Economics Of Raw Materials Preparation

The economics of mining has traditionally been viewed quite apart from the economics of blast furnace operations. It was realized, of course, that blast furnaces would operate best with good raw materials, but the shipping grade of ore, for example, was decided by a sort of collective bargaining process between the ore producers and the blast furnace operators. The mine operators had to keep their costs down, and were usually successful in convincing management that the ore in any particular deposit was endowed by nature with a certain iron content and that the mine grade could not be raised beyond a certain economic limit. The blast furnace operators would have liked a better grade, but as long as they were able to make a fairly good showing it was more or less accepted that they had to take the ore as it came. The mine operators were able to ship to the nation's blast furnaces thousands of tons of iron ore that would be completely unacceptable by present-day standards. As late as the early 1950's, the major steel companies were witnessing an actual decline in the iron content of their incoming ore supply as the mining companies mined progressively leaner material and upgraded it only enough to pass competitive market requirements