ican continent is in keeping with the Government's policy of strengthening the domestic mining industry and alleviating the strict and nearly total dependency on foreign chromite.

2. Consumption of most metals and minerals has increased with our industrial expansion and may be expected to increase rapidly in the rest of the free world as the underdeveloped countries industrialize, thus creating greater demand and increasing prices for those metals and minerals.

3. More effort will be directed toward the use of lower grade ores since the grade of many ores being mined is declining.

4. The chromite industry using domestic ore will be aided and encouraged in its efforts to establish an integrated chromium industry for the United States.

5. The Government stockpile of chromite concentrate presently being accumulated will be converted into ferrochrome ready for use by the industry at total cost, including concentrate and smelting costs, to the Government approximately equal to current market prices for ferrochrome.

6. Employment would be increased in a critical area.

Mr. REDWINE. Mr. Chairman, may we have a short recess to enable Senator Dworshak to hear this witness?

The CHAIRMAN. Senator Dworshak wishes to be present when the next witness testifies, so we will take a recess for 5 minutes while we await his arrival.

(A short recess was taken.)

The CHAIRMAN. The hearing will please come to order.

The next witness is Mr. James P. Bradley, Bradley Mining Co., San Francisco, Calif.

Senator Dworshak, do you wish to make any comment?

Senator DwORSHAK. No, I will wait until Mr. Bradley completes his statement.

STATEMENT OF JAMES P. BRADLEY, BRADLEY MINING CO., SAN FRANCISCO, CALIF.

Mr. BRADLEY. I am James P. Bradley, vice president of the Bradley Mining Co., San Francisco, Calif.

My testimony will be principally on the subject of tungsten, but I wish to mention that my company has in the past been one of the major domestic producers of three strategic metals-antimony, mercury, and tungsten.

Due to a combination of rising costs, increasing foreign competition, and a financial loss resulting from our company's having continued tungsten production in good faith under Public Law 733 until the summer of 1957, we have been forced to discontinue production at all of our mines.

The plant at our Yellow Pine Mine, Stibnite, Idaho-formerly the largest domestic producer of both antimony and tungsten-is now in the final stages of liquidation.

For the time being, we are holding the plant intact at our Ima tungsten mine at Patterson, Idaho, in the hopes that the Government may take some action to bring about the survival of the domestic tungsten industry.

27255-58-pt. 1--11

The outlook for the domestic tungsten miner in the face of competition from nationalized foreign mines is very discouraging.

As set forth in the Tariff Commission report of February 1958, Korea and Bolivia are the chief sources of United States tungsten imports. Both of these countries have nationalized their tungsten mines, have manipulated their currency exchange rates and have experienced severe inflation.

The most serious form of competition is the desire of a foreign government to sell tungsten at less than production cost to maintain employment and to obtain dollar exchange-as stated on page 25 of the Tariff Commission report. The current tariff rate on tungsten concentrates is entirely inadequate to overcome this form of competition.

If you need a copy of that report for the record, I have one here. The CHAIRMAN. You may present it to the staff and it will be on file as an exhibit to the hearing.

Mr. BRADLEY. While our domestic tungsten industry is dying out, our chief potential enemy, Russia, is expanding its tungsten production by 57 percent under the sixth 5-year plan-as stated in the Mining Journal, of February 28, 1958. I will hand you a page of the Mining Journal as an exhibit.

The CHAIRMAN. That will also be carried as an exhibit.

Mr. BRADLEY. Russia evidently realizes the extreme importance of developing new types of high temperature alloys for such applications as jet engines, atomic energy, rocket engines, and guided missiles.

In my opinion, there is a dangerous trend toward too high a dependence on overseas sources for tungsten and other strategic metals. I, therefore, believe that it would be in the national interest for our Government to encourage the domestic production of strategic metals on a long range basis.

In the case of tungsten, the provision of funds to purchase inventories-produced in good faith under Public Law 733-would help the domestic tungsten mining industry to get back on its feet. On a long range basis, some form of protection from low cost imports is needed. As the tariff rate necessary to overcome the competition of nationalized foreign mines would be so high-triple the present rateI suggest that this committee recommend the establishment of import quotas on all forms of tungsten imports, so that the domestic mines could be assured of supplying not less than two-thirds of the total domestic consumption of tungsten.

I believe that such an important quota would ultimately prove beneficial to the tungsten consumers, by assuring a continuing domestic source of supply.

The use of import quotas to protect domestic mines could seem to be a quick way of putting men back to work at no cost to the Government.

Furthermore, American miners working at high wages constitute a good market for automobiles and other items manufactured in the United States and the reemployment of more domestic mines would, therefore, be a great aid in overcoming the current recession.

In conclusion, I wish to thank the Members of the Senate for their efforts to obtain appropriations under Public Law 733, and I greatly appreciate the privilege of appearing before this committee.

Thank you.

The CHAIRMAN. Thank you very much.

Senator Dworshak?

Senator DwORSHAK. What is the current price situation for tungsten? What is foreign tungsten selling for when it is imported into this country?

Mr. BRADLEY. The current price is somewhere around $8 or $10 per unit before duty. The duty is roughly $7.93 per unit.

Senator DwORSHAK. It is only $15 to $17 a unit for tungsten produced abroad?

Mr. BRADLEY. Yes. The price comes up to close to $20, duty paid. Senator DWORSHAK. You have had considerable experience in producing tungsten. What do you think is the lowest possible price at which tungsten can be produced profitably in this country?

Mr. BRADLEY. I would say in order to plan for the future and keep the mines in shape, they would need a price somewhere around $45 a unit.

