production is the answer to lower costs; coordination of potential purchase requirements among the tens of thousands of high schools and colleges might make this possible.

Sensitive elements no larger than an eraser are needed for the construction of probes to be inserted inside the brain during brain-tumor surgery in which the location and extent of the tumor is delineated by previous injection of radioisotopes into the blood stream of the patient.

Perhaps the largest potential new future market is for low-level industrial counting apparatus in which the activity to be measured is equal to or perhaps even less than normal background. Such counters will be needed in the application of low-level tracer techniques to industrial processes, such as the production and refining of petroleum, etc., in which a radioisotope is added to the product so that its movements during the manufacturing process can be traced and perhaps automatically controlled. It is to be emphasized that the radioisitopes added must be such that they decay to an insignificant activity before the products are offered to the public. Such industrial users are entirely feasible and await development of low-level counters at reasonable cost.

In summary, the application of radioisotopes to industry, medicine, and agriculture continues to be one of the bright spots in the atomic-energy program. Justification has been presented for the reasoning which leads to an estimated savings of nearly one-third of a billion dollars in industry and potentially an almost equal amount in agriculture. There are incalculable but sizable potential savings to our national economy in medicine. Each one of these uses taken individually would represent a fair net return on the capital investment of our entire atomic-energy program. Best of all, the benefits of radioisotopes are immeditaely applicable.

III. RAW MATERIALS Base for THE ATOMIC ENERGY INDUSTRY

General statement1

For the United States, 1956 was a year of rapid progress in the development of its uranium industry. This country is now the leading uranium producer of the free world and is currently furnishing approximately one-half of the supply employed in our atomic-energy program. Increases in deliveries from foreign sources last year were exceeded by gains in domestic production.

Mining and milling operations in the United States have greatly expanded. Ore production now is about 3,500,000 tons a year and is expected to be in excess of 5 million tons annually within the next 3 years. In the past 12 months mill-conocentrate production increased from an annual rate of about 4,000 tons of U2O, to a rate of 8,000 tons. Production for the year was approximately 6,000 tons of UзOя. By the end of 1958, the rate is scheduled to be in excess of 15,000 tons a year.

Probably the most important development has been the large addition to our known ore reserves. This was due to the intensive development of uranium deposits and uranium-bearing areas previously found rather than to new discoveries. Most important was the development of the Ambrosia Lake field, near Grants, N. Mex. This field was discovered only in April 1955. Ore reserves are now estimated at 25 million tons averaging 0.3 percent UзOs. This represents approximately 40 percent of known domestic reserves, which currently are estimated at about 60 million tons. Nearly 70 percent of these reserves lie within 30 miles of Grants.

The Canadian uranium program also progressed rapidly during 1956. Although production in Canada has not increased as rapidly as in the United States, mine development and mill construction are proceeding rapidly. By 1958 the production rates of the two countries may be about equal. The greatest development is taking place in the Blind River field, Ontario, about 100 miles north of the Canadian-United States border. Since the discovery of commercial deposits in this area in 1953, approximately $175 million of private capital has been spent or committed for opening uranium mines and constructing mills. By 1958 the total may reach $250 million. Mining and milling, which was at a rate of 7,000 tons of ore per day at the end of 1956, will progressively increase as new mills are completed until 1958 when the scheduled rate of about 35,000 tons a day should be reached.

Some of the production figures appearing in this testimony may be found in the 21st semiannual report to the Congress at pp. 3-8. The figures repeated here are given as necessary underlying data for the discussion of the development of the raw-materials phase of atomic-energy industry here and abroad.

An official Canadian estimate of reserves in the Dominion as a whole, issued in mid-December, placed them at 225 million tons. The major part of these are in Blind River district, where the grade averages approximately 0.1 percent UsOs, or about 2 pounds per ton.

In the Beaverlodge area of northern Saskatchewan, mining and milling operations at the end of 1956 were at the rate of 2,000 tons of ore daily. Expansions and new construction now underway should double this rate by the end of 1957. The Bancroft area, 150 miles north of Toronto, has 1 mill in operation and 2 under construction. Total milling capacity should reach 3,000 tons of ore per day. Uranium prospecting in Canada has almost ceased as a result of the Canadian Government's announcement in July 1955 that no proposals for milling contracts would be accepted after March 31, 1956.

The South African program reached approximately 80 percent of full production with the completion of 16 mills of a total of 17 approved for the program. In 1957, production should approach maximum with 17 mills drawing tailings from 27 gold mines. When all plants are in full operation more than 20 million tons of tailings containing approximately one-half pound of U:Os per ton will processed annually.

The Belgian Congo continues to be an important producer, but its relative importance has declined because of the large new production now coming from the United States, Canada, and South Africa. Portugal continues to be a small but steady supplier of uranium.

In Australia, production is being maintained from the two Government-owned properties previously brought into operation. Australia is considered a favorable continent for exploration with a large undeveloped potential.

