The Daily Alaska empire. [volume] (Juneau, Alaska) 1926-1964, 1951-03-01
Ten MILLION GIVEN
FOR EXPLORATION OF
STRATEGIC METALS


for strategic and critical metals and
minerals needed in the defense
program has been made by the De-
tense Production Administration
of the Defense Minerals Admins
tration.
The money is part of the funds
authorized by the Defense Produc-
ton Act of 1850. The ALLEGATION
will be used to assist prospectors
and mine operators in searching for
and blocking out new reserves of
ore vitality needed for the nations
reamament program and for es-
sential civilian requirements.
These funds will be used gener-
ally on matching basis and the
federal governments share would
be repayable if the ventures are
successful. The Defense Minerals
Administration is now shaping the
rules and regulations for the ex-
ploration project-type program on
the matched fund basis.
Program Expectations
1t is expected that this program
will probably be in effect before
the end of March. The program is
oriented toward the strategic metal
group and it is hoped that it will
be possible to stimulate the search
for tungsten, manganese, chrome,
etc.
The rules and regulations under
which the exploration program will
operate are designed specifically
for the prospector and small miner
in the field. Simplified application
forms have been drawn up to make
the work easier for the man in the
field.
This program, it is pointed out. is
in accordance with the policy OF
Congress as expressed in the De-
tense Production Act which calls
for the encouragement Of explor-
alton and directs that actions ia
ken to expand defense activities
shall be carried out to the maxi
mum extent possible by private in
dustry.
Exploration Program
This exploration program may
relieve shortages of some critical
and strategic metals and minerals
substantially without diverting un-
necessarily either materials or man
power otherwise essential to the
defense program.
A schedule of rates of govern
ment participation in exploration
projects is now being established
and as soon as the necessary regu-
lations and application forms are
printed, public announcement will
be made of the rules for govern
ment assistance under the explor-
alton program.
Exploration for new mineral
sources is essential to the national
defense. During the past 10 years
the nations reserves of critical
minerals have been considerably
depleted. At the same time the
work required to explore for new
mineral deposits has not been adj
equately accomplished.
The reasons for this are the in
creasing difficulty in making new
discoveries, the relatively high
costs of exploration as compared
with the prices for metal ores and
the fact that metal prices are in
some instances determined by
world markets whereas costs of
production are determined by in
ternal economic conditions
Job for All
Although an important part of
the job of exploring for strategic
and critical metals will be carried
out by prospectors and small con-
Germs. the program is designed to
benefit the nation and not any
particular segment or industry.
Small enterprises can in the ag-
gregate make a substantial contri-
button to the supply of mineral
raw materials which the nation
needs.
The $I0,OO0,0O0 which has been
allocated is expected to cover ex
ploration projects approved before
the end of the fiscal year next
June 80. The government share of
the cost of each project will be
repayable on a royalty basis out
of the net mill, smelter or other pro-
ceeds from the explored mineral
deposits that are put into produc-
ton.
Eventually the exploration pro-
gram will give the nation higher
degree of mineral self-sufficiency
and thus reduce dependence on
foreign supply, it is hoped by DINA
officials. The cost of this program
| is to be weighed against the un-
certainties of foreign supply and
the cost and drain on transporta-
ton, military equipment and man
power in emergency situations.
On Project Basis
The exploration program will be
carried out on a project by project
hac;c CorfractS with individual