommon for complex parts machined from forgings

of ingot cast alloy. For the past decade the industry has been

adopting processes which have had the effect of reducing the BF

ratio by 50% or more. The steady replacement of forgings with

investment castings and the introduction of hot isostatic

pressing and powder metallurgy have promoted this trend. Other

manufacturing developments such as powder rolling and continuous

casting may provide future improvements in efficiency. The ultimate result of this trend is to reduce the availability of the

preferred home and prompt industrial scrap. The proportion and

absolute quantity of obsolete scrap will increase so development

efforts should be aimed at more efficient utilization of that

material

T18-8
Another significant trend in the gas turbine industry

is the shift toward alloys and processing techniques which

require higher purity raw materials. This is manifest in the

increasing use of investment cast alloys, directionally solidified and monocrystal alloys, and powder metallurgy alloys. Very

little obsolete scrap is now used by that industry. In view of

the increasing proportion of this type of scrap, the recent

progress in refining (4), referred to previously, is noteworthy.

Although castings and powder metallurgy parts are replacing

wrought parts in some aerospace applications, the use of wrought

superalloys in energy conversion is increasing. This segment of

the industry has much more flexibility in its use of raw

materials and can accommodate more obsolete scrap than it

currently uses. One limitation is that scrap from very complex

alloys may contain valuable elements which are undesirable for

some wrought alloys. Maximum recycling efficiency would served

by treating such alloys by an element separation process.

Recently it has become fashionable to talk about

"designing alloys and parts for increased recyclability".

Although it may be possible to apply this concept in some industries, it is unlikely to have much success in the aerospace

industry. In fact, several trends in the industry are leading it

toward reduced alloy recyclability. The new alloys are less

tolerant of impurities and more complex in terms of the number of

contained elements. As performance requirements increase, engine

components are progressively upgraded by adding more complex and

hence more difficult to recycle alloys. In response to the high

T18-9
cost and scarcity of some raw materials r designers are making

more and more use of components fabricated from different alloys

by brazing or resistance welding. Many components are coated and

cladding technology is seeing a revival. The concept: "only use

the alloy where it's needed" makes good sense to many designers

and they are pursuing it vigorously. However r this current

design trend will have important adverse consequences for the

processor of obsolete scrap as the end of the century approaches.

It is possible that many complex components will have to be

treated by an element separation process if they are to be

efficiently recycled.

Critical Materials Workshop Focus

An examination of current superalloy recycling prac*

tices shows that, of the contained elements, nickel is by far the

most efficiently recycled. Scrap which is downgraded is usually

purchased for its nickel content and recovery of this element is

high. Furthermore, primary nickel suitable for use in super*

alloys is readily available from secure sources. Consequently,

nickel lost to the industry through downgrading is not a major

concern.

Although chromium used for many superalloys is expen*

sive, this is due to production cost and capacity limitations and

not due to the availability of chromium ore. Super alloy consump*

tion of chromium is very small relative to total chromium

consumption. In a crisis, the vast pool of stainless steel scrap

could be drawn upon as a source of chromium for preferred use in

superalloys. Production of chromium metal from stainless steel

T18-10
scrap would require adapting existing electrochemical production

processes to a new feed. Chromium of acceptable quality from

this source could probably be commercially available within a

year.

The elements in superalloys which are of most concern

are cobalt and the refractory metals tungsten, tantalum and

columbium. All are largely imported and costly. These elements

are essentially lost when scrap is downgraded, either by inclusion into the slag or by dilution. Furthermore, in the case of

the refractory metals, the form used in superalloys is considerably more costly than the form used for specialty steel.

Accordingly, from the standpoint of the contribution that

improved recycling efficiency could make to metals availability,

these four metals are suggested for study.

T18-11
References

1. Cremisio, R. S. and L. M. Wasserman; "Superalloy Scrap

Processing and Trace Element Considerations", Proceedings

of 1977 Vacuum MetallCirgy Conference, Science Press,

Princeton, NJ , 1977, pp. 353-388.

2. Curwick, L. R., W. A. Petersen and H. V, Makar; "Availability of Critical Scrap Metals Containing Chromium in the

United States - Superalloys and Cast Heat and Corrosion

Resistant Alloys", Bureau of Mines Information Circular No.

8821, 1980, 551 p.

3. Curwick, L. R. , W. A. Petersen and J. J. deBarbadillo

;

"Superalloy Scrap - Generation and Recycling", Proceedings

of the Fourth International Conference on Superalloys,

American Society for Metals, Metals Park, OH, 1980, pp.

21-30.

4. Woulds, M. J.; "Recycling of Engine Serviced Superalloys",

Ibid. pp. 31-41.

5. Vellella, V. A.; "Thermal DeOiling and Hot Briquetting of

Stainless Steel and Tool Steel Grindings", presented at

1980 Electric Furnace Conference, to be published in

Conference Proceedings in 1981.

6. Dressel, L. M. , L. C. George, and M. M. Fine, "Chromium and

Nickel Wastes - A Survey and Appraisal of Recycling

Technology", Proceedings of the Fifth Mineral Waste

Utilization Symposium, IIT Research Inst., Chicago, IL,

1976, pp 262-270.

T18-12
7. Pargeter , J. K. and H. J. Weil? "The Inmetco Process for

Recovery of Metals from Steelmaking Wastes", Proceedings of

1st Process Technology Conference, Iron and Steel Society,

AIME, 1980, pp. 172-177.

8. Cochran, A. A. and L. C. George? "Recovery of Metals from

Some Industrial Solution, Sludge, and Dust Wastes", presented at 80th National Meeting of AIChE, Sept. 7-10, 1975.

9. Brooks, P. T., G. M. Potter and D. A. Martin? "Chemical

Reclaiming of Superalloy Scrap", Bureau of Mines Report of

Investigation 7316, 1969, 28 p.

10. deBarbadillo , J. J., J. K. Pargeter and H. V. Makar? "Process for Recovering Chromium and Other Metals from Superalloy Scrap", Final Report, U.S. Bureau of Mines Contract

No. J0188056, April 15, 1980.

11. Kusik, C. L., K. Parameswaran , D. J. Kinneberg and H. V.

Makar? "Pyrometallurgical Recovery of Chromium from Scrap

Metals", Final Report, U.S. Bureau of Mines Contract No.

J0188170, February, 1980.

12. deBarbadillo, J. J., F. J. Hennion and J. K. Pargeter?

"Matte Separation Process for Recovery of Metals from

Superalloy Scrap", Proceedings of Conference on Extractive

Metallurgy of Refractory Metals, AIME, to be published in

1981.

T18-13
HATERIALS CRITICALITY IN JET ENGINES

William A. Owczarski

Pratt & Whitney Aircraft Group

T19
THE HEART OF MODERN AIRCRAFT IS ITS JET ENGINE (FIG. 1). A JET ENGINE

IS MADE OF MANY SOPHISTICATED METAL ALLOYS^ CHOSEN FOR LIGHTNESS^ HEAT

RESISTANCE^ STRENGTH AND DURABILITY. TITANIUM ALLOYS AND HEAT-RESISTANT

"superalloys" constitute more than 85% OF THE engine's weight, these

TWO CLASSES OF ENGINEERED ALLOYS ARE INDISPENSABLE TO THE PRODUCTION OF

A JET ENGINE WITH THE POWER^ DURABILITY AND EFFICIENCY REQUIRED BY OUR

nation's military and commercial aircraft, these alloys are formulated

FROM A VARIETY OF BASIC METALLIC INGREDIENTS. TO BUILD AN FlOO ENGINE

(fig. 2)j which powers our nation's front line defense aircraft^ the

F-15 AND F-16^ REQUIRES AN INPUT WEIGHT OF 5204 LBS. OF NICKEL^ 1656 LBS.

OF CHROMIUM^ 910 LBS. OF COBALT^ 5366 LBS OF TITANIUM^ 720 LBS. OF

ALUMINUM^ 3 LBS. OF TANTALUM^ AND 171 LBS. OF COLUMBIUM. EACH OF THESE

METALS IS IMPORTED FROM SOME OVERSEAS SOURCE. SOME FOREIGN SOURCES LIKE

CANADA OR AUSTRALIA ARE SECURE^ STABLE AND FRIENDLY; OTHERS SUCH AS THE

SOVIET UNION OR ZAIRE ARE LESS RELIABLE FOR DIFFERENT REASONS. WE ALL

KNOW THAT IN 1978 CIVIL WAR ERUPTED IN ZAIRE^ CAUSING THE COBALT MINES

TO CLOSE. MORE THAN 50% OF THE WORLD'S COBALT COMES FROM ZAIRE AND THE

DISRUPTION IN PRODUCTION CAUSED WORLD-WIDE SHORTAGES. BY 1978 COBALT

WAS ALLOCATED TO USERS AT 70% OF 1977 CONSUMPTION AND WELL BELOW ACTUAL

REQUIREMENTS. THE SHORTAGES CAUSED PRICE JUMPS FROM $6.85/lB. TO ABOUT

$50. 00/lb. in the spot market and caused large increases in lead time

FOR obtaining BASIC MATERIALS TO PRODUCE ENGINE PARTS. TODAY> THE MINES

ARE PRODUCING AGAIN BUT ECONOMIC PROBLEMS BESIEGE ZAIRE AND THE RISK OF

DISRUPTION REMAINS.

TO ILLUSTRATE THE NATURE OF OUR CONCERN^ LET'S EXAMINE THE IMPACT OF

A LONG-TERM COBALT SUPPLY CUT-OFF ON U.S. AIRLINES BY LOOKING AT ONE

PART IN ONE ENGINE TYPE. IN 1979^ SOME 83% OF THE COMMERCIAL FLIGHTS

T19-1
I IN THE UNITED STATES WERE IN AIRCRAFT EQUIPPED WITH OUR JT8D ENGINE. ON

^ THE AVERAGE^ THESE ENGINES OPERATE ABOUT 2^500 HOURS PER YEAR AND THE

FIRST TURBINE VANE (FIG. 3 )

j

WHICH IS A 60% COBALT ALLOY^ HAS A USEFUL

LIFE OF lOyOOO HOURS BEFORE IT IS REPLACED. THE PIPELINE FOR REPLACEMENT

PARTS IS ABOUT TWELVE MONTHS LONG FROM OUR MELTING SUPPLIERS TO DELIVERY

OF SPARE VANES TO THE AIRLINES. FROM THE TIME COBALT SHOULD BE CUT OFF

FROM OUR MELTING SUPPLIERS^ WE COULD SUPPLY SPARE PARTS TO OUR AIRLINE

CUSTOMERS FOR ONLY A YEAR. AT THE END OF THAT TIME^ THE JT8D-POWERED

FLEET WOULD START TO BE GROUNDED AT THE RATE OF ABOUT 25% PER YEAR.

ALTHOUGH THE ILLUSTRATION HAS BEEN LIMITED TO ONLY JT8D PARTS (FIG. , ALL ENGINES^ FROM ALL MANUFACTURERS^ USE COBALT-CONTAINING ALLOYS FOR

FIRST TURBINE VANES, IN THE REAL CASE^ TO AVERT GROUNDINGS^ LESS SATISFACTORY ALTERNATIVE MATERIALS WOULD BE USED> BUT SIGNIFICANT PENALTIES

WOULD RESULT. THE IMPACT ON OUR DEFENSE AND COMMERCIAL AVIATION SYSTEMS

WOULD BE EXTREMELY SERIOUS.

CHROMIUM^ WHICH IS ALSO USED IN TURBINE VANES^ TURBINE BLADES AND

TURBINE DISKS^ SHAFTS^ BEARINGS^ CASES^ SEALS AND COATINGS^ IS ANOTHER

METAL IMPORTED FROM SOUTH AFRICA AND THE SOVIET UNION. THE UNITED

STATES IS 90% IMPORT-DEPENDENT ON CHROMIUM^ AND THE REMAINDER COMES

FROM RECYCLED SCRAP> NOT DOMESTIC MINERAL SOURCES. JET ENGINE NEEDS

FOR CHROMIUM CANNOT BE SATISFIED FROM COMMERCIAL SCRAP BECAUSE OF

PURITY REQUIREMENTS. A STUDY BY THE NATIONAL MATERIALS ADVISORY BOARD

IN 1978 STATED; "while (chromium) is an important ingredient in many

COMMODITIES^ IT IS IRREPLACEABLE IN STAINLESS STEELS AND HIGH TEMPERATURET19-2
RESISTING SUPERALLOYSy TWO CLASSES OF MATERIALS THAT ARE VITAL TO THE

TECHNOLOGICAL WELL-BEING OF THE NATION. CURRENTLY THERE IS tlH

CHROMIUM-FREE SUBSTITUTES THAT CAN BE USED IN THESE CRITICAL APPLI CATIONS^

NOR ARE ANY SUCH SUBSTITUTES LIKELY TO BE DEVELOPED IN THE FORESEEABLE

FUTURE." ALTHOUGH THE CURRENT SUPPLY SITUATION IS STABLE^ THERE REMAINS

A RISK TO BE ADDRESSED FOR THE LONG-TERM FUTURE.

TITANIUM ALLOYS ARE USED FOR NEARLY 30% OF THE ENGINE BY WEIGHT IN FAN

AND COMPRESSOR BLADES^ DISKS AND CASES. TITANIUM COMPONENTS ARE ONE-THIRD

LIGHTER THAN EQUIVALENT STEEL PARTS AND MAKE POSSIBLE THE WEIGHT ADVANTAGE

WHICH GIVES THE ENGINE AND AIRCRAFT FUEL EFFICIENCY AND SUPERIOR PERFORMANCE. TITANIUM SHORTAGES OCCURRED IN 1979 AND 1980 ^ NOT BECAUSE OF

RAW MATERIAL SUPPLY INTERRUPTIONS FROM AUSTRALIA^ WHERE 85% OF THE WORLD'S

RUTILE IS^ BUT BECAUSE OF DOMESTIC AND WORLD SPONGE-MAKING CAPACITY. SPONGE

IS THE INITIAL METALLIC FORM OF TITANIUM WHEN IT IS REFINED FROM THE

RUTILE ORE. THE SPONGE SHORTAGE WAS INTENSIFIED WHEN THE SOVIET UNIONy

A MAJOR SUPPLIER^ CUT ITS EXPORTS TO THE U.S. SIGNIFICANTLY.

THE OVERALL LIST OF MATERIALS DESCRIBED EARLIER FOR THE FlOO ARE USED

IN BROADLY SIMILAR QUANTITIES IN ALL JET ENGINES (fIG. 5 ). BUT BASED

ON CRITICALNESS TO PRODUCT^ RISK FACTORS AND ACTIONS WHICH CAN BE TAKEN^

WE BELIEVE THAT COBALT^ CHROMIUM AND TITANIUM ARE MATERIALS WHICH DRAW

THE FOCUS OF ATTENTION AT THE DEPARTMENT OF COMMERCE IN THIS STUDY

REQUIRED BY THE NATIONAL MATERIALS AND MINERALS POLICY^ RESEARCH AND

DEVELOPMENT ACT OF 1980 .

ACTIONS HAVE ALREADY BEEN TAKEN AT PRATT & WHITNEY AIRCRAFT TO ADDRESS

THE CRITICAL MATERIALS ISSUES. SUBSTITUTION (FIG. 6) OF ONE ALLOY BY

Tl 9-3
ANOTHER AVAILABLE ALLOY HAS BEEN ACCOMPLISHED WHERE POSSIBLE TO REDUCE

CRITICAL MATERIAL USE. ALLOY CHANGES IN ONE MILITARY ENGINE VANE RESULTED

IN A SAVINGS OF 65^000 LBS. OF COBALT IN 1980. DISK ALLOYS ARE BEING

CERTIFIED FOR USE IN COMMERCIAL ENGINES WHICH WILL RESULT IN FURTHER

SAVINGS. HOWEVER^ THESE ARE THE EASY SUBSTITUTIONS WHICH HAVE BEEN

IDENTIFIED^ AND ALTHOUGH IMPLEMENTATION IS COSTLY^ THEY ARE BEING PURSUED.

FURTHER PROGRESS TOWARD SUBSTITUTION WILL COME MORE GRUDGINGLY^ INVOLVING

HARD DECISIONS ON TRADE-OFFS IN PERFORMANCE OR IN FIELD MAINTAINABILITY.

BEYOND THE USE OF AVAILABLE MATERIALS THERE IS THE OPPORTUNITY FOR NEW

MATERIALS YET TO BE DISCOVERED. ONE SUCH RESEARCH EFFORT IS BEING FUNDED

BY THE DEFENSE ADVANCED RESEARCH PROJECTS AGENCY (DARPA) AND THE AIR

FORCE IS FOSTERING RAPID SOLIDIFICATION RATE (RSR) POWDER TECHNOLOGY^

TO SEEK NEW ALLOYS WHICH CAN PERFORM WITH REDUCED CRITICAL METAL CONTENT.

CONSERVATION EFFORTS ARE ALSO BEING IMPLEMENTED IN THE FORM OF INCREASED

EMPHASIS ON MATERIAL RECYCLING. IN ONE CASEy THE CHIPS FROM MACHINING

A TURBINE DISK ALLOY WITH HIGH COBALT AND CHROMIUM CONTENT ARE COLLECTED^

AND AFTER CLEANING RETURNED TO THE MELTERS TO MAKE THE ALLOY FOR NEW

DISKS. WE HAVE REACHED A POINT WHERE UP TO 20% OF THIS DISK MATERIAL

USED CONSISTS OF THE RECYCLED MATERIAL. EMPHASIS ON NET-SHAPE MANUFACTURING TECHNOLOGY IS ANOTHER SOURCE OF CONSERVATION. WHEN A PART

FORGING CAN BE MADE CLOSER TO NET-SHAPE^ LESS INPUT MATERIAL IS REQUIRED.

USE OF ADVANCED TECHNOLOGIES SUCH AS GATORIZING^^ AN ISOTHERMAL FORGING

PROCESS^ ALLOWS REDUCED FORGING ENVELOPES. A PROGRAM IS IN PROCESS TO

REDUCE THE INPUT WEIGHT OF NINE KEY FlOO PARTS FROM 1200 TO 600 POUNDS

BY THIS PROCESS. MORE WORK IS NEEDED AND WILL CONTINUE^ BUT THESE EFFORTS

DO NOT ELIMINATE THE NEED FOR CRITICAL MATERIALS; THEY JUST REDUCE THEM.

T19-4
THE CRITICAL MATERIALS PROBLEM IS MULTI-FACETED AND WILL REQUIRE A

VARIETY OF SOLUTIONS. THREE SPECIFIC ACTIONS WHICH ARE NEEDED WILL

REQUIRE GOVERNMENT^ PRODUCER AND CONSUMER COMMITMENT AND COOPERATION

(fig. 7). THESE are: (1) INCREASE DOMESTIC SUPPLIES OF CRITICAL

MATERIALS; (2) IMPROVE THE USE OF OUR NATIONAL STOCKPILE; AND> C3) PROMOTE AND SUPPORT ADD I nCNAt- CONSERVATION.

WHILE THERE HAS BEEN SOME RECENT PROGRESS IN RECOGNIZING THAT MULTIPLE

USE OF THE 760 MILLION ACRES OF FEDERAL LANDS IS NECESSARY^ FURTHER

ENCOURAGEMENT IS NEEDED TO SEEK^ DEVELOP AND PRODUCE DOMESTIC SOURCES

OF CRITICAL MATERIALS. TKE COBALT^ CHROMIUM AND NICKEL DEPOSITS IN

IDAHO AND CALIFORNIA ARE EXAMPLES OF POTENTIAL DOMESTIC RESOURCES THAT

CAN BE DEVELOPED WHILE RECOGNIZING THE NEED TO PRESERVE THE NATURAL BEAUTY

OF THE WILDERNESS IN WHICH THEY EXIST. THANKS TO THE IDAHO WILDERNESS

BILL^ THE MINERALS IN THE BLACKBIRD MINE CAN PROVIDE MUCH NEEDED COBALT

METAL IN THE NEAR FUTURE. IT MAY ALSO BE NECESSARY IN THE CONTEXT OF A

MATERIALS INSURANCE POLICY TO PROVIDE FINANCIAL INCENTIVES FOR DOMESTIC

PRODUCTION. HIGHER PRODUCTION COSTS OF LOW GRADE ORES IN THIS COUNTRY^

COUPLED WITH THE ADDITIONAL COSTS OF ENVIRONMENTAL OR REGULATORY

RESTRICTIONS^ MAY HINDER THE NORMAL ECONOMIC DEVELOPMENT PROCESS OF

DOMESTIC MINES. SOME FORM OF TAX AID^ DEPLETION ALLOWANCE OR GOVERNMENT

PRICE SUPPORT COULD BE NEEDED TO PERMIT DEVELOPMENT OF AN ECONOMICALLY"

MARGINAL BUT BADLY-NEEDED SOURCE.

THE TECHNOLOGY FOR MINERAL BENEFICIATION SHOULD RECEIVE FEDERAL SUPPORT

AND STIMULATION IN THE FORM OF RESEARCH AT BUREAU OF MINES^ AT UNIVERSITIES

OR OTHER RESEARCH INSTITUTIONS TO FIND WAYS TO DISCOVER AND PRODUCE MINERALS

T19-5
NOT PRESENTLY ADAPTABLE TO JET ENGINE PRODUCTION. FINALLY^ THE

LONGER TERM FUTURE MAY FIND THAT MAJOR MINERAL RESOURCES WILL COME

FROM THE SEA. THE CURRENT LAW OF THE SEA TREATY APPEARS TO WORK

AGAINST THE KIND OF STRONG GOVERNMENT SUPPORT NECESSARY TO ESTABLISH

AN AMERICAN TECHNOLOGY AND SEA MINING INDUSTRY WITH GUARANTEED ACCESS

TO THOSE MINERALS WHICH THE OCEAN FLOORS CAN PRODUCE.

NEXT TO INCREASED DOMESTIC SUPPLY^ THE USE OF THE NATIONAL STOCKPILE

CAN BE THE BEST GUARDIAN AGAINST FUTURE TEMPORARY SUPPLY INTERRUPTIONS.

AT LEAST FOR SHORT'TERM EMERGENCIES^ OUR STOCKPILE CAN PROVIDE THE MATERIALS

TO KEEP GOING. BUT THE PRESENT STATE OF THE STOCKPILE IS INADEQUATE IN

QUANTITY AND PROBABLY IN QUALITY. THE STATIC NATURE OF THE STOCKPILE

SUGGESTS THAT THE SPECIFICATIONS OF TODAY MIGHT NOT BE MET BY RAW

MATERIALS PUT INTO STOCKPILE 20, 30 , OR ^0 YEARS AGO. THE EXISTING

STOCKPILE MUST BE INVENTORIED FOR QUALITY^ RESUPPLIED WHERE NEEDED AND

THEN KEPT DYNAMIC TO AVOID FURTHER OBSOLESCENCE. THE EXCLUSIVE USE OF

THE STOCKPILE AS A DEFENSE STOCKPILE MAKES IT RELATIVELY USELESS IN

TIMES WHEN WE ARE NOT AT WAR. IT WOULD BE FAR MORE EFFECTIVE IF ITS

USE COULD BE CONSIDERED FOR ECONOMIC EMERGENCIES AS WELL/ SUCH AS WOULD

HAPPEN IF AFRICAN COBALT OR CHROMIUM WERE NOT AVAILABLE. FURTHERMORE/

IF NATURAL DISASTERS PREVENTED PRODUCTION OR SHIPMENT OF A CRITICAL

MATERIAL/ THE STOCKPILE SHOULD BE AVAILABLE TO AVOID ECONOMIC DISRUPTION WHICH COULD DAMAGE OUR INDUSTRIAL BASE. RECENT TESTIMONY BY

GENERAL ALTON D, SLAY/ COMMANDER/ AIR FORCE SYSTEMS COMMAND/ WARNS OF AN

ALREADY THIN DEFENSE INDUSTRIAL BASE AND "SPRINT" CAPABILITY. THE

STOCKPILE CAN ALSO BE USED TO HELP STIMULATE SOUND CAPITAL INVESTMENT

T19-6
IN CRITICAL MATERIALS-PRODUCING INDUSTRIES BY BUYING TO FILL THE STOCKPILE DURING THE VALLEYS OF DEMAND AND THEN SUPPLYING DURING THE PEAK

"crunch." IT MIGHT BE USED TO STABILIZE SEGMENTS OF INDUSTRY LIKE THAT

OF TITANIUM SPONGE PRODUCTION WHICH HAVE BEEN RELUCTANT TO ADD CAPACITY

DUE TO THE CYCLIC HISTORY OF THE USE OF TITANIUM IN OUR COUNTRY,

THE THIRD ELEMENT^ CONSERVATION^ HAS NOT BEEN EXHAUSTED AND COULD BE

FURTHER STIMULATED BY GOVERNMENT RESEARCH AND DEVELOPMENT SUPPORT THROUGH

AGENCIES LIKE THE DEPARTMENT OF DEFENSE^ NATIONAL AERONAUTICS AND SPACE

ADMINISTRATION^ DEFENSE ADVANCED RESEARCH PROJECTS AGENCY^ DEPARTMENT

OF ENERGY^ AND NATIONAL SCIENCE FOUNDATION. SUPPORT OF NEW KNOWLEDGEBUILDING STUDIES CAN HELP INDUSTRY UNDERSTAND WHY MATERIALS HAVE THE

PROPERTIES THEY DO AND LEAD TO DEVELOPMENT OF NEW MATERIALS AND METHODS

FOR MANUFACTURING THEM.

CONCERTED ACTION TO SOLVE OUR NATIONAL MATERIAL CRISIS IS LONG OVERDUE.

PRATT & WHITNEY AIRCRAFT PLANS TO CONTINUE TO DO WHAT IT CAN AND IS

PLEASED TO CONTRIBUTE TO THIS CASE STUDY. ONE CANNOT PROVIDE DETAILS

IN THE TIME THIS TALK ALLOWS^ BUT WE WILL BE AVAILABLE AND ANXIOUS TO

EXPAND ON THESE BRIEF COMMENTS DESCRIBING THE PROBLEM AND ITS SOLUTIONS

AT ANY TIME.

THANK YOU FOR THE OPPORTUNITY TO PARTICIPATE.

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COBALT AVAILABILITY AND SUPERALLOYS

and

NASA'S ACTIVITIES IN THE CONSERVATION OF STRATEGIC AEROSPACE

MATERIALS

J. K. Tien

Columbia University

T20
Cobalt Availability and Superalloys

J. K. Tien, T. E. Howson, G. L. Chen, and X. S. Xie

Henry Krumb School of Mines

Columbia University

New York, New York

Reprinted from JOURNAL OF METALS, VoL 32. No. 10, October. 1980, p. 12-20

T20-1
Cobalt Availability and Superalloys

J. K. Tien, T. E. Howson, G. L. Chen, and X. S. Xie

Henry Krumb School of Mines

Columbia University

New York, New York

SUMMARY

The greatest use of cobalt is in nickel-base superalloys,

which are widely applied in such critical high-temperature

environments as turbines. Reserves of cobalt ores are diminishing rapidly in the face of accelerating world con- sumption; furthermore, the greatest reserves are in politically unstable areas, largely in Africa. In light of these serious

factors, the occurrence, consumption patterns, and avail- ability of cobalt have been reviewed. The scanty literature dealing with the role of cobalt in superalloys has also been

critically reviewed and is discussed. Using data reported

in the literature, and previously published analytical techniques, the effects of cobalt content on superalloy microstructural characteristics and mechanical properties have

been calculated, leading to the strong suggestion that co- balt in superalloys may not be as crucial as generally believed, and could possibly be reduced significantly.

INTRODUCTION

The current workhorse materials in aircraft, land-based

or marine turbines, and other high-temperature, energy

production devices are the nickel-base superalloys. Besides

nickel, these alloys can contain considerable amounts of cobalt, chromium, aluminum, titanium, molybdenum, tungsten, tantalum, columbium, and vanadium, along with

smaller amounts of such elements as carbon, boron, zir- conium, and hafnium. Together, these elements accord

acceptable mechanical properties in such Dantean environ- ments as the inside of a gas turbine.* Unfortunately, unless considerable resources can be converted into reserves, many of the elements in superalloys

will be economically depleted by the first quarter of the next century at the current increasing rates of use.^-^ Of more im- mediate concern is that the United States already has no

appreciable cobalt, chromium, and nickel reserves of its own.

In addition, it imports much of its aluminum, tantalum,

and tungsten.^ Accordingly, the United States, by far the major producer and user of superalloys, is at the mercy of the vagaries of international economics, politics, and stability. This situation is perhaps serious in the case of cobalt. Of the strategic elements in superalloys, cobalt is unique

in that its single largest use is in superalloys. ‘ ® Superalloys, however, are not major consumers of chromium,

tungsten, or even nickel.* ® Much of the world’s cobalt supply comes from Zaire;* ® the current and past instability of cobalt supply and cost is a direct consequence of production

instabilities caused by political instabilities in Zaire and its neighbors. Cobalt prices were stable at about $6/ lb through

the 1970s, until the mine production disruption in Zaire

resulted in a current producer price of about $25/ lb, and in even higher dealer prices.

Accordingly, it would be of common, long-term interest

to reduce or substitute for cobalt in superalloys without af- fecting the performance requirements. First, we will review

the cobalt use, reserves, and resource situation; then we will review, compact, and extend the knowledge base for the role of cobalt in superalloys. We will show that the technical

necessity for cobalt levels of SIO wt.*7i in superalloys, es- pecially in nickel-base superalloys, has never been firmly

demonstrated and that it would be prudent to understand

further the role, if any, of cobalt in nickel-base superalloys.

Table I: Estimated 1979 World Cobalt Mine Production and

Cobalt Reserves and Resources,® * Million Pounds*

Mine

Production Reserves Resources North America

United States 0 0 1,700 Canada 2.0 66 546 Cuba 3.6 240 2,340 Europe

USSR 4.4 460 500 Finland 3.0 40 50 Africa

Zaire 29.0 1,000 1,500 Zambia 6.0 250 770 Morocco 4.0 28 30 Botswana 0.4 58 70 Oceania

New Caledonia 9.2 600 850

Australia 7.6 110 650

Philippines 2.4 420 450 World Total 71.6 3,272 9,456 Seabed Nodules ... 500,000

•Any identified, measured, indicated, or inferred cobalt ore occurring in such form and amount that economic extraction of it is currently or potentially feasible is a cobalt re- source. Those identified resources which can be economically mined with current mining and production practices are considered reserves.

AVAILABILITY AND USE

Current Supply

Cobalt is almost always mined and recovered as a byproduct of copper, nickel, and other metals. The estimated

world mine production of cobalt in 1979 is shown in Table

I;®-® Zaire produced almost 41% of the total. Zairian production was up in 1979 after a three-year slump, first triggered by transportation difficulties through Angola as a consequence of unrest in that country and further aggravated

by the 1978 war in Zaire itself. New Caledonia at 13%, Australia at 11%; Zambia at 8%, Morocco at 6%, Finland at 4%,

and Canada at 3% were also significant producers. No co- balt has been mined in the United States since 1971. Since

1975, U.S. cobalt imports -have come mainly from Zaire (41%), Belgium-Luxembourg (19%), Zambia (10%), Finland

(7%), and Canada and Norway (5% each).® Taking into account the fact that all of the Belgian cobalt originated

in Zaire, and including U.S. imports from Morocco, Bots- wana and South Africa, the total amount of cobalt imported

from Africa now stands at about 75%. Not all of the U.S. cobalt demand has been met by imports or by industry stocks, even after discontinuation of domestic mining in 1971. Until 1976, a significant source of cobalt for the United States was the national stockpile. In

1976, however, to ensure an adequate supply of cobalt in case

of national emergency, sales from the national stockpile were

halted, and a stockpile goal of 85.4 million pounds was set by

the U.S. General Services Administration. As of November

12 T20-2

JOURNAL OF METALS • October, 1980
Table II: Total Consumption, Primary Demand, and Average Prices for Cobalt.’ *

Price U.S. U.S. Actual Based on Year Primary Demand Total Demand Price 1978 Dollars

(Million Pounds) (Million Pounds) (US $/lb) (US $/lb)

1979* 18.3 20.3 25.00 22.50** 1978 19.3 20.4 11.53 11.53 1977 17.8 18.3 5.58 5.99 1976 19.5 19.8 4.44 5.05 1975 13.7 14.1 3.98 4.76 1974 23.4 23.7 3.46 4.54 1973 21.8 22.0 3.00 4.31 1972 19.3 19.5 2.45 3.73 1971 13.4 13.5 2.20 3.48 1970 16.2 16.3 2.20 3.66 1969 19.2 19.5 1.89 3.31

•Estimated ••Based on 10% dollar inflation over 1978.

30, 1979, the cobalt inventory was 40.8 million pounds.® Recycling and reclamation of cobalt has increased dramatically:

in 1976, only 333,000 pounds of cobalt were reverted, while

in 1979, an estimated two million pounds of cobalt were re- verted.® However, even with the increase in recycling and re- clamation in 1979, U.S. import reliance as a percent of total consumption still stands at a dangerously high 90%.

Current Use

In 1979 the total U.S. consumption of cobalt was estimated

to be 20.3 million pounds.® Table II lists the U.S. consumption of primary and recycled cobalt, along with the average annual producer’s price of cobalt for the last ten years.® ® The disruptions in supply and the nearly exponential increases in price since 1976 obviously have not significantly curtailed the U.S. appetite for cobalt. Between 1960 and 1970, the U.S. primary demand increased at an average rate of about 6.25% per year, and since 1970 at about 2.7% per

year.®-® Estimated end uses for cobalt in 1979 in the United

States are given in Figure 1. As mentioned, superalloys are by far the single largest consumer of cobalt. It is interesting that in 1977, at the beginning of the Zairian production dis- ruptions, the amount of cobalt used in magnetic materials was equal to that used in superalloys, each requiring about

25% of the 18.3 million pounds of cobalt consumed in the U.S. In contrast, only two years later, the amount of cobalt used in magnetic materials was reduced to about 20% of the estimated 20.3 million pounds of total cobalt consumed,

whereas superalloys used about 30%.® This shows that when

alternative systems are available, as in magnetic applications, consumption rates can be somewhat elastic with re- spect to cost, but apparently this elasticity does not apply

to cobalt use in superalloys. Concerted efforts to replace

cobalt-containing with cobalt-free superalloys in some tur- bine applications have resulted in one reported'® saving of 65,000 lbs of cobalt in 1979. This is roughly a systems substitution savings of 1%. Table III lists many of the superalloys used in gas turbine

engines. Larger turbine components such as discs are usually

made of forgeable (hot workable) nickel-base superalloys

rather than the cobalt-base superalloys, which are difficult to work. Thus, even though nickel-base superalloys contain only up to about 19% cobalt while cobalt-base superalloys used

in turbines contain up to 65% cobalt, most of the cobalt is in nickel-base superalloys. Accordingly, reducing or eliminating

the cobalt content in nickel-base superalloys could substantially reduce the primary demand for cobalt in the U.S.

Table III: Cobalt Content In Sample Superalloys

Used in Gas Turbine Engines"

Alloy Cobalt Content, Wt.%

Waspaloy 13.5 Nimonic alloy 90 16.5 Nimonic alloy 115 13.2 Rene 41 11.0 Rene 95 8.0 B-1900 10.0 IN-100 15.0 IN-738 8.5 IN-792 9.0 MARM200 10.0 MARM247 10.0 Udimet 500 19.0 Udimet 700 18.5 Udimet 710 15.0

Figure 1. Estimated 1979iU.S. consumption of cobalt (total con^ sumption 20.3 million pounds).*

JOURNAL OF METALS • October, 1980 T20-3

13
Long-Term Reserves and Resources The most recent statistics® available for world consumption of cobalt show that in 1977 the U.S. accounted for over

379p of world primary demand for cobalt, which totalled 47.8

million pounds. The world primary cobalt demand is fore- casted to increase at an average annual rate of about 3.4%

to the end of the century. If the U.S. high-technology promi- nence continues, its primary demand is forecasted to in- crease at an average rate of 3.3% annually, and to continue

to account for about 40% of the total world primary demand.

The expected growth in the world demand reflects further development of industries and high technology in Japan, Western Europe and other countries. Production difficulties notwithstanding, it appears that the world’s reserves of co- balt (but not its resources) may fast become depleted in the

face of increasing global demands.

The identified (and reported) world cobalt reserves and

resources are listed in Table I, along with reserve and re- source definitions. At present, world cobalt reserves total about 3.3 billion pounds, and almost 31% of that total is in Zaire. New Caledonia, the Philippines, and Zambia also have large reserves, and Cuba and the Soviet Union together have 21% of the reserves. The U.S. stockpiles cobalt, but

has no mineral reserves. At the present rates of mine production, total world co- balt reserves will last for about half a century. If, however, annual mine production increases at a rate that reflects the

projected annual increase in world primary consumption

(3.4%), then identified reserves will be depleted in about a quarter of a century. If a more conservative cobalt production growth rate is chosen, 2.2% annually, a figure that

parallels an estimated global population growth rate, then

identified reserves will last 32 years. Of course, unless re- serves are replenished by conversion of resources to reserves, by discovery of new ore bodies, or by considerable recycling, cobalt will become a precious metal way before the end of the 32nd year. Identified world cobalt resources on land can potentially increase identified reserves by a factor of three (see Table

I). Cobalt resources total about 9.5 billion pounds. Lateritic ores in Cuba account for about 25% of the resources. For- tunately, the U.S. also has a large cobalt resource (18% of the total). In general, the conversion of resources to reserves depends on economic factors. Price elevations and improved

extraction technology can make feasible the mining of low- grade ores currently classified as resources. In the U.S., the

extensive cobalt ores classified as resources are basically

low-grade ores.

If all currently identified land-based cobalt resources are considered, then at the 1979 rate of mine production, the

resources will last over one and a quarter centuries. If, however, cobalt resources are mined at a rate that increases along

with the projected increase in world demand (3.4% annually), then the identified land-based cobalt resources will be de- pleted in half a century. A lower annual increase (2.2%) in mine output would result in virtual exhaustion of output in two-thirds of a century. The large cobalt resource in the U.S., if entirely utilized, could satisfy U.S. cobalt needs for almost a century at the current rate of consumption. Allowing for increased rates of consumption, the U.S. could still be self-sufficient for about

50 years. There is also the vast cobalt resource of ocean sea bed

nodules. The nodules, typically composed of 35% Mn, 1% Ni,

1% Cu, and 0.35% Co, have been estimated to be a 500 billion pound cobalt resource. Ocean nodules extend the lifetime

of our cobalt resources to over 7 thousand years at the current rate of use. Even taking into account an annually in- creasing consumption rate, total world cobalt resources could last for over two centuries.

Availability — The Problem

Strictly on the basis of global resources, it appears that

there is no long-term availability problem if the rich cobalt

resources, especially the ocean sources, can be converted to economically feasible reserves. However, economics and

technology are not the only considerations in such conversion. For example, ocean mining rights in international waters are currently under active international debate, and

many controversial and complex issues still must be settled before significant ocean mining ventures can be undertaken

without undue risk by the mineral companies. Indeed, al- though ocean mining technology has advanced in recent

years, it has yet to experience the trials of large-scale and

continuous production.

Foreign mineral reliance is not in itself undesirable if the mineral sources are diverse, noninteracting, secure, and elastic to demand. Unfortunately, as discussed earlier, these

adjectives do not describe the cobalt situation. On the other hand, international cartel formation by cobalt-producing nations is not likely because the economic driving force for cartel formation may not be strong enough. At $25/ lb, the

total world trade in cobalt still stands at about $2 billion per year. Perhaps because of the relatively small market for cobalt, and because it occurs naturally with other metals like copper and nickel, cobalt has by-product status at most producing

mines, the exception being Moroccan ores, with a cobalt content of ~1.2%. This general by-product status, in con- junction with current and projected depressed prices for copper and nickel, results in a relatively inelastic situation with respect to cobalt production. This is perhaps. the most

severe problem governing cobalt supply at this time, since a sudden drastic lowering of production by one major source cannot be easily compensated for by expansions at other

sources—unless there are concurrent increasing needs for the

associated copper or nickel. This inelasticity in supply is expected to govern even when consumers are willing to pay much higher prices for cobalt. A mineral availability and pricing problem would be ex- pected to spur efforts to circumvent the problem through

elemental or systems substitution. In applications involving other strategic elements, such as chromium, it is known with

confidence that the chromium need in the alloys is technically justified. As we will show below, such confidence may not be justified for cobalt in superalloys.

CRITICAL LITERATURE REVIEW

Publications regarding the role of cobalt in superalloys

are few.'^"'® This literature, such as it is, is critically re- viewed below.

7' Phase Effect Nimonic 80A* and 90 differ in cobalt content, the latter having 17 wt.% Co and the former having none. In 1964, Heslop'^ used these alloys to establish that the Ni-Cr-Co

matrix has a little less solubility for A1 and Ti, which results

in a small increase in the volume fraction of the 7' precipitates—the major strengthener in superalloys—and a corresponding increase in the 7' solutionizing temperature.

However, in multicomponent complex superalloys, such as those with refractory elements in addition to Cr, Al, and Ti, the influence of Co has not been established. It should be

noted that the refractory elements, especially W and Mo,

may also reduce Al and Ti solubility in the nickel solid- solution matrix. In fact, the superalloys used in the Soviet Union and China appear to contain more W, Mo, and Nb and

far less Co.'^ '®-^®

•Inconel. Nimonic, Mar M, Rene' 41. Udimet. and Waspaloy are, reepectively, trade names used by the INCO Companies. Marlin Marietta Corporation. Teledyne Allvac, Special Metals Corporation, and United Technolopes Corporation.

14 T20-4

JOURNAL OF METALS • October, 1980
Carbide Phases Effect The form, morphology, and distribution of carbides, which

precipitate at, and strengthen superalloy grain boundaries, have long been known to affect creep and stress rupture

as well as fatigue crack initiation and propagation properties.* The published information on the effect of cobalt again comes from the comparative study of Nimonic 80A and 90. The conclusion was that cobalt may increase the solubility

of carbon in the simpler y matrix, resulting in fewer carbides.

It was also found that the form of the carbide, i.e., whether

M7 C3 or MjjCs type, can be affected by Co.'* The carbide

situation is often complicated by the presence of the carbide- forming refractory metals. For example, in nickel-base superalloys with Mo and W, the MgC carbides are the normal type. Some experimental results show cobalt substituting for nickel

in the MjC carbides.*^' Detailed documentation does not exist.

Microstructural Phase Stability Effect There is some evidence that for long-term service at ele- vated temperatures, cobalt may influence the microstructural stability of superalloys, especially with respect to formation of the crack-like sigma phase. The role of cobalt on sigma phase formation was studied in Mar-M421. It was

found that sigma phase precipitated after long-term aging

when there was no Co in this type of alloy, but this susceptibility was eliminated when Co was raised to the 10—30%

level. These results were argued through the PHACOMP^*

procedure, in that Co apparently increases the electron- vacancy number for sigma formation. The susceptibility

for sigma formation in Inconel 713C, which has no Co, was

likewise argued through the electron-vacancy number.

Cobalt need not always be beneficial in terms of microstructural stability since, in Rene 41 and AF-21D (an Air Force alloy), long-term exposure at elevated temperatures can precipitate another deleterious, topologically closed- packed phase, (Ni, Co)? (W, Mo)s or ix phase, in which

cobalt participates.^*' 26 However, whether Co plays a pivotal role was never established.

Finally, the MAR-M421 study^^ also showed that Co may

reduce the coarsening kinetics of 7

'. The study by Lund et

al .22 and that by Heslop'^ involving Nimonic 80A and 90 are the major Co studies available in the Western literature.

Solid Solution Strengthening Effect Heslop also showed, in a limited manner, that Co may de- crease the stacking fault energy in Ni-Cr-Co solid solutions, '2 and thereby suppress cross-slip and promote strengthening.

However, this interesting study was never pursued in superalloy matrices.

Workability

Again, in a limited way, Heslop showed through hot twist

or torsion tests that Co may enhance hot workability. This

evidence apparently was generated for the strong Nimonic

115 alloy. However, the evidence was presented without data

points. We found no other studies on Co and hot workability of superalloys.

Oxidation and Hot Corrosion Effects

It has been supposed that Co plays a role in improving the

oxidation and hot corrosion resistance of nickel-base alloys.'* However, this conclusion was not based on systematic

studies of complex superalloys. In fact, it is often shown that other elements, such as A1 and Cr, may play more dominant

roles. For example, the oxidation resistance of Co-free Inconel 713C is due to the high A1 content.'* Further, the hot corro- sion resistance of Inconel 738 is due to the high Cr content.'

Direct Mechanical Properties Information

There has been very little direct experimental investigation of the effect of cobalt on mechanical properties, and no

systematic conclusion can yet be drawn. The results of two

studies are informative, however. In a Soviet study, it ap- pears that the addition of a substantial amount of Co (at least 10—12%) to a nickel alloy containing Cr, Mo, W, and a

fairly high Ti plus A1 combined content did not affect the creep properties. In another more recent and more comprehensive study by Mauer et al.,** the tensile and stress rupture properties of Waspaloy, a high sales volume alloy, were determined as a function of varying Co content. At room temperature, reducing the Co content from the normal Waspaloy composition amount (13.5%) to zero by re- placing Co with Ni caused only a 4% decrease in the 0.2%

yield strength. At 538°C, the Co content had essentially no

effect on the 0.2% yield strength. This trend was observed

for ultimate tensile strength as well. At room temperature, a small reduction of ~2% was observed as the Co content was

reduced from 13.5% to zero. At 538°C, there was little, if any, dependence of the ultimate tensile strength on Co content. The effect of Co content on the stress rupture of Waspaloy

was more significant. At 732°C and 552 MPa, the stress rupture life of Waspaloy changed linearly from about 70 h to about 15 h as the Co content was reduced from 13.5% to zero.

It is not known if the cobalt effect on stress rupture increases

or decreases with temperature or with applied stress at a con- stant temperature. The stress rupture ductility was not sys- tematically affected by Co content. Although no fatigue tests were done, it would appear, given the small effect of Co content on tensile properties, that the low cycle fatigue properties of Waspaloy would be little affected by the Co content. We conclude from survey of the literature that there is no

systematic understanding of the role of Co on either the

microstructural aspects of nickel-base superalloys known to be important to alloy performance, or directly on the relevant

properties themselves. Given this unsatisfying and inconclusive situation, in what follows we seek answers to the questions on the role of Co through an empirical model.

AN EMPIRICAL MODEL OF THE ROLE OF COBALT

Alloy and phase partitioning experimental results and

limited information from phase diagrams show that, not

surprisingly, Co (atomic number 27) by and large substitutes

for Ni (atomic number 28) and therefore rests in the fee 7

phase. However, as with Ni, Co also rests in the 7

' precipi- tate phase. 2®-*'’ A small amount of cobalt may also partition

into such minor but important phases as carbide and TCP

phases (<t and ^ phases, if any). 2 ' 2 < How and where Co or any other element partitions basically determines its role in microstructural, chemical, and mechanical behavior. On

aspects involving phase stability, such methods as PHACOMP2 *'** and Dreshfield’s geometric analysis of phase

diagrams*2'** can predict happenings. However, it is very

difficult to calculate 7 and 7

' compositions in multicomponent alloys, as it is tedious to construct multicomponent

phase diagrams.

This information can be obtained empirically, however. Kriege and Baris*® have published experimental alloy partitioning information for Co for many superalloys, including the leaner Waspaloy and the well-endowned wrought-andcast alloy Udimet 700. However, no partitioning data exist

for different Co levels in any one alloy. Such information is necessary to determine the effect of Co on its own partitioning into the various phases and on its effect on the partitioning of the other key elements, i.e. Al, Ti, C, Ni, and the

refractory elements. Some compiled information does, however, exist in China

on empirically determined partitioning ratios in superalloys

with levels of zero Co and about 10—17 wt.% Co, and with 7

'

fractions from about 10—60%.®* It was found, when the lOITOMAT K 4 CT* A 1 C • T20- 5
thirty-odd alloys studied were viewed together, that the partitioning ratios (the ratio of the total weight fraction of an element in 7 compared to that in 7 ') of Ni, Ti, and Co in 7 and 7 ', changed with the Co level and also varied monotonically with 7

' fraction. For example, the partitioning

ratios of Ni and Ti decreased in alloys with higher 7

' fraction and with higher Co content (Figures 2 and 3). This implies

that more Ni and Ti partition into 7

' precipitates in alloys with cobalt than in alloys with no cobalt. In this compilation, no obvious trends were observed for the other elements such as Cr, W, Mo, and Al.

7' FRACTION (Wt.%)

Figure 2. Experimentally determined influence of cobalt and 7' fraction on partitioning ratios of nickel in the 7 and 7' phases.

7' FRACTION (Wt.%)

Figure 3. Experimentally determined influence of cobalt and 7' fraction on partitioning ratios of titanium in the 7 and 7' phases.

The multiple-matrix results of this study can be applied in a general way through iteration to estimate partitioning ef- fects. The only information needed would be alloy composition and 7

' fraction. We decided to undertake such an

analysis for the role of Co in sigma-free Udimet 700 and

Waspaloy.

Udimet 7(X) is representative of the stronger class of wrought alloys with a high 7

' weight fraction (~45%) and a highly endowed 7 matrix. Waspaloy, on the other hand, is typical of the leaner alloys with a lower 7

' weight fraction (~19%) and a leaner 7 matrix. Both alloys are currently

among the higher-volume sales alloys for turbine applications. Udimet 7(X) is also used in the cast form and, with

the appropriate modification, is a candidate powder alloy. Unfortunately, the Co contents in Udimet 700 and Waspaloy

are nominally 18.5 and 13.5 wt.%, respectively, (the chemistries of these two alloys are given in Table IV). The partitioning ratios, from Figures 2 and 3, of the major elements in the two alloys, and in the two alloys when Ni is substituted

for all the Co on an atomic basis, are also given in Table FV. Partitioning ratios for intermediate Co contents are taken to vary linearly between the values in Table IV. From simple mass conservation considerations, linear substitution models for lattice parameters,^* the PHACOMP

type procedure*® and simple strengthening equations,*’**

and from the chemical compositions of the alloys, one can now estimate the role of Co in 7 and 7 ' composition, 7

' fraction, the 7

- 7

' lattice misfit, a phase formation potential, and

the misfit-modified Orowan strengthening provided by the 7

'

particles. The results are shown in Figures 4—8. Unfortunately, there are no developed equations relating the chemistries of 7

' to anti-phase boundary or ordered strengthening,

or to any other mechanical or physical properties, including

creep, stress rupture, fatigue, oxidation and hot-corrosion.

It appears that the majority of Co (~95% for Waspaloy

and ~72% for Udimet 700) may be in the 7 solid solution phase, with the remainder of Co in the 7

' phase (~5% for

COBALT CONTENT (Wt.%)

Figure 4. Predicted influence of Co on > composition in Waspaloy.

16 T20-6

JOURNAL OF METALS • October, 1980
Table IV: Calculated Partitioning Ratios of Eiements Between 7 and 7

'

Co in Partitioning Ratios, 7 / 7

'

Alloy, Wt.% Ni Ti Co Cr Mo Al

Waspaloy 0 1/0.250 0.550/

1

0 1/0.039 1/0.040 0.47/1

13.6 1/0.338 0.238/1 1/0.044 1/0.039 1/0.040 0.47/1 Udimet 700 0 1/1.04 0.07/1 0 1/0.15 1/0.26 0.275/1

17 1/1.30 0.06/1 1/0.33 1/0.15 1/0.26 0.275/1

Chemical Composition (wt.%) of Alloys Used for Calculations

Cr Mo Al Ti Co C B Ni

Waspaloy 19.5 4.3 1.3 3.0 0-13.6 0.05 0.006 bal Udimet 700 15.0 5.0 4.0 3.5 0-17 0.05 0.025 bal

Waspaloy and ~28% for Udimet 700). Figures 4 and 5 show

that in Waspaloy the Co content in both phases increases with increasing Co; simultaneously, the content of Ni in both phases decreases. The same behavior is obtained for Udimet 700. In Waspaloy, Co also lowers the solubility of Ti

in the matrix, which results in a predicted slight increase

in the 7

' fraction in this type alloy with increasing alloy Co

content (Figure 6). In Udimet 700, the solubility of A1 and Ti

in the 7 phase is predicted to be only slightly affected, and

hence the 7

' fraction in the Udimet 700 type alloy with or without cobalt is predicted to be unchanged (Figure 6). In both superalloys, Co is predicted to increase the 7

- 7

'

lattice mismatch (Figure 7). Accordingly, from the following

equation on Orowan-type strengthening modified by the coherency stress field of the 7

' phase,

a„= 0.7Gf'MMbVr3)‘* ..

b/4|tj < r < 2b/3M ^

'

where

G = shear modulus

f = 7

' volume fraction

e = 7

- 7

' mismatch

r = average radius of 7

' phase

b = Burgers vector

there can be a positive effect on Co on this component of yield strength (Figure 7). Our calculated results are ap- parently qualitatively consistent with the aforementioned

findings of Maurer et al.^* on Waspaloy. In the higher

strength Udimet 700, APB and not ocs is expected to deter- mine strength.

COBALT CONTENT (Wt.%) COBALT CONTENT (Wt.%)

Figure 5. Predicted influence of Co on 7

' composition in Figure 6. Predicted influence of Co on 7

' fraction in Waspaloy

Waspaloy. and Udimet 700. JOURNAL OF METALS • October, 1980 17 T20-7
COBALT CONTENT (Wt.%)

Figure 7. Predicted influence of Co on (A) 7-7' lattice mismatch, and (B) strengthening by coherency stress field of 7' phase(A<7rOFigure 8. Predicted influence of Co on the a phase susceptibility in (A) Waspaloy and (B) Udimet 700. If Nvc-Nv > O, or Ni^j-Nv>0, the alloy is not prone to form the embrittling a phase (see text for parameter identification).

Table V; Relative Effect of Cobalt Content on Creep Rate and Rupture Life

Waspaloy U-700

Co% A7,%

Relative Creep RateRelative* Rupture Life Observed**

Relative Rupture Life Co7o A7,%

Relative Creep Rate

Relative* Rupture

Life

0 60.9 8.6 1 ~1 0 61.7 100 1 3.4 65.4 5.6 1.25 -1.5 4.6 68.7 48.6 1.4 6.8 69.9 3.5 1.57 -2.1 9.2 75.4 21.1 2.2 10.2 74.4 2 2.1 -2.8 13.8 82.8 6 4.1 13.6 78.9 1 3.0 -3.4 18.4 89.7 1 10

17.0 83.2 0.44 4.4

• Calculated from t“-H = const.

** Cited from experimental creep data of Maurer et al.“* (732°C, 551 MPa)

18 T20-8

JOURNAL OF METALS • October, 1980
The effect of Co on (j.s,/, the solid solution strengthening

component of the yield stress, can be obtained from the fol- lowing equation which is deduced from the data of Pelloux and Grant^':

(T.sH = 0.84 X 0.024(at%Co) + 8.02 X 0.183(at<^oAl) -f- 6.99 X 0.36(at'TTi) -h 4.93[0.13(at%Cr) -h 0.421(at%Mo) 1 (2)

Our calculations using these equations show that decreasing

Co in both types of superalloys does not appear to influence the structural stability (Figure 8). However, if instead of Ni/c we use the parameter Nvs, as done by Lund et al.^^ for the MAR-M421-type alloys, where

log NVj = (0.0389 -I- 0.8012/t)log Co + 0.3553 (6)

This equation predicts that the effect of Co on the yield

stress is not large. Co rapidly decreases the stacking fault energy 7, of the

7 matrix. This effect can be assessed using the following

equation, quoted from Beeston’s data^®;

^y,rc = 2 X (at^^Cr) -I- 1.8 X (atTAl) + 5.83 X

(at^iTi) + 1.12 X (at%Co) (3)

where A7/C is the percentage reduction in 7,/Gb as compared with pure Ni. If it is assumed that the creep equation

e = A7.,^-®D(a/G)" (4)

with i = steady state creep rate A = constant D = diffusion coefficient a = applied stress G = shear modulus

n = stress exponent

given by Barrett and Sherby"*® to describe creep in pure

metals and solid solutions is applicable to engineering al- loys, then using Equations 3 and 4, the relative effect of co- balt content on creep rate can be roughly estimated. The re- sults are shown in Table V, along with calculations of the

relative effect of Co on stress rupture life, obtained using

t®-^t = const. The calculated relative effect of Co content on

rupture life of Waspaloy appears consistent with those found

by Maurer et al.-* Interestingly, we predict (Table V) that

the relative effect of Co on creep and stress rupture of the

constitutionally more well-endowed Udimet 700 should be

greater than that for the leaner Waspaloy. Even though

these calculations are qualitative, the result is interesting,

for it suggests that an effect of Co on creep in superalloys

may be manifested through the effect of Co on the stacking

fault energy. For predicting phase formation we used the method of Barrows and Newkirk, which is based on modifications

of previous PHACOMP-type methods^^-^' that involve elec- tron-vacancy correlations. It is presumed that if Nvx-Nv>0,

the alloy will not be prone to a phase formation, where;

where

Nvc = 2fr(N^c)/ = SX,(NJ,

(5)

Nvc

f?

(Nv,c). N.

X,

(N^),

critical electron-vacancy concentration for 7 resi- dual matrix

atomic fraction of element i in the A-element group

(where A elements are Cr, Mo, W, V, Nb, Ta, Ti, Zr)

critical electron-vacancy concentration for pure A-element i average electron-vacancy concentration of 7 resi- dual matrix atomic fraction of element i in the 7 residual matrix

electron-vacancy number of element i.

and t is the long-time exposure in hours, then the prediction

is that a possibility of a phase formation exists only at very low Co levels (Figure 8). In summary, then, it appears that the empirically-based

calculations do result in information that adds to the scant knowledge base on the role of cobalt. The calculations show

that Co may effect the partitioning behavior of elements

other than Ni (such as Ti), but that this effect appears to have only a small influence on the 7' volume fraction. Co is predicted to increase the 7-7' lattice mismatch and to thereby affect the yield strength. The Co content is predict- ed to influence the creep and stress rupture behavior of superalloys, mainly through the effect of Co on the stacking

fault energy. Finally, the structural stability is not affected by Co content if the parameter Nvc is used; but if the parameter Nv 5 is used then the possibility of structural instability

is predicted at low Co levels.

CONCLUDING REMARKS

From our literature survey and the predictive calculations,

it appears that (1) systematic information on the role of co- balt in nickel-base superalloys is scanty and not at all comprehensive, and (2) the role of cobalt may not be pivotal, particularly for superalloys less well-endowed with 7', in that

superalloys may not require the present levels of cobalt to deliver acceptable performance. However, this last state- which is itself based on minimal empirical information. Accordingly, systematic research must be undertaken to re- assess the necessity of cobalt as an alloying element in superalloys, especially in nickel-base superalloys.*

The substitution of nickel or other elements for cobalt in superalloys could result in a 10% or more reduction in the

total U.S. yearly demand for cobalt. “ As discussed in some

detail in this paper, the U.S. is currently 90% reliant on

imported cobalt, and current foreign cobalt sources are neither diverse, secure, nor elastic with respect to changes in demand. Furthermore, global cobalt reserves are limited, and

conversion to reserves of the world’s rich cobalt supply, es- pecially from ocean nodules, awaits international settlement

of ocean mining rights as well as further technological

developments.

ACKNOWLEDGEMENTS

We are grateful to Teri Huebner for her efforts in the search for cobalt availability information. For enlightening

discussions, we thank Drs. John Pridgeon, Steve Reichman,

William Boesch, Gem Maurer, Larry Jackman, and John

Domingue of Special Metals Corporation, Professor John

Radavich of Purdue University, and Drs. Joseph Stephens, Robert Dreshfield, Hugh Gray, and Tom Glasgow of the National Aeronautics and Space Administration at Lewis Field. We are indebted to Dr. Robert Hall of NASA-Lewis for his constructive criticisms which resulted in the section in this paper dealing with the analytical derivations of the role of cobalt.

•At press time, it was learned that under NASA-Lewis sponsorship Columbia University, Purdue University. Special Metals Corp.. and NASA itself will undertake a research pro^am to clarify the role of cobalt in superalloys. JOURNAL OF METALS • October, 1980 T20-9

19
References

1. J.K. Tien and S. Puruahothaman, "Metallurgy of High Temperature Alloya," Propertie$

of High Temperature Alloya. Electrochemical Society. Inc.. Princeton. New Jersey. 1976,

p. 3-41.

2. J.K. Tien. R.M, Arons, and R.W. Clark, "Metals—An Endangered Si>ecies?"

J. Metals. 28 (1976) p. 26<28.

3. J.K. Tien and R.M. Arons. "High Temperature Superalloys—Conservation and the Ceramic Alternatives." Proceedings of the Conference on Intermateriala Competition

in the Management of Shrinking Resources, ed. by W.R. Schmeal, AIChE Sympoeium

Series. Vol. 73. No. 170. 1977.

4. B.J. Reddy. Proceedings. 24th Annual International Gas Turbine Conference, San

Diego. California, March 15. 1979.

5. S.F. Sibley. Cobo/f, Mineral Commodity Profiles, U.S. Bureau of Mines, U.S. Dept,

of Interior, October 1979, p. 1-23.

6. Mineral Commodity Summaries. 1969-1979, Cobalt Chapter, U.S. Bureau of Mines. January 1970-January 1980.

7. S.F. Sibley. "Cobalt," in Minerals Yearbook, U.S. Bureau of Mines. U.S. Dept, of Interior, 1977.

8. Mineral Trends and Forecasts, U.S. Bureau of Mines, Dept, of Interior. 1979. p. 11-25.

9. J.K. Tien and T.E. Howson, "Nickel and Nickel Alloys," Encyclopedia of Chemical

Technology. 3rd Edition. John Wiley & Sons, Inc., New York, 1980, to be published.

10. H.J. Gray, "Critical Materials Problem Seen Threatening America," ASM News,

10 (12) (1979) p. 1-8.

11. High Temperature. High Strength Nickel Base Alloya, International Nickel Co., Inc. (1977).

12. J. Hestop, Cobalt, 24. September 1964, p. 128-137.

13. L. Habraken and D. Coutaouradis. Cobalt, 26, March 1965, p. 10-24.

14. F.F. Khimushin, "Heat Resisting Steels and Alloys." (in Russian). Metallurgia,

(1969).