The great change in uranium production over the past 9 years was emphasized by an action taken last December-the declassification of information on current and future uranium production and ore reserves. During the earlier period of the Commission's operations a supply of uranium sufficient for the expanding defense program posed serious problems and information concerning availability of uranium had important security value. In 1948, more than 90 percent of our uranium came from overseas. Since then overseas production has increased severalfold, but the largest new sources of production which have been developed are on the North American Continent. Today North America is furnishing more than 60 percent of the United States uranium supply, and by 1958 it will be providing about 80 percent of a much greater total supply.

A production rate is now assured which will be sufficient not only to meet defense requirements but also to provide for industrial power development. The uranium supply no longer is a limiting factor in either the civilian or the military program. The world is on the threshold of a great atomic-power development.

Henceforth, the uranium industry should be able to plan ahead in the light of full information on current and potential supplies of ore. Such information no longer needs to be classified for military reasons. On December 13, 1956, the United States and Canada made public current and future data on production and reserves. South Africa has taken similar action. Another important step taken during the past year was the establishment by the Commission of a new procurement program which provides a domestic uranium market through 1966. This program was designed to support continuing domestic exploration and development so that domestic production can continue to supply a substantial part of our military and power requirements. The new program, by converting to a concentrate rather than an ore price, establishes a uniform base for market quotations on the primary product desired by industry and thus anticipates transition from a Government-controlled market to a commercial market. The present status of domestic uranium operations

Mining operations.-Uranium ore production in the United States was at an annual rate of approximately 3,500,000 tons in December 1956. This compares with an annual rate of 1,800,000 tons in December 1955. Production is expected to increase rapidly toward the end of 1957 and in early 1958 as new mills now planned for New Mexico, Wyoming, and Washington go into operation. By the end of 1958, ore production may reach an annual rate of 5 million tons or more. The trend today is toward larger mining as well as milling operations. Our greatly increased domestic-production capability is the direct result of the discovery of large ore deposits. Many of these large deposits can be mined economically only by large-scale operations requiring large capital investment prior to production for development, equipment, and facilities.

It is interesting to note, however, that there has been a continued increase in the number of producing mines, in the number of small shippers, and in total

production of the small shippers. We have arbitrarily defined a small shipper as one producing not to exceed 10,000 tons of ore in a 6-month period, which would be an everage of about 65 tons of ore per day. Comparing the first 6 months of each of the past 3 calendar years 1954, 1955, and 1956, the number of individual mining operations was 795, 809, and 1,005; the number of small shippers was 443, 459, and 511; and the number of large shippers was 11, 14, and 19. A number of the mining operators, both small and large, have more than one mining operation.

For the same period the aggregate production of the small shippers increased 80 percent and the aggregate production of the large shippers increased more than 300 percent. Although the production of the small operations increased substantially, the larger operations are now accounting for a major part of our production. In the first half of 1954, small shippers accounted for 37 percent of our total ore production but only 25 percent in the first half of 1956, notwithstanding an 80 percent increase in their total shipments. This trend will continue with opening of large mines in the Ambrosia Lake field.

The 19 largest shippers, those which produced in excess of 10,000 tons each, delivered 75 percent of the ore received at domestic mills and buying stations during the first half of 1956; 10 of these large shippers were relatively small companies. The 9 largest companies produced about 53 percent of the total tonnage delivered in the 6-month period.

Milling operations.-On December 31, 1956, there were 12 mills in operation including the AEC-owned plant at Monticello, Utah. A list of the operating mills and their capacities follows:

Total milling capacity, which at the end of 1955 was 5,500 tons of ore per day, was increased materially by the completion of 3 new mills and expansions at several exisiting plants. The estimated investment in the privately owned mills now in operation aggregates $50 million.

During 1956, contracts involving the construction of nine new mills were negotiated. A list of those mills, which should be completed in 1957 or early 1958, follows:

The estimated private investment in the mills listed above is on the order of $40 million. In addition to the mills now operating and those under contract

and construction, others are being planned by industry, including some with capacities in excess of 1,000 tons per day. The Commission has before it for consideration proposals involving the construction of 6 additional plants.

The Commission's process development program has been an important factor în speeding mill construction and expanding uranium concentrate production. New processes developed under this program have reduced production costs, increased recovery and simplified mill design and operations. This in turn has resulted in lower concentrate prices to the Commission. The Commission now has accumulated extensive operating data and also has a modern pilot plant for testing various types of ores. The availability of this plant and the operating data, together with the declassification of ore processing information, make it possible for organizations without previous uranium experience to undertake the milling projects with a minimum of preliminary work.

Ore reserves.--As of November 1, 1956, domestic ore reserves, by States, were estimated as follows:

Extensive private drilling during 1956, almost twice that of any previous year, greatly increased ore reserves. This was particulary true in the Ambrosia Lake area of New Mexico where large reserves were proved on lands previously classed as potentially ore-bearing.

It should be pointed out that AEC's ore reserve estimates are based upon the results of private development and time is required to compile the data. As a result the estimates are not always completely up to date.

