Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

Strategic Materials: Technologies To Reduce U.S. Import Vulnerability

May 1985

NTIS order #PB86-115367 Recommended Citation: Strategic Materials: Technologies to Reduce U.S. Import Vulnerability (Washington, DC: U.S. Congress, Office of Technology Assessment, OTA-ITE-248, May 1985).

Library of Congress Catalog Card Number 84-601153

For sale by the Superintendent of Documents U.S. Government Printing Office, Washington, DC 20402 Foreword

This report presents the findings of OTA’s assessment of Strategic Materials: Technologies to Reduce U.S. Import Vulnerability. The study was requested by the House Committee on Science and Technology and the Senate Committee on Commerce, Science, and Transportation. The United States imports well over $1 billion worth of chromium, cobalt, manganese, and platinum group metals annually. Many of the uses of these metals are essential to the industrial economy and the national defense. The United States imports virtually all of its requirements for these metals; their production is highly concentrated in two regions of the world: the Soviet Union and southern Africa. The potential for interruption of supplies from these sources has heightened congressional interest in alternatives to continued import dependence, This study assesses the technical alternatives to continued reliance on southern Africa and the U.S.S.R, for strategic metals. Promising opportunities for domestic and diversified foreign production and for conservation and substitution are identified for each metal. Technical, economic, and institutional barriers to the implementation of the alternatives are reviewed and governmental options to overcome those barriers are identified and analyzed. We are grateful for the assistance of the project advisory panel, workshop participants, contractors, and the advice of many government agencies in the United States and Canada. As with all of our studies, however, the content of the report is the sole responsibility of the Office of Technology Assessment.

JOHN H. GIBBONS Director Technologies to Reduce U.S. Import Vulnerability Advisory Panel

Walter S. Owen, Chairman* Professor of Materials Science, Massachusetts Institute of Technology

Arden Bement William A. Owczarski Vice President, Technical Resources Manager, Technical Planning TRW, Inc. Pratt & Whitney Aircraft Group Edwin Clark R. Byron Pipes Senior Associate Director, Center for Composite Materials Conservation Foundation University of Delaware Tom Clough R. K. Pitler Director of Technology Senior Vice President and Atlantic Richfield Co. Technical Director Allegheny-Ludlum Research Center Robert G. Dunn Senior Vice President Dennis Readey AMAX Metals Group Head, Department of Ceramic Engineering Ohio State University Michael E. Fisher professor of Chemistry, Physics, and James K. Sebenius Mathematics Assistant Professor Cornell University John F. Kennedy School of Government Harvard University Herbert H. Kellogg Professor of Extractive Metallurgy Albert Sobey Columbia University Director, Energy Economics General Motors Corp. Hans Landsberg Senior Fellow Alex Zucker Resources for the Future Associate Director Oak Ridge National Laboratory Ernest K. Lehmann president E. K. Lehmann & Associates Jessica Tuchman Matthews Vice President World Resources Institute

● Robert Ellsworth resigned as panel chairman in August 1983, when he became Chairman of the Board of Howmet “1’urbine Components CorfI Walter S, Owen became chairman in September 1983.

iv —

OTA Project Staff on Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

Lionel S. Johns, Assistant Director, OTA Energy, Materials, and International Security Division

Audrey Buyrn, Industry, Technology, and Employment Program Manager

Lance N. Antrim, Project Director

Wendell Fletcher John Newman* Kirsten U. Oldenburg Katherine Gillman Margaret Hilton Karen Larsen Patti Litman* Richard Parkinson Diana Rowen Nick Sundt* Paula Wolferseder*

Contractors

Charles River Associates, Inc. INCO Research and Development Center Earth Resource Associates Sierra Research J. K. Tien Massachusetts Institute of Technology George St. Pierre James A. Broadus Kathryn Van Wyk David Stauffer Susan Stauffer DMEA, Ltd. Judith Bolis Iris Goodman Greg Shuey

Administrative Staff Patricia Canavan Carol Drohan Andrea Amiri

* lmhouw (.ontra(. tor Advanced Materials Workshop Participants

H. Kent Bowen Robert Pohanka Materials Processing Center Office of Naval Research Massachusetts Institute of Technology Arlington, VA Cambridge, MA Dennis Readey John Busch Department of Ceramic Engineering Massachusetts Institute of Technology Ohio State University Cambridge, MA Columbus, OH Joel Clark David W. Richerson Department of Materials Science and Garrett Turbine Engine Co. Engineering phoenix, AZ Massachusetts Institute of Technology B. Walter Rosen Cambridge, MA Materials Science Corp. Tsu-Wei Chou Spring House, PA Center for Composite Materials Elaine Rothman University of Delaware Massachusetts Institute of Technology Newark, DE Maxine Savitz Arthur Diness Consultant to the Garrett Corp. Office of Naval Research Washington, DC Arlington, VA Thomas Schmid Christopher Hill Pratt & Whitney Aircraft Co. Congressional Research Service W. Palm Beach, FL Library of Congress Samuel Schneider Washington, DC Inorganic Materials Division Robert Katz National Bureau of Standards Army Materials & Mechanics Research Washington, DC Center Albert Sobey Watertown, MA Director, Energy Economics George B. Kenney General Motors Corp. Materials Processing Center Detroit, MI Massachusetts Institute of Technology Conrad Trulson Cambridge, MA Union Carbide Corp. Robert E. Piret Danbury CT Massachusetts Institute of Technology Cambridge, MA Acknowledgments

OTA also wishes to acknowledge the contributions and cooperation of’ the following agencies and organizations: Allison Division, General Motors Corp. National Association of Recycling Industries Amax, Inc. Metal Properties Council, Inc. American Society for Metals National Science Foundation Automotive Dismantles & Recyclers National Materials Advisory Board Association North Atlantic Treaty Organization The Broken Hill Proprietary Co., Ltd. Advisory Group for Aerospace Research and Elkem ,Metals Co. Development The Ferroalloy Association Oak Ridge National Laboratory Garrett Turbine Engine Co. Pratt & Whitney Aircraft Co. General Electric Co. Union Carbide Interlake, Inc. U.S. Congress Globe Metallurgical Division Congressional Research Service Government of Canada General Accounting Office Energy, Mines and Resources Canada U.S. Department of Commerce National Defence College International Trade Administration Gulf Chemical & Metallurgical Co. National Bureau of Standards GTE Corp. U.S. Department of Defense Hal] Chemical Office of the Secretary Inco, Ltd. U.S. Air Force Inmetco, Inc. Army Materials and Mechanics Research International Development and Cooperation Center Agency U.S. Department of Energy Trade and Development Program U.S. Department of the Interior Manufacturers of Emission Controls Bureau of Mines Association Geological Survey National Aeronautics and Space Administration

In addition, OTA wishes to express its appreciation to the many individuals, organizations, and companies who acted as reviewers for all or part of this report.

vii Contents

Chapter Page 1. Summary- ...... 3 2. An Introduction to Materials Import Vulnerability ...... 56 3. Critical Materials Consumption: Current Patterns and Trends ...... 59 4. Security of Supply...... 83 5. Strategic Material Supply ...... 125 6. Conservation of strategic Material ...... 215 7. Substitution Alternatives for Strategic Materials ...... 263 8. Policy Alternatives for Strategic Materials ...... 331 Appendix A: Review of Previous Lists and Methods of Selection ...... 383 Appendix B: Import Sources of Materials Judged to be Nonstrategic, 1978-82 ...... 386 Appendix C: Overview of Second-Tier Materials ...... 388 Index ...... 401

. . Vlll CHAPTER 1 Summary Contents

Introduction ...... 5 Identification of Strategic Resources ...... ’11 Essential Uses of Strategic Materials ...... 12 Chromium ...... ,,...... 12 Cobalt ...... 13 Manganese ...... 13 Platinum Group Metals ...... 13 Outlook for the Future ...... 13 Production of Strategic Materials ...... 14 Historical Perspective ...... *.., . . . . . 15 Technological Approaches to Reduce Materials Import Vulnerability...... 17 Summary of Technological Approaches ...... 17 Implementation of Technological Approaches ...... 29 Mineral Production and Metal Processing ...... *.., ...... 31 Substitution Alternatives ...... 33 Conservation Approaches ...... 36 List of Tables Table No. A. Domestic Consumption and Production of Strategic Metals ...... 7 B. U.S. Imports of Strategic Materials–1982 .. .,. ,~, ...... 10 1-1. Summary of Most Promising Technological Approaches to the Reduction of Strategic Materials Import Vulnerability. , ...... 18 1-2. Substitution for Chromium in Metallurgical Applications...... 22 1-3. Potential New Foreign Cobalt Production ...... 23 l-4. Current and Projected Manganese Consumption in U.S. Steel Production ...... 27 l-5. Outlook for Development of Known Domestic Deposits of Strategic Resources ...... 31

List of Figures Figure No. Page l-1. Regional Distribution of Strategic Material Production ...... 12 1-2. PGM Demand vs. Potential Supply From Recycling ...... 29 CHAPTER 1 Summary

Three nations, South Africa, Zaire, and the all of the alternatives must overcome substan- U. S. S. R., account for over half of the world’s tial economic and institutional barriers before production of chromium, cobalt, manganese, their full promise to reduce U.S. reliance on and platinum group metals. These metals are southern Africa and the U.S.S.R. for strategic essential in the production of high-temperature materials can be realized. alloys, steel and stainless steel, industrial and Government actions to assure secure sup- automotive catalysts, electronics, and other applies of metals critical to the United States have plications that are critical to the U.S. economy been limited largely to reliance on the national and the national defense, defense stockpile to ensure the availability of With minor exceptions, there is no domes- materials required for national defense in time tic mine production of any of the four metals, of war, leaving it to the free market to provide The Government maintains a material stock- a diversity of suppliers for the industrial econ- pile but its contents are reserved for national omy. These actions are appropriate for normal security purposes only. As a result, the U.S. in- commerce and for periods of military conflict, dustrial economy is vulnerable to a variety of but they are not intended to protect American supply disruptions that may arise in times of industry from disruptions of the supply of peace. Disruptions of supply, such as the Cana- chromium, cobalt, manganese, and platinum dian nickel strike in 1968 and the rebel inter- group metals that might occur as a result of po- ruptions of cobalt production in Zaire in 1978, litical disturbances, strikes, changes in politi- can have a major impact on U.S. industries cal ideology or other non-war-related factors which must, in times of shortages, either com- affecting supplier nations. pete for limited supplies of strategic metals or There is no single generic approach to re- limit production of products that use strategic duce materials import vulnerability–to be ef- metals. Competition for supplies can result in fective, different actions must be taken for each price increases that may eventually be passed metal under consideration. An overall strategy on to consumers, while reduction or cessation to reduce U.S. reliance on uncertain sources of production may result in loss of market of supply of strategic materials should be based share or permanent withdrawal from some on a combination of three technical approaches: markets, weakening the competitiveness of U.S. industries. ● increase the diversity of world supply of strategic metals through the development In the longer term, there are many techni- of promising deposits, both foreign and do- cal alternatives that can provide more secure mestic, outside of southern Africa and the sources of supply, improve the prospects for Soviet bloc and through exploration for conservation and recycling of strategic mate- new deposits of strategic materials; rials, or speed the acceptance of substitute ● decrease demand for strategic metals materials that reduce the need for strategic through the implementation of improved materials. manufacturing processes and recycling of Few of these technical alternatives can be im- strategic materials from scrap and waste; plemented immediately on the occurrence of and a supply disruption: some are near commer- ● identify and test substitute materials for cialization, others require further testing and current applications and develop new ma- evaluation, and still others are only in the re- terials with reduced strategic material con- search and development (R&D) stage. Nearly tent for future applications,

3 4 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

There is a wide range of actions that the Gov- used in many applications now dependent on ernment may draw from to implement some strategic materials. International competition or all of these approaches. These actions vary for supremacy in these emerging markets is in cost, degree of Government involvement, strong, with some other countries, including probability of success, and contribution to the Japan, placing greater emphasis than the United overall strategy for reducing vulnerability. The States on technical education and training of actions include: workers in these fields. Increased Government support to U.S. educational institutions in con- Collection and analysis of data and the dis- junction with the advanced materials industry semination of results to industry. Government may be needed to ensure the long-term com- already plays a key role in provision of essen- petitiveness in these fields. tial information about strategic materials, An expanded role, including more emphasis on Development of alternative technologies and identification of foreign investment oppor- materials. In cases where the principal barrier tunities for U.S. firms abroad, sponsorship of to commercialization of a technology is the cost a substitution information “bank,” develop- of demonstration and pre-commercial development of better data about domestic mineral ment, or where benefits arise from having the occurrences, and periodic reexamination of technology or material “on-the-shelf,” the Gov- trends in strategic materials recycling and ernment could support the construction and conservation, would help Government policy- operation of demonstration plants or the test- makers adjust strategies to changing circum- ing and evaluation of substitute materials. This stances, and encourage private actions to re- would reduce industry response time in an duce vulnerability, emergency, Support for research and development and for Financial assistance for domestic industry. mineral exploration. Implementation of any The economics of nearly all opportunities for technical approach to reduce import vulner- domestic mineral development are discourag- ability will assume a continuing R&D effort, ing to potential investors. If the benefits of do- most of which will continue to need Govern- mestic mineral production are desirable from ment support. Strategic materials R&D pro- the public’s perspective, however, assistance grams, decentralized among many agencies, could be provided in the form of subsidies, pur- need better coordination if common objectives, chase commitments, loan guarantees, tax in- goals, and purposes are to be met. centives or other Government financial aid. Federal funding of strategic materials R&D Such programs need not be limited to mineral in the areas of recycling, substitution, and ad- production: processing of ores and metals, pro- vanced materials appears adequate to keep duction of substitute materials, and operation pace with the changing materials mix in the of recycling facilities could also be encouraged economy. In the area of mineral exploration, by similar programs. Financial assistance pro- prospects for a major domestic discovery of grams could be expensive, however, so that one or more of these materials are not prom- their cost effectiveness, compared to other ising, but could possibly be enhanced through alternatives and to reliance on the free market, greater support of public and private explora- needs to be carefully considered. tion research, including basic research on geo- Role of Government in reducing materials im- logical theories of mineral occurrence, import vulnerability. The degree to which the Gov- proved geophysical, geochemical, and drilling ernment should actively support activities to equipment, and more intense study of the re- reduce materials import vulnerability ultimately source potential of Federal lands. depends on the perceptions of policymakers as Assistance for education and training. Ad- to the degree of harm that could result from vanced materials, now in their infancy, hold supply interruptions, the probability that such promise of altering the mix of basic materials interruptions may occur, and the role policy- .

Ch. 1—Summary ● 5 makers see for the Government in dealings of the multiplicity of Government activities that with the private sector. In addition, the effec- already affect the strategic materials issue and tiveness of the technical approaches that Gov- the long time required to implement most of ernment chooses to pursue depends, to some the technical approaches, the Government degree, on its commitment to their success and would need a process for the periodic reeval- to the coordination of the approaches in a uation of strategic materials objectives and of unified strategy directed toward reducing ma- the effectiveness of programs implementing the terials import vulnerability. The effectiveness technical approaches. of Federal policies also depends on establish- The following sections summarize the backing goals for strategic materials policy, identi- ground to strategic materials issues and the fying the most promising technical approaches most promising technical approaches to reduce to reduce vulnerability for priority materials, the vulnerability of the United States to inter- coordinating governmental actions, and en- ruptions of supplies of strategic materials. couraging industrial and academic activities in support of the technical approaches. In view

Introduction

The United States is well endowed with portation systems to sabotage and guerrilla many natural resources. Timber, coal, water, actions combine to raise questions about the and agricultural resources are the envy of the reliability of mineral supplies, regardless of the rest of the world. The endowment is not com- good intentions or financial needs of the gov- plete, however. The United States is dependent ernments in power. on foreign suppliers for many mineral resources. Dependence of the United States on a few The Soviet Union and the nations of southern nations of uncertain reliability for materials Africa are suppliers of many of the minerals that are essential to many industrial and de- and metals that the United States must import. fense uses has heightened concern over mate- Although in some cases these nations play only rials and minerals policy in recent years. This a limited role in the world supply of raw ma- concern is not new; since World War II U.S. terials, for some materials they quite literally policy makers have sought ways to reduce U.S. dominate the market. vulnerability to interruptions of supplies of Mine production of cobalt, chromium, man- strategic materials. ganese, and platinum group metals, all essen- The most visible policy taken by the United tial to defense and to the civilian economy, is States to guard against disruptions of supplies concentrated in the Soviet Union and south- of strategic materials is the National Defense ern Africa (see map on pp. 8-9 for the world- Stockpile (see box A). The objective of the wide distribution of mine production of these stockpile is to support U.S. defense, industrial, metals), Reliance on a potential adversary such and essential civilian requirements during a as the Soviet Union for materials essential to prolonged military conflict or declared national defense and industry is an obvious area for emergency, If properly stocked and maintained, concern. Nor is it certain that supplies from the stockpile can be effective in coping with nations in southern Africa will continue with- a disruption of supplies during a war or ex- out interruption: the division of nations on tended military conflict. racial grounds, the role of Soviet influence and Cuban military involvement, the internal po- However, the defense stockpile does not pro- litical division of key mineral-producing coun- tect, nor is it meant to protect, American in- tries, and the vulnerability of mines and trans- dustrial and other civilian consumers from 6 ● Strategic Mater/a/s: Technologies to Reduce U.S. Import Vulnerability

Box A.-The Strategic Materials Stockpile

For over four decades, the strategic and critical materials stockpile has been seen as a kind of insurance policy for safeguarding the United States against the effects of a supply emergency. The stockpile, however, is only intended to safeguard military, industrial, and essential civilian needs in times of war or declared national emergency, and is not a general-purpose source in an emergency. First established in 1939, the stockpile was built up rapidly in the post-World War II and Ko- rean War era, when the goal of the stockpile was to accumulate a 5-year supply of critical materials. Many of the materials now in the stockpile date from this period, and maybe antiquated due to changes in material specifications. During the Vietnam War period, substantial amounts of stockpiled material were declared excess to stockpile needs and sold by successive administrations—a circumstance that led to charges that the stockpile was being used to keep metal prices stable during the Vietnam War. (Stockpile goals had been reduced from the initial 5 years to 3 years in 1958, and to 1 year in 1972, before being raised back to 3 years during the Ford Administration.) In 1979, Congress reaffirmed its commitment to stockpiling through enactment of the Strate- gic and Critical Material Stockpiling Revision Act (Public Law 96-41). The law stated that the stockpile “should be sufficient to sustain the United States for a period of not less than 3 years in the event of a national emergency. . . “ and “is to serve the interest of national defense only and is not to be used for economic or budgetary purposes.” The 1979 law also established a stockpile transaction fund, under which materials can be purchased for the stockpile from sales of excess materials. At the time the law was passed, stockpile inventories in excess of the 3-year requirement were valued at $4.9 billion. Acquisition needs were estimated to be $12.9 billion. In March 1981, President Reagan announced a major new stockpile acquisition program, aimed at meeting stockpile goals for 15 priority materials. For fiscal year 1985, the Administration is seeking to sell $78 million in excess materials and to purchase $120 million for the stockpile. However, the request is significantly below the amount required to meet stockpile goals. At present spending rates, it would take 100 years to meet stockpile goals. The Federal Emergency Management Agency (FEMA) oversees the stockpile, and submits to Congress the Annual Materials Plan (AMP) for the buying and selling of materials for the stockpile. An AMP steering committee, comprised of 12 agencies and chaired by FEMA, develops the annual plan. Actual management of the stockpile sites, which are dispersed throughout the United States, is conducted by the General Services Administration. Alternatives to acquisition and sale of stockpile materials are under consideration, including the potential for technology to upgrade stockpiled materials to today’s standards. For example, most of the cobalt in the stockpile does not meet current industry requirements, and therefore may need replacement. The American Society of Metals, in a recent report to FEMA, suggested that U.S. firms be given stockpile samples to demonstrate whether the out-of-date materials could be processed to meet current standards. If so, some materials already in the stockpile could be readied for use in an emergency, and some materials may not need to be replaced through purchase. Barter is an alternative means of obtaining materials for the stockpile. The U.S. Government operated a barter program under the Department of Agriculture from 1950 to 1973, which disposed of surplus agricultural commodities and acquired strategic materials for the stockpile. The total value of agricultural exports under this program was $6.65 billion. The barter program was suspended in 1973 when agricultural surpluses were drawn down, and stockpile goals were changed. In 1981, the U.S. Government again became involved in barter on a limited basis when it concluded three Jamaica bauxite-dairy barter agreements worth $47 million, but a formal barter program has not been reestablished. Approximately 20 barter bills have been introduced in the 98th Congress. The Administration has established a working group on barter to review proposals on a case-by-case basis. Ch. 1—Summary ● 7

Table A.— Domestic Consumption and Production of Strategic Metals — .— Apparent Domestic production consumption primary scrap Price Chromium: (tons x 1,000) $/M.T. b 1979 ...... 586 0 67 54-58 1980 ...... 567 0 72 54-58 1981 ...... 533 0 70 51-55 1982 ...... 333 0 63 48-52 1983 ...... 334 0 78 48-52 Cobalt: (pounds x 1,000) $/pound 1979 ...... 18,806 0 1,170 24.58 1980 ...... 17,054 0 1,183 25.00 1981 ...... 12,532 0 972 19.73 1982 ...... 11,452 0 871 12.90 1983 ...... 15,712 0 724 12,50 Manganese: (tons x 1,000) $/LTU C 1979 ...... 1,250 31 0 1,40 1980 ...... 1,029 23 0 1.70 1981 ...... 1,027 24 0 1.72 1982 ...... 672 4 0 1,58 1983 ...... 730 4 0 NA Platinum group $/troy ounce metals: (troy oz x 1,000) Platinum Palladium 1979 ...... 2,992 9 309 352 113 1980 ...... 2,846 3 331 439 214 1981 ...... 2,445 7 392 475 130 1982 ...... 1,822 9 344 475 110 1983 ...... 2,464 9 287 475 —130 aAP~a~~nt ~OnSUmptlon eqUalS total Imports minus exports plus domestic production PIUS Increases of stocks and Inventories bchromlum ~rlce ,s for metric tonnes of Transvaal ore. fob South Africa CLTU (long ton unit) IS the metal content of one long ton of one percent grade ore It IS equivalent to 224 pounds of contained metal NA—nol available SOURCE US Department of the lnterior, Bureau of Mines supply disruptions that result from economic The advantages and disadvantages of various or foreign political disturbances. The concen- types of economic stockpiles have been the sub- tration of supply of important minerals in a few ject of much study. (See, e.g., OTA’s, An As- countries, combined with anxieties aroused by sessment of Alternative Economic Stockpiling the success of the oil producers’ cartel in the Policies, OTA-M-36, August 1976.) 1970s, has led to calls for materials policies that protect the Nation against supply disruptions The second approach is technological. Through in a wider range of scenarios than those con- a combination of technical advances in mineral templated under Defense Stockpile policies. production, conservation, and materials substitution, the requirements for imported stra- Two general approaches have been proposed tegic materials can be lessened and the reli- to reduce materials import vulnerability in non- ability of supplies can be increased. war scenarios. One is to establish uneconomic stockpile, similar to the defense stockpile, but This assessment concentrates on the role of which maybe used in times of economic dis- technology in reducing the vulnerability of the ruption rather than military conflict. The pur- United States to interruptions of supply of stra- pose of such a stockpile would be to reduce the tegic materials. The technical approaches may impacts to the U.S. economy from peacetime be directed either toward developing alterna- market and supply disruptions. However, there tive sources of supply and alternative technol- is considerable skepticism on the part of indus- ogies for use in cases of supply interruption or, try that an economic stockpile could be man- in the longer term, toward developing new aged without causing market disruptions itself. materials and processes that significantly re- 8 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

Distribution of Mine Production of Cobalt, Ch

Canada Finland Turkey Philippines Cobalt 8% Chromium 4% Chromium 6% Chromium 5% 6 % PGM Cobalt 3%0 Cobalt 4% China Cuba USSR Manganese 6% Australia Cobalt 6% Chromium 33% Cobalt 5% India Cobalt 8% Manganese 8% Mexico Chromium 3% Manganese 32% Manganese 2% Manganese 6% PGM 49% Brazil Chromium 4% Albania Chromium 5% Manganese 11%

SOURCE Office of Technology Assessment, from U S Bureau of Mines data .

Ch. 1—Summary ● 9

m, Manganese and Platinum Group Metals—1981

Zaire South Africa Cobalt 47% Chromium 34% Gabon Manganese 23% PGM 44% Manganese 9% Botswana Zimbabwe Chromium 5% Cobalt 1% Zambia Cobalt 15%

Philippines 10 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

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Ch. 1—Summary ● 11 duce the need for strategic materials, The va- of the current policy of supporting the defense rious technological approaches identified are stockpile and, potentially, the establishment of distinct from, but may be combined with, the an economic stockpile. nontechnical alternatives, that is, continuation

Identification of Strategic Resources

What makes a material strategic? Two fac- relies on Canada for its supply, 33 commodities tors must be considered: the critical nature of remain. This list can be reduced further by its uses and the vulnerability of its supply. The eliminating the materials which have a high de- criticality of a material is measured by its degree of geographical and political diversity in gree of use in applications essential to the their production. United States, both civilian and military. Vul- The result is a list of 13 minerals and mate- nerability is assessed on the basis of the risk rials that are essential to the national economy that the supply of the material may be inter- and whose supply is relatively limited and vul- rupted, and the scale and duration of the po- nerable to interruption. The regional distribu- tential interruption. Thus, a strategic material tion of the production of these 13 strategic may be briefly defined as follows: materials is shown in figure 1-1. For six of the A strategic material is one for which the materials in the figure, beryllium, chromium, quantity required for essential civilian and cobalt, industrial diamonds, manganese, and military uses exceeds the reasonably secure platinum group metals, over 70 percent of domestic and foreign supplies, and for which world production is located in Africa or the acceptable substitutes are not available within Communist bloc. The pervasive role of chro- a reasonable period of time. mium, cobalt, manganese, and platinum in the Because many materials are essential in economy, as contrasted to the more limited some applications but not others, difficulties roles for beryllium and industrial diamonds, may arise in defining a material as critical. Def- place these four materials in a “first tier” of inition of vulnerability poses still more dif- strategic materials; the remaining nine, while ficulties, since the assessment of the risk of all essential to the U.S. economy, form a sec- supply interruption involves a subjective anal- ond tier of strategic materials. ysis of the behavior of other nations. Alto- The four first-tier strategic materials are the gether, the definition of a “strategic material,” subject of this report, Chromium, cobalt, man- combining uncertainties both of criticality and ganese, and platinum group metals are clearly of vulnerability is not a cut-and-dried matter. essential to the United States, and their uninter- The U.S. Bureau of Mines compiles and rupted supply is certainly open to question. reports data on 86 important non-fuel mineral Issues considered with regard to these mate- commodities. After eliminating the materials rials, and the technologies that may help re- and minerals that the United States exports or duce U.S. vulnerability to disruptions in their for which the United States has no net imports supply, will also have some application to ma- and the minerals for which the United States terials in the second tier. 12 ● Strategic Materials: Technologies to Reduce U.S. /report Vulnerability —

Figure 1-1 .—Regional Distribution of Strategic Material Production

Platinum Diamonds Cobalt

Beryllium

Chromium

Manganese

Vanadium

Graphite Rutile

Bauxite

Tin Tantalum

Columbium

10 20 30 40 50 60 70 80 90 100

Legend Communist bloc Oceania u North America Africa Western Europe Other market c1 economy countries Asia Latin America N n SOURCE Off Ice of Technology Assessment from U S Bureau of Mines data

Essential Uses of Strategic Materials

The first-tier strategic materials have many and increases its wear resistance. These prop- uses, a number of which are considered to be erties make chromium alloy steel essential in essential. The essential uses of the first-tier stra- springs, bearings, and tools, as well as in com- tegic materials are discussed below. ponents of automobile engines. In stainless steel, the formation of a tenacious Chromium chromium oxide film on the surface of the material provides a barrier to corrosion and ox- Chromium is used in a variety of applications idation. This corrosion and oxidation resist- throughout the economy, the most essential of ance is essential in chemical processing plants, which are superalloys, stainless steel, and as oil and gas production, power generation, and an alloying element in tool, spring, and bear- in automobile exhaust systems, principally in ing steels. the catalytic converter. As an alloying element, chromium raises the Chromium is combined with nickel, cobalt, hardness of steel, increases its strength and ox- aluminum, and titanium to give superalloy idation resistance at elevated temperatures, their exceptional corrosion and oxidation re- Ch. 1—Summary ● 13 sistance at temperatures above the useful range ing agent in steelmaking, manganese is instru- of steel. For example, superalloys are used in mental in removing oxygen from steel and in the high-temperature regions of the aircraft gas improving slag characteristics. turbine engine in parts such as turbine blades and vanes, turbine disks, and combustor liners. Platinum Group Metals Chromium in its mineral form of chromite is used in insulating liners in boiler fireboxes, Platinum group metals (PGMs), which com- steel and ferroalloy furnaces and vessels, and prise platinum, palladium, rhodium, iridium, in foundry sands used for casting molds. In a osmium, and ruthenium, are essential in catalyt- chemical form it is used in pigments, metal ic applications in petroleum refining, chemical treatments, leather tanning, and a variety of processing, and automotive exhaust treatment. other applications. Although some of these uses They are also used as contacts in telecommu- are essential, the quantity of chromium re- nication switching systems and as electrodes quired to meet them is small relative to the in ceramic capacitors, but in many of these ap- amount consumed in metallurgical applications, plications gold is a satisfactory, albeit expensive, substitute for some of the platinum group metals. Other applications include jewelry and Cobalt medical and dental equipment. Although U.S. demand for cobalt is less than 2 percent (by tonnage) of that for chromium, Outlook for the Future it is essential in many of its applications. The most critical are as an additive in some super- Domestic production of stainless and alloy alloy, as a binder for tungsten carbide tool bits, steel accounted for 237,000 tons of chromium and as a constituent of some magnetic alloys. in 1981. Requirements for these steels are pro- It is also desirable, but not irreplaceable, as an jected to grow substantially for the rest of the alloying element in some tool steels, hard fac- century. Superalloy, which require high purity ing alloys, and high-strength steels. Cobalt is chromium metal or low carbon ferrochromium, contained in catalysts used in certain essential accounted for less than 7,000 tons of chromium steps in the refining of petroleum and the man- in 1981. Demand for chromium in this applica- ufacturing of chemicals. Other nonmetallurgi- tion may nearly double by the year 2000. cal applications include pigments and paint Domestic cobalt consumption was 5,800 tons dryers, but only a very small portion of these in 1981. Superalloys, the largest consumer, ac- applications are essential. counted for 2,100 tons or 36 percent of domestic consumption. Magnetic alloys used about Manganese 800 tons (14 percent of domestic consumption); chemical and petroleum catalysts accounted Although manganese is used in a variety of for about 600 tons (10 percent of domestic con- applications, ranging from an alloying agent sumption); and cemented carbide tools and in aluminum alloys and bronzes to nonmetal- dies consumed about 500 tons (almost 9 per- lurgical uses in batteries and chemicals, its cent of domestic consumption). Growth of co- principal use—about 90 percent—is as an alloy- balt demand is expected to be slow over the ing and processing agent in steel. As an alloy- next decade, increasing somewhat after 1995. ing element, manganese prevents the formation of iron sulfides which adversely affect the In 1981, 775,000 tons of manganese con- properties of steel. In addition, manganese is tained in ore and ferroalloys were used in the the most cost-effective method of increasing production of carbon, stainless and alloy steel. the hardness of steel, leading to its use in cer- If current steelmaking practices continue, tain impact-resistant steels and in the high- manganese requirements for the domestic pro- strength low alloy (HSLA) steels. As a process- duction of steel would be expected to rise sig- 14 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability nificantly. However, changes in steelmaking try is difficult to predict. Increased demand for practices could result in a significant decrease “specialty” chemicals (e. g., pharmaceuticals, in the amount of manganese required per unit agricultural pesticides and herbicides, and bio- of steel production, causing a major drop in catalyst) could push PGM consumption in the future manganese consumption per ton of steel chemical industry to as much as 400,000 troy (see p. 27). ounces in 1990 and to over 800,000 troy ounces by 2000, PGM demand in the electrical indus- U.S. demand for platinum group metals was try is likely to increase slowly, although a sharp 1,92 million troy ounces in 1981. Of this total, increase in palladium demand for ceramic 607,000 troy ounces, or 32 percent, were used capacitors is likely in the near future and de- in catalytic converters of automobiles. Other mand for this use will remain high for several catalytic uses in the chemical and petroleum years until high prices and tight supplies en- industries accounted for 342,000 troy ounces courage the use of substitute materials in this (18 percent of domestic consumption). Electri- application. cal applications accounted for almost 500,000 troy ounces (26 percent of domestic con- These projections must be taken with cau- sumption). tion. They are based on extensions of current patterns and trends, and do not fully reflect the PGM demand for catalytic converters may effects of advances in materials production more than double by 1995 as automobile sales technology, nor do they reflect technical ad- increase and as larger vehicles, such as heavy vances in end uses that may result in signifi- trucks and buses, are required to use conver- cant increases or decreases in consumption of ters. Demand for PGMs in the petroleum in- these materials, However, the projections do dustry will probably grow at roughly the same provide a starting point for the evaluation of rate as the economy, unless there is a sharp in- the importance of the various technical alter- crease in demand for domestic fuels that would natives to materials import reliance that are require large quantities of PGM catalysts in the discussed below. expansion of refinery capacity. Growth of demand for PGM catalysts in the chemical indus-

Production of Strategic Materials

Chromium is found in many parts of the cent from the Soviet Union, 11 percent from world, but world mine production is domi- the Philippines, and the rest from a variety of nated by several large, high-grade deposits. In sources. The rest of chromium imports were 1982, South Africa accounted for 27 percent ferrochromium and chromium metal, with 35 of the total world chromium production of percent coming from South Africa, 26 percent about 2.6 million short tons. The Soviet Union from Zimbabwe, 12 percent from Yugoslavia produced 36 percent of the world total; six (produced, in part, from Albanian chromite), other countries, Albania, Brazil, Finland, the and the balance from diverse sources, Philippines, Turkey, and Zimbabwe, each accounted for between about 3.6 and 6 percent In 1982, Zaire produced 45 percent of the world supply of cobalt, while neighboring Zam- of world production. bia produced 13 percent, The Soviet Union and In 1982, the United States imported 227,000 Cuba together produced 15 percent of the short tons of chromium contained in ore and world’s cobalt, Canada accounted for 6 percent metal. About half of the imports were as chro- and Australia 8.7 percent, with lesser amounts mite ore: 59 percent from South Africa, 6 per- being produced in Finland, Morocco, the Ch. 1—Summary Ž 15

Philippines, New Caledonia, and Botswana. U.S. imports of ore came from Gabon (19 per- Principal suppliers to the United States were cent), South Africa (55 percent), Australia (16 Zaire, 36 percent of imports; Zambia, 8.5 per- percent), and Brazil (3 percent). Manganese cent; Canada, Norway, Finland, and Japan be- was also imported as ferromanganese, with tween 6 and 11 percent each; and Belgium/Lux- South Africa providing 40 percent and France embourg, 4.5 percent, Belgian cobalt originated providing 21 percent. from ore obtained from Zaire, while Australia, Production of platinum group metals is con- Canada, and the Philippines supplied cobalt centrated in the Soviet Union and in South ore to other processes, Africa, accounting for 54 percent and 40 per- Manganese ore supplies are more diversified cent of 1982 world production, respectively. among major producers than are supplies of U.S. imports were from South Africa (48 per- chromium or cobalt. The Soviet Union ac- cent), the Soviet Union (16 percent), and the counted for 41 percent of 1982 world produc- United Kingdom (14 percent, processed from tion and South Africa accounted for 23 per- material imported into the United Kingdom cent. Australia, Brazil, Gabon, India, and China from South Africa and Canada). each accounted for between 5 and 7.1 percent.

Historical Perspective

In the past 25 years, the United States has formed with a United Nations resolution which had at least four major disruptions in the called on all members to refrain from trade supply of materials critical to the economy and with Rhodesia after it declared independence the national defense. The first of these occurred from Great Britain and set a course of con- in 1949 when, in a Cold War exchange of trade tinued white minority rule. restrictions with the United States, the Soviet Union stopped the export of manganese and In neither of these cases were there serious chromium ore to the United States. The sec- effects on the economy or any interruption of ond interruption was the U.S. boycott of chro- defense production. The response in both in- mium from Rhodesia (now Zimbabwe). The stances was, essentially, to find other foreign third was a many month hiatus in the import sources of supply. After the 1949 Soviet em- of nickel from Canada as workers carried on bargo, the U.S. Government was active in find- a prolonged strike, Most recently, political ing alternative suppliers and in upgrading the disturbances in Zaire, while not actually reduc- infrastructure of these suppliers by providing ing cobalt production, triggered major disrup- steel to improve India’s rail transport system, tions in supplies, inventories, and prices for sending railcars to South Africa, and helping cobalt. to improve rail and port equipment in Ghana. The Soviet Union embargo on chromium and With the U.S. embargo on purchases of Rho- manganese exports to the United States in 1949 desian chromium in 1966, the Government sold was a political action. It was a response to a excess chromium from the national stockpile U.S. clampdown on exports of machinery, but otherwise took little active part, leaving in- tools, trucks, and scientific equipment to the dustry to find alternate suppliers, That indus- Soviet Union—which, in turn, was a response try was able to do so quite readily with little to the Soviet blockade of Berlin in 1948. Another evidence of shortage was due to several fac- politically motivated supply cutoff was the em- tors, besides the stockpile sales. The Soviets bargo on imports of Rhodesian chromium from promptly volunteered to serve as alternate sup- 1966 to the end of 1971. The U.S. embargo con- pliers of chromium to the United States, even 16 ● Strategic Materials: Technologies tO Reduce U.S. Import Vulnerability

though the United States was fighting against stockpile as the strike came to its end. Earlier their allies in Vietnam. Prices rose, drawing Government actions had been to allocate avail- other suppliers like Turkey and the Philippines able supplies to military users. into increased production, And the Rhodesian During the cobalt “shortage” of 1978-79, embargo leaked. Despite the international em- there was never any real interruption of supply, bargo, France, Japan, and Switzerland bought On the contrary, production in Zaire and Zam- what was probably Rhodesian chromium from bia—by far the largest cobalt producers in the South Africa and Mozambique, Had they not world market—rose 43 percent during 1978 done so, the alternate suppliers might have and another 12 percent in 1979. But the com- been hard put to provide the whole industri- bination of rapidly rising world demand and alized world with chromium. fears of a supply cutoff, triggered by a rebel in- A most important factor in reducing the eco- vasion of Zaire’s mining region, set off a wave nomic impact of the loss of Rhodesian chro- of panic buying. This, coupled with the recent mium was the wide-scale adoption of the argon- removal of an important source of world sup- oxygen decarburization process for the man- ply (sales from the U.S. stockpile) and the rela- ufacture of stainless steel, This process made tively low industry inventories of cobalt, sent it possible to use high-carbon ferrochromium cobalt prices soaring. made from South African chromite in place of During the “shortage,” cobalt users turned the more costly low-carbon ferrochromium quickly to substitutions and recycling. Under made from Rhodesian ore that had been used the spur of high prices, nonessential uses made before the embargo. way for essential. Government allocation was The 1969 nickel strike in Canada shut down not needed to reserve cobalt for superalloys for supplies from the quintessentially “safe” for- military jet engines; superalloy producers and eign source. Unlike the politically inspired em- users paid the high prices demanded by dealers, bargoes described above, it caused actual short- and they recycled. Use of cobalt in permanent ages and acute price hikes. The reasons for the magnets for loudspeakers dropped by half as acute effects were twofold: the cutoff occurred ceramic magnets were substituted. The ce- at a time of strong demand for nickel when ramic magnet technology was already on the world supplies had already been tight for 3 shelf but had not been widely adopted because years; and Canada was then almost the sole it required redesign and retooling. High cobalt supplier to the United States. Even so, military prices made these changes worthwhile, The and essential civilian production continued drop in demand for cobalt due to substitution, without interruption throughout the shortage. recycling and conservation had its effect on By 1970, world nickel prices were back to nor- prices, which turned down in 1980. By 1982, mal and supplies were ample. with worldwide recession, cobalt prices plunged below the 1978 level. The shortages and high prices elicited changes in the behavior of U.S. nickel users, They sub- None of these cases resulted in severe or stituted other materials where they could, for long-lasting damage to the United States. None- example, replacing nickel stainless steel with theless, the issue of foreign dependence for chrome-manganese stainless steel (a substitute materials critical to the country is a major one. alloy that had been developed during the Ko- For some materials, alternative suppliers are rean war). Many users turned to nickel recy- by no means as readily available today as they cled from scrap. And they paid high prices for were in past years. In 1949, small producers the limited remaining supplies of nickel—once such as India and Turkey were capable of ex- more supplied largely by the Soviets, An im- panding their production sufficiently to replace portant factor in recovering from the acute our major suppliers of manganese and chro- nickel shortage was the U.S. Government’s re- mium; they are not today, Nor are there any lease of a large quantity of nickel from the major new technologies in stainless steelmak- Ch. 1—Summary ● 17 ing opening up new types of ore for exploitable, whether as a result of international poli- tion, as the argon-oxygen decarburization proc- tics, internal rebellion, labor difficulties or ess did for South African chrome ore after other causes. Second, technology provided a Rhodesian supplies were embargoed. The means to respond to interruptions of supply in Canadian nickel strike and, to a lesser degree, each of the examples. Thus, a basic question the disruption in cobalt markets resulting from to be answered in considering the full range the Zairian disturbances, showed that interrup- of possible elements in a Government policy tions in metal supplies could have financial ef- for strategic materials is the extent to which fects much greater than might have been ex- technology can protect the U.S. economy from pected, on the basis of the dollar value of the adverse effects of possible interruptions in imports of these metals, the future. The first step toward answering this question is to identify the technological alter- These four diverse historical examples illus- natives to the current state of reliance on im- trate two important points. First, interruptions ports of strategic materials. or even complete cessation of supply from major producers of strategic materials are possi-

Technological Approaches to Reduce Materials Import Vulnerability

There are many technological approaches to of stainless steel containing 18 percent chro- reduce U.S. materials import vulnerability, and mium in certain powerplant applications. Sub- they may be combined in many different ways. stitution also includes the displacement of For the strategic materials policy maker, it may strategic materials by new materials such as be best to group these various approaches into advanced ceramics or composites. a materials technology triad. The components Individually, no one technological approach of this triad are minerals production and metal can meet all of the varied problems that might processing, conservation, and substitution. arise with regard to the security of supply of The production leg of the triad includes do- the four first-tier strategic materials; the ap- mestic production, diversified foreign produc- proaches must be combined to improve their tion, and production of minerals from regions effectiveness. Further, each provides oppor- beyond national jurisdiction, The processing tunities that differ for the various materials. of these minerals into forms used by industry, Thus, the most effective combination of tech- particularly ferrochromium and ferromanganese nological approaches for dealing with materi- for the steel industry, is also included in the als import vulnerability varies from one mate- production leg. The conservation leg includes rial to the next, improved manufacturing technologies that use materials more efficiently, such as improved Summary of Technological Approaches casting methods, more efficient forging techniques, and the manufacture of parts from In reviewing the outlook for technological ap- powdered metals. It also includes the recycling proaches to reduce materials import vulner- of scrap generated during the manufacture of ability for the four first-tier strategic materials, components and of obsolete scrap retrieved several points become apparent. First, there is from discarded products. The third leg of the no single solution. For example, as is shown triad, substitution, involves the use of materials in table 1-1, substitution is extremely impor- with reduced strategic materials content in tant to reducing chromium vulnerability, but place of traditional materials. An example is has little contribution to make in the case of the use of 9 percent chromium steel in place manganese. Recycling, which is important for 18 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

Table 1-1 .—Summary of Most Promising Technological Approaches to the Reduction of Strategic Materials Import Vulnerability

Approach Potential benefitsa Barriers to implementation Chromium: Substitution Direct substitution could now reduce U.S. Low cost of chromium alloys deters use of chromium needs by one-third. Another one- substitutes; lack of information on third reduction may possibly be achieved substitutes slows their use in times of short- through a 10-year R&D program. age; need for further tests and experience limits near-term potential for substitution to one-third of consumption. Advanced materials may displace chromium Basic and applied research is needed to im- alloys in certain aerospace and industrial approve properties and reliability of advanced plications. materials. Designers and engineers need better understanding of properties and limitations of advanced materials. Tests and standards need to be developed for these materials. Conservation Expanded recycling of scrap and waste could Barriers to chromium recycling are economic, provide at least 20,000 tons of chromium not technical. beyond current recycling levels. Production Development of alternative foreign sources At current prices for chromium, there is no could provide about 30,000 to 60,000 tons, economic incentive to diversify suppliers. about 10 to 20% of current U.S. demand. Government assistance would be required to make development of alternative suppliers more attractive. Cobalt: Conservation Recycling could recover much of the cobalt in Principal barrier is economic; however, exten- scrap and waste that is currently lost or sive recovery of superalloy scrap may require downgraded. use of technology that is now limited to laboratory testing. Process improvements now being adopted may Economic factors favor the adoption of process make significant reductions in the amount of improvements. cobalt used to make jet engine components. Substitution Direct substitutes under development could Industry has little or no incentive to expend the reduce the need for cobalt by 50°/0 or more time and money needed to qualify alternative in some critical superalloy applications. alloys except when there are significant performance advantages. Advanced materials may displace cobalt in Barriers to adoption of advanced materials to some aerospace and industrial applications. reduce cobalt consumption are the same as for chromium, as described above. Production Domestic production from three sites could pro- Current prices for cobalt and/or co-product duce up to 8 million pounds of cobalt per metals are too low to justify investment year. without Federal subsidies. New foreign production could provide almost 15 Investments are being postponed until cobalt million pounds of cobalt per year. prices rise. Lead times of 2 to 5 years are needed to bring deposits into production, Manganese: Conservation Process improvements could reduce needs for Adoption of improvements will depend on in- imported manganese in steel by 45% by year cremental upgrading of domestic steelmak- 2000. ing facilities. Production Alternative suppliers to South Africa and the Assured market for increased production is Soviet Union could increase production needed to justify investment in production after 2 to 3 years to expand facilities. and transportation facilities: U.S. would be in competition with other consumers for new production; facilities for processing ore into ferromanganese must also be available. Platinum group metals (PGMs): Conservation Recycling of catalytic converters could recover No significant barriers; several years will be 500,000 troy ounces of PGM annually by needed to develop collection and processing 1995. infrastructure. Product ion Development of the Stillwater deposit could pro- Domestic production will require slightly higher duce 175,000 troy ounces of PGM in the near prices for platinum and palladium and term; additional development is possible. evidence of increased demand. aThe benefits accruing from the various approaches are not cumulative. For example, as scrap generation in manufacturing IS reduced through improved processing techniques, the potential benefits of recycling are also reduced SOURCE Office of Technology Assessment Ch. 1—Summary ● 19 . platinum and cobalt, is also a minor contribu- munist countries. In 1982, South Africa ac- tor for manganese, Similarly, processing effi- counted for 22 percent of chromite production, ciency, diversity of supply, and domestic pro- the U.S.S.R. accounted for 24 percent, Albania duction all vary in importance for each of the for 12 percent and Zimbabwe for 4 percent. strategic materials. Another 22 percent was spread among Brazil, Finland, India, Madagascar, the Philippines, Second, none of the approaches offers a and Turkey. The processes of ferrochromium, “quick fix” to import vulnerability problems, the form used in making alloy and stainless All require a continuing commitment, whether steel, are more diversified. In the 1980-82 the approach is to maintain substitution infor- period, the Soviet Union and South Africa each mation on a current basis, or to move new accounted for 20 to 25 percent of world pro- materials from the laboratory to industrial use, duction. Japan was a midlevel producer, ac- or to encourage investment in new mines or counting for about 15 percent and the United processing facilities. States accounted for about 7 percent. These Third, the existence of technological alter- figures are static, however, and do not reflect natives is based on a history of long and con- the trend toward decreased diversity of fer- tinued support by Government, academia, and rochromium production. From 1974 to 1980, industry for basic research in materials science U.S. ferrochromium production declined by 29 and engineering. Had this commitment been percent, Japan by 21 percent, and France by significantly less, fewer alternatives would be 30 percent. During the same period, South Afri- available today. can ferrochromium production rose by 193 percent and the Soviet Union 279 percent. Fourth, in only a few instances is it likely that the technological approaches which offer Domestic Production.—Domestic resources offer promise to reduce import vulnerability will be few opportunities for reducing import depen- implemented under normal economic and mar- dence for chromium. United States chromium ket conditions. Improvements in steelmaking resources are limited to low-grade deposits, technology and recycling of catalytic con- such as the Stillwater Complex in Montana, the verters are underway and are likely to con- small, discrete deposits of chromite in north- tinue, as are improvements in superalloy ern California and Oregon, and extremely low- fabrication technology. Development of the grade chromite associated with nickel laterites Stillwater, MT, PGM deposit is a strong pos- such as the Gasquet Mountain deposit in north- sibility, although the actual decision to go ern California. The Stillwater deposit was ahead will rest on a positive assessment of mined under Government contract during future markets for platinum group metals. De- World War II, but it is not under consideration velopment of advanced materials that contain for development now, Somewhat lower in cost no strategic materials is likely, but it is not clear to mine than the Stillwater ores, the dissemi- how useful these materials will be in applica- nated, or podiform, chromite deposits of Cali- tions that now require strategic materials, For fornia and Oregon also provide a resource that the rest of the technical approaches, the out- could be tapped in times of national emer- look for implementation is poor unless new in- gency, but one that is not competitive with centives are forthcoming, provided either by worldwide chromite deposits now in operation, the market (in the form of tightened supplies and higher prices) or by the Government (as Only one domestic chromite resource, the investment assistance or price supports). Gasquet Mountain nickel laterite deposit, is under consideration for development at this Chromium time. The development proposals call for this deposit to produce nickel and cobalt, with a PRODUCTION chromite concentrate as a byproduct. Consid- World production of chromite, the ore from ering current prices for nickel and cobalt, the which chromium is obtained, is largely ac- outlook for this mine is dim. Even if it does en- counted for by southern African and Com- ter into operation, the production of chromite 20 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability would be less than 3 percent of U.S. annual and beach sands, but the ore grades of such de- consumption of chromium. posits generally range from 2 to 5 percent chromic oxide. With the major producers Although only low-grade deposits of chro- supplying ore that contains 35 to 48 percent mium have been discovered in the United chromic oxide, the lateritic and sand deposits States, the possibility remains that better de- would require substantial concentration to pro- posits exist. High-grade chromite deposits, duce a marketable product, and the estimated where they exist, are normally associated with cost of producing such a product is two to three the Precambrian rock such as that which times the current market price. underlies much of North America. Unfortu- nately, only small areas of this rock are ex- Ferrochromium Processing Capacity.—Before 1970, posed. Conventional mineral reconnaissance the United States had sufficient capacity to techniques, which rely heavily on the iden- meet its needs for ferrochromium, the form of tification of surface features associated with chromium used in the production of steel. the desired mineral deposits, are limited to Since that time, however, imports of ferrochro- these exposed areas. In other areas, the premium have reduced the domestic industry’s cambrian rock is covered by thick layers of share of United States demand and, with time, sediment or glacial debris, precluding the use the capacity to produce ferrochromium domes- of surface features to disclose the nature of sub- tically is also decreasing as furnaces and plants surface deposits. Advances in exploration tech- are decommissioned. As domestic processing nology, however, may improve the outlook for capacity declines, the United States loses its the discovery of more deposits. Improved geo- flexibility to turn to alternative sources of ore physical techniques, such as arial gravimetric from countries that do not have their own fer- and magnetic analyses targeted specifically at rochromium facilities. chromium, could reduce the dependence of explorationists on surface geology. Improved geo- The decline of the domestic industry is di- chemical and core drilling technology could rectly related to the cost of operation. Costs of encourage the exploration for chromium (and power, labor, and transportation are, in gen- other minerals) by reducing exploration costs. eral, lower for the producers in countries In the long term, improved scientific under- where chromium ore is mined than for U.S. standing of the processes that form deposits firms, In addition, national policies in the pro- could assist explorers to identify regions in ducer countries often provide economic incen- which to concentrate their efforts. tives for local processing of ferroalloys. Diversified Foreign Production.— Unless major new The advantages enjoyed by producing coun- deposits of chromite are discovered, the oppor- tries are not insurmountable. The growing tunities to diversify supplies of chromium are need to blend together ores that have different limited to minor expansion of small producers, chemical and physical properties means that such as Albania, Turkey, and the Philippines, and all producers will need to import ores, so that the exploitation of known, but undeveloped, all producers will pay the additional cost of chromite resources in the laterites and beach transporting ore rather than the more concen- sands of New Caledonia and the Philippines, trated ferroalloy. Labor rates in many producer countries are now quite low, but are likely to The deposits in Albania, Turkey, and the increase more rapidly than in the United Philippines are small and discrete, and it is States, thereby narrowing the cost differences. likely that many deposits remain undiscovered, Improvements in the technology for measure- Production from these countries might be in- ment and automatic control of processing oper- creased if techniques for identifying scattered ations should provide gradual improvements deposits of chromite can be improved. in domestic plants. In the longer term, ad- Technologies have been developed for the vanced furnaces may provide means to reduce production of chromite from nickel laterites energy consumption, further reducing advan- Ch. 1—Summary ● 21 tages held by some foreign producers. Eco- pounds of chromium—over half of the total nomic and trade agreements may also help nar- chromium content of the automobile. Since this row the economic gap. With the advantage of type of stainless steel is magnetic, it is not proximity to consumers, which gives U.S. pro- easily separated from other magnetic parts ei- ducers an advantage in responding to special ther before or after the cars are shredded. How- orders placed by the steel industry, technical ever, interest in recycling of the platinum in improvements in ferroalloy facilities could im- the converters is increasing (see “Platinum prove the potential to maintain a domestic fer- Group Metals” below) and the converters are rochromium industry capable of processing starting to be removed for separate processing, ore from a variety of foreign sources, which makes the stainless steel shell available for recycling. If recycled separately, the con- In the long term, with wise adoption and ap- verter shells could produce about 5,000 to 7,000 plication of technology, the industry may be tons of chromium per year, or up to 3 percent able to keep a significant share of the domes- of the 1981 U.S. demand for chromium in stain- tic market for ferrochromium, ferromanga- less and alloy steels, nese, and other ferroalloys. In the near term, however, there is little technology can do; so, Opportunities for recovery of chromium during this period, the domestic industry is from industrial wastes are difficult to quantify likely to need economic and political assistance because of a lack of up-to-date information. In if it is to preserve a market presence against 1974, the most recent year in which data were foreign competition. compiled, chromium lost in industrial waste was estimated to be over 28,000 tons, including over 17,000 tons from various metallurgical CONSERVATION processes. Since that time, several firms have Chromium-bearing manufacturing and ob- instituted both internal and commercial waste solete scrap are marketable products that ac- processing programs. For example, Inmetco, count for about 10 to 15 percent of U.S. con- a subsidiary of Inco, processes flue dust, mill sumption of chromium, Because recycling of scale, and grinding swarf containing 3,100 tons manufacturing scrap is already at a high level, of chromium with chromium recovery rates of there is little opportunity to increase chromium about 90 percent. Other facilities have been de- recovery in this area. There are, however, sig- veloped to process other forms of scrap and nificant opportunities to increase the recovery waste. of chromium from obsolete stainless steel scrap Chemical and metal finishing industry wastes and from waste produced by steelmaking and were estimated to contain over 3,000 tons of chemical processing plants. chromium in 1974, which was then almost en- Recycling of obsolete stainless steel scrap is tirely lost. Although recycling or regenerating difficult because of the long lifetime of stainless the chromium from these wastes is expensive, steel products, the wide dispersion of the prod- the cost of meeting strict standards for the dis- ucts through the economy, and the difficulty posal of waste in landfills could encourage the of separating the stainless steel from other recovery of metals, Furthermore, the value of materials in discarded products. The most the metal could help lower the costs of proc- promising prospect is in the automotive area. essing the waste for disposal. Several recovery About one-third of all obsolete stainless steel technologies, including closed-loop systems to scrap is obtained from junked automobiles; extend the life of acid baths, have been under even so, only 30 to 40 percent of the chromium development and hold promise to reduce chro- contained in the cars is recovered. The best op- mium losses in the future. portunity for increasing chromium recovery from automobiles lies in the catalytic converter. SUBSTITUTION The shell of the converter, which is made from Direct Substitutes.—The most important use of Type 409 stainless steel, contains 1,8 to 2.6 chromium is in metallurgical applications, 22 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

where it provides properties of hardness, wear Advanced Materials. —In the long term, nonme- resistance, high-temperature strength, and re- tallic and unconventional metallic materials sistance to oxidation and corrosion. It is in may provide alternatives to chromium-bearing these uses that substitution offers the greatest stainless and alloy steels and superalloys. opportunities to reduce the requirements for Ceramics are being developed for possible use imported chromium. in engine components, power plants, and bearings—all applications that now use stainless or Because of its relatively low cost, availabil- alloy steel—and in gas turbine engines in place ity, history of satisfactory performance, and of superalloys. Advanced composites may be familiarity to designers, chromium-containing used in applications that require high strength steels, particularly stainless steels, are widely and light weight. New metallic materials, in- used, even in applications that do not require cluding rapidly solidified metals and long- the superior performance provided by the high range ordered intermetallics may provide alter- chromium content. There are many oppor- native materials for use at high-temperature ap- tunities to use materials with reduced chro- plications, such as turbine components in jet mium or no chromium at all, but there is no engines, that otherwise require alloys with single substitute material that can serve in all chromium contents of 20 percent or more. of the applications where stainless steel is now used. Appropriate substitute materials must be However, advanced materials must over- selected for specific applications. Some of the come substantial barriers before they can sig- more promising substitutes for stainless steel nificantly reduce the need for chromium or are summarized in table 1-2. other strategic materials, With few exceptions, It is important to note that there are few in- these materials are still in early stages of de- centives to replace stainless steel in most ap- velopment. Considerably more work must be plications. As a result, most potential substi- done in the laboratory to improve the proper- tute materials remain at the laboratory stage ties of the materials, and processing and man- because, without economic incentives to adopt ufacturing methods must be developed to ac- alternative materials, private industry will not commodate their special properties. Even then, spend the money required to move the mate- the materials must gain acceptance by design- rials to commercial use. ers, who will evaluate them not only on eco-

Table 1-2.—Substitution for Chromium in Metallurgical Applications

Application material Current material Alternative Developer Status Boiler tubes in con- Type 304 stainless Modified 9°/0 Oak Ridge National In process of cer- ventional and nuclear steel (18% chromium) chromium/1% Laboratory tification by ASME powerplants molybdenum steel code committees General use in Type 304 stainless Manganese-alumi- Diverse locations in Laboratory stage in moderately corrosive steel num steels U.S. and other U.S. Minor practical or oxidizing countries applications in China environments High-temperature ox- Type 304 stainless 8°/0 aluminum/6% Bureau of Mines Laboratory stage idizing environments steel molybdenum steel Corrosive environ- Type 304 stainless 9°/0 chromium alloy Bureau of Mines/ Laboratory stage ments (chemical steel steel Inco processing) General use (moderate Type 304 stainless 12°/0 chromium NASA Lewis Laboratory stage corrosion and oxida- steel stainless steel Research Center tion uses) Automotive exhaust Type 409 stainless 6-12°/0 chromium ARMCO Laboratory stage systems and catalytic steel (1 2°/0 chromium) alloy steel converters SOURCE Office of Technology Assessment. —

Ch. 1—Summary ● 23 nomic grounds but on the familiarity that posits. Increases on the order of 50 percent for grows with practical experience, nickel and copper, or 100 percent or more for cobalt would be necessary to encourage private Cobalt investment. At these higher prices, domestic production of cobalt could be significant, De- PRODUCTION velopment plans for the Blackbird mine call for Cobalt is generally produced as a byproduct the production of 3.7 million pounds of cobalt of nickel or copper mining, its sales supple- per year, for the Madison mine 2 million menting the revenues from these other prod- pounds, and for the Gasquet Mountain deposit ucts. Only rarely is it mined for its own sake. 2 million pounds. The lives of these mines vary The largest cobalt producers, Zaire and Zam- from 10 to 20 years, based on proven reserves. bia, produce cobalt from their copper mines. Potential cobalt production of hypothetical Canada and Botswana produce it from nickel- mines in the Duluth Gabbro is estimated to be copper mines, and Cuba and the Philippines from 1 million to 2 million pounds annually, recover it from nickel laterites. Less commonly, cobalt may also be found in deposits of lead, Diversified Foreign Production.--The high market iron, and manganese. Only in Morocco has co- prices that are required for domestic produc- balt been produced as a principal product. As tion of cobalt have led developers to look for a result of the wide distribution of cobalt- deposits in foreign countries that offer more bearing ores, diversified production, both do- attractive economics. With long-term price in- mestic and foreign, is a more promising option creases less extensive than those required to for the reduction of import vulnerability for make U.S. deposits economic, cobalt produc- cobalt than for chromium, manganese, or plat- tion from nickel mines in Canada and Aus- inum group metals. tralia, which accounted for 10 percent of world production in 1980, can be increased substan- Domestic.—In the aftermath of the Korean war, tially. the United States obtained cobalt from domestic sources, largely by granting Federal sub- Increases in cobalt and nickel prices would sidies to the mine operators. Three deposits, also improve the prospects for the development the Blackbird mine in Idaho (a copper-cobalt of cobalt deposits in Indonesia, New Guinea, mine), the Madison mine in Missouri (lead- New Caledonia, and Peru. These four depos- cobalt) and the now-depleted Cornwall mine its are summarized in table 1-3. The total po- in Pennsylvania (an iron deposit with small tential cobalt production of these four depos- amounts of cobalt), provided the bulk of domes- its could be 14.7 million pounds per year if they tic cobalt. In addition to these proven depos- were all to enter production. As with the do- its, several other deposits are known and have mestic deposits of cobalt, however, these four been studied as possible domestic sources. are unlikely to be developed under current eco- These are the copper-nickel deposits of the nomic conditions. In fact, development at Gag Duluth Gabbro in Minnesota and the cobalt- Island was recently halted due to poor eco- containing nickel laterites in northern Cal- nomic outlook and partnership disagreements, ifornia. At current and projected prices for cobalt and other metals that can be produced from Table 1-3.—Potential New Foreign Cobalt Production the Blackbird mine, the Madison mine, the Estimated production Leadtime to Duluth Gabbro, and the nickel laterite deposit Site (million pounds/year) start production at Gasquet Mountain in California, domestic Gag Island, Indonesia 28 2 to 3 years Ramu River, New Guinea 59 5 + years cobalt production is economically unattractive, Goro, New Caledonia 20 3.5 to 5 years Unless prices for cobalt, nickel, lead, and cop- Marcona Mine, Peru 4.0 2 years per show major and prolonged increases, pri- Total 147 vate industry will not develop any of these de- SOURCE Off Ice of Technology Assessment 24 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

and development of the other three deposits used in the engine are seen, with ratios of 6 awaits improved markets for nickel and cobalt. to 1 being common. Less than 50 percent of this superalloy manufacturing scrap is recycled for Ocean Resources.—For over 100 years it has use in superalloy; the rest is used in steel for been known that in the depths of the ocean its nickel and chromium content, is exported there are deposits of nodules and crusts of to foreign consumers, or is disposed of as manganese that contain copper, nickel, and co- waste. Obsolete parts made of superalloys are balt, sometimes in concentrations that would contaminated with carbon and sulfur, and gen- be very attractive in land-based deposits. Ad- erally are not recycled for production of jet en- vances in the technology for ocean resource gine components. Past failure to utilize scrap exploration and development during the 1960s has been based, in part, on engine manufac- and 1970s raised the possibility of recovering turers’ standards that limited the use of scrap these minerals from the seabed. Commercial and, in some cases, prohibited its use altogeth- interest centered on the manganese nodules of er, due to concern that contaminants would not the east central Pacific ocean where the nickel, be removed in refining processes and the re- copper, and cobalt contents were at their high- sulting alloy would be unsuitable for use in crit- est. After a peak of interest in the late 1970s, ical applications, With experience, it has been however, interest in the development of these possible for manufacturers to relax the speci- resources declined sharply, Although uncer- fications to allow the use of superalloy that tainties about the legal right to mine the re- contain up to 50 percent recycled materials sources contributed to the decline in interest, (principally from manufacturing scrap) in air- more significant were the increases in the pro- craft applications, jected cost of exploitation (based on the analysis of data from prototype tests conducted in Recent advances in remelting and refining 1979 and 1980) and the realization that assump- technology have led to the development of tions of future increases in the price of nickel processes that could refine manufacturing and copper were overly optimistic, The high scrap, and even some obsolete scrap, to pro- cost of building and operating an ocean min- duce new alloys that can meet the strictest of ing system is compounded by the legal uncer- standards required by aircraft engine manufac- tainties arising from U.S. abstinence from the turers, Processes have also been developed to seabed mining provisions of the Law of the Sea recover individual elements from mixed alloy Convention, and by the cost of development scrap. The usefulness of these processes is and testing remaining to be done on mining limited, however, because they have only been systems. With time, as higher grade land-based tested in the laboratory or in small pilot plants. resources are depleted, the resources of the Further time and effort are needed to deter- deep sea floor may well become a major source mine their technical and commercial feasibil- of cobalt and other metals. At this time, how- ity as full-scale facilities. ever, land-based sources of cobalt, whether for- A second conservation measure that could eign or domestic, appear more attractive for reduce import vulnerability for cobalt is the use commercial development. of more efficient manufacturing technologies, Particularly important among these, for super- CONSERVATION alloy, are near-net-shape technologies, These There are a number of conservation alterna- include powder metallurgy, in which pow- tives to reduce U.S. requirements for cobalt. dered metals are pressed under high pressure The manufacture of superalloy components is and temperature into a form close to the final a particularly attractive area for improvement. shape of the desired component; hot isother- A considerable amount of machining is per- mal forging, in which materials are deformed formed on jet engine components, resulting in under extremely plastic or superplastic condi- large quantities of manufacturing scrap. Ratios tions to near final shape; and advanced preci- as high as 10 to 1 for purchased metal to metal sion casting methods that allow the production Ch. 1—Summary ● 25 of complex shapes as a single part, eliminat- through the substitution of nickel-based super- ing many machining steps that would other- alloy containing little or no cobalt for cobalt- wise produce scrap, much of which would be based superalloys and cobalt nickel-based su- downgraded or lost. peralloys with high cobalt content. Further An example of the benefits of these advanced steps along these lines are more difficult, however, The certification of a new alloy for use manufacturing processes is the production of in critical aircraft applications is an expensive the turbine disk for the Pratt & Whitney F-100 and time-consuming process, one that com- jet engine. When first designed, this 15-pound panies will not carry out unless the substitute part was forged from a 250-pound billet of provides clear performance benefits or unless Astroloy (17 percent cobalt), which resulted in faced with high metals prices or extreme and 235 pounds of chips containing 40 pounds of prolonged uncertainty about the availability of cobalt. With isothermal forging, the billet cobalt. weight is reduced to 126 pounds and the material used is IN-100 (18.5 percent cobalt) in- As with chromium, long-term opportunities stead of Astroloy; the result is 110 pounds of to develop substitutes for cobalt-bearing alloys chips containing 20.5 pounds of cobalt—almost are enhanced by the development of advanced a 50 percent saving in cobalt. Future improve- materials, Ceramic cutting tools are already be- ments are expected to reduce chip formation ing used in place of high-temperature tool to 35 pounds of material containing less than steels or cemented carbide tool bits that con- 7 percent cobalt; the result will be a net cobalt tain cobalt. Ceramics and carbon-carbon com- savings of over 80 percent, compared with the posites have shown some potential for high- original manufacturing process, temperature applications that now require superalloy. Advanced metallic materials, in- Improvements both in recycling and in man- cluding rapidly solidified materials and long- ufacturing efficiency act to reduce U.S. depen- range ordered alloys, also have high-tempera- dence on imports. However, the economic fac- ture characteristics that may lead to their tors that may impel manufacturers to adopt future application in place of conventional co- them are different. Manufacturing improve- balt and chromium-bearing superalloys. ments are likely to continue because the improvements result in overall cost savings and Manganese performance benefits, not because they reduce cobalt consumption, per se. Advances in re- About half of the manganese consumed in cycling technology are much more dependent the production of steel is contained in iron ore on a specific interest in conserving cobalt; they and scrap, Since these materials are available are likely to occur slowly, if at all, unless price domestically or from Canada, this supply of increases or supply uncertainties provide in- manganese is relatively secure from interrup- centives for further development in the reuse tion. The remainder of the manganese in steel of superalloy scrap for critical applications, is provided in the form of manganese ore and ferromanganese that the United States must SUBSTITUTION import. Owing largely to the uncertainty of cobalt supplies following the 1978-79 disturbances in PRODUCTION Zaire, the U.S. Government sponsored research World manganese production is dominated into the potential to reduce strategic material by a limited number of very large deposits that, requirements in jet aircraft, Results of labora- because of their large reserves and high man- tory tests indicate that cobalt content of some ganese content, are very economical to oper- superalloys currently used in aircraft engines ate. The major producers, South Africa, the could be reduced by 50 percent or more through U. S. S. R., Gabon, Australia, China, and Brazil, the use of new alloys, Some steps along this accounted for all but 5 percent of world pro- line were taken by jet engine manufacturers duction in 1982. In addition, Mexican produc-

38-844 0 - 85 - 2 : QL 3 26 • Strategic Materials: Technologies to Reduce U.S. Import Vulnerability tion accounted for 2 percent of total world pro- Mexico also could expand its production, but duction. Production is concentrated in the Mexican ore is lower in quality than that of the U.S.S.R. (4 I percent of 1982 production) and major producers. Expansion of this deposit South Africa (23 percent). would be more costly than expansion of the Australian deposit because, in addition to the Domestic Production. —The United States is en- cost of expanding mine capacity, additional in- dowed with only relatively small and low-grade vestment to increase the capacity of the ore up- deposits of manganese. Although these depos- grading equipment would be necessary. Pos- its were exploited during World War II, they sibilities for diversification are also limited in are not economically competitive with the Gabon, where a long transportation line that world class deposits now in production. Prices includes an aerial tramway limits the potential between $8 and $35 per long ton unit (equiva- to increase the production rate, In Brazil and lent to 22.4 pounds of manganese) are esti- China, a large share of manganese production mated to be required for domestic deposits to is dedicated to the current and future needs of become economic. With the current market their domestic steel industries. Although ex- price ranging between $1.45 and $1.75 per long pansion of manganese production for export ton unit, it is doubtful that domestic manganese is possible in these countries, it is not currently will be developed, although some production planned, of low-grade ferruginous manganese ores (defined as ores containing less than 35 percent Ocean Production.—Certain areas of the ocean manganese) is possible. are favorable to the formation of crusts or Undiscovered deposits of manganese of com- nodules containing up to 30 percent manga- mercial or near-commercial grade may exist in nese. Manganese contained in these deposits the United States. However, manganese can- is finely disseminated through the material and not be detected by airborne methods, so ex- not easily processed into a conventional man- ploration must be conducted on the ground, ganese ore. With further development of ocean raising the cost of initial reconnaissance. Wide mining technology, the nodules located on the distribution of manganese in rock and soil Blake Plateau off the coast of Florida could be- makes it difficult to distinguish traces of man- come a new domestic source of manganese but ganese associated with ore deposits from the costs of production would be similar to those general background concentration, reducing of other domestic ores and much higher than the usefulness of geochemical exploration many foreign ores. Similarly, manganese could methods. If exploration for manganese is to be be recovered as a byproduct of deep ocean min- encouraged, improved theories of formation ing in the Pacific for nodules rich in nickel, must be developed so that promising locations copper, and cobalt. However, mining of the Pa- for deposits can be identified and geochemi- cific nodules appears to be far in the future. cal and geophysical methods can be concen- Manganese Processing Capacity .-For its largest trated in these more promising areas. Given the and most important application—as a process- availability of manganese at low cost from a ing and alloying agent in the manufacture of variety of suppliers, it is unlikely that private steel—manganese ore must be processed into firms will conduct research aimed at locating ferromanganese. As is the case with chromium, domestic manganese deposits since the benefits, if any, would occur far in the future. the United States has become dependent on foreign processing of manganese ore to meet Diversified Foreign Production.—Increased produc- much of its demand for ferromanganese. Since tion of manganese at the Groote Eylant mine the equipment and processes for ferroman- in Australia offers the best opportunity for ganese production are similar to those for fer- diversification away from South Africa. High- rochromium (in fact, the facilities are some- grade ore and proximity to ocean transport times converted from one product to the other, make expansion of this deposit relatively easy. although at a reduction in efficiency), the tech- Ch. 1—Summary ● 27 nical approaches to maintain a domestic proc- Table 1.4.—Current and Projected Manganese essing capacity are also similar. Technologi- Consumption in U.S. Steel Production (pounds of manganese per ton of steel product) cal advances offer little help to the domestic industry in the immediate future. However, im- Current Projected–2000 proved technology for monitoring and control- (1981-82) Expected Best Worst ling ferromanganese furnaces could raise the Inputs: productivity of domestic facilities to a limited Manganese products: Manganese ore 19 1,2 1,0 1.5 degree. Over a longer period, the development, Ferromanganese 159 8.3 55 122 refinement, and adoption of new high-voltage Total 17.8 95 6,5 13,7 and plasma arc furnaces may give domestic Iron and steel products: producers an edge in efficiency over foreign Iron ore and sinter 129 8.5 7.1 10.1 producers who do not adopt the technology Purchased ferrous scrap 5.0 6.8 6.9 66 and allow them to be competitive with those Total 17,9 15.3 14,0 167 outputs: who do. Retained in steel products 13,8 122 112 134 Losses (slag, dust, waste) 21,8 126 9.4 170 CONSERVATION Total manganese use 35,6 248 20,6 304 Improvements in steel production technol- SOURCE Office of Technology Assessment ogy provide the best prospect for the reduction of manganese import vulnerability. Careful 9.5 pounds per ton, a decline of over 45 per- measurement of sulfur levels and manganese cent from current levels. additions, resulting in manganese contents near the lower level allowed by steel specifications, can result in reductions of manganese SUBSTITUTION consumption per ton of steel by about 8 percent. External desulfurization, which reduces The bulk of manganese consumption is in manganese requirements, may provide even steelmaking, and in this application there is more dramatic savings and so may up-to-date no satisfactory alternative, with the exception steelmaking techniques such as continuous of the use of rare earths in a limited group of casting, which keep to a minimum internal, or applications that can justify the sharply higher “home” scrap that in each cycle through the cost, steelmaking process contributes to inevitable losses of manganese in slag. Platinum Group Metals

As shown in table 1-4, 35.6 pounds of man- PRODUCTION ganese are used on average to produce one ton The Soviet Union and South Africa account of steel, 17.8 pounds of which is provided by for over 90 percent of world PGM production, imported manganese ore and ferromanganese. with most of the remainder coming from Can- Only 13.8 pounds remain in the steel while the ada. Production in all other countries accounts other 21.8 pounds is lost in slag, dust, and for only 1 percent of world production. Cana- waste. By the year 2000, the average manga- dian production results from byproduct recov- nese content of steel is likely to decline slightly ery from copper-nickel ores and cannot be ex- to 12.2 pounds per ton of product, but major panded substantially without corresponding reductions are expected in the amount of man- increases in the production of these metals. ganese lost. The net result will be a reduction Since economics do not favor increases in cop- in total manganese consumption per ton steel per or nickel production, Canada cannot be from 35.6 to 24.8 pounds. Even more striking, considered an important diversification oppor- and more important from a security of supply tunity. viewpoint, the consumption of imported manganese ore and ferromanganese is estimated The United States offers the only significant to decline from 17.8 pounds per ton of steel to opportunity to affect, even slightly, the domi- 28 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability nating role of South Africa and the U.S.S.R. in essed, but this is hampered by the high labor PGM production. While minor amounts of intensity required to identify and separate PGM are obtained as a byproduct from three platinum-bearing components. Catalytic con- U.S. copper mines and, in the past, from placer verters are now beginning to enter the scrap deposits such as Goodnews Bay, AK, there are yards in sufficient quantities to interest plans under consideration to develop resources platinum recyclers, and a number of firms are of platinum group metals in the Stillwater Com- showing interest in processing the converters plex in Montana. This deposit could produce to recover the contained platinum group metals. 175,000 troy ounces of platinum group metals Platinum metal available annually from cata- annually, or between 2 and 3 percent of cur- lytic converters, which was about 115,000 troy rent world production. This operation is under ounces in 1982, is projected to grow to over evaluation and review, and the decision to go 800,000 ounces in 1995 (fig. 1-2), Actual re- ahead with development will rest on assump- covery will probably not exceed 500,000 troy tions of stable or increasing metal prices, ounces, since only about 70 percent of obsolete cars and trucks reach automotive dismantles Undiscovered domestic deposits of platinum where converters may be removed for recy- group metals are almost certain to exist, most cling, and some PGM is lost in processing. likely as placer deposits such as Goodnews Bay and as byproducts of copper-nickel sulfides, Al- It is also possible that new engine designs though less likely, another major domestic may allow the reduction of pollutants without PGM deposit, similar to the Stillwater Com- the need for catalytic converters. However, the plex, could exist, Exploration for such a deposit wide-scale adoption of any significantly new would face problems similar to those described automotive engine is not likely until the next for chromium and for cobalt-bearing copper- decade, and long-term prospects will depend nickel sulfides. As with those metals, prospects on price and performance factors, not on po- for success in exploration for PGMs would be tential savings of platinum group metals. enhanced by improvements in geophysical, geochemical, and drilling technology and by advances in the understanding of the geologic SUBSTITUTION processes that formed PGM deposits, Substitution opportunities for platinum group metals are greatest for electronic components, CONSERVATION Gold is a substitute for platinum in electric and As with manganese, conservation technology communications relays, with substitution deci- provides the greatest opportunity for the reduc- sions being based on the relative prices of gold tion of materials import vulnerability in plati- and platinum, Silver and palladium alloys may num group metals. Platinum contained in in- be used in place of pure platinum in many ap- dustrial catalysts is already extensively plications, although platinum may offer su- recycled, but the recovery of platinum group perior performance and reliability. Palladium, metals from electronic scrap and from obsolete now used in ceramic capacitors in rapidly in- automotive catalytic converters is less exten- creasing amounts, may be subject to substitu- sive. There are no major technological barriers tion in 5 to 10 years as technologies using to recovery of platinum group metals from ei- silver, nickel, and lead electrodes are im- ther type of scrap. Instead, the principal bar- proved. In catalytic applications, however, the riers are in the collection of scrap from widely outlook for substitution is dim. Unless new de- dispersed locations for processing at central velopments arising from advances in the study facilities, Scrap from electronic manufactur- of surface science and chemistry lead to new ing plants is the easiest to collect, and recycling catalytic systems, the high efficiency and long operations are well underway in this area. Ob- lifetime of platinum catalysts make them vir- solete electronic components are also proc- tually irreplaceable. Ch. 1—Summary ● 29

Figure 1-2.— PGM Demand vs. Potential Supply From Recycling 1500

PGM needed for new vehicle production 1000 PGM available from scrapped vehicles

500

0 — 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 Model year

SOURCE Sierra Research

Implementation of Technological Approaches uate various technological approaches for reducing U.S. import vulnerability. The law There are many technological approaches to emphasizes the importance of research and de- reducing import vulnerability for each of the velopment activities related to all stages of the four first-tier strategic materials. These are materials cycle (from exploration and mineral summarized in the preceding section. They extraction through recycling and disposal) in vary in the potential contribution they could addressing materials problems, The law applies make to the reduction of vulnerability, in the to all materials, not just those for which the cost of carrying them out, in the period of time United States is import dependent, but many when they are effective, and in the assurance of its provisions apply to strategic materials in that they will fulfill their potential. These fac- particular, tors, as well as the interrelationships among the approaches, mean that it is important to di- The Critical Materials Act (Public Law 98- rect and coordinate the implementation of 373) requires the Administration to establish technology toward specific goals, As a result, a Critical Materials Council, reporting to the the management of strategic materials policy Executive Office of the President. The Coun- is critical to the successful implementation of cil is required, among other things, to prepare the various approaches. The following sections a critical materials report and assessment, to address alternatives available to the United be reviewed and updated on a biennial basis, States, both in the general management of and also to prepare a Federal program plan for materials policy, and in the implementation of advanced materials, to be annually reviewed. the technologies. The Council is also to review annual authorization and budget requests related to Federal Legislative Guidance for Strategic Materials Policy material activities, so as to ensure close coordination of goals and directions of such programs The 1980 National Materials and Minerals with Council policies. Policy, Research and Development Act (Pub- lic Law 96-479] provides a basic policy frame- In addition, several other laws, already in work that could be used to develop and eval- place, could be employed should Congress 30 Ž Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

wish to encourage private industry to adopt gress, and a Department of Defense report (due technical alternatives to reduce import vulner- to Congress in late 1981) has not yet received ability. Title III of the Defense Production Act Administration clearance. Although a policy- (DPA) of 1950 authorizes direct Federal sub- making structure, based in the Cabinet Coun- sidies, purchase commitments, loan guaran- cil on Natural Resources and the Environment tees, and other instruments to assure availabil- and the renewed Committee on Materials, was ity of essential defense materials and industrial established by the Administration, there is processing capabilities. The main use of Title strong evidence that materials policymaking III has been to encourage domestic production procedures remain relatively uncoordinated, of strategic materials, especially during the Ko- both among agencies and among technologi- rean war and its aftermath, but DPA also could cal approaches. be used to encourage other private sector ac- It was the goal of the 1980 act to require the tions, such as development of processing tech- coordination of agencies over the range of nologies and substitute materials. Congress, in materials technologies. Since this goal has not April 1984, authorized the appropriation of up been fulfilled, Congress may wish to consider to $100 million to the Department of Defense further action to assure compliance, for exam- for Title III projects for fiscal years 1985 and ple by establishing specific reporting dates for 1986, and provided new criteria for Presiden- the OSTP and the Department of Defense, and tial review of proposed projects before they are by requiring submission of a revised program undertaken. Other measures of potential rele- plan, with the explicit requirement that the vance to implementation of these technical plan include evaluation of the role of substitu- alternatives include Federal stockpiling law tion and conservation technologies in U.S. stra- (comprehensively amended in 1979 as the Stra- tegic materials policy. tegic and Critical Materials Stock Piling Revi- sion Act), the Minerals Policy Act of 1970, and Another alternative to improve the coordi- the Stevenson-Wydler Technology Innovation nation and direction of Federal strategic ma- Act of 1980, which emphasized transfer of fed- terials policy would be to require the Admin- erally developed technological innovations to istration to prepare, on a regular basis, a the private sector. multi-year strategic materials program plan that would establish long-term goals and ob- Structure and Information for Strategic Materials Policy jectives for materials policy, Such a plan could be submitted on a 4-year schedule, reflecting The 1980 materials act required the Execu- the long-term goals of each Administration, tive Office of the President to assume a more active role in coordinating and formulating Goals, Objectives, and Coordination of materials policy, beginning with preparation Federal Materials R&D of a materials program plan to be submitted to The Federal Government is the principal Congress by the President on a one-time basis. sponsor of research related to strategic mate- The plan, submitted in April 1982, emphasized rials. This research is conducted through many domestic production and stockpile issues. It agencies in the Government, with the Depart- did not encompass the full range of technologi- ments of Defense, Energy, Interior, and cal issues (including substitution and recycling) Commerce and the National Aeronautics and emphasized in the 1980 act. Space Administration being major sponsors. In In spite of strong statements of interest in the past, this research has succeeded in devel- strategic materials issues, the Administration oping many of the technological alternatives has yet to carry out all of the provisions of the identified in this report. However, goals of this 1980 act. Specific reports required of the White research are often narrowly directed towards House Office of Science and Technology Pol- problems of specific interest to the sponsoring icy (OSTP) have not been submitted to Con- agency. Ch. 1—Summary ● 31

Many of the technological approaches iden- opment policies of producer nations are strong, tified in this report will yield their benefits only actions to expand the range of suppliers, both in the medium to long term. To obtain these ben- through diversity of foreign supplies and do- efits, executive branch policies need to be clearly mestic production, can be taken. Four alterna- defined and stable over a number of years, Estab- tives to broaden the range of suppliers and pro- lishment of research priorities among materials, ducers are discussed below. The opportunities identification of specific objectives for Federal for production of strategic metals from known programs, and formulation of overall strategies domestic deposits are summarized in table 1-5. may be needed so that individual agencies can better plan their research, development, and Domestic Production of Strategic Materials budget priorities. Reasonable prospects exist for domestic pro- Information developed so far in response to the duction of 5 to 10 percent of U.S. demand for 1980 materials act is insufficient to provide a platinum group metals. Opportunities for the basis for coordinated interagency responses to development of domestic resources of other strategic material issues. A 1983 inventory of first-tier strategic materials are limited to sev- materials research conducted by the Committee eral low-grade cobalt deposits. Industry evalua- on Materials (COMAT) did not disaggregate re- tion of these deposits, located in Idaho, Mis- search funds by specific material or by research souri, and California, indicate that about 7.7 activity. Nor has COMAT required individual million pounds of cobalt could be produced an- agencies to identify all strategic materials re- nually over a 10- to 15-year period. However, search within their own organizations. at current market prices for cobalt (and for the nickel, copper, lead, and zinc also found in the Without more detailed information as to the various deposits) development of these re- level of research support, by agency, by type of research and by material, Federal objectives for sources in competition with the existing low- cost producers in Zaire and Zambia will not strategic materials policy cannot be established proceed. Further R&D on ore concentration in an effective manner. In order to strengthen and processing systems might improve the out- the Federal mechanism for policy formulation, look for development somewhat, but the only Congress may wish to provide additional guid- means to ensure the development of these re- ance to the Administration for the review of Fed- sources is through Government purchase con- eral strategic materials R&D as required by the tracts for metal produced from the mines. Pro- Critical Materials Act, duction of cobalt from the Idaho and Missouri deposits would require long-term (10 years or Mineral Production and Metal Processing more) commitments to purchase cobalt output The current distribution of mineral produc- at $16 to $25 per pound. With recent contracts tion and metal processing facilities around the world is dictated largely by the economics of exploitation; although national policies to en- Table 1-5.—OutIook for Development of Known Domestic Deposits of Strategic Resources courage mineral development, promote employment, gather foreign exchange, or protect Chromium Cobalt Manganese Platinum the environment also affect the flow of invest- Good News Bay, AK — — 1-2 ment. The limited number of high-grade depos- Stillwater Complex, MT 3 — 1-2 Madison Mine, MO 2-3 its of the four first-tier strategic materials has Blackbird Mine, ID 2-3 — resulted in a narrow range of producers, and Gasquet Mountain, CA 2-3 2-3 – Duluth Gabbro, MN — 3 3 policies of foreign governments to promote — — local economic interests are contributing to a Domestic Manganese 3 –Not applicable declining role for domestic firms in the fer- I — Economic a[ current prices Z Marginally economic to subeconomlc -under conslderat!on tor exploitation roalloy processing industry. Although the pres- 3–Subeconomlc– not considered for commercial exploitation at current metals prices sures of market economics and of the devel- SOURCE Off Ice of Technology Assessment 32 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability for cobalt from Zaire running up to $12 per ing and exploration for these materials. The pound, the cost of subsidizing mine production lower costs, combined with improvements in of 2 million pounds of cobalt would run be- techniques directed toward the desired mate- tween $8 million to $26 million per year. For rials, could increase private exploration for the this cost, the United States would be assured first-tier materials. of cobalt production amounting to 16 percent Improved understanding of the geological of 1981 domestic consumption, processes that form deposits of strategic ma- According to industry estimates, develop- terials offers the greatest opportunity to expand ment of the Gasquet Mountain deposit at cur- domestic strategic materials resources. The rent prices for nickel would require cobalt benefits of increased research into the process prices in the $20 to $25 per pound range. How- of mineral formation and into techniques of ever, an increase in the price of nickel from predictive geology will only be seen in the long the 1983 average of $2.20 to $3.50 per pound term, but, since many promising areas for the might make cobalt economic at about $12,50 first-tier materials are covered by layers of per pound. However, such a dramatic increase glacial debris or sediment, predictive methods in the price of nickel is unlikely. may be essential if the Nation’s resource endowment is to be assessed. Exploration for Domestic Resources Diversity of Foreign Supplies The fact that known domestic resources of strategic materials are very limited does not The potential to diversify supply to reduce rule out the possibility that there may be sig- U.S. materials import vulnerability is greatest nificant deposits, as yet undiscovered. How- for cobalt and manganese. There are also op- ever, little domestic exploration for these min- portunities to diversify somewhat the supply erals is going on, The reasons are the high cost of chromium. Supply diversity, however, re- of exploration, combined with industry pessi- quires investment in and construction of new mism about the likelihood of locating depos- or expanded mining and transportation facil- its of chromium, cobalt, or manganese that can ities. The distribution of world resources and be profitable in current and projected markets, the economic policies of producer countries have resulted in the current distribution of pro- Several steps may be taken to increase the duction, so policies meant to encourage diver- potential for discovery of domestic resources sity of supply must somehow change the eco- of the first-tier materials. The Government can nomics of production in desired locations to provide economic incentives, principally through attract investment. the tax system, to improve the economics of exploration. The cost of the incentives could A first step to diversity of suppliers is for the be reduced by making them effective only for Government to identify and make known to exploration that leads to the development of private investors the most promising diver- the target materials. However, tax incentives sification opportunities. A basic program for can only improve project economics by a mar- this purpose is now underway in the Interna- ginal amount, so other action might be required tional Development Cooperation Agency where if exploration for strategic materials is to be en- the Trade and Development Program supplies couraged, funds for resource assessments of deposits of strategic materials, identifies potential U.S. Targeting of Government mineral resource participants in development activities, and assessments toward the first-tier materials and brings the potential participants together with increasing the detail of the assessments could resource experts and officials in the foreign identify areas of favorable potential for strate- country. gic materials. Government-supported research on improved geophysical and geochemical In some cases, uncertain legal environments technologies could reduce the cost of prospect- or restrictive foreign investment laws discour- Ch. 1—Summary ● 33 age development of mineral deposits. Prospects major inroads into what was once a strong U.S. for the diversification of supply of strategic industry. This is a matter of some concern, that materials could be improved by coordinating extends beyond the specific interests of the fer- actions by U.S. Government agencies, includ- roalloy industry, because domestic ferroalloy ing the Department of State, the Department processing facilities provided a capacity for of Commerce, the Export-Import Bank, the quick response to interruptions in the supply Overseas Private Investment Corporation, and of imported minerals, If one source of minerals U.S. participation in international development should be cut off, it would be necessary only banks and United Nations activities, to im- to expand foreign mine production elsewhere, prove both the political and the economic cli- not to increase capacity of ferroalloy plants as mate for the development of strategic materi- well. With decline of U.S. capacity, it would als in specific countries, A program of this type become more difficult and expensive to main- could be an integral part of U.S. foreign affairs tain production of ferroalloys for steel and activities, perhaps consisting of a redirection stainless steel production in the event that sup- of current resources and efforts rather than a plies from one of the major producers were in- commitment of new or increased Government terrupted. funds. If desired, however, economic incen- In the near term there are no technological tives, such as foreign assistance for infrastruc- fixes to improve the competitive state of the ture development or special tax treatment for U.S. ferroalloy producers, If domestic capac- U.S. investors, could be used to promote invest- ity is to be maintained, assistance must be of ment in specified projects, a political or economic nature instead. In the In all of the approaches to diversify supplies longer term, however, there are several oppor- of strategic materials, it is important that the tunities to increase the competitiveness of the Government target its efforts at specific mate- U.S. industry. The U.S. Bureau of Mines could rials and specific countries. In this way, the ef- support development of improved technology fectiveness of the Government’s resources can for existing facilities in order to increase labor be maximized and side effects, such as the pro- productivity and conserve energy and mate- motion of foreign production of nonstrategic rials. Such improvements, though incremental, minerals in competition with domestic mines, could help U.S. facilities compete with more can be avoided, modern facilities overseas, The Government could extend a greater degree of support, largely through policies targeted to encourage Ferroalloy Production Capacity investment by U.S. firms to modernize their For chromium and manganese, promotion of operations with new processes for the produc- diversification of the supply of minerals from tion of ferroalloys. Such processes, which are the ground is only a partial solution. These expected to produce substantial improvements metals are generally processed into intermedi- in energy conservation, will be used in new for- ate products, ferrochromium and ferromanga- eign facilities and, to be competitive, U.S. firms nese, before they are used in the production must adopt them as well. of steel. A strategy for diversification of supply should consider whether the processing of Substitution Alternatives these ferroalloys is also to be diversified or whether domestic processing of the ores into Substitution offers considerable potential to reduce U.S. materials import vulnerability with their alloy form is to be encouraged, respect to chromium and, to a lesser degree, For a variety of reasons, including the use cobalt. However, because of the satisfactory of newer facilities, lower labor costs, reduced performance, reasonable cost, and familiarity transportation costs, and various forms of local of chromium and cobalt containing alloys, government assistance, processing of ores into there has been little interest in developing, ferroalloys at or near the mine site has made testing, certifying, or using substitutes. 34 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

There are three major opportunities for the Government has a major interest in establish- Government to improve the materials vulner- ing it. The system would describe current uses ability status of the United States through sub- of strategic materials, identify the promising stitution: alternative materials, and maintain information on the performance of the substitutes and 1. by making information about substitutes other information users need to determine how widely available to consumers, thus pro- to adopt the substitutes. moting and speeding the adoption of substitute materials; Although supported by the Government, ma- 2. by developing, testing, and, where re- jor elements of the system could be conducted quired, certifying new materials lower in by private sector participants (materials and chromium and cobalt content for use in testing professional societies, trade associa- a limited number of industrial applications tions, universities, and individual industries) that account for large fractions of the crit- under Government-established guidelines, ical applications for these materials; and 3. by supporting the development of ad- Commercialization of Alternative Alloys vanced - materials, including ceramics, During World War II, the Government estab- composites, and unconventional metallic lished a system of National Emergency Steels compounds, through basic and applied re- for use by industry when shortages of raw search, education, and the development of materials made it impossible to meet demand design and testing methods appropriate for the alloys then in use. Now, laboratory re- for the new materials, search has identified a number of promising alloys that could become substitutes for the Substitution Information Systems high chromium and cobalt alloys in use today. These alloys are not ready for commercial use During times of chromium or cobalt supply because they require further testing in the lab- interruptions, interest in substitute materials oratory, evaluation of production techniques, rapidly increases. However, the period of time and evaluation of performance in actual oper- required to identify possible substitute mate- ating conditions, Since these testing and evalu- rials, test them for particular applications, and ation procedures may take a number of years modify production techniques for the substi- and several million dollars to complete, the tute materials can be quite long. During this alloys are not “on the shelf, ” ready to be used period of adjustment, consumers continue to in times of emergency. These alloys do hold demand these metals, drawing down the avail- promise for reducing the need for chromium able supplies, and resulting in high prices and and cobalt in critical applications, however. depletion of producer and consumer inven- The Bureau of Mines, the National Labora- tories. If the shortage is severe, the Government tories of the Department of Energy, NASA, the may be forced to allocate supplies to essential Defense Department, and the National Bureau applications to the detriment of other indus- of Standards could direct efforts toward testing tries and consumers. A system that helps users and evaluation of a limited number of alterna- quickly identify and adopt substitutes could re- tive alloys where the potential for strategic ma- duce the need for strategic materials, particu- terial substitution is greatest. To be effective, larly in nonessential applications, thereby free- such an effort would need to have the partici- ing materials from suppliers and in consumer pation of industry to identify the alternative inventories for use in essential applications. alloys to be evaluated. This approach is most To be useful, a substitution information sys- promising for a number of applications that tem must reflect the needs and concerns of in- now use stainless steel. Alternative alloys, low dustrial consumers, but, because of its impor- in cobalt, are also possible in superalloy ap- tance to the Nation as a whole as a means of plications, but the high cost of testing and qual- reducing materials supply vulnerability, the ification could push costs of a comprehensive Ch. 1—Summary ● 35 program to develop alternatives to the dozens 2. Improve Understanding of Advanced Ma- of cobalt-containing superalloy now in use terials: Unlike direct substitutes, which into the hundreds of millions of dollars. may be used in place of current materials with little modification of designs or man- Encourage Development of Advanced Materials ufacturing processes, advanced materials will require designs and processes to be Ceramics, composites, and unconventional developed around their specific properties. metallic materials have properties that suggest This means that academic institutions, they might serve as substitutes for conventional professional organizations, and individual materials that require strategic metals. Basic firms need to develop programs to train and applied research is still needed to over- engineers and designers in the proper come undesirable characteristics present in the selection and use of advanced materials. materials and difficulties in the processing of The Federal Government can assist in de- raw materials and the manufacture of compo- veloping these education programs by pro- nents. In addition, design methodologies for viding grants for the hiring of new faculty, use of the materials must be developed to em- acquisition of new laboratory equipment, phasize their advantages and minimize their and design of curricula emphasizing ad- disadvantages. Finally, up-to-date knowledge vanced materials. of the materials and the associated design and 3. Develop Testing and Certification Proce- manufacturing technologies must be dissemi- dures for Advanced Materials: Reliability nated to potential users, Three separate activ- and predictability are essential for any ities could further these efforts: engineering material. Until a large body 1. Coordinate Federal Advanced Materials of information on the properties of ad- R&D: Research and development on advanced materials is developed in the lab- vanced materials is conducted in many oratory and in the field, industry will not parts of the Government, but coordination adopt the materials. The same is true for is achieved largely through personal con- any new material; but in the case of ad- tacts and professional societies. Programs vanced materials the barriers are likely to are developed in response to individual be greater and the delays longer because agency objectives, resulting in fragmenta- testing methods and certification proce- tion and overlap of research efforts, Al- dures that reflect the special qualities of though it would be detrimental to attempt the materials, and the new design and to control rigidly all research in advanced manufacturing processes that will develop materials, increased interagency coordina- around them, do not yet exist. These bar- tion toward common goals could improve riers could be lessened if Government, in- the effectiveness of Government research dustry, and academia focus on developing and speed advances in understanding data on the properties of advanced mate- these new materials. Coordination of Gov- rials, establish appropriate testing meth- ernment research is a responsibility of the ods, and direct attention to certification executive branch, but Congress could fur- procedures to ensure that advanced ma- ther the coordination of Federal research terials are not restricted from some ap- on advanced materials through oversight plications unnecessarily. One approach of the progress of the Administration in could be the establishment of a nonprofit preparing its report on the status of Gov- center associated with a testing society, ernment R&D in advanced materials. Such professional organization, or academic in- a report could also raise the visibility of stitution under partial Federal sponsorship Federal work on advanced materials, re- for the purpose of overcoming barriers to sulting in improved coordination with pri- the use of advanced materials resulting vate industry and academic research. from lack of data as to material properties. 36 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

Conservation Approaches generation and disposal of scrap containing chromium, cobalt, manganese, and platinum Conservation offers a number of ways to re- group metals. Information from these surveys duce U.S. dependence on foreign sources of would be useful in planning Government R&D supply of chromium, cobalt, manganese, and efforts, in updating requirements for the na- platinum group metals. In many cases, conser- tional defense stockpile, and in identifying in- vation opportunities are already being imple- vestment opportunities for private businesses. mented, and others are under evaluation by private industry. In the case of manganese, it is Identify Specific Government Actions to Support likely that improvements in steelmaking tech- Recycling of Strategic Materials nology will continue so that U.S. requirements for imported manganese will decline sharply. In recent years, a number of Federal actions Recycling of catalytic converters is just begin- affecting air and water quality and waste dis- ning, and several major firms are considering posal have encouraged increased recycling. opportunities to expand into this area. Re- The potential effects of Government actions on covery of chromium and cobalt from steelmak- recycling are beginning to receive considera- ing, industrial, and chemical waste has begun tion by policy makers, For example, Govern- to rise in the past few years, driven in part by ment-established freight rates on scrap—pre- Federal laws and standards on air and water viously set at a level higher than the rates for quality and disposal of waste. Other oppor- shipping raw material—have been reduced. tunities are less likely to go forward under nor- The 1980 National Materials and Minerals mal conditions. Superalloy scrap from obsolete Policy, Research and Development Act di- aircraft components, a significant and reliable rected the Administration to assess the effects source of cobalt and chromium, is not likely of Federal policies that affect all stages of the to be used in the production of new superalloys materials cycle, including recycling and disso long as low-priced metal from foreign sources posal. A number of recycling activities are new makes it economically unattractive to invest in and their economics have not been tested com- the development of new recycling systems. mercially. In some cases these activities may The promise of conservation of strategic be affected substantially by Government pol- materials—even from those practices already icies. These recycling activities include the re- underway—is not assured. The strategic ma- covery of PGMs from catalytic converters, re- terials recycling industry is new, and our covery of chromium and cobalt from industrial understanding of it is incomplete. Three ap- and chemical wastes, recovery of cobalt from proaches to improve the prospects for conser- spent hydroprocessing catalysts, and recovery vation of strategic materials are discussed of cobalt and other metals from cemented car- below. bide scrap. Because these recycling industries are small or nonexistent, the effects of Govern- Update Information on the Recycling of ment actions on the recovery of strategic ma- Strategic Materials terials from waste or scrap is generally ignored, Yet these sources, combined, could be impor- Data on the generation and flow of scrap con- tant supplements to imports of chromium, co- taining strategic materials is incomplete and balt, and platinum. out of date. The United States is poorly prepared to utilize scrap as a source of strategic Congress could improve the outlook for con- materials in times of emergency. With more servation of strategic materials by requesting complete and detailed information, the Govern- that the Administration identify opportunities ment could develop more effective R&D pro- to promote the recycling of strategic materials, grams to enhance scrap recovery. Congress identify barriers to new or increased recycling, could direct the Bureau of Mines to conduct, and recommend to Congress ways to structure and update on a regular basis, surveys of the taxation, procurement, environmental, and —.—.

Ch. 1—Summary ● 37 other policies to encourage increased recycl- The capacity of the United States to respond ing. Such a study could be conducted by the to cobalt supply disruptions could be enha-need Department of Commerce as part of its series if the Government were to put “on-the-shelf” of evaluations of strategic materials issues and one or more of the new superalloy recycling U.S. industries. technologies by scaling the process up to a demonstration plant. Although relatively costly, Develop Recycling Technology for Superalloy Scrap on the order of $10 million, such a plant could make available the technology to recover high- Scrap from processing of superalloys and quality cobalt from nearly all forms of super- from obsolete aircraft engine components alloy scrap. This source was estimated to con- could provide a secure source of material contain 4 million pounds of cobalt in the year 1980, taining cobalt and chromium metal, At present, making it equivalent to several opportunities only a portion of this supply is reused in super- for domestic mineral production, Estimates of alloy. The remainder is either downgraded to the cost of metals produced from these recycl- less demanding uses (often completely wast- ing systems are proprietary, but are said to be ing the cobalt content), exported for use in in the range of $15 to $25 per pound of cobalt, other countries, or disposed of as waste. Sev- which is in the same price range as domestic eral technical processes to recover individual cobalt production. metals from superalloys have been developed, but so far have only been tested in the laboratory. CHAPTER 2 An Introduction to Materials Import Vulnerability Contents Page The Importance of Nonfuel Minerals Imports ...... 42 Changes in Amount of Imports ...... 42 Definition and Selection of Strategic Materials ...... 45 criticality ...... 46 Vulnerability .,...... 48 Selecting Strategic Materials ...... 51 Overview of Selected Strategic Materials ...... 53 Chromium ...... 53 Cobalt ...... 54 Manganese ...... 55 Platinum Group Metals ...... 56 A Perspective on Strategic Materials Selection ...... 57 List of Tables Table No. Page 2-1. U.S. Dependence, Selected Minerals, 1950-82...... 42 2-2. Materials To Rescreened ...... 51 2-3. Materials for Which the United States is Self-Sufficient or a Net Exporter ...... 52 2-4. U.S. Strategic Materials ...... 52 2-5. U.S. Consumption of Chromium, 1978-82 ...... 53 2-6. Sources of U.S. Chromium Imports ...... 54 2-7. U.S. Consumption of Cobalt, 1978-82 ...... 54 2-8. Sources of U.S. Cobalt Imports ...... 55 2-9, U.S. Consumption of Manganese, 1978-82 ...... 56 2-1o. Sources of U.S. Manganese Imports...... 56 2-11. U.S. Consumption of Platinum Group Metals, 1978-82 ...... 56 2-12. Sources of U.S. Platinum Group Metal Imports ...... 57 List of Figures Figure No. Page 2-1. Net Import Reliance As a Percent of Consumption, 1982 ...... 43 2-2. U.S. Imports of Chromate Ore and Chromium Alloys ...... 44 2-3. U.S. Imports of Manganese Ore and Manganese Alloys and Metals ...... 44 CHAPTER 2 An Introduction to Materials Import Vulnerability

The United States, despite its wealth of re- but count on flexible responses of the market sources, is a substantial importer of materials economy—e.g., alternate suppliers, substitu- for industry. To some observers, the Nation’s tions in use, and shifts from less to more es- reliance on these imports constitutes a dan- sential uses—to compensate tolerably well for gerous dependency, threatening a “materials supply cutoffs or dislocating price increases. crisis” more devastating than the recent energy crisis, Others see the U.S. position as quite There is some common ground in the oppos- manageable, though not without dangers and ing views. Both sides favor stockpiling im- difficulties. ported materials that are vital to national defense and essential supporting industries as an U.S. reliance on foreign sources for a num- insurance against supply interruptions. Both ber of important nonfuel minerals is not new agree that, for at least a few imported minerals, nor, in itself, a cause for alarm. What really continuity of supply is a serious question de- matters is whether import dependence makes serving a carefully considered government re- the United States vulnerable to a cutoff of sup- sponse. ply and whether that cutoff could have very damaging effects. In the past few years, these The short list of these generally agreed upon possibilities have raised a wave of concern. Un- “strategic” materials includes chromium, co- doubtedly, one factor in the crescendo of con- balt, manganese, and the platinum group metals cern was the success of the OPEC cartel in con- (which comprise platinum, palladium, rhodium, trolling oil production during the 1970s, raising iridium, osmium, and ruthenium). All of the the world oil price to unheard of heights, and— four have essential uses, including military at least temporarily—reducing oil exports to the uses, for which there are no readily available United States for political reasons. substitutes—or in some cases, no substitutes Today, many people believe that the United even in sight, For all of them, production from States is vulnerable to disruptions at least as domestic mines is negligible at best. Instead, serious as the oil crisis because of the nature, these minerals are imported, mainly from a level, and sources of U.S. materials imports. very few countries in the politically unstable Some fear that worse times are in store: they region of central and southern Africa, an area are persuaded that the Soviet Union is conduct- that, along with the Soviet Union, holds most ing a “resource war” against the United States of the world’s known resources of these impor- and its allies, with the threat of shutting off sup- tant minerals. plies of minerals from central and southern Thus, for a few specific materials at least, Africa that are vital to U.S. national defense most observers agree that the United States is and basic industries. in a vulnerable position. To shed light on the Others familiar with minerals issues believe, dimensions of this vulnerability, this chapter on the contrary, that the interdependence pol- looks at the significance of imported materials icy for minerals supply has served the Nation in general to the United States and its allies and well over the years and that the costs of self- discusses those factors that led to the selection sufficiency would be extremely high. Those of chromium, cobalt, manganese, and the plat- who take this view concede that the supply of inum group metals for in-depth assessment in some imported materials could be interrupted, this report.