15. C.T. Sims. J. Metals. 18, (1966) p. 1119-1130.

16. L.N. Zimina. "Special Steels and Alloys," (in Russian), Metallurgia, (1972).

17. X.S. Xie and G.L. Chen. The Superalloys, Part HI. Peking University of Iron and

Steel Technology. Peking, 1974.

18. W. Betteridge and J, Heslop, The Nimonic Alloys. Second Ekiition, 1974, p. 36-62.

19. A Primer on Sni'iet Superalloys, DMIC Report. No. 235, Battelle Memorial Institute. Columbus, Ohio, 1966.

20. The Structure Atlas of Superalloys. China Metallurgical Press. Peking, 1979.

21. O.P. Sabal and R. Stickler. Physica Status Solidi, 35 (1969) p. 11-52.

22. C-H. Lund, M.J. Woulds. and J. Hockin. Proceedings of the First International Symposium on Structural Stability in Superalloys. Seven Springs, Pennsylvania. 1968.

p. 25-46,

23. L.R. Woodyatt. C.T, Sims, and H.J. Beattie, Trans AIME, 236 (1966) p. 519-527.

24 C.T. Sims. The Superalloys. ed, by C.T. Sims and W.C Hagel, John Wiley & Sons.

Inc., New York. 1972. p. 113-144.

25. H.J. Beattie and W.C. Hagel, Trans. AIME. 221 (1961) p

28-35

26. H.E, Collins, Trans. ASM. 62 (1969) p. 82-104.

27. A.M. Borzdyka, Metal Science and Heat Treatment, (trans. from Russian), 19 (1977)

p. 937-940.

28. G.E Maurer, L.A, Jackman and J. Domingue, Proceedings of the Fourth International Conference on Superalloys. ed. by J.K. Tien. S.T. Wlodek, H. Morrow III, M. Gell, and

G.E. Maurer, ASM Press, 1900, p. 43-52.

29. O.H. Kriege and J.M. Baris, Trans. .ASM, 62 (1969) p. 195-200.

30. R.W. Guard and J.H. Westbrook. Trans. TMS-AIME, 215 (1959) p. 807-814.

31. W.J. Boesch and J.S. Slaney. Met. Prog., 86 (1) (1964) p. 109-111.

32. R.L. Dreshfield, Met. Trans. 2 (1971) p. 1341-1346.

33. R.L. Dreshfield. "Estimation of Conjugate y and y’ Compositions in Ni-Base Superalloys Application of Phase Diagrams in Metallurgy and Ceramics," proceedings of a Workshop held at the U.S. National Bureau of Standards, BS SP496, 1^7. p. 624-657.

34. G L. Chen, "Phase Control in Superalloys," Report to the Second National Conference on Superalloys, China, 1976.

35. R. Watanabe and T. Kuno, Trans. ISIJ, 16 (1976) p. 437-446.

36. R.G. Barrows and J.B. Newkirk, Met. Trans., 3 (1972) p. 2889-2893.

37. R.M.N. Pelloux and N.J, Grant. Trans. AIME, 218 (1960) p. 232-237. 38 L.B. Brown and R.K. Ham. Strengthening Methods in Crystals, ed. by A. Kelly and

R.B. Nicholson. John Wiley & Sons. Inc., New York. 1971. p. 12-121.

39. B E.P. Beeston and J.K. France, J. Inst. Met. 96 (1968). p. 105-107.

40. C R. Barrett and O.D. Sherby, Trans- Met. Soc. AIME 233 (1965), p. 1116-1119.

41. W.J. Boesch, Special Metals Corp.. Private Communication. 1980.

ABOUT THE AUTHORS

J.K. Tien is Professor of Metallurgy at the Henry Krumb School of Mines, Columbia

University, New York City. He received his PhD (1969) and MS (1967) in metallurgy and

materials science from Carnegie-Mellon University, his MEng degree (1964) from Yale

University, and his BS (ME) degree (1962) from Worcester Polytechnic Institute. He was

a research scientist at Pratt & Whitney Air- craft for four years before joining the faculty at Columbia in 1972. He is author or co-author of more than 90 papers in many materials areas including the physical and mechanical metallurgy

of superalloys, coarsening and stress coarsening, kinetics of hydrogen embrittlement, and fracture mechanics. He has re- searched and published in areas relating to materials availability and technology transfer. Dr. Tien is a consultant to many

industries and to the United Nations.

T.E. Howson is Research Associate at the Henry Krumb School of Mines, Columbia

University. He received his PhD (1979) and MS (1977) degrees in metallurgy from Columbia University, and his BA (1975) in physics from Williams College. He is author or co- author of many papers in the area of superalloys.

G.L. Chen is a Visiting Scholar at the Henry

Krumb School of Mines, Columbia University. He graduated (1955) from the Peking

University of Iron and Steel Technology

(PUIST) and is on leave from PUIST as Associate Professor of Metallurgy and Head

of the Superalloys Division. His main area of research is in the physical metallurgy of superalloys and alloy steels. He is author or co-author of about 20 papers and 3 books on superalloys, includ- ing an atlas of superalloys.

X.S. Xie is a Visiting Scholar at the Henry

Krumb School of Mines, Columbia University. He received his CSc degree (1961) from the In- stitute of Metallurgy in Ostrava, Czechoslovakia, and is a graduate (1956) of Peking

University of Iron and Steel Technology. He is on leave from PUIST as Associate Professor

of Metallurgy. His main area of research is in the physical metallurgy of superalloys and

heat resistant steels. He is author or co-author of over 15 papers and 2 books on superalloys.

20 T20-10

JOURNAL OF METALS • October, 1980
E-623

NASA’s ACTIVlTli:S !N illK CONS!’ UVATl ON

OF STRATEGIC AEROSPACE MATERIALS

by Josepli R. Stephens

National Aeronautics and Space Administration

Lewis Research Center

Cleveland, Ohio 44135

ABSTRACT

NASA has several activities underv.ay directed at conserving strategic

materials used in the aerospace industry. Research efforts involving universities and industry as well as in-house activities at the NASA-Lewis Research

Center comprise the current program. These initial research efforts are preparatory to an anticipated much broader program focusing on the "Conservation

of Strategic Aerospace Materials - COSA.M." The primary objective of the COSAM

Program is to help reduce the dependence of the United States aerospace industry on strategic metals, such as cobalt, columbium, tantalum, and chromium,

by providing the materials technology needed to minimize the strategic metal

content of critical aerospace components with prime emphasis on components for

gas turbine engines. Thrusts in three technology areas are planned for the

COSAM Program, including near-term activities in the area of strategic element

substitution; intermediate-range activities in the area of materials processing;

and long-term, high-risk activities in the area of "new classes" of high

temperature metallic materials. This paper describes in some detail the projects currently underway and initial results generated to date. Initial emphasis

has been placed in the area of strategic element substitution. Specifically,

the role of cobalt in nickel-base and cobalt-base superalloys vital to the aerospace industry is being examined in great detail by means of cooperative

university-industry-government research efforts. Investigations are also underway in the area of "new classes" of alloys. Specifically, a study has been

undertaken to investigate the mechanical and physical properties of intermetallics that will contain a minimum of the strategic metals. Current plans

for the much larger COSAM Program, also are presented in this paper.

TNTROPl'CTION

The United States is heavily reliant upon foreign sources for the supply

of most strategic metals required by cur aerospace industry. With the exception of molybdenum, iron, magnesium, and the rare earths, the United States

imports from 50 to 100 percent of such aerospace metals as Co, Cb, Ta, Cr , and

Mn (ref. 1). However, the potential for foreign cartels, political unrest,

and production limitation is great and is intensified by steadily declining

known reserves. Thus, the United States can expect to be faced with supply

shortages and price escalation for many strategic metals. Since these metals

are vital to the welfare of the nation's economy, their continued availability

at a reasonable cost is a national issue which requires cooperative action between the aerospace industry and appropriate government agencies.

T20-11
The aerospace industry is currently a major factor in the positive inflow

of funds from U.S. exports (ref. 2). i'his industry, and within it the aircraft

engine industry in particular, relies heavily upon imports for several key

strategic metals including cobalt, columbium, tantalum, and chromium. In order

to offset or minimize future disruptions in supply, efforts to develop viable

options must begin now, since a new material can take from 5 to 10 years of re- search and development efforts before qualifying for aerospace seirvice.

NASA currently plans to take a leading role in addressing the aerospace

industry's needs to minimize the use of strategic metals for advanced aerospace systems. The materials technology program now being planned by NASA is

designated COSAM - Conservation of Strategic Aerospace Materials. The COSAM

program has as its broad objective the reduction of the dependence of the U.S.

aerospace industry on strategic metals. This objective will be accomplished

by providing the materials technology options needed to allow individual com- panies to trade-off the material properties of critical components versus cost

and availability of their strategic metal content. This paper will summarize

N.ASA's current Pre-COSAM activities and broadly outlines the planned COSAM

Program.

STRATEGIC METALS

As the basis for what are considered strategic nietals, we will focus on

the aircraft engine industry's needs. Based on discussions with several aircraft engine manufacturers, four elements emerged that were of particular concern. The alloys used to build the critical high temperature components for

aircraft propulsion systems require the use of the four metals - cobalt,

columbium, tantalum, and chromium. These metals are contained in steels,

stainless steels, and superalloys that are used in engine manufacturing. The

location of these metals in aircraft engine compressors, turbines, and combustors is illustrated in figure 1. The need for such metals has increased as the

demands have gro^^m for higher durability plus higher performance, fuel efficient

aircraft turbine engines. Based on the essential nature of these metals and for

the U.S. aircraft industry to maintain its competitive position, it is necessary

that supplies be readily available at a reasonably stable cost. To achieve

these requirements, domestic sources of key metals ate dos'irable. However, the

U.S. has never been self-sufficient in these metals„ Today, we are almost

totally dependent on foreign sources for these metals as sho\>m in figure 2. In

several of iihe countries listed in figure 2, recent poij.Lical disturbances have

led to supply interruptions. Therefore, the U.S^ aircraft engine industry can

be seen to be highly vulnerable to supply instabilities of the essential metals

for engine manufacturing. Accompanying supply disruptions or increased demand

is an accelerated price increase. Escalated prices during the recent few years

are evident for tantalum, columbium, cobalt, and to a lesser degree for chromium, as shown in figure 3- These rapid price increases illustrate the vulnerability of the U.S. aircraft engine industry to cost fluctuations. The essential nature of cobalt, columbium, tantalum, and chromium along with their

vulnerability to supply instabilities and cost fluctuations combine to cause

these metals to be classified as strategic aerospace metals.

T20-12
OVERVIEW OF THE COSAM PROGRAM

The COSAM Program has as its primary objective the reduction of the

dependence of the U.S. aerospace industry on strategic metals. The COSAM

Program will further provide the industry with options for making their own

property versus availability/cost trade-offs when selecting aerospace alloys.

These objectives will be achieved by providing the technology needed to minimize the strategic metal content of critical components in aerospace structures. Initial emphasis will be placed on the aircraft engine industry. The

program will initially focus on conservation of the strategic metals cobalt,

columbium, tantalum, and chromium. Strategic metals such as titanium, the

precious metals, tungsten, and others may be brought into the COSAM Program

as it progresses. A three-pronged approach is planned as shown in figure 4,

and will consist of strategic element substitution, process technology, and

alternate materials^ Conservation, as well as reduced dependence on strategic

metals, will be achieved in the area of strategic element substitution by

systematically examining the effects of. replacing cobalt, columbium, and

tantalum with less strategic elements in current, high use engine alloys.

This will help guide future material specifications if one or more of these

metals becomes in short supply. Conservation through process technology will

be achieved by advancements in those net-shape and tailored-structure processes

that minimize strategic material input requirements. This will lower total

usage. And in the longer term, development of alternate materials that replace

most strategic metals with those highly available in the U.S. could lead to a substantial reduction in the U.S. dependence on foreign sources. Both of the

later two technology areas will help conserve the four strategic metals Co,

Cb, Ta and Cr.

PRE-COSAM ACTIVITIES

The COSAM Program has been proposed to begin in FY 1982, i.e., in October

1981. Thus, efforts on planning and organizing the program are currently underway. In addition to the planning activities, several small research activities

have already been initiated. These research activities will dovetail in a logical fashion into the proposed COSAM Program. These research activities focus

on two of the three major thrusts of the COSAM Program - strategic element substitution and development of alternate materials.. Special emphasis of these

initial efforts is on developing a fundamental understanding of the role of

strategic elements in current aircraft engine alloys so that effective alloying

element substitution can be conducted. Similarly, in the development of alternate materials, a basic understanding of materials properties and alloying concepts is being emphasized. Consequently, university grants play a major part

in the Pre-COSAM projects. In addition, cooperative programs with industry

augmented by in-house research at the XA.SA-Lewis Research Center comprise the

approach used in these initial projects. This cooperative approach will be

carried into the COSAM Program where industry, university, and government inhouse research will each play a key role. The subsequent paragraphs will

describe in some detail the Pre-COSAM research efforts.

Strategic element substitltion . - Four metals were mentioned previously

as being classified as strategic metals. Cobalt was selected from these four

metals for the Pre-COSAM strategic element substitution research. The basis

T20-13
'or selecting cobalt was twofold. First, the largest single use of cobalt in

the U.S. is in superalloys for jet engine applications. Figure 5 illustrates

that about 30% of cobalt goes into the production of superalloys (ref. 3).

Many of the other applications indicated in figure 5 are also important to the

nation's economy and security as well. Secondly, the specific roles that

cobalt plays in nickel-base superalloy fabrication and performance has not

been clearly established. Most superalloys currently in use were developed

at a time when cobalt was plentiful and inexpensive. Literature results

(ref. 4) are conflicting as to the role that cobalt plays in nickel-base

superalloys in important areas such as phase stability, y' partitioning,

strength, f abricability , and oxidation and hot corrosion resistance. Because

of these uncertainties, there exists a strong possibility that the strategic

element cobalt can be substantially reduced or possibly eliminated from sev- eral superalloys without sacrifice of the key properties for which these alloys

were selected for engine service.

Four nickel-base and one cobalt-base superalloys have been selected for

the Pre-COSAM investigation. The five alloys are listed in figure 6 along with

their typical applications in the aircraft engine industry, the forms in which

the alloys are used, and remarks as to why they were selected for the Pre-COSAM

activity. Applications include turbine disks, low pressure blades, turbine

blades, and combustors. A variety of product forms are represented by the

applications of the five alloys as noted in figure 6. The selection of the

five alloys was based primarily upon the considerations given in this figure.

Maspaloy* was selected because it represents the highest tonnage of cobalt in

commercial aircraft engines. Selection of Udimet-700'*' was based on the fact

that this alloy is used in the as-cast, as-wrought ingot, as-wrought powder,

and as-HIP powder metallurgy fabricated conditions. The potential for determining the impact of cobalt on both conventionally-cast as well as on single

crystal turbine blades was the reason for selecting MAR-M247*. Rene' 150 was chosen because it is one of the most advanced directionally solidified alloys.

The wrought, sheet alloy HA-188* was selected because it represents one of the

largest uses of a cobalt-base alloy in aircraft engines.

The primary purpose of the cobalt strategic element substitution research

is to determine the fundamental role of cobalt in a vide variety of nickel-base

super alloys and in a high-use cobalt base superalloy. A secondary purpose is

to develop the methodology to explore the roles of other strategic elements in

similarly chosen alloys so as to have maxiaium impact ovi a wide range of users.

Figure 7 shows the participants in the Pre-COSAM activities on cobalt

strategic element substitution. These initial research efforts are planned

for a three-year period and consist of cooperative programs involving universities, industry, and NASA-Lewis Research Center. Nominal compositions of the

Trademarks

k'aspaloy United Technologies Corporation

Udimet Special Metals Corporation

Mar-M Martin Marietta Corporation

Rene* General Electric Corporation

KA Cabot Corporation

T20-14
five alloys given in figure 7 indicate that cobalt content ranges from 10% in

Mar-M247 to 39% in HA-188. In addition the y* phase ranges from 20% in

Waspaloy to 65% in Rene'-150. The first phase in each research effort will

involve substituting the less strategic element, nickel, for cobalt in incremental steps to a zero cobalt content. The effects of this substitution on properties and phases present, such as will make-up the major portion of

the research effort in the first year of each program element. Efforts in

subsequent years will be directed at identifying and optimizing alloying

elements as substitutes for cobalt in the five alloys so as to maintain the

key properties of these alloys.

The cooperative nature of the research being conducted on Waspaloy and

Udimet-700 is illustrated in figure 8. The role of industry as represented

by Special Metals Corporation is outlined. Their primary role is to characterize and optimize fabrication and heat treating procedures for the reduced

cobalt Waspaloy and Udimet-700 alloys. The university role in this effort is

also shown in figure 8. Columbia University will be involved with mechanical

property characterization, structural stability, microstructural features,

and theoretical formulations to identify future alloy modifications if re- quired for the second phase of the project. Purdue University will be

primarily responsible for microstructural and microchemistry characterization

of the reduced cobalt content alloys. To round out the program, NASA-Lewis

Research Center will be involved in further mechanical and physical metallurgy

characterization of the alloys as shown in figure 8. The output of this cooperative effort is expected to be a clearer understanding of the role of cobalt

in nickel-base superalloys.

Some preliminary results on the effects of reducing cobalt in Waspaloy, a 13% cobalt alloy, are shown in figure 9 (ref„ 5). Tensile strength appears to

be insensitive to the amount of cobalt in the alloy. However, rupture life

decreased with decreasing amount of cobalt in Waspaloy. Further testing will

be required to better characterize this apparent effect.

The research efforts on MAR M247 and Rene' 150 parallel the previously

described efforts on Waspaloy and Udimet-700. It is anticipated that these

projects will lead to an understanding of the fundamental role of cobalt in a variety of conventional and directional nickel-base superalloys. These results should provide an improved technical base to develop modified superalloys

in the proposed COS AM Program.

Alternate Materials . - Research in this area must be considered to be high

risk and long range, but it has the potential of a high payoff in terms of

significantly reducing the nation's dependence on strategic materials. As an example of alternate materials, intermetallic compounds are currently being

investigated for possible structural applications. Initial efforts are centered on nickel and iron aluminides. Successful development of this type

of alternate material offers the possibility of partially or totally replacing

all the strategic materials in components where intermetallic compounds can be

utilized

.

Intermetallic compounds are of interest because of their potential high

temperature strength as shown in figure 10 (ref. 6). It can be seen in this

figure that nickel aluminides have the strength capability of competing with

T20-15
ciirrL'Ul n i eke 1 -base alloys. llowovcT, a possii)lc- d i sadvaiU aj.'<.- of LbLs type of

niateriaJ i^i LiiaL sLm|)|c bLiiary a I iiinin Ldo c-ompounda have shown a Jack of room temperature ductility (fig. 11). The factors which influence the high ductileto-brittle transition temperature of nickel aluminide ('•600 +°C) are currently

being investigated as part of the Pre-COSAM activities. A NASA grant with

Dartmouth University is aimed at understanding the fundamental deformation

mechanisms in nickel aluminide. From these investigations, methods of improving the low temperature ductility of nickel aluminide may be suggested. An

accompanying in-house research project at XASA-Lewis Research Center is focusing on the high temperature mechanical properties of aluminides. These PreCOSAM studies will provide a fundamental basis for more extensive research to

develop these nonstrategic , alternate materials in the COSAM Program.

COS AM PROGRAM

The proposed COSAM Program is intended to build on the fundamental understanding from the early research for cobalt substitution, as sho^vm in figure 12.

Major efforts will be devoted to developing, and if warranted, to scaling-up low

or no-cobalt nickel base superalloys for fabrication into various components,

and with demonstration of continued promise, to verification in engine tests.

Similar efforts will also be conducted for other strategic metals such as columbium and tantalum.

In the area of alternate materials, much more work will be required to

develop materials such as intermetallic compounds. As shov/n in figure 13,

initial efforts will focus on fundamental studies aimed at improving low temperature ductility and high temperature strength of FeAl and NiAl intermetallics

.

Complete property characterization x>/ill follow on more promising compositions.

Reiterations of these basic steps will be required to further optimize the

alternate materials and make them viable candidates as structural materials

for aircraft engines. Scale-up and rig testing of promising compositions for

blades and vanes will follow. The development of alternate materials will

help conserve the strategic metals Co, Cb, Ta, and Cr.

The third area of the proposed COS/vM Program involves conservation through

improved materials processing technology. Although none of these activities

are now underway in the Pre-COSAM effort, they will play a major part in the

C0SA>! Program. Contemplated areas of research are shown in figure 14. Conservation of strategic materials will be achieved from initial melting practices,

through component fabrication, and recycling of serviced components. An

example of one method of processing technology is tailored fabrication which

utilizes strategic metal containing alloys only where required. Figure 15

illustrates the critical placement of strategic metals where conservation of

these strategic metals is achieved by using low strategic metal alloys in less

critical areas. Technology development requirements will include near-netshape castings, high temperature joining methods, and repair welding methods.

Following component fabrication development and characterization, engine verification will be undertaken. Similar programs are anticipated for other

materials processing programs. For example, early efforts on near-net-shape

fabrication of a turbine disk (ref. 7) have been shown to be able to reduce

input material weight compared to conventional casting/forging practice and

further gains appear possible. Processing technology will help conserve the

strategic metals Co, Cb, Ta, and Cr.

T20-16
SUMMARY

This paper has presented NASA's planned COSAM Program and described some

of the Pre-COSAM activities that are currently underway. The primary points

made about this program are summarized below:

1. Advancements in materials teclinologies are needed to provide the

aerospace industry with alternative materials options in the event of future

strategic ~etal shortages or excessive price increases^

2. The primary role of NASA through its proposed COSAM Program will be

to address strategic material problems within the aerospace industry, but the

COSAM Program should make contributions to a national data base that will

benefit many other domestic industries^

3. The COSAM Program is constructed so as to involve cooperative research

efforts in industry from alloy producers, component fabricators, and engine man- ufacturers along with universities and government research facilities (primarily

the Lewis Research Center).

REFEREN'CES

1. Mineral Commodity Summaries 1979. Bureau of Mines, U.S. Department of the

Interior, 1979.

2. "Aerospace Review and Forecast 1979/80," Aerospace , Vol. 18, No. 1, Winter,

1980, p. 4.

3. Mineral Industry Surveys, Bureau of Mines, U.S. Department of the Interior,

December 1979.

4. J.K. Tien, T. E. Howson, G. L. Chen, and X. S. Xie: "Cobalt Availability

and Superalloys," Journal of Metals, October 1980, pp. 12-20.

5. G. E. Maurer, L. k. Jackman, and J. A. Domingue, "Role of Cobalt in

Waspaloy," Superalloys 1980 , J. K. Tien, ed., ASM, Metals Park, OH, 1980.

pp. 43-52.

6. E. M. Schulson, "The Ductility of Polycrystalline NiAl," Presented at NASA

Lewis Research Center, September 1979.

7. R. L. Dreshfield, and R. V. Miner, Jr., "Applications of Superalloy Powder

Metallurgy for Aircraft Engines," 1980 International Powder Metallurgy

Conference, Washington, D.C., June 22-27, 1980.

T20-17
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T20-25

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T20-27

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T20-28
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T20-31

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T20-32

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1 Report No 2. Goyernmeni Accession No NASA TM-81617

3. Recipient's Catalog No.

a Title and Subtive NASA's ACTIVITIES IN THE CONSERVATION OF

STRATEGIC AEROSPACE MATERIALS

5. Report Date

6. Performing Organization Code 505-33

7. Author(sl Joseph R. Step.hens

8. Performing Organization Report No. E-623

10. Work Unit No

9. Perforrning Organization Name and Address National Aeronautics and Space Administration

Lewis Research Center

Cleveland, Ohio 44135

11. Contract or Grant No.

13. Type of Report and Period Covered Technical Memorandum 12 Sponsoring Agenc, Name ano Address National Aeronautics and Space Administration

Washington, D.C. 20546

14. Sponsoring Agency Code

15 Supplementary Notes Prepared for the 1980 Fall Meeting of the American Society for Metals, Cleveland, Ohio,

October 28-30, 1980.

16 Absti-a:t NASA has severa. activities underway directed at conservLag strategic materials used in the aerospace

industry. Research efforts involving universities and industry as well as In-house activities at the NASA- Lewis Research Center comprise the current program. These initial research efforts are pre- paratory to an anticipated much broader program focusing on the "Conservation of Strategic Aerospace

Materials - COS.A.M." The primary objective of the COS.AM Program is to help reduce the dependence

of the United States aerospace industry on strategic metals, such as cobalt, columbium, tantalum, and

chromium, b> presiding the materials technologj' needed to minimize the strategic metal content of critical aerospace components with prime emphasis on compo.nents'for gas turbine engines. Thrusts in three technology areas are planned for the COS.A.M Program, including near-term activities in the area

of strategic element substitution; intermediate- range activities in the area of materials processing; and

long-term, high-risk activities in the area of "new classes" of high temperature metallic materials.

This paper describes in some detail the projects currently underway and Initial results generated to date. Initial emphasis has been placed in the area of strategic element substitution. Specifically, the

role of cobalt in nickel-base and cobalt^base superalloys \ital to the aerospace industry is being

examined in great detail by means of cooperative university- industry- govex-nment research efforts. Investigations are also underway in the area of "new classes" of alloys. Specifically, a study has been

undertaken to investigate the mechanical and physical properties of Intermetallics that will contain a minimum of the strategic metals. Current plans for the much larger COSAM Program also are pre- sented in this paper.

17. Key Words (Suggested by Author(s)) Conservation; Superalloys; Strategic elements; Processing; Intermetallic compounds; Aerospace; Materials

18. Distribution Statement Unclassified - unlimited

STAR Category 26

19 Security Oatsif. (of this reporti Unclassified

20. Security Classit. (of this oage Unclassified

21. No. of Pages 22. Price

‘ Foi sale by the National Technical Information Se:..:e Springfield Virginia 22161

T20-33
CRITICAL ELEHENTS IN THE AEROSPACE INDUSTRY

E. P. Whelan

Climax MolNybdenum Company of Michigan

T21
CRITICAL ELEMENTS IN THE AEROSPACE INDUSTRY*

E. P. Whelan

(Climax Molybdenum Company of Michigan)

There can be no question that the aircraft gas turbine industry is heavily

dependent on chromium for its successful operation. Despite considerable research, no alternative to chromium has yet been found, either in the form of a

single element or a group of elements, that can provide the combination of oxidation and hot corrosion resistance required for high temperature turbine operation.

Thus chromium must head any list of elements of critical importance to the aircraft gas turbine industry. The critical nature of chromium in this industry

is compounded by its concentration in countries that may well use the availability

of this element to further their own interests at the expense of those of the

United States. The current price and availability of chromium has induced a false

sense of security in this country that historically has been difficult to disturb,

and that is overdue for ah infusion of realism.

Considerably more attention has been paid recently to the availability of

cobalt than to the availability of chromium, due to the effect of supply problems

beyond the control of the United States. There is greater potential for substitution for cobalt by other elements than there is for chromium, and therefore the

necessity for ensuring a guaranteed supply of cobalt does not have the same extreme

degree of urgency as that for chromium. However, some areas will undoubtedly

exist where cobalt and cobalt-base alloys will not be open to replacement by, for

example, nickel and nickel-base alloys, and therefore some reliance on cobalt in

the aircraft gas turbine industry appears inevitable.

Text of a presentation made at the Department of Commerce Workshop on Cr it real

Materials Needs in the Aerospace Industry, February 9-10, 1981 at the National

Bureau of Standards, Gaithersburg, MD.

T21-1
The fact that chromium is essential to the achievement of resistance to

oxidation and hot corrosion in high temperature turbine applications has been

stated frequently. Improvements in the high temperature mechanical properties

of superalloys have generally involved some decrease in the chromium content of

the alloys, with a consequent loss in resistance to hot corrosion. Thus a decrease in the chromium contents of gas turbine high temperature alloys below

certain levels is not a feasible route for minimizing chromium dependency. The

use of protective coatings can provide extended corrosion resistant lifetimes to

turbine hot components and, therefore, offers some potential for chromium conservation. However, the temporary nature of such coatings demands that the underlying

alloy should possess sufficient inherent corrosion resistance to avoid rapid corrosion in the event of coating failure. An alternative to the use of coatings for

chromium conservation is the development of clad or composite materials composed

of high-chromium alloy envelopes and low- or zero-chromium alloy cores, an approach

that has already been given some consideration by gas turbine producers. These

techniques of coating and cladding probably represent the extent to which current

technology can handle reduced chromium contents in hot components.

Given the essential nature of chromium in high temperature alloys, an adequate

GSA stockpile is likely to be the only short term solution to a sudden decrease in

the supply of chromium. For superalloy purposes the chromium in the stockpile

should contain adequate quantities of high quality electrolytic grade chromium.

Deviating slightly from the high temperature side of the aerospace industry,

some mention should be made of the Computer Harmonized Application Tailored (or

CHAT) alloy selection system which was developed by Breen and coworkers at

International Harvester Company to permit the replacement of nickel in carburizing

stf'els hv lowor cost nltornativo olomonts. Tlu; iiso of tins system Jurin;.; tlio

nickel shortage of the late 60 * s enabled low cost low-nickel or nickel-free alloy

T21-2
compositions to be Identified, and a similar approach could be used to minimize

or eliminate chromium usage In similar alloys where substitution for this element

is feasible.

As mentioned earlier, some substitution for cobalt In superalloys Is possible

and, as a result of the "cobalt crisis" of 197F, some progress has been made In

decreasing the usage of cobalt In gas turbines. To date, replacement of high

cobalt alloys by lower cobalt alloys that are already commercially available has

been the predominant route taken for cobalt conservation. This situation reflects

the fact that considerable expense Is Involved In qualifying newly-developed alloy

compositions for gas turbine applications, which opposes research efforts to

Identify new zero-cobalt alloys. In addition, the current high cost of cobalt is

frequently not a major deterrent to its use in high technology areas, since raw

materials costs may form only a minor portion of final product cost. As with

chromium, the current availability of cobalt has again tended to obscure our

essential dependence on non-domestic sources for the element.

When discussing the need for studies on alloy substitution, due attention must

be given to the probability that much relevant work may lie in the unpublished

records of alloy manufacturers. Access to this data will obviously be limited on

the basis of its proprietary nature, but there will clearly be a need to coordinate

research on alloy substitution to avoid unnecessary duplication of work already

performed

.

Some studies have been performed at the Climax Molybdenum Company of Michigan

Research Laboratory on the potential for substitution of cobalt in both wrought

and cast superalloys. Our general approach has been to use statistically designed

experimentation to identify optimum combinations of elements that yield required

properties, and at the same time to assess the potential for replacing cobait

with alternative elements.

T21-3
In the wrought alloy area, we have compared the properties of experimental

cobalt-free nickel-base superalloy compositions with the properties of commercial combustor can alloys such as the cobalt-base Haynes Alloy No. 188 and

the nickel-base Inconel 617 which contains 12.5% cobalt. Our work to date suggests that cobalt is not essential to the achievement of stress-rupture properties and oxidation resistance approximating those of Inconel 617, and in fact

an alloy similar in composition to an alloy studied at Climax is now available

in Europe as Nimonic 86. We have also studied the effect of decreasing the

cobalt content of Haynes Alloy No. 188 on its stress-rupture properties and oxidation resistance. An initial study has shown that some reduction of the cobalt

content of this alloy is feasible without any loss of these properties being

evident, and there appears to be scope for further cobalt reductions.

In the area of cast superalloys, we have studied the possibilities of developing nickel-base compositions as alternatives to the cast cobalt-base alloys FSX 414

and X-40 that are used widely as turbine vane alloys. Using carbide strengthening

alone, and avoiding y’ phase formation, it appears probable that nickel-base alloys

with stress-rupture properties and oxidation resistance similar to those of FSX 414

can be developed. However, it has become clear that further work will be necessary

to duplicate the mechanical properties of X-40.

In contrast to the high technology area, there has been considerable eagerness

to replace cobalt-base alloys in applications where rigorous qualification testing

is not required. One such area is wear resistant hardfacing alloys. We have recently concluded a cooperative program with Eaton Corporation to develop alloys

that can be used to replace the cobalt-base Alloy No. 6 for certain valve wear

applications.

T21-4
The levels of trace elements in superalloys are a matter of concern for

gas turbine applications and it is essential that any cobalt in the GAS stockpile should be sufficiently pure for use in superalloys. Current Information

suggests that the purity level of this cobalt is limited and may be unsuitable

for superalloy production. Clearly the composition of this material should be

determined immediately if this stockpile is to have any value to superalloy

producers.

SUMMARY

Chromium must lead any list of critical elements in the aircraft gas turbine

industry, with cobalt being ranked second in importance. Chromium is indispensable for high temperature components, whereas some substitution for cobalt is

feasible. The critical nature of these elements tends to be obscured by their

general availability. A stockpile source for chromium is essential, with superalloy production requiring electrolytic grade material. A cobalt stockpile may

be necessary for superalloy applications for which no substitute alloys can be

developed. This stockpile should contain high purity material with acceptable

concentrations of trace elements. Research has demonstrated that some cobalt substitution can be achieved readily. A coordinated research and development effort

in this area would be valuable.

T21-5
CRITICAL ELEMENTS IN THE

AIRCRAFT GAS TURBINE INDUSTRY

• CHROMIUM

• COBALT

ESSENTIAL FOR OXIDATION AND HOT

CORROSION RESISTANCE.

NO SUBSTITUTES KNOWN.

NON-DOMESTIC SOURCES.

READY AVAILABILITY.

POTENTIAL FOR DISRUPTION OF SUPPLY

WIDELY USED IN SUPERALLOYS.

SOME SUBSTITUTES KNOWN.

NON-DOMESTIC SOURCES.

READY AVAILABILITY.

POTENTIAL FOR DISRUPTION OF SUPPLY

T21-6
CHROMIUM

• ESSENTIAL FOR OXIDATION AND HOT CORROSION RESISTANCE

• LIMITED POSSIBILITIES FOR MINIMIZING DEPENDENCY IN

ALLOYS

• PROTECTIVE COATINGS REQUIRE SOME SUBSTRATE RESISTANCE

TO OXIDATION, HOT CORROSION

• CLAD COMPOSITE COMPONENTS

• STOCKPILE SOURCE : PURITY

T21-7
COMPUTER HARMONIZED APPLICATION TAILORED (CHAT)

ALLOY SELECTION SYSTEM

• DEVELOPED FOR SUBSTITUTION OF NICKEL IN

CARBURIZING STEELS

• POTENTIAL FOR SIMILAR APPROACH TO

OPTIMIZATION OF CHROMIUM CONTENT

T21-8
COBALT

• CONTRIBUTION TO ALLOY STRENGTH.

SOME CONTRIBUTION TO OXIDATION RESISTANCE.

• CURRENT SUBSTITUTION OF LOW-COBALT ALLOYS

FOR HIGH-COBALT ALLOYS USING COMMERCIAL

COMPOSITIONS.

• DETERRENTS TO ALLOY DEVELOPMENT:

QUALIFICATION

% OF PRODUCT COST

AVAILABLE SUPPLY

PROPRIETARY DATA

• STOCKPILE SOURCE : PURITY

T21-9
COBALT SUBSTITUTION RESEARCH

• STATISTICALLY DESIGNED EXPERIMENTATION

• IDENTIFY OPTIMUM COMBINATIONS OF ELEMENTS

FOR REQUIRED PROPERTIES

• ASSESS POTENTIAL FOR COBALT SUBSTITUTION

T21-10
WROUGHT ALLOYS ii

• COMBUSTOR CAN ALLOYS:

HAYNES ALLOY NO. 188 (Co-22Ni-22Cr-14W-0.08La-0.08C)

INCONEL 617 (Ni-22Cr-12.5Co-9Mo-lAl-0.07C)

• COBALT NOT ESSENTIAL IN NICKEL-BASE ALLOYS

• NIMONIC 86 (Ni-25Cr-10Mo-0.03Ce-0.05C)

• LOWER COBALT IN HAYNES ALLOY NO. 188

T21-11
CAST ALLOYS

• TURBINE VANE ALLOYS:

FSX 414 (Co-29Cr-10Ni-7.5W-0.25C)

X-40 (Co-25. 5Cr-10. 5Ni -7. 5W-0. 75Mn-0. 75Si -0. 5C)

• CARBIDE STRENGTHENED NICKEL-BASE ALLOYS

• STRESS RUPTURE AND OXIDATION RESISTANCE EQUIVALENT

TO FSX 414.

• X-40 SUPERIOR TO CURRENT EXPERIMENTAL ALLOYS IN

STRESS-RUPTURE PROPERTIES

T21-12
WEAR RESISTANT ALLOYS

• COBALT-BASE ALLOY NO. 6

(Co-28Cr-4W-3Ni-3Fe-lSi-1.2C)

• SUBSTITUTE NICKEL-BASE ALLOYS

(Ni-29Cr-5/9Mo-8/25Fe-lSi-2C)

T21-13
SUMMARY

• CHROMIUM AND COBALT HEAD LIST OF CRITICAL

ELEMENTS

• CHROMIUM - STOCKPILE

PURITY

• COBALT - SUBSTITUTION

STOCKPILE : PURITY

• COORDINATION OF RESEARCH AND DEVELOPMENT

EFFORTS
COMAT PRESENTATION

Stanley Pass

Allied Chemical Corporation

T22
January 28, 1981

Slide 1

Slide 2

COMAT PRESENTATION

Stanley Pass

I would like to thank you for inviting Allied Chemical

to participate in this workshop on critical materials. It is

a distinct pleasure for me to present the innovative developments that are taking place in the Consolidated Metal Products

Department of Allied Chemical Corporation in Rapid Solidification

Technology and new alloy development. We believe that our efforts

represent a major breakthrough in Powder Metallurgy and could

have a significant impact on the critical material shortage.

In the last several years great strides have been made

in developing technology, such as Rapid Solidification, that

enables us to make high quality powder for aerospace applications. Thus, one will be able to conserve critical materials

by consolidating powder to near-net shape and minimize the

machining wastes. At Allied Chemical, work is going on that

may enable us not only to conserve critical materials but

offer a performance effective substitute for these alloys.

Allied Chemical has extended the RST processes developed

for Metglas amorphous alloy ribbon and has produced metal

powders of alloys with microstructures that could not be made

by conventional casting technology. These alloys are nickel

and iron-based, containing molybdenum and boron but generally

do not contain any chromium, cobalt, or tungsten. We beLieve

that some of these alloys will be able to replace cobalt and

other strategic metals in certain application areas without

T22-1
Slide 3

Slide 4

COMAT Presentation - Page 2

loss of performance and perhaps even improved performance.

Although the applications that I will be discussing today

are not directly related to aerospace systems, they nevertheless

would have an impact in this area.

We have identified a number of application areas that have

been chosen for initial field testing and market entry. These

are shown on the next slide. Metal cutting tools, of course,

are used extensively in the aerospace industry. Approximately

10% of the cutting tools sold in the U. S. serve that sector.

HOT EXTRUSION DIES made from our alloys are being tested in

the aluminum and copper industry. Aluminum extrusions play

an important part in the manufacture of air frames and surfaces.

Plasma spray powders made from Allied Chemical alloys are being

evaluated for us as a possible replacement of cobalt-containing

superalloy hardfacing powders. Recently, interest has been

generated in considering the use of coatings in aerospace

applications such as coating turbine blades. Our alloys are

also being tested for wear applications. One area where this

might impact on the aerospace industry is its use in helicopter

gears and bearings. The objective in that case would be to

increase performance over conventional gear steels.

The next slide shows some of the typical materials used in

the applications we just reviewed. One can see that cobalt,

tungsten and chromium are all necessary components of these

alloys. Approximately 12% of the cobalt consumption in the U. S.

is used in metalwork cutting tools. Similarly , over 50% of

tungsten is used in these application areas. Success of our

alloys may be able to reduce the consumption of the critical

materials

.

T22-2
COMAT Presentation - Page 3

Slide 5

Slide 6

Slide 7

I would like to spend several moments reviewing some of

the data that we have obtained to date that makes us very

enthusiastic about our process and alloy systems. The initial

cutting tool data was developed for us at M^etcut Research,

a consultant, in Cincinnati. They recommended that we use M-42,

a premium grade HSS containing 8% cobalt, as a standard. They

used optimum tool geometry for the M-42 a^nd our material was

ground to the same geometry; no attempt was made to optimize it.

The next slide shows the turning test results. As one

could see, the M-42 performed optimally in the range of 75-100 SFPM..

Allied Chemical's CMP alloys 7007 and 3065 showed the same tool

life at approximately twice the cutting speed. Thus, significant increases in productivity or too.l life are indicated for

our alloys.

The next slide shov;s the results of the interrupted cut,

namely, face-milling tests. The data ac/ain shows that the

Allied Chemical CMP alloys out-per formed the M-42 HSS by over

100% improvement in tool life, at the s.ame cutting speed, or

the ability to significantly increase cutting speed and thus

productivity while maintaining an acceptable tool life. We

realize that these data are still preliminary. However, the

potential we have shown to significantly improve cutting tools

without the use of strategic mateirials is enthusiastically

supported by a leading HSS cutting tool manufacturer with whom

we are embarking on a mutual de^'/elopment program.

CMP alloy 7025 is another nlloy that has shown great

promise. The next slide showsj the properties of CMP 7025 compared with Stellite 6. The excellent retention of high

temperature hardness and the. abrasion wear resistance make this

alloy look attractive for h igh temperature applications where

T22-3
Slide 8

Slide 9

CQMAT Presen tati-on - Page 4 wear and abras^ion resistance are important properties. Therefore, we embarked on a program of field testing this alloy in

copper and aluminum hot extrusion and aluminum die casting.

This program is; still underway but the preliminary results look

very promising. The next slide presents some of the comments

that the users have stated about CMP 7025. In a report to us,

a major aluminum company stated that the CMP alloy "performed

very similar to carbide but much better than Hot Work Steel".

The user anticipates being able to use our alloy for complex

profile dies where carbide proves to be too brittle. In another

field test copper alloys were extruded through our die insert,

with billet temperatures of 800 to over 900 °C. The copper

company reported obtaining over twice the die life with our alloy

compared to the coba'Lt-based die they presently use.

At Woodstock Die Casting, which is a subsidiary of Allied

Chemical, field testing is still underway. Over 20,000 castings

on our die have taken place and the product quality has remained

constant and the die^ has shown no wear. Woodstock also reported

that the die gave exc'ellent release even when subject to extremes

in temperature variations and molten metal flow. These field

tests are continuing and we expect that in the near future several

alloys will have been quialified for commercial use. Our technical people ibelieve that the success of the CMP

alloys is based largely on our unique Rapid Solidification Process. Our process is diffei'ent, and we think better, than conventional PM processes and e'ven other RST processes. For

example, CMP powders have a very consistent and homogeneous microstructure. Thus, each powder particle is essentially identical

to each other and this is true because each particle is cooled

T22-4
COMAT Presentation Page 5 unidirectionally at over 1 million °C. In at oirii zation processes

one obtains aggregates of large crystallites c'r powders that

range from amorphous, to cellular to dendritic structures. The

presence and location of ultra-fine grain intermetallic compounds in consolidated CMP materials result in g^reatly improved

chemical and mechanical properties. Our RST p>ro'cess also provides excellent yields without requiring large an^ounts of recycle

or powder classification. The flowability and tap density are

good and the process is scalable. For example. Allied has a Metglas casting unit that can process 1 ton/hr of material.

In summary, we believe that Allied Chemicall has developed

a unique, economic RST process and excellent nsiw alloy systems

that could have a significant impact on both improved product

performance and a reduction in the use of strategic materials.

We have described some of the areas that we are actively engaged

in. I would like to show, in conclusion, some areas that we

Slide 10 believe we could make significant contributions . In some of these

areas we have already begun discussions with government agencies.

We solicit the comments and interest of both the government and

private industry to pursue these possible applications as well

as any other areas that may be appropriate.

Thank you very much.

SF/amw

1/28/81

T22-5
ALLIED CHEMICAL CORPORATION

CONSOLIDATED METAL PRODUCTS DEPT.

(CMP)

T22-6
NEW DEVELOPMENTS IN .METALLURGY AT ALLIED CHEMICAL

• UNIQUE ALLOY SYSTEMS

- IRON & NICKEL BASED

- CONTAINS MOLYBDENUM & BORON

- LITTLE OR NO COBALT. CHROMIUM

OR TUNGSTEN

•RAPID SOLIDIFICATION TECHNOLOGY

T22-7
INITIAL APPLICATION AREAS

•METAL CUTTING TOOLS

. HOT WORK TOOLS

• PLASMA SPRAY HARDFACING POV'DERS

•WEAR RESISTANCE PARTS

T22-8
SOME OF THE ALLOYS THAT

CMP ALLOYS ARE BEING EVALUATED IN COMPARISON

V W Mo Co Fe

M-42 3.8 1.2 1.5 9.5 8.0 Bal —

T-15 4.0 5.0 12.0 — 5.0 Bal —

WC — — 85-94 — 15-6 — —

Stelli te*6 29 _ 2 5.5 Bal 3 3

*Registered Trademark of Cabot Corp.

SF

1/29/81 T22-9
CD

CD

CO

CD

C\J

CD

cn

CD

CD

LO

o

CO

o

o

CT)

o

o

LO

S9inu!i/\|— 9(n | 00i

T22-10

Cutting

Speed—

Ft./Min.
lool

Life—

Inches

of

Work I

ravelled

Single Tooth Face Milling 4340 Steel

Effect of Cutting Speed and Tool Material

70

60

50

40

30

20

Cutter; See Below

Ar;10° ECEA;10°

RR;10° Relief: 10°

CA;45° NR: .030”

Feed: .010 in. /tooth

Depth of Cut; .1 00”

Width of Cut: 2”

Set Up; On Center

Cutting Fluid: Soluble Oil (1 ;20)

10

100 150

Cutting Speed— Ft./Min.

200

T22-11
PHYSICAL PROPERTY COMPARISON

STELLITE 6* VS. ALLIED CHEMICAL CMP 7025

Property

Hardness, Rockwell C

Room Temp.

@ 1000°F

@ 1200°F

@ 1400“f

Elongation

Modulus of Elasticity Charpv V-Notched Impact St. Yield Strength @ 0.2% Offset Ultimate Tensile Strength Abrasive Wear, CM^/Rev

Wrought

Stellite 6

Allied Chemical

CMP 7025

45 50 34 50

31 48

26 31 0-1% 4-6%

28.0 M psi 31.0 M psi 4 ft-lb 3.5 ft-lb 92 ksi 205 ksi 148 ksi 265 ksi 32.5 34

•Registered Trademark of Cabot Corp.

T22-12
PRELIMINARY FIELD TESTING RESULTS

LOOK VERY PROMISING

ALUMINUM HOT EXTRUSION - CMP ALLOY

"PERFORMED VERY SIMILAR TO CARBIDE

BUT MUCH BETTER THAN HOTWORK STEEL"

COPPER HOT EXTRUSION - CMP DIE OUT

PERFORMED COBALT-BASED DIE BY OVER

TWO TO ONE

ALUMINUM DIE CASTING - CMP DIE GIVES

EXCELLENT RELEASE EVEN WHEN SUBJECT

TO EXTREMES IN TEMPERATURE VARIATIONS

AND MOLTEN METAL FLOW
ALLIED CHEMICAL'S RST PROCESS

•UNIFORM & HOMOGENEOUS MICROSTRUCTURE

•GOOD POWDER PROPERTIES i.e.

FLOWABILTTY. TAP DENSITY

•EXCELLENT YIELD

•COOLING RATE OF OVER 10^°C/sec

•PROCESS SCALABILITY

T22-14
POSSIBLE FUTURE APPLICATIONS

GAS TURBINE & DISKS

AIRCRAFT STRUCTURAL COflPONENTS

PENETRATOR & ARMOR

HELICOPTER GEARS S BEARINGS

T22-15
Report of Working Group on Critical Raw Materials

Chairman: Russell C. Babcock

Bear Creek Mining Company

Prepared at the Public Workshop

on

Critical Materials Needs of the Aerospace Industry

February 9-10, 1981

R1
WORKSHOP ON CRITICAL MATERIALS NEEDS

OF THE AEROSPACE INDUSTRY

February 10, 1981

Final Report of Workshop Working Group on Critical Raw Materials

Russell C. Babcock, Jr.

Following the outline presented by the workshop conveners,

this working group discussed the presentations of February

9th and additional factors in the area of critical raw

materials. Our response is presented below in outline form:

I. Materials Issues of Primary Concern

A. Overview Issues

Executive Branch

Materials supply has for some time been jeopardized

by the lack of coordination of activities

within Executive Branch, i.e., inter-relationships

of minerals-related actions and decisions

between Interior, Defense, Commerce, FEMA,

etc

.

Foreign Policy

There has been little sensitivity in foreign

policy to minerals issues, i.e., raw material

supplies, on-shore versus off-shore processing,

etc

.

Capital Formation and Business Law

There has been a trend away from the stimulation

of capital formation to support domestic

plant, resource investment, etc., and therefore materials availability.

Labor Productivity

General productivity declines bear on offshore versus on-shore movement of various

stages of raw material supply and processing.

Research and Development

Fiscal, tax and other policies influence

the degree of stimulation of research and

development, technology expansion,

and the retention of developed technology.

Rl-1
Critical Materials Workshop

Page Two. . .

B. Particular Issue List

Power Pricing

Tariffs —Import/Export impacts

Processing Facilities

Environmental Controls

Public Lands —Access

Inventory of status, i.e., open vs. withdrawn

Inventory of minerals potentials

Stockpile —Critical: Our existing stockpile

what do we have and what

do we need?

Private : Should we have one, and

if so, how would we stimulate

its growth?

Exploration/Development of Domestic resources —how

do we stimulate this initial step?

Tax and Depreciation

Antitrust

DOD procurement policy

Sea Bed Mining Law

Patenting

Balance of Payments

R/D stimulatiuon in areas of "pure" research (vs.

applied

)

II. Possible Federal Action to Consider

1. Establish a White House Council on Materials and

Minerals comparable in size and authority to

CEQ. Such a Council should be statutory; i.e.

- it will require that a legislative proposal

be recommended in the October, 1981, report

[sec 5(c)(2) of Act] to Congress.

2. Extend Defense Production Act indefinitely.

Full utilization and funding of Title III is

recommended, supporting domestic resource development and production through such things as "price floor" supports, which are not likely to

be large expenditure items.

3. A private sector Advisory Board to the Council

on Minerals and Materials is recommended.

Rl-2
Critical Materials Workshop

Page Three . . .

4. Land Use Area

Defer further wilderness decisions pending

minerals inventory of lands in question.

Extend cut-off date for mineral entry into

wilderness from the current 1983 date,

indefinitely

.

Inventory land status in order to determine

what is open for, versus withdrawn from,

mineral exploration and production.

Consider establishment of "Areas of Critical

Minerals" comparable to the Bureau of Land

Management Areas of Environmental Concern.

Regulation/administration of minerals exploration/

development/production must be reduced to

workable levels.

Insist that minerals be addressed in U.S. Forest

Service and Bureau of Land Management Planning.

5. Define our critical mineral resource position:

that is to say, stimulate the public and private

sector inventory of the potential of public

lands, including withdrawals, parks, military

reservations, etc.

6. Stimulate recovery of minerals from non-conventional

oj: marginal resources through technology development by theBureau of Mines, i.e., on low grade

or refractory ores, etc.

7. Promote meetings to discuss state-of-the-art technology

across industry-Government-academia lines, and

to stimulate technology transfer between these

sectors.

8. Develop better control of legal processes to avoid

delay and waste, such as those which occur in

the present intervener process.

9. .Tax law changes should be considered where possible

to stimulate domestic production, domestic

processing, capital formation, etc.

10. Review Stockpile for quantity, quality and form

(useability) , of current stockpiled materials,

and consider "barter" method and use of rotating

funds as availabile to fill needs.

11. Stimulate private stockpiling through tax incentives

or other means, such as low interesjt loans.

12. In Defense contracts, make interest on borrowed

funds an allowable contract; cost

.

R1-3
Critical Materials Workshop

Page Four. . .

13. Foreign policy should give priority consideration

to our foreign mineral supply needs, and insure

their availability to us.

14. Law-of-Sea negotiations should be restructured

to ensure U.S. corporate participation in deep

sea mining and to protect adverse technology

transfer

.

15.

Review in detail the reasons for the off-shore

shift minerals processing (Al, Cr, etc.) and

make specific recommendation to alleviate this

problem. Raw materials will not be developed

without processing facilities.

Ill .Appropriate Materials for Detailed Discussion in Secretary's

Report

It was felt that the Issues and actions in Sections I,

II above should be considered in the context of the

following materials:

A. Principle consideration should be given to Ti,

Cr, Co.

Others (Al, Cb, Ta, etc.) should be mentioned

where problems, behavior, etc., are different

in order to point out the specific aspects of

some of these other materials.

The reasons these principle materials should be

considered are:

1. Ti A high volume, low cost item; i.e.,

24% of a military aircraft

possible domestic sources

imported from friendly countries

on-shore technology and processing

is critical step

critical to airframe and engine

2. Cr supply is at risk (South Africa)

critical engine component

on-shore technology problem

a medium volume, low-to-moderately price

item

3 . Co - a low volume, high cost item

- aerospace use is 40% of U.S. use

- stockpile is 45 MMlb short

- local sources are possible to develop

- local manufacturing a , possibility

- very large body of recent data

- Title III application possible

- imported from potentially unfriendly nation

Rl-4
Attendance List

Critical Raw Materials

Jim Owens

A. J, Macone

Russell Babcook

Jim Beizer

Bob Pabrie

W, L, Shafer

James T. Dunham

Harry L, Light

Walter Lander

Jack R, Clifford

Robert A. Brumwell

Albert Paladino

John V. O'Conner

Steve Johnson

George Watson

Gerald Houck

H. Eugene Frymyer

E, N. Hegge

Richard Seibert

Judith La Drew

Douglas Smith

Frank Keckeissen

Paul E, Swenson

Harold E, Goeller

Claire K. Blong

Ken Poster

Ken Young

Marwood Rand

Howard K. Andersen

Judith Munday

Larry Hall

Russell L, Richards

Langtry E, Lynd

Scott F, Sibley

John T, Kummer

Leonard L. Pischman

Thomas L. Asche

Roger C, Maples

Dennis Browne

David J. Latzke

George J. Weihs

Walter T. Joyce

Gene Kingsbury

George Economos

William J, Kaestner

Armondo J, Lopex

John McKinley

Paul Helton

Laszlo Pasztor

Marylyn Biviano

Prank J. Kelly

Jerome Persh

Anna C. Fraker

Tatiana Roodkowsky

Rtl-5

U. S, Dept, of Commerce

U, S, Dept, of Commerce

Bear Creek Mining Co.

American Mining Congress

Air Force - Systems Command

House Interior Committee

U. S. Bureau of Mines

U, S, Bureau of Mines

U, S. Bureau of Mines

U. S. Dept, of Commerce

Cabot Mineral Resources

National Bureau of Standards

Copper Range Co.

Anderson & Pendleton (law firm)

Ferroalloys Assn.

American Iron & Steel Inst,

Carpenter Technology

Fiber Materials, Inc,

National Assoc, of Manufacturers

Pratt & Whitney Aircraft

.

Horanda Mining Inc.

Lockheed

Reputblic Steel Corp.

Oak Ridge Nat'l Lab

(Union Carbide Corp.)

FEMA

OSD/DOD

BI E/DOC

Wyman Gordon Co,

U, S, Bureau of Mines

Dept, of Commerce/ITA

FIMA

GSA Office Stockpile Trans,

U. S, Bureau of Mines

U, S. Bureau of Mines

U, S, Bureau of Mines

Central Intelligence Agency

G. E. Aircraft Engine Group

McDonnell-Douglas

Canedian Ehibassy

Sundstrand Aviation

Union Carbide Corp.,

Metals Division

Freeport Minerals Co,

Dept, of Commerce

Nat, Acad, of Sci./MNAB

Consultant - Metals/Minerals

U. S, Dept, of 'commerce

National Bureau of Standards

RMI Titanium

Dravo Corp,

Federal Bnergency Mngmt, Agency

U.S. Bureau of Mines

OSD

National Bureau of Standards

Chamber of Commerce of the

United States
Report of Working Group on Critical Engineering Materials

Chairman: F. E. Akin

The Boeing Company

Prepared at the Public Workshop

on

Critical Materials Needs of the Aerospace Industry

February 9-10, 1981

R2
Report of Workshop Working Group on Critical Engineering Materials

Group No. 2 was assigned the responsibility for Critical Engineering

Materials. At the outset I want to mention that our group made no attempt

to identify all critical aerospace materials. Those materials discussed

are considered to be examples only. They are, however, probably the most

critical materials we have encountered. Our discussion further centered

primarily on conversion from raw materials state into mill product form.

We left the question of available raw material to Group No. 1 and the

question of conservation and substitution to Group No. 3. Since no other

usage criteria was provided we considered the past two years' experience to

be the base upon which our discussions were predicated. The first engineered

material item to be discussed in detail by our group was titanium mill

products. Among the many concerns that we had were the user's inability to

accurately forecast on a timely basis the extent of his need. Next was our

concern about the ability to melt adequate quantities and convert the

melted titanium sponge into ingot form. Following that was the concern

about large press capacity where the ingot in turn would be formed into

large forgings. Further, we felt that the consistent application of Title

I of the Defense Production Act had the opportunity to create problems.

And finally, the potential withdrawal of Japan from exportation of sponge

appeared to leave a potential shortfall in sponge total supply.

Potential actions we recommend to correct the above problems included

the extension of the Defense Production Act, establishment of a suitable

multi-year funding program within the military services, a Government

guaranteed market to the limit of current stockpile authorization, examination of current Government stockpile policies, perhaps to include a broadened

R2-1
applicability which would allow economic and commercial usage rather than

strategic usage only, and the provision of incentives for commercial expansion

and for the creation of commercial stockpiles.

Our next items for discussion were cobalt and chromium. We concluded

it proper to combine the two because the comments that were generated

seemed to apply equally to each of them. We found no known problems of

fabrication regarding either of these two materials. Rather, the problems

as we foresaw them had to do with the availability of cobalt and chromium

in their elemental forms. The actions as we saw it fell to Group 1 relative

to availability of the materials, under Group 3 concerning additional

conservation and/or development of substitute actions. Again we felt the

Government stockpile policy should be examined and perhaps adjusted in the

same manner as recommended for titanium.

It was the consensus of our group that the next item for consideration

be tantalum. This conclusion was reached because titanium is a fundamental

item used in the development of an airplane. Cobalt and chromium seem to

apply mostly to usage by power plant developers, whereas the third major

portion of any weapon systems and most commercial applications include

significant electronics; and tantalum is necessary to the timely and satisfactory development of electronics as we now know them. We didn't find a

significant problem in the conversion of tantalum to mill products and in

that sense we considered it to be in approximately the same category as

cobalt and chromium. However, in the actions discussed we felt the emphasis

on the development of timely substitutes to be even more important and more

urgent than in the other instances because of the question relative to the

amount of tantalum currently in reserve. We also felt that here again.

Government policies relative to the availability of Government stockpiles

R2-2
p

for commercial and economic use and also the advocation of previously

recommended incentives for commercial organizations to develop and maintain

commercial stockpiles of tantalum would be equally applicable.

I

The last item of material that our group thought worthy of inclusion

in this group was graphite fibers. The reason for inclusion of graphite

' fibers is the greatly increased demand that we currently anticipate. While

industry responsible for supplying graphite in fiber and tape cloth form

I has indicated that they can and will increase their capacity to support

I needs; that is, as the needs are presently perceived. We had reason to

I believe that needs will develop faster than industry currently anticipates

and therefore there could be a gap between demand and available supply. We

i

' suggest that this product requires very close monitoring in the future and

some attempt to anticipate what forward usage may amount to compared to

what we have experienced in the past.

A review of our earlier deliberations left us with the impression that

our biggest single problem was the conversion of titanium into mill product

. form. While this includes plate and extruded sections fundamentally the

problem seems to lie in availability of large presses. It was therefore

M our final conclusion that the supply of raw material, rather than known or K anticipated fabrication problems are our chief concern. I

R2-3
Attendance List

Critical Engineering Materials

Name

Leon N. Karadbil

John Geron

Choon K. Quan

Ron Heitzmann

Greg Barthold

Ken Stalker

Harris Burte

R. L. Jaffee

Jack Odell

Sally I. Couluris

William V. Ward

Wm. A. Owczarski

Kenneth W. Mlynarski

Jim Kerr

C. J. Beigle

Wm. A. O’Donnell

Jim D. Martin

Virgil Ketterling

F. E. Akin

Bob Parsons

Stan Channon

C. G. Scofeld

John Cremeans

Robert Hemm

M. A. Steinberg

W. L. Hodge

R. C. Maples

Robert J. Hensberger

Robert A. Ricciuti

S. V. Radcliffe

W. W. Minkler

Organization

Commerce-OIM

Aerospace Industries Assn.

Bureau of Mines

Grumman Aerospace Corp.

Alcoa

General Electric Co.

A.F. Nateruaks Kab

EPRI

Wyman Gordon Co

.

Grumman Aerospace Co.

INCO Alloy Products, Co.

Pratt & Whitney Aircraft

Bureau of Mines

Rockwell Int.

Rockwell Int.

Sperry Gyroscope,

Sperry Corp.

General Dynamics Corp.

Dept, of Commerce

AIA, MMC (Boeing)

Dept, of Commerce

Institute for Defense

Analysis

Forging Industry Assoc.

Bureau of Ind. Econ. , DoC

Nat. Materials Adv. Board

Lockheed

McDonnell- Douglas

McDonnell- Douglas

Dept, of Commerce/ BIE

Dept, of Commerce/BIE

National Forge Co.

TIMET

Position

Dir. , Industrial Resourc

Division

Dir. for Materiel

Physical Scientist,

Deputy Director

Mfg. S Matls. Engr.

Mgr. , Tech. Progress

Consulting Engineer

Dir. , Metals S Ceramics

Division

Director, Materials

Marketing Mgr.

Economic Spealist

Market Analysis

Mrg. Tech Planning

Physical Scientist

Director, Material

Mgr. Material

Mgr. Materiel

Corporate Mgr.