Development and exploration.-During the past year, uranium development in the United States passed the pioneering boom stage and the industry now is established on a sound basis. Probably more private capital was spent on uranium development in 1956 than in any previous year. In exploration, private industry drilled approximately 4,200,000 feet in the first half of 1956 as compared with 2,900,000 feet and 2 million feet for the corresponding periods of 1955 and 1954.

Most of the 1956 drilling was done in areas where uranium deposits had previously been discovered. Many of the development programs undertaken by private companies in 1955 and 1956 were for the purpose of quickly outlining their ore reserves in order to plan mining and milling operations that would result in maximum recovery of production from these reserves by March 31, 1962, which then was the end date of the Government market. Following the Commission's announcement on May 24, 1956, of a uranium procurement program which extended the Government market to the end of 1966, plans were revised to a longer range basis. Many of the larger operators are now looking beyond 1966 to a commercial uranium market. This should result in better utilization of our valuable uranium resources and in the elimination of "crash" programs which might leave in their wake ghost camps and ghost towns.

As noted in the opening general statement, the greatest addition to our ore reserves was in the Ambrosia Lake district, near Grants, N. Mex. The large extent and substantial thickness of the ore deposits justified extensive drilling programs to depths of 400 to 1,000 feet. There are possibilities of discovering still more uranium-bearing structures in the Grants area.

The ore reserves of Wyoming and Washington were also increased as a result of 1956 development and important additions were made to the reserves of the older Uravan Mineral Belt in Colorado. The Cameron and Monument Valley districts of Arizona also developed favorably. Drilling in the Big Indian district near Moab, Utah, largely confirmed earlier estimates with no important tonnage being added.

Although the major effort was directed toward developing ore reserves, private prospecting and exploration continued active throughout the United States. However, on the basis of present information, none of the 1956 discoveries in new areas appears likely to have an important effect on our overall production and ore-reserve picture.

There has been a decline in the feverish claim-staking activity which was stimulated by the speculative market for almost any mining claim situated near a well-publicized discovery. Much of this activity contributed little, if anything, to our uranium program. It appears that the increasing difficulty and cost of finding uranium deposits is tending to reduce the amount of individual prospecting. At the beginning of the program a Geiger counter was all that was considered necessary to undertake a prospecting expedition and a number of amateur prospectors achieved success. However, as the country becomes prospected by surface and airborne methods, the search must be more and more directed toward finding concealed deposits.

Many of the important discoveries of the last 3 years have been the result of drilling on geological evidence. This type of exploration, geological investigation followed by deep drilling, requires substantial risk capital. Many mining and oil companies are now doing uranium exploration of this kind.

Government exploration drilling, which played such an important role in the early search for uranium deposits, was discontinued in April 1956, with the completion of projects initiated earlier. In 1948, when the program to develop domestic uranium production was established, there was practically no private exploration. The Commission pioneered drilling on the basis of geologic evidence in areas considerably distant from outcrops or known uranium deposits. Most of this drilling was on public domain in which private industry had not been sufficiently interested to stake claims. Prior to drilling by Commission, the unappropriated lands were withdrawn from mineral entry.

Since 1952, private exploration of all types, from the efforts of the individual prospector to extensive geological and drilling programs, has rapidly expanded. Private uranium exploration in 1956 was far greater than the combined Government and private effort of 1953 when the Commission drilling program reached its peak. There no longer is a need for the Government to do physical exploration.

We have requested restoration to public domain of all the public lands withdrawn for Commission exploration except for 50 square miles on which commercial uranium deposits were discovered at Government expense. These deposits will be available for lease when the ore is needed.

The Commission's exploration program is now directed toward the evaluation of the results of private exploration, the appraisal of our potential resources of nuclear fuels for the long-range atomic power development, and the development of geological information relating to uranium ore deposits.

IV. INFORMATION BASE FOR THE ATOMIC ENERGY INDUSTRY

During 1956 there was continued growth of activities designed to conevy technical information to the atomic energy industry on the part of Government and of industrial groups, scientific and professional journals, the business press, commercial book publishers, and other private media. More than 5,000 articles and papers (listed in the AEC's Nuclear Science Abstracts) dealing with peaceful aspects of atomic energy were published by non-Government organizations during the year. The Commission increased the accumulation of unclassified data available for general use by declassifying and issuing 10,700 existing technological and basic science reports; by issuing in unclassified form approximately 2,300 new reports; and by starting a program of summarizing and organizing technical knowledge in books and current technical reviews.

BUSINESS AND TECHNICAL PRESS

During the year almost all scientific, technological, labor, and business journals published articles or in some cases entire special issues and supplements on various practical applications of atomic energy. The number of such articles has reached large proportions. For 1 month alone (August 1956), a sampling of 12 journals showed 40 special atomic industrial articles, which ranged from engineering designs to insurance problems; from special materials to economics. In addition, the news and announcement sections of most of these journals.