41 42 Ž Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

The Importance of Nonfuel Minerals Imports

In terms of dollar value in world trade, U.S. Table 2-1.–U.S. Dependence, Selected Minerals, 1950-82 reliance on imports of nonfuel minerals is mod- (net imports as percent of apparent consumption) erate. The United States is still a leading world 1950 1970 1979 1980 1981 1982 minerals producer as well as the world’s largest Bauxite a ...... 71 80 93 94 94 96 minerals consumer. In 1981, as the dollar rose Chromium ...... 100 100 90 91 90 85 against other currencies, U.S. imports of non- Cobalt ...... 92 96 94 93 92 92 Copper ...... 35 8 13 16 6 1 fuel minerals (raw and processed) amounted Iron ore...... 5 30 25 25 22 34 to $17.6 billion, exports were $28.8 billion, and Lead ...... 59 40 5 O b 1 3 thus net imports were $11.2 billion, a moder- Manganese ...... 77 94 98 98 99 99 ate sum when compared to U.S. net energy im- Nickel ...... 99 91 75 76 75 76 1 Platinum ...... 91 98 89 88 84 80 ports, which were $75 billion. Tungsten ...... 80 40 58 53 50 46 Zinc ...... 37 60 63 60 64 58 The overall figures, however, aggregate a a1979-82, Includes alumina bNet export great many unlike materials, from scrap steel NOTE: Net imports = imports exports + adjustments for government and in- to gem and industrial diamonds to fertilizers. dustry stock changes SOURCE 1950, 1970: Report of Nat/orra/ CornrrJIssIon on Material Policy, June It is particular kinds of minerals—materials 1973, pp 2-23 1979-82: U S Deptiment of the Interim Bureau of Mines, needed for basic industry and vital ingredients M/nera/ Comrnod/ty Summaries 1984 for military hardware—that are the center of concern, Figure 2-1 shows the extent of U.S. It is worth noting the modest dollar value of reliance on imports of 34 important nonfuel many of the materials for which the United minerals and metals as of 1980. Nearly all of States is most import dependent. For example, the manganese, bauxite, cobalt, tantalum, and the entire year’s bill for 1981 imports of cobalt, chromium used in the United States is mined chromium, and manganese was between $230 in foreign countries. Imports of other impor- million and $300 million apiece—equivalent to tant minerals—the platinum metals group, as- 1½ days (at most) of oil imports. The fact that bestos, tin, nickel, zinc, cadmium, and tung- the quantities involved are relatively small and sten—range from 85 to 50 percent of U.S. total costs low does not imply that imports of consumption. 2 Even iron ore, once supplied these materials are insignificant; some are vi- wholly by domestic mines, now comes in sub- tal. It does imply that even a sharp rise in price stantial amounts from foreign mines. As table for the materials might have no great effect on 2-1 shows, import dependence was high 30 the economy as a whole (a point to keep in years ago for much the same list of minerals mind later, in the discussion of possible cartel that is the focus of concern today: In 1952, for- control). It also indicates that stockpiling these eign mines provided 70 to 80 percent of the Na- materials, as a way of assuring a reliable sup- tion’s bauxite, manganese, and tungsten, and ply, can be practical and relatively inexpensive. 90 to 100 percent of its platinum, cobalt, nickel, and chromium. a Changes in Amount of Imports U.S. minerals imports increased from 1950 I Unless otherwise noted, data on production, consumption, and imports of nonfuel minerals comes from the Bureau of to the 1980s, but at a modest pace overall, and Mines, Department of the Interior. Energy data was provided not uniformly for all minerals, (Import depen- by the Department of Energy. dence as a percentage of U.S. consumption for “’Consumption” here means apparent consumption, which is domestic primary production, plus recycled materials and net platinum, nickel, and chromium declined, imports, adjusted to reflect releases from or additions to indus- mostly because of recycling.) In general, the try or government stocks. gradually rising flow of imported minerals into 3The President’s Materials Policy Commission, Resources for Freedom (Washington, DC: U.S. Government Printing Office, the United States reflects lower prices of for- 1952), vol. 1, pp. 6 and 157. eign materials, often because the ores being Ch. 2—An Introduction to Materials Import Vulnerability ● 43

Figure 2-1.— Net Import Reliance As a Percent of Consumption, 1982 Major foreign sources, 1978-81 and percent supplied, 1982

Columbium Brazil (73) Canada (6) Thailand (6) Industrial diamond stones S. Africa (61) Zaire (14) Bel-Lux (8) UK (6) Natural graphite Mexico (60) Korea (12) Madagascar (5) China (5) Mica sheet India (83) Brazil (11) Madagascar (4) Strontium Mexico (99) Ore: Gabon (32) S. Africa (24) Australia (18) Brazil (15) Manganese Ferro Mn: S Africa (42) France (25) Mexico (7) Bauxite and aluminum Jamaica (40) Guinea 28 Suriname (13) Alumina: Australia (76 ) Jamaica (15) Suriname (8) Cobalt Zaire (38) Zambia (13) Bel-Lux (11) Finland (6) Tantalum Thailand (38) Canada (11) Malaysia (8) Brazil (7) Chromium Chromite: S. Africa (44) USSR (18) Philippines (17) FeCr: S. Africa (71) Yugoslavia (11) Zimbabwe (6) Brazil (?) Fluorspar Mexico (60) S. Africa (30) Italy (4) Spain (3) PGM S. Africa (56) USSR (16) UK (11) Nickel Canada (44) Norway (11) Botswana (9) Australia (8) Asbestos Canada (97) S. Africa (3) Tin Malaysia (39) Thailand (21) Bolivia (17) Indonesia (?) Ilmenite Australia (59) Canada (34) S. Africa (6) Potash Canada (94) Israel (3) Cadmium Canada (27) Australia (18) Mexico (11) Korea (9) Rutile Australia (77) S. Africa (8) Siera Leone (7) Gallium Switzerland (65) Canada (12) Germany (10) China (?) Silver Canada (37) Mexico (24) Peru (23) UK (5) Ore & core: Canada (59) Peru (17) Mexico (8) Zinc Metal: Canada (51) Spain (8) Mexico (6) Australia (?) Selerium Canada (44) Japan (17) Germany (8) UK (8) 1 Tungsten 1 Canada (21) Bolivia (19) China (14) Thailand (7) , Metal: Bolivia (38) China (34) Mexico (10) Belo Lux (7) Antimony Ore & core: Bolivia (36) Canada (19) Mexico (19) Chile (8) I Oxide: S. Africa (44) China (15) France (14) Bolivia (11) Mercury Spain (34) Japan (21) Italy (12) Algeria (10) Gold Canada (52) USSR (20) Switzerland (17) I I Iron ore Canada (64) Venezuela (16) Brazil (9) Liberia (?) k Iron and steel Europe (37) Japan (34) Canada (14) r J Silicon Canada (25) Norway (22) Brazil (14) S. Africa (?) I I Vanadium S. Africa (58) China (10) Canada (8) r 1 Titanium sponge , 1 Japan (81) China (10) USSR (8) UK (1) Copper I Chile (32) Canada (22) Peru (14) Zambia (11) Aluminum II I Canada (62) Ghana (11) Norway (4) Japan (4) u J

NOTES Net Import reliance IS figured as percent of apparent consumption, except for rutlle, for which net import reliance IS figured as percent of reported consumption Net Imports = Import exports + adjustments for government and industry stock changes Apparent consumption = U S primary and secondary production + net imports

SOURCE U S Department of the Intenor, Bureau of Mines 44 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability . mined abroad are richer, although other fac- Figure 2-2.— U.S. Imports of Chromite Ore and a tors such as lower labor costs or government Chromium Alloys subsidies may also be important. The U.S. 600 minerals economy is managed, on the whole, by a great many private businesses looking for the best deal they can get.

Changes in Use of Imports While nonfuel minerals imports of the United States have slowly risen, significant changes in the uses of imports have taken place. Growth has occurred in selective demand for specialty steels using chromium, for high-strength, high- temperature superalloy using cobalt and chro- I mium, and for cobalt catalysts. Also, in the 10 years from 1970 to 1980, annual consumption Years of cobalt for superalloy (which are particularly aTOn~ of contained chromium. important for aerospace applications, military SOURCE: U.S. Bureau of Mines data. and civilian) roughly tripled, rising from about 2 million to over 6 million pounds. Use of cobalt in catalysts quadrupled. Platinum group Figure 2-3.—U.S. Imports of Manganese Ore and consumption jumped from 1.4 million troy Manganese Alloys and Metalsa ounces in 1970 to 2,2 million in 1980, of which more than 700,000 troy ounces went for catalytic converters to control pollution from automobile exhausts. Use of platinum as a catalyst in petroleum refining has also grown, rising from less than 40,000 troy ounces in 1960 to 171,000 in 1980. In the severe worldwide 1981- 83 recession, U.S. consumption of all these metals declined, but recovery is now in evidence.

Changes in Form of Imports Nonfuel mineral imports are no longer mostly in the form of raw ores. Instead, minerals- producing countries like South Africa are now 1969 1971 1973 1975 1977 1979 1981 Years taking advantage of their lower wages, prox- aTon~ of contained manganese. imity to raw materials, cheaper energy, and SOURCE: U S Department of the Interior, Bureau of Mines data modern new processing facilities, to export processed materials such as ferroalloys4 rather than chromite and manganese ores, Figures 2-2 to 75 percent of manganese imports; at the be- and 2-3 show how rapid this change to impor- ginning of the 1970s they amounted to only 20 tation of ferroalloys has been. The United percent of the total. As part of the same proc- States now imports 35 to 50 percent of its chro- ess, the domestic ferroalloy industry has mium in ferroalloy form, compared with 8 to shrunk remarkably, from production levels of 12 percent a decade ago. Ferromanganese and 2.6 million to 2.8 million tons in the peak years refined manganese metal now account for 60 of 1965 to 1970, to 1.5 million tons in 1981 and 4Alloys of iron and other elements, used as raw material in an estimated 800,000 tons in the recession year the production of steel; e.g., ferromanganese and ferrochromium. of 1982. Ch. 2—An Introduction to Materials Import Vulnerability ● 45

This has led to concern that if international Similarly, if a major high-grade deposit of chro- trade were restricted or disrupted, it might be mium or manganese were discovered, we difficult to replace lost supplies of ferroalloys might not have the production capacity to pro- with imports of chromium or manganese ores duce ferroalloys until facilities were expanded, from other sources, because of the lack of U.S. which could take several years. facilities to process the ore into ferroalloys.

Definition and Selection of Strategic Materials

One of the greatest difficulties in assessing erals policy, that all minerals are strategically import vulnerability lies in defining what ma- important in a complex industrial society, B terials are strategic. There is no fixed, univer- By this definition, however, every element sally accepted definition of the term “strate- of production—land, energy, labor, capital, gic material, ” Much depends on the purpose technology—is also essential and therefore stra- of the definition. For purposes of a national tegic, and the term becomes so broad as to lose stockpilers present U.S. law defines “strategic any practical meaning. Moreover, a definition and critical materials” in the context of a of strategic materials as all those that are hypothetical, complete cutoff of foreign sup- “wholly or substantially from foreign sources” plies during a 3-year national emergency, The is not widely accepted, First, it leaves out the Strategic and Critical Materials Stock Piling element of critical needs for particular mate- Revision Act of 1979 (Public Law 96-41) says: rials. Then, it seems automatically to equate The term “strategic and critical materials” import dependence with vulnerability. Many means materials that (A) would be needed to materials analysts do not accept this equation supply the military, industrial, and essential as a guide to policy decisions.7 Moreover, it civilian needs of the United States during a runs counter to a major shared conclusion of national emergency, and (B) are not found or the materials commissions that have reported produced in the United States in sufficient to three American Presidents over the past 30 quantities to meet such need. The term “na- years; that is, that the Nation should seek ma- tional emergency” means a general declaration terials wherever they may be found, at the least of emergency with respect to the national defense made by the President or by the Congress. cost and consistent with national security and the welfare of friendly nations, In the context of broader materials policy, former Secretary of the Interior James B. Watt gave the term “strategic” a more elastic mean- 8U. S. Congress, Senate Committee on Energy and Natural Re- ing. In 1981 testimony before the House Sub- sources, Subcommittee on Energy and Mineral Resources, Hear- committee on Energy and Mineral Resources, ings on Strategic Minerals and Materials Policy, 97th Cong., 1st sess., Apr. 1, 1981, p. 4. he said: 7 See, for example, Congressional Research Service, A Congres- It is not my intention to limit the word “stra- sional Handbook on U.S. Materials Import Dependency/Vul- nerability, Report to the Subcommittee on Economic Stabiliza- tegic” to its former definition of minerals tion, Committee on Banking, Finance, and Urban Affairs, House wholly or substantially from foreign sources. of Representatives, 97th Cong., 1st sess., September 1981, p. 7, We must acknowledge, as an element of min- p. 341 ff; Hans Landsberg and John E. Tilton, “Nonfuel Min- erals, ” in Current Issues in Naturai Resource Policy, Paul R. Port- ney with Ruth B. Haas (eds. ) [Baltimore: The Johns Hopkins 5Current stockpile planning is based on the military, indus- University Press, 1982); Robert Legvold, “The Strategic Impli- trial, and essential civilian requirements of the first 3 years of cations of the Soviet Union’s Nonfuel Minerals Policy, ” paper a major conflict, assuming that austerity measures are taken to prepared for the School of Advanced International Studies, The sustain defense production. Johns Hopkins University, May 1981. 46 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

In its 1981 Preliminary Assessment of stra- Criticality tegic metals, the Materials Forum of the United Kingdom discussed the term “strategic” in this The criticality of materials has to do with way:8 how they are used. Three main factors are part of the concept: The term “strategic minerals” has traditionally been used in the United Kingdom to refer • Essential use for national defense. to those minerals which are vital to the national ● Essential use for industry. defense and yet have to be procured entirely ● Lack of suitable substitutes. or in large part from foreign sources. However, in this country, “strategic” no longer has a Essential use for national defense means that, mere defense connotation when attached to without the material, the Nation’s capacity to minerals; it has come to have a wider mean- defend itself could be seriously compromised. ing, somewhat obscure, and A. A. Archer of Examples of material uses that are vital to na- the Institute of Geological Sciences in London tional defense are cobalt in superalloy for jet has recently shown how this can be clarified. engine turbine blades and discs, where resis- He believes it is useful to distinguish some tance to heat under conditions of high stress minerals from others by disengaging two main is necessary; or chromium for jet engines, to strands. One is, that some minerals are more withstand hot corrosion and oxidation; or the important, vital, essential or critical than others manganese used industrywide in steelmaking because they make a demonstrably greater con- to eliminate faults in steel that arise from sulfur tribution to the national well-being, so that in- content. terruption or cessation of supplies, from whatever source, would have graver consequences. Essential use for industry is another main fac- This can be described as the degree of “crit- tor. Use of the materials must fill such an im- icality” of a mineral. The other strand is the portant need that without it, industries that are “vulnerability y“ of supplies to interruption; basic to the Nation’s economic well-being and some minerals have sources which may be to military production could be crippled. judged to be more vulnerable than others. Al- though the concept of vulnerability is mainly Materials vital to national defense are likely linked with imports, the possibility of the dis- to be essential for industry, as well, in the same ruption of domestic supply cannot be entirely or other applications, Industrial machinery is overlooked. a prime example. The machine tools that shape, The concepts set forth above are used in this stamp, cut, and drill all metal goods, military report as the basis for a definition and selec- and civilian, are made of manganese-bearing tion of strategic materials, steel. The best binder for carbide cutting tools and drill bits is cobalt, Another example is in Not surprisingly, both the selection of criteria the aerospace industry, where jet airplanes for and the screening of materials against the cri- civilian use have much the same material re- teria involve a good deal of qualitative judg- quirements as do military planes. ment. OTA’s assessment uses quantitative measures as much as possible. Also, it builds Industrial uses for some critical materials on the earlier efforts of others to define and list cover a broad spectrum, ranging from virtu- strategic materials. (See app. A.) In the end, ally indispensable to nonimportant. Chromium however, any list of strategic materials must is an example: stainless steel cannot be made reflect the judgment of its authors. without it. Of the hundreds of industrial uses for stainless steel, some—e.g., automobile bum- pers or hub-caps—are easily replaceable; for —. —— 8The Materials Forum, Strategic Metals and the United King- others—e.g., corrosion-resistant pipes in oil dom: A Preliminary Assessment, published by the Institution of refineries—nothing else now available serves Mechanical Engineers, July 1981, p. 3. as well. Ch. 2—An Introduction to Materials Import Vulnerability ● 47 ——-

Photo credit Arner/can Petro/eurn /nst/tufe and Exxon CorLJ Petroleum refiners are major consumers of strategic materials in steel, stainless steel, and processing catalysts

Closely related to the concept of essential use The economic dependence of the Nation on is the lack of suitable substitutes. This implies particular materials is sometimes mentioned that substitutes, if available at all, either cost as a factor in criticality. One of the conven- much more or involve important sacrifices of tional measures of economic importance—the properties or performance. In a few cases (e.g., dollar value of the material consumed or im- chromium for corrosion resistance) there may ported per year—is not a useful criterion for be no real alternative at present levels of tech- critical function. Several materials that have nology in some critical industrial and defense essential uses but no substitutes readily avail- applications. able are quite low in dollar value; for example, net imports of cobalt, chromium, and manga- One aspect of substitution is simply the replacement of one material for another—nickel nese each ran about $230 million to $300 million in 1981–a drop in the bucket in a $3 for cobalt, for example, in some superalloys. trillion-per-year economy. Yet even a partial Some of these substitutions replace one criti- loss of supplies of these materials could have cal metal with another. Of obviously greater serious effects on production, jobs, and the sur- value is the replacement of a scarce material vival of business firms in the many industries with an abundant one—advanced ceramics for instance, may be a long-term replacement for where their uses are essential (e. g., steel, aero- metal superalloys. space, and automotive industries). 48 • Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

Exactly how much the economy as a whole omy (in terms of higher prices) were estimated would suffer from a sudden drop in the sup- as $1 billion for 1985 and $1.8 billion for 1986 ply of specific critical materials is hard to cal- (in 1980 dollars). A Commerce Department culate. Cranking figures on supply loss through study, which assumed a 75-percent reduction an economic input-output model may appear in output in Zaire and Zambia in 1985, came to be systematic and objective, But such models to similar conclusions: 23 percent lower cobalt can produce highly unrealistic results if they consumption, forced substitution, little lost out- make no allowance for compensatory moves put, Extra cost to the economy of high cobalt by users of the material in question.9 Studies prices was estimated at $2.5 billion—assuming of chromium and cobalt shortages are worth a cobalt price of $112 per pound (more than noting at this point. twice as high as the top price during the cobalt price spike of 1978-79, and over 20 times The National Materials Advisory Board the 1982 price). The inflationary pressure of (NMAB) (of the National Academies of Science this price increase was reckoned as no more and Engineering) in its 1978 study of chro- than 0.1 percent in the economy as a whole, mium conservation opportunities, concluded that about one-third of U.S. chromium use Analysis of the effect of material shortfalls could be quite promptly replaced in an emer- on the economy as a whole is at an early, unre- gency. Without specifying any dollar figures, fined stage.12 In addition, because these eco- the study observed that replacing a chromium nomic effects are a reflection of the essential shortfall of this magnitude would “not have nature of the material’s uses and the lack of serious economic consequences on industrial substitutes, it seems needlessly complex to add dislocations.” 10 The study also refrained from “economic effects” as another criterion of criti- estimating the economic costs of a greater cality. Thus, for the purpose of this chapter, shortfall cutting into uses which could not be which is to select a list of strategic materials quickly replaced; obviously the effects of such for study, no attempt was made to quantify the a shortfall would be greater. economic effects of losing a part or all of the supply of candidate materials. Rather, eco- In its 1982 study of cobalt, the Congressional nomic effects were simply kept in mind as a Budget Office reported cost estimates of a co- part of the meaning of criticality, balt supply cutoff that took into account the buffering effects of private stocks, materials Vulnerability substitution, scrap recovery, and alternative 11 suppliers. The Department of the Interior pro- Among the conditions that affect supply vul- vided a range of cost estimates, depending on nerability, a most important factor is lack of various political assessments. The most ex- diversity of supply. Reliance on a sole supplier, treme case (considered highly improbable) in- even a highly reliable one, can be risky. Of the volved a 2-year shortfall (in 1985-86) from both few significant interruptions in U.S. materials Zaire and Zambia. In this extreme case, U.S. supply in the past 30-odd years (described in cobalt consumption was expected to drop 20 ch. 4), the most disruptive was probably the loss percent in 1985 and 35 percent in 1986—but of nickel from Canada during the 4-month nickel with little loss in economic output, mainly be- strike in 1969. Canada was at that time the cause of substitution. Extra costs to the econ- source of 90 percent of new (nonrecycled) U.S. nickel supplies. ‘Hans H. Landsberg, “Minerals in the Eighties: Issues and Pol- icies: An Exploratory Survey, ” paper prepared for the Oak Ridge .National Laboratory, Oak Ridge, TN, 1982, pp. 30-31. 12A recent attempt to quantify economic effects Of materia]S IONationa] Materials Advisory Board, Contingency Plans for supply disruptions, using a neoclassical econometric model of Chromium Utilization, NMAB-335 (Washington, DC: National the primary metals industry is reported by Michael Hazilla and Academy of Sciences, 1978]. Raymond J. Kopp, “Assessing U.S. Vulnerability to Mineral Sup- IICongressiona] Budget Office, Cobalt: Policy Options for a Stra- ply Disruptions, An Application to Strategic Nonfuel Minerals, ” tegic M;neral (Washington, DC: U.S. Government Printing Of- paper prepared for Resources for the Future, Washington, DC, fice, 1982), pp. 21-24. draft May 5, 1982. Ch. 2—An Introduction to Materials Import Vulnerability ● 49

U.S. imports of critical minerals are part of cussed in some detail in chapter 4, the last ap- the nexus of world trade in these commodities. pears most likely. If one of its usual suppliers fails for some rea- Instability in foreign sources of supply is cer- son to produce, the United States can buy else- tainly an element in vulnerability. The only where as long as alternate producers exist (al- way to evaluate instability in particular coun- though probably with some shortage and delay, tries is by qualitative judgment, and opinions since mining companies often commit supplies differ, For example, some consider South to their customers considerably in advance and Africa a risky source because they see an in- it takes time to expand capacity). Thus, the to- herent instability in minority rule by 4.5 mil- tal number of producers in the world for par- 14 lion whites of 20 million blacks. Some of those ticular minerals is important, and so are their concerned about a “resource war” fear that the relative shares of production. If one or two Soviets or Soviet-backed forces may seize countries dominate (as South Africa and the power in South Africa, and the Soviet Navy in- Soviet Union do for PGM), the potential for dis- terdict shipments of critical materials from ruption is greater than if there were a number 15 South African ports. Others see such an in- of substantial producers. terdiction of trade as virtually an act of war, In the same way, diversity in the location of and do not consider it likely, short of a shooting mineral reserves is important for the future. war.16 A quite different point of view is that Since reserve estimates change dramatically South Africa has proved to be one of the world’s over time with new technology, new discov- most reliable suppliers, with a record of long- eries, and price changes, they are a rough in- range planning and steady production, and a dicator of where to expect minerals produc- conservative commercial approach that rules tion.13 out political embargoes, By the measure of reserve location, it appears There is greater consensus that production that world production of certain important of minerals in the relatively new African na- minerals could become more concentrated tions could be disrupted by local wars, insur- than it is now. For example, South Africa and rection, or civil disorder, or by inexperienced the Soviet Union produced 64 percent of the management of complex minerals enterprises— world’s manganese in 1982; they own 77 per- regardless of the part the Soviet Union might cent of the reserves. South Africa today play in aggravating these dangers (see ch. 4 for produces 22 percent of the world’s chromite a discussion of these possibilities). ore, but holds 91 percent of the reserves (see Other developing countries also may be sub- ch. 5 for further discussion). ject to political instability, thus affecting min- In general, reliance on one or a very few sup- erals production. Indonesia (a significant suppliers creates the potential at least for cartel plier of tin) was governed less than 20 years action to limit supplies and raise prices, for po- ago by the strongly anti-Western Sukarno, and litically inspired embargoes, or for a cutoff of Thailand (an important source of tantalum and supply due to local disturbances in the pro- tin) is under some pressure from its revolution- ducer countries. Of these possibilities, dis- ary neighbors. In Latin America, too, political upheavals have, on occasion, interfered with 1~’’Reser\ws” comprise only part of a countr}’s mineral wealth. They are deposits i~hich are known and are technically and eco- nornical]jr feasible to mine at a profit at the time the data is ana - 14 Robert E. Osgood, “The Securit]’ Implication of Dependence l~zed, “Resources” include rcscr~es and all other deposits that on Foreign Non fuel Minerals, paper prepared for the School are known but are not econorni(; to mine, as well as deposits of Adva need International Studies, The Johns Hopkins that are rneret~r inferred to exist from geologic e}idence. “Re- Uni\’ersitS. seri’e base” in[.ludes resources that are current]}’ economic (4’re- “Rear Arfm. William C. N!ott, “Introduction: What 1s the Re- s[:ries”), those that are considered marginally’ economic plus source War?’ Strotegjc Nlinerrrjs: A Resource Crisis [Washing- a portion of the sutxx, onom i{, resources. Throughout this stud~’, ton. I)C: The Council on Economics and National Securit\, 1981], reser~’e (fata has been used for comparison purlmses, unless pp. 20-29. other~j’i ~e note(]. 1~() sgood. op. (: it.; I, f)g\ol d, 0}). (: it. 50 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

+--..... *..*.+---

Photo credit U S Air Force Chromium and cobalt are essential in jet engines of high-performance military aircraft such as this U.S. Air Force F-16 minerals production and export, Cuba, for ex- large tonnages could be airlifted to the United ample, was considered a potential supplier of States from the producer countries.17 nickel for the United States, as a supplement Although import dependency does not equate to Canadian supplies. When the Communist with vulnerability, and domestic supplies are government was installed in Cuba, access to not an ironclad guarantee against disruption, this source was lost due to a U.S.-imposed the lack of adequate domestic supplies counts embargo. as a most important factor in vulnerability. Lag- Another possible source of vulnerability is ging investment and labor troubles have, on oc- long-distance transportation by sea. The United casion, limited production from U.S. mines. States imports large tonnages of a number of Yet, at the very least, domestic supplies can be important materials from distant countries by relied on in a national emergency, to meet part sea, For example, in 1981 the United States im- of domestic requirements, assuming the gov- ported 3 million tons of alumina from Austra- ernment would exercise special powers to keep lia; some 640,000 tons of manganese ore, main- production going. ly from Gabon, South Africa, and Australia; “Lack” of domestic supply can be a relative and 800,000 tons of ferromanganese and ferro- term, ranging from resources that look prom- silico-manganese, largely from South Africa, France, and Brazil. If sea lanes were blocked 17 The ~aY,]oad of a C5A, our largest cargo aircraft, is about in a war, it is difficult to conceive how these 100 tons. At that payload, it has a range of 2,500 miles. Ch. 2—An Introduction to Materials import Vulnerability ● 51 ising now or in the near future (platinum in the Table 2-2.—Materials To Be Screened Stillwater Complex in Montana) to subeco- Aluminum Manganese nomic deposits (cobalt in the Blackbird deposit Antimony Mercury of Idaho) to resources of such poor quality Arsenic Mica (natural), scrap and (manganese in Minnesota and Maine) that they Asbestos flake Barite Mica (natural), sheet may never be economical to mine. Bauxite Molybdenum Beryllium Nickel Combining Both Strands: Defining “Strategic” Bismuth Nitrogen (fixed) ammonia Boron Peat Bromine Perlite When the strands of criticality and vulner- Cadmium Phosphate rock ability are combined, a definition something Cement Platinum group metals like this emerges: If a material’s essential uses, Cesium Potash Chromium Pumice and volcanic for which there are no available economic sub- Clays cinder stitutes, exceed the reasonably secure sources Cobalt Quartz crystal (industrial) of supply, the material is “strategic. ” However, Columbium Rare-earth metals Copper Rhenium neither “essential uses” nor “reasonably secure Corundum Rubidium sources of supply” can be defined with quan- Diamond (industrial) Rutile titative precision. The following section screens Diatomite Salt Feldspar Sand and gravel particular materials against the criteria de- Fluorspar Selenium scribed in this section, with the aim of select- Gallilum Silicon ing a few materials that nearly everyone can Garnet SiIver Gem stones Sodium carbonate agree are “strategic” and that exemplify the Germanium Sodium sulfate problems and opportunities presented by these Gold Stone materials. Graphite (natural) Strontium Gypsum Sulfur Hafnium Talc and pryophyllite Selecting Strategic Materials Helium Tantalum Ilmenite Tellurium Iridium Thallium The group of materials chosen for screening lodine Thorium for this report included the 86 nonfuel minerals Iron ore Tin for which the Bureau of Mines regularly pub- Iron and steel Titanium dioxide 18 Iron and steel scrap Titanium sponge lishes statistics. The Bureau reports data for Kyanite and related Tungsten each material on the structure of the domestic materials Vanadium industry; consumption (overall and by end use Lead Vermiculite Lime Yttrium or industry); imports and exports, including Lithium Zinc sources of imports and how much each source Magnesium metal Zirconium supplies; purchased scrap recycling; events, Magnesium compounds trends, and issues relevant to the material; SOURCE Off Ice of Technology Assessment, drawn from U S Department of the world production, reserves, and resources; and Interior Bureau of Mines data substitutes and alternatives. These kinds of data (drawn from the Bureau of Mines and One of the leading criteria for vulnerability other sources) were the basis for fitting was the sufficiency of domestic supplies of a materials against the criteria described earlier, material. The United States is a net exporter defining which materials are strategic, and se- or is self-sufficient for 22, or approximately lecting them for further study. Table 2-2 lists one-quarter, of the materials on the list (table the 86 materials that comprised the group cho- 2-3), As a first cut in the screening, all these sen for screening, materials were eliminated from further consideration as strategic. In addition, 50 of the 86 materials on the original list are imported 1 B[J n]ess ~therw~ls~ rlotecl the i n formation presented is from mostly from countries judged to be stable the Bureau of Mines. sources of supply—i.e., countries presently free 52 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

Table 2.3.—Materials for Which the United States is It was not possible to eliminate as a group Self-Sufficient or a Net Exporter the remaining 14 materials. They required Boron Magnesium compounds more detailed individual scrutiny. As the fol- Bromite Mica (natural), scrap and lowing discussion shows, at least four of them– Clays flake chromium, cobalt, manganese, and the plat- Diatomite Molybdenum Feldspar Perlite inum group metals—clearly met all of the cri- Garnet Phosphate rock teria set forth in the first part of this chapter Helium Quartz crystal (industrial)a and were definitely strategic: Iron and steel scrap Sand and gravel Kyanite and related Sodium carbonate They are essential for the national defense minerals Stone Lithium Talc and pyrophyllite and other important industries. Magnesium metal Vermiculite For some of their essential uses no satis- aLaSCa IS One of the three commodities reported in this category It IS imported, factory substitutes are available, but the net import reliance is not avatlable There is little or no production of any of SOURCE Office of Technology Assessment, based on U.S Department of the lnIertor, Bureau of Mines data these materials in the United States (although for some, recycling is significant). from threats of internal disturbances or outside They are supplied largely by a very few pressure from forces hostile to the United countries in a politically unsettled region States. These “stable” sources range from in- (central and southern Africa), and this dustrialized countries such as Canada and same region, plus the Soviet Union, holds Australia to advanced developing nations, par- most of the world’s known resources. ticularly Latin American ones such as Brazil, These four minerals form a “first tier” of stra- Chile, and Mexico. For most of the 50 materials tegic materials that have been selected for in this group, there was either considerable detailed treatment in this report. The remain- diversity in sources of supply, or stability, or ing 10 materials share some characteristics of both. For these reasons, the vulnerability of the criticality and vulnerability with the first tier United States to disruption of the supply of (as detailed in the discussion below), but in less these materials was judged to be relatively low, definitive ways. While the materials in this sec- However, dependable allies or even the United ond tier may be thought of as strategic to some States itself cannot be considered totally im- degree, they are less so than those in the first mune from interruption in minerals and metal tier. Table 2-4 shows the 14 materials grouped production, as shown by the previously men- by first and second tiers. tioned Canadian nickel strike. The primary end uses of this group of materials were also scrutinized, to see whether the uses should be considered critical. For materials with significant military or important in- Table 2-4.—U.S. Strategic Materials to — dustrial uses, the availability of substitutes First tier Second tier replace these uses was checked. Combining Chromium Bauxite/alumina — qualitative judgments with quantitative infor- Cobalt Beryllium mation on both the vulnerability and criticality Manganese Columbium Platinum group metals Diamond (industrial) factors, it appeared that the critical uses of Graphite (natural) materials in this group did not exceed the Rutile amount imported from stable sources. Thus, Tantalum Tin they were screened out of the list of strategic Titanium sponge materials candidates, Appendix B shows these Vanadium 50 materials and their import sources. SOURCE: Office of Technology Assessment Ch. 2—An Introduction to Materials Import Vulnerability ● 53

Overview of Selected Strategic Materials

Agreement that chromium, manganese, co- are in leather tanning, in wood treatment, and balt, and the platinum group metals are stra- as additives to oil-well drilling mud. tegic materials is widespread. The selections Table 2-5 shows chromium consumption in of strategic materials made by other authors, the United States from 1978 to 1982, includ- as described in the first part of this chapter, ing the chromium contained both in chromite all include these metals. A brief explanation of ore and in the semi-processed alloy ferrochro- the reasons for selecting these four materials mium. The sharp decline in 1982 reflects that follows, with an emphasis on the vulnerabil- year’s recession, with the steel industry espe- ity strand. Chapter 3 summarizes in more de- cially hard hit. tail the essential uses of the first-tier materials, probable trends in their consumption over the In the 1979-82 period, imports accounted for next 10 to 25 years, and the current status of 85 to 91 percent of U.S. chromium consump- substitutes for their uses. The discussion below tion, Recycling of scrap amounted to 12 per- presents data for each of the materials on U.S. cent of apparent consumption in 1982. As table consumption over the past 5 years and on sev- 2-6 shows, the largest supplier to the United eral factors related to vulnerability: U.S. net im- States for both chromium ore and ferrochro- port reliance, import sources, world produc- mium is South Africa. The Soviet Union is action and reserves. Similar information about tually the world’s largest producer of chro- second-tier materials can be found in appen- mium, and once played a significant role in dix C. supplying the United States with chromium ore. Since the mid-1970s, however, its contri- Chromium bution to U.S. supplies has declined significantly. Other U.S. suppliers of chromium ore— Chromium (Cr) is a lustrous, hard, steel- e.g., the Philippines, Finland, and Turkey— gray metallic element found primarily in chro- have limited production capacity compared to mite, a black to brownish-black chromium ore South Africa’s,

(FeCr 2O4). It imparts unique properties of corrosion resistance, oxidation resistance at high The recent trend among a number of ore temperatures, and strength to other metals. An producers has been to process the ore into important ingredient in many steels and alloys, ferrochromium. Zimbabwe presently exports chromium is irreplaceable (at present levels of most of its chromium as ferrochromium. technology) in stainless steels and high tem- U.S. chromium resources are mostly in the perature-resistant superalloys. And many of the Stillwater Complex in Montana, podiform de- uses of stainless steels and superalloy are essential, such as in jet engines, in other mili- Table 2-5.–U.S. Consumption of Chromium, 1978.82 tary applications, and in vital nondefense production. Apparent consumption (thousand short tons Net import relianceb Besides its metallurgical uses, chromium is Year chromium content) (percent) essential in the chemicals industry, where it 1978 ...... 590 91 is used in making pigments and chromium 1979 ...... 610 90 1980 ...... 587 91 chemicals. Chromite is used in making refrac- 1981 ...... 510 90 tory bricks to line metallurgical furnaces; such 1982 ...... 319 85 bricks retain their strength and stability even aAppa~ent ~onsumptlon = u s primary and secondary (recycled) producf{on and net Import rellance when subjected to rapid, extreme changes in bNef lrnport rellarrce = (irnms exports + changes In government and Indus. temperature, and are resistant to acid and alkali try stocks) apparent consumption SOURCE U S Department of the Interior, Bureau of Mines, Mlnera/ Commodity environments. Additional uses of chromium Summar/es, 1983 and 1984 54 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

Table 2-6.—Sources of U.S. Chromium Imports gredient in other steels and alloys as a hardening agent, Another application is in electrical 1979-82 1982 Country (percent) (percent) equipment, where cobalt’s strong magnetic Chromite: a properties make small, powerful, and long- South Africa ...... 48 59 lasting magnets. Cobalt is also used as a cata- Soviet Union...... 17 6 lyst, especially in petroleum refining, to remove Philippines ...... 13 11 Turkey ...... 7 6 sulfur and heavy metals. Spurred by high co- Albania ...... 6 1 balt prices in the 1978-80 period, considerable Finland ...... 5 7 substitution for cobalt has occurred—e.g., ce- Madagascar ...... 4 9 ramics in permanent magnets. But cobalt is still Ferrochromium: South Africa...... 61 35 considered essential in many of its applica- Zimbabwe ...... 12 25 tions, especially in many superalloys. Yugoslavia ...... 12 12 Brazil ...... 4 11 Table 2-7 shows total annual consumption of Sweden ...... 4 4 cobalt. Quantities used are relatively small Turkey ...... 2 4 West Germany ...... 2 3 compared to materials such as chromium and Japan ...... 1 — manganese. A trend toward declining cobalt China...... 1 4 consumption is apparent since the price hike Other ...... 1 2 achromite = chromium OreS and fears of shortage in 1978 (see ch. 4). NOTE: Major world producers of chrorn!te and their contribution to world supplies in 1982 were” Sowet Union (34 percent), South Africa (22 percent); The United States is highly import-dependent Albania (12 percent); Brazil (10 percent), Zimbabwe, Philippines, Turkey, and Finland (4 percent each), India (3 percent). See table 5-4 of ch 5 for (92 percent) for cobalt, with the rest of demand more detail, and for Information on reserves supplied by recycling. The largest sources of SOURCE U S Department of the Interior, Bureau of Mines, M/rrera/s Yearbook, 1980, 1!331, 1982, and 1983 supply, both for the United States and the rest of the free market countries, are Zaire and posits in California and Alaska, and beach Zambia (see table 2-8). In the past 4 years, world sands in Oregon. These deposits are not con- supplies have been expanded and diversified; sidered close to being economically mineable other countries such as New Caledonia, the at present. Some chromium would be produced Philippines, and Australia now make a greater as a co-product of nickel and cobalt at Gasquet contribution to world supply. This expansion Mountain in northern California, according to was also induced by the cobalt price spike in the plans of the developer. However, startup the wake of the Katanga invasion of Zaire’s of this mine in the near future seems highly un- mining belt in 1978. Zairian cobalt currently likely without either Government subsidies or accounts for about 43 percent of U.S. imports, substantially higher world prices for these me- compared with 53 percent before the 1978 co- tals. (Detailed information on domestic and balt panic. Despite the considerable number of world chromium production is covered in ch. 5.) suppliers at present, Zaire and Zambia have

Cobalt Table 2-7.—U.S. Consumption of Cobalt, 1978.82 — Cobalt (Co) is a hard, brittle metallic element Apparent consumption found in association with nickel, silver, lead, (short tons Net import relianceb Year cobalt content) copper, and iron ores. It resembles nickel and (percent) 1978 ...... 10,182 95 – iron in appearance. 1979 ...... 9,403 94 1980 ...... 8,527 93 The largest and most critical end use of co- 1981 ...... 6,266 92 balt is in superalloys, used mainly in gas tur- 1982 ...... 5,592 92 bines (aircraft and land and marine-based) that aApparen~ Consurnptlon = U S primary and secondary (recycled) production and net import reliance require high strength at very high tempera- bNet import reliance = (imports exports + changes rn government and Indus. tures, Cobalt has no satisfactory substitute as try stocks) apparent consumption SOURCE U S Department of the Interior, Bureau of Mines, Mineral Commodity a binder in carbide tools. It is a preferred in- Summaries, 1983 and 1984 Ch. 2—An Introduction to Materials Import Vulnerability Ž 55

Table 2-8.—Sources of U.S. Cobalt Imports Only 10 percent of U.S. manganese con- . 1979-82 1982 sumption goes into nonsteel applications. Man- Country (percent) (percent) ganese dioxide is used in batteries for its oxy- Zaire ...... -.:...... 37 39 gen content, wherein the oxygen combines Zambia ...... 13 9 with hydrogen, which would otherwise slow Canada ...... 8 12 the cell’s action. Manganese dioxide is also Belgium-Luxembourg a . . . 8 5 Finland ...... 7 6 used in making chemicals, in the leaching of Japan a ...... 7 8 uranium ores, and in the electrolytic produc- a Norway ...... 7 7 tion of zinc. Botswana ...... 3 3 a France ...... 3 3 For these smaller uses, manganese has some Other ...... 7 8 substitutes. Although no satisfactory material aproc esses cobalt ore orlgrnatlng from other counlrles NOTE Major world producers of primary cobalt and their contribution to world replacements for manganese exist in iron and su ppl Ies i n 1982 were Zal re (45 percent), Zambia (13 percent), Australia (9 percent), Sov!et Un!on (9 percent), and Canada (6 percent) See table steel production (see ch. 6), there are functional 5-16 of ch 5 for more detail and for information on reserves substitutes for manganese in steelmaking: ex- SOURCE U S Department of the Interior, Bureau of Mines, M/nera/s Yearbook. 1980 1981 1982, and 1983 ternal desulfurization is reducing the manganese requirement for sulfur control and sev- substantially the largest and richest cobalt ore eral other process modifications in steelmaking deposits. Due to these reserves, these two coun- also reduce manganese requirement or im- tries promise to continue to dominate cobalt prove manganese recovery. supply far into the next century. Domestic consumption of manganese has de- The United States has sizable cobalt depos- clined slightly in recent years (table 2-9). The its, particularly at the Blackbird Mine in Idaho, big drop in 1982 is due to the recession in the the Madison Mine in Missouri, and Gasquet steel industry. Mountain in California. Substantial cobalt is There is no domestic production of “manga- also associated with copper-nickel deposits in nese ore” (defined as ores containing more the Duluth Gabbro of Minnesota. But the world than 35 percent manganese). The United States price of cobalt (except during the panic) has relies on import sources for 99 percent of its been significantly less than what is needed to supply, with the remaining 1 percent recovered make U.S. cobalt mining economically feasi- from domestic production of manganiferous ble without government assistance. ores that contain less than 35 percent manganese.19 Ferromanganese and silicomanganese— Manganese alloys used in steelmaking—are also highly imported. The dominant critical use of manganese, a gray-white or silver metallic element, is in steel- The largest suppliers of manganese materials making which accounts for about 90 percent to the United States are Gabon and South of domestic manganese consumption. The ad- Africa, as shown in table 2-10. The U.S.S.R. dition of manganese prevents steel from and South Africa have by far the largest man- becoming brittle. Normally, iron and sulfur ganese deposits in the world. However, Aus- compounds in steel tend to form at grain bound- tralia and Gabon are well-endowed with re- aries and weaken the steel at high tempera- serves which could last a century or more at tures. When manganese is added, the sulfur bonds with it instead of the iron, forming a sta- 18The iron and Steel i rl~u,st r}~ derives a significant quantity Of ble compound and avoiding weakness at grain manganese from iron ores charged to the blast furnace, This input accounts for approximately one-third of total consumption, boundaries. Manganese also has uses as an al- but it is not included in manganese import statistics. The quan- loying element to impart strength and hardness tity of manganese contained in these iron ores has been declining. Based on George R, St, Pierre, et al., Use o,f Manganese in to all grades of steel. For example, manganese- Stcelrnaking and Steel Products and Trends in the Use of hlan- alloy steel is used for armored vehicles that gunrsc as an Al)o~ing Element in Steels, report prepared for the withstand impacts. Office of Technology Assessment, 1983. 56 Ž Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

Table 2-9.–U.S. Consumption of Manganese, 1978-82 Platinum Group Metals Apparent consumption Platinum group metals (PGMs) refer to six (thousand short tons Net import relianceb Year manganese content) (percent) metals which have similar properties: plat- 1978 ...... 1,363 97 inum, palladium, rhodium, iridium, osmium, 1979 ...... 1,250 98 and ruthenium. They have the ability to cata- 1980 ...... 1,029 98 lyze many chemical reactions and withstand 1981 ...... 1,027 99 1982 ...... 672 99 chemical attack, even at high temperatures. aA~~areflt Consumption = U.S primary and secondary (recycled) production and Their leading use in the United States is in au- net tmport rellance bNet import reliance . (lrnpOrts exports + changes in government and tndus. tomobile catalytic converters, which use small try stocks) apparent consumption amounts of platinum, palladium, and rhodium SOURCE U S Department of the Interior, Bureau of Mines, Mineral Comrnod/ty Summaries, 1983 and 1984 in each car, At present, there is no satisfactory substitute for this use of platinum group metals. Other catalytic applications are in petro- Table 2-10.—Sources of U.S. Manganese Imports leum refining, to produce high-octane gasoline, and in chemical manufacture of acids (e. g., ni- 1979-82 1982 tric acid for fertilizer) and other organic Country — (percent) (percent) Manganese ore: chemicals. South Africa...... 30 52 The great strength, high melting points, and Gabon ...... 27 21 Australia ...... 22 17 resistance to corrosion and oxidation of PGMs Brazil ...... 13 3 make them the material choice for electrical Mexico ...... 4 1 contacts and relays in telephone systems. PGM Morocco ...... 4 4 Other ...... — 2 alloys are also used as crucible materials (e. g., Ferromanganese: for the growth of single crystals of oxide com- South Africa ...... 43 49 pounds, used for semiconductor substrates), in a France ...... 26 21 glass fiber manufacture, in dental and medi- Mexico ...... 6 7 Brazil ...... 3 6 cal applications, and in jewelry. Most uses of Australia ...... 2 1 PGMs as catalysts and in electronics are highly a Other ...... 20 16 important to U.S. industry. 20 aprocesses mangmese ore originating from other count rres. NOTE Major world producers of primary manganese ores and their contribution to world suppltes in 1982 were: Soviet Union (41 percent); South Africa U.S. consumption of PGMs declined in the (23 percent); Gabon (7 percent); China (7 percent), Brazil (6 percent), Aus. tralia (5 percent); Mexico (2 percent). See table 5.22 of ch 5 for further 1981-83 recession but is now recovering (table details, and for information on reserves. 2-11), SOURCE U S Department of the Interior, Bureau of Mines, Minera/s Yearbook, 1980, 1981, 1982, and 1983. ZONationa] Materia]s Advisory Board, Suppl~F and USe Patterns for the Platinum-Group Metals, NMAB-359 (Washington, DC: Na- the current rate of production, and other coun- tional Academy of Sciences, 1980). tries also have significant reserves—all of which perhaps implies that supply vulnerability for manganese is somewhat less than that Table 2-11. —U.S. Consumption of for other materials in the first tier. Nonethe- Platinum Group Metals, 1978-82 less, the only large manganese reserve in the Apparent consumption Net import relianceb Americas is in Brazil. All sources of U.S. man- Year (thousand troy ounces) (percent) ganese imports (except a small amount com- 1978 ...... 2,635 90 ing from Mexico) require long-distance trans- 1979 ... , . . 2,995 89 1980 ...... 2,859 88 portation by sea, which adds an element of 1981 ...... 2,411 84 vulnerability to U.S. supply. The tonnages re- 1982 ...... 1,787 80 a Consumption = u s prlm~ and seconda~ (recycled) product~on and quired by U.S. industry rule out any other Apparent net import reliance, method of transport. Unclaimed resources are bNet impo~ reliance . (imports exports + changes in government and indus- the manganese nodules which are found in try stocks) apparent consumption SOURCE U S Department of the Interior, Bureau of Mines, Mineral Commodity large areas of the ocean floor (see ch. 5). Summaries, 1983 and 1984 Ch. 2—An Introduction to Materials Import Vulnerability ● 57

The United States is highly import-dependent Table 2-12.—Sources of U.S. Platinum (85 percent) for PGMs. There is a small amount Group Metal Imports of domestic production (less than 1 percent of 1979-82 1982 apparent consumption), The remaining 15 Country (percent) (percent) percent of demand is supplied by purchased South-Africa . . . , . . . . , ., 56 48 U.S.S.R...... 16 16 secondary materials. Actually, this figure a United Kingdom. ., . . . . . 11 13 understates the amount of PGM recycling. If Other ...... 17 23 consumption is defined to include the PGM ~FJGM production from the Unttt?d Kingdom IS from ores orlglnatlng In South A frl ca and Canada md from secondary materials catalysts which are owned by refiners and NOTE Major world producers of PGM and their contr!butlon to world suppl!es chemical manufacturers, sent out for “toll In 1982 were Soviet Union (54 percent) South Africa (40 percent) and 21 Canada (4 percent) See table 5-33 of ch 5 for further details and for In refining," and then reused, recycling ac- formation on reserves SOURCE U S Department of the Interior, Bureau of M(nes M/nera/s Commod( counts for about 40 percent of total consump- fy Sumrnar(es 1983 and 1984 tion. Chapter 6 discusses further recycling possibilities.

The Stillwater Complex in Montana is the Canadian reserves combined would satisfy most significant known U.S. deposit of PGMs. U.S. demand at the current level for only about Development of an underground mine has 10 years. The Soviet Union is presently the been proposed for this site, with the decision world’s largest producer of PGMs; its reserves on whether to develop the property scheduled are substantial but only about one-fifth the size for mid-1985. Small amounts of PGMs were re- of South Africa ’s. covered from placer deposits at Goodnews Bay in Alaska as recently as 1975. Chapter 5 has PGMs are mined in South Africa for their more details regarding PGM mineral deposits, own sake, while in the Soviet Union and Can- ada they are coproducts or byproducts of nickel The largest source of PGM supply for the and copper. Thus, South Africa has the advan- United States is South Africa. As table 2-12 tage of responding directly to the PGM mar- shows, the South African deposits of the Bush- ket in making production decisions. Moreover, veld Igneous Complex dwarf those of the the combination of PGMs in the ores is more United States and Canada. In fact, the U.S. and -- favorable in South Africa than anywhere else, ~ 1‘1’h(, t[I rm ‘‘to] 1 r[’ f i n I n ~‘ c]cnotet the rc(, J(,I i ng of metals for with a greater proportion of higher value plati- :1 ff>(> In i\’}11(:]1 [)!$’ll[]r\]llJ) of thr Jnf>ta]s (]()(?s not (:han~t> hdn(]s. num in the mix.

A Perspective on Strategic Materials Selection

For many reasons, no list of strategic mate- rising. 22 The commission projected that by rials can be the last word. It cannot be exhaus- 1975, the United States would be able to sup- tive: the cutoff point at the end of the list is ply only about 60 percent of its copper needs bound to be somewhat arbitrary, separating through domestic mine production and recy- materials which are “more” strategic from cling. Thus, copper, which had a number of those that are “less,” rather than representing important industrial uses, might have been ones that “are” strategic as opposed to those considered at that time as a good candidate for that “are not. ” Nor can the list be final. Con- a strategic materials list. In fact, domestic cop- ditions change. Take copper, for example. In 1952, the Paley Commission selected copper as a “key commodity, ” for which world consumption and U.S. net imports were rapidly

38-844 0 - 85 - 3 : QL 3 58 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability per production rose so much over 25 years that Perhaps it is most useful to look at the stra- net imports fell to about 10 percent of con- tegic materials selected for careful analysis sumption in the 1970s, rather than to the pro- herein as indicative of a set of problems and jected 40 percent, and were well below the 35 possible solutions, not as fixed or exhaustive. 23 percent of 1950. The brief discussion above—much amplified The position of copper may change again in in chapters 3 and 4—indicate why cobalt, chro- the future, American mines were closing in mium, manganese, and PGMs are judged to be large numbers in the recession year of 1982, highly strategic materials. Because they meet with some industry officials predicting that the all, or nearly all, of the criteria for critical uses mines would never reopen because high wages and vulnerability of supply, they have been and pollution control costs had made the selected for detailed examination in this report. American copper mining industry—the world’s The essential functions of these materials, largest—uncompetitive with foreign producers. present and anticipated, potential substitutes, Even if this prediction proves true, copper’s and technologies that can reduce dependence designation as a strategic material will depend on uncertain supplies are discussed at length on many factors, including the nature of its use, in the chapters that follow. the availability of substitutes, and the number The second-tier materials, which share some and character of foreign suppliers. strategic characteristics with those of the first The continual development of new materials tier, are described in appendix C. These mate- and uses also tends to make lists of strategic rials, though judged to be less strategic than materials out of date. For example, natural rub- the first four, are still worthy of attention and ber was a strategic material of great concern study. As a practical matter, this report must to the United States before World War II. But confine its assessment to a manageable num- during the war, when imports of natural rubber of materials. The four first-tier materials ber from Southeast Asia were cut off, U.S. are judged to be most strategic, and they production of synthetic rubber expanded enor- present the problems of import vulnerability mously. The displacement of natural rubber for and possible solutions in the most striking way, most uses proved to be permanent. Thus, the assessment here may serve as a useful model for studying other materials which, though judged less strategic, may be of some ZsData on production, reserves, and imports of m i nera]s come concern because of combined factors of vul- from the Bureau of Mines, Department of the Interior. nerability and criticality, CHAPTER 3 Critical Materials Consumption: Current Patterns and Trends Contents Page Chromium ...... 62 Transportation Applications ...... 62 Construction Applications ...... 65 Machinery Applications...... 65 Chromite Refractories ...... 66 Electrical and Chemical Uses ...... 66 Cobalt ...... 66 Transportation Applications ...... 67 Machinery Applications ...... 67 Chemicals and Catalysts ...... 69 Electrical Applications ...... 69 Other Cobalt Applications ...... 70 Manganese ...... 71 Platinum Group Metals ...... 72 Transportation Applications ...... 72 Construction Applications ...... 74 Chemical Applications ...... 74 Electrical Applications ...... 74 Refractory Applications ...... 77 Other Applications ...... 77 Future Applications for Strategic Materials .....,, ...... 77 Nonconventional Energy Systems ...... 77 Critical Metals in Automobiles ...... 78 Summary: Essential Uses of Strategic Materials .,...,...... 78 Superalloy ...... , ,...... ,O ...... 79 Stainless Steel for Construction ...... $ ...... 0...... 80 Automobiles. , ...... 80 Cemented Carbides ...... 80 Industrial Catalysts.,...... 80 Manganese in Steelmaking ...... 80 Palladium in Electronic Components. .,, ...... 80 List of Tables Table No. Page 3-1. Strategic Metal Consumption by Industrial Sector, 1980 ...... 62 3-2. Chromium Usage in U.S.-Built Passenger Cars, 1980 ...... 62 3-3. Typical Structural Alloys Used for Hot-Section Components of the Aircraft Gas Turbine Engine ...... 64 3-4. Estimated Requirements for Chromium for Energy-Related Facilities, 1977-2000 ...... 65 3-5. Uses of Cobalt, 1980 ...... 67 3-6. Cobalt Consumption in Tool Steels ...... 68 3-7. Composition of Maraging Steels ...... 69 3-8. U.S. Manganese Consumption, 1980 ...... 71 3-9. Annual Consumption of Platinum Group Metals in Domestic Automotive Catalytic Converters ...... , ...... $...... 73 3-1o. U.S. Bureau of Mines Estimates of Probable Demand for Strategic Metals in the Year 2000 ...... , ...... , ..., 79 List of Figures Figure No. Page 3-1. Current and Projected Cobalt Consumption in Magnets (1981-90) ...... 70 3-2. Distribution of Platinum Group Metal Consumption by Applications ...... 73 3-3. Estimated Future Vehicle Sales in the United States ...... 74 3-4. Estimated PGM Requirements in Catalytic Converters for Domestic Automobile Production, 1984-95, ...... 75 CHAPTER 3 Critical Materials Consumption: Current Patterns and Trends

The metals that form the principal subject of The construction sector includes facilities for this report—chromium, cobalt, manganese, and the production and processing of fuels; produc- the platinum group—serve throughout the tion of electricity; equipment for metallurgical, economy in applications that range from the chemical, and food processing; and structural essential, such as structural applications in materials in buildings. high-performance aircraft, to the decorative, Examples of the uses of the strategic mate- as in trim and jewelry, These metals are stra- rials in the machinery sector are tools for metal tegic because they are necessary in a number cutting and forming, drill bits, ball and roller of essential industrial and defense applications bearings, and other machinery components. and because the major sources of supply are considered to be vulnerable to disruption, This Important equipment in the electrical sector chapter identifies the major essential uses of includes transformers, switchgear, motors, in- these metals, describes the properties that struments, batteries, generators, cooling equip- make them irreplaceable at present, and dis- ment, and household appliances. Major appli- cusses the trends in their use. cations for strategic metals are in magnets, contacts and electrodes, shafts and bearings for As discussed in chapter 2, the strategic nature rotating machinery, tubing and conduits, and of these materials is not static. In time, alter- decorative trim. natives may be found to replace the metals in essential functions, or changing conditions Refractory uses of strategic metals and min- may mean that the functions are no longer es- erals are those in which the materials must sential, It is also possible that changes in tech- operate in an extremely high-temperature envi- nology will cause these metals, or other mate- ronment without chemical change or loss of rials, to increase in importance beyond their desirable properties. An example is liners for current status, Such changes are slow in com- boilers and furnaces. Materials for the producing, however, and are likely to take a number tion of ceramics and glasses are also in this of years before they have a major effect, category. Table 3-1 shows the distribution of consump- Chemical uses of chromium, cobalt, manga- tion of the four metals over the major indus- nese, and platinum group metals are quite var- trial sectors in the United States. ied. They include dyes and pigments, preserv- atives, food additives, and catalysts for the The transportation sector consists of the avia- production of other chemicals. tion, automotive, railroad, and maritime industries, These industries together account for 19 The listing in table 3-1 provides only a start- to 41 percent of the consumption of each of the ing point for the analysis. Further detail on the four strategic metals, uses of the metals is provided below.

61 62 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

Table 3-1.—Strategic Metal Consumption by Industrial Sector, 1980

Chromium Cobalt Manganese Platinum group 1,000 1,000 1,000 1,000 Sector tons (Percent) lb (Percent) tons (Percent) tr 02 (Percent) Transportation ...... 112 (19) 7015 (41) 215 (21) 731 (33) Construction ...... 123 (21) o (o) 375 (36) 171 (8) Machinery ...... 98 (17) 3081 (18) 165 (16) o (o) Electrical ...... 52 (9) 2530 (15) 67 (7) 526 (24) Refractory ...... 44 (7) 538 (3) o (0) 63 (3) Chemical ...... 87 (15) 3785 (22) 50 (5) 284 (13) Other ...... 71 (12) 190 (1) 157 (15) 431 (20) Total ...... 587 (loo) 17,139 (loo) 1,029 (loo) 2,206 (loo) SOURCE US Bureau of Mines, Mineral Commodity Profiles, 1983

Chromium

Chromium is the most versatile of the many Table 3-2.—Chromium Usage in U.S.-Built alloying agents used in steel. It may be added Passenger Cars, 1980 to provide high-temperature strength, low- Total Essential temperature toughness, hardness, corrosion re- Propulsion: sistance, or oxidation resistance, It is also a Cylinder block, camshafts, valves . . . 0.860 0.325 major constituent of nickel- and cobalt-based Cooling system, electrical system . . 0.016 0 Carburetors, air intake, exhaust . . . . 0.079 0 superalloy. Additionally, in the form of chro- Catalytic converter ...... 2.070 2.070 mite, it lines crucibles for molten steel and is Drive train ...... 0.155 0.067 (misc.) used in forms for ferrous castings. In the form Subtotal ...... 3.180 2.462 of sodium bichromate, it is processed into a va- Chassis: riety of chemicals. Wheel covers...... 0.971 0 Suspension ...... 0.261 0 Brakes ...... 0.032 0 Transportation Applications Steering ...... 0,013 0 Miscellaneous ...... 0.093 0 Automotive Applications Subtotal ...... 1.389 0 Body: The automotive industry is one of the largest Windshield wipers ...... 0.265 0 consumers of chromium. Chromium consump- Seat belts...... 0.355 0 Roof and door moldings ...... 0.032 0 tion by the industry is on the order of 40,000 Plating ...... 0.041 0 tons per year, mainly in the form of stainless Subtotal ...... 0.903 0 steel. Of the 5.5 pounds of chromium contained in a typical 1980 car, the National Materials Total ...... 5.472 2.462 SOURCE: As projected by the National Mater!als Advisory Board In 1978 Advisory Board estimated that 2.5 pounds were used for functional purposes, including suspen- loys. Examples include exhaust valves, which sion, chassis, and engine components and the may contain as much as 21 percent chromium, catalytic converter (table 3-2), Further reduction of chromium usage could be achieved and camshafts, which range from 0.9 to 1,5 percent chromium. Engine components account through attention to the exhaust emission sys- for slightly less than 1 pound of chromium in tem, particularly through the use of stainless steel-clad carbon steel in place of the solid an “average” automobile, Of this amount, only stainless steel now in use in the converter. about one-third of a pound is essential, but there is little incentive to make the reductions Parts of the automobile engine subject to high under the present conditions of availability and wear, high temperature, or corrosive environ- price. Further, some of the reductions, such as ments are candidates for chromium-bearing al- the use of stainless steel containing 12 to 14 Ch. 3—Critical Materials Consumption: Current Patterns and Trends ● 63 percent chromium in place of the 21 percent imately 80 percent was used in jet engines as chromium alloy now in use could not be made a constituent of superalloy and of other heat-, without additional testing to ensure that the corrosion-, and oxidation-resistant alloys. Chro- material would behave as expected when in mium-containing steels are used in other high- service. temperature components of jet engines, where the exceptional heat resistance of superalloy The principal structural use of chromium al- is not required. loys in automobiles is in the AISI 5160 steel used for springs in the suspension. A relatively Superalloy, containing substantial amounts new, but growing, use is in the main structural of chromium, nickel, and, in some cases, co- members of the chassis where high-strength, balt, have exceptional resistance to high tem- low-alloy steels that contain about 1 percent peratures. These alloys retain their strength at chromium are gaining acceptance. high temperature and stress, whereas alloy steels would fail owing to creep (a gradual In 1982, General Motors (GM) introduced a deformation of a material when it is subjected fiber composite leaf spring into the rear sus- to stress at high temperature) or to rapid cor- pension of the Chevrolet Corvette. In 1983, rosion by the hot exhaust gases of a jet engine. similar springs were introduced into other These materials are essential in the current de- lightweight cars in the GM line, signs of aircraft gas turbine engines as well as Unlike the case with engine parts, there is many land- and sea-based gas turbine engines. a strong incentive to reduce the use of conven- The manufacture of superalloys accounts for tional steels in the structural parts of cars, That a majority of the total domestic consumption incentive is weight reduction, which results in of chromium metal. In 1981, consumption of reduced power requirements and lower fuel metallic chromium in superalloy was 2,500 consumption. However, the development of short tons or 64 percent of the total domestic the high-strength, low-alloy (HSLA) steels has consumption of chromium metal. Ferrochrome provided an alternative to other lightweight is also used in the production of superalloy, materials such as aluminum and fiber compos- in 1981, 4,300 tons of chromium contained ites. These steels, which obtain their strength in ferrochrome were used in superalloy pro- through the use of small additions of chro- duction, mium, manganese, molybdenum, and other metals, combine high strength and low weight Already, hundreds of superalloys are used in with conventional metal-forming techniques. aircraft engines, with more being developed all The overall economics of HSLA steels have led, the time. Some of these alloys are in wide- and are expected to continue to lead, to increas- spread use, while others have become obsolete ing use of these alloys in automobiles, Although or have been superseded by newer alloys. Table these steels are not essential to the design of 3-3 identifies some of the typical alloys used cars, once incorporated into a design, any in the most severe applications in the jet en- replacement of materials—e.g., in response to gine, With regard to the metals under exami- a reduction in the supply of chromium—will nation, the table shows a range of chromium be difficult to make. (Cr) content, from a low of 8 percent to a high of almost 26 percent, and a range of cobalt (Co) Aviation content from zero to 56 percent. Aviation, with its demands for high strength, Substitution of known alternative alloys is a low weight, and oxidation- and corrosion- simple method of reducing critical metal con- resistant materials with long fatigue lives and sumption in times of a shortage of raw mate- resistance to high temperature, is another ma- rials. During the disturbances in Zaire in 1978- jor consumer of chromium. Chromium con- 79, the cobalt-free alloy IN-718 was used as a sumption by the aviation industry accounted direct substitute for Waspaloy (13.5 percent co- for 3,250 short tons in 1978, of which approx- balt). The alloy IN-718 may be used in place 64 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

Table 3-3.—Typical Structural Alloys Used disturbances. This substitution also resulted in for Hot-Section Components of the Aircraft a 47-percent savings in chromium consump- Gas Turbine Engine tion, although that was not the object of the Composition substitution. Normally X-40, with its longer (percent by weight) service life, would be the preferred alloy, but Alloy Ni-——.Co Cr Fe at the higher cost and uncertain supply of co- Combustor liner: Hastelloy X ...... 48 1.5 22 18,5 balt, the substitution was justified. HA-188 ...... 22 41 22 — The potential to reduce critical metal con- Turbine vane: MA-754 78 — 20 1 sumption in the near term is limited. Chro- MAR-M200 ...... 60 10 9 — mium is an essential component of all super- MAR-M247 ...... 60 10 8 – alloy, and most of the easy substitutions for MAR-M509 ...... 10 55 23.5 – cobalt have been identified as a result of the X-40 ...... 10.5 56 25.5 – IN-713 ...... 72,5 — 13.5 — price increases that followed the Zairian dis- Rene-77 ...... 55 15 15 — turbances. Opportunities for further substitu- Turbine blade: tions are known (and will be discussed in ch. Alloy 454 ...... 62.5 5 10 — MAR-M200 ...... 60 10 9 – 7), but the time required to complete the qual- MAR-M247 ...... 60 10 8 — ification and certification process for use in air- B-1900 ...... 65 10 8 — craft engines precludes their use as a short- Rene-80 ...... 60.5 9.5 14 — IN-713LC ...... 72.3 — 12 — term response to shortages. Rene-77 ...... 55 15 15 — It is clear that chromium will remain essen- Turbine disc: IN-100 ...... 56 18.5 12.5 — tial in superalloy for the aircraft gas turbine MERL-76 ...... 54.1 18.5 12.4 – engine. predicting future material needs can- Astroloy ...... 55.5 17 15 — not be done with confidence because of inher- Waspaloy ...... 58 13.5 19.5 — Rene-95 ...... 61.3 9 14 — ent inaccuracies resulting from factors that IN-718 ...... 53 — 19 18 vary from the general state of the national econ- IN-901 ...... 45 — 12.5 34 omy to advances in engine design and materi- A-286 ...... 25,5 — 15 55 als processing, However, some sense of future Case: Waspaloy ...... 58 13.5 19.5 — material requirements is obtained by evaluat- IN-718 ...... 53 — 19 18 ing alternative scenarios for the growth of the IN-901 ...... 45 — 12.5 34 U.S. aviation industry. Thus, it is estimated A-286 ...... 25.5 – 15 55 that in 1995 the United States will consume for – SOURCE Office of Technology Assessment the production of superalloy 3,700 tons of chromium metal and 6,500 tons of chromium of other alloys, such as MAR-M200 (10 percent in low-carbon ferrochrome for an increase of cobalt) in turbine vane and blade applications. 50 percent over 1981. Similar estimates for su- Savings of chromium are more difficult to peralloy production for the year 2010, based achieve through substitution than savings of on current technology and trends, are 6,800 cobalt. Chromium contents of most superalloys tons of chromium metal and 11,600 tons of are in the range of 8 to 22 percent, and those chromium in ferrochrome, an increase by a lowest in chromium contain 10 percent cobalt. factor of 2.7 over 1981 demand, The substitution of IN-718 (19 percent chromium) for MAR-M200 (9 percent chromium) Other Transportation Applications offset cobalt savings by increased chromium consumption. Other uses of strategic metals in the transportation sector include heat-resistant chro- A substitution of cobalt-free IN-713 for alloy mium steels in gas turbines, in steam genera- X-40 (56 percent cobalt) in the turbine vanes tors and turbines for railroad and maritime of the JT- 9 engine used for wide-body commer- applications, and in stainless steel containers cial aircraft also occurred as a result of the co- for transportation of dairy products and cor- bait price increases that followed the Zairian rosive materials. Ch. 3—Critical Materials Consumption: Current Patterns and Trends Ž 65

Construction Applications Chemical and Process Applications Almost 20 percent of U.S. chromium con- Production facilities of the chemical and sumption is accounted for in the construction process industries, manufacturers of acids, or- sector, with the most essential applications be- ganic compounds, alkalies, and other corrosive ing in the corrosive environments associated materials, are major consumers of chromium, with oil and gas production and refining and principally in the form of stainless steel. These the high-temperature environment of energy steels are used because they combine strength production facilities. Chemical processing fa- with exceptional resistance to corrosion and cilities also constitute essential uses of chro- oxidation. They are also used in applications mium in the construction sector. where it is essential to prevent contamination of products by the process equipment. Energy Production Facilities for Fossil Fuels The bulk of chromium consumption in chem- The annual chromium requirements for the ical and process applications is accounted for construction of energy-related facilities, includ- by a few popular alloys: the wrought alloys; ing oil and gas wells, coal mines, electricity AISI types 304, 316, and 430; and the cast generating plants, and other energy facilities alloys, ACI types CF-8, CF-8M, and CN-7M. All were estimated in a 1979 report to the Depart- of these steels contain approximately 18 per- ment of Commerce. Reported consumption of cent chromium. In many cases, it appears pos- chromium in 1977 by the energy industry was sible to develop substitute steels with chro- 20,400 short tons. When taken with the scrap mium content as low as 12 to 14 percent, generated during processing and fabrication although users would have to accept a lower of energy-related equipment, this sector alone resistance to corrosion unless additions of accounts for 3 to 5 percent of U.S. chromium molybdenum were made to counteract the ef- consumption. Similar estimates were made for fects of chromium reduction, This class of chromium usage in a 1978 study by the Na- steel, however, is not currently available, and tional Materials Advisory Board (NMAB). several years of effort will be required before These estimates are reported in table 3-4. such steel could be ready for widespread use. Even if such substitutions were made through- In its 1978 study, the NMAB estimated that out the industry, however, no more than one- 90 percent of the chromium consumption of third of the chromium consumption in this sec- the energy sector should be considered essen- tor would be saved. Substitution by surface- tial. Of the consumption in 2000, approxi- treated materials, including coated, clad, and mately 60 percent will be for stainless steel, plated steels, could also be used in some ap- with another 25 percent being for alloy steels. plications, but limitations of cost, abrasion re- The remainder will be used in a variety of ap- sistance, and corrosion resistance at welds and plications, including superalloy, plating, and other joints restrict the opportunities to use nonferrous alloys. these materials in the chemical and process industries.

Table 3-4.—Estimated Requirements for Chromium for Energy-Related Facilities, 1977-2000 Machinery Applications (thousand short tons) Machinery applications of chromium in- Department of clude tool steels, spring steels, and alloy steels Commerce NMAB low NMAB high - for gears, shafts, and bearings, Chromium is 1977. , ... , . . 20.4 — — 1985 ..., ... , 24.7 — — used largely for its contribution to hardness 1990 ...... 27.3 — — and wear resistance. The chromium content 2000 ...., ... 33.2 — — ranges from as low as 0.5 percent in some Average. ... ——.27.2 . 19.5 33.7 SOURCES U S Department of Commerce, 1979 Nat!onal Materials Adwsory steels used for gears and bearings to as high Board 1978 as 12 percent in some tool steels. 66 Ž Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

Opportunities for reduction of chromium piles around steel mills, copper smelters, and consumption in machinery applications in- other refractory-using facilities, clude the use of sintered carbides in place of Steelmaking continues to account for most tool steels and alternative alloys containing use of chromite-containing refractories, al- manganese and molybdenum for the manufac- though its consumption has declined precipi- ture of gears, shafts, and bearings. Barriers to tously since 1965. Phase-out of open hearth the use of these substitutes are economic rather steelmaking with basic oxygen furnaces that than technical; in particular the high cost of use virtually no chromite refractories is the pri- sintered carbides relative to tool steels suggests mary cause. This decline was moderated, and that this would be an unlikely area of substi- partially offset, in the early 1970s by using tution except in extreme emergency. chromite-containing refractories in electric steelmaking furnaces and in argon-oxygen-de- Chromite Refractories carburization (AOD) vessels for stainless steel production. However, since the mid-1970s, Chromium, in the form of chromite, is used chromite refractories have been replaced rap- in refractory applications such as liners for idly by water-cooled panels in electric furnaces. steam generator fireboxes and ladles for mol- In addition, dolomite, which is readily avail- ten steel because of its ability to provide ther- able domestically, now accounts for about two- mal insulation, resist stresses resulting from thirds of the refractory material used in AOD sudden changes of temperature, and remain vessels, according to the major U.S. producer. chemically inert in metallurgical applications. The chromite used in refractories differs from Electrical and Chemical Uses that used as a raw material for the production of ferrochrome because of its higher aluminum In the electrical sector, chromium is used in content. While the high aluminum content shafts, bearings, and other applications requir- makes chromite undesirable for ferrochrome ing wear resistance and in decorative applica- production, it improves the refractory charac- tions, Requirements for chromium are similar teristics. Chromite sand is also used in molds to those of the machinery sector. for ferrous castings. Chemical applications accounted for 15 per- Refractories account for about 7 percent of cent of total U.S. chromium consumption in U.S. chromium demand. Current data are not 1980, principally in pigments, metal treat- available but perhaps as much as 19,000 tons ments, and leather tanning, Based on data com- of chromium were lost in spent, unrecycled piled in 1976, the National Materials Advisory refractory bricks in 1974; additional chromite Board estimated 40 percent of the chromium is contained in accumulated refractory waste- use in chemical applications to be essential.

Cobalt

In contrast to the breadth of applications for achieve. The principal uses of cobalt are in chromium, uses of cobalt are limited. This is superalloy (for the beneficial properties cobalt due, in part, to the availability of alternative imparts at high temperatures), magnets, ce- metals that provide similar properties at lower mented carbides, and catalysts in petroleum cost, The current uses of cobalt are, therefore, refineries. Other uses include tool and alloy those in which substitutions are difficult to steels, and salts, driers, and other chemicals, Ch. 3—Critical Materials Consumption: Current Patterns and Trends ● 67

In 1982, the NMAB surveyed the uses and Superalloy accounted for 6.3 million pounds made estimates as to the essential needs of co- or 41 percent of the 1980 reported domestic cobalt, in comparison to actual consumption. The balt consumption. Under current trends, it is results of these estimates are reported in table anticipated that 8.3 million pounds of cobalt 3-5. The overall estimate of the NMAB was that will be used in the production of superalloy 50 percent of the cobalt now consumed is es- in 1995 (for all applications, not the aircraft en- sential, with over 58 percent of the essential gine alone), and 12.9 million pounds of cobalt consumption being accounted for in super- will be required for these uses in 2010. alloy and another 14 percent of the essential Cobalt use in other parts of the transporta- uses going into cemented carbides. tion sector is small. Applications include hardfacing alloys used on the surface of exhaust Transportation Applications valves in automobile engines. The aviation industry accounts for the majority of cobalt consumption in the transpor- Machinery Applications tation sector. As shown in table 3-3, cobalt is Cobalt use in the machinery sector includes an important constituent in many alloys in the drill and cutting bits made for high-speed and jet engine. Superalloy may contain anywhere high-temperature applications, surface coat- from no cobalt to 65 percent cobalt. The selec- ings for hardness and wear resistance, and tion of a particular alloy is based on a range high-strength steels for rocket motor casings, of properties, including yield strength, creep and dies and structural uses in large machin- resistance, oxidation resistance, formability, ery. These applications are met primarily and cost, through the use of three materials: cemented The beneficial properties that cobalt can im- carbides, tool steels, and maraging steels. part to superalloys and its availability at reasonable prices (until the market disruptions of Cemented Carbides 1978-80) led to the current level of use of co- Cutting tools used for machining of steel and balt. The F-100 engine, used in F-15 and F-16 cast iron, mining and drilling bits, small- and aircrafts, contains approximately 150 pounds medium-sized dies, cutoff tools, and screw- of cobalt. The JT9D commercial aircraft engine machine tools, all of which require qualities of contains approximately 165 pounds. abrasion resistance, hardness, impact resis- New engines may be designed to use cobalt- tance, and heat resistance, depend on cemented free alloys. The new General Electric F101 and carbides for their demanding properties. Ce- F404 engines use Inconel MA 754, a mechan- mented carbide tools may account for as much ically alloyed, cobalt-free alloy, for the turbine as 75 percent of the metal removed in domes- vanes. tic metal-cutting operations and for over 50

Table 3-5.—Uses of Cobalt, 1980 (thousands of pounds)

Reported Essential Essential Category consumption consumption fraction Superalloys ...... 6,300 4,500 71% Magnets ...... , , ... , ...... 2,300 400 17 Cemented carbides , ...... 1,300 1,100 85 Hardfacing ...... 600 300 50 Steel ...... 400 200 50 Other metallurgical...... 400 200 50 Catalysts ...... 1,700 100 6 Salts, driers, and other chemicals ...... 2,200 200 41 Total ., ... , ...... , ...... , . . 15,300 7,700 50% SOURCE National Materials Advisory Board, Coba4t Cortserva//on Through Tec/rno/og/ca/ A/terna//ves, NMAB-406, p 2 68 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

percent of the cutting and crushing functions Cobalt-containing tool steels have been a tar- in mining, oil and gas drilling, and construc- get for substitution research, which has pro- tion activities. duced alternative alloys with little or no cobalt through the use of powder metallurgy. For ex- Cemented carbides are formed from a mix- ample, a new alloy, CPM Rex 20, is a replace- ture of tungsten carbide powder, which pro- ment for the high-speed tool steel M42, and vides the hardness and wear resistance, and CPM Rex 25 may replace alloy T15. cobalt powder, which acts as the cement that holds the carbide particles together. The cobalt, Cobalt-based, hardfacing alloys have been carbon, and tungsten produce a synergistic ef- used as wear-resistant materials for over 60 fect that allows relatively easy production by years. Applications include cutters, knives, and sintering (heating the powder shape) to the surfaces of unlubricated bearings, Represent- point where the surface of the cobalt powder ative hardfacing alloys include Stellite 1, 6, 12, melts, dissolving some of the tungsten carbide and 21, all from Cabot Co., which range from to form an exceptionally strong bond, 53.5 percent to over 67 percent cobalt content. A substitute alloy containing less than 14 per- Materials other than cobalt, notably iron and cent has reportedly been developed, but it is nickel, with some chromium when needed for not yet in commercial use. corrosion resistance, have been used with some success as substitutes for the cobalt binder, but Maraging Steels only with some sacrifice in performance. Since the applications of cemented carbides are in Maraging steels are high-strength alloys that uses essential to the economy, and since there may be heat-treated in large sections and thick- are no satisfactory substitutes for either the car- nesses to increase their strength further. They bide tools or for the cobalt used in the binder, run from a low of 7.5 percent to a high of 12 the use of cobalt in this application must be percent cobalt. The major maraging steels are considered to be critical to the United States. designated as 18 Ni200, 18 Ni250, 18 Ni300, and 18 Ni350. The composition of these alloys are Tool Steels listed in table 3-7, The last three digits of the specification (200, 250, 300, and 350] refer to Tool steels are used in a variety of metal cut- the strength level of the steel, i.e., the 18 Ni250 ting and forming applications, but it is only in has a yield strength of 260,000 psi. These steels the high-speed, high-temperature applications are noted for their ultrahigh strength with high that cobalt-containing tool steel is of particu- toughness. The steels were developed for aero- lar importance. These steels are classed as M- space applications, but they are now also used type and T-type. Past consumption of cobalt in structural applications. Maraging steels in these classes of tool steels is summarized in achieve full strength and toughness through table 3-6, simple aging treatment (3 hours at 9000 F or Table 3-6.—Cobalt Consumption in Tool Steels 480° C). Hardening and strengthening do not (short tons) depend on cooling rates, so properties can be developed uniformly in massive sections with 1979 1980 1981 almost no distortion. Exact figures on con- Domestic production: sumption of maraging steels are unavailable, M-Type ...... 2,905 2,941 2,344 T-Type...... 639 552 479 but during the 1976-78 period, annual con- Subtotal ...... 3,544 3,493 2,820 sumption was in the range of 1,000 to 2,000 Imports...... 815 559 1,042 tons per year of steel, requiring 180,000 to Total ...... 4,359 ‘4,052 3,892 360,000 pounds of cobalt, Of this consumption, Approximate cobalt content only part is included in the machinery sector. (8°/0 average) ...... 349 324 311 The remainder is consumed in aviation appli- SOURCE Off Ice of Technology Assessment, based on data In Naiional Mater!. cations and is included in the transportation als Advisory Board, Cobalt Conservation Through Techno/ogica/ 4/fer natives, NMAB 406, p 107 sector. —

Ch. 3—Critical Materials Consumption: Current Patterns and Trends ● 69

Table 3-7.—Composition of Maraging Steels

Ni co Mo Ti Al Zr B 18Ni200 ...... 18.5% 5% 3.25% 0.2% 0.1% 0.01% 0.003% 18Ni250 ...... 18.5 7,5 4.8 0.4 0.1 0.01 0,003 18Ni300 ...... 18,5 9.0 4.8 0.6 0.1 0.01 0.003 18Ni350 ...... 18.5 12.0 4.8 1.4 0.1 0.01 0,003 Ni nickel Al = aluminum co cobalt Zr = zirconium Mo molybdenum B -boron Ti titanium SOURCE National Materials Advisory Board, Cobalt Comervat(on ~hrough Techno/og/ca/ A/terr?afives, NMAB 406, p 110

Chemicals and Catalysts industry is 970,000 pounds, Some cobalt is recycled, but about 340,000 pounds of high- Cobalt is an essential material in catalysts for quality cobalt are required every year for re- the refining of petroleum and for the produc- placement of spent catalysts, principally for tion of chemicals. In 1982, about 1.5 million hydroprocessing catalysts which are not re- pounds of cobalt (down slightly from 1.7 mil- cycled. Although processes exist for recovery lion pounds in 1980) were used in petroleum of cobalt, molybdenum, and other metals from refining and chemical production, of which all spent catalysts, the majority is disposed of in but 426,000 pounds were recycled. landfills and dead storage while a small amount In refining, cobalt-molybdenum catalysts are is exported. used to remove sulfur and heavy metals from Approximately 565,000 pounds of cobalt petroleum, with molybdenum being the more were used in catalysts for the production of active of the two metals. Substituting nickel for feedstock for polyvinyl chloride and of unsat- cobalt has proved somewhat successful, but op- urated polyesters in 1982. Of this amount, portunities are limited because nickel-molyb- 479,000 pounds, or 89 percent, was recovered denum catalysts operate at higher temperatures through recycling. Generally, the particular and pressures than do cobalt-molybdenum processes have been designed around the catalysts. Without modification of the process cobalt catalyst, so substitution of alternative equipment, the use of nickel catalysts would catalysts is not feasible. Only through the use result in a decline in the processing efficiency of alternative chemical processes would it be and production rate of the refinery. Even possible to use a different catalyst. accepting this drawback, cobalt cannot be entirely substituted because some reactors Electrical Applications were not designed to operate under the more severe conditions required by nickel-contain- Cobalt is used in the electrical sector because ing catalysts. of its magnetic properties. Cobalt-containing magnets have many applications in electric Over 97 percent of the approximately 225 do- motors and generators and in acoustic equip- mestic petroleum refineries use some form of ment, although a significant share of the mar- catalytic process. Hydroprocesses, which up- ket was lost to ferrite magnets as a result of the grade the quality of crude oil, are increasing cobalt price increases in 1979 and 1980. in importance with the greater use of lower quality feedstocks. There are five important Cobalt is used in three principal types of processes which are grouped as hydroprocess- magnets: the aluminum-nickel-cobalt (Alnico), ing: hydrotreating, hydrorefining, hydrocrack- iron-chrome-cobalt (Fe-Cr-Co), and rare earth- ing, residual hydrosulferization, and hydrogen- cobalt magnets. A fourth cobalt-containing ation of pyrolysis gasoline. All use substantial magnet utilizes amorphous cobalt-base alloys quantities of cobalt-bearing catalysts. The an- that are rapidly cooled from a molten state to nual consumption of cobalt in the petroleum obtain a glassy, noncrystalline structure. The 70 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability conventional Alnico and Fe-Cr-Co magnets ac- growth for the 9-year period 1981-90 is esti- count for 90 percent of the market for magnets, mated at 18 percent, or an annual rate of 1.9 with the remainder being accounted for by the percent. Most striking is the precipitous de- rare earth-cobalt magnets. cline in cobalt magnets in the telecommunications area. This decline is due to increasing The price increases of the 1978-79 period ini- miniaturization, digital signaling, and large- tiated major efforts at substitution of noncobalt scale integration. magnets (principally ceramic-hard ferrites) in magnetos and loudspeakers. These efforts were The importance of cobalt in its present ap- largely successful, to the point that even though plications is indicated by Bureau of Mines’ esti- the price of cobalt declined, the ferrite mag- mates that a threefold increase in cobalt price nets retained control of their newly captured would only produce a lo-percent reduction in markets. consumption, to about 1,8 million pounds in 1990. A much more drastic increase, a factor Most substitutions that could be made were of 10, could cause a much more significant de- made during the period of high cobalt prices, crease, to approximately 400,000 pounds, and further substitutions are unlikely, except which would be mostly in the loudspeaker and in the event of an extremely severe shortage motor applications. This fraction (20 percent) or major price increase. of the normal consumption is viewed by the The outlook for the future use of cobalt in NMAB as the essential requirement for cobalt magnets is for an extended period of relatively in magnetic applications, low growth, as shown in figure 3-I. The total Other Cobalt Applications

Figure 3-1.- Current and Projected Cobalt There are two principal uses of cobalt in the Consumption in Magnets, 1981.90 production of refractory and ceramic products. 2,000 First, cobalt is used to prepare the surface of I metals for binding by ceramic layers. In this application, cobalt, in the form of cobalt ox- 1,500 ide, is added to the glasses that are applied to the steel base. Second, cobalt oxide is used as 1,000 an intense blue pigment in ceramic products and as a decolorizer to offset the effects of iron and chromium in glass. 500 Organic salts of cobalt, which can be manufactured from any variety of cobalt metal or ox- 0 1981 1990 ide, are used as driers in inks, varnishes, and Year oil-based paints. Inorganic salts and oxides are used in pigments, animal feed, and a variety of other applications, all of which consume Other El Motors relatively minor amounts of cobalt. Em Telecommunications Loudspeakers c1 Indicators SOURCE” U S. Bureau of Mines, 1982 .

Ch. 3—Critical Materials Consumption: Current Patterns and Trends Ž 71

Manganese

Over 90 percent of manganese is consumed added at a ratio of 15 or 20 times the content in the production of metals, mostly by the steel of sulfur. In “resulfurized” steels, where sul- industry. The remainder is used within the fur is added to improve the machining prop- chemical industry and the battery industry, and erties, a minimum ratio of 7.5 parts manganese for various other uses, Table 3-8 shows the dis- to I of sulfur may be acceptable. tribution of consumption among the metal- Manganese is also added to steel to improve lurgical industries. the steel’s strength, hardness, or toughness. Al- Manganese is used by the iron and steel in- though other elements may be capable of im- dustry in two forms: ore and ferroalloy. Ore parting the same properties, manganese is is generally added during the ironmaking proc- often preferred because of its low cost and the ess, while ferroalloys may be added to the la- past experience with manganese in similar dle after crude steel has been produced. uses, The function of manganese in the production One steel product with a high percentage of of steel is to improve the high-temperature manganese as an alloying agent is the impact- characteristics of steel by replacing harmful and abrasion-resistant steel known as “had- iron sulfide by the more benign manganese sul- field” steel. This use accounts for approxi- fide. When allowed to form, iron sulfide mi- mately 70 percent of all high manganese steel. grates to the boundaries between grains in the Total production of these steels is about 100,000 steel, where it remains liquid or extremely plas- tons per year. The hadfield steels are noted for tic after the rest of the steel has solidified. As the property of work hardening where the the hot steel is rolled into useful forms, crack- strength of the material increases as it is used. ing results along grain boundaries, a charac- Hadfield steels are extremely useful in appli- teristic known as “hot shortness. ” To control cations where equipment is repeatedly sub- iron sulfide formation manganese is generally jected to high impact, such as earth-moving and excavation equipment. Another steel with a high proportion of manganese is the 200 series of stainless steels. These steels were developed in the 1950s and 1960s in response to uncertainties over the availability of nickel. The addition of about 6 percent manganese to the 300 series of stainless steel allows the reduction of nickel content from 8 to 4 percent. The resulting steel has performance characteristics similar to the 300 series and enjoys a slight price advantage. However, compared with the widespread experience with the 300 series, satisfactory data on the performance of the 200 series in extended use is lacking, Moreover, producers have not promoted the 200 series. Thus, the use of the 200 series has been limited, and there is no expectation for any change in this pattern. Manganese is also used in nonferrous applications. The largest of these is the 3000 series aluminums, which contain about 1.5 percent 72 • Strategic Materials: Technologies to Reduce U.S. Import Vulnerability manganese. Estimated manganese consump- teries. Manganese ore is used to produce po- tion by the aluminum industry is between tassium permanganate, drying agents for inks, 10,000 and 15,000 tons per year, possibly grow- paints, and varnishes, and as fuel additives. ing to 20,000 by 1990. Manganese use in cast Manganese is also used to a small extent in fer- and wrought copper alloys is much less, on the tilizers, animal feed, ceramics, and uranium order of 1,500 tons per year. processing. Manganese, in the form of manganese dioxide, is used in conventional carbon-zinc bat-

Platinum Group Metals

The platinum group metals (PGMs) are noted of consumption, electrical, 24 percent; chem- for their stability in extreme environments. ical, 13 percent; dental and medical, 12 per- Resistant to high temperatures and to chemi- cent; petroleum, 8 percent; and glass and cal attack, PGMs are used in furnaces for grow- jewelry, 3 percent each (see fig. 3-2]. ing single crystals of oxide compounds, in the Consumption patterns of PGMs differ among manufacture of glass fiber and high-quality op- the metals. While the major use of platinum is tical glass, and in thermocouples and elec- in the automotive catalytic converter, the ma- trodes in electrical applications, PGMs are jor uses of palladium are in the electrical and used as catalysts in the production of nitric dental/medical sectors. The other metals are acid, in the refining of petroleum, and in the used largely in the chemical and electrical treatment of exhaust gas from automobile en- sectors. gines. Contacts of both low- and high-voltage switches employ PGM alloys, as do integrated circuits and resistors. Other uses are in jewelry Transportation Applications and in medical and dental applications. The imposition of standards for automobile The consumption of PGMs grew by a factor emissions resulted in the use of catalysts in au- of 2.7 between 1950 and 1970. Consumption tomobiles, starting with the 1975 model year. in the chemical industry more than doubled, As a result, the automotive industry quickly be- petroleum refining grew to account for one- came the major consumer of platinum, the key tenth of consumption, the electrical uses quad- element in the catalytic converter. In 1975, ap- rupled, dental and medical uses doubled, and proximately 80 percent of all new cars were glassmaking became another important con- equipped with the converter. This converter, sumer. In that 20-year period, the only decline intended to promote the complete combustion was in the jewelry and decorative sector. This of carbon monoxide and unburned hydrocar- was the single largest end user in 1950 account- bons in the hot exhaust gas, averaged approx- ing for 35 percent of consumption; in 1965 it imately 0,062 troy ounces of PGMs per car, of accounted for only 5 percent. which about 70 percent was platinum and the With the passage of the Clean Air Act in the remaining 30 percent was palladium. By 1983, 1970s (Public Law 91-604 and amendments), a virtually all new gasoline-powered cars and new use for PGMs developed: the automobile light trucks were equipped with catalytic con- catalytic converter, The catalytic converter was verters, Tighter restrictions on the emissions, first used nationwide in 1975. Annual con- including oxides of nitrogen, lead to the devel- sumption of PGMs almost doubled within a opment of a new three-way catalyst that uses decade. By 1980, the mix of end uses had more PGMs, including rhodium, an element shifted so that autos accounted for 33 percent not found in earlier converters. A typical con- Ch. 3—Critical Materials Consumption: Current Patterns and Trends ● 73

Figure 3-2.— Distribution of Platinum Group Metal Consumption by Applications

2,000 E

0 1950 1955 1960 1965 1970 1975 1980 Year

El● a Decorative Miscellaneous

Glass Automotive

172if Petroleum E!is Chemical

❑ Dental/medical Electrical SOURCE U S Bureau of Mines verter on a 1983 car contains, on the average, Table 3-9.—Annual Consumption of Platinum Group 0.079 troy ounces of PGMs, of which about 70 Metals in Domestic Automotive Catalytic Converters percent is platinum, 22 percent is palladium, Sales of gasoline PGM and the remaining 8 percent is rhodium. The cars and trucks (1,000s of historical consumption of PGMs by the auto- Year (1,000s) troy ounces)—— motive industry is reported in table 3-9. 1975 ...... 9,346 443 1976 ...... 11,202 502 The future consumption of PGMs in the cata- 1978. , ...... 11,979 491 1979 ...... 13,255 618 lytic converter will be determined by two fac- 1980 .., ...... 10,431 704 tors. First is the outlook for domestic produc- 1981. , ...... 9,827 722 tion of cars and trucks. Forecasts of auto 1982, ...... , ...... 9,512 685 production are dependent on a number of fac- 1983 .., ... , ...... 10,715 770 SOURCE Sierra Research tors, including the price of fuel, the general state of the economy, and the competitiveness of domestic producers with foreign producers. The second factor to affect critical metal con- As a basis for estimating future PGM require- sumption is the design of the catalytic con- ments, a range of forecasts, based on projec- verter itself. Despite predictions made at the tions made for the Department of Energy, have converter’s introduction, neither improvements been made and the baseline results are pre- in engine design nor research into alternative sented in figure 3-3. catalysts have resulted in the decline in impor- 74 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

Figure 3-3.— Estimated Future Vehicle Sales in the United States

1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 Model year

tance of the PGM-containing converter as the ing and hydrocracking. Unlike the case of co- principal means of meeting air quality stand- balt catalysts, these metals are subject to tight ards. This will probably continue to be the case monitoring and control, with the result that less for some time. While it appears possible to de- than 10 percent of the annual consumption of sign an engine that could meet the air quality these metals is lost in the petrochemical in- standards, it seems unlikely that any new de- dustry, sign will soon be able to compete economically with the gasoline or diesel powerplant. Chemical Applications Based on the medium-growth projections for future sales of cars and trucks, and on the Chemical industry applications include the assumption that the catalytic converter will manufacture of nitric acid from ammonia. The remain essentially unchanged, the projected PGMs contained in catalysts in these applica- annual consumption of PGMs in 1995 is esti- tions are largely recovered for reuse, New ma- mated to be 1.4 million troy ounces. Consump- terial is required for increases in processing tion estimates for 1995 based on the high auto capacity and to make up losses in recycling. sales forecast are 1.7 million troy ounces of PGM, and the low forecast results in 1.1 million troy ounces of PGM. Estimated metal con- Electrical Applications sumption for the period 1984-95 is shown in figure 3-4. For many years, PGMs, particularly palladium, have been used in telephone switching Construction Applications systems, a use which is declining as a result of the rapid introduction of solid-state switches. Petroleum production accounts for approx- In turn, the increased use of integrated circuits imately 9 percent of U.S. platinum consump- is resulting in increasing demand for PGMs. tion as measured by sales of new metal and re- In integrated circuits, PGMs are used as confined scrap to industry. PGMs are used by the tacts between the circuit itself and its outer petroleum industry in two processes: reform- package. Ch. 3—Critical Materials Consumption: Current Patterns and Trends ● 75

Figure 3-4.—Estmated PGM Requirements in Catalytic Converters for Domestic Automobile Production, 1984.95

------1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 Year

I ❑ flhodi.rn ❑ Palladium ● platin.rn I

SOURCE Sierra Research, 19&3

Electrical Contacts tial increases in contact resistance, so the selection of a surface material for contacts must An essential property of electrical contacts consider the corrosive elements in the operat- in mechanical switching systems is low con- ing environment, the chemical products that tact resistance, or low resistance to the flow may be formed by the contact metal, and the of electricity through the surfaces of the con- physical and electrical properties of those tacts. This property is greatly influenced by the products. condition of the surfaces. Resistivity is increased either through the wear of the surfaces Of the total consumption of PGMs in the elec- or through the creation of insulating films, trical and electronics industries in 1981, approximately 50 percent went into the produc- If contacts are to have high reliability and tion of electrical contacts, mainly in devices long life, they must be resistant to adhesive and for opening and closing circuits in telecom- abrasive wear. Adhesive wear occurs where munications systems. Although gold contacts the mating surfaces adhere to one another dur- generally offer superior performance, cost con- ing sliding, resulting in the transfer of metal siderations have resulted in the use of palla- to the opposite contact, the edge of the contact dium and palladium-silver alloys. As a result area, or to debris. Adhesive wear is determined of the increasing use of solid-state switching by the material’s hardness and ductility and by by the telecommunications industry, the con- the strength of the adhesive bonds which form sumption of palladium in this application will between surfaces. be declining for the rest of the century. Resistance to corrosion is critical in electrical contacts. Most metals form insulating poly- Ceramic Capacitors mer or oxide films on their surfaces. Generally, although not always, these films have lower Ceramic capacitors now constitute the ma- conductivity than the surface metal. Even films jor market for palladium in the electronic sec- only a few angstroms thick can cause substan- tor. The ceramic capacitor industry alone con- 76 Ž Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

sumed approximately 500,000 troy ounces of of the high-silver electrodes, which have a palladium in 1983, which is expected to have lower melting point than the pure palladium doubled to 1 million troy ounces in 1984, Unit electrodes they replace, requires a lower firing shipments of multilayer ceramic capacitors temperature to prevent oxidation of the silver (MLCs), the largest and fastest growing class during processing and to avoid reactions be- of ceramic capacitors, are expected to grow at tween the electrodes and the dielectric layers. nearly a 20-percent annual rate through the The silver also tends to migrate into the ce- 1980s. ramic during firing, which can lead to various electrolytic reactions, causing inconsistencies Multilayer ceramic capacitors are rapidly in performance and, possibly, failure of the ca- replacing the single-layer capacitor, MLCs are pacitor. built of many thin layers of ceramic material, with electrodes made of gold, silver or PGM With a higher melting point, nickel appears alloys separating each of the several thin layers. to have greater potential as a substitute mate- The electrodes exit on alternate ends of the ca- rial in the MLC electrode. Producers currently pacitor, so the plates act in parallel, giving a find nickel’s properties difficult to control, but larger effective area and a higher capacitance. the Japanese are starting to use nickel in limited The manufacturer controls the final capaci- applications. The use of nickel requires expen- tance of an MLC by varying the area, the thick- sive processing in an oxygen-free atmosphere, ness of the ceramic layers, the number of but the lower cost of nickel may provide incen- layers, and the dielectric constant of the ce- tive for further development. ramic. The end result is a sturdy, highly com- A developing alternative to palladium elec- pact capacitor. trodes is a lead alloy, In this process, known In creating MLC conductive layers, manu- as the advanced Corning electrode, or ACE, the facturers use a metallic ink to print electrodes ceramic is printed with an ink made of a mix- on a tape of ceramic material, which is then ture of carbon-like powder and dielectric pow- assembled into a capacitor prior to baking or der. During firing, the carbon material burns firing into the finished component. The firing away, leaving the layers of ceramic separated temperature necessary for the typical ceramic by pillars of the dielectric powder, After fir- material (alkali-earth titanates)—about 1,3500 ing, lead is injected into the voids left by the C—is too high for silver alone to serve as the carbon powder. This process was introduced electrode material, Gold or platinum could be in 1983 by Corning [the sixth largest U.S. ce- used but their high cost, several hundred dol- ramic capacitor manufacturer), with encour- lars per troy ounce, leads manufacturers to use aging results. If this process is able to produce palladium or a palladium-silver alloy as the consistently high-quality products, the lower electrode material. cost of lead relative to palladium and silver will provide the driving force to encourage its wide- Driven by a need for lower costs, manufac- spread use. turers have advanced MLC technology from the use of platinum electrodes in the early Acceptance of new manufacturing technol- 1960s, to gold-platinum-palladium electrodes ogies is often a long process. However, in the (which are still the most desirable, but most ex- MLC industry, which is pressured by Japanese pensive, electrode material) in the late 1960s, competition and by a growing demand for pal- to pure palladium in the 1970s, and most re- ladium that is certain to force prices upward, cently to silver-palladium, Even with this sav- new processes may be accepted as quickly as ings, however, the electrodes still account for they can be shown to provide the essential high 40 percent of the total material cost in the ca- reliability with reduced materials cost. Al- pacitor, In moving to the 70 percent silver though the growing consumption of palladium alloy, manufacturers accepted some compro- in ceramic capacitors will continue for the next mise in the properties of capacitors, The use several years, technical advances spurred on Ch. 3—Critical Materials Consumption: Current Patterns and Trends . 77 by limited supplies of this metal are likely to glass and as dies and forming devices for glass provide lower cost alternatives that will even- fiber. tually be accepted by the electronics industry, As with the catalytic uses of PGMs, the re- resulting in a slow, but long-term decline in pal- fractory and glass applications are largely re- ladium consumption in this sector. covered for reuse. Refractory Applications Other Applications PGMs are used as crucibles in the produc- A variety of chemical compounds are used tion of single crystals of certain oxide com- in cancer chemotherapy. In addition, PGMs pounds that can only be manufactured at are used in dental applications in dental crowns extremely high temperature, The high-tempera- and bridges. These are all considered unrecov- ture resistance, combined with the chemical erable applications of PGMs. stability, allows the production of crystals without danger of contamination by the crucible Use of PGMs in jewelry has been relatively and tools used in the growth process. limited in the United States, but it is quite popular in Japan. Platinum alloys make good jewelry PGMs are also used in the melting tanks, material, but they are easily replaced by gold. stirrers, and crucibles for melting high-quality

Future Applications for Strategic Materials

Nonconventional Energy Systems directly converts chemical energy into electric power, It can also reverse the process, convert- In recognition of the limited domestic re- ing electrical energy into chemical energy, stor- serves of petroleum and the limitations on the ing it, and then converting it back into electri- uses of coal in its natural form, the United city when needed. States has devoted considerable effort to technological approaches to make efficient use of An example of current fuel cell technology its energy resources and facilities. Some of this is the phosphoric acid cell, In this system, work has resulted in new energy systems that hydrogen, which is obtained from methane or may have significant effect on U.S. needs for naphtha, is reacted with oxygen from the strategic materials. Several of the technologies atmosphere to produce electricity and water. that may have major requirements for strate- The phosphoric acid, which serves as the elec- gic materials (particularly the PGMs) are dis- trolyte in the cell, is kept at about 350° F. In cussed below. order for the reaction to proceed, a platinum catalyst is necessary. Demonstration models of Large-Scale Fuel Cell Stations the fuel cell now require approximately 6.3 grams of platinum per kilowatt (kW) of power In order to make most efficient use of elec- output. At a production level of 750 to 1,000 trical generating capacity, a number of power megawatts (MW) per year, as suggested by one storage systems have been examined. In one developer as a target for 1995—in 2000, the an- system now in use, electricity generated in off- nual platinum requirement of fuel cells could peak hours moves water above a hydroelectric be as high as 6.3 metric tons (tonnes). This plant, allowing additional generation during would be reduced to 1.9 tonnes per year if de- peak hours without the need for expensive ad- velopers reach their target for reduced plat- ditional capacity. Another system being con- inum loading of 1.9 grams per kW. The need sidered for the future is based on the fuel cell. for platinum may be eliminated if current re- The fuel cell is an electrochemical device that search leads to development of alternative 78 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability catalysts or alternative fuel cell designs that do The syngas is converted catalytically to meth- not require platinum catalysts. ane (using a nickel catalyst) or to gasoline (using an iron or a cobalt-containing catalyst). Synthetic Fuels Critical Metals in Automobiles Currently, there is little synthetic fuel production from coal, oil shale, or biomass. Over the The automobile of the future will certainly next 25 years, production of synfuels is ex- differ from those of today. With the large cap- pected to increase. Cobalt and PGMs will play ital investment required to manufacture the a role in the development and growth of these millions of automobiles sold every year, it can energy sources, be assumed that changes in design will not be Liquid and gaseous fuels from coal are ex- radical, but even gradual changes may have sig- pected to be the first large-scale synthetic fuels. nificant effects on the consumption of strate- Two processes for liquefaction of coal are gic metals. One example is dual-fuel vehicles. known: direct and indirect. In the direct proc- These vehicles use a mixture of gasoline and ess, coal is hydrogenated to form a liquid in methanol (from 3 percent up to 10 percent the presence of a catalyst, usually containing methanol). The methanol content requires a iron, although one process, the H-Coal proc- more corrosion-resistant material for the fuel ess, uses a cobalt-containing catalyst. In any tank, fuel line, and carburation system than is case, the liquid products obtained from coal now used in automobiles. Stainless steel now and from oil shale will require substantial offers the best performance characteristics for hydroprocessing of a type similar to that used much of the fuel system when a gasoline/meth- with petroleum. anol mixture is used. However, auto manufacturers hope to develop alternative materials In the indirect process, coal is reacted with that will have lower raw material and fabrica- steam and oxygen to produce syngas, a mix- tion costs. ture of carbon monoxide and hydrogen gas.