,

Procurement

Senior Economist

Vice chairman, AIA, MMC

Dir. , Tech Staff

Tech. Staff

Mktg. Director

Dir. , OIERA

Ex. Secretary, Acting

Ex. Director

Dir. , Technology

Br. Mgr. - Purchasing

Dir. Gen. Proc.

Program Material,

Metalworking Equip.

Industry Specialist

Vice Pres., Corp. Dev.

Vice President

R2-4
Substitution, Conservation, Specialized Recycling,

and Higher Performance Materials

Chairman: Professor Ellis D. Verink, Jr.

University of Florida

Prepared at the Public Workshop

on

Critical Materials Needs of the Aerospace Industry

February 9-10, 1981

R3
WORKSHOP ON CRITICAL MATERIALS NEEDS OF THE AEROSPACE INDUSTRY

February 9-10, 1981

Workshop Comments and Recommendations

Regarding Substitution, Recycling, High Performance Materials

I, Driving Force

The driving force behind an Interest In Substitution, Recycling and High Performance Materials derives from several types of threats.

(a) Economic Threats

Domestic manufacturers must contend with competitive technology from

abroad. The ready availability of critical materials to non-USA based

manufacturers could permit greater latitude In design and may result In

the ability to achieve higher performance as the result of being able

to use critical materials. US manufacturers may also feel competitive

pressures to the extent that local pricing concessions on critical

materials are given to non-USA manufacturers by local agencies and/or

governments

.

(b) Geopolitical Threats

The geopolitical threat resides primarily in the import dependence of

the USA for supplies of critical materials, particularly Co, Cr, Ta, Cb

and Tl.

(c) Regulatory Threats

The host of regulatory restrictions imposed by US government agencies

such as OSHA, EPA, CPA, etc., poses a significant threat to the ability

to discover and exploit potential domestic reserves of critical minerals

and to recover and/or reprocess scrap economically. Such threats

already have forced closing of significant US productive capacity.

II. Responses

The need to obtain critical materials for use dictates several levels of response.

These Include (a) a physical stockpile of critical materials of the proper quantity , composition and form to accomodate stockpile goals, (b) the development of an "intellectual" stockpile of research and development Information as well as the accompanying

manufacturing technology to permit rapid substitution for unavailable critical

materials should the need exist, (c) a positive Industrial effort to seek suitable

substitute materials and/or develop designs, etc., which permit use of less critical

materials or alloys using smaller quantities of critical materials, (d) an Informed

but aggressive effort to alter regulations, tariffs, taxes, patent laws, etc., to

unblock the discovery, extraction, production and recycling use of domestic materials.

R3-1
The alternative to these scenarios is to retain the status quo, do nothing, and

trust to the good nature of the rest of the world!

III. Substitute Materials

(a) Definition

The term "substitute materials" as used herein Includes (1) alloys containing

small amounts (down to zero content) of critical materials, (2) alternate

materials Including non-metallic materials such as carbon/carbon composites,

(3)

higher performance materials such as RST materials, (4) dual structure/

dual property materials such as turbine discs with the hub designed for

fracture toughness and the rim designed to resist creep, (5) materials which

xaay have somewhat less than optimum life or properties, but which could be

expected to provide useful service until critical materials become available.

(b) Comments

(1) Materials considered to be particularly critical include Co, Ta, Cr,

Cb and Ti. In the case of T1 the critical aspect is lack of domestic

productive capacity rather than lack of mineral reserves.

(2) There is need of a means to "qualify" alternate materials for use without Jeopardizing the patent interests of producers or suppliers.

(3) Financial support is needed to assist producers and users in developing

confidence in substitute materials. This is particularly Important to

potential second and third tier manufacturers concerned with new

prototypes.

(4) New alloy research and development should focus on systems based on

available minerals (e.g., Nl, Fe, Ti, Al, Mo, W) as well as on alloys

containing only small additions of the designated critical materials

(particularly Co, Cr, Cb, Ta)

.

(b) Opportunities

Several research and development opportunities are available which would

reduce the overall need for critical materials. These include:

(1) Composite materials (e.g., graphite/polyimide)

;

(2) Rapidly Solidified metals (RST products);

(3) "Forgiving" ceramics (l.e., ceramic materials with enhanced ductility);

(4) Use of new alloys which are strengthened by intermetalllc compounds

(e.g., Fe-Al and Ti-Al);

(5) Aluminum powder metallurgy products;

(6) Special coatings (perhaps containing critical materials) which can be

used over substrates not containing critical materials thereby reducing

the total requirement for critical materials;

(7) Use of computerized methods for alloy and hardware design as well as

for control of manufacturing.

R3-2
3

IV. Reclamation

(a) Definition

Reclalmable material Includes such mechanically cleanable materials as shop

floor scrap and sludges such as are generated in electrochemical or chemical

machining as well as non-revertlble scrap materials such as contaminated

scrap, used parts, etc.

(b) Comments

(1) To optimize the processes. It will be necessary to Identify and track

scrap through all stages of manufacture and collection to maintain

"pedigree,"

(2) Regardless of Item 1 above, there will be build-up of trace elements.

The techniques of extractive metallurgy should be employed to purify

such materials.

(3) Designers and users must be persuaded to avoid unnecessary demands for

virgin or super-purity material.

(4) A national commitment to recycling and conservation Is required which

Includes the non-export of scrap considered critical.

(5) The aerospace industry now uses approximately 3Z of the chromium supply.

The purity requirement for aerospace needs are extremely high (require

vacuum-melt grade) . Research should be encouraged aimed at devising

methods to produce the equivalent of vacuum-melt grade from reclaimed

material.

(6) Because of the potential usefulness of such procedures, government

activities In support of private Industry should be enhanced with

regard to extractive metallurgy technology.

V. Life Extension

The total requirement for critical materials can be reduced by extending the l^e

of existing structures. This may be accomplished by (1) refined repair and maintenance

procedures and (2) by use of special coatings as noted above. Efforts at life extension

should receive high priority In order to make optimum use of existing hardware thereby

softening the need for critical materials.

VI. Processing

(a) Definition

Processing techniques which minimize the total amount of critical materials

In process will extend the available supply. Such techniques Include those

which produce parts "near net shape (NNS)." Included are:

R3-3
(1) Investment castings;

(2) Powder metallurgy products. Including RSR powder techniques;

(3) Stepped extrusions;

(4) Inertial welding;

(5) Etc.

Every encouragement should be given to adopt the NNS philosophy In manufacture.

VII. Generic Recommendations

There are a number of concepts which. If Incorporated, would provide broad support

to the accomplishment of the alms of conservation of critical materials. These Include

(a) Institution of multi-year procurement practices;

(b) Development of new ways of doing business with the government;

(c) Expansion of development efforts In the field of manufacturing technology

(MANTECH)

;

(d) Involve second and third tier suppliers In development of prototype components and provide financial Incentives as appropriate;

(e) Encourage government/ Industry/university Interaction;

(f) Encourage technology transfer;

(g) Emphasize Incentives. These need not always be direct financial Incentives,

but may take the form of credits, patent Implications, etc.

R3-4
CRITICAL MATERIALS FOR THE AEROSPACE INDUSTRY

Summary of Workshop on Substitution,

Recycling and High Performance Materials

Drivers

Economic Threats

Technology

Availability of Critical Materials

Design for Performance

Geopolitical Threats

Availability

Regulatory Threats

EPA, OSHA, CPA, etc., etc.

Responses

Physical Stockpile

"Intellectual” Stockpile

Research and Development

MANTECH

Industrial Involvement

Legal

Regulatory

Etc.

Alternative

Status Quo

Substitutes

Definition

Low to Zero Critical Materials Content

low cobalt alloys

Alternate (non-metalllc) Materials

carbon/carbon

High Performance Materials

RST, etc.

Limited Life

acceptably reduced capability

Dual Structure/Dual Property

duplex turbine discs

R3-5
Substitutes (continued)

Comments

Targets: Co, Ta, Cr, Cb, T1 (productive capacity for Tl)

Need means to qualify alternative materials while preserving

patent Integrity

Need funds for developing confidence

Focus on new-base alloys from available materials (Nl, Fe, Tl, Al,

Mb, W) with restricted amounts of critical materials

Opportunities

Composites

RSP

"Forgiving” ceramics

Intermetalllcs

Powder metallurgy aluminum alloys

Coatings

CAD/CAM

Reclamation

Definition

Shop floor scrap/sludges, non-revertlble scrap/used parts

Comments

Identification and tracking of scrap

Trace element bulld-up

Unnecessary demands for virgin material

National commitment to recycling and conservation (and non-export)

of scrap

Upgrading recycling methods using extractive metallurgy technology

(e.g., produce vacuum-melt grade Cr from scrap)

Life Extension

Definition

Repair, coatings

Processing

Definition

Near Net Shape Concepts

R3-6
Generic Recommendations

Multi-Year Procurement

Innovative Methods of Dealing with Government

Expanded MANTECH

Involve Second and Third Tier Manufacturers

Government/Indus try/University Collaboration

Technology Transfer

Extractive metallurgy technology

Emphasize Incentives

R3-7
Attendance List

Substitution, Conservation, Recycling, High Performance

Name Affiliation Office Phone

Ellis D. Verink, Jr.

Allen G. Gray

N, E, Promisel

S. L. Blum

Gil Ugiansky

Charles Hoys

Bnanuel Horowitz

Charles L. Trozzo

Jeremy J. Walters

Robert L, Caton

S, W, Palmer

Jim Gardner

Jack Knox

P, H. Butler

Skip Jones

E. P, Whelan

R, V. Jarrett

Randy Myers

Diana Friedman

John de Barbadillo

Louis lanniello

A. W. Ruff

Joseph E, Hunter

James S. Grichar

Ted Lynch

Arden L. Bement

Mel Siegel

Renice Kerr

Chet Sims

Stan Siegel

Saul Isserow

Murray A, Schwartz

Stan Margolin

Michael A. Greenfield

G, Dana Brabson

Dale A, Weiler

Univ. of Florida

ASM

Consultant

Northern Energy Corp,

National Bureau of Standards

Allied Chemical

Johns Hopkins University

George Washington Univ.

AVCO Lycoming Div.

Carpenter Technology Corp.

Union Carbide Carbon Products

BIE

Cemented Carbide Producers As

Comm ere e/ITP./OIM

Commerce/ITA/OCP

Climax Molybdenum Co.

Columbia Univ.

Commerce Dept.

Comm ere e/BI E/OBI

Inco Res. & Dev. Center

U.S. DOE

National Bureau of Standards

General Motors Research

Bureau of Mines

Versar, Inc.

TRW

Pratt & Whitney Aircraft

UTRC

General Electric-GTD

Aerospace Industries Assn.

Army Materials & Mech. Res.

Bureau of Mines

Arthur D. Little, Inc.

NASA

USAF/AFWAL/MD

Arthur D. Little

3^2-1454

338-5151

622-3426

2Q2-Q250

921-2761

455-2417

338-7916

676-7125

378-8211

371-2281

784-3757

377-1218

588-3781

377-2322

377-5124

761-2300

280-2815

566-7416

566-77^2

753-2761

353-3428

921-2966

575-2851

634-1083

750-3080

383-2762

840-5060

727-7172

518) 385-9481

202) 347-2315

Ctr. (617) 923-3501

202) 634-1147

617) 864-5770

202) 755-2364

,212) 764-8363

(617) 264-5770

R3-8
ABRAHAM HURLICH

Consulting Metallurgist

Registered Professional Engineer

7467 Mission Gorge Road, Sp. 247 December 8, 1980

Santee, Ca 92071

Phone: 714/448-2440

Dr. John B. Wachtman, Jr. Director, Center for Materials Science

National Bureau of Standards

Room B308, Bldg. 223

Washington, D. C. 20234

Dear Jack:

In reply to your request for a listing of ’’materials needs cases" related to

national security, I have contacted a significant number of materials experts in

the aerospace industry, both airframe and engine, to obtain their viewpoints on

current and anticipated materials problems. While a number of isolated materials

and materials related problems were described, there were several which seemed

to be common to much of the industry. These are the following;

1. Long delivery times are presently being encovmtered in procuring

aluminum, steel and titanium alloy forgings and extrusions. It is

feared that this problem will become particularly acute during the

1982-83 time period if presently anticipated aircraft production

requirements eventuate.

2. Concern was expressed regarding the inability of the present largest

U.S. forging presses (50, 000 tons) to produce the larger forgings

that the aerospace industry would like to design. New presses of

75, 000 - 100, 000 ton capacity are desired. Concern was also ex- pressed that the present two 50, 000 ton presses, one at WymanGordon and the second at Alcoa, are now approximately 25 years

old, may possibly be near the end of their useful lives and may

encounter more frequent breakdowns.

3. Long delivery times are experienced in procuring consumable vacuum

arc melted steel and nickel base alloys. This was attributed to the

limited number of such melting furnaces presently available within

the industry.

W1
To: Dr. John B. Wachtman, Jr.

December 8, 1980

Page 2

4. Many companies encounter difficulties in procuring required

quantities of specialty aluminum, steel and titanium alloys, and

have had to change designs to accommodate less desirable alloys.

For example, a company may switch to the 2024 aluminum alloy

in place of the more desirable 2124 alloy because the supplier

quotes a much longer delivery time for the latter alloy or else

refuses to take less than a mill order which may be much larger

than the required quantity. The same problem is encountered in

the procurement of extrusions.

5. While no immediate problem exists, concern was expressed about

the uncertain future availability and price of cobalt. Attention was

called by the airframe people to the increasing use of high strength

cobalt bearing steels such as 9 Ni-4 Co for landing gear components

and to cobalt bearing high speed tool steels used for drills and cutters.

The engine people are worried about the high temperature turbine

blade alloys. The latter are also concerned about the availability of

chromium, columbium and tantalum for high temperature alloys. The

development of substitute alloys containing lesser amoimts of critical

and strategic materials requires extremely costly and time-consuming

experimentation involving both laboratory and engine testing, and this

will not be done without government support.

The general viewpoint throughout the aerospace industry is that there are no

constraints at present on any of the materials used by the industry, and none are

foreseen before 1982. Due to the expected pickup in production of both civilian and

military aircraft during 1982-83, materials shortages and very long lead times will

be e^erienced. This could be very severe in the case of forgings and extrusions.

Aerospace materials people see the need for forging presses of larger capacity

than currently exists in the U. S. It is felt that no single forging con^)any can afford

the huge capital outlay necessary to design and manufacture such equipment. If any

are to be built, the Air Force would probably have to do it, as was done in the case

of the 50, 000 ton presses.

Wl-1
To: Dr. John B. Wachtman, Jr.

December 8, 1980

Page 3

Opportunities exist for the research and development of alternative means

of producing large shaped parts by powder metallurgy, hot isostatic pressing,

superplastic forming and other lower energy methods. In view of problems

experienced in obtaining forgings, extrusions and vacuum melted materials,

it appears that an increased effort in R&D on materials processing is warranted.

Few of the problems listed above are materials problems per se. When

discussing specific metals and alloy ingredients, I got generalized rather than

specific comments. Everyone is concerned about possible future problems in

the availability and price of cobalt, chromium, columbium, tantalum, titanium,

etc. Some concern was even e^qjressed about aluminum since its ores are largely

imported from abroad. The titanium industry has been characterized by sharp

ups and downs as major programs requiring large amounts of titanium are started

up and then cancelled. The industry is understandably reluctant to embark upon

large expansion programs without some guarantee that their products find a market.

More Japanese and Soviet titanium sponge is now reaching the U.S. market and

Chinese sponge is becoming increasingly available. This has eased the sponge

shortage which existed a year or two ago.

While stockpiling of cobalt, chromium, tantalum and other allo3dng elements

can solve the problem of materials availability for military products, the aerospace

industry is very concerned about their commercial products. They feel that their

non-military products will become increasingly vulnerable to fluctuations in materials availability and prices.

The names of the people I contacted during my telephone survey are listed

in the enclosure. Most of them head up the M&P groups of their respective companies and have had long experience in the aerospace industry.

Very truly yours.

A. Hurlich

cc: N. E. Promisel

Wl-2
Enclosure 1

Aerospace Industry Contacts

Name

Dr. Morris Steinberg

Rodney Simmons

Donald Goehler

Dr. Robert Gassner

Roger Maples

Larry Koib

Alan Hauser

William Owzarski

Dr. Ray Wojcieszak

Company

Lockheed

Lockheed-Burbank

Boeing

McDonnell-Douglas

McDonnell-Douglas

North American-Rockwell

Pratt & Whitney

Pratt & Whitney

General Electric

Position or area of interest

Corporate staff asst.

Materials & processes

It

Tl If

Head, materials procurement

Materials & processes

If ft

Mgr, Technical Planning

Materials & processes

Wl-3
CANNON-MUSKEGON corporation

BOX 500 MUSKEGON, MICHIGAN 4 0 <143

6 1 6 / 7 S b - I 6 8 ; T W X 5 I 0 / 3 9 4 / 4 G 2 O

Dr . A1 len G . Gray

Technical Director

American Society for Metals

Metals Park, OH 44073

Dear Al I en:

Your letter of 3 December 1980 invites suggestions as to possible activities or areas of involvement for consideration by the newly formed ASM Critical Materials

Committee. One area of concern to me is the increasing involvement of the Government into the basic foundation of American success, the Free Market System. When

ever the nation suffers from material shortages, some segments of private industry

actually seek and encourage more Government action through economic manipulation

of the Stockpile supplies. If this Committee can serve any useful purpose, it can

represent private industry and the basic American system of free enterprise. A

free market, if left to operate, will be self correcting. It is happening today in the Cobalt market and will happen elsewhere also if left alone to function.

One of the initial charges in the new Public Law 96-479 is a specific materials

need case related to national security, to be prepared by the Commerce Department

The initial study will be cobalt as a possible threat to security. Pursuant to this

case, Dick Quigg and I met with the Commerce Department last 14 November 1980

and presented our thoughts relative to the Free Market, cobalt substitution, and

specific recommendations relative to the application of the cobalt Stockpile.

Subsequent to the meeting, our thoughts were summarized in writirig. A copy of

this summary letter is attached for your perusal. Perhaps this might stimulate an area for fruitful involvement of this ASM Committee.

Sincerely

,

CANNON-MUSKEGON CORPORATION

( .

• '

Rof|('r F. Schwrr

I ’resident

RES/jm

Enclosure

W2
CANNON-MUSKEGON corporation

BOX 506 MUSKEGON. MICHIGAN 49443 616/755-1681 - TWX 510/394/4620

1 4 November 1 980

U. S. Department of Commerce

International Trade Administration

Washington, D. C. 20230

Attention: Mr. Frederic W. Siesseger

Di rector

Resources Policy Division

Dear Fred:

Dr. Quigg and 1 appreciated the opportunity to meet with you and Mssrs. Todd and

Jones on Thursday, 30 October 1980, regarding your study of U.S. dependence on

cobalt imports at the direction of the National Security Council. The overall subjects

of critical materials. National Materials Policy, and stockpile application are of

particular interest to us at Cannon-Muskegon . Cobalt has relatively recently tended

to receive most attention and is generally considered to be of great strategic importance.

It should not be assumed, however, that cobalt is the only critical metallic element with

which we should be concerned. Our nation is dependent upon foreign sources for many

raw materials, several of which are more critical than cobalt and less easily substituted.

This is a broad problem and there are no quick or easy answers. It is amazing, however,

how relatively neatly the free rr.arket system, if allowed to operate, will sort things out and prioritize those key applications where the short supply material is required and

cannot be readily substituted. This is happening in the cobalt market today; and, if allowed to operate, the market will balance itself.

I'll attempt in the subsequent paragraphs to organize and condense our comments relative to cobalt. Hopefully, this summary may be helpful and assist in clarification of some of our thoughts.

Supply Considerations

The combination of the relatively depressed state of the economy has reduced cobalt

usage; however, more significant is the impact of inventory adjustment. As business

cycles mature, inventories become imbalanced and recycle material assumes a greater

share of the total usage, causing the requirement for virgin material to decline at an

accelerated rate. These economic factors, combined with the significant substitution

which has occurred, has resulted in an over-supply condition. This short term oversupply is expected to correct itself once inventory adjustment is completed. . .expected

in early 1981 . The long term outlook is for the over-supply condition to short term

develop as additional new supplies come into the market from new and expanding

producers.

W2-1
CANNON-MUSKEGON CORPORATION

Mr. Frederic W. Siesseger - 2 - 14 November 1980

Price Considerations

The historic price for cobalt has been two times (x2) the price of nickel; cobalt's

most competitive metallic element. At the present time, cobalt is over seven times

(x7.3) the price of nickel, which has caused significant economic dislocation and substitution to occur. The former balance will not be restored until the price is permitted

to move freely. It should be assumed that over the long term, cobalt is largely interchangeable with nickel in nickel-base superalloys.

The two major producing countries (Zaire & Zambia) have, in my opinion, little to gain in the short term, which would encourage them to reduce the established price of

$25 per pound. The governments of both countries have very serious and immediate

cash income problems. The income from the copper and cobalt mines represent 95%

of Zambia's export income and a similar share in Zaire. This income is needed to finance the countries' needs for basic commodities such as food and essentially all manufactured goods. These needs are immediate and, hence, the producer countries

have little concern for long term market impact or deterioration. It was observed

during my recent visit to Zambia that the most concerned people are the ex-patriots, or the minority white population. This small minority of technological experts are

treated as temporary residents and are not regarded as permanent citizens. They are

not entitled to citizenship nor will they ever be regarded as Zambians. The black

Zambian population tend to be predominantly concerned with immediate needs of their

country

.

The existing over-supply is considered to be temporary, primarily a result of inventory

adjustment by the market and secondarily a result of substitution successes. However,

the artificially supported $25 per lb. price will economically justify expansion of

worldwide cobalt production and eventually a cobalt glut will develop. This is perhaps

five (5) years in the future.

In brief, I believe that the primary producers will strive to hold the $25 per lb. price

level until the long term supply excess develops and price erosion occurs naturally.

Meanwhile the two producing countries will have maximized their export incomes and

bought additional time to develop the domestic agricultural industries and reduce dependency on the mining industry.

Substitutions

Significant substitution has occurred in all Industrial segments, including aerospace

and high temperature superalloys. Markets lost or significantly reduced include:

automotive radio speaker magnets

paints and dryers

tool steels

hard facing and coating wear resistant alloys

The major aerospace market for high temperature alloys is the turbine engine disc

application. Several nickel-base alloys containing cobalt have been traditionally used

in this heavy application, including Waspaloy (13% Co), Rene' 41 (1l7o Co) and Astroloy

(17% Co). The engine designers are gradually changing the disc alloy to an established

W2-2
CANNON-MUSKEGON CORPORATION

Mr. Frederic W. Siesseger - 3 - 14 November 1980

cobalt free nickel-base Alloy 718 (0% Co). This single substitution at Pratt & Whitney

alone will reduce cobalt usage by an estimated 600,000 lbs. /year starting about now.

As years pass, the impact of this substitution will continue to grow as the smaller

and older engines are phased out and newer designs utilizing cobalt free or reduced

cobalt containing alloys are selected. It is considered feasible that superalloy

cobalt usage could be reduced by 50% over the long term.

All substitution programs should be considered on a short, medium, and long term

basis. Aerospace tends to be medium and long term in nature and also rather difficult

and slow to switch back should cobalt price drop and availapility become assured.

Research and Development

We know of no active research, alloy or market development programs which are

targeted toward expanding cobalt base alloy usage. The only known exception to

this statement is the rare earth (sumarium) cobalt magnet development which will

potentially help to retain a market share (albeit reduced) for cobalt in the developing

miniature electric motor requirement for automotive and appliance markets.

If the dearth of cobalt R & D expenditures continues, markets will continue to slip

away and nothing will be developed to replace them. Cobalt usage could predictably

slip to half of the previous usage level.

Stockpile Inventory Level

It is our understanding that the Federal Preparedness Agency is authorized a three

year emergency inventory of critical materials. The present 40 million pound cobalt

inventory is estimated to be about four (4) times the total present U.S. cobalt usage.

In 1977, the agency increased the cobalt goal to 85 million pounds, a sum which would

be about eight (8) times the present total usage. This increased stockpile goal does

not appear to be justified by any measure of market usage.

Stockpile Purpose

The stockpile is intended to "meet the needs of National defense only and is not

intended for economic and budgetary purposes,". . . .as apparently occurred in the

1970-76 period. It is my opinion that no regulatory agency can equitably judge

market needs and control product prices better than the free market system. All

previous attempts to adjust the stockpile and effect economic price influence has

resulted in a "sell low and buy high" policy. Regulatory agencies should not, 1 believe, attempt to effect economic price control by adjusting the supply and demand

balance. It creates an artificial imbalance and fails to shake out the less critical

needs for the material in short supply.

W2-3
CANNON-MUSKEGON CORPORATION

Mr. Frederic W. Siesseger - 4 - 14 November 1980

Stockpi le Qual ity

The cobalt which is in the current stockpile inventory is not suitable for the production

of high temperature superalloys. The alloys of today require only vacuum grade electrolytic cathode cobalt metal which was not even being commercially produced when

the stockpile was collected. The analytical methods of the time were not well established to identify and quantify the low level traces which could be disaster to the

performance of a superalloy.

As we discussed, two recommendations were proposed:

1 . Accurately analyze each lot of cobalt material, using a well respected

analytical facility which is experienced in the determination of trace levels

of the following important elements (very few laboratories in the U.S.

have this capability):

Pb; Bi; Sb; As; Se; Thi Cd; 2n; S; Hg; Ag

2. Once the trace and tramp element content is determined, a refining procedure

could be established and the stockpile could be gradually upgraded to present

day requirements . An ongoing program which would continually upgrade

10 to 15% of the inventory would assure that a portion of the stockpile would

be available for immediate emergency use should the need develop. At this

time, the Country is ill-prepared to meet any sort of emergency requirement

from the stockpile inventory.

Cannon-Muskegon has the capability to vacuum induction refine some grades

of substandard cobalt and has demonstrated performance with the Chambishi

brand material. This technique may not, however, be the best technique to refine all impurities which may be present in the stockpile cobalt. Until the

exact quality is established, determining the best refining procedure would

be speculation, at best.

In summary, our recommendations are as follows:

1 . Do not increase the present stockpile quantity. Readjust the goal back to

the present 40 million lb. level.

2. Upgrade 10 to 15% of the existing stockpile. It would first be necessary

to accurately analyze the individual lots to determine what refining procedures

might be most suitable. Some experimentation may be necessary.

3. Establish an on-going upgrading program to assure that a certain percentage

of the stockpile is always of current superalloy quality and available should an emergency develop.

W2-4
CANNON-MUSKEGON CORPORATION

Mr. Frederic W. Slesseger - 5 - 14 November 1980

4. Encourage domestic development of cobalt mining capacity, if the product

and process can be economically justified on projected cobalt prices of

$10/15 per pound. In other words, remove environmental and ecological

constraints but do not guarantee market economics.

5. Ignore the present economic imbalance created by the controlled prices

established by Zaire and Zambia. The market will correct itself if left alone

.

6. Do not use the stockpile for economic price control and market regulation.

The free market will do this more efficiently.

Hope our comments were helpful. Please call if we may be of further assistance.

cc: Honorable James D. Santini, U.S. House of Representatives

Honorable Guy VanderJagt, U.S. House of Representatives

HonorabI e Carl Levin, U.S. Senate

Honorable Don Fuqua, U. S. House of RepresentativesMr. Tom Harkins, Special Metals Corporation

Mr. Don Furman, Howmet Turbine Components Corporation

Mr. Martin Smith, Cabot Stellite Corporation

Sincerely

,

President

RES/jm

W2-5
ASARCO

Simon D. Strauss December 16, 1980

Director

Dr. John B. Wachtman, Jr.

Director, Center for Materials Science

National Bureau of Standards

United States Department of Commerce

Washington, D. C. 20234

Dear Dr. Wachtman:

In response to your letter of December 11, I am setting forth

on behalf of the Minerals Availability Committee of the American

Mining Congress some concepts in relation to the National

Materials and Minerals Policy, Research and Development Act of

1980. You point out that the Secretary of Commerce is required

to identify and submit to the Congress "a specific materials

need case related to national security, economic well-being and

industrial production which will be the subject of the report."

You then state that a Department of Commerce task group believes

that the aerospace industry would be a good choice for the first

study

.

I should like to suggest a different approach — one that would

focus on a materials supply situation rather than a specific industrial needs conponent. My suggestion is that the case be

focused on the problems arising from a group of essential industrial

materials that are at present chiefly obtained by the United States

either from southern Africa or the Soviet Union. These materials

are chromium, cobalt, platinum metals, and manganese. Southern

Africa and the Soviet Union are also dominant factors in the world

production of vanadium, asbestos and gold. For these materials,

however, industry in the United States is well protected through

Canadian or domestic sources (in the case of asbestos and vanadium)

and in the event of an emergency would have access to the U. S.

Treasury's huge stocks of gold.

I attach a tabulation which is based on the most recent published

information from the General Services Administration* with respect

to the strategic stockpiles of chromium, cobalt, platinum metals

and manganese. From these figures it appears that holdings of

chromium and manganese in the aggregate are in line with stockpile goals — although the breakdown of individual categories

shows deficiencies in such items as ferrochrome and ferromanganese.

ASARCO Incorporated 120 Broadway New York N Y innn^ 7-30 W3
Dr. John B. Wachtman, Jr, 2 December 16, 1980

The picture is quite different for cobalt and the platinum

metals. The stockpiles held are far below present goals. Under

current market conditions the cost of bringing stockpiles up

to the targets would be substantial. For exair^le, cobalt is currently selling in the range of $20 to $25 a pound. Any attempt

to purchase as much as 45,000,000 pounds might well cause prices

to rise. Similar consequences would result from endeavors to

acquire the platinum metals.

Serious efforts by major corporations are currently under way to

develop cobalt resources in Idaho and platinum resources in

Montana. In both instances work is being hampered and costs

increased because of stringent environmental restraints. Whether

these deposits will prove viable is not yet known. However, in

both instances the private sector approaches might be encouraged

and stimulated if the government would use existing authority

under the Defense Production Act to offer long-term contracts

to acquire stipulated quantities of materials at firm prices.

Because of the volatile nature of both the cobalt and platinum

markets, a major uncertainty facing a new producer of these commodities is a matter of price. In World War II, in the Korean War,

and again to a limited extent in the Viet Nam conflict the government succeeded in expanding domestic capacity to produce materials

through such floor-price contracts.

Domestic resources of both chromium and manganese were activated

in World War II through the construction of government-owned

plants operated at cost by the private sector. These resources

are of poor grade and doubtful viability. Nevertheless should

political or military developments make African and Russian resources unavailable, as a fall-back position the Departments involved under the 1980 legislation referred to should up-date

information on these resources. They should have an emergency

plan for reactivation on the drawing boards — but not iir^) lamented.

There may be opportunities to identify resources of some of these

materials in Alaska, where exploration to date has been limited.

Alaska was a producer of platinum metals during World War II.

Special attention should be given to these possibilities in the

light of the restrictions on Alaskan land embodied in recent

legislation.

Because of the limitations of time, I have not been able to clear

this letter with my colleagues on the AMC committee. I am

W3-1
Dr. John B. Wachtman, Jr. 3 December 16, 1980

arranging to have a copy of this letter and of your letter to

me circulated to the committee with the request that if the

members have supplementary comments they forward them to the

AMC, which in turn will pass them on to you.

Sincerely yours.

Enclosure SIMON D. STRAUSS

cc: Mr. J. Allen Overton, Jr. - encs.

W3-2
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W3-3
CHROMALLOY A CORPORATION WEST NYACK. NEW YORK 10994 • TtUFHONt 914 350-5900 TELEX 131490

RICHARD P. SEELIG

V{CE CHAIRUAN EMERITUS

December 17, 1980

Dr. John B. Wachtman, Jr.

Director, Center for Materials Science

United States Department of Commerce

National Bureau of Standards

Washington, D. C. 20234

Dear Dr. Wachtman:

In order to respond effectively to your letter of 20 November

and our prior telephone conversation, I have communicated

with three members of the Critical Materials Committee. The

purpose of this task force is to formulate a response to your

requirements in an effective and accurage manner. Unfortunately,

because of the holiday season and other factors, there has been

some delay in obtaining the necessary data. I will communicate

with you as soon as I have the information needed.

We are most anxious to cooperate with you on this project and

appreciate your interest.

Very truly yours

Richard P . S e e 1 i g

\

RPS : ms

W4
WEST NYACK. NEW YORK 10994 • telephone 914 358-5900 ^^1^ TELEX 131490 CORPORATION

RICHARD P. SEELI6

December 9, 1980

Dr. John B. Wachtman, Jr.

Director, Center for Materials Science

United States Dept, of Commerce

National Bureau of Standards

Washington, D. C. 20234

Dear Dr. Wachtman:

As per your request on the telephone with Mr. Seelig

today, we are enclosing herewith a list of the names and

addresses of the members of the Critical Materials

Commi t tee

.

Very truly yours

,

( Mrs . ) Mafi e SI i nn Secretary to Mr. Seelig

Enclosure

W4-1
CRITICAL MATERIALS COMMITTEE

Mr. Richard P. Seelig

Vice Chairman Emeritus

Chromalloy American Corp.

169 Western Highway

West Nyack, N. Y. 10994

Mr. Elihu F. Bradley

Chief Materials Engineer (Ret)

Pratt & Whitney Aircraft

Engineering Bldg. 2-D

400 Main Street

E. Hartford, Ct. 06108

Dr. Allen G. Gray

Technical Director

American Society for Metals

Metals Park, Ohio 44073

Mr. Robert Halverstadt

Pres i den

t

Special Metals Corp.

Metals Settlement Road

New Hartford, N. Y, 13413

Mr. Julius J. Harwood

Director Materials Sciences Lag.

Engineering & Research Staff

Ford Motor Company

Rotunda Drive

Dearborn, Michigan 48121

Dr . Robert I . Jaf f ee

Electric Power Research Institute

3412 Hillview Avenue

P. 0. Box 10412

Palo Alto, California 94303

Mr. Frederick A. Kaufman

Vice President

Teledyne, Inc.

P . 0 . Box 151

Latroble, Pa. 15650

Mr. William D. Manly

Senior Vice President

Cabot Corporation

125 High Street

Boston, Massachusetts 02110

Mr. Nathan E. Promisel

12529 Davan Drive

Silver Springs, Md. 20904

Mr. Robert Raudebaugh

Executive Director

U. S. National Commission

World Energy Conference

1620 Eye Street

Washington, D. C. 20006

Mr. Adolph 0. Schaefer

Executive Director

The Metal Properties Council, Inc.

345 East 47th Street

New York, N. Y. 10017

Dr. Raymond L. Smith

President

American Society for Metals

Metals Park, Ohio 44073

Dr. Morris J. Steinberg

Director, Tech. App.

Lockheed Aircraft Corp.

Dept . 03-1 0 , Bldg. 61

A-1 , P. 0. Box 551

Burbank, California 91520

Mr. Charles Yaker

President & Chief Executive Officer

Howmet Corporation

475 Steamboat Road

Greenwich, Connecticut 06830

Qr. William R. Prindle

Executive Director

National Materials Advisory Board

National Research Council

2101 Constitution Avenue

Washington, D. C. 20418

W4-2
Members of Critical Materials Committee - Page 2

Mr. D. M. Moon, Manager

Metallurgy Research Laboratories

Westinghouse Electric Corporation

Research & Development Center

Pittsburgh, Pa. 15235

Mr. Roger Schwer, President

Cannon-Muskegon Corporation

2875 Lincoln Street

Muskegon, Michigan 49443

Dr. Leroy R. Curwick

Section Manager

High Temperature Materials

Inco Research & Devel op . Cen ter , I nc

.

Sterling Forest, Suffern, N.Y. 10901

Mr. Edward Burrell, President

International Nickel Co., Inc.

One New York Plaza

New York, N. Y. 10004

Mr. Frank M. Richmond

Vice President-Tech. Director

Cyclops Corporation

Uni versal -Cycl ops Specialty Steel Div.

650 Washington Road

Pittsburgh, Pa. 15228

Mr. James A. Ford

Director, Research & Development

Cabot Corporation

125 High Street

Boston, Ma. 02110

Mr. Hugh Morrow III, Chairman

Materials Availability Activity

Climax Molybdenum Company

One Greenwich Plaza

Greenwich, Ct. 06830

Mr. Rod Simenz

Department Manager

Materials & Produc i bi 1 i ty Organization

Lockheed-Cal i fornia Company

Burbank, California 91520

Dr. George E. Dieter, Jr.

National Materials Advisory Board

National Research Council

2101 Constitution Avenue

Washington, D. C, 20418

W4-3
PRATT&WHITNEYAIRCRAFT GROUP

East Hartford, Connecticut 06108

18 December 1980

Mr. John B. Wachtman, Jr.

Director

Center for Material Science

U.S. Department of Commerce

National Bureau of Standards

Washington, D.C. 20234

Dear Mr. Wachtman:

The Pratt & Whitney Aircraft Group, United Technologies Corporation, would be most happy to assist in the case study required

by the National Materials and Minerals Policy Research and

Development Act of 1980. Our Company is one of the largest

consumers of cobalt and titanium in the country and we could

not build either military or commercial engines without these

and a number of other materials such as chromium and tantalum.

Because of our absolute dependence on these materials, this

subject has received considerable attention by our top management. I have enclosed three papers which provide a brief

description of our views; one by Harry Gray to the House Committee on Armed Services , and one by Alexander Haig to the Mines

and Mining Subcommittee. The third enclosure is my testimony to

the Senate Science, Technology and Space Subcommittee in support

of HR-2743.

We support the selection of the aerospace industry for the case

study because it is dependent on all of the critical materials.

Dr. William Owczarski, (203) 565-3508, who has Group-wide responsibility for all materials and manufacturing technology, will be

our focal point if we can assist you in this study.

Sincere ly

PRATT & raiTNEY AIRCRAFT GROUP

R. C. Mulready ^

Vice President, Technology

RCM : apm

Enclosures

uurrei

HECHNCM^IES W5
Industrial Capacity and Mobilization

Testimony by

Harry J. Gray

Chairman and Chief Executive

United Technologies Corporation

before

The House of Representatives

Committee on Armed Services

Washington, D.C.

September 17, 1980

W5-1
Mr. Chairman and members of t^he Committee. Thank you for the

opportunity to appear before you. I am Harry J. Gray ,. chai rraan and chief executive officer of United Technologies Corporation.

In total contract volume, our company is the nation's third

largest defense contractor. We provide the Defense Department

with such products as jet engines, helicopters, advanced radar

and conmand and control systems, and solid rocket boosters.

If there were a national emergency today, I seriously doubt

that our nation could mobilize its industrial base in time to

make an appreciable difference in sustaining a war effort. It

might take as much as two years before we’d see any real increase

in production of war materiel. And that's an optimistic estimate.

America's defense industry — particularly the aerospace

segment of it — already is working at virtually full capacity.

Factories are full and backlogs in many cases are at record

levels. We're putting out just about all we can, right ntiw.

Increasing capacity in times of national need does not mean

simply switching from commercial to military production, or

building new factories and filling them with workers, much as we

did when we mobilized for World War II.

Many complex factors affect our ability to gear up military

production, or production of any kind today.

-moreW5-2
- 2 -

New manufacturing facilities are certainly one of the keys

to increasing production. Today, it takes a company three and a

half to five years to build a new factory of any size and get-it

to full production.

If you're fortunate enough to find an existing facility to

buy, it takes about a year to convert that facility, get machines

in, train people, and produce just the first parts. It can take

another year to two years to bring that factory to full capacity.

Building the plant and getting the equipment are only

part of the job. During the Second World War, we brought in

people who never before had worked in a factory — farmers,

clerks, housewives. They were trained — in a matter of weeks —

to build aircraft engines. And they built thousands of them.

Today, however, you can't just take someone off a farm or out

of a kitchen and expect him or her to build aircraft engines.

The technology is too advanced, the tolerances too tight, the

equipment too sophisticated. It takes three years for a machinist

apprentice to cctnplete his rigorous course. It takes the better

part of a year to retrain someone from producing autos, for

example, to work on high technology aerospace parts. The schools

aren't turning out enough of these young people as it is.

If we were under full mobilization, with all the advantages

the government can place, we might be able to squeeze 18 months

out of the longest time it takes to get to full production in a

new plant. But it wouldn't be possible to build a factory, train

the people, and get the required high technology manufacturing

tools we need in anything less than three years.

-moreW5-3
-3-

One obvious answer is to convert commercial production to

military production. Use materials for military products that

would have been used for commercial products. Pull production

workers off commercial jobs, and put them onto military jobs.

This is only a partial solution. Take as an example our

Pratt & Whitney Aircraft Group, whose production of jet engines

is split about equally between the coinmercial and military

markets.

By turning off our commercial production, we'd be able to

process the military material we had in hand much faster and produce the engines ahead of schedule. Initially, the Air Force and

the Navy would see a surge in the number of engines they’d

receive

.

The same priorities that affected us would affect our

suppliers, and material and parts for military engines would come

into our plants more rapidly than currently scheduled.

VJe'd all be looking at raw material already ordered and in

the pipeline, and we'd determine what could be converted from

commercial parts to parts for the military engines. In some

cases, that material is common to both. If the raw material

hasn't already been converted into billets, say, for a commercial

engine, it could be made into billets for a military powerplant.

But if the billets have been made, it's too late to convert.

In addition, a large number of parts for high technology

military engines contain material that isn't used in commercial

powerplants

.

-moreW5-4
-4-

Even though there would be an initial surge in military

production, as soon as the material in the pipeline was used up,

military engine production would drop -- because of lead time.

In 1978, normal lead time for one of our military jet engines

was IS months. Today the Air Force has to order that engine 41

months before delivery. Certainly not all parts of the engine

take more than three years. But critical parts, made from large

titanium forgings, do. It doesn't take us any longer to build

the engine than it did in 1978 . All of the increase results f rcsn

the availability — and lead time —of certain critical

materials, such as titanium.

Before 1978, there had not been any significant increase in

lead time for that particular engine in at least four years.

Since April of this year, though, its lead time has increased by

five months.

Long lead time is an industry-wide problem. Our competitors

feel it. Our suppliers feel it, and ultimately our customers

feel it. Our ability to respond to national emergency suffers

from it.

The availability of critical materials is one of the most

crucial parts of the puzzle.

It is obvious that the United States does not have a rational

non-fuel minerals policy. The threat is that we will be faced with

a "materials OPEC" in certain metals. The first place we're

likely to see the results of the squeeze is in national defense.

When it comes to certain critial materials the United States

is a have-not nation. We are frighteningly vulnerable to overseas producers.

-moreW5-5
For certain materials, such as chromium and cobalt, we are

close to 100 percent dependent on overseas sources. without

chromium and cobalt, we couldn't build high-performance military

aircraft engines. And remember that our primary sources of these

critical metals are unstable or unfriendly nations. We don't

mine any chromium ore in the United States.

Pratt & Whitney Aircraft is the largest single user of titanium in the world. The raw material that yields titanium is

abundant on the earth's surface. But the industrial capacity to

convert that raw material to what we need -- titanium alloys --

is woefully short. As a result of supply and demand, prices have

shot up, and lead times have increased two-fold since 1977,

Another problem we face: the supplier network that forms the

base of our country's defense industry is shrinking at an

alarming rate. Since 1967, the number of companies involved in

aerospace production has declined by more than 40 percent. In

1967, there were approximately 6,000 companies in the industry.

Today, there are only about 3,500.

As a result of this drastic shrinkage in the number of

suppliers, there have been dramatic increases in prices in this

sellers' market.

To make matters worse, high costs in terms of capital and

technological expertise are real barriers keeping new companies

from entering such critical areas as closed die forgings of

superalloys, sheet metal weldments, and the mining, smelting and

production of critical raw materials.

-moreW5-6
VJe are trying to ease our dependence on suppliers through

material substitution, new processes, and long-term purchasing

commitments. We're also entering agreements for new sources in

other countries who are pushing to develop their own aerospace

capability. But we can't be dependent on foreign suppliers in a

time of national emergency.

You are all well aware that industrial productivity

improvement in the United States is not keeping pace with that of

other industrialized countries, such as Germany and Japan. Our

plant and equipment are aging. We're not seeing innovation in

new manufacturing processes at home that we're seeing abroad.

Increasing production to meet the requirements of a national

emergency is a complex problem. It is not just affected by our

ability to build new plants and equipment for production and to

staff them with highly- s killed workers. It also is affected by

political and economic forces outside of the United States over

which we have no control.

The United States should move to meet these problems without

delay.

First and foremost, I think, there must be mobilization

planning at the government level. It's been tried before, but it

seems that people lost interest.

Back in 1975, the military services and defense industry made

some preliminary studies. Our company spent 18 months on a study

of critical engine production. We determined how quickly we could

deliver with, and without, industrial preparedness measures. We

looked at mobilization planning costs and schedules, and what

future mobilization work we'd have to do.

-moreW5-7
Our report was submitted to the government, and virtually

nothing has been done by the government since then.

Perhaps it’s time to re-establish an office of mobilization

planning, headed by a cabinet level officer, working closely with

the Department of Defense and with industry. Such an office, at

such a level of government, would be able to operate independently.

It wouldn't have to face the conflict that could occur, say, in

the Department of Defense, over whether to spend funds on

procurement or on industrial reserves.

Second, it’s imperative that we develop and implement a national minerals policy that will release this country from

dependence on non-U. S. sources.

This pol icy should do all it can to encourage extensive

exploration at home for sources of critical materials.

The. government owns one third of the nation's land. These

lands contain an estimated total of 85 percent of our oil reserves,

a significant share of gas, timber and scarce minerals. We don't

know for sure how much of these resources are being considered

for wilderness designation. But we do know that if this land is

closed to exploration, we'll never find out.

Third, we've got to increase our stockpiles of critical

material. The Soviets are doing it, and the results can be seen

in the marketplace. Equally important, we've got to cycle material

in and out of our stockpile, so material will be kept up to date

and it will become an integral part of the working defense

production system.

-moreW5-8
It's clear# too# that we need reserve capacity to produce the

materiel we'd need in an emergency. 3ut it would be counterproductive to have plants# machine tools and workers idle and

waiting for the emergency that would put them to work,

V7hy not build up that capacity# train the workforce# and put

it to work# building today what the military would need in an

emergency tomorrow. Give the Air Force the planes it would need#

man them with pilots# and support them with mechanics. In the

long run# the costs of such a program might even be lower than

that of holding capacity in reserve. And the nation would be

prepared. I believe private industry would make the necessary

investment in plant and equipment and in people. The reward

would be worth the risk.

Finally# we must change the way we purchase defense hardware.

As it is now# the procurement system penalizes investments for

cost reduction# new process development# stockpiling of critical

materials# and for productivity increases. Long-term profit

incentives should be provided for industry to make the capital

investments that improve productivity and lower the cost of

government products. The current practice of negotiating from a lower cost base# after cost improvements# must be discontinued.

Industry loses its rights to proprietary processes used in

goverament business. Government regulatory reporting requirements

inhibit our operational decision-making. We are inadequately

funded for long lead items. We are financially at risk for

contractual coverage before contracts have been initiated.

-moreW5-9
The Department of Defense should have some leeway in spending

future dollars on high-priority items like spare parts. They

shouldn't be tied to the one-year budget cycle, particularly now

that lead times are pushing out to three years.

Finally, if America wants an adequate level of preparedness

capable of reacting to a national emergency, there must be

improved tax incentives now for business investment associated

with the defense industry -- such as rapid accelerated

depreciation for new plant and equipment.

The question of mobilizing our industrial base is a complex

one. And there isn't any easy answer. But we must recognize now

that we have a serious problem in the erosion of our defense

industrial base. We must find the resolve to face up to it. As

a nation, we simply can't afford to wait any longer.

####
R. C MULREADY

SEP 2 5 1980

TESTIMONY by

Alexander M. Haig, Jr.

President and Chief Operating Officer

United Technologies Corporation

Mines and Mining Subcommittee

Committee on Interior and Insular Affairs

U.S. House of Representatives

September 18, 1980

W5-11
Mr. Chairman and Members of the Committee. I am grateful for

this opportunity to appear before you and to offer my views on our national

plight on strategic materials. These views will reflect not only my limited

recent experience as President and Chief Operating Officer of United Technologies

Corporation, the nation's third largest defense contractor, but perhaps more

importantly, some thirty-five years of public service in the national security

area. The latter experience included 4 years duty with the National Security

Council and almost five years as the Commander of NATO forces in Europe.

At the outset, Mr. Chairman, I should like to compliment you for

the way you have drawn attention to the gravity of a problem of fundamental

significance not only to the United States but also to those industrialized

states worldwide sharing our values.

Personally, I have long been troubled by what is rapidly becoming

a crisis in strategic and critical materials — a crisis rooted in our own

and our allies’ dependence on imports for key materials.

The United States is inordinately and increasingly dependent on

foreign sources of supply for many of the raw materials critical to our defense

and our economy. In 1950, only 4 of the 13 basic industrial raw materials were

imported in quanties of 50% or more. Today, we have reached that level of import

for 9 of the same 13 materials. But as serious as the problem is to us, it is

far more so to our industrialized allies and friends around the world. For

example, the nations of the European Economic Community have total import

dependence on ten strategic minerals and metals — including manganese, cadium,

cobolt and chromium. Japanimports 100 percent of 11 so-called strategic materials.

In the same context, it is significant to note that the Soviet Union

has a comparable dependency — (approximately 50 percent) — for only three such

W5-12
materials and metals — bauxite/alumina, barium and flouride.

Conversely, the Soviets are net exporters of 20 materials, among which Is

chromium, platinum group metals, and manganese. The fundamental observation

to be drawn from these strategic realities Is that Russia Is nearly selfsufficient in materials for which we and our allies must turn to external

sources, many of which today are either unfriendly or unstable. Should future

trends, especially in Southern Africa, result in alignment with Moscow of this

critical resource area, then the USSR would control as much as 90 percent of

several key minerals for which no substitutes have been developed and the loss

of which could bring the severest consequences to the existing economic and

security framework of the free world.

As one assesses the recent step up of Soviet Proxy activity in

the third world — in Angola, Ethiopia, Southern Yemen, Northern Yemen,

Southeast Asia, Central America and the Carribean, and the December 1979

unprecedented invasion of Afghanistan by regular Soviet forces — then one

can only conclude that the era of the "resource war" has arrived.

The question of how best to deal with the ominous increase in

direct and indirect illegal Soviet interventionism in the third world is

clearly one for consideration in other venues. Nevertheless, our foreign policy

In the Near and Middle East, and Africa, and elsewhere, has not adeqxiately

followed the new reality of free world raw material dependency.

Notwithstanding, in the realm of strategic materials there is an

urgent need for the United States to provide "a natural resources leadership"

both within the NATO alliance as well as among other friendly non-NATO nations.

With respect to NATO, our leadership would emphasize that whether or not the

alliance chooses to formally expand its boundaries to the areas of third world

resource conflict, it will be increasingly and profoundly influenced by events

vithin these areas.

W5-13
If we are successful in this effort, the result will be

expanding coordination within the Alliance leading to concerted assessments

and policies beyond NATO’s boundaries. The threat to NATO, our principle

security framework, demands that if the Alliance is to continue as an

effective organization, it roust broaden its horizons. While it need not

extend its mandate formally, improved coordination between its most

seriously affected powers is an essential minimum. In this process,

Washington must inspire, persuade, urge and cajole its partners to make the

"hard decisions" free of bullying insensitivity.

But a favorable response from our allies depends on order in the

American House. If we continue to appear impotent in dealing with our own

resource problems, pretensions of international leadership will be derided.

Thus, v^e must also look within our own borders for part of the

answer. We must seek domestic sources for non-fuel materials. There is

simply too much at stake for America and the rest of the free world to rely

heavily on overseas sources, many of them volatile, others with political

systems inimical to ours.

From the standpoint of our national and international strategic

interests, it strikes me as inconceivable that we would shut off opportunities

to seek our domestic deposits of the strategic materials we need. Yet precisely

that has been the effect, whether intended or not, of our federal land management

policies. By the actions of our own government, fully two-thirds of our mineral

lands have been withdrawn from possible exploration.

The government owns one-third of the nation’s land. It is

estimated that federal lands contain about 83% of our oil reserves and a

large share of gas, timber, and scarce minerals. We do not know for sure how

W5-14
much of these resources actually exist on lands being considered for

wilderness designation within the 50 states. One thing is certain: If

this land is cordoned off from exploration, we'll never find out what minerals

it can yield.

Many of us in industry were elated by passage of the Idaho

Wilderness Legislation, providing for development of any cobalt resources

discovered in the West Panther Creek area. We at United Technologies are

appreciative, Mr. Chairman, of your leadership in this important legislative

issue. This is truly landmark legislation. It recognizes for the first time

that we can strike a balance between the need for domestic supplies of

critical materials and for preserving and protecting our wilderness. This

legislation could lead to production of cobalt in the United States for the

first time in three decades.

We are also encouraged by the progress of the . California Wilderness

Bill, M.R. 7702, which has just cleared the House. The lands involved in

California could provide potentially rich deposits of cobalt, nickel, and

chromium. We strongly support this legislation. I hope most earnestly that

it will be passed by the Senate during this session.

Sources of the strategic materials America needs have been developed

so fully overseas because of the low labor costs and rich ore deposits found

in those countries. But that doesn't mean such materials aren't available

right here in the United States. The fact is, they do exist. And we should

go after them.

To be sure, it will take huge capital investments to explore for

and develop our own domestic deposits. The costs will be high — for the same

reason that it costs much more to extract oil from our shale deposits in the

W5-15
West than it does to withdraw crude oil from the ground in the Mid East.

But the price we will pay if we do not go ahead will be great indeed,

striking at the very heart of our national security interests and our

economy.

Another aspect of our domestic resource efforts should focus

on conservation and substitution. Industrial users are bending substantial

efforts to design strategic or critical materials out of their products.

Take, for example, our company's Pratt & Whitney Aircraft Group, the world's

leading builder of jet engines. Design in one of our military engines has

been modified to replace a cobalt superalloy used for turbine blades with a

cobalt-free nickel alloy. This change resulted in the saving of 65,000 pounds

of cobalt last year in just one spare parts order. For our most widely used

commercial engine, we are projecting that work in progress will reduce the

need for cobalt by 30 to 35 percent starting next year.

Through stepped up conservation and reclamation, we are reducing

our raw materials requirements considerably. With conventional forging

practices, as much as 75 percent of the material is machined away into chips.

Today, however, chips of alloy containing cobalt, titanium, nickel and

chromium are carefully segregated and recycled.

But, while domestic substitutes and conservation are important,

they cannot in the foreseeable future reach to the heart of the problem faced

by the United States and its allies who must continue to rely excessively

for essential materials from the third world "resource battlegrounds."

Mr. Chairman and Members of the Committee; There is no easy

solution. There is no single route to the answers we seek. A non-fuel mineral

policy for ourselves and our allies is long overdue. It must be built on a

comprehensive, iall embracing resource program whose essential elements include

W5-16
formulation of a non-fuel minerals policy of domestic and international

scope and involving:

o Revitalized United States leadership within NATO and

other industrialized states seeking concerted free world

resource management.

® Stepped up exploration and development of domestic

deposits in a way that achieves a balance between our

vital resource needs and the necessity to preserve and

protect our environment and wilderness areas.

® Accelerated efforts in conservation and substitution

through the application of technology.

Thank you, Mr. Chairman
Draft Testimony for Science Technology and Space Subcommittee

Senate Commerce^ Science and Transportation

July 2j 1980

Mr. Chairman and Members of the Committee...! am Richard C. Mulready^

Director of Technical Planning for Pratt & Whitney Aircraft Group^

A DIVISION OF United Technologies Corporation. Pratt & Whitney Aircraft' IS pleased to have this opportunity to present its views on

HR-27A3^ The Materials Policy^ Research and Development Act. We

strongly support HR-27A3 and applaud the Committee's interest in

ACTING ON A MATERIALS POLICY BiLL THIS YEAR.

Pratt & Whitney Aircraft manufactures military and commercial jet

ENGINES POWERING OUR FRONT LINE F"1A^ F-15^ AND F-16 FIGHTERS AND

MOST OF THE FREE WORLD'S COMMERCIAL AIRCRAFT. PRODUCTION OF THESE

ENGINES REQUIRES SIGNIFICANT QUANTITIES OF MATERIALS SUCH AS COBALT^

TITANIUM^ AND CHROMIUM. WITHOUT ADEQUATE AND STABLE SUPPLIES OF

RAW MATERIALS^ OUR PRODUCTION LINES WOULD SHUT DOWN WITH SERIOUS

EMPLOYMENT^ ECONOMIC^ AND NATIONAL SECURITY IMPLICATIONS. HR-2743

WILL HELP TO PROVIDE PART OF THE ANSWER TO THE NATION'S CRITICAL

MATERIALS DEPENDENCY.

Until OPEC got our attention in 1973^ not many of us were consciously

AWARE OF OUR CRITICAL DEPENDENCE ON FOREIGN SOURCES FOR MANY OF THE

RAW MATERIALS ON WHICH OUR DEFENSE AND THE ECONOMY OF THE COUNTRY

ARE BASED. PRESIDENT TrUMAN WAS WORRIED ABOUT IT, AND THE PaLEY

Commission report in 1952 detailed the problem and recommended

SPECIFIC ACTIONS^ BUT NOT MUCH HAS BEEN DONE IN THE THREE INTERVENING

W5-18
DECADES. The problem is now even more acute^ as the recent disturbances IN Zaire and the Russian withdrawal from the titanium

SPONGE market HAVE DEMONSTRATED.

Of all of THE CRITICAL MATERIALS^ COBALT IS PROBABLY THE ONE FOR

WHICH THE RISK IS GREATEST. As RECENTLY AS LAST THURSDAY^ AN

ARTICLE IN "The Wall Street Journal" described the continuing unsettled CONDITIONS IN ZaIRE. ZaIRE PROVIDES ABOUT 55% OF THE COBALT

CONSUMED IN THE UNITED STATES. ThE SECOND LARGEST SUPPLIER^ ZAMBIA^

HAS^ ACCORDING TO OTHER ARTICLES IN THE PRESS^ RECENTLY AGREED TO

TRADE COBALT TO RUSSIA FOR WEAPONS, An INTERRUPTION IN THE SUPPLY

OF COBALT WOULD HAVE A MAJOR IMPACT ON BOTH OUR MILITARY AND COMMERCIAL ENGINE AND SPARE PARTS DELIVERIES,

To ILLUSTRATE THE NATURE OF OUR CONCERN^ LET ME OUTLINE FOR YOU THE

IMPACT OF A COBALT SUPPLY CUT-OFF ON U.S. AIRLINES. To SIMPLIFY THE

ILLUSTRATION^ TlL LIMIT THE CASE TO ONE PART IN ONE ENGINE TYPE.

A MAJOR PART OF THE WORLD'S AIRLINES USE OUR JT8D ENGINE. In

1979^ SOME 83 PERCENT OF THE COMMERCIAL FLIGHTS IN THE UNITED

States were in aircraft equipped with the JT8D engine. On the

AVERAGE^ THESE ENGINES OPERATE ABOUT 2^500 HOURS PER YEAR IN

^ THESE AIRCRAFT AND THE FIRST TURBINE VANE^ WHICH IS ABOUT 60

PERCENT COBALTy HAS A USEFUL LIFE OF 10^000 HOURS BEFORE IT IS

REPLACED.

The pipeline for replacement parts is about twelve months long

BETWEEN OUR MELTING SUPPLIERS AND DELIVERY OF SPARE VANES TO

THE AIRLINES. If WE ASSUME THAT THE COBALT SUPPLY WAS SUDDENLY

W5-19
CUT OFF TO OUR MELTING SUPPLIERS^ WE SHOULD BE ABLE TO CONTINUE SUPPLYING SPARE PARTS TO OUR AIRLINE CUSTOMERS FOR ABOUT

A YEAR. At the end OF THAT TIME> THE JT8D FLEET WOULD START

TO BE GROUNDED AT THE RATE OF 25 PERCENT PER YEAR.

This illustration has been limited to one part in one engine type.

The first turbine vanes in all manufacturers' engines are high cobalt

alloys. In FACTy ALL ENGINES WOULD BE AFFECTED^ AND BOTH THE COMMERCIAL AND MILITARY AIRCRAFT PROGRAMS WOULD SUFFER.

Rather than have this happen in the real case^ an accelerated effort

WOULD BE LAUNCHED TO USE LESS SATISFACTORY ALTERNATIVE MATERIALS^

BUT THIS SUBSTITUTION WOULD TAKE TIME. In ANY EVENT^ A SIGNIFICANT

DISRUPTION WOULD OCCUR TO THE NATION'S MAJOR TRANSPORTATION SYSTEM.

The Department of Interior's Office of Minerals Policy and Research

Analysis published a study last year entitled/ "Developing a Critical

Minerals Index: A Pilot Study/' which indicates that "cobalt is the

MINERAL OF GREATEST RELATIVE CONCERN DURING THE 1979-84 PERIOD^ BEING

MOST SUSCEPTIBLE TO DISRUPTION IN 1980 AND 1981 AND HAVING A PROBABILITY OF DISRUPTION EXCEEDING 0.6 (60 PERCENT) IN BOTH YEARS."

The study also addresses the economic impacts of supply disruption^

LISTING SUCH FACTORS AS A NET RESOURCE LOSS^ DIMINISHED REAL INCOME

OF U.S. CONSUMERS^ AND REDUCTION IN TOTAL CONSUMPTION. ACCORDING TO

THE Department of Interior^ disruption can be measured in terms of

"the costs of lost production resulting from reduced imports^ increased COSTS from expanding less efficient U.S. production^ the

COSTS OF SUBSTITUTING LESS COST-EFFECTIVE MINERALS^ AND THE TRANSFER

W5-20
OF U.S. WEALTH TO FOREIGN PRODUCERS BECAUSE OF HIGHER PRICES FOR

REMAINING IMPORTED SUPPLIES."

Import dependency also represents a large drain on our balance of

PAYMENTS. In 1979 WE SPENT ALMOST HALF A BILLION DOLLARS FOR IMPORTED

COBALT ALONE. ThE FEDERAL PREPAREDNESS AgENCY REPORTED IN 1978

THAT THE TOTAL COST OF ACHIEVING GOALS FOR THE STRATEGIC AND CRITICAL MATERIALS STOCKPILE WOULD BE OVER 11 BILLION DOLLARS. SiNCE

THEN THE GOALS HAVE BEEN INCREASED AND PRICES FOR NUMEROUS MATERIALS

HAVE SKYROCKETED. ThUS^ THE FULFILLMENT OF STOCKPILE GOALS AND

ANNUAL U.S. DEMANDS MET BY FOREIGN SUPPLY WILL CLEARLY FURTHER

AGGRAVATE OUR NEGATIVE BALANCE OF TRADE.

