MAJOR ACTIVITIES IN ATOMIC ENERGY PROGRAMS, JULY-DECEMBER 1955 Raw Materials Free-world uranium production and receipts of uranium in concentrates from both domestic and foreign sources continued to show substantial increases. Further expansion in production will result from the operation of new ore processing facilities under construction in the Union of South Africa, Canada, and the United States. DOMESTIC PRODUCTION Domestic uranium ore and concentrate production continued to rise, maintaining the United States' status as one of the leading uranium producers. Production will increase further with the expansion of present mills, the completion of new facilities now under construction, and the construction of additional mills upon completion of contracts now under negotiation. Ore Production During the last 6 months of 1955, the number of producing mines increased to an estimated 925, as compared with approximately 850 as of June of this year. Although the rate of increase in number of producing mines slowed considerably, the production rate from existing mines continued its sharp increase. Uranium producing areas were extended by the first commercial deposits of uranium in Oregon and Texas and new areas of potential production were developed in North and South Dakota and Alaska. Ore Processing Ore production is in excess of current processing capacity but additional mill facilities are being provided at a rapid rate. Except for the Commission's mill at Monticello, Utah, all expansions and new mills are privately financed. Stockpiles of ore in excess of normal plant requirements are found only at locations where new mills have just been completed or at locations where new mills are either planned or under construction. Contracts were completed between the AEC and the Rare Metals Co. and the Trace Elements Corp. for the construction and operation respectively of mills at Tuba City, Ariz., and at Maybell, Colo., and construction of these mills was begun. Two other mills, at Edgemont, S. D., and Moab, Utah, are under construction, and nine mills are in operation. A contract was signed in November with Continental Uranium, Inc. for construction of a mill in the vicinity of La Sal, Utah. On the average, processing plants on the Colorado Plateau were operating at slightly above their rated capacities, accounting for the record levels of production reached during this period. New Ore-Buying Station The Globe, Ariz., ore-buying station and sampling plant was officially opened on July 5, 1955. Uranium From Phosphates Small tonnages of uranium concentrates continued to be produced and shipped as a byproduct of the recovery of phosphate chemicals and fertilizers from Florida phosphate rock. FOREIGN ACTIVITIES Belgian Congo The Shinkolobwe mine in the Belgian Congo continues as a significant producer of uranium concentrates. South Africa Production from South Africa increased with the addition of two new processing plants, bringing to 13 the number of plants now in operation. The Combined Development Agency, a joint United Kingdom-United States-Canadian organization for procurement of uranium and thorium supplies, has approved construction of one additional mill, bringing to 16 the total number of plants authorized. Canada In August, the Canadian Government announced that March 31, 1956 would be the deadline for negotiating further contracts for ura nium in high grade concentrates with private companies. To qualify for a contract, the contractors must present reasonable evidence that production will commence about April 1, 1957. Contracts will terminate March 31, 1962. The Eldorado Mining and Refining Co., Ltd. has announced plans to expand the capacity of its present mill in the Beaverlodge area of northern Saskatchewan. Substantial ore reserves have been outlined as a result of the recently completed development program at the nearby Verna property, which includes ground under lease to Eldorado. The expanded mill will also derive some of its ore supply from several small privately operated mines. The large mill of Gunnar Mines, Ltd. in the Lake Athabaska area in northern Saskatchewan started up in August and the first unit is now operating at rated capacity. In the Blind River area of Ontario, first production of uranium concentrates began with start-up of the milling plant of Pronto Uranium Mines, Ltd. in late August. Construction of the two milling plants of Algom Uranium Mines is proceeding on schedule. Consolidated Denison Mines, Ltd. began construction of a milling plant of substantial capacity, with operation expected early in 1957. In the Bancroft area of eastern Ontario, Bicroft Uranium Mines, Ltd. is constructing a mill which is scheduled to begin treating ore late in 1956. The redesigned Port Hope refinery operated by Eldorado Mining and Refining Co., Ltd. is now producing metal grade (highly concentrated) uranium oxide. Australia Production of low-grade mechanical concentrates from the Radium Hill mine and treatment plant continued at a normal rate, with shipments being made to the Port Pirie chemical treatment plant, which began operation