Summary: Essential Uses of Strategic Metals

Attempts to predict future requirements for mium, cobalt, manganese, and PGMs are most materials are fraught with difficulties, owing essential. As a starting point, it is helpful to both to the uncertain growth of industrial and consider extrapolations of current materials re- consumer needs and to unforeseen changes in quirements. The U.S. Bureau of Mines has manufacturing technology. Discussions of fu- made statistical projections of future materials ture essential requirements for specific ma- requirements based on current patterns and terials are even more difficult since essential- trends; these are presented in table 3-Io. ity is not a simple yes-or-no characteristic. The need for a material in a particular application While these projections are useful as a start- depends on the cost and performance of altering point, there are a number of important native materials and on the time available to modifications and clarifications that arise from replace the material, to redesign the compo- a detailed study of the major uses of strategic nent in which the material is used, or even to metals. The major points are as follows: eliminate the need for the application al- ● Chromium consumption for most applica- together. tions, other than chemical and refractory Despite the difficulties, however, it is neces- uses, will require high-carbon ferrochrome. sary to estimate future materials requirements In the aviation industry, however, the re- and to identify the applications in which chro- quirement for low carbon content and high Ch. 3—Critical Materials Consumption: Current Patterns and Trends ● 79

Table 3-10.–U.S. Bureau of Mines Estimates of Probable Demand for Strategic Metals in the Year 2000

NOTE 1 Statistlcson useof cobalt in glass and ceramics were combined wflh thoseon paint and chemical uses In 1983 SOURCE U.S Bureau of Mines, Mineral Commodity Profdes, 1983

purity will mean that the industry will tained from prompt industrial and obso- need substantial amounts of low-carbon lete scrap. ferrochrome (6,500 tons of contained chro- ● Estimates of future manganese require- mium in 1995) and chromium metal (3,700 ments are based on the assumption that the tons in 1995). ratio of manganese to iron used in steel- • Requirements for PGMs in the electronics making will decline by only 10 percent by sector are likely to be considerably higher the year 2000. than projected by the Bureau of Mines Although it is difficult to estimate the spe- owing to the rapid increase in palladium cific quantities of strategic metals that can be consumption in ceramic capacitors. Esti- mated consumption in 1983 of 500,000 deemed to be essential, it is possible to identify the principal applications that are essen- troy ounces of palladium already exceed tial to the United States and that use chromium, the Bureau of Mines’ forecast of 300,000 cobalt, manganese, and PGMs to fulfill their troy ounces in 2000. Anticipated consump- functions. These applications, and their stration of 1 million ounces in 1984 and a pro- tegic materials requirements, are summarized jected annual growth rate of 20 percent per below, annum indicate that estimates of PGM requirements for the electronic sector are low and in need of further study. Superalloy ● Requirements for platinum, palladium, and rhodium in the automotive sector do Chromium, in the form of both chromium not include PGMs contained in the cata- metal and low-carbon ferrochromium, is an es- lytic converters of imported automobiles, sential element in superalloy. In addition, co- Other factors, including the use of plat- balt is currently used in a number of super- inum-containing particulate traps will also alloy, particularly in the applications of result in higher consumption of PGMs. highest temperature and stress. To meet future Estimated requirements for PGMs in cata- requirements for superalloy in gas turbine lytic converters in 1995, made by Sierra engines, jet aircraft, and other applications, the Research for OTA, are for 1.4 million troy chromium requirements for 1995 are estimated ounces, almost 50 percent greater than the to be 3,700 tons of chromium metal, 6,500 tons Bureau of Mines’ forecast. of low-carbon ferrochrome, and 8.3 million ● Estimated consumption of cobalt, chro- pounds of cobalt. Similar estimates for the year mium, and PGMs do not distinguish be- 2010 are 6,800 tons of chromium metal, 12,000 tween primary metal, produced directly tons of chromium in ferrochrome, and 13 mil- from mined ore, and secondary metal ob- lion pounds of cobalt. 80 Ž Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

Stainless Steel for Construction in this use is essential. Estimates for 1995 cobalt requirements in cemented carbides are Stainless and other alloy steels are used in about 1.3 million pounds, rising to about 2. I the energy and chemical process industries to million pounds in 2010. provide resistance to high temperature, corrosion, and oxidation and to limit contamination Industrial Catalysts of chemicals that could occur from the use of less resistant materials in tanks, piping, and The use of catalysts in the petroleum and process vessels. In 1979, the Department of chemical industries is expected to grow at a Commerce estimated chromium requirements high rate, more than doubling by the year 2000. for the energy industry at 27,000 tons in 1990 Although in some cases there are alternatives and 33,000 tons in 2000. NMAB estimates were to the processes that utilize cobalt and PGM lower (see table 3-4). The bulk of the chromium containing catalysts, once facilities are con- will be used as high-carbon ferrochrome, but structed there is little opportunity to substitute a small percentage of the applications will be an alternative process that reduces cobalt or in special alloys that require low-carbon ferro- PGM demand unless large investments are chrome or chromium metal. made to modify plant designs. Manganese in Steelmaking Automobiles Manganese is essential to the manufacture In automotive applications, the catalytic con- of steel. The amount that is essential to the verter accounts for about 85 percent of the es- United States depends on the essential needs sential uses of chromium and all of the uses for steel, the mix of steel products (i.e., carbon of PGMs. The estimated essential requirements steel; alloy steel; high-strength, low-alloy steel; for chromium in automotive applications will and stainless steels), the sulfur content of the be 15,000 short tons in 1990 and 16,000 short raw steel, and the efficiency of the steelmak- tons in 1995. Requirements for PGMs are 1.3 ing process. million troy ounces in 1990 and 1.4 million troy ounces in 1995. Estimates for both chromium Palladium in Electronic Components and PGMs are for all automobiles sold in the United States. Direct U.S. requirements for Over the next few years, the use of palladium chromium and platinum metal will be reduced alloys as electrodes in ceramic capacitors will by the degree of market penetration made by cause palladium consumption in the electronic foreign automobiles. sector to increase to a level substantially greater than indicated by the Bureau of Mines’ esti- Cemented Carbides mates. However, the development of new technologies, which will be spurred by the limited Cemented carbides are one of the most essen- availability of palladium relative to the needs tial applications of cobalt. There are no accept- of the manufacturers of ceramic capacitors, able alternatives to cobalt for binding the car- will then cause a decline in the demand for pal- bide particles together, so virtually all cobalt ladium, CHAPTER 4 Security of Supply Page Factors That Affect Security of Supply ...... 84 Depletion of World Resources ...... 84 Demand Surges ...... + ...... 85 Cartels ...... 86 Political Embargoes and the Resource War...... 87 Civil Disturbances, Local Wars, Internal Troubles ...... 90 Materials Supply Interruptions Since World War II ...... 91 Soviet Embargo of Manganese and Chromium, 1949 ...... 91 U.S. Embargo on Imports of Rhodesian Chromium, 1966-72 ...... 92 Canadian Nickel Strike, 1969 ...... 94 The Cobalt Panic, 1978-79 ...... 97 The Effects of Supply Interruptions...... 102 Materials Policy...... 104 Self-Sufficiency v. Interdependence ...... 105 Commission Studies ...... 106 Congressional Actions and Government Policies ...... 112 The Range of Solutions ...... 119

List of Tables Table No. Page 4-1. World Reserves of Selected Materials, 1950 and 1981...... 84 4-2. Mine Production of Cobalt in the Non-Communist World ...... 100 4-3. U.S. Consumption of Cobalt by Use ...... ,...... 100

List of Figures Figure No. Page 4-1. Selected Mineral Resources of Central and Southern Africa ...... 89 4-2. Transportation Routes for Minerals in Central and Southern Africa ....98 4-3. Estimated Price Effects on U.S. Cobalt Demand ...... 101 CHAPTER 4 Security of Supply

Import dependence—i.e., the proportion of prices soaring and users scrambling for sup- demand supplied by foreign sources–is not the plies. In addition, the security of imports from same as import vulnerability. The stability and a friendly trading partner like Australia may reliability of foreign sources of supply, plus be called into question because the supply lines their number and diversity, are major factors are so long. Nor is domestic production proof in gauging whether or not this Nation is vul- against interruption of supply. For example, nerable to disruptions in the supply of a given molybdenum was in short supply, here and imported material. abroad, from 1974 to 1979, even though the United States is the world’s largest producer The preponderance of U.S. minerals imports and exporter of this mineral. The shortage comes from reliable sources—allies and close came about because of a world depression in neighbors. Canada is this country’s leading pro- copper production, of which molybdenum is vider of nonfuel minerals, accounting for one- often a byproduct, and because the large new third of the total value of U.S. minerals imports. Henderson mine in Colorado was not yet in Of the 34 minerals shown in chapter 2 (fig. 2- operation. Moreover, in 1979, after the Hen- 1), Canada is the largest supplier of 12, includ- derson mine was producing, a 9-month strike ing iron, nickel, zinc, tungsten, selenium, cad- at Canada’s Endako mine kept world produc- mium, asbestos, and potash. Australia is by far tion of molybdenum flat. That year, spot mar- the United States’ biggest source of rutile ore ket prices shot up to triple the mining compa- for making titanium (one of the essential me- nies’ contract price. tals for airplane parts and engines) and is a significant supplier of alumina and cadmium, It should be noted that the decline of the Mexico is a dominant or major supplier of a American steel industry may be said to in- dozen minerals, including strontium, fluorspar, crease the vulnerability of the entire U.S. econ- natural graphite, silver, cadmium, and zinc; omy, and to make the Nation less self-sufficient and Brazil sells the United States large amounts in defense. This troubling problem goes to the of manganese. Venezuela is a major provider heart of U.S. economic strength and interna- of rich iron ore. tional competitiveness, and it is receiving sustained attention from analysts and policy- For a few specific minerals, however, the makers. However, it involves many issues that United States is highly dependent on a limited are outside the scope of this report. Readers number of sources that could prove unstable. interested in these issues are referred to a prior It may fairly be said that vulnerability of sup- OTA assessment, Technology and Steel Indus- ply for some of these materials has increased 1 try Competitiveness. over the past 30 years. Suppliers that were once colonial dependencies of Western European Altogether, security of minerals supply hinges countries and reliable hosts to international on a broad variety of factors. One concern, very mining companies are now struggling new na- much to the fore in the early 1970s but less so tions. Many of them are experiencing difficul- now, is the depletion of world resources in the ties in running their own nationalized minerals face of escalating demand. An impermanent industries, and some are quite vulnerable to but recurring difficulty for many minerals is civil disorder and local wars. boom-and-bust cycles, with surges of demand coming from the most volatile parts of the Supplies even from sources regarded as reliable can be interrupted. Such was the case in IOffice of Technology Assessment, Technology and Steel In- 1969, when a months-long strike of the Inter- dustry Competitiveness, OTA-M-122 (Washington, DC: US. Gov- national Nickel Co. in Ontario sent nickel ernment Printing Office, June 1980).

83 84 • Strategic Materials: Technologies to Reduce U.S. Import Vulnerability economy during the time when users of the Recently, concerns about security of supply minerals are experiencing tight supplies, short- have centered around the possibility of a car- ages, and high prices. In the bust side of the tel gaining control of critically needed cycle, minerals investments in everything from minerals, of a Soviet-inspired squeeze on exploration to modernization may decline minerals from central and southern Africa, or precipitously, and some mines and plants that of unplanned, unpredictable civil disturbances are closed down may never reopen. or local wars.

Factors That Affect Security of Supply

Depletion of World Resources of discovering them, mining them, and processing them have steadily improved. For exam- The Earth’s resources are, of course, finite, ple, through technological advances, many But the minerals that underpin industrial so- lower quality ores are now just as usable as the ciety seem to be in no immediate danger of richer ones were before them. An important “running out” in the physical sense, at least instance is chromium, where the distinction for the next 30 to 50 years. Technology has con- between the metallurgical grade of chromite tinually extended both reserves—the identified ore, with its higher chromium content, and the inventory that can be mined profitably under lower chemical grade has lost most of its sig- present economic and technical conditions— nificance just in the last 10 years, Thanks to and the larger body of known or potential re- a steelmaking advance (called the argon-oxygen- sources, Table 4-1 shows the changes in proven decarburization or AOD process), high-carbon world reserves of 13 minerals over 30 years. ferrochromium (made with the chemical grade Most of them increased by at least 100 percent, of chromite ore) can be used in place of low- and several by more than tenfold, even while carbon ferrochromium (made with the metal- world demand shot upward, especially in Ger- lurgical grade) in the production of stainless many and Japan. steel. The reason for the continued growth in re- Another point about physical depletion is serves of the world’s minerals is that the means that nonfuel minerals, unlike fuels, are generally not consumed with use, Many can be recy- Table 4-1 .—World Reserves of Selected Materials, cled. In some instances, recycling may not be 1950 and 1981 (tonnes unless otherwise stated) economical because the mineral ingredients in finished products are widely scattered, de- Material 1950 1981 1981/1950— —— 9 10 graded, or inconveniently combined with other Bauxite ...... ~¥Î••¦Î• . 1.4 x 10 2.2 X 10 16 Chromite a ...... 1.0 x 108 3.4 x 109 34 materials. Yet recycling is already an impor- Cobalt ...... 7.9 x 105 3.1 x 106 4 tant source of supply for many minerals and Copper ...... 1.0 x 108 5.1 x 108 5 Iron ...... 1.9 x 1010 2.7 X 1011 14 could become more so with advances in tech- Lead ...... 4.0 x 107 1.7 x 108 4 nology. Manganese ...... 5.0 x 108 4.9 x 109 10 Molybdenum ...... 4.0 x 106 9.8 X 106 2 How long technology can extend the life of Nickel...... 1.4 x 107 5.4 x 107 4 the Earth’s resources is, of course, a serious Platinum groupb ...... 2.5 X 107 1.2 X 109 48 Tin ., ...... 6.0 X 106 1.0 x 107 2 question. Just because it has done so satisfac- Tungsten ...... 2.4 X 106 2.9 X 106 1 torily in the past is no guarantee that it will in Zinc ...... 7.0 x 107 2.4 X 108 3 the future, especially when world population ~hromlum ore bTroy ounces is growing at a staggering pace and soaring de- SOURCES For all 1950 figures except platinum group, John E Tilton, The Fu mands for resources may follow. Minerals ture of Norrfue/ Minera/s (Washington, DC Brooklngs Institution, 1977), p 10 For 1981 f!gures and 1950 figures for plat!num group, economists generally argue that depletion U S Department of the Interlot, Bureau of Mines would make itself felt as a persistent long-term Ch. 4—Security of Supply ● 85 rise in materials costs rather than an abrupt lizes, decent standards of living can be sus- physical running out of stocks.2 This expecta- tained indefinitely “provided man finds an in- tion may be too optimistic. According to one exhaustible nonpolluting source of energy.”6 geophysical theory, most metals have a “min- They envision a new “Age of Substitutability,” eralogical barrier” beyond which the energy in which society would be based largely on needed to release them from the rocks in which glass, plastic, wood, cement, and the “inex- they are bound leaps 100 to 1,000 times. The haustible” minerals: iron, aluminum, and mag- barrier may be reached for all “geochemically nesium. Whether societies have the capacity scarce” metals—which is to say, all but five— and foresight to plan a smooth transition from within a century. 3 the present age of fossil fuels and materials abundance to the Age of Substitutability is a The Earth’s crust contains just 12 “geochem- harder question. But, from the cornucopian ically abundant” elements, which account for point of view, there are no technical bars in over 99 percent of the mass. Five of these ele- the way so long as energy is available. ments are metals: aluminum, iron, magnesium, titanium, and manganese, A steadily increasing amount of energy will be needed to pro- Demand Surges duce even these metals from progressively Temporary shortages and price spikes for leaner ores. But for all the other metals, a materials in response to peaks of demand have mineralogical barrier may exist, usually at sometimes been interpreted as signs of re- ore concentrations of about one-tenth to one- source depletion, Two major studies of mate- hundredth of 1 percent, past which the metal rials policy were started, in fact, at a time of is no longer concentrated in an ore body. In- demand surge and materials shortages, one in stead, it is dispersed as atoms, isomorphically the early 1950s during the Korean war, and replacing atoms of the abundant elements in another in 1973-74, when all the world’s indus- common rocks. Once the mineralogical barrier trial countries were riding a wave of prosper- is reached, the energy needed to release the ity together. In both cases, the shortages proved scarce metals will be so great, and the prices short-lived. With a downturn in business activ- so high, that according to the theory, new sup- ity, minerals industries found themselves with plies of these metals will no longer be pro- excess capacity, as they typically do after a duced. According to this theory, a “Second boom is over. Iron Age” will begin when “it will be simply 7 cheaper to substitute iron and aluminum and Copper is an example. Like many minerals, put up with penalties, such as lower efficien- it is used in construction, transportation, cap- cies in machines, that we do not now coun- ital equipment, and consumer durables, all of tenance.”4 which react in exaggerated form to the peaks and valleys of economic activity. In 1973 and Analysts of the “cornucopian” persuasion early 1974, with the economies of the United concede that minerals depletion is in fact oc- States, Japan, and Western Europe on a simul- curring, but they do not regard the loss as cru- 5 taneous upswing, there were serious copper cial. The ultimate raw material, they say, is shortages, aggravated by attempts of industrial energy. Assuming that world population stabi- users to build up inventories for security of supply, Within 2 years, the situation reversed. 2See, for example, Hans H, Landsberg and John E, Tilton, with Ruth B. Haas, “Nonfuel Minerals, ” in Current Issues in Natu- ——. ral Resource Polic~r, Paul R. Portney with Ruth B, Haas (eds. ) 61bid., p. 688. (Baltimore: The Johns Hopkins University Press, 1982), pp. 83-84. ‘Copper is not generally regarded as a strategic material todaj’ 3 For a succinct statement of the theory, see 13 ria n J. Skinner, because the United States is a large producer, and supplies are “A Second Iron Age Ahead?” American Scientist, May-June 1976, currently more than ample, The copper industry does clearly pp. 258-69. ill ustrate the cyclical nature of minerals ?]roduction, whether 41 b]d,, p. 267. of strategic minerals or ]CSS critical ones In genera], througtl-

5 H , E. Goeller and Alvin M. Weinherg, “The Age of Sub- out this chapter, minerals that ma~ not be strategic are used for stitutahil ity, ” Science, Feb. 20, 1976, p. 688. illustrative purposes. 86 • Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

Prices slumped. Copper mines and smelters in low and facilities idle sows the seeds of future the United States, the world’s largest producer, shortages. To be sure, such shortages tend to were shut down. As industry revived in 1976- correct themselves, because the high prices 77, copper followed. With the recession of they bring induce the needed investment. But 1982, copper once more hit bottom, with prices lead times for opening new mines, processing dropping 30 percent in 2 years and mines clos- plants, and support facilities are from 2 to 7 ing throughout the American West. At the end years, and meanwhile, industries dependent on of 1982, all of Anaconda’s* mines and smelters the minerals may suffer hardship and disloca- in Montana were closed down or scheduled for tions for several years. closing. The huge Phelps Dodge open pit mine in Morenci, AZ, was shut down for several Cartels months in 1982—the first such closing due to a business slump since the Great Depression.9 The success of the Organization of Petroleum Exporting Countries (OPEC) cartel convinced Instability in the minerals industries is an old many people that producers of other raw ma- story, but some forces in recent years may be terials—bauxite, chromium, copper, phosphates, making it worse. One detailed study of fluctu- and perhaps tungsten—would get together to ations of industrial production in the United seize control of their markets. So far, it has not States, Japan, and several European countries happened. One of the classic conditions for concluded that the ups and downs of business monopoly control does exist for quite a few cycles are now more pronounced than they nonfuel minerals; that is, a limited number of were in the 1950s and 1960s, and that they are suppliers. In addition, some minerals are es- also more synchronized among the world’s in- 10 sential for certain industries with, at least for dustrialized nations. Other recent evidence the present, no very good substitutes, Often, suggests that stocks of copper held by U.S. in- these same minerals account for a very small dustry are smaller than they were 20 or 30 share of total production costs. These two fac- years ago, and are not being used to counter tors make for inelasticity of demand and favor swings in the business cycle as they once the success of cartel control of production and were, *l The same may be true of other min- prices, at least in the short run. erals. Another possible factor: U.S. copper mines and smelters seem to have suffered more There are several reasons why these condi- than a proportionate share of the loss in times tions have not been enough to create a mineral of low world demand in recent years, because cartel like the oil cartel. As noted earlier, the nationalized mines in some developing coun- total costs of U.S. nonfuel minerals imports, tries have been kept open to save jobs and pre- compared with oil imports, are small. Also, cious foreign exchange even when prices did most nonfuel minerals are far less bulky than not cover the costs of production. oil and therefore much easier to store. Min- erals-using industries generally keep a stock on Related to the surges and drastic drops in de- hand, and the U.S. Government (although not mand that are typical of minerals industries is European or Japanese governments) has a 1- lagging investment in mines and processing fa- to 3-year reserve of many critical materials to cilities. Inadequate investment while prices are meet national defense needs in an emergency,

‘3 Now owned by The Atlantic Richfield Co, Significantly, markets for most nonfuel min- @’Arco Unit to End Copper Mining in Butte, Mont.” Wall Street erals have been soft since mid-1974. And for Journal, Jan. 10, 1983; Jay Mathews, “U.S. Copper Industry, Beset many producer countries (e.g., Zaire, Zambia) by High Costs, Low Prices, Losing Out to Foreign Producers,” Washington Post, June 22, 1982, minerals exports are the mainstay of the econ- IODa~d Chjen, “Bwjness Cycles and Instability in Metal Mar- omy. Considering the state of the market, the kets,” Materials and Society 5(3), 1981, pp. 257-265. llTirnOthY J. GrUbb, “Metal Inventories, Speculation, and Sta- existence of government and private stocks, the bility in the U.S. Copper Industry, ” Materials and Society 5(3), existence of substitutes for many materials, the 1981, pp. 267-288, potential for development of substitutes for Ch. 4—Security of Supply ● 87 others, and the threat of new, alternate sup- change. OPEC itself has been under severe pliers to any cartel, these producers could not strain for several years as a result of these risk supply stoppages. Most importantly, pro- factors. ducer countries as diverse in ideology and Another point to consider is that monop- goals as Zimbabwe, South Africa, and the So- olistic control of the market for economic pur- viet Union might find it difficult indeed to co- poses does not necessarily imply shortages or operate in an OPEC-like organization that sets price leaps. Monopolies are certainly not un- production controls and prices. known in minerals history. Past examples in- Producers of copper and bauxite did take clude Canada’s Inco, formerly preeminent in steps to restrict supply and raise prices in 1974 world nickel production, and the Union Miniere and 1975. The copper effort, undertaken by of Belgium for cobalt in the days before Zaire’s members of the International Council of Cop- independence. In these instances, monopoly per Exporting Countries (CIPEC) was a failure, control resulted in rather reliable levels of The CIPEC agreement to reduce copper ex- production and prices that remained stable, al- ports by 15 percent had no effect on prices, though prices probably were higher than they Copper exporters thus turned to urging price would have been under competitive conditions. stabilization agreements, which require the consent of purchasing countries. These efforts, Political Embargoes and the Resource War made through the United Nations Conference on Trade and Development, also failed. As fears of cartel control over nonfuel minerals have faded somewhat, a new fear has More successful was Jamaica’s imposition of grown that the supply of critical materials may sharply higher taxes on bauxite. U.S. aluminum be choked off for political reasons. Govern- producers tolerated the higher price resulting ments, including that of the United States, re- from the tax because they had no alternative strict both imports and exports to serve politi- supplier as convenient as nearby Jamaica, and cal goals. From 1966 to the end of 1971, the the cost of bauxite is a small fraction of the cost United States cooperated with United Nations’ of finished aluminum. Nonetheless, during the sanctions against the former British colony of aluminum recession of 1974-76, Jamaican out- Rhodesia, refusing to buy Rhodesian chrome put of bauxite dropped 30 percent, while baux- because the colony resisted greater participa- ite production expanded in Australia, Guinea, tion by blacks in the government. The United and Brazil, none of which had imposed high States has also prohibited nickel and other im- taxes. ports from Cuba since the 1960s. Because producer countries in the develop- Now, some analysts believe that the Soviet ing world had little success in the 1970s in cre- Union is carrying out a grand, long-term strat- ating minerals cartels does not guarantee that egy to gain control of both Mideastern oil and cartels will never succeed, Arguing against suc- African minerals, and to threaten the West cess is the distinct lack of common goals among with the loss of these critical materials. They producing countries and the deterrence ex- believe that the Soviet invasion of Afghanistan, erted by stockpiles and substitutes. Arguing for Soviet influence and the presence of Cuban it, in the short run at least, is the fact that a troops in Angola and other African nations, few important minerals are produced in a very and the buildup of the Soviet navy are all pieces few countries, It is worth keeping in mind that of the strategy.12 In their view, “state domi- most minerals cartels in the past have fallen apart because consumers conserved or found substitutes, other suppliers got into production, IzSome publications expressing this view are Council on ECO- and cartel members were tempted to cheat, nomics and National Security, Strategic MineraIs: A Resource Crisis (Washington, DC: 1981); and World Affairs Council of Pitts- raising output or lowering prices in the attempt burgh, The Resource War in 3-D–Dependency, Diplomacy, De- to maintain their own income or foreign ex- fense (Pittsburgh: 1980). 88 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability nance," rather than commercial ownership, of Mideast than southern Africa. The Mideast is mineral resources in Third World countries nearby and has the oil that is the West’s gives the Soviet Union access to these minerals lifeblood. through political agreement, backed up by So- 13 The actual behavior of African nations with viet military power. Figure 4-1 shows the Marxist governments and strong ties to the So- mineral-rich part of Africa which has prompted viet Union so far has not resulted in efforts to the greatest concern about possible Soviet con- disrupt minerals supply to the West. All of trol of resources. them maintain economic relations with the A variation of the resource war argument is West. They are keenly aware of their need for that the traditional Soviet self-sufficiency in income and foreign exchange from minerals minerals is crumbling, and that the Soviet Un- exports. Angola, for example, even with its ion plans to rely on political and military domi- thousands of Cuban troops, protects Gulf Oil nation of Africa rather than on costly economic facilities and encourages further foreign invest- competition with Western nations to get the re- ment. Likewise, Zimbabwe is trying to expand sources it needs, Proponents of this idea point its minerals exports, and Mozambique has to Soviet and Eastern bloc purchases, begin- growing American investment. One contribu- ning in 1978, of chromium, cobalt, manganese, tor to a series of scholarly papers on the So- tantalum, titanium, and vanadium, together viet Union and the resource war, prepared for with halts or large cutbacks in exports of plati- the School of Advanced International Studies num, gold, and titanium.14 of the Johns Hopkins University, said: Other observers of this situation find the pic- The vocabulary of the resource war, when ture of a full-scale resource war unpersuasive.15 addressing Southern Africa, mentions possible While not discounting “the desire and ability Soviet desires; often it neglects to examine So- of the Soviet Union to create mischief for the viet abilities to realize their desires , . . Today, United States and its allies,”16 they see little evi- despite sizable military aid for the region from Moscow, probably all of the states harbor a dence so far that Soviet activities in Africa are healthy distrust of Soviet tactics and meth- part of a grand design to grab minerals for ods . . . Along with Soviet economic and polit- themselves and deny them to the West. If the ical failings, [the region’s] growing dependency Soviet Union wanted to mount a direct chal- upon Western economic institutions should lenge to the Weston resources, these observers preclude southern African states from becom- say, it would be far more likely to choose the ing Soviet clients .17 —.— lawilliam casey, Director, Central Intelligence Agency, Speech This analyst believes the danger from Soviet to U.S. Chamber of Commerce, Apr. 28, 1981, reprinted in Con- influence will be greatest if South Africa congressional Record, June 23, 1981, S6779. 14 Daniel 1, Fine, “Mineral Resource and Dependency Crisis: tinues its support of insurgent groups in neigh- Soviet Union and United States” in World Affairs Council of boring black African states, including non- Pittsburgh, The Resource War in 3-D, cited in note 12. For a more Marxist Zambia as well as Angola and Mozam- moderate view of increasing Soviet dependency on minerals imports, with no conclusions drawn as to the consequences for bique. The danger is that, to repel the insur- a “resource war, ” see Daniel S. Papp, “Soviet Non-Fuel Mineral gents, these nations might become increasingly Resources: Surplus or Scarcity?” paper prepared for the School dependent on Soviet military aid and might of Advanced International Studies (SAIS), The Johns Hopkins 18 University, May 1981. then be forced into a client-state relationship. IsSee for examp]e, Hans H. Landsberg, et al., “Nonfuel Min- erals, ” cited in note 2; and Robert Legvold, “The Strategic Im- Several observers report that they see little plications of the Soviet Union’s Nonfuel Minerals Policy”; Her- evidence of rapidly increasing Soviet depen- bert Howe, “The Soviet Union and Southern Africa: A dence on imports of strategic materials. They Patron-Client Relationship?” Michael Moodie, “The Soviet Navy: A Weapon in the ‘Resource War’?” Robert E. Osgood, “The Secu- believe that the recent Soviet buying forays for rity Implications of Dependence on Foreign Nonfuel Minerals, ” some minerals and the cessation of the sale of papers prepared for the SAIS, cited in note 14, 16Hans H. Landsberg, “Minerals in the Eighties: Issues and 17 Herbert Howe, “The Soviet Union and Southern Africa, ” Policies, An Exploratory Essay,” paper prepared for the Oak cited in note 15, pp. 2, 5. Ridge National Laboratory, Oak Ridge, TN, 1982. *eIbid., pp. 17-19. Ch. 4—Security of Supply ● 89

Figure 4-1 .—Selected Mineral Resources of Central and Southern Africa

GABON: Manganese

ZAIRE: Copper Cobalt Industrial diamonds

Chromium Copper

BOTSWANA: Industrial diamonds SOUTH AFRICA: Cobalt Chromium Nickel Manganese Platinum group metals Vanadium Industrial diamonds Nickel SOURCE ~ff!ce of Technology Assessment, based on U S Department of the Inter! or, Bureau of Mines data

38-844 0 - 85 - 4 : QL 3 90 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability others signify “the consequences of poor So- Civil Disturbances, Local Wars, Internal Troubles viet planning, shoddy maintenance of facilities, and low production efficiency, ” not an “emerg- Civil strife, insurrections, difficulties of man- ing minerals shortage that could lend a com- agement, and breakdowns in mine production mon rationale to these actions.”19 have, in the past, threatened the security of minerals supply from Africa. In many people’s Indeed, as the quality of Soviet ores declines, judgment, these are the kind of events most and as new minerals exploration moves north likely to cause interruptions of minerals im- and east into the forbidding Siberian environ- ports in the foreseeable future. ment, Soviet leaders may gradually abandon self-sufficiency as a top priority goal and may The supply of Zairian cobalt, never actually look to the outside world for cheaper, more cut off, has been threatened by insurrection convenient supplies of some minerals. But this and civil war in central and southern Africa. does not necessarily imply that they will resort Angola’s Benguela railway was the major route to strong-arm methods or a resource war to get between central Africa’s copper and cobalt those supplies. mines and the rest of the world until the civil war shut it down in 1975. Zaire and Zambia One Soviet specialist asks: “Even were the had to scramble to find other exit routes for Soviet Union shortly forced to import 5 to 10 their minerals, including through South Africa, percent of its lead, zinc, or titanium needs, and are still relying on these less satisfactory what in that circumstance would begin to routes, If the Angolan railway had shut down justify the risks of plundering Western sources 20 at a time of strong demand for minerals, the of supply?” Instead, he suggests, Soviet leaders interruption might well have driven up prices wishing to buy a greater share of minerals and disrupted markets, In fact, the 1978 inva- abroad would use the conservative commercial sion of Zaire’s Shaba province, with a brief oc- approach they already use in foreign trade, pos- cupation by the insurgents of the mines and sibly relying heavily on barter arrangements, processing facilities, had more serious conse- or on development aid in which they are repaid 21 quences for the world cobalt market, as de- in minerals. scribed later in this chapter. In sum, this school of thought holds that So- In the future, the state of domestic peace and viet actions affecting the price and availabil- stability in central and southern African na- ity of African minerals is a matter of seizing tions such as Zaire, Zambia, Zimbabwe, and opportunities rather than carrying out a stra- Gabon, will strongly affect minerals production tegic plan. They do agree, however, that the So- and export. Nor is South Africa exempt from viet Union will go on trying to gain political the possibility of trouble. It is unknown how power and influence in Africa by exploiting long South Africa can resist pressure for change tribal conflicts, strong anticolonial feelings, and a possibly difficult transition to a new form and the opposition of black majorities to the of government with black participation. Even rule of white minorities. Furthermore, they now, with white minority rule still firmly in agree that mineral imports to this country and place, the potential for disruption exists, as its allies from the richly endowed but troubled shown by the 1980 bombing of SASOL, South regions of central and southern Africa are def- Africa’s synthetic oil project. initely vulnerable. A general war would, of course, be more pro- foundly disruptive than any of the circum- —— leLandsberg, “Minerals in the Eighties, ” cited in note 16. See stances described here. This report does not also, William R. Severin, “Soviet Non-Fuel Minerals: Recent explicitly consider the contingency of general Trends and Prospects, ” prepared for the SAIS cited in note 14, war. However, as a part of preparedness, the and Legvold, cited in note 15. ZOLegvold, cited in note 15, p. 17. U.S. Government’s stockpile goals are set with ZIIbid., pp. 18-21 a 3-year conventional war in mind. Advanced Ch. 4—Security of Supply ● 97 technologies that reduce import vulnerability— fense in peace, but will not obviate the need the main focus of this report—are as valuable to fulfill stockpile goals as a means to assure to the national interest in wartime as they are adequate supplies in the event of war. protective of U.S. economy and national de-

Materials Supply Interruptions Since World War II

In the years since World War II, supplies of dia, and the Union of South Africa. These sub- several critical materials have actually been cut stitute supplies came from the expansion of al- off quite abruptly on a few occasions. It is in- ready producing mines. Enough capacity of structive to look at the reasons why the cutoffs this kind was available so that U.S. imports of occurred, how the economy and defense indus- manganese in 1949 actually increased 23 per- tries coped with shortages, and how the im- cent over 1948, despite the embargo, balance of supply and demand was eventually righted. Actual use of manganese dropped in 1949, a recession year, but demand remained strong because industries added 45 percent to their Soviet Embargo of Manganese and inventories, probably as insurance against any Chromium, 1949 possible shortages from the embargo. In fact, manganese prices rose about 15 percent in When the Soviet Union blockaded Berlin in 1949 (compared with 8 percent the year before) 1948, cutting the city’s land links with the West, despite the recession. At the same time, the the United States clamped down on exports of recession probably softened any additional industrial goods to the Soviet Union. Among damage the embargo might have caused. the goods embargoed were machinery, tools, trucks, and scientific instruments. In retalia- The U.S. Government, together with indus- tion, the Soviet Union cut off shipments to the try, swung into action to encourage the open- United States of raw materials critically needed ing of more manganese mines outside the So- by U.S. industry, mainly manganese, and chro- viet Union. India got steel from the United mium. 22 States to improve her rail system for transporting ore, Canada and the United States sent ore The loss could have been serious. The Soviets rail cars to South Africa, and the Gold Coast’s at that time were supplying one-third of U.S. railway and port equipment were improved. manganese consumption and one-quarter of With the help of loans from U.S. banks and the U.S. chromium. Soviet exports of manganese World Bank, South Africa improved railways ore to the United States dropped from 427,229 to mines and improved harbors for shipping tons in 1948 to 81,459 in 1949, and their chro- ore. India got a World Bank loan to build an mium ore exports dropped from 393,966 tons electric power project in the Damodar Valley, to 107,131 tons, In both cases, much of the ore where manganese and other minerals were was shipped early in the year, Within a few 23 produced. months of the embargo, however, the United States had made up the loss with supplies from The answer to the Soviet embargo of chro- other countries. mium was the same as for manganese: alternate suppliers, Turkey and the Philippines in- For manganese, substitute supplies came creased their chromium ore exports to the mainly from the Gold Coast (now Ghana), In- United States, and the Union of South Africa ZzContemporary accounts of the Soviet cutoff of manganese and chromium include Bureau of Mines’ publications; Business ZsThe President’s Materials Policy Commission, Resources for Week, Sept. 10, 1949, p. 125; and U.S. News and World Report, Freedom (Washington, DC: U.S. Government Printing Office, Dec. 16, 1949, p. 26. 1952), VO]. 1, p. 74, 92 Ž Strategic Materials: Technologies to Reduce U.S. Import Vulnerability remained a major supplier. At the same time, because of the recession, U.S. chromium consumption fell by nearly one-quarter. Chromium imports dropped as well, prices fell, and industries added 20 percent to their inventories, In the aftermath, the United States continued to diversify its suppliers of manganese and today buys none from the Soviet Union. The principal suppliers of manganese ore to the United States are South Africa, Gabon, Brazil, Australia, and Mexico. These countries are all large producers of manganese, and important suppliers in the world free market. While manganese ore producers are today quite diverse, the Soviet Union and South Africa together hold the great bulk of the world’s reserves (known deposits, commercially minable) and of its identified (but subeconomic) resources. As for chromium, U.S. imports from the So- viet Union resumed in the 1960s and for a time the Soviets were among the principal U.S. suppliers. That story is told next.

U.S. Embargo on Imports of Rhodesian Chromium, 1966-72 The British colony of Southern Rhodesia (now Zimbabwe) unilaterally declared its independence in November 1965, setting a course Photo credit” George C Coakley, US. Bureau of M!nes of continued white minority rule. The next An aerial tramway is one link of the transportation system year, the United Nations (U. N.) passed a reso- that carries manganese ore from mines in Gabon to lution prohibiting member nations from buy- deepwater ports on the West Coast of Africa ing any of a dozen export commodities from Rhodesia. On the embargoed list was chromium ore. lurgical grade of chromium ore was essential for making stainless steel. (In the last decade, Before the ban, Rhodesia was one of the big as mentioned above, technological advances four suppliers of chromium ore to the United have blurred the distinction between the metal- States, second to South Africa and ahead of the lurgical and chemical grades of chromium ore Philippines and the Soviet Union.24 Together, in stainless steel production.) these four countries contributed five-sixths of chromium ore imported by the United States, When the United States complied with the Rhodesia and the Soviet Union each supplied U.N. ban on buying Rhodesian chromium, the about 35 percent of this country’s imports of Nation could have felt a real shock. Nothing high-grade metallurgical ore, and South Africa so dramatic happened. First, the shock was supplied 17 percent. At that time, the metal- cushioned by large sales from the U.S. Govern- ment stockpile. A long-range plan to rid the government stockpile of 1.9 million tons of %onternporary accounts of the Khodesian chromium embargo include Bureau of Mines’ reports and Business Week, NovF. 27, ‘‘excess” metallurgical grade chromium ore 1971, p. 23. had already been authorized before the man- .—

Ch. 4—Security of Supply Ž 93

datory ban on Rhodesian chromium took ef- ing American steelmaker to pay higher prices fect. In late 1966 and 1967, industry contracted for chromium than their European and Japa- to buy 666,000 tons of this stockpiled ore for nese competitors had to pay, Another theme future delivery. Deliveries of high-grade ore in the protest was that the sanctions against from the stockpile amounted to 66,237 tons in Rhodesia had caused the United States to be- 1966 and 62,980 tons in 1967, These quantities come dangerously dependent on Soviet chro- compare with Rhodesian imports of 144,000 mium. Imports of Soviet metallurgical-grade tons of metallurgical grade ore in 1966, before ore had risen from 35 percent of total imports the embargo took effect. Large amounts of of that grade to 58 percent in 1970. (For total lower grade chromium ore were also available imports of chromium ore, of all grades, the So- from the stockpile, but found no industry viet share amounted to 29 percent in 1970, up takers. from 16 percent before the embargo.) Other factors also eased the effects of the ban The national defense argument was perhaps on Rhodesian imports. Chromium-using indus- less telling than the economic one, because the tries had built up their stocks during 1966, U.S. Government still held large stockpiles of when storm warnings from Rhodesia were chromium ore, including the metallurgical apparent. Furthermore, deliveries of Rhodesian grade, Moreover, a number of new suppliers ore already purchased tailed off gradually over had entered the market as chromium prices 1967, rose. Iran and Pakistan, as well as Turkey, be- At the same time, U.S. imports of metallur- came important alternate suppliers to the gical-grade chromium ore from the Soviet United States. Other countries raised produc- Union—and a year or two later from Turkey— tion too. South Africa became the world’s began to increase, So did prices. For its excep- second largest chromium producer after the tionally high-grade ore, the Soviet Union re- Soviet Union; and the Philippines, Turkey, Al- peatedly raised prices, from around $32 per ton bania, India, Finland, and the Malagasy Repub- in 1966 to about $70 per ton in 1971, The price lic (now Madagascar) all gained importance in of Turkish high-grade ore rose comparably. the world market. Steelmaker throughout the industrialized In November 1971, Congress passed legisla- world were competing for the more limited tion removing the President’s authority to ban supplies of metallurgical-grade chromium ore the import of strategic or critical materials available on the world market, and the sup- from a non-Communist country. This ended pliers took full advantage. U.S. participation in the U.N. sanction. Dur- Nonetheless, it appeared that the ban on Rho- ing the next year, prices of Soviet and Turk- desian ore was being evaded. News accounts ish ore dropped 15 percent, rising only grad- in 1971 reported that Rhodesian mines were ually with inflation over the next few years. going full blast and that chromium ore from The position of the Soviet Union as a chro- Rhodesia was finding ways out despite the mium supplier to the United States rapidly de- U.N. sanctions. France, Japan, and Switzer- clined, from 40 percent of chromium ore im- land, in particular, were accused of buying the ports in 1972 (the peak year) to 12 percent in Rhodesian high-grade ore under the guise of 1981. But the reasons were more complex than shipments from South Africa and Mozambique simply the end of sanctions against Rhodesia. and of paying lower prices than for Russian Changes in the steelmaking industry were and Turkish ore. There were suggestions, probably at least as important. though no certain confirmation, that the So- As technology advanced through adoption of viets were buying Rhodesian ore and reselling the argon-oxygen-decarburization (AOD) proc- it at premium prices. ess, making it possible to use the chemical Members of Congress and the steel industry grade of chromium ore for making stainless angrily protested that the embargo was forc- steel, the Soviet high-grade ores were no longer 94 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

at a premium. By 1981, metallurgical-grade Within a year, prices and supplies were back ores amounted to only 17 percent of chromium to normal.25 ore imports to the United States, compared to The reasons for the acute effects of the cut- 50 percent or more 10 years earlier. Another off of Canadian nickel supply were twofold: change is that U.S. imports of chromium ore first, Canada’s commanding position as a pro- are giving way to imports of ferrochromium, ducer and exporter of nickel, especially to the just as ferromanganese is displacing manga- United States; and second, tight supplies of nese ore. South Africa led in changing its ex- nickel worldwide before the strike. In 1968 ports to the United States from chromium ore Canada supplied half the nickel for the non- to ferrochromium alloys. Also, all of recent Communist world, and was overwhelmingly U.S. imports of chromium from Zimbabwe the largest supplier of U.S. nickel imports, con- have been in the form of ferrochromium. As tributing over 90 percent. Imports were then U.S. demand for raw chromium ore declined— 90 percent or more of U.S. nickel consumption. particularly for the high-grade ore that was a In addition, world demand for nickel had Russian specialty—the Soviet Union no longer grown steadily from 1966 through 1969, while commanded preferential buying by American supplies lagged behind. The industrialized purchasers. countries, increasingly prosperous, were de- Today, South Africa is the United States’ manding more nickel for stainless steel, alloys dominant supplier, contributing 55 to 60 perfor jet engines and space hardware, long-life cent of all U.S. chromium imports (including batteries, and dozens of uses requiring hard, alloys as well as ore). The Soviet portion (of al- strong, corrosion- and heat-resistant materials. loys plus ore) was 8 percent in 1981, with the Furthermore, the United States increased its Philippines supplying a like amount. Other sub- nickel demands to satisfy military needs, In stantial suppliers are Yugoslavia, Zimbabwe, several countries, especially New Caledonia Finland, Turkey, and Brazil. and Australia, mining companies were digging new mines and building new processing plants, Canadian Nickel Strike, 1969 but world production was only beginning to rise. There was practically no slack. Strikes in Canada’s nickel mines in 1969 had a brief but jolting effect on nickel-using indus- The big International Nickel Co. (Inco) mines tries in the United States and Great Britain. Un- in the Sudbury district of Ontario were struck like the politically inspired embargoes de- in July 1969, and a month later strikes closed scribed above, the 4-month strike at Canadian the mines of Canada’s second largest producer, nickel mines caused actual shortages and acute Falconbridge Nickel Mines Ltd. Immediately, price hikes. Yet military and essential civilian prices on the dealer market (as opposed to pro- production were never interrupted in the United ducer prices charged by the mining companies] States, which was then at war in Vietnam. At soared, rising from Inco’s producer price of the height of the shortage, scrap nickel was the $1.03 per pound to $7 and even $9 per pound. main substitute for Canadian supplies, supple- Nonessential industrial users without a ready mented by larger nickel imports from Norway substitute for nickel suffered real hardship. In and the Soviet Union and ferronickel from particular, small electroplating companies New Caledonia (a French Territory in the Pa- using nickel for trim had to scramble for ma- cific) and Greece. A month after the strike was over, a large release of nickel from the govern- ZsContemporary accounts of the nickel shortage include Bu- reau of Mines’ reports; Business Week, Oct. 25, 1969, pp. 42-44; ment’s stockpile helped refill the pipelines, Anthony F. W. Liversidge, “The Beguiling New Economics of while Canadian production geared up again. Nickel,” Fortune, Mar. 1970, pp. Iooff. .-

Ch. 4–Security of Supply ● 95

terial and pay the high prices or stop produc- makers offered chrome-manganese stainless ing. Cobalt is an adequate substitute for nickel steel instead of nickel-bearing stainless steel, in electroplating, but usually sells at twice the The manganese stainless steel technology was price. During the shortage it was hard to find already on the shelf. Steelmaker had devel- because most cobalt was sold by producers oped it in response to fears of nickel shortages under contract to their regular customers. that arose in World War II and the Korean War; another motive was to have a substitute on Nickel-using industries that were able to use hand in case nickel prices rose prohibitively. substitutes did so. For example, phosphor The shift to high-manganese stainless steel did bronze was used in place of 12 percent nickel not last past the nickel shortage, partly because for electric powerplant hardware, and steel- nickel stainless steel has some superior prop- 96 Ž Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

erties (greater corrosion resistance) and partly be the source of three-quarters of the high- because, at the time, the process of making priced dealer market nickel sold during the high-manganese stainless steel was exacting shortage. and hard to control.26 The blow to the United States from the drop The British, also 90 percent dependent on in Canadian imports was also softened by a Canada for nickel, suffered shortages at least large increase in ferronickel imports (from as severe as those in the United States. Look- about 9,500 to 15,700 tons). Most of this came ing back in 1982, spokesmen for the British In- from Greece and New Caledonia. New Cale- stitute of Geological Sciences called the 1969 donia had a growing nickel minerals industry nickel shortage “perhaps the gravest metal cri- based on laterite ores. sis in the United Kingdom since the Second 27 Altogether, with additional imports from World War.” British steelmaker, like their other countries and with the rapid rise in recy- American counterparts, offered customers a cling, consumption of nickel in the United variety of steels in place of nickel steel. States dropped only 5 percent from 1960 to Use of scrap nickel jumped 64 percent in the 1969, down from 173,700 tons to 165,400. How- United States during 1969. Of the 23,300-ton ever, it must be remembered that supplies had drop from the previous year in Canadian im- been tight since 1966. A better indication of the ports, recycled nickel made up more than 9,000 degree of shortage might be the U.S. consump- tons. Everyone scrounged for scrap. Even new tion of primary and scrap nickel in 1970, which nickel products lying idle in inventories, such was 182,500 tons. as pipes and fittings, were sometimes melted Throughout the shortage, defense industries down for reuse. Some desperate electroplates continued to get nickel supplies. Three years collected ferronickel scrap and swapped it for before the strike, with nickel already in short pure nickel, trading with foundries which had supply, the government ordered the three prin- assured allocations from producers. z* cipal U.S. nickel importers to set-aside 25 per- As Canada’s production slid nearly 20 percent of their shipments for defense-related cent from its 1968 level, several countries orders. The set-aside was continued after the stepped up their nickel production, with New strike, with the proviso that defense industries Caledonia, Australia, the Soviet Union, South must use these supplies for current production, Africa, and Rhodesia the leaders. The main not for hoarding in inventories. Also, the gov- substitute suppliers for the United States were ernment embargoed nickel exports. Most im- Norway, which sold us 1,700 tons of nickel portantly, President Nixon directed the release processed from ore obtained earlier from Can- of 10,000 tons of nickel from the government ada, and the Soviet Union, which continued stockpile at the end of 1969. The strikes were its expansion of nickel mining and increased over in November, but by this time the nickel exports to the United States by 700 tons. The supply pipeline was depleted, Without the Soviets also supplied additional nickel to hard- stockpile release, shortages might have con- pressed Britain. The Soviets were reported to tinued for several months. By the end of January 1970, U.S. civilian as z6To eliminate nickel completely in high-manganese stainless well as defense industries had all the nickel steel, nitrogen must be added as an alloying element. With the they needed. In fact, with rapidly rising technology in use in 1969, it was difficult to add controlled production in several countries, nickel short- amounts of nitrogen, Today, the argon-oxygen-decarburization (AOD) process is used almost universally in stainless steelmak- ages disappeared entirely in 1970. Dealer mar- ing, and with this process it is easy to add controlled amounts ket prices plunged from over $6 per pound at of nitrogen. ZTInstitute of Geological Sciences, Strategic Minerals, memo- the first of the year to $1.33, the same as the randum submitted to the Parliament, House of Lords, Select producer price, at the end. Committee on the European Communities (Subcommittee F), Feb. 18, 1982. A lasting effect of the 4-year period of tight ~8Liversidge, op. cit., p. 100. supplies in the late 1960s was to encourage .—. -—.

Ch. 4—Security of Supply ● 97 more nickel production and greatly expand the Cobalt is a specialty metal, produced in small number of suppliers. In the classic mode of the quantities (only about 27,650 tons worldwide minerals industries, demand for nickel dropped in 1982),30 but has a number of specialized uses off in the late 1970s, and some of the new ca- for which it is highly suited, or even irreplace- pacity lay idle. Nearly half of Canada’s minable, at current levels of technology. Cobalt is ing capacity was unused in 1978, and New critical for making certain high-strength, heat- Caledonia, another big producer, had only resistant superalloy used in jet engines, and about 60 percent of its mines in production. has highly desirable properties as a material for permanent magnets, wear-resistant tools, The world’s reserves and identified resources and catalysts for refining oil and making pe- of nickel are not nearly so concentrated as trochemicals. those of chromium and manganese. Some of the Pacific islands (New Caledonia, parts of In- The threat of interruption of world cobalt donesia) appear to be very well endowed, and supply surfaced in 1975 when the civil war in there are also large deposits remaining in Angola shut down that country’s Benguela rail- North America, the Soviet Union, Cuba, and way. The Angolan railway had been the ma- Australia. Thus, the present diversity of jor artery for transporting copper, cobalt, and producers can be expected to last for many other minerals out of central Africa to the in- years. dustrialized world. Central African cobalt is pivotal. In a typical year, Zaire accounts for The Cobalt Panic, 1978-79 60 percent of cobalt production in the non- Communist world; Zambia, usually the second During the cobalt “shortage” of 1978-79, largest free world producer, contributes 10 to there was never any real interruption of sup- 15 percent. Thus, if cobalt cannot get out of ply. On the contrary, production in Zaire and Zaire and Zambia, world supply is in trouble. Zambia—by far the largest cobalt producers for This situation of extreme world dependence on the world market—rose 43 percent during 1978 central African cobalt is aggravated by the fact 29 and 12 percent in 1979. But the combination that cobalt is a byproduct of mining for other of rapidly rising world demand and fears of a higher volume minerals, mainly copper and supply cutoff, triggered by a rebel invasion of nickel. In case of a supply cutoff in central Zaire’s mining country, set off a wave of buy- Africa, it might be uneconomical in the short ing that sent cobalt prices through the roof. Co- run, at least, for producers in other parts of the balt users turned to cheaper substitutes and world to expand cobalt mining as such. recycling wherever they could, relieving some of the pressure. By 1982, with worldwide reces- Because the Angolan railway shutdown of sion, cobalt prices plunged below the 1978 1975 occurred during a world business reces- price. sion, with demand low and industry stocks fairly high, Zaire and Zambia were able to find alternate routes for shipping metals from their mines without causing immediate distress. As Zgun]ess otherwise noted, data on cobalt production, consumption, uses, recycling, and prices in this section are drawn from of mid-1984, the Benguela railway was still Charles Ri\er Associates, Inc., Effects of the 1978 Katcmgese Re- closed because of guerrilla attacks (related to bellion on the V$’orld Cobalt Market, final report to the Office of civil war in neighboring Angola and Namibia), Technology Asiessrnent, December 1982. The data in the Charles Ri\er Associates’ report are largely based on 13ureau of Mines’ and the makeshift exit routes were still being figures, but with some adjustments. The account of events in used. They are not very dependable. One alter- Zaire and Zambia from 1975 on and of the cobalt panic of 1978 nate route to the port of Beira in Mozambique is also largely drawn from the Charles River Associates’ report. Other sources were Bureau of Mines’ publications, officials of was closed when Mozambique shut its border the Amax Mining Co., and Patti S. Litman, “The Impact of to what was then white-ruled Rhodesia. (Now Minerals Scarcity on Technological Innovation: Cobalt, A Case that Zimbabwe has a largely black, elected gov- Study,” an unpublished M.S. thesis presented to the Sever institute of Technology, Washington University, St. Louis, MO, —.. ——— 1981. sOThe figure cited is from Bureau of Mines’ data. 98 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability ernment, negotiations may reopen this route, up unsalable inventories of cobalt. In 1977, a although it too has been subjected to guerrilla brief invasion of Zaire by insurgents based in attacks.) Meanwhile Zaire and Zambia ship neighboring Angola caused some concern for their minerals out through the inadequate, cobalt supply because Zaire’s copper mines, backed-up port of Dares Salaam in Tanzania, from which cobalt is a byproduct, are in the or take a long, expensive route through Zam- southern Shaba province where the invasion bia, Zimbabwe, and South Africa. Zaire uses took place. The rebels were emigres who had its own western port of Matadi at the mouth fled Zaire after losing a bid in the 1960s to cre- of the Zaire River for some copper and cobalt ate an independent state of Katanga in Shaba shipments, but getting there requires arduous province. The invaders were quickly routed. transshipment by rail and river, and the river The incident had no effect on cobalt produc- is not always navigable. Figure 4-2 shows the tion or prices, routes and location of ports. In 1978, the situation was different. With With economic recovery in 1976 and 1977, world business activity on the upswing, and U.S. and world demand for cobalt rose mod- the market for new jet planes particularly erately, but not enough to cause real pressure strong, demand for cobalt began to heat up rap- on prices. In fact, Zaire was stockpiling cobalt idly. Unable to expand production as fast as hydroxide, an intermediate material produced demand was climbing, Zaire announced in in the processing of copper, to avoid building April 1978 an allocation scheme by which cus-

Figure 4-2.—Transportation Routes for Minerals in Central and Southern Africa

SOURCE: U.S. Department of the Interior, Bureau of Mines, Mineral Perspective: Zimbabwe, 1981 Ch. 4–Security of Supply ● 99 tomers would be limited to 70 percent of their The typically slow response by the minerals purchases of the previous year. industries to a surge in demand was aggravated in the case of cobalt because it is usually a by- Aggravating the tight world supply was a re- product, Nonetheless, producers responded to cent turnabout in U.S. policy for stockpiling the cobalt price spike, as shown in table 4-2. cobalt. For 8 years, until 1976, the U.S. Gov- Zaire raised output by producing from its ernment sold 6 million to 9 million pounds of stockpiles of cobalt hydroxide. Zambia opened cobalt each year from its strategic stockpile be- a new refinery that was already under con- cause holdings in the stockpile were far above struction, improved cobalt yields, and pushed what was then the official goal of 11 million ahead with plans for new mines and refiner- pounds. During the years of the stockpile sales, ies, Zaire and Zambia accounted for most of these sales amounted to as much as one-half the added cobalt production in 1978 and 1979, of U.S. cobalt consumption and 10 percent of but small increases occurred elsewhere. Two consumption in the non-Communist world. Canadian nickel companies added capacity to In 1976, after the Angola civil war cut the their cobalt refineries, and others made plans Benguelan railway, U.S. stockpile sales of co- to recover cobalt from nickel slag. Recently balt came to a halt. With cobalt holdings then opened nickel-cobalt mines in Australia and down to about 40 million pounds, the govern- the Philippines raised their output as they ment set a new stockpile goal of 85 million solved technical problems and responded to pounds. Overnight, the United States went demand. from being a major supplier of the world’s co- The more remarkable response to high prices balt to a potential major purchaser. Zaire, Zam- and tight supplies came from the industries bia, and other cobalt-producing countries were that consume cobalt. A switch to substitutes unprepared for the change and had not geared or recycled materials swept some industries. up to higher production levels. But it was not By 1980, use of cobalt in the United States was until demand suddenly boomed in 1978 that the estimated to be 19 percent below what it would loss of U.S. stockpile sales began to pinch. 31 have been without the price rise. Demand for Shortly after Zaire announced its allocation cobalt continued to drop in 1981, partly be- scheme, insurgents from Angola reinvaded cause of the weak economy and high interest Shaba province. This time they succeeded in rates. Consumption in 1981 was 11.7 million taking the mining headquarters town of Kolwezi, pounds—41 percent below the 1978 high of 20 but after 2 weeks they were once again driven million pounds. According to another informed out. The only damage done to mining facilities estimate, 1981 consumption would probably was the flooding of one mine. But the publicity have been 13 million to 15 million pounds if surrounding the invasion, the reported killing there had never been a “shortage.”32 Figure 4- of 130 foreign workers, and the subsequent 3 depicts this estimate of the effect of the price flight of several hundred skilled mineworkers rise in U.S. cobalt demand. and professionals raised the alarm about con- Where effective substitutes were ready on the tinued availability of cobalt. Around the world, shelf, the decline in cobalt use was steep. As industries tried to stock up, buying all the co- table 4-3 shows, cobalt use in permanent mag- balt they could find. nets dropped by one-half in 3 years. Probably Prices skyrocketed from $6.85 per pound (the four-fifths of this reduction was due to the price producer price) in February to $47.50 per pound spike. ’s Before the shortage, permanent mag- (dealer market spot price) in October. The producer price reached $25 per pound in early SICongressiona] Budget Office, CobaJt; POLC}F OPfjons fo~ (I %u- 1979. With this kind of demand and at these tegic h4ineraJ (Washington, IX: U.S. Government Printing Of- fice, 1982), p. x. prices, Zambia airlifted its cobalt out, and Zaire Szchar]es River Associates, Jnc., op. cit., p.1-6. also sent some out by air. asIbid., p. 3-I 2. 100 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

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OJ z I 0

I I

m N Ui ...... , ...... ,...... ,...... —. . .

Ch. 4—Security of Supply ● 101

Figure 4-3.— Estimated Price Effects on short run to substitute other materials for co- U.S. Cobalt Demand balt superalloys in gas turbines for jet engines. Only after the most exacting, expensive qualification program can new alloys be used in jet engines. In some cases, however, different alloys had already been tested, and were adopted. For stationary gas turbines (e.g., for electrical power and pumping engines) the requirements are not so stringent, and some manufacturers were able to use other alloys for turbine parts. These substitutions, adopted over 3 years, probably saved about 10 percent of the cobalt that would otherwise have been used for superalloy, and the changes were probably perma- 34 — Reported demand nent. --- Adjusted demand Another leading use of cobalt in the United I I I I I I I I States is for hardfacing material, which, welded 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 to a base material, provides a layer resistant Years to corrosion and wear (e. g., in engine valves, SOURCE Charles River Associates, Inc , Effects of the 1978 Katangese F?ebe///on chainsaws, and earth-moving equipment). Some on the World Cobalt Market, report prepared for the Off Ice of Technol. o9Y Assessment December 1982 users of cobalt for hardfacing switched to nickel alloys. In Europe, where cobalt is used much more extensively in tool steels than it is nets for such items as television, radio, and here, users changed to cobalt-free tool steels. phonograph loudspeakers, telephone receivers Consumption of cobalt for driers of inks and and ringers, electrical meters, and automobile paints dropped 10 to 30 percent as users switched speedometers were an important use of cobalt, to manganese and zirconium as partial substi- accounting for 20 percent of U.S. consumption. tutes for cobalt. Substitutions for cobalt as a By the end of 1979, ceramic magnets had re- binder for carbide cutting materials were not placed 70 percent of cobalt-bearing Alnico very successful, but recent technological ad- magnets in loudspeakers. Moreover, the Bell vances had made recycling more feasible, and system announced in 1979 that it was chang- these users did recycle. No replacements were ing to alloys with lower cobalt content for immediately available in the short run for co- telephone equipment, with savings of 100,000 balt catalysts, although nickel-molybdenum pounds of cobalt per year. Much of the change catalysts may eventually displace some cobalt in material for magnets is probably irrevers- consumption for catalysts in the future. 35 ible. Ferrite (ceramic) magnets are cheaper than cobalt, and now that the redesigning and Recycling rose dramatically during the co- retooling for the change has been done, there balt shortage. Everyone in the superalloy pipe- is little reason to change back. line, from alloy producer to gas turbine manufacturer, began to recycle cobalt. This meant On the other hand, demand for cobalt for carefully segregating scrap by alloy specifica- superalloys in jet engines did not decline at all. tion, sending it back to the alloy melter and re- Despite the high prices, superalloy demand using it in the same grade. Possibly 10 to 25 continued to rise for 2 years until dampened percent of cobalt used in superalloys was re- by the recession in 1981. The boom in aero- cycled in this fashion. At the same time, meth- space had led the 1978 surge in demand for co- ods for recycling all the materials in cemented balt, and jet engine manufacturers led the scramble for supplies when fears of a shortage 341bid,, pp. I-4 and 3-10. rose. These manufacturers could do little in the aSIbid., p. 1-6. 102 • Strategic Materials: Technologies to Reduce U.S. Import Vulnerability carbide cutting materials (including cobalt) had The cobalt bubble burst in 1981. World pro- just been brought to a state of economic feasi- duction, spurred by high prices, continued to bility. Methods widely adopted in 1978-79 con- rise for the third year in a row in 1980. But with tinue to be used. It is estimated that most the 1981 recession, world cobalt demand fell “new” carbide scrap (recovered from fabrica- drastically; in the United States, consumption tors) is now recycled, and more old scrap (re- dropped 24 percent. The producer price, pegged covered from used products) is reused.36 at $25 per pound in January 1981, was cut to $12.50 per pound in early 1982. Meanwhile, Altogether, according to Bureau of Mines’ Zaire had contracted to sell the U.S. Govern- data, recycling of cobalt increased 100 percent ment 5.2 million pounds of cobalt, for replenish- in the year 1978, and quickly rose from 4 per- ment of the stockpile, at $15 per pound. Six- cent of consumption in 1977 to nearly 11 per- teen other producers had vied with Zaire to cent in 1980, before tapering off to the 1982 supply the government’s stockpile purchases. level of about 8 percent. These figures under- By the end of 1982, the dealer market price state the real extent of recycling, because they sank below $5 per pound—considerably below are limited to scrap that is purchased, and not the price in 1978 when the boom began. Co- all recycling is reported. balt prices stayed in the $5 to $6 per pound The U.S. Government never released cobalt level until early 1984, when the producer price from its stockpile throughout the period of high was increased to $11 to $12 per pound. prices and tight supplies, since defense and es- A modicum of diversity had entered the mar- sential civilian industries were getting what ket between 1978 and 1982. A number of sup- they needed and the stockpile, by law, can be pliers with new or expanded operations now used only to aid these industries during a stand ready to compete with Zaire. The bulk national emergency. Cobalt-using industries of world cobalt reserves are still in Zaire and added to their stocks during the 1978 panic and Zambia, but Cuba, the Soviet Union, the Philip- began drawing them down the next year. pines, New Caledonia, and Australia all hold important reserves that are currently known and economic to mine. The United States also —.——— has substantial resources that are not now prof- t61bid., pp. 3-14 to 3-16. itable to mine without a production subsidy.

The Effects of Supply interruptions

These accounts of the few instances when turn was a response to the Soviet blockade of U.S. imports of critically needed materials have Berlin. The Rhodesian chromium embargo in actually been interrupted or threatened are in- 1966, also political, was imposed by the United teresting in their variety. The causes of inter- States in conformance with a United Nations ruption were different in each case, and the resolution. The nickel strike of 1969 shut down coping reactions, both by industry and by gov- supplies from the quintessentially “safe” for- ernment, were varied enough to illustrate a eign source—Canada—at a time when world wide gamut of responses to abrupt deprivation nickel supplies had already been straightened of supply. for 3 years and Canada was then almost the sole U.S. supplier. The cobalt shortage of 1978- The Soviet cutoff of manganese and chro- 79 was a superheated case of a world surge in mium exports in 1949 was a Cold War politi- demand, combined with the abrupt removal of cal action, a response to the U.S. clampdown an important source of world supply (sales on export of manufactured goods, which in from the U.S. stockpile), which was aggravated Ch. 4—Security of Supply ● 103 by fears of insurrection and collapse of Zaire’s ment’s release of a large quantity of nickel from mines (which never happened). the stockpile. The government had also responded to 3 years of tight nickel supplies by The response in the first two cases was, es- allocating what was needed to military users, sentially, to find other foreign sources of sup- and the set-asides were continued during the ply, After the 1949 Soviet embargo, the U.S. acute shortage. Government actively sought alternate suppliers, offering loans for mine development, As for the cobalt “shortage,” users turned sending rail cars and providing steel for im- very quickly to substitutions and recycling, Un- proved transportation. With the Rhodesian der the spur of high prices, nonessential uses chromium embargo of 1966, the government made way for essential, Government allocation sold excess chromium from the national stock- was not needed to reserve cobalt for superal- pile, but otherwise took little active part, leav- loys for military jet engines. Superalloy ing industry to find alternate suppliers. That producers and users paid high prices and they industry was able to do so quite readily, with recycled, while use of cobalt in magnets dropped little evidence of shortage, was due to several by half. Ceramic magnets, for which the tech- factors besides the stockpile sales: The Soviets nology was ready, were substituted. promptly volunteered to serve as alternate suppliers of chromium to the United States (despite In all four cases, a long-lasting effect of the the Vietnam war which they opposed) and the supply interruption was that new producers United States was willing, for a time, to buy entered the market, and supply became more from them. Prices rose, drawing other sup- diversified. In the case of manganese, the U.S. pliers like Turkey and the Philippines into Government and the World Bank deliberately production. The rapid adoption of the argon- encouraged new producers. In the other cases, oxygen-decarburization (AOD) process in stain- shortages, rising prices, and eager buyers pro- less steel production allowed the substitution vided enough market incentive to draw new of South African chromium ore for Rhodesian sources into production, Some substitutions ore. Finally, the Rhodesian embargo leaked, If (ceramic magnets) and some recycling (carbide France, Japan, Switzerland, and others had not cutting materials) adopted during the shortages bought what was probably Rhodesian chro- appear to be permanent. mium from South Africa and Mozambique, the alternate suppliers might have been hard put Another conclusion is worth noting: There to provide the whole industrialized world with is no one single answer to import vulnerabil- chromium. ity. In the episodes described above, multiple The acute shortage of nickel that followed the responses —some by government and some by Canadian strikes necessitated changed behav- industry—helped avoid a crisis or end short- ior from U.S. nickel users, They substituted ages. On the government’s part, there were ac- other materials where they could, for example, tive assistance to alternative suppliers, stock- replacing nickel stainless steel with chrome- pile sales, and allocations to defense needs. On manganese stainless steel (a technology that al- the private side, there were substitutions of ready existed). Users turned to nickel recycled materials (based on previous research and de- from scrap, and they paid high prices for “gray velopment [R&D]), recycling (also based in part market” nickel—once more supplied largely by on previous R&D), and a search for new sources the Soviets, despite the continuing Vietnam of supply. In some cases, government and pri- war. (In both the Rhodesian chromium and vate actions were not so helpful—in fact, they Canadian nickel episodes, it will be noted the were contributing causes, not solutions to the Soviets behaved much more like enterprising problems. The obvious example is the govern- capitalists than like ideological resource war- ment’s abrupt halt to sales of cobalt from the riors.) An important factor in stopping the stockpile, and industry’s panic buying of cobalt acute nickel shortage was the U.S. Govern- after the invasion of Zaire’s Shaba province. 104 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

One response to import vulnerability that has During the cobalt panic, subsidies for U.S. rarely been used, except when begun in war- cobalt production were considered by Con- time, is government subsidies to high-cost do- gress.38 U.S. cobalt resources are considerably mestic minerals producers. During the Korean better than chromium resources, though they war, which began just a year after the 1949 So- are still subeconomic. At congressional hear- viet embargo of chromium and manganese, the ings in 1981, representatives of firms owning government subsidized U.S. production of a the most promising domestic sites estimated number of minerals, including the two embar- that cobalt prices ranging from $20 to $25 per goed by the Soviets and cobalt. The last of the pound would be needed to stimulate domestic subsidies expired in the early 1960s. No one production through government purchase con- seriously suggested reviving subsidies for do- tracts. Before any subsidies were decided on, mestic producers of chromium in the late the cobalt bubble had burst. By the end of 1982, 1960s, when U.S. imports of Soviet chromium the world cobalt price of $6 per pound (or less) were once again rising following the Rhode- was far below the estimated cost of producing sian embargo. The reason was the low-quality U.S. cobalt. World prices have subsequently and limited supplies of domestic chromium ore risen again (to $11 to $12 per pound in 1984), and the high cost of producing it. Then, as now, and one company has revised downward its even the best deposits of U.S. chromium would estimate of the price needed for it to produce probably have cost two to three times as much cobalt to about $16 per pound. Further discus- as chromium mined abroad, with less favora- sion of subsidies for U.S. minerals production, ble U.S. deposits still more costly.37 in the context of broader materials policy, appears in the following section, as well as in sTInformation provided by John Morgan, Bureau of Mines, U.S. chapters 5 and 8. Department of the Interior. See also C.C. Hawley & Associates, Inc., subcontractor to Charles River Associates, Strategic Mineral Markets and Alaska Development Potentials, Policy Analysis Pa- SBU. S. Congress, Senate Committee on Banking, Housing, and per No. 82-12, prepared for the State of Alaska, Office of the Urban Affairs, Hearing on the Defense Production Act and the Governor, Division of Policy Development and Planning (Juneau: Domestic Production of Cobalt, 97th Cong,, 1st sess., Oct. 26, 1982), vol. II, p. 1. This study estimated that the world chromium 1981 (Washington, DC: U.S. Government Printing Office, 1982); price would have to rise sixfold to stimulate production from Congressional Budget Office, Cobalt: Policy Options for a Stro- known deposits in Alaska. tegic Mineral, cited in note 31.

Materials Policy

Over the past three decades, as episodes of tions. A policy of self-sufficiency was consid- tight supplies and high prices have come and ered and rejected, most emphatically by the gone, concern about a national materials pol- Paley Commission in 1952, and again quite ex- icy has risen and ebbed. Three major commis- plicitly by the Commission on Supplies and sion studies, many other scientific and policy Shortages in 1976. studies, three Federal laws stating materials policy, and several other relevant laws have ad- On the whole, the commissions’ counsel in dressed the question of how to assure a relia- favor of interdependence has been heeded. The United States has, by and large, adhered to the ble supply, at reasonably stable prices, of the “least cost” principle for materials supply for materials needed for this Nation’s economy 35 years, The government has not only toler- and defense, ated, but encouraged, US. consumption of All of the commissions recommended that minerals produced abroad. With low-cost the Nation seek materials wherever they may loans, tax credits for taxes paid to foreign coun- be found, at the lowest cost consistent with na- tries, and insurance against expropriation, it tional security and the welfare of friendly na- has helped U, S.-based firms to open mines in Ch. 4—Security of Supply Ž 105 foreign countries, such as Australia, Brazil, and policy and congressional actions on materials Peru. It has usually resisted proposals to pro- during the period. tect the domestic mining industry by import quotas or other restrictions on trade and has Self-Sufficiency v. Interdependence subsidized domestic mining only rather briefly, Many of those who believe that self-suffi- For security of supply, U.S. policy has been ciency is desirable subscribe to a broad-scale to rely mainly on stockpiles rather than on per- remedy of materials independence. They favor manent subsidies of domestic production— intensive exploration of most of the federally again, a course which was urged by the com- owned public lands, including wilderness, for mission reports. The first Federal law author- minerals; tax breaks and government subsidies izing stockpiling of critical materials goes back to encourage U.S. mining and minerals proc- to 1939, but actual accumulation of stocks was essing; and relaxation of strip mine controls, put aside during World War II and began in mine health and safety regulations, and clean earnest during the Korean war. Large-scale air and water standards, which they blame for purchases continued through the 1950s. De- putting U.S. mining industries at a disadvan- spite changes back and forth since then in tage vis-à-vis foreign competitors. On the other stockpile policy, the Nation still has substan- hand, critics of minerals independence say that tial amounts of many critical materials stored an effort to replace imports with high-priced away. domestic minerals would raise the cost of fin- Another recurring recommendation in the ished goods, escalating prices at home, and past three decades of studies, reports, and laws making it harder for American products such on materials policy has been to establish a fo- as steel and autos to compete with foreign cal point in the Federal Government for mak- goods. ing comprehensive materials policy. This ad- Despite the low quality of some U.S. mineral vice has been difficult to follow. One reason resources, the Nation could probably achieve may be that materials shortages have been quite significant domestic production in most min- fleeting, and supplies are usually available erals if it were willing to pay a high enough when needed. Another is that materials policy price, Part of the price might be greater envi- is connected with other important policies— ronmental degradation and higher energy use, foreign, defense, taxation, environment, en- as well as higher dollar costs. Another cost ergy—which it is part of but does not dominate. might be a greater degree of government man- Moreover, it is difficult to establish an overall agement of the minerals market and strains “materials” or “nonfuel minerals” policy when with European and Japanese allies, whose im- the materials it is meant to cover are so numer- port dependence for 36 important nonfuel ous and so different from one another in the materials is considerably greater than that of needs they meet, in critical importance, in the United States. availability of substitutes, and in the diversity and security of supply, U.S. import dependence is often compared unfavorably with the Soviet Union’s high de- With the rising level of concern over U.S. im- gree of self-sufficiency in minerals, The Soviet port vulnerability, Congress (in 1980 and again Union has long followed a deliberate policy of in 1984) called on the Executive Office of the supplying its own resource needs and, when President to develop a coordinated materials forced to rely on foreign sources, has imported policy, Questions of interdependence, self- mainly from allies and neighbors. The result sufficiency, and stockpile policy are also being reexamined. The following sections briefly survey the findings of the three major commis- s~The office of Technology Assessment ana]yzed some aSpeCts of the U.S. steel industry in its 1980 report, Technolog~ and Steel sions on materials policy in the past 30 years lndustr~ Competitiveness, OTA-M-122 [Washington, DC: U.S. and outline the main features of government Government Printing Office, June 1980]. 106 . Strategic Materials: Technologies to Reduce U.S. Import Vulnerability is that the Soviets are net importers of only 11 with the same tone of strenuous response to of 35 important nonfuel minerals, and for only a serious challenge. The Commission set for four—bauxite and alumina, barium, fluorine, itself this question: “Has the United States the and cobalt—is import dependence as high as material means to sustain its civilization?” Al It 40 to 60 percent. noted that the United States had already out- grown its resource base and had become a If the United States opts for a policy of “raw materials deficit” Nation. At the core of minerals self-sufficiency instead of the tradi- the materials problem it put “growth of tional one of interdependence in a world free demand”—growth not only in the United States market, such a policy could require the United but also among the free world allies and in the States to isolate itself from that market. Unless former colonies seeking to industrialize rather the government imposed export controls to than export raw materials. keep domestic supplies inside the United States, U.S. trading partners could bid up the price To assure the material basis for security and and buy “U. S.” minerals in times of shortages. growth the Paley Commission saw interdepen- In times of minerals abundance and low world dence as the best answer. “The United States prices, either U.S. mines would have to be sub- must reject self-sufficiency as a policy, ” the sidized or import controls imposed (like the Commission said, “and instead adopt the pol- pre-1973 oil import quotas) or both. In all these icy of the lowest cost acquisition of materials cases, economic and political stresses can be wherever secure supplies may be found: self- foreseen, sufficiency, when closely viewed, amounts to a self-imposed blockade. . . “42 Commission Studies The Commission emphasized policies that President’s Materials Policy Commission would encourage investment by American (Paley Commission) business in mineral development in foreign countries and would remove barriers to trade. The President’s Materials Policy Commis- It also urged U.S. loans and technical assist- sion, named for its chairman, William S. Paley, ance, in addition to international help, for in- was established by President Truman in Janu- digenous investment in mining, especially in ary 1951 during the early months of the Korean poor countries. Besides these policies to pro- war. It was a time when a precipitate rise in mote “least cost” production worldwide, the military demands, added to an expanding post- Commission also stressed the value of greater World War II civilian economy, had caused efficiency of use, substitution of more abun- tight supplies and shortages. The realization dant materials for scarce ones, and the expan- had dawned that materials usage worldwide sion of domestic supplies by “pushing back the was on an upward spiral. Reflecting a sense technological, physical, and economic bound- of crisis about the continued supply of enough aries that presently limit supply.”43 materials to sustain the Nation’s military security, civilian welfare, and economic growth, Even to protect national security, the Com- President Truman said in his charge to the mission regarded a quest for self-sufficiency as Commission: “fallacious and dangerous. ” For many materials, the Commission said, “self-sufficiency is By wise planning and determined action we either physically impossible or would cost so can meet our essential needs . . . We cannot al- much . . . that it would make economic non- low shortages of materials to jeopardize our na- sense.” 44 Instead, the Commission suggested tional security nor to become a bottleneck to a range of policies to raise the Nation’s pre- our economic expansion.40 Resources for The Commission’s report, tllbid., pp. 1, 6, and passim. Freedom, published in June 1952, was colored tZIbid., p. 3. 4sIbid., p. 8, ~he President’s Materials Policy Commission, op. cit., p. IV. t’Ibid., p. 157. Ch. 4—Security of Supply . 107 paredness against a possible cutoff of materials critical to the Nation’s defense. To assure supply, the Commission strongly urged stockpiling, Also, it recommended several measures to prepare emergency sources of production, including: setting aside “in-the- ground” domestic reserves of key minerals, especially limited or low-grade deposits; developing and maintaining ready-for-use technology to produce low-grade deposits; and preparing processing facilities and transportation for the in-the-ground reserve. On the demand side, the Commission recommended the design of military products to use abundant rather than scarce materials, and the preparation of “standby” designs for use in extremity, substituting available materials for scarce ones that would otherwise be preferred. As The Paley Commission report noted the lack of a coordinating body for materials policy, and suggested that the National Security Resources Board, in the Executive Office of the President, undertake the role.46 However, the Board was soon abolished by Congress as fears of “run- Photo credit U S Navy ning out” of material, which had prompted the One mission of U.S. Navy frigates such as the USS Antrim establishment of the Paley Commission, died (FFG-20) is to protect the flow of strategic materials to down. No other body was given the policy co- the United States ordination task. Indeed, after a brief burst of public attention, The reasons for the report’s neglect are not the Commission’s report fell into obscurity. hard to find. First, the party in power changed; True, the interdependence policy strongly President Eisenhower won the 1952 election, urged by the Commission has generally guided and the Republicans took control of Congress the government’s actions since then. One ad- for the first time in 20 years. More important, ministration after another has followed the wartime shortages of materials turned to glut Commission’s advice in such matters as nego- with the end of the Korean war. When Presi- tiation of treaties to support freer trade and dent Eisenhower appointed a Cabinet commit- provision of government insurance for private tee in 1954 to examine minerals policy, the businesses investing in resource development question was not how to assure enough supply, abroad. But for the most part, the detailed rec- but how to help rescue the ailing domestic min- ommendations of the Commission’s report ing industries, (As discussed below, the Eisen- were ignored. One of the very few concrete re- hower Administration’s response was to guar- sponses by anyone was the creation of a non- antee purchases of minerals for an expanded government institution to monitor materials strategic stockpile,) supply and demand—Resources for the Future, which is largely funded by the Ford Foun- National Commission on Materials Policy dation. For most of the 1950s and 1960s, adequacy ——.——— islbld., ~h. xT.30, of materials supply was a quiescent issue, de- i61bid., p. 171, spite some bottlenecks and shortages as Viet- 108 . Strategic Materials: Technologies to Reduce U.S. Import Vulnerability nam war needs expanded. Supplies of minerals .,. to enhance environmental quality and con- rose comfortably with demand, and real prices serve materials by developing a national ma- generally remained stable or fell throughout terials policy to utilize present resources and technology more efficiently, and to anticipate most of the period. Production of aluminum the future materials requirements of the Nation rose enormously (over fourfold) relieving pres- and the world, and to make recommendations sure on other structural and electricity-con- on the supply, use, recovery and disposal of ducting materials, and petrochemical-based materials. plastics replaced a number of the conventional metals. The Commission’s report, Material Needs and the Environment Today and Tomorrow, is- Toward the end of the 1960s, Congress and sued in 1973, recommended striking a balance the public began to look at materials issues in between the need to produce goods and the a new perspective—i. e., in relation to conser- need to protect the environment. In particular, vation of resources and environmental quality. it urged that environmental costs be included In 1970, Congress created a new materials pol- in reckoning the costs and benefits of materials icy commission as a direct outgrowth of its production. While calling for “orderly” devel- work on recycling of materials and recovery opment of resources, the Commission also of energy from waste. Former Senator J. Caleb strongly urged conservation through recycling Boggs was a sparkplug of the renewed congres- and greater efficiency of use. To carry out these sional interest in materials policy and its con- policies, the NCMP made 198 detailed recom- nections with energy and the environment. A mendations in 10 major areas.50 series of biennial National Materials Policy Conferences was begun in 1970 at his request, The “traditional U.S. economic policy” of and he introduced the legislation creating a buying materials at least price was reaffirmed new materials commission.47 by this Commission, The policy was given credit for providing reasonably priced goods The background of the commission’s forma- to consumers and keeping U.S. goods competition was this: While considering an innovative tive in world markets. However, the Commis- Federal law on solid waste (The Resource Re- sion qualified its support of the least-cost in- covery Act of 1969), the Senate Committee on terdependence policy to a degree, It argued that Public Works asked for a study on a national some U.S. minerals industries might need a policy for handling materials, from extraction limited amount of protection from competition to disposal. The ad hoc committee doing the with “subsidized” foreign producers.51 study recommended a fresh look at materials problems as a whole and a new national com- As for national security, the Commission rec- 48 ommended that where problems of supply are mission. The next year, Congress amended the Resource Recovery Act, incorporating in foreseen, the United States should foster do- it the National Materials Policy Act of 1970 and mestic production, diversify sources of supply, creating the National Commission on Materials develop special relations with reliable foreign Policy (NCMP) with this objective:49 sources, increase the dependence of supplying countries upon continuing U.S. goodwill, and find substitute materials.52 The Commission 4TIn response to a request by Senator Boggs, the late Dr. Frank- gave little attention to stockpiling, possibly be- lin P, Huddle, Senior Specialist with the Congressional Research cause the imported material of greatest con- Service of the Library of Congress, organized a series of bien- cern at the time was oil, and stockpiling oil is nial National Materials Policy Conferences. The conferences, under the auspices of The Engineering Foundation, were held far more expensive and cumbersome than stor- at New England College, Hemiker, NH. They are widely known as “the Henniker Conferences. ” MU .s. Congress, Senate Committee on Public Works, Toward sONational commission on Materials Policy, MateriaIs Needs a National Materials Policy, committee print, 91st Cong., Ist sess. and the Environment Today and Tomorrow (Washington, DC: @Tifle II of the Resource Recovery Act of 1970 (Public Law U.S. Government Printing Office, 1973), pp. 1-4, 1-5, and ch, 6, 91-152), entitled the National Materials Policy Act of 1970, sec. SIIbid., pp. %8 through 9-10. 202. bZIbid., p, 9-26, Ch. 4—Security of Supply ● 109 ing most nonfuel minerals, (The NCMP’s charge Academy of Sciences issued numerous reports included energy; it defined materials as all nat- commenting on and related to the NCMP re- ural resources intended for use by industry, export.58 Finally, a most concrete result was the cept for food.) hearings and work done by the Senate Commit- tee on Public Works on resource recovery and Like the Paley Commission 20 years earlier, recycling, 59 which eventually led to passage of the NCMP urged that a high-level government the Resource Conservation and Recovery Act body oversee Federal materials policy. It proof 1976. posed a Cabinet-level agency—possibly a new Department of Natural Resources—to plan and National Commission on Supplies and Shortages execute comprehensive policy for materials, energy, and the environment. 53 When the National Commission on Materials Policy issued its report in mid-1973, OPEC was While the Department of Natural Resources a name known only to specialists. Oil prices was not created, the report of the NCMP re- had just begun to rise as a result of cartel conceived considerably more official attention trol. Within a year, OPEC had not only quad- than its predecessor had. At the time the re- rupled prices, but for a time had denied its port came out, interest in materials issues had members’ oil to the United States and The quickened. A world economic boom was on the Netherlands. In addition, the world economic upswing, and some shortages of materials had boom, by then 2 years old, had created short- begun to appear. The Club of Rome’s widely ages of many industrial materials. Prices of read report The Limits to Growth (published in 54 commodities from rubber and oil to scrap steel 1972), suggested that world demand for ma- and copper bounded upward, and industries terials, increasing exponentially, would outrun had real difficulty in getting the aluminum, the planet’s finite supplies, leading to a devas- copper, chemicals, petrochemicals, steel, and tating collapse of world economies in the 21st paper that they needed. The influence of The century. In this atmosphere, interest in the Limits of Growth, with its projections of world Commission’s report ran high. resource exhaustion and economic collapse, The Commission’s report was the spring- was at its height, To some people, the short- board for hearings before the Senate Subcom- ages of 1973-74 seemed early indications of just mittee on Minerals, Materials, and Fuels,55 and such a collapse. materials issues were the subject of other congressional hearings and reports;56 the Office of Technology Assessment added a program to search Service. The General Accounting Office undertook assess materials issues. Other congressional studies that led to such reports as Federal Materials Research agencies—the General Accounting Office and and De~’elopment: Modern ia”ng Institutions and Nlanagemtmt the Congressional Research Service—under- (Washington, DC: U.S. Government Printing Office, 1975). The 57 Office of Technology Assessment Materials Program undertook took studies on materials issues. The National a broad range of studies too numerous to cite. s8RepOrtS produced by the National Academy of Sciences and ~slbid,, p, I% and ch. 11. affiliated organizations included: National Academy of Sciences/ sqDone]]a H, Meadows, et al., The Limits to Growth [New York: National Academy of Engineering, National Minerals Polic}r, Universe Books, 1972). Proceedings of a Joint Meeting, Oct. 25-26, 1973 (Washington,

55u, s. Congr ess, senate, Committee on Interior and Insular DC: The Academy, 1975); National Academy of Sciences, Man, Affairs, Subcommittee on Minerals, Materials and Fuels, Hear- Materials, and the Environment, report of the Study Committee ings, Oct. 30, 31, and Nov. 1, 1973, committee print. on Environmental Aspects of a National Materials Policy (Wash- ‘See, for example, U.S. Congress, Senate, Committee on Public ington, DC: The Academy, 1973); National Academy of Sciences, Works, Resource Conservation, Resource Recovery, and Solid Committee on the Survey of Materials Science and Engineer- Waste Disposal, committee print, 1973. ing, Materials and Man’s Needs (Washington, DC: The Acad- sTSee, for example, the reports of the biennial Henniker con- emy, 1974); National Academy of Sciences, Committee on ferences, which were organized by the Congressional Research Mineral Resources and the Environment (COMRATE), Mineral Service, and U.S. Congress, House of Representatives, Commit- Resources and the Environment [Washington, DC: The Acad- tee on Science and Astronautics, Industrial Materials: Techno- emy, 1975). logical Problems and Issues for Congress, committee print, 1972, WU. S, Congress, senate Committee on Public Works, Hear- prepared by Dr. Franklin P. Huddle of the Congressional Re- ings, June 11-13, July 9-11, 15-18, 1974, committee print. 110 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

In this crisis atmosphere, national attention ● the widespread severe shortages of 1973- again fastened on the adequacy of material sup- 74 were a temporary phenomenon due to plies. While two House committees were pre- the world surge in demand, to lagging in- paring reports on the subject—one on Ameri- vestment in materials industries for a few ca’s resource needs and import dependence years before the boom, and to a “shortage and the other on world resource “scarcities”60 mentality” that led to panic buying and –former Senators Mike Mansfield and Hugh hoarding of materials by industries in Scott formed a joint Executive Congressional many countries. Leadership group to discuss threatened short- These conclusions added up to strong, con- ages of natural resources, raw materials, and tinued support for the principle of free trade agricultural commodities. Out of this group 62 and interdependence. emerged legislation (an amendment to the De- fense Production Act of 1950, in September The Commission stated that it found no in- 1974) creating the National Commission on stances of import dependence that would Supplies and Shortages. justify the costs and rigidities of placing restrictions on imports. Instead, to cope with inter- The Commission was instructed to look at ruptions of supply that might result from civil four principal issues: the possibility of resource disorders in producing regions or, possibly, exhaustion, the consequences of the Nation’s growing dependence on imported materials, from price-gouging by producers, the Commis- sion recommended stockpiling as “the univer- the ability of the free market to deal with short- 63 sal antidote.” The Commission supported a ages, and the adequacy of government mech- strictly limited use of the strategic stockpile for anisms for handling materials problems. economic purposes during a sudden disruption The Commission’s report, Government and of supply of critical materials to keep the ci- the Nation’s Resources, issued in 1976, con- vilian economy as well as defense industries cluded that the country’s ability to meet its ma- on an even keel. However, the Commission terial needs was in no imminent danger.61 It said, stocks should not be sold simply to influ- said that: ence prices in the absence of a supply disrup-

● tion (as the Johnson Administration had done resource exhaustion was not a serious 64 in the 1960s—see the discussion below). threat to economic growth for the next quarter century “and probably for gener- Underlying many of the Commission’s con- ations thereafter”; clusions was confidence in the ability of mar- ● U.S. dependence on imported materials ket forces to bring forth adequate materials for other than oil was growing only gradually the world’s economies and to right imbalances and manageably; within a reasonable time. Many of the recom- ● cartel control of nonfuel minerals was un- mendations amounted to “hands off” the mar- likely and embargoes directed against the ket. For example, in its consideration of recycl- United States “only remotely conceivable, ” ing, the Commission suggested the removal of and that neither was any real threat to the depletion allowances for minerals, which fa- American economy; and vor virgin ore over recycled materials-but no ✎ ✎ ✍ —.—— subsidies for recycling either. es In a similar eou,s. Congress, House of Representatives, Ad HOC Commit- vein, the Commission was cautious about rec- tee on the Domestic and International Monetary Effect of Energy ommending government funding for R&D for and Other Natural Resource Pricing, Meeting America’s Resource Needs, a report to the Committee on Banking and Currency alternative supplies, conservation, and substi- (Washington, DC: U.S. Government Printing Office, 1974); U.S. tute materials. Recognizing that government Congress, House of Representatives, Committee on Foreign Af- fairs, Global Commodity Scarcities in an Interdependent World (Washington, DC: U.S. Government Printing Office, 1974]. @Z1bid., pp. x-xii, chs. z, 3, and 4, especially pp. 22-23 and 38-39. 61Nationa] Commission on Supplies and Shortages, Govern- 6sIbid., p. 39. ment and the Nation’s Resources (Washington, DC: U.S. Govern- 841 bid., ch. 7. ment Printing Office, 1976). 6SIbid., p. 166. Ch. 4—Security of Supply ● 111 does have a role to play [especially in basic re- ness recession, following the OPEC oil price search), the Commission suggested that more hike. knowledge is needed of what motivates indus- Under the circumstances, the Commission’s try to commit R&D funds before government 66 more astringent suggestions for “hands off the rushes in to fill the breach. market (e.g., removal of the percentage deple- The Commission recognized political ob- tion allowance for new minerals) were coolly stacles to private investments in the world’s received. In fact, there was some sentiment in minerals, such as the threat of expropriation, Congress (especially among members from the but called attention to existing measures to western mining States) for much more active lessen the obstacles—measures such as govern- government support of the now-depressed and ment insurance for foreign investment, inter- always volatile domestic mining industry than national disputes settlement and investment anything suggested by the noninterventionist codes, and World Bank investments in devel- report of this Commission, Some were also dis- oping countries. The Commission also expressed satisfied with the limited backing the Commis- confidence “that private investors and Govern- sion had given to the idea of “comprehensive” ments will find ways to adjust to political and or “coordinated” materials policy.69 Altogether, economic realities.”67 the report got little official response. Changes in the Commerce Department’s economic anal- The Commission noted that complicated ysis toward stronger analysis by the industrial problems, like the rapid growth of world pop- sector was perhaps the principal result. ulation, the unequal distribution of world resources, and the sometimes unexpected and Once again, a Commission report on mate- unwanted byproducts of technological advance rials coincided with a change of the party in might require an increasing degree of govern- power, Within a month of President Carter’s ment sophistication and management. It found taking office, former Representative James San- room for improvements in the adequacy of the tini and 42 other members of the House of Rep- U.S. Government institutions to deal with resentatives wrote to the President expressing materials issues. It also proposed practical concern that the Nation’s policies were ad- changes in data collection and analysis and versely affecting nonfuel minerals production, suggested the creation of a small, high-level asking for a “balanced” national minerals pol- corps of professionals to monitor specific in- icy, and proposing a special minerals advisor dustries and economic sectors and to develop in the Executive Office of the President. In De- a comprehensive picture of how government cember of that year, the President ordered a policies combine to affect basic industry and government review of nonfuel minerals policy. the national interest. However, the Commis- The results, as noted below, were minimal; the sion recommended against seeking a “coordi- policy review was never completed. At the end nated materials policy” as an end in itself, be- of the Carter presidency, demands by the in- cause materials policy affects and is affected dustry and interested members of Congress for by many other policies on matters of equal or a “national minerals policy, ” support for the greater importance.68 minerals industry, and a special minerals advisor to the President were stronger than ever. By 1976, when the Commission published its report, the materials shortages that were so As the brief history outlined here suggests, worrisome at the time of its creation had dis- Commission reports on materials policy and appeared. Minerals activity had slid from the government actions have not always meshed. peak of high prices and tight supplies of the This is perhaps predictable, given the cyclical first half of 1974 to the trough of a world busi- nature of the minerals industry. When commis- —.-— —.— e9FOr this point of view, see U.S. Congress, House of Repre- 661bid., pp. 182-184. sentatives, Committee on Interior and Insular Affairs, Subcom- 671 bid., p. 46. mittee on Mines and Mining, U.S. Minerals Vulnerability: Na- eEIbld,, ~h~. 5 and 6. tional Policy Implications, committee print, 96th Cong., 2d sess. 112 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability sions are formed, one set of problems may be gram has been revived as a means to reduce dominant (e.g., shortages and high prices); but import dependency. TO Congress has repeatedly economic conditions may be quite different a extended the law, most recently in 1984. Pro- year or two later when the report is issued, so duction subsidies for cobalt were considered that the problems may look quite different (e.g., in deliberations about this extension, but are idle domestic capacity, inadequate investment, considered unlikely in fiscal years 1985 and “unfair” foreign competition). Also worth 1986. (See chs. 5 and 8 for further discussion.) noting is that commissions may be rather in- sulated from political concerns, while the gov- Stockpiling and Subsidies ernment that responds to them is not. Stockpiling originated in 1939, when, on the Thus, it is not too surprising that of the hun- eve of world war, Congress passed the Strate- dreds of detailed recommendations made by gic Materials Act, The Act authorized the gov- the three major materials commissions, Con- ernment to list materials essential for indus- gress and the various administrations of the try and defense and to buy them for a strategic past three decades have specifically adopted stockpile. Wartime needs soon overwhelmed only a few. By and large, both the executive the stockpiling program. The postwar Strate- branch and the Congress have steered a course gic and Critical Materials Stock Piling Act of —from tax laws to international trade treaties— 1946 restated the goal of preparing for an emer- that is consistent with the interdependence pol- gency by building stockpiles, and by 1950 some icy recommended by the commissions. But $1.6 billion worth of stocks had been acquired. there have been exceptions. And in general, This was less than halfway to the objective then congressional and other government actions in effect of $4.1 billion. With the outbreak of have followed their own agendas, rather than war in 1950, Congress provided funds for fur- responding directly to commission recommen- ther major additions to the stockpile. dations. Thus, government actions on materials The Korean war prompted the passage of the issues over the past 30 years are discussed Defense Production Act of 1950. Besides au- separately from the story of the commissions thorizing government priorities and allocations reports. of materials, the Act provided financial assistance for expanding domestic productive capac- Congressional Actions and ity, including facilities to produce critical non- Government Policies fuel minerals. During and after the Korean war, Two strands in materials policy, besides the purchase agreements, floor prices, and loans general support for free world trade, have won or loan guarantees under the Act promoted a consistent backing from Congress over a num- doubling of U.S. aluminum production, a 25- ber of years. One is the building of a strategic percent increase in U.S. copper mining, and stockpile, a policy that is now nearly 45 years a fourfold expansion of tungsten mining. As- old. The other is high-level government over- sistance under the Act also encouraged the sight of a “comprehensive” materials policy, startup of U.S. nickel mining and titanium an idea at least as old as the Paley Commission, processing and fostered domestic production but insistently put forward by Congress since of other minerals, including manganese, cobalt, about 1970. and chromium. The gross outlay of the government for these programs was $8.4 billion; with A program that promoted and subsidized do- the payback of loans, the ultimate direct cost mestic minerals industries—an exception to the has been estimated as $900 million.71 least-cost, interdependence policy—began dur- — Tocertain pads of the law that were tailored specifically to war- ing the Korean war and was actively pursued time needs (authorization for price, wage, and credit controls for a few years thereafter. The program died and for settlement of labor disputes) lapsed in 1951. out in the 1960s, but the law that authorized 71 U.S. congress, senate Committee on Banking, Housing, and 1950, Urban Affairs, Defense Production Act Extension of 1981, report it, the Defense Production Act of re- to accompany S.1135 (Washington, DC: U.S. Government Print- mained on the books and interest in the pro- ing Office, 1981), p. 3. Ch. 4—Security of Supply • 113

With the end of the war, many of the min- thirds, and all but 2 of the 700 domestic mines erals supported by government programs were ceased operations, Not until the late 1970s did being produced in greater quantities and at the domestic tungsten industry resume growth. higher prices than the civilian economy could In the 1960s, during the Kennedy and Johnson absorb. Purchases for the strategic stockpile years, the government sold a number of com- drained off some of the excess. The Eisen- modities from the stockpile that were now in hower Administration continued to build excess of the 3-year requirement—often using stockpiles throughout most of the 1950s, partly the sales as part of a strategy to control infla- to bolster mining industries the government it- tion or reduce budget deficits. In 1973, the self had created, but also because President Nixon Administration further reduced the stock- Eisenhower strongly believed in stockpiles as 72 pile requirements, from 3 years’ sustenance to insurance. one, with the result that still greater quantities Government support proved to be a mixed of stockpiled material were now officially blessing for some mining industries. Com- declared excess, panies drawn into production by the combina- At this point, Congress balked. The House tion of subsidized loans, purchase agreements, Subcommittee on Seapower and Strategic Crit- and large stockpile purchases were left stranded ical Materials questioned the new policy, when stockpiles became filled, government threatened to block sales of stockpiled mate- purchases ceased, and subsidies were with- rials, and demanded a thorough study of stock- drawn. Tungsten mining in particular was on 73 pile policy. The Ford Administration complied, a roller coaster . conducting an interagency review under the A vital constituent for many superalloy and White House National Security Council. In a widely used material for cutting tools, tung- 1976 the Administration announced a new sten was selected as a critical material to be stockpile policy based on planning to support stockpiled, with a goal of 146 million pounds defense and essential civilian needs for the first set in 1950, By 1955, government financial 3 years of a national emergency of indefinite assistance, combined with stockpile purchases duration. A few months after taking office, at high prices, had drawn more than 700 U.S. President Carter reaffirmed the Ford policy. mines (mostly small ones) into operation. The In 1979 Congress took stock. At this point, government stopped stockpile buying of tung- 40 years after the stockpile was established, the sten in 1957, after stocks had swollen to 210 publicly owned stockpile was large but out of million pounds-enough for 6 years consump- balance. The inventory was valued at $10.5 bil- tion by the entire Western World, or 10 years lion, of which $4.9 billion (or 47 percent) was of U.S. consumption. excess to goals based on the 3-year require- In 1958, the Eisenhower Administration re- ment. But needs for acquisition amounted to duced the requirement for stockpiled materials $12.9 billion–more than the value of stocks on from the amount needed to sustain the Nation hand, ” for a 5-year war to enough for 3 years. Three- Dissatisfied with the fluctuations in stockpile quarters of the tungsten holding was thereupon policy over the 40 years, Congress now wrote declared excess. In 1962 the Government began more explicit policy guidance and stockpile re- to sell tungsten stocks. Prices tumbled by two- quirements into law. In the Strategic and Crit- ical Materials Stock Piling Revision Act of ‘Ti~~a~lin P. Huddle, “The Evolving National Policy for 1979, Congress stated that the purpose of stock- Materials, ” Science 191, p. 655 (Feb. 20, 1976); also, A. E. Eckes, Jr,, The United States and the Global StruggJe for Minerals (Aus- piles is for the defense of the United States, not tin: University of Texas Press, 1979), p. 215. to control commodity prices. It also wrote into

