Trends

DEFENSE Materials Procurement Agency has been moving rapidly to encourage copper industry expansion programs. Although copper production is at a high level, a shortage exists on a world-wide basis as well as on the domestic scene. Projected expansion programs will not ease this current demand for most of them are 2 to 5 years off. Refining facilities are adequate but there is a shortage of ore and scrap, and it is for this reason that the expansion programs are directed at developing more sources of supply. The domestic expansion programmed thus far and understood to have been arranged with price escalation should the domestic price go to 271/20, were summarized by American Metal Markets as follows (dates of announcement are given in parenthesis: .1-Copper Cities Mining Co.'s, $15,000,000 expansion near Miami, Ariz., to be operating about 1954. DMPA will buy 22,500 tons of copper a year up to a given amount on an agreed price of 23¢ per pound, with some exceptions and depending upon salability at a higher price to other purchasers in the U. S. (September 25th). 2-An RFC loan of $60,000 to North Butte Mining Co. to be paid off on the basis of deliveries at a purchase price of 241/20 per pound (September 25th). 3-A $25,000,000 expansion program by Phelps Dodge to provide 38,000 tons per year by late 1954. DMPA would purchase it at a price of 22¢ per pound up to 112,500 tons providing other purchasers in the U. S. will not pay a higher price (September 26th). 4-Anaconda Copper Mining Co. $40,000,000 expansion in Nevada to provide more than 30,000 (might be increased to 45,000) tons per year. DMPA would purchase the copper at 250 per pound for a limited period of time if it is not salable to industrial users at above this price. Production would start around 1953 (November 14th).