A VARIETY OF PROGRAMS IS NECESSARY^ IN OUR VIEW^ TO DEAL WITH THE

IMPORT DEPENDENCY. LOGICALLY^ ONE OF THE FIRST STEPS IS TO ENCOURAGE

DOMESTIC PRODUCTION OF STRATEGIC MATERIALS CURRENTLY IMPORTED IN

LARGE QUANTITIES.

The United States Government owns and controls over 55 percent of

THE MINERALLY-RICH WESTERN STATES AND AlASKA. In THE PAST^ 90 PERCENT OF THE Federal lands were available for mineral exploration

AND DEVELOPMENT. ToDAY”DUE MAINLY TO THE GROWTH OF THE WILDERNESS

Preservation System—two-thirds of Federal lands now have significant

RESTRICTIONS ON MINERAL ACTIVITIES. OVER 90 MILLION ACRES ARE CURRENTLY INCLUDED IN THE WILDERNESS SYSTEM OR ARE UNDER CONSIDERATION

FOR DESIGNATION AS WILDERNESS ArEAS IN LEGISLATION PENDING BEFORE

THE Congress.

W5-21
We are most encouraged by the recent House/Senate Conference action

ON THE Idaho Wilderness Bill (S-2009), This Bill is a landmark in

THAT IT RECOGNIZES FOR THE FIRST TIME THE NECESSITY TO BALANCE THE

NEED TO DEVELOP DOMESTIC SUPPLIES OF CRITICAL MATERIALS^ WITH THE

DESIRE TO PRESERVE WILDERNESS ArEAS,

Intelligent Government stockpile management is another key element

IN encouraging domestic production. The history of almost every

Administration since World War II would indicate that this will be

very difficult to achieve. Properly managed^ the stockpile should

ACT LIKE AN ACCUMULATOR IN A HYDRAULIC SYSTEM^ STORING MATERIAL

DURING SLACK DEMAND TO PROVIDE EXTRA FLOW FOR THE PEAKS.

To CARRY THE ANALOGY FURTHER^ THE LINE CONNECTING THIS ACCUMULATOR

TO THE USER IS FAR TOO LONG^ AND IT CURRENTLY MAY NOT BE USEFUL AT

ALL, It could have been used to smooth the peak demands FOR TITANIUM

LAST YEAR> BUT IT WAS NOT, PrOPERLY MANAGED^ IT CAN PROVIDE THE

INCENTIVE FOR DOMESTIC PRODUCTION WHICH MIGHT NOT OTHERWISE OCCUR.

Substitution of less critical materials is an obvious partial solution TO THE PROBLEM. NeW DESIGNS WHICH ELIMINATE OR REDUCE COBALT

ARE ALREADY UNDERWAY. FoR ENGINES NOW IN SERVICE^ OPPORTUNITIES

EXIST TO REPLACE COBALT-BASE ALLOYS SUCH AS X^O OR StELLITE 31 WITH

INCO 713 OR A LOW COBALT ALLOY, HoWEVER^ EVEN WHEN A SUITABLE SUBSTITUTE EXISTS^ AN EXTENSIVE PROGRAM INVOLVING LABORATORY^ RIG^ AND

ENGINE TESTING IS REQUIRED TO PROVIDE THE NEEDED SUBSTANTIATION FOR

SAFETY^ DURABILITY^ AND PERFORMANCE REQUIREMENTS. ThIS PROCESS

W5-2Z
REQUIRES 30 TO 36 MONTHS^ DEPENDING UPON THE SPECIFIC APPLICATION.

Work in progress in this area on our JT8D engine that powers the

Boeing 727 and 737 and Douglas DC-9 fleet will reduce cobalt requirements BY 30 TO 35 PERCENT PER ENGINE BY 1981.

I In addition to these substitution programs^ we are also conducting

PROGRAMS TO REDUCE RAW MATERIAL REQUIREMENTS THROUGH IMPROVEMENTS

IN MATERIALS PROCESSING^ AND TO CONTROL AND RE-USE SCRAP WITHIN OUR

.1

j INDUSTRY. An example of improved MATERIALS PROCESSING IS FORGING

I’ CLOSER TO FINISHED SHAPE TO REDUCE RAW MATERIAL INPUT. In A CURRENT

APPLICATION IN THE FlOO ENGINE THAT POWERS THE F-15 AND F-16 AIRCRAFT^ INPUT MATERIAL WEIGHT FOR NINE KEY PARTS IS BEING REDUCED

' BY A FACTOR OF TWO^ FROM 1200 POUNDS TO 500 POUNDS BY NEARER NET

SHAPE FORGING. YeSTERDAY's PRACTICE USED A 500 POUND FORGING TO

PRODUCE A 116 POUND FINISHED DISK. ToDAY THIS TURBINE DISK CAN BE

HOT ISOSTATIC PRESSED USING ONLY 270 POUNDS OF INPUT MATERIAL. WiTH

CONTINUED DEVELOPMENT^ THIS CAN PROBABLY BE CUT IN HALF AGAIN. I WOULD ALSO LIKE TO POINT OUT THAT TO MAKE THE KIND OF RAW MATERIAL 1 SAVINGS TvE DESCRIBED^ A SIGNIFICANT CAPITAL INVESTMENT HAS TO BE

II MADE. A SINGLE HOT ISOSTATIC PRESS^ FOR EXAMPLE^ COSTS $8 TO $10

MILLION TO PUT INTO OPERATION.

Conservation and improved scrap reclamation programs are significantly

j REDUCING INPUT REQUIREMENTS. WiTH CONVENTIONAL FORGING PRACTICES^ AS

MUCH AS 75 PERCENT OF THE METAL INPUT IS MACHINED AWAY INTO CHIPS.

Today these chips of titanium^ cobalt^ and nickel bearing alloys

ARE CAREFULLY SEGREGATED AND RECYCLED^ REDUCING THE VIRGIN METAL

REQUIREMENTS BY AS MUCH AS 65 PERCENT IN SOME CASES.

W5-23
Over the long term^ it now appears possible to develop complete new

FAMILIES OF ALLOYS FOR JET ENGINES WHICH CONTAIN NEITHER CHROMIUM

NOR COBALT, ThIS WORK IS IN AN EARLY RESEARCH PHASE AND IS KNOWN

AS RSR^ WHICH STANDS FOR RAPID SOLIDIFICATION RATE, PoWDER IS PRODUCED IN A SYSTEM WITH COOLING RATES IN THE ORDER OF A MILLION DEGREES

PER SECOND, In this RAPID COOLING PROCESS^ IT HAS BEEN POSSIBLE TO

PRODUCE TRUE ALLOYS OF NICKEL^ MOLYBDENUM^ AND ALUMINUM^ FOR EXAMPLE^

AND THAT MATERIAL IS THE ONE THAT Dr. PeRRY TALKED ABOUT, It LOOKS

LIKE A VERY GOOD CANDIDATE FOR SOME TURBINE BLADES IN THE FUTURE,

With conventional practice^ these elements would remain segregated.

These new alloys show promise for hot section application. Significant USE OF THESE NEW IV\TERIALS IS PROBABLY TEN YEARS AWAY^ SO IT IS

NOT A SHORT TERM SOLUTION TO OUR MATERIAL SHORTAGES,

The materials crisis is like a jig-saw puzzle. Land withdrawal^

CONSERVATION/ RECYCLING/ STOCKPILING/ RESEARCH AND DEVELOPMENT ARE

ALL PIECES OF THE PUZZLE, ThEY MUST BE DEALT WITH IN A COORDINATED/

INTEGRATED MANNER OR THE PUZZLE WILL NEVER BE SOLVED, ThE MATERIALS

Policy R&D Act is the outline of the puzzle. Once in placE/ it will

PROVIDE A FRAMEWORK FOR FUTURE MATERIALS LEGISLATION AND GREATLY AID

EFFORTS TO ADDRESS LONG-RANGE MATERIALS NEEDS.

Pratt & Whitney Aircraft and the United Technologies Corporation

ENDORSE HR-27A3 AND HOPE THAT IT WILL BE ENACTED THIS YEAR. PROMPT

AND POSITIVE ACTION BY THE SCIENCE TECHNOLOGY AND SPACE SUBCOMMITTEE/

THE FULL Commerce Science and Transportation Committee/ and the Senate

WILL PUT THE LONG-AWAITED PROCESS INTO EFFECT.

Thank you.

W5-24
United States Council of the International Chamber of Commerce Inc 1212 Avmnc nf the Americas New York NY 100^6

United States Council

December 23, 1980

Mr. John B. Wachtman, Jr.

Director

Center for Materials Science

United States Department of Commerce

National Bureau of Standards

Washington, D.C. 20234

Dear Mr. Wachtman:

Confirming our telephone conversation, I would like to

take this opportunity to convey the comments of members of

the U.S. Council's Natural Resources Committee on the proposed

materials needs case study being conducted by the Department

of Commerce.

A majority of those with whom I spoke concurred in the

selection of the aerospace industry as the first sector to be

studied. One member suggested that this study be broadened to

encompass those energy-related industries which produce turbine

blades (e.g. for gasoline refining) which require the same type

of cobalt as that used in j^et engines.

As for future studies, our members suggested the following

possibilities

:

(1) the automotive industry

(2) the shipbuilding industry

Several individuals expressed an interest in further cooperation with the Commerce Department, and in this regard, we look forward to receiving additional information on the study,

as well as an indication of more specific areas where we could

be of assistance.
ASARCO

Simon D. -Strauss

Director January 21, 1981

Dr. John B. Wachtman, Jr.

Director, Center for Materials Science

National Bureau of Standards

United States Department of Commerce

Washington, D. C. 20234

Dear Dr. Wachtman:

Assistant Secretary Jordan J. Baruch has written me regarding

the notice recently published in the Federal Register announcing

the workshop planned for February 9-10. He has suggested that

I write you in regard to the questions posed for the workshop

and also that I may wish to take part in the workshop itself.

Due to prior commitments I will not be able to be in Washington

on February 9-10. I am, however, pleased to add to the comments

in my letter to you of December 16 written in my capacity as

chairman of the Minerals Availability Committee of the American

Mining Congress.

I have noted with interest press reports of the testimony of

Secretary Baldrige before the Senate Commerce, Science and

Transportation Committee at the time of his confirmation hearings.

He is quoted as regarding the strategic minerals problem facing

the United States as "very serious". He added that the issue has

been "studied sufficiently" and is calling for action to ensure

that sources of supply are stabilized.

These comments are quite applicable to your workshop. Most of

the questions you have posed were dealt with in the Non-Fuel

Minerals Policy Review. The Bureau of Mines individual commodity summaries contain the needed basic information. The

Commission on Supplies and Shortages in 1976 made a detailed

evaluation of these problems.

Rather than consume time and effort in once again collecting

well-known facts, I would think that the Commerce Department

should already have the capability to submit a defined program

to the Secretary now. For example:

W7

ASARCO Incorporated 120 Broadway New York, N. Y. 10005 (212)732-9500
Dr. John B. Wachtman, Jr. 2 January 21 , 1981

Cobalt is obviously a problem. It is essential for the aerospace industry since it is used in the production of jet

engines. The cobalt stockpile now contains less than half

the objective. The present major sources of cobalt are two

African countries — Zaire and Zambia — faced with major

political and economic problems. There is a potential for

production of cobalt from a domestic source — Idaho. The

Defense Production Act contains authority to create or expand

domestic materials capacity.

Should not the government therefore now proceed to discuss with

the potential Idaho cobalt producers what they need in the way

of encouragement to equip their deposits for production? At a

guess, they might well respond favorably to a contract establishing a "put" or floor price for their expected production

over a period of several years — say, two to five.

If money is needed to facilitate such a program, then the

Secretary should so report to the Congress. Why wait until

October 21? Would not the Congress be in^ressed by a quick

response?

Your workshop will not develop any facts in regard to cobalt

that differ from the above. I suggest action rather than study.

Sincerely yours

SIMON D. STRAUSS

cc: The Honorable Jordan J. Baruch

W7-1
ASARCO

Simon D. Strauss

Director January 30, 1981

Dr. John B. Wachtman, Jr.

vice Chairman

Department of Commerce Task Force on PL 96-479

National Bureau of Standards

Department of Commerce

Washington, D. C. 20234

Dear Dr. Wachtman:

In response to your letter of January 26, I will not be

able to attend the Department of Commerce Workshop on

Critical Materials Needs of the Aerospace Industry to be

held in Gaithersburg on February 9 and 10.

I believe Mr. James Beizer of the American Mining Congress

staff has advised you that David Swan, Vice President of

Kennecott, a member of the AMC Committee on Minerals

Availability, will participate and will be prepared to make

supplementary remarks on behalf of the mining industry.

Sincerely yours

SIMON D. STRAUSS

cc: Mr. David Swan

Mr. James Beizer

W7-2

ASARCO Incorporated 120 Broadway New York. N.Y. 10005 (212) 732-9500
DEPARTMENT OF TRANSPORTATION

RESEARCH AND SPECIAL PROGRAMS ADMINISTRATION

WASHINGTON, D C. 20590

JAN 2 3 198! REFER TO:

Dr. John B. Wachtman, Jr.

Director, Center for Materials Science

United States Department of Commerce

National Bureau of Standards

Washington, D.C. 20234

Dear Dr. Wachtman:

In reply to your letter of January 13, 1981, I have reviewed the

Notice, Definition of Aerospace Industry Materials Needs, and would

like to suggest that consideration be given the following points:

1. A generic problem in this country today is the lack of processing

capability for highly advanced materials and composites. It is

not the lack of the basic materials themselves that causes (or

has the potential for causing. . .) material short falls. A few

examples will illustrate this point: (a) In the processing of

titanium forgings for critical aerospace components, it is the

lead time associated with part design, master forge development,

and associated industry capacity to deal with such problems

economically, (b) processing technology for rapidly solidified

powder metal alloys is not yet capable of producing sufficient

volumes of powder to be considered economically feasible, (c)

high-strength components such as the parallel continuous glass

fiber epoxy composites are not yet commercially available owing

to the lack of high-production rate processing equipment.

2. Consideration should be given to developing an understanding of

the problems that tend to inhibit the growth of critical process

technology and the rapid commercialization of such processes.

National policy must be able to accommodate rapid development of

critical processes. Emphasis should be placed on accelerated

support for such critical processes in both the defense industry

and the transportation industry.

Grego ^

Sincerely,

Director

Transportation Programs Bureau

W8
(The following was dictated telephonical ly by Dr. James Boyd on January 29, 1981.)

Dr. John B. Wachtman, Jr.

Director, Center for Materials Science

National Bureau of Standards

Washington, DC 20234

Dear Jack:

This is in response to Secretary Baruch's letter of January 15 regarding

the Materials and Minerals Policy Act of 1980, PL 96-479. By way of a brief

background, I have served as Chief of the Minerals Branch, Commodites Division

of the Army and Navy Munitions Board, 1941-42. I chaired the interagency

committees on aluminum and copper aside from my regular duties involving

strategic minerals. On the reorganization of Army in 1942, I became the

Army's representative to the predecessors of the War Production Board and that

Board's Program Adjustment Committee dealing with all materials. Concurrently,

I sat on WTB international committees on copper, etc.

Following World War II as Director of U.S. Bureau of Mines, I sat on the

interdepartmental committee on stragegic materials. For the following 20

years as an executive in two copper companies, I served on several Government

committees involving minerals. Since retirement from industry in 1971, I have

served on NRC committees and boards; as Executive Director of the National

Commission on Materials Policy reporting in 1973, and Chariman of OGA's

Minerals Advisory Committee, etc. I have had experience with many aspects of

materials policy over a 40-year period.

The following are general comments put together in a hurry; however, I did

not get Dr. Baruch's letter until January 20, and I have been traveling on

materials matters since then. I trust they will be of value to you, I regret

that previous commitments prevent me from attending your meetings.

A. The minerals cycle is a highly complex resource, economic and political

system in constant state of flux. This requires policies which are

W9
flexible enough to react quickly to change in any obvious phases.

Policy adopted by Government must therefore be such that the system

can react quickly to changes in political, scientific, and economic

conditions. In other words, to the marketplace and strategic plans.

This system is so complex that it cannot be handled satisfactorily by

bureaucratic decision making. Such guidance tends to slow down the

process and distort the markets. Even in states of national

emergency, the decisions must be left up to those operating its

details as they are the first to see changes coming and can take

immediate action.

B. In regard to the areas for discussion at the meetings:

1) There is a tendency to put too much effort into fine-tuning supply

and requirements data. Important as it is to know orders of

magnitude, market conditions and technological developments are so

volatile that policy tied to detailed estimates can do more harm

than good.

2) This is even more true for engineered materials and forms. Effort

needs to be focused on producing an economic and regulatory climate

in which the materials system can operate more satisfactorily.

3) R&D in materials and publication of results is the source of material

information for those who must make adjustment to potential shortages

or changing technological needs. Attempts to dictate substitutes

are a waste of time. The Bureau of Mines' development of processes

to bring titanium, zirconcum, and electrolytic manganese to the

threshold of economic development are the best examples. A running

catalog of material characterization would be a better policy.

W9-1
sJ

This includes processes as well as material specifications.

Processes need demonstration. Such things can sometimes but not

always be done by Government.

C. Concerns to be addressed:

1) Fine-tuning requirements in this context is a waste of time. It

diverts attention from the policy and planning efforts. It is

time-consuming and short-lived as the figures will change before

the ink is dry. A catalog of material properties and processes,

constantly advancing and available to planners in and out of

industry, would support the policy more effectively than attempts

to identify and meet specific needs. There are innumerable

examples of bad timing and errors in judgement in the current

stockpile program of accummulation and disposal which have damaged

the achievement of long-range goals.

2) Up-to-date published documents such as the "Minerals Yearbook"

and "Minerals Facts and Problems" properly staffed is essential

to this need. This is not an expensive operation. It needs to

have its presence through mineral attaches in the embassies

augmented. World statistics brought up to the level of those

produced by the Bureau of Mines is an important element if our

information base is to be made clearer. The trade is capable of

detecting weaknesses in supply before they become serious.

3) Disruptions to any link in the supply chain are difficult to

discover if the observer is not directly involved. The U.S.

commercial system through customers or the Government agencies if

they are the customer is better able to detect pending shortages

than any other Government agency. If the market for a specific

W9-2
item is too small to warrant the private construction of the

facility and the item is vital strategically, the Government

must provide the market for that material or material form by

negotiation. This is no different from that which is done

every day in the market place. Uninhibited by Government interference, these things get done by one means or another and more

surely than they do through Federal planning. The materials

industries provide examples of this every day. Government policy

should be directed in all of those phases to create the climate

in which this system works. The Government should itself use the

economic system rather than resort to long-range planning.

D. Specific Materials: The aerospace industry is a good example of an

industry which has the Government as a major customer and in which

the most supply problems arise. This is largely due to limited markets

for technologically sophisticated items and specifications for those

items which have limited sources both of materials, forms, and shapes.

No one is better able to detect shortages or long-range bottlenecks

than the constructing agencies. Policy should give them the tools to

make corrections to cure specific needs and not make general unfocused

policies and programs.

I shall not attempt to get into the specifics of which materials to

study. Your committee will be more knowledgeable.

E. Potential Action Policies

1) Improvement in the materials production base: If this must be done

by the private sector, improvement can be stimulated by Government

by improving the economic climate within these industries and

involve:

W9-3
a) A tax structure that does reflect risks as a cost.

b) Detailed regulation of processes and procedures.

c) Regulation that puts the burden on regulatory agencies and

away from the ultimate responsibility of management and

labor.

d) Encouragement of capital formation.

e) Environmental regulations which depend on individuals to

enforce and does not leave it to management and the courts.

Fining for violations of specifics are the worse source of

enforcing mechanism.

2) Stocking should benefit from past abuses and should set the taxing

structure to encourage private stockpiling at the point of use.

This would tend to keep the stockpiling needs up to date and

bring about automatic reaction to changes in need. The Swedish

system is an example to be followed.

3) Federal agency allocation should be installed as a last resort

and then administered directly with industry participation.

4) No comment.

5) Conservation and recycling eventually depend on the market which

enforces it through the return to be realized. Attempts to plan

and enforce either have not been too successful. Government

procurement agencies can accelerate recycling by providing a

market for these specific materials, and specifications which include

conservation practices would be helpful.

6) R&D is a specific question and covers the basic principles involved

throughout the Government. The Federal Government should encourage

W9-4
the private sector to take the risks involved by recognizing it as

a cost of doing business either for the Government or the private

economy. Looking ahead for the markets such as the above mentioned

titanium, zirconcum, and electrolytic manganese programs, the larger

needs in such things as mining research require close cooperation

between the extraction and manufacturing industries, the academic

and research installations, and the Federal Government. They cannot

be carried out except in active mines and as the results are needed

by all members of industry, they must be a joint effort.

I regret that time did not permit me to edit the letter. If the effort is

to continue under the new leadership, I would be happy to s^t in.

Sincerely,

JAMES BOYD

JB0YD:lp:29Jan81
Freeport Minerals Company

200 Park Avenue

New York. N.Y. 10017

Telephone

(212) 678-9200

January 30. 198I

Mr. John B. Wachtman, Jr.

National Bureau of Standards

Materials Bldg. B-308

Washington, D.C. 20234

Dear Mr. Wachtman:

In response to the Department of Commerce request for com- ments on critical materials, as well as participation in a workshop on February 9-10, I98I, we would like to respectfully

submit the following.

Freeport Queensland Nickel, Incorporated, a subsidiary of

Freeport Minerals Company, currently operates a nickel/cobalt

mine and treatment facility in Queensland, Australia as part of

a joint venture with an Australian company. Metals Exploration

Queensland Pty. Ltd. Freeport Minerals is, of course, vitally

concerned with the dependence of the United States on the import of cobalt. Any adverse developments in Zambia and Zaire,

which supply over 70^ of the cobalt consumed in the U.S., could

have a serious effect on our U.S.A. aerospace industry.

Given our role as an established cobalt producer and our general interest in strategic metals, we would appreciate the

privilege of attending the February 9-10 workshop in Gaithersburg, Maryland sponsored by the Department of Commerce. We

would hope to gain further insight into the critical need

areas of the metal industry and communicate that information

to our management.

Very trioly yours

WTJ/j ek

WIO
Alle^ienyLudhim IndustriesJnc.

TWO OLIVER PLAZA, PITTSBURGH, PENNSYLVANIA 1S222

Mr. John B. Wachtman, Jr.

Vice Chairman

Department of Commerce Task

Force on PL 96-479

United States Department

of Commerce

National Bureau of Standards

Washington, D. C. 20234

Dear Mr. Wachtman:

Thank you for your letter of January 26 and

invitation to participate in the Workshop. I look forward

to the opportunity.

Enclosed is a copy of a paper that I had prepared

in response to Jordan Baruch's letter of January 9.

E. F. ANDREWS

VICE PRESIDENT- MATERIALS AND SERVICE

412 - 562-4250 January 30, 1981

EXECUTIVE AND GENERAL OFFICES AREA CODE 412 PHONE: 562-4000

Again, many thanks

Sincerely yours

E. F. Andrews

mjh

Enclosure

cc: Mr. Jordan J. Baruch

Wll
A NATIONAL MATERIALS POLICY FOR A DESTABILIZED WORLD

I have devoted most of the last 30 years working in and

being concerned about the materials supply problems of my company

and my country. For many years, I have been calling for a national

materials policy and a higher profile on this general subject. I

believe it is finally beginning to move to the top of the national

agenda, and I am very pleased to have it do so. In the past decade,

we have gone through the National Materials Policy Commission,

National Commission on Supplies and Shortages, and the interagency

study of the materials problem. But nothing much occurred to change

the collision course of which the Paley Report gave timely warning.

Nothing much, that is, until what can be milestone legislation

cleared Congress last October.

Chromium presents a good example of why sudh a policy is

needed. The United States has virtually no chromium indigenous to

this country. But at the same time, we were in an accelerating,

high level of consumption, we passed a group of environmental laws

that virtually mandated an additional increase in the consumption

of chrome to make the clean air and clean stream equipment and

converters on our automobiles. After we had mandated this increase

in the consumption of chrome, we then unilaterally, in another part

of government, placed an embargo on the importation of chromium

from what was then our largest supplier, Rhodesia. At the same

time, we applied stricter environmental enforcement on the antiquated ferrochrome industry, reducing its productive capabilities.

Also at the same time, we allowed unlimited export of stainless

steel scrap, each ton of which contained 400 pounds of chrome.

Truly, a good example of the need for a coordinated materials

policy.

A brief look at history, and particularly at some events

and developments that occurred in the lifetimes of most of us here,

will help explain and in part define our present national predicament

in this matter.

America had all the resources it needed from the outset of

its nationhood and through its first 150 years or so. It was singularly blessed with timber, water, iron, coal, copper, petroleum, and

much more adequate for the American economy of those days.

That happy condition began to change markedly after the

First World War. It was not that we exhausted our resources but

that new materials were required by our industrial society: rubber,

for instance, as we realized with a shock when, in the Second World

War, the Japanese overran southeast Asia.

The explosion in technological development during and

after that last global war has meant unprecedented advances in the

quality of our national life and has wondrously transformed older

industries and brought new industries unimagined only decades ago.

But that explosion also put an end to our historic self-sufficiency.

Wll-1
A NATIONAL MATERIALS POLICY FOR A DESTABILIZED WORLD

PAGE 2

We are import-dependent ^ in whole or in part/ on a long list of

minerals without whose assured and long-term supply we cannot

function in the industrial sense.* I am not speaking here of oil

,

for that IS a topic which has not wanted for attention, but of

non- fuel minerals; chrome, cobalt, manganese, platinum-group

metals, nickel, tin, tungsten, and a score or so more.

Beyond technological development at a constantly

accelerating rate of sophistication, the minerals predicament

was enormously complicated by vast world-wide political changes,

these included "decolonization” by the old Western imperial powers

and the emergence of Third World nations . And it so happened that

Providence chose to endow a number of the Third-World nations,

particularly those in southern Africa, with minerals on which we

are most dependent.

However salutary certain global political changes may be

in the historical annals of self-determination, they have meant,

to say the least, a destabilization of minerals access.

Now, as we venture further into the topic of non-fuel

minerals, it would be well to avoid two extremes of mental attitude.

First, there's the attitude of blind faith in technological

miracles. We solved the World War II rubber crisis in short order,

didn't we? We put a man on the moon, didn't we? Surely we can make

cobalt or chromium out of straw or who-knows-what when the crunch

comes I The fallacy of such gee-whizery lies not in any essential

deficiency of technological research and development. Lord knows

we've seen astonishing developments that have altered dependence

on minerals. Consider what frozen foods have meant in respect to

tin cans. Or the laser and satellite communications in respect

to copper wire. Yes, there will surely be technological developments

at some unforeseen time that will reduce or perhaps eliminate our

present dependence on one or more strategic minerals.

But the point is precisely that the time is unforeseen.

Time is at the heart of the problem. What presses for immediate

attention and coordinated action is getting America from now to,

say, 1990 or 1995. Wonderful indeed if we are mining the moon in

the next century. But what can be done to mine the earth and have

assured access to its mineral treasures in the next five, ten,

fifteen years?

Secondly, I recognize that there some authorities who are

concerned that we may be consuming basic resources of this world at a faster rate than we should. I do not wish to get into that argument.

Wll-2
A NATIONAL MATERIALS POLICY FOR A DESTABILIZED WORLD

PAGE 3

however, I am one who believes that the world is not really running

out of raw materials. It has been said that the first pound of

copper ever discovered in this world is probably still here somewhere. Of course, all and everything are finite. If somehow or

other, we consume or destroy until there is no place to stand on

this planet, then I guess we could say the raw materials are gone.

But I do not believe that is within our time frame of thinking.

I do not anticipate that we are likely to encounter any serious

natural constraints on the existence of raw material, at least in

the next 25 to 50 years and possibly 25 decades. In the case of

those raw materials that may run out, if there are any, we will

merely let the system work as we reach deeper into the bowels of

the earth for less yielding ores. Costs will rise. As the cost

to extract these materials rises, the price to the consumer will

rise. As the price rises, consumers will be forced to design away;

and by the time the supply is exhausted, the need for the product

will be gone also. It really is a self-correcting system, if we

will just let it alone and let it happen.

Avoiding then either extreme — the one of blind trust

in instant technology, the other of resource-despair — let's look

at the situation in four just basic minerals.

First off, there's chrome , indispensable to the manufacture of stainless steel, ball bearings, and surgical equipment.

This country has virtually no indigenous chrome. The world's

reserves of it lie almost entirely in southern Africa — in the

Republic of South Africa and in Zimbabwe, the former Rhodesia.

Then there's cobalt , essential to jet-aircraft engines,

machine-tool bits, and permanent magnets, to name some broad

categories. We import 98 percent of our cobalt, the bulk of it

from Zaire, the former Belgian Congo. Guess which nations account

for a big share of the world's reserves, after one totals Zaire's

and 'Zambia ' s? Our not-so-well-wishers , the Soviet Union and Cuba.

Next, there's manganese , without which you can't have

steel, period; and for which we are almost wholly import-dependent.

Of the world's present reserves of manganese, the U. S. Bureau of

Mines estimates that southern Africa accounts for some 40 percent

and the Soviet Union for 50 percent.

Finally, there's the platinum group of metals, on which

we are more than 85 percent import-dependent for the manufacture

of catalytic converters and a variety of electronic and chemical

products. Roughly three-quarters of platinum-group reserves are

in South Africa and about one-quarter in the Soviet Union.

This recital indicates why the four I have chosen out

of a much longer list surely quality as "strategic" and why the

Wll-3
A NATIONAL MATERIALS POLICY FOR A DESTABILIZED WORLD

PAGE 4

reliability of their supply is less than reassuring. You also

see why the Soviet Union already holds a powerful position from

which to conduct a "resource war" and why southern Africa has

been aptly called the "Persian Gulf of Metals."

The hallmark of such strategic minerals is their pervasive

use throughout a modern industrial economy. Let us suppose, for a moment, that somebody in Detroit or any other American city were to

say, well, in a pinch we could make do without chrome or cobalt.

Make do? Without these you couldn't build a jet engine

or an automobile, run a train, build an oil refinery or a power

plant. You couldn't process food, under present laws, or run a sanitary restaurant or a hospital operating room. You couldn't

build a computer, clean up the air and water, and on and on.

The four minerals I've mentioned, plus others which we

must import, impact intensely on our national defense — for what

defense could there be without planes and tanks and missiles?

They impact intensely on our basic industry and on our quality of

life, as shown by some of the specifics I've cited, and on the

employment of our work force. With regard to jobs and national

output, listen to what Helmut Schmidt, Chancellor of West Germany,

has said about his country of some 60 million people. If you cut

off West Germany's chrome for a year, according to Schmidt, there

would be two-and-a-half million people unemployed and a drop in

the GNP of 25 percent. Translate this in terms of the American

economy and you have a "crises" by the most conservative definition of that term.

Such are the broad outlines of our mineral dependence.

What can we do to alleviate it or at least render it less precarious?

One thing we can and must do is stop commissioning

studies that come to nothing. What we need are studies upon which

we are determined to act. Happily, a solid start in that constructive direction was made in the closing weeks of the last

Congress. It was then that the lawmakers passed, and the outgoing President signed, what is formally known as the National

Materials and Minerals Policy, Research and Development Act of

1980.

The Act declares, and I quote, "that it is the continuing policy of the United States to promote an adequate and stable

supply of materials necessary to maintain national security,

economic well-being and industrial production with appropriate

-attention to a long-term balance between resource production,

energy use, a healthy environment, natural resources conservation,

and social needs." It sets forth a comprehensive list of steps

Wll-4
A NATIONAL MATERIALS POLICY FOR A DESTABILIZED WORLD

PAGE 5

to be undertaken by Executive departments and agencies in line

with the Act's objectives and calls on the President to submit

to Congress within a year of the law's enactment a "program

plan" — including budget proposals and organizational structures.

Against the background of this promising start, some

general comments and recommendations on certain aspects of a future program may be in order.

1.

We need a coordinating mechanism, operating immediately under the President. Let us call it, for the sake of

hypothesis, a National Non-Fuel Minerals Board. It should have

full authority to cut across departmental jurisdictions in the

interest of designing and carrying out a total and consistent

minerals policy.

As part of the Executive Office of the President,

the N.N.M.B. would coordinate and mitigate programs, tasks and

analyses among the various agencies relating to the security of

strategic minerals supplies. It would also recommend actions for

the President, Congress and other Executive agencies.

It would add no new bureau or department but would

combine the in-place functions of one each from State, Treasury,

Defense, Commerce, Interior, Transportation, Labor and Energy.

2.

To facilitate private sector advice , I would

establish the President's Resource Advisory Board (PRAB) —

modeled after the structure of the former "President's Foreign

Intelligence Advisory Board," i.e. limited term membership of

distinguished experts from relevant fields, in this case from

the mining, minerals production and end user industries; plus

the fields of labor, environmental studies, regulation impact,

investment banking and geopolitical/national security affairs.

3.

We need a thorough inventory of our nation's reserves

and resources in strategic and other minerals — a reliable data

base, in other words. Specifically, this need concerns what is or

may be available as reserves in America's public lands.

The Federal Government owns about one-third of the

U. S. land area, mostly in the West and Alaska. In 1968, the

amount of this land withdrawn from mining and exploration -- and

my own concern at this point is with exploration — came to

17 percent. Eight years later, the figure was almost 70 percent 1

As an Interior Department official noted at the time,

the withdrawal for conservationist purposes "is being done too

Wll-5
jA NATIONAL MATERIALS POLICY FOR A DESTABILIZED WORLD

PAGE 6

often without detailed knowledge of the existing mineral potential

of these lands." At the very least, I would add, Americans have a right to know what resources of theirs have been locked away and

are being locked away and why!

4. We need to internationalize the capabilities of the

U. S. Bureau of Mines to assess supplies of minerals. The data base

provided by the Bureau in this country — with respect to those

areas where it may freely operate — is the best in the world.

But the minerals problem is worldwide in scope, and so the data

base should be as worldwide in scope as international political

conditions allow.

The new public law recognizes this need by directing

the Secretary of the Interior to promptly initiate actions aimed

at improving the Bureau's capacity in an international sense. A

decided improvement, it should be noted, could be effected by

stationing a total of 20 to 30 Bureau experts in a few select

countries

.

5. We need a total reassessment of our present defense

stockpile — amounting, at today's inflated prices, to about

$12 billion — and we need new policies concerning it.

The reassessment should be made in the light of such

considerations as quantity, quality, and mix. Are we too short on

this and too long on that? What have time and weather done to the

quality of, say, cobalt that was laid down 25 years ago? Should

we not, for example, change the ratio of imported ferrochrome to

chrome ore, now that a series of misguided actions in the past has

virtually destroyed our former capacity to smelt chrome ore into

ferrochrome?

Questions like these and remedial measures based on

answers to them can help bring about a viable stockpile, appropriate to current realities.

A new program will then be required for, among other

things, buying and selling relatively small quantities each year

so as to maintain the quality of stockpile materials on the one

hand and to make sure that markets are not dislocated on the other.

Further, Congress should establish parameters for certain

limited economic uses of the stockpile. This statement must not be

taken as implying there should be an economic stockpile, distinct

from the established one for defense. Rather, it means that in

the case of certain stockpile items which are essential to national

well-being and on which we are import-dependent. Congress should

Wll-6
A NATIONAL MATERIALS POLICY FOR A DESTABILIZED WORLD

PAGE 7

allow for carefully circumscribed conditions under which they can

be drawn on for economic purposes

.

Economic use of the stockpile could have value in providing the time required for the United States to implement such

long-term and more permanent solutions as substitution, conservation, and the development of alternate sources would provide.

The United States must consider this alternative in its domestic

and foreign supply policy.

The present policy of using the strategic stockpile as

a de facto economic stockpile, subject only to the vaguest guidance

and controls, we believe, is unwise and should be discouraged.

The legislators should explore to establish guidelines

under which the stockpile could be so used. Among these should be:

(a) A certain percentage of import dependency before an item

would be considered for stockpiling — example, 75%.

(b) The geographic location of the supplying countries should be

considered. In other words, the urgency would be quite different perhaps on an item from Canada, as opposed to an item

from China or Africa.

(c) The number of supplying countries would be heavily considered.

If only two or three countries supplied the item, it would be

considered with a great deal more concern than if twenty or

twenty-five countries could supply the item.

(d) The ease of substitutibility of the material would be an

additional criterion and the essentiality to the domestic

economy and to our security would also be weighed.

(e) We should take into account the economic or non-economic

leverage that we might have on the supplying country. In

other words, are they more dependent upon us than we are

upon them?

(f) The political stability of the supplying country would be

a major consideration as would be the cartelability of the

item.

Congress should also provide in the enabling legislation

the parameters under which items would be taken out of the stockpile. Stockpile disposal for price stabilization purposes I

consider would be unwise and an inadvisable intrusion in the

free market; however, certain other parameters for disposal should

be made quite clear so that all concerned would know when a disposal

time was near; for example:

Wll-7
A NATIONAL MATERIALS POLICY FOR A DESTABILIZED WORLD

PAGE 8

(a) Never dispose of stockpile for export purposes.

(b) Never dispose at a higher rate than the difference between

consumption and production in this country.

(c) Never sell from the stockpile when the material is available

through normal channels.

(d) Replace materials in the stockpile only at times of low market

activity.

(e) Insofar as possible, sell only to domestic consumers.

The most difficult problem is providing for the management

of the stockpile within the parameters set forth by .Congress. How

can economic use of the stockpile be designed and operated so that

it will not be misused for financial advantage of special interest

groups? How can it be sufficiently insulated from the political

process to prevent its misuse yet insure it will achieve the public

benefit for which it was established? It must be sufficiently

insulated from the political process that it may act in the public

interest and yet remain responsive to Congressional scrutiny.

One final word on stockpiling. It is not and cannot be

a long-term solution to our import-dependence on strategic minerals.

It can only serve as a buffer in case of crisis, tide us over in

case of war, give us options and maneuvering room in case of civil

disruption at a source of overseas supply. In short it is a limited

hedge against risk in a highly disturbed world.

6. We must, as the new law states, "promote a vigorous, comprehensive, and coordinated program of materials research and

development." At the same time, we must overhaul tax policies

towards the mining and metallurgical industries. Ironically enough,

these policies have been a disincentive, not only to research, but

to the capital formation needed to develop the fruits of research

as well as the resources available to us.

7. But even as we press on with R&D, we must avoid fantasies

of a quick technological fix. Substitution — the use of a new or

modified substance for another — can readily become a voodoo

incantation to exorcise the demons of mineral dependence. If one

remembers in this context that a substitute — for chrome say —

has to be of as good a performance quality as the material for which

it substitutes and also that it has to be reasonably pricecompetitive, then fantasy will give way to reality. And reality

is, for example, one considered estimate that it would take us

10 years to design away from chrome and might cost as much as a billion dollars; meanwhile, there is more than a thousand-year

supply of chrome in southern Africa that might well be sold for

something like 50 cents a pound.

Wll-8
A NATIONAL MATERIALS POLICY FOR A DESTABILIZED WORLD

PAGE 9

These comments should not be taken as depreciating

purposeful R&D across the spectrum of materials and minerals,

but rather as putting the problem of dependence in focus . The

one key element of that problem is diplomatic — which leads to

the next point.

8. We must reconsider the balance — some would call it

imbalance — we have struck in recent years between the requirements of national security and the advancement of social justice

throughout the world. The Washington Star put the issue well in

an editorial some months ago, entitled "Bulletin from the Resource

War. "

". . .While the Kremlin (wrote the Star ) has been

trying to advance its interests via build-ups of

well-positioned bases and client states in such

areas as Africa, the United States has concentrated

on human rights and hopes of coming out 'on the right

side of history' by forbearing to press material or

geopolitical interests against revolutionary regimes.

"There is still time for us to protect ourselves

in the area of strategic materials. But it will take

a rethinking of priorities in the way we define allies

and adversaries abroad as well as in domestic stockpiling policies."

Keep in mind that at the heart of our predicament is fair

access to sources. Put another way, the problem is not sufficiency

of the strategic minerals on which we depend, but rather the

peculiar nature of their geographic distribution. Given that

nature, disruption of some supply is a very real possibility.

And the power to disrupt is, in this matter, the power to deny.

I would briefly note, however, with respect to what the

Washington Star called "rethinking of priorities in the way we

define allies and adversaries abroad," the phenomenon of selective

indignation. This phenomenon has characterized much of our diplomacy

towards mineral-rich areas of southern Africa. For instance, at one

time we embargoed the importation of chrome from the then state of

Rhodesia while at the same time we were buying chrome from that

citadel of human liberty, the Soviet Union.

What is the answer to such inconsistency and, more

specifically, to the need for looking after our security interests

no less than our moral ones? At the least, it seems to me, we

should tilt to the principle that our conducting trade with another

nation carries no implication whatsoever that we either approve or

disapprove of that nation's internal policies.

Wll-9
A NATIONAL MATERIALS POLICY FOR A DESTABILIZED WORLD

PAGE 10

9. Further, in the diplomatic arena, we should try, in

international forums and with individual Third-World countries,

to shore up contract law and equity in financial and commercial

transactions. The essence of such law and equity is common benefit

to all parties concerned, as we have to make clear more forcibly

than we have done. To accomplish that will take, among other

things, persistence and a stockpile of patience.

It has been nearly 30 years since the Paley Report warned

us of the predicament that lay ahead for us in strategic minerals.

The warning was by and large ignored. The predicament is upon us.

But it need not become a crisis if we rally ourselves now to act

steadfastly and with purpose.

The materials and minerals law adopted last fall is a good start. But it is only a start. Nothing guarantees that we

will proceed with appropriate speed to make the most of it —

nothing, that is, except the initiative and resolve of people

like yourselves all across the nation.

Initiative and resolve are each a human resource. And

fortunately, America has those qualities in abundance.

If we bring them to bear now on our minerals predicament,

we will not and cannot fail.

1/29/81

E. F. Andrews

wn-10
tQ/! r^/Acj'/'y f' — — — ' ' COMMISSIONER

712 LAKEWOOD CENTER NORTH . CLEVELAND, OHIO 44107 • (216) 226-7700

TELEX 98-5559

February 2, I 98 I

Dr. John B. Wachtman, Jr. National Bureau of Standards

Materials Building B 308

Washington, DC 2023^

Subject: Feb. 9

“ 10 Workshop on Critical Materials

Needs for the Aerospace Industry

Dear Dr. Wachtman:

Cobalt, particularly fine cobalt powder, is essential as the binder

material for the tool carbides. The enclosures have been developed in our campaign as a trade associate to educate the Washington decision makers as

to the importance of tool carbides to the defense and civilian production

base and the importance of cobalt as the preferred binder for the carbides.

Summarizing the enclosures: 30 % of the cubic inches of the tool

cermets used are cobalt bonded. There are no substitutes having properties

equal to cobalt for steel cutting compositions even rumored. There are two

systems under development that may have merit in woodworking, mining, and

similar low temperature applications-- but they are not yet out of the

laboratory. The overall manufacturing efficiency of the nation as a whole

and aerospace in particular would be significantly reduced if the next best

substitute for cobalt-bonded tool carbides had to be used. For practical

purposes, all our cobalt comes from overseas and most of it from Zaire,

Zambia, Botswana, etc. The best solution to supply criticality is to guarantee under Title I I I of the Defense Production Act an assured market for

cobalt domestically mined. There are deposits in Missouri, Idaho, and Oregon.

Cobalt powder in the Stockpile would be desireable. There has been

no published information on shelf life so that people have been afraid to

stockpile powder. Information is being developed, and extended shelf life seems probable when properly packaged.

W12
Dr. John B. Wachtman, Jr. February 2, I 98 I Page 2

We interpret the notice in the Federal Register to be an invitation to

have someone attend the workshop. We hope to have someone there-- so if our interpretation is in error, please notify the undersigned.

For the Subcommittee on Cobalt Supply and Binder Research of the Cemented

Carbide Producers Association,

Very truly yours.

J. D. Knox, Chairman

Multi-Metals Division

Vermont American Corporation

715 E. Gray St.

Louisville, KY ^0202

Phone: (502)539-3781, ext. 266

JDK: In

Enc.: Letter of December 22, I 98 O, to Representative Donald Bailey.

Letter of December 22, I 98O, to Senator Henry Jackson.

Cobalt Powder: Its Importance to Cemented Carbide Tool Materials.

Some Cemented Carbide Tools and Their Applications, (photocopy)*

Close-ups, second edition.

cc: Allen Wherry, CCPA

Subcommittee members

'This is a copy of explanatory text and illustrations provided to Dr. John

Morgan of the Bureau of Mines, with a series of samples.

W12-1
712 LAKEWOOD CENTER NORTH » CLEVELAND, OHIO 44107 • (216) 226-7700

TELEX 98-5559

December 22, 1980

COMMISSIONER

Honorable Donald F. Bailey

206 N. Main Street

Greensburg, PA

15601

Dear Representative Bailey:

Premo Pappafava, President of General Carbide Corporation,

Greensburg, has suggested we send you the enclosed copy of

letters to Representative Santini and Senator Jackson

relative our concern for the supply of cobalt powder for

the cemented carbide tool industry. We will continue to

keep you informed and would be pleased to have your suggestions

for making our effort more effective.

For the Subcommittee on Cobalt Supply and Binder Research of

the Cemented Carbide Producers Association,

JDK: In

Enc

.

cc: Don Derthick

Premo Pappafava

Alex Fisher

A. P. l-Therry

Technical Advisor

Multi-Metals

P.O. Box 1475

Louisville, KY 40201

. D. Knox, Subcommittee Chairman

W12-2
— ' COMMI9SIONCN

712 LAKEWOOD CENTER NORTH • CLEVELAND, OHIO 44107 • (216) 226-7700

TELEX 98-5559

December 22, 1980

i The Honorable Henry M. Jackson

j United States Senate

j 137 Russell Building

I Washington, DC 20510

|i Dear Senator Jackson:

I

|j Members of the Cemented Carbide Producers Association (identiI,; fied by Enclosure 1) have been telling people in Washington of

i| our concern that the supply of fine cobalt powder for making

S' cemented carbide tools is very precarious and crucial to the

industrial efficiency of the nation.

That you are as concerned about the broad materials availability

problem as we are about our specific cobalt problem is evident

from the news. This letter has a twofold purpose: To make

' you aware of our special problem, and second, to ask your

advice as to the course our continuing efforts should take.

We made, on February 11, 1980, a presentation (Enclosure 2)

before the DoD Interagency Materials Availability Steering

Committee, chaired by Richard Donnelly. We prepared for

’ Dr. John Morgan, Jr. of the Bureau of Mines a kit of carbide

ji tool samples with application illustrations (Enclosure 3) . He has prepared color slides from the illustrations and has

I used the material in several presentations on problems of

ii materials availability. We had an hour and a half productive

i discussion this Spring with Dick Porter, Marilyn Viviano and

Chip Heinz at FEMA. We have talked to other people by phone.

[ The senior civil servants concerned with materials are as

^ concerned as we are about cobalt and fine cobalt powder, and

are in substantial agreement on a clear course of action

which requires congressional action. The action would be to

guarantee under Title III of the Defense Production Act an

assured market for cobalt domestically mined.

W12-3
The Honorable Henry M. Jackson

United States Senate

December 22, 1980

Page 2

The problem for us as producers of the cemented carbide tools is

that we require fine cobalt powder, the supply of which is

overseas and precarious, to make 907. of our product. The problem

for the national productivity is that cemented carbide made with

known substitutes for cobalt powder are 207. less efficient on

the average. Since carbide tools are used very extensively in

oil drilling, hard rock mining, coal mining, metalcutting, metalforming, fastener making, wire drawing, woodworking, the adverse

affect on national productivity would be drastic.

We would appreciate having your guidance for our activities in

seeking a solution to our problem of cobalt and cobalt powder

supply

.

For the Subcommittee on Cobalt Supply and Binder Research of the

Cemented Carbide Producers Association,

Respectfully

,

Don Derthick, President

Tungsten Carbide Manufacturing

14451 Myford Road

Tustin, CA 92980

Premo Pappafava, President

General Carbide Corporation

Greensburg, PA 15601

Alex Fisher, Vice President

Valeron Corporation

P.O. Box 3950

Troy, MI 48084

(J3

.

D. Knox, Subcommittee Chairman

Technical Advisor

Multi-Metals

P.O. Box 1475

Louisville, KY 40201

JDK : In

Enc. : 1) ’’Close-Ups" with up-to-date membership list inserted.

2) Copy of presentation at DoD by Derthick and Knox.

3) Xerox copy of pictorial material sent with samples

to Dr. Morgan.

W12-4
COBALT PO\^T)ER:

IT'S IMPORTANCE

TO

CEMENTED CARBIDE TOOL MATERIALS

11 February 1980

Report of a Study in Progress

for the

Cemented Carbide Producers Association

by

ESii TLNG5TEN OIRBIDS WiPG.

Saia ln»ru)iOAat Inc.

Donald J. Derthick

President

J. D. KNOX

14451 Myford Road -Tustin.Ca. 92680

Phone (714) 832-3013

Manager

Product and Process Developmarrl,

Industrial Divisloru VERMONT AMERICAN CORPORATION

715 E. Gray St

Louisville, Ky. 40202

502/589-3781

W12-5
Fine cobalt powder is critical to the production of

cemented carbide tools. The source is overseas and

politically unstable.

Mr. Derthick, President of Tungsten Carbide Manufacturing,

and I are an ad hoc committee of the Cemented Carbide

Producers Association charged with evaluating the status

of this problem in the government and determining what

we can do as a trade association to support effort

toward a concrete solution to the problem. We have not

made our final report and, therefore, the Association

has not yet established a formal position.

The Association is made up of 24 producers. We make

and sell cemented carbides for cutting metals, wood,

plastics, masonry, rock, coal; for heading, extrusion,

drawing, blanking, rolling, and general wear resistance;

for critical structual parts requiring high compressive

strengths and/or high elastic moduli.

The industry offers over 30 cobalt-bonded tungsten carbide

base grades among which there are real practical differences. These represent in excess of 907o of the cubic

inches of cermet tool materials produced. There are

several grades of nickel-bonded tungsten carbide,

primarily for combined corrosion/wear applications.

Nickel-bonded titanium carbide and the ceramics have

created niches for themselves, primarily in metal

cutting. These two have had considerable publicity over

the past 20 years as replacements for the tungsten carbide

base materials. Yet, today, together they have between

them no more than 27. of the total cubic inches of tool

cermets. Coatings on tungsten carbide cobalt substrates

have been the most important development of recent years.

The synthetic diamond and boron nitride tool tips are

formed on tungsten carbide cobalt supporting wafers.

I have phrased the foregoing to emphasize that cobalt

has been the element of choice for 50 years, despite

the fact that nickel has always been cheaper.

The basic U.S. problem with cobalt supply is 957. dependence

on overseas sources, combined with concentration of the

principle sources in one of the more politically unstable

parts of the world. Zaire directly, Zaire through Belgium,

Zambia, Botswana, and South Africa, together supplied

757. of our 1978 imports. A large proportion of the

committed capacity increase is in the same area. Domestic

sources are still in the talking stage. If they come on

stream, crucial to whether they stay on stream will be

the price the African producers are willing to accept in

a buyer's market.

W12-6
2

So much for background. Some of you have to consult your

crystal ball, assign probabilities, and then recommend

how much current effort is justified to minimize possible

future problems. We assume that both the costs of defense

preparation during peacetime and hot war requirements enter

into consideration. Following are some factors that seem

common to both.

There could be three relief programs for cobalt scarcity:

1) Substitutes for the cobalt as binder for

the WC.

2) Substitutes for the tungsten carbide/cobalt

system.

3) Domestic mining, refining, and powder making

facilities on stream supplying industry and

the Stockpile with cobalt powder.

Some substitutes for the cobalt as binder for WC are

alloys containing various proportions of nickel, chromium,

iron, molybdenum, etc. Grades of WC with nickel alloy

binders have been on the market for years, primarily

for combination wear/corrosion applications. As presently

on the market they are neither as impact resistant nor

as thermal shock resistant as the cobalt-bonded WC grades.

One maker estimates the loss of performance in noncorroapplications to average 207o. Iron and steel bonded WC

grades have been developed and tested over the years.

There have been no field applications of any consequence.

The WC/Co system seems to be one of those naturals.

Fe/C is another. Imagine what would happen if carbon

was no longer available to the steel industry. The

comparison is very much overdrawn but illustrates the

point.

Cobalt is apparently the binder of choice for several

reasons. It has zero wetting angle relative WC. It has

the W/C/Co eutectic that makes sintering temperatures

industrially practical. The solubility of W and C at

sintering temperatures is relatively high but at room

temperature, low. This has the effect of promoting

densification at sintering temperatures but keeping a

relatively ductile matrix at room temperature. It is

not a carbide former. It has both the FCC and HCP

structure with the transition from HCP to FCC at 427°C.

The reverse transition is possible by cold work. This

feature enhances the initial wet ballmilling together

of the tungsten carbide-cobalt powders. To the best of

my knowledge, no other element has this combination of

W12-7
3

favorable charac teris t icB . Some of the developmental

alloys may.

The second relief program would be substitute systems

for the WC/Co system: Titanium carbide base systems,

ceramics, coatings, diamond, boron nitride, lasers,,

electron beam, water jet. As previously remarked, the

Tie base and ceramic systems have had plenty of time to

establish their worth and yet have only a small fraction

of the market. One company markets a series of steel

bonded titanium carbide grades that have established

themselves in die and wear applications--perhaps 17o of

the market. Coatings have probably reduced the cost of

cutting more than any development since the introduction

of TiC/TaC additions to steel cutting grades in the

late 1930' s. They, however, are not total substitutes

since they are coatings on WC/Co base substrates. In the

very long term, the diamond and boron nitride tools may

have the greatest affect of all. It, however, will be

very long term. We do not yet have enough good machine

tools to fully exploit the ceramics. Lasers, electron

beam, water jets, etc., will all find a place. However,

by analogy with high speed steel, 20 years from now WC/Co

base grades will still be the most cost effective in

enough applications to require substantially more cobalt

than we use today.

I would conclude that there are no _ visible substitutes

having potential to equal the WC/Co system for impact/

wear or thermal shock/wear applications such as mining,

oil well drilling, blanking, heading, steel wire drawing,

steel mill rolls and guides, heavy interrupted metal

cutting. In the last few days, I have spoken to two

people who did quarrel with this conclusion for impact

applications. One has field tested a nickel alloy bonded

WC and found it equivalent to cobalt bonded WC , if hot

isostatically pressed. If it is the HIPing that makes

the binder system work, that could be an expensive solution. In order to HIP all products, the company that I

represent would have to triple capital investment, and

increase manufacturing cost 307o--with no performance gain.

The other stated that an alloy binder looked very promising

for mining applications--but nothing yet for metal cutting.

Making the substitutions in the remaining applications

presents problems. The obvious problems of converting

in a short period of time are the differences in processes

and sources of supply. Some not so obvious center around

the problems of cross contamination among the systems and

criticality of process control. For example, contamination

of WC/Co impact grade by 1 or 2% TiC reduces the impact

properties so that it becomes a loser in a competitive

W12-8
A

situation. It is almost impossible now to get unmixed

WC/Co salvage except from locations that use no other

types of carbide. If substitutes become prevalent,

the recycling process will be seriously compromised.

All of the substitutes apparently require closer process

control to achieve their potential properties than does

the WC/Co system. Both persons who think they have good

substitute binders agreed that process control was much

more critical than for the equivalent WC/Co grade. This

sort of limitation is not a small matter. I heard

recently of a significant product improvement that was

not launched because production management would not

accept responsibility for the people part of the process

control

.

So, my conclusion is still that substantial conversion to

substitutes under non-emergency conditions is not on the

horizon. The proven substitutes have been around long

enough to establish their competitive position. They

are, of course, subject to substantial improvement, but

so is the WC/Co system. High strength grades of WC/Co

have transverse rupture strengths in the 350-450,000

psi range. HIP’d specimens have had strengths over

700,000 and extrapolation of data suggests a potential

of over 1 million for the ideal structure.

This is a good place to interject that none of the

technical people I talked to would agree that there is

no substitute for cobalt. It is just that very little

good basic research on which to build has been done.

This leaves most people cutting and trying. Even this

effort will fade if the price of cobalt eases. It is

not likely that the requisite basic research will be done

by industry, and if it is, it certainly will not be

published. I believe that we would advance faster and

more efficeintly if there was more basic knowledge on

which the product developers could build. National

Science Foundation and similar federal programs are

probably the only practical approach to obtaining the

basic knowledge.

We do not intend to suggest that the various substitutions

are impossible, but that the resulting inefficiencies in

manufacture and loss of performance probably more than

justify the third alternative; that is, assuring the

supply of cobalt by providing for domestic mining and

refining to metal, and converting a portion of the metal

to fine and extra- fine powder. This will only fly with

government subsidy. It could be two-fold; continued

and strengthened research to reduce the cost from

W12-9
5

domestic sources, and a long term Stockpile buying

program that would set a floor price. The precedent

is there in the tungsten acquisition program of the

early 1950' s. The need is there in that the Stockpile

is 45 million pounds short of target. Fine cobalt

powders can be packaged for good shelf life,* and a

three-year supply at present levels would be 4,200,000 11 ($130,000,000)

.

Mr. Derthick, whose expertise is greater than mine in

the applications of carbide, will discuss some of the

specifics of applications. VJhen he is done, we think

you will be convinced that the importance to the national

defense is worth investment in binder research and cobalt

supply

.

^African Metals has verbally reported results of test

conducted as follows. We are seeking the original

report

.

1.

) Extra fine cobalt powder was loaded into

5 kg. hermetically sealed aluminum cans.

Starting O 2 content of the powder was

approximately 0.47c

2.

) Each year one or more cans were opened and

the loss of weight by hydrogen reduction

of the oxides determined.

3.

) 1st year -- wt. loss increased over start 0. 057o.

2nd year -- additional weight loss 0. 057..

3rd year thru 10th year -- nil.

4.

) Conclusion would be that after the oxygen from

the air trapped in the container has converted

to cobalt oxide the remaining nitrogen is an

inert atmosphere.

W12-10
The U.S. carbide industry is comprised of approximately 50

manufacturers ranging from less than one million to several hundred

million in annual sales. The great majority are closely held corporations, although most of the major producers are divisions of a parent company.

Although all producers use similar powdered metallurgy techniques, and at least 95 percent of products contain the basic

refractory metal carbide-cobalt system, there are a broad variety

of businesses specializing in different market segments.

The basic classification of products has six categories:

Cutting tool inserts , blanks , brazed tools , wire bar and tube

drawing dies , mining tools and mining blanks , and a category called

all other . However, each of these categories can be further divided

into sub-groups.

A few carbide manufacturers attempt sales of all or most products

The majority specialize in market segments that match management

philosophies, strengths and available capital with market requirements

Carbide cutting tools for metalworking have the largest market,

and therefore have attracted the greatest number of producers.

This concentration of efforts results in a somewhat distorted

view of the carbide industry by outsiders. Frequently, the press

and reports from government agencies, or other interested parties,

tend to concentrate only on machining applications. However,

according to figures issued by the C.C.P.A. in 1978, less than 60

percent of all sales could be directly identified as cutting tools.

W12-11
W12-12

Also greater than 50 percent of the weight of cobalt is used for

other than cutting tools. This is due to the higher percentage of

cobalt in other products. The majority of the remaining sales

portion is used for v;ear, oil field and mining applications.

Let's examine each area for material requirements, and potential

for technology change.

As Mr. Knox has stated, there are a number of recent developments that have improved or replaced indexable cutting tools, such

as chemical vapor deposited coatings, cermets, nickel bonded

titanium carbide, sintered diamond, and others. When these

developments occur, much publicity is released. The uninvolved

observer is of the opinion that a rapid change is occurring, which

will soon obsolete existing systems.

However, change occurs very slowly. With the exception of

coatings, each of the above-mentioned developments have succeeded

in finding applications in a market segment. Coatings have become

accepted for most applications, but user acceptance is gradual.

In the next several years, coated inserts are forecasted to reach

50 percent of cutting tool marketshare. Coatings were introduced

ten years ago.

In spite of these significant advances over the past decade,

the basic system is still metal carbide-cobalt for greater than 90

percent of all non-ferrous cutting tool sales. Cost, machine

capabilities, user reluctance, undesirable properties, and

W12-12
application have been the limitations which have prevented these

innovative materials from gaining greater marketshare.

Consequently, most carbide producers involved in cutting tool

sales have manufacturing positioned to produce only tungsten carbidecobalt based products, which are offered either coated or uncoated.

The category listed as blanks includes many end uses. Included

in this are blanks to manufacture brazed tools and wear parts.

Almost all blanks used to manufacture brazed tools are from the

tungsten carbide-cobalt system. Brazability and thermal shock must

be considered on use of materials.

Wear parts have good potential for other known binder systems,

due to the generally lower physical property requirements in most

applications. However, many products in the wear category are

fabricated from recycled materials, due to cost considerations.

Draw dies are subject to materials substitutions, but are of

insignificant volume.

Mining tools and mining tool blanks present the greatest

dilemma on use of substitute materials.

Disposable coal mining tools and rock drilling tools use the

greatest portion of material in this category.

Coal tools have brazed carbide blanks supported by steel

shanks. The assembled tools are used for underground mining of

coal. Also, similar products are used for various construction

applications, such as road scarifying and trenching.

W12-13
Rock drilling tools include rotary rock bits for oil and gas

exploration, open pit mining, water well development and tunneling,

as well as various other percussion types used for many applications,

including construction.

All of the above require the tungsten carbide-cobalt system.

This is particularly true for rotary rock bits used in the oil field.

These bits encounter tremendous forces at up to six-mile depths.