TgMost of the material that follows on the tungsten industry from 1950 to 1970 is drawn from Konrad J, A. Kundig, “The Tungsten Market–From Chaos to Stability,” Journal of Metals, TqInformation on stockpile holdings was provided by the Fed- May 1981, pp. 42-47. eral Emergency Management Agency, 114 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

law that stockpiles should be sufficient to sus- Few identifiable actions were undertaken in tain the country’s military, industrial, and es- response to the act. The Bureau of Mines used sential civilian needs for at least 3 years, and the language of the law to support funding re- that goals based on this requirement cannot be quests for research in recycling and safe dis- changed without prior notice to Congress. Fi- posal of mine wastes, but no remarkable changes nally, Congress set up a stockpile transaction in funding priorities resulted. The Secretary of fund, so that the proceeds from the sale of ex- the Interior’s first two annual reports (in 1972 cess materials can be used to buy materials that and 1973) viewed with alarm problems of the are needed, rather than going back into the gen- U.S. minerals industry and the increasing U.S. eral Treasury funds. import dependence on fuel and nonfuel minerals, but made few recommendations for A “National Materials Policy” changes in the law to carry out a national minerals policy. (One of the few changes rec- Meanwhile, at the end of the 1960s, Congress ommended was to amend the antitrust laws to also turned its attention to the question of a allow joint ventures for mineral research.) broad Federal responsibility for materials pol- Later annual reports took a less alarmist view icy, acting initially in the area of minerals pol- of the rising import dependence for fuel and icy. The Mining and Minerals Policy Act of nonfuel minerals, most of which was actually 1970 was inspired by the National Environ- due to oil imports. The 1975 report, for exam- mental Policy Act of 1969, and was intended ple, said that problems arise from increasing to provide similar guidance and goals in its 75 imports “only when foreign sources become own area. unreliable. ” Especially in 1978 and 1979, the The Act declared it the national policy to fos- document failed to advocate the strong govern- ter and encourage: 1) the development of eco- ment support of the domestic minerals indus- nomically sound and stable domestic mining, try that sponsors of the law had evidently en- minerals, and minerals reclamation industries; visioned. 2) the orderly and economic development of By the mid-1970s strong supporters of the domestic mineral resources, reserves, and mining industry in Congress had become con- reclamation of minerals to help satisfy indus- cerned about what they saw as continuing ne- trial, security, and environmental needs; 3) glect of national minerals policy by the ex- mining, mineral, and metallurgical research, ecutive branch. Displeased with the rather including use and recycling of scrap; and 4) the laissez-faire conclusions of the Commission on study and development of methods for dis- Supplies and Shortages, they urged the new posal, control, and reclamation of mineral Carter Administration to undertake a fresh re- waste products and mined land to lessen ad- view of national nonfuels mineral policy, Presi- verse impacts. The Secretary of the Interior dent Carter responded in December 1977, ap- was put in charge of advancing national min- pointing Secretary of the Interior Cecil B. erals policy, as set forth in the law. He was re- Andrus chairman of an interdepartmental pol- quired to report each year on the state of the icy review committee. domestic mining and minerals industry, and to recommend any laws needed to carry out The nonfuel minerals policy review gave the national policy. Beyond that, the law called even less satisfaction to advocates of a “na- for no specific actions. tional minerals policy.” The review ultimately foundered, going no further than a partial draft report in 1979.76 It had suffered a fate common for interdepartmental task force efforts—con- TSHouse subcommittee on Minerals and Mining, U.S. Minerals Vulnerability, pp. 18-18. See the Committee’s comparison of environmental laws with the Mining and Materials Policy Act of T13u. s. Depafiment of the Interior, “Report on the Issues Iden- 1970, which it viewed as the victim of neglect by the executive tified in the Nonfuel Minerals Policy Review, ” draft for public branch. review and comment, August 1979. Ch. 4—Security of Supply • 115 signment to lower rungs of the bureaucratic but with enactment of the Resource Conserva- ladder and a watering down of controversial tion and Recovery Act of 1976 its earlier prom- issues, In hearings held around the country on inence in the hierarchy of material policy con- draft portions of the report, the document was cerns began to decline. Other concerns, such criticized by all sides—industry, environmental as import vulnerability, and the competitive- groups, and consumer organizations. ness of basic U.S. industry, had moved to the forefront. A number of congressional and industry critics criticized the document on national Meanwhile, the House Committee on Science security grounds. They linked together the is- and Technology was working on legislation sues of import dependence, the health of the which emphasized the role of research and de- domestic minerals industries, the Nation’s velopment in resolving material problems. need for strategic materials, and the threat of Since the early 1970s, the Committee had be- a “resource war.”77 come increasingly involved with the issue, re- leasing a series of background reports and Aside from mining and minerals, Congress holding hearings on various legislative pro- had yet to declare a statutory national materials posals which had a science and technology policy. The Paley Commission, in 1952, had component in implementing materials policy. spoken of “a national materials policy for the United States” with an overall objective of in- By the 95th Congress, these legislative con- suring “an adequate and dependable flow of cepts had begun to crystallize, so that one mem- materials at the lowest cost consistent with na- ber of the committee could speak, in mid-1977, tional security and with the welfare of friendly of acting in “concert with other committees of nations. ” But the difficulties entailed in trans- both Houses” to begin “to establish an orderly, lating such recommendations into meaningful effective national materials policy.”78 Several policy were formidable—given the diverse role members of the committee had introduced bills that materials play in all aspects of society. which, while differing in detail, had themes in When Congress, in 1970, enacted a National common. 79 First, the bills proposed a statutory Materials Policy Act, it was for the purpose of materials policy. Second, implementation of developing such a policy (through Commission the policy would be achieved through focus- recommendations) rather than articulating one. ing Federal materials R&D activities. Third, Nonetheless, throughout the 1970s, materials they emphasized the need for greater involvement of the Executive Office of the President advocates both inside and outside the Congress (through the Office of Science and Technology had been laying the groundwork for a materials Policy (OSTP) or a new organization in the policy that would encompass a broad range of EOP) in materials decisionmaking. concerns—yet not be so broad as to be all in- clusive. Some material policy concerns that None of these bills passed the 95th Congress, were prominent in the early part of the dec- but the hearing process helped to further refine ade became themselves the subject of separate the basic legislative concepts and build a greater legislation, thus making the task of what to em- degree of consensus about components of na- phasize in an overall national materials policy tional materials policy legislation. While ex- more manageable. Solid waste disposal—a pressing agreement with the overall objective dominant materials policy issue in the early of these bills, the Carter Administration was 1970s—was perhaps the most conspicuous example. It still attracted considerable attention, TLIU. S. Congr ess, House Committee on Science and Technol- ogy Subcommittee on Science, Research and Technology, Hear- ‘T~u.s. COng~SS, House of Representatives, Committee on In- ings on a National Policy for Materials; Research and Resources, terior and Insular Affairs, Subcommittee on Mining and Min- 95th Cong., 1st & 2d sess., June 29, July 13, 14, 1977; Feb. 28, erals, Hearings, Oct. 18, 1979 (Washington, DC: U.S. Govern- Mar. 1, 2, and 6, 1978 [Washington, DC: U.S. Government Print- ment Printing Office, 1979), statement of Representative James ing Office, 1978], pp. 1-2. D. Santini, Chairman. See also the testimony of E. F. Andrews, ~Material policy bills introduced in the 95th Congress included Vice-President, Allegheny I.udlum Industries, Inc, H.R. 10859, H.R, 11203, and H.R. 13025. 116 . Strategic Materials: Technologies to Reduce U.S. Import Vulnerability not convinced that new legislation was neces- Congress. 80 The National Materials and Min- sary. OSTP, it said, already had the authority erals Policy, Research and Development Act to achieve those goals, and moreover its non- of 1980 (Public Law 96-479) declared: fuel mineral policy review, and other initiatives . . . it is the continuing policy of the United in areas of basic innovation and improved co- States to promote an adequate and stable sup- ordination of R&D would provide the needed ply of materials necessary to maintain national direction for Federal policy without additional security, economic well-being and industrial legislation. production with appropriate attention to a The Administration’s position became less long-term balance between resource production, energy use, a healthy environment, natu- persuasive in the 96th Congress, when its draft ral resources conservation, and social needs.81 nonfuel mineral policy review came under considerable congressional criticism. With the The law spelled out a number of activities reverberations of the cobalt price spike still in furtherance of this national materials pol- shaking U.S. industry, the issue of import de- icy, to be undertaken by the President, his Ex- pendency was very much on the minds of legis- ecutive Office, and various departments. It lators. Sponsors of materials legislation in the directed the President to submit a plan to Con- House saw an emphasis on science and tech- gress that would assure: policy analysis and nology as an important step toward reducing decisionmaking on materials in the Executive import vulnerability. At the end of 1979, the Office of the President; interagency coordina- House, by a 398 to 8 vote, passed H.R. 2743, tion of material policy at the Cabinet level; con- called the Materials Policy, Research and De- tinuing long-range analysis of the use and sup- velopment Act. The bill, originally introduced ply of materials to meet national needs; and by Representative Don Fuqua, Chairman of the continuing consultation with the private sec- House Science and Technology Committee, tor on Federal material programs. reflected many of the basic concepts consid- The law designated the Office of Science and ered by the Committee in the 95th Congress— Technology Policy, in the Executive Office of including a broad-based material policy, to be the President, to coordinate Federal materials implemented through an improved executive R&D, emphasizing R&D to meet long-range ma- branch decisionmaking process in regard to terial needs through annual assessments. Re- R&D activities. sponsibility for several specific tasks was After it was sent to the Senate, the House placed in various departments: Commerce, to bill’s basic framework was maintained, but its do case studies of material needs (the aerospace scope was enlarged as the bill moved through industry was selected for the first study and two Committees (Commerce, Science, and the steel industry the next); Defense, to assess Transportation; and Energy and Natural Re- material needs critical to national security; and sources) to the Senate floor. New provisions Interior, to improve the assessment of interna- were added which placed greater emphasis on tional minerals and to make better minerals materials import vulnerability, and the Depart- data and analysis available for decisions on ments of Defense, Commerce, and Interior Federal land use, and to report on its activi- were given important supporting roles in iden- ties in these areas, tifying vulnerability problems. In general, the eOFOr legislative history of Public Law 96-479, see House Re- Senate bill placed greater emphasis on miner- port 96-272, Nov. 29, 1979 (House Science and Technology Com- als—thus bringing together in one piece of leg- mittee); Senate Report 96-897, Aug. 13, 1980 (Senate Commerce, islation the sometimes disparate concerns of Science and Transportation Committee); Senate Report 96-937, Sept. 12, 1980 (Senate Energy and National Resources Commit- the materials and minerals communities. tee; House debate and passage, Congressional Record, Dec. 4, 1979; Oct. 2, 1980; Senate debate and passage, Congressional Rec- The bill was signed by President Carter on ord, Oct. 1, 1980. October 21, 1980, in the closing days of the 96th Blpub]ic Law 96-479, sec. 3. Ch. 4—Security of Supply ● 117

In April 1982, President Reagan submitted ity. Any government-financed R&D, the report the plan called for by the Act.82 Dominating the said, “will concentrate on high-risk, high po- plan was its emphasis on opening more of the tential payoff projects with the best chance for federally owned public lands to minerals pros- wide generic application to materials problems pecting and development in order to “achieve and increased productivity. ” The exception to a proper balance between wilderness and this policy was mission-specific projects of the mineral needs of the American people, ” Another Department of Defense. major theme was renewed and improved stock- Although the President’s plan was seen by piling. The President took credit for the first many as an important first step, its lack of em- major stockpile acquisitions in 20 years—pur- phasis on materials issues other than those chases of cobalt and acquisition of Jamaican associated with mining and the public lands, bauxite by purchase, barter of agricultural as well as the choice of the Cabinet Council on products, and swap of excess stockpile mate- Natural Resources and the Environment to co- rials. The President’s report promised a thor- ordinate policy, drew strong criticism from the ough review of the quality of stockpiled mate- House Committee on Science and Technology, rials, some of which are decades old. By mid-August 1982, the Committee had re- Despite efforts by Congress to assure high- ported a bill—the proposed Critical Materials level coordination of national materials policy, Act of 1982—to establish a Council on Critical the plan offered little that was new in this re- Materials “under and reporting to” the Execu- gard. National materials policy, it said, would tive Office of the President. “It is no accident, ” be coordinated through the Cabinet Council on the Committee report said, “that the Cabinet Natural Resources and Environment (as it had Council on Natural Resources and Environ- been since the early days of the Reagan Admin- ment, headed by the Secretary of Interior, istration). No budget for a coordinated mate- placed primary emphasis on minerals, mining rials program was presented (even though the and related public land policies with almost no law requires one); the Cabinet Council needs attention to basic material processing, conservation, substitution, or new materials develop- only a “minimum administrative staff, ” said 83 the report. For coordination of government- ment." Only an entity within the Executive sponsored R&D, the plan proposed to resurrect Office of the President, the Committee report the interagency Committee on Materials reasoned, would be able to transcend “normal (COMAT). COMAT had been disbanded in the interagency competitiveness and provide the early days of the Carter Administration, then necessary balance in materials policy consider- resurrected before Carter left office, and then ations.” The Administration disagreed, argu- was again disbanded in the early days of the ing that a new layer of bureaucracy would Reagan Administration. impede—rather than enhance—materials and mineral policy coordination, The President’s report had little discussion of the potential for smoothing materials supply Although the hill did not pass in the 97th problems by developing advanced technologies Congress, the House Science and Technology for more efficient use of materials, recycling, Committee continued the push for a critical or substitution of abundant materials for scarce materials council in the 98th Congress. Its Sub- ones—themes emphasized in the 1980 Act and committee on Transportation, Aviation, and its legislative history. While the Administration Materials held hearings in May and June of actually proposed to fund strategic materials 1983, focusing on implementation of the 1980 84 R&D at a fairly high level, the President’s plan Materials Act. Administration witnesses, offered few specifics, stating that “favorable esHOUSe Report 97-761, Part 1, Aug. 18, 1982, p. 9. tax incentives” in the 1981 tax law would stim- 84u .s. congress, House Committee on Science and Technol- ulate private R&D of essential materials activ- ogy, Subcommittee on Transportation, Aviation, and Materials, —.— Hearings on Material Research and Development Policy, 98th and Minerals Program Plan and aZl~u~iOnu] ~la~~rjajs Report Cong. 1st sess., May 17, 18, 19; June 24, 1983 (Washingtonf DC: to Congress, submitted hy President Reagan, Apr. 5, 1982. U.S. Government Printing Office, 1984), 118 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability while supporting the need for effective coordi- other “high technology” materials in its indus- nation, maintained that the Cabinet Council on trial goals. Concern had been mounting that Natural Resources and Environment and U.S. primacy in advanced materials research COMAT would fulfill this need. However, the was in danger of being supplanted as these U.S. General Accounting Office, which had materials increasingly found commercial ap- been asked by full Committee Chairman Fuqua plication. to monitor implementation of the 1980 Act, By late October 1983, the subcommittee had identified several areas in which additional at- reported a measure (H. R. 4186) to the full tention would be needed to meet the goals of Science and Technology Committee which the 1980 Act, including more effective coordi- 85 called for the establishment of a national crit- nation. While its final report was not released 86 ical materials council and for increased empha- until March 1984, GAO’s preliminary find- sis on advanced materials R&D. When a Senate- ings (as reflected in its testimony) supported passed arctic research measure that had been the contention of those who held that imple- endorsed by the Administration was referred mentation of the 1980 Act was not adequate. to the Committee, it emerged from mark-up GAO pointed out that the Cabinet Council on with a new Title II, the National Critical Ma- Natural Resources and the Environment did terials Act of 1983, The measure was signed not include all agencies with important mate- into law by President Reagan on July 31, 1984. rials responsibilities, such as the Department The National Critical Materials Act (Title II of Defense and the Federal Emergency Man- of Public Law 98-373) has three major compo- agement Agency, which coordinates stockpile nents. First, it establishes a National Critical planning. COMAT, assigned R&D coordination Materials Council in the Executive Office of by the President’s plan, had apparently not the President, to advise the President on ma- been involved in determining the need for a terials policy, and define responsibilities and major new materials research initiative pro- coordinate critical materials policies among posed in the President’s budget for fiscal year Federal agencies. The Council, to be composed 1984. The Act called on OSTP to prepare and of three presidentially appointed members who annually revise an assessment of national ma- will need Senate confirmation if they do not terial needs related to scientific and technologi- already serve in a Senate-confirmed office, is cal changes over the next 5 years; while no date to prepare a report on critical materials inven- was specified for the initial assessment, none tories, and projected use, including a long- had been prepared. Finally GAO noted that the range assessment of prospective critical mate- 1980 law did not require the administration to rials problems. periodically revise and resubmit to Congress its overall materials program plan. Hence, the Second, it calls for the establishment of a na- President’s material plan would not necessarily tional Federal program for advanced materials be revised. (Key findings from the GAO report research and technology, with the Council are summarized in box 4-A.) assuming key responsibilities for overseeing and collaborating with other agencies on the Another issue taken up at the hearings con- program. The Council is directed to establish cerned the potential role of advanced materials a national Federal program plan for advanced in U.S. industrial competitiveness, and in eas- materials R&D, and to review authorization ing import vulnerability. In 1981, Japan had an- and budget requests of all Federal agencies to nounced a 10-year program giving consider- ensure close coordination with policies de- able prominence to advanced ceramics and termined by the Council. The Office of Man- @slbid., p. 23. agement and Budget, in turn, is to consider ‘U.S. General Accounting Office, implementation of the Na- tional Minerals and Materials Policy Needs Better Coordination Federal agency authorization requests in the and Focus, GAO—RCED-84-63 (Gaithersburg, MD; Mar. 20, materials area as an “integrated, coherent, 1984). multiagency request” to be reviewed with the Ch. 4–Security of Supply Ž 119

Council for adherence to the Federal materials technology, authorized by the Stevenson-Wydler program plan then in effect. Technology Innovation Act of 1980 (Public Third, the law seeks to promote innovation Law 96-480), as a means to encourage such innovation. It is also called on to establish an “ef- and improved productivity in basic and ad- fective mechanism” for efficient and timely dis- vanced materials industries. The Council is to semination of materials property data. evaluate possible use of centers for industrial

The Range of Solutions

Thirty years of debate have drawn attention bly less attention. That is the purpose of this to a very wide range of political responses to report. Chapters 5, 6, and 7 present in detail materials supply problems. The promise of ad- the principal subjects of this report—supply vanced technologies, both in expanding supply alternatives, conservation, and substitution. and in promoting more efficient, more flexi- Chapter 8 discusses policy issues and options ble use of materials, has received considera- related to these subjects. 120 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability —

Box 4-A.-GAO Evaluation of Executive Branch Implementation of the National Materials and Mineral Policy, Research and Development Act of 1980

Soon after passage of the National Mate- vise such assessment on an annual basis. rials and Minerals Policy, Research and De- The Act, however, did not specify a velopment Act of 1980, the U.S. General Ac- reporting date, Agency officials told GAO counting Office (GAO) was asked to monitor that they consider this a low-priority task, and review the Administration’s implementa- and have not prepared the report. tion of the Act by the Chairman of the House ● The Department of Defense was to pre- Science and Technology Committee. GAO’s pare a report assessing critical materials final report, issued in April 1984, draws the needs related to national security and to following conclusions: identify steps to meet these needs. This ● The President assigned overall responsi- report was to be made available to Con- bility for coordination of materials policy gress on October 21, 1981. According to to the Cabinet Council on Natural Re- officials in the Defense Department, the sources and Environment, but the coun- report had been sent to the Cabinet Coun- cil has not provided the “continuous de- cil on Material Resources and Environ- cision and policy coordination required” ment in time for it to be used in the prep- by the Act. The Cabinet Council is re- aration of the President’s material plan in stricted to Cabinet members; therefore, April 1982. However, the report was still representatives from the Federal Emer- under review within the Administration gency Management Agency (FEMA), as of February 1984, and had not been which oversees stockpile policy, and the sent to Congress. Environmental Protection Agency (EPA), ● Similarly, the Department of the Interior which regulates the activities of mining did not submit a report due to Congress and mineral processing industries, are on October 21, 1981, until November 10, not included. The Council cannot com- 1983. The report was submitted only af- pletely address minerals and materials is- ter the Chairman of a House subcommit- sues with this lack of membership. In tee indicated that “legislative action” fact, several material-related decisions would be pursued if the report were not have been made by independent agencies submitted. (The Interior report summa- or individuals with little or no coordina- rizes actions to improve the capacity of tion with the Council or sister agencies. the Bureau of Mines to assess interna- ● The President’s program plan focused on tional mineral supplies, to increase the one of the three policy goals included in level of mining and metallurgical re- the Act—national security. However, search by the Bureau in critical and stra- almost no attention was given to the Act’s tegic minerals, and to improve the avail- other two policy goals-economic well- ability of mineral data for Federal land use being and industrial production, except decisionmaking.) to address domestic minerals extraction ● The only Federal agency to comply con- problems. No consideration was given to sistently with the Act’s requirements is the long-term implications of the decline the Department of Commerce. (Commerce in domestic minerals processing capac- has completed two materials case studies ity for the U.S. economy and industrial on critical materials requirements of the base. steel industry and of the aerospace indus- ● The Act required the Office of Science try; a third dealing with domestic min- and Technology Policy (OSTP) to prepare erals industries is in progress.) an assessment of national materials needs GAO concluded that the Executive Office related to scientific and technological should develop an expanded program plan changes over the next 5 years and to re- which takes into account Congress’ three pol- ●

Ch. 4—Security of Supply ● 121

icy goals of national security, economic well- sions and recommendations. The agency re- being, and industrial production. Specific rec- sponses are as follows: ommendations were: The Department of the Interior disagreed ● The plan should clearly define the terms on the need to develop an approach to “strategic” and “critical” to focus atten- measure U.S. minerals and materials vul- tion on those mineral and material mar- nerability. Interior felt it was not neces- kets where the United States is most sary to quantify the magnitude or degree vulnerable to price increases or supply of vulnerability in a given nonfuel disruptions and should develop a plan to minerals or materials market. measure the magnitude of the potential The Department of Defense agreed with problem in a given market. The benefits GAO that the report assessing critical na- and costs of various alternatives such as tional security materials needs and the stockpiling, expanding domestic produc- steps necessary to meet those needs re- tive capacity and supply, and developing quired by the Act should be made avail- substitutes should be weighed in this able to Congress. Defense was in agree- long-term plan which should be geared ment with the Department of the Interior towards specific minerals or materials. regarding measuring U.S. vulnerability. ● The program plan should reach beyond The Office of Science and Technology the goal of national security and include Policy did not comment on the GAO pro- issues affecting the law’s goals of eco- posal that it prepare the assessment of na- nomic well-being and industrial produc- tional materials needs related to scientific tion, which are now being addressed in and technical changes over the next 5 an uncoordinated fashion by the Depart- years as required by the Act. Interior, ments of Interior, Commerce, Defense, however, stated that the administration and others. intended that COMAT would constitute The program plan should address the fu- the primary means through which OSTP ture role of high technology materials would carry out the Act’s reporting re- R&D. This alternative should be devel- quirements. In the opinion of GAO, nei- oped within the report that OSTP is re- ther the program plan or COMAT’s activ- quired to prepare under the 1980 Act, and ities to date assess national materials the recommended redirection resulting needs related to scientific and technologi- from COMAT’s inventory of Federal ma- cal changes over the next 5 years; there- terial R&D programs. fore, this requirement has not been met. GAO offered the opportunity for the various agencies to comment on their conclu-

38-844 0 - 85 - 5 : ~1, 3 — . . —.

CHAPTER 5 Strategic Material Supply

Page Introduction ...... 125 Summary of Supply Prospects ...... 125 Factors Contributing to Change in Supply ...... 126 Technological Advances in Mine Production and Processing ...... 127 Strategic Material Environments, Mineral Activity, and Technology ...... 128 Geology of Strategic Materials ...... 128 Prospecting to Production ...... 129 Exploration Technology ...... 131 Mining Technology...... 131 Potential for Change in the Supply of Strategic Materials ...... 132 Processing of Strategic Materials ...... 135 Production and Processing of the First-Tier Materials ...... 136 Chromium Production and Processing ...... ,137 Foreign Production of Chromium ...... 139 Domestic Production of Chromium ...... 148 Foreign and Domestic Chromium Processing ...... 154 Cobalt Production and Processing ...... 159 Foreign Production of Cobalt ...... 160 Potential Sources...... 166 Domestic Production of Cobalt ...... 167 Domestic and Foreign Cobalt Processing ...... 174 Manganese Production and Processing ...... 177 Foreign Production of Manganese ...... 178 Domestic Production of Manganese...... 184 Domestic and Foreign Manganese Processing ...... 187 Platinum Group Metals Production and Processing ...... 190 Foreign Production of Platinum Group Metals ...... 192 Processing of Platinum Group Metals ...... 201 Exploration ...... 201 Land-Based Resources ...... 201 Ocean-Based Resources ...... 209 _ -— —

Contents–continued

List of Tables Table No. Page 5-1. Deposit Types and Locations of First-Tier Strategic Materials ...... 129 5-2. Mineral Activity ...... 130 5-3. First-Tier Strategic Materials Supply Prospects ...... 134 5-4. World Chromate Reserves and Production by Country...... 139 5-5. Ferrochromium Production by Country ...... 140 5-6. Chromate Mining Industry by Country ...... 140 5-7. Historical Production—Chromite, 1960-80, by Country...... 141 543. Chromate Mine Capacity and Usage in 1981 by Country ...... 142 5-9. U.S. Chromate Deposit Resources ...... 149 5-10. U.S. Chromate Laterite Deposit Resources ...... 149 5-11. Proposed Mining and Processing Methods U.S. Chromate Deposits ...... 150 5-12. Potential U.S. Chromate Production ...... 151 5-13. Composition of Chromium Ferroalloys and Metal...... 154 5-14. Ferrochromium Capacity, 1979...... 158 5-15. Production Capacities for Chromium Metal in the Non-Communist Countries—1981...... , ...... 158 5-16. Chromium Ferroalloys and Metal: Imports and Consumption ...... 158 5-17. World Cobalt Reserves and Production by Country ...... 160 5-18. Cobalt Mining Industry by Country...... 161 5-19. World Refined Cobalt Production, 1982, by Country ...... 162 5-20. Historical Production—Cobalt, 1960-80, by Country ...... 162 5-21. Potential Foreign Cobalt Sources, ...... 163 5-22. Potential U.S. Cobalt Production ...... 169 5-23. U.S. Cobalt Processing Capacity ...... 176 5-24. World Manganese Ore Reserves and Production by Country ...... 178 5-25. Manganese Mining Industry by Country ...... 179 5-26. Ferromanganese and Silicomanganese Production by Country...... 180 5-27. Historical Manganese Ore Production, 1960-80, by Country ...... 181 5-28. Manganese Mine Capacity and Usage in 1981, by Country ...... 181 5-29. Definition of Manganese-Bearing Ores ...... 185 5-30. U.S. Manganese Resources and Potential Production...... 186 5-31. Composition of Manganese Alloys ...... 188 5-32. Manganese Ferroalloys and Metal Production Capacity—1979 ...... 189 5-33. Manganese Ferroalloys and Metal: U.S. Imports and Consumption ...... ,. 190 5-34. Distribution of Platinum Group Metal Production by Metal and Country, 1981...... 192 5-35. Platinum Group Metals: World Reserves and Production by Country ...... 192 5-36. PGM Mining Industry by Country, ...... 193 5-37. Potential U.S. PGM Production ...... 196 5-38. Outlook for Development of Ocean-Based Resources of Strategic Materials. 210 List of Figures Figure No. Page 5-1. Simplified Flowchart, Chromium Ore to Industrial Use ...... 155 5-2. Submerged Arc Furnace ...... 155 5-3. Total U.S. Cobalt Production, 1945-71 ...... 167 5-4. Simplified Flowchart for the Production of Cobalt ...... 175 5-5. Simplified Flowchart, Manganese Ore to Industry Use ...... 188 5-6. Comparative PGM Production, 1981 ...... 191 5-7. PGM Processing, Simplified Flowchart ...... 202 5-8. Time Chart of Some First-Tier Strategic Material Deposits ...... 203 5-9. Exposure of Precambrian Rock in North America...... 205 CHAPTER 5 Strategic Material Supply

Introduction

Strategic material supply vulnerability could ities for new mineral finds and improved ex- be reduced by developing domestic sources of ploration technology and their effects on ex- ores and maintaining domestic processing ca- panding the knowledge and availability of pability or by sufficiently diversifying foreign strategic materials. suppliers to reduce the likelihood that any supply disruption would adversely affect U.S. na- Summary of Supply Prospects tional security or industrial stability. Prospects for changes in the existing distribution of While today’s pattern of supply for chro- mineral supply sources depend primarily on mium, cobalt, manganese, and platinum group whether future demand for various commod- metals (PGMs) will not change in any appre- ities encourages expansion by current sup- ciable way in the near and, most likely, long- pliers or the opening of new mines in new term future, there are some opportunities for areas. Other factors include shifts in consump- direct and targeted government action to dition patterns in the developing nations—e.g., versify foreign sources of these materials away a growth in internal use of resources that re- from politically sensitive areas. A concentrated sult in fewer or higher processed forms of push to diversify foreign sources of supply, exports—and the decline of production as re- however, would inevitably open marginally serves are depleted. Although market forces economic deposits and, in the long run, might and, increasingly, government action in min- do nothing more than simply delay an even eral-rich developing countries determine which greater reliance on the abundant deposits—e.g., mineral deposits are chosen for exploitation, those in southern Africa. neither has contributed or will necessarily con- Of the first-tier strategic materials, only tribute to a lessening of vulnerability by PGMs are now produced from domestic ores; promoting either domestic or diversified for- and in 1982 the amount produced represented eign production. less than 1 percent of that year’s consumption. This chapter discusses the existing lack of Other domestic PGM and some cobalt resources diversity of supply and the corresponding lack have been under consideration for commercial of adequate domestic supply of the first-tier exploitation. Known chromium and manga- strategic materials. It also presents an overview nese ore resources in the United States are con- of the technology employed in strategic mate- sidered improbable candidates for commercial rials supply. (International political factors, production at any time in the near or long-term which relate to the likelihood of disruptions future. Without Federal subsidies, production and their possible durations, are not discussed.) may be possible for larger amounts of PGMs, The first section of the chapter considers min- but is less likely to initiate production of co- ing and processing in general and is followed balt, and appears unlikely for chromium and by sections on the specific ore production and manganese even under supply disruption con- processing environments and supply patterns ditions when market prices can rise dramati- of each of the first-tier strategic materials. The cally. In all cases, only a portion of U.S. needs prospects for reduction in vulnerability are could be supplied by domestic production. All assessed. The last section discusses, in terms of these resources, though, represent important of U.S. lands and the ocean floor, the possibil- in-place stockpiles of strategic materials.

125 126 Ž Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

Chromium processing than Australia’s and would repre- Foreign alternatives to the major chromium sent a larger investment to promote increased producers, South Africa and the Soviet Union, production. Neither producer will decide to increase production without clear market signals are limited in number and in the amount of chromium they could provide. Prospects in- of increasing and sustained demand. Increases from these producers plus Gabon (with trans- clude the expansion of output from producing deposits in the eastern Mediterranean and the portation improvements) might be able to meet Philippines and the development of laterite and U.S. needs. beach sand deposits in the Western Pacific re- The cost of producing ores from known do- gion. These sources might provide an addi- mestic manganese deposits ranges from 2 to tional 10 to 20 percent of U.S. needs. 18 times the market price; commercial activ- Domestic resources could provide up to 50 ity is nonexistent. Simultaneous development of eight domestic deposits could theoretically percent of needs (in a low consumption year cover most of U.S. needs over a 10-year period. such as 1982) for 11 years if four deposits were simultaneously developed at costs about dou- Platinum Group Metals ble prevailing rates. One of these deposits, which could supply up to 4 percent of U.S. There are no known foreign alternatives to chromium consumption, has been under re- PGMs. South Africa, the Soviet Union, and to cent consideration by a private firm, but a much lesser extent, Canada, will continue to production would be contingent upon signifi- supply the world. cant increases in the prices and demand for Private development of and production from nickel and cobalt. the Stillwater Complex in Montana appears possible given slight increases in market prices Cobalt for platinum and palladium and evidence of If foreign production of cobalt is to diversify, increased, sustained demand. Initial produc- it will most likely result from the opening of tion would supply about 9 percent of domes- cobalt-containing nickel laterite deposits in tic needs, based on 1982 consumption of PGMs. such countries as New Caledonia and Papua Exploration New Guinea, possible expansion of output from the Philippines, and production of cobalt The relatively low economic value of many as a byproduct from iron ore mining in Peru. strategic materials and ample foreign supplies Four cobalt deposits in the United States combine to inhibit any domestic commercial could supply up to 10 million pounds annually, exploration for new deposits of these materials. if producing simultaneously; this production Advances in exploration technology are not rate would decline after about 20 years, Private specifically directed at finding strategic mate- firms investigating three of these properties rials, but general improvements could increase have suggested that Federal subsidies in the the likelihood of locating deposits, if they exist. form of price guarantees could assist them in Processing and the Ferroalloy Industry overcoming a prime barrier to production— low and volatile market prices for cobalt. The U.S. ferroalloy production capacity has de- fourth deposit is not under consideration for clined over the last decade. This erosion is ex- production. pected to continue at a slower pace, resulting in a lean domestic industry that can supply a Manganese portion of domestic needs. The greatest opportunities for diversifying Factors Contributing to Change in Supply the foreign supply of manganese lie in increased production of manganese ore in Australia and It is a consequence of the economics of min- Mexico. Mexico’s ores require more extensive ing that there are no known “world class” Ch. 5—Strategic Material Supply . 127 mineral deposits that are not producing. Known This shift in trade from ores to ferroalloys deposits that are not producing, whether for- and from semiprocessed ores to cobalt and eign or domestic, are small in size and/or con- PGMs is accompanied by a change in transpor- tain low-grade material. These factors, plus tation requirements. Ferroalloys contain dou- others such as labor and energy costs, acces- ble to triple the chromium or manganese con- sibility, the effect of perceptions of political risk tent of the mined ores, so that shipping the on investment, and environmental concerns, same amount of chromium or manganese as contribute to these deposits’ marginal eco- ferroalloys rather than as ores requires less nomic value. Some producing deposits are not space, fewer ships. While prior processing al- considered to be economic by free market lows the shipment of a greater amount of chro- standards. The less developed nations that own mium or manganese in fewer vessels, PGM and many of the known deposits consider them cobalt metal products can be shipped by air at such critical sources of jobs and foreign ex- no great increase in cost to the consumer, The change that they are often exploited even if growth in cobalt and PGM refining capability operations must be subsidized. in mining countries increases the flexibility of transportation systems (and reduces the over- Mineral activity encompasses a time-con- all processing time), resulting in a lowering of suming, sequential chain of activity: explora- the vulnerability of cobalt and PGMs to sea and tion, mine development, ore production and land transportation problems, processing, and international trade. Normal changes in supply patterns evolve slowly. Dra- Concern about the vulnerability of transpor- matic changes, when they do occur, are the re- tation routes from producing to consuming na- sult of perturbations to the system, Two ongo- tions usually focuses on the problem of open ing evolutions in international mineral trade sea lanes in time of war. Consideration must are now affecting mineral supply and the ways also be given the less dramatic problem of in which vulnerability is measured, The first whether land transportation services are and is a shift from export production to domestic will remain adequate. Mines are often located consumption. Many producer countries (e.g., far inland, in isolated areas. Transportation of Brazil and India) are increasingly using their ores to a shipping port usually involves an ini- mineral resources, just as the United States did, tial overland route (by railroad, truck, aerial as a contribution to their own industrial devel- tramway). The costs of developing and oper- opment. Internal demands for these resources ating such systems can be a significant factor affect the trading relationship these nations in the economics of a potential source of min- maintain with their mineral customers by the erals. Transportation bottlenecks could prove reduction of market supplies during high in- the most time-consuming aspect of any rapid ternal growth periods and the dumping of ex- expansion required in a supply emergency. In cess supplies on the world markets during addition, land transport is a weak link between recessionary times. producer and consumer in terms of possible terrorist operations, A second and related factor is that producing nations are deciding that it is in their own best interests to promote the export of proc- Technological Advances in Mine essed ores rather than raw materials. Since Production and Processing’ their newer facilities appear to have a competi- Into the 1990s, the overall picture for min- tive edge over traditional processing facilities ing technology applicable to first-tier strategic in industrialized centers, the vulnerability of the West to imported materials is shifting from ores to higher processed forms of strategic ‘See the following section for a description of various explo- materials. ration, ore mining, and processing procedures and technologies. 128 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

material resources should differ only in a few Mechanization of age-old mining methods is respects from that of today. the key change now underway in production. Open pit mining, which employs technology Technology will only marginally enhance the to drill, blast, and load rock is expected to use likelihood for domestic production. Changes more continuous conveying systems in deeper in technology affect the cost of materials by re- and steeper pits, and continuous bucket-wheel ducing the capital investment and the unit cost excavators will come into use. Hard rock of mining and processing operations. How- underground mining will still be a cyclic oper- ever, low-grade domestic resources of strate- ation of drilling, blasting, and loading but there gic materials are not unique geologically, and should be increased remote control, rapid con- any innovations would apply to foreign depos- veyor haulage, and mining methods that break its of higher grades, as well. New technology rock on remote levels. Machines used to bore would not be likely to make domestic sources shafts (called “raise-boring”) will be in general more competitive. Unless there are discoveries use, but other continuous mining innovations of higher grade ore bodies in the United States in shaft sinking, tunnel boring, and mining or the development of mining and processing methods will probably be used in only a few technologies that selectively improve the eco- mines. nomics of low-grade deposits, marginally economic deposits will remain as such. In specific instances, new mining concepts could be applied. Solution mining of manga- If foreign supplies were restricted or unavail- nese deposits is now under investigation and able, new technology could provide for domes- is being conceptualized for other strategic tic production at lower costs than would be materials. Bioengineering, which uses bacte- possible otherwise. Development costs in open ria in leach treatment of ores, may provide a pit and underground mines might be reduced mining innovation for the future. It is expected, by as much as 15 percent with the use of rapid however, only to supplement existing mining excavation and continuous material-handling and processing techniques. methods and in situ (solution) mining could realize savings of up to 50 percent over today’s The low grades of domestic deposits and the conventional open pit and underground mine attendant costs involved in processing their installations. Mine operating costs per unit of ores to produce the high-grade industry stand- material could be reduced by as much as 20 ard material is a major contributor to their un- percent in relation to the costs of applying cur- economic status. There are no major changes in rent technologies, with in-situ operation costs processing technologies expected to be avail- perhaps 40 percent below those of conven- able in the future to alter that picture substan- tional methods.2 tially. Domestic cobalt and PGM ores, if in —.. — production, are expected to be processed with 2A. Silverman, et al., Strategic and Critical Mineral Position of the United States With Respect to Chromium, Nickel, Cobalt, modifications of today’s technologies, Manganese, and PJatinum, contractor report prepared for the Office of Technology Assessment, June 1983.

Strategic Material Environments, Mineral Activity, and Technology

Geology of Strategic Materials and “ultramafic”)3 which were formed eons ago by solidification from a molten state. Ta- Chromium, cobalt, manganese, and platinum tRocks that are dominately composed of iron and magnesia group metals are found in greatest concentra- silicate (SiOJ minerals. Ultramafic rocks contain less than 45 tion in certain classes of rocks (called “mafic” percent Si02. Ch. 5—Strategic Material Supply Ž 129 ble 5-1 identifies by deposit type and location Moreover, the degree of information and com- the major worldwide known deposits of the mitment to maintaining current estimates of first-tier materials. The significance of the resources and reserves varies greatly among different deposit types is explained in each of nations. Countries with limited mineral assess- the individual mineral sections below. ment programs may, for instance, not distinguish between resources and reserves, estimate A troublesome aspect of any discussion of only from operating mines, or fail to conduct mineral supply is in establishing agreement economic analyses. over the meaning— and use of the basic terms, “resources” and “reserves. ” Reserves include Reserves and resources are often given in deposits that were known and were technically terms of ore tonnage. An important qualifier and economically feasible to mine at a profit is the “grade” of the desired mineral, the at the time the data was analyzed. Reserves are amount of that mineral that is estimated to be the only deposits that are immediately avail- contained within the ore. Grades are usually able to be developed to meet the need for presented in percentages or parts per million materials. Resources, on the other hand, in- (ppm). elude reserves and deposits that are known but are not currently economic to mine, as well as Prospecting to Production deposits that are merely inferred to exist from 4 geologic evidence. Numbers for both are esti- Mineral activity can be divided into succes- mates and should be used only with caution. sive mineral exploration, development, and The Bureau of Mines and the U.S. Geological production phases, all accompanied by ongo- Survey, which calculate and report the num- ing analysis of information accumulated dur- bers, rely on their own research, the reporting ing these phases. The full sequence of activity of private data that is often purely voluntary, occurs for only a few projects, as a project will and data from various publicly available sources. be shelved or abandoned at any stage if the results are not encouraging or if economic conditions become unfavorable. The full sequence, Table 5-1 .—Deposit Types and Locations of subdivided into six stages, is shown in table 5- First-Tier Strategic Materials 2. Although there may be some overlap between stages, they each involve a decision by Chromium: mining companies or other investors to expend Stratiform ...... South Africa (Bushveld Complex), Zimbabwe (Great Dyke), Finland, time and resources that grow significantly with Brazil, U.S. (Stillwater Complex) each stage. Revenue is not generated until the Podiform ...... Albania, New Caledonia, activity reaches the production phase. Philippines, Turkey, Zimbabwe Laterite ...... U.S. (Gasquet Mountain), Exploration involves the identification and Philippines, New Caledonia investigation of target areas with the intent to Cobalt: Stratabound ...... Zaire, Zambia discover an economic mineral deposit. An Laterite ...... Australia, New Caledonia, analysis of exploration findings of the mineral Philippines, Cuba deposit, combined with a determination of the Hypogene. , ...... Australia, Botswana, Canada (Sudbury), Soviet Union (Noril’sk), applicability of mining procedures and capa- U.S. (Duluth Gabbro) bility of ore processing techniques, and mar- Hydrothermal ...... U.S. (Blackbird, Madison) keting studies will determine the initial eco- Manganese: nomic viability of a mineral project. After this Sedimentary ...... Australia, Brazil, Gabon, India, Mexico, South Africa (Transvaal) qFor more information on this subject, see U.S. Department Platinum group metals: of Agriculture Forest Service, Anatom~’ of a Nfine From Pros- Strati form ...... South Africa (Bushveld), Soviet pect tO ProductJon, General Technical Report INT-35, June 1977; Union, Canada (Sudbury), U.S. and U.S. Congress, Office of Technology Assessment, A4anage- (Stillwater) ment of Fuel and Nonfuel Mjnerals in Federal Lands, OTA-M- Placer ...... Colombia, U.S. (Goodnews Bay) 88 (Washington DC: U.S. Government Printing Office, April SOURCE Off Ice of Technology Assessment 1979). 130 ● Strategic Materials: Technologies to Reduce U.S. /report Vulnerability

Table 5-2.—Mineral Activity deposit is found during stage 3, then a decision Phase ‘- Stage Activity is made as to whether the potential of the de- Exploration posit justifies the expenditure of further funds Target identification for stage 4. If so, a process begins to define the 1. Regional appraisal grade and extent of the deposit and to deter- 2. Reconnaissance of region Target investigation mine the detailed composition of the minerals 3. Detailed surface investigation in the deposit. It is at this stage that sufficient and chemical analysis of information is obtained to determine whether samples 4. Detailed 3-dimensional analysis the deposit is of commercial value and whether of site by drilling, testing of development activities are advisable. Three- samples. Project feasibility dimensional mapping of the deposit, with studies Development 5. Drilling to block out deposit. drilling samples taken at close intervals, pro- Construction of mine workings, vide detailed maps of the ore and the surround- ore processing plants, support ing rock. This information and analysis of facilities Product ion 6. Operation of mine, ore mineral content of the ore are used to develop processing, and shipment of mine plans. Samples are used to test prospec- material to market tive ore processing systems. In addition to pro- SOURCE: US. Congress, Office of Technology Assessment, Wmagernent ot Fue/ and Nonfue/ Mlnera/s in Federa/ Larrds, (Washington, DC: U.S. viding the information for the design of the Government Printing Office, April 1979), p. 47. mine and the ore processing plants, feasibility studies during this stage provide the basis determination has been made, development for the final company decision to commit funds work proceeds to bring a deposit to the point to a mining project and provide investment of production —the actual mining, ore process- groups with the information they need to jus- ing, and shipment of material to market. tify loans for or equity involvement in a project, During target identification (stages 1 and 2), Mineral activity then moves into the devel- a large area is surveyed to locate areas of prom- opment stage during which the mine and ore ise. Research is based largely on previously col- processing plant are constructed and transpor- lected industry and government data and geo- tation and other support facilities are installed. logic theory and is supplemented by field This stage is the greatest expense of the mineral inspection by air or on the grounds Success- activity process. Once the final production ful conclusion is marked by a decision, usually stage commences, it continues for as long as made by the exploration experts, to focus on the project can produce on commercial terms. particular areas of high potential, Should economic conditions change, perhaps due to depressed market prices or depletion of The objective of target investigation (stages high-quality ore, the facilities are closed either 3 and 4) is to locate a deposit of a desired temporarily (“placed on care and maintenance”) mineral that has potential for commercial ex- or permanently. In addition, the mining indus- ploitation. This involves the gathering of data try is quite accustomed to delaying partially from the region selected during the previous completed projects when market conditions stages and proceeding with sampling and map- change. There can be a considerable time gap ping of geologic features, geophysical surveys between the end of the exploration and the be- (usually conducted from the air), limited drill- ginning of the development stages. ing to determine the nature of the layers below the surface, and laboratory analysis of sam- This process of mineral activity is long-term, ples obtained in the region. If a promising risky, and expensive. In general, each successive stage is more expensive and takes more time than prior stages. The costs and time in- ‘Remote sensing (exploration by satellite), while it has not yet volved vary and are dependent on a number located ore deposits, is a tool which provides basic scientific data which can be coordinated with geologic concepts to assist of factors. For instance, both will increase if in the process. a deposit is buried rather than exposed on the Ch. 5—Strategic Material Supply ● 131

surface. In 1977, according to an earlier OTA water, soil, and rock materials in the region of report,6 estimates of average U.S. exploration mineral exploration. costs per mineral project ranged from $1.7 million to $5.4 million and took up to 5 years to Mining Technology complete; mine development costs varied from millions to several hundred millions of dollars The mining method selected for a particular with times ranging from less than 1 up to 13 project will vary according to the size, type, years. A 1980 report7 stated that major inter- and position of the deposit; the grade of the ore, national mining projects take at least 7 to 8 its strength and the strength of the surround- years after the time of discovery and often cost ing waste rock; and the unit value of the de- up to $1 billion to reach the production stage. sired mineral. Once production begins, mining ventures may There are two general classes of mineral de- need years of continuous operation to show an posit: surface and vein. Vein deposits are adequate return on the capital investment. formed by the deposition of minerals by molten rock as it moves upward from deep below Exploration Technology the surface through cracks in the surface rock. As the molten rock cools, the contained metals The geologist’s search for a specific mineral (under the action of pressure and heat) can con- is aided by knowledge of the environment in centrate in particular locations to form veins which it is likely to be found. Thus, expected 8 of minerals. Although some vein deposits may host rock, trace metal, and gangue mineral be accessible by removing the surface rock, associations, wall rock alteration occurrences, generally such deposits must be mined by and the age of a mineralization can all be keys underground methods. to discovery. Exploration technologies which help to identify these environments as well as Surface deposits are found at or near the sur- the mineral itself include three types: visual, face. Some, known as placer deposits, occur geophysical, and geochemical. Visual methods as concentrations of mineral or metal particles are the oldest, simply being the surveying of that have washed away from an exposed de- an area for geologic formations and features posit to mix with sand and gravel in river beds known to be favorable to the desired minerals, or ocean beaches. (Placer deposits have been Such methods are still used in the first stage an important source of PGMs and gold.) The of mineral activity in the search for regions metals are recovered by dredging river beds or deserving of more detailed study. beaches and using flowing water and gravity to separate the heavier precious metals from Technology has now taken the explorer be- the lighter sand and gravel. yond the powers of eyesight to advanced geophysical methods. Physical properties of min- Another important class of surface deposit eral formations such as density, magnetic is formed by the weathering of surface rock behavior, electrical conductivity, and radioac- that contains dispersed metals such as nickel tivity provide characteristic patterns which can and chromium. Through a continual process be used for identification. Some of these meas- of changing temperatures and rainfall, these urements are taken on the ground, some “down metals are washed to lower levels of the rock hole” and others can be conducted by air. Geo- formation where they concentrate in amounts chemistry involves trace metal analysis of air, that are attractive for commercial exploitation. (Deposits of nickel, known as nickel laterites, fiManagement of Fuel and Nonfuel Minerals in Federal Lands, are formed in this way. Such deposits may also op. cit. contain concentrations of chromite, the min- 7The Brandt Commission, North-South.” A Program for Sur- eral from which chromium is obtained.) Lat- vival (London: Pam Books, 1980), p, 156. ‘Gangue is that part of an ore body which contains the un- erite deposits are generally mined from the sur- desirable minerals–i.e., waste material. face by open pit methods. 132 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

Mining processes thus fall into two general A solvent is then applied and the resultant so- classifications: underground and surface min- lution of minerals is collected and processed, ing. In underground mines a complex system The second version— “in situ leaching”-- of shafts are sunk and tunnels bored which involves the introduction of the solvent into the selectively follow the ore veins or pockets of orebody in place, followed by pumping out of minerals with highest grade material. Blasting the resultant mineral solution. The application techniques must be used to remove the ore, of in situ leaching in hard-rock mining requires which is often crushed within the mine prior an initial fracturing of an ore body before to hauling above ground, Underground min- leaching solvents can effectively produce a so- ing methods (called “stoping” by American lution of the desired minerals to be extracted miners) are age old and highly varied. They in- from the ground. These techniques for hard- clude open stoping (room and pillar, for in- rock mining are under active research but have stance, is a form of open stoping), shrinkage, not yet been attempted on any virgin depos- cut and fill, and square-set stoping and block its. They may offer a possible solution to the caving. Today, underground mining is becom- problem of the poor economics of low-grade ing increasingly mechanized in order to im- domestic deposits if they can reduce the over- prove productivity. all recovery costs of producing a high-grade material. Research areas include equipment, Placer and open pits are surface mining tech- solvents, technologies for fracturing ore bod- niques, both of which take advantage of large ies in place and for controlling the movements and efficient earthmoving machinery. In dredg- of fluids through them. ing operations, a form of placer mining, the gravel containing minerals is scooped up by Bioengineering may provide mining with a bucket lines or a dragline onto a floating plant technique to recover metals from ores too low which separates the gravel into a mineral con- in grade to process conventionally or from ex- centrate and tailings (waste product). In an isting tailings dumps.10 Certain bacteria will open pit mine access to the ore body is accom- liberate and concentrate small grades of me- plished by removal of the waste overburden tals, and natural bacterial leaching is used cur- (upper layer of earth lacking in economic con- rently to recover copper and uranium from sul- centration of metals). The material in the ore fide deposits. A major drawback of bacterial body is then removed, as the pit is formed, top leaching is the slow rate of the process com- to bottom by sequentially blasting (in hard rock9 pared with chemical extraction. The hope is mines) and then mechanically loaded into that genetic manipulation can enhance the nat- equipment for hauling up out of the pit for ural leaching properties of bacteria. processing, A choice whether to use open pit or underground mining methods is based, in Potential for Change in the Supply part, on the cost of removing the overburden of Strategic Materials and whether the waste rock can sustain the sloping sides of the pit. Once a mineral activity moves into the development stage, its details are generally widely Solution mining techniques are now used for known. Given the time-consuming develop- extracting soluble materials such as potash and ment process, it is not difficult to project world salt in situations where conventional mining ore production (a total of existing and devel- methods would not be economic. There are oping new sources) at least a decade into the two general versions. In the first, “heap leach- future. Even beyond 10 years, potential new ing,” ores are mined and spread on the surface. IOSee U.S. Congress, Office of Technology Assessment, Com- 9Hard rock refers to material that has a strong bonded struc- mercial Biotechnology: An International Analysis, OTA-B-218 ture and must be excavated by using blasting techniques in which (Washington DC: U.S. Government Printing Office, January an explosive charge is placed in a hole bored in the rock and 1984), pp. 226-228; Joann Dennett, “Microbe Miners, ” AMA4 detonated, Most first-tier strategic materials are mined from Magazine, July 2, 1984; and Joseph Alper, “Bioengineers Are hard-rock ore bodies. Off to the Mines, ” High Technology, April 1984. -—

Ch. 5—Strategic Material Supply ● 133

sources can be readily identified because there underused in the early 1980s, the effect of sev- are only a limited number of known deposits, eral years of worldwide economic recession. undergoing investigation, that could be opened While the fortunes of the mining industry have or expanded to capture a share of the ore mar- historically been cyclical, the recent sustained ket. Discoveries of major, new deposits are pos- oversupply and low prices have adversely af- sible but unpredictable. Thus, projections of fected new investment in these commodities. production beyond about 20 years become un- Although some new mining ventures for these reliable. materials are being evaluated, few are going forward. It is expected that any increase in de- Any change in the existing mine production mand in the near future will be supplied by cur- of strategic materials will be determined by rent mines operating at capacity and the re- market demand and by the efforts of mineral opening of recently shut mines. producer governments to provide employment for their citizens, obtain foreign currency, and Even under healthy market conditions, the promote industrial development. Extraordi- ample reserves and resources of the South Afri- nary conditions, such as a prolonged supply can mines for chromite, manganese, and PGMs disruption of a substantial portion of any one and of the Zairian/Zambian mines for cobalt mineral, could also encourage increased serve as impediments to investment in the de- production from existing or the development velopment of new mining areas. All new ven- of new sources of supply. tures must compete for markets against the strength of the existing producers and their Table 5-3 presents a summary of the supply ability to increase production easily to meet prospects of the first-tier strategic materials, any new market demands. a picture of the geographic distribution of the United States’ major sources of the first-tier The immediate response capability of exist- strategic materials along with the relative ing producers to a supply disruption depends present and estimated future contribution of on the status of mining at the time and the cor- the producers. (The ranking system is based on responding extent of development needed. For the magnitude of each producer’s output com- instance, during such periods as the early bined with the extent of its participation in 1980s, when mining operations generally were Western trade.) The table also identifies the ma- operating at as little as 50 percent of capacity, jor barriers to expansion of production and ini- an expansion to full capacity could be simply tiation of new sources of supply. a matter of hiring personnel for more shifts in a mine or for reopening mines. This could be constraints include limited knowledge about done in a matter of weeks, or at most, in a few the extent of the resource base; the equipment months. On the other hand, a mine already and skilled labor needs to mine, process, and operating at full or close-to-full capacity dur- refine the ores; and the limits of support sys- ing a tight market would require substantially tems such as energy sources and transporta- more time to expand production, even though tion facilities. Direct economic constraints in- the plans for expansion would be available. clude the need for massive capital to finance Any producing mine is continually upgrading development work and uncertainty about fu- its reserves and blocking out future production ture markets. Political risk (contractual insta- areas to open, given a change in market con- bility, threat of nationalization without com- ditions. In an underground mine, however, pensation, uncertainty over guarantees of new shafts might have to be prepared by ex- sufficient mine life to attain expected rate of tensive blasting and boring, a time-consuming return) is a component of the economic analy- process. An open-pit mining operation with sis of any mining project located in a develop- simple ore concentrating equipment can in- ing country. crease output much more rapidly by adding Available mine capacity for chromium, co- blasting and hauling equipment. Ultimately, balt, manganese, and PGMs has been highly however, limitations could be imposed by avail- 134 • Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

Table 5-3.—First-Tier Strategic Materials Supply Prospects

b Country Importance Primary constraints to Regions Minerals producers Now Potential increased availabilityc North America...... Chromium NA Cobalt CANADA 2 nickel demand, refinery limits United States — high cost deposits, demand for various primary metals Manganese MEXICO 3 customer acceptance of quality PGM CANADA 3 nickel/copper demand, refinery limits United States — demand for PGMs, competition South America . . . . . Chromium NA Cobalt Peru — processing facilities Manganese BRAZIL 2 local demand PGM NA Australia and Oceania ...... Chromium PHILIPPINES 2 infrastructure Pacific rim — proof of feasibility Cobalt PHILIPPINES 2 demand for nickel AUSTRALIA 2 demand for nickel New Caledonia — demand for nickel Papua New Guinea — demand for cobalt/chromium Manganese AUSTRALIA 2 hauling equipment PGM Pacific rim — proof of feasibility Eurasia ...... Chromium FINLAND 3 possible resource limits ALBANIA 2 unknown GREECE 3 resource limits TURKEY 3 improved knowledge of resources and technology INDIA 3 resource limits, infrastructure, local demand Cobalt FINLAND 2-3 possible resource limits Manganese INDIA 3 resource limits, infrastructure, local demand PGM NA Africa ...... Chromium SOUTH AFRICA 1 transportation ZIMBABWE 2 transportation MADAGASCAR 3 seasonal operation, infrastructure Cobalt ZAIRE 1 processing, refinery limits ZAMBIA 1 processing, refinery limits Morocco — resource evaluation BOTSWANA 3 transportation Manganese SOUTH AFRICA 1 transportation GABON 2 transportation PGM SOUTH AFRICA 1 refinery limits Eastern Bloc . . . . . Chromium SOVIET UNION 2 unknown Cobalt SOVIET UNION 3 unknown CUBA 3 unknown Manganese SOVIET UNION 3 unknown PGM SOVIET UNION 1 unknown NA—Not applicable. aUppERCASE indicates a current producer. bKey: 1 = major 2= medium 3 = minor 7 = unkno~ Based on assessment of relatlve production levels and contributions to Western trade. CAny expansion/d@elopment would require capital investment, to a varying degree, in mining, Processing, and refinin9 infrastructure. SOURCE: Office of Technology Assessment, 19S4. Ch. 5—Strategic Material Supply ● 135

able processing facilities, such as smelting and This multistep processing of ores into use- refining operations, ful forms of metals takes a variety of paths; the appropriate choice depends on the nature of Processing of Strategic Materials the ore and the type of product desired. Proc- essing facilities are often tailored to a particu- Once removed from the ground, all ores lar ore body or type, production rate, and metal undergo some level of processing. Technol- production. Other than the initial beneficiation ogies chosen will be based on the extent of steps, processing does not necessarily take processing required due to the condition of the place at the mine site. However, there is an in- ore (e.g., the amount of upgrading necessary creasing tendency to combine mine production to produce a salable product and the level of and downstream processing of minerals. This difficulty involved in separating out the un- tendency and the consequences to U.S. import wanted minerals) and the intended end use of vulnerability is discussed more fully below and the mineral. in the appropriate mineral sections which At the mine site, preliminary processing will follow. take place in order to separate the desired Processing Technology minerals from the unwanted rock (gangue) that accompanies them, thereby, increasing the Extractive metallurgy involves the recovery grade and value of the sought-after mineral. of metals and metal compounds from ores and These “beneficiation” techniques to produce mineral concentrates. Either a pyrometallur- “ore concentrates” include simple hand-sort- gical or hydrometallurgical method is used, fol- ing, mechanical crushing, and gravity concen- lowed in some cases by an electrolytic refin- tration methods, A more sophisticated and ing process. widely used method is flotation. Crushed ore is passed through vats of water containing rea- In pyrometallurgy, heat is used to melt the gents which make one or more of the ore concentrate and, in some cases, to promote a minerals water repellent. These particles attach chemical reaction that will change the ore mineral into an alternate chemical compound. to air bubbles and float to the top of the vats where they can be selectively removed. Metals are separated out in gaseous form, collected as they rise from the “melt” or in their Even after the minerals are concentrated, fur- liquid state, by differences in densities. Smelt- ther processing steps are required to alter their ing—the technique used to produce ferroal- form. Manganese carbonate minerals, for in- loys—is a pyrometallurgical process. stance, must be heated to convert them into manganese oxides. Manganese oxides and Hydrometallurgy is chemical processing in chromite (chromium ores) are smelted into fer- which metals are selectively leached (dissolved) roalloys.11 Cobalt and PGMs, once in metal from ores and concentrates. The variety of form, must be highly purified before they are minerals to be separated determines whether useful for certain applications. Finally, metal an acid or alkaline solvent is applied. Hydro- alloys such as stainless steels and superalloy metallurgical processes are increasingly se- are manufactured from ferroalloys or relatively lected over pyrometallurgical processes be- pure metals and used in applications such as cause they use considerably less energy and hubcaps and jet engines.12 produce less air pollution. I I Ferroa]]oys, a]]oys of iron, contain a sufficient amount of one In an electrolytic process, a metal is “won” or more other chemical elements (in this case, chromium or man- (separated out) from a solution and deposited ganese metal] to be used as an agent for introducing these elements into molten metal, usually steel. Ferroalloys are produced on a cathode (the negative side of an electri- by smelting ores in electric arc furnaces. See the chromium and cal flow) in a relatively pure form. manganese sections that follow for more discussion on processing. No technology ever completely recovers all IZFor a discussion of metal processing, such as steelmaking, the desired metal contained in the ores in see U.S. Congress, Office of Technology Assessment, Technol- ogy and Steel Industry Competitiveness, OTA-M-12Z (Washing- which they are found. Recovery rates (the ton, DC: U.S. Government Printing Office, June 1980). amount of contained metal that is liberated) 136 • Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

can range from about 25 to 95 percent and de- World trade in both chromium and manganese, pend on both the physical limits of the proc- however, has been shifting in the past decade essing methodology and value attached to each from concentrated ores to ferroalloys. specific metal in an ore body. The growing ferroalloy production capacity of ore producers (and the steel industries of de- Production and Processing of the veloping nations) competes with rather than First-Tier Materials supplements traditional ferroalloy plants in the United States, Western Europe, and Japan. Im- The United States is not a producer of chro- 13 portant factors identified as contributing to this mium, cobalt, manganese, or PGM ores, al- shift are lower labor and energy production though this has not always been the case. At costs and lower transportation costs for higher some stage, however, domestic plants still en- metal content ferroalloys. It is not clear whether ter the processing chain of such ores. the competitive edge of new producers offer- The worldwide chromium industry is char- roalloys is due to free market economics or acterized by a large number and variety—big whether government subsidies have promoted and small, public and private sector—of ore economically unsound competitors, In any producer firms. Chromite deposits also vary case, as ore producer countries receive the ben- widely in size and are mined by underground efits of exporting a higher value product, the and surface methods and concentration meth- shift in production away from the indus- ods range all the way from simple manual sort- trialized West is forcing adjustments (due to ing to flotation systems. unemployment from plant closings, and reduced availability of capital for modernization Manganese deposits are fewer in number which further diminishes competitiveness) and and the producing industry is more concen- resulting in a reduction in U.S. ferroalloy trated than that for chromium. The deposits are production capability. generally abundant and can be relatively easily expanded in bulk terms. Often their expansion It is not clear whether trend toward the im- capabilities are restricted by equipment and portation of higher processed material increases transportation systems, rather than the size of the import vulnerability of the United States. their reserves. The majority of the world’s pro- At the same time this processing shift is occur- ducing manganese deposits are oxide, rather ring, Western Europe and the United States are than carbonate minerals, and are mostly mined importing increasing amounts of final steel by surface methods. Oxide ores need only to products from ore producer nations and others, be concentrated; while carbonate ores must be and their needs for raw and semiprocessed reacted with oxygen to form manganese oxide forms of chromium and manganese are de- compounds prior to the ferroalloy stage of creasing. It is true that, as integration increases processing. in ore-producing countries, system dependencies increase—i.e., concern now must include Most of the chromium and manganese mined not only the assurance that a foreign mine will is consumed by the steel industry. Manganese continue to produce and concentrate ores, but is a processing agent, and both are used as also maintain the operation of a smelting plant, alloying agents. Producers of these ores have Lack of adequate domestic ferroalloy process- traditionally engaged in the initial processing ing capacity could complicate and add con- of the ores they mine—sorting and concentrat- siderably to the costs involved in efforts to cope ing them by grades of mineral, chemical con- with any emergency ore supply disruption and tent, and physical condition—and leaving the would probably increase the response time to downstream processing to the steel industry. an emergency, On the other hand, the higher value of processed ores means that an overt act Iacurrent domestic production of PGMs evolves from the refin- of a supply interruption becomes more costly ing of copper ores. to producers and a growing number of proc- .

Ch. 5—Strategic Material Supply Ž 137 essors and might affect such an event’s likeli- ally contain a variety of metals in either oxide hood, In addition, processed ores contain or sulfide forms, and their processing paths are higher amounts of metal per unit volume than complex and tailored to the mineral content of ore concentrates and therefore larger amounts the individual mines, The United States has al- can be transported at a time. It is economically ways had a limited ability to process cobalt and feasible to airship refined cobalt and PGMs and PGM ores, relying instead on importing these avoid supply disruptions caused by surface materials in their usable forms. (An increasing transport interdictions. Ferroalloys, like ore interest in recycling catalytic converters, how- concentrates, are still confined to ocean ship- ever, is promoting the development of domes- ment due to their weight and volume. tic refining capacity for platinum that may be usable for virgin PGM ores. ) Europe, the first Cobalt is only a secondary product of any consumer of these metals, was also the home current mining operation, therefore, its supply of companies that controlled most mining oper- is tied to the demand for the nickel and cop- ations during the colonial era; semiprocessed per with which it usually occurs. The ore forms of the ore were physically transferred producers control a substantial amount, but not from the ore-producing countries to northern all, of the downstream processing of cobalt, Europe for the final refining processes. This PGMs are primary products, coproducts, or by- flow still occurs, but mining countries are grad- products; and the industry is highly concen- ually developing refining capability. This new trated and is expected to remain so. Almost the capacity does not yet appear to be replacing entire downstream processing of PGM ores is the existing refining capacity, but is absorbing controlled by the ore producers, As cobalt and growth in demand, Meanwhile, more diversi- PGMs often occur in the same ore bodies, their fied sources of refined cobalt and PGM prod- processing paths are often the same. ucts are being created and the overall time re- Cobalt and PGMs are consumed in metal or quired to process the ores and produce the chemical form. The ores for both materials usu- metal forms is being shortened.

Chromium Production and Processing

The chromite industry is concentrated in the posits of chromite are found in laterite forma- Eastern Hemisphere and includes a large num- tions and alluvial (placer) deposits. Laterites are ber and variety of firms–big and small, pub- principally found in tropic or warm temper- lic and private sector. These producers are now ate zones and are not exploited today as a shifting from simply mining and trading chro- source of chromite due to general low grades mium ore to producing and trading ferrochro- of contained chromite and its granular form. mium as well. Any analysis of chromium production is The only mineral form of chromium ore is complicated by the multiplicity of ways in chromite. Most of the chromite resources of the which the commodity is reported: chromite, world occur in stratiform deposits—layered, chromite concentrates, contained chromic ox- long continuous seams that are often visible on ide or chromium, recovered chromic oxide or the surface. Podiforms are the second major chromium, etc. Chromite is primarily iron, geologic deposit type for chromite. They are chromium and aluminum oxides with varying small in comparison with stratiform deposits amounts of silica and magnesium.14 Chromite and are discrete, lens-shaped, and usually un- ore is usually defined in terms of its chromic detectable without the use of sophisticated exploration tools unless a portion of the deposit 14Natu ra]]}. occu rrj ng ch rorn ite is a combination of m inera]s happens to appear on the surface. Lesser de- described bj the chemical formula (Fe, Mg)Os(Cr,Al, Fe), O,. 138 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

oxide (Cr2O3) content (rarely more than 50 per- zation (AOD) process for producing stainless cent), as well as its chromium-to-iron ratio and steel. This process allows the use of high- aluminum oxide content. Once mined, chro- carbon ferrochromium (made from chemical mite is usually concentrated to increase its ores) rather than low-carbon ferrochromium chromic oxide (or, chromium) content. These (from metallurgical ores) and has boosted the “chromite concentrates” are sold, in part, on importance of the South African deposits at the the basis of their chromic oxide content. The expense of higher priced metallurgical ores chromium content of chromic oxide is 68 per- from Zimbabwe and Turkey. cent by weight, and the Bureau of Mines de- Foreign sources supply all of the U.S. refines its chromite data as 22 to 38 percent con- 15 quirements for chromite (there has been no do- tained chromium. Throughout the following mestic mine production since 1961) and sup- discussion, an attempt has been made–wher- ply an increasing share of its ferrochromium ever possible—to convert data into chromium needs at the expense of the domestic ferroalloy units so that comparisons can easily be made industry. In 1971 the United States obtained by the reader. In addition, the reader should 87 percent of its chromium imports in the form note that the chromium contained in chromite of chromite and 12 percent in the form of ferro- ores and concentrates (“chromium content”) chromium; by 1981, the imports were roughly is greater than that which will ever be extracted 16 equal. Because no Western Hemisphere ore from the ores by any metallurgical process. producer supplies chromite or ferrochromium Thus, “recovered chromium” is the true esti- in substantial quantities to the United States, mate of the amount that would be available for most imports must transit the Atlantic or Pa- use. cific Oceans. Each chromite mine differs in the type of While 19 countries contributed to the produc- product it offers: the ore grade and its chemi- tion of chromite in 1982, almost 75 percent of cal composition and physical characteristics. the world’s total was provided by South Africa, Historically, the ores have been classified into Zimbabwe, the Soviet Union, and Albania. three groups, reflecting primary end uses: Table 5-4 lists 12 major producers and their re- “metallurgical” (minimum 46 percent chromic serves and production for 1982. South Africa oxide with a chromium-to-iron ratio greater is the principal source of ore for the United than 2:1), “chemical” (40 to 46 percent chromic States, Western Europe, and Japan. Other ma- oxide and chromium-to-iron ratio of 1.5:1), and jor suppliers to the United States are the So- “refractory” (high aluminum content). Other viet Union, the Philippines, and Albania. Turk- considerations affecting end use feasibility of ish and Greek ores are shipped primarily to various ores are their other chemical charac- Western Europe. France is Madagascar’s ma- teristics (e.g., silica content) and physical char- jor customer. Brazil, the only substantial West- acteristics (e.g., size and condition). South Afri- ern Hemisphere producer, exports mainly to can ores are of both refractory and chemical Japan. grades, and tend to be friable (i.e., breakup easily). The Philippine deposits are principally The Soviet Union long played a significant refractory grade, but its ores are used for other role as chromite supplier to the world. In the applications by blending. Turkey’s and Zim- mid-1970s, however, its exports to areas out- babwe’s deposits primarily provide metallur- side the Eastern bloc began to decline, until by gical ores. 1982 they were a fraction of those a decade earlier. Decreasing reserves, increased costs of The distinction between chemical and metal- production, and political control over export lurgical grades has become less important due policies are the major reasons that have been to the adoption of the argon-oxygen-decarburi- suggested for this change.

lsu.s. Department of the Interior, Bureau of Mines, hfinerd leu.s, Department of the Interior, Bureau of Mines; iVfineral Commodity Summaries, 1984. Commodity Profiles 1983: Chromium, p. 4. Ch. 5—Strategic Material Supply ● 139

Table 5-4.—World Chromite Reserves and Production by Country (thousand short tons, gross weight)a

Producer countries currently export between years between 1974 and 1980. For the most 35 and 100 percent of their chromite as ores part, the traditional centers of ferroalloy with ferrochromium production taking an in- production in the industrialized West have decreasing share for consumption by local steel clined in total output and have lost market industries, as well as export. From South shares to vertically integrated ore producers, Africa, exports of chromite ore, as opposed to ferroalloys, were 76 percent of production in 1969 and only 35 percent in 1980. South Africa Foreign Production of Chromium is now the major supplier of ferrochromium In market economy countries, as shown in to the free world market and provided 49 per- table 5-6, chromite production is spread among cent of U.S. imports in 1982. Of the ore producers listed in table 5-4, only Madagascar and many private and some public sector firms. New Caledonia have not yet developed ferro- Central economy countries (the Soviet Union, Albania, and Madagascar) operate their mines chromium production capability. The majority and market production through a central agency. of Zimbabwe’s ores are now converted to ferrochromium before export to the United States, In South Africa, Turkey, and Zimbabwe there is considerable multinational firm involve- Europe, and Japan. In 1982, Yugoslavia—which ment. South Africa’s ore is produced by 10 must import most of its chromite feed—sup- companies, operating some 20 mines along plied 11 percent of the United States’ ferrochro- parallel seams in the Bushveld Complex, The mium imports, placing it a distant second to South Africa. Soviet exports of ferrochromium combined production of Transvaal Mining, Transvaal Consolidated, and Samancor domi- products, like those of ores, are primarily to nates South African output, and the majority the Soviet bloc countries. interest in these firms is held by four of the six Extending this vertical integration trend, sev- local investment houses (“groups”). U.S. firms eral South African firms and one Finnish firm engaged in South African chromite mining are now mine ores, process ferrochromium, and Union Carbide, Metallurg, and International produce stainless steel. Greece’s recent ore ex- Mineral & Chemical. Great Britain is repre- pansion and ferrochromium plant develop- sented in South Africa by investors with long- ment is aimed at achieving a similar vertically term interests in the group houses, while West integrated industry, Table 5-5 shows how the Germany’s Bayer Group owns and operates ferrochromium industry has shifted over 6 one mine. Eighty percent of Zimbabwe’s out- 140 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

Table 5-5.—Ferrochromium Production by Country (thousand tonnes, gross weight)

Percent Percent Percent change Country a 1974 of total 1980 of total 1974-80 BRAZIL ... , ...... 38.1 2.0 93.4 3.2 145 FINLAND ...... 48.1 2.6 49.9 1.7 4 France ...... 111.6 6.0 86.2 2.9 –23 INDIA ...... 15.5 0.8 16.3 0.6 5 Italy ...... 39.9 2.1 40.8 1.4 2 JAPAN ...... 541.6 29.1 427.3 14.4 –21 Norway...... 30.8 1.7 11.8 0.4 –62 SOUTH AFRICA ...... 193.2 10.4 565.2 19.1 193 Spain ...... 20.9 1.1 19.1 0.6 –9 Sweden ...... 100.7 5.4 188.7 6.4 87 United States ...... 305.7 16.4 216.8 7.3 –29 SOVIET UNION ...... 184.1 9.9 698.5 23.6 279 YUGOSLAVIA ., ...... 39.0 2.1 64.4 2.2 65 ZIMBABWE ... , ...... 181.4 9.7 199.6 6.7 10 Other b ...... 12.0 0.6 282.2 9.5 2,252 Total ...... 1,862.5 100.0 2,960.2 100.0 59 aupper case indicates country was ore producer in both years, but did not necessarily cover its needs. bin 198cI: ALBANIA, Czechoslovakia, East Germany, West Germany, PHILIPPINES, Poland, and TURKEY. SOURCE Charles River Associates Processing Capacity for Critmal A4akvials, OTA contract report January 1984

Table 5-6.—Chromite Mining Industry by Country

Ownership Primary national Country Major firms Sector Major holdersa identity Brazil ...... Cia. de Ferro-Ligas da Bahia S.A. Private Various Local (Ferbasa) Finland ...... Outokumpu Oy Government (81) Local Private (balance) Local Greece ...... Hellenic Ferroalloys S.A. Private and Hellenic Industrial Mining & government Investment (HIMIC) (96) Local India ...... Various Private and Local government Madagascar . . . . . Kraoma Government (loo) Local New Caledonia . . Societe de la Tiebaghi Private Inco (55) Canada/U.S. Various French Philippines ...... Acoje Mining Co. Private Local Consolidated Mines Inc.b Private Local Trident Mining & Industry Corp. Private c Local Phil chrome Private Kawasaki (15) Japan South Africad . . . . Transvaal Mining and Finance Private Gencor (100) Local Transvaal Consolidated Land and Private Barlow Rand Local Exploration UCAR Chrome Co. Private Union Carbide Us. Cromore Ltd. & Bathlako Mining Private Samancor e (100) Local Ltd. Waterkloof Chrome Mines Private Metallurg Us. Chrome Chemical S.A. Private Bayer Group W. Germany Lavino S. A., Ltd. Private International Minerals & Us. Chemical Corp. (100) Turkey ...... Etibank Government (loo) Local Egemetal Madencilik A.S. Private Metallgesellschaft W. Germany Turk Maadin Sirketi Private Metallurg Us. Zimbabwe ...... Zimbabwe Mining & Smelting Private Union Carbide (100)., Us. awith approximate percentage of control, if available. boperated by Benquet Corp. (local Philimdne flrrn). CA u,s firm invested in Trident’s OperatiOn in lg~. dThere are six finance houses (the ,GrOUps”) which dominate the south African industry: The Arrglo Arnerlcarl Corp. of S,A. Ltd. (AngioAmer), Gold Fields of S,A Ltd., General Mining Union Corp. Ltd. (Gencor); Rand Mines/Barlow Rand; Johannesburg Consolidated Investment Co. Ltd (JCI); and Anglo-Transvaal Consolidated Investment Co. Ltd. (AngloTC). esamancor is owned by Gencor, Anglo American, and Iscor, which iS a state-owned, integrated steel cOrPOratiCJn. SOURCES” E&MJ 1983 International Wectory of Mining; Bureau of Mines, Mineral Commodity Profile 198.3: Chromium; Office of Technology Assessment Ch. 5—Strategic Material Supply ● 141 put is generated from two mines east of the In the past 20 years, there have been shifts Great Dyke deposit by a firm owned by Union in the relative output among chromite producer Carbide. Albania’s government operates more countries, as shown in table 5-7. Overall, the than a dozen mines located in four areas along group of 12 major producers has steadily in- its eastern border with Greece and Yugoslavia. creased its share of the world market. By 1980 it was providing 98 percent of the world’s to- Among the middle-level producers, Turkey tal production of chromite, up from 90 percent has three major firms with eight mines, along in 1960. During this period, two new producers with numerous smaller (many one-person) (Finland and Madagascar) appeared; they now operations. Half of Turkey’s output, however, hold 5 percent of the world market. While comes from mines operated by a state-owned Albania, Brazil, South Africa, and the Soviet firm. U.S. (Metallurg) and West German (Met- Union have increased their production shares, allgesellschaft) firms are involved in the other the shares of the Philippines, Turkey, and Zim- two important Turkish ventures. There are 125 babwe have decreased. The shift from Turkey chromite deposits scattered among the islands and Zimbabwe to South Africa is due to the ad- of the Philippines, but only 12 mines were oper- vent of the AOD process and to the accom- ating in 1980. The majority of these are locally panying development and aggressive sales by owned and operated; two are considered ma- South African firms of “charge chrome, ” a jor producers. (Japan’s Kawasaki Steel has a mi- form of high-carbon ferrochromium particu- nority interest in a recently initiated beach 17 larly suited to South African ores. sand operation on Palawan Island in the Philip- pines. An American firm operates the mine for The major producer and exporting countries Kawasaki.) Madagascar’s government firm has are likely to maintain their current positions two open pit mines, one of which is a primitive in world production for the near future and can operation accessible only in the dry season. be expected to continue reducing the export Finland’s government-controlled firm produces of ores in favor of ferroalloys. The integration from a mine along a stratiform deposit. Greece of ore mining with ferroalloy production and has one major, primarily government-owned the accompanying decline of independent fer- operation. Three of India’s four firms are pri- roalloy producers may force the remaining vate and locally owned; the fourth is a state nonintegrated ore producers, witnessing shrink- government firm. Canada’s Inco has a controlling interest in New Caledonia’s new chromite 1 TSee tab]e 5.13 for a compa risen of various ferroc hrom iu m mining firm, Societe de la Tiebaghi. products.

Table 5-7 .—Historical Production—Chromite, 1960-80, by Country (thousand short tons, gross weight, percent of world total)

1960 1965 1970 1975 1980 Producer country Tons Percent Tons Percent Tons Percent Tons Percent Tons Percent Albania...... 319 7 342 6 516 8 859 9 1,190 10 Brazil ...... 6 <1 19 <1 30 <1 191 2 919 7 Finland...... 0 0 0 0 133 2 365 4 376 3 Greece ...... 38 1 56 1 29 <1 39 <1 47 <1 India ...... 110 2 66 1 299 4 551 6 354 3 Madagascar...... 0 0 3 <1 144 2 214 2 198 2 New Caledonia ...... 43 1 0 0 0 0 2 <1 2 <1 Philippines ...... 810 17 611 12 624 9 573 6 547 4 South Africa ...... 851 17 1,038 20 1,573 24 2,288 25 3,763 30 Turkey ...... 531 11 625 12 572 9 790 9 431 3 Soviet Union , ...... 1,010 21 1,565 30 1,930 29 2,290 25 3,748 30 Zimbabwe ...... 668 14 646 12 400 6 650 7 608 5 Subtotal ...... 4,386 90 4,971 94 6,250 93 8,812 96 12,183 98 Other ...... 499 10 330 6 422 6 3,324 4 203 2 Total ...... 4,885 100 5,301 100 6,672 100 9,136 100 12,386 100 SOURCE U S Department of the Interior, Bureau of Mines, kfirterals Yearbooks 1964, 1968, 1972, 1977, and 1982 142 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability ing markets, to integrate. Turkey, India, Greece, the near future. Together, these new producers, Albania, and Madagascar, among other coun- while diversifying the world’s sources of chro- tries, are currently expanding or planning to mium, will add only about 5 percent, at maxi- expand or introduce ferrochromium capacity. mum output, to the world’s total production. While some construction has been held up by More important, perhaps, is that new sources weak worldwide demand for ferroalloys, ex- of chromite will be unconventional unless new pansion will probably resume as the steel in- stratiform or podiform deposits are discovered. dustry recovers from the early 1980s recession The Papua New Guinea project, for instance, period. Given chromium’s primary use in steel- may undertake mining from a sand and laterite making, certain producer countries with grow- deposit. ing domestic and export-oriented steel indus- In the long term, two developments could tries—e.g., India and Brazil—may reduce their alter the current pattern of chromite produc- participation in both ore and ferroalloy export tion. Almost 90 percent of the world’s known markets. reserves of chromium are contained in strati- The 1981-82 worldwide recession caused form, as opposed to podiform, deposits. This low-capacity usage in chromite mines (see table is explained in part by the fact that stratiform 5-8) and ferroalloy plants, and low world chromite deposits are continuous over large prices. These market conditions and the com- areas, making estimation of reserves relatively petitive strength of the South African pro- easy and the exploration costs to prove large ducers inhibit the pursuit and development of tonnages of reserves small compared to those new sources of chromite ore. In addition, the for podiform deposits. Scattered, discontinu- only known, nonproducing deposits of chro- ous podiform deposits, on the other hand, are mite are considered marginally economic even difficult and therefore expensive to locate, even under more favorable market conditions due using the most sophisticated geophysical ex- to low grades and/or smallness of overall deposit. ploration techniques.18 This implies that areas In 1982 one new chromite source entered the world market when a firm resumed production lau.s. International Development Cooperation Agency, Trade at a previously abandoned area in New Cale- and Development Program, The Chrmnite Project Definition donia. A project in Papua New Guinea has Mission of the Philippines, February 1983; Charles J. Johnson and been fully explored and evaluated by an inter- Jean A. Brady, Chromite Potential of the Southwest Pacific, a summary of research in progress at the Resource Systems In- national mining firm but is not considered eco- stitute of the East-West Center, Honolulu, Hawaii. August 1982, nomically viable and will not be developed in p, 13. Ch. 5—Strategic Material Supply ● 143 of podiform deposit concentration—e.g., in many ore producers have announced plans to Turkey, Albania, and the Philippines—that add ferrochromium capacity. In some coun- have not been systematically surveyed are po- tries, such as Zimbabwe, this would require ad- tential locations for increased reserves. Loca- ditional ore production, but in many it could tion of these podiform deposits could benefit simply mean a greater diversion of ore produc- from developments in the use of geochemistry tion from exports into ferroalloy production. as a prospecting tool and an infusion of fund- Some of the constraints to increased producing to finance exploration efforts. tion, such as lack of energy sources and transportation facilities, are given below in brief The other possible development is exploita- country-by-country reviews. tion of two deposit types found in the southwest Pacific Basin area—the Philippines, In- Albania donesia, New Caledonia, New Guinea; that is, nickel laterite deposits overlain by low-grade Chromite is one of Albania’s chief export chromite, and alluvial deposits of chromite commodities and most important sources of sands in shallow offshore areas. No laterites foreign exchange.” Since 1976, Albania’s pro- have yet been exploited for chromite, and only duction has been steadily increasing. The na- one beach sand operation has been opened (in tion now ranks as the world’s third largest pro- the Philippines). The mining and extraction of ducer. The last completed 5-year plan period chromium from either type of deposit is pre- (1976-80) called for an output of 1.25 million vented not by a lack of technology, but by eco- tonnes (1.14 tons) by 1980, a goal that was not nomics. An American mining company stud- quite met. The 1981-85 plan calls for a 9.7- ied the possibility of joining in the Philippine percent annual increase in chromite output. beach sand operation and decided that the eco- Albania has one ferrochromium plant in oper- nomics, based on South African competition, ation, with total estimated capacity of 30,000 did not warrant the investment. The U.S. Bu- tons per year. reau of Mines has conducted successful research Albania’s chromite trade patterns have shifted up to the pilot plant stage on processing later- over the past 30 years. Its production once ites ores (from U.S. sources) and concluded served as a supplemental source for Eastern that existing technologies, with adjustments for European nations that relied primarily on ex- the different minerals encountered in foreign ports from the Soviet Union. China bought half ores, could be applied. Analyses at the East- 19 of Albania’s output from the mid-1950s to 1978, West Center concluded that economic min- when relations were broken due to ideological ing of some known laterite resources would re- conflicts. Since then, an increasingly large por- quire a chromite concentrate price of $100 to 20 tion of Albania’s exports have gone to West- $150 per tonne, f.o.b. (The 1984 price for ern countries, Recently, relations with China South African 44 percent chromic oxide chro- have improved, and renewed ties could bring mite ore was $40 to $55 per ton, f.o.b., or $44 21 resumed chromite trade. Yugoslavia has been to $60 per tonne.) Ongoing work by the U.S. an important buyer of Albanian ores for con- Geological Survey on PGMs contained in later- version into ferroalloys for the world market. ites (see the PGM section) offer a possibility of changing the economics of laterite deposits if While Albanian ore reserves and resources PGMs could be mined as a primary or coproduct. are not known with great certainty, current estimates are considered too low to support While expansion of chromite production current and planned production levels. The awaits increased steel industry production, possibility of finding new deposits is likely because large areas have yet to be explored for ~gchar]es J. Johnson, personal communication, August 1983. zOFree on board, means price at embarkation—i. e., without transportation charges, 2]’’AMM Closing Prices, ” American Metal Market, June 21, ZZU. S. Department of the Interior, Bureau of Mines, Minerals 1984. Yearbook, 1981, VO]. 111, p. 42. 144 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability the discontinuous, podiform deposits common (northern Greece, near the Albanian border) to to Albania. serve as feed for a new ferrochromium plant at Tsigeli. This plant, which began operation Brazil in February 1983, was constructed by Outo- kumpu Oy. Until Hellenic Industrial Mining Due to the volume of unexplored area in Bra- & Investment Co. (parent firm of Hellenic zil, the potential exists for improved chromite Ferroalloys) follows through with plans for a reserves but the uncertainty factor is high. Fer- steel plant at Tsigeli, the ferrochromium out- basa is Brazil’s major producer of ore and its put (potential total capacity of about 90,000 sole producer of ferrochromium. Brazil exports tons per year) is destined for the export mar- more of its chromium as ferrochromium than ket, primarily other European Economic Com- as ore. Most has been destined for Japan, which 23 munity (EEC) countries. assisted Ferbasa in the development of its ferrochromium facilities, In 1972 a Japanese con- India sortium formed a joint venture (Mineracao Serra de Jacabina S. A.) with Ferbasa to mine The principal ore-producing area in India is another deposit, in the state of Bahia. The mine in the state of Orissa. In recent years, the In- was opened in 1976 and was Japan’s first cap- dian government has actively encouraged the tive overseas chromite mine. Heavy losses development of the ferrochromium industry to forced the Japanese to sell their 48-percent in- increase the value of its exports and to reduce terest to Ferbasa in 1980. its dependence on imported ferroalloys for growing domestic steel needs. Four new plants Finland were under construction in 1982 for two private firms and one public firm. Ongoing min- Finland’s sole producer of chromite, Outo- ing industry upgrading and geological survey kumpu Oy, is a highly integrated firm that work to improve the ore reserve base is in- mines, explores, trades, smelts, and refines a tended to support the ferroalloy industry rather variety of minerals and produces both ferro- than increase ore exports. production has been chromium and stainless steel. In addition, it is hindered at times in recent years because of involved worldwide in the development and power shortages caused by droughts. Indian sale of mineral industry technology. Currently, power needs are heavily dependent on the all of Outokumpu’s chromite production comes monsoon rains to provide necessary energy. from its Kemi deposit, located in northwestern Transportation bottlenecks and production in- Finland near the Gulf of Bothnia. Another de- efficiencies are traditional constraints to In- posit is being developed for future production dia’s assuming a greater role in providing and would allow, under the proper economic world needs. conditions, a 25-percent increase in Finland’s output. A constraint on expansion is the need Madagascar to import energy resources—mainly petroleum. Shipping during the winter months is often Chromite is this country’s most important hampered by frost and ice conditions. mineral commodity, and all production is for export. Although feasibility studies have been Greece conducted, no ferrochromium plant has yet been built, owing to unresolved financial and An expansion in chromite mining and in de- technical problems. The necessary power velopment of a ferrochromium industry has source, a hydroelectric dam, was completed in been underway in Greece since 1976, when 1983. Two open pit mines, each with a capac- government geologic research verified that ity of 300,000 tons of chromite ore per year, chromite resources were adequate for ferro- are operated. The Adriamena mine was devel- chromium production. Hellenic Ferroalloys oped by the French firm Comina before it was S.A. has expanded an underground mine at the Skoumtsa deposit in the Mt. Vourinos region Zscommon Market. Ch. 5—Strategic Material Supply ● 145 nationalized in 1976. Its ores must be processed mining and smelting operations. A hydroelec- to reduce an unacceptably high phosphorus tric powerplant has been considered but is not level. The newer mine, Befandriana, is a primi- yet planned. tive setup consisting of several small open pits and no concentrator, Ores from this mine do Philippines not have a high phosphorus level and are simply screened to produce two separate grades, The Philippines is the principal source of During monsoon season, December to April, refractory grade chromite for the Western world. The Coto deposits in the Zambales dis- the Befandriana pits cannot be operated. Transportation from Adriamena is by truck trict on the main island of Luzon are the largest and railroad to the port of Toamasina (Tamatave). such group in the world. Reports on the Philip- pines continually predict reserve depletion, but From Befandriana, ores are trucked about 100 further exploration has always extended mine miles to Narinda Bay for shipment, Due to the shallowness of the bay, ores must be trans- life by another 10 years. Two major firms con- ferred by small vessels to ocean freighters; duct operations at Zambales. Consolidated’s loading of one shipment can take 3 weeks. Masinloc mines are operated by the Benquet Corp. and contribute 95 percent of the coun- The area has the potential to expand produc- try’s refractory ores; Acoje Mining is the coun- tion easily by 50 percent due to the extent of try’s major metallurgical ore producer. A third the reserves. Transportation is the weakest firm, Trident Mining & Industrial Corp., has link; lack of sufficient railroad cars, poor roads, produced metallurgical ores from mines on the and the undeveloped port at Narinda Bay im- southern Palawan Island. Its operations have pede expansion. While France is Madagascar’s been shut down since 1981 due to financial major customer for chromite, one U.S. ferroal- problems. Representatives from Trident were loy firm, Interlake, had a 2-year contract, end- in the United States in 1983 seeking new capi- ing in 1982, to take all of the annual output of tal to resume production and reportedly se- the Befandriana mine. The contract has not cured it. In late 1983, Acoje was seeking debt been renewed due to the weak market for fer- relief from the Philippine government and the roalloys. private sector in order to maintain operations. These financial difficulties will delay plans for New Caledonia exploration and new mine development. All of New Caledonia’s lateritic nickel depos- Two ferrochromium plants in the Philippines its contain chromite. Much of the chromite, produce primarily for the Japanese market. The however, occurs in low grades and is currently newest plant began operating in 1983, and considered uneconomical. Two firms operate some startup problems caused by erratic power mines from podiform deposits in New Cale- supplies and ore quality were reported. donia. Societé de la Tiebaghi started full-scale Theoretically, the extensive ultramafic for- production in 1982, with an output of 50,000 mations of the Philippines could hold up to 105 tons of chromite concentrates (containing 51 million tons of 32-percent chromic oxide in percent chromic oxide), eclipsing Calmine’s 24 laterite formations. Extensive, systematic geo- 2,000 tons-per-year operation. Capacity of the logical field and exploration work, however, Tiebaghi mining operation is 85,000 tons per must be completed in order to prove the theory. year of concentrates. The new mine, for which development work began in 1976, underlies a South Africa Union Carbide operation that closed in 1962. The island has no domestic energy source, cre- The Bushveld Complex in the Transvaal ating a potential barrier for any expansion. Province is the largest known chromite deposit Societe le Nickel (SLN), the large nickel producer on the island, already consumes 85 per- Z4The Chromjte Project Definition Alission of the Phili/]pines, cent of the country’s industrial electricity in its op. cit. 146 . Strategic Materials: Technologies to Reduce U.S. Import Vulnerability in the world. Most of the chromite is produced pansions to handle such increased output in two districts within the complex: the East- could take 4 years.25 ern Belt (Lydenburg district, five mines) and Western Belt (Rustenburg district, eight mines). Soviet Union Competition among the many firms and mines The Soviet Union is still the world’s second for increased market shares is strong. The largest chromite producer, although its ore ex- slackness in world chromite markets, rising ports have declined during the past decade. costs, and stable prices in recent years have Most of its deposits are podiform and located caused some of the least efficient mines to be in the Ural Mountains. Virtually all its metal- placed on “care and maintenance” status. lurgical-grade ores originate in the Western The UG2 (upper group seam of the Bushveld) Kazakhstan (southern Ural region). Ninety per- chromium-platinum reef in Rustenburg is cur- cent of production comes from the Donskoye rently mined for PGMs by Western Platinum mining and concentration complex in Khrom- and has chromite resources estimated by South Tau. A new underground mine there started Africa to total 650 million tonnes. Tapping cer- producing in 1982 with an expected ore capac- tain sections of this reef for chromium requires ity of 2 million tons per year by 1985. new metallurgical and smelting techniques in order to separate and recover the individual Turkey minerals. The South African government’s Exports of ore from Turkey have declined in Mintek (Council for Mineral Technology, a re- recent years as a result of increasing internal search arm of the Ministry of Mines and En- consumption, world market oversupply, and ergy) has conducted research and development an inability to meet price competition. Turk- and plasma technologies, which provide high- ish podiform deposits are widely scattered temperature processing, have been tested. (occurring in 40 of the country’s 67 provinces), Western Platinum has reportedly opened a limiting the output and mechanization poten- smelter in 1984 capable of processing these tial of many mines. The presence of podiform complex ores and is considering the addition rather than stratiform deposits, however, of a ferrochromium plant. makes the total resource picture uncertain be- As in many areas, transportation bottlenecks cause such pockets are difficult to locate. With could limit any effort to rapidly increase out- economic incentives, a 50-percent increase in put from the Bushveld. Ores from the mines production (a return to the 1975 production are currently trucked 5 to 10 miles to a rail- level) could take place in 3 to 12 months. Any head. Once there, the ores are moved to the further increase would be limited by available heavily used port of Maputo in Mozambique and willing investment and would require an (480 miles from the Western Belt and 350 miles increase in reserves. Constraints would include from the Eastern Belt). Perennial congestion lack of mining equipment and transportation at the port has been relieved by recently in- bottlenecks. The main ports (Mersin and Isken- stalled mechanized facilities. The port can now derun, on the Mediterranean Sea) are 400 miles handle 2,500 tonnes of chromite per hour and from the mineheads and have maximum load- store up to 1.1 million tonnes. Alternate ports ing capacities of 3,000 tonnes per day, each. in South Africa, at Durban and Richards Bay, Several ferrochromium plants are now on- could be used if Maputo was not available (for line in Turkey, and additional capacity (to a instance, due to transborder conflicts) although total 150,000 tons per year) is expected by 1986. significant lead-time would be required to ac- Etibank, the state-owned mining company that commodate chromite at these ports. It has been estimated that for a typical underground South Zschar]es River Associates, Processing Capacity for Crjtjca! African mine, 50-percent expansion would re- Materials, contractor report prepared for the Office of Technol- quire little more than 1 year; however, port ex- ogy Assessment, January 1984. Ch. 5—Strategic Material Supply Ž 147 supplies half of Turkey’s chromite output and Ramu River, The mineral deposit is in three all of its ferrochromium, has a reputation for layers, with chromite in the top two layers, making policy decisions removed from politi- Estimates give a reserve of 80 million to 100 cal influence, Under the most recent govern- million tons of ore with about 9 percent metal- ment it has become very active in seeking in- lurgical grade chromite in the first, sandy clay vestment partners from the private sector, layer, and about 81.5 million tons at 6 percent Owing to market conditions, most of Turkey’s in the second. These 14 million tons of chro- existing private producer mines, which mainly mite would place Papua-New Guinea alongside contribute ores for export, were closed during most of the major ore-producing countries, if 1982. Overall, Turkey’s chromite industry classified as a reserve and assuming a chromic could improve its position in the world mar- oxide content of 46 percent. Nickel (1.14 per- ket with an infusion of capital and substantial cent] and cobalt (0.16 percent) are concentrated technology transfer to upgrade its mining and in the third layer of the deposit. In 1983 Nerd processing procedures. Resources Corp. (U. S.) held a 69.5-percent share of the mining concession and Mount Isa Zimbabwe Mines Ltd. (Australia), the balance. (Mount Isa Mines is owned by the Australian corporation Most of the chromium reserves in Zimbabwe M.I.M. Holdings, in which Asarco Inc. holds lie in the Great Dyke, an elongated, elevated a 49-percent interest.) Technical viability of the geological structure that runs 300 miles or project has been confirmed, and economic more in a northeast-southwest direction across studies were conducted in 1982. An executive the country, However, about 80 percent of cur- of Nerd Resources stated in early 1984 that the rent output comes from the Selukwe mines in earliest possible date to start the development related lode deposits along the Great Dyke’s phase of the project was 2 years away due to southern section. The Dyke’s thin seams re- the depressed markets for both chromite and quire labor-intensive mining methods and are cobalt, and that once a decision to go ahead underdeveloped due to high costs. The Selukwe was made—if ever—it would take 5 years to mines are operated by Union Carbide’s Zim- 26 reach the production phase. babwe Mining & Smelting Co. Since Western trade sanctions against the importation of Rho- The first phase of production will be to mine desian (now Zimbabwean) chromium were the chromite, which can be recovered from the lifted in 1979, the emphasis has been on export- ore by gravity concentration methods, Nickel ing ferrochromium rather than ores. Union and cobalt, which will require a hydrometal- Carbide and Anglo American (of South Africa) lurgical acid leaching process for recovery, will own the two ferroalloy plants in Zimbabwe. be mined in the second stage of the project. An- Their combined ferrochromium capacity in nual production of chromite concentrates has 1980 was 240,000 tons per year, and expansion been estimated at 500,000 tons. Japan, Austra- plans have been announced. As with most lia, and the United States are considered the chromite mining areas, transportation is a ma- most probable markets. The U.S. Bureau of jor physical barrier to increased production. Mines tested the chromite concentrate prod- Zimbabwe would prefer to use direct rail uct and, using conventional technology, pro- routes through black Mozambique, but while duced high- and low-carbon ferrochromium.27 the border was closed between 1975 and 1980, the rail link deteriorated, forcing reliance on CANADA–BIRD RIVER routes through the ports in South Africa. Of hundreds of documented chromite occurrences in Canada, few contain measured re- Potential Producers Z13R ichard Steinberger, Executive Vice-President, Nerd Re- PAPUA NEW GUINEA-RAMU RIVER sources, Dayton, OH, personal communication, February 1984. 27’’More on Ramu Ri\er,” Mining JournaI, h4ar. 19, 1982, p. A nickel laterite deposit containing chromite 211 and U.S. Department of the Interior, Bureau of Mines, and cobalt has been under development at Minera]s Yearbook 1982, \ol. IJl, p. 1237. 148 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability sources. One deposit, considered the most 910 million tons of shipping grade chromite likely candidate if development plans arise, is ores normalized to 45 percent chromic oxide, Bird River in Manitoba, Resources for the four or 279 million tons of chromium. Bird River properties total 4 million tons at 18 29 In a Minerals Availability Appraisal pub- to 25 percent chromic oxide and 15 million lished in 1982, the U.S. Bureau of Mines con- tons at 5 to 7 percent chromic oxide. cluded that none of the U.S. identified re- The low grade and chromium-to-iron ratio sources of chromite in stratiform or podiform of these deposits have mitigated against their deposits were economically recoverable at Jan- development in the past. Research into tech- uary 1981 market prices ($128 to $144 per nologies to process the ores has determined tonne for a metallurgical grade product, CIF30 that only with high-cost chemical treatment in the Eastern United States), Instead, produc- can a sufficiently high-grade product be at- tion at that time would have required a mini- tained to meet conventional specifications. Re- mum price of $237 per tonne, almost double cent research by the Ontario Research Foun- the prevailing market price. dation has produced a chromium carbide that Laterite deposits were not analyzed in the could be used to produce chromium metal or Bureau of Mines’ study in terms of potential be used as an alloying agent. production because of “technological and cost uncertainties.“ 31 Unlike laterite deposits, the Domestic Production of Chromium other deposit types have previous production Known resources of domestic chromite are history in the United States. the stratiform deposits in the Stillwater Com- The mining and beneficiation methods upon plex of Montana and the small podiform bod- which the study was based were those meth- ies in northern California, Oregon, and Alaska. ods used in past domestic production of chro- Chromite is also associated with nickel-cobalt mite ores; no new technologies were consid- laterite ores of northern California and south- ered. For each deposit included in the appraisal ern Oregon and found in placer beach and (table 5-11), the engineering and cost (capital stream sands located in Oregon, Maryland, and and operating) analyses were followed by an Pennsylvania. economic evaluation using a 15 percent rate As tables 5-9 and 5-10 show, the United of return on the capital investment. Some costs States has an estimated 337 million tonnes (371 were not considered—e.g., the time lags in- million tons) of identified resources28 of chro- volved in filing environmental impact state- mite with chromic oxide grades ranging from ments, receiving necessary permits, financing, 1 to 25 percent (or, 13.8 million tons of con- etc., as it was felt that such delays “would be minimized in consideration of strategic avail- tained chromium). Of these identified re- 32 sources, 80.4 million tonnes (88.6 million tons) ability.” of chromite are considered to be demonstrated Up to 235,000 tons per year (table 5-12) of resources (a subdivision of identified resources contained chromium could theoretically be with the highest degree of geologic certainty) produced from the most probable U.S. sources. containing 3.9 million tons of chromium. As This assumes simultaneous production and a comparison, South Africa is credited with a would most likely require government incen- “reserve base” (total demonstrated resources tives, Mine lifetimes range from 3 to 46 years. but excluding the subeconomic tonnages) of ———— ——.—— ‘“’’Identified” resources are those for which location, grade, 28Jlm Lemons, Jr., et a]., U. S. Department of the Interior, Bu- quality, and quantity are known or estimated from specific ge- reau of Mines, Chromium Availabilit~~—Domestic: A Minerals ologic evidence. Identified resources include economic, mar- AvailabiliteV System Appraisal, Information Circular No, 8895, ginally economic, and subeconornic components. To reflect ~ary- 1982, p. 1. ing degrees of geologic certainty, identified resources are divided Socost, insurance, and freight paid by the shipper. 3] into “demonstrated” [both measured and indicated) and “in- Ibid., p. 1. ferred” resources. szIbid., p. 7. Ch. 5—Strategic Material Supply • 149

Table 5-9.—U.S. Chromite Deposit Resources

Demonstrateda Identified (thousand tonnes) (thousand tonnes) Grade Mineralized Contained Mineralized Contained

State Property (percent Cr2O 2) material Cr2 0 2 material Cr2O 2 Alaska ...... Claim Point ., ...... 17.6 267 47.6 267 47.6 Red Bluff Bay ...... 12,0 30 3.6 30 3.6 Red Mountain ...... 25.8 0 0.0 183 47.2 California ...... Bar Rick Mine ...... 7.6 5,065 384.9 44,512 3,382.9 McGuffy Creek ...... W w w w w North Elder Creekb ...... 11.9 o 0.0 104 12.4 Pilliken Mine ...... 5.0 0 0.0 30,975 1,548.8 Seiad Creek/Emma Ball . . 5.0 4,546 227.3 10,826 541.3 Georgia ...... Louise Chromite ., ...... 4 131 .6 131 .6 Maryland- Pennsylvania . . West Placer Areac ...... 1.4 729 10.1 729 10.1 Montana ...... Stillwater Complex: Mouat/Benbow ...... W w w w w Gish Mine ...... 15,0 500 75.0 854 128.1 North Carolina . . . North Carolina Areab . . . . 1.9 108 2,1 178 3.5 Oregon ...... Southwest Oregon Beach Sands ...... 5.6 10,827 604.1 45,772 2,554.1 Pennsylvania . . . . Renshaw Placer ...... 1.7 209 3.5 209 3.5 Wyoming...... Casper Mountain ...... 2.5 3,774 92.5 3,774 92.5 Total d NA 46,604 5.620,6 194.019 19.333.2 ...... –7 W—Withheld to avoid disclosing Individual company proprietary data, included In total NA—Not applicable aDomestlc chromlte reserve base blncludes 3 deposits that have been combined fOr anal Ysls clncjude~ 13 deposits that have been combined for analYsls dlnc~udes resources withheld to avoid disclosing Ind!vldual cOm Pany ProPrletaV data

SOURCE U S Department of the Interior, Bureau of Mines Information Circular No 8895, 1982, Chrorn(um Ava//abf/ify—CJomes flc A M/nera/s System Appra~sa/, tables 1 and 2, pp 4 and 5

Table 5.10.—U.S. Chromite Laterite Deposit Resources

Demonstrated Identified (thousand tonnes) (thousand tonnes) Grade Mineralized Contained Mineralized Contained

State Property (percent Cr2O 2) material Cr2O 2 material Cr2O 2 California ... , . . . Gasquet Laterite , ...... W w w w w Little Rattlesnake ., . . . . . W w w w w Lower Elk Camp ...... W w w w w Pine Flat Mountain ...... 2.8 6,382 178,7 15,052 421.5 Red Mountain ...... W w w w w Oregon ...... Eight Dollar Mountain . . . 1.1 0 0 13,023 145.9 Red Flat ...... W w w w w Rough and Ready ...... 1.5 0 0 5,931 90.7 Woodcock ...... 1.3 0 0 8,587 112.5 Total ...... NA 33,813 640.0 143,126 2,995.4 W—Wtthheld to avoid disclosing Individual company proprietary data, Included In total NA—Not appllcab(e SOURCE U S Department of the Interior, Bureau of Mines Information Circular No 8895, 1982, Ctrromfum Avai/abi/ity—Domestic A L4inerals System Appra~sa/, tables 1 and 2, pp 4 and 5 150 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

Table 5-11 .—Proposed Mining and Processing Methods U.S. Chromite Deposits

Annual Minimum capacity Type of lead time tonnes Mining Beneficiation Property State deposit years of ore method method Claim Point ...... Alaska Podiform 4 18,000 Open pit Gravity Red Bluff Bay ...... Alaska Podiform 2 9,000 Open pit Gravity Red Mountain ...... Alaska Podiform 2 18,000 Overhand shrinkage Gravity Bar Rick Mine ...... California Podiform 2 350,000 Sublevel slope Gravity McGuffy Creek ...... California Podiform 2 787,000 Open pit Gravity North Elder Creeka...... California Podiform 1 25,000 Open pit Gravity Pilliken Mine...... California Podiform 2 2,100,000 Open pit Gravity-magnetic Seiad Creek/Emma Bell. . . .California Podiform 3 562,500 Open pit Gravity Louise Chromite...... Georgia Placer 1 25,000 Open pit Gravity- electrostatic West Placer Areab ...... Maryland- Placer 1 50,000 Placer mining Gravity- Pennsylvania electrostatic Stillwater Complex: Mouat/Benbow ...... Montana Strati form 3 525,000 Shrink slope Gravity Gish Mine ...... Montana Strati form 2 175,000 Shrink slope Gravity North Carolina Areaa ...... North Carolina Placer 1 25,000 Open pit Gravity- electrostatic Southwest Oregon Beach Sands ...... Oregon Placer 2 1,000,000 Strip Gravity-magnetic- electrostatic Renshaw Placer ...... Pennsylvania Placer 1 50,000 Open pit Gravity- electrostatic Casper Mountain ...... Wyoming Strati form 3 377,260 Open pit Gravity alncludes 3 deposits combined in the analysis blncludes 13 deposits combined in the analYsiS. SOURCE: US Department of the Interior. Bureau of Mines Information Circular No. B895. 1982, Chromium Avai/abi/iW-Domestic: A hf/riera/s Avai/ab//ifv. Svstem. AD- praisal, ’tables 1 and 2, pp. 4 and 5.

