The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1932-03-04

Of beneficiated low grade ORE A policy
of that sort. if it could be followed,
would make certain that supplies of
disable ore would be ample for 100
years or more, while the present policy
OF Skimming only the cream leaves the
future Shrouded In doubt.
With iron and steel prices driven to
the lowest levels in many years the
| companies producing the iron ore which
supports mid-western industry this
year are finding it difficult to realize
| enough even for their high grade ore
to much more than pay taxes.
Iron ore companies operating in
Minnesota pay the heaviest taxes of any
industry in the world. Where the
average rate of all state and local taxes
for all industry and trade in the United
States is in the neighborhood of Is
per cent on the gross value of product
at point of production and the rate on
all mining and quarrying operations in
the United States is less than 2.5 PEI
cent, the Minnesota state and local
taxes on iron mining are more than
% per cent
Taxes normally take an everage OF
60 cents for every ton of ore produced
which is more than the total cost OF
labor and expense of mining, while in
the present year it is estimated that
the Minnesota tax will exceed 81 fol
every ton of ore mined. This means
that taxes will represent 40 per cent
of the value of the ore mined and ap.
proximately three times the labor cost
The battle of the Minnesota iron ore
| producers is against the costs of pro-
duction on the one hand and prices
| fixed by competition on the other
| Comfortable costs of production have
| been cut to the bone, often at the
expense in payroll disbursements of the
very communities which have voted ex-
| travagantly high tax levies. The ta1
burden, largest single item of cost, is
the one element over which the mine
operators have no control.
1t is possible that constant scientific
research may develop new and cheaper
ways of beneficiating the low grade
ores. It hardly seems likely, that this
possibility, if realized, would effect
sufficient savings to permit the working
of low grade ore at present price levels
Such change as may be made either
in methods Of utilization of Lake Su-
perior ore deposits or in cost of the ore
which is produced will doubtless come
about as gradual process of develop
ment. There is no such possibility a:
the sudden or complete depletion Of
high grade ore deposits. As a de.
pletion exceeds new discoveries, in.
creasing use of low grade ore will bt
made and the cost will have to be
absorbed as the steel industry can best
absorb it.
! Neither is there any likelihood of q
relocation Of the midwest steel in.
dustry as might be necessary were there
a possibility of entire depletion Of
Lake Superior ore. Transportation
! facilities and great consumer markets
combine to indicate increasing growth
rather than relocation.
With strict economic limitation Of
its markets and factors in the steel in
dustry tending toward greater use Of
scrap, the restriction of steel tonnage
and the lower price levels, it is un.
likelythat the Lake Superior ore in.
dustry will experience marked increase
in shipments or attempt new develop.
ment work in the near future.