A fine balance between toughness and wear resistance is required

for the carbide parts which form the teeth of the rock bit. This

requirement of hardness with toughness has eliminated all other

materials as potential substitutes. The bond strength between carbide

grains and binder must be maximized to prevent crack propigation,

which leads to breakage. Premature failure can cost many thousands

of dollars while hundreds of sections of drill pipe are pulled from

the hole. Many substitutes have been tried but all have drawbacks.

More than 20 percent of the total U.S. output of carbide is used in

this application.

Coal tools also have similar requirements in physical properties

of carbides to materials used for rock bits. However, the cost of

premature failure is not nearly as great.

The " all other ” category includes hundreds of specialized

applications that are too niimerous to mention. However, again most

applications require the superior properties of the tungsten carbidecobalt system.

W12-14
We have attempted to demonstrate the total dependence the

carbide industry has on cobalt. Substitutes for the majority of

applications are not in sight.

Unfortunately, our industry is limited to one major source of

supply. Cobalt mined and refined in Zaire is processed to a pure,

micron-sized powder at Metallurgie Hoboken-Overpelt , S.A. in

Belguim, which is distributed in the U.S. by African Metals

Corporation. Other sources are available for smaller quantities.

The requirements for manufacturing satisfactory carbide powders

are such that, for most applications, only one type of powder is

acceptable. This extra-fine powder has a morphology that lends

itself to good distribution by ball milling or attrition milling.

This property is necessary to surround each carbide grain with

cobalt to produce the desired strengths.

Other types of cobalt powders are used for specific applications.

The purity also is of great importance. Many elements cause

undesirable effects on sintered carbide, which limits performance.

Some oxidation can be tolerated, but excessive oxides cause quality

problems

.

Now perhaps you can see our dilemma. Cobalt must be used for

most carbide applications. This material is supplied by one unstable

nation, to be processed by one European company, distributed in the

United States by a single source. The powder must be of an exact

nature and of good purity.

W12-15
Currently our industry is on allocation. There is sufficient

powder available now, but any disruption in that chain could spell

disaster. That very nearly happened during the invasion of Zaire in

1978.

There are other cobalt sources available to us for a portion of

our requirements.

Other European companies supply small quantities of satisfactory

powder. Sylvania has a plant in the U.S. that will distribute cobalt

in some form from material gained through reclamation of scrap. Other

hard scrap reclamation methods provide cobalt by returning cobaltcontained parts to powder.

Reclaiming is a very important source, with estimates running as

high as 25 percent of all carbide sold being produced from recycled

scrap. However, the greater portion of carbide is lost forever

through attrition, as in the case of rock drilling.

Hoboken has a plant under construction in North Carolina which

will produce extra-fine powders. Although, this will replace materials

now produced in Europe the cobalt will continue to come from Zaire,

still leaving us one major source.

Our industry has had a difficult time in gaining attention to

our problem. We use less than 5 percent of the U.S. requirement for

cobalt, and, therefore, are not considered in crisis planning.

However, we are a substantial factor in U.S. productivity. Almost

all consumer goods use carbide somewhere in the manufacturing

process. Interruption in carbide production would substantially

W12-16
reduce the output of many products, including military hardware.

It would take unbearably long for our industry to make a substantial

change in the present carbide system.

In addition, energy output would be seriously impaired by use

of a non-cobalt system, due to a major reduction in performance.

Oil field rock bit plants are operating at full capacity, and would

be unable to supply the additional demand caused by poorer performance. The fact that this could occur is in direct opposition to

our current policy of less dependence on foreign oil.

Alternate binders have been investigated for 50 years. Many

companies have spent considerable sums on research for alternate

binders with little success. Other systems are in use for specific

applications, but cobalt is used in greater than 95 percent of all

products

.

Therefore, Mr. Knox and I propose the following:

1. That plans are formulated as soon as possible to place

a minimum of two years usage of extra fine cobalt

powder in the G.S.A. stockpile;

2. That the government assist our industry to research

satisfactory alternate binders to cobalt through the

National Science Foundation, Bureau of Mines, the

Department of Defense or other government agency

research grants; and

3. That the government assist in the development of a domestic source for cobalt, including a process plant.

W12-17
This project would provide the 45 million pounds required

to replenish G.S.A. stockpiles.

Mr. Knox and I are proposing what we feel are the needs of

our important industry, and that our position is generally supported

by all other member companies.

We ask for your assistance and guidance to help us alleviate

this serious situation.

W12-18
Some Cemented Carbide Tools and Their Applications

The samples and Illustrations of this collection are representative of some major

application areas for carbide tools, but are by no means exhaustive. Not Included

are steel strip rolls and guides, blanking dies, powder compacting dies, snowplow

edges, tire studs, extrusion dies, wear parts for valves, slitter knives for steel

strip, paper knives, and any number of wear applications from lining power plant

fan housings to tips for surgical forceps.

The message intended is the pervasiveness of this material throughout our national

production base and the importance of maintaining its availability and quality

to the efficiency of that production. Ninety percent (90%) of these tool materials

are the tungsten carbide/COBALT base composition. For substantially all of the

applications of this 90%, there are now no substitutes for the COBALT in the composition, and where substitutes can be used there is a loss of efficiency.

1) Tungsten carbide/COBALT "compacts." —Oil and gas well drilling as shown. —Blast hole drilling. —Tunneling, airways, etc., in mine preparation.

2) Tungsten carbide/COBALT inserts for "point attack" bits which are

the cutting elements on continuous miners.

3) Tungsten carbide/COBALT inserts for "roof drill bits" which are

used to drill the holes for the bolts which hang the roof from

sound rock strata above.

4) Tip of tungsten carbide/COBALT base composition with tantalum and

titanium carbide additions. Tip has been used. "Craters" are

result of chip erosion. In the picture, tool is behind jury rigged

chip deflector.

5) Indexable inserts of tungsten carbide/COBALT base composition. Some

with tantalum carbide and titanium carbide additions. Some with

titanium nitride (gold) coating. Several have been used. By indexing,

each corner can be used.

6) Wire drawing dies. The illustration is actually of a diamond die.

Diamond dies are used on smaller sizes. Tungsten carbide/COBALT dies

are used for medium and large dies, bars, and tubes. The sample is

a used carbide die.

7) Tungsten carbide/COBALT punch used to cold form the cavity in the

sample sparkplug body. Would normally be mounted in position shown (7).

8) Tungsten carbide/COBALT insert for heading die which would normally be

mounted in position shown (8). The machine is a five blow parts

former which would have a cutoff position and four die/punch pairs.

(Sample die insert is not for sparkplug.)

9) Tungsten carbide/COBALT tips for circular saws, molding cutters,

routers, and planers for woodworking.

W12-19
1) Tunf,stcn carbl dc/COBALT

"compacts." —Oil and gas well drilling

ns shown. —Blast hole drilling. —Tunneling, airways, etc.,

in mine preparation.
3) Tungsten cnrbidc/COBALT.

Inserts for "roof drill bits"

which are used to drill the

holes for the bolts which hang

the roof from sound rock

strata above.

2) Tungsten carbide/COBALT

inserts for "point attack"

bits which are the cutting

elements on continuous miners
98” X 50’ cc WALDRICH SIEGEN Heavy Duty N/C Turning Lathe; D-7992 (1973)

98” X 50’ cc WALDRICH SIEGEN Heavy Duty N/C Turning Lathe; D-7992 (1 973)

98” X 50’ cc WALDRICH SIEGEN Heavy Duty N/C

Tip of tungsten carbide/COBALT base composition with

tantalum and titanium carbide

ing Lathe; D-7992 (1973)

additions. Tip has been used.

"Craters" are result of chip

erosion. In the picture,

tool is behind jury rigged

chip deflector.

W12-22
!

i

I

i

I

I

5). Indexable inserts of lunRSlcn

cnrblde/COBALT base composition. Some with tantalum

carbide and titanium carbide

additions. Some with titanium

nitride (gold) coating.^

Several have been used. By

indexing, each corner can be

used

.
so. SHIP mac (pass sta von 4) XJB/

40. ROUGH AND FINISH GROOVE

R^h 4.5" dia 297 rpm 350 sfm .006 feed

' Rgh 4.7" dia 284 rpm 350 sfm .010 feed \

; 3.8" dia 352 rpm 350 sfm .010 feed

I Fm 3.8" dia 402 rpm 400 sfm .005 feed

Fin 4.7" dia 325 rpm 400 sfm .005 feed

80. FINISH BACKFACE AND RGH C80RE

Face 4.1" dia 280 rpm 300 sfm .009 feed Rgh 3.46" dia 331 rpm 300 sfm .009 feed l/nZ-24

85. STOP CrClE-REMOVE CHIPS5

.OlSRfiD.

90. FINISH CBORE

3.49” dia 383 rpm 350 sfm .005 feed

100. STOP CYCLE-INDEX CWCKJ80°

~Tl 67REPEA fMovfSEWENa

I 120. sfOP~CYCiT-mDrCHUCK 90°

I

I 130. FINISH FACE AND CHAMFER

I 7.8" dia 220 rpm 450 sfm .015 feed

I 140. SKIP INDEX-(PASS S TAVONS 2 S3)

150. FINISH BORE AND CBORE

T! X 4.4" dia 260 rpm 300 sfm .010 feed VY 4.6" dia 243 rpm 300 sfm .005 feed
I

6) Wire dr.iwlng dies. The

llliutration Is actually of

I a diamond die. Diamond dies

are used on smaller sizes.

Tungsten carbide/COBALT dies

I are useW for medium and large

dies, bars, and tubes. The

' sample is a used carbide die.

,1

W12-25
lunRslcn carblde/COliALT Insert

for beading die which would

normally be mounted in position shown (8). The machine

is a five blow parts former

which would have a cutoff

position and four die/punch

pairs. (Sample die insert is

not for sparkplug.)

tfnfnleu

mduters

ssociati

7) Tungsten carbide/COBALT punch

used to cold form the cavity

in the sample sparkplug body.

Would normally be mounted in

position shown (7).
!
close-ups

in your

world of people

I

W12-28
i IIII Ij 1 h1 • I

iii

111 I

j:i

1'^ iI

l'Iir

'I

Chapter Two:

Chapter Three: Chapter Four: Chapter Five:

Chapter Six: Chapter Seven:

Chapter Eight:

Would You Repeat

The Name?

Properties

Time Exposure

The Cutting Edge

Strategic Value To The

Nation

Wide-Angle Lens

Instant Replay

How Do They Make It? Portrait Shots

Who’s Involved?

This work updates the book of the same name

authored in 19^ by

a special industry committee,

George T. Brennan, Roger L. Brogan, Prank W. Hogan and Allen P. Wherry. The author committee of this edition is A. G. Weiland, E. S. Hilty, G. T. Brennan and A. P. Wherry.They were

privileged to draw upon the informational re- sources of the Cement^ Carbide Producers As- sociation members and referred extensively to Cemented Carbides, The Macmillan Company,

New York, 1960, by Dr. Paul Schwarzkopf emd

Dr. Richard Kieffer; and Treatise on Powder Metallurgy, Vol. II, by Claus G. Goetzel, Inter- sdence PubUshers, Inc., New York. Artwork: Morgan Studios and

Ripley Associates

Printing: Central lithograph Company

Ihe work is published by Cemented Carbide

Producers Association.

William D. Ellis and Pauline G. Panslow,

Editors I1

W12-29
Chapter One -Would You Repeat the Name?

Yes — Cemented Carbides ... The Essential Industry.

The Quietest Revolution in History

To the average citizen, cemented

carbides are the best kept secret in industry. If he has seen any, he

doesn’t know it. Comparatively speaking, the quantity producted is miniscule; and most of it functions in key

places he seldom sees. Yet cemented c^u:bide8 make pos- sible the ongoing industrial pro- duction revolution. No substitute

for them has appeared and none is forecast by metallurgical science. What are they?

The Hardest Metal

Made By Man

The layman can see cemented

carbides, but usually in their least crucial uses (ballpoint pen balls, knife sharpeners, cement drills, wear surfaces on certain home

tools).

In industry, however, cemented

carbides bear the brunt of nearly

every severe industrial ac- tion . . . pounding, stamping,

punching, rolling, abrasion, cor- rosion. Their two major missions are cutting and wear resistance

which makes them the basic shock

troops of all industry.

Cemented carbides are fine particles of hard carbides (most com- mon being tungsten, tantalum, ti- tanium, niobium) held in a matrix

such as cobalt or nickel. They have revolutionized productivity, making possible huge pro- duction runs of other products at tremendous speeds. You find ce- mented carbides on the cutting

edges of tools, or on the heavy wear surfaces of high speed machines: the rolls; punches; dies; bearing surfaces. Gram for gram, cemented car- bides are comparatively expensive;

but in terms of what they make

possible, they are a bargain. In mining and petroleum

drilling, it is the carbide cutting

edge that lets us cut through hard

rock at high speeds. In metal- working, it is the carbide edges

which let us cut or stamp or work

production metals at tremendous

speeds. A single example easily en- visioned by the layman is the com- mon beverage can. This is a deep

drawn product made from a flat metal blank. Steel tooling won’t endure this operation at the new

fantastically high volume, high

speed production rates. Beverage cans today are made in the

billions. Another example which speaks

eloquently of the super hardness

and toughness of tungsten carbide

is that this material is often used

to manufacture armor -piercing, anti-tank projectiles.

W12-30
The Great

Leapfrog Race

Find harder, tougher metals,

then find a metal hard enough and

tough enough to cut them. Design

hotter and higher compression ratio turbo-jet engines, then find metals which can survive the heat and

stress. This is the eternal leapfrog

in human progress. Cemented carbide technology is a key leap in the development of

almost every industry, and could

now assist some companies who

have not used or been exposed to

its full-range capability. In addition, the industry represents ex- citing vocational prospects for many who are not aware of its to- tal reach. And for the engineering

designer who has filed away the drawings for “the impossible

dream” . . . cemented carbides may

now make it feasible. This book is published by the Cemented Carbide Producers Asso- ciation for people with a need to know. The Association, or any

member of it, will be pleased to provide additional information if desired.
Chapter Two — Properties

“Tailorability” ... to deliver al- most any desired combination of wear resistance, shock resistance, or temperature resistance is per- haps the most exciting feature of

cemented carbides, possible be- cause their composition can be

closely controlled. The carbides of tungsten, ti- tanium, tantalum, and niobium,

for example, approach the di- amond in hardness.

Various properties to perform

various end uses are achieved by

varying the combinations of the

metal carbides and the binders.

An important development is the use of titanium carbide (without

any tungsten carbide content)

bonded with nickel and mo- lybdenum carbide. In addition, properties can be

greatly varied by changing particle size; and the industry can

supply these various particle sizes

to achieve these specific properties.

Some specifications call for uni- form micron particle size, others

for multiple grmn sizes. Basic research into the proper- ties of cemented carbides has

reached the point where available

data make it possible to predict

their performance in most appli- cations. Their major roles are in: — resisting wear — cutting materials

Wear

Chiefly needed to resist any

high-wear action are hardness, me- chanical strength, compressive

strength, and resistance to cor- rosion and oxidation at various

temperatures.

What is an example of dramatic wear resistance which might be

envisioned easily by the layman?

On the easy-open or snap-top open- ing tab of beverage cans, have you

noticed the hairline scoring on

top? That scoreline is produced by

carbide tooling which must have a

perfectly finished triangular ridge

with only a .005 flat top. This

makes it sharper than most

kitchen knives. Tungsten carbide

is used because of its wear re- sistance. Millions of lids can be

produced before the tool is worn

enough to require replacement.

The binder or matrix which

holds the carbide particles together

is generally cobalt. The less cobalt

used, the harder the cemented carbide. Increasing the cobalt binder

decreases the hardness while in- creasing the toughness. However,

even with as much as 25 percent

cobalt content, cemented carbides

are harder than most steels and a match to the hardest steels. The

cemented carbides used for cutting

tools generally have cobalt binder

up to about 8 percent. Ten percent

or more cobalt binder creates a ce- mented carbide which is very good

for wear and abrasion resistance

in combination with high toughness, as in rock drilling. Carbides

with binder above 12 percent are generally the die and stamping

grades.

A general-purpose cemented car- bide used in machine tool cutting

will have a Rockwell A hardness

of approximately 92.0, while a wear grade having 10 percent co- balt binder may have a Rockwell

A hardness of approximately 89.5. As the cobalt binder increases, the

transverse rupture strength in- creases ... to a maximum at 15 to 16 percent cobalt, then decreases

slightly as cobalt content is increased.

Other physical properties vary

according to composition, but the

hardness, wear resistance and

transverse rupture strength are the

most critical attributes for judging

how good a tungsten carbide grade

is for a given application. The

transverse rupture strength ap- proximately doubles between a

general-purpose cutting grade and

an impact-resistance wear grade.

Generally wear resistant and die grade cemented carbides are basic- ally tungsten carbide-cobalt grades as opposed to steel-cutting grades

which may need, in addition, tan- talum carbide or titanium carbide. For most cast iron and nonferrous

metal cutting, the straight tungsten carbide-cobalt grades are

used.

W12-32 3
I

I

Cutting Characteristics

The controllable properties of ce- mented carbides make it possible

to provide extremely hard cutting

tools with high abrasion re- sistance, high transverse rupture

strength and low coefficients of

friction. Cemented carbides also provide great rigidity, exceptional

antiweld properties, and retention

of high hardness at elevated cut- ting temperatures. They suffer

minimal deformation at high

working temperatures because of the cemented carbide characteristic of high hot hardness.

The extremely hard metal car- bides have great wear resistance,

making possible closer tolerances at high volume production than can be obtained with other cutting

tool materials.

General-purpose 6 percent cobalt

cast iron cutting grade has trans- verse rupture strength in excess of

225,000 pounds per square inch.

Increasing cobalt content to 10 percent increases the transverse rupture strength in a wear grade

to at least 300,000 pounds per

square inch. A 13 percent cobalt wear grade has a cross break

strength of nearly 400,000 pounds

per square inch.

Fighting edgewear and cratering

(page 9) or a combination of both

in machining different grades of

steel, the cemented carbide pro- ducer varies the composition of the

material. In combating cratering, tan- talum carbide and titanium car- bide are added in large pro- portions. The tantalum carbide

works against deformation at ex- tremely high temperatures.

While there is much more to this than indicated here, the real point

of the example is to show perhaps

the principal advantage of ce- mented carbides, namely that their composition can be quite precisely

tailored to the user’s application ... to the type of material

being worked, to the type of cut- ting, the cutting speeds and/or

feeds, and the working temperatures involved.

The purpose of this book is not

to provide detailed working data,

readily available by querying car- bide producers, but to give some

idea of the flexibility and range of

this tailorability.

Opposite —

Above: Cutting Below: Wear resistance

4 W12-33

Chapter Three— Time Exposure

... at the wear point

In 1913 in Germany, two men

bent over a wire drawing die con- taining an insert they had made

by sintering compacts pressed

from powders of tungsten carbide

and molybdenum carbide. They

were H. Voightlander and H. Lohmann, and they had just

solved the Kaiser’s diamond

problem.

German patent 289,066 was is- sued, covering the first practical

cemented carbide use, a substitute

for diamond wire drawing dies. Since then resistance to severe wear has been at the heart of all cemented carbide applications, in- cluding machining. But since machining is a world of its own, it is separately covered in Chapter

Four. Wear parts, exclusive of cutting

tools, represent a considerable per- centage of cemented carbide use. Composition for Wear

In wear resistance we want the correct combination of hardness

and mechanical strength combined

with the required compressive

strength and corrosion and oxidation resistance. The majority of cemented car- bides used for wear parts are made

from straight tungsten carbide and

cobalt. Some exceptions to this basic composition are found in applications like heading or hot ex- trusion dies where high

temperatures suggest adding tan- talum carbide. Light shock wear

applications are usually handled

with the use of a tungsten carbide

plus 3 to 8 percent cobalt; medium

shock applications with the use of

tungsten carbide plus 9 to 15 per- cent cobalt; and heavy shock sit- uations with the use of tungsten

carbide plus 17 to 30 percent

cobalt.

Dies

Cemented carbide dies currently

in use have inside diameters from

as small as the thickness of a human hair to as large as a bushel

basket. Cemented carbide assures

lasting high precision tolerance in the die cavity under tremendous

volume production. For example, the very wire drawing application which sparked the

industry and solved the Kaiser’s

wire drawing problem has now

mushroomed anew with the tre- mendous demand for steel-belted radial tires. But steel rolls on mills

which produce the rod for the wire

can’t endure under the heat gener- ated by the very high-speed, close tolerance production needed for such high volume work. Cemented

carbide takes over from steel in this and other applications be- cause carbide will maintain size under higher speed, higher volume

production, and permit greater size reductions in one step. The dramatic integrated circuit industry requires production of lit- erally billions of die-stamped ter- minals held to close tolerances.

Only carbide stamping dies can

deliver this. One company which

produces 10,000,000 . . . (repeat ten million!) . . . terminals per day

stamps 45 per second on a triple die at 900 strokes per minute. The

units spray out the delivery end

into the tote tray like water out of a hose.

W12-35
Rolls

Cemented carbide rolls have

been produced in sizes from a few

inches in length to several feet, for rolling products as diverse as

stainless steel strip for razor blades,

exotic-metal sheets for aerospace

applications, sound recording tape

and aluminum foil. Harder than

the hardest steel rolls, tungsten

carbide rolls have more than double the modulus of elasticity of

steel, hence more than twice the re- sistance to flattening and de- flecting under pressure. They take a mirror finish which they transfer

to the product, and their working

life exceeds steel rolls many times.

General

Wherever wear is the major bot- tleneck to production progress, ce- mented carbide advances may give us new capabiltities.

For centuries, cables sliding

around capstans wore grooves in any material until we learned to face the capstan with cemented

carbide, which outlasts steel 100 to one.Cemented carbide balls and

seats in some types of valves were enabled to retain their size and

shape as process industries started

to transport more abrasive and

corrosive materials.

In today’s fuel hunger, improved

cemented carbides endure under

higher pressures in cylinders and

liners needed to reach deeper re- sources both in exploration and

production in oil and gas.

In sand and grit blasting under

increasing pressures where the

very purpose of the blasting particles is to cut, how do you protect

the nozzles and chambers? Ce- mented carbide.

While these applications are now

common, environmental pressures, energy conservation, short work

hours and other societal forces will demand quantum jumps in productivity and hence greater wear re- sistance. A National Material Advisory Board report forecasts a hugh growth by 1987 in cemented

carbides usage: “The greatest

growth is predicted in wear parts.”

The advent of new en- vironmental emphasis, for example, coupled with energy shortages,

force industry to a number of

sweeping product and process

changes unattainable without a sharp step-up in wear resistance. The already mentioned beverage

container exemplifies both. Needed was a container using less energy- consuming metal, and with fewer

litterbug hazards.

The industry moved from a three-piece to a two-piece, thinwalled, drawn-and-ironed can re- quiring a deep draw in billions of

copies. Only cemented carbide tool surfaces make it work.

In the environmental drive to eliminate the throw-away tab pre- viously mentioned, a scoring edge was required which could maintain precision in the face of the wear from huge high-speed runs. As the cashless society breaks

upon us, business machines triggered by telephone will proliferate

and will operate around the clock. Small, but crucial, wear parts will log 24-hour friction. In those solid- state electronic business machines

without moving parts, the machines which build them suffer

high volume wear. Already Madame Consumer goes to the supermarket in large numbers using her

pocket calculator which required

production by cemented carbide

tooling.

This presages a home computer

age which will require billions of

miniaturized parts stamped with

carbide dies. However, while new applications

will multiply, the familiar applications will step up their cemented

carbide requirements dramatically.

In satisfying the nation’s energy

hunger by deeper drilling, improved cemented carbides endure

under higher pressures to reach

deeper fossil resources. Coal gas- ification processing will use ce- mented carbide wear parts. The

working surfaces of coal pul- verizers are armored with ce- mented carbide brazed into place.

The work rest blades in centerless grinders are faced with ce- mented carbide for longer life. Cemented carbide strips on the

blades and guides of paper cutters will remain sharp despite the anticipated surge in book production

in the future. Hammers and blades for stir- ring, mixing, crushing, pulverizing

and blending materialssuch as

paint pigments, tobacco, grain and

coal now enjoy tremendously in- creased life spans with cemented

carbide wear surfaces. In wear parts . . . bushings,

mandrels, die nibs, cams, gears, arbors, sleeve rings, rollers,

slitters . . . cemented carbides will outlast and outperform other materials up to 200 to one. The life of a cemented carbide die can be 20 to one or better over a similar steel

die.Increasingly we will find carbide

inserts in swaging dies to hammer

down refractories in high heat

where alloy steels wear considerably, and in steel dies for cold heading rivets, for cold swaging

wire, needles, profiles . . . with a 30

to 60 percent longer life than tool

steels. In many cases, where wear has

been blocking revolutionary new

production volume requirements,

the gate has been opened by ce- mented carbides.

W12-36
Chapter Four

The Cutting Edge

With diminishing patience, we

tune out voices telling us man’s

progress is utterly contingent upon

everything from aspirin to xerog- raphy. Yet, truly, man’s increasing

ability to work metal does seem to pace our advance.

The chief factors in production

metalworking success are pre- cision, speed and output. Tremendous advances in machine tool de- sign and in measuring and

sensing devices have achieved

marvelous precision. But speed

and output have been limited by

cutting tool materials.

Cemented carbides are pivotal in that part of the metalworking

story.

A cutting tool exerts force along

its cutting edge to overcome the co- hesion of the metal in the workpiece. The resulting shear plane

reaches maximum stress when per- pendicular to the tool face. The

metal will rupture with continued

application of force, becoming a continuous chip or segmental

chips. Cutting tools removing

metal must be able to withstand

tremendous forces. Machinability is influenced by

the type of metal being cut, the

type and geometry of the cutting

tool, the cutting process, the type

of machine tool, the size and shape

of the cut, the cutting fluid, the

cutting conditions . . but most importantly by the material and ge- ometry of the cutting tool. The

user wants to remove metal at a

rapid rate at low cost to produce a

specified surface finish.

In direct response to these conditions, we select the best ce- mented carbide compound for the

specific job. It will have a specific

composition and grain size, and

will have been manufactured in a

controlled way. Both the amount

of metal carbide and the amount

of metal binder, for example, affect tool hardness. Edgewear and

cratering, the two basic types of wear in machining operations, can

be limited by carefully selecting

the cemented carbide grade for the

application.

W12-37
Edgewear/Crater Wear

Edgewear, which occurs along

the cutting edge of a tool as a re- sult of friction or abrasion, is most

critical when machining materials

which produce a brittle, flaky chip.

This occurs mostly when machining nonferrous metals, non- metallics and most cast irons.

Strong wear-resistant cemented

carbides are used, usually combinations of tungsten carbide and

cobalt. Cratering which occurs on the rake face of the tool at the point of impingement of the chip results from high temperatures and pres- sures which tend to cause the chip

to weld to microscopic particles of carbide in the tool face. These weld

points build up, creating pressures between them and the chip which

increase until they tear out and

wash away. Most steels, and some

highly alloyed cast irons, when

machined, are prone to cause a

combination of both edgewear and

cratering on the cemented carbide

cutting tool. To overcome this ten- dency, titanium carbide is added to the tungsten carbifle-cobalt mix.

The titanium carbide decreases the tendency of welding and sub- sequent cratering, because the dif- fusion temperature between steel and titanium carbide is higher

than that between steel and tung- sten carbide. It also lowers weld

strength if welding does occur. Crater resistance as well as re- sistance to deformation is im- proved by the use of tantalum car- bide and titanium carbide.

Reduction of the amount of cobalt also improves resistance to

cratering.

Although cobalt predominates as

a binder in cemented carbides for cutting tools made with tungsten

carbides, nickel and molybdenum

are used as binders in titanium

carbide tools operating at high

speeds to produce fine finishes.

The titanium carbide -nickel- mo- lybdenum carbide compositions

also serve in some tools for inter- rupted cutting.

While we have discussed here

the classic cutting edge, the degree

of advantage accrues to other met- alworking — stamping, impact applications, wire drawing, extrusion

punching, drawing and ironing.

Coated Carbide

Development

Coated carbides are a relatively new development which enhances

those properties previously de- scribed, minimizing wear and in- creasing length of production runs while allowing utilization of high

speeds.

Carbides really caught on as cut- ting tools rather late, the early

1940’s. With high usage it became

apparent that if carbide had a weakness in cutting it was largely

caused by the friction heat of the chip sliding across the tool face. Major research went into de- veloping tool materials that would

reduce chip friction, including

many types of treatment of the carbide and also a multitude of compositions. None was really suc- cessful until the development of the types of coatings now com- monplace. These first gained ac- ceptance in the late 1960’s. Today’s coatings are single or multilayer coatings of metallic car- bides or nitrides which at least in part reduce chip friction. Coated carbides are available in a variety of types including ti- tanium carbides and nitrides in single phase, combination of both

in double and triple phase, haf- nium carbide and nitrides and ce- ramic coatings. Coatings are usually used for cutting materials but

other applications are being found

daily.

With the achievable properties

shown in Chapter Two, tailorable as will be shown in Chapter

Seven, cemented carbides have

revolutionized metalworking.

W12-38
1

i

I

I

Carbides In Energy

Cemented carbides spectacularly

revolutionized mining and

drilling for resources. For example,

while steel tipped cutters became

blunt in drilling a few inches

through rock, carbide edges reg- ularly drilled several hundred feet or more without reconditioning.

With the later arrival of energy

shortages, such dramatic gains be- come routine necessity. Without

carbides, coal mining costs would

be mind boggling. Carbide cutters

I become the point of attack for

going deeper into reopened coed

mines and for stepped-up production and for deeper exploration for

oil and gas.

In the energy picture, cemented

carbides are the teeth for in- crefising recovery of every type of

fuel. You will find carbide inserts

in the cutting edges of all cutting

tools used in recovering fossil fuels of all kinds.

But over and above energy fuel recovery, carbides make probably an even greater contribution in en- ergy conservation. The drive is on

to consume less electric power by

using thinner materials in products, thus conserving the energy

expended in producing those metals. Tremendous amounts of en- ergy are required in smelting,

quenching, and rolling. The use of

thinner metals often requires new

processes. These new processes in turn often depend upon harder,

tougher cutting tools or wear

surfaces. You have noticed how beverage

cans, for example, have become in- creasingly thinner-walled, to the

point where you can now squeeze

them with two fingers. These are made by the draw and iron process which could not operate without

carbide dies.

W12-39
Chapter Five —

Strategic Value to the Nation

One of the most accurate measures of the strength of a nation is the capability of its metalworking

industry, which is in turn de- pendent on its cemented carbides. By this criterion, the United

States is emphatically world

leader. Although the pioneering re- search took place in Germany,

France and England, the United

States assumed the lead in ce- mented carbide technology ... by

necessity . . . during World War II. A nation’s cemented carbide re- sources continue to be so pivotal, not only in its defense but also in world economic competition, that America’s industry is moving to recycling carbides, reclaiming materials not normally a natural re- source of the U.S. The U.S. cemented carbide in- dustry is now a major supplier of both cutting tools and wear parts

to other nations in all parts of the

world. For example, cemented car- bide rolls from the United States are now being shipped to the Ger- man Ruhr . . . where cemented car- bides began.

By increasing tool feeds and

speeds, and by making possible

other improvements in metal pro- cessing such as better surface fin- ishes, cemented carbides are the fastest-growing tool material in the world. The reason is uncomplicated;

Cemented carbide tools last longer

and do a more precise

job . . . faster and better and

cheaper. This effects major cost savings. Second, cemented car- bides make practical the manufacture of products not previously

feasible, for example the billions of

tiny stamped parts required for a surging electronics industry and

the billions of paper thin drawn

and ironed metal products.

How Big Is The Industry?

The drama of it is smallness. Though doubling every five

years lately, the industry is still measured in less than a billion dollars. But it is the classic horseshoe

nail of the industrial kingdom,

making possible all else. And fu- ture growth is only limited by raw

material supply.

Regarding size, a second amazing aspect is that the industry’s

approximately 11,000,000-pound

output is made up of tiny pieces of carbide averaging under an inch

long and weighing less than 3-1/2 ounces.

Third, and more amazing, while

the material is not inexpensive, it will lead any anti-inflation break- through. Although the cost has

plunged from $1.00 per gram in 1935 to about 129 per gram at this writing, that doesn’t begin to be

the point. Cemented carbides make

possible production economies of

scale in every other industry they

touch, thereby battling inflation, one of the overriding challenges of the last third of this century,

worldwide.

So how big is the industry? As a major hope against energy short- age and inflation, it looms

gigantic.

W12-40 11
Look Ahead Lens

The cemented carbide industry

expands by surges, usually when

production engineers in other in- dustries run into wholly new con- ditions requiring quantum jumps

in productivity or precision or cost reduction or drastic design change.

Since those events will occur on

accelerating cycles under accelerating pressure of energy and re- source shortages, cemented carbide

cutting and wear applications will proliferate even faster in the

future. Some idea of how much room for growth lies ahead comes clear

when we realize that cemented car- bides are only now beginning to be

appreciated and exploited by such

giant industries as electronics,

chemical processing, business machines, and the food industry.

The Surprise of Discovery

As industry discovers cemented

carbide rolls, tremendous production advances become possible.

The carbide rolls dramatically re- duce the cost per pound of material

rolled. For example, one producer

of zirconium sheet who only re- luctantly tried cemented carbide

rolls on a trial basis found that

they were able to reduce the cost per pound of rolled zirconium 38.6 percent, and output was increased

65 percent.

With these kinds of gains, manufacturers are finding many star- tling new advances are possible.

Cemented carbide thinking is only now reaching many manufacturing operations. And it is also

just reaching many original equipment designers.

Meanwhile, application en- gineering within the cemented car- bide supplier companies has ma- tured into new applications —

semiconductors, integrated circuits, new space applications, just

to mention a few. These in turn be- come proving grounds for still newer applications.

If you’re interested, contact any

of the companies listed on the

back cover. Compounded by Carbide

Research Advances

In addition, the industry itself enlists entire new user industries as it develops carbide technology.

For example, the application of

tungsten carbide into and onto the

surface of cutting tools, punches, i dies and even the electric carving

knife, gives metals a hard wear-re-

{ sistant surface not otherwise ob- tainable. This new development

opens up an entire new potential.

The overlay principle will permit

the use of tungsten carbide wear

metal on any metallic surface re- gardless of shape, size of

configuration.

Coating carbides, meaning arti- cles coated with a layer of refrac- tory carbide or nitride or metallic

oxide, open up new applications.

The excitement in the future of

cemented carbides lies in the accel- erating daily discovery by more

potential users who encounter the

wide range of money-saving applications. Complete performance

data are now available for literally

thousands of combinations of the

basic materials and processing

methods used to create cemented

carbides. And material is available

to help users determine which ce- mented carbides can best meet

their particular requirements.

Design engineers find that

shelved plans are now possible

and horizons widen with cemented

carbides.

I

W12-41
Chapter Six— i Wide Angle Lens

|

i i From Heavy Stone to Cemented Carbides

I

I

j

I “I cut steel with the first carbide in these parts,” you can still hear j

i a machinist say. j

i Like electronics, oceanography and aerospace, cemented carbides do I

>. not yet have an ancient history. But in the accelerating pace of multi- '

: plying applications, the young industry is maturing fast.

| Yet of course there were steppingstones in the past to build upon. In ;

i the buildup to cemented carbides, the first stones were “heavy t

I stones,” that is . . . “tung sten” ... as the Swedish pronounced it. j

I It takes a wide-angle lens to picture the origins, because the con-

|

’ tributors to cemented carbides were far-flung, working separately in

j Germany, France, England; and the raw materials came from Peru,

I China, Bolivia, Mexico.

j These are two separate currents which flow along in parallel before

I they converge to become cemented carbides. The two currents are;

j — the story of the carbides and the matrix — the story of man’s need.

The Carbides and Matrix

I Those who spoke of tungsten back in 1574, when we first find |

! it mentioned in scientific literature, knew it was hard, but con- |

I sidered it a nuisance. i

I Tin miners in Cornwall, England, called it mock lead and

j “the wolf’’ . . . “because it eats up tin as a wolf eats sheep.” | The name stuck and became official, wolferam (wolf and ram).

Later it shortened to wolfram, and still later to the symbol,

“W”.

T!u> appio.ximatt-i.v man's best -.utting tool was high car- bon steel. VVe could out .it about 2-"> surface bet per minute. 'A’e cauid not sustain rhi.s cutting action long; the heat softened the

t'loi, '.vineh lost Us cutting edge.

| Mr. Walleston ' In the early 1800’s, in England, W. H. Walleston was ex- | ploring in metals. We owe him much for his pioneering in modj ern powder metallurgy which is the essential process in cej mented carbides. Walleston made platinum products by

j reducing chloroplatinate to powder. He then cold pressed and ! sintered it. !

W12-42
1^,

!

!

I

I

I

ti

li

||

|l

I

I

Walleston also invented a brass die and punch and a hand-operated toggle press. His molded parts were ejected much as we

eject today, and then sintered.

.X'-'-'Irtl: runjL'strn''^ '/

In l.'-'liS in I'fiTt' \nin‘, Krancc, ;nf!i iii’fdrM toughfr r:!;i road rails for i mountain stn'tch ’I’la-s- t'oum! that timi'ston

aliosa-(i in steel gave them greatt-i' t. Highness

In Need Of A Diamond

In 1896, Henri Moissan, a French chemist, and a giant in the

carbide story, needed a method for making diamonds. He de- signed and built an electric arc furnace which produced the

hottest heat to that date. He heated chunks of iron and lumps

of sugar burnt to charcoal. Then he withdrew the burning mass and plunged it into a quench. He made diamonds. But they were too small.

iho'.-'O ;/r fo/sso' (iiui ' •O /)

\'fx! Moissan triad iuMiing cirtMin >voai: i,i •h-mcnts.

ioHutiing ‘;,vigs/<'/; i'ung-'.fn liiol ilro a -;liasl miiiing

point )f anv null* m- ial !'h-' if'.'-uit was a ndl (Hdih!> Ir

V. as not 1 diamond; ,l v\-a- a n oiaanioal coti.fHi and.

i'.ingstvn oariiido. tio rcja.i-rc'l ho oomia,'. nd to Ih times

heavier than water and harder titan an\ Known material

i-xcrpi the diainonri. lie toki us some 'Hi-icf i>roperties. in- eluding the rm it point Though h.e won ih(' Nohel

Prize m chemistry in iPt'ti. lu’ died the fidlowing vear- not knowing wdiar iie had done for tile world liv inventing

tungsten carbide.

Need For More Than 90 sfpm in 1900

By 1900, we had developed high speed steels and could suc- cessfully machine at about 90 surface feet per minute (sfpm).

Tools would hold their hardness at around llOO^F, a low-red

heat. But 20th century mass production was ready to be bom.

. . How I'o Use The Blonimng Stuff"

In 191.i, the year before the Kaiser’s arma-.s in\.iued Bel- gium. the (’ornish mines in Britain received orders tor ;dl the Wolframite they woult! sidl. lilad to g‘ t rid. of tlie nui-

.sani.-e material whicii made tin c.'ctrat tion iit’ficult, one

British scienti.st .said, "'rhe r;(>rmans smnem.w know howto make use of the blooming stuff.

’ For Want Of a Diamond Source

In World War I the allied blockade cut Germany off from its source of wire drawing diamonds. Looking for a substitute, their engineers produced inserts for wire drawing dies. The in- serts were tungsten carbide grains cemented with iron. While

this matrix was not ideal, it is believed that the (jermans used

it to machine Big Bertha . . . the world’s biggest gun. Enter Cohalt

Heinrich Baumhauer and Karl Schroeter. working at ihc

Osram l.vimp Work.s in Ikerlin. siiaked the [mrous, -jio.ngy.

mfdted tungsten carbide m lujuid iron. I .<ui r, in the Osram

Studiengesell schaft laboratories. Schroeter cru'hetl tung

sten carbide p.-irticles into a powder with which he mi.xed a strong, malleable auxiliarv metal . . cidmit. With

.Schroeter's patent. Krupp began producing ia- inseiis and

tool tips, called Widia rdike a diamond"i ' liev exhibited

1) W12-43

I
these in the Spring Trade Fair, lh27. Some of these were imported into 'he United States in iti^d for test. Dr S. L. Hoyt, an American research scientist, addressed

the 1928 American Steel IVeaters' Convention on the properties of tungsten carbide, on which several companies

were experimenting,

A major electronics manufacturer acquired American

rights to manufacture under the Krupp process; and, in 1929, in turn licensed others to produce tungsten carbide.

Leapfrogging The Tools

Initially users had difficulty harnessing the hard brittle material. They had to invent new tool geometry and brazing tech- niques to bond the carbide cutting tool to the steel tool shank

because of the difference in expansion and contraction between

carbide and steel. To make advantage of the carbides, machine

tool builders had to boost horsepower. And because of the car- bides, parts could be machined from tougher metals.

We will see a continuing leapfrog of tools, metals and cutters.

ine

X.Vv c.- vcral

art fm-vvard.

late U'2(i’s cutting speeds leaped to InO sfpm.

companies got into the business, pressing the

Enter Titanium Carbide

In the 1920’s the first major change came, a tungsten-titanium carbide mixture. These carbides machined steel at much higher speeds because of their ability to withstand

cratering of the top face by the chip. In boring mills, planers, lathes and other single point machine tools, the rates were as much as 150 percent faster. Enter Tantalum

Fvan superior to titanium carbide came the combination

of tungsten, titanium and tantalum carbides with small

amounts of columbium carbide. These materials were dra- matic in machining higher strength alloy steels where high

heat was generated. This combination gained hardness

from the tungsten, crater resistance from the titanium and

heat ch-.sistance from the tantalum.

Enter Hitler

During the 1930’s as Hitler’s shadow blackened Europe, the

world woke up to find that Germany had bought up virtually

all of the world’s off-grade tungsten ore. He knew that to control the world, you had to control the cemented carbides.

The New Carbides

For certain roles in the continuing drama, metallurgists

tried out an exciting cast of other carbides; molybdenum,

manganese, chromium, vanadium, silicon and zirconium.

dTie stars of the show, however, remain tungsten, tan- talum, titanium and niobium.

Needed: “Arsenal For Democracy”

In World War II, the United States needed to become the ar- senal for the allies. That unmatched tour de force of high-speed

production was made possible only by the extensive use of ce- mented carbides.

WW W Ends

The rebuilding of the post-war

world and supplying pent-up con- sumer demand kept the pressure on American industry which again

stepped up the use of cemented

carbides which were then fully rec- ognized as essential to

productivity.

The relatively small number of

young cemented carbide producer

companies bom to fill the crucial need had to keep running full out without taking time out for estab- lishing routines. In those early

days, each new and different application was a special case. While this vigor was healthy, in- dustry leaders yet recognized that

the fast growth gave rise to some

of the wasteful Topsy-ism and of- ten gave customers confusion of

sizes, numbers, standards and lack

of uniform and organized information. Therefore three of the companies in the industry met to dis- cuss formation of an association to work on standards, grade numbering, and the focussing of cer- tain research priorities for the

good of the nation (Chapter

Seven). That was the beginning of

Cemented Carbide Producers Association and a new level of service

to carbide users.

W12-44

16
Chapter Seven —

Instant Replay

How Do

They

Make It?

:^PT) PAffATjNAsWfP

BLUE OX'OE (WO^'

THE MANUFACTURE OF

TUNGSTEN CARBIDE

W12-45

*

—

——
TUNGSTEN CARBIDE

Form and ihape

F^iNAL SINTER

final :.:nt‘?r ‘''5 at 230? jOOO'f

in vjnuiim or oyd'o?eo 8'3nks s.orink

!tpfo< 20 Pc'cent fiva-iy

HOT

ISOSTATIC PRESS

(SEE OVERLEAF)

W12-46
Carbides for use in cemented

carbides are usually produced from

oxides of tungsten, titanium or tantalum, or reductions of these

oxides, with carbon in an in- duction furnace. This creates car- bide powder.

Next, the carbide powder is mixed with cobalt or nickel powder, which has been produced by

reducing oxides of these metals in a controlled atmosphere at high

temperatures. This mixed powder

is then crushed and pulverized,

usually by wet ball milling, to a

very small size. Drying and lubri- cating follows (generally with

paraffrn), after which the powder

is processed by screening, blending, and granulating to prepare it for hot or cold pressing. For cold pressing the powder is pelletized

and granulated. Some producers

make the granules by spray

drying.

Both hot and cold pressing cre- ate cemented carbides by the powder metallurgy process. Compacted

or pressed powder is heated to the

point at which the cobalt or nickel powder in the mix melts. This

melting point is below that of the

tungsten, titanium, tantalum or ni- obium carbide powder. This cre- ates a “cement” which holds the

hard fine carbide particles —

hence, the term “cemented

caurbide.” The cold press and sintering pro- cess is used primarily to make cut- ting tool blanks, wire drawing die nibs, wear-resistant parts of relatively smadl size and mining tool blanks. It also is employed in man- ufacturing blanks in intricate

shapes. For cold pressing, a tungsten carbide lined mold presses the

blank at pressures in the range of 15 tons per square inch. The

pressed blank or briquette is then

given a preliminary heat treat- ment to remove the paraffin, after which it has a chalk-like con- sistency. This preliminary sin- tering also gives the part enough

strength to make it possible to form angles, steps, holes and other

shapes. Finally, the completely formed blank is sintered in a controlled atmosphere, generally vac- uum or hydrogen. This final

process shrinks blanks 20 to 30

percent linearly, requiring strict control. The hot press method is used to make large cemented carbide prod- ucts such as work rolls and bar

stock with diameters to 25 inches

and length to 40 inches, and

weighing as much as 1,000 pounds

per piece. It also is used to make

large cfirbide drawing dies. In hot

pressing, a graphite or carbon

mold is filled with unwaxed

blended powder. The mold is

placed in an induction furnace

where heat and pressure are ap- plied simultaneously to form and

sinter cemented carbide. Here, the

mold must be made accurately to assure absolute adherence to the dimensions desired in the finished

cemented carbide product.

Recently some carbide manufacturers in seeking more dense

material have adopted hot isostatic pressing. The process involves

applying high temperature and

high pressure in a controlled atmosphere and virtually eliminates porosity.

Regardless of which method is used the most difficult part of the

process is this: Laboratory standards of quality control must be

applied to the mass-production

methods. Even slight impurities in carbon, oxides, carbide powders,

metal powder, blended powder or foreign material cannot be toler- ated. Heat, pressure and atmosphere must be held within extreme

limits to assure a finished product

to exact specifications.

But . . . the payoff for this effort

is the remarkable savings in time

and money that cemented carbides

have made possible for industry.

W12-47
Chapter Eight—

Who's Involved?

From whatever motive one ap- proaches cemented carbide, he

finds himself in the company of

discoverers. An industrial designer finds

that he can now employ certain ex- otic alloys which could not pre- viously be machined economically.

A rolling-mill production super- intendent, fighting the costs and

the clock, finds that with cemented

carbide rolls he can now make fewer passes and larger step-downs. A

petroleum driller, stopped at a rock

ledge at the thousand-foot level, finds that with cemented carbide

cutters he can cut through. A coal producer who has crossed an area

off his mining plan as “mined out”

finds that it can now be reworked

because of the sharper bite of car- bide-tipped cutters. A manufacturer faced with the need for an enormous productivity

jump to 10,000,000 tiny parts per day finds that with carbide stamping dies unprecedented new vol- ume is possible.

Young people are discovering

unexploited career opportunity in carbide. In marketing, for example, there is room for talent in bringing the advantages to the

users and in assisting customer en- gineering in problem solving.

Portrait Shots

Graduates in metallurgy, chemistry, and mechanical and elec- trical engineering discover in ce- mented carbides a whole new

career area. The material is still young enough in application that

elbow room is enormous for people

with ideas ... as in the early

growth days of aluminum and

plastic.

The university research director finds new and exciting demands

upon his department for ex- ploitation of cemented carbides. These are opportunities for metallurgists in research and de- velopment as well as careers in production.

On the production floor the in- dustry still needs more people

trained as tool and die makers,

machine operators, and production

superintendents to produce

carbide. There are opportunities for tool engineers to instruct users in the

proper application of carbide. The

development of application data is accelerating, but many are un- aware of the substantial body of

material already available. In addition to carbide specialists, the industry offers in in- creasing numbers those careers found in most production

industries.

l!» W12-48
Sources for Detailed

Information

The Cemented Carbide Pro- ducers Association (CCPA) has

concentrated since 1955 on developing recommended procedures

for making chemical, metallographic, and physical de- terminations on the products of

the industry and disseminating

these procedures broadly through

independent recognized agencies

such as American Society for Test- ing and Materials (ASTM), Ameri- can National Standards Institute

(ANSI), The American Society of

Mechanical Engineers and The In- ternational Standards

Organization.

To foster completeness and con- sistency of information, CCPA co- ordinates with all established arms of the tool industry, such as the Society of Carbide and Tool

Engineers (SCTE), the Society of

Manufacturing Engineers (SME),

the American Society of Mechanical Engineers (ASME), and the

Metal Cutting Tool Institute

(MCTI). Internationally the CCPA

coordinates information through

the International Standards Or- ganization (ISO).

The searchers can now find specific cemented carbide information

in public and private technical li- braries because of the cumulative

publishing activity of CCPA.

Cemented carbide grade classification charts for users were

published early by individual

member companies, followed by a series of bulletins by the Association on standard industry test procedures for determining basic

properties, a recommended numbering system for many carbide

products, plus a multiplicity of di- mensional standards for various

classes of products. In addition to

its own developed information, the

Association bulletins chronicle the

availability of other technical re- ports, thus becoming cumulatively a bibliography on cemented

carbides.

Since cemented carbide applications have compounded rapidly

during the short publishing life of

the Association, the user would do

well to note the dates on the

publications.

Search

To keep the research action

focussed on the priority areas and

to avoid redundancy, the Association technical committees maintain an alert information network.

Important projects not being un- dertaken privately are encouraged,

supported and sometimes sponsored by the Association at universities and other qualified

institutions.

Momentum

Like a chain reaction, each new

cemented-carbide application re- leases two or three more neutrons

of ideas which in turn each spark

two or three more. This multiplication brings more and more

professions, skills and students

into the cemented carbide

discoverer’s club which compounds

the momentum.

Welcome aboard.

W12-49
Cemented Carbide Producers Association Members

Adamas Carbide Corporatiort

Kenilworth, NJ 07033

Atrax Cemented Carbide

Div. of Wallace-Murray ConJ.

Buttermilk HoUow Rd.

P.O. Box 486

McKeesport, PA 15134

Carbidie

A Norlin Technology Company

P. O. Box 135, Arena Rd.

Irwin, PA 15642

Delta Carbide, Inc. 4141 S. Oak Street Metamora, MI 48455

Duramet Corporation

24343 Gibson Drive

Warren, MI 48089

Fansteel VR/Wesson

800 Market Street Waukegan, IL 60085

General Carbide Corporation

Greensburg- Hempfield

Industrial Park

P.O. Box C

Greensburg, PA 15601

Hydro Carbide Corporation

Division of Vulcan, Inc.

P. O. Box 363

Latrobe, PA 15650

Leech, Inc.

P. O. Box 593

Meadville, PA 16335

Mac Donald Carbide Company

16300 E. Arrow Highway

Irwindale, CA 91706

Metal Carbides Corporation

6001 Southern Blvd.

Youngstown, OH 44512

Multi Metals Division

Vermont American Corp.

P. O. Box 1475

715 E. Gray Street

Louisville, KY 40201

Newcomer Products, Inc.

P. O. Box 272

Latrobe, PA 15650

Sandvik, Inc. 1702 Nevins Road

Fair Lawn, NJ 07410

Teledyne Firth Sterling

Parkway Center

Pittsburgh, PA 15220

TRW Wendt-Sonis Division

205 N. Thirteenth St. Rogers, AR 72756

Tungsten Alloy Mfg. Co., Inc. 306 Sussex Street Harrison, NJ 07029

Tungsten Carbide Manufacturing

14451 Myford Road

Tustin, CA 92680

Valenite Division

The Valeron Corporation

31100 Stephenson Highway

Madison Heights, MI 48071

Vista Metals, Inc. 1024 E. Smithfield Street McKeesport, PA 15135

Walmet Cemented Carbides

P. O. Box 10

Royal Oak, MI 48068

XLO Tool & Abrasive Products

P. O. Box 274A

Detroit, MI 48232

Copyright ® 1978 by Cemented Carbide Producers Association 712 Lakewood Center North

Cleveland, Ohio 44107

Reprinted with permission from

i/j]2-50

Cemented Carbide Producers Assn.

1
I THE BOEING COMPANY

P. 0. Box 3707

Seattle, Washington 98124

January 26, 1981

Dr. John B. Wachtman, Jr.

National Bureau of Standards, Materials

Building B308

Washington, D. C. 20234

Dear Dr. Wachtman:

The Boeing Company welcomes the opportunity to comment on critical material

needs in response to the Commerce Department notice in the January 8, 1981

Federal Register. The problem of critical materials is real - and it is growing. We believe that supply risks, in both availability and price, will be a major challenge facing U.S. industry in general, and the aerospace industry in

particular, during the 1980s.

Boeing wishes to address its comments to two key items: (1) identification of

the most critical materials to be examined in detail; and (2) the current or anticipated problems with these materials. At the conclusion of these comments

are some suggestions for corrective action.

The following materials, listed in alphabetical order, are considered critical

and are recommended to be included to the government's study:

1. Cobalt

2. Chromium

3. Graphite Fiber

4 . Ti tan i urn 5. Titanium Forgings

With one exception (titanium forgings), the problems faced today, or foreseen

in the future, are related to the U.S. dependency on foreign countries as a source of supply. For titanium forgings, the problem is a limited production

capacity. A shortage of any of these materials will either impact Boeing

directly or through suppliers of engines.

With the current downturn in production by Boeing and other commercial airplane

manufacturers, the supplies of nearly all critical materials are adequate and,

in some cases, supply exceeds demand.

However, potential increases in demand loom because of programs such as the C-X

transport, B-1 bomber, and contemplated increases in other military production,

coupled with any attempt to rebuild the nation's strategic material stockpile.

1 W13
Dr. John B. Wachtman, Jr.

Page 2

Titanium remains our number one material problem. Boeing uses 72,000 pounds of

titanium in each 747; 32,000 pounds in each airframe, plus 40,000 pounds in the

engines. The crisis shortage condition of 1979 and early 1980 has subsided.

However, tight market conditions prevail. The titanium industry is typified by

its limited ability to refine the imported ore (rutile) into titanium sponge

metal and the required mill products. Although the industry's capacity is growing, it could be easily outpaced by increases in military demand.

Until domestic production capacity increases to the level of domestic demand, we will continue to be partially dependent on foreign sources for sponge. Additionally, the capacity to produce certain titanium mill products is also questionable. Items such as large press titanium forgings are quoted by suppliers

on special inquiry basis only and are now receding from leadtimes in excess of

two years.

Supplies of cobalt and chromium are critical to the support of the aerospace

industry and some of the most important supply sources are vulnerable, either

because of uncertainty about the stability of their countries', or, in some

cases, hostility toward the U.S. which could mean supply interruptions for

political reasons. Most are developing countries possessing an ability to

increase their mining and refining capacity. Civil strife has disrupted and

will continue to disrupt these supplies. Increased military consumption under

these conditions threaten the support of commercial needs.

Emphasis on weight reduction to improve performance and fuel economy has resulted

in increased use of graphite fiber reinforcements on existing and new military

and commercial programs. Adequate domestic weaving and impregnation capacity

exists; however, fiber availability could become a problem because of the limited

domestic source base for graphite fiber.

Among the possible strategies for dealing with these and other critical material

problems are:

"Insurance policy" investments such as stockpiles.

Substitution of critical materials through products or process redesign.

Expansion of R&D on substitute materials.

The key though is better and more consistent planning for military needs. We

need to examine alternative ways of military planning and of getting funding

consistent with lead times. This, combined with different management of

national stockpiles, would relieve many of the foreseeable critical material

problems. The current use of the stockpile is only for military purchases.

The stockpile needs to be turned over on a regular basis and be used for com- mercial as well as military needs.

W13-1
Dr. John B. Wachtman, Jr.

Page 3

If we take these actions, it is our feeling that requirements for allocation

procedures can be extremely limited. Allocation would only be required in

times of national emergency.

The Boeing Company will be represented at the February 9-10 workshop through

the Aerospace Industries Association by our representative to the AIA Materiel

Management Committee, Mr. F. E. (Gene) Akin. It is not intended that he make

a presentation on behalf of The Boeing Company. Should you have any questions

regarding this letter, feel free to contact Mr. Akin on (206) 931-2280.

We hope these comments will be of use to you. There will be no gas lines to

drive home the reality of a titanium, cobalt or chromium shortage, but the

effects of such supply shortfalls on our industry could be severe. We will

fully cooperate with you in any future studies by providing all available data

on usage of the critical materials you select.

Very truly yours.

Senior Vice President
r. M WYMAN

L<1H GORDON

Wyman -Gordon Company

Eastern Division Worcester Street North Grafton, Massachusetts 01 536

(617)839-4441

January 30, 1981

Dr. John B. Wachtman, Jr.

National Bureau of Standards, Materials

Building B308

Washington, D.C. 20234

Reference: Mr. Jordan Baruch's (Assistant Secretary for

Productivity, Technology and Innovation, DOC)

Letter to Mr. John Matson (Manager Government

Relations, Wyman-Gordon Co.) dated Jan. 9, 1981

SUBJECT: Private Sector View (Wyman-Gordon Co.)

Materials and Mineral Policy, Research and

Development Act of 1980 (PL96-479)

The following brief commentary is in response to a request

of Mr. Baruch for private sector views on specific material needs

in the Aerospace Industry as they relate to national security,

economic well being and industrial production.

We would also be most willing to participate in your

workshop of February 9-10, 1981, to expand on our views more

fully.

Materials

We have spoken out many times concerning our nation's

mineral vulnerability which in many aspects is similar to the

OPEC oil catastrophe which has impacted us. Our tremendous

degree of reliance on imports and the distinct possibility

of supply interruptions and embargoes for political or

ideological purposes pose real concern for material security

and the well being of many industries.

Future supplies of chromium, manganese, cobalt and the

platinum group metals appear to be less secure now than ever

and they are the metals we view of greatest near term concern.

W14
- 2 -

l^'J WYMAN

[<rm GORDON

Titanium Forgings

It is noted that in the Federal Register of Friday,

January 9th, citing the Aerospace Industry as a special case

for study, the subject of titanium forgings was listed.

The problems that arose in 1979 and 1980 were not the

result of a lack of forging capacity for titanium, but the lack

of titanium material availability. We believe that the whole

subject of titanium availability should be evaluated. This

subject, we believe, should cover not only the basic supply

characteristics of the industry, but should reflect on our

national stockpile policies, the substitution of ilmenite for

rutile in case of a constriction in the sea lanes, and domestic

incentives for increasing U.S. sponge production capability.

We are prepared to comment also at your workshop on

improvements in capacity for airframe and engine components

and other materials production base considerations.

In attendance from Wyman-Gordon will be Mr. Marwood Rand,

Manager Raw Materials Purchasing and Mr. John Odell, Manager of

Marketing from our Aerospace Division.

Very truly yours,

Wiiliam' irr' Barlow

Vice President & General Manager

cb

W14-1
February 3, 1981

Dr. John B. Wachtman, Jr.

National Bureau of Standards

Materials Building B308

Washington, DC 20234

Dear Dr. Wachtman:

I would like to make a written statement in regards to the upcoming

Workshop on Aerospace Industry Needs which you will conduct.

I am an exploration geologist working for a major company conducting

base and precious metals exploration activities in the western United

States and Alaska.

I know that this country imports tremendous quantities of metals that are vital to the aerospace industry. At the present time we import

approximately 93% of our cobalt, 91% of our chromium, 97% of our manganese,

and 94% of our alumina. The list goes on and on.

I, as an exploration geologist, am concerned because governmental

policies are removing trrore and more of the public domain from mineral

entry. The public domain (mostly in the western United States)

provides the bulk of our minerals. In 1964, when the Wilderness Act

was passed, about 14% of the public domain was withdrawn from mineral

entry; today the figure is 65%. In order to promote mineral self sufficiency the United States must not "lock up" those areas that have mineral

potential. An intensive mineral survey must be made before any additional

public domain Is withdrawn from mineral entry.

The length of time from a conceptual geologic idea to a producing mine is great (10 to possibly 15 or 20 years). There is no such thing as an

instantaneous mine. If exploration activities are restricted either by

"lock up" or stringent regulations, then the time table for metals self

sufficiency or at least reducing dependency is increased.

Cordon L. Pine

850 Pennsylvania Dr.

Reno, NV 89503

W15
RORC3IIMC3 irJOUSXRY ASSOCI/VTIOIM

55 PUBLIC SQUARE • CLEVELAND, OHIO 44113 • DIAL 216/781-6260

February 2, 1981

Dr. John B. Wachtman, Jr.

National Bureau of Standards

Materials Building - B308

Washington, D.C. 20234

Dear Dr. Wachtman:

This letter is in response to the January 9, 1981 written request from

Jordan J. Baruch for Forging Industry Association comment on the definition of aerospace industry materials needs. The Association and a number

of its member companies are in full support of this effort. We will have

representation at the February 9-10 Workshop.

Preliminary observations:

I. 1) Anticipated requirements in the foreseeable future

2) current or anticipated difficulties in obtaining materials

in any form

3) prospects for, and implication of, fluctuations in demand,

supply, and prices

4) timely availability of processed materials and parts

5) other materials issues of prime concern to the aerospace

industry.

These are concerns that can best be examined and commented on by

airframe and engine manufacturers whom the forging industry serves

and also by the prime material suppliers.

II. 1) Cobalt, as a raw material on which the U.S. is import dependent

2) titanium forgings, as a special processing capacity need

3) rapidly-solidified alloys, as a promising route to both conser- vation of materials or increased performance.

These concerns warrant priority attention from all sectors of the

railitary/industrial community. The recent article in FORTUNE addressed

a number of questions in this area of interest in a clear and concise

manner. We are also aware that individual forging companies are devoting considerable time, effort and investment to #3).

Continued. . .

'AMEN ITS A VITAL PART. MARE SURE IT S

W16
Dr. John B. Wachtraan, Jr,

Page Two

February 2, 1981

III. 1) Improvement in materials production base

2) stockpiling, both public and private

3) federal emergency allocation procedures

4) improvement of capacity for airframes, engines and components

5) expanded conservation and recycling of materials

6) improved research and development of new materials both for

substitution and for higher performance.