All of these areas, with the exception of Gas- $124 to $147 per ton.)33 Approximately 400,000 quet Mountain in California, have been mined tons of the ore produced—half of the contract— previously, providing a backlog of information remained unused and was sold by the govern- and infrastructure upon which to base oper- ment to Metallurg, Inc., in 1974 for $7.64 per ating decisions. Gasquet Mountain has bene- ton. In 1984, this “stockpile” sat in the town fited from considerable recent commercial of Columbus, nearby the Stillwater mine site. evaluation. Chromite was also mined from Stillwater and The most recent U.S. production of chromite from podiform deposits in Alaska under World was from the Gish and Mouat/Benbow Mines War II production subsidies. At Stillwater, de- at Stillwater from 1953 until 1961, subsidized velopment efforts began in 1941 under the Re- by the Federal Government under the Defense construction Finance Corp. ’s Metals Reserve Production Act. The contract with the Ameri- Co. After spending $15 million on the develop- can Chrome Co. called for 900,000 tons of ment of two mines (only one of which actually chromite ore (36 to 38 percent chromic oxide) started producing), all operations were closed over an 8-year period (an average annual rate down in 1943 when foreign trade routes be- of 113,000 tons), during which the government came more secure. Domestic chromite produc- advanced $1.8 million for machinery and tion reached a historic peak of about 140,000 equipment and guaranteed the company a tons in 1943, and consumption that year was price of $34.98 per ton of ore (about $140 per —.- ton of chromium). (During the period 1954-61, ssu.s. Department of the Interior, Bureau of Mines, ~jnera] the weighted average yearly price ranged from Facts and Problems, 1975 edition, p. 248. Ch. 5—Strategic Material Supply . 151

Table 5-12.—PotentiaI U.S. Chromite Production

Demonstrated resources Estimated annual production Chromium Chromium Ore content Ore content Estimated Known resources by Grade (thousand (thousand (thousand (thousand minelife deposit type (percent Cr2O3) tonnes) tonnes) tonnes) tonnes) (years) Stratiform: Stillwater Complex: Mouat/Benboe ...... w w w 525 72a 46 Gish ...... 15.0 500 51 175 16 3 Pod/form: California: Bar Rick Mine ...... 7.6 5,065 262 350 16 13 McGuffy Creek...... w w w 788 NA 4 Pilliken Mineb...... 5.0 30,975 1,053 2,100 65 4 Seiad Creek/Emma Bell . . . 5.0 4,546 155 563 17 9 Beach Sands: Southwest Oregon ...... 5.6 10,827 412 1,000 35 11 Proven Chromite Grade reserves concentrates (percent (thousand (thousand Laterite chromium) tonnes) tonnes) Gasquet Mountain...... 2.0 16,000 320 50 14 18 aEStim’ted assuming Is percent wade blnferred resources only W—information withheld for proprietary reasons NA—Date not available SOURCES Resources, ore grades, proposed mining rate, mlnelifes from US Department of the Interior, Bureau of Mines, Chromium Avai/abi/ify–Domestic, lC8895/1982 Gasquet Mountain data provided by California Nickel Corp; balance calculated by OTA.

Chromium data 1979 1982 Reported chromite consumption (tons) (22 to 38 percent chromium) . . . . . 1,209,000 545,000 Apparent chromium consumption (tons) ...... 610,000 319,000 SOURCE U S Department of the Interior, Bureau of Mines, M/nera/ Commodity Summaries, 1984

965,000 tons. More than 200,000 tons has been Stillwater Complex reported as domestic “shipments” for 1956, but The chromite deposits at the Stillwater Com- some 45,000 tons of this amount came from plex in Montana are the largest known, single government stockpiles. potential U.S. source of chromium. Although Before 1958, scattered small chromite depos- there are no current plans to resume commer- its were mined in California, Oregon, and cial production of chromite at Stillwater, these Washington. The Pilliken Mine near Sacra- deposits would most likely be the first to be mento, CA, for instance, was operated inter- considered for production during any emer- mittently from 1950 to 1957. Total production gency situation. Several companies, including from these mines was, however, never more Anaconda Minerals Co., which has patented than 45 percent of the Stillwater Complex pro- mineral holdings on the Mouat/Benbow Mine, duction in the same years.34 have been involved in the area since the late 1960s in investigating various Stillwater properties for their potential mineral values. (See the domestic PGM section, p. 196 for details.) sqFor more information about past domestic production see, Silverman, et al., op. cit., and The StiHwater Citizen-Sun, Apr. Available resource data for the two chromite 26, 1974, sec. 2, p, 8. deposits, the Gish and Mouat/Benbow mines, 152 Ž Strategic Materials: Technologies to Reduce U.S. Import Vulnerability are not complete since for proprietary reasons order to reclaim any substantial tonnages of the only the numbers for the Gish mine have been desired metal. published (see table 5-9). The Mouat/Benbow deposit is reportedly the much larger of the Other Potential U.S. Sources two. This is evident from the fact that the Bu- Other chromite deposit types in the United reau of Mines projected a mine life for the States are the podiform bodies in northern Cali- Mouat/Benbow deposit of 46 years with a fornia, southern Oregon and Alaska and beach production rate of 525,000 tonnes (477,000 sands in Oregon, Maryland, and Pennsylvania. tons) of ore per year; whereas, production at Table 5-12, using the Bureau of Mines’ analy- the Gish mine was projected at a third of that sis, shows the estimated production from the rate for only 3 years. most likely candidate areas, California’s podi- Combined potential output of 65,000 tons of forms and Oregon’s beach sands. contained chromium (table 5-12) from these Although the chromium content of the pos- Stillwater mines amounts to about 11 percent sible output of the Pilliken Mine was calculated of U.S. needs when compared with a peak con- as the largest, the information base is the sumption year such as 1979 or 20 percent when weakest since all resources fall into the “in- compared with 1982. ferred” category. Except for the Bar Rick Mine, these podiform properties have short mine lifes Gasquet Mountain Project which reduces their economic viability, California Nickel Corp. has proposed to pro- The Oregon beach sands contain a compara- duce nickel, cobalt, and chromium from a tively large amount of identified resources. lateritic deposit at Gasquet Mountain in north- These resources are dispersed over a large area ern California, The project’s economic viability (some 5,000 acres) which is now either public is dependent on the market prices of all three beaches or land used in Oregon’s forestry in- metals, and in 1982 the firm was using a chro- dustry, The low grades present means that a mite price of $40 per ton in its economic evalu- lot of material would need to be displaced in ations, The estimated output (50,000 tons per order to acquire the contained chromite, dis- year of chromite concentrates with 14,000 tons turbing not only the beaches but an established of contained chromium) would be small rela- Oregon economic base. tive to the other metals involved in the project and in relationship to Stillwater as analyzed The Alaskan podiform deposits are consid- by the Bureau of Mines. However, this is the ered the most expensive to mine, due to their only domestic mining project which includes location, low grades and short mine lifes. One chromium that has been under recent scrutiny area of podiform deposits, stretching south by a mining firm, Perhaps of greater impor- from Anchorage through the Kenai Peninsula tance is the processing technology that this along the Chugach Arch, may contain suffi- firm is developing for recovery of metals from cient chromite for several years supply, but is laterite ores, Such ores have the possibility of not of commercial interest due to the high cost being a future worldwide source of metals such of production. as Anaconda Minerals explored as chromium, nickel, cobalt, PGMs, etc. (The one such deposit area, Red Mountain near Sel- Gasquet Mountain Project is discussed in more dovia, as a possible PGM resource but results detail in the cobalt section on p. 170, See also have proved disappointing. Conceivably, chro- the following chromium mining and process- mite might be a byproduct of any future PGM ing technologies section on p. 153.) production there, Other potential occurrences of chromite in Alaska are at Kanuti River, Red Lateritic deposits generally offer one of the Bluff Bay, Baranof Island, in southeastern lowest metal grades, and chromite at Gasquet is thought to be extremely erratic. Exploitation ssrohn Mulligan, Chief, Alaska Field Operations Center, Bu- thus requires considerable movement of ore in reau of Mines, persona] communication, July 9, 1984, Ch. 5—Strategic Material Supply ● 153

Alaska, and the western Brooks Range depos- preach to the mining of hardrock chromite its. Present information on these occurrences with explosive fracturing or to the mining of is inadequate to suggest any level of expecta- lateritic deposits that are inaccessible by open tion.36 After surface occurrence investigations pit mining. in the Kanuti River area, the Bureau of Mines The minimum grades required for metallur- recommended in 1983 that subsurface explora- gical use (at least 46 percent chromic oxide and tion be employed to establish the extent of chro- 37 a chromium-to-iron ratio greater than 2.5:1) mite occurrences . have not ordinarily been obtained from the Domestic Mining and Processing Technology Prospects processing of domestic chromite deposits. Low-cost methods of beneficiating domestic Rather straightforward mining and beneficia- deposits to an acceptable concentrate have tion technologies are applicable for the exploi- been studied for a number of years by the Bu- tation of U.S. chromite deposits, and their reau of Mines, The methods have involved composition —while primarily chemical grade combinations of gravity and electrostatic sep- —is suitable for a variety of current uses. aration plus flotation to obtain a higher chro- Future breakthroughs in beneficiation and mium content, and leaching to reduce the iron smelting technologies might lead to the possi- content, The Bureau of Mines has recently in- bility of mining of lower grade ores common troduced a chromite beneficiation program to the United States. Plasma arc furnace tech- that has provided encouraging results, Re- nology (see the following processing section), search has not yet provided for an economic for instance, uses finely ground chromite as is method of upgrading, however, A direct smelt- found in laterite deposits. Successful applica- ing process for Stillwater Complex ore has tion of new methods would not necessarily been investigated; this would provide a high- make U.S. deposits more competitive with iron alloy, but still not comparable in grade and other world deposits, unless innovations can cost with imported ferrochromium. be selectively applied to U.S. deposits. The Albany Research Laboratory of the Bu- Improved mining technology offers several reau of Mines has been exploring the recov- possible applications for chromite ore mining, ery of chromite from the residue of laterites In hardrock ore bodies, open pit and under- that have been chemically processed to recover ground mining systems would be similar to cobalt and nickel. Lateritic ores containing those used in other ore bodies; the trends chromium are ordinarily roasted and leached, toward increased mechanization and to con- An experimental plan by the Bureau of Mines tinuous mining systems would apply, The new for the recovery of chromium from laterite vertical crater retreat system for underground ores, as at Gasquet Mountain, involves roasting mining would be especially applicable in nar- and leaching after gravity beneficiation, with row and steeply dipping veins and podiform final electrowinning for nickel and cobalt and bodies, In shallow lateritic material and beach final recovery of chromium from the leach res- placer type sands, open pit mining would very idue. The concentrate produced contains about likely involve continuous mining by bucket 35 percent chromic oxide. Future research and wheel machines or by shovels without the need experimentation in chromite recovery and for drilling and blasting, chromium extraction will most probably in- Solution mining of chromite is only in the volve such hydrometallurgical processing. conceptual stage, but could provide an ap- Another Bureau of Mines project is evaluat- —. ing the low-grade podiform deposits of Califor- 3GU.S, ~eI)a~ment of the Interior, Bureau of Mines, Critical and Strategic Afinerals in Alaska, Information Circular No. 8869, nia, These ores range from 3 to 10 percent 1981. chromic oxide and contain tonnages that can sTjeffrek, y, Foley and Mark M. McDermott, U.S. Department of the Interior, Bureau of Mines, Podiform Chromite Occur- potentially be mined by open pit and under- rences in fhe Caribou Mountain and Lower Kanufi River Areas, ground methods. Preliminary results suggest Central Alaska, Information Circu]ar No. 8915, 1983. that these podiform ores can be concentrated

38-844 0 - 85 - (5 : QL 3 154 • Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

to a range of 37 to 45 percent chromic oxide; Ferrochromium and with improved gravity process techniques, High-carbon ferrochromium is usually pro- a marketable concentrate might be produced duced in a submerged arc electric furnace. if smelter facilities were located nearby and These furnaces, shown in figure 5-2, use ver- local steel markets were accessible to the tical electrodes that are suspended into the product. charge material (principally chromite and coke, a form of coal). A pass of electric current Foreign and Domestic Chromium Processing through the charge provides the heat to sustain The major use of chromium is as an alloy- a reaction in which the oxygen content of the ing agent in chromium and stainless steels and chromite is removed (by combining with the in superalloy. In steels, chromium is con- carbon in the coke) and an iron-chromium al- sumed primarily in the form of a chromium fer- loy is produced. roalloy, principally high-carbon ferrochromi- Low-carbon ferrochromium can be produced um or “charge chrome. ” In the production of from high-carbon ferrochromium or from chro- superalloys with little or no iron content, a mite ores. In the Simplex process, an oxide ma- metallic form of pure chromium is consumed. terial is mixed with the ferrochromium and The various types of chromium ferroalloys and heated in a vacuum furnace, where the carbon metals and their compositions are shown in ta- and oxide combine and are driven off, reduc- ble 5-13. ing the carbon content of the ferrochromium. Figure 5-I provides a simplified flow chart In another process, silicochromium (a silicon- of chromium from ore to industrial use. Ore, chromium alloy) is first produced in a sub- as produced from today’s mines, contains from merged arc furnace and then used to reduce 35 to 48 percent chromic oxide. An exception the carbon content of ferrochromium in an is Finland which has the lowest grade eco- open arc furnace. (In open arc furnaces the electrodes are not suspended deep within the nomic deposits at 27 percent Cr2O3. Where necessary, mined chromite is concentrated (grav- charge). ity or magnetic separation is usually employed Ferromanganese (see manganese processing to increase the chromic oxide or reduce the sili- section) is produced in electric submerged arc con content), sized, and classified at the mine furnaces similar to those used for ferrochro- site. This concentrate, typically 40 to 46 per- mium, and there is a degree of convertibility cent chromic oxide (27 to 31 percent contained between chromium and manganese ferroalloy chromium), is then processed by smelting into furnaces. The United States has, consequently, ferrochromium products or begins a multistep some flexibility in production capacity for both process for conversion into pure metal. ferroalloys. Ferromanganese production requires a wider electrode spacing than that used Table 5-13.—Composition of Chromium for ferrochromium, which has a less conduc- Ferroalloys and Metal (weight percent) tive slag. Other important differences in design Type Chromium Carbon Silicon parameters of the furnaces include electrode Ferrochromium: diameter, hearth diameter, crucible depth, and High carbon ...... 52-72 4.0-9.5 3-14 voltage range of the transformer. A ferroman- Charge...... 58-60 6-7 4-5 ganese electric furnace could technically be Low carbon, ...... 60-75 .025-.75 1-8 Silicon ...... 34-42 .05-.06 38-45 used to produce ferrochromium. By techniques Metal: such as modifying the composition of the slag Aluminothermic to decrease its resistance, the furnace would Vacuum melting grade . . 99.5 .05 .04 be operating at less than optimum conditions Carbothermic (chrome 98) . z98.5 NA NA Electrolytic , ...... 99.1 .02 .01 and would probably not be economic. Modifi- NA—Not available. cation of these furnaces for alternative uses SOURCE: Ferrochromlum content, U.S. Department of the Interior, Bureau of may be physically and process constrained by Mines, L41nerals Commodity Profile 1983.’ Chrormurn. Metal content, appropriate manufacturers. the existing pollution abatement equipment. t + Sodium chromate

Sodium bichromate 4 I

SOURCE: Charles River Associates, Processing Capacity for Critica/ Maferia/s, OTA contract report, January 1984

Figure 5-2.—Submerged Arc Furnace ADVANCED TECHNOLOGY While the submerged-arc electric furnace process predominates in the production of ferroalloys, other methods are being explored. Most attention is directed at the development Reaction Charge of plasma furnaces.38 This furnace is basically gases material an electric arc furnace in which carbon elec- t trodes are replaced by metallic electrodes and the electric arcs by plasma arcs.39 An essential difference in design is the installation of plasma torches in the wall of the furnace, rather than

SeCharles River As~ciates, Processing CapacitJr fOr critical 4 Materials, contractor study prepared for the Office of Technol- ogy Assessment, January 1984.

39A P]asma is a gas of sufficiently high energy content that many of its molecules split into atoms, which then become ionized and electrically conducting. Such a gas can develop and deliver heat as high as ZO,OOOC C. Fossil fuels, on the other hand, SOURCE Charles River Associates, Process/rig Capacify for Crltica/ Materia/s, limit combustion processes to z,0000 C, See “The Promise of OTA contract report, January 1984 Plasma, ” 33 Metal Producing, February 1984. 156 ● Strategic Materials: Technologies to Reduce U.S. /report Vulnerability

the roof as with carbon electrodes. A plasma Relative to Western Europe, South Africa furnace used for the production of ferrochro- and the Soviet Union, the United States has mium can be used to produce ferromanganese seen little activity in plasma technology for or other ferroalloys. process metallurgy (reduction). Westinghouse is one U.S. firm involved in developing the The major advantages claimed for the plasma technology, especially the initial torch systems furnace process are: increased economy due which were a spinoff of the U.S. space pro- to 41 longer life electrodes, fewer environmental gram. Foster Wheeler Corp. holds a U.S. problems (e.g., less dust and waste gas are gen- license for European plasma furnaces and was erated, noise level is extremely low), reduced involved in setting up the Middelburg furnace. cost of charge material (e. g., use of small particle–’’fines” –feed material rather than lumps, Its estimates have shown that capital costs for the system would be 40 percent less than for eliminating the need for preliminary processes a conventional electric arc furnace and oper- to compact such material, and fine coal rather 42 ating costs, about 25 percent lower. A major than more expensive coke), higher product inhibiting factor to U.S. interest in plasma tech- quality (e.g., a lower carbon content), and in- nology is the relatively high cost of electrical creased product yield due to lower losses into power compared with fossil fuel in most parts the waste material. of the country .43 However, since ferroalloy In the production of ferroalloys, the plasma processing is an electric power consumer, furnace can either be used for the reduction plasma technology has the potential to be eco- of ore (as in the submerged arc furnace) or for nomically viable in this particular application. melting metallic fines. Such a melting opera- Plasma arc reduction processes have occa- tion has been installed by Voest-Alpine of Aus- sioned a good deal of interest, but they have tria at Samancor (a major manganese ore and yet to be proven in full scale for ferroalloy ferroalloy producer) in South Africa, Middel- production, It is not known, for instance, if burg Steel & Alloys, a major ferrochromium they can compete with submerged arc furnaces producer in South Africa, has been investi- on the basis of energy consumed per ton of gating plasma furnace technology for a num- ferroalloy produced. They would seem to merit ber of years and in late 1983 installed a Swe- attention, however, if the high-intensity heat dish-designed 20 megawatt (MW) reduction source used would permit economical opera- furnace at its plant in Krugersdorp. This is the tion of smaller scale units (as compared with first commercial application of plasma technol- 40 the large, 50 MW, submerged arc furnaces). ogy in the ferroalloys field, and Middelburg Small-scale, adaptable units could provide flex- expects to take 2 years to evaluate the effi- ible production capacity for a new, lean domes- ciency of the operation before committing to tic ferroalloy industry. a conversion of its other furnaces (which could result in a doubling of its output capacity) to Chromium Metal plasma operation. South Africa appears to be in an excellent position to adopt the plasma Aluminothermic, carbothermic, and electro- technology since its chromite ores tend to lytic processes are used to produce metallic break up into fine material, its coal is gener- chromium. Each process results in a different ally of the lower grade applicable, and electric quality of product, which determines its pos- power is the main energy source. Plasma tech- sible value to industry. Electrolytic chromium nology does not yet appear to be able to com- is the purest and used in the most demanding pete in areas where fossil fuel is available. —— 4’K. J, Reid, “Plasma Tech Potential Best in High-Value Goods,” 40SKF Stee] of Stockholm announced i n June 1984 intentions American Metal Market, May 15, 1984, p. 22. Excerpts from a of building a 78,000tonne per year ferrochromium plant in speech “Plasma Metallurgy in the 80s” given at an international southern Sweden using plasma technology. Overall savings of symposium—Mintek 50—in Johannesburg, South Africa, in April SKF’S Plasmachrome process compared to costs of conventional 1984. ferrochromium production in Sweden has been estimated at 15 4ZChar]es River Associates, op. cit., p. 78. to 20 percent. qaReid, op. cit., p. 22. Ch. 5—Strategic Material Supply . 157 — applications. The most widely used method is Chromium metal of the highest purity, con- the aluminothermic (A-T) process. The same sumed in the most demanding superalloy ap- equipment can be used to produce other alloys plications, is produced by the electrolytic —e.g., ferrovanadium, ferrocolumbium, or method. This process, based on developments ferromolybdenum—providing a wide range of by the U.S. Bureau of Mines in the 1950s, uses furnace flexibility, but also making it difficult ferrochromium as a feed material. Chemical to estimate total aluminothermic capacity. processing removes the iron content of the ferrochromium, and this “chrom alum” (chro- The A-T process is relatively simple. High- mium aluminum sulfate) is then dissolved in purity aluminum powder is mixed with Cr O , 2 3 water to provide the feed for electrolytic cells. charged into a reaction vessel, and ignited, The Chromium, deposited on cathodes, is periodically reaction of aluminum and oxygen produces removed. This product is sold as regular grade chromium metal and a slag that contains the (99.1 percent chromium) or further purified. oxidized aluminum. The metal is separated from the slag, cooled rapidly, and crushed to Production Capacity and Distribution specified sizes for sale. The worldwide distribution of production ca- Two products are made by the A-T process, pacity for ferrochromium and chromium metal One, known as Chrome 99, is suitable for proc- is shown in tables 5-14 and 5-15. In 1979, the esses using open vessels in contact with air, United States had more than 225,000 tonnes but residual oxygen and nitrogen in Chrome (205,000 tons) of ferrochromium capacity 99 limit its use to less demanding end-use ap- among seven firms, Of the six firms now plications. The other product, called vacuum credited with capacity, only two were operat- melting grade (for use in vacuum furnaces), is ing in 1983, functioning at low levels of produc- produced with excess aluminum to drive down tion or only intermittently, Early in 1984, tem- the levels of oxygen. This high purity grade is porary respite was provided to one bankrupt interchangeable with electrolytic chromium in firm with the award of a contract from the Gen- all but the most stressful applications, e.g., the eral Services Administration to upgrade rotating hot sections of the jet engine. 121,173 tons of chromite in the national de- The A-T process requires high-purity chro- fense stockpile to ferrochromium. Table 5-16 mic oxide as feed material. This chromic ox- shows the increasing U.S. reliance over the ide is produced by roasting chromite. Care past decade on imports of both chromium fer- must be taken during this process to minimize roalloys and metal. the sulfur, oxygen, and nitrogen content of the In the past, the West’s supply of chromic ox- end product. producing this oxide is the capi- ide, the precursor for aluminothermic chro- tal-intensive phase of chromium metal pro- mium metal production, was supplied almost duction, entirely by a single firm, the British Chrome Another chromium product, Chrome 98, also & Chemical Co., which has an annual capac- uses Cr2O 3 as the input material. Carbon is ity of 12,700 tonnes of chromic oxide. In 1982, mixed with the oxide to form briquettes, which however, a subsidiary of the British firm, the are then heated in a vacuum furnace at close American Chrome & Chemical Co., began oper- to the melting point for several days. The car- ating a plant in Texas that produces chromic bon and oxygen form carbon monoxide gas, oxide, along with various chromium chemicals. which leaves behind briquettes of chromium Shieldalloy Corp. has been producing chromic metal, The vacuum furnaces used for this car- oxide in the United States, but has used it for bothermic process are used for the production internal consumption in the production of A- of other alloys (e. g., low-carbon ferrochro- T metal. It has an annual output capacity of mium) so that total production capacity is dif- 1,400 tons of chromium metal, with the possi- ficult to measure. Chrome 98 competes with bility of expanding capacity to 1,800 tons, if A-T chromium for use in superalloy. equipment normally used in the production of 158 . Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

Table 5-14.—Ferrochromium Capacity, 1979 (in tonnes)

Charge High Medium Low Ferro- Country chrome carbon carbon carbon silico Brazil ...... 90,000 – — — — Canada ...... 50,000 – — — — Finland ...... 50,000 – — — — France ...... — — — — 2,000 ● ● ● West Germany...... ● 35,000 ● India ...... 10,000+ ● 5,000 + 1,000 Italy, ...... — 40,000 — 15,000 — (incl. charge) Japan ...... 172,000 344,100 12,000 106,000 81,400 Mexico ...... — — — 6,000 – Norway ...... — 20,000 18,000 — — Philippines ...... — ● ● ● — South Africa ...... 270,000 30,000 – 10,000 55,000 Spain ...... — 28,000 – 10,000 — Sweden ...... — 240,000 – 33,000 53,000 Turkey...... — 50,000 – 15,000 – United States...... ● 136,000+ ● 36,000+ 53,000+ Yugoslavia ...... — 68,000 – 15,000 5,500 Total ...... 642,700+ 956,100+ 30,000 251,300+ 285,900+ ● —Capacity notavallable. SOURCE: Charles River Associates, Processing Capacity for Critical Materials, OTA contract report, January 1984

Table 5-15.—Production Capacities for Chromium Table 5-16.—Chromium Ferroalloys and Metal: Metal in the Non-Communist Countries-1981 imports and Consumption (gross weight, short tons) (tonnes per year) Ferrochromium Metala a Country Electrolytic Aluminothermic 1971: France ...... 900-1000 Imports ...... 85,187 NA Japan ...... 3,000-4,000 300-1,000 Consumption ...... 253,193 NA West Germanyb ...... 600,1,200 Imports as percent of Luxembourg ...... 0- 500 consumption ...... 34 — Great Britain ...... 2,000-4,000 1974: United States ...... 2,800-3,000 0-1,800 Imports ...... 161,573 1,960 aA.T~apaCity isdifficulttoestirnate Since wmefacilitim that are used forthe Consumption...... 472,379 5,479 production of otheralloys can beused forthe production of A-Tchromium The wide range of capacity estimates reflecls this difficulty. Imports as percent of bTheTO is an addit~onal “captive” producer of AT chromium in weSt Germany. consumption ...... , . . . 34 36 Its substantial production is sold directly to two or three companies within West Germany 1980: Imports ...... 297,218 4,075 SOURCE: Charles River Associates, Processing Capacity for Cri!ical Materia/s, OTA contract report, January 1984. Consumption ...... 388,639 5,635 Imports as percent of consumption ...... 76 72 aMetal irnpofl data Include unwrought metal, waste, and SCraP NA—Not available. SOURCE: U S. Department of the Interior, Bureau of Mines, Minerals Yearbook, other alloys is employed. In addition, Elkem VOI 1, 1971, 1974, and 1980. Metals, which produces Chrome 98 at its plant in Marietta, OH, offers variable capacity because it uses its vacuum furnaces for other Western production of electrolytic chromium products, e.g., vanadium carbide and low- metal comes from two plants, one each in Ja- carbon ferrochromium. But briquetting equip- pan and the United States. Toyo Soda has a ca- ment for preparing the furnace feed material pacity of 4,000 tonnes (3,600 tons) per year, and limits production to 1,400 tonnes (1,300 tons) Elkem has a 2,800-tonne capacity (2,600 tons). of chromium metal per year. A small invest- Plans to expand capacity to 4,500 tonnes at ment in additional briquetting equipment could Elkem were considered but shelved owing to easily double output. lack of prospective markets. Ch. 5—Strategic Material Supply . 159

The United States still has domestic capac- pected to continue to erode U.S. production ca- ity for all types of ferrochromium products, al- pacity. Firms that appear to be able to remain though “practical” (in operating condition) ca- viable—e.g., Globe Metallurgical Division of In- pacity no longer covers its needs. For instance, terlake, Inc. —have small, flexible furnaces estimated practical capacity (1984-85) for high- which can handle special orders and produce carbon ferrochromium is placed at 130,000 premium grades. In terms of chromium metal tonnes (118,000 tons),44 while 1982 consump- production, the United States has the ability tion totaled 215,000 tons.45 Imports are ex- to handle all stages of both the electrolytic and 44Char]es River Associates, op. cit., p. 58. aluminothermic processes and produce a sub- ASU.S. Department of the Interior, Bureau of Mines, Minerals stantial portion of domestic needs. Yearbook 1982, vol. 1, p. 205.

Cobalt Production and Processing

State-controlled mining operations produce Cobalt is only a secondary product of cur- more than 90 percent of the world’s cobalt sup- rent mining operations; therefore, its mining ply. The industry is dominated by one such and refining is tied to the primary metals nickel African producer, Zaire, which directly sup- and copper, Thus, normal market fluctuations plies nearly 40 percent of U.S. imports. Unlike for cobalt do not usually directly influence de- the other first-tier strategic materials, the num- cisions to alter production rates. Only two ber of producer countries has grown in the past countries have had the capability to produce 20 years; and these four countries now hold 9 cobalt as a primary product: Zaire, partly be- percent of overall output. In addition, a num- cause of its high cobalt content ores (0.35 per- ber of cobalt-containing ore deposits—includ- cent); and Morocco, whose cobalt arsenide ores ing some in the United States—have been were mined until 1983. For other producers, evaluated in the past decade, but all await im- increasing cobalt production in the absence of proved prospects for primary ores and/or co- increased demand for copper or nickel means balt before any operations will be considered. either bearing the cost of stockpiling copper or nickel or running a risk of depressing prices Cobalt minerals are oxides, sulfides, or ar- by creating an oversupply in those markets. senides, and they occur in a number of geological environments. The majority of the world’s cobalt production comes from a particular Although 12 countries reported mine produc- geologic combination (stratabound copper de- tion of cobalt in 1982, Zaire supplied 45 per- posits associated with sedimentary rock) that cent of the world’s total output (table 5-17). has only been found in Zambia and Zaire. Zambia contributed another 13 percent. These Other geological types in which cobalt is lo- two African countries are the major sources cated are laterite, hypogene, and hydrothermal of cobalt for the free world market, the prin- deposits. Hypogene deposits are formed dur- cipal consumers being the United States, West- ing the crystallization of molten rock in which ern Europe, and Asia. The United States is de- minerals separate and accumulate. Hydrother- pendent on imports for all of its primary cobalt mal deposits are formed when water contain- needs. (Eight percent of consumption in 1982 ing metals circulates through rocks, solidify- was provided by the recycling of purchased ing along fractures to produce vein deposits. scrap.) The Eastern bloc’s cobalt needs are sup- The principal product derived from cobalt- plied by the Soviet Union and Cuba. Little co- bearing laterites is nickel in combination with balt is consumed by producer countries, except iron; from hypogenes, nickel, and/or copper. the Soviet Union. 160 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

Table 5-17.—World Cobalt Reserves and Production by Country (million pounds of contained cobalt)

Average Percent grade Production a of world Producer country Reserves percent 1982 production Australia...... 50 0.10 4.8 9 Botswana ...... 20 0.06 0.6 1 Canada ...... 100 0.07 3.3 6 Finland ...... 50 0.20 2.2 4 Morocco b ...... 0 1.20 1.5 3 New Caledonia ...... 500 0.05 1.1 2 Philippines ...... 300 0.08 1.1 2 South Africa ...... 40 NA NA — Soviet Union ...... 300 NA 5.2 9 Zaire ...... 3,000 0.35 24.9 45 Zambia ...... 800 0.25 7.2 13 Subtotal ...... 5,160 51.9 94 Others...... 840 3.4 6 Total ...... 6,000 55.3 100 aMine outpui. boperations suspended in December 1982. NA—Not available, SOURCE: U.S. Department of the Interior, Bureau of Mines. Reserve base:Minera/ Commodity Prof//e 1983 Coba/t Production: Minerals Yearbook 1982, vol. 1, p. 258

Foreign Production of Cobalt crease in cost. Intermediate products, on the other hand, have few metal units per pound, The cobalt industry is divided into two groups: and shipping them other than by sea is costly. vertically integrated firms, which mine ores During the Shaba uprising in Zaire in 1978 and and process them into cobalt products, and 1979, air transportation proved to be a success- mine producers, which sell semiprocessed ores ful export method. to refiners. Mining is singly controlled in each producer country, except in Canada, Australia, Because of cobalt’s varied and complex proc- and South Africa. As table 5-18 shows, a tangle essing flows (see the following section on co- of multi-national firms produce cobalt. U.S. balt processing), mine production cannot be firms have interests in Australia (Freeport and, discussed independently from final processing. indirectly, Asarco), Botswana (Amax), Canada Cobalt production and import data often refer (Newmont Mines and Superior Oil), the Philip- to both the mine producer and the downstream pines (indirectly, Superior Oil, through Sher- processing countries. When integrated mine ritt Gordon), and Zambia (Amax). producers and independent refiners are both considered, the world’s sources of refined co- Cobalt flows worldwide in a number of forms balt products appear to be diverse, although until final products such as metal (electrolytic) Zaire still dominates. As table 5-19 indicates, cathodes and powder, cobalt salts, and oxides the flow of semiprocessed ores is toward the are produced for sale to industrial users. Even consuming nations. Zaire, Zambia, and Fin- within integrated firms, intermediate products land have integrated firms which can com- are often shipped from the mining country else- pletely process their ores into cobalt cathode where for final processing. However, there is and powder forms. South Africa now exports a growing trend toward complete processing both cobalt chemicals (sulfate) and metal pow- in the country of origin. ders. Some South African intermediates, how- In an emergency, one advantage of vertically ever, are still shipped to England and Norway integrated processing in the producing coun- for processing. Canada’s Inco now has the ca- try is that final cobalt products—principally pability to produce metal from its ores but pure metal—can be air shipped at no great in- maintains the option to ship intermediates to .—.

Ch. 5—Strategic Material Supply ● 161

Table 5-18.—Cobalt Mining Industry by Country

Ownership Primary national Country Major firms Sector Major holdersa identity Australia ...... Queensland Nickel Pty. Ltd Private Metals Exploration (50) Local Private Freeportb (50) Us. Western Mining Corp. Ltd. Private WM Corp. Holdings (100) Local Agnew Mining Co. Pty. Ltd. Private Seltrust Mining (60) Local Private Mount Isa Minesb (40) Local Botswana...... Botswana RST Ltd. Private Amax (30) Us. Private AngloAmer (30) South Africa/U. K. Private various (40) Local Operated by BCL Ltd. Private Botswana RST (85) (see above) Government (15) Local Canada...... Inco Ltd. Private d Canada Falconbridge Ltd. Private McIntyre Minese (40) Canada Finland...... Outokumpu Oy Government (81) Local Private (balance) Local Morocco f ... , ...... Campagnie de Tifnout Private/ Omnium (81) French/ Tiranimine (CTT) government Local New Caledonia ...... Societe ie Nickel (SLN) Private Imetal (15) French Government SNEA 9 (15) French Government ERAP (70) French Philippines ...... Marinduque Mining and Government (87) Local Industrial Corp. Private Sheritt Gordon (10) Canada South Africah , ...... , . Rustenberg Platinum Mines Private JCI (33) Local Ltd. Private AngloAmer (24) Local Private Lydenburg (24) Local Impala Platinum Holdings Ltd. Private Gencor (56) Local Zaire ...... Generale des Carrieres et des Government (loo) Local Mines (Gecamines) Zambia ...... , ...... Zambia Consolidated Copper Government ZIMCO (60) Local Mines Ltd. Private Zambia Copper Investment South (27)’ Africa/U. K. Private RST International (7) Local awtth approximate percentage of control, If available bA wholly owned subsidiary of Freeport McMoran Inc (Us ) CA subsldia~ of MIM Holdings which is (49°/0] owned by Asarco Inc dThe largest Single.shareholder block of Inco stock Is 4 Percent eFalconbrldge ,s 327 percent owned bY Superior 011 through Cflrect eqlllty and its COfltrO[[irlg Interest in Mylntyre fNot ,n production s!nce December 1982 gSNEA IS 67 percent owned by ER,4f’.Entreprlse de f?echerches et cf’Activltes Petrolteres, giwng ERAP about 80 percent control of SLN hThere are slx finance houses (the Groups,,) Which dominate the South Afr,can Industry, The Anglo American corp of S A Ltd (AngloAmer), Gold Fields Of S A Ltd , General Mining Union Corp Ltd (Gencor), Rand Mines/Barlow Rand, Johannesburg Consolidated Investment Co Ltd (JCI), and AngloTransvaal Consolidated Investment Co Ltd (AngloTC) ‘Owned by Anglo American SOURCES E&MJ 1983 Interrrat{onal Directory of A4tnmg, Bureau of Mtnes M/neral Commod/ty Profile 1983: Cobalt; Office of Technology Assessment its plant in Wales, where cobalt salts are pro- rently holds contracts to receive matte from duced. Falconbridge exports processed ore one producer in Australia and from its own from Canada to its plant in Norway for the pro- operations in Botswana, Output from the ma- duction of cathodes. jor Australian producer, Western Mining, is shipped to Sherritt Gordon’s refinery in Can- Firms in Botswana, Australia, New Cale- ada for processing into cobalt powder. New donia, and the Philippines mine and smelt their Caledonia’s small output is processed into co- ores. This intermediate product (matte) is balt salts by Metaux Speciaux in France. traded to refiners for final processing. Two Jap- anese firms refine intermediates from the Four of today’s producer countries, shown Philippines and Australia. The resulting cobalt in table 5-20, have initiated production since cathodes are either consumed in Japan or ex- 1960, causing a redistribution of market shares ported. Amax, the sole U.S. cobalt refiner, cur- despite the commanding hold on the market 162 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

Table 5-19.—World Refined Cobalt Production— copper mine in Uganda (processing of copper- 1982, by Country (million pounds) cobalt tailings), the Windy-Craggy deposit in Recovered Percent Canada, Musongati in Burundi, Ramu River in Country a metal of total Papua New Guinea (see the section on chro- CANADA ...... 1,730 4 mium in this chapter), and Goro in New Cale- FINLAND ...... 3,218 7 donia. Except for the Ramu River project, France ...... 11,100 26 West Germany ...... 880 2 which depends on chromite and nickel, the Japan...... 4,282 10 economic viability of these projects will be de- Norway ...... 2,184 5 termined by the market for nickel or copper. SOVIET UNION ...... 8,700 20 United Kingdom...... 1,600 4 (U.S. projects are discussed in detail in the next United States ...... 1,016 4 section,) ZAIRE ...... 13,200 30 ZAMBIA ...... 5,392 12 Albania has contracted for the construction ZIMBABWE ...... 110 <1 of a nickel and cobalt refinery, which will pro- Total ...... 43,412 100 duce cobalt oxide from domestic nickelifer- aupper case indicates refiner is also an ore producer ous46 ores. (A West German government firm, SOURCE: U.S. Department of the Interior, Bureau of Mines, Minerals Yearbook 1982, VO[ 1, p 256. Saltzgitter Industriebau A. G., and Inco of Can- ada are involved.) An unconventional source that Zaire has maintained. Until the worldwide of cobalt is under investigation in Peru, involv- recession abates and steady economic growth ing concentration and refining of cobalt-bear- is anticipated by the mining industry, the curing tailings from the Marcona Iron Mine. rent producers of cobalt will remain the only These projects represent a potential 20 per- sources. cent increase in supply for world markets There has been extensive activity since the under improved economic conditions. Bring- late 1970s on cobalt-related projects around the ing any of them into production, however, world, including in the United States. A num- would require considerable capital and lead ber of mining projects are being or have been times of several years to develop the necessary evaluated, although none appear economic. infrastructure. Foreign projects (table 5-21) reportedly evaluated include Gag Island in Indonesia, Kilembe q6Bearing or containing nickel.

Table 5-20.—Historical Production—Cobalt, 1960-80, by Country (thousand pounds, contained cobalt; percent of world total)

1960 1965 1970 1975 1980 Producer country Production Percent Producer Percent Producer Percent Producer Percent Producer Percent

Botswana ., ., 0 0 0 0 0 0 178 <1 498 1 Canada. ~ ~ 3,330 10 3,648 10 4,562 9 2,986 5 3,534 5 Finland ., 0 0 3,292 9 2,800 5 3,090 5 2,282 3 Morocco ~ ~ ., ~ ... 2,802 8 4,038 11 1,332 3 4,324 7 1,848 3 New Caledonia ., ., 0 0 0 0 0 0 4,528 7 400 1 Philippines ., ., ., 0 0 0 0 0 0 234 <1 2,934 4 South Africa ., ., ., ~ NA NA NA NA a Zaire, ., ., ., ., 18,166 54 18,492 49 30,772 59 30,860 48 34,180 51 Zambia ,.. ~ ~ ~ ~ 4,070 12 3,404 9 5,290 10 5,252 8 9,700 14 Soviet Union . ,b 2,800 7 3,400 6 3,900 6 4,960 7 Subtotal ., ., 28,400 85 35,874 95 49,178 94 61,324 94 63,856 95 Other ., ,.. . ., 5,000 15 1,760 5 3,400 6 3,600 6 3,620 5 Total ., .,. . 33,400 100 37,634 100 52,578 100 64,924 100 67,476 100 aE~tlmated 475,000 Pounds in 1981 ~Only Free World reported In 1960 NA–Data not availatie SOURCE U S Oeparfm?nt of the Interior, Bureau of Mines, Mmerak Yearbook, 1961, 1966, 1971, and 1981 Ch. 5–Strategic Material Supply Ž 163

Table 5-21 .—Potential Foreign Cobalt Sources

Estimated cobalt content, million pounds Production Estimated Ieadtime Site per year Deposit to production Gag Island, Indonesia...... 2.8 400 2 to 3 years Kilembe, Uganda ...... NA 784 1 to 3 years Windy-Craggy, Canada ...... NA 982 Musongati, Burundi ...... NA 160 NA Ramu River, New Guinea . . . ., , ... , 5.9 NA +5 years Goro, New Caledonia ...... 2.0 NA 3.5 to 5 years Marcona Mine, Peru ...... 4.0 NA =2 years Albania refinery ...... NA NA z 1985 NA—Data not available. SOURCE Office of Technology Assessment

Following is a brief discussion of each ma- government owned). The smelting furnace at jor cobalt mine producer’s operations and the the mining complex had a production peak of processing route of the ores. The industry ex- 47,000 tonnes of matte (nickel and copper at perienced a cutback in mine production and 38.5 percent each and cobalt at 0,56 percent) delay in expansion plans because of the 1981- or, 479,000 pounds of contained cobalt in 1981. 82 worldwide recession. In 1984-85 future pros- The matte is sent by railroad through South pects have been regarded cautiously. Africa to the port of East London or through Mozambique to Maputo for sea shipment to Australia Amax’s refinery in Port Nickel. The South African route is preferred because the loading Only intermediate cobalt products are pro- facilities at East London are more efficient. duced in Australia. The major producer, West- Botswana RST has been reevaluating its cop- ern Mining, is also the third largest nickel proper-nickel sulfide ore deposits in recent years. ducer in the world. For cobalt recovery, the Preliminary indications are that the reserves company processes nickel sulfide ores from de- could be increased significantly, but an invest- posits in western Australia into mixed nickel- ment in extensive drilling is needed for con- cobalt sulfides, which are shipped to Sherritt firmation. Gordon in Canada for processing into cobalt powder. Queensland Nickel in northeastern Australia also produces a mixed nickel-cobalt Canada sulfide, but its ores are nickel oxides from Canada has two integrated mine producers, laterite deposits. The intermediate product is Falconbridge and Inco, and one independent shipped to Nippon Mining’s refinery in Japan refiner, Sherritt Gordon. Most of Canada’s co- under a life-of-mine contract. Agnew Mining’s balt deposits are located in the Sudbury area nickel sulfides are smelted by Western Mining of Ontario and are classified as nickel/copper in Australia and refined by Amax at Port sulfides. Falconbridge smelts its ores into a Nickel in Louisiana. Although a minor world mixed metal matte containing nickel, copper, source of cobalt, Agnew is one of Amax’s two and cobalt (1 percent). This material is then current sources of cobalt intermediates. In- shipped to Falconbridge’s refinery in Kris- ternally, Australian producers rely on rail for tianstad, Norway, where cobalt cathodes are transportation between mining, smelting, and produced. Inco has produced cobalt oxide at exporting phases of production. its own plants in Port Colborne and Thomp- Botswana son, Canada, Recently, an electrolytic plant with a design capacity of 900 tonnes (1.6 mil- The two mines in Botswana, Selebi and lion pounds) of metal per year began operation Pikwe, are operated by BCL Ltd. (15 percent at Port Colborne to complete domestic proc- 164 Ž Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

Finland The integrated firm Outokumpu Oy, Fin- land’s sole producer, derives cobalt from copper sulfide ores containing copper, zinc, and cobalt; the ores are from the firm’s Keretti and Vuonos mines in eastern Finland. A cobalt concentrate is subsequently processed at the Kok- kola refinery on the west coast. Products include both cobalt powder and salts. Outokumpo has been conducting exploration and process development work (a new concentration technique based on leaching technology) at the Talvivaara deposit near Sotkamo in order to improve the firm’s reserve figures and develop a new source of cobalt, as well as nickel, zinc, and copper. Total resources have been estimated at 300 million tons of ore which, with a cobalt grade of 0.02 percent, represents 60,000 tons (120 million pounds) of cobalt. If the processing technique proves feasible, about 10 million tons of ore (containing 4 million pounds of cobalt) could be produced annually.

Morocco Cobalt production in Morocco was discontinued in December 1982 because declining re- Photo credit Inco, f.td serves and increased mining costs made the Cobalt is recovered from nickel and copper ores in the firm’s cobalt production noncompetitive. A Inco processing pIant at Port Colborne, Ontario better worldwide economic climate could encourage broadening of the reserve base and reopening of the mines. Morocco’s ores are essing of the ores. Cobalt oxide will still be pro- cobalt-iron-nickel arsenides, and Morocco is duced at Thompson, with some being shipped the only world producer for which cobalt has to Inco’s refinery in Wales for final process- been the primary product. The ores were proc- ing. Inco and Falconbridge together normally essed in France by Metaux Speciaux, a subsidi- have the capacity to mine ores containing 9 ary of Pechiney Ugine Kuhlmann, the state- million pounds of cobalt per year. Inco’s smelter owned metals group. The oxide and metal has a maximum output capacity of 4 million products were consumed internally. (Metaux pounds of cobalt per year. However, world Speciaux now receives cobalt intermediates market conditions have reduced actual output from SLN in New Caledonia for processing by half in the past few years. Sherritt Gordon into salts.) Amax considered using Moroccan stated in 1983 that if the price of cobalt rose ores and ores in the tailings at the Uganda to $10 per pound (signaling improved markets), Kilembe copper mine as a feed for its U.S. the company would triple its output of cobalt plant. Neither source presents any technical powder. 47 problems, but it is difficult and costly to transport the ores from either spot in northern Africa to the Botswana smelter for initial proc- aTAmerjcan Metal Market, Oct. 27, 1983. essing. —.

Ch. 5—Strategic Material Supply ● 165

In 1982, the Trade and Development Pro- South Africa gram of the U.S. International Development Cobalt from the Union of South Africa is pro- Cooperation Agency completed a study of the 48 duced from nickel products separated during prospects for Moroccan cobalt production. platinum ore beneficiation. Data on actual co- The study reported that, although the reserves balt production became available only recently. were approaching exhaustion, the potential for Production in 1981 has been estimated at discovering new cobalt deposits in the Bou 475,000 pounds of recovered cobalt. Two pro- Azzer region (site of the closed mines) was very ducers, Rustenburg and Impala, are now fully high, suggesting that extensive geological integrated within South Africa. Rustenburg studies be undertaken. processes nickel mattes into cobalt sulfate at a plant jointly owned with Johnson-Matthey. New Caledonia Impala’s mattes are processed into cobalt pow- Only 8 percent of the cobalt in SLN’s ores der at its refinery at Springs in the Transvaal is recovered because most of its nickel oxide Province, A third (minor) producer, Western ores are smelted directly into ferronickel. (See Platinum Ltd., ships mattes to the Falconbridge discussion of cobalt losses due to ferronickel plant in Norway for processing. (Falconbridge, production in the following processing sec- a Canadian firm, is part owner of Western tion.) The cobalt intermediates that are pro- Platinum.) duced by SLN’s smelter are processed in France by Metaux Speciaux. Cofremmi, S. A., Zaire a firm controlled by Amax, BRGM (France), The copper oxide and mixed oxide-sulfide and Patino N.V. (Netherlands), has studied the deposits of Zaire have one of the world’s high- feasibility of mining the nickel laterite depos- est concentrations of cobalt (average 0.3 per- its containing cobalt at Goro, estimating a co- cent). Gecamines (the government mining firm) balt output of 1,000 tons (2 million pounds) per recovers cobalt after the last step of the copper year. A deposit at Tiebaghi has been investi- ores processing. This makes cobalt production gated by Amax. Both deposits could be ex- relatively inexpensive, but because the opera- ploited using existing technology, but eventual tions seek to maximize copper recovery, over- production from either source will depend on all cobalt recovery from the mined ores is only the nickel market. in the 30-percent range. Mine-to-metal cobalt The Philippines production is integrated at the mining area, Gecamines’ two refineries produce cobalt metal Some 20 nickel laterite deposits, with vary- cathodes. ing cobalt content, have been identified in the Metallurgic Hoboken Overpelt in Belgium Philippines, although only one is in production. has an agreement with Zaire to process refined Marinduque derives cobalt from a large deposit cobalt into cobalt chemicals and extra-fine with 0.10 percent cobalt content at Surigao on powder. During the depressed markets of the Nonoc Island. A mixed nickel-copper sulfide past few years, Gecamines has stockpiled co- is shipped to Japan for refining into cobalt balt rather than substantially curtail its produc- cathodes by Sumitomo Metal Mining. Marin- tion rate. Estimates are that, by the end of 1982, duque planned a cobalt refinery with a rated Zaire and its sales agents were holding more output of 1,200 tons (2.4 million pounds) per than 20,000 tonnes (36 million pounds) of co- year, but current financial problems have pro- balt products off the world market. This amount hibited any action. It is estimated that the plant exceeds Zaire’s 1980 production rate of 17,090 would take about 18 months to complete. short tons (34 million pounds),

48u .s. I Hternatlona] r)e~~e]opment Cooperat ion Agenc }’, Trade Zaire was granted $360 million in loans by and I)e\’elopment Program, Aforocco Cobalt hfission, Februar~r the International Monetary Fund in 1984 to 1982, help compensate for the decrease in export 166 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability earnings due substantially to the depressed assist the rehabilitation effort. The port of Dar world markets for copper and cobalt. There es Salaam tends to be a bottleneck causing ex- have been attempts to open additional Zairian treme delays in shipments. sources of cobalt by various consortiums of government and multinational private firms Potential Sources (e.g., Sodimiza and Societe Miniere de Tenke- Fungurume), but they have failed because of The first of the following potential sources market conditions for both copper and cobalt. of cobalt is of particular interest because it is located close by in Peru and because little de- After the Shaba crisis ended in 1979, Zaire velopment would be required to produce co- continued to use air transportation for cobalt balt. The time-consuming ground work has exports until the price of cobalt dropped dra- been completed for the second project, and it matically. Land routes from Zaire include a awaits economic viability. river barge/rail combination west to the port of Matadi and rail routes via South Africa and Peru/Marcona Iron Mine Tanzania. Negotiations were underway in 1984 to allow Zaire the use of the Mozambique port It has long been known that the iron sulfide of Beira. (pyrite) tailings from operation of the Peru/Mar- cona iron mine contain cobalt. The Trade and Zambia Development Program (TDP) studied this project in 198249 at the request of Hierro-Peru, the While Zambia produces from the same ore Peruvian government iron mining concern, belt as Zaire, Zambia’s ores are almost exclu- and estimated that at an iron mining rate of 7.2 sively copper sulfides, and the concentration million tons per year, 2,079 tons (4.2 million of both copper and cobalt (0.15 percent) is pounds) of cobalt could be recovered annually lower than in Zaire. The overall recovery rate from the pyrite tailings. (In 1981, nearly 7.5 mil- for cobalt is about 25 percent. (The cobalt re- lion tons of crude ore were mined, although finery yield is 75 percent, but only a third of the mine has an annual capacity of 15 million the mined cobalt containing ores are processed tons.) Additional cobalt is contained in the tail- for cobalt with the rest going to copper.) Sul- ings generated over the lifetime of the mine’s fide ore processing requires smelting and sep- operation. The TDP report proposed that the arate streams for copper and cobalt rather than cobalt ore be prepared for use in a U.S. refin- the sequential hydrometallurgical extraction ery, such as the Amax refinery in Louisiana or process used in Zaire with oxide ores. The end one of Hall Chemical’s plants. An evaluation product in Zambia is cobalt cathodes, half of was underway in 1984, funded by the TDP, to which are of the high purity required for super- identify the required processing steps, the nec- alloy use. essary infrastructure, and the capital require- The major transportation route from Zambia, ments. This cobalt source might provide one especially for copper, is via the Tazara Railroad of the quickest new supplies, given any disrup- to the port of Dar es Salaam in Tanzania. The tion in the normal market, because the iron railroad was built in the 1970s, with assistance mining operation and most of the infrastruc- from the Chinese government, to reduce black ture required are already in place. Deepwater southern Africa’s dependence on rail routes port loading facilities are available nearby. through South Africa. It has been continually plagued with equipment and maintenance problems, reducing its reliability. China agreed to extend the grace period for repayment of the railway’s debt, freeing up funds for repairs and WU. S. ]nternation~ Development Cooperation Agency, Trade for purchase of additional rolling stock. Sev- and Development Program, The A4arcona Iron Mine: A Poten- eral Western European nations have agreed to tial New Source of Cobalt in Peru, November 1982. Ch. 5—Strategic Material Supply ● 167

Indonesia/Gag Island Figure 5-3.— Total U.S. Cobalt Production, 1945-71 (cobalt content of mined ores) After 10 years and a $50 million investment, 50 further investigation on the nickel laterite proj- 48 . ect at Gag Island, Indonesia, was halted in 1981 by P.T. Pacific Nikkei Indonesia. The partnership of U.S. Steel, Amoco Minerals, and Ijmuiden Hoogovens BV of The Netherlands was subsequently liquidated. The reasons given for aban- doning the project were the depressed state of the nickel and cobalt markets and the uncertainty of the future, along with interference by the Indonesian government, A production rate of 60,000 tons of nickel and 1,400 tons (2.8 million pounds) of cobalt for the first 10 years of operation had been projected, (See also the Ramu River, Papua New Guinea, project discussion in the chromium section.)

Domestic Production of Cobalt Currently, cobalt is not produced from domestic mines, but this has not always been the case. U.S. mine production (fig. 5-3) reached a high point in 1958, when about 4.8 million pounds of contained cobalt were produced. (U.S. consumption of cobalt in 1958 was 7.5 million pounds.) In the 1948-1962 period, a total of approximately 14 million pounds were ac- 1945 1950 1955 1960 1965 1970 1975 quired by the government through stockpile Years purchases and Defense Production Act subsi- SOURCE W!lllam S Kirk, Commodity Spec!allst, Bureau of Mines, Department dies, Federal purchases included about 6 mil- of the Intenor, 1984 lion pounds of cobalt from the Blackbird Mine in Idaho, and about 2.9 million pounds from als are discussed later in this section, and also mines in the Missouri Lead Belt (including the in chapter 8. Madison Mine). There has been no production from these mines since the Federal purchase Domestic deposits that may yield cobalt to contracts expired more than two decades ago, meet national needs today are the Blackbird de- During the period 1940-72, approximately posits, the Madison Mine of Missouri and asso- 500,000 pounds of cobalt were produced each ciated cobalt in the Missouri Lead Belt, the Gas- year from iron ore pyrite concentrates taken quet Mountain project in California, and in the from Pennsylvania’s Cornwall Mine.50 Duluth Gabbro of Minnesota. Older, smaller mines primarily located in the Eastern United Since 1980, Federal subsidies for domestic States, such as Pennsylvania’s Cornwall Mine, cobalt production have again been proposed are not considered potentially economic sources as an alternative to stockpiling, These propos- by the Bureau of Mines. Fluctuating metal prices have made it diffi- SOThe hlstoryr of domestic cobalt production, through 1968, is cult to assess domestic cobalt development discussed in James C. Burrows, Cobalt: An industry Analysis, ” Charles River Associates Research Study (Lexington, MA: Heath projects, In 1981, spokesmen for the Blackbird, Lexington Books, 1971], pp. 103-113 and 185-189. Madison, and Gasquet Mountain projects all 168 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

stated that sustained market prices of from $20 Given the proper economic incentives (sus- to $25 per pound would be required to warrant tained, higher market prices for primary metals production. 51 At that time, the market price for and/or Government subsidies), domestic sources cobalt was $15 per pound, by 1983 it had (table 5-22) that have seen recent commercial dropped to $5 to $6 per pound, and in 1984 was activity could annually supply 7.7 million being quoted at $10 to $12 per pound. pounds of cobalt. Another 800,000 to 2 million pounds per year might be recovered from the Although large deposits containing amounts Duluth copper-nickel sulfide deposits. (U.S. of cobalt too small to be mined for cobalt alone consumption of cobalt in 1982 totaled about 10 occur throughout the world, the Madison and million pounds.) At current estimated resource Blackbird deposits could—according to their levels, production from these deposits would proponents —support the mining of cobalt as 53 range from 12 to 25 years. a primary ore. Other domestic cobalt resources can be produced only as byproducts and would Blackbird Mine therefore be unlikely to respond solely to changes in the price of cobalt. The California- The Blackbird Mine is located in the Salmon Oregon laterite deposits are primarily nickel, River Mountains of Lemhi County, ID. The but the Gasquet Mountain project in northern Caldera Co. acquired claims to the Blackbird California is dependent on nickel, chromium, District in 1943 after investigations by the Bu- and cobalt prices for success. The Missouri reau of Mines revealed the presence of com- lead and zinc mines may have only a small rela- mercially feasible deposits of cobalt. Produc- tive incremental cost for producing small tion began in 1950 with subsidies under the amounts of cobalt, but production at these DPA running from 1952 through 1959, when mines is dependent on the base metals market. production ceased.54 Moreover, cobalt recovery from these Missouri Blackbird is now managed by Noranda Min- ores may require changes in lead and zinc ing of Canada, which has proposed reopening processing practices and, in some cases, in end the Blackbird Mine and concentrator to pro- use standards. With present technologies, it is 55 duce 1,200 tons of copper-cobalt ore daily. A thought that increased cobalt recovery would final environmental impact statement (EIS) result in higher iron concentration in recov- was published in 1982. Permits currently allow ered lead and zinc, which may not be satisfac- 52 production of 300 tons daily for a “pilot” oper- tory for consumers of lead-zinc products. ation. However, in 1981 Noranda began lay- The development of deposits in part of the ing off employees, and when the final EIS was Duluth Gabbro depends on copper and nickel issued, only a few workers were still on site. markets. At copper and nickel prices at least The project is on hold awaiting improvement double 1983 levels, these Minnesota deposits in cobalt demand and prices. The company has could become an attractive venture. Values of sealed off the mine at the 6,850-foot level, and precious metals may also contribute to pros- the mine is filling with water. pects for development of this area. However, Ore reserves at Blackbird are now given at the considerable excess production capacity of 7.5 million tons of 0.72 percent cobalt (108 mil- U.S. copper mines and of Canadian copper and lion pounds of contained cobalt) with 1.4 per- nickel operations dampen prospects for cent copper and 0.01 percent gold. The esti- production from these deposits. ..— Saproduction ]evels at Blackbird, Madison, and Gasquet Moun- shearings before the U.S. Senate, Committee on Banking, tain were stated in testimony during U.S. Senate hearings be- Housing, and Urban Affairs, Oct. 26, 1981, p. 145, Noranda Min- fore the Committee on Banking, Housing, and Urban Affairs on ing, the Blackbird Mine owners, now believe that a sustained Oct. 26, 1981. They were also confirmed to OTA in telephone cobalt price of $16 per pound would make it feasible to bring conversations with each mining firm in July 1984. Data for the mine into production due to improved mine planning and Duluth Gabbro is taken from the Minnesota study cited in note the discovery of higher grade ores. The other mine owners have 67. not revised their 1981 figures. SqBurrows, op. cit., p. 187. Szsi]verman, et al., Op. cit. Sssilverman, et al., op. cit., P. 67. Ch. 5—Strategic Material Supply ● 169

Table 5.22.—Potential U.S. Cobalt Production

Estimated annual production Estimated capacity (million pounds mine life Resource/Mine of recovered cobalt) (years),, Production dependent on Blackbird Mine Idaho ...... 3.7 20 Cobalt price of about $16 per pound (1984)a Madison Mine Missouri ...... 2 20 Cobalt price of about $25 (1981)a Missouri Lead Belt (tailings) ...... 2 ? Cobalt price of about $20-25 (1984)a Gasquet Mountain California ...... 2 18 Cobalt price of about $20 (1981)a plus Nickel $2 to $3 per pound Chromite $40 per ton Duluth Gabbro Minnesota ...... 0.8-2 25 Copper, $1.50 per pound Nickel, $4.00 (1975 data converted to January 1983 dollars) aYear of estimate SOURCE Blackb!rd—Noranda Mlnlng, July 1984 Madison—Anchutz Mlnlng, July 1984 Mlssourl Lead Belt —Amax est!mates, July 1984 Gasquet Mountain–California N!ckel Corp , July 1984 Duluth Gabbro—State of Minnesota, l?eg~onal Copper. fV/cke/ Study, 1979 mated cost of production has declined over the current maximum allowable limit for selenium last few years with the discovery of higher in jet engine superalloy is 5 parts per mil- grade reserves and improved mine planning, lion. )57 and the mine life has almost doubled to 20 The proposed mining area is surrounded by years. An estimate provided to OTA by Noranda private and public lands, approximately 6 miles holds that about $16 per pound is the price of from a wilderness area on National Forest cobalt needed to promote the development of land. Some of the mining claims (not connected the project, should that occur, 3.7 million with the Blackbird Mine, as proposed) extend pounds of cobalt is expected to be recovered 58 into the wilderness area. However, the Act per year.58 creating the wilderness area made special pro- The Blackbird ores contain high levels of visions for exploration for cobalt. No explora- arsenic, and past mining operations contami- tion activities have yet been carried out in the nated streams flowing into the Salmon River special mineral management area, despite ten- drainage, As a condition of reopening the proj- tative approval granted Noranda by the U.S. ect, Noranda agreed to install a water treat- Forest Service. ment facility and take other measures to im- Large amounts of cobalt are contained in tail- prove and protect water quality. Noranda ings from previous operations at Blackbird; negotiated a settlement with the Environmental however, Noranda does not count the tailings Protection Agency in July 1983 that allowed the in its reserves, and at present is unlikely to ex- company to close the water treatment plant, ploit them for their mineral content. The firm evidence of the declining commercial interest would thereby avoid incurring responsibility in this project. The cobalt concentrates from for rectifying water pollution and waste prob- Blackbird also contain a level of selenium lems caused by past imprudent handling of which may or may not be a problem in superalloy use. Noranda officials claim that effective techniques to reduce this element to a sTAmeriCan society for Meki]s, Qua]itv Assessment of National Defense Stockpile Cobalt Inventory, ~repared for the Federal lower level, if necessary, are available. (The Emergency Management Agency (Metals Park, OH, 1983), p. 26. Sepub]ic Law, 9Ei-31 z., The Central 1daho Wilderness Act of 1980, ‘BRi~hard Fiorini, Vice-President and General Manager, authorized exploration for cobalt in special management zone Noranda Mining Inc., persona] communication, July 1984. in the River of NO Return Wilderness area near Blackbird Mine, 170 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

these mine wastes. The State of Idaho filed a An underground and surface mining opera- preliminary suit under the Resource Conserva- tion has been proposed for the Madison Mine tion and Reclamation Act against Noranda and including a smelter to refine its own ores and previous owners for environmental damage. process existing tailings from previous mining periods, as well as the tailings from other lead Madison Mine and Missouri Lead Belt Deposits belt producers. Perhaps 300,000 to 400,000 pounds of cobalt is recoverable from these tail- Mines in the southeast Missouri lead district ings given the current technologies used by the produced 5.2 million pounds of cobalt from region’s lead mines to produce lead and zinc 1844 to 1961. In 1979, Anschutz Mining ac- 61 from their ores. Up to 1.5 million pounds quired the inactive Madison Mine, located near might be available, given changes in lead and Frederickstown in part of the old Missouri zinc recovery practices. Lead Belt, an area where most of the lead and zinc mines have been depleted. The Madison Another analysis62 of extracting cobalt from Mine produced 2.8 million pounds of cobalt the byproducts of lead-zinc mining in Missouri from 1954 to 1961, before it was closed. The estimates that 2 million pounds could be pro- mine also produced lead, copper, and nickel. duced per year, based on the recovery of 65 The cobalt mineralization is reportedly high percent of the cobalt content in currently enough in one zone in the mine to support co- mined ores. Capital requirements would be in balt production as a primary ore. the range of $40 million to $65 million to install equipment to treat the raw materials (mill If reopened, the mine could have an esti- tailings, smelter slags, mattes, copper concen- mated annual production of 2 million pounds trates and copper-cobalt cakes), This is substan- of cobalt. Recoverable geologic (as opposed to tially less than would be required to finance economic) cobalt reserves at the Madison Mine a new mining venture and would likely yield are given as 37 million pounds (in 5.6 million an acceptable return if the price of cobalt were tons of ore and 3.4 million tons of existing tail- $20 to $25 and if raw materials from several ings). 59 The depressed world price of cobalt and firms operating in the Lead Belt were pooled lack of Government action on proposed price to provide economies of scale. Successful im- supports under the Defense Production Act plementation would also require work, in ad- have led Anschutz to postpone opening the dition to that already done by the Bureau of mine. In 1981, company officials said an esti- Mines Rolla Research Center, on technologies mated guaranteed price of about $25 per pound to recover cobalt from mill tailings and blast would be necessary to promote production furnace slag. from Madison.60 Economic studies have not been revised to reflect any changes in mining Gasquet Mountain Project costs since then. Cobalt resources are contained in nickel Cobalt in the Madison Mine is a sulfide laterite deposits in northern California and mineral. Anschutz Mining has reportedly Oregon. found a previously unrecognized cobalt ore body that does not contain the lead and zinc California Nickel Corp., a wholly owned sub- customarily associated with cobalt deposits in sidiary of Ni-Cal Development Ltd. of Canada, the Missouri Lead Belt. This discovery could has proposed development of the Gasquet prove to be significant worldwide in identify- Mountain mine on unpatented mining claims ing an additional geologic environment for co- it controls in the Six Rivers National Forest in balt occurrences. northern California. The mine, along with asso-

S’JJOhn Spisak, vicepresident for Operations for Anchutz Min- elsilverrnan, et a],, Op. Cit., P. 111. ing, persona] communication, ]uly 1984. eZThiS preliminary analysis was provided to OTA by Amax, ‘U.S. Senate, Committee on Banking, Housing, and Urban which has extensive holdings in the Missouri Lead Belt from Affairs, hearings, Oct. 26, 1981, p. 145. which it produces lead and zinc. Ch. 5—Strategic Material Supply Ž 171 ciated milling and processing facilities, as mining would consist of scooping up the soil proposed would annually produce 2 million with backhaulers. Cost to build the project in pounds of cobalt (cathode), 19.4 million pounds 1982 was projected at $300 million.66 of nickel (cathode), 50,000 tons of chromite California Nickel has now split its operations concentrate (42 to 43 percent chromic oxide), into two separate units. One oversees the min- and 100,000 tons of magnesium oxide, Mine ing project itself and the other, Ni-Cal Tech- life has been calculated at approximately 18 nology Ltd., is pursuing the development and years .63 promotion of a modified acid leach processing California Nickel has sought production sub- technology that was intended for the Gasquet sidies from the government for the operation,64 mine. Six patent applications have been filed one of several factors that have made the pro- so far, and Ni-Cal intends to build a pilot plant posal controversial. Viability of the project to test the process on ores from various sources. hinges on the economics of multiple (cobalt, Marketing of the process is aimed at laterite nickel, chromium) metal production and proc- mining operations in the Pacific rim area. No essing, on successful mitigation of several ad- domestic prospects are in sight. verse environmental impacts, and on demonstration that mine areas can be reclaimed, A Duluth Gabbro draft EIS was published in March 1983, but the The Duluth Gabbro, in northeastern Min- project appears to be in suspension, nesota, has been suggested as a potential Based on a Kaiser Engineers’ mine feasibil- source of cobalt, as well as PGMs. Cobalt pro- ity study for the project, estimated total ore reduction would only be as a byproduct, depen- serves at Gasquet Mountain are 23.6 million dent on the production of copper and nickel. tons (16.0 million of which are proven reserves The area contains an estimated recoverable re- with grade of 0.75 percent nickel, 0.07 percent source of 20 million tonnes of copper, 5 mil- cobalt, and 2 percent chromium), Kaiser esti- lion tonnes of nickel, 80,000 to 90,000 tonnes mated annual ore production of 1.32 million of cobalt (145 million to 164 million pounds), tons would be required to generate 2 million and lesser amounts of titanium, platinum, gold, pounds of cobalt per year. and silver.67

Kaiser also examined several prospective A Regional Copper-Nickel Study was reprocessing techniques. It concluded that with leased by the State of Minnesota in 1979.68 The the use of a high-pressure acid leach process study, conducted from 1976 to 1979, assessed (a well-established 20-year old hydrometal- the technical aspects of the development of lurgical technology) maximum extraction of mining activities in the Duluth Gabbro and both nickel and cobalt would occur. In addi- resultant environmental, economic, and social tion, use of this process would make it possi- impacts. Mining schemes were developed with ble to recover most of the chromite in the ores the goal of generating representative models, using existing gravity concentration methods rather than for predicting or recommending and, “might yield another commercial prod- the choices that might actually be made by a uct.” 65 company developing a specific ore deposit. It was decided that technology and economic The operation would be a surface mine oper- conditions required large-scale operations for ating at the crest of 2,000- to 3,000-foot moun- Minnesota’s low-grade resource to compete in tains. The mineralization of the Gasquet de- late 1970s markets. Thus, the models provided posit is shallow, down to about 25 feet; and for a minimum annual production of 100,000 8sDOCUrnentS provided to OTA by California-Nickel, March 1983. 661bid., p. 18. 134u.s. Senate, committee on Banking, Housing, and urban eTMinnesota Environmental Quality Board (State planning Affairs, hearings, Oct. 26, 1981, p. 185. Agency), The Minnesota Regional Copper-Nickel Stud&y, 1976- 5~KaiSer Engineers, Interim Report for the Gasquet ~omtain 1979, vol. I, Executive Summary, August 1979, p. 10, Project, March 1982, p. 5-10. 6aIbid. 172 . Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

tonnes of metal (85 percent copper and 15 per- of Mines because their probable cobalt yield cent nickel). Three hypothetical mine-smelter is not considered significant.73 complexes were considered, one each with an underground, open pit or combination under- Proposed Federal Subsidies for Domestic ground/open pit mining operation. Assuming Cobalt Production simultaneous development of these three models, As is discussed in chapter 8, proposed rean annual production of 254,000 tonnes (231,000 newal of Federal support for domestic cobalt tons) of copper could be generated over a production has been the subject of consider- period of approximately 25 years. able debate in Congress and the Administra- A report prepared for OTA estimated poten- tion. Most of this debate has focused on pro- tial overall cobalt recovery of 25 to 30 percent posed Federal support for domestic cobalt from Duluth ores, with significant amounts of production, under Title 111 of the Defense the cobalt lost to mill tailings and during re- Production Act. (Title 111 authorizes purchase fining.69 For every 100,000 tonnes of copper commitments, loans, and loan guarantees for produced, associated cobalt recovery would materials, services, and facilities considered es- be about 4100 to 450 tonnes or about 800,000 sential for defense needs. ) president Reagan, pounds. 70 in his April 1982 national materials plan submitted to Congress under the National Mate- Operation of copper-nickel production at rials Policy, Research, and Development Act Duluth would be marginally economic at metal of 1980, indicated that analyses were ongoing prices of $1.50 per pound for copper and $4 to determine whether DPA incentives might be per pound for nickel, in January 1983 dollars.71 more cost effective than stockpile purchases (In 1983, the U.S. producer delivered price for in some circumstances. copper cathodes averaged 77 cents and the spot price for nickel averaged $2.20.)72 The great fluctuation in cobalt prices since 1978 in fact has made it very difficult to make Other Domestic Cobalt Deposits cost-benefit comparisons among stockpile/domestic production options, as was made clear Pennsylvania’s Cornwall Mine produced co- in hearings held in early 1983 about an Admin- balt for many years, yielding 400,000 to 600,000 istration proposal to provide federally guaran- pounds annually as a byproduct of mining iron teed price supports for domestic cobalt produc- ore. From 1940 until operations ceased in 1972, tion. 74 In August 1982, the Federal Emergency the mine produced 100,000 tonnes (182 million Management Agency (FEMA) issued a report pounds) of cobalt ore. The Gap Nickel Mine comparing four alternative combinations of in Lancaster County, PA, has 1 million tons of Title III subsidies and stockpile purchases for remaining ore at grades of 0.1 to 0,3 percent cobalt—ranging from exclusive reliance on cobalt. Although these small cobalt deposits are government stockpile purchases on the world potential resources, there has been no thorough market to extensive reliance on a government- examination of the economic and technical via- guaranteed minimum price to domestic cobalt bility of mining them. They have usually been producers—which might be used to realize the omitted from Minerals Availability System Ap- materials availability equivalent of the strate- praisal studies conducted by the U.S. Bureau gic stockpile goal of 85 million pounds of co- —.--———— balt.75 eesi]verman, et al., Op. cit., P. 181. ——.— TOThe Mjnnesota Re@ona] Copper-Nickel Study, Op. cit., p. 10. Tssl]Verrnan, et al., OP. cit. Plsi]verman, et a]., Op. cit., p. 182. These data are based on T4U.S. senate, committee on Banking, Housing, and urban conclusions from a 1975 study, Mineral Beneficiation Studies Affairs, Extension of the Defense Production Act, hearing on and an Economic Evaluation of Minnesota Copper-Nickel De- Mar. 21, 1983, 98th Cong., 1st sess., Senate Hearing 98-66 (Wash- posit From the Duluth Gabbro by 1. E, Lawver, et al,, for the U.S. ington, DC: U.S. Government Printing Office, 1983). Bureau of Mines. psFedera] Emergency Management Agency, Alternative U.S. 7ZU .s . Department of the Interior, Bureau of Mines, Minerals Policies for Reducing the Effects of a Cobalt SupplyDisruptiox]— and Materials; A Bimonthl~ Survey, December 1983/January Net Economic Benefits and Budgetary Costs, August 1982, as 1984, pp. 25 and 29. reproduced in its entirety in ibid,, pp. 15-1oo. Ch. 5—Strategic Material Supply Ž 173

For each scenario, cobalt prices, budget ex- issued for two reasons: 1) to secure “definitive penditures, and overall economic costs were data through legal contracting procedures for projected over a 10-year period (1981-90) under a cost/benefit analysis of domestic cobalt pro- both a “no disruption” assumption and a peace- duction”; and 2) “to determine if domestically time disruption assumption affecting 50 per- produced cobalt will meet national security recent of normal U.S. supplies. The disruption quirements.” 77 DOD maintains that the issu- was assumed to occur in 1985. Each of these ance of the draft RFP was simply to evaluate scenarios, which addressed the 1981-90 period, the costs and benefits of the proposal, in or- were intended to provide an equal degree of der to support activities of its DPA Title III supply security. FEMA recommended, as the steering committee, which has been set up to most cost-effective option, a so-called “hybrid” evaluate candidate DPA projects. However, the alternative entailing a 5-year program of gov- cobalt pilot plant became an issue in congres- ernment-stimulated production of 10 million sional debate about amendments to the Defense pounds of cobalt annually from domestic production Act in April 1984. (The DPA amend- mines, supplemented by stockpile purchases ments are discussed in chapter 8.) of 1,42 million pounds for 10 years. The domestic production would be stimulated through a Domestic Mining and Processing Technology Prospects federally guaranteed minimum price of cobalt Lateritic deposits containing cobalt are suited of about $15 per pound. to open pit mining and to the continuous sys- When hearings were held on the FEMA pro- tems of excavators and conveyor belts that will posal in March 1983, cobalt prices had fallen gradually become more common in steep pits. to about $6 per pound on world markets. The Open pit mining in harder rock would be prac- U.S. General Accounting Office (GAO), which ticable in the copper-nickel-cobalt deposits of testified on the FEMA report,76 found that the Duluth Gabbro, with underground mining FEMA’s “stockpile only” analysis in a nondis- at depths involving open stoping and room- ruption scenario assumed cobalt prices would and-pillar methods. In the steeper hard-rock rise to over $36 per pound by 1990, more than bodies of cobalt ore such as at Blackbird, cut- double the price projections made by other gov- and-fill mining and the new ramp-in-stope sys- ernment agencies. In its hybrid scenario, tem underground methods could be appro- FEMA assumed that Federal price guarantees priate. for domestic production would only be neces- Process technology has been developed for sary for a 5-year period. This would only be recovering cobalt from the Blackbird and the case if FEMA’s projected cobalt price is as- Madison deposits, and preliminary pilot-scale sumed to be accurate. GAO found that, at 1983 testing has been completed for both properties prices, buying cobalt on the world market for and byproduct cobalt production from Missouri’s the stockpile would be far cheaper than sub- lead mines. Commercial facilities have not sidizing domestic production. been designed or tested, however. Ore process- Another Defense Production Act issue that ing systems could be designed for these depos- has received considerable attention concerns its, plus Duluth Gabbro, that would allow ship- a Department of Defense (DOD) proposal for ment to the existing Amax Nickel refining pilot plant production of domestic cobalt in or- plant at Port Nickel for final processing. der to evaluate the quality of this cobalt for de- The Bureau of Mines has conducted research fense applications, In 1983, the Air Force is- into reclaiming the cobalt from Missouri lead sued a draft Request For Proposal (RFP) to ores which is currently neglected (an estimated potential domestic producers concerning such a project. According to DOD, the draft RFP was 77As discussed in U.S. senate, Committee on Banking, HO Us- ing, and Urban Affairs, hearing: Reextension of the Defense T~Statt}m ent of J, Dexter peach, Director, Resources corn mu- Production Act, Hearing on S. 1852, Sept. 15, 1983, Senate Hear- nitj’ and Economic Iii\’ision, U ,S. General Accounting Office, ing 98-400 (Washington, DC: U.S. Government Printing Office, as reproduced in ibid., pp. 3-6. 1983), p. 159. 174 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

2.5 million pounds of contained cobalt per year iron concentrates. Nickel and cobalt are then is lost) during lead, zinc, and copper process- produced by standard selective precipitation ing.78 In other research, the Bureau investi- and solvent extraction methods, and further gated the extraction of cobalt from the liquid refining is accomplished by electrowinning. which remains after dilute acid solutions have leached copper from its ore. One U.S. copper Domestic and Foreign Cobalt Processing mine might be able to contribute 1.3 million pounds of cobalt per year through this proc- The primary industrial uses of cobalt are in ess, which has not yet been economically evalu- superalloys, magnetic alloys, catalysts for the ated.79 petroleum and chemical industries, and as a binder in tungsten carbide cutting tool mate- Research on Blackbird complex arsenical rials. While catalyst producers use chemical copper-cobalt ores is attempting to find the ba- forms of cobalt, superalloy and tungsten car- sis for less costly extraction technology than bide makers use pure metal in cathode and currently exists. Investigations have centered extra-fine powder forms, respectively. Mag- on methods for improving hydrometallurgical netic alloy production uses powder metallurgy technology because severe sintering and atmos- techniques, and fabricators purchase either pheric pollution problems occur with an alter- cathodes or powder forms. native roasting procedure. Selective solvent extraction processes are being compared with Cobalt is produced from a variety of ores, and conventional precipitation processes for re- the processing, tailored for each deposit, de- moving iron and recovering cobalt, nickel, and pends on the type of ore in which the cobalt copper from the resultant leach liquids.80 occurs, as figure 5-4 shows. Processes can be grouped into two general categories, pyro- A comprehensive plan to recover all of the metallurgical and hydrometallurgical. The mineral values in Duluth Gabbro ores (nickel, pyrometallurgical process is usually conducted copper, cobalt, silver, gold, and PGMs), rather in three stages. First, the minerals in the ore than concentrate on the primary metals, has are concentrated. Second, a smelting or roast- undergone investigation by the Bureau of ing process is used to produce a matte contain- Mines Twin Cities Research Center in Min- ing cobalt, with associated sulfur and the nickel nesota. The approach is a combined pyrometal- and/or copper of the original ores. In the third lurgical-hydrometallurgical process to recover step, the matte is treated chemically or elec- a maximum amount of the byproduct metals trolytically to separate the cobalt as metallic without sacrificing energy or metallurgical effi- 81 powder or cathodes, or as cobalt chemicals. In ciency. hydrometallurgical processes, the concentrated Laterite ores containing cobalt could bene- ore can be chemically processed without the fit from a commercial hydrometallurgical proc- intermediate smelting step but does require the ess developed by Ni-Cal Technology Ltd. as a application of heat and pressure. spin-off of the Gasquet Mountain project in Much of the cobalt content of mined ores is northern California. After separating out chro- never recovered, owing to processing technol- mite from the mined ores, a slurry of the re- ogies and economics or to excessively low sidual nickel-cobalt-iron minerals is leached, cobalt grades. Processes are such that a high producing separate nickel-cobalt sulfide and recovery of the primary metal is often detrimental to the recovery of cobalt. In Zaire, for of the Interior, Bureau of Mines, Research WI. s. Depaflrnent instance, the recovery of the cobalt content in 83, p. 89. mU. S. Department of the Interior, Bureau of Mines, hfinera] the mined ores is only 30 percent, and in Zam- Zndustry Survey: “Cobalt in February 1984. ” bia, 25 percent. (Cobalt is lost into tailings ~Research 83, op. cit., p. 91. @lNational Materials Advisory Board, A Review of the Minerals when the ores are initially concentrated and and Materials Research Programs of the Bureau of Mines, p. again when the concentrates are processed.) 53; Research 83, op. cit., p. 83. Yields of cobalt could be increased somewhat .

Ch. 5—Strategic Material Supply ● 175

Figure 5-4.—Simplified Flowchart for the Production of Cobalt Nickel Nickel sulfide oxide concentrates ore

Converted nickel matte

by improving the efficiency of producing co- Ferronickel was originally developed by New balt from the concentrates, Caledonia’s SLN and is used in lieu of nickel metal in the steel industry for the production Nickel laterite ores tend to have cobalt associated with them in very low (0.02 to 0,11 per- of iron-nickel steels. Use of nickel metal is less energy-intensive than ferronickel, but ferro- cent) grades. These ores can be leached to nickel is not so much more expensive that steel- separate out both nickel and cobalt, The eco- maker will alter their traditional methods. nomics of nickel production, if energy sources Nickel metal, however, must be used when the are available and competitively priced, usually cobalt in ferronickel would be detrimental to demand, however, that the nickel ores be smelted the final product. into ferronickel. The cobalt contained in the smelted ores is either lost into the ferronickel or the slag. New Caledonia, for instance, pro- Domestic Processing Capacity duces limited amounts of cobalt from nickel The United States has the operating capac- laterite deposits, because its main effort is con- ity only to refine imported cathodes and proc- centrated on producing ferronickel. The cobalt ess nickel-cobalt mattes or recycled materials that is produced is a byproduct of some ore into cobalt powder (table 5-23). In 1980, only diverted into nickel metal production. Substan- one-tenth of the 10,825,000 pounds of cobalt tially higher amounts of cobalt are produced metal consumed in the United States was pro- by one nickel mining firm in Australia as a reduced domestically. The United States has no sult of its ore-matte-nickel metal processing capacity to produce superalloy-grade cobalt, steps. Other copper and nickel producers to- This material is all imported. tally neglect the cobalt units in their deposits. In this category are the Hanna Mining opera- At its refinery in Louisiana, Amax Nickel tion at Cerro Matosa in Colombia, the Larco produces cobalt powder, which is sold for ap- operations in Greece, Bonao in the Dominican plications other than superalloys. The plant, Republic (Falconbridge), and the now-moth- which mainly produces nickel, was originally balled Inco operation in Guatemala. designed with a 5 million to 6 million pound 176 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

Table 5-23.—U.S. Cobalt Processing Capacity

Source Product material Firm Annual operating capacity Superalloy grade ...... none Powder ...... Imported smelted Amax Nickel 1 million pounds ores (matte) Capable of production expansion to about 3 million pounds; can add electrolytic circuit to produce superalloy grade Extra-fine powder ...... Cathodes (Zaire) Carol met 2 million pounds Domestic scrap GTE 32,000 pounds (pilot plant operation) Salts (chemical) . . . Recycled Hall Chemical 1 million pounds catalysts and Plus 3 million to 4 million pounds scrap from projected plant; could add circuit to produce superalloy grade SOURCE Office of Technology Assessment. U.S. Cobalt Consumption, 1982

Thousand pounds End use contained cobalt Superalloys...... 3,319 Steel alloys...... 326 Other alloys ...... 2,829 Chemical ...... 2,846 Other ... , ...... 148 Total ...... 9,468 SOURCE: U.S. Department of the Interior, Bureau of Mines. Minera/s Yearbook 1982 annual output capacity for cobalt. Available from Zaire. The plant capacity is 1,000 tonnes feed and markets, however, have restricted the (about 2 million pounds) annually. The other plant to a maximum of just over 1 million domestic source of extra-fine powder is the pounds. Estimates are that output could be GTE Chemical and Metallurgical Division at raised to some 3 million pounds in a very short Towanda, PA. Employing their own process, time, provided feed was available. In addition, tungsten carbide scrap is used as the feed ma- all plans and design work have been completed terial, and a pilot plant now in operation has for adding an electrowinning operation that a capacity of 175 tonnes (32,000 pounds) would produce cobalt cathodes suitable for su- annually. This process could also be used to peralloy use. This plant modification would purify substandard grades of cobalt and, if take approximately 2 years to complete. Feed equipment were added to compact the powder for the plant is currently imported from Bots- produced, could possibly provide a source of wana and Australia in the form of mixed metal cobalt for superalloy use. mattes. Other sources—e.g., Morocco, Uganda, Hall Chemical has plants in Ohio and Ala- and Peru—have been investigated and, while bama to recycle catalysts and scrap metals, in- deemed technically possible, have been dis- cluding cobalt, into chemical products for re- carded as economically unfeasible. Amax’s use. (See a discussion about the prospects for operation is a likely candidate to process and cobalt recycling in chapter 6.) A new plant has refine any domestic nickel-cobalt ores that been planned by Hall that would more than might one day be produced. triple its capacity, but the project has been At Carolmet, Inc., in North Carolina, an halted by the recent recession, A large portion extra-fine powder for use in tungsten carbides of this new capacity could be used exclusively is produced from cobalt cathodes imported for cobalt refining (from ore concentrates) with —

Ch. 5—Strategic Material Supply . 177 a lead time of 3 to 4 months. Installation of an above. Still, operational domestic capability re- electrolytic circuit to produce cobalt cathodes mains at the last stages of processing only. Ini- suitable for superalloy would require about 18 tiation of domestic ore production would re- months. quire the development of smelting and refining facilities, as well. This could be accomplished Unlike the decline in domestic capacity for by upgrading the standing plants in order for processing manganese and chromium, U.S. co- the United States to have the greatest flexibil- balt processing capacity has increased in the ity and ability to use the cobalt produced in the past 5 years with the addition of the two extra- most critical applications (e. g., superalloy). fine powder production facilities mentioned

Manganese Production and Processing

The bulk of the world’s manganese ore is pro- the ores to 40 and 48 percent. (U.S. industry duced in a few countries where large, discrete standard is 48 percent for ferroalloy produc- deposits of high-grade ore are mined by multi- tion), Manganese carbonate minerals, on the national firms. These deposits offer the possi- other hand, must be converted to an oxide by bility for expansion on a large scale, but sub- roasting. Currently, only Mexico mines car- stantial mine expansion would have to be bonate minerals, but this mineral type may accompanied by expansion of processing and eventually become a more important source as transportation facilities, The Western Hemi- the higher grades of oxide ores are exhausted. sphere has two sources of manganese ores, Manganese ores are classified as metallur- Mexico and Brazil. One new deposit may come gical, chemical, or battery grades. For metal- onto the world market soon—part of the lurgical grade,82 the iron, silica and especially Grande Carajas project in Brazil. How much phosphorus content are important, In battery this operation will provide in terms of net gain grades the manganese content is expressed in in the world’s export supply of manganese is terms of manganese dioxide, and these ores unknown owing to Brazil’s growing domestic typically contain from 70 to 85 percent MnO steel industry. 2 (44 to 53 percent manganese). The largest occurrences of worldwide eco- The United States imports 99 percent of its nomic manganese deposits are sedimentary in consumption of manganese ore and metal. In origin, formed from either volcanic or weather- 1980, manganese ore accounted for 41 percent ing activity. Residual ores, which make up a of U.S. imports of manganese, but an ongoing small part of the economic base, are formed trend in producer countries to integrate ferro- in a concentration process similar to that for alloy production with ore mining is decreas- laterite deposits. Manganese is also found in ing the ratio of manganese ore to ferroalloys hypogene deposits and with metamorphic in U.S. imports and throughout world markets. rocks, primary sedimentary ores that have been subjected to changes in mineralogy and texture In 1982, manganese ore was produced in 26 due to pressure and/or heat. Manganese is countries. Of these, 8 accounted for 98 percent mined as an oxide and/or carbonate mineral, of total world production. As indicated in table and both minerals are often present to varying 5-24, the Soviet Union and South Africa pro- degrees in each deposit, duced 64 percent, while five countries (Gabon, Australia, Brazil, India, and China) each made The bulk of the ore mined today, however, a substantial contribution of over a million is an oxide mineral. Initial processing of these ores involves only sorting by size and concen- azAbout 9CI ~rcent of the world’s manganese ores are destined trating to increase the manganese content of for metallurgical uses, 178 Ž Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

Table 5-24.—World Manganese Ore Reserves and Production by Country (thousand tons)

Reserves (recoverable metal Product ion Estimated man- Percent of world Country producer content) 1982 ore output ganese content product ion Australia ...... 51,600 1,248 37-53 5 Brazil ...... 20,900 1,433 38-50 6 China ... , ...... 15,000 1,760 20+ 7 Gabon ...... 110,000 1,667 50-53 7 India...... 21,500 1,596 10-54 6 Mexico...... 3,500 561 27+ 2 South Africa ...... 407,000 5,750 30-48 23 Soviet Union...... 365,000 10,140 30-33 41 Other ...... 5,500 599 2 Total ...... 1,000,000 24,754 100 SOURCEU.S Department of the lnterioL Bureauof Mines Resemes—Minera/ Cornrnodltv Profi/e 1983” Manganese, D 8,table3 Production–Minerals Yearbo6k 1982, voI l,tabl;9, p.587 short tons of ore. Mexico is the smallest pro- mines by Cia. Vale do Rio Doce (CVRD), a cor- ducer of the eight at half a million short tons. poration jointly owned by the Brazilian gov- Major exporters to market economy countries ernment and local, private shareholders. are South Africa, Gabon, India, Brazil, and By contrast, manganese production in India Australia. India’s exports are controlled by a and China is supplied by numerous small- or government quota system and are destined pri- medium-sized operations scattered throughout marily for Japan; the other four nations are the each country. China’s production is run by the principal suppliers to the United States, Japan, national government, while India’s ores are and Western Europe. mined by a mixture of local private and state or national government firms. Foreign Production of Manganese U.S. firms participate in a number of foreign In general, the manganese mining interests manganese mining operations (table 5-25). of each producer country are controlled by one United States Steel has interests in Gabon’s or two firms, reflecting the concentrated nature Comilog and South Africa’s Associated Man- of the deposits in these countries. Two private ganese; International Minerals & Chemical of firms with primarily local, but also interna- New York has a minority interest in South tional, investors dominate South African pro- Africa’s Samancor. Bethlehem Steel owns part duction. Their deposits in South Africa occur of Brazil’s ICOMI and until the late 1970s was in its northern Capetown Province in the Post- a partner in Mexico’s Autlan. British investors masburg and Kuruman (Kalahari) districts. The are heavily involved with South African pro- latter provides 75 percent of the total output. ducers through traditional ties with the Anglo- American Corp., Ltd., Anglo Transvaal-Con- The Soviet Union’s government-controlled solidated Co. Ltd., and General Mining Union operations produce mainly from two areas in Corp. Ltd (Gencor). These investment houses, western Russia: the Nikopol Basin deposits, or groups, hold interests in Samancor and which contribute high-volume production; and Associated Manganese. those in the Tchiatura Basin, which provide the highest grade ores. Mexico and Gabon each Historically, ores have been exported from have one privately operated firm in which the producer countries after relatively minor bene- government holds a minority interest. Brazil’s ficiation. The ore is ultimately moved to con- producing firms are a mixture of private and sumers by sea, which, along with transporta- public sector interests. Brazil’s manganese de- tion from a mining area to a shipping port, can posits in the Grande Carajas Development Proj- account for a major portion of the cost of the ect are being developed along with iron ore product to consumers. Approximately two- Ch. 5–Strategic Material Supply ● 179

Table 5-25.—Manganese Mining Industry by Country

Ownership Primary national Country Major firms Sector Major holdersa identity Australia ...... Groote Eylandt Mining Co. Private Broken Hill Prop. (100) Local Brazil ...... Industria e Comercio de Private Bethlehem Steel (49) Us. Minerios S.A. (lCOMl) Private CAEMI (51) Local Urucum Mineracao S.A. Private/ CVRD b (47) Local government Various Local Gabon ...... Compagnie Minere de Government BRGM (19) French l’Ogooue S.A. (Comilog) Government (15) Local Private Imetal (16) French Private U.S. Steel (41) Us. Mexico ...... Cia. Minera Autlan S.A. de Government (34) Local C.V. Private Various Local

South Africac ...... SA Manganese Amcor Ltd. of Private/ African Metalsd (40) Local S.A. (Samancor) government Private AngloAmer (32) Local/U.K. Private Gencor (7) Local Private Lavino e (10) Us. Associated Manganese Mines Private Assoc Ore & Metalf (38) Local of S.A. U.S. Steel (20) Us. Fox Street (34) U.K. awith approximate percentage of control, if aval~able. bcla. Vale do RIO Doce, which also controls the emerging production at Caralas In Brmil. CT’here are six finance houses (the ‘, Groups,,) which dominate the south African industry The Anglo Arnerlcan Corp of S,A Ltd (AngloAmer), Gold Fields Of S.A Ltd , General M!ning Union Corp Ltd (Gencor), Rand Mines/Barlow Rand; Johannesburg Consolidated Investment Co Ltd (JCI); and AngloTransvaal Consolidated Investment Co Ltd. (AngloTC) downed bY Iscor, a state-owned integrated steel firm, (49 750/.) and Gencor (5025°/0) eVJholly owned by lnternatlonai Minerals and Chem!cal (U.S ). fowned by AnglOTc and Aml@mer. SOURCES E&MJ 198.3 frrterrtationa/ Directory of M/rr/ng, Bureau of Mines, M/rtera/ Commodity Profi/e 1983.’ Manganese; Off Ice of Technology Assessment thirds of the manganese ores traded on the free France (8 percent), the exporting countries market are sold by contracts (generally of 1 were principally South Africa, France, and year’s duration) between producer and indus- Norway. More recently, Brazil has increased trial user. Other forms of trade include captive its exports because its ferromanganese produc- sales within integrated firms (e. g., between tion capacity is far in excess of its domestic Gabon and U.S. Steel) and spot market pur- steel demand. South Africa remains the world’s chases when excess supplies are available. leading supplier of manganese ferroalloys, and Western Europe and the United States are the World trade in manganese is now undergo- major importers. In 1982 the United States re- ing a shift from basic ores to the higher proc- ceived 50 percent of its manganese ferroalloys essed manganese ferroalloys. This new ferro- from South Africa and 21 percent from France. alloy production capacity competes primarily with plants close to steelmaking centers in the All of the major ore producers, with the ex- United States, Western Europe, and Japan. As ception of Comilog in Gabon, have the capa- table 5-26 shows, however, not only the ore- bility to produce manganese ferroalloys. Trade producing countries have increased produc- in manganese ferroalloys may not be replac- tion of ferroalloys. Some other countries have ing trade in ores as rapidly as ferrochromium increased or added local production to meet is replacing chromite. Gabon is at the discus- the domestic and export markets steel indus- sion stage regarding ferroalloy production, but try demand. While the major manganese ferro- any actual projects will depend on develop- alloy producing countries in 1980 were the So- ment of an energy source, Australia is re- viet Union (23 percent of world’s total), Japan strained from increasing its ferroalloy capabil- (14 percent), South Africa (9 percent), and ity by the lack of low-cost energy. Only in 180 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

Table 5-26.—Ferromanganese and Silicomanganese Production by Country (thousand short tonnes, gross weight)

Percent Percent Percent change Country a 1974 of total 1980 of total 1974-80 Argentina...... 34 0.5 39 0.5 15 AUSTRALIA ...... 69 1.1 124 1.7 80 Belgium ...... 108 1.7 94 1.3 –13 BRAZIL ...... 124 2.0 303 4.0 144 Canada...... 100 1.6 95 1.3 –5 CHILE ...... 12 0.2 6 0.1 –50 CHINA ...... NA 390 5.2 France ...... 587 9.4 551 7.3 –6 Great Britain ...... 91 1.5 57 0.8 –37 INDIA ...... 163 2.6 193 2.6 18 ITALY ...... 133 2.1 141 1.9 6 JAPAN ...... 1,182 19.0 969 12.9 –18 North Korea ...... 0 77 1.0 SOUTH KOREA ...... 0 60 0.8 MEXICO ...... 70 1.1 172 2.3 146 Norway...... 577 9.3 496 6.6 –14 Peru ...... 0 1 0.0 Poland ...... 138 2.2 183 2.4 33 SOUTH AFRICA ...... 400 6.4 650 8.6 63 Spain ...... 211 3.4 239 3.2 13 SOVIET UNION ...... 1,075 17.3 1,644 21.8 53 United States ...... 740 11.9 377 5.0 –49 Venezuela ...... 0 4 0.1 West Germany ...... 353 5.7 248 3.3 –30 YUGOSLAVIA ...... 44 0.7 73 1.0 66 Zimbabwe ...... 0 3 0.0 Other C ...... 13 0.2 334 4.4 2,469 Total ...... 6,224 100.0 7,523 100.0 16 auPPer ~a~e lndlcates Countv Was ore producer in both years, but did nOt necessarily cover its needs

bproduced ore in 19740niy. Cln 1974 ,ncludes Thailand and Sweden; In 1980 includes BuLGARIA, Czechoslovakia, East Germany, and portugal All Were ferroalloy producers in 1974butamountof manganese ferroalloys unknown; thus,total shown for 1974 production ls notaccurate SOURCE: U.S, Department of the Interior, Bureau of Mines, Minera/s Yearbook. 1976and 1981

Tasmania, south of the Australian mainland, Australia’s Groote Eylandt in 1966. There is where hydropower is available, is it economic one new manganese mining project now under to produce ferroalloys. However, ore must be development; Carajas in Brazil may add export shipped approximately 3,000 miles from the production by 1986. north coast of Australia by sea, reducing some Between now and 2000, virtually all of the of the cost advantage of integrated ore and ferroalloy production. New manganese ferroalloy growth in total world output of manganese ore production is being added in Brazil and India. will come from the expansion of existing mines rather than the opening of new mines. A de- During recessionary periods this production crease or cessation of production from one appears on the export market instead of being source would force expansion of production consumed in domestic steel industries. from the remaining suppliers, Current world As indicated by table 5-27, there have been mining capacity is substantially greater than shifts over the last 20 years in the relative out- demand, as shown in table 5-28. In 1981 only put of ore producer countries. Most notably, 73 percent of existing capacity was used, That world production has been increasingly con- unused capacity was 1½ times South Africa’s centrated in the eight producer countries listed. total output. Under such conditions, rapid ex- From 79 percent in 1960, they now supply 97 pansion of production from existing mines is percent of the world’s total ore needs. The most quite feasible. In times of tighter markets, there recent producer to enter the world market was is potential for expansion of current mine ca- ———. ..—

Ch. 5—Strategic Material Supply Ž 181

Table 5-27.—Historical Manganese Ore Production, 1960-80, by Country (thousand short tons, gross weight)’ (percent of world total)

1960 1965 1970 1975 1980 Producer country Tons Percent Tons Percent Tons Percent Tons Percent Tons Percent Australia ...... 68 <1 112 1 828 4 1,714 6 2,226 8 Brazil ...... 1,101 7 1,539 8 2,071 10 2,376 9 2,515 9 China ...... 1,323 9 1,102 6 1,100 5 1,100 4 1,750 6 Gabon ...... 0 0 1,411 7 1,602 8 2,444 9 2,366 8 India ...... 1,321 9 1,815 9 1,820 9 1,688 6 1,814 6 Mexico ...... 171 1 144 1 302 2 473 2 493 2 South Africa ...... 1,316 9 1,738 9 2,954 15 6,359 23 6,278 22 Soviet Union ...... 6,473 43 8,351 43 7,541 38 9,324 34 10,750 37 Subtotal ...... 11,773 79 16,212 83 18,218 91 25,478 94 28,192 97 Other ...... 3,216 21 3,345 17 1,866 9 1,598 6 869 3 Total ...... 14,989 100 19,557 100 20,084 100 27,076 100 29,061 100 aores Vary widely In contained manganese, see table 22 SOURCE U S Department of the Interior, Bureau of Mines, M/nera/s Yearbooks, 1961, 1966, 1971, and 1981