Senator DwORSIAK. What is responsible for that large disparity between $20 and $45?

Mr. BRADLEY. One reason, of course, is that some foreign governments are selling their production below their cost to maintain employment and to get dollar exchange. That seems to be very unfair competition that we just cannot meet.

Senator DwORSHAK. Of course, that same thing is true in the production of all minerals in this country, is it not, to some degree?

That is, foreign competition is based upon rich deposits at low mining cost which makes it difficult for domestic mining operations in this country to compete on that basis?

Mr. BRADLEY. Yes. Of course, the principal differential in cost is the low wages in other countries. I think the situation in tungsten is more serious than some of the other metals in that the areas that produce tungsten are very low wage rate areas in addition to being nationalized.

Senator DwORSHAK. Where are most of the tungsten imports coming from now?

Mr. BRADLEY. The two chief sources in recent years have been Korea and Bolivia.

Senator DwORSHAK. Is there any coming in from Africa?

Mr. BRADLEY. Some from Africa, Spain, Portugal, Australia, Canada.

Senator DwORSHAK. How can they afford to produce Korean tungsten and ship it to this country at such low prices?

Mr. BRADLEY. I do not see how they can. They are probably losing money on it.

Senator DWORSHAK. Do you know whether there are any contracts for the acquisition by the Government of the tungsten produced in Korea?

Mr. BRADLEY. I think that contract has terminated. However, our Government does have contracts with producers in Brazil and other countries that extend into next year.

Senator DwORSHAK. At what price?

Mr. BRADLEY. I understand a price of $55 per unit.

Senator DwORSHAK. You have had some experience with antimony. Can you tell us what the current situation is, whether any primary antimony is being produced in this country?

Mr. BRADLEY. The only antimony that we know about is being produced as a byproduct from the silver-lead ores in the Sunshine mines in Idaho.

Senator DWORSHAK. There is no antimony production that is not a byproduct, then, at this time?

Mr. BRADLEY. Except for some production in Alaska.

I have not seen that in the official Bureau of Mines records, but I understand that there is some production in Alaska.

Senator DwORSHAK. Are you acquainted with the price situation on antimony today? That is, what is the lowest feasible production cost of antimony in this country and what foreign antimony is selling for now that is coming into this country?

Mr. BRADLEY. In terms of the ore, the foreign-aid antimony is coming in at between $2 and $3 per unit of contained antimony. I believe the average small domestic mine in order to produce shipping ore would need a price of around $5.

Senator DwORSHAK. So antimony is in about the same category as tungsten so far as price differentials are concerned?

Mr. BRADLEY. Yes, just about.

Senator DwORSHAK. Thank you, Mr. Chairman.

It appears that most of our minerals in this country are in the same difficulties so far as price competition is concerned.

These imports constantly come in from abroad at prices that are far below the cost of production in this country.

The CHAIRMAN. I think that is very clear.

Are there any other remarks you wish to make, Mr. Bradley?
Mr. BRADLEY. Not at this time.

The CHAIRMAN. Thank you, Mr. Bradley.

That will conclude the hearing this morning. We will go over until 2 o'clock.

(Thereupon, at 11:45 a. m., the subcommittee was recessed, to reconvene at 2 p. m. same day.)

AFTERNOON SESSION

Senator MALONE (presiding). The committee will be in order. Mr. J. Carson Adkerson, representing the managanesse producers, will you come up, please.

STATEMENT OF J. CARSON ADKERSON, PRESIDENT, AMERICAN MANGANESE PRODUCERS ASSOCIATION

Senator MALONE. Your name is Mr. J. Carson Adkerson?

Mr. ADKERSON. That is right.

Senator MALONE. You represent the manganese producers?

Mr. ADKERSON. I represent the American Manganese Producers Association.

Senator MALONE. Will you identify yourself for the record?
Do you
have a statement to make?

Mr. ADKERSON. Yes.

Senator MALONE. Please identify yourself and proceed.

Mr. ADKERSON. My name is J. Carson Adkerson. I appear as president of the American Manganese Producers Association representing

members of the industry, including myself as an individual operator in manganese.

I have a short prepared statement on the facts of the industry which I would be glad to submit to save the time of the committee, and then just summarize it in brief remarks.

Senator MALONE. Do you have extra copies?

Mr. ADKERSON. Yes.

Senator MALONE. I think that would be very well.

We will print your statement at this point in the record. You may summarize it in your own manner.

(The prepared statement is as follows:)

PREPARED STATEMENT of J. CarSON ADKERSON, PRESIDENT, AMERICAN MANGANESE PRODUCERS ASSOCIATION

The American Manganese Producers Association, composed of domestic producers of manganese ore, was organized in 1927 for the expressed purpose "to further the production, beneficiation and use of domestic manganese bearing ores."

This statement is presented in behalf of domestic producers of manganese ores including myself as an individual operator in manganese.

Since World War I manganese has been known as the No. 1 strategic mineral. It is essential in the manufacture of steel. There is no known substitute for manganese. Without manganese there can be no steel. We use only 14 pounds of manganese in a ton of steel but without that 14 pounds our steel mills would close.

We consume approximately 2,250,000 tons of manganese ore a year and produce approximately 330,000 tons, or say 15 percent of our needs.

Manganese ore (35 percent or more Mn) imported into the United States from January through November 1957 was as follows:

Except for Cuba and Mexico, all are long sea hauls which, in an emergency, could be cut off overnight.

It takes years to develop mines, build plants, and bring forth production of manganese. After an emergency starts it is too late. The only time to develop manganese production is during peacetime when time, manpower, and materials are available.