in mid-August. Shipments continued to be received from the Rum Jungle ore processing plant. Portugal Portuguese operations continued at a normal rate during this period. DOMESTIC EXPLORATION Increases in domestic ore reserves, both on and off the Colorado Plateau, again reflected the greatly expanded exploration activity of private industry. This has permitted orientation of Government ex ploration activities performed by the Commission and the U. S. Geological Survey to appraisal of results of private exploration and execution of basic geologic programs. Private interests have now assumed virtually all drilling activities in connection with uranium exploration and development. Government drilling, restricted to support of geologic investigations, amounted to less than 200,000 feet in the last half of 1955 in comparison to 358,000 feet in the first half. The first commercial deposits of uranium were found in Oregon; significant reserves are being developed in the Dakota plains lignite fields; and a considerable tonnage of uranium ore has been found in Karnes County, Texas. Recent preliminary investigations indicate the possibility of an important uranium deposit on Prince of Wales Island, southeastern Alaska. A major discovery was made in the Ambrosia Lake area of McKinley County, N. Mex. during the period. Preliminary results of drilling by private companies indicate that reserves in the area may amount to several million tons. PROCESS DEVELOPMENT Work on the development of various uranium recovery processes continued at the U. S. Bureau of Mines Experimental Station at Salt Lake City, Utah, the National Lead Co., Inc. operating the Raw Materials Development Laboratory at Winchester, Mass., Battelle Memorial Institute, the Dow Chemical Co., and Arthur D. Little, Inc. Laboratory and bench scale studies on Chattanooga uraniferous shale continued at Columbia University. Production The production of the various special nuclear materials during the last half of 1955 equalled or exceeded the quantities produced during the first half of the year. Construction of the gaseous diffusion facilities at Portsmouth, Ohio, is ahead of schedule as the last building is nearing completion. Construction of additional feed processing facilities which began last March at Fernald, Ohio, St. Louis, Mo., and Paducah, Ky. is under way. Privately Owned Feed Material Facilities On October 27 the Commission announced it would accept proposals from industrial concerns for the manufacture of uranium feed material. Deadline for submission of proposals is October 1, 1956. Specifically, the Commission is interested in receiving proposals from qualified firms to process, over a 5-year period, uranium ores or concentrates to either uranium trioxide, uranium tetrafluoride, or uranium hexafluoride, with deliveries to begin about April 1, 1959. The Commission will consider proposals for any production rate up to a maximum of 5,000 tons U2O, equivalent per year. Proposals may be based on arrangements whereby the U3O, concentrates are supplied by the Commission and refined salts returned. Alternatively the Commission will consider proposals for direct purchase of the refined products from a company having or obtaining its own supply of uranium ores or concentrates. In the latter connection the Com.nission will consider appropriate modifications in contracts now in effect between the AEC and suppliers of uranium concentrates. During November a "Formal Inquiry for Purchase of Uranium Products from Private Industry" was sent to about 600 companies. These companies and other interested persons were invited to a general orientation meeting designed to present the scope and magnitude of the undertaking. Proper security clearances were required for attendance at the sessions. More than 100 persons representing 70 companies attended. The meeting was held in Washington on December 8. MISSISSIPPI VALLEY GENERATING CO. CONTRACT By letter dated July 16, 1955, the Director of the Bureau of the Budget confirmed an oral notification of July 11 to the Commission that the President had accepted the commitment of the mayor of Memphis, Tenn., that the city would construct a powerplant adequate to serve the people of that community without requesting any funds from the Federal Government toward construction; that in this situation there was no longer any requirement for the arrangement made with the Mississippi Valley Generating Co.; and that the President was requesting the Commission to take immediately the necessary steps to bring to an end the relationship between MVGC and the United States. On July 11, 1955, the Commission's General Counsel submitted to the Commission his opinion that the MVGC contract had become effective pursuant to legal authority and constituted at that date a valid obligation of the Government. On July 14, 1955, the Commission requested the views of the Comptroller General on the course of action it might pursue to accomplish the direction of the President and on the availability of funds appropriated to the Commission for expenditures in connection with such action. |