We strongly support an improvement in the materials production base.

Private stockpiling as we interpret the written concern is probably

not possible from a capital investment consideration — on the other

hand, government financed stockpiling at forging facilities is an opportunity that deserves further study. Concerning #3), DMS and

DPS procedures are in place. While these procedures did not serve well during the 1978-80 supply problems, they could serve well if

properly administered. Airframe and engine contractors should speak

to #4). Isothermal forging of titanium and other proprietary processes

are a step in the right direction concerning #5). An intense effort

on the part of the entire military/industrial community is required.

You will be interested to know that FIA’s Board of Directors has appointed a special committee to examine many of DOC’s expressed concerns. The committee

has functioned for almost a year now. Distilled to the fewest words possible,

the committee has tentatively concluded:

1) Material shortages severely hampered the forging Industry’s

ability to meet aerospace requirements 1978-80.

2) The forging Industry is capable of meeting known or anticipated

aerospace needs with equipment that is in place at this writing.

Private investment is constantly increasing this capacity.

3) Multi-year purchasing for military aerospace programs is sorely

needed to properly manage military spending and to increase

productivity.

We appreciate this opportunity to contribute to and be a part of this investigation.

Yours very truly.

C. G. Scofield

Director of Marketing

and Conferences

CGS : tlw

cc; Jordon J. Baruch

W16-1
^lied . , ^|| Chemical

Metglas- Products Department

P.O. Box 1021R

Morristown, New Jersey 07960

February 4, 1981

Dr. John B. Wachtman, Jr.

National Bureau of Standards

Materials Building B308

Washington, DC 20234

Dear John:

Before joining Allied Chemical, I was privileged to

write an overview about the status of tantalum and other

aerospace metals. A copy of that report is submitted as

an attachment to this letter per the requirements of your

recent announcement (Federal Register, Vol. 46, No. 6,

9 Jan 81)

.

Mr. R. L. Kennard (USAF/WPAFB/AFML/LTM) has approved

the release of this report and both Lee and I hope that

this information might be of some value to you with your

workshop activities on critical materials.

I look forward to meeting you again during the week

of 9 February 1981.

Sincerely

CH :mh Dr. Charles Hays

Attachment: (1)

W17
Sumner Research Assignment',

TECHNOLOGY ASSESSMENT

ON THE CRITICAL AND STRATEGIC

STATUS OF TANTALUM METAL

Lr. Charles Hays

Summer Faculty Research Associate

AFML/LTM

WPAFB, OH 45433

W17-1
Summer Hesearah Assignment:

Technology Assessment

on the Critical and Strategic

Status of Tantalum Metal

ABSTRACT

Because of a deep concern about the limited supply of tantalum resources

for the Aerospace industry, the possible formation of tantalum cartels and

overt political activities by some tantalum-rich nations, this study on the

tantalum situation was initiated and thereby justified. Although of short

duration and limited scope, this study attempts to focus on the tantalum

problems that face primarily the Aerospace, industry of today and in the

future. Specific recommendations are given with the intention that these

suggestions might lead to some definite undertakings for meeting the projected needs for tantalum metal.

V

August 1979

Approved: Dr. Charles Hays

Summer Faculty Research Associate

AFML/LTM

WPAFB, Ohio 45433

H. A. /Johnson, Chief

AFML/LTM

WPAFB, Ohio 45433

W17-2
TABLE OF CONTENTS

PAGE

INTRODUCTION 1 Historical Information 1 Ore Deposits 2

Extraction Techniques 2

Important Characteristics 3

Important Applications 4

Limitations 6

DISCUSSION OF RESULTS 7

The Problem of Reserves 8

The Producer Problem 11

The Availability Problem 13

Methods to Improve the Situation 16

CONCLUSION 23

REFERENCES 24

APPENDIX 28

W17-3
INTRODUCTION

The combination of market cartels and political instabilities within

certain nations have highlighted the fact that the price-supply relationship

for any imported material can be strongly influenced by the unpredictable vagaries

of world events and local politics. In recent months, much concern has been

expressed with regard to one vital area of nonrenewable mineral resources; i.e.,

petroleum deposits. Yet, petroleum is not the only foreign-supplied commodity

upon which the United States is highly dependent, see Figure 1. Here it is to

be seen that the United States imports more than fifty per cent of all mineral

supplies for needs which involve chromium, platinum, osmium ruthenium, iridium,

tantalum, aluminum, cobalt, manganese, tin, nickel and columbium. More important

is the fact that the United States is almost totally dependent on other nations

for its supply of certain important aerospace minerals; viz., chromium, tantalum,

aluminum, cobalt and manganese.

Because of a deep concern about the limited supply of tantalum resources for

the Aerospace industry, the possible formation of tantalum cartels and overt political activities by some tantalum-rich nations, this study on the tantalum

situation was initiated and thereby justified.

(21 Historical Information ^ ‘

Tantalum (Ta) is a metallic element in the fifth group of the periodic system,

which Tncludes the metal vanadium. It derives its name from the Greek mythological

King Tantalus, because of its ability to 'absorb' acids. It is not very richly

distributed in nature, but is found with columbium and many other rare minerals.

It was first discovered in a curious way. In 1801 C. Hatchett found a new element in a mineral from Massachusetts, to which he gave the name 'columbium'. In

the 'following year A.G. Ekberg found a new element in yttrium minerals from Sweden,

W17-4
and called it tantalum. Then followed the failure of an attempt to prove these two

new elements identical. Other new elements discovered during later years confused

the issue considerably , but eventually tantalum was established as a metal in its

own right and is no longer confused with columbium (niobium).

In a pure form it was obtained by Berzelius in 1820 by the heating of potassium

tantalofluoride with potassium. The pure metal was not obtained until 1905, when

Werner von Bolton fused compressed metal of the type obtained by Berzelius in the

electric furnace from which air was excluded.

( 2 ) Ore Deposits '

The principal sources of tantalite, the ore, are Nigeria, Zaire, Portugal,

Rhodesia,- Uganda, South Africa, South-west Africa, Australia, Mozambique, French

Guinea, Brazil, Spain, Canada, Sweden and the United States. Of columbite, the

principal sources are Nigeria, Rhodesia, Uganda, South-west Africa, Malaya, Australia, Zatre, Madagascar, Mozambique, Bolivia, French Guinea, Argentina, Brazil Portugal, Spain, Norway, Sweden and the United States. The production of columbite is

forty times as great as that of tantalite. By far the largest importer is the

United States.

( 2 ) Extraction Techniques ^ '

In modern production, the ore tantalite Fe(Ta02)2 obtained from columbite

Fe(Nb02 ) 2

» is comminuted to a powder and then fused with caustic soda, from which

product the silica is eliminated by extraction with water. Other materials soluble

in acid, such as manganese, are eliminated by means of hydrochloric acid, leaving

the insoluble hydroxides of tantalum and niobium as residues. After dissolution

in hot hydrofluoric acid in the presence of potassium ions, the solution is allowed

to cool, after which tantalum double fluoride (K

2

TaF^) is crystallized out by repeated

fractional crystallization, leaving behind niobium double fluoride (K

2

NbOFg) which is

much more easily dissolved.

W17-5
This process, however, is only suitable when tantalum is obtained from tantalite ore. If the ore contains a high niobium content, liquid-liquid extraction

is employed instead, and this is the process most commonly used, because

niobium is also required from the ore, and Nb is not as easy to recover.

There are, however, other means of obtaining the metal, such as the thermit

process already mentioned, in which caustic soda and the double fluorides

are used. Electrolysis is another method, using molten salts of the double

fluoride. A mixture of the oxide and carbide can be thermit-reduced as follows:

Ta^Oc- + 5TaC = 7Ta +5C0

( 2 ) Important Characteristics ^ '

Tantalum is a heavy metal with a steel-blue color, which, when the metal is

polished, becomes platinum-white. It has a high melting point, and when exposed

to the atmosphere forms a tough and impermeable oxide film serving to protect it

from corrosion. In consequence, it is the most resistant of all the metals to

acid attack. Ta withstands many chemicals, including organic acids, fatty acids,

and, indeed any one acid other than hydrofluoric acid. Caustic alkalis attack

Ta with difficulty only. It is thus superior even to platinum in resistance to

corrosion, and being less expensive, can be substituted for Pt in many applications.

Ta is tough, ductile, malleable and capable of being readily welded. It has

no effect on water even at temperatures up to 600 deg. C. (1112 deg. F. ) , but at

this same temperature it will burn in oxygen. Its machinabi 1 i ty is similar to

that of cold-rolled steel, and either tungsten carbide or high-speed steel tools

can be used. Carbon tetrachlori de or light oil will serve as a cutting fluid,

and machine oil is sometimes recommended as a lubricant. Ta automatically rectifies an alternating current, and is capable of being pressed, sintered, hammered

or swaged. The impurities that are usually found in processed tantalum include

W17-6
carbon, oxygen, nitrogen, hydrogen, niobium, iron, titanium, tungsten, silicon

and nickel. Carbon and oxygen are the most abundant, but rarely exceed 0.05 per

cent (by weight).

The metal is produced in powder form from tantalite. Only one process produces the metal in massive form as 'hairpins', but this is merely for experimental laboratory work. In the difficult recovery of the metal, the powder is

obtained, washed to eliminate impurities, heated in a vacuum and by hydraulic

pressure formed into bars, which are resistant in themselves to an electric

current, so that the heat generated in the passage of such a current serves to

sinter them. Bars can then be formed into sheet or wire, and because Ta bars do

not readily work-harden, it is not often necessary to give intermediate annealings during powder forming processes. If such an annealing is required, however,

it is carried out in a high vacuum.

The compactibi 1 ity of tantalum is good. In general a small amount of extremely

fine-ground titanium is added to the normal powder to make molding easier. The

ingot sizes are, typically, 30-in. long by 2-1/2-in. wide by 1/4-in. thick, and

weigh mostly from 8 to 12-lb. each. The pressure required for forming into bars

without pre-sintering is about 50-tons/sq. in.

( 2 ) Important Applications ^ ‘

Tantalum has a higher melting point than molybdenum and is much more ductile.

When recrystallized, Ta is much more ductile than either molybdenum or tungsten.

Its properties make Ta particularly suitable for grids in electronic power tubes,

because it has high gas absorption and retention at lower pressure and temperatures

than most other metals. In resistance to corrosion Ta is equal to glass, but has

a much higher rate of heat transfer. Ta also has the special property of forming

anodic oxide films which are self-healing.

W17-7
When heated in nitrogen at 600 to 900 deg. C, Ta absorbs the gas to form

nitrides, and this means that the metal becomes embrittled and may raise its hardness to 600 Brinell.

The production of tantalum has greatly increased in recent years. It is

being extensively used for stills, agitators, containers, pipes, etc., in the

chemical industry because of its strength, ductility, workability and corrosion

resistance. Ta is also applied to equipment used in combination with plastics

and ceramics, the principal uses being for heat exchangers, and for the absorption,

evaporation and condensation of hydrochloric acid. Its oxide film stability makes

Ta valuable for wet rectifiers. Ta is also applied to self-healing electrolytic

condensers and lightning arresters. Centrifugal pumps are another application for Ta.

Tantalum is also used for capacitors because of the wide range of temperature

over which Ta works effectively (-60 to 200 deg. C or -75 to 400 deg. F). Ta is

valuable, too, in 'getters' and grids for electronic tubes, particularly in ultrahigh-frequency transmission. Additional uses include steam turbine blades,

valves, nozzles, diaphragms , spinnerets for the production of rayon, and the tips

of fountain pen nibs. There are applications of tantalum also in the field of

high vacuum. Tantalum anodes for electric power tubes are used, especially in

service at ul tra-high-frequency.

Surgical uses are numerous, including the use of cover wires for uniting fractured bones and implanted plates for replacing lost skull sections. Nerves and

tendons have been sewn together with fine tantalum wire and protected by foil of

the same metal. Dental instruments also make use of tantalum. Ta metal does not

irritate living tissues, and this compatibility makes it most serviceable in

surgery and medicine.

Ta is being studied at the present time as a possible alloy base for future

thermospheric structures and 'hot' aerospace engine environs: e.g., directionallyW17-8
solidified eutectic alloys in military applications. As an alloying element in

the manufacturing of steel alloys, Ta has not gained widespread popularity. This

situation exists because, for most applications, Ta is inferior to niobium in the

important characteristic of specific gravity. Ta has, however, been added to

austenitic stainless steels to form carbide, thereby preventing intergranular corrosion, and to nitriding steels as a means of speeding up the formation of the

nitride case, but in both instances niobium is better. Ta has, however, been

used on an increasing scale as a 'hard metal' for cutting and other tools, by

reason of the extra toughness obtained when the tools contain Ta and/or tantalum

carbide.

Because of its hardness, toughness and ductility Ta is used for the manufacture of linings of pipes and tanks for the transport and storage of dangerous

fluids.

The metal is usually supplied as ferro-tantal urn, in which fprm Ta is alloyed to

steel, but Ta is also sold as sheet or wire, of 99.95 percent purity, at prices

either per pound or per kilogram. An alloy of tantalum with tungsten has been

successfully used for special springs working at high temperature and high vacuum.

Use is made of tantalum in electronic tubes for radar, and potassium tantalum

fluoride has a catalytic application in making synthetic rubber. At one time,

tantalum was used for electric lamp filaments.

(o\

Limitations ^ '

Tantalum is not resistant to corrosion in galvanic couple action. Excessive

impurities in its composition lead to lower elongation percent, and high yield

and tensile strengths, but has little effect on corrosion resistance. If the

metal is to be used as an alloy, from 7.5 to 10.0 percent tungsten should be

added to give superior yield and tensile strengths combined with a higher temperature of recrystallization. If electronic properties are primarily required,

thorium should be added.

W17-9
In melting the metal, oxygen, hydrogen, nitrogen and carbon should be carefully excluded, and melting should be done in a vacuum. If this is not possible,

an inert gaseous atmosphere should be used. Annealing can be done at above 1050

deg. C (1920 deg. F), in high vacuum. The maximum reduction between annealing

operations is more than 95 per cent. All the normal forming processes can be

employed. The compacting pressure ranges from 10 to 60 tons/sq. in., being

governed by the physical characteristics of the powder. Sintering should be

done within the range 2300 to 2600 deg. C (4175 to 4700 deg. F) in high vacuum,

which will eliminate harmful contaminants. The normal finishes of the metal are

dull or bright for rolled sheet, and smooth dull for wire. Brazing with copper

can be carried out in vacuum. Welding by the customary processes is possible,

but it is essential to exclude air by use of inert techniques for tungsten arc,

electron beam, resistance spot, or other suitable processes of welding.

DISCUSSION OF RESULTS

Recently, many important publications have been given to the concept that

the world's resources shall not last indefinitely. These articles of the

open literature have been excellent surveys about the general condition that

exists but none have been dedicated solely to the problem of tantalum metal and

very few are concerned with the needs and priorities of the Aerospace industry.

This study, although of short duration and limited scope, attempts to focus on

the tantalum problems that face primarily the Aerospace industry of today and

in the future. The intent of this study is to form certain specific recommendations that might lead to some definite undertakings to meet the projected need

for tantalum metal

.

W17-10
The Problem of Reserves

Before any metal may be considered strategic or critical for the needs and

priorities of the Aerospace industry, some clear definition is always required.

Typically, the known U.S. reserves are taken to be the primary indicator for any

( 1 ) such classification.' ' For the purposes of classification, reserves are defined

as known and identified deposits from which minerals can be extracted profitably

with existing technology and under current economic conditions.

Table I summarizes the present status for the U.S. reserves of aerospace

mineral deposits, listing them as being either "abundant" or "scarce". Mineral

reserves are taken to be "abundant" if the U.S. currently imports less than 50

percent of our Nation's needs and can maintain that position to the year 2000.

Metals used in amounts that are at least 1 percent of the total projected aerospace requirements in the year 2000 are arbitrarily considered of "major" importance while metals making up less than 1 percent of the metals used in aerospace

are considered of "minor" importance. Of the seven metals that are listed as of

"major" importance to the Aerospace industry, it should be noted that current

U.S. reserves for three of these metals are considered "scarce" (Al,Cr, and Ni).

One problem with such a classification is that surveys of this type

consider the needs and priorities of dll aerospace applications. If military

engines are to be evaluated and classified separately, then the problem of U.S.

reserves becomes a much greater issue. This is to say that military engines run

hotter than conmercial engines and that military engines are designed to more

rigid requirements, especially with regard to tantalum, cobalt, columbium and

manganese contents thereof. Accordingly, the problem of tantalum reserves is a

problem of immense importance to the defense of our Nation. If this be true, what

else can be stated about the problem of tantalum reserves?

W17-11
The problem of tantalum reserves reaches new proportions of relevancy if

one considers the fact that, at a time v/hen this Nation's tantalum needs are greatest,

almost nothing is being done to solve these urgent problems of demand and supply -

Note Table II for a summary of the tantalum situation. From the data of Table II,

it can be shown that, in recent years, imported tantalum ores are stable, exports

of tantalum ore are increasing, consumption of tantalum is steady, the government

stockpiles are depleting and industrial stockpiles have not changed in like manner -

see Figure 2.

Prices for tantalum products continue to reflect a growing concern over the

possibility of future shortages - in 1978, prices increased by about 30% for tantalum concentrates and by nearly 50% for tantalum metal as compared to the prices

of 1977! Domestic demand for tantalum products is expected to exhibit a minimum

increase of about 40% per year through 1985 and the supply needs for such demand

can now come only from foreign production and industrial stocks. Although the

United States has about 3.4 million pounds of identified tantalum ore deposits,

no attempt is being made to utilize these resources - these ore deposits are

classified (by industry) as being uneconomical based on' 1978 price levels. As

in the case for petroleum, it v/ould seem that it is more expeditious for industry

to exploit imported tantalum than it is to explore new tantalum recovery processes.

New domestic tantalum deposits must be sought and new, or improved, methods for

extracting tantalum from sub-marginal mineral materials and low-grade tin slags

must be developed so that future requirements can be satisfied more economically

to reduce our net reliance on imports - see Figure 3 for a summary of this critical

import reliance.

(57) According to information from the Bureau of Mines ^ tantalum metal is

currently being utilized primarily by the electronics and chemical processing

industries - note Figure 4. Of the amounts used in 1978, less than 2% v;ere given

to aerospace applications. Although the aerospace needs for tantalum may be great.

W17-12
it cannot be assumed that military applications of tantalum metal are any real

threat to the scarcity of tantalum. The chief culprits for this problem

of tantalum reserves involve those industries which require more tantalum...

electronics and chemical processing. These firms continue to utilize tantalum

in great quantities even though it is common knowledge that...

• Columbium oan be substituted for tantalum in high-strength

steels and superalloys.

• Aluminum oan be substituted for tantalum in electronic

capacitors.

• Silicon, germanium and selenium oan be substituted for

tantalum in electrical rectifiers.

• Glass, titanium,-zirconium, columbium and platinum can

be substituted for tantalum in corrosion-resistant equipment.

• Tungsten, rhenium, molybdenum, iridium, hafnium and columbium

can be stubstituted for tantalum in high-temperature applications.

Although these substitutions are known to be economically feasible and attractive

to the National needs or priorities, there is no apparent mechanism to force

tantalum substitutions. The obvious thought is this... if excessive tantalum con

sumption is allowed to continue in such wild and uncontrolled fashion... how will

we someday substitute for the dead engines of our imperiled military aircraft?

This problem of reserves and its relevance to the Aerospace industry is not

a problem of numerical magnitudes. If numerical magnitudes alone are argued, the

military needs of the future will alv/ays be badly considered. For example,

Stephens et have shov/n that, by the year 2000, Aerospace industries will

require only about 1.3% of the total U.S. demand for all the aerospace metals.

More important, Stephens has shov/n that, by the year 2000, this Country will no

longer have the capability to meet the total U.S. requirements for any aerospace

W17-13
element other than molybdenum - see Figure 5. It is clear that something needs to be done... and it must be done now \

The Producer Problem

According to References 3 and 57-61, domestic production of tantalum

products (metal, alloys and compounds) is a producer problem of essentially four

sources; imported concentrates, imported tin slags, tantalum-rich scrap and

industrial stocks - see figure 6. This very typical source distribution is, by

itself, not a producer problem... the producer problem that exists is simply

this... in 1978, six companies with seven plants processed imported concentrates

and tin slags to account for 100% of the 1978 production totals This apparently

innocuous statement is graphically displayed by Figure 7. Here it is to be seen

that, in 1978, domestic producers apparently met all market demands without using

any tantalum scrap or stocks. This is to say that all production needs were

ostensibly satisfied through the selective use of imports. In this way, producers

have conserved their scrap and stockpiles through the use of stockpile substitutes

called Imports, Again it would seem that it is more expeditious for industry to

exploit imports that it is to explore new tantalum recovery processes.

The producer problem is even more insidious if the variable of tantalum ore

usage is evaluated in some detail. Figure 8 represents the current situation on

how tantalum ores are processed.... inputs to the system of tantalum production

include ore shipments from stockpiles and foreign ore imports while outputs to

the system of tantalum production include ore consumption and the export of tantalum

ores. What we need so desperately (quantities of tantalum ores) is bought from

foreign nations and resold to other foreign nations! There are no apparent

mechanisms to restrain these windfall profits by tantalum producers even when such

profits are against the National needs, priorities and long-range interests.

W17-14
If tantalum ore exports were somehow regulated, the efficiency of tantalum

ore consumptions would be greatly enhanced. Figure 9 shows how efficiencies might

increase if tantalum ore exports were not permitted... the process of tantalum

usage, which is now out of control, could be brought into control. This is one

method by which the producer problem can be greatly alleviated - see Figure 10

on how tantalum ores should be processed.

Earlier it was reported by Stephens, et who projected that, by

the year 2000, Aerospace industries will require only about 1.3% of the total U.S.

demand for all Aerospace metals and that, by the year 2000, this Nation will no

longer have the wherewithal to meet the total U.S. requirement for any aerospace

metal, except molybdenum. Figure 11 reveals the Bureau of Mines predictive

data for the future needs of tantalum products according to their end use. Of

interest here is the obvious question that, at these demand rates, how long

can the producers survive... or, in other terms, how long will the world supply

of tantalum continue to exist?

According to recent estimates by the Tantalum Producers Study Center (Brussels)

,

the average supply which existed at the 1977 level will continue for only twelve

more years at the current rate of utilization.' Note Table III... 1989 represents

the terminal point for the existing world's supply of tantalum ore. New domestic

tantalum deposits must be sought and new or improved methods for extracting tantalum from the now "uneconomic" mineral materials and low-grade tin slags must

be developed... something needs to be done and it needs to be done now! Figure

12 represents one solution to the problem of tantalum production. If research

and development investment monies are spent in massive amounts and in timely

fashion, the threat of 1989 might be effectively managed. Through diligent development of new sources and new techniques, the World might be assured of a continuing

W17-15
supply of tantalum metal adequate to meet World demand at projected levels for

many years to come. If, on the other hand, this problem is approached through

the mechanism of typical R&D long-term management investment trends (Note Figure

12), it is quite likely that some scientist may someday find an appropriate solution for an inappropriate problem; e.g., what good could be served by new

tantalum extraction techniques if tantalum sources were, at that time, non-existant?

Clearly, the needs of today need to be served today, not tomorrow!

The Availability Problem

It has been shown that the U.S. has limited reserves of both "major" and

"minor" aerospace metals In addition, because of either limited resources or

lack of technological developments or favorable metal prices, domestic resources

are not being mined. Because of these conditions the U.S. must turn to foreign

sources to meet the aerospace needs as well as total U.S. metal requirements.

Figure 1 illustrates the current percentage of various aerospace metals that are

being imported and the major countries from which we obtain the metals. Figure 5

indicated that of the seven "major" aerospace metals, the U.S. in the year 2000

would not be able to produce any Cr and only 8 percent of the required Ni and 10

percent of the required Al. Figure 1 shows that the U.S. is currently importing

100 percent of its required Cr ore, 96 percent of the required Al ore, and 74

percent of the required Ni ore. Also, imports of the Pt group metals and of Co,

Ta, and Mn are all in excess of 90 percent. In the case of Sn, approximately 80

percent is imported. The remaining Sn supply currently comes primarily from scrap

and from selling of stockpiled Sn. The U.S. imports about 65 percent of the

required supply of Cb. The remaining metals fall into the "abundant" category

W17-16
(Table I), and imports range from approximately 40 percent for W to about 10 percent

for Mg. Of the nineteen metals considered important to aerospace, it should be

noted in Figure 5 that Mo is the only metal in which the U.S. maintains a net export

position.

There are certain indirect factors which also affect the availability of

important aerospace materials. For example, several existing or potential cartels

are being considered by the countries that supply the Nation's minerals. The

nature and content of recent news releases suggest that 'closed-door' meetings

between mineral -producing countries may soon cause mineral -producer cartels to

exist in the world market for aluminum, copper, chromium, platinum, tantalum and

cobalt. Ostensibly, the 'official' purpose for these 'closed-door' meetings was

to discuss mechanisms by which higher prices might be achieved for these important

aerospace minerals on the World market. Although political differences and geographical separation make it more difficult for the mineral -exporting countries

to form cartels similar to that formed by the oil-exporting Arab countries, several

elements seem ripe for stronger control through cartels. Of particular concern

is the potential cartel for Cr involving the countries of Rhodesia and the Republic of South Africa. Another possibility is that cartel which has been proposed

to exist between Zaire and Nigeria for tantalum. In the latter case, collective

cartel bargaining has been virtually suspended by the Civil War that now rages in

Zaire. The combinations of market cartels, political unrest and even civil war

pose great threats to the World price-supply relationships for all aerospace metals

and, especially, for tantalum.

W17-17
Another indirect factor that influences the use of domestic reserves is the

effect that processing ores has on the environment. For example, the Cu industry

has failed to start building new smelters to keep up with mining production

because of new environmental restrictions being placed on the smelting operation.

As a result, a potential Cu shortage can develop similar to the current oil

shortage largely due to lack of required refining capacity. Insofar as tantalum

is concerned, there has been no domestic mining-extraction industry since 1959

but this may have been caused by choice, not chance... it appears more expeditious

for tantalum companies to exploit imports than to explore new extractive methods.

A third indirect factor that contributes to the problem of tantalum availability is the role that is played by ore allocations if tantalum ore imports

were not resold to other producing nations, this Country could operate its

tantalum resources at peak efficiencies (Refer to Figs. 8-10). In this way,

tantalum shortages may develop similar to the problem of gasoline allocation

difficulties that stem from supplying two-dol lar-per-gallon markets (Europe)

instead of supplying 95-cents-per-gal Ion markets (domestic).

The final factors that contribute to the problem of tantalum availability

are the interactive roles exerted by apathy and/or a total lack of traceability.

In the case of the former, no explanation is really necessary - it should suffice

to say that too many people cave too little about the tantalum situation and the

threat that it represents. Vlith respect to the latter, hov/ever, some discussion

is, indeed, required. Although tantalum consumption can be monitored, tantalum

(57) production cannot be evaluated ' \ In 1978, two key suppliers of tantalum metal

(Fansteel Melals and Kawecki Berylco) refused to divulge any figures on the amounts

of tantalum that they produced... this they were able to do under the cover of

W17-18
"confidential proprietary information" .It is nov/ a truism that, where tantalum

availability is concerned, we must be more concerned. The tantalum-rich scrap of

military engine components that are retired-for-cause should represent an important

source for badly-needed tantalum resources if good traceability did, in fact,

exist. Here, traceability does not exist... some of this vital tantalum that

once served important Air Force needs may be released to the tantalum producers

so that it may one day become transistors in electronic toys... it is a pity that

we are not more concerned. Since World War II, Japan has steadily invested

tremendous sums of money into the purchase of mineral rights and ownership ...

certain other nations (particularly the OPEC countries of the Middle East) have

follov/ed the example set by Japan. This trend of purchase power has continued

without control or traceability to the point that important domestic mineral

reserves are no longer controlled by the Nation in which the reserves occur!

Conservative estimates predict that, by the year 1989, consortiums shall control

what Congress cannot control. Concern about active traceability and real action

is no longer enough... more concern and more action is now mandatory.

Methods to Improve The Situation

The inadequate status of our critical reserves and the finite character of

our mineral resources and our dependence on other countries to supply the Nation

with several strategic metals makes it imperative that efforts be increased to

conserve the use of all such materials through immediate, positive-action programs.

One method to improve the tantalum situation is the business of more recycling

activity by our Nation's primary metal producers. In recent years, producers

have resisted recycling through the argument that tantalum scrap contains too

much "old material" and not enough "new material" and, of course, "new " is

W17-19
more economical than "old"! Here, an explanation is in order; viz., "old material

is defined as scrap metal which has been exposed to a full service life in its

own service environment (e.g., retired-for-cause jet turbine blades) while "new

material" is scrap metal which has not seen any service applications (e.g., sections

or cuttings from blooms or ingots during primary metal production and fabrication

operations). In other words, the metal producer, if given a choice, will always

choose to process scrap in terms of its purity... more pure is better than less

pure. In this matter of recycling scrap metal, an important point exists and

some explanation is necessary... the point of discussion is simply this: Are

primary metals producers really recycling enough?

The current role of "old material" in the U.S. consumption arena is demonstrated

(9)

by Figure 13 . This illustration reveals, for example, that about 12% of the

U.S. needs for chromium metal are being met by the recycling of "old material" or

"old scrap". Now it is to be understood that stainless steel scrap is the main

source for reusable chromium and primarily as "new material" or new scrap". Isn't

it ironic that any piece of stainless steel, "new" or "old", contains, as a minimum, 12 weight percent chromium metal? This bit of irony would suggest that producers are recycling "new" stainless steel but not "old" stainless steel... it

is more economical to process "new" than "old". In fact, the truth of the matter

is this... for every hundred pieces of scrap metal that contain chromium, less than

15 pieces are being reprocessed^^ \ Unfortunately documented evidence reveals that,

for the material which is available for recycling, only certain amounts are even

reprocessed; e.g., copper - 61%, aluminum - 48%, nickel - 40%, titanium - 30%,

iron - 26%, chromium - 15% and tantalum - 2%. Why does this situation exist...

what needs to be done to improve the situation? In order to increase the use of

W17-20
strategic metals contained in "old material", new manufacturing technology must

be developed, existing standards need revision and recycling requires stimulation.

It is easy for primary metal producers to process "new material" for this

amounts to very little more than a remelting process. Such technology exists and

has existed for many years since the time that metallurgists first learned to correct their mistakes in metal manufacturing. But, it is technically incorrect to

say that 'reprocessing' is identical to 'recycling' and this was demonstrated by

the previous example of stainless steel and the chromium problem. The truth is

simply this manufacturing technology does not now exist for the recycling of

all "old material". Industry needs to develop new extraction methods for the

removal of all service contaminants from all "old material " (see Figure 14). It

is imperative that new technology be supported so that economical recovery of

strategically - vital metals may soon be a reality.

Before these new technologies for recovery of "old material" can ever become

widely - accepted by consumers, it is also necessary that this Nation must raise'

their Standards down. For years now, the developing nations of the World have

been amused by the restrictions of the American metal standards on composition,

properties and structure. These nations are amused by the fact that all American

standards (e.g., AISI, ASTM, ASM, ASME, SAE, SME, API, AMS and etc.) are based

on one central theme... the use of virgin material by primary metal producers - a

luxury which American metal manufacturers may one day be forced to classify as

improper, wasteful or dangerous to our Nation's wealth! Perhaps, a true story

will serve to demonstrate this point better.

The author of this report has a good friend in India who owns and operates

a factory that uses only recycled stainless steel products. Each time this friend

visits the U.S., he brings with him a different metallurgical sample from one of

W17-21
his many stainless steel products. These samples are brought to America to demonstrate a very important point... to this date, no American metallurgist has been

able to look at his samples under a metallurgical microscope to correctly state

the alloy type! I have played his game many times and I have always lost even

though I am an expert on the microstructures of domestic stainless steels... but

that's unimportant. The important thing is simply this... American metallurgists

are taught and trained to think that purity is better and, as a result, our rigid

Standards are given to the concept that good properties, structure and composition

can exist only if purity prevails. And, if purity is to rule, then virgin material

usage will also continue to be the preference of American primary metal producers.

This is to say that, with the beginning of the Jet-Age, the aerospace metals

Industry has concentrated practically all of their metallurgical design efforts

toward the problem of getting higher concentrations of gamma prime (V) so that

higher strengths might exist at higher temperatures. This madness for more and

more y

' is based on the simplistic view that more y' is hetterl As a result of

this totalitarian approach, we now have alloys and mixtures (e.g. directionallysolidified eutectics or rapidly-solidified powders) for which basic metallurgical

parameters are either unknown or controversial... our meek acceptance of massive

y' concentrations and ultra-pure materials may have cost us more than that which

we paid for higher hot strength. This ill -defined progress has left us with dwindling mineral reserves and metallurgists who worship the dual idols of purity and

y'. To this, my friend from India v/ould say that, American metallurgists will

become good metallurgists only when they learn to do it better more cheaply.

As a necessary first-step toward this goal of doing it better more cheaply,

American material standards need revision to reflect the changes that occur through

the recycling of "old material" versus the recycling of "new material". For

W17-22
example, the "Cleanliness Charts" of ASTM should be accompanied by what can only

be called "Dirtiness Charts". By the same token, the structure - property correlations of the AISI should be revised in terms of compositional variations

caused by recycling "Grade I" versus "Grade II" scrap. If recycled stainless steel

from India is inventable but unidentifiable, then American metallurgists need to

invent more so that they may identify more. And, if our material Standards are

raised down to permit more recycling, who knows exactly what may result... it could

be that we would, at some point in the future, be better and more wiser with a

greater endowment of regenerative resources for raw materials (and tantalum is

no exception to this rule). In brief, research must be given to the development

of new manufacturing technologies and revised materials Standards through recycling.

A wider use of recycling may also be stimulated through adoption of favorable

tax or regulatory policies by the appropriate Government agencies.

Another method to improve the tantalum situation would be to enhance the

utilization of both substitutions and stockpiles. In previous discussion, it was

pointed out that neither substitutions nor stockpiles are now being used to

any appropriate extent... consumers resist any change called "substitution" and

producers, if permitted, will always prefer to "hoard" their stockpiles. At this

stage, it suffices to state only that there is no enforcement mechanism to ensure

the use of either substitutes or stockpiles... this matter needs rectification.

But, what can be said about the use of "substitution-stockpiles"?

Recent breakthroughs in an area called "Computer-Harmonics-Applications-Tailoring"^ ^ allows the development of what some choose to call "substitution-stockpiles". If all the attributes are known for a given materials application and if

all materials selection criteria are properly integrated by an appropriate

W17-23
computer program... substitutes can be identified for further refinement and

stockpiling. Although the techniques of computer harmonics are still in the

infancy stage and, as yet, deal only with non-aerospace applications, the approach

still merits consideration as a possible mechanism to improve the tantalum

situation. Clearly, this area of computer harmonics will someday be an important

tool that is best utilized by Integrated-Computer-Aided-Manufacturing (ICAM) design

methods and processes.

In summary, the methods to improve the tantalum situation must include some

immediate attention to these important facts and/or issues:

• The 3.4 million pounds of identified and "uneconomic" tantalum

deposits in the United States need development.

• New tantalum recovery processes need to be established.

• Low-grade tin slags are a prime source of tantalum and these

are not now being properly evaluated.

• Our net reliance on imports must be curbed through a better

control of exported ore deposits.,

• Tantalum utilizations by industry-at-large must be prioritized.

• Tantalum substitutes need to be enforced.

• The terminus point for the existing World's supply of tantalum

I ore (1989) must be circumvented.

• Cartels need to be countered by col lective-embargos of the

'other kind' (food, clothing, medicine, technology and the

necessities of all mankind).

• Environmental restrictions must be relaxed on matters of vital

concern to the Nation's greatest needs, priorities and

long-term interests.

W17-24
• Allocation of tantalum ores by this Nation to other nations

must be regulated.

a Apathy about the critical /strategic metals shortages must be

eliminated through improved dissemination of reliable information at

reputable information centers (Universities, not Air Force bases...

in this way, the military bias will be disguised and, hopefully,

i gnored)

.

• Tantalum production must be a function that Government can

monitor.

• Retirement-for-cause property of the U.S. Air Force should remain

the property of the U.S. Governments, .tantalum of this type should

not be used as tantalum for toys... such tantalum should be

converted hy the Government and for the Government.

• Are mineral resources within the U.S. being controlled by the

consortiums of other nations?

• Do consortiums control what Congress cannot control?

• Recycling programs must be established.

• Greater recycling efforts need to be stimulated.

• New manufacturing technologies require development.

• Existing standards need revision.

• Oceanographic mining methods must be exploited.

• Is metallurgical purity the real solution?

• Is more gamma prime (y') really better?

• Stockpiles must be monitored.

• Substitution-stockpiles need to be evaluated.

In brief, we need to attack this problem of the strategic/critical metal crisis

so that it may be done better more cheaply.

W17-25
CONCLUSION

Because of a deep concern about the limited supply of tantalum resources

for the Aerospace industry, the possible formation of tantalum cartels and

overt political activities by some tantalum-rich nations, this study on the

tantalum situation was initiated and thereby justified. Although of short duration and limited scope, this study attempts to focus on the tantalum problems that

face primarily the Aerospace industry of today and in the future. Specific

recommendations are given with the intention that these suggestions might lead

to some definite undertakings for meeting the projected needs for tantalum metal.

August 1979

Dr. Charles Hays

Summer Research Faculty Associate

AFML/LTM

WPAFB, OH 45433

Approved;

AFML/LTM

WPAFB, OH 45433

W17-26
REFERENCES

1) J. R. Stephens, C. A. Barrett and P.L. Stone, "Availability of Strategic

Metals for Aerospace - The U.S. Position to the Year 2000", NASA Research

Report, Lewis Research Center, Cleveland, Ohio, 1979.

2) E. N. Simons, "Guide to Uncommon Metals", Book, Hart Publishing Company Inc.,

New York City, 1967.

3) Bureau of Mines, "Minerals Facts and Problems", 1970.

4) United States Mineral Resources, "Geological Survey", Professional

Paper 820, 1973.

5) Minerals Yearbook, Vol. I, "Metals, Minerals, and Fuels", Bureau of Mines,

1970.

6) "The U.S. Energy Problem", ITC Report C 645, Vol. II: Appendices,

Part B, (To National Science Foundation), 1971.

7) "Towards A National Materials Policy", An Interim Report, (The National

Commission on Materials Policy), April 1972.

8) Ibid, except January 1973.

9) "Conservation in Materials Utilization", A Report of the Federation of

Materials Societies for the National Commission on Materials Policy

(NCMP), April 1973 .

10) "Materials Needs and the Environment Today and Tomorrow", Final Report

of the NCMP, June 1973.

11) "Materials and Man's Needs", Summary Report of the Committee on the

Survey of Materials Science and Engineering, National Academy of

Sciences, December 1973.

12) "Technical Forecasting and its Application to Engineering Materials",

NMAB-279, March 1971.

13) "Trends in Usage of Tungsten", NfiAB-309, July 1973.

14) "Trends in Usage of Columbium", NMAB-269, March 1970

15) "Trends in the Use of Vanadium", NMAB-207, March 1970.

16) "Trends in the Use of Ferroalloys by the Steel Industry of the

United States", NMAB-276 ,July 1971.

17) "A Delphi Exploration of the U.S. Ferroalloy and Steel Industries",

NMAB-277, July 1971.

W17-27
18) "Technological Influence on Usage of Platinum and Palladium", NMAB-247,

March 1969.

19) "Current and Future Usage of Materials in Aircraft Gas Turbine Engines",

DMIC Memorandum 245, February 1970.

20) "The Refractory Metals - An Evaluation of Availability", DMIC Memorandum 235, March 1968.

21) "Ecological Balance Through Resource Recovery", Journal of Metals , November 1972.

22) "Are We Building the Land of Have-Not?", Industry Week , October 22, 1973.

23) "Emerging Nations: Their Politics and Economics and the Future of

Mineral Supplies", Journal of Metals , October 1973.

24) "Titanium: Cinderella of the Metals Industry", Journal of Metals , October 1972.

25) "The World Fight for Materials", Industry Week , January 7, 1974.

26) "The Resource Trichotomy", Metallurgical Transactions , January 1974.

27) "Metals Resources, Aluminum", Journal of Metals , May 1973.

28) "Metals Resources, Copper", Journal of Metals , June 1973.

29) "Metals Resources, Nickel", Journal of Metals , July 1973.

30) "Metals Resources, Molybdenum", Journal of Metals , August 1973.

31) "Metals Resources, Tungsten", Journal of Metals , September 1973.

32) "Metals Resources, Iron and Steel", Journal of Metals , October 1973.

33) "Metals Resources, Chromium", Journal of Metals , December 1973.

34) "Risky Race for Minerals", Time Magazine , January 28, 1974.

35) "Raw Materials: U.S. Grows More Vulnerable to Third World Cartels",

Science , Vol . 183, January 1974.

36) "United Nations Statistical Yearbook", 1972.

37) "Is There a 'Mineral Crisis' ?", Government Executive , October 1973.

38) "The Limits to Growth", Universe Books, N.Y., 1973.

39) "Mining and Minerals Policy", Second Annual Report of the

Secretary of the Interior, 1973.

W17-28
40) "Elements of a National Materials Policy", PB-213, 780. Prepared for

National Commission on Materials Policy, August 1972.

41) "Suppose Other Countries Cut Off U.S. from Raw Materials", U.S. News

and World Report , February 4, 1974.

42) "General Services Administration Inventory of Stockpile Material",

Status Report, December 31 , 1973.

43) "Modern Alchemy Turns Trash to Gold", Purchasing , pp. 49-55, January 22,

1974.

44) Preston Cloud, "Mineral Resources in Fact and Fancy", Toward a SteadyState Economy , edited by Herman E. Daly, W. H. Freeman and Company, San

Francisco, 1974.

45) "Materials, Energy, and the Environment: The Need to Produce, Conserve

and Protect", NCMP, 1973.

46) "Man, Materials and Environment", NCMP, 1973.

47) E.F. Andrews, "The Care and Feeding of Inflation", J. Metals , February 1974.

49)

"Washington Report; Rhodesian Chrome", Center Lines , Steel Service

Center Institute, Vol . 4, No. 3, January 1974.

49) "Stockpile Report to the Congress", Office of Preparedness, GSA,

January-June 1973, October 26, 1973.

50) "Strategic and Critical Materials", Descriptive Data, Office of

Preparedness, GSA, December 1973.

51) "Year Book of the American Bureau of Metal Statistics", Fifty-Second

Annual Issue, June 1973.

52) "Future Energy Outlook", Quarterly of the Colorado School of Mines,

Vol. 68, No. 2, April 1973.

53) "Materials Requirements in the United States and Abroad in the Year

2000", Wharton School of Finance and Commerce, March 1973.

54) "Aerospace Materials Shortages: Widespread Scarcities Haunting

Industry", Aviation Week and Space Technology , March 4, 1974.

55) "Reaching for Deep-Ocean Metals", Machine Design , June 28, 1973.

56) "Summary of Seminar on Critical /Strategic Metals Status", Manufacturing Technology Division, Air Force Materials Laboratory, Air Force

Wright Aeronautical Laboratories, Wright-Patterson Air Force Base, Ohio,

February 1979.

W17-29
57) Private Communication, T. S. Jones to C. Hays, U.S. Dept, of Interior,

Bureau of Mines, Washington, D.C., June 20 1979.

58) "Mineral Commodity Summaries", Report, U.S. Dept, of Interior, Bureau

of Mines Publication, Pg. 160-161, 1979.

59) "Mineral Facts and Problems", Report, U.S. Dept of Interior, Bureau

of Mines Bulletin 630, 1113 p. , 1965.

60) Private Communication, M.A. Siegel to C. Hays, Pratt & Whitney Aircraft

Group, West Palm Beach, Florida, June 6, 1979.

61) "Minerals in the U.S. Economy: Ten-year Supply-Demand Profiles for

Nonfuel Mineral Commodities 1968-1977 ", Bureau of Mines, U.S. Dept,

of Interior, May 1979.

62) "World Tantalum Reserves Estimate 12 Years Supply in Current Sources",

World Mining ,Pg 79-80, March 1979.

63) Gordon Walter and Dale Breen, "Computer Harmonic Applications Tailoring",

Numerous Publications and Industrial Reports, International Harvester

Company, Hinsdale, IL,1979.

W17-30
I ^

•.••!''• •»:>•*!#!•*».»'.; <t'% ,J'

' blltv

4;‘/^ 2'.'‘

. , : '•-"/";

. . ^u/"''.

'' " ^ ^

' "v ^ . ':;^ ''C;.,,. m ''•'''..;v'-:’!;Yi i' Vi'^OnpC/J ,.tl,iU. Siiy,..*f .4f;i^'‘^!5iWt f ’ (''^.^.

k> ...

. »-•'-<» '•

, ‘'o,;' -'v^^'' '"A.;; '>U viCiq^i^ rfi^aV: Si ('

W17-31
MINERAL PERCENTAGE IMPORTED,?/, MAJOR FOREIGN SOURCES

0 25 50 75 TOO

IJ.S.S.R. , SO. AFRICA, RHODESIA, TURKEY

SO. AFRICA

NIGERIA CANADA, ZAIRE

JAMAICA, GUYANA, GUINEA, SURINAM, CANADA, AUSTRALIA

ZAIRE, BELGIUM, LUXEMBOURG, FINLAND, CANADA, NORWAY, ZAMBIA

BRAZIL, GABON, SO. AFRICA, ZAIRE

MALAYSIA, THAILAND, BOLIVIA

CANADA, NORWAY, NEW CALEDONIA

BRAZIL, NIGERIA, MALAGASY, THAILAND

BOLIVIA, U.S.S.R. , SO. KOREA, CHINA

AUSTRALIA

BRAZIL, SO. AFRICA, ARGENTINA

CANADA, INDIA, AUSTRALIA, BRAZIL

SO. AFRICA, CHILE, U.S.S.R.

CANADA, VENEZUELA, JAPAN, E.E.C.

CANADA, PERU, CHILE

CANADA, AUSTRALIA

GREECE, IRELAND

U.S. EXPORTS

Figure 1. Sources of U.S. Mineral Supply and Percentage

Imported. (Taken from Reference 1

)

W17-32
;x

ix

'X

i

on ^

< 00 UJ

>- C7> on T

<c ^ Q r'. ZZ cr> UJ I—

_j —

C(_)

(K) 3Wb3AV bV3A-9 (3A-)H033U yu (3A+)3AU0V NOIiViyVA

W17-33

Fiqure

2.

Market

Variations

for

Tantalum

Ores

asa

Function

of

Time.

(Data

Taken

from

References

57

and

61).
Met

Import

Reliance,

(%)

100 f

75 -

1

50 .

25 .

0

1974

Figure 3.

93% Average

TANTALUM IMPORT

DEPENDENCY

I I t ._i

1975 1976 1977 1978

Calendar Year

Net Import Reliance for Tantalum as a Function of Apparent Consumption

(Taken from Reference 57).

W17-34
5 % MANUFACTURING

NUCLEAR &

AEROSPACE

Figure 4. Composite Structure Chart for the 1978 Usage of

Tantalum fletal (Data Taken from Reference 57).

W17-35
MINOR

ELEMENTS

PRIMARILY FROM MINING, ALSO INCLUDES RECYCLED MATERIAL IN SOME INSTANCES

Figure 5. Capability of U.S. to meet total ll.S. Requirements

in Year 2000. (Taken from Reference 1).

W17-36
Figure 6. Sources of Domestic Production for

Tantalum Products (Taken from References

3 and 57-61).

W17-37
Figure 7. Allocation Problem in the Domestic Production

of Tantalum Products (Taken from Reference 60).

W17-38
Figure 8. How Tantalum Ores are processed

(Data Taken from Reference 60).

W17-39
Efficiency

{%)

System

Input

Process Control Charts for Tantalum Usage

(Ore Exports Not Permitted)

Calendar Year

1974 1975

I I 1976 1977

I

Process out of Control

1978

Calendar Year

Process under Control

Figure 9. Efficiency Consideration for Tantalum

Ore Consumption.

W17-40
Figure 10. How Tantalum Ores should be processed

(Comoare to Figs. 3 and 9).

W17-41
Forecasts

of

Demand

for

Tantalum

by

Users

X

10'^

lbs.

Electronics

-a Chemical Processinq

Manufacturing

O Nuclear & Aerospace

Figure 11. Future Needs for Tantalum Products

(Data Taken from References 3 and 57).

W'T7-42
Figure 12. What is Needed Now to Eliminate the

Tantalum Metals Crisis.

W17-43

R&D

Investment

Costs
ELEriENT SHORT TONS

MAJOR

IRON 46 400 000

COPPER 473 000

ALUMINUM 250 000

CHROMIUM 60 000

NICKEL 73 900

MAGNESIUM 2 700

TITANIUM

% OF TOTAL U.S. CONSUMPTION 5|||

0 25 50 75 100

Fi’nure 13. U.S. Consumption of "Old Material"

(Taken from Reference 9)

W17-44
a) The Microscopic Appearance of "New flaterial".

b) The Microscopic Appearance of "Old Material"

Figure 14. The Problem of Recycling "Old" Jet Turbine

Blades - Exaggerated to Demonstrate the

Difficulty of Metallurgical Recovery.

W17-45
TABLE I. THE PROBLEM OF D.S. RESERVES

Importance to all Aerospace needs

U.S. RESERVES

Major Minor

Copper flolybdenum

Iron Thori urn Magnesium Vanadi urn ABUNDANT

Ti tani urn Tungsten

Zi rconi urn

A1 umi num Tantalum

Chromi urn Cobalt

SCARCE Nickel Col umbi urn Manganese

Tin

Beryl 1 i urn

PI atinum

Osmium

Ruthenium

Iridium

W17-46
TABLE II. TANTALUM* SUPPLY-DEMAND

I

* GOVERNMENT STOCKPILE WORLD TOTAL BALANCE 2»782

2.160E

TANTALUM SMPPLY-nEflANO RELATIONSHIPS, 196B-77 (Thousand nounds)

1968 1969 1970 1971 1972 1973 1974 1975 1976 1977

World nine production

United States 0 0 0 0 0 0 0 0 0 0 Pest of world 2,4fin 2.001 1 ,591 1 ,989 1 ,868 1 ,991 1 ,930 1 ,780 2,000 2,160

Total 2,400 2,001 1 ,591 1 ,999 1 ,868 1 .991 1 .930 1 ,780 2,000 2,160

Components of U.S. supply

Domestic mines. 0

' 0 0 n 0 0 0 0 0 0 Secondary ®10 ®35 ®25 ®30 ®40 ®40 ®50 ®5 ®50 44 Government releases 150 215 162 6 88 266 884 87 8 ’(4)

Imports^

1 ,66D 962 967 1 ,023 1 .157 1 ,248 1 .730 933 1 ,310 2,158

Industry stocks. Jan.1 4.187 4.614 4.287 5.063 4.740 4.254 3.983 4.214 4.591 1 . 1 88 Total U.S. Supply 6,007 5,826 5,441 6,l2^ 6,025 5,808 6,647 5,239 5.959 6,336

Industry stocks, Dec. 31 4,614 4,287 5,063 4,740 4,254 3,983 4,214 4,591 4,188 4,096

Exports 210 230 234 201 250 322 435 428 443 539 Government accessions 693 18

a

’’ 0 0 0 0 0 0 0 Industrial derand 490 1 ,291 ’903 1 ,181 1 .521 1 ,503 1 ,998 220 1 .328 I ,751

U.S. demand oattem

Electronic conponents 214 598 420 547 820 967 1 ,376 133 962 1,159 Transoortation 182 349 211 257 254 150 156 14 69 96

'achinery

Chcnical equinnent 19 55 73 89 132 96 98 24 102 161 Metalworking machinery S3 253 166 233 256 269 322 38 97 312 Total 72 303 239 322 388 365 420 62 473

'^ther 22 36 >3 ss S9 21 46 6 ’I *) 1

Total U.S. primary demand iindiis- trial demand less secondary) 1 ,2S6 H7R 1,151 1 .481 I ,463 1 .948 215 1 .278 1 ,717

*^Estir^ated ch^nqe in inventory report

^includes concentrates , tin slan and otner.

'•'Jiusted to reflect revision in industry s^ocLs. *(Taken from Reference 61)

W17-47
TABLE III. WORLD RESOURCES OF TANTALUM IN METRIC TONS OF Ta^O^*

Location Resources Currently in Production

In Tin Ore

Independent

of Tin Ore Total

Life in

Years

Australia 160 — 160 2

Malaysia 2,250 1 ,100 3,350 21

Thailand 4,500 -- 4,500 15

Nigeria 500 100 600 9

Zai re 1 ,800 — 1 ,800 40

Rwanda 50 — 50 11

Mozambique — 500 500 7 Rhodesia N.A. N.A. N.A. N.A.

South Africa — 20 20 10

South West Africa 400 — 400

Brazil 450 — 450 4

Canada — 550 550 4

Spain and Portugal 500 — 500 11 Egypt — — — —

Total 10,610 2,270 12,880 ,,(2)

(

1

) Estimate at end 1977

(2) At 1977 production rate. *(Taken from Reference 62)

N.A. = Not Available

W17-48
United States Department of the Interior

BUREAU OF MINES

2401 E STREET, NW.

WASHINGTON, D.C. 20241 IN REPLY REFER TO: EBM:MR:MRT

January 30, 1981

Dr. John B. Wachtman, Jr.

Director, Center for Materials Science

National Bureau of Standards

U.S. Department of Commerce

Washington, D.C. 20234

Dear Dr. Wachtman:

We are pleased to accept your invitation to participate in the Aerospace

Industry Materials Needs Workshop on February 9-10 at the National

Bureau of Standards. Information on attendees will be given to you by

telephone.

We have prepared the enclosed statement which you requested on the

Bureau of Mines research concern related to the material needs of the

aerospace industry. Others in the Bureau may be giving you statements

on the supply concern.

If there is anything further you need from us in our cooperation on this

activity, please let me know.

Sincerely

Charles B. Kenahan

Deputy Director for

Minerals Research

Enclosure

W18
U.S. DEPARTMENT OF THE INTERIOR

BUREAU OF MINES

MINERAL RESOURCES TECHNOLOGY PROGRAM

PROGRAM SUMMARY

The national security and economic well-being of the United States is

seriously threatened by inability to guarantee access to the critical

and strategic mineral resources upon which our industrial economy is

built. The Mineral Resources Technology Program is aimed at anticipating

and providing solutions to the technological aspects of this important

national problem which includes those of the aerospace industry. Through

both in-house and contract research, the program generates the technology

base by which minerals and mineral raw materials are mined, processed,

refined, and developed into materials. A strong technological base

provides the options to solve unanticipated problems likely to occur in

a rapidly changing world with increasing competition for limited resources

In addition, to help promote a sound economy, the program develops and

transfers to industry specific mining and minerals processing technology

to maximize the use of domestic resources; to improve productivity; to

promote wider use of abundant materials as substitutes for scarce minerals

and to promote conservation of our non-renewable mineral resources by

reducing waste in the minerals and related-products industries.

The program division works closely with other Bureau divisions, other

Federal agencies, industry, and academia to insure that the resulting

research will be as effective as possible in addressing national needs.

The Mineral Resources Technology program includes research, development,

demonstration, and technology transfer activities in the following

subprograms

:

• Advancing Mineral Science and Technology

• Conserving Domestic Mineral Resources (includes recycling)

• Developing Domestic Mineral Resources (includes materials

substitution and performance)

W18-1
The Mineral Resources Technology program includes research that will

benefit the aerospace industry. This includes research for developing

domestic resources of aluminum, chromium, cobalt, nickel, platinum,

titanium, and tungsten; recycling critical metals from superalloy and

electronic scrap and industrial wastes; and projects directed toward

developing substitutes for critical and strategic materials. These

include research on coatings, high-temperature alloys, titanium, sialon

ceramics, rapidly solidified ceramics, reinforced metal-matrix composites,

cobalt-free carbide cutting tools, hard materials, magnetic materials,

platinum substitutes, and improved soldering and brazing systems.

1/ 30/81

W18-2
GENERAL ELECTRIC

CORPORATE

OPERATING

SERVICES

GENERAL ELECTRIC COMPANY. 1285 BOSTON AVE., BRIDGEPORT, CONN. 06602 MATERIAL RESOURCE AND

TRAFFIC OPERATION

February 5, 1981

Dr. John B. Wachtman, Jr.

National Bureau of Standards

Building B308

Washington, DC 20234

Dear Dr. Wachtman:

You will find attached comments submitted in response to the "Invitation

for Expression of Public and Private Sector Materials Needs and

Recommendations for Federal Action" published in the Federal Register, Friday,

January 9, 1981. These comments represent my personal views, developed

through experience in the Material Resource and Traffic Operation of the

General Electric Company, including interactions with informed individuals in

the technical and procurement functions of General Electric's Aircraft Engine

Group.

Very truly yours

R.P. Carreker

Manager, Material Resource Analysis

RPC:pp

Ends.

W19
February 5, 1981

Submission to the Department of Commerce Workshop on Critical Materials Needs

in the Aerospace Industry, Gaithersburg, Maryland February 9-10, 1981

The Department of Commerce should be encouraged to focus on the materials

needs of the aerospace industry in responding to the directive of Section 5(c)

of the Materials and Minerals Policy Research and Development Act of 1980 (PL

96-479). We understand that directive to require the Secretary of Commerce to

report to the Congress before October 21, 1981 on the critical materials needs

in a specific case related to national security, economic well-being and

industrial production. The aerospace industry certainly meets these criteria

and it certainly has critical materials needs which are not fully assured. It will be a service to the aerospace industry and to the nation. if this study

focuses on aerospace materials needs with sufficient intensity and specificity

to identify, describe and propose remedies for the real supply risks and

bottlenecks that constrain this industry.

The General Electric Company participates in the aerospace industry in a number of ways, but most notably as a leading producer of engines for both

military and civil aircraft. The modern "jet engine" achieves remarkable

performance through design ingenuity utilizing special materials near their

limits of strength and temperature. High strength alloys operating at high

temperatures in minimum weight parts translates to more speed, lower fuel

consumption, and greater payloads. Availability of the materials used in

these alloys is essential for the production of aircraft engines to meet the

needs of national security and our modern economy.

Those who contemplate actions to alleviate potential supply problems

should have an appreciation of the effort and time required to permit new formulations, new alloys, or even new sources of raw material to be used in an aircraft engine. The excellent safety record of this complex machinery that

works under severe conditions is due, in large part, to the stringent

specifications and qualification procedures that are normal in the aircraft

engine business. Specifications extend to raw material sources and processing

procedures, and changes must be preceded by extensive qualification tests.

Current major materials supply concerns to GE's Aircraft Engine Business

involve:

a) Cobalt , which is an ingredient of alloys used in critical components

in hot sections of the engine, contributes strength at high

temperatures.

b) Chromium , which is also essential in these alloys, because it

contributes to strength and to resistance to oxidation at high

temperature.

c) Tantalum , rhenium , and hafnium , which are used in small percentages in

alloys for severe service at high temperature, contribute an extra

margin of strength.

d) Titanium , which is used at intermediate temperatures, combining

necessary strength with relatively low density, thereby improving the

thrust-to-weight ratio of the engine.

W19-1
- 2 - -

Supplies of several of these elements are at risk.

Cobalt has been the subject of much concern and much attention in the last

two years . The bare facts are well publicized: it is an essential ingredient

in alloys for high temperature service. Its use as a binder of hard particles

in hard facing applications, in carbide cutting tools and in diamond tools and

dies are also important to the aerospace industry. Cobalt supply was curtailed and its price increased very markedly following the 1978 invasion of

the Shaba province of Zaire. That made most everyone acutely aware that the

USA imports all of its cobalt, and that most of the supply comes from Zaire

and, recently, Zambia. But, a perceptive analysis will look beyond that

import dependence to note:

a) the current state of affairs in Zaire and Zambia makes further supply

interruptions possible;

b) the contribution of U.S. stockpile actions to the cobalt shortage and

to market uncertainty, thereby discouraging decisions to invest in new capacity;

c) the current very high price in spite of the accumulation of large

unsold inventories;

d) the existence of a potentially viable domestic source of cobalt (The

Blackbird Mine in Idaho);

e) the uncertainty about future supplies that may come from the large

quantitites of cobalt containing nodules on the bottom of the sea.

Chromium provides essential oxidation resistance to all high temperature

alloys. The U.S. imports all of its chromium, either as chromite ore, as ferrochromium, as refined chromium metal, or in stainless steel. The big

picture about chromium is that it is widely used in stainless steels, low

alloy steels and cast irons, and that there is plenty of chromite ore in the

world with South Africa and Zimbabwe having the most, the best, and the

cheapest to produce. By combining its low cost chromite with low cost energy.

South Africa has become the dominant producer of ferrochrome. With so much of

the Western World's chromium supply coming from southern Africa, the potential

for interruption by political events is recognized.

The all important little picture is that the most critical aircraft engine

components (the turbine blades) require pure electroytic chromium, not the

ferrochrome used in stainless steel.

The quantity of electrolytic chromium used by the USA is less than one percent of ferrochromium consumption. There is but one domestic producer, who

supplies less than half of the market. The balance comes from Japan and

England. A perceptive analysis will examine the question of whether the

country should rely so heavily on imports for supply of this intermediate form

of chromium.

Tantalum , rhenium , and hafnium are relatively rare materials that, when

used in very small amounts in high temperatures alloys, contribute very useful

properties. They are expensive; moreover their prices are highly volatile.

Applications of promising alloys are being delayed by the erratic price

behavior of these metals. For example, tantalum ore, (tantalite) sold for

525.00 per pound in June 1978 and for 580.00 twelve months later and as high

as 5115 in 1980. A large portion of our tantalum supply is obtained as a by-product of tin production. Rhenium is derived as a by-product of some molybdenum production that is, itself, the by-product of some copper

production. It sold for 5600 per pound in 1975, 52500 in 1980, and currently

W19-2
3

-

sells again for $600. Hafnium has a somewhat less dramatic price history, but

it is obtained as a by-product of zirconium production which is used primarily

in the Currently depressed nuclear industry. These materials are in short

supply. They are produced as by-products or co-products from other metals

production. Demand is erratic. It is extremely difficult to use materials

exhibiting such volatile market characteristics in a long cycle product like

an aircraft engine. Yet, they do hold the promise of superior performance, of

better engines. A perceptive analysis would consider the reasons for such

volatile prices and might identify ways to bring more stability to the markets.