Table 5-28.—Manganese Mine Capacity and Usage in 1981, by Country (thousand short tons, contained manganese)

Estimated annual Percent Estimated unused Producer country capacity in use capacity Australia ...... 1,300 580/o 550 Brazil ...... 1,350 76 320 China ...... 550 96 22 Gabon ...... 1,300 64 470 India...... 800 72 225 Mexico...... 300 81 60 South Africa ...... , . . . 3,000 72 840 Soviet Union ...... 3,800 80 760 Other ...... 485 63 178 Total ...... 12,885 73 3,610 SOURCE US Department of the Interior, Bureau of Mines, &finera/s Cornrnodify Profr/e 1983 Manganese pacity, especially in South Africa, Gabon, and jor exporters are expected to be South Africa, Australia. Given a year or more extra lead time, Gabon, and Australia, all of which have sub- Brazil and Mexico could increase their produc- stantial resources in relationship to their own tion, as well. domestic needs. Caracas in Brazil and a site at Tambao in Up- In contrast, India’s ore production is increas- per Volta are the only deposits of manganese ingly tied to its expanding domestic steel pro- ore that might alter future supply patterns. The duction. India is also limited in the export mar- Tambao deposit suffers from its location, far ket by the low grade of its manganese deposits from existing transportation facilities. Activ- and the inefficiency of its overall operations. ity there was halted at the end of the explora- Brazil’s future as a major supplier to the ex- tion phase. Although the Carajas project is port market is uncertain, Facing the depletion proceeding, obtaining capital for development of its most productive deposit in the 1990s, Bra- of such deposits is difficult because they must zil has instituted a policy of reserving much produce ore for markets that are already filled of its ore, including 50 percent of Carajas’ fu- by suppliers with large reserves. Thus, the cur- ture production, for ferroalloy production and rent ore producer countries will be the major the domestic steel industry. If the Carajas de- producers of the future. Among these, the ma- posit reaches its planned output of 1 million 182 . Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

tons of ore per year and is the sole source of Company officials have stated that, given an exports, this policy will result in an export level emergency, significant expansion in these of about 50 percent less than current exports areas would take an estimated 3 years to com- from Brazilian manganese mines. plete. With government financial assistance and guarantees of long-term markets, facilities The Soviet Union was once a major supplier could be in place in 2 years. Australia is cur- of manganese ore to world markets, but since rently heavily reliant on Japan as an export cus- the 1970s, it has concentrated on trade within tomer because of high shipping costs to other the Eastern bloc. Historically, this provided for major consumers. Its one manganese ferroalloy self-sufficiency among this group. In the 1980s, plant is located in Tasmania and was originally however, some Eastern bloc countries (e.g., constructed to supply BHP steelmaking needs. Romania, Czechoslovakia, and Poland) have Recent expansion, however, has been based on begun satisfying a portion of their ore needs the export market. by importing from the same sources as the market economy countries. The Soviet Union ne- Brazil gotiated with Gabon for supplies of ore in 1984 and has purchased from Gabon, India, and There are two principal ore-producing areas Australia in the recent past. The assumption in Brazil, one in the Federal Territory of Amapa in the West is that, since the ore production and the other in the Matto Grosso state. The tonnages being reported from the Soviet Union existing mines’ location, remaining life, or ore are not declining, they are experiencing a quality limit their attractiveness. The Amapa de- depletion of higher grade material. China posits, owned by ICOMI, are located in north- produces for internal consumption, and this ern Brazil, produce half of Brazil’s output, and policy is expected to continue as the country’s are operated mainly for exports because of the domestic needs increase. high cost of transporting the ores to the steelmaking center in southern Brazil. The steel Following is a brief description of the oper- plants are supported by the Matto Grosso operations of the producer countries of interest, ations of Urucum Mineraco S. A., and a small with discussion of major factors that may af- operation in Minas Gerais. ICOMI’s reserves fect future development and production of ore are expected to be depleted by the 1990s. Pro- and ferroalloys. duction by Urucum (about 100,000 tons of manganese ore in 1980) is hampered by the qual- Australia ity (high alkali content) of the ores and accessibility of the deposits, which lie 2,000 Groote Eylandt Mining Co., a wholly owned kilometers from the nearest port. Future in- subsidiary of the Broken Hill Proprietary Co, creases in production at Urucum could come (BHP)-–Australia’s sole integrated steelmaker–- from an underground deposit if manganese produces from open pit mines located on an prices were to double. island 50 kilometers off the coast of the North- ern Territory. Beneficiated ore is hauled 16 The Grande Carajas Development Project, kilometers to Milner Bay for ocean shipping. some 900 kilometers from the Atlantic coast Capacity has recently been increased to 2.6 mil- in the state of Para, is a mineral development lion tons per year with the installation of a that includes iron ore, manganese, copper, plant to upgrade ore fines (which were previ- nickel, gold, tin, and bauxite. The project is ously discarded). Further expansion plans to financed by national and international loans. increase capacity to 3 million tons per year Participants have included the EEC, Japan, have been delayed because of unfavorable mar- West Germany, and the World Bank. ket conditions. Three manganese deposits have been identi- Barriers to expansion are the concentration fied: Azul, Buritirama, and Serene. Develop- plants and loading facilities at Milner Bay. ment of the Azul deposits (with reportedly 16 Ch. 5—Strategic Material Supply ● 183 million to 24 million tons of manganese)83 is Sereno deposits are currently unexploited. To- the second phase of the project. The initial gether, these deposits have considerably less phase has included the preparation of iron ore identified reserves and resources than does mines, along with the construction of the nec- Azul. essary infrastructure. A railroad to Sao Luiz Brazil has five firms involved in producing on the coast and new ocean port facilities at various types of manganese ferroalloys for both Ponta da Madeira are expected to be completed domestic and export purposes. in 1986, when manganese production of metallurgical grade ores will begin, Gabon The deposit is currently being exploited for Market conditions now hold output from battery-grade ores which, because of their high Gabon’s Moanda mines well below the 1979 value (grades up to 75 percent MnO ), can be 2 peak of 2,5 million tons. These mines are ca- economically transported by truck to the coast pable of supporting up to 4 million tons per for shipment, The metallurgical ores will be year but shipments are limited to 3 million tons hauled from an open pit mine 20 kilometers to per year via the available transportation sys- the railhead at the iron ore mine area. Proc- tem.86 This involves the use of a 76-kilometer essing will consist of washing and crushing, aerial ropeway connection to the Congo’s rail using existing facilities originally constructed system, followed by a 560-kilometer rail trip to as a pilot plant for the iron ores, It is expected the port of Pointe Noire. An alternate route, that the output from the manganese mine will the Trans-Gabon railway, has been under con- eventually total 1 million tonnes (900,000 tons) struction since 1974. Completion to the mine of about 48 percent manganese ores per year. site near Franceville (500 more km) plus up- With additional beneficiation equipment, the grading of the timber port at Owendo, Gabon, deposit could support up to 2 million tonnes 84 would make possible the shipping of the max- per year. This extension of facilities, however, imum of 4 million tons per year from Moanda, must await favorable market conditions, An on- although current market conditions would not site ferroalloy plant was included in the orig- make increased shipments economically fea- inal concept but lack of financing has shelved sible, Development of ferromanganese facilities these plans. are under discussion, but no firm plans have U.S. Steel was involved in the discovery of yet been made. the Carajas deposit, but its interest was bought out by CVRD in 1976. Utah International (pre- Mexico viously owned by General Electric but in April The Molango district deposits in Mexico are 1984 transferred to Broken Hill Proprietary of mined by the Cia. Minera Autlan S.A. de C.V. Australia) holds the rights to the development and represent significant reserves and re- of the Buritirama manganese deposits at Carajas; sources which could support a substantial in- however, there are no development plans be- 85 crease in production if the market and investing considered for the near future. The 87 ment funds were available. The deposits

- BsIJ{luis Fuchs of the CVRD office in New’ York, personal com consist of two types, carbonates and oxides. munication, December 1983. Total reserves were placed at 65 The carbonate ores represent the bulk of the million tonnes of ore at about 48 percent manganese. Of this minerals present, and Autlan has reported amount, 10 million tonnes consists of battery grade material at measured reserves of 28.4 million tons of car- 74 to 75 percent Mn02. The National Materials Advisory Board, in Manganese Reserves and Resources of the World and Their bonate ore at 27.5 percent manganese (from a Industrial Implications, 1981, reported a crude ore resource of total estimated resource of 1.5 billion tons at 65 million tonnes that woul{j wash 44 million tonnes of product grading 46.5 percent manganese. Thomas Jones, commodity 25 percent). specialist at the Bureau of Mines, reports 45 million tonnes of ore at 40 percent manganese. —.————— r341Jou is Fucbs, op. c it. B6ROhert 1,’esperance, U.S. Steel Corp., Pittsburgh, pA, Per- 85Jean Goity, ~ub]ic Relations, Utah 1nternationa], San Fran- sona] communication, August 1983. cisco, persona] communication, Februar]’ 1984. E7NMAB 81, p. 39. 184 • Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

After mining and beneficiation, these car- man (Kalahari) districts. The capacity of these bonate ores are converted to nodules of man- mines has been estimated to be greater than 9 ganese oxide (39 to 40 percent manganese) in million tons of ore per year. Even at current a rotary kiln near the mines, One of the difficul- operating rates, the reserves are sufficient to ties that Autlan manages to overcome is the last hundreds of years, and South African pro- rugged terrain of the Sierra Madre Oriental in duction is capable of rapid expansion. Trans- which their mines (open pit and underground) portation, however, could be a limiting factor are located. In these precipitous and densely because ores must be shipped south from both vegetated mountains, elevations vary from 200 mining districts by rail to either Port Elizabeth to 2,600 meters above sea level. The export ores (950 km directly south) or to Saldanha Bay, (50 percent of Autlan’s production) must be north of Capetown (800 km southwest). hauled 260 kilometers to Autlan’s maritime South Africa has four firms engaged in pro- terminal at Tampico on the Gulf Coast for ducing various manganese ferroalloys, plus shipment. two producing manganese metal. Ferroalloy The quality of Autlan’s ores has been ques- production is integrated within mine produc- tioned because of their high silica content and ing firms, either directly or through “group” relatively low grades. The general commercial investment houses. standard for ores used in ferroalloy production is 48 percent manganese. Although Autlan pro- Potential Source duces ferromanganese with its 40 percent ores, At Tambao, Upper Volta, a remote area 350 its customers blend the ores with higher grade kilometers from a railhead, some 13 million ores in order to produce 78 percent ferroman- tonnes (12 million tons) of 52 percent oxide ganese, the U.S. industry standard for a high- carbon product. The high silica content makes ores have been identified. Extensive exploration work was done and feasibility studies were the ores most suitable for the production of sili- completed during the late 1970s while the proj- comanganese. ect was being considered by a consortium con- Several projects are currently being studied sisting of a number of international firms in- by Autlan to enable them to expand their pro- cluding Union Carbide, The group subsequently duction. Among them are the opening of a new fell apart owing to the divergent goals and con- open pit mine at Noapa, the installation of a flicting interests of its members.” It would take second rotary kiln, and a new water supply sys- about 5 years to bring the area into production tem. Physically, the resources could support a and provide the infrastructure needed to ex- doubling of production, but manganese prices port the ores (the construction of a railroad and and demand in the 1980s will not support such a port). Since Upper Volta is a landlocked coun- a change in policy. The Trade and Develop- try, arrangements would have to be made with ment Program in the U.S. International Devel- the Ivory Coast for rail transiting and the de- opment Cooperation Agency has been active velopment of port facilities. in studying the manganese deposits in Mexico and in attempting to interest U.S. investors in Domestic Production of Manganese joint ventures with Autlan to expand its production.88 Domestic manganese has made some contributions to U.S. needs, especially in wartime. South Africa During the latter part of the 19th century, the United States produced sufficient manganese Associated Manganese and Samancor each from domestic deposits to meet its needs. With own mines in both the Postmasburg and Kuru- the growth of the U.S. steel industry since 1900, Sesee U.S. International Development Cooperation Agency, Trade and Development Program, The Molango Area (Mexico) Manganese Deposits of Compania Minera Autlan—The Largest 8gBenjamin Brittain, Union Carbide Corp., persona] commu- Known Manganese Ore Reserve in North America, June 1983. nication, August 1983. —

Ch. 5–Strategic Material Supply ● 185

however, domestic manganese production has Eight U.S. deposits of manganese were con- not been able to keep up with demand, Despite sidered in a Bureau of Mines Minerals Avail- a variety of government incentive programs, ability System Appraisal92 in 1982 and were domestic production was only 23 percent of termed “submarginally subeconomic.” The re- consumption during World War I, 13 percent port concluded that incentive prices ranging during World War II, and 8 percent during the from $8 to almost $35 per long ton unit93 of con- Korean war. In 1944, manganese ores were tained manganese would be required in order produced in more than 20 States, but Montana, to encourage production from these deposits, Nevada, New Mexico, Arizona, and Arkansas as compared with the market value at that time have provided the bulk of the historical proof $1,70 per long ton unit.94 Annual production duction. from these sources would peak at 900,000 tonnes (818,000 tons) of recoverable manganese Today, aside from minor amounts, the pros- 6 years after simultaneous development began, pects for production of manganese from U.S. declining thereafter (to 578,000 tons per year deposits is highly unlikely except during a sus- within 10 years, for instance) unless additional tained cutoff of imported ores. And, unless resources were located and/or technological world prices rose considerably during such a improvements were made in mining or proc- period, Federal Government production incen- 95 essing of the ores. (U.S. apparent consump- tives would be required. tion of manganese was 1.25 million tons in There has been no manganese ore (table 5- 1979 and 672,000 tons in 1982.) 29) produced in the United States since 1970.90 The last year of production of ferruginous man- The more significant deposits among the identified domestic manganese resources are ganese ores was 1981 and totaled 22,165 tons those of the Artillery Mountains, Arizona; of contained manganese from Cuyuna North Batesville, Arkansas; San Juan Mountains, Range in Minnesota (20,712 tons) and from Colorado; Aroostook County, Maine; and the New Mexico (1,453 tons). The only domestic Cuyuna Range in Montana. Collectively this production in 1984 is of maganiferous iron ores group is estimated to contain over 70 million from South Carolina which are used in pig- 96 tons of manganese. The average grade of ments (total production in 1982 of this ore type manganese in U.S. deposits is generally less contained 1,325 tons of manganese). Iron ores than 10 percent which compares unfavorably consumed in the United States in 1982 provided approximately one-third of the manga- with the major world producers who extract manganese from deposits with grades of from nese used in domestic steelmaking. Since 30 27 to 53 percent. percent of those iron ores were imported (mainly from Canada), domestic sources can The National Materials Advisory Board in be credited with 23 percent of that input.91 1976 concluded that:

‘Thomas Jones, Jr., U.S. Department of the Interior, Bureau The U.S. land-based manganese resources of of Mines, Mineral Commodities Profiles 1983: Manganese, p. 10. significant size are very low in grade and should Olsee th discussion on manganese and steelmaking in ch. 6. 97 e not be developed except in a dire emergency. — Ozcatherine c. Kilgore and Paul R. Thomas, U.S. Depart nlent of the interior, Bureau of Mines, hfanganese A ~’ai~abi]it~’— Table 5-29.—Definition of Manganese-Bearing Ores Domestic, A Minerals A~aiJabilit~r S~rstem ,4ppraisal, Infornla- tion Circu]ar/1982 No. 8889. Type Description ‘wA ]Ong ton unit is 22.4 pounds of manganese and is the stand- Manganese ore ...... Ores containing more than ard unit for quoting manganese ore prices. 35 percent Mn Q4Another study has calculated a cost estimate for IJ. S. produc- Ferruginous manganese tion at four times that of South African producers in 1980 dol- ore ...... Ores containing from 10 to lars. See Processing CapacitJr for Critical Materials, op. cit. 35 percent Mn GSKilgore, et a]., op. Cit., p. 1. Manganiferous iron ore . . . Ores containing from 5 to 10 913u, s, Bureau of M ines, Mineral Commodit~’ Profile 1983: percent Mn illanganese, p. 7, gTNatiOna] Materials Ad\, isory Board, hfan,ganese l?t?COL’erJ’ SOURCE Use of Manganese (n Steefmakmg and Steel Products and Trends (n fhe Use of Manganese As An A//oy~ng Element in Steels, OTA contract 7’echnolog~’, NMAB-323 (Washington, DC: National Academ\ report, 1983 of Sciences, 1976), p. 1.

38-844 0 - 85 - 7 , QL 3 186 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

The NMAB study stated that, while there were of beneficiation methods would be the single no known deposits in the United States of man- most significant factor for improving the eco- ganese ores that could be exploited at current nomic status of these deposits. Substantial in- or even substantially higher prices, the best creases in byproduct prices, for instance, suited deposits for development in an emer- would be necessary to significantly decrease gency on a significant scale were those of the the incentive price needed for domestic man- Cuyuna Range and in Aroostock County.98 ganese. A 9-percent increase in iron ore prices The Bureau of Mines’ appraisal results concur. would produce a 4-percent decrease in the In its estimates of mining capacity, as sum- manganese incentive price at Cuyuna Range, marized in table 5-30, these deposits could con- for instance. (Iron is also a byproduct of the tribute the highest levels of production and be Aroostoock area; silver at Hardsell in Arizona; able to operate from 14 to 61 years. and silver, lead, and zinc at Montana’s Butte District.) 99 In analyzing the impact of different variables (e.g., beneficiation and transportation costs, by- Domestic Mining and Processing Technology Prospects product prices, State severance taxes), the Bu- reau of Mines determined that technologic im- Manganese deposits in the United States are provements leading to a reduction in the cost in a variety of environments ranging from rela- ——— Q13NMAB.323, p. 14 and p. 1. ‘Kilgore, et al., op. cit., pp. 9-10.

Table 5-30. U.S. Manganese Resources and Potential Production

Demonstrated resource Estimated annual mine capacity Contained Contained Manganese Ore manganese Ore manganese Estimated grade (thousand (thousand (thousand (thousand minelife Property name by State (percent) tonnes) tonnes) tonnes) tonnes) (years) Arizona: Hardshell Mine...... 15.0 5,896 804 536 73 11 Maggie Mine (Artillery Peak) ...... 8.8 8,441 671 328 26 26 Colorado: Sunnyside Mine ...... 10.0 24,909 2,264 635 58 39 Maine—Aroostock County: Maple Mtn/Hovey Mtn . . . 8.9 260,000 20,965 4,263 344 61 North District ...... 9.5 63,100 5,472 2,620 227 24 Minnesota: Cuyuna North Range (SW portion) ...... 7.8 48,960 3,490 3,570 254 14 Montana: Butte District (Emma Mine)...... 18.0 1,232 202 400 65 3 Nevada: Three Kids Mine ...... 13.2 7,230 868 1,050 126 7 — Total ...... 419,768 34,737 13,401 1,174 SOURCES: Resources, ore grades, proposed ore mining capacity from U.S. Department of the Interior, Bureau of Mines, Manganese .4v&V/abi/ity-Dorrrestic, lC8889/1982. Balance, calculated by OTA using that data

Apparent U.S. Manganese Consumption

Tons Contained metal 1979 ...... , . . 1,250,000 1982 ...... 672,000 SOURCE: U.S. Department of the Interior, Bureau of Mines, &firrera/ Commodity Summaries, 1984, p. 98. Ch. 5—Strategic Material Supply ● 187 tively soft deposits to steeply dipping veins in grades. Chemical and roasting processes (e.g., hard rock. Thus, standard mining methods the ammonium carbamate leach and sulfur di- would include both underground and open pit oxide roast processes) have been developed for operations. beneficiating domestic manganese. These processes have so far proved to be too costly for Solution mining of manganese ore has been extended use. Grinding and fine-particle con- proposed. Two variations are possible. In one centration processes might improve the eco- the ore is mined, spread on the surface, and nomics. 102 A study to identify the three most a solvent is applied. This “heap leaching” proc- promising processes for recovering manganese ess produces a solution of manganese which from low-grade domestic sources was under- can be collected. In another process, “in situ way by the Bureau of Mines in 1984. leaching, ” a hard-rock ore body is blasted to induce permeability and the solvent is pumped into the fractured ore body, The leached solu- Domestic and Foreign Manganese Processing tion is then pumped out of the mine, These so- is used as a 100 Manganese processing and alloy- lution mining techniques for manganese ing agent of steel and an alloying agent in non- were under evaluation by the Bureau of Mines ferrous materials. Although manganese is used for 2 years but the project was eliminated from to some extent in the mineral form in which the fiscal year 1984 budget, Preliminary eco- it occurs in the ore, for the most part it is use- nomic analysis indicated that leached manga- ful only after several processing steps convert nese could compete favorably with foreign it to a metal or metal alloy. Steelmaking requires manganese ores for chemical (battery) indus- manganese ferroalloys with high-, medium-, or try markets but not for the ferromanganese in- low-carbon content, and silicomanganese. Alu- 101 dustry. Conventionally mined metallurgical minum alloys are made with additions of pure ores bound for ferromanganese production re- metallic manganese. The compositions of these quire little processing after mining; solution materials are shown in table 5-31. Figure 5-5 mined ores are uncompetitive. Another con- is a simplified flowchart for the production of clusion of the study was that solution mining these alloys showing the close relationship that applied to domestic manganese-silver ore exists between the processes for the various bodies would permit the separation of these forms of ferroalloys. minerals not possible by other techniques. The private sector has expressed some interest in The U.S. steelmaking industry has a stand- the process in order to obtain the silver values. ard of 78 percent manganese content for high- Manganese could be a byproduct of any such carbon ferromanganese, and this product is operation. A pilot plant is apparently in oper- traditionally made from 48 percent manganese ation in the Artillery Peak area of Arizona, ores, It is technically possible to produce steel funded by major mining companies, to test a from a lower grade ferromanganese, and inter- heap leaching process on manganese ores, nationally this standard is not as rigorously applied. This is a possible area wherein diversity Most of the U.S. manganese resources are of supply of manganese could be broadened by not amenable to normal beneficiation methods turning to lower grade deposits such as those of gravity and flotation alone owing to their low in Mexico if the need should arise. . ——. 103 100S ~e ~,a rlous B u reau of Mines papers including ‘‘ Arizona’s Manganese Ferroalloys Artillery Peak Manganese Deposits and Their Potential for In Situ Leaching” (1981) by Peter G. Chamberlain; “Recovery of The major manganese commodity is high- Silver From Manganese Ores” (1984] and “Recent Research on carbon ferromanganese, used in the production Leaching Manganese” (1983) b} Peter G, Chamberlain, John E. l~ah]rnan, and Charles A. Rhoades. of steel. It is now commonly produced in sub- 101 u ,s, Department of the Interior, Bureau of Mines, Research 83, op. cit., p. 5. Also National Materials Advisory Board, A Re- lozsil~.erm~n, et al., 0p. cit., P. 159. ~’ie~~ of the Atincra]s anti hlaterials Research Programs of the IOsTh is disr;ussion of manganese ferroallo}’ processes is t ak~: II Bureau of ,lfines, op. cit., 1984. primarily from ~harles Ri\er Associates, ;p. cit. 188 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

Table 5-31 .—Composition of Manganese Alloys

Manganese Carbon Silicon Ferromanganese: High carbon ...... 74-82 7.5 1.2 Medium carbon ...... 80-85 1.5 1.2 Low carbon ...... 80-90 0.7-0.75 1.2 Silicomanganese ...... 65-68 1.5-3.0 12.5-21 Ferromanganese-silicon ...... 63-66 .08 28-32 Manganese metal ...... 99.5 .005 .001 SOURCE: U S Department of the Inter! or, Bureau of Mines, Mlrrera/s Cornrnodlfy Profile 1983: Manganese,

SOURCE: Charles River Associates, Processing Capacity for Cr/fica/ Materia/s, OTA contract study, January 1984, merged arc electric furnaces, similar to those were generally adapted from old pig-iron fur- used for ferrochromium, rather than the orig- naces, they are smaller than current pig-iron inal blast furnace method. (See the previous furnaces, and the hot blast temperatures are chromium processing section for a general dis- lower (about 1,0000 to 2,0000 F) than for mod- cussion on ferroalloy production in submerged ern iron furnaces. The main disadvantage of arc furnaces, the degree of convertibility be- using the blast furnace for the production of tween ferrochromium and ferromanganese fur- ferromanganese is that the coke requirement naces, and the applicability of new technology is almost twice that for the electric furnace, to ferroalloy production.) since coke must be used both as a reducing agent and to supply the thermal energy for the In the United States the blast furnace has reaction. Both furnace types require a blend been entirely supplanted by the electric furnace of manganese ores and dolomite or limestone for the production of ferromanganese. The last as a fluxing agent. Existing small, pig-iron blast ferromanganese blast furnace was shut down furnaces could readily be converted to produce in 1969 by Bethlehem Steel after being dam- ferromanganese at minimal capital cost. Oper- aged by the Johnstown, PA, flood. Limited blast ating costs would be higher than for electric furnace capacity still exists in Western Europe furnaces. and South Africa, but all new furnace capacity worldwide is of the electric type. Silicomanganese is produced in an electric Pig iron blast furnaces can be considered as furnace similar to that used for ferromanga- alternative capacity for ferromanganese pro- nese production. The manganese content in the duction. As the ferromanganese blast furnaces slag from a standard ferromanganese furnace Ch. 5—Strategic Material Supply ● 189 ——

operation normally ranges from 30 to 40 per- tion of manganese ore. South Africa, Japan, cent and is used as feed for the production of and the United States are manganese metal silicomanganese. Efficient production requires producers. that both standard ferromanganese and silicomanganese furnaces be located in the same Processing Distribution and Capacity plant. The worldwide distribution of processing ca- The silicomanganese furnace has a smaller pacity for ferromanganese, silicomanganese, crucible with smaller electrode diameter and and manganese metal is shown in table 5-32. closer electrode spacing than does a standard Although having dramatically declined in ca- ferromanganese furnace. If a furnace designed pacity in the last decade, the United States still for ferromanganese production has the capac- has the capability to produce all types of man- ity in its environmental control (gas-cleaning) ganese ferroalloys and electrolytic manganese system, it can be operated at higher power metal. Table 5-33 shows the growth of imports levels (to compensate for the charge property over the last decade that have eroded the U.S. difference) to produce silicomanganese. industry, ferroalloys having made the greatest inroads. Medium- and low-carbon ferromanganese is produced by refining various high-carbon fer- Of the six firms in the United States still romanganese products in open arc furnaces. credited with the capacity to produce manga- These furnaces are different from submerged nese ferroalloys (out of 10 in 1979), three have arc furnaces in that the electrodes are not sus- shut down their plants, and the others are oper- pended deep within the charge. ating at very low rates. A contributing factor to this demise—other than import penetra- Manganese Metal tion—was the steel industry depression during the early 1980s. Elkem Metals plant at Marietta, Metallic manganese is commonly produced OH, for instance, in early 1984 had only 3 fur- by an electrolytic process from an acidic solu- naces of an original 14 in operation; by mid-

Table 5-32.—Manganese Ferroalloys and Metal Production Capacity—1979 (tonnes, gross weight)

Ferromanganese High Medium Low Silico- Manganese Country carbon carbon carbon manganese metal Argentina ...... 40,000 2,000 Australia...... 135,000 Belgium ...... 150,000 30,000 50,000 Brazil ...... 117,000 61,000 600 61,600 Canada ...... 90,000 50,000 Chile ...... 5,000 1,000 France ...... 580,000 50,000 60,000 West Germany...... 298,000 35,000 India ...... 229,000 3,000 13,000 Italy ...... 130,000 15,000 5,000 4,000 Japan ...... 700,800 205,820 535,200 6,000 Mexico ...... 135,000 Norway ...... 370,000 50,000 5,000 220,000 Peru...... 3,600 Portugal ...... 150,000 South Africa ...... 493,000 10,000 122,000 35,000 Spain ...... 60,000 35,000 10,000 45,000 Taiwan ...... 4,200 3,000 Great Britain ...... 80,000 300 United States...... 453,000 36,000 125,000 11 ,000+ Yugoslavia ...... 40,000 5.000 Total ...... 4,263,900 530,820 20.900 1.296.800, 52,000 SOURCE Charles River Associates Processing CapacltY for Crltlcal Materia/s, OTA contract report, January 1984 190 • Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

104 Table 5-33.--Managanese Ferroalloys and Metal: ganese. This GSA plan to upgrade stockpiled U.S. Imports and Consumption ores was developed in late 1982 by the Reagan (gross weight, short tons) Administration to give financial relief to the Ferroalloys Metal domestic ferroalloy industry. The contract 1970: amount will, however, only provide about 6 Imports ...... 290,946 NA months work for one Elkem furnace. (See the Consumption ...... 1,000,611 NA Imports as percent of chromium processing section for details on a consumption ...... 29 – similar chromite conversion contract.) 1974: Imports a ...... 421,222 2,506 Manganese metal, sufficient to cover domes- Consumption ...... 1,115,395 34,748 tic needs, can be produced in the United States, Imports as percent of consumption ...... 38 7 although the feedstock is imported manganese 1980: ores. In 1982 domestic production of manga- Imports b ...... 605,703 7,508 nese metal (18,600 tons) was greater than the Consumption ...... 789,076 25,092 105 Imports as percent of consumption rate (17,100 tons), while an ad- consumption ...... 77 30 ditional 30 percent was imported. Due to gen- aMe@l inlports include unwrought metal, waste and SCraP. eral economic conditions, in 1983 two metal bMetalS irnpofls is unwought metal only; waste and scrap total AOT tons producing firms were operating at reduced SOURCE: U.S. Department of the Interior, Bureau of Mines, Minera/s Yearbook, vol. 1, 1970, 1974, and 19S0 levels of production and the third had shut down its facilities. 1984 the picture was somewhat brighter owing to the steel industry revival. (Of the 14 furnaces some have been permanently decommissioned.) Elkem was awarded a contract by the General 104’ I Maca]]Oy sets Reorganization, American Meta] Market, Services Administration (GSA) in the spring of Jan. 5, 1984, p. 1. 1984 to convert 48,476 tons of manganese ore IOEU. S. Department of the Interior, Bureau of Mines, Minerafs in the national defense stockpile into ferroman- Yearbook 1982, VO]. 1, pp. 579-580.

Platinum Group Metals Production and Processing

PGMs have always come from few locations. rather than a byproduct. Chemical and physi- Colombian placer deposits were the original cal weathering can separate platinum minerals and only suppliers of PGMs until 1824, when from these primary ores, creating placer depos- Russian placer deposits were discovered. Pro- its in high enough concentrations to provide duction from Canadian nickel mines followed minable ore grades. Such a PGM deposit ex- in 1919, and South African deposits were dis- ists in Goodnews Bay, AK, but it has not been covered in 1924. South Africa, the Soviet in production since 1975. Union, and Canada are today the world’s sup- Each PGM deposit produces platinum and pliers of these metals (see fig. 5-6). palladium and some of the other four metals The major deposits of this group of metals (rhodium, ruthenium, iridium, and osmium) of have been found in layered formations of ig- the group. Among the similar sulfide deposits neous rocks among chromite, nickel, and cop- in the three producer countries, there are dif- per, Only in South Africa and, it has been esti- ferences in the proportion of PGMs that each mated, the United States (Stillwater, MT) can contributes to the market, as shown in table 5- such vein deposits be mined primarily for their 34. Platinum and palladium are considered the PGM content. Canada produces PGMs as a by- most important metals of the group owing to product of nickel and copper production; the their predominance and end uses in industry. Soviet Union’s production may be a coproduct While Canada produces roughly an equal Ch. 5—Strategic Material Supply Ž 191

Figure 5-6.–Comparative PGM Production, 1981 By metal and country 100

0 1 1 I I I 1 I I I 1 Pt Pd Rha lra Ru’ 0s

South Africa Soviet Union Canada Other aLess than 1 percent produced by other sources

SOURCE: Bureau of Mines, Mmera/s Commodity Prof~/e 7983 P/atmurn-Grouo Meta/s, figures 1 through 6. amount of platinum and palladium, the Soviet from a variety of ores. The United States is in- Union’s output is principally palladium (67 per- eluded in this group with a contribution from cent), with platinum secondary (25 percent), In copper mining and refining, South Africa, platinum accounts for 61 percent of production, and palladium, 26 percent. For The world now depends on South Africa for all three countries, the balance of output is in two-thirds of its platinum and on the Soviet small amounts of the minor metals of the Union for two-thirds of its palladium. In 1982, group. The proposed Stillwater mine is ex- 99 percent of the world’s primary PGM sup- pected to produce almost 80 percent palladium, ply was produced by five private firms and one 20 percent platinum. Colombia has long been government firm. Mines in South Africa and a relatively small producer from placer depos- the Soviet Union provide 95 percent of the its. Its output is over 90 percent platinum, Very world’s needs, while Canadian mines provide small amounts of the metals are produced by another 6 percent (table 5-35). Little change in a number of other countries as byproducts this pattern is likely in the future. The most 192 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

Table 5-34.—Distribution of Platinum Group Metal Production by Metal and Country, 1981 (percentage)

Producer country Platinum Palladium Rhodium Iridium Ruthenium Osmium — Canada ...... 6 6 8 6 5 10 South Africa. . . . . 64 24 44 60 74 38 Soviet Union . . . . 29 69 49 34 21 51 Other ...... 1 1 <1 <1 <1 <1 Total ...... 100 100 100 100 100 100 SOURCE U S Department of the Interior, Bureau of Mines, Minerals Commodity Profl/e 1983” P/atinurn-Group Meta/s, figures 1 through 6.

Table 5-35.—Platinum Group Metals: World Reserves and production by Country (thousand troy ounces a)

Reserves Production Percent of - Producer country 1981 1982 world production — Australia ...... 14.0 0.22 Canada ...... 9,000 269.8 4.18 Colombia ...... 12.0 0,19 Ethiopia...... 0.1 Finland ...... 3.6 0,06 South Africa ...... 970,000 2,600.0 40.28 Soviet Union...... 200,000 3,500.0 54.23 United States ...... 16,000 8.0 0.12 Yugoslavia ...... 3.5 0.05 Other b ...... 43.3 0.67 Total , ...... 1,200,000 6,454.3 100.00 aThere are 1458 troy ounce?. Per pound bother prOduCt(on>i ref~~Ct~ JaPafle~~ ~efining of Ores originating lfl AU.s~ralla, Canada, Indonesia, F’apua New Guinea, and the Philippines SOURCE: Reserve base—U S Department of (he Interior, Bureau of Mines, Mineral Commodity Profile 1983 Platlnum-Group Metals Production—U S Department of the Interior, Bureau of Mines, Mirrera/s Yearbook 1982, VOI 1

activity underway in investigating new, diver- Foreign Production of Platinum Group Metals sifying sources is in the United States with the effort to initiate mining from the deposits at Unlike many other mineral industries today, Stillwater. For possible long-term applicability, PGM production, excluding that of the Soviet the U.S. Geological Survey is conducting re- Union, is entirely within the private sector, search on the platinum content of nickel lat- Ownership is a complex interconnection of erite deposits in countries along the south- multinational firms, as shown in table 5-36, western rim of the Pacific Ocean. Rustenberg Platinum Mines and Impala The principal importing nations are the Platinum Holdings control over 90 percent of United States and Japan, which together con- South African production, Ownership of both sume about two-thirds of the world’s PGM pro- firms is primarily local shareholders, through duction. Western Europe and the Soviet Union three investment houses. These “group” consume most of the remainder. The Soviet houses have connections with British industry Union’s position as the important palladium that date back to colonial times. They also hold supplier to the West provides it with one of its interests in American operations: Johnson valuable sources of foreign exchange, although Matthey—which jointly owns a South African gold sales are more important in this respect, refinery with Rustenberg (Matthey-Rustenberg Ch. 5—Strategic Material Supply ● 193 —

Table 5-36.—PGM Mining Industry by Country — Ownership Primary national Country Major firms Sector Major holdersa identity Canada = ., ...... -; .-. Inco Ltd. Private b Canada Falconbridge Ltd. Private McIntyre Minesc (40) Canada Private Newmont Minesd (40) U.S. South Africae ...... Rustenberg Platinum Mines Private JClf (33) Local Ltd. Private AngloAmer (24) Local/U, K, Private Ludenburg (24) Local Impala Platinum Holdings Ltd. Private Gencor (56) Local Western Platinum Ltd. Private Lonrho (51) Local/U. K. Private Falconbridge (25) Canada/U.S. Private Superior Oil (24) U.S. Soviet Union ., ... Government (loo) United Statesg ...... Goodnews Bay Private Hansen Properties Us. Stillwater Mining Co. Private Johns-Manville Us. Private Chevron Resources Us. (Chevron USA) Private Anaconda Minerals Us. (Atlantic— Richfield)——— . awlth approximate percentage of control, If available bThe largest, S ingle .sha reh o lder block of !nco stock IS 4 Percent CFalconbr,dge IS 327 percent owned by Superior 011 through direct equ!ty and Its COntrOlliflg Interest In MclnWre dNewmont Mlnlng (220, ~ ~wned by Consolidated Gold Fields (LJ K ), ~h,ch is (290/. ) ~~ned by Minerals & Resources Corp , which is (43° o) owned by Anglo American eThere are slx finance houses (the Group~i) Which do~i~ate the south Af~,can ,ndustry The Anglo American Corp of S A Ltd (AngloAmer), Gold F!elds Of S A Ltd , General Mlnlng Un{on Corp Ltd (Gencor)j Rand Mines/Barlow Rand Johannesburg Consolidated investment Co Ltd (JCI), and AngloTransvaal Consolidated Investment Co Ltd (AngloTC) ‘Johannesburg Consol!datecl Investment Co Ltd IS (41) owned by the Anglo American gNot tn production, pro?, pectlve Onty SOURCES E&MJ 1983 /nternaf/ona/ D/rectory of Mirr/rtg, Bureau of Mines, Mineral Commod{ty Profile 1983 P/at/nurn.Group Metals Off Ice of Technology Assessment

Refiners)–and Engelhard Corp., both with smelted form (matte) to England for refining. refineries in England and the United States, are Western platinum ships mixed metal mattes to connected through Minerals & Resources Corp. Norway, where nickel and cobalt are extracted. to the Anglo American Corp. of South Africa, Final PGM units (as a “sludge”) are returned one of the group houses. The third South Afri- to South Africa for final separation. Canada’s can producer firm, Western Platinum, is con- Inco ships PGM sludge to its plant in England trolled by British, Canadian, and American infor refining. Falconbridge’s semiprocessed ores terests, go to Norway, with final recovery either in Norway or at the Engelhard refinery in New- Canada’s two PGM-producing firms are pri- ark, NJ. marily Canadian and American owned, Falcon- bridge, which is a part owner of Western Plati- A consequence of this processing flow of num in South Africa, owns a refinery in PGMs is that essentially all the United States’ Norway. Inco operates refineries in Canada primary PGM needs, even those obtainable and the Mend Nickel Co. refinery in England. from Canada, must ultimately be shipped from overseas. Both Ontario and Manitoba prov- While most of the mining firms are vertically inces in Canada have laws requiring all ores integrated, from ore mining and processing mined there to be fully processed in Canada, through to metal production, processing has if possible. Inco and Falconbridge have so far traditionally involved a physical, international been granted exemptions allowing them to ex- flow of semiprocessed forms of the metals be- port semiprocessed ores for refining, follow- tween mining countries and refiners in north- ing a pattern set more than 50 years ago. Both ern Europe. While Rustenberg now has the ca- expect to continue this system as long as it is pability to process its ores completely within economically feasible to use their northern South Africa, some still follow the traditional European refineries. While semiprocessed ores path and are shipped as concentrates or in are transported by surface, final metal forms 194 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

are normally shipped by air, mitigating poten- made public, Rustenberg reportedly supplies tial access problems (on the return journey) Toyota, Honda, and Ford; Impala is said to sup- during crises. ply General Motors, Chrysler, and Nissan; and Western Platinum reportedly supplies Mitsu- Platinum group metals are investment as 108 bishi. well as industrial commodities. Accordingly, three levels of trade exist: long-term contracts While South Africa’s portion of the world between producers and consumers, the dealer PGM market has steadily increased, Canada’s market for small and spot purchases, and in- production has not kept pace with growing de- vestment and speculative buying of futures mand. Since the 1960s, its share of the world contracts on various metal exchanges, such as market has decreased by 84 percent, while ac- the New York Mercantile Exchange (platinum tual output has remained level. and palladium) and the Japanese Gold Ex- The Soviet Union’s production and market- change (platinum). At any one time, stocks of ing techniques cannot be determined accurately; these metals are held by producers, refiners, most of its output is marketed through dealers investors, dealers, fabricators, and govern- rather than directly. Explanations for short- ments. The U.S. Bureau of Mines estimated term changes in the amount of palladium made that at the end of 1981 there were 900,000 troy available for the market have ranged from pure ounces of PGMs (about a 4 to 5 months’ supply) political motivations to maximization of long- held by these groups in the United States 106 term commercial advantage. Over the past 20 alone. The existence of widespread holdings years, the Soviets have managed to increase of these stocks is one factor used to explain steadily the overall production of PGMs. why the producer-set price recently gave way —after a 50-year dominance—to a market price The following country-by-country overview for PGMs. In effect, the stocks held by a vari- of major producers discusses the current and ety of groups serve as an intermediate supply, projected status of PGM output. reducing producers’ ability to set prices or control the flow of processed material. Canada Any near-term increase in demand is ex- Inco is the major PGM producer in Canada, pected to come from current sources. South with Falconbridge a distant second, Both de- African producers, who tend to tailor produc- rive PGMs as byproducts of nickel-copper sul- tion to their estimates of western consumption, fide deposits near Sudbury, Ontario. Inco also have proven adept in drawing on their vast re- has lesser deposits at Thompson, Manitoba. serves to meet increased demand, In the 1970s, PGM processing is tied to recovery of nickel, for example, South African firms greatly ex- copper, and cobalt. Inco’s ores are smelted at panded production to meet demand created by Copper Cliff, Ontario, with final recovery of requirements for automobile catalytic con- PGMs at the firm’s Mend Nickel Co. refinery verters in the United States. They would likely at Acton, England. Falconbridge smelts ores respond similarly in the future, and their am- in Sudbury; ships a nickel-copper matte to its ple resources should allow them to do so.107 plant in Norway for nickel, copper, and cobalt Most of South Africa’s production of PGMs is recovery; and refines the resulting PGM sludge committed to major consumers—including the in Norway or at the Engelhard refinery in New- automobile industry (for catalytic converters)— ark, NJ. through long-term (approximately lo-year) contracts. While information about contracts is not South Africa In South Africa, PGMs are considered the IWU, S. Department of the Interior, Bureau of Mines, A4inem) Commodity Profile 1983: Platinum-Group Metals, p. 10. primary product derived from sulfide depos- lozsee for i~tance, the Bureau of Mines’ Platinum Avail- abiJity—MarJcet Economy Countries, Information Circular No. 108’’ Impala, GM Set Long-Term Pact Huddle, ” American 8897/1982. MetaJs Market, June 2, 1983. —.

Ch. 5—Strategic Material Supply ● 195 its. Rustenberg Platinum Mines produces more sidering development of its own matte treat- than 50 percent of South Africa’s output, fol- ment facility in South Africa, which—if estab- lowed by Impala, with some 40 percent, The lished—would eliminate the time-consuming balance is produced by Western Platinum, shipment of matte to Norway, cutting overall which now has capacity to produce about PGM processing time from about 6 to 2 months. 125,000 troy ounces of platinum per year. The Gold Fields of South Africa Ltd. (partly Bushveld Complex in northeastern South owned by Consolidated Gold Fields of London, Africa supports the entire PGM production. which is 30-percent owned by Anglo Ameri- PGM deposits primarily occur in its Merensky can) has been investigating a prospective new Reef section—with concentrations ranging PGM mine on the Merensky Reef. The project from 4 to 15 grams per tonne of ore or 4 to 15 was in the exploration phase in 1984. Poten- parts per million (ppm). (Technically, 9 percent tial PGM output is expected to total 386,000 of South Africa’s PGM reserves lie within the troy ounces, including platinum (64 percent), Bophuthatswana Homeland. Bophuthatswana palladium (27 percent), ruthenium (6 percent), actually produced over half of the PGMs and rhodium (3 percent). This would add about credited to South Africa in 1982 as all of Im- 5 percent to the world’s output of PGMs (using pala’s mining operations are within the home- 1980 as a base year). land along with part of Rustenberg’s.) Two other sections of the Bushveld, the Up- Soviet Union per Group (UG2) Chromium seam and the Plat- PGMs area coproduct or byproduct derived reef, have lower overall grades of PGMs but from nickel-copper sulfide deposits in Siberia higher proportions of some of the lesser metals, (with PGM values as high as 10.4 grams per such as rhodium and ruthenium. The Platreef tonne of ore) and the Kola Peninsula. Limited is currently unmined. Western Platinum pro- amounts are also produced from placer depos- duces from some sections of the UG2. With the its in the Ural Mountains. The mines at the introduction of a new smelting process in 1984, Noril’sk mining combine in Siberia provide up PGMs can also be extracted from the chromite 109 to 90 percent of the total output. Ores, extracted seams. The Bureau of Mines has stated that under adverse conditions of an 8-month win- commercial development of the UG2 and Plat- ter, are smelted and refined to metal within the reef of the Bushveld Complex would more than Soviet Union. Expansion of capacity at Noril’sk, double the amount of platinum available from reportedly underway in the 1980s, could sig- South African deposits. nificantly increase Soviet production capa- Rustenberg and Impala each have facilities bilities. in South Africa to process their ores completely to metal forms of separated PGMs. Rustenberg Potential Foreign Sources can also ship semiprocessed ores to the Johnson The U.S. Geological Survey has a study Matthey plant at Royston, England, for proc- underway to determine the PGM content of essing. Western Platinum ships all its produc- laterite formations in the Southwest Pacific (In- tion as mixed metal mattes to the Falconbridge donesia, the Philippines, and New Caledonia). (a part owner of Western) plant in Norway for These mineralizations are found along with separation of copper, nickel, and cobalt. A re- chromite. The separation techniques using sidual PGM sludge is returned to the Lonrho plasma technologies that are being developed refinery at Brakpan in South Africa for final in South Africa for PGM/chromite deposits separation of PGMs. Western is currently con- there could be applicable. The economic feasibility of mining PGM in these laterite forma- ing-r, F. A nstett, et a]., U. S. Department of the Interior, Bu- reau of h4ines, Platinum A \’ailabilit~’—Ma rket Econom~’ Coun- tions may make it possible to extract the chro- tries, Information Circular No. 8897, 1982, p. 12, mite content as a byproduct. 196 • Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

Domestic Production of tain some PGMs) may result in small amounts Platinum Group Metals of PGMs being recovered. In contrast to the other first-tier materials, U.S. resources of PGM total 300 million troy the United States is a producer, albeit minor, ounces (less than 10 percent of world resources) and are concentrated in Montana, Alaska, and of PGMs (8,033 troy ounces in 1982 as a by- 110 product of copper mining and refining) and Minnesota. An estimate of total possible U.S. mining firms are actively pursuing the com- production of PGMs from the most likely prop- mercial possibilities of exploiting PGM depos- erties—Stillwater, Goodnews Bay, and the its at Stillwater in Montana. These deposits Duluth Gabbro—is shown in table 5-37. could initially supply 14 percent of the US. palladium and 4 percent of platinum needs, or 9 Stillwater Complex, MT percent of overall PGM needs (based on 1982 PGM occurrences in the Stillwater Complex consumption data). Production from Stillwater along the Beartooth Mountains in Montana is considered to be the only possible near-term, have been commercially explored and evalu- worldwide competition for existing PGM pro- ated over the past 15 years. The deposits are ducers such as South Africa and the Soviet geologically similar to those in the Merensky Union. Reef of South Africa and contain nickel, cop- The Goodnews Bay Placer Mine in Alaska per and chromite in addition to PGMs. Still- is a past producer of PGMs and was to resume water is being evaluated on the basis of extract- operations in mid-1981 but did not. There are ing PGMs from sulfide ores as a primary no immediate plans to do so. Other U.S. PGM product. The Complex is approximately 28 resources exist in Alaska (Salt Chuck Mine and miles long and from 1 to 5 miles wide and is the Brady Glacier-Crillion-Le Pousse sulfide de- divided into distinctive mineralized zones with posit) and Minnesota at the Duluth Gabbro. PGMs present at greater-than-normal concen- These latter properties have not been the sub- trations in some bands. Typical PGM grades ject of any recent commercial development at Stillwater have been reported by the Bureau interest. New U.S. mining activity in the de- IyOJ. Roger Loebenstein, U.S. Department of the Interior, 13u- velopment and expansion of gold and silver reau of Mines, A4inera] Commodity Profiles 1983.’ P]atin um - properties (the ore bodies of which often con- Group Metals, p. 3.

Table 5-37.—Potential U.S. PGM Production

Estimated annual production Estimated capacity (troy ounces of minelife Resource/mine contained metal) (years) Production dependent on Stillwater, Montana ...... 10-25 Combined platinum-palladium price of about Initial: Palladium . . . . 136,000 $220 per troy ounce (1984)a ‘ Platinum . . . . . 38,000 Total ...... 175,000 Additional expansion: Palladium . . . . 340,000 Platinum . . . . . 97,000 Total...... 437,000 Goodnews Bay, Alaska . . . . . unknown Platinum price of $600-700 per troy ounce (1984) Platinum . . . . . 10,000 Duluth Gabbro, Minnesota . . . 25 Copper, $1.50 per pound Palladium ., . . 30,800-92,400 Nickel, $4.00 (1975 data converted to January Platinum . . . . . 6,800-20,300 1983 dollars Total ...... 37,600-112,700 aYear of estimate. SOURCE: Stillwater—Stillwater Mining, June 1984. Goodnews Bay–Hanson Properties, July 1984. Duluth G*bro—Calculated by OTA using preliminary results of Bureau of Mines research on Duiuth ores, State of Minnesota, Regional Copper-Nickel Study, 1979; Silverman, et al., OTA background study, 1983. Ch. 5—Strategic Material Supply • 197 of Mines as 0.130 troy ounces of platinum and from the mined ores by grinding and flotation 0.509 troy ounces of palladium per ton of ore processes. This product would be transported (5 ppm platinum, 17 ppm palladium). In com- by surface to an existing smelter (e.g., Inco’s parison, grades of representative ore from the in Canada) for refining. Estimated mine life for Merensky Reef are 0.154 troy ounces of plati- the project is 20 years.114 num and 0.066, palladium per ton (5 ppm plati- 111 In mid-1984, the possibility of proceeding num, 2 ppm palladium). The estimated PGM with mining development was considered reserves of the entire complex have been re- 115 112 “very price sensitive.’’ A weighted average ported at 7 million troy ounces. price of $220 per troy ounce of PGMs is being The most important PGM zone was discov- used in Stillwater Mining’s feasibility study cal- ered during exploration by the Johns Manville culations. (As a comparison, the June 1984 pro- Sales Corp. in 1967 and sparked renewed com- ducer prices for PGMs were: platinum, $475 mercial interest in this area once mined for its per troy ounce and palladium, $130 to $140.116 chromite content. The Johns Manville zone has At these prices and given the Stillwater pal- an estimated 0.47 troy ounces of platinum and ladium-to-platinum ratio of 3.5:1, a weighted palladium per ton of ore with a palladium-to- average price of $206 to $214 is realized. Thus, platinum ratio of 3.5:1113 (0.11 troy ounces of the market prices did not quite meet the tar- platinum and 0.36 troy ounces of palladium per get price,] The drilling program and feasibil- ton of ore, or 4 ppm platinum and 12 ppm pal- ity study is scheduled for a mining develop- ladium). ment “go/no go” decision by mid-1985. Two sets of properties in the Stillwater Com- Anaconda’s Stillwater Project had originally plex have been the object of extensive commer- proposed, for a 1982 draft EIS, a mining oper- cial exploration since 1979. The properties, ation producing 350,000 tons of ore per year since June 1983, have been held by a joint ven- (1,000 tons daily for 350 days per year) over 25 ture of Stillwater PGM Resources & Anaconda years. Contained PGMs (at about 0.5 troy Minerals Co. under the name of Stillwater Min- ounces per ton of ore) would be 500 troy ing Co. Stillwater PGM Resources is a partner- ounces per day (or 175,000 troy ounces per ship of Johns-Manville and Chevron Resources year). 117 The Anaconda site (now the Stillwater Co. (Chevron USA); Anaconda Minerals is a Mining investigation) is smaller than the wholly owned subsidiary of Atlantic Richfield. original Stillwater PGM Resources properties, Stillwater Mining Co. has selected a particu- whose reserves might be able to support a min- lar mineralized zone (the Minneapolis Adit) in ing rate of 2,500 tons of ore per day,118 or ap- one of the original Anaconda properties as the proximately 437,500 troy ounces per year of site for an 18-month exploration and evalua- contained PGM values. tion effort. Core drillings, both from the sur- The Stillwater Complex is located in a rural, face and within the Adit, constitute a major agricultural community, partly within the portion of the evaluation project’s data. This borders of two national forests. While devel- joint project may—or may not—result in even- opment of mining at Stillwater would provide tual combined mine development and produc- job opportunities and broaden the local tax tion activity. base, local citizen groups have voiced concerns The development phase would reportedly —.— take 2 years to place into operation an under- llqThe sfi]~water Citizen-Sun, p. 12. llsLeS Dar]ing, Environment] Coordinator and principal ground, hard-rock mine producing 1,000 tons spokesperson, Stillwater Mining Co., personal communication, of ore per day. A milling plant, constructed at May 1984. the mining site, would produce a concentrate 1l”’’Closing Prices,” American Metal Market, June 15, 1984, p, 31, —..— 117s1]verman, et a]., op. cit., p. 104 (text of E] S). 1lllbid., p, 4. Ilnsl]verman, et al., op. cit., p. 190. A Sept. 10, 1980, statement I IZAnstett, et a]., op. Cit., P. 7. from the Manvilfk group estimated a production rate of 1,000 lls~~e ,$tj]]tt,afer cjfjze~-s’url, Apr. 26, 1984, sec. 2, p. 5. to 3,OOO tons of ore per day 198 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability over population influx, overburdening of the ated could be shipped directly to a U.S. refin- public service system and environmental issues ery, such as Engelhard in Newark, NJ, for proc- such as location of the mill and tailings pond, essing. the wastewater’s effect on the region’s ground- The Salt Chuck lode mine has been intermit- water, and protection of air, water and wild- tently exploited for various PGMs since 1918 life. During any permitting process, Montana’s with the latest period of operation having been Department of State Lands will coordinate the 1935 to 1941. Overall, 14,271 troy ounces of preparation of the necessary EIS; and the local PGMs have been produced from this mine. government and the Montana Hard Rock Min- ing Impact Board will evaluate socioeconomic PGMs are known to exist in deposits in Gla- issues. cier Bay National Park in the Crillion-La Perouse Complex. An unpublished U.S. Geo- Goodnews Bay and Other Alaska Occurrences logical Survey report in 1980 indicated that platinum may be recovered as a byproduct The Goodnews Bay Placer Mine is a dredg- from the Brady Glacier nickel-cooper ore body. ing operation located on the Salmon River near The ore body, which extends under moving the Bering Sea coastline of Alaska. Production glacier ice, has not been extensively evaluated from Goodnews Bay totaled 641,000 troy 124 and could prove expensive to mine. In ad- ounces of PGMs (over 80 percent platinum) dition, given its location, environmental con- from 1934 until 1975, when production was 119 cerns would weigh heavily on any mining halted. Although new owners, Hanson Prop- prospects. erties, announced intentions to resume operations in 1981, operational difficulties with In general, there is potential for more lode dredging machinery, environmental issues, and placer deposits in Alaska. The Alaska Field and overall, the costs of production have pre- Operations Center of the Bureau of Mines has vented them from doing so.120 an ongoing program specifically directed toward improving the available information While the major component of this placer de- about occurrences of PGMs, as well as chro- posit is platinum (reserves are estimated at 121 mite and cobalt, in Alaska. 500,000 troy ounces of platinum), other PGMs and precious metals are present. The ap- Duluth Gabbro, Minnesota proximate proportions of metals in the concentrate produced in the past were 82.31 percent Copper and nickel sulfide deposits along the platinum; 11.28, iridium; 2.5, osmium; 0.17, Duluth Gabbro in the Lake Superior region of ruthenium; 1.29, rhodium; 0.38, palladium; and northeastern Minnesota contain cobalt, PGMs 2.24 percent gold.122 The mine could possibly and other precious metals that could be re- produce up to 10,000 troy ounces of platinum covered as byproducts. Production of signifi- per year.123 The high grade concentrate gener- cant amounts of PGMs depends on copper and —— .— nickel mining on a large enough scale to make Ilelames c. J3arker, d d,, U.S. Department of the Interior, Bu- reau of Mines; Critical and Strategic Minerals in Alaska: Co- these low-grade resources competitive in global balt, the Platinum-Group Metals and Chrom’te, Information Cir- markets. Commercial production will not even cu]ar No. 8869, 1981, p. 2. IZORaymond Hanson, Hanson Properties, persona] communi- be considered until the recovery of both pri- cation, July 1984. mary metals markets occurs and existing YZ1 u.S. Department of the Interior, Bureau of Mines, Minerals worldwide nickel and copper mines have Yearbook 1981, p, 668. IZZThese are the weighted mean percentages of the metals returned to full production. (For information mined from Goodnews Bay from 1936 to 1970 as presented in on the economics of Duluth Gabbro and a Re- the National Research Council, National Materials Advisory gional Cooper-Nickel study released in 1979 by Board, Supply and Use Patterns for the Platinum-Group Metals, the State of Minnesota, see the domestic co- Nh4AB-359, 1980, p, 17. U3U. S. Department of the Interior, Bureau of Mines, Minerals balt section.) Yearbook, 1981, vol. I, p, 668. Mr. Hanson inferred that this figure was high and commented that it was “what the oldtimers in Alaska claim, ” IZdcritjca] and Strategic Minerals in Alaska, op. cit., p. 3 Ch. 5–Strategic Material Supply ● 199

G B 200 . Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

Industry interest in the area peaked between 30,800 and 92,400 troy ounces of palladium and the late 1960s and 1970s. During that time, between 6,800 and 20,300 troy ounces of plat- Amax Nickel acquired an option from Ken- inum might be generated as byproducts from necott Copper and investigated the possibility Duluth given the proper economic incentives of a combined surface and underground oper- for copper and nickel production. ation (Minnamax) and Inco considered open- Although the Duluth Gabbro lacked any coming an open pit mine (Ely Spruce). Inco’s project was suspended in 1975, and Amax in- mercial activity recently, this large resource of low-grade material will continue to be viewed definitely postponed its project in 1981 owing as a potential source of metals. The proximity to depressed metal prices. This property has of potential mining areas to the Boundary now reverted back to Kennecott control. There Waters Canoe Area and Voyageurs National has been no revival of commercial interest in Park, as well as possible damage from sulfur the area. emissions from a smelter operation processing These two holdings in the Duluth Gabbro Duluth Gabbro sulfide ores, will ensure an im- contain demonstrated resources of less than portant role for environmental considerations 800,000 troy ounces of platinum.125 PGM values in mine planning in the area.129 of 0.00107 troy ounces of platinum and 0.00304 troy ounces of palladium per ton (0.036 ppm Domestic Mining and Processing platinum, 1.03 ppm palladium) were estimated Technology Prospects from an Inco sample by the Bureau of Mines.126 PGM deposits which occur in hard-rock envi- The Minnesota Department of Natural Re- ronments (Stillwater, for instance) are amen- sources extrapolated this data to the rest of the able to underground methods such as sublevel area and estimated that about 18 million troy stoping and the newer vertical crater retreat ounces of platinum resources existed in 4.4 bil- 127 system. Placer deposits are generally dredged lion tons of ore. unless, as maybe the case in some areas of the The Bureau of Mines has recently conducted Goodnews Bay deposit in Alaska, the thickness research on the processing of raw materials of the overburden makes the technique un- typical of Duluth Gabbro ores, and a report on economic. the results is in preparation. Data from these Domestic PGM deposits are not unique and, studies indicate that, under optimum condi- therefore, metallurgical processing technology tions, the recovery of platinum and palladium is available. The high-grade platinum concen- per ton of ore would be approximately 0.0005 trates from Goodnews Bay can be sold directly troy ounce and 0.0022 troy ounce, respectively. to existing U.S. precious metal refineries for This is equivalent to approximately 0.088 troy purification. Technology for the required ounces of platinum and 0.40 troy ounces of pal- 128 smelting and refining of Stillwater’s nickel- ladium per ton of copper produced. In the copper-PGM ores is well established. The most 1979 study by the State of Minnesota, the max- qualified North American smelter for the ini- imum possible annual output from Duluth was tial refining of its concentrates is the Inco plant calculated at 231,000 tons of copper metal and, at Copper Cliff, Ontario. with one mine complex (rather than three) in operation, 77,000 tons of copper would be Included in current Bureau of Mines reproduced per year. This implies that between search is the evaluation of a method for processing of Stillwater ores. It involves flotation of the ores and subsequent smelting and leach- 125Anstett, et a]., op. cit., p. 7. IZoNationa] ReSea~h Council, National Materials Advisory ing to recover the various metal values in the Board, Supplj’ and Use Patterns for the PlatinumGroup Metals, ores. The flotation concentrate results in 88 NMAB-359, Washington, DC, 1980, p. 16. percent recovery of the PGM values and smelt- 1271 bid., p. 16. IZU ,S. Department of the Interior, Bureau of Mines, ]etter to OTA, july 31, 1984. lzgsl]verman, et al., 0p. cit., p. 112. Ch. 5—Strategic Material Supply . 201 ing to a sulfide matte retains 95 percent, for is accomplished by various chemical methods, an overall recovery of 84 percent. This matte many of which are proprietary, A new extrac- then requires a refining step to separate out tion process developed by the South African PGMs and gold.130 Duluth ores are also under National Institute of Metallurgy in 1975 can re- investigation and are discussed in the preced- duce the overall PGM processing time dra- ing domestic cobalt section. matically (to 20 days). Two South African refineries and one in England now use the in- Processing of Platinum Group Metals stitute’s process. The major end uses of PGMs are as catalysts PGMs are imported by the United States in in the automotive, petrochemical, and chemi- forms such as unwrought and semimanufac- cal industries and as contacts in the electronics tured metal. Recycled catalysts from the petro- industry. These products are fabricated from leum and chemical industries are another chemical forms of PGMs, which are produced source. The processing industry in the United from metals, mainly platinum and palladium States consists of refiners and fabricators. and, increasingly, rhodium. Large firms, such as Engelhard and Johnson Matthey, can handle the final PGM processing PGMs follow the same processing path as co- steps, while smaller firms only fabricate the balt because they originate in the same ores. end products. Engelhard’s New Jersey refin- PGMs are the last step in the long extraction ery reportedly processes some of Falcon- process of these ores (fig. 5-7), and it can take bridge’s (Canada) PGM sludge. The National up to 6 months to complete the cycle from min- Materials Advisory Board reported in 1980131 ing of the ores to production of PGMs. The that, as a whole, the U.S. PGM processing in- final residual from the sequential processing dustry was healthy and aggressive and could is a PGM concentrate, or “sludge,” Separation readily meet the challenges of any increased of the precious metals from this concentrate demand.

130 Re5~arch 85’, op. cit., P. 89. 131N MA13.359, op. cit.

Explorationm

The development of the major known domes- high-grade materials at costs well below that tic resources of chromium, cobalt, manganese, of any domestic producer. and PGMs is technically feasible if political necessity dictates, However, with the exception Land-Based Resources132 of a PGM deposit, these domestic resources could be produced only at several times cur- In North America, Precambrian rocks are rent world price. considered the most geologically favorable areas for possible significant deposits of chro- Exploration for additional domestic depos- mite and nickel-copper-cobalt sulfides with its by private concerns will proceed only in- associated PGMs. Figure 5-8 shows the forma- sofar as there are geologically favorable areas, tion period (1 to 2.6 billion years ago) of cer- perceived economic benefits to the explorer, tain world deposits of chromium, cobalt and and procedures that permit mining if a discov- PGMs. The formation of manganese deposits ery is made. No group is actively exploring for is not as exclusively timebound as the other first-tier strategic materials in the United States today, The benefits are not consistent with the lszThis section is based prlrnari]}~ on Ben F. Dickerson I I I i and Carole A. O’Brien, Exploration for Strategic Materials, contrac- costs and risks involved, especially when for- tor studj’ prepared for the Office of Technology Assessment, Sep- eign countries can produce vast quantities of tember 1983, 202 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

Figure 5-7.--PGM Processing, Simplified Flowcharta

aTypicalaTyplcal South African process.prwess.

SOURCE: Department of the Interior, Bureau of Mines, Platinum Avaihrblllfy–kfarketAvailability-Market Economy.Ecorron’rY Countries,Countdes, Information Circular *8897,U8B97, 1982. .

Ch. 5—Strategic Material Supply ● 203

Figure 5-8.—Time Chart of Some First-Tier Strategic Material Deposits

11 25 40 55 Paleocene I I 65

135

180

225

270

305

350

395

440

500

570 Deposit Location Approx. Age Commodity (million yrs.) 1000 Katanga Zambia-Zaire Cobalt Duluth Gabbro Minnesota 1000-18OO Nickel-Cobalt Sudbury Ontario 1000-1500 Nickel-Copper. Platinum 1800 Bushveld S. Africa 2OOO-21OO Chromite-Platinum Outokumpu Finland 2OOO-21OO Copper-Nickel-Cobalt 2600 Kemi Finland 1800-2300 Chromite Stillwater Montana 2400-2500 Chromite-Platinum Great Dyke Zimbabwe 2600-2700 Chromite-Platinum 3300 2400-2500 Early I 4500

SOURCE. Ben F Dickerson Ill and Carol@ A O’Brien, ~xploratlon (or Strategic Materials, contractor study prepared for the Office of Technology Assessment, September 1983 204 Ž Strategic Materials: Technologies to Reduce U.S. Import Vulnerability strategic metals. In the United States the ma- and dependable markets, and an assumption jor exposure of Precambrian rocks (fig. 5-9) is of long-term stability in the domestic economy. in the Great Lakes region of Michigan, Min- nesota, and Wisconsin, with smaller, scattered Exploration Technology Today and in the Future areas in many States, including Montana, The following briefly reviews present and po- Idaho, Colorado, Arizona, South Dakota, Wy- tential near-term technological developments oming, Texas, and Missouri. in land-based exploration for strategic mate- The constraints on exploration imposed by rials. It is felt that the technology level that the absence of extensive geological exposure mineral geologists employ today is about 20 cannot be ignored in assessing the Nation’s years behind the level used in oil and gas ex- strategic materials outlook. Currently uniden- ploration. This may be a reflection of the value tified geologic environments in the United of national energy versus mineral needs. For States could possibly contain these metals, but instance, in 1977 fuel production in the United the uncertainties involved in identifying such States was valued at $56.2 billion and metals environments compound the already high risk production, a tenth of the fuels value at $5.2 of exploration of regions of known potential. billion. 135 Metals experts interviewed by OTA gener- Most specialists think that a breakthrough in ally agree that there is a very low probability mineral exploration technology is unlikely in that the United States contains significant, un- the next 10 years and that the exploration scene discovered economic deposits of chromite, co- of the early 1990s will probably not be greatly balt, or PGMs. (Prospects for manganese are different from that of today, except it will be deemed somewhat better.) Undoubtedly, some more expensive. Current tools and techniques geologists disagree with this majority opinion, will be more precise and refined, owing largely asserting that increased geologic knowledge, to the application of mineral exploration ad- better technology, and fresh exploration con- vances, general scientific knowledge, and elec- cepts can find new, economical deposits. Even tronic technology. Lacking incentives to ex- if such deposits do exist, the apparent risk/ plore for strategic materials, there will be little reward ratio and the magnitude of identified attention to the development of specialized foreign reserves preclude meaningful action technology for that purpose; but any general under current conditions. improvements in exploration methodology or technology could be of use. Experts were unanimous on one point: all believed their companies’ management would re- Chromite deposits, for instance, have gener- ject any strategic metals exploration program, ally been found by surface prospecting and no matter how geologically well-conceived, drilling in and around identified outcrops (sur- now and in the near future. 133 face appearances). There are no unique problems in exploring for most types of cobalt de- Until reliable long-term economic incentives posits. Current geophysical methods can be [perception of profits commensurate with risks) used to detect the presence of copper, nickel are available, there will be no significant ex- and iron sulfide minerals, with which it is asso- ploration for strategic materials in the United ciated. Cobalt can be easily identified by rela- States. A recent estimate gave $290 million as tively simple chemical analysis methods. the cost to find an ore deposit that would significantly affect the profits of a medium-sized GENETIC THEORY corporation. 134 Any find would have to result in ores of higher than average grades and/or Increased interaction between industry and lower than average costs to mine, substantial academia could lead to better application of new and developing concepts in genetic the-

1jjIbid., p. 11, IOSs~~tl~~iC~] A~~tr~Ct of the (_Jnit~ states, 1982.83 edition, ta. lsgIbid., p. 18. ble No. 1276, p. 715. —

Ch. 5—Strategic Material Supply ● 205

Figure 5-9.— Exposure of Precambrian Rock in North America

SOURCE Duncan R Derry A Cor?c/se World At/as of Geo/ogy and Mlrreral Depostts, 1980 206 Ž Strategic Materials: Technologies to Reduce U.S. Import Vulnerability ory. Most currently employed theories of ore ances in mineral content or physical condition genesis are derived from developments in the will cause anomalies in the data produced. understanding of plate tectonics and conti- 136 Current techniques, however, particularly nental drift. These concepts are definitely electromagnetic methods, are unable to distin- useful in predicting areas favorable for certain guish between anomalies caused by various types of mineral deposits and will probably minerals such as pyrite, chalcopyrite, or graph- continue to provide practical information. ite. This prevents the explorer from correctly Advances in this field are expected to call at- identifying, or narrowing down sufficiently, tention to some hitherto ignored, or currently the sought-after mineral environment. unknown, geologic environments for some Research programs of a few large exploring metals, particularly gold, silver, and perhaps firms are aimed at developing instrumentation some base and strategic metals. Explorationists to discriminate between various minerals, par- do not feel, however, that any lo-year devel- ticularly sulfides. Because the work is propri- opment of genetic theory will allow them to ac- etary, very little information is publicly avail- curately fix the location and approximate qual- able, Geophysicists interviewed for this report ity of any type of mineral deposit. In fact, there said that such instrumentation would probably is strong doubt that this could ever be done. not be developed before the end of the century DATA INTERPRETATION and, even then, may only compound current problems of interpreting findings. Data interpretation is the single, biggest problem facing exploration. A substantial improve- Other than the major problem of data inter- ment in this art might far outweigh potential pretation mentioned above, instrumentation: technological improvements. ● must be better able to screen out natural Both geophysics and geochemistry now can or human “background noise, ” this im- deliver vast amounts of data that no one com- provement might increase the effective pletely understands. Fully integrating this in- depth penetration, a current limitation of formation with data from other exploration the geophysical techniques; and techniques is very difficult. While a very few ● needs additional miniaturization and im- “seat-of-the-pants” ore finders may be able to provement for borehole use, also increas- do this intuitively, most explorationists are not ing depth penetration. so gifted. One geologist said, “Better instru- Geophysical techniques are expected to im- mentation is like giving an encyclopedia to an prove only slightly, as many methods are ap- illiterate—the pictures are neat, but it doesn’t proaching absolute barriers imposed by phys- help him to read. ” ical laws. (In particular, the decline of signal strengths by the “inverse of the square of the GEOPHYSICS distance” effect.) Miniaturization of geophysi- Geophysical techniques for locating particu- cal instrumentation will be much more highly lar geological structures and compositions are developed. The subsequent increased employ- one of the primary screening tools of mineral ment of down-the-hole geophysics will give, in exploration. The process involves measure- effect, greater depth penetration in areas bement of various physical fields in which vari- ing explored and could cope with the physical law limits, However, this improvement will —.——- be of little use in the initial or reconnaissance Ise]n 1912 a German, A. Wegener, suggested that about 200 stages of exploration. million years ago the continents were packed together in one universal land mass called “Pangaea.” Wegener called attention Geosatellite imagery and other associated to the “jig-saw” piece matching effect of the South American data will probably be employed cautiously, but and African continents; similarities in geology, plant and animal life; and in paleoclimates of various continents. This basic more frequently, particularly if some of the un- concept received little support until the mid 1950s. certainties of spectral interpretation can be Ch. 5—Strategic Material Supply Ž 207 eliminated and higher spectral resolution ob- rock, accurate, multi-element analyses. An in- tained, Unfortunately, many large, geologically strument for onsite analysis of drill-hole favorable areas of the earth’s crust are hidden derived samples, at least semiquantitatively, is beneath an alternate environment, preventing also needed. A technique that would not alter satellite identification despite improved tech- the physical characteristic of the sample is nology. preferable. There are no special geophysical problems Since strategic materials are not actively ex- related to strategic materials that preclude ap- plored domestically, accurate multi-element plication of general improvements in explora- analysis would be highly desirable, no matter tion technology. For example, an effective bore- what type of sample is being analyzed.137 Po- hole induced polarization (1P) transmitter and tentially valuable deposits of one element have receiver would perhaps be effective in explo- certainly been overlooked because analytical ration for podiform chromite bodies, in areas work was at the time concentrated on locat- where they are known to occur. Cobalt is asso- ing other elements. Even if no potentially eco- ciated with copper, nickel, and iron sulfides nomic element is present, there would be great which have detectable electromagnetic signa- geologic value in identifying and quantifying tures. Chromite and manganese oxide can be all of the trace elements associated with par- detected by using certain geophysical tech- ticular types of mineralized bodies. In time, the niques as well. However, geophysical tech- resulting patterns might offer definite clues to niques have not been developed to identify eco- the presence or absence of economic mineral- nomic concentrations of metals present in the ization. earth’s crust as carbonates and/or silicates (e. g., Borehole and handheld instruments, employ- manganese carbonate deposits and nickel- cobalt silicate minerals in laterites). Limited ing X-ray fluorescence analysis methodology, success has been achieved in distinguishing have recently been developed. These are spe- carbonate and silicate minerals using satellite cific for such elements as silver, gold, molybde- imagery but only when they appear on the sur- num, and tin, But substantial improvements in face. Manganese oxides, as well as sulfides, re- 6 Compilation procedures for this “unwanted- spond to 1P techniques but carbonates offer lit- at-the-time” information would need to be in- tle, or no geophysical signature. Uncertainties stituted, however, sensitivity and analysis abound, however. 1P effects are produced by reproducibility are needed. ICP (Inductively graphite, magnetite, certain clays, and other Coupled Plasma atomic emission spectrom- etry) is the latest technique and is claimed to minerals. In fact, many 1P anomalies have no be a multi-element analytical tool. There are, ascertainable cause. however, substantial problems with inter- GEOCHEMISTRY element interference and element detection levels. Geochemistry involves the analysis of soils, surface water, and organisms for abnormal High-precision and sensitive analytical meth- concentrations of minerals. It is one of the ods—including ICP, neutron activation, laser basic tools of modern mineral exploration and bombardment, irradiation by radioactive iso- is relatively rapid, cheap, and direct. But, topes—have only limited use in geochemical faster, more accurate, more sensitive, and more work because of their high unit costs (more specific analytical techniques are needed. than $50 per sample) and certain physical limitations of the equipment. Current practice in sample preparation consists of crushing, grinding, pulverizing, and se- The main advances in geochemical explora- lecting a sample of appropriate size; each stage tion are expected to occur in instrumentation of this process offers opportunity for error. The ideal methodology would include automated I ~7[jom1)i]ation ~)ro[; ed ~1 res for this ‘‘unwanted-at-the-time iJl - sample preparation and on-the-spot whole- formation would need to be instituted, how’e~’er. 208 Ž Strategic Materials: Technologies to Reduce U.S. Import Vulnerability and in analytical techniques. Handheld and core drilling have been introduced in the past drill hole-adaptive, direct in situ analytical de- 30 years. The first was the introduction of wire- vices will be available in exploration for some line drilling (allowing the recovery of a sam- elements, but probably only for PGMs among ple core inside a drill stem); the second, the ad- the strategic metals, since there is little eco- vent of long-wearing, impregnated diamond nomic interest in the others. Although semi- drill bits. automated wet chemical analytical methods Rotary drilling techniques for metals have will be standard, and will increase reproduci- also generally stabilized. Sampling-related bility and sensitivity, more highly trained and problems prevent rotary drilling from being more costly technicians and analysts will be employed to a much greater extent in minerals required to perform the analyses, exploration. Helicopter-borne spectral reflectance instru- There has been comparatively little direct re- mentation, perhaps a spinoff of satellite research directed at improving mineral explora- search, may be used to screen vegetation geo- tion drilling. The U.S. Bureau of Mines and a chemically in large forested areas. Practical drill machine manufacturer and contract drill- instrumentation should be available that will ing company, E.J. Longyear, have jointly de- directly measure gases emitted in decomposi- signed a method for replacing worn diamond tion of some economical minerals. bits without removing drill rods from bore Chromite is a common accessory mineral in holes, eliminating a costly and time-consuming mafic/ultramafic rocks, but geochemical sur- operation. With the use of impregnated dia- veys have not been successful at identifying mond bits, however, it has proven more cost economic concentrations of chromite. Wide- effective to stay in the hole with these longer spread high, but very variable, background con- wearing bits than to purchase the relatively ex- centrations of manganese in water, soils, and pensive equipment required to change the now rocks make geochemical techniques very dif- partly obsolete surface set bits. ficult to employ. Most incremental improvements in drilling DRILLING TECHNOLOGY have been developed in oil exploration, Al- though helpful in strategic materials explora- Drilling is the ultimate test phase of all ex- tion, various factors—e.g., the size of target, ploration, and its costs, direct and indirect, are rock types, dimensions of drill holes, and mar- one of the most significant limiting factors in 138 ket size differences–prevent large-scale adap- minerals exploration today. Improved tech- tation in mineral exploration. Substantial technology which reduces these costs would allow nical and cost benefits in mineral exploration testing of more targets, however they are iden- drilling techniques may be possible only if a tified and defined, and would help improve long-term, well-conceived, and adequately current ore discovery rates. funded research program is undertaken. Techniques for mineral exploration include Drilling techniques are not expected to be core and rotary drilling. Core drilling physi- much different from those employed now. cally removes a cylindrical sample of rock Most explorers foresee increased drilling costs while a rotary crushes and chips the rock so and little change in drilling efficiency. If the that only cuttings are removed by air or water, rate of growth in average drilling depth is Core drilling today is not greatly different maintained, with its attendant increased costs from that of the 1860s, when it was first em- per hole, it is probable that fewer holes will be ployed for coal exploration in Pennsylvania. drilled on any one target. Although overall technology has steadily improved, only two significant improvements in Research and Development Mineral exploration technology and method- 136Dickerson, et a]., Op. Cit., p. 66. ology have not been the subject of significant Ch. 5—Strategic Material Supply ● 209 research and development (R&D) attention for United Nations Conference on the Law of the some time. Current metal market prices and Sea. other problems have led to reductions of pre- Three forms of the seabed manganese depos- vious, modest funding levels in the private its are of interest from a strategic materials per- sector. spective: the manganese nodules and crusts lo- A precise picture of mineral exploration re- cated on the Blake Plateau off the coast of lated R&D, however, is difficult to develop. Florida, the manganese nodules of the east cen- Most work is spread throughout academia tral Pacific Basin, and the cobalt-rich crusts lo- (geology), the U.S. Geological Survey (geology, cated on the slopes of seamounts and islands geophysics, and geochemistry), the Bureau of in the Pacific. The status and outlook for ex- Mines (drilling, geophysics, and miscellaneous ploitation of each of these types of deposits is pursuits), and mining and oil companies (geol- summarized in table 5-38. ogy, geophysics, and geochemistry). Equip- The Blake Plateau deposits contain approx- ment manufacturers, with a few exceptions imately 15 percent manganese and 15 percent (mainly geophysical contractors), do very lit- iron, but their content of more valuable metals tle R&D because their markets are so limited. is low. The water depth ranges between 300 There appears to be no reliable figure avail- and 1,000 meters, and they are located on the able for the amount of direct exploration- continental slope where they fall under the related R&D expenditures for any specific jurisdiction of the coastal state (in this case, period. (Guesses range from $10 million to $50 jurisdiction is principally that of the United million per year by the private sector in North States, although some of the region is under America.) The quantification problem is com- Bahamian jurisdiction). In 1976, the National plicated by no agreed-upon definition of work Materials Advisory Board evaluated these that should be classified as mineral exploration nodules as a potential domestic source of man- R&D, especially within the Federal Govern- ganese. The nodules fared well against other ment. Is a U.S. Geological Survey geologist domestic sources, but were still judged to be studying the magnesium content of chromite out of the realm of commercial exploitation engaged in mineral exploration research? Most since their production costs were high in com- practicing explorationists would say no, but an parison with the large land-based deposits now argument could be made otherwise. One thing in production, is clear to explorationists: R&D in their field, The Pacific manganese nodules differ from no matter how defined, is, by comparison to those of the Blake Plateau in several respects. most other technical fields, very poorly funded They have attracted commercial interest be- and directed. cause of their content of nickel, copper, and cobalt, which exceed that of many land-based Ocean-Based Resources deposits; they are located in water depths as much as 10 times that of the Blake Plateau; and The floor of the ocean provides a favorable they are located beyond the jurisdiction of any environment for the formation of expansive deposits of minerals containing manganese, iron, country, with their legal status clouded by the lack of widespread acceptance of any legal and other metals. Some of these deposits con- regime for exploitation. tain significant amounts of nickel, copper, or cobalt. As a result, they have gained some at- Interest in the Pacific nodules began to intention as possible alternative sources of metals crease before the technology for exploitation to supplement or replace land-based sources was developed and before the legal regime was of questioned reliability. The mineral resources developed. The value of the metals contained of the deep seabed gained visibility during the in the nodules was high in comparison to land- 1970s when their status was added to many based ores, and the high value of contained other subjects under consideration at the Third metals grabbed attention before estimates of 210 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

Table 5-38.—Outlook for Development of Ocean-Based Resources of Strategic Metals Clarion-Clipperton Blake Plateau Nodule Province Cobalt bearing crusts Depth ...... 300-1,000 meters Location ...... East coast of Florida, Georgia, South Carolina Bordered to east by Bahamian jurisdiction Metal content: Manganese...... Iron ...... Nickel ...... Copper ...... Cobalt ...... Form ......

Status of technology .

Economic outlook. . . . Extremely low-grade manganese deposit is not competitive with land-based producers

Legal regime ...... Under U.S. jurisdiction on the Beyond U.S. jurisdiction: right Outer Continental Shelf to license development activities by U.S. citizens claimed by U.S. but chal- lenged by supporters of the U.N. Convention on the Law of the Sea SOURCE: Office of Technology Assessment the costs of the mining and processing equip- The high cobalt content of some of the crusts ment were well developed. It is now apparent presents the same attraction that was once pre- that capital and operating costs of deep ocean sented by Pacific nodules. The high value of mining would be much higher that current the metal contained in the crusts, whether costs of mining on land, and these high costs measured in price or strategic interest, over- more than offset the higher value of the metals shadows the high cost of recovering the metals that the nodules contain. from their challenging environment and difficult mineral structure. Even though land-based There is little detailed information available deposits may have lower content of cobalt, about cobalt-bearing manganese crusts. These nickel, or copper, they are more attractive to deposits are similar to the Pacific nodules, ex- investors because the cost of recovering the cept that they are in the form of thin crusts metals is significantly lower. For manganese, bonded to the underlying rock on the slopes the case for land-based production is even of seamounts such as the Hawaiian Islands. In stronger since land ores are generally higher some cases, the crusts have been found to be in manganese content, easier to mine, and enriched with cobalt. In some samples, peak more familiar to consumers in the metallur- cobalt contents of more than 1 percent have gical industries. been measured, but average cobalt levels have been less than 0.8 percent, If so desired, the U.S. Government could assist private industry in overcoming the substan- While interest in nodules has declined, the tial barriers to exploitation of ocean-based re- cobalt-bearing manganese crusts of the Pacific sources of strategic materials and thereby seamounts have gained increased attention. encourage industry to commit the major sums Ch. 5–Strategic Material Supply • 211 needed to build and operate an ocean mine. able to physical interference at sea, and, with- Unless there is a major increase in prices for out a widely accepted legal regime for exploi- nickel, copper, and cobalt, the cost to the gov- tation of the minerals of the seabed, it could ernment of such assistance would be substan- be the subject of international legal and politi- tial. Furthermore, an ocean mine would not be cal disputes. secure against interruption; it would be vulner- CHAPTER 6 Conservation of Strategic Materials Contents Page Introduction *e. **s* .*. o**. e#*s***, .+** *soO*** *0** **** *,o. e*. .0. *@*o 215

Recycling *s** **** .*e***s, *,** **** **** *.** ***. **e* **. .*** *.*. .* #.* 215 Advanced Processing and Fabrication Technologies ...... 216 Conservation Through Part Life Extension and Design...... 216 Interrelationships of Conservation Approaches . . . e ...... 217 Case Studies of Strategic Materials Conservation Opportunities...... 218 Superalloy ..** *,, *.. ,**, **, ..** ..*. e.. o.o*. *e. ,., ., o*,*.,***,*., 219 Conservation of Manganese in the Steel Industry ...... 227 Automotive Catalysts 6., *.** .**, ,.*o, o*oe. .,o, .,. .,o*, **o*, *o*,,,,, 238 Other Conservation Opportunities **** 9**m. **********0**.*****.**.*** 245 Prospects for Conservation of Strategic Materials ...... 254 Recycling Technology ● , *.,*.*******,.******..*.**..***.*.*.,*,**** 257 Nontechnical Impediments , ****..*.***.***..*****..*..***.*,**.*,*. 257 Recycling and Conservation Data Base ● ***************.**.,.,,***,** 258

List of Tables Table No. Page 6-1. Cobalt Consumption in Superalloy, 1980 ...... 219 6-2. Manganese Content for Major Grade of Steel...... 232 6-3. Parameters Affecting Manganese Retention in the Steelmaking Process ● **0* *e** **0* **** +8 *****************e****** 238 6-4. Current and projected Manganese Consumption in U.S. Steel Production ● .,** *,**, ..** *.. @, ********m.*.,***,***,** 238 6-5. Cobalt Consumption and Recycling in Catalysts, 1982 ...... 246 6-6. Selected opportunities for Increased Recycling of Chromium, Cobalt, and Platinum Group Metals ● * * . . . ., . * ., * * * * *, * * * * * * * * * * ******.*. 255

List of Figures Figure No. Page 6-i. Service Life Time of Turbine Blades . *, * * *, . * * * ., . . . . * *, ****,*.*, 226 6-2. Historical Market Shares for Major Classes of Steel ...... 231 6-3. Flow Diagram Showing the Principal Process Steps Involved in Converting Raw Materials Into the Major Steel Product Forms, Excluding Coated Products ...... 234 6-4. Current Pattern of Manganese Use in Steelmaking ...... 235 6-5. PGM Demand by Vehicle Category ● .*. **e w*****..***.************ 239 CHAPTER 6 Conservation of Strategic Materials

Introduction

Past experience has shown conservation to cling are significantly higher owing to internal be an important response to shortages of ma- recycling by industry, toll refining arrange- terials, and strategic materials are no excep- ments, and incomplete reporting to the Bureau tion. In all of the post-World War II supply dis- of Mines. In addition, a substantial amount of turbances discussed in this report, industry manganese is recycled from ferrous scrap, and responded with increased recycling and, in this may grow in the future. some instances, adopted new practices which Home scrap, which includes trimmings and used materials more efficiently, Conservation ends from castings and overflows from ingots, also can be an ongoing strategy to reduce in- is generally recycled with great efficiency. dustry dependency on insecure sources of sup- Since it is clean and its composition is known, ply, In this chapter, several different conser- it can simply be returned to the melt for reproc- vation techniques that can conserve strategic essing. materials are discussed, Included are recycling, product life extension, trimming of alloy ad- Recycling of prompt scrap is less uniform ditions to the low side of acceptable ranges, than home scrap. In large manufacturing oper- and improved processing techniques, Substi- ations, where substantial amounts of scrap are tute materials and use of surface modification generated, efforts to separate scrap by type, to technologies can also conserve strategic keep it free from contaminants, and to main- materials; these are addressed in chapter 7. tain collection and marketing operations are often justified by the market value of the scrap. Recycling In smaller operations, or in processes where oils or cutting fluids contaminate the scrap, Recycling differs from other conservation materials may be discarded as waste. Even techniques in that it directly adds to material when recycling offers economic advantages, supplies. Sources of recycled metals include firms may not want to divert their resources scrap material generated by the primary pro- to the establishment of a new set of internal ducer, which is called “home” or “revert” procedures for segregation and collection of scrap, and secondary (or purchased) scrap, Sec- scrap. ondary scrap generated by manufacturers and fabricators is called “prompt industrial scrap,” Collection of obsolete scrap presents even while scrap that comes from products that have greater problems. This scrap may be dissemi- been used and discarded is called “obsolete nated across wide areas and mixed with a va- scrap. ” Another secondary source is process riety of other materials, Impurities from metal- waste that can be reclaimed from metal proc- lurgical contaminants must be eliminated to essing plants. make the scrap reusable. Owing to the expense of collecting, identifying, and separating this Purchased scrap (comprised mostly of prompt scrap, a substantial amount of metal is lost. and obsolete scrap) accounted for 8 percent of Even when quantities of known materials are domestic cobalt consumption, 15 percent of collected, limitations set by the processing platinum consumption, and 12 percent of chro- technology may result in the scrap being down- 1 mium demand in 1982. Actual levels of recy- graded to a less demanding application. For example, superalloy scrap may be downgraded 1 U, S. Department of Interior, Bureau of Mines, Mineral Com - modit~ Summaries 1983 (Washington, DC: U.S. Go\’ernment to make stainless steel in which the cobalt con- Printing Office, 1982), pp. 32, 36, and 116. tent serves no purpose, and is essentially lost.

215 216 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

Significant quantities of strategic materials The need for U.S. steelmaker to remain are lost in process wastes, because the costs competitive with foreign producers, for exam- of treatment or handling for recovery exceeds ple, is leading to the replacement of older, less the value of the contained metals, Technologi- efficient facilities with new processes which cal development, combined with imposition of are more cost effective and produce higher high costs on the disposal of wastes contain- quality steel.2 Furthermore, major savings in ing hazardous materials, have given impetus manganese can be achieved as steelmaker up- to research on processing of such waste to ease grade basic steelmaking processes. As newer disposal problems and, where possible, to ob- technologies and processes are introduced, im- tain saleable products from the processing. portant reductions in the amount of manganese needed to process each ton of steel can be ex- Advanced Processing and Fabrication pected. The pace of this phase-in will depend Technologies on industry resources committed to upgrading of domestic steelmaking capabilities. Industry constantly searches for new proc- Materials conservation is also a side benefit essing and manufacturing technologies that of advanced processing technologies that are can increase production, decrease costs, save increasingly used in producing and fabricat- energy and materials, or improve performance. ing aerospace parts made from superalloys. Adoption of new technologies sometimes con- Often referred to as “near-net-shape” proc- serves strategic materials. The rapid phase-in esses, these casting and powder metallurgy of the argon-oxygen-decarburization (AOD) techniques are used primarily to reduce costs process for making stainless steel during the of machining and to improve control over man- 1970s is a dramatic case in point. The AOD ufacturing reliability. Because less metal is reprocess led to major improvements in chro- moved during processing, product yields are mium utilization in making stainless steel, in- improved significantly. cluding the ability to use more high-carbon ferrochromium (which is cheaper, and requires less energy to make than low-carbon ferro- Conservation Through Part Life Extension chrome) as a raw material, and enhanced chro- and Design mium recovery from scrap ferrochromium Life extension approaches to material con- charges. Nearly all stainless steel producers servation are of primary relevance to very high- now use the AOD process, so that further im- value parts. The overall value of a turbine blade provements in chromium utilization arising installed in a jet engine, for example, may be from the process are likely to be modest. 500 times the raw material value. Technologies Although it is rare for a new technology to and maintenance strategies that extend the us- be adopted as pervasively and quickly as the able life of a part, therefore, can result in sub- AOD process, ongoing industrial trends in met- stantial savings in replacement part costs and als processing and fabrication may lead to ap- materials over time. preciable savings in some strategic materials Some life extension strategies are integrally on a per-part or per-unit basis in the years to related to advances in nondestructive evalua- come. For the most part, industry investment tion or testing (NDE or NDT) of products. On in advanced processing and fabrication tech- the inspection line of manufacturing facilities, nologies is driven by concerns about product NDE can be used to identify flawed products performance, reducing costs, and minimizing reject parts. Material conservation is not often a primary reason why industry adopts ad- ‘The need for technological adjustments by the U.S. steel in- vanced processing technologies, but it is often dustry is discussed in the OTA assessment, Technology and Steel an important side benefit. Industry Competitiveness, OTA-M-122, June 1980. Ch. 6—Conservation of Strategic Materials ● 217 which can be immediately set aside for rework- designers may become more aware of alterna- ing or recycling. tive materials that use less strategic materials. Design of products so that they can be eas- NDE has also been used on the production ily recycled is another frequently proposed line to monitor machine tool conditions in or- conservation technique. However, the trend in der to avoid breakage or other damage. For ex- some industries is toward use of more complex ample, tungsten carbide drill bits have often materials and products that pose greater been retired prematurely because of concern difficulties for recycling. about breakage. A process developed by the National Bureau of Standards for continuous monitoring of the drill bit allows selective Interrelationships of Conservation Approaches retirement of a bit when failure is detected to As discussed in subsequent sections of this be imminent, rather than relying on a statisti- chapter, the prospects for conserving strategic cal average or waiting until the bit actually materials in many applications are quite good. breaks, In addition, since cobalt is used to bind However, the extent to which any given ap- the tungsten carbide, strategic material use proach will be adopted by industry will depend may be reduced. on how well it fits into the overall corporate strategies of many different firms. Generally NDE’s potential role in monitoring of in- speaking, strategic materials conservation per service parts is expected to grow in the years se is seldom a primary motive in industry to come as confidence in the reliability of in- decisions—although it is sometimes an ancil- spection devices increases. Formal retirement lary benefit. for cause maintenance programs are being evaluated by the Department of Defense and In the future, industry concerns about com- may be implemented in the late 1980s. petitiveness, improving product performance, and cutting production costs will lead to adop- It is also possible to conserve strategic mation of new technologies, some of which may terials in the design of products, This some- lead to conservation of strategic materials. It times happens inadvertently. For example, U.S. is difficult, however, to predict overall impacts automakers, in their effort to downsize cars, of conservation on U.S. import reliance: these have substantially reduced chromium use in new technologies will interact in complex cars even though strategic materials conserva- ways—sometimes simultaneously in a given ap- tion was not a primary objective. Design strat- plication, For example, increased use of ma- egies specifically intended to minimize strate- terials-efficient fabrication processes in the gic materials use (e.g., industry’s effort to aerospace industry will reduce the amount of conserve cobalt in the late 1970s) are probably home and prompt superalloy scrap that would rare. However, in many noncritical applica- otherwise be available for recycling, The over- tions, designers have a wide range of materials all effect of this on strategic materials use, how- that could be used. Actual choice of a mate- ever, is likely to be positive, since some fabrica- rial may be governed not only by cost and per- tion scrap is difficult to recycle. Life extension formance factors, but also by the designers’ ex- techniques would reduce demand for replace- perience and esthetic considerations. In theory, ment parts containing strategic materials, but as computer-aided design technologies and would also reduce the quantity of obsolete computer-aided selection of materials advance, scrap available for recycling.

