Gilpin observer., 1900-05-10
MILL AND SHELTER CHARGES
New Reduction Plant May Force Lower
Rate on Ores.

New Reduction Plant May Force Lower
Rate on Ores.
1t is evident that there will be a de-
termined effort made during the com
ing season to secure a reduction in the
charges for milling Cripple Creek ores,
and the enormous increase in the daily
capacity for treatment it is believed
will prove powerful lever in that di-
rection.
The new mills now under contract,
and the additions to plants already in
operation will add to the daily capacity
not less than 1,4OO tons, and the an
nouncement that IL pyritic smelling
plant will be erected which will enter
Ehe market for 400 tons day of Grip
pie Creek ores, has added to the strain
which will be put upon the milling
companies to keep the plants in con-
stant operation. Operators and smelt-
ing men interested in the situation say
that it will be impossible to supply this
enormous amount of ore unless the av-
erage value of the ore is graded down
l to include $15 product. and that ore
of that grade can only be secured by
such a reduction in the treatment and
transportation charges as will insure
a profit to the miner. There are hun
dreds of thousands of tons of ore in
the district that will run below $50.
Some of this is now sold to the mills
and used to grade down ore that runs
above two ounces. but there is still an
enormous amount left and more that
can he mined. and this is the element
which mine operators depend upon to
secure the reduction in milling rates.
1t is argued that with the daily capac-
ity of the mills doubled and with big
matte smelter coming into the field,
l,n will ha
PEELED to make concessions of n very
substantial character in order to insure
the constant employment of the capital
invested. and that the result may be
rate war that will be beneficial to the
miner. whatever may be the effect up
on the milling companies.
At the offices of the smelterS 1t is
said that such n reduction which 1t is
acknowledged is possible as result of
competition between the mills. will,
if it comes. have no effect upon the
smelters as there is every indication
of an increase in the output of high
grade ores, which must come to the
smelters, as the closer saving of the
smelters gives them much greater
advantage than any reduction that the
mills are likely to make. Taking four
ounce ore us n basis. with an average
saving of ninety-tive per cent. of the
yvalues by the mills, it is claimed that
there is n difference of $3.50 ton In
favor of the smelters, so that there is
little likelihood of a reduction in mill
ing rates affecting the smelter situa-
ton.
The projectors of the new pyritic
smelter disclaim any intention OF caus-
ing reduction in the treatment charg-
\rs. They say they have gone into
ffeld which was omen because there is
a good opportunity for bringing into
the market the low grade ores OF the
district. many of which cannot now be
marketed. and that as far as they are
concerned there will be no disturbance
of rates. Their matte product Will al
ways find ready market with the
smelters. and they claim their smelter
will be n great benefit to the district in
that il will afford II market for Il large
amount of ore that is not now sold.
A fact that adds special interest 10
the situation is that Overtures have al
ready been made to leading mining
companies by the mills for long time
contracts based upon Il much lower
treatment charge than now exists. This
fact is well known to the smelters. bu,
is not regarded seriously at present, as
it Is not believed the mills will make
such reduction as will affect the smell
ters In the handling of high grade ores.
Most of the heavy producers have con-
tracts with both mills and smelters
that still have several months to run.
and the fact that Overtures for reduced
charges have been made so early indi-
Gates that the mill operators are look
ing to the future with considerable
anxiety.-Denver Republican.