Titanium supply problems have not been due to the lack of suitable ore

(even though nearly all of that ore is imported), but to the lack of in-place

domestic capacity to process the ore to useful metal. GE has experienced the

shortage situation in the form of very long lead times to procure forgings for

use in rotating applications and a marked increase in the price of such

parts. That situation can be traced back to a shortage of domestic capacity

to produce titamium "sponge." There are three domestic producers of titanium

sponge who have supplied 75 to 90 percent of the domestic requirement in

recent years. The gap has been filled by imports from Japan, UK, and

sometimes USSR. Titanium has been through several cycles of boom and bust

since the 1950's, largely related to cycles in military procurement. In 1980

the heavy demand for commercial aircraft engines created needs for titanium

that could not be met by the domestic producers. Imports increased markedly

and the price of sponge increased from $4 per pound to $7. A perceptive

analysis of the titanium supply situation would illuminate the relationships

among government procurement actions, the state of the domestic titanium

industry and the role of imports. It would recognize the impact of material

shortages on the cost and time to produce aircraft engines for civilian and

national defense needs.

In summary. General Electric has experienced problems in the supply of

critical materials needed for production of aircraft engines, and future

problems are anticipated. This inquiry is addressing an area where there are

real tangible industrial production issues to be resolved in the interest of

national security and economic well-being.

I would like to express some reservation about the potential scope of the

inquiry and the prospective report to Congress next October, as indicated by

the announcement of this workshop. The scope seems too broad and the time too

short to permit analysis at the level of detail that will lead to effective

solutions to the problems that exist. An appropriate response to the

directive of PL96-479 to report on "critical materials needs in a specific

case" should be more specific than five materials, several scenarios, and the

aerospace industry.

R.P. Carreker

Manager-Material Resource Analysis

Material Resource and

Traffic Operation

General Electric Company

1285 Boston Avenue

Bridgeport, CT 06602

W19-3
American Iron and Steel Institute

1000 Ifilli S<ml, N.W., Washington, D.C. 2»K»3r.

February 5, 1981

Dr. John B. Wachtman, Jr.

National Bureau of Standards

Materials Building B308

Washington^ D. C. 20234

Dear Dr. Wachtman:

The American Iron and Steel Institute, which represents

63 domestic steel producers who together account for 93

percent of U. S. raw steel production, would like to respond

to the invitation for expression of public and private sector

materials needs and recommendations for federal action

(46 Federal Register 2375). Specifically, we would like to

comment on (1) the particular materials to be examined, and

(2) the current and anticipated problems with these materials.

In our view the following criteria should be used by

Commerce in making its decision whether particular commodities

should be studied:

(1) Degree of import dependence (we recommend a

threshhold of 75 percent), and

(2) Political stability and orientation of major

supplier nations.

We have concluded that, of those materials which are vital

to the aerospace industry, those which should be studied are as

follows (listed in order of relative importance):

Chromium

Cobalt

Columbium

Titanium

Nickel

Aluminum

Our reasons for selecting these materials relate to the strategic and critical importance of these materials as related to

aerospace requirements, the high dependence the U. S. has on

imports, and the likelihood of significant and perhaps prolonged disruptions in these imports.

W20
Or. John B. Wachtman, Jr

Page 2

American Iron and Steel Institute

Manganese, while having a very high degree of import

dependence, from sources potentially subject to disruption,

is omitted only because of its lesser significance as an

aerospace material.

In undertaking its study, we urge that Commerce examine

problems associated with the U. S, strategic stockpile of

the materials reviewed. We are concerned that Government

holdings do not, in many instances, meet projected needs (or

goals) and that much of the stockpiled material is not of

such quality or condition as would make it usable by U. S.

consuming industries.

Gerald W. Houck, Jr.

Director

Energy Affairs

:clc

W20-1
1055 THOMAS JEFFERSON STREET • WASHINGTON. D.C. 20007

Tool and Stainless Steel Industry Committee

337-6000

February 4, 1981

Dr. John B. Wachtman, Jr.

National Bureau of Standards

Materials Building

Room B 308

Washington, D.C. 20234

Dear Dr. Wachtman:

I am sending this letter on behalf of the Tool and

Stainless Steel Industry Committee (TSSIC) , an association of

seventeen specialty steel producers, in response to your Federal Register notice of January 9, 1981 inviting expression of

public and private sector materials needs and recommendations

for federal action. 46 Fed. Reg. 2375.

The U.S. specialty steel industry is extremely concerned

about the availability of critical raw materials to meet the

needs of the aerospace industry. We are concerned about the

high dependence of the United States on foreign sources of

supply, and the inadequacy of the U.S. defense stockpile both

in terms of quantity and quality. One of the most critical

items from our standpoint is cobalt. The following outlines

some of the most current problems. Many of these same problems

would also apply to chromium, columbium, and, nickel and we would

be happy to provide more details on these elements as well. We

have established the Critical Materials Subcommittee as a permanent committee to closely review and consider problems in

this area.

The Critical Materials Subcommittee of TSSIC is all too

familiar with the price explosion in cobalt that started in February/May 1978 with the international problems in Zaire and

Zambia - that had brought the price of cobalt in the USA to a level 3.9 times higher, and dramatically affected superalloy

costs for Department of Defense needs.

Similarly, we understand the history of USA consumption

nd the present quantity of cobalt in the GSA stockpile as to:

SUBJECT: Aerospace Materials

Needs "Cobalt”

W21
1. Present annual consumption levels in the 16-18 million pound range.

2. The present GSA stockpile level of approximately

43,000,000 lbs. and the recent upward revision of the

GSA goal to over 80,000,000 lbs. (similar to older

objectives)

.

3. And finally, the key concern and the key question - namely, the quality of the 43,000,000 lbs. now in the

stockpile compared to 1981 and onward Defense needs.

GSA computer printouts confirm that the material in the

stockpile was purchased prior to 1954 and probably prior to the

March 10, 1953 Specification No. P-13-R. None of this

43,000,000 pounds consists of high purity Electrolytic Cathodic Cobalt, but all of it is granules or rondelles (containing

higher levels of residual elements). It is well known that

these residuals are catastrophic for the manufacture of Aircraft Rotating Parts.

Further, from releases made from the stockpile in the

early 1970' s, individual member companies of the specialty

steel industry can confirm that the "listed chemistries" for

the stockpile lots are not accurate by 1980 standards due to;

a) 1950 methods of measuring to the then

Specification No. P-13-R.

b) No sampling plan stated in the specification to verify that the sample

chemistry analyzed and listed truly

represents the analysis of the stated

lot.

SUGGESTED STOCKPILE OBJECTIVES

Quality

Defense Department objectives need not require that all

cobalt in the stockpile meet the most strict requirement;

namely, that for Aircraft Rotating Parts . In brief, a pragmatic

view suggests:

1. The present inventory of granules and

rondelles can be used for making high

speed steel, tool steel, Alnico magnets, and carbide tooling.

W21-1
2. That FEMA ask industry to confirm

that GSA's proposed new Specification No. P-13-R3 of June 28, 1979 is

basically adequate for most Aircraft

"Non-Rotating" Parts, medical, and

energy applications.

3. That FEMA ask industry to supply the

new suggested specification for cathodic cobalt for Aircraft Rotating

Parts. Limits must be set for residual quantities of Zn, Zn+Cd , P, Sn

and Sb as well as various gas contents. (The TSSIC Subcommittee has a suggested speicf ication.

)

4. GSA's specification must include a sampling plan in the specification to

assure that for future purchases the

supplier's reported chemistry is

checked and that it represents the

chemistry of each 250 kg drum in the

lot indicated. The TSSIC Subcommittee can supply a suggested sampling

plan.

Quantity

At meetings with GSA on October 31, 1979 and DOD on

December 11, 1979 the following general suggestions were made

and these still appear correct; namely, that

1. 25-307o of the stockpile meet a new

cathodic specification for rotating

parts

.

2. 40-607o of the stockpile meet the new

granule/cathode Specification No. P13-R3.

3. 25-307o of the stockpile can remain in

present (pre 1954) quality.

If 1981 to 1985 budgetary limits dictate no total increase in

the stockpile quantity above 50,000,000 lbs. to 60,000,000

lbs., it would appear that USA can live with that limit if the

quality of the stockpile is balanced in the above proportions.

W21-2
ECONOMIC IMPLICATIONS

Cobalt prices (stabilized 1980) are showing weakness in

the world markets, and eventually may decline somewhat. Substantial purchases by GSA could probably be made over the next

five years or so of cathodic cobalt without major impact on the

price if concurrently GSA sells approximately equivalent quantities of the present (pre 1954) stockpile of granules and

rondelles. The low quality stockpile cobalt could probably be

sold at $18 . 00-$20 . 00 per pound (versus a 1954 purchase price

of $2.50 per pound) and the cathodic material could be purchased

at $22 . 00-$25 . 00 per pound. A five-year program at 5,000,000

lbs. per year would place the inventory in good balance for

Defense needs at an out-of-pocket cost of only perhaps

$25,000,000 per year.

If I or the TSSIC Critical Materials Subcommittee can be

of any assistance to you in researching or pursuing your policy

goals, please call.

J. L.

General Manager - Marketing

Sincei

JLW: aap

cc: David A. Hartquist

W. R. Solomon, Jr

.

W.J. Pendleton

W21-3
ALUMINUM COMPANY OF AMlRICA

1200 RING BLDG,, WASHINGTON, D, C. 20036

ALCOA

1981 February 05

Dr. John B. Wachtman, Jr.

National Bureau of Standards

Materials Building B308

Washington, D. C. 20234

Dear Dr. Wachtman:

Attached are Alcoa's comments and recommendations regarding

actions to be considered by the Department of Commerce in response

to P.L. 96-479.

Please advise me if you wish me to present them at your forthcoming workshop so that viewgraphs can be made.

These points and comments can be covered in a five minute talk not

counting any discussion that might occur.

CrRE^9^ B. BARTHDLD

Manager, Technical Programs

GBB : 1 js

Attachment

W22
DEPARTMENT OF COMMERCE WORKSHOP

National Materials & Minerals Policy Act 1980

P. L. 96-ii79

Aerospace Industry Considerations - Aluminum

Today's Conditions

A. The U. S. imports almost all of its metal grade ore either in

the form of bauxite or alumina.

B. The industry's raw material base is broadly dispersed so that

any interruption of supply at one source can be accommodated from

other sources. The industry has researched a number of possible

alternatives to bauxite and has developed the technology to use

them. All are processes that would use domestic sources.

C. The National strategic stockpile contains a sufficient amount

of bauxite to meet defense requirements for aluminum until such

time as facilities to process alternative domestic ores can be

brought on stream.

D. U. S. domestic expansion of refining capacity and primary

ingot production has slowed down considerably. The ability to

build power capacity at a reasonably competitive cost is so

constrained by the regulatory process as to virtually eliminate

aluminum smelting expansion domestically.

W22-1
2

E. The U. S. aluminum industry is expanding its metal production

capabilities outside the United States in such places as Brazil

and Australia partially because these countries continue to demand

a growing share of downstream production. They have the ore, they

want to refine it, and produce the metal to gain the added value.

They have the electrical energy, and the will to meet the

challenge of growth of power supply and the environmental

consequences

.

F. The industry's technology base is very strong. New higher

strength, lower density, higher modulus alloys in both ingot

technology and rapid solidification technology are emerging from

our laboratories especially for the aerospace industry. In

addition, our process efficiency in energy use is improving with

the application of new smelting technology and improvements on the

conventional reduction process.

G. Fabricating facilities for aerospace grade sheet, plate,

forgings and extrusions are being expanded to meet the forecast of

increased demand. The airlines' current cash flow problem has

reduced the demand for aircraft that was experienced last year and

was the cause of the extended deliveries experienced by some

builders. More recently the aluminum industry's expansion plans

have been stretched out to keep capacity in balance with forecast

demand

.

W22-2
3

H. Our international trading competitors have a more advantageous

tax policy than exists in the United States. This tax policy

allows them to modernize facilities and increase productivity. In

the long run they will become more price competitive in fabricated

products to the disadvantage of our domestic industry.

I. The balance between capacity and demand in the aluminum

industry is extremely delicate and fragile but it must be achieved

because the cost of idle facilities in a capital intense business

is too high to endure in today's high interest economy. A standby

surge capacity cannot be afforded.

3 . A surge capacity for national security requirements, however,

does exist. The aluminum industry's current production for

defense requirements is approximately 1^ of total production. The

balance - 99 % is for commercial applications, i.e., automobiles,

beer cans, siding, electrical cable, foil, etc. These uses would

lose their place in line as non-essential in a national emergency

thus releasing a great portion of that 99 % to defense

applications. The convertibility of fabricating facilities from

non-defense to defense can easily be accomplished. There would be

some bottlenecks. Advance planning as to the type and quantity of

aluminum would be needed to provide for a quick transition. The

bottlenecks that occurred during the past two years have been

recognized and additional capacity is being added. Current

capacity expansions include heat treated sheet and plate, large

press extrusions, and intermediate and large press forgings.

W22-3
4

K. Recycling, mainly of used beverage containers is becoming a more and more important source of raw material to the aluminum

industry. Recycling consumes five percent of the energy required

to make virgin metal. Thus the use of recycled metal is an extremely energy-efficient process.

L. Substitution research and development to uncover replacements

for critical alloying elements is worthwhile. The aluminum

industry is highly dependent upon manganese as an alloying

element. A potential manganese shortfall could occur. The

elements of cobalt and chromium while not as important to aluminum

as they are to steel, are used in small quantities in some of the

new alloys being developed in both ingot metallurgy and rapid

solidification technology.

Recommendations

:

For the primary aluminum industry to remain competitive and also

expand domestically . . .

1. Long term power at competitive prices must be available.

Current regulations inhibiting the growth of power must be removed.

2. A balance between environmental goals and national defense

needs must be achieved. Opening western lands to selected mining

of critically short minerals should be allowed. Water rights to

exploit domestic aluminum ores must be provided.

W22-4
5

3. U. S. tax policy should be changed to allow for faster

depreciation of facilities so that expansion and modernization and

greater productivity can occur.

The Defense Department should provide industry with detailed

information regarding its weapons requirements for both peacetime

and mobilization scenarios so that industry can plan to meet these

needs

.

Research to develop substitutes for critical elements that are in

short supply should be encouraged.

The aluminum industry, although critical to aerospace, is in

comparatively good health. Those materials and minerals that are

subject to geopolitically caused shortages or those that are

naturally scarce should receive our attention. Aluminum is not in

this category. Federal actions that would assist the domestic

health of industry in general should be favored instead of those

actions that would discriminate in favor of one material.

W22-5
Materials

WALTER R. HIBBARD. ]R.

A REVIEW OF RECENT policy studics relating to materials

and minerals suggests that there are two predominant issues: (1) The

need to create a cooperative environment between government and in- dustry in order to assure a strong future in the field of materials. (2) The

deterioration of long-range research and the emphasis on short-term

development that have been brought on by profit squeeze, energy costs, and environmental and regulatory restrictions. The symptoms of these maladies have been studied and reported in detail, but the disease, namely, a national policy of protecting society from industrial excesses, thoughtlessness, or environmental and social neglect by means of regulations, must be directly addressed.

Government policy consists of actions such as legislation and regulation which are implemented and enforced. Therefore, statements of

policy, without action, are not policy. For example, despite declarations

of government officials to the contrary, the effect of United States energy

policy has been to increase the use of imported oil and gas by regulation,

to curtail the use of coal and nuclear energy sources by regulation, and to blame any problems that arise on industry. The enforcing persons play

key roles in policy implementation.

Congress, in response to single-issue lobbying dramatized by the media, has legislated controls and regulations over every aspect of the materials cycle as follows:

Mining: Mine Health and Safety Act of 1977

Surface Mining Control and Reclamation Act of 1977 Land Policy and Management Act of 1976

Refining: Clean Air Act of 1970 (amended 1977)

Processing: Water Pollution Control Act of 1972 (amended 1977) National Environmental Policy Act of 1975

Design: Design Liability actions Manufacture: Occupational Health and Safety Act of 1970

National Energy Act of 1978 Assembly: Power Plant and Industrial Fuel Use Act of 1978

Walter R. Hibbard. Jr., is University Distinguished Professor of Engineering at Virginia Polytechnic Institute and State University.

84

0077-8923/79/0334-0084S01.75/2 Si 1979. NYAS 2 Reprinted with permission from the

New York Academy of Sciences

W23
HIBBARD; MATERIALS 85

Use: Consumer Product Safety Act of 1973

Recycling: Resource Recovery Act of 1970 Resource Conservation and Recovery Act of 1976 Energy Tax Act of 1078

Disposal: Solid Waste Disposal Act of 1965 Toxic Substances Control Act of 1976

Serious concern for the depressed condition of the materials industry

in the United States has been expressed in numerous reports; several major reports are listed in the Appendix at the end of this article. The regulatory laws have led to the proliferation of regulations by

avid bureaucrats. But concerns for the conserving of materials have led merely to studies and reports with no policy implementation. As a result,

regulations are shaping the destiny of the materials industry in the United

States economy.

Regulations and their enforcement have substantially affected energy

aspects of the materials cycle from production, to fabrication, to use, and finally to disposal. For example, regulations have caused severely in- flated costs. They have added nearly $5 billion to the Federal budget of

55 agencies whose 126,000 regulators force the expenditure of $102

billion per year by industry for compliance and information. Compliance with pollution regulation requires expenditures of $47.6 billion per year, of which air pollution accounts for $13.1 billion per year. More

positively, however, benefits arising from air-pollution control are estimated to have saved $22 billion in costs of health care, property

damage and harm to fish and wildlife. Regulation also directly affects exploration and supply; it has halted

the expansion of United States basic-materials capability and led to in- creasing imports; it has had an impact on the recycling process; it has

generated substitution incentives by limiting access to sources of scarce

materials; and it has imposed conservation measures and dictated energy

use.

In addition, there is an enforcer-violator type of situation where the enforcer changes the rules periodically and serves as both judge and jury

in cases of alleged infraction. This situation subsequently leads to an

adversary relationship that generates an environment of suspicion and

distrust, and deeply erodes the possibilities for cooperation between in- dustry and government.

Regulation now anticipates and legislates new technology before it exists. Scrubbers and catalytic afterburners are examples. Nearly one-third

of United States industrial research and development (R&D) is estimated

to be involved in some way in reducing the costs imposed by regulation.

W23-1
86 ANNALS NEW YORK ACADEMY OF SCIENCES

As a result, we are now entering an age of little new-materials R&D of a long-term innovative sort, particularly in the area of new processing

discoveries.

As an example, the passenger automobile is regulated to be safer, less polluting, more energy-efficient and more durable within a certain time

limit As a result, R&D in the auto industry is concentrating on these fac- tors (which are not mutually self<onsistent) and this has caused United

States companies to manufacture overseas with foreign technology, and

to import into the United States. The basic materials industries are also trying to modify their existing

facilities to satisfy regulatory guidelines while expanding their operations overseas to produce basic materials and, sometimes, manufacture products and components for importation into the United States.

In general, then, R&D has been forced to focus on short-term development of solutions to the problems created by profit squeeze, regulation,

and energy use. Even university research has responded to funding

directed at environmental protection and energy conservation. And as a

result, long-range research has deteriorated.

Science and technology policy probably cannot rectify this situation,

since existing antimaterials policy stems primarily from grass-roots,

single-issue laws. Congress is likely to change these laws only under

pressure, and voters will press for change only when their quality of life seems threatened.

Materials Issues

Materials issues relate to a variety of needs in our society. We must provide an adequate supply of basic materials by reducing imports or assuring their availability. We must increase domestic productivity. We must

minimize negative environmental impacts and energy costs, and we must

conserve and recycle materials. At the same time that we seek to fulfill these needs, we must respond to government regulations that often seem

at cross purposes with economic goals.

United States basic-materials industries are expanding overseas where

there are more incentives for productivity and there is greater government cooperation. Aluminum imports have increased by more than 100

percent since 1975, and these are largely used by United States industry.

Concurrently, imports of refined copper have increased by 242 percent,

and iron and steel by 44 percent. Imports of raw and processed materials

have increased to $20 billion per year. The net value of imports relative to exports has grown from approximately zero to $6 billion per year.

W23-2
HIBBARD: MATERIALS 87

Although there is a world surplus of the aforementioned materials, user

industries seek lowest prices with little concern for an ailing domestic

minerals industry. They argue that domestic resources are conserved and

pollution is avoided by not mining and refining those materials in the

United States. However, this policy has seriously affected employment in the industry. Between 1975 and 1978, unemployment increased by 1,000

workers in the aluminum industry, by 4,500 in the copper industry, and

by 55,000 in the iron and steel industry.

In the basic materials, certain overseas locations offer comparative advantages relative to those of the United States. There are richer ores, cheaper energy, lower labor costs and, in some instances, tax advantages

and ready capital access. In general, pollution-control regulations are

less stringent and safety regulations are more compatible with standards

of industrial procedures. In fact, except for copper, many of the overseas

resources are owned or operated by United States corporations that are importing into the United States market as well as into Europe and

Japan. Overseas processing is expanding into the primary processing of

shapes at the source. The prospect of a major imbalance in the domestic

capacity of metals-producing industries (relative to demand) over the next decade appears almost certain, because existing United States

facilities may become economically unprofitable.

In addition, American companies are gradually stepping up overseas manufacture of consumer goods and components for machinery and

electronics using foreign materials and then importing them into

domestic markets. This suggests that American goods are no longer cost- competitive.

An even higher percentage of basic materials being imported both in their primary state and in consumer products implies both positive and

negative effects. The resulting manufacturing costs in the United States are lower because of richer ores, lower labor costs, and regulations that are less restrictive and less costly to comply with. Less pollution is created at home and energy resources are conserved. On the negative

side, however, domestic employment in these industries and their supporting services will decrease. Adverse pressure on the balance of

payments will continue and uncertainties about supply reliability will increase.

By contrast, Germany and Japan thrive on imported materials. But in those countries industry has a more congenial relationship with government, the legislature, the media, and thus the people. Moreover, these

govenunents assume a more direct role in assuring supplies and maintaining balances.

W23-3
88 ANNALS NEW YORK ACADEMY OF SCIENCES

Energy and Environment

Materials production is energy-intensive, and necessitates major programs of energy conservation in its industries. Because of the cost and

quantities of energy used, materials fabricators and product manufacturers are designing products with materials and processes that reduce

energy consumption while increasing productivity. For example, an

energy-conserving set of processing, forming, and fabrication operations

would involve lighter weight and more unitized construction (to reduce

energy in joining and assembly).

Moreover, the development of suitable materials for energygenerating and energy-conversion systems is critical in several cases, such as coal conversion and solar-electric power, and may be the rate- limiting factor in their commercial feasibility. Such energy-conserving

measures, however, often confront environmental restrictions that fre- quently call for an increase rather than a reduction in energy consumption. Thus, seeking to achieve both energy conservation and compliance

with environmental regulations poses a considerable challenge for materials R&D.

Recycling

Materials recycling is encouraged by several Federal acts but is limited in practice to those situations where a cost advantage exists. Manufacturers

such as Western Electric, General Motors and General Electric are recy- cing significant amounts of materials internally. More designs simplifying recycling are needed and may emerge where profitable.

Recycling to minimize energy requirements and to minimize imports can be cost-effective, and regulations may require it. The Resource Conservation and Recovery Act of 1976 requires that all waste materials be

stored in a sanitary land fill and that open dumping cease and its effects be repaired. This law provides incentives for the recycling of materials,

particularly municipal waste. The technology is available to accomplish

this objective, but institutional, capital-formation, and waste-collection

problems exist. Again, technology leading to improved design of recycling may stimulate this effort. Ease of identification of recyclable

materials is essential, as exemplified by the all-aluminum beverage can and the lead storage battery. However, changing the trends of our throwaway packaging is unlikely. Nonretumable containers with

convenience features will probably persist as we continue to generate

solid waste. Technology is needed to sort the waste so that it can be

W23-4
HIBBARD: MATERIALS 89

recycled in its most useful form. The concept of a waste dump as a man- made resource is intriguing. Most municipal waste may be a useful source of copper, gold, silver and other materials, once the bumables are consumed and the iron, aluminum and glass is removed. Such an approach would be worthy of policy consideration. In the case of hazardous materials which cannot be recycled, intensive study is required to evaluate risks and to find how to neutralize or contain them in a rational,

acceptable system.

Conservation

Although at present there may not be a world-wide shortage of

materials, it is anticipated that such shortages may develop with respect

to selected, critical materials since new supply is not keeping pace with

demand. Imports of materials by American firms indicate that price is an

important factor, for overseas production costs are generally lower than

domestic costs. In addition to cost as a primary motivating factor is conservation. Weight reduction and fabricability are important where

energy is a factor. Experience with attempts at fuel conservation has

shown that conservation will not be effective unless there are shortages

and associated crises. Conservation of manufacturing materials can result from the use of more durable materials. If, for example, American-made automobiles

lasted as long as European-made ones, fewer materials would be required

to provide the ^me functional service. Corrosion has been estimated to cost the American consumer $70 billion annually. In general, technology

is available to minimize corrosion, but at a cost that the consumer is apparently not willing to pay. Design for maintenance, servicing and repair

has given way to design for replaceable components. There is an urgent

need for greater awareness of the cost-effectiveness of maintenance and

repair, particularly in view of the impending shortages of some materials

and their associated cost increases. New technology is needed to stress designs that incorporate functional materials that do not corrode or wear

out and that permit protection and necessary servicing by the owner or maintenance man.

Substitution and Supply

A national policy on materials substitution is lacking. It is clear, and it has been amply demonstrated in our economy, that materials substitution can lead to advantages such as improved fabricability, lower

W23-5
90 ANNALS NEW YORK ACADEMY OF SCIENCES

weight, ease of recycling, improved joining and assembly, improved cor- rosion resistance, improved wear resistance, improved responsiveness of

availability to abundance or scarcity, and lower cost. The supply of

materials is subject to political factors both here and abroad, and to

costs, scarcity, regulation and public opinion. Thus, there is an urgent

need for a system that can give early warning of impending shortages in the supply of materials, and that can provide for an orderly transition to substitutes without economic dislocation.

Research and Development

Recent studies indicate that less than one-third of total R&D expenditures

is devoted to materials. Current materials R&D is mostly concerned with

regulation, antipollution measures, health, safety, energy conservation,

and so forth. Little effort is dedicated to the development of new

materials, or to durability, availability and the other concerns expressed

in this article. As a result, productivity is not receiving its historic R&D

impetus.

The most exciting R&D opportunities lie in treating the entire

materials cycle as a system. For each stage, a materials objective might be

devised as follows: Production should minimize pollution and energy

use. Fabrication should be designed for unitized construction. Product

assembly should be designed for disassembly and sorting to facilitate recycling. Maintenance may be reduced by designing for durability.

(Note that the question of new materials is not the issue. Considerations

relating to materials processing and assembly are predominant.)

To achieve these goals, materials R&D must re-emerge under the

stimulus of technical opportunity as it did twenty years ago. Science and

technology policy can affect this regeneration.

Summary

In summary, key general issues related to materials are:

• Lagging innovation and productivity.

• R&D emphasis on short-term incremental improvements.

• Need for improved cooperation between government and industry.

More specifically, materials issues relate to these needs: (1) alleviation

of increasing energy and environmental costs; (2) development of new

materials to commercialize new energy processes; (3) more thorough

assessment of the risks of hazardous materials and how to contain or

neutralize them; (4) conservation of materials by design, substitution and

recycling, and provision of alternatives to imports; (5) early identificaW23-6
HIBBARD: MATERIALS 91

tion of supply and availability problems; and (6) recognition of political factors in supply, overseas shifts, regulations, and public opinion.

In light of this overview of issues in the materials area, let me pose

several questions on the relationship of science and technology policy

and the materials industry:

1. Do we need a national materials policy?

2. How can long-range research and innovation be restimulated?

3. Would the materials industry thrive under a Department of Natural

Resources?

4. Should regulations be reviewed in advance to evaluate the science

and technology upon which they are based?

5. Is a materials impact study needed with each new regulation or

ruling?

6. Is science and technology policy an effective antidote for other national policies that are draining the materials capability of the United

States?

7. How can materials issues best be integrated into the current

cabinet-level studies on nonfuel minerals policy and on innovation?

8. Is there a recognizable science and technology policy relating to materials?

These questions have no simple answers. They do, however, indicate

the range of priorities for policy development and evaluation over the next several years. Because of the complexity of the issues, the magnitude

of such an effort is awesome. But is is essential to the overall health of our economy and quality of life.

Appendix: List of Recent Articles Focusing on Depressed

Condition of Materials in the United States

1. Materials Policy Commission Report of 1952.

2. National Materials Policy Act of 1970.

3. Mining and Minerals Policy Act of 1970.

4. NAS/NRC/NAE Report of 1972: Elements of National Materials Policy.

5. NAS/NRC/NAE Report of 1973; Man, Materials and the Environment.

6. NCMP Report of 1973: Materials Needs and the Environment, Today and

Tomorrow.

7. NAS Report of 1973: Materials & Man's Needs. Materials Science and

Engineering (COSMAT).

8. Report of National Commission on Supplies and Shortages of 1977.

9. Five Henniker Conferences on National Materials Policy.

10. OTA, GAO, CRS studies of materials.

11. Several hearings before Congressional Committees on National Materials

Policy Bills.

W23-7
AEROSPACE INDUSTRIES ASSOCIATION OF AMERICA. INC,

1725 DE SALES STREET N W WASHINGTON D C 20036 TEL 347 2315

OFFICE OF THE VICE PRESIDENT

January 26, 1981

Dr. Jordan J. Baruch

Assistant Secretary for Productivity,

Technology and Innovation

United States Department of Commerce

Washington, D. C. 20230

Dear Dr. Baruch:

This is in response to your letter of January 9, 1981 to

John Geron of my staff, advising of a Workshop on Materials and

Minerals Policy to be held on February 9-10, 1981.

The aerospace industry is particularly aware of and concerned

with the current problems of materials shortages, as well as the

costs of such materials, when available. Accordingly, we believe

the Workshop is timely and should result in actions to correct the

materials situation.

We have informed our membership of the Workshop and are advised

that the aerospace industry will be represented.

Because of the importance of this matter, please feel free to

call upon us for any assistance you may deem appropriate.

Very truly yours

Karl G. Harr, Jr.

W24
MACKAy SCmCuL LK mines

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DR JUHN fc yaChTman, JR

NAflCNAL dCKEAU UF STANCAKCS

materials tUlLUlNG e308

WASFiNtiTCN UC 2U23R

DEAR OH i'ALhTmaN, JHANK YDL FCR YUUR INVITATION TO PROVIDE A STaTEMEM fur Tl-E i^ORKShtP LN FEtiRUARV STH AND lOTh. HLwEVERf AT TMI&

stage in ret RRLCEbb CF CEFIMNG THE MAIERIAL NEtUb CF TR£ AbRC SPALL

INDUSTRY lAM AFRAID THAT I RAVE LITTLE TO CCNTRIBUTE, my EXPERTISE

LIES Al )Ht SUPPLY END CF P A T ER I A LS • T P E MINERAL RESOURCES THAT

ULTIMAfELY ARE LbED EY AERC SPACE OR CTPER INDUSTRY, I mavE VIRTUALLY

NO kNO-^LEDGE of hhaT materials are used by the AERC SPACE INDUSTRY,

FRCP A SUPPLY VIERPUINT, THE CPOILE CF COBALT AND TITANIUM FOR CLOSE

EXAMINATION ^Ab A DUCC CNE,'THE FURMER RESPRESENiS MINERAL

COPPOUlllEb IN HHICH The united states is SERICUbLY DEFICIENT, hRILL

THE LATTER kEPheSENTS THCSE THAT hE PAVE IN ABUNDANCE BUT FCR RPlCM

WE PAY nut have bUFF ICIEN T PRODUCTION CAPACITY, i TRUST THE

investigation will start AT THE VERY BEGINNING OF MATERIALS SUPPLY,

WITP IDEN T IF ILA I ION CF ALU TPE MINERAL LCMMUDiTItS REGLIRED bY TPE

AERC SPACE INDUSTRY-wpiCP PHCHA9LY wILL'INcLLDE The ENTIRE SPECTRUM

OF minerals,

WHEN THE EXAMINATION REACHES TPE STAGE CF CONSIDERATION CF MINERAL

RAW materials Supply, i will be pappy tl wcrk with ycu in any ray i CAN , YOLRS IHLLT

ARTHUR baker, 3RD, CEAN

17:3'? ESI

MGMCCMP PGM

W25

TO rpp: V pv ^1A' p-\'Fr<;p

I
FIBER MATERIALS, INC.

tor materials ingenuity

Af'ington Virginia

TO: Dr. Bruce Steiner, National Bureau of Standards

FROM: E.N. Eiegge , Executive Vice President

DATE: 6 February 1981

SUBJ : Workshop on Critical Materials Needs in the Aerospace

Industry

The agenda for the "V’orkshop on Critical Materials Needs

in the Aerospace Industry" appears to address only scientific

and engineering aspects of the problem. The economic aspect is

of equal importance and should also be considered. The follovring

types of incentives to encourage provate entities to actively

participate would be in accord with our free enterprise

system and in addition would more clearly define the role of

the U.S. Government and reduce its fiscal committments.

1. For critical materials, consider paying the private entity

the going interest rate on his purchase and stockpiling of

critical materials in return for an equity position v;hen

sold. (For example: Banks are beginning to let home

mortgages at reduced rates in return for an equity position

when property is sold.)

2. Impose duties on imports of selected critical materials

to encourage development of domestic sources.

3. Impose taxes on products using selected critical materials

to encourage development of substitute materials.

ENH:clm

PLANT « EXECUTIVE OFFICES

Biddelord Industrial Park

Biddelord. Maine 04005

Tel 207-282-5911

Telex 944480 FIBERMATL

EASTERN OFFICE

Crystal Plaza Office Bldg 41 Suite 804

2001 Jefferson Davis Hwy

Arlington. Virginia 22202

Tel 703-979-0650

Telex 903014 FIBERMATL AGTN W26

WEST COAST OFFICE

11222 La Cienega Blvd

Suite 320

Inglewood. California 9030J

Tel 213-645-8363

Telex 687421 FIBERMATL INVV
1735 =»elford Road,

Reno, Nevada 89509

February 1, I 98 I

Dr. John R, V,'echtrT?an Jr.,

National °ureau of Standards,

Materials ^ulldine- R 308 , Veshington, D.C. , 202.JUDear Dr, Wachtman:

I recieved information from Senator Howard Cannon

on January 31» 1981, regard inc the Commerce Department

study and workshop scheduled for Feb. 9, I 98 I in Washington

on critical minerals. With such short notice I hardly

think this letter input will be recieved by the deadline

set for February 5» 1981,

I believe we should apply Einsteins theory of

relativity to every phase of american govern/ment and

I use it as a basis of my comments as follows;

lo I feel that this great country needs sufficient

steckpiles of the critical minerals such as Cobalt,

2. Current problems with these and other minerals

are; (a) The locking up in declared wilderness areas by

the bureau of Land Kanagement, and (b) the restrictive

regulations by the Rureau of Land Management, which

prohibits and discourages prospectors and miners to spend

their money and expertise in finding these and other

minerals to safeguard this country’s freedom which will

in tnrn protect that freedom,

3. Suggestion for corrective action would be to review

the Federal Land Pftllcy and Management ^ct of 1976, and

especially the recent {i960 ) regulations subpart 3809 - promui hcirf hv i-.hA nf T.« Management,

Titanium end other new critical minerals, now and tiie

future

,

Lee S, Smith

c/c to Senator Paul Laxalt

c/c to Secretary James G. Watt, Interior Departm.ent

W27
W28

Corporate Technology

P.O. Box 1021R

Morristown, New Jersey 07960 Phone: (201) 455-2511

February 3, 1981

Dr. John B. Wachtman, Jr.

National Bureau of Standards

Materials Building B 308

Washington, D. C. 20234

Dear Dr. Wachtman:

Re : Workshop on Critical Materials

Following up our several phone conversations, enclosed

is the brief presentation our Mr. Stanley Fass will be prepared to make on February 9. The final list of attendees

from Allied Chemical is

Stanley Fass

Dr. Charles Hays

Michael Skrypa

Yours truly

MJS/amw

enc

.

M. J. Skrypa

Product Manager

Consolidated Metal Products

W28
January 28, 1981

W28-1

Slide 1

Slide 2

COMAT PRESENTATION

Stanley Pass

I would like to thank you for inviting Allied Chemical

to participate in this workshop on critical materials. It is

a distinct pleasure for me to present the innovative developments that are taking place in the Consolidated Metal Products

Department of Allied Chemical Corporation in Rapid Solidification

Technology and new alloy development. We believe that our efforts

represent a major breakthrough in Powder Metallurgy and could

have a Significant impact on the critical material shortage.

In the last several years great strides have been made

in developing technology, such as Rapid Solidification, that

enables us to make high quality powder for aerospace applications. Thus, one will be able to conserve critical materials

by consolidating powder to near-net shape and minimize the

machining wastes. At Allied Chemical, work is going on that

may enable us not only to conserve critical materials but

offer a performance effective substitute for these alloys.

Allied Chemical has extended the RST processes developed

for Metglas amorphous alloy ribbon and has produced metal

powders of alloys with microstructures that could not be made

by conventional casting technology. These alloys are nickel

and iron-based, containing molybdenum and boron but generally

do not contain any chromium, cobalt, or tungsten. We believe

that some of these alloys will be able to replace cobalt and

other strategic metals in certain application areas without

W28-1

IV
Slide 3

Slide 4

COMAT Presentation - Page 2

loss of performance and perhaps even improved performance.

Although the applications that I will be discussing today

are not directly related to aerospace systems, they nevertheless

would have an impact in this area.

We have identified a number of application areas that have

been chosen for initial field testing and market entry. These

are shown on the next slide. Metal cutting tools, of course,

are used extensively in the aerospace industry. Approximately

10% of the cutting tools sold in the U. S. serve that sector.

HOT EXTRUSION DIES made from our alloys are being tested in

the aluminum and copper industry. Aluminum extrusions play

an important part in the manufacture of air frames and surfaces.

Plasma spray powders made from Allied Chemical alloys are being

evaluated for us as a possible replacement of cobalt-containing

superalloy hardfacing powders. Recently, interest has been

generated in considering the use of coatings in aerospace

applications such as coating turbine blades. Our alloys are

also being tested for wear applications. One area where this

might impact on the aerospace industry is its use in helicopter

gears and bearings. The objective in that case would be to

increase performance over conventional gear steels.

The next slide shows some of the typical materials used in

the applications we just reviewed. One can see that cobalt,

tungsten and chromium are all necessary components of these

alloys. Approximately 12% of the cobalt consumption in the U. S.

is used in metalwork cutting tools. Similarly , over 50% of

tungsten is used in these application areas. Success of our

alloys may be able to reduce the consumption of the critical

materials

.

W28-2
COMAT Presentation - Page 3

Slide 5

Slide 6

Slide 7

I would like to spend several moments reviewing some of

the data that we have obtained to date that makes us very

enthusiastic about our process and alloy systems. The initial

cutting tool data was developed for us at Metcut Research,

a consultant, in Cincinnati. They recommended that we use M-42,

a premium grade HSS containing 8% cobalt, as a standard. They

used optimum tool geometry for the M-42 and our material was

ground to the same geometry; no attempt was made to optimize it.

The next slide shows the turning test results. As one

could see, the M-42 performed optimally in the range of 75-100 SFPM.

Allied Chemical's CMP alloys 7007 and 3065 showed the same tool

life at approximately twice the cutting speed. Thus, significant increases in productivity or tool life are indicated for

our alloys.

The next slide shows the results of the interrupted cut,

namely, face-milling tests. The data again shows that the

Allied Chemical CMP alloys out-performed the M-42 HSS by over

100% improvement in tool life, at the same cutting speed, or

the ability to significantly increase cutting speed and thus

productivity while maintaining an acceptable tool life. We

realize that these data are still preliminary. However, the

potential we have shown to significantly improve cutting tools

without the use of strategic materials is enthusiastically

supported by a leading HSS cutting tool manufacturer with whom

we are embarking on a mutual development program.

CMP alloy 7025 is another alloy that has shown great

promise. The next slide shows the properties of CMP 7025 compared with Stellite 6. The excellent retention of high

temperature hardness and the abrasion wear resistance make this

alloy look attractive for high temperature applications where

W28-3
COMAT Presentation - Page 4

Slide 8

Slide 9

wear and abrasion resistance are important properties. Therefore, we embarked on a program of field testing this alloy in

copper and aluminum hot extrusion and aluminum die casting.

This program is still underway but the preliminary results look

very promising. The next slide presents some of the comments

that the users have stated about CMP 7025. In a report to us,

a major aluminum company stated that the CMP alloy "performed

very similar to carbide but much better than Hot Work Steel".

The user anticipates being able to use our alloy for complex

profile dies where carbide proves to be too brittle. In another

field test copper alloys were extruded through our die insert,

with billet temperatures of 800 to over 900 °C. The copper

company reported obtaining over twice the die life with our alloy

compared to the cobalt-based die they presently use. At Woodstock Die Casting, which is a subsidiary of Allied

Chemical, field testing is still underway. Over 20,000 castings

on our die have taken place and the product quality has remained

constant and the die has shown no wear. Woodstock also reported

that the die gave excellent release even when subject to extremes

in temperature variations and molten metal flow. These field

tests are continuing and we expect that in the near future several

alloys will have been qualified for commercial use. Our technical people believe that the success of the CMP

alloys is based largely on our unique Rapid Solidification Process. Our process is different, and we think better, than conventional PM processes and even other RST processes. For

example, CMP powders have a very consistent and homogeneous microstructure. Thus, each powder particle is essentially identical

to each other and this is true because each particle is cooled

W28-4
COMAT Presentation - Page 5 unidirectionally at over 1 million °C. In atomization processes

one obtains aggregates of large crystallites or powders that

range from amorphous, to cellular to dendritic structures. The

presence and location of ultra-fine grain intermetallic compounds in consolidated CMP materials result in greatly improved

chemical and mechanical properties. Our RST process also provides excellent yields without requiring large amounts of recycle

or powder classification. The flowability and tap density are

good and the process is scalable. For example. Allied has a Metglas casting unit that can process 1 ton/hr of material.

In summary, we believe that Allied Chemical has developed

a unique, economic RST process and excellent new alloy systems

that could have a significant impact on both improved product

performance and a reduction in the use of strategic materials.

We have described some of the areas that we are actively engaged

in. I would like to show, in conclusion, some areas that we

Slide 10 believe we could make significant contributions. In some of these

areas we have already begun discussions with government agencies.

We solicit the comments and interest of both the government and

private industry to pursue these possible applications as well

as any other areas that may be appropriate.

Thank you very much.

SF/amw

1/28/81

W28-5
ALLIED CHEMICAL CORPORATION

CONSOLIDATED METAL PRODUCTS DEPT.

(CMP)

W28-6
NEW DEVELOPMENTS IN METALLURGY AT ALLIED CHEMICAL

• UNIQUE ALLOY SYSTEMS

- IKON & NICKEL BASED

- CONTAINS MOLYBDENUM & BORON

- LITTLE OR NO COBALT. CHROMIUM

OR TUNGSTEN

•RAPID SOLIDIFICATION TECHNOLOGY

W28-7
INITIAL APPLICATION AREAS

•METAL CUTTING TOOLS

•HOT WORK TOOLS

• PLASMA SPRAY HARDFACING POVIDERS

•WEAR RESISTANCE PARTS

W28-8
SOME OF THE ALLOYS THAT

CMP ALLOYS ARE BEING EVALUATED IN COMPARISON

Cr V W Mo Co Fe Ni

M-42 3.8 1.2 1.5 9.5 8.0 Bal —

T-15 4.0 5.0 12.0 — 5.0 Bal —

WC — — 85-94 — 15-6 — --

Stellite*6 29 ^ ^ 2 5.5 Bal 3 3

*Registered Trademark of Cabot Corp.

SF

1/29/81

W28-9
Turning

4340

Steel,

Quenched

and

Tempered

302

BHN

Effect

of

Cutting

Speed

and

Tool

Material

S9inu!iA|— 9}n |ooi

W28-10

Cutting

Speed—

Ft.

/Min.
70

60

50

40

30

20

10

Single Tooth Face Milling 4340 Steel

Effect of Cutting Speed and Tool Material

Depth of Cut: .1 00”

Width of Cut; 2”

Set Up: On Center

_j I I I I I 100 150 200

Cutting Speed—Ft./Min.

W28-11
PHYSICAL PROPERTY COMPARISON

STELLITE 6* VS. ALLIED CHEMICAL CMP 7025

Property

Wrought

Stellite 6

Allied Chemical

CMP 7025

Hardness, Rockwell C

Room Temp. 45 50

@ 1000 °F 34 50

@ 1200°F 31 48

@ 1400®F 26 31

Elongation 0-1% 4-6%

Modulus of Elasticity 28.0 M psi 31.0 M psi Charpv V-Notched Impact St. 4 ft-lb 3.5 ft-lb Yield Strength @ 0.2% Offset 92 ksi 205 ksi Ultimate Tensile Strength 148 ksi 265 ksi Abrasive Wear, CM^/Rev 32.5 34

•Registered Trademark of Cabot Corp.

W28-12
PRELIMINARY FIELD TESTING RESULTS

LOOK VERY PROMISING

ALUMINUM HOT EXTRUSION - CMP ALLOY

"PERFORMED VERY SIMILAR TO CARBIDE

BUT MUCH BEHER THAN HOTWORK STEEL"

COPPER HOT EXTRUSION - CMP DIE OUT

PERFORMED COBALT-BASED DIE BY OVER

TWO TO ONE

ALUMINUM DIE CASTING - CMP DIE GIVES

EXCELLENT RELEASE EVEN WHEN SUBJECT

TO EXTREMES IN TEMPERATURE VARIATIONS

AND MOLTEN METAL FLOW

W28-13
ALLIED CHEMICAL'S RST PROCESS

•UNIFORM & HOMOGENEOUS MICROSTRUCTURE

•GOOD POWDER PROPERTIES i.e.

FLOWABILTTY. TAP DENSITY

•EXCELLENT YIELD

•COOLING RATE OF OVER 10^°C/sec

•PROCESS SCALABILITY

W28-14
POSSIBLE FUTURE APPLICATIONS

GAS TURBINE & DISKS

AIRCRAFT STRUCTURAL COnPONENTS

PENETRATOR & ARMOR

HELICOPTER GEARS S BEARINGS

W28-15
/%^000/V.»VCl_i_ AIFfCFtAFT- COfVt

Box 516. Saint Louis, Missouri 63166 (314) 2324)232

02 February 1981

WLH764-0281-1

Dr. John B. Wachtman, Jr.

National Bureau of Standards

Materials Building B308

Washington, D.C. 20234

Enclosure: (1) "Definition of Aerospace Industry Materials Needs"

Gentlemen:

This letter and Enclosure (1) is in response to a letter from Mr. Jordan

J. Baruch dated 09 January 1981 to R. J. Alagna, Staff-Vice President

Material, McDonnell -Douglas Corp. Due to the short time available for

response, Mr. Alagna assigned the response to the McDonnell Aircraft Co.

component (also located in St. Louis) for our corporate response.

It is our intention to have two representatives at the 9-10 February

Workshop. I will attend representing the McDonnell Aircraft Co. and Mr.

Roger Maples will represent the Douglas Aircraft Co.

In support of your request for prior input by 05 February 1981, the

following comments and enclosure is provided. It should be recognized

that the timing for our response does not permit MDC the opportunity to

prepare an in-depth written evaluation of the many aspects and questions

contained in the Federal Register listing, but based on the telecon with

Mr. Goodman, it is believed that this response will be sufficient for

your needs. In further support of your invitation, the MDC representatives at the Workshop will be able to expand on any of the specific subjects.

It is believed that the opinions provided herein are relative to all of the

MDC components, both military and commercial, and represent a fair assess- ment of our corporate position. The supplemental charts and graphs of

Enclosure (1) report were prepared by McDonnell Aircraft Co. for a prior

response to a Government task force in July 1980. The data is representative of the past, current and anticipated near-term market conditions.

Further, many of the recommendations contained therein should be very pertinent to your study.

The supplemental "Estimated Usage" values for titanium, aluminum and steel are provided to give you a perspective of material volume usage by MDC.

MCOO/V/VfLL. OOUOL.

W29
- 2

-

02 February 1981

WLH764-0281-1

Summary Conclusions :

The on-going surveillance by various MDC task forces in Engineering, Procurement and Manufacturing, as well as other key personnel, regarding MDC needs versus supply availability indicates no immediate shortages of minerals or materials adversely impacting contractual deliveries, nor would a reasonable

increase in aerospace requirements put MDC in a position beyond our control.

However, there are several potential production constricting supply concerns

resulting from mineral/material shortages and/or capacity constraints in the

event of a major surge in aerospace activity. Based on the intent of your

investigation to identify and recommend solutions to reduce/eliminate such

potential constraints, the following areas are recommended for consideration.

Our single greatest concern (and continual surveillance) is titanium product

leadtime. Other potential concerns are hard aluminum alloy capacity, raw materials such as cobalt, chromium and molybdenum bearing steels, particularly

as they apply to machine tools. One aspect of the study addresses material

conservation . In our opinion, one of the most constructive would be the

establishment of a large 200,000 Ton forging press.

Salient issues relating to each specific concern are delineated in Enclosure

(1). The concerns defined in Enclosure (1) inevitably point out that the

single most significant aerospace material supply concern is capacity . The

suppliers are specialized in products unique to the aerospace industry, i.e.

titanium, precipitation hardened stainless steels, and hard alloy aluminum.

The resolution to the capacity problems is to encourage expansion of

facilities by:

(1) Enacting long-term military procurement policies to enable

requirements to be determined on an accurate and long-term

basis;

(2) Institute favorable financial policies to encourage facilities

expansion, such as favorable depreciation rates, investment

credits and accessible capital financing loans.

Further, investigation of potential material shortages should include:

(1) Improved procedure in the stockpiling of critical materials

like titanium sponge;

(2) Improved procedures in the stockpiling of foreign dependent

materials like cobalt, chromium, platnum and alumina, with

a method for their release in a timely manner at times of

peak demand;

W29-1
- 3

-

02 February 1981

WLH764-0281-1

(3) Requiring recycling of titanium, cobalt, chromium and molybdenum

bearing scrap back to domestic producers and discouraging export

of this scrap.

I hope you find our opinions of value and wish you success in the complex

and broad spectrum of your assignment.

Yours truly,

MCDONNELL DOUGLAS CORPORATION

c

William L. Hodge

Branch Manager-Purchasing

McDonnell Aircraft Co.

WLH:jp

W29-2
MCDONNELL-DOUGLAS CORPORATION

Response

To

DEPARTMENT OF COMMERCE

Office of the Secretary

"DEFINITION OF AEROSPACE INDUSTRY MATERIALS NEEDS"

"Invitation for Expression of Public

and Private Sector Materials Needs and

Recommendation for Federal action."

Enclosure (1) to

WLH764-0281-1

02 February 1981
General Statement:

It is MDC's position that there are no current problems that are beyond our

control and that in a fairly wide band of aerospace activity none are anticipated. Only in a significant resurgence of military and/or commercial

production rates could the following areas discussed potentially create con- cerns, or if in the event some few strategic materials become non-existent , serious ramifications occur.

In summary, our opinions conclude that while there are some strategic

minerals and materials that under extreme conditions could impact our corporation, the majority of potential concerns center around conversion

capacity of these materials with the resultant lengthening of leadtimes

and high prices. This combination of problems could affect our corporation

and the aerospace industry in many ways. As such, the emphasis of this

position paper is directed to the potential problems of conversion capacities.

The major solution to these potential capacity conversion problems, both in

terms of national security and economics, points toward encouragement by the

U.S. Government to provide financial incentives for plant and equipment

expansion by the private sector.

Specific Review :

MDC is constantly reviewing/monitoring all aspects of the many factors that

could potentially impact our business, not the least of which are potential

supply problems. Task forces in Engineering, Procurement and Manufacturing

along with other key personnel are constantly assessing the impact on product

lines of increasing leadtimes, limited quantities and alternates available.

Changes in design, materials, processes and machine tool usage are made on the basis of these assessments. The results are as follows:

1. We foresee little likelihood of a potential problem in any non-metal 1 ic area. The usage of composites, for example, while having expanding

applications, will not, in our opinion, be a problem in the future. It

should be remembered that aerospace products, by their very nature, are extremely complex, consisting of literally millions of different components, each of which has some relative potential to create shortages.

If infinite details were listed, such things as resistors, capacitors,

integrated circuits, printed circuit boards, etc., might fall into

consideration, but, in our opinion, such items should not be the focus

of this study.

2. Steel is used in limited applications on aircraft due to its high

density, but is widely used for tooling requirements. Much of the

steel used by MDC both for airframe and tooling requires cobalt or chromium and molybdenus alloying elements. It should be recognized

that as alloying elements, the actual quantities of these materials

is very small. There is a recognized shortage of these materials

due to our reliance on foreign imports from countries with unstable

political situations, as well as a shortage of vacuum furnace capacity.

W29-4
2.

(Continued)

However, since the alloying elements required for airframe and tooling applications is small compared to usage in industry as a whole,

this problem is much broader than just an aerospace problem. Because

of this, the shortages of cobalt, chromium and molybdenum has impacted

MDC to a lesser degree than other industries, it is still of major

concern for aircraft engine manufacturers and specialized sub-tier

suppliers of such commodities as aircraft generators and cutting tools.

Recommended solutions include:

(a) Stockpiling of cobalt, chromium and molybdenum, but with at

least a portion of each accessible at times other than that

of a national emergency.

(b) Recycling of steel scrap bearing these alloys back to domestic

producers.

(c) Encourage additional furnace capacity by long-term military

procurement policy and favorable financial policies.

3. Aluminum is produced from bauxite and alumina, which is 93% imported.

In the absence of an OPEC-type cartel, there should be no raw material

supply problem in the foreseeable future. Smelting capacity is no problem since the aerospace industry consumes only a very small

quantity (5%) of all the aluminum produced. The potential constraining

factor is most likely hard alloy plate and, in particular, heat treating facilities. MDC is well aware of the $200 Million Alcoa expansion

program, which will certainly reduce the potential concern, but in the

event of a major change in aerospace requirements may still represent

a constraint. Resolution of the potential shortage of hard alloy plate

capacity might include:

(a) Long-term military procurement commitments;

(b) Favorable financial policies.

Attention should also be given to a review of the stockpiling policies

of bauxite and/or alumina due to our current overwhelming dependence

on foreign imports. Reference supplemental data for additional details.

4. Leadtimes for titanium mill products currently vary from 45 weeks to 85

weeks. There is no shortage of the raw materials rutile, illmenite,

chlorine. The potential constraints are in the secondary processing

operation of sponge production and conversion. Only three domestic

sources manufacture sponge with the balance supplied by foreign sources,

primarily Japan. Although domestic sponge production has increased 25%

since 1979, and will increase another 16% by 1982, the industry still

must depend on foreign sponge supply to meet demand. Resolution of this

potential might include:

W29-5
4. (Continued)

(a) Opening up of the U.S. stockpile at peaks of high demand combined

with a well -structured replenishment program.

(b) Military procurement policies should be formulated to provide

long-term commitments that would justify additional expansion.

(c) Encourage capital investment in titanium processing facilities

through favorable financial policies.

Reference supplemental data for additional details.

5. Large press capacity is a potential area of concern under certain circumstances, but an even bigger consideration in this area should be the

potential for conservation of materials based on the fabrication of a big (200,000 Ton) press. Specifically, it is probable that under less

than a major increase in aerospace requirements, the current large press

capacity (50,000 Ton) available today is probably sufficient to meet

aerospace needs. This position is strongly held by the major U.S.

forging press companies. However, it is our opinion that significant

savings on material (i.e., titanium, aluminum and steel) as well as machine time, could be achieved with a big press in the 200,000 Ton

range allowing more refined forgings and, therefore, smaller quantities

of forging stock and less machine time and off-fall. Preliminary

analysis indicates that the estimated cost of such a press and associated

support facilities, would cost approximately $200 Million in 1980 dollars,

which could be fully offset by the dollars saved in reduced material and

machine time in one, or the most two, new military aircraft programs,

while potentially providing product improvement in these aircraft by

allowing fly-weight reductions.

The side benefits of such a press would be increased capacity in general

and the safety to our country of an ability to react in a timely manner

in the event of a national emergency. Further, such actions might

significantly improve the U.S. aerospace competitive advantage in the

world market for commercial aircraft. The Government should consider

taking the necessary actions to encourage such expansion and major capital

expenditures, similar to those taken in the early 1950's that produced

the current large press capacity.

6. Milling machine capacity , particularly efficient multi-spindle numericallycontrolled milling machines, are believed to be an aerospace industry

concern. MDC believes that our unique in-house capabilities, combined

with a broad subcontractor base, will be sufficient to handle our needs.

Further, it is our opinion that expanded facilities will be generated,

within the private sector, as demand dictates, particularly if the

Government could establish financial incentives to do so. The major

concern at MDC would be if cobalt and molybdenum alloyed cutters were

not available to allow maximum utilization of these major pieces of

equipment. As such, MDC does not list this as a high priority area

for potential investigation, believing other areas are of more importance

within the parameters of commerces' states goals.

W29-6
7. Many other product forms can trace their potential problems directly

back to the materials discussed herein. Fasteners, ball bearings and

hydraulic fittings are constrained primarily due to a shortage of

titanium and precipitation hardening-type steels, and to a lesser degree

by fabrication capacities. The magnitude and diversity of this area is

not recommended for this investigation.

8. Substitution of materials in existing and new aerospace applications can present substantial problems. Alloy selection is based upon minimizing

weight to achieve desired performance. The highest strength material

consistent with good toughness and corrosion resistance is generally

used. Alternate materials may require resizing of parts to reduce operating stresses. In some cases, this is not possible because of restricted

part envelope based upon design of surrounding structure; where it is

possible, a performance reduction is incurred due to weight increase.

If a major redesign is undertaken, a costly full-scale static of fatigue

test may be necessary.

- Finis -

W29-7
SUPPLEMENT TO ENCLOSURE (1)

OF

MCDONNELL-DOUGLAS CORP

Response To

DEPARTMENT OF COMMERCE

Office of the Secretary

"DEFINITION OF AEROSPACE INDUSTRY NEEDS"

02 February 1981

WLH764-0281-2

W29-8
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Page 3

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NUMBER

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4433

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1977

1978

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W29-26

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1244

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W29-40

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W29-41
CONCEPT PROPOSAL

DCNVER RESEARCH INSTITUTE UNIVERSITY OF DENVER

DENVER. COLORADO S020S

Peter J. Cannon

WASHINGTON REPRESENTATIVE

WASHINGTON D. C. OFFICE LOCAL D. C. PHONE

BOX 34. EOGEWATER. MO 21037 471-1011

Submitted by

Strategic Materials Center

Metallurgy and Materials Science Division

Denver Research Institute

University of Denver

Denver, CO 80208

Dr. Jim D. Mote, Head, Metallurgy

and Materials ISclence

Division

Dr. Dhanesh Chandra, Head,

Strategic Materials Center

25 November 1980

W30
Background

:

Metals such as chromium, cobalt, titanium, nickel, manganese, tungsten

and vanadium are strategic to the U.S. economy and national security, yet

the United States is increasingly dependent upon foreign sources. The high

temperature materials used in the construction application of jet engines,

aircraft and equipment for military and industry are dependent on the supplies

of the above mentioned metals. Most of these critical metals and ores are

imported from many of the African and Eastern Block countries, and due to the

inadequacy of the supply of these materials, reasons for the development of our

own resources are impelling. The reduction or periodic curtailment of the

metal supply from foreign sources, in particular from politically unstable

countries, will make utilization of our low grade domestic sources to extract

metals and recycling scrap metal more important from a contingency point of

view.

The overall objective of this proposed research program is to 1) develop

methods of extraction of strategic materials from low grade non-economic domestic reserves. 2) To evaluate the reserves of the low grade ore of critical

materials and compare to the material requirements. 3) Evaluate the feasibility

of substitution of non-critical materials for strategic materials. 4) Develop

methods for recycling scrap materials to recover key metals.

The Strategic Materials Center (SMC) was organized at the Denver Research

Institute to build a sound technological base for the extraction of critical

metals from low grade domestic ore reserves. SMC is involved in developing

methods for processing ores or low grade reserves to extract strategic metals.

For example, the extraction of chromium from the low grade Stillwater chromite

reserve in Montana and the extraction of nickel and cobalt from low grade,

fine grained complex lateritic ores from California and Oregon has been investigated using the hydrometallurgical approach. Development of extraction

methods is dependent on understanding the association of the valuable metals

W30-1
with various minerals in the ores. Optimizing the extractive metallurgical

parameters is performed based on data obtained from modern analytical instrumentation such as electron microscopy and X-ray analysis that can characterize the feed material and also structural changes in the intermediate and

final products obtained in the various stages of a proposed extraction method.

It is proposed that practical methods, either pyrometallurgical or hydrometallurgical, be developed to extract strategic materials such as chromium,

cobalt, manganese and titanium from domestic reserves in order to maintain a

resource base for either contingency requirements or for future use. Another

aspect will be the evaluation of reserves in this country and improvement of

recycling technology. Details of import dependence are shown in the bar graph

of the attached SMC brochure. The following sections concern some important

strategic metals and their import dependence.

Chromium ; The major use is in the production of stainless steels.

Chromium imparts hardenability , creep and impact resistance to the steels. The

major source of chromium or ferrochromium is from chromite (FeCr204 ) mineral.

The chromium ores are predominantly found in the continent of Africa. The

imports are primarily from South African countries, the Soviet Union and, to a

small extent, from Turkey and Japan. The domestic reserves are found in Montana,

Oregon, California, Washington and Alaska. All the above ores are of a low

grade variety. The extent of the reserve is not fully known; however, estimated

values are 22.5 million tons of chromites.