38-844 0 - 85 - 8 : QL 3 218 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

Case Studies of Strategic Materials Conservation Opportunities

Conservation of some strategic materials in- uous casting, and ladle and secondary refin- creased during the late 1970s and early 1980s, ing techniques are likely to decrease the encouraged in part by higher costs for raw amount of manganese required to produce a materials and energy, Government waste dis- ton of steel from 35.6 to 24.8 pounds by the year posal requirements, and industry investment 2000. The consumption of imported manga- in new materials-efficient technology. How- nese ore and ferromanganese is estimated to ever, major opportunities to conserve strategic decline from 17.8 pound per ton of steel to 9.5 materials are still evident. These vary by ma- pound per ton, a reduction of over 45 percent. terial and application: Most of these technologies will be implemented 1. Despite advances in manufacturing tech- for product quality and cost competitiveness reasons. nologies, total cobalt losses in 1980 in unrecovered or downgraded scrap, or in process- 3. Widespread adoption of the AOD process ing wastes, amounted to 7.7 million pounds— by stainless steelmaker led to industrywide nearly half of the estimated 16.5 million pounds improvements in chromium use that are not of cobalt actually consumed domestically that likely to be repeated soon. However, chromium years By far, the largest opportunity for in- conservation opportunities, including increased creased cobalt recycling lies in the increased recycling, and reduced overspecification of recovery of obsolete scrap. Of the 6.3 million materials, could lead to major savings. In the pounds of cobalt in products estimated to have 1977-81 period, an average of 64,000 tons of become obsolete in 1980, nearly three-fourths chromium contained in purchased stainless (about 4.6 million pounds) was unrecovered or steel scrap was recycled each year.4 By con- downgraded. Potential sources for improved trast, an estimated 62,000 tons of chromium recovery include superalloy from obsolete jet contained in obsolete stainless steel scrap went engine parts and cobalt-bearing catalysts. Other unrecovered or was downgraded in 1977 (the cobalt recycling opportunities include reduc- last year for which detailed estimates have been tion of downgrading of obsolete scrap and im- made). The largest single opportunity for en- proved recovery of processing waste, which to- hanced recovery of obsolete scrap is in auto- gether entail cobalt losses of 3.1 million pounds. motive recycling, where most chromium-bear- 2. The steel industry is the country’s domi- ing scrap is downgraded. Chromium recovery from industrial processing wastes is increas- nant user of manganese, consuming nearly 90 ing, owing to adoption of collection procedures percent of total U.S. requirements. Manganese consumption is dependent not only on the and commercial reprocessing systems, amount of steel produced, but also on how effi- 4. The high price of platinum group metals ciently manganese is used in steel production. (PGMs) encourages highly efficient use of these Significant future reductions in the amount of materials. Recycling probably accounts for manganese needed per ton of steel are ex- over 40 percent of U.S. PGM consumption pected: greater attention to trimming is ex- when internal (toll refining) recycling by indus- pected to reduce the average amount of man- try is taken into account. The key opportunity ganese in steel by 12 percent, from 13.8 to 12.2 for increased recycling over the next 10 to 15 pounds per ton by 2000. This, together with years will be recovery of PGMs from automo- adoption of improved steelmaking technolo- tive catalytic converters which could add up gies, such as external desulfurization, contin- to 500,000 troy ounces annually to U.S. PGM

aNational Materials Advisory Board, Cobalt Conservatbn Through Techno]ogkal Alternatives, publication NMAB-406 4U. S. Department of Commerce, Critical Materials Require- (Washington, DC: National Academy Press, 1983), fig. 3 (p. 23) ments of the U.S. Steel Industry (Washington, DC: U.S. Govern- and table 11 (p. 24). ment Printing Office, 1983), p. 62, Ch. 6—Conservation of Strategic Materials . 219 supplies by 1995. Obsolete electronic scrap is Table 6-1 .–Cobalt Consumption in Superalloys, 1980 also a promising source for secondary recov- Wrought Cast Total ery of PGMs, even though such scrap is dis- Input: seminated widely throughout electronic equip- Primary cobalt . . . . , 3.47 1.73 5.20 ment which, in turn, is spread all across the Prompt scrap...... 0.26 1.50 1.76 country, making collection and separation of Obsolete scrap ., . . . 0,87 0.32 1.19 metals expensive. The Department of Defense, Total production . . 4.60 3.55 8.15 which is a large generator of electronic scrap, output: Final parts ., ...... 2.34 1.24 3.58 and the Bureau of Mines, have cooperated in Total lost ., ...... 2.00 0.82 2.82 developing improved means for processing this (Waste) ...... 0.21 0.28 0.49) scrap. (Downgraded) . . . . 1.79 0.54 2.33) Prompt scrap...... 0.26 1.50 1.76 In the pages that follow, prospects for stra- SOURCE Adapted from National Materials Advisory Board, Coba/t Conservation Through Technological Alternatives, Nat!onal Academy of Sciences, tegic materials conservation in certain specific 1983, pp. 147, 148 applications are discussed. tunities,5 estimates sources and end results of Superalloy the cobalt used in the production of superalloy in 1980, the most recent year for which detailed Superalloy constitute the largest single cat- information is available. Several important egory of cobalt use. They are also the principal points can be drawn from the table: users of high-purity chromium metal and major users of low-carbon ferrochrome. Typical ● Of nearly 8.2 million pounds of cobalt used cobalt-base superalloy contain up to 65 per- in superalloys in 1980, only 3.6 million cent cobalt- and nickel-base, alloys may con- pounds, less than 45 percent, were contain up to 20 percent cobalt. Chromium contained in final parts. tent ranges between 10 and 25 percent. ● Almost 55 percent of the consumption of primary metal was lost through down- Since 1978, when disturbances in Zaire led grading or waste in the production of su- to widespread concern about cobalt supplies, peralloy parts in 1980. manufacturers of aircraft jet engines and en- ● Almost 44 percent of the initial amount of gine components and several Federal agencies wrought alloys were lost or downgraded; have placed increased emphasis on reducing for cast alloys the fraction is lower, about the need for cobalt in jet engines. One ap- 23 percent. proach, covered in detail in chapter 7, is the ● The use of obsolete superalloy scrap was development and use of substitute alloys that quite low, accounting for less than 15 per- contain less cobalt. Other approaches empha- cent of the total cobalt used in processing size conservation, through recycling of super- superalloys. NMAB also estimated that alloy scrap, use of near-net-shape manufactur- only half of the cobalt in superalloy scrap ing processes to reduce fabrication scrap, and that became obsolete in 1980 was recov- extension of the useful life of components. As ered for recycling by the superalloy indus- industry adopts these techniques, the need for try (1.19 million out of 2.4 million pounds), cobalt, and for other strategic metals, such as chromium, nickel, and tantalum, will be reduced on a per part basis. hCobait Conservation Through Technological Alternut i~~es, op. Substantial amounts of cobalt, chromium, cit. Some uncertainty surrounds the estimates sho~vn in table 6-1, owing to the inadequacy of the available data on scrap use and other strategic metals used in the produc- and new cobalt requirements of the superallo} industr}. As a tion and fabrication of superalloys do not end result, various assumptions had to be employed b}’ Nhl AB to up in the final part. Table 6-1, adapted from approximate conditions in 1980. While NMAB believed its cobalt material flow model to be “reasonable approximation of re- a 1983 National Materials Advisory Board ality, ’ it noted that further work would be needed to confirm (NMAB) report on cobalt conservation oppor- or reject its assumptions (pp. 25-26). 220 Ž Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

These statistics suggest the tremendous po- PRECISION CASTING tential of conservation techniques to reduce Casting, the solidification of molten metal in requirements for primary cobalt. In 1980, 2,8 molds, is a near-net-shape process that has million pounds of cobalt were lost through been used for jet engine components since the downgrading and to waste in fabrication of birth of the industry. Casting is very efficient superalloy parts. In the future, much more of in its use of material. Although it is necessary this material may be recoverable as superalloy to use gates and risers to control the flow of recycling technologies advance. Alternatively, metal into the mold, resulting in as little as 40 the amount of material lost could also be re- percent of the metal actually ending in the fi- duced through the increased use of near-net- nal casting, large castings are very near to their shape manufacturing processes, particularly final shape (only 5 to 10 percent of the mate- with respect to the wrought alloys. rial needs to be removed during the final ma- Obsolete scrap is a large potential source of chining and finishing operations). Further, cobalt. Most of the 3.58 million pounds of co- most of the scrap generated in casting is “im- balt used in finished superalloy parts in 1980 mediate revert’’—that is, it can be recycled will eventually be available for recycling, but without further processing. Since it is recycled much of this material may be downgraded un- in the same shop in which it is generated, less jet engine manufacturers are confident that segregation and identification are simple mat- scrap can be safely recycled for jet engines, The ters. Therefore, most material poured from the raw materials for superalloys, whether it is co- melting furnace is eventually used. balt, nickel, chromium, or ferrochromium, Recent trends in casting technology have re- must be of the highest purity in order to avoid sulted in precision castings of up to 500 pounds faults in the final part that could cause it to fail, (typically 10-pound units were produced in the Thus, manufacturers of aircraft engines often past). This results in two advantages. First, a prohibit use of obsolete scrap unless certified larger portion of the engine can be produced processes for collecting and processing the by the material-efficient casting method, and scrap have been approved, Rates of obsolete second, the elimination of numerous steps of scrap generation in the future may be affected component assembly reduce the cost of assem- by techniques that extend the service life of bling the engine. parts. New casting technologies have also resulted Near-Net-Shape Processes in improved material properties. Through the use of directional solidification, components, The use of high-temperature alloys in a jet principally blades and vanes, can be cast so engine is very inefficient in terms of the amount that grain boundaries are very long and are of material consumed to produce a finished aligned with the axis of the component. It is part. Ratios of 8 to 1 for input material to final also possible to cast components as a single part (also referred to as the “buy-to-fry” ratio) crystal, eliminating grain boundaries altogether, are common, and ratios of 20 to 1 are not un- This allows the elimination of elements that are heard of. This ratio can be significantly re- often added to strengthen grain boundaries, 6 duced by near-net-shape processes. Three gen- such as zirconium and hafnium. eral types of near-net-shape processes are in use at this time: precision casting, advanced ADVANCED FORGING METHODS forging, and powder processing. Closed die forging is used extensively to fabricate gas turbine components ranging from small turbine buckets to large fan blades and 8These processes are discussed in detail in New Metals Proc- very large disks. In this process, the starting essing Technologies, a report prepared for OTA by Charles River stock is heated to various temperatures depend- Associates, Inc. ing on the alloy being forged and is placed be- Ch. 6—Conservation of Strategic Materials ● 221 tween two dies that are forced together, enclos- of input material required by conventional ing the stock and deforming it to the shape of closed die forging, the die. Usually the starting stock is wrought— i.e., it consists of a bar or billet that has been POWDER PROCESSING hot-worked from an ingot. The hot working en- A third process for the manufacture of super- sures that the original casting achieves full den- alloy components is based on the processing sity and chemical homogeneity. of ultrafine powder into billets or parts. The The major disadvantage of this process, as powder may be of a single composition or a conventionally practiced, is that a large amount mixture of materials. By the latter method, ox- of the material must be removed to reach fi- ide dispersion-strengthened alloys, such as nal shape. It is common for the final part to MA-754, are produced. contain only one-tenth of the original materials. Powder metallurgy is attractive, not just be- This large material loss due to forging maybe cause it can produce new materials, but be- considerably reduced through the use of two cause it can produce substantial reductions in advanced technologies. the amount of scrap generated during forming Isothermal Forging.—Isothermal forging is dis- operations. Powder “pre-forms” are produced tinguished from conventional forging opera- by techniques similar to casting processes. The tions in that the temperature of the forging die pre-forms are then compressed at high tem- is the same as the piece being worked, approx- peratures and pressures to eliminate voids and imately 1,7500 to 1,9500 F. Through reduction inclusions. The components are then ready for of heat loss from stock to die, the plastic defor- inspection and final machining. mation of metal is significantly improved. The The combination of powder pre-forms and operation is conducted in an inert gas atmos- hot isothermal forging has allowed the devel- phere. Parts can be processed to close to the opment and use of some of the most advanced final specifications, although the shape must nickel-based alloys in turbine disks, including be configured to allow nondestructive inspec- IN-100, MERL-76, and Rene-95, none of which tion, usually by acoustic methods (hence the could be reliably formed into components by term “sonic shape” for the form as it leaves the conventional means. die). Further machining is required to reduce the shape to its final dimensions. Pratt & Whit- The advantages of powder metallurgy are not ney Aircraft has patented and licensed a varia- limited to conservation of strategic metals in tion of the isothermal forging process which the more exotic applications such as jet engine it claims can reduce the input material by 50 components. Gears and camshafts, parts which percent, thereby making a large reduction in normally require considerable machining, can the “buy-to-fly” ratio. Isothermal forging is now be manufactured to near-net shape by powder routinely used for the forging of turbine disks. pre-forms, thereby reducing scrap production . and machining, The need for resulfurized steel in these applications, normally used for its im- Near-Isothermal Forging.—Also referred to as proved machining characteristics, can be elim- “hot-die forging, ” near-isothermal forging inated as well, reducing the requirements for differs from isothermal forging in that the die manganese in this type of steel. is not heated to the temperature of the stock, but to 1500 to 3000 F below the stock temper- Recycling ature. The operation is conducted in air and can be adapted to conventional presses, mak- Until cobalt supplies were seen as threatened ing it more widely available at a lower cost than by the 1978 Katangese rebellion in Zaire, re- isothermal forging. Although the improve- cycling in the superalloy industry was largely ments are not as great as those for isothermal limited to home scrap. Prompt industrial scrap forging, this process does reduce the amount and obsolete scrap were either downgraded for 222 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability stainless steel production or exported out of the For production of superalloys, uncontami- country. As prices rose and supplies became nated home scrap of known composition can uncertain, the importance of recycling of super- be and is reverted directly to the charge. Ad- alloy scrap became apparent. Alloy producers, ditional processing sometimes involving sev- parts fabricators, and turbine manufacturers eral steps may be needed if prompt industrial began to segregate fabrication (prompt indus- scrap or obsolete scrap is to be recycled. trial] scrap by alloy type so that it could be Vacuum and air furnace technologies needed remelted and reused. Some turbine manufac- to remelt high-quality superalloy scrap into turers modified earlier specifications to allow usable master alloys are already in place in the greater use of prompt industrial scrap and even United States. In-house scrap is now carefully some obsolete scrap, provided that the source separated and routinely added to the alloy melt and type of the scrap was known. The exact by many producers of superalloys, and a spe- amount of the savings provided by recycling cialized industry has developed to produce during the period of high cobalt prices ($25 per master alloys from fabrication scrap. Some pound at their producer price high point in firms report that they now recover virtually all 1979-80) is not known, but domestic consump- in-house scrap. Obsolete scrap is also recycled tion of primary cobalt in superalloy was prob- to some extent, although generally not for the ably 10 to 25 percent less than might otherwise 7 most demanding application—rotating parts of have been the case. jet engines. As is discussed in box 6-A, instru- Identification and separation of scrap is time ments able to identify complex alloys and con- consuming and expensive. With 1983-84 cobalt taminants are now being marketed and may prices ranging from $6 to $12 per pound, it is alleviate some technical problems associated not clear whether the gains made in the late with scrap sorting. According to recycling in- 1970s will continue. Some firms have contin- dustry sources, several million pounds of high- ued their recycling programs, particularly for temperature alloy scrap have been shipped prompt scrap, by encouraging suppliers and from scrap processors to melters in the last 10 customers to separate scrap by alloy type. Spe- years.8 cialized scrap processing firms now have great- Air-melting processes, involving electric fur- er experience with this kind of recycling, which nace melting of the scrap charge and subse- may encourage jet engine manufacturers to up- quent refining in an argon-oxygen-decarburi- date specifications to allow greater use of scrap zation vessel, can produce alloys from scrap in the production of superalloys. Once such that are suitable for many noncritical superal- specifications are established, recycling of loy and super stainless steel applications, but superalloy scrap can be increased quickly in are not appropriate in critical applications such response to increased metal prices or supply as gas turbines used in aviation. Nickel and co- uncertainties. balt recovery is high, but readily oxidizable al- PROCESSING OF SUPERALLOY SCRAP loys are lost in the slag. Air melting of scrap can also be used to produce master melt alloys Commercially used technologies for recy- suitable for further processing through vacuum cling superalloy scrap are based on the same melting into superalloys.9 processes used in the original production and refining of the alloy, including vacuum induc- Vacuum melting processes are used to pro- tion melting and vacuum arc remelting, but duce superalloy suitable for the most demand- strict attention is paid to segregation of scrap ing applications or superalloys containing by type. highly reactive elements. Only the highest qual-

‘Information provided by the National Association of Recy- cling Industries. 7As discussed in Charles River Associates, Inc., E~fects of the ‘J. J. deBarbadillo, “Nickel-Base Superalloy: Physical Metal- 1978 Katangese Rebellion on the World Cobah Market, contract lurgy of Recycling, ” Metallurgical Transactions A., vol. 14A, report prepared for OTA, December 1982, pp. 1-6. March 1983, p. 332. Ch. 6—Conservation of Strategic Materials • 223

Box 8-A.-Scrap Sorting and Identification Instruments Recycling of complex materials requires de- are now available as portable units which can tailed knowledge of scrap constituents. Nick- be used in scrap yards.17 el- or cobalt-based superalloy scrap may con- A recent recycling advance has been linkage tain 8 or even 10 separate alloying elements, of scrap identification devices to user friendly as well as potentially troublesome tramp ele- computers, which provide workers with step- ments and contaminants that need to be re- by-step procedures for classifying scraps. moved during processing. Concerns about Commercially available programs specifically scrap quality are not limited to superalloys: geared to the needs of small firms in the rein stainless steel production, for example, cycling industry have been marketed for sev- presence of phosphorus in scrap needs close eral years. One such program, used in con- monitoring, due to its adverse effect on work- junction with a portable X-ray spectrometer ing, forming, and ductility of stainless steel. device, reportedly allows rapid identification Very small amounts of titanium in scrap charges of up to 16 elements in a sample.18 Initial anal- are believed to be harmful in tool steels and ysis can be completed in 10 to 50 seconds; a high strength steels. Failure to correctly iden- more complete quantitative analysis requires tify and sort scrap is a major reason for the several minutes, if needed. If properly pro- extensive downgrading of superalloy and grammed, the computer will identify the trade stainless steel scrap that is still prevalent. name of the alloy or materials which the scrap Certification requirements placed on scrap most closely approximates. This is especially processors by their customers have become useful in obsolete scrap identification, where increasingly stringent. In some premium uses, the origin of the materials may not be known. scrap processors may have to identify scrap Identification devices are increasingly used constituents to an accuracy of a few parts per by the scrap industry–with the encourage- million. Under these circumstances, conven- ment of the National Association of Recycling tional scrap sorting techniques—entailing vis- Industries, the Institute of Scrap Iron and ual inspection, magnetic separation, or spark Steel, and the Bureau of Mines. Most of these testing—are not sufficient in themselves. instruments were designed for laboratory or Growth in recycling of superalloy and spe- scientific use, not the difficult operating envi- cialty materials during the last decade has led ronment of the scrap yard. Portable devices to increased use of mobile and inexpensive have the ability to test a large number of sam- ($4,000 to $50,000) sorting instruments. These ples rapidly on site, but are not capable of devices were not developed primarily for use such detailed analysis as laboratory or station- in scrap processing, but most can be used by ary instruments. As instrument manufactur- unskilled operators (or in some cases trained ers become more aware of the scrap industry, technicians) to identify complex scrap com- instruments specifically designed for scrap in- ponents more accurately.16 Some of these (e.g., dustry use may be developed. chemical spot testing) are used to confirm the Likely trends in materials processing sug- presence of alloys after preliminary hand sort- gest that scrap classification techniques will ing is carried out. These techniques are qual- need continuing refinement. Use of more itative or semiquantitative in nature. More complex alloys, and parts made from multi- complex readings can be obtained through X- ple alloys will increase recycling difficulties. ray spectrometers, thermoelectric instruments and eddy current devices—all of which ~zNeWell, R. E. Brown, I). M. Soboroff, and H. V. Makar, A Re- view of Methods for ldentijjing Scmp Metals, Bureau of Mines Information Circular 8902 (Washington, DC: U.S. Government I@Xavier Spiege] and E. Horowitz, Instruments for the sorting Printing Office, 1982). and Identification oj Scrap Metal, Sponsored by the Institute of I$AS discuss~ in: “Phi]ips PB9500 X-Ray Spectrometer Speeds Scrap Iron and Steel (Baltimore, MD: The Johns Hopkins Univer- Recycling of Critical Materials,” Norelco Reporter, vol. 28, No.1, sity Center for Materials Research, Oct. 15, 1981), p. 1. May 1981, pp. 40-42. 224 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

The Bureau of Mines is identifying alloys for ing the last decade, many firms in the super- which current identification and sorting alloy industry established recycling programs, methods are not adequate, as a preliminary entailing close coordination of requirements step towards development of new methods.19 along the entire chain of the industry. A prop- Another area of government R&D (undertaken erly controlled program to ensure scrap integ- by both the Bureau of Mines and the National rity entails accurate separation and identifica- Bureau of Standards) is instrumented spark tion of scrap, and adequate measures to re- testing techniques, which could reduce sub- duce risk of contamination.20 jectivity in spark analysis by workers, Ultimately, effective recycling requires well- ~A detailed discussion of superalloy scrap processing require- developed linkages among processors, melt ments can be found in R. S. Cremisio and L. M. Wasserman, shops, fabricators, and manufacturers. Dur- “Superalloy Scrap Processing and Traae Elemeht Consideration,” Vacuum Metallurgy: Pmced@a of the 1977 Vacuum Metallurgy IOU.S. ~wtient of tie htarior, Bureau of Mktm AVOn~OJe Conferenm, R. S. Krutenat (ad.) (Princeton, Nl: Science Presa, Research Center Research Program Fiscal Year IW3, (n.p., n.d.) 1977), pp. 353-3S8.

of known composition and history can be vacuum melted without extensive preprocessing, In the long term, the potential for recycling will depend more heavily on obsolete scrap as the use of near-net-shape technologies increases. Where traditional machining of superalloy parts can typically require up to 10 times as much material as contained in the final part, new processes can reduce this figure to as low as 2 or 3 to 1. This reduces the amount of prompt scrap generated and thus increases the importance of obsolete scrap. The technical feasibility of using obsolete superalloy scrap to produce investment cast jet engine turbine blades has been demonstrated by Certified Alloy Products. The company reportedly has produced a master alloy from used superalloy turbine blades.10 The process entails oxygen lancing in an electric arc furnace, followed by refining in a vacuum induction furnace. Testing of blades made from the recycled alloy showed comparable quality to turbine blades manufactured from virgin materials. The firm developed the process in the aftermath of the 1978 cobalt price spike and has subsequently discontinued its use.11 Al- ——— IOThis process is described in Michael J. Woulds, “Recycling ity of scrap is suitable for vacuum melting. of Engine Serviced Superalloy s,” Supera]]oys 1980: Proceedings Such scraps are certified by alloy content and of the Fourth International Symposium on Superafloys, John K. must be free of contaminants and tramp ele- Tien, et al. (eds.) [Metals Park, OH: American Society for Metals, 1980), pp. 31-41. ments. With careful separation and identifica- ~lprivate communication between personnel of Certified AIIoY tion, some in-house scrap and fabrication scrap Products and OTA staff in May 1983. — -—

Ch. 6—Conservation of Strategic Materials ● 225 though such techniques may enhance the po- proprietary manufacturing process uses chem- tential for reuse of obsolete superalloy scrap, ical means to recover highly purified cobalt further work to establish process reproducibil- powder that is now used in cemented carbide ity and results may be needed. products. The firm is considering a larger scale recovery process which would produce com- Both vacuum and air melting furnace tech- pacted briquettes of cobalt that maybe suitable nologies continue to evolve. New processes, 14 for superalloy production. such as Electron-Beam Refining, Vacuum Arc Double Electrode Remelting (VADER), and Commercialization of advanced superalloy Plasma Arc processes may have considerable reclamation processes by industry is impeded relevance to superalloy recycling. Some of by the currently low price of cobalt. Plans to these technologies are in the early stages of use undertake a pilot plant to test the Inco/Bureau in the United States. of Mines laboratory process discussed above were discontinued when cobalt prices fell in Several laboratory-scale processes have been the early 1980s. Feasibility studies showed that developed which separate superalloy scrap into the pilot plant process, and a small-scale com- its constituent metals, but none have been commercial facility would have been profitable at mercialized. Such techniques overcome most 1980 metal prices, but would operate at a defi- concerns about contaminants. In a laboratory cit at cobalt prices in the 1981-84 period. Esti- project sponsored by the U.S. Bureau of Mines, mated costs of a pilot plant project able to han- Inco developed a process that utilized a com- dle 100 pounds of scrap feed per hour were bination of hydro- and pyre-metallurgical proc- estimated to be about $5 million in 1980 dollars, esses to recover 93 percent of the chromium, assuming no donation of equipment by indus- 99 percent of the nickel, 96 percent of the co- try. Operating costs for such a facility would balt, and 92 percent of the molybdenum from 12 be in the neighborhood of $2 million for an 18- clean, solid superalloy scrap. Other Bureau month period.15 of Mines research projects on superalloy scrap are underway. In one experiment, the super- RETIREMENT FOR CAUSE AND PRODUCT alloy scrap is melted with aluminum or zinc LIFE EXTENSION PROGRAMS to form an intermetallic compound which can currently, critical components of jet engines, be crushed into small particles. The particles such as turbine disks, are retired from service are then dissolved by acid; the resulting solu- on a predetermined schedule, based on the tion would then be treated hydrometallurgi- number of hours a part has been in operation— cally to recover the metals. The process is not on the basis of actual detection of flaws or thought to be especially promising as a means defects in the part, This has been necessary be- for recycling mixed combinations of bulk 13 cause of difficulties in detecting the early stages superalloy scrap which have not been sorted. of flaws that could lead to a disastrous failure GTE Sylvania Corp. has a commercial facil- of a part. While the current retirement proce- ity for recovering high-purity cobalt from sec- dures minimize risk of failure, most parts are ondary sources that include some types of su- removed from service long before actual flaws peralloy scrap, including grindings. GTE’s occur. — Turbine disks used in the F-100 jet engine, ’21. 1. cie Elarbi~illO, J. K. Pargetter, and H. V. Makar, Process for Recoloring Chromium and Other Metals From SuperalloJr for example, are only kept in service for the Scrap, U.S. Department of the Interior, Bureau of Mines Report number of hours in which there is a statistical of Investigation 8570 (Washington, DC: U.S. Government Print- probability of a fatigue crack developing in one ing Office, 1981), lsJera]d R, Pederson, compiler, Bureau (~~ Mines Research ~ ~~.~ out of a thousand disks. As a result, 999 parts (Washington, DC: U.S. Government Printing Office, n.rl.), p. 103: can be expected to be removed from service and (;. B. Atkinson, Increasing the l,eaching Rote a.f HuJk Superallo~r Scrap b}’ Nfelting \lrith Aluminum, U.S. Department of the 1 nterior, Bureau of Mines Report of Investigations 8833 141 nformation pro~.ided by GTE Products Corp. (Washington, DC: LJ.S. Government Printing Office, 1983). 1s1 nformation provi(]e(~ by the U.S. Bureau Of Mines. 226 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

prematurely for every single part that is defec- These parts are also being used as test speci- tive. Subsequent testing has shown that the use- mens for the evaluation of RFC methodologies. ful life of many of these retired parts could be Other parts in these “holding accounts” may 10 times longer than the disk in which the ini- be capable of rejuvenation through current and tial crack occurs.21 prospective technologies discussed in the previous section. With the substantial technical advances that have been made in NDE in recent years, it may It is possible to extend the lifetime of com- soon be possible to evaluate individual parts ponents of the jet engine if flaws and defects from operating jet engines at prescribed inter- can be caught at an early time. Researchers in vals in order to determine whether the initial West Germany, for example, have reported that stages of a flaw have appeared. Parts which if an engine is dismantled at three-quarters of have such flaws could then be retired for cause its normal life and the turbine blades are sub- (RFC); those without flaws could be kept in jected to hot isostatic pressing to eliminate in- service. cipient cracks, the overall life of the blades will extend to 50 percent beyond their normal life Such a strategy underlies the Air Force’s in service, as illustrated in figure 6-1. Wright-Patterson Aeronautical Laboratory evaluation of methodologies for a maintenance pro- Hot isostatic pressing (HIP) has also been gram based on retirement for cause. If imple- shown to extend the service life of vanes and mented, the program will permit parts from blades if it is used as a post-casting treatment some jet engines to be used until there is ac- to eliminate all porosity remaining in the ma- tual evidence of an incipient flaw. An actual terial after casting. The post-casting HIP treat- decision about implementing the program will ment has been shown to increase the average probably not be made until after 1985. How- stress-rupture life by 100 percent and the fa- ever, early indications are that the program has tigue life by 800 percent in two nickel-base al- the potential to reduce spare-part requirements, loys, B-1900 and IN-792, both modified by the and therefore to conserve strategic materials. addition of hafnium. The initial Air Force evaluation centers on the F-100 jet engine. If initiated in 1985, the Figure 6-1 program’s savings in spare parts over the 15- .—Service Life Time of Turbine Blades year average engine service life left in the F- Dismantle 100 fleet could be $249 million. By 2000, a 70 For For percent material savings from requirements for reduced spare parts would also be achieved, according to the Air Force. A related Air Force initiative is aimed at “stockpiling” retired jet engine parts until they can be returned to service rather than simply disposing of them as scrap, as is ordinarily done.22 Many of these parts have been retired simply because they have reached the end of the predetermined service life discussed above, and could be returned to service if retirement- for-cause (RFC) methodologies are implemented.

“J. A, Harris, et al,, Concept Definition: Retirement for Cause of FIOO Rotor Components. Technical Report AFWALTR804118 prepared for U.S. Air Force Materials Laboratory at Wright-Pat- SOURCE” H. Huff, R. Grater, and R Frohling, “Measures for Materials Conserva. terson Air Force Base by Pratt & Whitney Aircraft Group (Wash- tion in Aero.Engine Construct ion,” paper delivered to the NATO Ad- ington, DC: U.S. Government Printng Office, 1981). visory Group for Aerospace Research and Development Conference, ZZInformation provided by the U.S. Air Force. Vimelro, Portugal, October 1983 Ch. 6—Conservation of Strategic Materials ● 227

A quite different approach toward material For example, coated or clad superalloys may conservation is to design parts for the life of reduce the value of some superalloy scrap the aircraft. Such approaches may require owing to added costs of identifying and recov- more strategic materials to be used in the ini- ering the surface layer. continuing evolution tial part, but because these parts have a longer in scrap processing technologies to keep pace life expectancy, the end result may be to con- with rapid changes by producers and compo- serve materials. Such strategies are being nent manufacturers will be required if the evaluated through the engine structural in- promise of recycling is to be realized. tegrity program of the Air Force. Conservation of Manganese OUTLOOK FOR CONSERVATION OF STRATEGIC MATERIALS 23 IN SUPERALLOYS in the Steel lndustry All of the factors discussed above—materials- Nearly 90 percent of the manganese con- efficient processing, recycling, and life exten- sumed in the United States is used in the sion—will play a role in determining conserva- production of steel, either as an alloying ele- tion levels achievable in superalloy production ment or as a processing agent.24 Consumption and parts manufacturing. More efficient proc- of manganese in this industry is dependent not essing and fabrication could reduce input raw only on the level of steel production, but also materials needed for each jet engine by 10 per- on the mix of steel grades produced and proc- cent by 1990 and 25 percent in the early years essing technologies used. This section dis- of the next century, compared to current levels. cusses the function of manganese in both steel This is a judgmental estimate, which assumes and steelmaking, and assesses the effects of that many currently used technologies (which product and processing trends on the pattern are less efficient in conserving materials) will of manganese use in the steel industry. continue to be used throughout much of the period. Advanced technologies are likely to be Manganese as an Alloying Element in Steel introduced primarily when new alloys and suc- Manganese is second only to carbon in im- cessive generations of jet engines are brought portance as an alloying element in steel. Through into production, typically at 5- to 10-year in- its influence on steel chemistry and microstruc- tervals. ture, manganese influences an assortment of As fabrication becomes more efficient, home physical and mechanical properties. As dis- and prompt scrap—now preferred for recy- cussed in box 6-B, manganese provides sulfur cling—will comprise a less important portion control, enhances hardenability, wear resist- of the materials available for recycling. If proc- ance, and solid solution strengthening, and essing problems are overcome, obsolete scrap retards recrystallization. The amount of man- will probably ascend in importance, although ganese used as an alloying element depends on to what extent is difficult to foresee. Part life the specific property requirements of the par- extension technologies and RFC maintenance ticular steel product. Some grades make greater philosophies could extend the material life cy- use of it than do others. cle, thus temporarily reducing obsolete scrap production levels, even if advanced recycling technologies are implemented. Development of new alloys and manufactur- ZaMuch of the analysis in this section was based on G. R. St. ing techniques by superalloy producers and jet Pierre, et al., Use of Manganese in Steelmaking and Steel Prod- ucts and Trends in the Use of Manganese as an AJloying Element engine makers can have unpredictable effects in Steels, OTA contractor report, February 1983. on recycling. Increased use of powder metal- zqBased on data from Minera]s Yearbook Voiume 1 (Washing- lurgy, coatings, multiple alloy components, and ton, DC: U.S. Bureau of Mines, Department of the Interior, 1980, 1981, 1982). Includes manganese consumed in ores with greater phase-in of advanced ceramics and composites than 5 percent Mn, ferroalloys, and metal, but not the manganese may make the job of recycling more difficult. contained in most iron ores 228 ● Strategic Materials: Technologies to F/educe U.S. Import Vulnerability

Box 6-B.—The Role of Manganese as an Alloying Element25 Sulfur Control.--In nearly all grades of steel, sulfur is an unwelcome impurity. It is a tramp element that is picked up from the coking coal, fuel oils, and ferrous scrap used in the production of iron and steel. Iron and sulfur form compounds (FeS) at the grain boundaries within steel, causing a detrimental condition known as “hot shortness.” Problems arise because FeS has very little structural integrity, being either liquid or extremely plastic at the temperatures encountered during many finishing (hot working) operations. The presence of this strengthless phase as a film along the network of grain boundaries severely weakens steel at high temperatures and causes cracking during fabricating operations, Furthermore, in ferritic grades, FeS causes problems with low-temperature mechanical properties. To minimize these effects, the sulfur content is typically held below 0.05 percent by weight. Manganese is added to react with the remaining sulfur, which would otherwise combine with iron. The globular MnS precipitates formed upon the addition of manganese are solid at typical hot working temperatures and are structurally amenable to hot forming operations. Although it is not a remedy for all sulfur-related problems, manganese generally improves both the high- and low-temperature properties of steel. Hardenability.--Heat treatment is the most potent method for optimizing the strength and ductility of steel. The cooling rate required to form a given martensite profile during the heat treatment quench is a very important parameter, known as “hardenability,” of steel. Additions of the common alloying elements, namely molybdenum, manganese, chromium, silicon, and nickel, facilitate the formation of martensite, thereby reducing the cooling rate requirement and increasing the hardenability of steel. Manganese is a very cost-effective hardenability agent and consequently is one of the most vital alloying elements for influencing the response of steel to heat treatment. An allied effect of some alloying elements concerns their influence on the shape and distribution of iron carbides in steel. Weld embrittlement can occur if the iron carbides form a continuous film at the grain boundaries during the thermal excursion. Manganese tends to enhance weldability of steel by inhibiting the development of such film. Wear Resistance.--Manganese, like nickel, lowers the austenite-to-ferrite transformation temperature of steel and is termed an austenite stabilizer. High-carbon steels that remain austenitic at room temperature can be produced by adding manganese to levels greater than 10 percent by weight. Austenitic steels as a class are attractive because their strength increases markedly as they are deformed and they have excellent resistance to fracturing under impact conditions, two properties important for wear resistance. The austenitic manganese grades, called Hadfield steels, display good abrasion and impact resistance and serve in construction, mining, quarrying, oil-well drilling, steelmaking, cement and clay manufacturing, railroading, dredging, and lumbering applications. Other austenitic grades (containing 15 to 25 percent manganese) have been developed for their nonmagnetic properties and high toughness. These high-manganese austenitic steels are suitable for structural uses in strong magnetic fields and at cryogenic temperatures and may replace the stainless steels commonly used in these applications. Solid Solution Strengthening.--Steel generally becomes stronger when an alloying element is dissolved in the iron phases. This effect is known as “solid solution strengthening.” It is a very important means of strengthening ferritic steels, which cannot be strengthened by heat treatment. Alloying elements vary markedly in their potency as solid solution strengtheners. In ferritic steels the order of decreasing effectiveness appears to be: silicon, manganese, nickel, molybdenum, vanadium, tungsten, and chromium. While silicon is highest on this list, it is not used extensively because of an accompanying loss of ductility. Thus, manganese has great utility as a solid solution strengthener. Recrystallization.–When steel is deformed or heavily worked, its microstructure is altered in a way that is detrimental to the properties of steel. To alleviate problems, steel in this condition is usually annealed, whereupon the microstructure is recrystallized. Manganese slows the rate of recrystallization considerably. This is not a desirable effect and can have negative impacts on the productivity of various steel-treating processes, such as continuous annealing operations. ~~he terms ferrite, austenite, and martensite that appear throughout this discussion refer to the various microstructural phases of steel. Ch. 6—Conservation of Strategic Materials ● 229

MAJOR CLASSES OF STEEL and cams, where considerable machining is Steel is produced in a myriad of composi- needed. The large number of manganese sul- tions, and the relative popularity of each grade fide particles in these steels improve surface changes as consumer demands shift. Trends finish, enhance metal removal rates, and in- in manganese use vary among the four broad crease the tool life by facilitating the chip for- categories of steel: carbon, full alloy, high- mation process. strength low-alloy (HSLA), and stainless. All four classes contain manganese, but in differ- Full Alloy Steel.—Alloy steels usually contain ing proportions. more manganese and silicon than do carbon steels and, in addition, may contain other ele- The most widely used systems for designat- ments such as chromium and molybdenum. ing steels in terms of their chemical composi- The extra alloying additions enhance mechan- tions are those of the American Iron and Steel ical properties, fabrication characteristics, or Institute (AISI) and the Society of Automotive other attributes of the steel. In the more com- Engineers (SAE). These cataloging systems are mon alloy steel grades, manganese is added pri- very similar and are carefully coordinated by marily for hardenability and less importantly the two groups. In addition to the common for sulfur control. The average manganese con- grades listed by these organizations, steel- tent of alloy steels is estimated to be 0.75 per- maker produce proprietary grades, but the cent, or 15. o pounds per ton of steel. manganese contents of these are comparable. The chemical specifications for a particular There are experimental alloy steels which grade of steel vary slightly according to the have not yet been assigned regular AISI-SAE product nature. Specifically, the ranges in designations. In general, these experimental plates are a little wider than those for bars, sim- grades have higher manganese specifications ply because compositional variations due to than the standard grades. This suggests that segregation are greater in the large rectangu- manganese is becoming more popular as an al- lar ingots used in plate production than in the loying element and that the average manganese smaller ingots used for bars. content of alloy steels should be expected to increase. Carbon steel.—The main constituents of carbon steels are iron, carbon, and manganese, with Although most alloy steels contain under 2 manganese present up to a maximum of 1,65 percent manganese, several grades containing percent. The majority of carbon steels have 10 to 14 percent manganese are used. These manganese specifications whose midpoints fall are the Hadfield grades, which have excellent in the range 0.40 to 0.85 percent. The average abrasion and impact resistance and are used manganese content of the entire carbon steel in construction, mining, and other high-wear category is estimated to be about 0.65 percent, applications. There are also alloy steels with or 13. o pounds per ton of steel. manganese contents as high as 25 percent that Manganese is used in carbon steels primar- have been developed for use in strong magnetic ily for its sulfur control and solid solution- fields and at cryogenic temperatures. strengthening characteristics. It also improves HSLA Steel.—HSLA steels have been devel- the heat treating characteristics (hardenability) oped as a compromise, having the convenient of these grades, though this is not a major con- fabrication characteristics and low cost of car- sideration for many uses of carbon steel. bon steels and the high strengths of heat-treated Two types of carbon steel have especially alloy steels. HSLA steels are generally used in high manganese and sulfur contents in order applications such as energy production and au- to improve machinability, These resulfurized tomobiles, where savings in weight can be and resulfurized-rephosphorized grades typi- made as a result of their greater strength and cally contain 0.7 to 1.65 percent manganese atmospheric corrosion resistance and where and find service in applications, such as gears better durability is desired. 230 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

HSLA’s derive their superior properties from to increase their portions of the market. By a variety of alloying elements in relatively low 2000, the product shares for the various prod- concentrations of 0.2 to 1.6 percent, coupled ucts are expected to be approximately: carbon with controlled rolling and heat treatments. 80 percent; full alloy 9 percent; HSLA 9 per- Common alloy additions include manganese, cent; and stainless 2 percent. nickel, chromium, columbium, molybdenum, The second contrasting trend is the decreas- titanium, and vanadium. In comparison with ing manganese composition of carbon steels. the majority of carbon and alloy steels, the This is a result of improvements in the steel- HSLA steels contain greater manganese con- making process, namely, better sulfur removal tents. The limits in the 14 alloys designated by techniques and more reliable composition con- the SAE range from 1 to 1.65 percent manganese, with an average of about 1.1 percent, or trol, This effort is driven by economic pressures to conserve raw materials and increase an average of 22.0 pounds per ton of steel. product fabricability. New technologies allow Stainless Steal .—Stainless steels are ferrous al- steelmaker to retain the same quality product loys that are rich in chromium and sometimes with less manganese. They can now afford to nickel. They are used in a variety of applica- reduce manganese content to save on raw tions requiring good corrosion and oxidation materials costs and to avoid some of the more resistance, as well as good strength. Composi- unpleasant attributes of manganese, such as the tional specifications for stainless steels usually recrystallization problem alluded to in box 6- do not prescribe minimum manganese levels, B. Two manganese reduction techniques are only maximum concentrations. Stainless alloy likely to be administered: trimming to the lower 304, which constitutes roughly 42 percent of end of the specified manganese range for each the stainless steel produced in the United States, of the grades and reduction of minimum man- has a manganese specification of 2.0 percent ganese compositions because less is needed for maximum. On the average, stainless steels con- sulfur control. tain 1.7 percent manganese, or 34.0 pounds per Trimming.—Most manganese specifications for ton of steel. steels are listed as ranges. To be on the safe Several stainless steels, however, contain far side, steelmaker generally aim for the mid- more manganese than the average. In part, points of these ranges. Trimming involves aim- these alloys reflect the fact that an increase in ing for the lower end of the specified range. manganese levels permits a reduction in nickel Improved ladle practice is the key to effective content. Tenelon steel, containing 14.6 to 16.5 trimming. Better manganese composition con- percent manganese, was developed by U.S. trol is attainable with improved melt protec- Steel Corp. following concern over nickel tion, alloy additions packaging, and sensing, shortages that occurred during World War II analytical, and control instrumentation. Trim- and the Korean conflict. ming practices could be implemented very quickly in an emergency, especially if opera- TRENDS IN THE STEEL PRODUCT MIX AND MANGANESE USE tors become better aware of the statistical na- The average amount of manganese consumed ture of quality control. The manganese content of steel could be reduced by as much as 0,05 strictly for alloying purposes is being influ- 26 enced by two major trends. The first is a chang- to 0.10 percent with the use of trimming. ing product mix. Steel consumers are using in- Reduction in Specified Manganese Range.—Sulfur creasingly greater proportions of full alloy, specifications of most steels, except for the stainless, and HSLA steels, which usually con- resulfurized grades, are usually about 0.05 per- tain more manganese than do carbon steels. cent maximum. In practice, steels are pro- Figure 6-2 shows the historical product shares duced with average sulfur contents of about for each of the major steel classes. The classes containing the most manganese, namely, full ZeJohn R. stubbles, “Conservation Could Cut Steelmaking Re- alloy, HSLA, and stainless steels, are expected quirements,” American Metal Market, Oct. 20, 1983. Ch. 6—Conservation of Strategic Materials Ž 231

Figure 6-2. —Historical Market Shares for Major Classes of Steel

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1% stainless

[]Vio +--..,..-.....,,....-...,.--...,..--..,..--,....-...,.--.,..--...... =-==p==="""'===="""'====F===F==1 1970 1975 1980 1985 SOURCE Office of Technology Assessment, based on shipments data from the American Iron and Steel Institute,Inst!tute, Washington DC 232 Ž Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

0.025 percent. Manganese specifications could amount of manganese needed is realized by re- be reduced to reflect this lower sulfur level. ducing the sulfur content. The manganese content of each grade of steel could probably be Technologies such as external desulfuriza- reduced by 0.2 percent with the widespread im- tion of blast furnace iron and ladle metallurgy plementation of external desulfurization and techniques allow steelmaker to reduce the sul- ladle technologies. For carbon steels, this rep- fur content of the finished product further still. resents a 30-percent reduction in the manga- External desulfurization involves injecting cal- nese content. cium carbide or magnesium metal into the hot metal prior to its introduction to the basic oxygen steelmaking units. Lime is sometimes in- SUMMARY OF TRENDS IN THE MANGANESE jected as an auxiliary agent with these desul- COMPOSITION OF STEELS furization materials. Implementation of this The effects of the product mix and manga- technique will become almost universal in the nese composition trends on the average man- domestic industry by 1990. This will reduce the ganese content of steel is illustrated by table need for desulfurizing during the steelmaking 6-2. Note that even though the high-manganese stage and lead to much lower residual sulfur alloy products become more pervasive, the levels in new steel and, eventually, in recycled average manganese composition is likely to scrap. Furthermore, ladle injections of desul- drop from 0.69 to 0.61 percent. That is a re- furizing agents such as lime, calcium, or rare duction of 1,6 pounds (from 13,8 to 12.2 pounds) earths just prior to primary casting reduces the of manganese for each ton of steel. sulfur content below 0.01 percent, and often below 0.005 percent. Ladle metallurgy technologies may not be installed primarily for sulfur Manganese in the Steelmaking Process reasons, but once they are in place they will On an industry average, almost three times no doubt be used to reduce sulfur levels in ad- more manganese is added to steel during its dition to providing the other benefits. processing than ends up in the finished prod- By 2000, the average sulfur content of steel uct. When the 11 percent of the manganese ad- may be as low as 0.01 or 0,02 percent. This ditions that comes from in-house recycling is means that less manganese is required in the discounted, the overall manganese recovery finished product solely for sulfur control pur- rate comes to about 39 percent. This section poses. Even though proportionally higher man- outlines the major trends in steelmaking prac- ganese-to-sulfur ratios are required at lower tice that affect the efficiency of manganese use levels of sulfur, a net reduction in the actual in the production process.

Table 6-2.—Manganese Content for Major Grade of Steel

Current (1982) Forecasted 2000a – Market Manganese Market Manganese – share content share content Carbon b ...... 87.6 0.65 80 0.5 - Full alloy ...... 6.1 0.75 9 0.8 HSLA ...... 4.8 1.1 9 1.2 Stainless ...... 1.5 1.7 2 1.7 — Total ...... 100.0 0.69 100 0.61 aDra~tiC ~h~”~~~ in the bala”c~ of economic activl!y Could shift the market shares in 2000 to: 90 percent carbon, 9 PerCent combined full alloY and HSLA, and 1 Percen~ stainless In the low case; or 70 percent carbon, 27 percent combined full alloy and HSLA, and 3 percent stainless in the high case An average manganese content of O 67 percent (high case) might arise from a shift In favor of alloy steels caused by a severe reduction in new construction and manufacture of machinery, vehicles, and containers with a relative gain in the construction of new chemical, petrochemical, coal conversion, and powerplants. Similarly, a substantial shift (n favor of carbon steels caused by extremely high demand for new buildings, highways, vehicles, and primary machinery might result In a manganese content of 0,56 percent (low case) bTrimming, together with reductions in the specified manganese range, could cut the manganese content of carbon steels by 0.25 to O.so p3rCent. A COrl SerVatiVe reduc- tton of O 15 percent is shown here to account for less than full implementation of these practices. SOURCE: Office of Technology Assessment based on data from the American Iron and Steel Institute, Washington, DC, and G R St Pierre, et al , Use of Manganese in Stee/nraking and Stee/ Products and Trends in fhe Use of Manganese as an A//eying E/ernent In Stee/s, OTA contractor report, February 1983 Ch. 6—Conservation of Strategic Materials ● 233

PATTERNS OF MANGANESE USE IN STEELMAKING recycled in this manner, but it does find other Figure 6-3 shows the conventional steelmak- commercial uses in the brick, aggregate, glass, ing sequence, from raw materials preparation and bedding industries. There are no reliable to casting and finishing. Manganese enters the data on the overall extent to which manganese process flowstream from five distinct sources: is recovered from steelmaking waste materials, iron ore, fines and waste materials, manganese but most likely less than 20 percent of the ore, iron and steel scrap, and ferromanganese. manganese contained in iron and steel industry waste materials is currently recovered for On an industry average, iron ore and fines reuse. and waste materials contribute approximately 36 percent of the manganese (disregarding that Manganese ore charged to the blast furnace present in ferrous home scrap] ultimately added accounts for 5 percent (industry average) of the to the process stream. Iron ores contain ap- total input of manganese to the processing proximately 0.16 percent manganese.27 Al- stream. Charging this ore is a relatively inex- though this is a small concentration (and has pensive way of increasing manganese concen- been declining in recent years), large quantities trations to levels beneficial for the processing of iron ore are added to the blast furnace. Fines characteristics of ironmaking and steelmaking. and waste materials generated by the steel pro- Iron and steel scrap is charged to the steel- duction process contain large amounts of man- making furnaces and, to a lesser extent; the ganese. Though currently there are no satisfac- blast furnace. The manganese content of home tory methods for extracting manganese from scrap depends on the stage in the steelmaking the iron and steelmaking slags, dusts, sludges, process at which it is generated. That created scales, and other wastes, some plants operate at the steelmaking stage contains roughly 0.2 sinter strands to recycle some of these mate- percent manganese, while that coming from rials, The ore sinter (consisting of partially casting and finishing reflects the manganese fused limestone, fine iron ore particles, and specifications of the product mix of the par- steelmaking dust and other waste products) ticular mill in question. Manganese contribu- produced in sinter strands can be charged tions in purchased scrap depend on the trends (added) to blast furnaces for hot metal produc- in the manganese content of steel products, dis- tion. Steelmaking slags and dusts consume a cussed in the preceding section. large proportion (approximately 42 percent) of the manganese added to the process stream. Ferromanganese is added to the process Slags from both electric and basic oxygen steel- stream during the ladle refining stage. Approx- making furnaces can be charged into blast fur- imately 45 percent (industry average) of the to- naces, however, basic oxygen furnace (BOF) tal manganese input is added as ferromanga- slags are more commonly recycled in this man- nese. This manganese is not intended to be ner. This is because of the proximity of BOFs sacrificed for the sake of processing improve- to blast furnaces—BOFs are always part of in- ments. Coming late in the steelmaking process, tegrated steelmaking facilities, while electric it is intended to bring the level of manganese arc furnaces (EAF) are not, According to a 1976 in the steel up to final product specifications. NMAB study, about 40 percent of the BOF slag Much of the manganese contributed by these (containing on average 4.5 percent manganese) five sources does not make it into the finished produced is recycled to the blast furnace: the 28 product, but ends up instead in steel scrap and rest is discarded. No blast furnace slag is processing waste products. The percentage ZpA~~~rding t. the American Iron Ore Association (Cleveland, that does end up in the finished product is a OH), in 1982, 7(I percent of U.S. iron ore consumption was from function of the manganese recovery factors for U.S. sources, while 20 percent was from Canadian sources, On average, the U.S. ores contained 0.12 percent manganese and the various process stages. These recovery fac- the Canadian ores contained 0.31 percent manganese. tors are dependent on process yield rates and Z8LN ~tiona] Materials Advisory Board, I?langanesc ~e[:otr[?r}’ manganese migration characteristics. Poor Tcchnolog}, publication NMAB-323 (Washington, DC: National Academy Press, 1976]. yield rates result in both large quantities of 234 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

Figure 6-3.— Flow Diagram Showing the Principal Process Steps Involved in Converting Raw Materials Into the Major Steel Product Forms, Excluding Coated Products 1 Coal coal r mines +

1 1 L J Alloying elements v ~ and Manganese addition ore agents ● ‘ea.. FeMn r -, m e.g. Ferromanganese

I billet frills) Sheets Coils ~ —Shows manganese additions. SOURCE The Making, Shaping, and Treating of Stee/, the United States Steel Corp., Pittsburgh, PA, 1971, adapted by the Office of Technology Assessment to show manganese flows. -. . - . -. . . . . --- Ch. 6—Conservation of Strategic Materials • 235

wastes that cannot be recycled, and sizable causes the recovery factors to be lower than amounts of home scrap from which additional the yield rates. wastes are produced during recycling. Man- ganese losses are exacerbated because waste TRENDS IN STEELMAKING TECHNOLOGY materials such as slags and dusts commonly Figure 6-4 shows the current pattern of man- contain manganese in concentrations greater ganese use in the production of one ton of steel than those in the steel, Manganese, as well as product. Of the total manganese consumed in many other alloying elements, often migrates the steelmaking process, 39 percent is embod- to the process wastes. Sometimes this segre- ied in the finished steel product, and 61 per- gation of elements between the steel and the cent is lost in slags, dusts, and wastes. Note that wastes is intentional, as during the steelmak- 13 percent of the manganese inputs are recy- ing stage when manganese is used to react with cled as home scrap, generated principally dur- 29 dissolved oxygen and carry it into the slag. ing the casting and finishing steps, The flows In a sense, these are “sacrificial losses. ” In in the figure are industry averages and do not other instances the segregation is an unwanted reflect operations in any particular steel plant, consequence of the process chemistry, Regard- They are aggregates based on the current mix less of the intent, this manganese migration of equipment and operating characteristics for the industry. Shifts in this mix of steelmaking 2Q~xygen disso]tred in mo]ten steel reacts with carbon to Pro- technologies are expected to change the man- duce gaseous carbon monoxide, which, when trapped during ingot solidification, causes defects known as blowholes. This ganese flow pattern. problem can be avoided by reducing the oxygen content of the steel with the addition of elements that react with the oxygen Ironmaking.—From 50 to 80 percent of the and carry it off to the slag. Manganese, aluminum, and silicon manganese charged to blast furnaces is re- are the most important of the deoxidizing agents. Though a weak tained in the molten pig iron, Typically, the deoxidizer by itself, manganese enhances the deoxidizing capacity of silicon. Moreover, the presence of manganese oxide average recovery rate is 75 percent. The rein the slag helps to develop proper slag characteristics, in part mainder is lost to blast furnace slag, which is through more rapid dissolution of lime, If the manganese con- not recycled or processed for its manganese tent of the steelmaking charge is too low, additional slag fluxes containing fluorspar, which is considerably more expensive than content. Although construction and operation ferromanganese, must be used. of direct reduction ironmaking plants will con-

Figure 6-4.—Current Pattern of Manganese Use in Steelmaking (pounds of manganese of finished steel)

Home scrap Purchased 4.97 I I 0.47

1 Finished

Waste 2.86 I

‘Recovery with respect to ferromanganese additions IS assumed to be 82 percent, while complete recovery of Mn IS assumed for raw steel

SOURCE Office of Technology Assessment; and G R, St Pierre, et al , Use of Manganese in Sfeelmak(ng and Sfee/ Products and Trends in fhe Use of Manganese as an A//eying E/ernent in Sfee/s, OTA contractor report, Februa~ 1983. 236 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

tinue, particularly in certain parts of the world, ably increase to the range of 40 to 60 percent e.g., the Middle East, Mexico, South America, over the next few years as a result of these and and Soviet Union, where natural gas is abun- other changes, such as separate desiliconiza- dant, the principal source of domestic crude tion and better control of the charge and slag. iron will continue to be the blast furnace, Manganese recovery in EAFs is expected to improve somewhat over the next few years from Over the next few years, the trend to shut better charge materials, reduced oxidation dur- down the oldest and least efficient blast fur- ing high-speed meltdown, improved end-point naces and to upgrade the better furnaces will control, and greater use of secondary and la- continue. Furnaces are upgraded in a number dle refining. of ways; including modifications of the charging systems and relining configurations, adop- Based on current operating practices and tion of improved hot blast, additive, pressuri- mix of BOF and EAF steelmaking, the average zation, and tapping procedures, and installation manganese recovery of the steelmaking stage of better instrumentation and control equip- is estimated to be 26 percent. The increasing ment. All of these developments taken together use of EAF steelmaking and improvements in will increase the operating performance of operating characteristics are expected to im- blast furnaces but are unlikely to have a major prove this average recovery rate to 42 percent effect on manganese use. by 2000. Manganese retention in the blast furnace can Ladle and Secondary Refining.—The role of ladle be expected to decrease somewhat from its cur- and secondary refining has grown rapidly dur- rent value of 75 percent because of the use of ing the past few years, In stainless steel produc- more acidic slags allowed by external desul- tion, adoption of AOD processing, which is a furization, However, this should be offset by secondary refining process, is almost universal. the opportunity to include more manganese- For low-alloy and carbon grades, deoxidation bearing steelmaking slag (primarily for its iron, and desulfurization procedures have been lime, and flux content, but also for manganese) greatly improved with the increased use of ar- in the blast furnace charge. gon shrouding of steel surfaces and pouring streams. In addition to the trimming benefits Steelmaking.—Currently, manganese recovery mentioned in the previous section, these proc- in BOF steelmaking ranges from 20 to 50 per- esses capture the manganese content of ferro- cent, depending on the final carbon content alloy additions to a much higher degree and and temperature of the melt (manganese re- reduce reoxidation loss during subsequent covery improves with increases in both), Re- pouring. These improvements are expected to covery in electric steelmaking is substantially raise the recovery of manganese from the fer- greater, The proportion of steel produced in roalloys from 82 to 90 percent which raises the EAFs is increasing relative to BOFs. The cur- overall manganese recovery rate of the proc- rent ratio of EAF steel to BOF steel, roughly ess from 87 to 95 percent. 30:70, is expected to increase to 40:60 by 2000. This not only improves the average manganese Casting and Finishing .—The benefits of continu- recovery rate, but also increases the average ous casting have been fully established. Con- ferrous scrap charge rate. Scrap is typically 100 tinuous casting leads to overall cost savings as percent of the charge to EAFs while only 30 well as improved product quality (cleanliness, percent to BOFs. Thus, greater use of EAFs in- homogeneity), reduction of energy require- creases the recycling of manganese, ments and decreased metal loss (scaling) during ingot reheating. In addition, it gives greater Operating practices for both EAFs and BOFs yields of steel products from raw molten steel.30 are changing. The basic oxygen processes are undergoing dramatic changes with the incor- 30 The ingot. to-s]ab Yie]d of conventional ingot casting opera- poration of bottom blowing and inert gas mix- tions varies greatly according to the nature of the products. ing techniques, Manganese recovery will prob- Owing to large shrinkage cavities, the yields for killed grades Ch. 6—Conservation of Strategic Materials . 237

Direct rolling of hot slabs and billets from continuous casters has been demonstrated in several plants throughout the world. By eliminating the cooling and reheating steps, this technology offers potential for further improvements in metal recovery as well as energy savings. Based on the trends toward greater use of continuous casting and direct rolling, the yield rate during casting and finishing operations is expected to increase from its 1982 value of 75 to 85 percent by 2000.

Summary of the Effects of Processing Trends The current and expected yield rates and manganese recovery factors for each stage of the steelmaking process are shown in table 6- 3. These embody the shifts in technology discussed above. The overall manganese recovery rate increases from 39 to 49 percent.

Outlook for Manganese Use in the Steel Industry The expected impacts of steel product and processing trends on the manganese use pattern in 2000 are outlined in table 6-4. High and low cases are included in the table to illustrate the effects of different product mixes and various schedules of investment in new equipment.

Photo credtt Amertcan Iron and Steel lnstttute A 12-percent net reduction in the average Continuous casting of steel is one of a variety of manganese content of steel (from 13.8 to 12.2 improved steelmaking technologies pounds per ton) is expected to accompany the that conserve manganese contrasting shifts towards the greater use of high-manganese products and the increased at- From the manganese standpoint, increased tention to trimming. Trends in steelmaking yield means that less home scrap must be recy- technology are expected to cut average man- cled through processes where there are ir- ganese consumption losses from 21.8 to 12,6 recoverable losses. In 1982, about 29 percent pounds per ton of steel, a reduction of 42 per- of domestic steel was continuously cast. This cent. In addition, these technology changes in- rose to about 36 percent in the first half of 1984, crease the role of purchased ferrous scrap and is likely to increase to 70 percent by 2000. (available domestically) as a source of man- Manganese losses are not a major problem at ganese. the casting stage because there is very little migration of manganese to the waste products. Most importantly, these product and proc- — — ess trends decrease the per-ton-of-steel require- can be quite poor, even as low as 70 percent. The yields for ment for manganese in the form of ferroalloys rimmed products are substantially better. On an industrywide and manganese ore by 47 percent, from 17.8 basis, the average yield of ingot casting operations is estimated to be approximately 87 percent. Continuous casting, the more to about 9.5 pounds. Depending on the prod- modern and more desirable process, has a yield of approximately uct mix and the rate of adoption of the proc- 96 percent. ess improvements, the requirement could be 238 Ž Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

Table 6-3.—Parameters Affecting Manganese Retention in the Steelmaking Process

Current (1982) Expected 2000 Manganese Manganese Yield rate recovery factor Yield rate recovery factor (percent) a (percent) b (percent) a (percent) b Ironmaking (blast furnace) ...... 100 75 100 75 Steelmaking (BOF and EAF)...... 85 26 90 42 Ladle and secondary refiningc ...... 100 87 100 95 Casting and finishing ...... 75 75 85 85 ayleld ~at~ = tlbs of iron in primary Output product) + (Ibs Of iron in inPut materials), bRecoveW factor = (Ibs of manganese in primary output product) + (Ibs of man9anese in inPut materials). CRecoveV factors for ladle and seconda~ refining are based on Ir)() percent recovey of manganese in molten steel combined with 82 percent (current) and W pOrCent (2000) recovery of the manganese in ferroalloy additions. SOURCE: Office of Technology Assessment; and G R. St Pierre, et al , Use of Manganese in Sfee/making and Sfee/ Products and Trends in the Use of A4arrganese as an A//eying E/emerrt in Stee/s, OTA contractor report, February 1983

Table 6-4.—Current and Projected Manganese Consumption in U.S. Steel Production (all figures in pounds of manganese per ton of steel product, except where noted)

Current Projected, Year-2000 (1982) Expected Low High Total manganese use (excluding home scrap) ...... 35.6 24.8 20.6 30.4 outputs: Retained in steel products ...... 13.8 12.2 11.2 13.4 Losses (slag, dust, waste) ...... 21.8 12,6 9.4 17,0 Inputs: Manganese ore...... 1.9 1.2 1.0 1.5 Manganese ferroalloys ...... 15.9 8.3 5.5 12.2 Iron ore and sinter...... 12.9 8.5 7.1 10.1 Purchased ferrous scrap...... 5.0 6.8 6.9 6.6 Overall manganese recovery rate (ignoring home scrap) (percent)...... 39 49 54 44 Assumptions: Manganese content of steel (percent) ...... 0.69 0.61 0.56 0.67 Percentage of molten steel produced in EAF processes (percent) ...... 28 43 48 38 Manganese recovery rates and yield rates: Ironmaking: Recovery (percent) ...... 75 75 75 75 Yield (percent) ...... 100 100 100 100 Steelmaking: Recovery (percent) ...... 26 42 50 34 Yield (percent) ...... 85 90 93 87 Ladle and secondary refining: Recovery (percent) ...... 87 95 98 90 Yield (percent) ...... 100 100 100 100 Casting and finishing: Recovery (percent) ...... 75 85 90 80 Yield (percent) ...... 75 85 90 80 SOURCE Office of Technoloav Assessment: and G R. St. Pierre, et al., Use of Manganese in Steelmaking and Steel Products and Trends in fhe Use of Manganese asan A//eying E/efient in Stee/s, OTA contractor report, February 1983 - as low as 6.5 pounds per ton or as high as 13.7 United States, accounting for over 30 percent pounds per ton. of all PGM consumption. Platinum, palladium, and, since 1981, rhodium are the active ingre- Automotive Catalysts clients used in converters to control hydrocarbon (HC), carbon monoxide (CO), and oxides

Since 1975, the catalytic converter (now used of nitrogen (NOX) emission levels. In addition, on most cars to control air pollution) has be- about 10,000 tons of chromium are used annu- come the single largest use for PGM in the ally in the stainless steel shell of the catalytic Ch. 6—Conservation of Strategic Materials . 239 converter—about 1.5 percent of U.S. chromium tionwide basis) will comprise an increasing consumption, and 3 percent of chromium con- proportion of scrapped vehicles. sumption in stainless and alloy steels. Figure 6-5, based on projections prepared for As a result of nearly a decade of using cata- OTA by Sierra Research and Energy and Envi- lytic converters, a very large “above-the-ground ronmental Analysis, Inc., compares the maxi- mine” of PGM has accumulated in the Nation’s mum theoretical potential for catalyst recycling automotive fleet-some portion of which can from scrapped cars with projected PGM de- be retrieved each year through collection and mand for new vehicles through 1995.31 As recycling of converters from scrapped cars. As shown, the theoretical potential for recycling the fleet of converter-equipped cars ages, the will grow from about 115,000 troy ounces in inventory of PGM available from scrapped cars 1983 to over 800,000 troy ounces in 1995. As- will grow very rapidly through the 1980s and suming a 50 to 60 percent recovery rate, cata- into the 1990s. If effective retrieval and recy- lytic converter recycling could add 400,000 to cling of catalytic converters from these scrapped 500,000 troy ounces annually to domestic PGM cars occurs, U.S. PGM imports can be reduced supplies by the mid-1990s. This compares with appreciably below what they would be other- new vehicle demand of 770,000 troy ounces in wise, 1983, which is projected to grow to 1.4 million troy ounces in 1995. Less economic incentive The current level of PGM recovery from cata- exists to recycle chromium values from the lytic converters is low, in part because con- stainless steel shell of catalytic converters. verter-equipped cars are only now appearing at scrapyards in large numbers. This may change in the near future: the average life of Slsierra Research and Energy and Environment Analysis, Inc., a car is about 9 to 10 years, so post-1975 model Critical Metal Consumption in Automotive Catalysts, Trends and Alternatives, report prepared for OTA, December 1983, Much cars (the first year in which production model of the analysis and data in this section are derived from this cars were equipped with a converter on a na- report.

Figure 6-5.— PGM Demand by Vehicle Category

Heavy trucks and buses

— — —

~ ,,

I II \ ,,1 II I I

I I I I I I ‘1’ ; I

I I ‘1~’l I ~~• , II J I I 75 76 77 90 91 92 93 94 Model year

SOURCE: Sierra Research 240 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

However, if the above recovery rates are as- Structure of the Recycling Industry sumed, 5,000 to 6,000 tons of chromium could Among the types of firms that have an inter- be provided annually. est in the growing market in PGM recycling It should be noted that considerable uncer- are primary and secondary PGM producers, tainty surrounds the projections in figure 6-5— manufacturers of emission control devices, especially those related to PGM requirements scrap processors and dealers, automotive dis- for new vehicles. The projections for new ve- mantles, muffler shops, collectors and distrib- hicle PGM requirements are for the total U.S. utors of used automotive parts, and decan- market for vehicles, without assumption about ners—a new specialized business that has aris- prospective import levels. The projected de- en around the catalytic converter. There are no mand is based on medium growth assumptions major technological barriers to recycling of ei- about vehicle sales. The projections also reflect ther PGM or chromium values from catalytic anticipated new emission control standards ex- converters, and the number of firms involved pected to be applied to vehicles in the 1985-90 in catalyst collection networks is expected to period. Changes in the timing and nature of increase gradually as the market continues to these standards would change the projections. grow. In addition, the industry appears capa- Readers are referred to chapter 3 for further ble of responding quickly to price increases, discussion of the projected growth in PGM use so that recycling could be greatly expanded if for vehicle emission control. there were a supply disruption. Somewhat less uncertainty surrounds the The industrial refining capacity needed to projections of PGM potentially available for recycle PGM from automotive catalysts taken recycling through 1995. Cars already on the from scrapped cars is already in place. Major road will constitute the great majority of ve- domestic PGM refining facilities operated by hicles scrapped during the projection period. Gemini Industries and Johnson Matthey are Actual recycling levels will be considerably available for converter recycling. These facil- lower than the theoretical potential, due to ities are able to recover PGM values both from losses of PGM while cars are in service, and new catalysts rejected by automakers and from at each of the several steps entailed in recy- scrapped converters. Domestic scrap proces- cling. Estimates of PGM losses from catalytic sors are also able to recycle the stainless steel converters while cars are in service range from shell of the catalytic converter as a scrap feed. under to well over 10 percent, and this is not Steps entailed in recycling spent catalysts are reflected in figure 6-5. According to the Au- described in box 6-C. tomotive Dismantles and Recyclers Associa- Institutional factors could impede recycling tion (ADRA), only 70 to 80 percent of the 10 levels, however. Three categories of catalytic million cars that are “detitled” in a normal converters are potential sources of PGM for scrappage year (1979 was the last such year) recycling: unused catalysts that fail to meet actually reach dismantling yards where the product specifications, rejected and damaged converter can be removed for recycling. More- catalysts from operational vehicles, and spent over, not all dismantles remove the converter catalysts from scrapped vehicles. Of these, the from the car before it is compacted into a bale last category represents the largest future sup- or shredded. Some PGM shipped to a refiner ply of PGM, but also presents the greatest col- (perhaps 10 percent) is lost in refining. Hence lection difficulties. Reasons for this include potential addition of PGM to U.S. supplies fluctuating PGM prices, the fragmentation of from catalytic converter recycling probably the automotive dismantling industry, and a will only be 50 to 60 percent of the levels shown lack of effective linkages between refiners and in figure 6-5, Actual levels or recycling will de- dismantles. pend on economic incentives and the effectiveness of the collection networks that are estab- The availability of automobile catalysts for lished. recycling is affected by several factors. Some Ch. 6—Conservation of Strategic Materials ● 241

Box 6-C.—How Catalytic Converters Are Recycled With the advent of the catalytic converter, a new industry has evolved to recover PGM values from scrapped automobile catalysts. From a technical standpoint, there are few barriers to refining PGM from spent catalysts. In the mid- and late 1970s, facilities were set up to recycle unused catalysts that failed to meet product specifications. This gave refiners the experience needed to take advantage of the far greater amount of PGM that can be recovered from scrapped cars. How- ever, the business of organizing effective collection systems has proven surprisingly complex. Part of the reason for this is that catalytic converters are not uniform products whose value can be easily identified. In 1982 model cars, for example, there is a 10-to-l range in PGM content among different converter models—().33 troy ounces on heavily loaded converters down to 0.03 troy ounces on lightly loaded converters. (This wide range in catalyst loadings is probably not a measure of the efficiency of the converter in reducing emissions; instead the heavily loaded catalysts are probably installed in car models with engines that produce higher than average emission levels prior to catalytic treatment.) Many of the converters, especially on older model cars, have catalyst pellets (some of which maybe lost in the course of vehicle operation), while others are monolithic, with the catalyst deposited on a secure substrate. Chromium content in the stainless steel shell of converters also varies from 1.5 to 3 pounds. Finally, early model converters contained just platinum and palladium, but more recent “three-way converters” contain rhodium as well. Before lots of spent catalysts actually arrive at a refiner for reprocessing, several separate firms— including automotive dismantles, collectors, decanners, and scrap processors—can be involved. Some of these firms specialize in collection of certain types of converters and do not purchase other types. Some work under an arrangement with refiners. Others are independent. Preliminary sorting is done by the automotive dismantle after the converter is removed from the car by torching or cutting or, in the case of larger shredding operations, popped off with a forklift. Some converter containers contain little or no catalyst. Spent catalysts commonly contain at least some lead, which is particularly undesirable to refiners, and moisture, which can also affect chemical analyses and reprocess smelting. If the scrapped converter is sold to a collector, it may be visually inspected by the collector for catalyst content. However, the dismantle may choose not to sell the converter to a collector and may instead stockpile it, waiting for a price increase, or keep it for sale to retail customers. The decanner (who maybe the collector or the the auto dismantle) removes the catalyst substrate from the stainless steel container. After it has been removed, the catalyst is placed in drums to prevent further moisture accumulation, and is sold to a refiner. The stainless steel shell of the converter may be sold to a scrap processor, some of whom also may serve as collectors or decanners. Both the quality and quantity of the catalyst play major roles in determining the price paid to decanners by refiners. Some require a minimum shipment of 3,000 pounds of catalyst substrate. Bonuses may be paid for shipments that exceed average PGM content, while penalties may be charged for below-average shipments. A partial payment for the catalyst maybe paid upon receipt, with the balance reserved until actual assay, often 6 to 10 weeks later. Once the spent catalysts are accepted by the refinery, several commercialized processes can be used to recover the PGM. Two major domestic refiners—Gemini and Johnson Matthey--use proprietary hydrometallurgical processes to separate the substrate from the PGM through an acid or alkaline leach. Final removal of the PGM from the resulting leach liquor or sludge is complex, involving as many as 18 separate steps, but can recover more than 90 percent or more of the PGM. Scrapped catalysts can also be run through copper or nickel pyrometallurgical refining circuits to recover about 90 percent of the PGM. This approach was taken by Inco, a large Canadian nickel and copper producer, in 1980 and 1981, when PGM prices were high, but has been subsequently discontinued. In addition to recycling PGM, interest is growing in the possibility of “regenerating” spent catalysts. This would involve leaching out lead and other impurities and washing additional PGMs as required, while keeping the substrate and shell intact. 242 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

cars are simply abandoned; some are taken have regular truck routes to purchase con- directly to a scrap processor for baling or verters from dismantles and, in some cases, shredding, where the value of the PGM (and from shredding yards. chromium in the converter shell) is lost; others Decanners purchase large lots of whole con- are exported. As a result, about 20 to 30 per- verters, and separate the catalyst’s substrate cent of all cars are never taken to a dismantle. from the housing or shell, usually by shearing Even those cars that reach dismantling yards the canister in half. The pellets and honey- will not necessarily have their converter re- combs are packed separately in 55 gallon moved. According to the ADRA, the majority drums. Owing to the low nickel content and of automotive dismantling firms have less than accumulated impurities, the 409 stainless steel 10 employees. With a 1983-84 scrap price of used in the converter shell has a low market only about $5 to $7 per converter, not all dis- value ($1 10 per ton in late 1983). Nevertheless, mantles feel it is worth their employees’ time the shell represents an additional source of to remove the converters, while others maybe value to the decanner. stockpiling the catalysts until prices rise. A The quality of catalyst material sold to re- 1982 survey of some ADRA members and some finers, as well as the volume, plays a major role unaffiliated dismantles by Arthur D. Little, in determining the price paid to decanners. Inc., found that 12 percent of those firms re- Decanners are cautioned not to include con- sponding to the survey leave the majority of 32 taminated units. Pure white catalyst substrates converters on the car. However, ADRA mem- indicate burnout and loss of the PGM coating, bers and other respondents may not be repre- Catalysts coated with lead and oil are also un- sentative of the industry as a whole. Small desirable in the refining process. firms that lack the resources to participate in the trade association may be more likely to Auto dismantles would prefer to have more leave converters on cars. than one purchaser (collector or core buyer) for used converters to ensure the best price and Providing refineries with a steady supply of most reliable pickup, while refiners prefer to scrapped converters has also been a problem. purchase large quantities of catalysts from one The auto dismantling industry is highly decen- collector. During periods of low platinum tralized, having 11,000 separate firms, accord- prices, both dismantles and collectors may ing to ADRA, while only a few large firms are stockpile catalysts, waiting for prices to rise. involved in refining the catalyst. As more ac- In the long term, many of the problems appar- tors have become involved, intermediary firms ent in the early stages of the industry’s evolu- specializing in collection and decanning have tion may be overcome, due to the increased arisen either independently or in affiliation numbers of scrapped cars equipped with con- with refiners. Because refiners are trying to verters available for recycling and possible in- assemble economic volumes for recovery, a creases in PGM prices. premium is paid for larger volumes of material. When a sufficient number of converters USED AND RECONDITIONED CATALYTIC CONVERTERS has been collected by a dismantle they are sold to collectors and/or decanners. Usually a min- A recent development in the automotive dis- imum of 50 to 100 converters is required to deal mantling industry has been the emergence of with a large collector. a market for secondhand catalytic converters bought as replacement parts. The exact mag- Collectors accumulate small lots of whole nitude of this market is not known, but a re- converters within a particular region and sell cent survey in California found that about larger lots at higher prices to decanners. Some 80,000 secondhand converters were used an- collectors are also decanners. Often, collectors nually in the State.33 Most of these secondhand sZAutomotive Dismant]ers and Recyclers Association, profile: Automotive Dismantling Industry, published in cooperation with ttMobile Source Control Division, Used Catalytic Converter Sur- Arthur D. Little, Inc. (Washington, DC: Automotive Dismantles vey (El Monte, CA: State of California Air Resources Board, July and Recyclers Association, 1983), p. 12, 1983), memo. Ch. 6—Conservation of Strategic Materials ● 243 — converters were obtained from parts distrib- ers. However, methods to test used catalytic utors who purchased them from auto salvage converters are under development by a major dealers at a somewhat higher price (averaging muffler firm, using the voluntary self-certifi- $7 per unit) than is typically paid by refiners. cation regulations. The entire issue associated Auto dismantles also sell converters directly with use of secondhand converters is highly to retail customers as used parts, often at a complex, and is likely to be an increasingly im- price of $45 to $700 portant concern in both emission control programs and recycling efforts in the years to The apparently growing market for second- come hand converters concerns some refiners since r it adds an additional layer of competition in their efforts to secure a supply of catalysts for ALTERNATIVES TO PGM USE IN THE CATALYTIC CONVERTER recycling. The competition is great because this At present, PGM use in the catalytic con- market is an important source of income to dis- verter is the most effective means for meeting mantles, who typically obtain three-fourths of emissions control standards under the Federal their income from sales of used parts, while Clean Air Act. Near-term (before 1995) alter- scrap sales form only a small part of their natives to PGM use in the catalytic converter business. are not promising, Most currently developed alternatives would entail major loss of fuel An emerging issue associated with the appar- economy and/or a need to relax automotive ently growing market for secondhand catalytic emissions standards. These problems could be converters concerns possible reuse of defective overcome, given several years lead time, but catalysts in cars. While secondhand converters there is no persuasive reason at this time for are substantially cheaper to the motorist than auto makers to pursue these alternatives. new replacement converters, which range in price from $170 to $320, many secondhand Increased use of diesel engines could also re- converters are defective, and will therefore ad- duce the need for PGM catalysts. However, versely affect air quality if they are installed while diesels do not currently require con- in cars. verters to reduce carbon monoxide and hydro- carbons, they do produce substantial amounts It is not possible to determine whether a used of particulate. A more stringent particulate na- converter is operating properly without emis- tional emission standard for diesel-fired light- sions inspection and testing. A gradual deterio- duty vehicles (cars and light trucks) is expected ration in catalyst efficiency occurs over time, to take effect in 1987. Some manufacturers are and most automakers guarantee the converter expected to employ a platinum-catalyzed trap for only 50,000 miles. In addition, leaded gas, oxidizer to meet the standard. The other most which destroys the emissions control capabil- likely alternative–a trapping system which ity and the platinum metal values in the cata- uses onboard dispersing of fuel additives— lysts, is often used in converter-equipped cars would not entail PGM use. A particulate emis- and trucks. Occasionally this happens inad- sions standard for heavy duty vehicles, if vertently, if fuel supplies in a filling station be- adopted as expected in 1990, most likely will come contaminated or are switched. More require PGM catalyzed trap oxidizers, because often, motorists deliberately and illegally mis- additives are unlikely to prove practical over fuel because of lower price and perceived im- the long lifetime of these engines. (In the pro- proved performance of leaded gasoline. jections shown in figure 6-5, it was assumed Currently, overall procedures for testing and that half of the light duty diesel vehicles will certifying secondhand catalytic converters are use a PGM particulate trap when the standards not in place. Although the U.S. Environmental take effect—1986 in California and 1987 nation- Protection Agency has issued voluntary after- wide—but that all California light trucks and market part self-certification regulations, these diesels would use particulate traps to meet the relate primarily to new replacement convert- more stringent State standard expected in 1989. 244 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

It was also assumed that all heavy duty diesel tively higher levels of aldehyde emissions than engines will require PGM particulate traps to for gasoline-powered cars. Aldehyde emissions meet the anticipated 1990 national standard.) can be reduced by catalytic after treatment. Al- dehydes are not covered in current emission Even in the longer term (beyond 1995), PGM standards, so new standards could be required use for emission control is likely to continue, if methanol is widely used. although use of substitute materials, more efficient loading of PGM, and basic changes in the overall design of automobiles, might reduce STRATEGIES FOR EMISSION CONTROL IN A SUPPLY DISRUPTION per vehicle requirements. At present, the major auto makers foresee no major change in PGM recovered from catalytic converters total loadings of PGMs used in converters, al- can be reprocessed into virtually any form though ratios of platinum, palladium, and needed by industry. In a major supply disrup- rhodium may change, Alternative base metal tion, automotive catalyst production could be catalysts are not likely to substitute for PGM temporarily curtailed, thus permitting PGM catalysts, unless breakthroughs overcome ma- that is recovered from scrapped catalytic con- jor technical problems that make them less ef- verters to be diverted to more critical economic fective in emissions control. and military uses. PGM use in catalytic converters is critical to controlling air pollution, Downsizing of engines to meet federally but is not otherwise a critical component of the mandated fuel efficiency standards, coupled U.S. economy. In a national emergency, a tem- with improved catalyst formulations, may re- porary discontinuance of PGM use in the man- duce the amount of PGM needed to treat emis- ufacture of new catalytic converters, together sions effectively. With long-term increases in with intensified recycling of PGM from scrapped gasoline prices, downsizing may occur regard- cars, would insulate the most critical economic less of whether Federal standards are extended uses from the effects of a supply disruption. beyond 1987. Alternative trends in downsizing to the year 2000 are discussed in detail in the As a result, U.S. ability to contend with a sup- 1982 OTA assessment, Increased Automobile ply cut-off has theoretically improved, owing Fuel Efficiency and Synthetic Fuels.34 to reliance on PGMs for emission control, even though PGM imports have increased because Considerable speculation exists about possi- of it. Use of such an emergency strategy, how- ble future use of alternative automotive engines ever, would have major impacts on the emis- that are radically different from those used sions control program established under the today, such as the automotive gas turbine Federal Clean Air Act. (AGT) and stirling engines. These engines would have very low emissions levels, thus re- Alternative strategies for auto makers and ducing emission treatment needs. As is dis- Government officials for dealing with a near- cussed in chapter 7, technical problems (in- term curtailment of PGM supplies were ad- cluding development of reliable ceramic parts) dressed in the report prepared for OTA by make it unlikely that the AGT will be widely Sierra Research and Energy and Environmental used until after the year 2000, if then. Alterna- Analysis, Inc. This analysis demonstrates that tive fuels, such as methanol, are also under practical alternatives to the catalytic converter consideration as a principal fuel for some au- are not currently available that could meet both tomobiles, Emissions from cars retrofitted to current emissions and fuel economy standards. burn methanol do not meet current standards In a near-term supply disruption in which no without catalytic treatment. Moreover, emis- PGM was available for emissions control, auto sion tests on methanol-burning cars show rela- makers would probably have little alternative except to build cars without catalytic convert- aq~ncreased Automobile Fuel Efficiency and Synthetic Fuels ers—although this could be accompanied with (Washington, DC: U.S. Congress, Office of Technology Assess- a requirement for retrofit when the shortage ment, September 1982), p, 17. ended. .—

Ch. 6—Conservation of Strategic Materials ● 245

In a supply disruption lasting 1 to 3 years, undertaken to determine under what circum- recalibration of new vehicles for lower emis- stances, and in what way, allocation of PGM sions without catalyst use would be feasible. would occur in a supply emergency. Such plan- This could entail programming of fuel meter- ning could also be used to identify emission ing systems for leaner operation to reduce control strategies available to auto makers in hydrocarbon and carbon monoxide emissions. the event that supplies of PGM are not avail- In addition, retarding spark advance to further able for manufacture of catalytic converters,

reduce HC and NOX emissions could be undertaken. These changes would not entail substan- Other Conservation Opportunities tial design changes or development costs. Al- though some fuel economy penalties would be Petroleum and Chemical Catalysts incurred, average new car emission levels ap- Both PGMs and cobalt are extensively used proximately equal to 1977-79 standards could in the petroleum and chemical industries as be achieved in this way. Since computer con- catalysts. PGM use in these catalysts is already trolled systems are now used in many new ve- highly efficient so that only limited improve- hicles, retrofitting after the disruption would ments in current patterns of use can be made be comparatively simple, entailing replacement in the foreseeable future. The PGM contained of a computer chip or (more likely) the entire in industrial catalysts is generally retained in electronic control unit of the vehicle. ownership by the user firm and is refined or With an intensive program of research and regenerated on a toll basis by a specialized development (R&D), according to the analysis, recycling firm. This system is highly efficient: alternative emission control systems that do Of the 235,000 troy ounces of new PGMs that not use PGM but would approach current emis- were purchased for petroleum and chemical sions and fuel economy standards could prob- industry catalyst applications in 1982, only ably be developed. However, this would re- about 10 percent was to make up metal losses quire at least 5 years and is unlikely to be during processing and toll refining; the rest undertaken by auto makers simply out of con- was to meet new production needs. The only cern about future supply disruptions. catalysts that are not now recycled contain less than 0.05 percent PGMs. Recovery of PGM Development of such technology could be values from these catalysts is technically fea- necessary in the event of a “worst case” supply sible, but the refining costs (including trans- disruption of several years’ duration in which portation costs to and from the refinery) exceed national emergency requirements could not be the contained metal value. satisfied from recycled PGM alone. Under such dire circumstances, pressures would mount to In the case of cobalt-containing catalysts, recover PGM from operating vehicles. however, major opportunities exist to increase recycling levels, particularly in the case of the The total current in-service vehicle fleet con- cobalt contained in spent petroleum refining tains roughly twice as much PGM as was con- catalysts. Although some other metals are now sumed for all uses domestically in 1982, This reclaimed from these spent catalysts, cobalt will more than double by 1995—to a total of 9 values are not. million troy ounces of PGM, some portion of which could be recovered in a dire emergency Overall national trends in cobalt catalyst use through Government programs aimed at re- (exclusive of paint dryers) were extensively analyzed for OTA by the Inco Research & De- moving some catalytic converters from the in- 35 service automotive fleet. velopment Center, Inc., and are summarized

Ultimately, both the objectives of national 35F. j. Hennion, 1. J. deBarbadiIlo, j. H. Weber, and G. Alex preparedness in the event of a supply emer- Mills, Use of Critica] Materials in Catalysts for the Petroleum and Chemical Industries, Cobcdt and Platinum Group MetaLs (prepared gency and national air quality objectives could for OTA by Inco Research & Development Center, Inc.]. Much best be served if contingency planning were of the information in this section is derived from this report. 246 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability in table 6-5. This information, obtained from Inco estimate is consistent with a National estimates provided by industrial sources in late Materials Advisory Board finding that between 1983, is believed to be the most up-to-date and 200,000 to 300,000 pounds of cobalt were con- detailed information about these trends that is sumed in this use in 1982. publicly available. Expanded use of hydroprocessing catalysts As shown in table 6-5, three major processes in the petroleum industry is likely in the years dominate cobalt catalyst consumption: petro- to come. However, growth in demand will leum hydroprocessing, used to remove con- probably be less than was anticipated in the taminants from sour and heavy crude oil; al- mid and late 1970s, when refineries were rap- cohol production through hydroformulation; idly installing hydroprocessing capacity to and production of terepthalic acids and deriva- process heavy source crude oils obtained from tives, used to produce polyester fibers and non-OPEC sources. The combined effects of films. Cobalt is also used in catalysts to pro- energy conservation and the 1981-82 recession duce synthetic fibers, solvents, pharmaceuti- have resulted in scaling back projected require- cals, and industrial chemicals. ments. While hydroprocessing capacity can be expected to grow appreciably from the de- Significant recycling of the cobalt used in pressed 1982 levels, “fresh” cobalt require- chemical catalysts is occurring. According to ments will not necessarily increase proportion- Inco, about 1.5 million pounds of cobalt were ately. According to the National Materials consumed in both chemical and petroleum cata- Advisory Board, future cobalt make up require- lysts in 1982. Of this, 1.1 million pounds—about ments could be in the range of 200,000 to 72 percent—was contributed through recy- 400,000 pounds a year, assuming that effective cling. Fresh cobalt needed to makeup the dif- recycling takes place. Substitution of nickel- ference was only about 426,000 pounds. This molybdenum catalysts could reduce future re- is less than some other estimates which may quirements by another 100,000 pounds a year, underestimate the extent of recycling by the according to NMAB.36 chemical industry. In current practice, hydroprocessing cata- However, cobalt from spent petroleum hy- lysts may be regenerated one or more times in droprocessing catalysts is not now recycled. the course of their life cycle (2 to 3 years). At Since none is recovered, all of the cobalt con- some point, however, the catalyst becomes so sumed in hydroprocessing was fresh cobalt. contaminated that subsequent regeneration is Inco estimated that about 270,000 pounds of impossible. These spent (unregenerated) cata- cobalt was consumed in hydroprocessing in lysts may be stored temporarily on site by 1982. This is less than some estimates for prior refiners, landfilled, or sent to a processor for years, due to lower refinery utilization. The recovery of non-cobalt metal values or for ex- Table 6-5.—Cobalt Consumption and port, The typical spent catalyst will contain Recycling in Catalysts, 1982 about 8 percent molybdenum, 1.5 percent cobalt, 0.5 to 1.5 percent nickel, 1 to 6 percent Cobalt New cobalt vanadium, 10 to 15 percent carbon, 10 percent consumption for makeup (thousand Percent (thousand sulfur, 0,2 percent phosphorus, and the bal- Process pounds) recycled pounds) ance, alumina. 270 Hydroformulation . . 700 90 70 During the late 1970s, when molybdenum Terephthalic acid 500 90 50 and cobalt prices were very high, considerable Organic acid ...... 35 0 35 effort was made to recover metal values from Alkyl amines ...... 30 95 1.5 these spent catalysts. However, most of these Total ...... 1,535 72 426.5 SOURCE” F. J Hennion, J. J. de Barbadillo, J. H. Weber, and G. Alex Mills, Use efforts were discontinued as prices fell. By of Critical Metals in Catalysts for the Petroleum and Chernica/ /n- dustries (Cobalt and Platinum Group Metals), 1983. Report prepared Wobalt Conservation Through Technological Alternatives, op. for OTA by the Inco Research & Development Center, Inc., December 1983. cit., p. 119. Ch. 6—Conservation of Strategic Materials . 247

1982, Gulf Chemical & Metallurgical Co., of process to recover nickel, cobalt, and alumina Freeport, TX, was believed to be the only do- values from this residue, but economic re- mestic firm recovering metal values from spent covery of these metal values at current prices hydroprocessing catalysts. Gulf C&M, which is not feasible. Because Gulf C&M reprocesses has been in the catalyst recycling business for spent catalysts from both foreign and domes- over two decades, uses a combination of pyro- tic sources, more cobalt residues are accumu- and hydro-metallurgical techniques to recover lated at the facility each year than are gener- molybdenum and vanadium values from the ated from domestic hydroprocessing activities spent catalysts but does not currently recover alone. cobalt, nickel, or other metals. At least two other domestic firms–Hall From years of reprocessing, some 100,000 Chemical of Wickliffe, OH, and CRI Metals of tons of processing residues are reported to have Baltimore, MD—have announced plans to con- accumulated at the Gulf C&M facility, As much struct facilities to reclaim cobalt and other met- as 7 million to 8 million pounds of cobalt and als from spent hydroprocessing catalysts. Hall nickel may be present in this residue, some por- Chemical, which currently produces 1 million tion of which could be recovered with adop- pounds of cobalt salts annually, is construct- tion of adequate reprocessing technology. The ing a facility (at Arab, AL) said to be able to company has reportedly developed a pilot-scale reclaim individual components of spent cata-

Molybdenum and vanadium are recovered from petroleum refinery catalysts at this plant in Texas. Several million pounds of potentially recoverable nickel and cobalt are left in the waste and slag that is stored in containment ponds surrounding the plant 248 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability lysts, including cobalt, nickel, molybdenum, Stainless Steel and Steel Process Wastes vanadium, sulfur, and alumina. Hall intends Chromium used in stainless steelmaking is to purchase spent catalysts from generators obtained from ferrochromium and from scrap. around the world. The scrap charge includes home scrap gathered CRI Metals, a unit of Catalyst Recovery Inc., within the plant during various stages of the has announced plans to establish a hydroproc- steelmaking process, prompt scrap obtained essing catalyst reclamation facility in the from mills and fabricators, and obsolete scrap South. The CRI process has been evaluated from postconsumer products and salvage. With through pilot plant trials, but CRI has yet to the exception of steelmaking wastes, home commence construction, owing to depressed scrap is generally recycled with a high degree metal prices. Like the Hall process, the CRI of efficiency. Stainless steel producers rou- plan is to recover several contained metals— tinely recycle most of the solid scrap generated cobalt, nickel, vanadium and alumina—from in making stainless steel and in forming pri- the spent catalysts for reuse by the catalyst in- mary products, such as sheets, bars, and wires. dustry. CRI apparently plans the recycling ven- An estimated 35 to 45 percent of stainless steel ture to complement its current catalyst regen- production is derived from such home scrap, eration activities. but since the home scrap cycle is within the mill, it is not considered to be a secondary sup- Although the industrial capability to reclaim ply source. cobalt from spent catalysts may soon be in place, prospects for improved recovery will de- Owing to adoption of the AOD process, pend on an increase in cobalt prices. Sizable which cut losses of chromium to slag by more quantities of spent catalysts may continue to than half, purchased scrap is an increasingly be landfilled, with cobalt values effectively lost important source of chromium in stainless steel in the interim. From the refinery’s point of products. Prompt industrial scrap and obsolete view the fastest method of disposal of spent scrap together form the purchased component catalysts is preferred. At current prices, this of scrap supplies. An estimated one-fourth of often means paying the freight to ship spent the chromium needed to make stainless steel and heat-resisting steels in the 1977-81 period catalysts to reprocessors, storing the catalyst 37 at a temporary site off the premises, or land- came from purchased scrap. Chromium is filling. While the technology exists to reclaim present in other alloy steels and in cast iron landfills, the high cost of such activities means scrap, but in low concentrations that do not that recovery of cobalt values from landfills is favor recycling for chromium content. These unlikely. materials are usually recycled for their iron content, and the value of the alloying metals An important issue associated with both is lost (this practice is referred to as “down- recycling or landfilling of spent hydroprocess- grading”). ing catalysts concerns hazardous waste dis- More chromium may be lost each year to posal requirements. Although spent hydro- downgrading or to failure to recover obsolete processing catalysts are not a listed hazardous products than is recovered from purchased waste, some spent catalysts may contain trace scrap. According to estimates prepared for the amounts of lead, arsenic, and other compounds Bureau of Mines,38 about 135,000 tons of stain- that are toxic. For hazardous wastes, refiners must decide within 90 days about whether the STU,S, Department of Commerce, Critical Materials Require- ment of the U.S. Steel Industry (Washington, DC: U.S. Govern- waste is to be landfilled in an approved site or ment Printing Office, 1983), p. 32. recycled. With current depressed metal prices, Snchar]es L. Kusik, et a]., Availability of Critica] Scrap Metak there is little economic incentive to recycle Containing Chromium in the United States: Wrought Stainless Steel and Heat Resisting Alloys, U.S. Department of the Interior, these spent catalysts, so that many refiners may Bureau of Mines Information Circular 8822 (Washington, DC: choose to landfill them. U.S. Government Printing Office, 1980). Ch. 6—Conservation of Strategic Materials • 249

less steel scrap containing about 24,000 tons scrapped automobiles, but this amounted to of chromium were included in the carbon steel only about 30 to 40 percent of the potential scrap used in nonstainless steelmaking in 1977. quantities of chromium that could have been Another 38,000 tons of chromium was lost in recovered from scrapped cars, Baling, which obsolete scrap that was not recovered. (The is used for 10 to 20 percent of scrapped cars, range of uncertainty of these estimates is high prevents recovery of most stainless steel except owing to a variety of factors, including impre- easy-to-remove items, such as hubcaps, Shred- cise export and import data and long lifetimes ding of vehicles permits better recovery since of stainless steel products,) Of course, not all nonmagnetic stainless steel can be separated of the stainless steel that was downgraded from the carbon steel scrap and sold separately, could have been recovered, since it may have However, magnetic stainless steel, including been present only in small amounts or have the steel used for converter shells, is not eas- been inseparable from other materials, but the ily separated. This downgrading of stainless volume of downgraded scrap makes it clear steel is not likely to be overcome because of that there are major opportunities to increase the low value of the chromium and the high the recovery of chromium from scrap. cost of identifying and separating it from other steels. Large quantities of scrap are generated when stainless steel is made into fabricated products, Prospects for improved recovery of chro- but most firms collect and separate the better mium from scrapped automobiles will be closely quality scrap for sale either to scrap collectors tied to efforts to recycle PGMs in catalytic con- or to primary producers for recycling. The verters, since the converter shells are made of comparatively low value of chromium in prompt stainless steel, The average 1976 U.S.-built car industrial scrap may slow the return of some (now approaching obsolescence) contained about scrap for recycling and lead to some down- 4.8 pounds of chromium, of which 2.6 pounds grading. The nickel-chromium stainless steels was contained in the shell of the catalytic con- (AISI 300 series) are usually recycled because verter. Since 1975, chromium used in catalytic of the high value of nickel and other alloying converters has averaged about 10,000 tons per agents, Recycling of the 400 series scrap, which year. Assuming that 70 percent of the cars that has 12 to 30 percent chromium but little nickel annually become obsolete reach dismantling or other alloying agents, is affected by the rela- yards, 7,000 tons of chromium could theoreti- tively low value of chromium. cally be recovered from converter shells alone. Recovery of obsolete stainless steel scrap is Since additional losses are likely, recovery of impeded by dispersed location, the uncertain 5,000 to 6,000 tons per year is probably the quality of materials in the scrap, and the long maximum practical level of recycling. Most lifetime (5 to 25 years or more) of stainless cars now manufactured have monolithic-type products. Only a small proportion of stainless converters (containing about 1.5 pounds of steel used in appliances, cutlery, and other con- chromium), so that per vehicle chromium re- sumer items is ever likely to be recovered from covery rates in the mid-1990s will decline com- scrap, although some may end up in munici- pared to today. At the same time, the number pal solid waste collection systems from which of cars scrapped each year may grow, hence, metals recovery is possible. Fuller recovery of the overall amount of chromium that is poten- stainless steel scrap from used automobiles, tially available for recycling will increase. machinery, and other industrial applications takes place, but seldom in excess of 60 percent. The value of chromium in the converter is low, however, and the recovery of the shell for Automobiles provide the single greatest op- recycling will depend largely on the value of portunity for reduced downgrading of obsolete the PGMs contained in the catalyst itself. Most chromium scrap. About one-third of the obso- dismantlers–even those who remove the con- lete stainless steel recycled in 1977 came from verter to collect PGM catalysts—do not segre-

38-844 0 - 85 - 9 : QL 3 250 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

gate the shell for recycling as stainless steel scrap. Instead, the shell is shredded or baled with the rest of the car. While small in relation to overall chromium demand, appreciable quantities of chromium as well as other critical metals are also lost in flue dusts, slags, sludges, and other steelmaking and chemical wastes each year. These wastes are not suitable for direct recycling because of contaminants such as lead or zinc, but the chromium and other metals from some of these wastes are increasingly recovered through special processing, According to Bureau of Mines researchers, about 17,400 tons of chromium were contained in metallurgical wastes generated in 1974 (the most recent year which comprehensive data were collected).39 Until recently, these low- grade wastes were almost entirely unrecovered. However, some firms are now commercially recovering chromium containing wastes, and several steel producers have established their own in-house waste recovery programs. A partial impetus for this has been environmental regulations restricting the disposal of solid wastes. Since 1978, Inmetco, a subsidiary of Inco, has been recovering chromium and nickel from low-grade steelmaking wastes. This facility has the capacity to process 47,000 tons of waste per year to produce 25,000 tons of pig metal containing 4,500 tons of chromium and 2,000 tons and other materials from catalysts, superalloys, of nickel. The pig metal, which is 18 percent and other products. An Inmetco subsidiary, chromium and 8 percent nickel, is suitable for Pittsburgh Pacific Processing Corp., reproc- use in AISI-type 304 stainless steel or, if it con- esses oil-contaminated scrap. tains molybdenum, AISI 316. Inmetco currently processes about 75 to 80 percent of the flue Economic processes for recovery of chro- dust, mill scale, and grinding swarf of U.S. mium and other metals from specialty steel- stainless steelmaker. The company estimates making slags have yet to be developed, Esti- that 3,100 tons of chromium was contained in mates made in the 1970s of nationwide losses wastes entering their plant in 1982, of which of chromium to slag in stainless steelmaking 2,800 tons were recovered. The Inmetco facil- vary widely—from 3,000 to 30,000 tons per ity also has the capacity to recover chromium year. The lower figure is from the previously cited 1974 estimate of total chromium losses WW. M, Dressel, L. C. George, and M. M. Fine, “Chromium in metallurgical wastes, and appears to be quite and Nickel Wastes: A Survey and Approval of Recycling Tech- low. The latter figure, based on 1965-75 data, nologies, ” Proceedings of the Fijlh Mineral Waste Symposium, Eugene Aleskin (cd.), cosponsored by the U.S. Bureau of Mines is from a study by the National Materials Advi- and the I IT Research Institute (Chicago, IL: I IT Research In- sory Board, which also projected that losses stitute, 1976), p. 269. would be reduced to about 10,000 to 15,000 Ch. 6—Conservation of Strategic Materials . 251 —— tons per year as stainless steelmaker switch into waste processing, and the value of the met- entirely to the AOD process, als can then help reduce the cost of disposal. Revised estimates do not appear to have been Several processes have been developed or are made since the NMAB study, which was pub- under development by public agencies and in- lished in 1978, but the AOD process is now dustry to recover or recycle metals from proc- used almost universally. Nonetheless, the losses essing wastes. Corning Glass reportedly has de- remain appreciable. Chromium content in veloped a closed-loop process which permits steelmaking slags analyzed by the Bureau of reuse of chromic acid etching solutions, thus Mines Rolla (MO) Research Center range be- reducing the amount of waste and reducing the tween 1 and 12 percent, with most samples in need for new chromium-bearing chemicals. the range of 6 to 7 percent. Experiments be- Another process to recover chromic acid etching conducted at the Center are aimed at up- ing solutions, developed by the Bureau of grading chromium and nickel from crushed Mines, has been demonstrated to be economi- and ground slag. Concentrations of more than cally competitive with the purchase of new 20 percent chromium have been achieved. Fu- acid, when savings of disposal costs are in- ture research will assess ways to recycle the cluded in the analysis. This process, which ex- concentrates in steelmaking furnaces.40 tends the useful life of the acid a hundred fold, results in major materials savings and also per- Over 3,000 tons of chromium were also lost mits the recovery of other metals, such as cop- annually in processing wastes from the chem- 42 per, which can be sold. ical industry, metal plating and etching shops, and leather tanning firms, according to the Electronic Scrap 1974 data mentioned previously. Recovery of the chromium in such wastes is expensive, and The key constraint in recycling of PGMs until recently wastes were generally disposed from electronic scrap is the very small amount of in municipal wastewater systems or land- of metal used in each unit. The two largest con- filled without significant preprocessing. Envi- sumers of PGMs in the electrical and electronic ronmental requirements under Subtitle C of the sector are the telecommunications industry, Resource Conservation and Recovery Act which uses them in electromechanical con- (RCRA) and the Federal Clean Water Act have tacts, and the ceramic capacitor industry. In resulted in the need to process such wastes telephone relays, palladium and platinum are prior to disposal. As a result, the opportunity found in the contact points, which are brazed to recover chromium from the waste has arisen. to base-metal alloy arms. In a single hand- dismantled relay module taken from a large Many metal finishing wastes are classified unit, the Bureau of Mines found 18 large and as hazardous wastes by the Environmental Pro- 36 small PGM contacts, weighing a little more tection Agency and are subject to the disposal than 0.06 of 1 percent of the weight of the requirements of RCRA. Pollutants, including 43 whole module. The National Association of chromium, must be reduced to acceptable Recycling Industries estimates that 1,000 tons levels before disposal in Subtitle C landfills. of telephone relay scrap are generated each Disposal fees at landfills may run on the order year. However, this scrap contains only a mi- of $25 to $50 per drum, which does not include 41 nute proportion of PGMs. costs of transportation and preprocessing. Re- covery of metal values may be incorporated aZDeborah A. spotts, Economic Evaluation af a i$fethod to Re- generate \$’aste Chromic Acid-Sulfuric Acid Etchants, U.S, De- ‘As discussed in Bureau of Mines Research 83, op. cit., p, 104. partment of Interior, Bureau of Mines Information Circu]ar 8931 41 ~’ ,s. ~nvironmenta] protection Agency, Environ mcmtal Po~- (Washington, DC: US, Government Printing Office, 1983]. Iution Control Alternatives: Sludge Handling, Dewatering and Dis- atFre~ Ambrose and B. Wr. Dumay, Jr,, ‘‘Mechanical process- posa~ Alternatives for the Metal Finishing Industry (Washington, ing of Electronic Scrap to Recover Precious Metal Bearing Con- DC: U.S. Government Printing Office, 1982), p, 1, EPA 62515- centrations, ” paper presented at the International Precious Met- 82-018. als Institute Conference, Vicksburg, VA, May 1983. 252 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

Another potential barrier to recycling of price for their scrap. Material is shipped both PGMs from electronic scrap is the fact that pal- to Europe, where such firms as SGM in Bel- ladium (which, with an average 1982 dealer gium have a long history of expertise and so- price of $100 per troy ounce is much lower in phisticated technology for precious metal refin- price than platinum or gold) predominates in ing, and to Taiwan and other Asian countries, this sector. Palladium is used in ceramic capac- where lack of raw materials and low labor costs itors and is increasingly substituted for gold make low-grade scrap more attractive. in low-voltage, low-current electrical contacts, Industry assessments of the quantity of elec- such as telephone relay contacts. Higher reli- tronic scrap exported by the United States vary. ability electronics, including those for military Total sales of PGMs to the electrical and elec- use, require greater amounts of platinum and tronic sector were 438,000 troy ounces in 1982. gold in contacts, capacitors, and other elec- By comparison, exports of all types of PGM- tronic components. bearing scrap that year were 388,437 troy Despite these potential barriers, there is a ounces.45 growing electronic scrap recycling industry in 44 Future trends in domestic recovery of PGMs the United States. An industry observer esti- from electronics are difficult to predict. Over mates that 102,000 troy ounces of platinum, or the next decade, the scrap market is expected more than the total yearly platinum purchases to increase as technological advances make by the industry, were recovered from elec- equipment obsolete. Computer manufacturers, tronic scrap in 1982. The growth in recycling concerned about possible resale of their obso- of this type of scrap is reflected in the location lete components, may crush the parts and sell of the secondary precious metals industry. them for recycling. However, whether the plat- Twenty years ago, most precious metals re- inum group metals found in this scrap are refiners and semi-refiners were clustered around covered for U.S. consumption depends on a va- the jewelry industry on the east coast. Today, riety of factors. While some of the materials many semi-refiners and refiners are located in may be exported for overseas refining, this may California’s “Silicon Valley,” Texas, and other be done on a toll-refined basis. For example, areas where the electronics industry has developed. A5u.s. Department of Interior, Bureau of Mines, Mineral industry Surveys, Platinum Quarterly, June 7, 1983, table 5, As in other sectors, PGM recovery is greatest from manufacturing scrap. Large refiners such as Johnson Matthey deal in both primary metals and scrap, supplying the electronic component industry with palladium metal, powders, and pastes, and recycling the metal from their reject components. In addition, some large electronics companies have set up their own in-house recycling processes to recapture the precious metals from both their manufacturing scrap and obsolete scrap. How- ever, the percentage of PGMs recycled from obsolete electronic scrap is generally lower. Be- cause of the high labor costs involved in manually processing electronic scrap prior to final refining, some electronics firms and scrap dealers find that foreign dealers offer the best Photo credit’ GTE Corp 44Mark Stringfel]ow, “Platinum: Its Present and Future, ” pa- Precious metal scrap produced during the manufacture per presented to the National Association of Recycling Indus- of electronic components is segregated to enhance tries, Dec. 15, 1982. recycling of gold, silver, and platinum group metals Ch. 6—Conservation of Strategic Materials ● 253 a recently opened Engelhard plant in Cinder- dustry. Overall, it appears that consumption of ford, England, will refine metal from scrapped palladium and ruthenium will increase, and components and circuitry from U.S. sources that there will be large quantities of these on a toll basis, providing an equivalent amount materials available for recycling beyond 1990. of PGMs to those sources from Engelhard’s 46 Technologies for recycling PGMs from elec- U.S. refineries. In addition, a number of Euro- tronic scrap require further development. pean firms, such as De Gussa, a German firm, While several hydrometallurgical and pyro- have begun to operate PGM recycling plants metallurgical processes are available for final in the United States. It is too early to tell wheth- refining of PGMs, preprocessing technology is er these trends will have a major impact on the not yet adequate. Currently, there are numer- amount of scrap that is exported. ous steps in the refining process, often carried As in other platinum-consuming industries, out by different companies, with each step add- the long-term potential for recycling of strate- ing to recycling costs. The initial manual dis- gic materials from electronics will depend on assembly of the most valuable components the quantities of materials used in production, from the aluminum and copper frames (e.g., The rapid evolution of the electronics indus- snipping off contacts with wire cutters) may try has led to continual improvements in effi- be done either by the electronics company or ciency of use of the precious metals. For ex- by a specialized preprocessing firm. These ample, palladium-silver alloys are increasingly firms sell some components for reuse and replacing pure palladium in electrical contacts, others for scrap to both domestic and foreign dampening both palladium use and potential businesses. future levels of palladium recycling. In addi- Semi-refiners of electronic scrap collect cir- tion, composites show promise for replacing 47 cuit board scrap after initial disassembly and contacts made entirely of PGMs. A fiber com- process it further. This may involve simply posite made of a copper matrix with embed- stripping off the plastics with chemicals, fol- ded palladium fibers and an overall palladium lowed by shredding and chopping the compo- content of 30 percent has the same electrical nents, or more complex steps such as ball mill and thermal conductivity as a palladium- crushing and pulverizing of capacitors, which copper alloy having a composition of 60 to 85 leave a “sweep” or pulp containing precious percent palladium. One of the greatest impacts metals. Other firms combine these processing on PGM use will come from the Bell System’s steps with smelting out the PGMs as crude bul- present conversion to solid-state switching, lion, which may be either sold to electronic thus reducing electromechanical switching component manufacturers or shipped to re- and platinum and palladium demand. finers. Final refining to high specifications is Despite these trends in increased efficiency generally done by one of a handful of special- of use, opposing trends are causing overall de- ized refiners using pyrometallurgical tech- mand for PGMs in electrical and electronic niques. equipment to increase. Because of its low cost, Using obsolete electronic scrap provided by palladium is increasingly being substituted for the Defense Property Disposal Service, the Bu- gold in electrical contacts and printed circuits, reau of Mines has developed a process for me- and new types of components, such as ceramic chanically upgrading electronic scrap, The capacitors, are making use of PGMs. In addi- process is made up of a series of unit operation, ruthenium, which is already used in the tions using technology already widely available large quantities of reed switches used in elec- in the recycling industry. These operations in- tronics, is finding new applications in the include shredding, eddy current separation, and —— — —. high-tension separation. The process can break 4eJudith Crown, “Engelhard Revamping Precious Scrap Set- down mixed scrap into an iron-base fraction, ups, ” American Metals Market, July 8, 1983, p. 1. 4TStockel, “composites for Electrical Contact Applications, ” an aluminum base fraction, a wire fraction, Zeitschrift fuer Werkstofj’echnik, July 1979. and a high and a low precious metal concen- 254 . Strategic Materials: Technologies to Reduce U.S. Import Vulnerability trate, greatly reducing the amount of material According to the NMAB, up to 0.5 million that must be processed for precious metal re- pounds of cobalt from obsolete products are covery and also reducing shipping and toll now recovered by tungsten carbide producers refining costs. each year. In early 1984, installed capacity to reprocess such scrap is estimated to be 36 per- The Bureau of Mines process could reduce cent of domestic consumption. Obstacles to in- costs of refining electronic scrap by replacing creased recycling of obsolete carbide scrap costly, slow, and unpredictable hand stripping include widespread geographic diffusion of with reliable automated techniques. While it products and difficulties in recovering worn can be used on mixed scrap, it is most effec- or broken parts, tive when incoming scrap is first separated into lots. For example, connector assembly plating, Tungsten carbide scraps constitute a major printed circuit cards, wiring, and other com- proportion of current tungsten recycling. GTE ponents high in precious metals should still be Corp., the largest domestic producer of tung- manually separated from their outer box cov- sten, established a patented process in the early ers. While all segments of the precious metals 1970s for recycling tungsten scraps and in recycling industry have expressed interest in 1978, a proprietary process for producing the process, economic factors may prevent extra-fine, highly purified cobalt powder from widespread adoption of fully automated proc- recycled scrap on a toll and nontoll basis. With essing. Some in the recycling industry view the sintering, the powder can be turned into a high capital costs of the equipment and the metallurgical cobalt material suitable for use high energy costs of operating it as formida- in superalloy, GTE has also established a pi- ble barriers to profitable domestic processing lot plant project to reclaim cobalt from super- of low-grade mixed scrap. alloy scrap. The recycled cobalt is equivalent to highly refined cobalt produced from virgin Cemented Carbides ores. Although the cobalt is produced as powder for cemented carbide use, it may be suitable About 8 percent of the cobalt consumed do- 48 for superalloy if compacted and pelletized. mestically each year is used as a binder in cemented carbides, which are used in cutting Other cemented carbide producers, such as tools or other high-wear applications. Most Teledyne, employ a zinc process to recover scrap produced during fabrication of cemented both cobalt and tungsten carbide as powders carbides is now recovered, and in the last few from tungsten carbide scrap. The process was years, producers of cemented carbides have be- developed by a British firm in 1946 and fur- gun to recycle substantial quantities of obso- thered by the U.S. Bureau of Mines, lete cemented carbide scrap. This improved recovery became pronounced in the late 1970s but the improvement was less a function of industry response to the cobalt price increase than of the ongoing adoption of technological advances by tungsten carbide producers. qBInformation provided to OTA by GTE, Aug. 10, 1983.

