Notes on Conservation of Lake Superior Iron Ores1

THE questions as to what grades of ore it pays to conserve for the future, and the valuation of low-grade reserves, are becoming immediate and definite as applied to individual ore deposits, and seem to call for some sort of quantitative answer. Both opinion and practice involving these questions differ widely. The number of variables in this problem is so large that final solution will perhaps never be agreed upon, yet there seem to me to be certain controlling factors which can be placed in quantitative relation and serve to reduce the number of variables which it is necessary to consider in a given instance. I assume that it will not pay either for the individual or for the State to conserve any ore when the present cost of conservation (by stock piling or otherwise), when compounded at 6 per cent. interest for the number of years which would elapse before this ore is used, will exceed the profit which the ore will yield when it is used. It may be urged that any loss to the individual may be made up in gain to the State. This might be true if there was any definite limit to the amount of iron ore, but when we remember that iron makes up .4 per cent. of all the rocks of the earth and the amount of rock carrying iron in excess of 20 per cent. is for practical purposes, unlimited, it is apparent that posterity is assured of its iron ore. The changes will be mainly in methods and cost of extracting the ore. Therefore, any expenditure of money or effort now, which when compounded will exceed the worth of the effort or money needed in the future to utilize the iron, is a net loss both to the individual and to the community.