The Calumet news., 1911-09-05
COPPER IN MICHIGAN.

gion? These are question OF vital in
terest not only to the investor in cop
per shares. but equally to the techni-
cal student OF deep-lode mining.
The report j. r. Findlay to the
Michigan legislature, reapportioning
the assessed valuations OF Michlgans
copper producers. seems to have spread
most dismal gloom over the future of
Michigan's deep-lode mining. A sensa-
tional decline i'm the copper investment
markets has followed. According to
Mr.. Ffndlay. some OF the deeper Mich
igan lodes may at any moment pass
below the stage at which their work
ing would repay expenses. even with
copper at IA cents. 1t is claimed Tam
arack and others have already passed
this stage.
The outlook is really not as black
as is painted. assures the Mining and
Engineering World. Findlays "glooms"
owe their existence mainly to the use
of past cost figures OF copper produc-
ton. and on mistaken estimates of Wis
fble ore reserves for the future. Not
even a reasonable" allowance has
been made for future reductions in
cost which. as a matter of fact, are of
almost daily occurrence in the Michi-
gan copper belt. Nor has a "reasona-
BILE" allowance been made for increased
ore reserves of the future.
II seems only fair and reasonable To
allow for continuance OF the diminish
ing costs OF copper production. If we
examine the past records of mining
and treatment costs, there has in re-
cent years been conspicuous de-
crease, which is the more remarkable
considering the lean 26-lb. ore labor
lousy extracted from the deep work.
lngs Of today. as compared with the
rich 6O-lb. ore extracted from the shall
lower workings Of 10 years ago. 1t Is
not reasonable to assume that dimin-
luton i'm cost OF production will con-
tlnue There is of course what poll
ltical economists call law Of dimin-
ishing returns" according to which di-
minution in costs cannot be expected
to continue at the same rate as i'm the
past. Yet il is not hoping too much to
expect reduction during the next 20
or 80 years at least equal to that Of
the past decade.
From 1890 to 1900 the average cop
per cost among Michigan's leading
producers rose from $40 cents per
pound TO 11.S9 cents as a consequence
Of the first deepened workings. By
1910, In spite Of the still deeper work
ings and leaner ores the figure drop
ped to S.97 cents Each year it has
seemed that the limit OF cheap pro-
duction had at last been obtained;
each year has seen new reductions In
cost. today, the outlook for future di-
mlnution I'm expenses Is brighter than
ever.
The bearing Of diminished produc-
ton costs on the profits. and especial
ly on the increase Of the potential ore
reserves Of the future. cannot be over
estimated. In the deep lodes OF the
Rand. Victoria (Australla). Brazil and
Germany. increase in depth. coupled
with reduction In treatment costs, has
resulted year after year I'm increasing
the visible ore reserves Nor should 1t
be forgotten that the Michigan cop
per belt Is singularly free from the
temperature and water troubles which
harass deep mining in the deep lodes
mentioned. AS a result the lower limit
OF economic mining in Michigan is not
yet even In sight.
Who is IL therefore that dares doom
Michigan's remaining copper life tJ a
brief span Of 20 years? only 10 years
ago. the future value OF Calumet &
Hecla would have been considered mil"
had some statistician been able to fore
see that today this company would
have TO depend on 26-lb ore and on
tailings. That G. a. III. would pay in
1910 attractive dividends on such lean
refuse would have exceeded the bounds
OF the widest optimism. Twenty years
from today Michlgan's copper belt. in
stead Of being exhausted, will, Il is
confidently predicted. show more ore
than ever. Muscles grow stronger and
bigger as they are worked. SO. too,
Michigan's copper reserves will con-
tlnue To expand the more assiduously
they are developed. when improve
ments in mining. milling and smelling
shall have ceased, when, as a result,
ore reserves shall have ceased to in