In addition to the above chromite ores, domestic sources include laterites

from Oregon and California containing up to 1% nickel, up to .8% cobalt, and up

to 2 to 3% chromium. These laterites are currently being utilized to extract

nickel and cobalt only. There is also an excellent possibility of extracting

chromium from laterites. It is proposed that extraction of chromium from

domestic chromites and laterites be investigated.

Cobalt ; The major use of cobalt is in heat and corrosion resistant materials.

W30-2
high strength materials and permanent magnets. Major production of cobalt is

in the form of sulphide ores. The sulphides are predominantly found in Zaire,

Zambia, Finland and Canada and these countries are the largest exporters of

cobalt to the U.S. The other source is laterites containing up to 0.8% cobalt

with known deposits in the U.S. The domestic reserve is principally a low grade

one in Idaho. This reserve is plagued with arsenic inclusion, which poses a

problem in the extraction of the metals. Manganese nodules found on the ocean

floor are an additional resource. It is proposed that methods to extract

cobalt from domestic cobalt reserves, both sulphides and laterites, be further

investigated.

Titanium : The major use of titanium is in structural applications in

the aircraft industry. The major production of titanium is from rutile

( 1102 ) supplied primarily from Australia. The domestic reserves are largely

in the form of Ilmenite (FeTiO^) . It is proposed that a method of separating

iron and titanium be Investigated.

Tungsten ; The major use of tungsten is in high speed cutting tools,

superalloys/and non-ferrous alloys. The major production of tungsten is in

Canada, Mexico, Thailand, Korea, and Bolivia. There are limited resources

in the U.S., mainly in California and Colorado. It is proposed that methods

to beneficiate timgsten ores be further investigated.

In addition to developing methods to extract the above mentioned metals

studies are also proposed to evaluate substitution of strategic materials

such as cobalt, chromium etc. with some non-critical materials in the high

temperature alloy application. Evaluation of the extent of reserve; high and

low grade ores of the above mentioned metals will also be performed. For

example the cobalt reserves in the United States are predominantly found in

Idaho in the form of a sulphide ore. Additional cobalt reserves are also

found in Oregon and California in form of laterlte. The overall ore reserve

will be surveyed and also the possibility of new potential reserves will be

evaluated

.

W30-3
Presentation on Titanium

by Ward W. Minkler

NATIONAL MATERIALS ADVISORY BOARD

SEMI-ANNUAL MEETING

September 3, 1980

REVIEW OF MATERIALS AVAILABILITY ISSUES

Of the metals being considered in this two day session, titanium has the

advantage of being the newest engineering structural material. We have a shorter commitment to our past mistakes. Since 1950, the start of production,

there are three characteristics which make titanium of interest for this assessment of major critical and strategic material availability issues:

1. The industry has exhibited a repetitive pattern of overcapaci ty

,

interrupted by short periods when supply has been temporarily

insufficient to satisfy customer delivery requirements. The industry

is in such a cycle today; since mid-1978 sponge and ingot capacity

limitations throughout the world have been one cause for extended

delivery commitments. (I presume this is the primary reason for

including titanium in this availability study). There is strong

evidence that the industry is now entering a more normal period

where supply will exceed demand and commercial considerations,

selling price rather than delivery commitment, will determine supply

source(a conventional buyer's market appears at hand).

2. The commercial production of titanium metal in a competitive multi

source environment was established in the United States in 1950.

Since then, the U.S. has been the world leader in the manufacture

of titanium metal. Presumably, it is in our national interest to

maintain a strong industry because of its importance as a structural

metal in current and future commercial airplanes and military systems.

3. Finally, unlike many other strategic metals, dependence on foreign ore

sources is not a consideration. The U.S. has sufficient ore and technology to support anticipated critical titanium applications for the

foreseeable future. Rather, the titanium supply will be determined by

the development of sound markets and the ability of the industry to

attract investment for the plants necessary to maintain the most up-todate efficient production base, compared to our foreign competitors.

In 1980, the bulk of U.S. titanium metal is being manufactured by processes

conceived in the 1930's and reduced to commercial practice in the 1950's and

early 1960's.

*Ward W. Minkler is Vice President - TIMET Division, Titanium Metals Corporation

of America.

W31
- 2 -

Titanium Flow Chart

.2 -f lb.

Figure 1

As shown in Figure 1, titanium ore, most generally rutile concentrates,

is reacted with chlorine and carbon to form titanium tetrachloride. Alternate

methods include mixtures of synthetic rutile and ilmenite, the latter extensively available in the United States. After purification, the tetrachloride

is reacted with magnesium to produce titanium sponge and magnesium chloride.

While the bulk of titanium sponge throughout the world is produced by reacting

the tetrachloride with magnesium, sodium is being used in three plants, one

in the U.S., one in the United Kingdom and one in Japan. In most instances,

the magnesium or sodium chloride is recycled with only makeup quantities

of magnesium or sodium, and chlorine required.

The sponge is purified, then mixed with specially prepared scrap and alloy

additions, most frequently aluminum, vanadium, zirconium and molybdenum, then

pressed into compacts. The compacts are vacuum-consumable arc -melted into ingots

weighing from three to ten tons. Wrought products are manufactured from ingot

on conventional shaping equipment such as that used to roll and form steel.

The availability of titanium metal is most frequently equated to sponge

capacity. While equipment used for other metals can melt or shape the titanium,

a sponge plant can only manufacture titanium and paces availability. It is also

the controlling item in determining the cost of a titanium mill product.

One of the characteristics of the titanium sponge plant is the high capital

investment compared to other structural metals. This is due to the complexity

of the metal winning process coupled with the small plant size.

Sponge drives not only availability but also economics relative to other

materials. Ore, melting, rolling and forming are not controlling so long as dramatic demand increases are not required on short notice.

W31-1
-3-

Table I is a summary of 1979 world sponge capacity and includes announced

expansions. By 1981, U.S. sponge capacity will have been expanded 28%, Japanese

capacity 61% and non-communist world capacity 35%. Further sponge installations

are planned and some under construction. These should start producing in 1982-

1984. Currently, there are numerous U.S. and foreign titanium sponge ventures

under study.

Table I.

World Titanium Sponge Supply For Mill Product Production

(1000 lbs)

1979 1980 1981 1982-1984

U.S.

TIMET 25,000 28,000 30,000 32,000+

RMI Co. 14,500 17,000 19,000 19,000

Oremet 4,000 4,500 6,500 7,500

DH Co. - - - ? Total 43,500 49,500 55,500

UK

ICI 5,000 4,000 3,000 - RR Consortium - - - 11,000

European Consortium - - - ?

Japan

Osaka 14,000 20,000 29,000 29,000

Toho 12,000 13,000 19,500 19,500

Total 26,000 33,000 48,000 48,500

Non-communist total 74,500 86,500 100,500

PRC 4,000 6,000 15,000 ? USSR 77,175 92,600 92,600 ?

With one exception, the current expansions are incremental additions to

producing operations(thus substantially lower cost than new greenfield sponge

manufacturing plants). In the U.S., these incremental expansions are the

completion of sponge capacity planned for the late 1960's to support the SST,

B-70 and The YF12A, but left uncompleted due to the severe downturns of the

early 1970's.

This is illustrated in Figure 2. From 1970 to 1978, the U.S. titanium

sponge producers operated at a capacity only in one year, 1974, during a period of intensive inventory building by the aircraft manufacturers.

W31-2
-4-

Figure 2

As shown in Table II, foreign sponge producers have historically supplied

the non-integrated melters with the bulk of their sponge. In 1980, it is

estimated imports may exceed 8,000,000 pounds.

Japan

Table II

Sponge Imports

1972-1980

(1000 lbs)

USSR UK PRC Total

1972 4,580 2,817 325 0 7,722

1973 5,860 3,179 1 .109 0 10,148

1974 5,505 6,897 877 0 13,279

1975 4,638 1 ,416 359 0 6,413

1976 2,647 632 189 0 3,468

W31-3
-5-

Table II (Conf d)

Sponge Imports

1972-1980

(1000 lbs)

Japan USSR UK PRC T6tal

1977 3,417 1,410 489 0 5,316

1978 1,632 1,202 227 0 3,061

1979 4,116 660 2 198 4,976

Est. 1980 6,230 712 89 1,869 8,900

The genesis of the titanium industry was the gas turbine engine and its airframe. As shown in Figure 3, the 1979 military and commercial airplane applications still consumed over 75% of the mill products shipped. While industrial

applications are expanding, we anticipate that, for the next several years,

aerospace will continue to be the backbone of the titanium markets.

Pounds X 10® Titanium Mill Product Shipments

Fiqurc 3

W31-4
- 6 -

The swings in demand have been unusually severe for a capital intense

basic metals business such as titanium. This is illustrated in Figure 4, where

I have attempted to show the percentage change in titanium mill product shipments from year to year during 1964-1980. In Figures 3 and 4, I have plotted

our lastest 1981 forecasts of mill product shipments. With such rapi cT changes

,

planning and operating a titanium venture becomes a challenge. If we have

correctly identified and quantified market requi rements , there will be an excess of sponge capacity relative to consumption in 1931.

40 -

20

S

c - 10

-20

MILL PRODUCT SHIPMENTS

PERCENT CHANGE FROM PREVIOUS YEAR

1964-1981

-30

64 65 66 67 68 69 70 71 72 73

Year

74 75 76 77 78 79 80 81

Figure 4

Since 1964, the U.S. has experienced three periods when buying demand has

caused lead times in excess of consumer's desires, these were in 1966, 1974

and from mid-1978 to mid-1980. For the purposes of studying material availability

issues, I believe it would be helpful to review some factors that were present

in 1974 and 1979-1980 to determine their likelihood of recurrence in the foreseeable future. (In this analysis, I have found Bill Swager's excellent study

"Periodic Materials Scarcity: Our National De Facto Materials Policy", presented

to the Aerospace Technical Council, AIA in April, 1979, to be useful). Mr.

Swager quoted the report of the National Commission on Supplies and Shortages

published in December, 1976, which listed the following causes of shortages in

1973-1974:

W31-5
-7-

* Sharp demand increases

* Limitations on investment in materials processing industry

* A shortage mentality

* Cutbacks by foreign suppliers and price, increases

In 1974 and 1978, the titanium industry was buffeted by all these factors.

Based upon grossly overly optimisitc market forecasts in 1968, excessive sponge

capacity was installed. Thus, the surge capacity was available to absorb sudden

demand increases until 1978. By 1978, the growth of the industrial uses of

titanium, coupled with unusually high purchases of commercial airplanes, raised

the market to new levels. While the current sponge expansion appears consistant

with forecasted markets, the surge capacity of the 1970's no longer exists.

Limitations on investment will influence future titanium expansion. Despite

uncertain profitability and high capital investment of the titanium business,

incremental additional sponge capacity has been installed reasonably quickly

during that shortage period. This, coupled with a following downturn in sales,

has satisfied customer availability and commercial demands.

Long periods of idle capital investment have taken their toll of earnings

records that would not attract knowledgeable investors. Now the U.S. industry

is not faced with decisions on new greenfield capacity. The day is not far off,

however, when greenfield plants will be necessary if the U.S. industry is to

continue to grow. Financial risks and return potential relative to historical

widely fluctuating prices and market demand will be closely assessed. The normal

condition in the titanium industry has been overcapacity. This has led to

product prices insufficient to justify new capacity. Prior to past incremental

expansions, the titanium market demand has been strong; producers could raise

prices sufficiently to justify rapid incremental expansion.

However, the lead time for new greenfield capacity is substantially longer,

three to five years, and much more costly. Attracting private investment in

view of historical overexpansion and the cyclical market history of titanium

will be a challenge; a problem that this forum might consider, particularly if

the anticipated increased demand is based upon programs considered to be in the

national interest.

It appears the shortage mentality has influenced overbuying in 1974 and in

the present cycle. Because of the limited number of suppliers, the small size

of the industry and the engineering necessity of titanium as an aerospace

structural material, buyers are obviously sensitive to availability. This leads

to aggressive procurement practices and inventory accumulation in excess of that

actually needed to support true consumption, when a potential tight supply is

perceived. The abnormal inventory buildup in 1974 then caused severe reduction

in titanium purchases in 1975 and 1976. There is mounting evidence this has

occurred in 1979 and 1980 and is one of the reasons for the forecasted downturn

in titanium mill product shipments in 1981.

W31-6
-8 -

Cutbacks and price increases by foreign sponge suppliers were, to some extent, a factor in the most recent titanium shortage. Until recently, foreign

sponge was available at prices lower than domestic sponge; at times lower than

domestic costs. This discouraged investment in new sponge capacity and encouraged

the growth of the non-integrated domestic ingot producers with modest capital

investment who were willingly dependent on the lower cost foreign sponge.

However, in 1978, the foreign sponge producer was faced with a new situation.

Energy costs had increased. Demand for titanium external to the United States,

particularly in the industrial markets for products more profitable than sponge,

increased; 1978 and 1979 pruchase contracts were made based upon the depressed

markets in 1976 and 1977. The Japanese producers diverted their production to

other markets. The USSR ceased exporting, apparently for unrelated reasons. Foreign sponge exports to the U.S. fell dramatically during a period of high

market demand.

In 1980, the non-integrated melter, representing approximately 25% of the

U.S. ingot capacity will import a record quantity of sponge from Japanese' sponge

producers currently at prices double that of 1978. This expanded foreign capacity

will again influence U.S. producers' sponge expansion plans, particularly if a strong buyer's market develops breeding historical price degredation.

In concluding, I would like to identify some of the issues facing the

titanium industry which will affect the availability of titanium from U.S.

producers, as well as the strength of our industry relative to our overseas

competitors.

1. By next year, the domestic industry will have sufficient sponge

capability to provide 48 million pounds of mill products. With

present ingot melting capacity and expansions now underway, the

integrated and non-integrated domestic melters will have the

ability to ship 65 to 70 million pounds of mill products, 60%

higher than last record year, 1979. With foreign sponge expansions,

the titanium industry may be faced with overcapacity for the near term rather than under supply, with the attendant commercial

problems.

2. As I stated previously, the world industry has been highly cyclical.

Except for short periods of undercapacity, profitability of sponge

producers has been poor. Despite this, the U.S. industry has res- ponded to increased demand for overexpanding. These shortage

periods resulted in short term profits used for these incremental

expansion investments. Non-market related factors such as price

controls, suspension of tariffs that encourage a temporary surge

of foreign imports, or subsidies by the U.S. users to new foreign

sponge producers, will stunt future domestic incremental expansions.

W31-7
-9-

3. Despite tariff protection, the uncertain commercial priorities of

foreign sponge producers in the United States market has made

domestic sponge producers wary. In view of the foreign expansion

now underway, or being discussed, the environment is ripe for

another such cycle.

4. The bulk of the U.S. sponge plants were based upon process designs

of the 1950's and 1960's. Foreign sponge plants have been more

recently installed and could be expected to have operating cost

advantages. The product quality of these foreign sponge manufacturers is preferable to the non-integrated ingot manufacturers. At

some time in the future, assuming the demand for titanium continues

to grow at the historic rate, 7% per year, new greenfield plants

will be required. Do we duplicate magnesium or sodium reduction

cycles or do we commit to a more promising but commercially untested

method, such as electrowinning? These decisions will be required

soon, particularly if we assume the three to five year period

normally required to engineer and construct a new reduction plant.

This choice can determine the competitiveness of the U.S. industry

for the latter part of this decade and certainly well into the

90's.

5. If it is determined to be in the national interest to expand

titanium production beyond that which valid demand forecasts 'would

dictate, some form of government financial encouragement would be

considered appropriate. Underlying this decision could be a temporary increase in titanium required for defense related projects

or for stockpile purchases. This encouragement could involve:

a. Multi-year material commitments for defense-related contracts

that would allow for appropriate cancellation reimbursement to

the titanium producer for cost of capital equipment, inventory

accumulation and loss of revenue, as a result of the cancellation.

b. An indexed stockpile procurement program which contains multiyear purchase contracts to fill stockpile objectives. Purchases

would be made when domestic sponge demand fell below a pre-established percentage of domestic capacity and be suspended when

demand exceeded these levels. One of the factors weighted in

contract awards could be encouragement to construct new or upgraded manufacturing plants.

The future of the U.S. titanium industry will depend on the confidence of

producers and investors in an acceptable return on investments, titanium's

competitiveness as an engineering metal and supportive government policies.

Unlike many other strategic metals, the selectivity of nature will not be a factor.

W31-8
February 23, 1981

AMrmCAM

INSIITOTC Of

AtnONAUliCS AND

ASTRONAUT tCS

Reid June

1603 121st Ave SE

Bellevue, WA 98105

Dr. John B. V/achtman, Jr. National Bureau of Standards

Materials Building B308

Washington, D.C. 2023A

Reference: Federal Register, Vol. 46, No. 61, Friday, January 9,

1981, pp 2375 - 2376.

Dear Dr. Wachtman:

The attached letter, written b> a member of the Materials Technical

Committee, American Institute of Aeronautics and Astronautics, is submitted

relative to your study of aerospace industry materials needs.

Sincerely,

Reid R. June, Chairman

Ivla^rials Technical Committee

Attachment

Letter by Dr. Hallse

cc: Johan Benson

American Inst, of Aeronautics and Astronautics

1625 Eye Street

Washington DC 20006

W32
GENERAL DYNAMICS

Pomona Division

P.O.Box 2507, Pomona, California 91766 • 714-629-5111

cp

6-114-002A2

13 February 1981

Dr. Reid R. June

1603 121st S.E.

Bellevue, Washington 98005

Dear Reid:

The following comments are offered in response to the Department of

Commerce Workshop on Materials held on February 10 & 11.

It is suggested that the impact of import disruptions of the following

four metal ores be examined:

1. Cobalt

2. Chromium

3. Manganese

A. Beryllium

The supply disruptions should be postulated for the following time periods:

1 . 3 months

2. 10 months

3. 30 months

A . 100 months

Next assume that the disruptions reduce our imports by the following quanities,

as compared to the average level for the period 1978-1980:

1. 25% reduction

2. 50% reduction

3. 75% reduction

A. 100% reduction

It is suggested that the following two parallel approaches be studied as possible methods of minimizing the shortage impact without involving a cumbersome

government allocation agency.

I

DOD would instruct the prime contractors for critical programs to stockpile

sufficient ore, ingots, or slabs of designated critical metals, on their property,

to satisfy 125% of their contractural commitments for the four time periods specified

above. The carrying charges (interest), additional facilities and security
GENERAL DYNAMICS

Pomona Division

6-114-002A2

13 February 1981

Page 2

would be valid charges against the contract(s). In time of shortage the DOD

primes would release their holdings, as required, on a custom toll basis to the

metal producers for the required products. Any prime contractor who fails to

provide himself with a sufficient stockpile would be forced to purchase the ore or metal on the open market without reimbursement from DOD.

II

Develop in the laboratory, and in pilot plant quantities, alloys and processes

that are substantially free of the critical metals problem. This would be a 5 to

10 year program adequately funded by DOD. At the end of the 10 year program DOD

would subsidize a metal industry base sufficient to produce, say, 25% of the

required critical metal substitutes. This subsidy would be similiar in goal,

but not necessarily in form, to the present agriculture maritime, and synthetic

fuel programs.

The above comments are addressed to import shortages caused by political

turmoil or hastily, military action where the U.S. may or may not be directly

involved and foreign cartel actions. Shortages may also result from a lack of

national production capacity, environmental and safety regulations and local

and state ordinances. While shortages, regardless of cause, are very real in

that needed hardware is delivered late and beyond budget; the case of import

disruptions is of critical national import and not necessarily solvable by U.S.

diplomatic, economic or military pressures. The latter shortage problems such

as production capacity, etc result from domestic internal policies and therefore

solvable by changing these policies and therefore should not be lumped or treated

in the same manner as the import disruption problems.

Incidentally, Colonel Jim McCormack of the Air Force, who is currently

stationed in Washington is studying the effect of shortages on tactical missile

systems. He is planning to visit me in late March to discuss such shortages

on our product lines here. Anything I can learn about his study I will convey

to you in Atlanta in April.

Sincerely

R. L. Hallse

W32-2
February 18 1981

Re1d June

1603 121st Ave SE

Bellevue. WA 98105

AMrmcAN

INS1ITUTE OF AERONAUT ICS AND

astronautics

Dr. John B. Wachtman, Jr. National Bureau of Standards

Materials Building B308

Washington, D.C. 20234

Reference: Federal Register, vol. 46, no. 61, Friday, January 9,

1981, pp 2375 - 2376.

Dear Dr. Wachtman:

The attached letter, written by a member of the Materials Technical

Committee, American Institute of Aeronautics and Astronautics,

is submitted relative to your study of aerospace industry materials

needs.

Sincerely,

\/VC^

Reid^y June, Chairman

Maten^ls Technical

CommTttee

Attachment

Letter by Dr. Crossley

W33
10 February 1981

MISSILES

& SPACE

COMPANY.

INC.

Dr. Reid June, 41-37

Boeing Military Airplane Company

P. 0. Box 3707

Seattle, Washington 98124

Dear Dr. June:

Titanium Forgings Concerns

A single act can simultaneously contribute to several goals related to the use of

titanium forgings. Specifically, utilize new alloys which make it possible to go to

net shape or near net shape technologies. Since current forging practices applied to

the most used titanium alloy, Ti-6A1-4V are characterized by buy-to-fly weight ratios

varying from 4:1 to as high as 50:1, there is the prospect of increasing the forging

billet production capacity of the titanium industry (in terms of fly away weight) by

at least a factor or two, and perhaps as much as a factor of four, by doing this.

The net shape/near net shape technology that is being given the most attention at

the present time is powder metallurgy. However, preliminary test results indicate

that precision casting and net shape or near net shape isothermal forging or hot die

forging offer greater promise. The latter processes married to new alloys provide

under some loading conditions performance equal or superior to wrought, solution heat

treated and aged Ti-6A1-4V. The new alloys are: Ti-10V-2Fe-3Al Transage 134

(Ti-2Al-12V-2Sn-6Zr) and Transage 175 (Ti-2.5Al-13V-7Sn-2Zr) . Ti-10V-2Fe-3Al can be

isothermal ly forged at temperatures as low as 1400°F (760OC) and the Transage alloys

can be isothermally forged at temperatures as low as 1100°F (600°C). An isothermal

forging temperature of 1400°F permits the use of relatively cheap, iron-base, hot work,

tool steels for dies. Cast-to-size bars of Transage 175 alloys have demonstrated

fatigue resistance superior to that of wrought, solution treated and aged Ti-6A1-4V

under the following test conditions: (1) smooth bar axial, low cycle fatigue (10^ cycles),

R = 0, at 500°F (260OC); and smooth and notched bar high cycle fatigue axial (lO^ cycles),

R = -1.0, at 250°F (120°C). Transage 175 was approximately equal in fatigue to wrought,

solution treated and aged Ti-6A1-4V in axial, low cycle fatigue (10^ cycles), R = 0,

at 250°F. Obviously, these technologies will reduce costs of titanium components as well as conserve material and energy.

The TIMET Division of Titanium Metals Corporation of America developed the Ti-10V-2Fe-3Al

alloy and is actively promoting it. The Transage alloys are a proprietary Lockheed

Missile & Space Company development; therefore, they may be unknown to you. To

acquaint you with their properties and characteristics, several papers are enclosed.

Lockheed wishes to license the Transage alloys for general use.

W33-1

nn LOCKHEED WAY® SUNNYVALE, CALIFORNIA * 9 4086
Dr. Reid June 10 February 1981

Any plans on the part of the Navy to produce titanium submarines should be very

carefully coordinated with the titanium industry. Such use could impact supply

in a catastrophic way unless planning and scale up of capacity proceeds building

by several years. Each Soviet Alfa submarine hull reportedly uses 6000 tons of

titanium -- about one third of the 1978 US mill shipments of titanium.

Sincerely,

Frank A. Crossley

Consulting Engineer

Orgn. 81-04/Bldg. 154

FAC/rl

cc: FAC file

Attachments

W33-2
February 26, 1981

1603 121st Ave SE

Bellevue, WA 98105

inshtuu or

AtRO'.'A'jiics and

astronaltiics

Dr. John B. Wachtman, Jr. National Bureau of Standards

Materials Building B308

Washington, D.C. 20234

Reference; Federal Register, Vol. 46, No. 61, Friday, January 9,

1981, pp 2375 - 2376.

Dear Dr. Wachtman:

The attached information, received from members of the Materials Technical

Committee, American Institute of Aeronautics and Astronautics, is submitted

relative to your study of aerospace industry materials needs.

Sincerely,

Reid f^June, Chairman

Materials Technical Committee

Attachment

NASA TM Abstract

Brazel Letter

cc; Johan Benson

American Inst, of Aeronautics and Astronautics

1625 Eye Street

Washington DC 20006

W34
GENERAL ELECTRIC

RE-ENTRY

SYSTEMS

GENERAL ELECTRIC COMPANY 3198 CHESTNUT STREET DIVISION

PHILADELPHIA, PENNSYLVANIA 19101, Phone (215) 823-1000

19 February 1981

Dr. Reid R. June

Mail Station 41-37

Chairman, AIAA Materials Technical Comm.

Boeing Military Airplane Company

P.O. Box 3707

Seattle, WA 98124

• Dear Reid:

In response to your letter of February 4, on shortages of aerospace

strategic materials, I wish to point out the U.S.'s position in regard to

supply of high purity silica fibers.

These fibers, known as "fused quartz fibers" are used in the current

S.O.A. hardened antenna window composite materials AS-3DX (Ford Aeronutronic)

and ADL-4D6 (GE-RSD). High purity fused silica fibers are also used in premium quality strategic missile TPS (heatshield) material components.

There only two sources of this fiber in the U.S., both of them re- sellers of fiber imported from France. The domestic suppliers are J.P. Stevens,

Inc. ( "Astroquartz") and AAI Products, Inc. ("Al phaquartz") . The silica fiber comes in the form of roving, on spools and is produced in France. The French

in turn get their raw high purity quartz from Brazil (the country in South

America, not Jim Braze! of GE-RSD, Philadelphia).

There have been attempts to establish a U.S. source of this truly

critical material. GE/RSD set up to produce about ten years ago but could

not penetrate the already established market for J.P. Steven's Astroquartz

(specs, previous arrangements, price, whatever).

I hope that this brief review of the situation is of interest to and use for you. I have kept it unclassified, but as the need develops, additional

detail could be supplied. Please call me if you have questions.

Sincerely

/am

cc: P. Gorsuch/GE-RSD

James P. Brazel , Manager

Materials Characterization Lab.

Member, AIAA Materials Technical Committee

(215) 823-2306

J. Dignam/AMMRC

W34-1
CANNON-MUSKEGON corporation

BOX 506 MUSKEGON. MICHIGAN 49443 616/7551681 - TWX 510/394/4620

16 March 1981

Mr. Russell Babcock

Bear Creek Mining Company

7821 E. Sprague Avenue

Spokane, WA 99213

Subject: Critical Materials Needs in the

Aerospace Industry Workshop

Dear Mr. Babcock:

First, my apologies at not attending the recent Critical Materials Workshop

which you chaired in Washington. Unfortunately, the notice of this meeting

was received rather late and I had overseas travel plans already formulated

which could not be changed. I will, however, comment on the actions and

recommendations which resulted from the Workshop.

Private Stockpiles

The entire idea of private stockpiling of strategic raw materials is

totally unrealistic in economic concept. There are several reasons

for my strong expression in this regard, and I'm particularly shocked

and disappointed that you, as a representative of private industry

would even consider the initiation of Federal Government involvement

and audit of your firtn's and others' inventories.

If you are to involve the Government into raw material inventory, this

would also lead to finished goods inventory as raw material is a significant portion. As a mining company, you are perhaps only concerned

with finished goods; however, a using company, such as an alloy producer,

will have raw material units in both raw material and finished goods.

This could result in serious government interference and involvement

in the operation of a company.

The Federal bureaucracy has demonstrated time and again its ability

for managing and operating enterprise. The Post Office and the Energy

Departments are two examples which immediately come to mind. The

administration of the strategic Stockpile is another. The Government

has a proven record for buying low and selling high as well as providing

great impact to the critical supply and demand balance of the marketplace. Many of the recent metal shortages can be traced directly to

erratic Stockpile manipulat ions ; specifically, cobalt, molybdenum,

tantalum, columbium, tungsten, and others.

Firms which are in the business of producing critical high temperature

superalloys, such as Cannon-Muskegon, are strongly raw material cost

oriented, with low value added in the finished product. Approximately

707o of the product resale price is raw material value. It is not viable,

economically, for such a firm to maintain any substantial raw material

W35
CANNON-MUSKEGON CORPORATION

16 March 1981

Page 2 Mr. Russell Babcock

Bear Creek Mining Company

inventory under such a basis. No tax incentive program could be en- visioned which would or could accommodate such a program at the alloy

producer level.

So, the next step is the basic metallic element producer. In this case

one must consider foreign producers such as Inco (Canada), Roan Consolidated Mines (Zambia), Le Nickel (France), Outokumpu Oy (Finland), etc.

How interested do you think these major foreign-based firms will be in

American tax incentives? Further, no material producer likes stockpiles.

It always represents a significant weight overhanging a critically balanced market which could (and has) have a major impact at the marketplace

The next direction is more toward the finished product. The bulk of the

buyers of specialty high temperature alloys are either very large companies, such as TRW or Howmet, or very small (less than 100 employees),

privately-held, owner/manager companies. Such a program would completely

isolate the many small companies from participating due to lack of financial ability and working capital constraints. Also, small entrepreneurial companies are generally more possessed of personal pride than larger

firms and would be expected to reject such Federal involvement and

intervention even more vehemently than I am doing.

The prime OEM producers of the product are the next step in the chain:

the producers of the gas turbine engine (in the case of high temperature

superalloys). These are usually large companies with significant financial strength, i.e. General Motors (Allison), Signal Oil (Garrett),

United Technology (Pratt & Whitney), General Electric, Avco Lycoming, etc

Such firms have the financial strength, some would claim, to maintain

strategic stockpiles (although they may argue this point). The primary

fault in this scheme, beyond the financial, is technological in nature.

By the establishment of private raw material stockpile levels with tax

incentives, the financial directors will tend to dictate alloy selection

and ultimately stymie technological innovation.

Role of Government

There is one important aspect relative to the role and intent of government which we should not lose sight of. The primary function of any

government is to provide for military defense. This is the original

basis and purpose of central government. Unfortunately, government tries

to be all things to all people and has become pervasive in the life of

its citizens, extending itself beyond its original intent and purpose.

Strategic critical materials stockpiles are, in my view, part of the

military strength of the country, and government should be required to

- fulfill its responsibility. However, if government sidesteps its military defense and related ancillary roles, it will then become involved

in areas which are not governmental functions. My concern is the further

W35-1
CANNON-MUSKEGON CORPORATION

Mr. Russell Babcock 16 March 1981

Bear Creek Mining Company Page 3

involvement of government in private industry and the free market economic system, specifically:

inventory control of materials

finished goods audit

price controls of raw materials

profit controls

Government is necessary and important to the continued success of the

Country. But, let us all remember what made the Country successful...

the economic system of free enterprise and the free market.

Specific Recommendations

My comments are not meant to be negative in character, but constructive.

There are several positive steps which can be taken by Government and

the Federal Preparedness Agency. These suggestions can provide strong

constructive influence for the Nation's preparedness and provide useful

high quality raw materials for emergency wartime application. My

suggestions are as follows;

1. Reaffirm the intent and purpose of the U.S. Stockpile to meet the

needs of the "national defense only and is not to be used for

economic or budgetary purposes."

2. Provide for a three (3) year emergency requirement. At the present

time, this indicates some materials may be in surplus inventory,

specifically cobalt, tungsten, and others. The stated goal of over

85 million pounds of cobalt represents about eight (8) years of

total U.S. industry usage based upon current consumption.

3. Establish an on-going program which will annually upgrade 10%

of the present stockpile to the highest quality level required by

emergency industry critical applications. By this means at least

10% of the material would be usable "instantly" in an emergency.

After ten (10) years, the oldest inventory will be of a quality

standard only ten (10) years old. The quality level should be

high rather than low. The product can always be downgraded in an emergency, but it is not possible to "instantly" upgrade the

material

,

4. Quantitatively analyze the existing stockpile materials accurately

for the known deleterious trace elements which may be present.

The results will determine the acceptability for refining the existing stockpile inventory or replacement with current high grade

material. Specific elements of concern in cobalt, for example, include

Pb As Cd Hg

Bi Se Zn Ag

Sb Th S Si

W35-2
CANNON-MUSKEGON CORPORATION

Mr. Russell Babcock

Bear Creek Mining Company

16 March 1981

Page 4

5. Encourage domestic development of mining capacity, providing the

product and process can be economically justified by the marketplace without government economic guarantees.

6. Do not attempt to use the Federal Preparedness Agency or the. Stock

pile for economic price control and market regulation/manipulation

The free market will do this far more efficiently and effectively.

I hope these comments are helpful. Please call if further clarification

is needed.

cc; Dr. Allen Gray, American Society for Metals

Mr. James Owens, U.S. Department of Commerce

Mr. Richard P. Seelig, Meta-Tech

Honorable, James D. Santini, U.S. House of Representatives

Honorable Carl Levin, U.S. Senate

Honorable Guy VanderJagt, U.S. House of Representatives

Honorable Don Fuqua, U.S. House of Representatives

Sincerely yours.

RES/ jm

W35-3

LETTER

OF

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Ueporc

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entitled:

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U.S.

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FOREIGN

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Report

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the

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entitled;

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U'.S.

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Oct.

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32.
W36-33!

Source:

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Congress

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the

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States,

by

the

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General

of

the

United

States,

entitled:

"The

U.S.

Mining

and

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Industry!

An

Analysis

of

Trends

and

Implications,"

Oct.

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197

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W36-35

ID-flO-04,

P*

A^i-45.
U.S.

POLICY

OR

CONDITIONS

FOREIGN

GOVERNMENTS

POLICY

OR

CONDITIONS

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W36-36

Source:

Report

to

the

Congress

of

the

United

States,

by

the

Coaptroller

General

of

the

United

States,

entitladt

"The

U.S.

Mining

and

Mineral-Processing

Industry:

An

Analysis

of

Trends

and

lapllcstions,"

Oot*

31,

197S

ID-OO-OA,

P»

A6-A7.
W36-37

Source:

Report

Co

the

Congress

of

the

United

States,

by

the

Comptroller

General

of

the

United

States,

entitled:

"The

U.S.

Mining

and

Hineral-Procesalng

Industry:

An

Analysis

of

Trends

and

Implications,"

Oct*

31,

197

II)-80-0/i,

26-20.
Columbia University in the City of New York New York,N. Y. 10027

HENRY KRUMB SCHOOL OF MINES Seeley W. Mudd Building

26 February 1981

Dr. John B. Wachtman, Jr., Director

Center for Materials Science

National Bureau of Standards

Washington, DC 20234

Dear Dr. Wachtman:

We appreciate the invitation to attend and participate in the Workshop

on "Critical Materials Needs in the Aerospace Industry." My presentation pivoted about the enclosed paper on "Cobalt Availability and

Superalloys" and our very recent progress report to NASA on research

on "Understanding the Role of Cobalt in Nickel-Base Superalloys."

These documents are attached. Please use the information as you see

fit. Hov/ever, the data in the progress report are, of course, of a preliminary nature and should be treated accordingly. I also take the

liberty of enclosing a copy of the "NASA's Activity in the Conservation

of Strategic Aerospace Materials" paper by Mr. Joe Stevens, which dis- cusses the NASA-contemplated COSAM (Conservation of Strategic Aerospace

Materials) program. In what follows Robert Jarrett, my graduate student,

and I wish to convey to you our thoughts on the issues that were raised

in the Workshop.

We agree with the Workshop conclusions that Ni , Fe, A1 and Mo are basically available for strategic applications. Ti, although available,

can be in periodic short supply due to capacity problems. W is over- stockpiled, its availability enhanced by recent domestic discoveries.

Certainly Co, Cr, Ta and Nb can be considered to be strategic elements

with critical supply problems.

We classify Ta a rare element, since data show that its proven reserves,

including old tin slags, are similar in magnitude to those of Ag. In

addition, the current plans of the major engine manufacturers for the

use of high Ta containing nickel -base superalloys may further aggravate

the supply situation in the near future. Therefore, the Ta supply, demand and pricing situation should be critically studied as soon as possible as a first step toward assessing the types of technical R&D programs

necessary for alleviating U.S. dependence for Ta.

We, like you, find the Co supply to be non-diverse, non-secure and non- elastic. The inelasticity arises from Co's by-product status vis-a-vis

Ni or Cu. Superalloys are the major (plurality) host for Co use in this

country. We strongly believe that the need for the amounts of Co used

in superalloys has never been proven. Accordingly, we support all actions

that strive to understand the role of Co in order to determine the nec- essary levels of Co needed for specific applications in hot sections of

engines. Further, we urge that the Co remaining in the U.S. Stockpile

be assessed with respect to its suitability for use in the purity-deW37
Dr. John B. Wachtman, Jr. - 2 - 26 February 1981

manding superalloys.

Like Co, Cr has geopolitical problems. We do not believe that Cr and

its role can be substituted for in the engine alloys. Please be aware

that the Cr amounts in most superalloys are already at minimum levels.

Also, engine alloys are not major consumers of Cr. In times of national

emergency, Cr could be diverted for strategic uses. The form of the Cr

in the U.S. Stockpile should also be assessed with respect to usability

in superalloys. High strength (high performance) superalloys generally

cannot use Ferrochromium, for example.

We have no comments on Nb, except that it may have to serve as a substitute for Ta in the current Ta-bearing alloys.

Finally, we urge your Committee to consider the following general issues

in your deliberations on designing the guidelines for a National Mineral

Pol icy:

1. What role should the Federal Government and its various appropriate agencies play? For example, we know that President Reagan favors

non-involvement by the Federal Government. However, it must be noted

that substantial conservation of, say, a critical element through substitution can occur only if the science and technology for said substitution is shared by the manufacturers. Government can encourage this

sharing by funding key elements of the necessary programs and by

enjoining and coordinating the participation of different segments of

industry. Government research institutions and universities. In contrast.

Government non-involvement could result in a proprietary stance toward

the technology by a small segment of the industry. Another example is

scrap tracking, reclamation and recycling. If the Government does not

impose some regulations, we believe that the industries will practice

this segment of conservation only when the prices of the elements involved are on the peak side of the price cycles. In other words the

industries will follow conservation practices with respect to scrap

when the metal costs are high and will be lax about them when the prices

are temporarily in decline.

2. What role stockpiles? We believe that the stockpile issue

should be re-examined not only with respect to how much would be nec- essary to weather a crisis, but also to its role in stabilizing prices

in periods of fluctuating supply and demand and to its role in encouraging long-term conservation and substitution. For example, a large

purchase of Ta by the U.S. at this time could be most unsettling for

Ta availability. The sudden large sale of W from the stockpile could

result in much lower W prices in the short term and could, in turn,

result in the reapplication of W in alloys that had already substituted

Mo for W.

'3. What role industries? Unfortunately we have to believe that

industrial ethics are motivated by the yearly "bottom line." We do

not expect industries to fund long-term research on a sustained basis.

Nor do we foresee industries consistently practicing conservation measures without Government insistence through appropriate regulations.

W37-1
Dr. John B. Wachtman, Jr. - 3

- 26 February 1981

4. We urge you to study the results of the Air Force and NASA

Assessments on Strategic Elements which took place during the past two

years.

Sincerely,

John K. Tien

Professor

COLUMBIA UNIVERSITY

JKT/s

Enclosures

Cc: Dr. Bruce Steiner

W37-2
MERICAN

.'INING

CONGRESS

-r^S'DED '897 SUITE 300

•920 N STREET NW

A'ASHINGTON DC 20036

202/861-2800

TWX 710*822*0126

Officers Chairman'

Charles F. Barber

I 'ice Chairman and Chairman,

Finance Comminee:

Cnarles F. Fogarrv

1 loe Chairmen' John C. Duncan

John A. Love

RaJph E. Baiies George B. Munroe

Pierre Gousseland Da\id M Roderick NT. Camkna

Presideni:

J. Alim Overton, Jr.

Seareiain' and Treasuro': Henr> 1. Dworshak

Directors

C.J. Poner, Indiana, Pa

,\.T Canuoa, Greenwich "George B. Munroe. Nev York

Robert H. Allen. Houston

Sionie Barker, Jr., Lexington, Ky. P .Malozemoff, Nesv York

"Charles F. Barber, New York

Elton Ho>i III, Cleveland Oies Bennen, Jr., Cleveland "John C. Duncan, New York

"Charles F. Fogarty, Stamford "John A. Love, Dmver

Robert W. Hutton, Greenwich

Rjchard A. Lenon, Northbrook, 111.

J. E Yates. Fhnsburgh

E. B. Leiscnnng, Jr., Philadelphia George E. .Atwood, Tucson

" Ralph E. Bailey, Stamford

Paul V>'. Douglas, New York

F. C. Kroft, Jr., New York

K. .E. McElhanan, Pinsburgh John J. [>wyer, Cleveland Samuel K. ^vil, Cleveland Norman J. Travis, Los Angeles James W, Wilcock, Pittsburgh Thomas A, Holmes, Woodcliff Lake, N.j.

• Pierre GoussHand, Greenwich

Neis Vi'. Stalhetm, Salt Lake City .A.M. Wilson, San Francisco Robert H. Quenon, Su Louis Ralph F. Cox. Dmver

Thomas D. Barrow, Stamford

Frank A. McPherson, Oklahoma City W.A. Griffith, Wallace, Id. Robert F. Anderson, Cleveland "Calxon A. Campbell. Jr., Chicago

Harry M. Conger. San Francisco Hugh W. Evans, Chicago Roben M McCann, Bethlehmn

Rjchard G. Miller, Jr., Chicago

Vi'aiier E Ousterman. Jr., Oakland

"David M. Rodcnck. Pittsburgh

Vi'dliam M. Troutman, Cleveland Richmond B. Galbreaih, Tulsa tRavTnond E. Salvan. Ft, Lauderdale vHcrben C. Jackson. Cleveland

+ ian MacGregor, Greenwich

" Execubve Committee

tHonorarv

March 9, 1981

Mr. James Owens

Director

Office of Basic

U. S. Department

Room 4845

Washington, D. C. 20230

Dear Jim:

Enclosed for the record is a final edited

copy of the remarks David Swan, Vice President

of the Kennecott Corporation, made on behalf

of the American Mining Congress before the

workshop sponsored by the Commerce Department

on "Critical Materials Needs of the Aerospace

Industry, " on February 9 at the National

Bureau of Standards, Gaithersburg, Maryland.

The American Mining Congress is grateful

that we had an opportunity to participate in

the Workshop. Please let us know’' how we can be

of further assistance at any time.

cc : ^ David Swan

W38
DEPARTMENT OF COMMERCE WORKSHOP

ON

CRITICAL MATERIAL NEEDS OF THE AEROSPACE INDUSTRY

February 9-10, 1981

Gaithersburg, Maryland

COMMENTS

My comments are on behalf of the American Mining Congress,

a trade association representing more than 200 American companies

involved in the minerals industries.

In dealing with questions of supply of critical materials,

I would like to propose a methodology for identifying and

characterising critical materials issues, particularly those

involving interaction of the public and private sectors and which

views those issues in an international framework.

In developing this, I would suggest we visualize supplying

raw materials as a four (4) step process, consisting of;

- discovery of mineral resources;

- development of ore bodies into mines;

- mining and benef iciat ion ; and finally

- extraction of desired material in sufficiently

pure form to permit subsequent fabrication

into useful articles.

For those mineral resources which the United States has

adequate competitive grade reserves, the entire process can and

is carried out domestically. Imports and exports at any stage

of the process become almost purely economic decisions based on

such considerations as freight costs, location of facilities and

Short-run market conditions. Even for such minerals, however.

W38-1

/ imposit ion . .

.
Dept . of Commerce

^Vorkshop 2/9/81

- 2 -

imposition of unilateral U.S. policies can significantly and

adversely alter the competitiveness of the U.S. mining industry

in the international marketplace.

Unfortunately, this desirable state of affairs does not exist

with many minerals, therefore, the interface between the U.S.

industry consumer and offshore supplier is moved towards the

fabrication/end use part of the process. From a policy point of

view, the consuming country has a strong incentive to purchase

supplies of the material as early in the cycle as possible, i.e.,

as ores and concentrates rather than alloys or metals. Conversely, the raw material owner has an equally strong incentive

towards integration toward end uses as far as possible. At this

stage, various government policies come into play, designed to

maximize the self-interests of the producing and consuming

countries. Generally speaking, such arrangements are considered

to be a part of trade policy development and are aimed at

directly supporting the mineral policy goals of sovereign nations.

Inevitably, however, other national policies also impinge

on the location of the interface, but less directly. These

include tax policies, environmental health and safety policies,

employment and labor policies, energy policies, etc.

W38-2

/In the
Dept, of Commerce

Workshop 2IQIS\ -3-

In the more advanced countries, very often application of

these types of policies have a larger impact on mineral availability than do trade policies and it is this area which I propose that we concentrate on. In order to analyze the economic

impact of these policies, it is necessary to identify the policy

asymmetries between the U.S. and producing countries and to

determine whether these inhibit or enhance the availability of

a specific mineral resource.

I have extracted a number of these examples from the excellent GAO report, ’’The U.S. Mining and Mineral-Processing

Industry: An Analysis of Trends and Implications:" to illustrate

how they impact' the avail*abiTity "ot resourcers- in • the real world.

In its testim.ony in support of the National Materials

and Minerals R&D Act to Congress, the American Mining Congress

recommended that specific responsibility for identifying these

policy asymmetries be assigned in the President's Office with

the requirement that policy changes be proposed which would

support the national objectives of assuring adequate supplies

of critical raw materials.

I would suggest that our examination of critical resource

needs for the aerospace industry follow this method of analysis.

This conference can provide an important input by contributing

useful data to carry out the charges of the Congress in enacting

the National Materials & Minerals Policy Research & Development

W38-3
RTTll Cbrnffony

D.M. STROLLO

VICE PRESIDENT - MARKETING

P. O BOX 269

1000 WARREN AVENUE

NILES. OHIO 44446

216/652-9951 TWX 810-436-2600

March 3, 1981

Dr. John B. Wachtman, Jr.

National Bureau of Standards

Materials Building B308

Washington, D.C. 20234

Dear Dr. Wachtman:

Attached is essentially the transcript of my comments presented during the

Department of Commerce Workshop. We trust these comments will be incorporated

into the Workshop's recommendations.

Should you have any questions concerning any of the information contained therein,

please feel free to contact me.

Very truly yours

attachment

W39
RMI COMPANY COMMENTS

U.S. DEPARTMENT OF COMMERCE WORKSHOP

February 9, 1981

RMI Company is an integrated producer of titanium mill products, with

sponge facilities in Ashtabula, Ohio, ingot and mill product facilities

in Niles, Ohio, and finishing facilities in Washington, Missouri.

In this paper, we would like to review several of the key topics of

concern to us in the titanium industry:

(1) The critical nature of the industry

(2) The uses of the metal

(3) A brief history of the industry

(4) The strategic importance of titanium to America's future

(5) The advantages in the applied use of titanium

We will close by suggesting some questions that might be addressed

in any study that may be made.

At RMI Company, we reaffirm the belief that the current and future status

of titanium mill products production and demand should be the subject of

such a study on critical materials needs. History has shown that end

products are essential to many facets of American life, not the least of

which is our nation's defense preparedness.

General Alton Slay, formerly head of Air Force Systems Command, had identified the titanium industry as one where domestic productive sponge

capacity is, and may continue to be, insufficient to meet domestic industrial and defense market demands.^

Titanium sponge is the necessary feedstock for the production of titanium

metal. The metal is low in density, light in weight, exceptionally strong,

and resistant to many forms of corrosion.

"RMIl

.“Titanium

Hhe Air Force Systems Command Statement on Defense Industrial Base

Issues, Gen. Alton D. Slay, November 13, 1980.

W39-1
rmT

.“TITANIUM

Alloys have been developed that have the strength of steel, at 60% the

density. These alloys can be used at temperatures far exceeding 1000°F.

Because of this special property, titanium alloys are the most engineeringly efficient materials of construction for critical parts of both

defense and commercial airframes, and the power plants used to propel

them. Currently, about two-thirds of all titanium mill product shipments are allocated to the aerospace industry.

Of the aerospace purchases, approximately 50% go to America's defense

contractors for such programs as the F-14, F-15, F-16, F-18, various

types of offensive and defense missiles, and helicopters. These programs

utilize titanium to reduce weight and increase operational integrity.

The titanium mill products shipped to commercial aircraft manufacturers

are primarily for use in the Boeing family of airliners, Lockheed's L-1011,

and the McDonnell Douglas DC-10 (KC-10) and DC-9 series. Principally

Pratt and Whitney and General Electric, through their subcontractors,

consume millions of pounds annually for both defense and commercial aircraft jet engines.

In the evolution of jet engines, the addition of a two-stage titanium

fan to a basic straight jet helped produce 42% more takeoff thrust, while

reducing fuel consumption by 13% and specific weight by 18%. The current

generation of large, high-bypass-ratio engines have substantial amounts

of titanium alloys in the fans and compressor sections, as well as other

structures. These engines, and the aircraft they propel, could not have

been built without titanium alloys.

Despite the obvious engineering advantages of the metal, there has often

been a reluctance on the part of industry executives to fund expansions.

We believe it valuable to briefly review the history of the industry.

This will help us to better understand the position we are in now.

W39-2
In the 30-year history of the titanium industry, market demand has been

extremely erratic. Because of large anticipated government contracts,

and private enterprise expectations, a number of companies have, in the

past, entered into the supply market. Unfortunately, many of those programs were abruptly terminated, due primarily to the lack of political

and economic support (e.g., the B-1, B-70, and SST programs). Thus,

several companies withdrew from sponge production. Included are such

industry giants as Union Carbide, DuPont, Crane Company, Crucible Steel,

and Dow Chemical. (Although Dow has recently reentered in a joint

venture with Howmet.)

In the 1960s, with increased defense spending, and a new generation of

commercial aircraft coming on stream, capacity was once again developed

to meet anticipated demand. But, because of program terminations, and

despite exceedingly low domestic sponge prices, the non-integrated producers bought their sponge product from Russian and Japanese sponge producers. These countries were dumping their sponge on American markets,

with subsidies from their governments.

Domestic sponge consumption and production fared no better throughout

most of the 1970s. But, a recent surge in demand finds the industry

producing at capacity levels.

A combination of reasons have led to this surge in demand and resultant

capacity constraints. Among them are: (1) the almost complete withdrawal of the Soviets from supplying Western markets, (2) other offshore

supply channels being redirected to fulfill internal and other markets,

and (3) a spike in demand from both industrial and aerospace users.

When we talk about the first two items just mentioned, it is important

to reemphasize the "dumping" practiced by the Russians and Japanese. A

suit was won against the Soviets in 1968 for dumping practices, yet the

penalties were not enforced. If they had been, it is quite likely that

production capacity would have been in place domestically.

W39-3
RMI]

I ITANIUM

The importance of titanium in the defense establishment and in com- mercial markets, and the susceptibility to disruptive foreign product

penetration, make it clear that a strong domestic industry for this

strategic metal is advantageous to the United States.

An examination of expanded uses of alternative ore sources may be a valuable addition to any proposed study. America has vast resources -- ilmenite -- which can be process upgraded to a form comparable to

rutile, which is then compatible with existing process facilities.

With the keen interest being shown in rutile producing countries about

developing their own metal reduction plants, domestic integration would

assure this important industry of plentiful and totally self-sufficient

resources

.

Titanium is a cost-effective material of construction, especially when

one considers elements beyond initial cost; elements like: lifespan,

cost of construction, cost of maintenance, etc. This can be most

accurately measured by comparing titanium to other materials of con- struction, like zirconium, inconel s, hastelloys, and nickel alloys.

In 1980, the following relative prices have been demonstrated (where

titanium = 1.00).

Zirconium 2.8

Hastelloy C276 2.8

Inconel 625 2.1

Hastelloy G 1 .5

Nickel 200 1.3

Inconel 600 1.2

Incoloy 825 1 .1 Monel 1.1

Carpenter 20 1.0

Titanium 1.0

Alloy Steel 0.1

Compared to other metals, the discrepancy can be seen even further:

Tantalum 53.5

Columbium 26.7

Titanium 1.0

2 Relative costs of plate product

W39-4
There are a number of reasons why a strong domestic industry is extremely

important to the United States. We have previously discussed the strategic

importance of the industry, and, the United States could be in the enviable position of self-sufficiency in at least one strategic metal.

It is our hope that any proposed study would consider this crucial fact.

There are a number of avenues that might be examined when we consider

this potential. Included are: (1) improvements in productive capabilities, (2) additional R&D into the potentials for material conservation

and wise application, and (3) fulfillment of the stated goals of the

national stockpile.

Taking the last item first, there are currently only 32,331 tons of

titanium in the stockpile. Of this, 10,836 tons are considered not to

3

be of stockpile grade. The objective is 195,000 tons. Thus we really

have only 11% of our goal attained.

The strategic importance of the metal is acknowledged by being placed on the list of materials in the Strategic and Critical Materials Stockpiling

Act. This act requires the acquisition of materials determined to be

"deficient or insufficiently developed to supply industrial, military,

and naval needs of the country for common defense," and necessary to

"prevent wherever possible a dangerous and costly dependence of the

United States upon foreign nations for supplies of these materials in

times of national emergency." U.S. Code, Section 98 (1951)

In this sense, titanium is comparable to cobalt. Both metals are vital

to the country. Both are especially important in the development of

cost-effective and fuel efficient jet engines.

With any surge in defense preparedness requirements , the United States

would not have enough titanium stockpiled to last the aerospace industry

one year. This is true — even assuming we devote all current production

capabilities to aerospace. New and current aerospace systems production

would be slowed severely, especially in essential engine production.

"3Mineral Commodity Summaries 1980, U.S. Bureau of Mines, U.S. Department

of Interior.

W39-5
fRMl"]

[“IrfANIUM

Long-term contracts for replenishment and rebuilding of the stockpile

would be one means to give domestic industry the incentive to go even further in current expansion plans and programs. It would insure both

a complete stockpile, and the productive capacity to respond to critical

or surge requirements. The United States would indeed be capable of

self-sufficiency in one strategic metal. As this indicates, we would

then have developed a significant improvement in our materials production base.

The rebuilding of American industrial strength should not rely solely

on defensive weapons procurement. The strength of the United States

depends on a totally strong industrial economic base. And, part of a strong economic base in America is energy development and energy con- servation. Titanium is the preferred application material in many

energy-related applications, including: auxiliary heat exchangers,

condensers for liquefied natural gas, steam turbine blades, geothermal

power, and instrumentation and piping for oil exploration.

One of our common objectives in this meeting today is to illustrate the

crucial issues facing our country. We believe our discussions, to this

point, have demonstrated the importance of the titanium industry, and

its critical applications.

Securing a strong economic and defense capable industrial base is imperative in the United States today!! To do this, we must adopt intelligent,

rational policies with which to act most propitiously. To develop these

policies, we need to initiate aggressive and insightful studies which

will lay the foundation for policy formulation.

We are hopeful that this discussion will assist you in defining our nation's needs. And, we would respectfully suggest that titanium be

included in the initial studies, so that a comprehensive titanium

policy can be developed to the benefit of everyone.

W39-6
RMI

“TiTANIUM

In a proposed study of titanium production capacity and demand requirements, there are a number of questions that might be asked. These may

provide the basis for policy initiatives. Though the following list is

certainly not all-inclusive, it may be representative of other issues

that might be covered in a study of this nature.

(1) Would it not be advantageous to U.S. policy-makers to

be made totally aware that the defense concerns of the

United States today imply that critically needed

materials be examined completely? As previously suggested, America would easily become self-sufficient

in titanium metals production if the incentives to do

so were present.

(2) Might it not be of concern to U.S. pol icy-makers to

understand how our balance of payments can be affected

by the redevelopment of a strong domestic industry?

Rather than a reliance on imports which may be suddenly

cut off, for economic or defensive reasons, it may

be better to be in a position where value added production can be sent out of the United States instead

of into the United States. One way for America to

fight the awesome effect of payments out of the United

States, due to the huge deficit from OPEC accounts,

is to increase exports. Many aerospace contractors

are running surplus accounts now (most notably

Boeing), and strong domestic subcontractors could help

maintain or build, this payment flow into America.

(3) Might we not look at the current U.S. policy initiatives

concerning redeveloping America through applied R&D?

Research and development on improved alloys has been a way of life at RMI Company. As new areas of application

grow, R&D becomes an even more essential element in the

total equation. As demand for the metal grows, industry

W39-7
RMI

"Titanium

feels an obligation to put its first priority on facility

expansion. Inasmuch as the titanium industry is extremely

capital intensive, this does not always allow for congruent

growth in R&D for the future. It is suggested then that

careful thought be given to the possible benefits of legislation to encourage R&D funding — be it through grants or

tax benefits.

(4) One element of policy in government today is to understand

the problems of strategically important industries. Government can be very beneficial by encouraging communications

that enhance predictability. Thus, study of the titanium

industry may include a comprehensive analysis of longterm market demand. The recent, and temporary, shortfall

in capacity versus demand requirements was partially due

to the lack of communication of true demand. Would

industry have added capacity to prevent this problem if we had an accurate picture? The answer is yes. In fact,

RMI Company recently did add to capacity — an increment

of over 25%. Past history has made the industry shy about

expansion. Long-term contracting might be examined as potential methods of building a sense of economic security

in this strategically important industry.

(5) It might be worthwhile to examine the federal emergency

allocation policies and procedures. Included in these

laws are the potential for assisting American industry

in capacity expansions, economic production practices,

and other incentives for domestic industry to produce at

levels not only to support defense requirements , but also

allow commercial development not to be restricted or impinged upon.

W39-8
In 1950, the Congress passed the Defense Production Act.

This act, in its present form, is used:

RMI]

“Titanium

To establish a system of priorities and

allocations for materials and facilities,

authorize the requisitioning thereof, provide financial assistance for expansion of

productive capacity and supply, provide

for price and wage stabilization, provide

for the settlement of labor disputes,

strengthen control over credit, and by

these means facilitate the production of

goods and services necessary for the

national security and for other purposes.

Specifically, the act provides for the implementation of

a system -- the Defense Priorities System -- which permits

the President to accelerate the production of critical

defense items by causing the manufacturer to place these

items at the front of the production line; guaranteed

loans to expedite deliveries of national defense systems;

and direct government loans to industry to expand plants

and facilities in order to develop or produce essential

material

.

(6) The Department of Commerce could act as a synthesizer of

the needs of the titanium industry. With the two previous

topics in mind, is it not worthwhile to have the assistance

of a central body who can recognize both commercial and

defense requirements, and recognize both classified and

unclassified demands?

Might we not also look into the question of materials substitution capabilities as an element of U.S. policy? For

example, titanium is an excellent candidate for substitution

among many nickel -based alloys.

W39-9
To carry this one step further, might not U.S. policy

place even greater emphasis on more extensive applications in energy and environmental areas? These are areas where titanium metal is constantly being demonstrated to be the most engineeringly efficient and

cost-effective material of construction.

In conclusion, we would like to suggest that it may be beneficial to use titanium as a vehicle of policy analysis. Though it is an atypical metal,

it is one where there is a definite domestic solution.

The life of the titanium industry has been very short, only three decades;

yet, the potential for critical applications which will be immensely beneficial to the United States is tremendous. And, the developed technologies

put titanium on the threshold of fantastic growth.

With an integrated effort on the part of the producers, users and other

members of private industry, hand-in-hand with our military and other

government agencies, solutions may be readily obtained.

W 39-10

NBS-114A (REV. 2-8C) U.S. DEPT. OF COMM. 1. PUBLICATION OR 2. Performing Organ. Report No. 3. Publication Date BIBLIOGRAPHIC DATA

SHEET (See instructions)

REPORT NO. NBSIR 81-2305 July 1981

4. TITLE AND SUBTITLE

Proceedings, U. S. Department of Commerce Public Workshop on Critical Materials

Needs in the Aerospace Industry, February 9-10, 1981

5. AUTHOR(S)

John B. Wachtman, Jr., Editor

6. PERFORMING ORGANIZATION (If joint or other than NBS, see in struction s) 7. Contract/Grant No. national bureau of STANDARDS

DEPARTMENT OF COMMERCE 8. Type of Report & Period Covered

WASHINGTON, D.C. 20234

9. SPONSORING ORGANIZATION NAME AND COMPLETE ADDRESS (Street. City. State. ZIP)

U. S. Department of Commerce

Washington DC 20234

10. supplementary notes

I I Document describes a computer program; SF-185, FIPS Software Summary, is attached.

11.

ABSTRACT (A 200-word or less factual summary of most significant information. If document includes a significant

bibliography or literature survey, mention it here) On February 9 and 10, 1981, the Department of Commerce held a Public Workshop to

obtain the views of the American Public on three questions directly pertinent to the

Department's responsibilities under the Materials and Minerals Policy, Research and

Development Act of 1980, Public Law 96-479. These questions were:

1) What are the materials issues of primary concern to the American aerospace

industry and its suppliers?

2) What recommendations do the American aerospace industry and its suppliers

have for Federal action to address these issues?

3) Which specific materials should the Department of Commerce review in detail over the next few months in order to recommend the most urgently needed programs for Federal action?

The Workshop addressed these questions within three distinct areas:

I. Critical raw materials

II. Critical engineering materials

III. Substitution, conservation, specialized recycling, and higher performance.

This report includes the formal views presented to the plenary workshop sessions,

the reports of the Workshop Task Forces in each of the three above areas, and the

written submissions invited in the Federal Register notice of the Workshop.

12.

KEY WORDS (Six to twelve entries; alphabetical order; capitalize only proper names; and separate key words by semicolons)

Critical materials; aerospace; chromium; cobalt; titanium; tantalum.

13.

AVAILABILITY

[X] Unlimited

I I For Official Distribution, Do Not Release to NTIS rn Order From Superintendent of Documents, U.S. Government Printing Office, Washington, D.C.

20402.

«

l_Xj Order From National T echnical Information Service (NTIS), Springfield, VA. 22161

USCOMM-DC 6043-P80

14. NO. OF

PRINTED PAGES

703

15. Price

$ 41.00

U.S. GOVERNMENT PRINTING OFFICE: 1981-360-997/1853
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