The Daily Alaska empire. [volume] (Juneau, Alaska) 1926-1964, 1950-12-14

guaranteed by the Federal Gov
eminent. 1t is preferred that the.
money be. obtained from private
sources. but. in case of necessity,
may be obtained through the Re-
construction Finance Corporation"
said Lorain.
The Defense Minerals Admins
tration cannot make loans or con-
clude purchase contracts itself. The
junction of the DINA in regard to
loans is to certify to the RFC as
to their necessity for national de-
Tense.
For Alaska Producers
Another way for production to be
made possible for Alaskan produc-
ers is through purchase contracts
with government subsidized prices
over and above current quotations,
according to Lorain AS for pur-
chase contracts, these will be GER
titled to the General Services Adj
after the Defense Min
erals Administration has carried
out the preliminary negotiation.
TT is to be emphasized that RFC
loans will not be granted indis-
criminately but will be given con-
sideration at Washington, D. G.,
levels" said Lorain. Granting OF
the loan will be governed by the
national need for the particular
metal or mineral under considera-
ton and by the relative cost in
manpower and materials per unit
of mineral expected to be recover
ed"
Government subsidies may tend
to offset the cost differential which
in many cases have been prohib-
tive to development of Alaska
mining operations. =
DINA Intentions
1t is the intent of the DINA that
expansion of production shall be
facilitated as much as possible
through ordinary business chan
nels. Government guarantee of
loans or direct government loans
can be resorted to if regular bust
ness loans are not obtainable.
The government will negotiate
purchasing contracts or make loans
only if these methods appear to
be necessary to place into industrial
channels additional quantities OF
critical metals and minerals.
The lack of risk capital has been
one of the chief detriments to the
development of Alaskan mining, ac-
cording to Lorain.
ut has been especially difficult
to obtain risk capital. Through
the provisions of this act, there
is the guaranteed return of risk
capital" he said. This is made
possible by obtaining government
guar antee of a private loan for
work"
Chief Attention
Chief consideration will be giy<N
to those metals and minerals that
are critical and strategic. Falling
in this list for primary considera-
ton are: antimony, asbestos (spin-
ming grade), beryllium, chromite,
cobalt, columbium- tantalum, copper,
fluorspar, graphite (cru-
chile flake, manganese. mica. tale
(steatite), tin, tungsten, and zinc.
This list will be expanded, cur
tailed or modified in accordance
with changing national defense re-
quirements.
Copper deposits on tide level on
the Gulf OF Alaska and IN SOUTH
east Alaska may receive special
consideration. The most promising
tin deposits on the North American
continent are ON the Seward Fen
insula in the vicinity of Tin City.
Yielding frOmlSc
Projects to be approved by the
Defense Minerals Administration
must. in it's judgment, show definite
promise of yielding material OF ac-
ceptable grade, physical character,
and specifications in amounts tnat
will significantly improve the min
eral supply position for national
defense.
Also. commitments for assistance
in developing and mining mineral
denosits will be made only wnen
the necessary processing plants
water supply, and access roads ex-
ist. or when simultaneous commit
ments are made to assure they VIII
be provided If necessary.
Although policies and maj oe-
cisions of the Defense minerals
administration will be made IN
washington, D. c., the ORGANIZATION
will use personnel and facilities OF
the Bureau of Mines and Geoiogi-
cal Survey for field examinations.
Field teams have been estaohslleo
on a regional basis corresponding
with the regional organization OF
the Bureau of Mines.