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

In recent issue of Trade Winds,
q business magazine, appeared the fol-
lowing in relation to the reserves of iron
ore and other matters of interest to the
industry. The article is worth repro
ducing and throws considerable light
on the subject of iron ore and its econ
omic factor in business. Trade Winds
said: sssaiS
It Is estimated that present known
reserves of high grade Lake Superior
iron ores which feed the furnaces OF
the country's most important IRON
and steel producing district would be
entirely exhausted in less than 80 years
If the rate of shipment prevailing in
recent years were to continue and no
additions to the reserves were made.
It is probably true that further ex-
plorations will result in additions to
the known reserves, although there is
no certainty of that, and the extent
and quality of such possible ore dis
coveries cannot be forecast by any
of the experts of the iron ranges.
Michigan and Minnesota, at the be-
ginning of the 1880 shipping season,
reported reserves of high grade ore
which totaled LAOS, SIT 1888 tons. Ship
ments during 1880 were 46,038,490,
which would leave a net figure, before
the shipments of 1881 of 1857 ,538, 843
tons. Ten-year average shipments
from Michigan and Minnesota mines
are nearly 100000 tons yearly, which
would place the life of the present
known reserves at approximately ~
years. The present depression years
indicated shipments of Lake Superior
ore of approximately 25,O00,0O0 tons are
subnormal.
In past years new bodies of ore have
been discovered and placed on the
records of the Minnesota tax commas
sion and the Michigan department OF
conservation with considerable regular
ity. Thus in the 10-year period ending
with 1880 there were total shipments
from the Michigan and Minnesota
mines averaging more than 5O,OO0,O0O
tons per year while the net decrease In
known reserves in the two states was
III. o63. 766, an average net depletion OF
but little more than 100000 tons pei
year.
Were there any ground for belief
that new discoveries would continue al
a like rate it could be assumed tnat
supplies of ore would be good Tor con-
siderably more than a century instead
of less than 30 years. The fact Is,
however, that most OF the ore areas
have been fairly well explored and
while it is likely that further bodies OF
ore may be added to the known reserves
there is little probability that future
discoveries will nearly offset shipments
as they have in the past.
Continuance of supplies OF high grace
ore In the Lake Superior district Is
matter of importance to the industrial
life of the country generally rather
than merely to the specific industry
engaged in mining, shipping and Veno-
ing the ore. It involves first the use
of domestic as against foreign ores
Recent estimates are that for every
1000 pounds of domestic iron ore now
used in the production OF iron ano
steel in this country less than 81
pounds of foreign ore is used, despite
the fact that large bodies OF high
grade ores are known to exist In many
countries where labor costs are mucr
lower than in the United States.
The economic factor of transportation
costs is the protection OF domestic
against imported ores. Tariffs do mol
enter into the matter, because IN ac-
cordance with long established Amerl-
can policy iron ore, as a raw materlai,
Is admitted to the country free TO en-
courage American manufacturing ano
aid American labor.
The competition of foreign ores Is
felt principally along the Atlantic sea-
board. where the combined lake ano
rail transportation cost OF Lake Su-
perior ore and the rail transportation
of other domestic ores reaches higher
point than the combined ocean ano
rail cost of foreign ores. Enect OF
Transportation and other costs on the
competition between foreign and lake
ore for the business of the past Is shown
by the fact that 10 or IL years ago
shipments of Lake Superior iron ore
tn furnaces east of the Allegheny
Mountains reached as much as 1000,
600 tons a year. The amount has con-
stantly dwindled until this year there
win be practically no Lake Superior ore
shipped to these eastern furnaces.
The iron ore business is subject to
sharply defined economic limitation OF
markets Sales prices are naturally
based on production and transportation
costs. Higher production costs IN the
Lake Superior district are so balanced
by the facility and economy OF lake
TRANSFORMATION as to protect the mid
west markets against other domestic
and foreign ores. When rail transpor-
tation for considerable distances must
he added lake ore cannot be marketed
in competition with southern ores OF
with local or foreign ores in seaboaro
territory.
This competition does not yet af1ect
the bulk of the iron and steel business,
however, and probably will not as long
as ample supplies of satisfactory ore
can be drawn from the ranges OF the
Lake Superior country. That Is because