Prospects for Conservation of Strategic Materials

Table 6-6 summarizes key opportunities for quantities of materials are involved. Under increased recycling of chromium, cobalt, and tight supply conditions, appreciable increases PGMs. Data limitations prevent close estima- in recycling can be anticipated as scrap col- tion of prospective recovery opportunities in lectors, processors, and consumers respond to many applications, but it is clear that very large increased prices of primary metals. Table 6-6.—Selected Opportunities for Increased Recycling of Chromium, Cobalt, and Platinum Group Metals

Barriers to increased recycling Current level Key recovery of recycling opportunities Technical Economic Institutional Superalloy (Co, Cr): An estimated 2.8 million Ibs of Increased recovery of obsolete Concern about contaminants Current prices encourage down- Not significant once manufactur- cobalt-bearing superalloy proc- scrap, reduced downgrading limits recycling in superalloy grading of superalloy scrap ing specifications for use of essing scrap was lost or down- of high-quality industrial scrap production to high-quality for use in stainless steel or recycled materials have been graded in 1980; 1.2 million Ibs and recovery of wastes, using scrap and processes that have nickel alloy production in established; however, this can of cobalt in obsolete scrap was advanced recycling tech- been certified. which the cobalt is not take several years. not recovered. However, these nologies. needed. figures are based on 1976 scrap Experimental processes to re- Certifying recycled materials for use rates. claim elements separately superalloy use is expensive have not been commercialized. and time-consuming. Petroleum hydroprocessing catalysts (Co): No cobalt recovery at this-time; Cobalt consumption in catalysts Not significant; various proprie- Current prices may discourage Landfilling of spent catalysts by 270,000 Ibs of cobalt was not is expected to grow to 675,000 tary processes are purported recovery of cobalt in prefer- refineries prevents possible recovered from spent catalysts Ibs in 1990, 900/. of which to recover Cr, Co, Ni, Mo, Va, ence for molybdenum. How- future recovery of some in 1982. could be recovered. and other metals for catalytic ever, at least two firms have catalysts. or chemical purposes. proprietary processes for recovery of all elements in catalysts. Accumulated spent catalyst Some technical problems; pilot- Reprocessing of residue is not Not significant; residues are residues may include 8 million scale recovery process is un- profitable at current prices. stored on site of major Ibs of cobalt and nickel. der investigation by a private processor. firm. Cemented carbides (Co): 10 to 30°/0 of cobalt used in do- Obsolete scrap (a high propor- Not significant: several firms Recovery of obsolete scrap from Lack of effective scrap collec- mestic cemented carbide ship- tion of industrial scrap is al- use a Bureau of Mines proc- dispersed uses may not be tion programs by industrial ments came from recycling. ready recovered.) ess to recover cobalt binders. economic at current prices. users. Practical limits for One firm produces highly re- postconsumer recovery vary fined, pure cobalt powders by industry. However, some from scrap that could poten- users (such as the oil indus- tially be used in” other try) return 80% of their scrap premium uses. for recycling; the coal mining industry, by contrast, only returns 150/0 (out of a practical limit of 500/0). Table 6.6.–Selected Opportunities for Increased Recycling of Chromium, Cobalt, and Platinum Group Metals (Continued)

Current level Key recovery Barriers to increased recycling of recycling opportunities Technical Economic Institutional Stainless steal (Cr): Home scrap is efficiently recov- Improved recovery, reduced Not significant, but current in- Comparatively low price of chro- Recovery of obsolete consumer ered; purchased scrap for stain- downgrading of obsolete dustrial practices encourage mium and labor costs asso- products containing stainless less steel accounted for about scrap, especially automotive downgrading. ciated with removal of stain- steel catalytic converter shells 20°/0 of total demand for Cr in catalytic converters. less steel components from is a primary candidate for re- 1983. automotive and other obsolete covery, but will depend on scrap encourages down- effective linkage of PGM and grading. Cr recovery efforts. Increased recycling of industrial Recovery of chromium from Resource recovery from indus- Environment and solid waste processing wastes (slags, flue some wastes (e.g., slags) is trial wastes may not be eco- disposal requirements are pro- dust, low-quality fabrication technically difficult. nomic: however. commercial viding increased impetus to scrap, etc.) recovery of low-grade flue recovery where economic. dusts, grindings, turnings, bor- ings is now being undertaken commercially. Catalytic converters (PGM, Cr): Up to 30°/0 of scrapped converters Retrieval of PGM from scrapped Several companies have proprie- Dependent on PGM prices, but Some dismantles do not re- may now be recovered for automobiles, muffler shops, tary processes to recycle appears favorable. move catalytic converter from recycling. etc. Maximum theoretical catalysts. cars prior to scrapping. PGM recovery will grow to Collection networks have not 800,000 troy oz by 1995. Maxi- been established in many mum practical recovery rate areas. will probably be about 500,000 Dismantles want more for the troy oz. catalysts than reclaimers are willing to pay. Electronic scrap (PGM): High for industrial scrap, low for Obsolete scrap. Lack of technology for Depends on PGM prices; hand Collection of obsolete scrap obsolete scrap. preprocessing of scrap to a labor disassembly encourages from consumer electronics form usable by a refinery. export of scrap. (i.e., households) is unlikely without incentives. Value of scrap is not widely recognized; monitoring of trends is inadequate. SOURCE: Office of Technology Assessment. Ch. 6—Conservation of Strategic Materials . 257

Evidence from past “crises’ ’-most notably establishment of specialized scrap processing the Canadian nickel strike of 1969 and the co- firms and improved industrial waste treatment balt price spike in 1978—suggests that U.S. in- processes, have expanded the range of waste dustry can quickly increase recycling when materials considered suitable for recycling, so concerns about supplies are paramount or that continued incremental improvement in when prices rise rapidly. In 1969, nickel scrap recycling is likely in the coming decade. purchases exceeded 1968 levels by over 60 per- Difficulties in identifying and sorting complex cent despite the fact that the Canadian strike scrap containing several materials have re- did not occur until mid-1969. Nickel scrap as cently been eased by the commercial availabil- a proportion of domestic consumption ex- ity of portable and relatively inexpensive in- panded rapidly over the following 3 years— struments suitable for use in scrapyards, as accounting for 22 percent of domestic supplies discussed in box 6-A. in 1972 as compared to 8 percent in 1968, (The In the area of superalloy recycling, consid- current level is about 23 percent,) Cobalt scrap erable technological advances have been made purchases doubled in 1978 and remained at or over the last decade. However, additional in- above 1 million pounds per year through 1981, novations may be needed if full use of obso- a growth from 4 percent of domestic consump- lete scrap and other less preferred scrap is to tion to 8 percent. occur. In the most demanding applications, It is more difficult to quantify savings of stra- even small trace amounts of impurities may be tegic materials likely to arise from adoption of unacceptable. Because of concern that con- new manufacturing and processing technol- taminants acquired from scrap material could ogies by U.S. industry, but they are also large— result in failure of superalloy parts, use of particularly in the cases of manganese used in superalloy scrap in jet engines has been limited steelmaking and strategic materials used in to scrap of the highest quality—generally, home superalloy. Upgrading of basic steelmaking and prompt industrial scrap, although limited processes could lead to important reductions use has been made of obsolete scrap obtained in the amount of manganese needed to produce from commercial aircraft, where parts can be each ton of steel (see table 6-6). Use of advanced identified by alloy type. Much of the remain- manufacturing technologies by the aerospace ing scrap is downgraded to use in stainless industry will reduce chromium, cobalt, and steel, where it is used for its nickel and chro- other strategic material input requirements for mium content. When this occurs, cobalt is lost, superalloys on a perpart basis. Part life exten- and the previously high-quality chromium used sion programs could also conserve materials in superalloys becomes a replacement for chro- over the long run. As discussed in chapter 7, mium usually supplied from high-carbon fer- increased use of coatings and other surface rochrome or stainless steel scrap. treatment technologies and use of advanced ceramic and composite materials also could re- Nontechnical Impediments duce per part strategic material requirements, especially in the long term. In most applications, institutional and economic constraints on recycling are more for- Recycling Technology midable than the technical constraints. Fluc- tuating commodity prices, costs associated With some notable exceptions, there appear with segregation and processing of scrap, to be few significant technological barriers to transportation costs, and industry structure all increased recycling of strategic materials. affect the ability of recycled materials to com- High-quality scrap generated in the production pete with primary metals. and manufacture of products is recognized to be a valuable source of raw materials by indus- ECONOMICS OF RECYCLING AND CONSERVATION try and is usually effectively recovered and re- The economic incentive for recycling high- used. Ongoing industrial trends, including priced materials, such as PGMs, is very high. 258 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

However, other strategic metals are less expen- industry, This system works well for materials sive and often account for only a very small for which there is a relatively constant demand proportion of the scrap. For many applications, for a standard product. Although recycling raw materials comprise only a small fraction firms can respond rapidly to changes in mate- of the total value of the product. A 6,000-pound rials demand due to shortages of primary ma- jet engine, for example, may cost $3.5 million, terials, exacting standards for superalloy and while the value of the materials it contains is other premium materials can only be met only $60,000. Even though an alloy may con- through the use of sophisticated equipment and tain metals that are relatively rare and high experienced personnel who are familiar with priced, the cost of separation of the alloy into the needs of consumers. This can delay recy- its constituents may be so high that it discour- cling response time in a shortage situation, ages any attempt to recover the metals; so, the alloy is downgraded to recover its nickel and Recycling and Conservation Data Base chromium content. Accurate information is needed to have a Recycling opportunities will change along realistic picture of the potential for recycling with changes in manufacturing processes and to reduce U.S. materials import vulnerability. product designs. More efficient manufacturing The existing data are weak, with many uncer- processes will require less raw material, so tainties about their accuracy. Key areas where there will be less prompt industrial scrap avail- improvements can be made are: upgrading of able for recycling, New product designs that annual information about scrap purchases by use combinations of materials to achieve desir- consuming industries, development and use of able properties will present difficult and expen- materials flow models on a periodic basis, and sive problems for the separation of materials improved tracking of the ultimate disposition for recycling. Often, products can be designed of obsolete scrap and industrial wastes that for ease of recycling, but since raw material contain appreciable amounts of strategic ma- costs are generally a small component of over- terials, all cost, this is seldom done, The U.S. Bureau of Mines prepares annual Materials conservation is an important side estimates of scrap purchases by domestic in- benefit of the advanced manufacturing tech- dustry. In most instances, these estimates are nologies widely used by the aerospace indus- based on voluntary reporting by private firms. try. These technologies may gradually filter Not all firms are canvassed, and of those that down to other industrial users. Diffusion of are, not all respond. Consumers of more than computer-aided design and nondestructive one strategic material may be surveyed about evaluation techniques may be impeded to some only one material. Although adjustments can extent by lack of experience of engineers, de- be made to compensate for incomplete report- signers, and others with these new approaches. ing, the resulting estimates are subject to con- This is not a major problem in the aerospace siderable uncertainty. In the course of this industry or in other critical uses, however. study, OTA found evidence that substantially more recycling may be taking place than is cur- INFRASTRUCTURE 49 rently reported in Bureau of Mines’ data. The complex structure of recycling industries, often entailing primary metals proces- Scrap purchases alone provide only a limited sors, collectors and dealers, scrap processors, picture of recycling trends, Substantial recy- and parts manufacturers, can inhibit initiation cling occurs internally and through toll refin- of recycling programs, even when the pro- ing arrangements that do not involve purchases, grams may be economically advantageous. Generally, the secondary metals industry com- goother reports have reached a similar conclusion. See, for ex- prises a large number of small firms that re- ample, the NMAB report, Cobalt Conservation Through Tech- spond to prices offered by the primary metals nological Alternatives, op. cit., p. 25. Ch. 6—Conservation of Strategic Materials • 259

Also, scrap purchases provide no insight into is exported, while the rest is unaccounted for the ultimate fate of scrap that is not recovered. in national statistics. Much of this lost mate- Periodically, Federal agencies such as the Bu- rial may now be effectively unrecoverable reau of Mines and the NMAB have published owing to disposal in landfills, dissipative cor- detailed and relatively comprehensive mate- rosion, contamination, or abandonment in rials flow models for individual metals. These unknown locations. Some, however, may be models have appreciably increased under- retrievable from industrial disposal sites, com- standing of overall recycling trends, but they mercial scrap yards, and military storage have been prepared infrequently and there has depots for use during supply disruptions. Ex- been little or no consistency in procedures used tensive efforts have been made over the years in developing the models. to estimate the accumulated “inventory” of potentially recoverable ferrous scrap, but a simi- A notable impediment—from the perspective lar effort to monitor the disposition of strate- of identifying possible responses to disruptions gic materials in obsolete superalloy parts, in materials supply—is the absence of informa- catalysts, and other applications has not been tion about accumulations of unrecovered ob- made. As a result, plausible estimates of the solete scrap containing strategic materials. above-ground mine of strategic materials re- Only a portion of the scrap that becomes ob- coverable in an emergency are not available. solete each year is recycled domestically. Some CHAPTER 7 Substitution Alternatives for Strategic Materials Contents

Page Table No. Page Roles of Substitution in Materials Use...... 263 7-8. Use of Structural Materials Under - Substitution as an Emergency Response to Development to Reduce Cobalt and a Supply Problem...... 264 Chromium Usage in Hot-Section Substitution as a Continuing Strategy for Parts ...... 284

Reducing Import Vulnerability...... 264 7-9( Current and Prospective Uses for Factors Affecting the Viability of Advanced Ceramics ...... 287 Substitution ...... ,.....265 7-1o, Some Advanced Ceramics Material Technical Factors...... ,...265 Families ...... 288 Economic Factors ...... ,...... 265 7-11, Potential of Advanced Ceramics to Institutional Factors...... 265 Substitute for First-Tier Strategic Designer and End-User Acceptance ...... 266 Materials ...... 291 Summary of Substitution Prospects ...... 266 7-12. Advanced Composite Materials Prospects for Direct Substitution in Key Options ...... 303 Applications ...... ,,...,....268 7-13, Price Range of Selected Composite Chromium Substitution in Stainless Steel .268 Raw Materials ...... 304 Chromium Substitution in Alloy Steels.. ..276 7-14, Current Aircraft Applications for Reducing Cobalt and Chromium Used in Advanced Composite Materials . . . . . 307 Superalloys for High-Temperature 7-15, Potential Commercial Applications of Applications ...... ,...... ,277 Metal Matrix Composites ...... 309 Advanced Materials ...... ,.285 7-16. Potential Automotive Applications Ceramics ...... 286 for Composites of Kevlar 49 Aramid. 312 Composites ...... 301 7-17. Current Status obtesting of Long-Range Order Intermetallic Materials .313 Modified 8Cr-1Mo Steel Tubes in Rapid Solidification ...... 314 U.S. and Foreign Steam Powerplants 321 Institutional Factors in Substitution ...... 318 7-18. Status of Specifications for Modified Information Availability and Substitutes ..318 9Cr-1Mo Alloy ...... 321 Qualification and Certification of Alloy 7-19. Structural Ceramic Technology Substitutes ..., ...... 319 Federal Government Funded R&D... 326 Institutional Barriers and Advanced Materials ...... , ..323 List of Figures Figure No. Page List of Tables 7-1. Temperature Capability of Table No, Page Superalloy ...... 279 7-1. Examples of Substitution Relevant to 7-2 Temperature Capabilities of Turbine Strategic Materials ...... 263 Blade Materials ...... 281 7-2. Primary Motivations for Substitution 7-3, Graphite Fiber Cost ...... 304

R&D ...... 266 7-4( Fiberglass Composite Applications . . 306 7-3. High-Volume Stainless Steels ...... 269 7-5. Carbon/Carbon Composite Needs . . . 308 7-4. Development Status of Potential 7-6, Development of Modified 9Cr-1Mo Substitutes That Could Reduce Steel for Fossil Fuel and Nuclear Chromium Requirements in Stainless Power Applications ...... 320 Steel ...... 271 7-7, Technology Transfer Ladder for ODS 7-5. Ladle Analysis Ranges for the MA 6000...... 323 Chrome-Free Replacement 7-8. Technology Transfer Ladder for Compositions for Standard 4118 and COSAM Strategic Material 8620 Steeds ...... 277 Substitution ...... 324 7-6. Typical Structural Alloys Used for Hot-Section Components...... 280 7-7. Nickel-Base Superalloys Selected for Cobalt Substitution Research by NASA ...... 283 CHAPTER 7 Substitution Alternatives for Strategic Materials

Roles of Substitution in Materials Use

Designers choose materials that they think search—most of it government sponsored—is offer the most attractive combination of serv- focused on development of replacement ma- ice performance and reliability, ease in proc- terials that could reduce strategic material re- essing and manufacturing, cost, and availabil- quirements in several critical applications. ity. However, these factors constantly change These include, among others, several lower as new materials with better properties are de- chromium alternatives for existing stainless veloped, better information about existing ma- steels now used in powerplants, chemical proc- terials becomes available, new processing tech- essing facilities, and other applications where niques are developed, and relative costs and corrosion resistance in a range of environ- availability of materials fluctuate. Substitution, ments is needed; low- or no-chromium alloy the process of revising the match between ma- steels for bearings, gears, shafts and other high- terials and applications, is the material users’ stress, long-service life applications; and low- technical response to this shifting environ- or no-cobalt superalloy for gas turbine appli- ment. In some cases, substitution involves find- cations. Some examples of substitutions that ing or developing the best material for the ap- have been or could be important to strategic plication (replacement); in others, it involves materials use are shown in table 7-1. designing or redesigning the application to make the best use of available materials. Substitutions can be very costly and there- Table 7-1 .—Examples of Substitution Relevant fore are undertaken only when there is a high to Strategic Materials degree of certainty that the benefits will be sub- Direct material substitution: stantial. To be adopted, a substitute material Ceramic magnets for aluminum-nickel-cobalt magnets or design must demonstrate both technical and Dolomite for magnesia-chromite refractories Interchangeability of platinum-group metals and gold in economic feasibility and must overcome a va- electronic components riety of institutional hurdles. More important, Modified 9% chromium-1% molybdenum steel for 18% it must gain the acceptance of the designers chromium-8% nickel stainless steel in reactor vessels, heat exchangers, and tubing in powerplants and end users who will ultimately use it. Polymeric materials for decorative chrome in automobiles Cobalt-free superalloy for 56% cobalt superalloy in JT-9 Even though substitution includes both re- jet engine placement and redesign, current strategic Process design substitution: materials-motivated substitution research is, AOD vessel for double-slag in stainless steel making Precision casting and forging for machining in parts for the most part, oriented toward development manufacture of alternative materials that have less strategic Continuous casting for ingot casting in steelmaking material content.l At present, considerable re- Product design substitution: Ceramics in experimental automotive gas turbine engines Downsizing of turbine engines made possible through the I Th(] ugh product design and redesign can be used to reduce use of lighter materials in aircraft—— components strategic materials requ i rernents, this strategy is less amenablo S–OURCE” Off Ice of Tech~ology Assessment to a centralized research effort because of the vast number of products [and the case-by-case nature of this technique). New manufacturing process designs can also rfxluce strategic —. m a ter ia ]s needs i n some applications, However, these sa \’i ngs egy to reduce U.S. dependency on imported materials, produ(:t are rare] y the prima r}’ m oti \’a t ion for process d e~. elopm en t or or process design modification can on]}’ be succf?ssful i f df~sign implcrnf?ntation dnd are not realized if greater cost or perform- engineers can be convinced to include strategi(, materials sa\- an(:e advantages lie with other processes. As a national strat - ings as an i rnportant objective in design decisions.

263 264 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

Substitution as an Emergency Response tion of engineers and designers is one frequent- to a Supply Problem ly proposed means for reducing U.S. vulnerability to an import curtailment. This concept To a certain extent, already developed, on- is discussed further in chapter 8. the-shelf substitute materials and technologies can be relied upon in an emergency to conserve materials that are in short supply. As dis- Substitution as a Continuing Strategy for cussed in chapter 3, substitutes for strategic Reducing Import Vulnerability materials in many applications are often available, though not necessarily readily recogniza- Besides being an emergency response, sub- ble as such. Alternative materials could be used stitution can also play a key role in long-term in these applications with low (or at least toler- strategies to reduce dependency on imported able) penalties in performance and cost. The materials. During the last decade, there has material saved through these measures would been much research focused on development then be available for use in critical applications of substitute materials that could reduce stra- where higher or unacceptable penalties are tegic material requirements for many alloys associated with substitution. currently used in key applications. Other research has been aimed at development and The existence of technically and economi- commercialization of advanced materials (e.g., cally viable substitutes is not the only require- ceramics and composites) which may displace ment for a timely response to a supply emer- use of strategic materials in some applications. gency. For many critical applications, a new material must be tested and its use in a par- Although many technically promising substi- ticular component must be qualified (accepted tutes are under development, the extent to by the consumer) and certified (shown by the which they will be adopted by U.S. industry producer to meet the consumer’s require- is difficult to foresee, In the absence of an ments). Thus, immediate response is limited to immediate availability problem, industry’s those materials that are already in (or very close adoption of new materials, designs, and man- to) commercial use, and to applications that do ufacturing technologies is usually not moti- not have stringent materials requirements or vated by concerns about strategic materials for which the material has been certified and availability. Generally, the new technologies qualified. The substitution response by U.S. in- will be used only if they offer some more im- dustry to prior supply problems involving stra- mediate benefit such as reduced costs, in- tegic materials is discussed in chapter 4. creased outputs, improved product performance, or potential new products. The current ability of U.S. industry to respond to a supply problem with substitution A successful long-term strategy for reducing is not known with any degree of certainty. Al- U.S. vulnerability to imported materials though a large backlog of alternative materials through substitution depends not only on the and technologies is generally conceded to ex- technical feasibility of alternative materials but ist, information about many of these potential on acceptance of them as practical alternatives substitutes has not been assembled in a system- by industry. Acceptance comes only when the atic way which would be accessible to design- technical and/or economic benefits have been ers, material users, and decisionmakers in an clearly demonstrated, various institutional bar- emergency. Development of a substitution data riers have been surmounted, and a high degree bank or a materials information system that of designer and end-user confidence has been would bring available substitutes to the atten- established. Ch. 7—Substitution Alternatives for Strategic Materials ● 265

Factors Affecting the Viability of Substitution

Technical Factors of shifting to a substitute material. Adoption of a new material may require costly new Over time, a backlog of proven, on-the-shelf equipment or changes in operations. There are materials and technologies have been devel- also costs associated with change itself—for oped that for one reason or another have not training workers in the use of a new material been adopted by industry, Research and devel- or process, for changing the design of products, opment (R&D) efforts by public and private and for adjusting manufacturing practices. agencies throughout the world are adding to this store of potential substitutes almost daily. Institutional Factors Only a few of these are likely to be adopted by industry at any given time. An alternative material may take a decade Technological barriers to strategic materials or more to bring to commercial fruition, even substitution can be time-consuming and for- after the technical and economic feasibility of midable, especially for applications in which the substitute has been demonstrated. Govern- little or no compromise in performance is ment, industry, academia, professional soci- acceptable, Even when a promising substitute eties, and standard-setting organizations may is developed in the laboratory, new and signif- all play roles in this process, depending on the icant technical problems may be encountered material and its application. when large-scale tests are undertaken to ver- Substitution R&D relevant to strategic mate- ify laboratory findings, Often, a return to basic rials is conducted in government, industrial, research is required to overcome these scale- and academic laboratories. Since most of the up problems. Additional technical problems support for this work has come from the gov- may be encountered when full-scale industrial ernment, funding of the projects is subject to production is begun. shifting governmental budgetary priorities and may not be sustained for the protracted period needed to adequately demonstrate the techni- Economic Factors cal potential of a material or its application. Also, government conducted or sponsored The technical potential of substitution to re- R&D can suffer from insufficient industrial induce strategic materials requirements is far terest in commercializing a material, greater than what is economically feasible. In- Industry, the group which ultimately decides dustry will not adopt technically promising whether or not substitutes are adopted, usually alternative materials unless they are cost- does not commit the funds, time, and effort effective compared with current materials. necessary to develop and qualify substitutes for Often, the cost effectiveness of using the cur- strategic materials unless such activities also rent material is not greatly affected by price provide cost or performance advantages. Pri- increases in strategic raw materials. In fact, the vate firms often do not perceive national ma- prices of raw materials can be such a small part terials availability and vulnerability as prob- of the cost picture that they are relatively unim- lems that they have a major role in remedying, portant in a substitution decision. For exam- Availability concerns are usually not immedi- ple, raw materials account for only about 1 per- ate enough to cause much corporate concern. cent of the cost of a jet engine, Even platinum Table 7-2 illustrates the representative R&D pri- group metals (PGMs), which cost between $100 orities by government and industry. and $400 per troy ounce, account for less than 5 percent of the cost of products manufactured Standard-setting and professional organiza- with PGM catalysts. Therefore, all else being tions play key institutional roles in the devel- equal, a change in the cost of raw materials opment process by testing new materials and often has to be dramatic to warrant the expense developing standards for their use. Often, test- 266 . Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

Table 7-2.—Primary Motivations for Substitution R&D different to the need to save strategic materials. A heightened awareness of the importance Industry Government of design to strategic materials vulnerability Reduced import dependency . . . . . x Cost advantage ...... x may be able to reverse this indifference, Better performance ...... x New market penetration ...... x Substitutes are adopted only when compo- Materials conservation. ., ...... x nent designers and end users have acquired a Maintenance of national high degree of confidence in the technical ca- industrial competitiveness . . . . . x SOURCE: Office of Technology Assessment, pabilities and economic potential of the new technologies. These materials users will not use any substitute technology with which they are uncomfortable; they are reluctant to make ing and standard-setting are done by volunteers changes, especially if the new designs or from professional societies, with limited re- replacement materials are relatively untried, sources and time to dedicate to the effort. In Substitution in critical applications often re- other instances, such as the qualification of a quires a degree of confidence or comfort with new superalloy for jet engine use, testing and the new material or design that can only come qualification is undertaken by an individual from a proven track record. Consequently, firm on a proprietary basis. The effort may promising substitutes are often introduced first have to be duplicated by others if the material into noncritical applications where confidence is to be used broadly. In many cases, several can be gained without fear of catastrophic years of effort—and millions of dollars—may failures. be entailed in testing and qualifying a new material for use in a critical application. These acceptance hurdles can be especially high for advanced materials. Since many ad- Designer and End-User Acceptance vanced materials are relatively recent developments, they are still fighting to establish a track Acceptance by designers and end users can record, This situation is exacerbated by the fact be the highest hurdle in the adoption of a sub- that most designers receive little formal train- stitute. These groups sometimes have been in- ing in the use of advanced materials,

Summary of Substitution Prospects

On-the-shelf substitutes, which could be stitute materials. Technologically sophisticated adopted by industry relatively quickly, enhance firms are generally aware of available substi- U.S. preparedness to deal with import prob- tutes, and some are reported to have under- lems. It has been estimated, for example, that taken contingency planning to address future immediately available substitutes could replace supply availability problems. Less sophisticated one-third of the chromium now used. There are firms may have greater difficulties in obtain- also fully developed substitutes for cobalt and ing such information in the event of an actual PGM in some applications. Substitution pros- supply disruption, and, as a general rule, would pects for manganese are less promising, al- have the greatest difficulty in competing for though substantial reductions in the amount scarce materials. of manganese needed per ton of steel produced Substitution prospects in many critical eco- are likely in the coming years because of the nomic and defense applications depends partly upgrading of steelmaking processes, as dis- on overcoming significant technical barriers. cussed in chapter 6. In these applications, substitutes must equal Industry response time depends in part on the performance of the materials already used, the ready availability of information about sub- which is often technically difficult, Substitutes — —.. .—. . —

Ch. 7—Substitution Alternatives for Strategic Materials ● 267 with low strategic material content have not space Materials Program (COSAM)—has also yet been developed for some of these impor- sponsored initial laboratory work on replace- tant applications. The degree of commitment ment superalloys that have reduced levels of needed to develop direct substitutes is substan- cobalt, These research materials could potential in both money and time. For applications tially reduce the cobalt now used in some which require that alternative materials be nickel-based superalloys by one-half or more. qualified, the development effort may take 10 However, full development of these replace- or more years and several million dollars, even ment materials would require several more after their technical promise has been identi- years and millions of dollars in additional fied in the laboratory. funds. As with lower chromium stainless steel, subsequent development steps needed to bring Industry has little incentive to develop sub- these substitute superalloy to the point of com- stitutes on its own unless clear benefits in cost mercial use probably will need to be federally or performance are anticipated. As a result, the supported if this development is to occur at all. Federal Government has undertaken or sponsored most of the research where strategic The changing material requirements of the materials savings, not cost or performance ben- aerospace industry may make it impractical to efits, are given top priority. Several Federal develop these direct substitutes for superalloys agencies, including the Department of Energy to the point of commercial use. The develop- (DOE), the Interior Department’s Bureau of ment steps required could entail 5 to 10 years Mines, and NASA have sponsored research of additional effort. Beginning in the mid- programs aimed at developing substitutes for 1990s, advanced superalloy materials may be- strategic materials. However, the sustained gin to be commercially used in the next gen- support needed to develop particular materials eration of military aircraft. The direct substi- to the point of commercialization generally has tutes now under development for currently been lacking, used materials will not be suitable replace- Substitution research programs undertaken ments for new materials used in the next gen- by NASA, the Bureau of Mines, and DOE na- eration of jet engines. (Less near- and medium- tional laboratories have resulted in lower chro- term change in materials is expected in the mium research alloys that are potential substi- case of stainless steel.) Superalloy substitution tutes for stainless steel in some applications. research is discussed in greater detail in a sub- (Selected examples of these alloys are discussed sequent section. in a subsequent section, and summarized in ta- In addition to direct substitutes, advanced ble 7-4,) Even if fully developed, most of these materials (including ceramics and composites) materials would not duplicate the great versa- are also under development because their prop- tility of the high-volume stainless steels and erties offer new possibilities in product design would be capable of replacing stainless steels and performance. These materials, which con- in only a limited range of applications. tain little or no strategic metals, may have long- With some exceptions, these substitutes are term implications for reducing import depen- only in the initial stages of development. In dency, although to what extent is not clear. Be- most instances, a continuing government com- cause the emphasis is on cost and performance mitment will be required if these materials are benefits, much of the development of advanced to be fully developed, since private industry is materials is carried out by private concerns. unlikely to undertake this research itself. Issues Advanced ceramic materials have the poten- surrounding possible additional Federal sup- tial to displace metals where exceptional wear- port for such development activities are dis- resistance or heat-resistance is required. Cur- cussed in chapter 8. rent and prospective advanced ceramic appli- The Federal Government–especially NASA, cations in which strategic materials are now through its Conservation of Strategic Aero- used are discussed in a subsequent section, and 268 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

summarized in table 7-II. Aerospace and for strategic materials should not be overem- automotive applications command most of the phasized. Nonetheless, in the long term, they funds for ceramic R&D efforts. may well bring fundamental changes in the overall mix of materials in the domestic and Composites (including polymer matrix, metal international economy. Major industrial coun- matrix, and carbon/carbon materials) are pri- tries including the United States, Japan, Great marily under development because of their Britain, and several Western European coun- lightness compared to conventional materials. tries are all vying for prospective markets for In critical applications, their potential role in these materials. Moreover, because of their key reducing strategic material requirements is importance in defense applications, the ques- likely to be indirect and will depend upon de- tion of the adequacy of domestic processing ca- sign factors. At present, commercial applica- pabilities with respect to these materials is tions for advanced composites are dominated likely to be an increasingly important issue. by aerospace applications and high-value sport- Processing capacity is often located in several ing goods. Increased use of composites in auto- different countries. The United States, for ex- motive applications is predicted. ample, currently imports from Japan most of Strategic materials conservation is not a pri- its high-quality polyacrylonitrile (PAN) used as mary motivation in the development of ad- a precursor in carbon-carbon composites. The vanced materials, and the potential of these international nature of these markets could cre- materials for displacing current requirements ate a new type of materials import dependency.

Prospects for Direct Substitution in Key Applications

Adequate substitutes exist for many applica- or better the properties of the current material, tions in which strategic materials are now There are very few, if any, immediately avail- used. For example, aluminum alloys, plastics, able replacement materials capable of meeting and plated carbon steels already compete with the demanding performance standards required stainless steels for many construction and con- for these applications. In some cases, adequate sumer markets. In the event of a chromium substitutes for the current materials have yet supply disruption, these alternative materials to be developed. In other cases, technically would be readily available as substitutes for acceptable substitutes may be known, but are stainless steel in many nonessential applica- too expensive to be used. In still other cases, tions where exceptional corrosion resistance potential substitutes have been developed in is not needed. Similarly, if the supplies of PGM the laboratory but have yet to be taken through were to tighten, electronic components man- the time-consuming and expensive testing ufacturers could quickly substitute gold for processes necessary to make them acceptable much of the platinum and palladium now used for commercial use. Depending on the extent for contacts. This is a case where raw materials of the laboratory research and the promise prices are a significant part of the total prod- shown by the results, some of these substitutes uct cost and can be counted on to drive sub- could be brought to the point of commerciali- stitution. Fifteen years ago, gold was the pre- zation in the next 5 to 10 years, while others ferred material for contacts, but current prices are unlikely to be developed fully. favor platinum and palladium. Materials substitution in many essential eco- Chromium Substitution in Stainless Steel nomic and defense uses is more difficult, however. Performance compromises are very costly Stainless steel accounts for almost half of the in these cases, so the replacement must match total U.S. chromium demand, and about 70 per- Ch. 7—Substitution Alternatives for Strategic Materials ● 269 cent of the chromium consumption in metal- such as tubing and reaction vessels in power- lurgical uses. Table 7-3 shows the contribution plants and chemical processing facilities. of the highest volume stainless steel grades to There is little chance that a universal substi- chromium use. The most common grade, AISI tute for stainless steel can be found for use in 304, alone accounts for over 40 percent of do- all of these applications. However, some oppor- mestic stainless steel production and over 20 tunities exist for piecemeal substitution. The percent of total domestic chromium consump- potential for reduced use of stainless steel (and tion. Although the chromium content of stain- thus chromium) in an emergency is very great less steels varies from 10 to over 30 percent, in the decorative and consumer uses and low- on the average stainless steels contain about 0 temperature (room temperature to 900 F) in- 17 percent chromium. dustrial applications. Materials such as alumi- The primary function of chromium in stain- num, titanium, plastics, and low-chromium less steel is to provide corrosion and oxidation stainless steels (9 to 12 percent chromium) can resistance. z Chromium makes stainless steel often substitute without serious performance highly resistant to damage in a large variety of compromises for stainless steels in these rela- environments. This characteristic, along with tively undemanding uses. The possibilities for good fabricability and mechanical properties, replacement in the industrial applications oper- is what makes stainless steel so attractive for ating at higher than 900° F (5OO° C) is some- a wide variety of applications, ranging from what smaller. In some of the moderately severe decorative trim, kitchen utensils, and other (referring to both temperature and corrosive- consumer products to industrial applications ness) industrial environments, steels with 12 to 15 percent chromium would suffice where ZThe protection from corrosion and oxidation damage comes high-chromium stainless grades (18 percent or from the chromium oxide skin that forms at the surfaces of stainless steels. Chromium concentrations of 12 percent or higher more) are now used. This substitution oppor- are required for the formation of the protective skin, but since tunity exists because engineers often specify corrosion and oxidation resistance increases with chromium the common grades, which have better prop- content, much greater concentrations are often used. AISI 304 stainless steel contains 18 to 20 percent chromium, and some erties (and more chromium) than needed, in or- superstainless grades have chromium contents of 30 percent or der to expedite the design process. In addition, more. there are low-chromium (e.g., 9 percent) or In addition to conferring corrosion and oxidation resistance, chromium improves the hardenability and stabilizes the aus- chromium-free steels now under development tenite, the highly workable, ductile, and weldable microstruc- for use in these moderately harsh environ- ture found in the majority of stainless steel grades. ments. Even considering these new alloys, re-

Table 7-3.—High-Volume Stainless Steels

Percent of domestic Percent of chromium Percent of total stainless steel Typical chromium consumed in domestic chromium AISI stainless steel grade product ion compositions stainless steel consumption 301 ...... 9.60/o 17.0% 9.4% 4.60/o 304...... ! . . . . 42.3 19.0 46.5 22.6 304N & 304L ...... 4.0 19.0 4.4 2.1 316...... 3.6 17.0 3.5 1.7 316L ...... 3.1 17.0 3.1 1.5 409...... , ., ...... 10.1 11.1 6.5 3.2 430. ., ...... 3.5 17.0 3.4 1.6 Other grades ...... 23.9 NA 23.1 11.2 Total stainless ...... 100.0 ”/0 17,3”/0 100.0 ”/0 48.50/o alncludes chromium in metal, ferroalloys, and chromite Columns may not add to totals because of rounding NA = Not applicable, chromium composftlons vary greatly among these stainless steels SOURCE American Iron and Steel Institute, Cwarfer/y Product/on of Stainless and Heat Res(stirrg Raw Steel, publication AlS-l04(1983) and U S Bureau of Mines, Miner- als Yearbook, Chromium Preprint (1982) 270 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

placement of the high-chromium stainless stainless steel are under development (table 7- steels in extremely severe industrial applica- 4.) These new steels show promise for various tions, especially those at temperatures above moderately harsh environments but do not per- 1,300° or 1,400° F (700° to 800° C) appears in- form as well as high-chromium grades in ex- feasible. Much of this currently irreplaceable tremely severe applications. Most are still at demand for stainless steel is in critical defense the laboratory stage of development, although applications, the chemical processing industry, some are now undergoing certification, The and energy facilities such as powerplants and bulk of the research is being sponsored by Fed- petroleum and natural gas refineries. These ap- eral agencies, since private firms have little in- plications make full use of stainless steel’s im- centive at current chromium prices to develop pressive high-temperature corrosion and oxi- low-chromium substitutes. (See ch. 3 for chro- dation resistance and strength. mium price information.) According to a 1978 report by the National Low-chromium or chromium-free substitute Materials Advisory Board (NMAB), in a sup- alloys for the AISI 300 (austenitic) series stain- ply emergency 60 percent of the chromium less steels have received the greatest attention used in stainless steel could be saved through from researchers. Austenitic grades, most of the use of low-or no-chromium substitutes that which contain between 16 and 26 percent chro- are either already available or could be devel- mium, account for nearly 70 percent of domes- oped within 10 years.3 The other 40 percent of tic stainless steel production and for about 36 the chromium consumed in stainless steel was percent of all domestic chromium demand. found to be irreplaceable unless compensated Among this group is the very popular and ver- for by design or process improvements. This satile type 304. Excellent fabricability and me- amount represents approximately 20 percent chanical properties, combined with corrosion of the current total domestic chromium use. and oxidation resistance in a wide range of environments, makes the 300 series stainless Most research on reducing the use of chro- steels attractive for many applications, Unfor- mium in stainless steels is sponsored by Fed- tunately, the remarkable combination of prop- eral agencies. The focus is on developing alter- erties that enables this great versatility is cur- native alloys with lower chromium contents rently impossible to replicate, Consequently, than those stainless steels in greatest demand a universal substitute for the entire 300 series (e.g., AISI 304,409, and 301) for use in moder- (or even one of the particularly popular grades) ately harsh industrial environments. In addi- is not a likely development, The promise of tion, R&D related to advanced surface treat- each of the substitutes tends to be very appli- ment processes and ceramic and composite cation- or environment-specific. materials, though not motivated by chromium conservation, may uncover ways to reduce the Examples of promising research on substi- use of stainless steel in some applications, tutes for 300 series stainless steels in moderately severe applications include: Low-Chromium or Chromium-Free Substitutes for Stainless Steels ● DOE’s Oak Ridge National Laboratory development and promotion of a modified 9 Current commercial low-chromium steels are percent chromium (Cr), 1 percent molyb- unsuitable as substitutes for stainless steel in denum (Me) steel [modified 9Cr-lMo alloy).4 critical applications. However, several low- or The initial objective of the laboratory was no-chromium alternatives for some grades of to develop a single reference material for intermediate sections of liquid metal fast breeder reactors, Currently, these reactors 3National Materials Advisory Board, Contingency Plans for contain 18 percent chromium-8 percent Chromium Utilization, National Research Council, Commission on Sociotechnical Systems, Publication NMAB-335 [Washing- 4Basically a standard 9Cr-1Mo alloy with additions of colum- ton D. C.: National Academy Press, 1978). bium and vanadium. —— . —.

Ch. 7—Substitution Alternatives for Strategic Materials • 271

Table 7“4.—Oevelopment Status of Potential Substitutes That Could Reduce Chromium Requirements in Stainless Steel

Substitute Technical Economic factors material Key objective status Institutional sponsors and commercial status 1. Modified 9% Develop single material Fully developed; may Oak Ridge National In process of certifica- c hromium-1 % system to replace also find use in Laboratory. tion by ASME boil- molybdenum ferritic (2.25°/0 Cr) fossil, solar thermal, er and pressure steel. and austenitic (18°/0 and fusion energy code committee. Cr) steels used in systems, Cheaper than pressure vessels and 18%Cr-8% Ni stain- connecting tubing in less for indicated liquid metal fast uses; lack of indus- breeder reactors. try sponsorship may slow commercialization. 2. 12°/0 chromium Determine feasibility of Mechanical properties NASA-Lewis Research Laboratory stage; alternative to reducing Cr use in and corrosion and Center. initial work 18°/0 chromium type 304 stainless. oxidation resistance completed in 1979. 304 stainless compare favorably steel. with type 304 stainless. 3. Iron aluminum Develop chromium-free Early tests show excel- U.S. Bureau of Mines Laboratory stage. molybdenum material for midtem- lent workability and Albany Research (Fe-8 °/O Al- 6°/o Mo) perature oxidation- oxidation resistance, Center. alloy strengthened resistant application. ZrC strengthening by zirconium mechanism could carbide (ZrC). not be controlled reliably and needs additional work. 4. 9°/0 chromium Determine if other alloy- Tests show corrosion INCO under U.S. Laboratory stage. austenitic alloys. ing elements could resistance (in less Bureau of Mines replace part of the severe environ- sponsorship. chromium in stain- ments), fabricability, less steels. weldability, and mechanical properties comparable to conventional stainless grades. 5. Theoretical Develop a technical tool Modeling of alternative Allegheny Ludlum Could add to the method to defor devising low- compositions has Steel Corp. stockpile of infor- velop low- chromium alloys been undertaken. No mation about sub- chromium austen- with mechanical protest heats have been stitutes, but work itic stainless perties equivalent to made. has yet to progress steel compo- those of type 304 to the experimental sitions. stainless steel. stage. 6. Manganese-alumi- Develop general use Laboratory work shows Studies are being con- Most work is still at num steel alternative to that these alloys ducted in many dif- the laboratory (Fe-M n-Al). chromium-nickel may be useful at ferent laboratories. stage. Limited pro- stainless steel. cryogenic and mod- totype testing is erate temperatures being done in other and various corrosive countries. May be environments. cheaper than current stainless steels. 7. 6-12°/0 chromium Develop low-chromium Oxidation and creep ARMCO (producer Laboratory stage. ferritic steels. oxidation-resistant resistance are super- company). ferritic stainless ior to type 409 steels. stainless. SOURCE Off Ice of Technology Assessment 272 Ž Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

nickel (Ni) (18 Cr-8Ni) alloys (e.g., AISI 304, steel and could be used for most applica- 321, 347) in the reactor vessels and heat tions (except nitric acid environments) exchangers and a 2¼Cr-1Mo alloy in the where type 304 is currently used. This al- steam generators. Use of a single material loy conserves one-third of the chromium in these applications eliminates, among normally used in type 304 stainless steel7 other problems, an undesirable dissimilar (table 7-4, item 2). metal weld at the transition joints. The ● The U.S. Bureau of Mines’ investigation of modified 9Cr-1Mo alloy was found to be a chromium-free iron-aluminum-molybde- a promising replacement for both types of num (Fe-Al-Mo) alloy as a potential substi- materials. The encouraging results of the tute for high-chromium, heat-resistant al- research suggest that this alloy may find loys. An optimal composition for the alloy use in conventional power applications, as has yet to be developed, but early findings well. Although it will replace both low- and suggest that the chromium-free alloy may high-chromium materials, modified 9Cr- resist oxidation at moderate temperatures 1Mo will probably yield a net chromium to an extent comparable to 300 series stain- savings. However, chromium conserva- less89 (table 7-4, item 3). tion is a byproduct of this development ef- ● The Bureau of Mines’ work on reduced- fort, not a primary motivation. If this new chromium substitutes for high-performance material sees widespread use in the power stainless steels (e.g., type 310 with 25 per- industry, the resultant availability and cent chromium) used in elevated-temper- designer acceptance may encourage its use ature, severely corrosive environments, in other low or moderately hostile appli- Steels containing chromium (12 to 17 per- cations now dominated by high-chromium cent), nickel, and aluminum are being materials. studied in this program. The Albany Re- Nearing commercialization, this modi- search Center of the Bureau of Mines has fied 9Cr-1Mo alloy is being considered by been successful in reducing the chromium the American Society for Testing of Ma- content to 12 percent. One 12 percent terials (ASTM) and by the American So- chromium substitute has about three times ciety of Mechanical Engineers (ASME) the sulfidation-resistance of, and approx- boiler and pressure vessel code commit- imately equivalent mechanical properties tee for final certification. Since use of the to type 310 stainless steel.10 material entails fabrication and inspection ● The Bureau of Mines’ study of low-chromi- cost savings, as well as a materials cost re- um stainless steels for high-temperature, duction, prospects for successful substitu- oxidation-resistant applications. Research tion are good if it is approved5 6 (table 7-4, has shown that steels having 8 to 12 per- item 1). cent chromium with additions of alumi- ● NASA’s comparison of the mechanical num and silicon can have excellent oxida- properties and oxidation and corrosion re- tion-resistance and mechanical properties sistance of reduced chromium alloys with (to 800° C), These alloys are potential sub- those of type 304. One steel, containing 12 stitutes for 18Cr-8Ni stainless steels in percent chromium, 10 percent nickel, 1.5 ———— percent silicon, 1 percent aluminum (Al), 7Joseph R. Stephens, Charles A, Barrett, and Charles A. Gyorgak, “Mechanical Properties and Oxidation and Corrosion 2 percent molybdenum, and 2 percent Resistance of Reduced-Chromium 304 Stainless Steel Alloy s,” manganese (Mn), demonstrated properties NASA Technical Paper 1557, November 1979. that compare favorably with 304 stainless ‘J. S. Dunning, An iron-Aluminum-Molybdenum Alloy as a Chromium-Free Stainless Steel Substitute, U.S. Department of the Interior, Bureau of Mines Report of Investigations 8654 (Wash- ‘Robert R. Irving, “What’s This Steel They’re Raving About ington, DC: U.S. Government Printing Office, 1982). Down in Tennessee?” Iron Age, June 25, 1982, ‘J. S. Dunning, M. L. Glenn, and H. W. Leavenworth, “Sub- ‘V. K. Sikka and P. Patriarca, Data Package for Modi~ied 9Cr- stitutes for Chromium in Stainless Steel s,” Metal Progress, IMO Alloy [Oak Ridge, TN: Oak Ridge National Laboratory, De- October 1984, p. 23. cember 1983). l’JIbid., p. 23. Ch. 7—Substitution Alternatives for Strategic Materials ● 273

some applications. Further long-range research to qualify other important properties such as high-temperature stability, weldability, and age-hardening characteristics is underway .11 ● Research sponsored by the Bureau of Mines at the Inco Alloy Products Research Center aimed at replacing some of the chromium now needed for stainless steels used in corrosive environments. The findings suggest that it may be feasible, with additions of nickel, molybdenum, copper, and vanadium, to produce 9 percent chromium austenitic stainless steels with corrosion resistance, hot working behavior, weldability, and mechanical properties comparable to those of conventional grades. These low-chromium alloys, while not adequate for more severe environments, could be used in decorative, aqueous, and some industrial applications” (table 7-4 item 3). ● Allegheny Ludlum Steel Corp. Research Center’s development of a theoretical model for devising new reduced chromium alloys that would duplicate the excellent mechanical properties of type 304 stainless steel, although not its corrosion resistance.

Actual alloys have not been developed Photo credit US. Department of the Interior, Bureau of Mines from these theoretical compositions, 6 16 An 80-pound heat of an experimental low-chromium which range from to percent chromi- stainless steel is poured into a split steel mold at the um, but some of them could be suitable as Bureau of Mines, Albany Research Center substitutes in noncritical applications13 (table 7-4 item 5). With heat treatment, the Fe-Mn-Al steels • Various researchers’ work with iron-manganese-aluminum (Fe-Mn-Al) steels. The Fe- demonstrate excellent mechanical proper- Mn-Al steels contain no chromium, but ties, in some cases as good as or better than may consist of up to one-third manganese, type 304. In addition, they are 10 percent lighter (and have greater strength-to-weight another strategic material. The high aluminum content of the Fe-Mn-Al steels pro- ratios) than nickel-chromium stainless vides oxidation resistance, Though most steels, Though the economics depend on of the work is still preliminary, these alloys the relative costs of manganese, aluminum, chromium, and nickel and the size show promise as replacements for 300 ser- of the production runs, Fe-Mn-Al alloys ies (chromium-nickel) stainless steels in are likely to be less costly than 300 series some moderately corrosive environments. 14 15 grades (table 7-4, item 6). ‘l Ibid., p. 23. ‘2S. Floreen, “An Examination of Chromium Substitution in Stainless Steels, ” Metallurgical Transactions A, November 1982. 14 Samir K. Banerji, “The 1982 Status Report on Fe-Mn-Al 13R. A. Lula, ‘‘Potential Areas for Chromium Conservation in Steels, ” as cited in Technical Aspects of Critical Materials Use Stainless Steels, ” in Technical Aspects of Critical Materials Use by the SteeI Industry, ” vol. IIB, NBSIR 83-2679-2, June 1983. by the Steel Industry, vol. 11A, NBSIR 83-2679-2 (Washington, 1’Rosie Wang, “New Stainless Alloy is Less Costly, ” Ameri- DC: U.S. Government Printing Office, June 1983). can Metal Market, Sept. 19, 1983, 274 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

Information requirements for stainless steel ising substitutes for stainless steel used in the substitutes are under evaluation by the Metal catalytic converter shell of automobiles, ARMCO Properties Council, Inc. (MPC), an organiza- reports that its 6.6 percent chromium alloy 6SR tion set up by industry and technical societies (scale resistant) is more oxidation- and creep- in 1966 to provide engineering data on mate- resistant than 409 stainless steel. Unlike, the other rials, MPC established a Task Group on Criti- substitutes described above, the SR alloys (which cal Materials Substitution in 1981. An initial also include 12SR, a potential 12 percent chro- MPC task group report,16 issued in 1983, noted mium substitute for some 18 percent chromium a gap on the technical information about alter- grades) are being researched in the producer in- native low-chromium compositions for stain- dustry. As a result, the institutional barriers to less steel. Most of the available data was from the acceptance of these SR alloys are relatively laboratory investigations, with little informa- low 18 (table 7-4, item 7), tion developed about processing and fabrica- These substitutes are all in various stages of de- tion of these compositions, or about how they velopment. Other than the modified 9Cr-1Mo al- held up in service environments—essential loy, which is undergoing certification, the information if industry were to use these sub- replacement alloys have not yet advanced beyond stitutes during a protracted supply shortage. the laboratory level of investigation in the United Subsequently, MPC has decided to focus on States. The development of the chromium-free chromium substitution options for 18 percent substitutes, such as the ferritic Fe-Al-Mo and the chromium-8 percent nickel stainless steels used austenitic Fe-Mn-Al alloys, designed for ele- in room-temperature to moderately high-tem- 17 vated-temperature oxidation/corrosion-resistant perature (up to 1,2000 F) applications. These service, probably involve the longest range, high- applications comprise the highest volume uses est risk research. The low-chromium alloys also for stainless steels, including many for which require additional study, but technical success a decrease in corrosion resistance may be ac- is in general less speculative, Extensive addi- ceptable to some consumers in times of a sup- tional testing of mechanical properties, phase sta- ply shortage. MPC is now evaluating future bility, and other physical properties of any of the steps, such as developing alternative compo- newly designed alloys, as well as ease of proc- sitions that duplicate all metallurgical and me- essing, could take several years. Even if these al- chanical properties of the popular grades of loys overcome the initial hurdles, economic fea- steel, except corrosion resistance. MPC is pre- sibility will remain in question. Without large paring a survey to gain input from industry. markets in place, these alloys cannot be produced The AISI 400 series, accounting for about 20 cheaply enough (due to poor economies of scale) percent of domestic stainless steel production, to compete effectively with the current high- is the second largest class of stainless steels. volume stainless steel products. Type 409, which contains approximately 11 percent chromium, is the second most popu- Advanced Surface Treatment lar stainless steel. It accounts for about half the Technologies and Processes production of 400 series grades and is used Most of the chromium in stainless steel is principally in the catalytic converter housings present solely for corrosion and oxidation rein automotive exhaust systems. sistance. Chromium’s secondary roles can be ARMCO is exploring several lower chromium met with the use of other alloying elements or alternatives to ferritic (400 series) stainless steels processing techniques. Since corrosion and ox- containing 12 percent chromium, These new idation resistance is only needed at the surface, alloys, still at the laboratory stage, may be prom- the chromium on the interior of the stainless —. .- ——-.—— —.— leThe Meta] Properties Council, Inc., “Task Group on Critica] leJoSeph A. Douthett, “Substitute Stainless Steels With Less Materials” (New York: The Metal Properties Council, Inc., 1983). Chromium, ” in Conservation and Substitution Technology for ITprivate communication with R. A. Lula and officials of the Critical Materials, vol. I, NBSIR 82-2495 (Springfield, VA: Na- MPC. tional Technical Information Service, April 1982). Ch. 7—Substitution Alternatives for Strategic Materials . 275 .— . steel is nonessential, Surface modification tech- nation of surface porosity, and can produce a niques can endow low- or no-chromium ma- wear-resistant surface that could extend the life terials with corrosion and oxidation resistance of steels used in metal cutting and grinding. sufficient to substitute for stainless steels in LAYERGLAZING can be used to build entire some applications, Advanced surface treat- parts (e. g., turbine discs) through continuous ment techniques may also improve wear resis- melting of very thin layers of alloy at the sur- tance, thus extending product life. face. Such processes permit tight control over the composition of the alloy and can also re- Existing fully developed surface treatment duce part rejections, since flaws detected in technologies—e.g., plating steels with chro- processing can be reglazed immediately. While mium, nickel, cadmium, or zinc or welding a laser techniques have impressive capabilities, stainless steel overlay to nonchromium alloys— these processes are not presently as cost effec- have been used for decades in a large number tive as some of the more established surface of applications, but there are constraints in modification practices, such as roll bonding. their use. Fabricated parts and brittle metals cannot be clad, for example, and clad materials A recent technological advance, ion implan- are difficult to weld. Claddings sometimes sep- tation, holds long-term promise as a way of im- arate from the base metal, with potentially dis- proving the wear- and corrosion-resistance of astrous results. parts, thus helping conserve strategic materials through extending product life or reducing the A number of advanced processes now under need for chromium in corrosion-resistant ap- development or in the early stages of commer- plications. In ion implantation, high-energy cialization may broaden applications for sur- ions of alloying elements are embedded into face treatment. One advanced coating tech- the surface of the workpiece to produce a sur- nique that can compete directly with stainless face layer of 100 to 1,000 angstroms that is an steels in some applications is the DILEX proc- integral part of the substrate. Advantages of ess, This technique involves the diffusion of this technique include excellent coating-sub- chromium (or other elements) into the surface strate adhesion (owing to the lack of a sharp of a ferrous part that is placed in a lead bath. boundary between the two), no dimensional al- The surface alloy typically contains 25 percent teration of the substrate, and low processing or more chromium (and possesses excellent temperatures. Elements such as carbon, nitro- corrosion and oxidation resistance), while the gen, chromium, and nickel can be implanted, underlying substrate contains little chromium. but the resulting properties are not as depen- The cost of continuously processed DILEX dent on the type of ion as on the mechanical strips is currently competitive with stainless deformation it causes to the matrix surface. steel products. In addition, parts and compo- Therefore, the choice of an ion is based on its nents that are difficult to fabricate from stain- mechanical effect in the host material, not less steel can sometimes be produced more 19 on its own inherent corrosion- or oxidation- easily with the DILEX process. 20 resistant properties. Surface alloying with lasers (by processes Ion implantation has been shown to extend commonly referred to by their United Technol- the life of cobalt-based cemented carbides and ogies trade names, LASERGLAZING and tool steels when carbon and/or nitrogen are ap- LAYERGLAZING) can provide corrosion and plied. Implantation of yttrium in diesel fuel in- oxidation protection and wear resistance to jection pumps reportedly dramatically im- materials. LASERGLAZING can improve ero- proves wear resistance in comparison with sion and corrosion properties through elimi- chrome plating. Bureau of Mines-supported research has shown that ion implantation can ~eRa}l J, L’a n Th~’n e, “Conservation of Critical Metals Utiliz- ing Su~face Alloy ing, ’ ‘as cited in Conser~ration and Substitution TmhnoIogj for CriticaJ ,MateriaJs, v~l. II, NBSIR 82-2495 April Zochar]es River Associates, INeIIF Metals Processing Technol- 1982. ogies, OTA contract report, December 1983, p. 46. 276 . Strategic Materials: Technologies to Reduce U.S. Import Vulnerability protect plain carbon steels against mild aque- Chromium Substitution in Alloy Steels ous corrosion. About 15 percent of U.S. metallurgical chro- Ion implantation techniques, first developed mium (10 percent of total domestic chromium) in Great Britain, are fully commercialized in is consumed in alloy steels, Chromium is used the semiconductor industry. For metallurgical in these steels primarily as a hardening agent. applications, ion implantation is at the opera- Although other elements, such as molybde- tional prototype stage—commercial machines num, silicon, and nickel, can be used for this are being developed, but there has been little purpose, chromium and manganese are cur- market penetration.21 Substantial technical and rently the most cost-effective hardenability en- economic constraints impede its use for large- hancers, Because chromium’s hardenability volume metallurgical uses. To be effective in characteristics are more easily replicated than providing corrosion resistance, ionic density its corrosion and oxidation attributes, fewer must be much greater than in semiconductor technical problems exist in developing ade- applications. Commercial equipment capable quate substitutes for alloy steels than for stain- of handling this higher beam density has yet less steels. In its 1978 Chromium Utilization to be developed and appears to be prohibitively study, the NMAB concluded that 80 percent expensive at this time. High capital costs and of the chromium used in alloy steels could be limited product size and production rates are replaced either now or after a short-term R&D key constraints acting against this technique’s effort. widespread use. The chromium contents of alloy steels typi- All surface treatment techniques have draw- cally range from less than 1 to 4 percent, al- backs, If the surface layer fails, the exposed though some grades have as much as 9 percent. substrate would be vulnerable to corrosion. Compared to carbon steels, these steels have Fabrication and construction with surface- improved strength, wear resistance, and hard- treated materials is more difficult and costly enability. They are chosen when parts (e.g., than with monolithic materials. Special weld- bearings, gears, shafts) will be highly stressed ing and joining techniques must be used to as- over a long service life. sure that the base material does not become exposed, Edges of the material must be treated Several alternative chromium-free alloy com- to maintain protection. These welding and join- positions are under investigation as substitutes ing techniques are subject to separate research for large-volume alloy steels. These alloys have and development efforts. In addition, surface been designed to duplicate the most important treatment can be very expensive, so there are properties of the steels they would replace, so major efforts aimed at improving the process that processing changes and design changes economics of these techniques. could be minimized if they were to be used as replacement steels. Surface treatments also face nontechnical and noneconomic hurdles, Designers and con- Work at the International Harvester Co., sumers often resist use of surface modification sponsored by the Bureau of Mines, was aimed processes in new applications where solid at the design of chromium-free substitutes for monolithic alloys perform satisfactorily. two alloy steels that together account for about 60 percent of the chromium used in constructional alloys, or about 6 percent of total U.S. chromium demand. These Cr-Mo grades (AISI 4100 series) and the Ni-Cr-Mo grades (8600 ser- ZICarnegie-Mellon university, Department of Engineering and ies) have been used for decades, and as a re- Public Policy, Department of Social Sciences, and School of sult, current designs for parts and manufactur- Urban and Public Affairs, The Potential of Surface Treatment Technologies in Reducing U.S. Vulnerability to Strategic Materials, ing processes are adapted to these steels. The Pittsburgh, PA, April 1984. chromium in these grades was substituted with Ch. 7—Substitution Alternatives for Strategic Materials ● 277 manganese, molybdenum, and nickel. Silicon, mium price increases that would be expected another common hardening agent, was not under steady economic and political condi- used because alloy steel producers have little tions. The other replacements (Mn-Ni-Mo for experience with the high silicon levels (0,6 per- 8600 and both Mn-Ni-Mo and Mn-Mo for 4100) cent Si) required to achieve the desired would become economical only with the dras- hardenability. The compositions of the Mn-Ni- tic price increases (on the order of tenfold for Mo and Mn-Mo replacement steels are shown chromium ore and fourfold for ferrochromium) in table 7-5. that would accompany severe chromium supply disruptions, such as a complete cutoff from To minimize the disruption entailed in shift- South African supplies. To facilitate their use ing to new steels, the new chromium-free steels in such an emergency, the researchers recom- were designed to be produced using prevalent mended additional testing of these steels to de- U.S. production practices. Moreover, the ex- termine equivalency of these steels under typi- perimental substitutes have the same micro- cal production practices by U.S. producers .22 structure, heat treatment response, and mechanical properties as the steels they would Development of these alternative steels was replace, and therefore would provide equiva- facilitated through International Harvester’s lent engineering performance. So far, actual CHAT (Computer Harmonizing Applications production of these steels has been limited to Tailored) system, which first identifies metal- 100-pound” experimental test heats, thus the lurgical properties needed for particular parts steels’ characteristics in large-scale commer- and then selects the least-cost alternatives from cial production have not been demonstrated. AISI and SAE steels that are available. Use of computerized information systems of this sort The second phase of this program—to pro- could facilitate the development of a strategic duce larger heats for testing–was delayed, materials substitution information system that owing to the financial status of the contractor. could be used in an emergency. However, in 1984 the Bureau released a request for proposal which calls for about a 3,000- Reducing Cobalt and Chromium Used in pound test heat. When completed, this phase of the program will provide better information Superalloy for High-Temperature Applications for the possible transfer of this technology to Superalloys, used in jet engines, industrial industry. gas turbines, and a widening spectrum of other In the original economic analysis (based on industrial applications, account for 30 to 40 1981 raw materials costs), these steels were not found to be cost effective. However, the Mn- Zzcar] J. Keith and V. K. Sharma, Development of Chromiu m-Free Mo replacement for the 8600 series steels may Grades of Constructional Alloy SteeJs, U.S. Department of the In- become economical with the moderate chro- terior, Bureau of Mines’ contract No. JO1 13104, May 1983.

Table 7-5.—Ladle Analysis Ranges for the Chrome-Free Replacement Compositions for Standard 4118 and 8620 Steels (in percent)

4100 type steel 8600 type steel AISI-4118 Mn-Ni-Mo Mn-Mo AISI-8620 Mn-Ni-Mo Mn-Mo Chemistry ladle range steel replacement replacement steel replacement replacement Carbon...... 0.18-0.23 0.16-0.21 0.16-0.21 0.18-0.23 0.16-0.21 0.16-0.21 Manganese ...... 0.70 0.90 1.00-1.30 0.70-0.90 1.00-1.30 1.00-1.30 Chromium ...... 0.40-0.60 r Nickel ...... 0.08-0.15 0.15-0.25 0.25-0.35 0.15-0.25 0.25-0.35 0.35-0.45 r— residual silicon range = 0, 15-().35°/0, sulfur = O 05°/0 maximum, phosphorus = 0.04°/0 max!mum SOURCE Carl J. Keith and V K Sharma, Deve/oprnerrt of Chromium-Free Grades of Constructfona/ A//oy Stee/s, U S. Bureau of Mines contract No JO1 13104, May 1983 278 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

percent of U.S. cobalt consumption. Only a Each individual component in the hot sec- small portion of U.S. chromium consumption tion of a jet engine, such as turbine blades, goes into superalloys—about 3 percent in 1982. vanes, and discs, requires a superalloy with a This amount is in the form of highly purified different range of properties—so that develop- ferrochromium and chromium metal. Other ment of an adequate substitute for one part materials used in superalloys include nickel, does not mean that it can also substitute for aluminum, titanium, and a number of minor other parts, In addition, each of the U.S. jet en- alloying elements, including columbium (nio- gine manufacturers maintain separate speci- bium) and tantalum—two second-tier strategic fications for superalloy that can be used in materials for which the United States is import- each part. Today, there are well over 100 su- dependent. peralloys used domestically, but some of these may be certified for use only by one engine While many superalloys do not contain co- manufacturer, Table 7-6 shows representative balt, the use of cobalt has increased over time superalloys used in the different parts of the because it improves the weldability of some su- hot sections of current jet engines, peralloys, contributes to their strength, and also enhances oxidation and corrosion resistance. As superalloy have become more special- Chromium is currently essential in all super- ized, their costs have escalated, so that it often alloy. takes a decade or more and several million dollars to bring a promising new alloy even to the Importance of Superalloy to the Aerospace Industry engine testing stage. Initial development of a new superalloy in the laboratory for disc or Improved jet engine performance has been blade applications constitutes only part of the highly dependent on development of new 23 total effort. Prior to engine qualification and superalloys that extend the maximum oper- use, a complete design data base, specifications ating temperature of the engine yet are still able and standards, component and machine test- to withstand the high mechanical and thermal ing, and commercial-scale heats must be dem- stress, oxidation, and hot corrosion that occurs onstrated, Without a pressing need for substi- in the hot section parts of a jet engine. Through tutes, industry alone is unlikely to make this complex adjustments in composition and proc- kind of commitment. essing, the temperature capability of superalloy has been extended from about 1,4000 F Substitution Prospects in 1940 to about 1,9500 F today (some superalloys now in use have operating temperatures From the standpoint of reducing U.S. vulner- of about 2,100° F), as shown in figure 7-1. In ability, backing out or reducing cobalt and addition, the required life of various compo- chromium use in superalloy would be highly nents (the minimum predictable time before desirable–but only if they could be achieved overhaul or replacement) has also increased without impairing the push toward higher per- significant y. formance in military applications. Continued increase in performance is the primary objective behind most government and industrial re- ZsThe ana]ysis of superalloy substitution potential in this section is drawn in large part from Richard C. H. Parkinson, Sub- search aimed at developing new hot-section stitution for Cobalt and Chromium in the Aircra-ft Gas Turbine materials, although many of these materials Engine, OTA staff background paper, September 1983. It should could have the side benefit of reducing strate- be noted that superalloy use is spreading to many nonaerospace applications, such as oil country tubulars, heavy duty tooling, gic materials requirements. Figure 7-2 shows pulp and paper production, medical and dental uses, and glass NASA estimates of the approximate date for manufacture. In these applications, superalloy were substituted introduction of some of these higher tempera- for other materials that could again be used in an emergency, although possibly with some performance costs. In the case of ture materials in aircraft. These materials are gas turbine engines used in jet aircraft, however, alternatives discussed later in this chapter. to superalloy are not currently available, and moreover are not likely to be developed in this century. Thus, aerospace uses re- Superalloys will almost certainly remain the main the most demanding and critical superalloy applications. primary structural material in turbine blades Ch. 7—Substitution Alternatives for Strategic Materials . 279

Figure 7-1 .—Temperature Capability of Superalloy 2,000

1,500

1.400 1940 1950 1960 1970 1980 Approximate year available SOURCE Garrett Turbine Engrne Co for at least the next 20 to 30 years. During this Near-Term Prospects for Cobalt Substitution (to 1990) period, complete elimination of cobalt and Cobalt supply insecurities in the late 1970s chromium in jet engines is highly unlikely, al- led U.S. jet engine makers to substitute already though use of alternate alloys, wider use of developed nickel-base superalloy for cobalt- coatings, and adoption of more efficient processing technologies could reduce use of these base alloys wherever possible. A conspicuous example of this was the substitution of the al- materials in individual applications. ready developed and qualified cobalt-free su- In the long term, probably not before the sec- peralloy Inconel 718 for Waspaloy (13 percent ond decade of the next century, a variety of cobalt) in turbine disk applications below 7000 nonmetallic materials (e. g., advanced ceram- C. Inconel 718, which contains a large amount ics and carbon-carbon composites) may be de- of niobium, a strategic material imported veloped sufficiently to be widely used in some largely from Brazil, continues to be used in hot-section parts of human-rated jet engines. these applications owing to its comparative If so, chromium, cobalt, and other metals then cheapness and ease of fabrication. Other super- may begin to be phased out of jet engines. Ac- alloy substitutions included replacement of tual production dates for the first engines con- cobalt-base vanes with cobalt-free nickel-base taining significant amounts of nonmetallic ma- superalloy. terials is likely to be well beyond the year 2000. Cobalt prices are unlikely to stimulate fur- In the sections that follow, near-term (to ther substitution in the near term. Easy to ac- 1990), medium-term (1990 to 2000), and long- complish substitutions have already taken term prospects for reduced chromium and co- place, As a practical matter, adoption of lower balt usage in jet engines are selectively dis- chromium or cobalt substitutes by engine cussed, under the assumption that R&D efforts makers is not likely unless substantial improve- continue at approximately their present levels. ments in properties, higher temperature capa- Institutional factors that could affect the extent bilities, or ease in fabrication accrue, as well. to which various substitution potentials are adopted are discussed in the concluding sec- Processing Advances. —As a result, the greatest tion of this chapter. opportunities for cobalt and chromium conser- 280 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

Table 7-6.—Typical Structural Alloys Used for Hot-Section Components

Nominal operating conditions Surface Composition (percent weight) temperature Component Alloy Ni co Cr Fe Form Stress (oF) ,. Combuster liner . . . . Hastelloy X 48 15 22 18.5 Low 1600 HA-188 22 41 22 — Low 1600

Turbine valve MA-754 78 — 20 1 1900+ ‘ MAR-M 200 60 10 9 — 1900 MAR-M 247 60 10 8 — Moderate 1800-1850 10 low MAR-M509 10 55 23.5 — cc 1800 + X-40 105 56 25.5 — cc 1800 + IN-713 72.5 — 13.5 — cc 1600 Rene-77 55 15 15 — cc 1600 –Large grains– Turbine blade Alloy 454 62.5 5 10 — se 1900 MAR-M200 60 10 9 — DS 1850 MAR-M247 60 10 8 — CC, DS 1800-1850 B-1900 65 10 8 — DS High 1800 Rene-80 60.5 95 14 — cc 1750 IN-713LC 72.3 — 12 — cc 1600 Rene-77 55 15 15 — cc 1600 –Small grains– –Rim temperature– Turbine disc. IN-100 56 18,5 12.5 — PM +HIP, PM +forged 1300 MERL-76 54.1 18,5 12.4 — PM +HIP, PM +forged 1300 Astroloy 55.5 17 15 — PM +HIP, PM +forged, 1300 forged Waspaloy 58 13,5 19.5 — Forged 1250 Rene-95 61.3 9 14 — PM +forged High 1200 IN-718 53 — 19 18 Forged 1200 IN-901 45 — 12.5 34 Forged 1100 A-286 25.5 — 15 55 Forged 1000 –Small grains– Case Waspaloy 58 13.5 19,5 — Sheet, forged 1300 IN-718 53 — 19 18 Sheet, CC, forged High 1200 IN-901 45 — 12.5 34 Forged 1100 A-286 25.5 — 15 55 Forged 1000

vation in superalloys in the near term lie in are close to their final shape, can dramatically continued commercialization of advanced reduce reject rates and scrap generation in processing technologies, which have the in- fabrication of engine components. Two powder cidental effect of improving cobalt or chro- metallurgy processes used in conjunction with mium yields in parts or of extending the life each other—hot isostatic pressing (HIP) and of components. isothermal forging—are now used commercially, although equipment costs are high. Several of these new metals processing technologies are currently being adopted by indus- Improved material utilization would be try, as is discussed in chapter 6. Powder metal- achieved if HIP parts did not have to be hot lurgy, with its potential to produce parts that worked. This is now essential in order to over- ——.

Ch. 7—Substitution Alternatives for Strategic Materials ● 281

Figure 7-2.— Temperature Capabilities of Turbine Blade Materials

800

SOURCE’ National Aeronautics and Space Administration come fatigue problems, but reduces product ess, first developed in 1968. Although still con- yields. The U.S. Air Force Office of Scientific sidered an emerging technology, rapid growth Research is supporting research in this area to in ODS production is expected as new appli- improve the final quality of superalloy com- cations are accepted. ponents. All currently available ODS superalloys are Hot isostatic pressing can also be used to re- cobalt free and are marketed by the Inco Al- juvenate turbine vanes and blades, potentially loy Products Co. One ODS alloy, MA-754, has doubling the operating life of parts. So far, HIP been used for years in high-pressure turbine rejuvenation has been used primarily in indus- vanes of military aircraft produced by General trial gas turbines but is not yet widely used for Electric. New applications for ODS alloys in worn aircraft parts. As discussed in chapter 6, combustor linings and turbine blades are being life cycle extension techniques are under in- investigated as part of NASA’s Materials for tensive investigation by the Air Force, and Advanced Turbine Engine [MATE) Program. some jet engine parts are now being saved (rather than sold as scrap), pending possible im- NASA and Pratt & Whitney Aircraft are cur- provements in rejuvenation technologies. Most rently evaluating another cobalt-free ODS alloy obsolete jet engine parts, however, continue to (MA-956) for use in combustor linings. Early be sold as scrap, and most of the scrap is down- results suggest that MA 956, coupled with de- graded to less demanding uses. sign changes, could extend the operational life By the end of the 1980s, additional jet engine of these linings by up to four times compared applications for cobalt-free oxide dispersion to existing linings. It can also be used at a strengthened (ODS) superalloy are probable. higher temperature than a commonly used These nickel- and iron-based superalloys are liner material, Hastelloy X (which contains 1.5 produced through a mechanical alloying proc- percent cobalt).

38-844 0 - 85 - 10 , QL 3 282 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

Although ODS alloys are superior at high Aside from its absolutely essential role in cor- temperatures (i.e., 2,100° F), their poorer per- rosion resistance, the high levels of chromium formance in intermediate temperature ranges throughout monolithic superalloy may not be (i.e., 1,4000 to 1,600° F) has so far prevented needed. In theory, conservation of chromium their use in turbine blades. However, NASA, and improved mechanical properties could be in conjunction with the Garrett Turbine Engine achieved if a safe way could be found to put Co., is evaluating the recently developed cobalt- chromium only at the surface of components, free ODS alloy MA-6000, for turbine blade ap- leaving the rest of the part chromium free. Pres- plications. Research suggests that an increase ently, coating or cladding of a chromium-free in surface metal temperature of 1500 F over the base alloy is not acceptable, owing to the pos- best current superalloy blade material may be sibility of a disastrous crack forming in the feasible. coating. Other advanced surface treatment processes have yet to be applied for the spe- ODS alloys are more expensive than conven- cific purpose of reducing chromium content. tional superalloy. With expanded markets, however, finished part costs have declined. Ad- From the above discussion it would appear ditional price reductions could arise if the mar- that prospects for cobalt substitution in super- ket expands into turbine blade and industrial alloy are quite limited in the near term, and applications. Current production of these al- that few available alternatives are ready for use loys is about 120,000 pounds per year, but is by engine manufacturers, Chromium substitu- growing rapidly. tion prospects are even more limited.

Coatings.—Continuing near-term progress in Medium-Term Prospects for Further Cobalt and enhancing the surface properties of hot-section Chromium Substitution (1990-2000) components through use of coatings is also expected. Coatings of one sort or another have Over the next 10 to 15 years, only substitute been used since the 1960s and have extended materials that are now approaching qualifica- the life of parts significantly. Thermal barrier tion and approval for jet engine use are likely coatings (TBCs), now used on combustor lin- to be useful in reducing U.S. dependency on ings and vane platforms, provide oxidation and imported strategic materials, The long lead hot corrosion resistance through a metallic time entailed in testing and certification of new bond coat (often containing chromium), which, materials and the time it takes for designers to in turn, is covered with a thin ceramic coat to become familiar with them make it unlikely provide thermal insulation. TBCs have yet to that new materials or processes not now be- be applied to turbine airfoil surfaces because ing actively developed will be in commercial peeling problems have not been completely use before the last half of the 1990s. overcome. However, they may may be used on Several cobalt-free or low-cobalt alternative airfoil surfaces by the end of the decade. materials have been investigated under NASA Coatings (or other surface treatments) may sponsorship (Conservation of Strategic Aero- some day permit reduced use of chromium in space Materials Program, established in 1981, superalloys—although near-term prospects are and pre-COSAM research activities.) These very limited. Chromium’s primary function in substitutes could provide alternative composi- superalloy is to provide oxidation and hot- tions for six widely used superalloy. Table 7- corrosion resistance at the surface of compo- 7 shows currently used superalloys selected for nents. Most superalloy contain several times substitution research. Preliminary laboratory as much chromium as strictly needed to pro- experiments suggest that cobalt may not be vide this surface protection. As an insurance needed in the high-volume Udimet 700 type su- measure, chromium is added throughout the peralloy (18 percent cobalt) which is used in alloy, even though it is only needed at the turbine discs and blades. One evaluation of the surface. initial COSAM research hypothesized that Ch. 7—Substitution Alternatives for Strategic Materials ● 283

Table 7-7.–Nickel-Base Superalloy Selected for Cobalt Substitution Research by NASA

Typical engine Cobalt content Alloy application Form Remarks (% weight) WASPALOY . . . Turbine disc Forged Highest use wrought alloy in current 13.5 engines UDIMET-700 . . . Turbine disc Forged Similar alloys used in various forms and 18.5 (LC) ASTROLOY Turbine disc as-hip-powder applications (RENE 77) . . . . . Turbine blades Cast MAR-M247 . . . . Turbine blades and wheels Cast Conventially cast, DS and single crystal 10,0 RENE 150 . . . . . Turbine blades DS-Cast Highly complex directionally cast alloy 12.0 SOURCE Adapted from Joseph R Stephens, A Status Review of NASA COSAM (Conservation of Strafegfc Aerospace Mafer)als) Program, NASA Techn{cal Memoran dum 82852 (Springfield, VA National Techn!cal Information Service, May 1982)

while definite conclusions are premature, it als over the long run, however, if it turns out may be possible to cut by one-half or even elim- that cobalt provides a performance benefit over inate cobalt now used in some nickel-based su- the experimental prototypes. peralloys with little or no effects on mechani- One group of these new processing methods cal properties or environmental resistance. (An is “rapid solidification, ” in which metals are estimated 2.15 million pounds of cobalt was solidified so quickly that the resulting distri- contained in nickel-based superalloy primary bution of elements is nearly homogeneous, hav- products in 1980, according to the NMAB. This ing few inclusions that could initiate fatigue comprised about one-eighth of total apparent 24 cracks. Moreover, previously unattainable al- cobalt consumption in that year. ) loy compositions with superior properties can The COSAM substitutes are still in the lab- be obtained in some cases, Experimental oratory stage of development and are many cobalt-free superalloy powders produced years away from actual use in a jet engine. In through various rapid solidification processes theory, the COSAM alternatives could be have been shown in early experiments to have brought on line more quickly than an entirely some advantages over conventionally proc- new material, since only slight adjustments in essed alloys. Detailed information on rapid manufacturing processes may be needed to solidification processes and their prospects as produce the low-cobalt substitutes. However, substitutes for strategic materials is provided to commercialize these alloys fully could still in the Advanced Materials section of this chapter. require 6 to 7 years and $6 million to $9 mil- The capability to produce directionally solidi- lion per application—a commitment that en- fied eutectic superalloy is another of the re- gine makers will find difficult to justify, given cent processing advances. Over the past two current low-cobalt prices. Hence, their post- decades considerable effort has been devoted COSAM development may be delayed until a to developing this technique. When superalloy perceived need arises. are produced in this manner, they are strength- Over the next 10 to 15 years, strategic ma- ened by the formation of microscopic carbide terials conservation could also be a side benefit or intermetallic fiber reinforcements. Most of from several advanced superalloy production the experimental alloys have comparatively techniques that are approaching commercial- low levels of chromium and cobalt—4 percent ization—simply because some of the experi- and 3 to 10 percent respectively. As with other mental prototypes and research materials happen advanced processes and materials, the key ob- to contain little or no cobalt. These processes jective of eutectics development is not to con- may not necessarily conserve strategic materi- serve strategic materials, but to increase temperature capabilities of turbine blades and Z4Nationa] Materials Advisory Board, Cobalt Conservation vanes. Eutectic superalloy could increase the Through Technological Alternatives, National Research Coun- allowable operating temperature of these com- cil, Publication NMAB-406 [Washington, DC: National Academy ponents by about 100° F compared to currently Press, 1983), pp. 24 and 47. available single-crystal alloys. 284 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

Although work on eutectic alloys is progress- will comprise a declining portion of superal- ing, they have yet to receive qualification for loy use. It is also possible that, over this period, engine use. Technical problems include inferi- a breakthrough in basic science will occur or transverse properties and poor oxidation which will lead to a better understanding of the and corrosion resistance. Cost of these alloys precise role of cobalt in superalloy, with pos- is high because the processing times are high; sible reductions of cobalt in the design of new a eutectic blade can be withdrawn from the fur- alloys. Improved understanding of the role of nace at only about one-fourth inch per hour, cobalt and other strategic materials in super- However, eutectic R&D has had active support alloy is a key purpose of the COSAM program. by engine producers (General Electric and United Technologies) as well as scientific sup- Long-Term Prospects port at government laboratories and univer- Over the long term, several classes of new sities. materials that are completely free of cobalt or The medium-term (1990-2000) prospects for chromium may come into use. These alterna- reducing cobalt and chromium in jet engines tives are being actively pursued because of are difficult to assess because new materials their potential to extend the maximum oper- will be used as new jet engines are introduced ating temperatures (and thus performance) of into military and civilian aircraft. The selec- turbine blades beyond the current limits of tion of these materials will be performance around 1,150° C or 2,100° F. These materials driven, and while some materials may contain include ceramics, composites, and monolithic little or no cobalt, others almost certainly will. intermetallic compounds (or long-range order Development of the COSAM alternatives to the materials) and are discussed in detail in the point of commercial use is possible over this next section. Table 7-8 summarizes potential period, but these materials will serve as sub- applications for these advanced materials in stitutes for currently used superalloys which the hot section of jet engines,

Table 7-8.—Use of Structural Materials Under Development to Reduce Cobalt and Chromium Usage in Hot-Section Parts

Composition (percent weight) Material co Cr Suitable components Rapid solidification processed superalloy . . Varies Varies Combustor liners; cases; turbine blades, vanes, discs, seals. Long-range order (intermetallics): Ni ...... — — HP turbine discs (combustor liners; HP turbine vanes, blades) Ti — LP turbine discs, blades, vanes; cases, Fe j I 111 I 1 ; I j ~ 1 : 111 j 11 I ; 1 I I 11 I 111 I I ~ 111 ~ — Combustor liners; LP turbine discs, blades, vanes; cases Directionally solidified eutectics ...... 3-1o 4 Turbine blades, vanes Oxide dispersion strengthened superalloys . . — 15-20 Turbine vanes; (combustor liners, turbine blades). Fiber-reinforced (metal matrix composite) superalloy ...... — 15 (matrix) Turbine blades, vanes; combustor liners; cases Monolithic ceramics ...... — — Turbine discs, vanes, blades, seals; cases; combustor liners Ceramic-ceramic composites ...... — — Turbine vanes, blades, cases Carbon-carbon composites ...... — — Combustor liners; cases; afterburners; nozzles; turbine discs, vanes, blades KEY” HP = High pressure LP = Low pressure. ( ) = Less likely application — = Minimal or none SOURCE: Office of Technology Assessment. ——

Ch. 7—Substitution Alternatives for Strategic Materials ● 285

Advanced Materials

There is currently a great deal of interest in low the use of smaller engines containing less the development of advanced materials such amounts of strategic materials. In an economic as rapid solidification processed materials, sense, advanced materials and materials con- long-range order intermetallics, ceramics, and taining strategic elements may be both substi- composites. This interest is driven by the im- tutes and complements. pressive array of properties these new materi- The various industries involved in develop- als offer. They not only offer enhanced prop- ing and producing advanced materials are do- erties, but often entirely new combinations of ing so because of a belief in the promise of fu- properties, as well, A side benefit of advanced ture economic benefit from the introduction of materials is their use of little or reduced these materials in existing and entirely new ap- amounts of strategic materials. plications, not because they foresee a role for Many advanced materials are still undergo- them as materials substitutes. The advanced ing R&D and have thus far seen limited com- materials industry has the potential to make a mercialization, In selected component appli- large contribution to future U.S. gross national cations, some advanced materials are now product (GNP), The U.S. market for advanced being used. The number of applications for ad- ceramic materials, for instance, has been pro- vanced materials should increase appreciably jected at $5.9 billion by the year 2000, an during the next 5 to 20 years—especially where amount 10 times the 1980 market. 25 major design modifications are not needed. In This emerging U.S. advanced materials in- most critical applications where performance dustry faces global competition, especially standards tend to be exacting, however, they from Japan and Western Europe, in materials will require much more R&D before they see development, processing, and commercializa- widespread use, tion. Today, some processed ceramic materials Although growth in the use of advanced ma- and components of composites are only avail- terials is expected, the overall effect of their able from foreign sources. In some instances, use on future strategic material needs is un- the United States is credited with the basic re- clear. Some major technical problems (e.g., the search on some material components for which brittleness of ceramics, difficulties in repair- Japan now holds most of the processing capac- ing composites, etc.) must be solved before they ity. In others, process licensing has been made can be used in many critical applications. available to U.S. firms for foreign patented Moreover, advanced materials will not neces- materials. sarily be used as direct replacements for ex- Compared to their metallic counterparts, ad- isting materials. In many applications, these vanced materials have relatively brief histories new materials are so different from the alloy of use, and this absence of a proven track rec- substitutes described previously that redesign ord often makes designers and their industries of entire systems is often necessary to benefit reluctant to use them. Different societies ap- fully from their properties. In addition, use of proach institutional barriers to commerciali- strategic materials may just as easily increase zation in different ways. In the United States, as decrease as these new materials are adopted. the standard engineering education still pro- For example, using advanced materials in the vides little, if any, formal training in the use hot section of a gas turbine engine to raise its of advanced materials, Industry must bear the operating temperature may increase the tem- cost of continuing education. In Japan, indus- perature in a cooler section of the engine to a point where it requires the use of strategic Z5U .S. Department of Commerce, A Competiti\re Assessment materials. Yet, using advanced materials (e. g., of the U.S. Advanced Ceramics Industry [Washington, DC: U.S. composites) to make an aircraft lighter may al- Government Printing Office, March 1984), p. xiii. 286 Ž Strategic Materials: Technologies to Reduce U.S. Import Vulnerability tries are willing to introduce advanced mate- While a potential decrease in U.S. consump- rials to the marketplace at a lower level of con- tion of strategic materials is an important ben- fidence in their eventual success than in the efit of ceramic use, the promise of performance United States. The risk of failure is reduced by improvements is the main force driving the de- testing new materials in everyday items such velopment of advanced ceramic materials. The as scissors or high-value glamour products, sought-after properties of advanced ceramics such as sporting goods. include wear resistance, hardness, stiffness, corrosion resistance, and relatively low density The following sections present the current (providing a weight savings that can translate state of the art of these advanced materials, into energy savings), A major attraction, how- and, where known, potential areas for strate- ever, is a high melting point and accompany- gic material savings. It must be kept in mind, ing mechanical strength at high temperatures. however, that many unknowns exist, and the Ceramics offer one of the best possibilities for rapid advance of the science of these materials raising the operating temperature of heat en- could change their prospects in only a short gines and power generating equipment; and as time. the operating temperature in these systems is increased, system efficiency in energy conver- Ceramics sion can increase, resulting in cost savings. The metallic superalloy currently used in jet en Advanced ceramic materials are an emerg- gines limit operating temperatures to about ing technology with a very broad base of cur- 2,000° F, whereas ceramic materials can with- rent and potential applications and an ever- stand temperatures up to about 2,500° F. Com- growing list of material compositions (see table plicated and energy-consuming cooling sys- 7-9). While this dynamic situation makes it dif- tems now must be used—even in relatively ficult to quantify their future impact, it does low-temperature engines such as automobiles— not appear that advanced ceramics will replace to maintain the integrity of metals at operat- any substantial portion of the U.S. demand for ing temperatures. Ceramic materials can also first-tier strategic materials within the next dec- be used to increase the energy efficiency of ade. Beyond 2010, a larger potential for sub- many high-temperature processing systems. stitution exists if ceramic rotating parts are suc- The excellent wear-resistance properties of cer- cessfully applied in gas turbine engines. In amics could increase productivity in the order for this major materials substitution to machining, chemical, and metal processing in- be technically feasible, however, the brittleness dustries, where wear and corrosion resistance tendency of ceramic materials must be over- are critical. Box 7-A provides detailed informa- come by improvements in material properties tion on the properties of ceramics and on the and processing technologies and the use of cer- processes for making them. amics must be integrated with system designs Although research into some areas of ad- that reduce the ways in which stresses are vanced ceramics is still in the development loaded on ceramic parts. stages, new roles in electronics and wear-re- Most ceramic raw materials (see table 7-10) sistance applications are being filled by ceram- are not considered potential strategic materials ics. Neither the economic viability nor the tech- because they are available in large quantities nical capability of using ceramics in many of from domestic sources. However, the United the structural applications (e.g., heat engines) States is competing with other countries in ad- has yet been demonstrated. Although the basic vanced ceramics R&D, and loss of a leadership ceramic raw materials (e. g., silicon, alumina, role in the development and use of ceramic magnesium) are plentiful and inexpensive, the materials could ultimately result in a depen- procedures necessary for converting the raw dence on international sources (primarily Ja- material into a usable form (usually an ultra- pan) for processed ceramic materials and fine powder) and then a final product can be products. expensive. It has been estimated that from 25 Ch. 7—Substitution Alternatives for Strategic Materials . 287

Table 7-9.—Current and Prospective Uses for Advanced Ceramics

First-tier strategic materials substitution Ceramic material Current and potential applications opportunities -. . . Electric: — Insulating (AI2O 3, BeO, IC circuit substrate, package, wiring substrate, resistor sub- MgO) strate, electronics interconnection substrate, Low-firing and/or glass cer- Ceramic capacitor. Low-temperature firing per- amics, ferroelectrics mits use of copper in-

(BaTiO 3, SrTiO3) stead of tungsten, moly or PGM wires, nickel instead of PGM electrodes. Piezoelectric (PZT) Vibrator, oscillator, filter, transducer, ultrasonic humidifier, piezoelectric spark generator. — Semiconductor (BaTiO3 NTC thermistor:

SiC, AnO-Bi2O 3, V2O 5, temperature sensor, temperature compensation, and other transition PTC termistor: metal oxides) heater element, switch, temperature compensation. CTR thermistor: heat sensor element. Thick film thermistor: — infrared sensor. Varistor: noise elimination, surge current absorber, lighting ar- restor. Sintered CdS material: Pt, Pt-Rh heaters, Ni- solar cell. chrome heaters SiC heater: electric furnace heater, miniature heater.

Solid electrolyte for sodium battery.

ZrO2 ceramics: oxygen sensor, pH meter fuel cells. Magnetic: Soft ferrite Magnetic recording head, temperature sensor. Ceramics for Co-Sin magnets Hard ferrite Ferrite magnet, fractional horsepower motor, powders for

tapes and discs (u-FezOS, CrO2). Ceramics for AINiCo magnets Optical: Translucent alumina High-pressure sodium vapor lamp. — Translucent magnesium For a Iighting tube, special-purpose lamp, infrared transmis- — oxides, muIIite, etc, sion window materials,

Translucent Y2O 3-ThO2 Laser material. ceramics PLZT ceramics Light memory element, video display and storage system, — light modulation element light shutter, light value. Chemical: Reduced use of Pt-group Gas sensor (ZnO, Fe2O 3, Gas leakage alarm, automatic ventilation fan; hydrocarbon,

SnO2) fluorocarbon detectors. catalyst Humidity sensor Cooking control element in microwave oven. —

(MgCr 2O4-TiO2) Catalyst carrier (cordierite) Catalyst carrier for emission control. — Organic catalyst Enzyme carrier, zeolites, other ceramics. Catalytic processes may replace Co, Pt Electrodes (titanates, sul- Electrowinning aluminum, photochemical processes, chlo- — fides, borides) rine production. Thermal: Reduced use of W, Cr, Co, ZrO2-based Infrared radiator, thermal barrier coatings.

Al2O 3-based Ni Si-based 288 . Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

Table 7-9.—Current and Prospective Uses for Advanced Ceramics—Continued

First-tier strategic materials substitution Ceramic material Current and potential applications opportunities

Mechanical: Cutting tools Ceramic tool, sintered SBN. WC-Co cemented cutting

(AI2O 3, TiC, TiN, others) Cermet tool, artificial diamond. tools and high-speed Nitride tool. steels (Cr)

Wear resistant (AI2O 3, ZrO2) Mechanical seal, ceramic liner, bearings, thread guide, pres- Hard facing alloys sure sensors. (Cr, Co, Mn)

Heat resistant (SiC, AI2O 3, Ceramic engine, turbine blade, heat exchangers, welding Superalloy (Co, Cr)

Si3N 4, ZrO2, others) burner nozzle, high-frequency combustion crucibles. Biological: Alumina ceramics implan- Artificial tooth root, bone, and joint. Bone and tooth implants tation (Pt, Co, Cr-based Hydroxyapatite bioglass SOURCE’ Elaine P. Rothman, George B KenneY, and H. Kent Bowen, MIT Materials Processing Center, Poterrtlal of Cefarrric Materla/s to Replace Gobal(, Chromium, Manganese, and Platinum in Critical Applications, OTA contract study, January 1984.

Table 7.10.—Some Advanced Ceramics Material Families

Families Chemical formula Elements

Alumina ...... AI2O 3 Aluminum, oxygen Aluminum silicate...... AISi Aluminum, silicon

Barium titanate ...... BaTiO 3 Barium, titanium, oxygen LAS ...... Lithium, aluminum, silicon Magnesium silicate ...... MgSi Magnesium, silicon MAS (cordierite) ...... 2MgO~5Si0,02Alz0, Magnesium, silicon, oxygen, aluminum Magnesia ...... MgO Magnesium, oxygen Silicon carbide ...... SiC Silicon, carbon

Silicon nitride ...... Si3N 4 Silicon, nitrogen SiAION ...... (various alloys of silicon nitride and alumina) Zirconia ...... ZrO2 Zirconium, oxygen PZT (partially stabilized zirconia) Zirconia with particles of calcia, magnesia or yttria SOURCE: Office of Technology Assessment. to 75 percent of the production cost of ceramic the materials and obtaining production relia- components is due to a high rejection rate bility, has not often been achieved. caused by the poor reproducibility of current processing steps.26 As new manufacturing tech- Ceramics as a Strategic Material Substitute nologies mature and the ability to design with A growing market for advanced ceramics ex- brittle materials increases, prices are projected ists in a number of applications, with limited to become competitive with existing metallic implications for the use of strategic materials, technologies. As yet, however, mass produc- Strategic material substitution, however, may tion of many advanced ceramics does not yet have a higher potential in the long term (2010 occur. Scaling up an experimental process to and beyond), particularly in the eventual use a commercial manufacturing level of produc- of advanced ceramics in aircraft gas turbine tion, while retaining the desired properties of engines and, to a lesser extent, as components ZaE]aine p, Rothman, George B. Kenney, and H. Kent Bowen, in automotive gas turbine and heavy vehicle Materials Processing Center, Massachusetts Institute of Tech- diesel engines. nology, Potential of Ceramic Materials to Replace Cobalt, Chro- mium, Manganese, and Platinum in Critical Applications, OTA As shown in table 7-11, ceramic materials are contract report, January 1984, p. 240. displacing some first-tier strategic materials in .— ——

Ch. 7—Substitution Alternatives for Strategic Materials • 289

Box 7-A.—Ceramics Primer Ceramics, derived from the Greek word form glass and single crystal ceramics.) The “keramos,” meaning “burnt stuff,” is a gen- powder is first formed to the desired shape. eral term for inorganic,27 nonmetallic materi- Forming methods include isostatic pressing, als processed or consolidated at high temper- injection molding, and slip casting. This atures. Traditionally, ceramics has referred to “green body” preform is then further densi- the family of earthenware, brick, glass, por- fied by the application of heat (sintering) or celain, and enamels in common use. The field the simultaneous application of heat and pres- now encompasses a wide range of materials sure (two such processes are hot-pressing and and applications. hot-isostatic pressing). Reaction bonding and Traditional types of ceramics are made from reaction sintering are special sintering proc- natural raw materials such as clay, silica, and esses during which the final composition of feldspar and produced using relatively simple the ceramic material is obtained along with chemical processing, forming, and firing steps. densification. The combination of processes Advanced ceramic products, on the other selected to produce a ceramic material will af- hand, are produced from ultrafine powder fect its ultimate properties. forms of synthetic materials derived from the Ceramics are brittle and fracture with little natural raw minerals. The powder production or no warning. This characteristic has been phase of advanced ceramics processing has the material’s major barrier to expansion into become increasingly critical. Purity, particle a wide range of applications, both technically size, shape, and distribution of particles and and institutionally. Ceramics must be consid- how they agglomerate must be rigidly con- ered and used in ways different from those trolled in order to produce reliable, reproduc- taught traditionally to designers and engi- ible components, To attain such high-quality, neers schooled in the use of metals. Because new techniques such as sol-gel, coprecipita- metals bend and deform prior to reaching a tion, and laser synthesis have been added to point of fracture, ceramics cannot usually be conventional powder production and agglom- directly substituted for metal alloys on a one- eration methods. for-one basis. Instead, redesign of components Because a great number of materials are and systems to eliminate or minimize load- classified as ceramics, a wide range of prop- bearing (stresses) are often necessary in order erties are available; and ceramic materials to substitute a ceramic material. have many characteristics that distinguish A considerable amount of the research in them from metals. They are generally more ceramics centers around how to reduce, cope stable chemically and thermally and are bet- with, or design around this brittleness. Re- ter insulators than metals. On the other hand, search takes three approaches: 1) basic re- they are much stronger in compression than search to increase the knowledge base and un- in tension and do not have the same ductil- derstanding of the behavior of the materials, ity, or “forgiving” nature, of metal. Ceramics 2) improvement of processing technologies to are harder and more rigid than either metals reduce the probability of brittle failure, and or plastics and are more stable (retain their 3) investigation of how varying material com- low-temperature properties) at high temper- positions can affect ceramic properties. atures. Brittle failure results from microscopic Owing to their lack of ductility, ceramic flaws (cracks), solid inclusions, and voids in products cannot be formed by the stamping the microstructure28 of finished products in- or forging processes used for metals. Instead, evitably introduced to a ceramic material dur- they are generally processed directly from ing processing. The likelihood of brittle fail- highly refined raw material by the consolida- ure increases with the size of such flaws, and tion of powder. (Melt formation is used to tension loading on a part will lead to the

ZaThe detailed arrangement (size, nature, and distribution) of ITSubstances that do not contain carbon except as a minor con- phases (combinations of elements) that constitute the overall ma- stituent. terial. 290 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

growth of existing flaws (crack propagation). The ability to identify the flaws cm increase New processing techniques aim at reducing the reliability of ceramic products. Nonde- flaw size and population by the use of homo- structive evaluation (NDE) techniques are be- geneous powders and forming procedures. ing developed (by both industry and the Fed- Greater processing reproducibility is another eral Government) to determine flaw size, goal. shape, concentration, and type with an aim Another, complementary method of de- toward predicting when component failure creasing the probability of fracture of cer- will occur. As yet, there is no “perfect” amics is to increase the energy required to ex- method for detecting all types of flaws in ce- tend a crack in the material. Such a barrier ramics. Many methods are not applicable to to crack propagation is provided by introduc- the production line or are simply too costly ing toughening mechanisms into the powders and time-consuming, NDE techniques include before processing. Examples include zirco- ultrasonic, radiography, optical, and thermo- nium oxide particles embedded in aluminum graphic methods. oxide and calcia, magnesia, or yttria added to zirconia to create partially stabilized zirconia (PSZ).

wear-resistant applications such as cutting tool If successfully introduced in the rotor sec- tips, pump seals, bearings and nozzles, and in tion of turbochargers, advanced ceramics will heat-resistant applications such as heat ex- find their first commercial rotating, structural changers. Turbochargers with ceramic rotors use and will replace nickel superalloys and may be offered by one Japanese automobile nickel-iron alloys containing cobalt and chro- manufacturer within the next few years. mium, respectively. With 100 percent penetra- Wear-resistant parts today are often made tion in the automotive market, ceramic mate- from cemented tungsten carbide materials in rials would replace less than 1 percent of current U.S. cobalt and chromium annual con- which cobalt is used as a binder. This mate- sumption, but may inhibit a growing use of rial accounts for 9 percent of the annual U.S. strategic materials. consumption of cobalt, more than half of which is estimated to be used in these wear-resistant Current automotive engines consume a neg- applications. (Another major end use is ma- ligible amount of first-tier strategic materials, chine dies.) In heat-resistant applications, ce- but operating engine conditions require air pol- ramic materials such as silicon carbide, silicon lution control devices that consume 1.5 percent nitride, and aluminum silicates can replace of the chromium and 34 percent of the PGMs stainless steels and other heat-resistant alloys consumed annually in the United States. It has containing chromium, cobalt, and some man- been suggested that the use of ceramic gas tur- ganese. While it is difficult to quantify the in- bine and diesel automobile engine technologies dividual quantities of these metals used in may alter these pollutants, thereby changing wear- and heat-resistant applications, the over- the material requirements for catalytic con- all amounts are thought to be small. The sub- verters. In aircraft gas turbine engines, on the stitution of ceramic materials will, therefore, other hand, a direct material substitution could result in minor strategic material savings. Ad- occur with the replacement of superalloy ditional indirect savings may be generated by containing cobalt and chromium currently con- higher temperature operations, energy savings, sumed in portions of such engines. (The avia- and weight reductions made possible by the tion industry annually consumes approxi- use of ceramics. mately 40 percent of the U.S. cobalt demand Table 7-11. —Potential of Advanced Ceramics to Substitute for First-Tier Strategic Materials

Current strategic Ceramic materials material use currently used Extent occurrent Primary factors affecting adoption estimated percent of or under Advantage to use — commercialization Application annual U.S. consumption consideration of ceramics Technical Economic lnstitutional U S and world — Near term (before 1995): Wear resistance. Cutting tool tips Cobalt, as binder m Alumina, silicon Increased productivity Overcoming Inadequate Appears competitive with Most U S machine tools cannot 2% of U.S. market tungsten carbide nitride, sialon fracture toughness tungsten carbide accept ceramic bits Lack of Higher in Japan and 5 percent information within machine tool West Germany industry Seals, bearings, Cobalt, as binder m Alumina- Improved wear and cor- No significant barriers Competitive with Need to standardize parts Con- 20% of U.S. and world nozzles, etc tungsten carbide zirconia, rosion resistance tungsten carbide ex- sumer awareness and lack of market 3 percent silicon carbide cept large (>8 inch desire to change; pumps are a diameter seals) replacement parts market, longer seal life is not seen as an advantage to producers Heat exchangers Small amounts of Silicon carbide Energy savings Longer Improved joining Higher initial capital in- Change over to electrical induc- < 5% of U.S. market Large Industrial chromium in high- furnace life technology (ceramic/ vestment than metallic tion heating which does not Possibly higher in Japan Small single burner temperature stainless Cordierite ceramic. ceramic/ heat exchangers High use recuperators. Depressed recuperators steels metal) and cost of SiC tubing state of the domestic steel reproducibility of SIC industry and metal processing tubes in processing industries has inhibited change Turbochargers Superalloy containing Silicon carbide, Higher temperature Overcoming difficulties in Current cost of produc- Ceramics will be used if they Expected limited in- (automotive) Chromium. (0.02 percent) silicon nitride capability with lower ceramic/metal joining; ing the ceramic rotor demonstrate superior troduction by Cobalt: (0.4 percent) mass Potential for improving reproducibil- IS high, but economies performance Japanese soon, possi- tower costs ity of the ceramic of scale are predicted ble market penetration rotors by 1990 Long term (after 1995): Automotive diesel Some chromium and Silicon, silicon Higher engine efficien- Improved fracture tough- Only prototype parts are Almost revolutionary change in Only several demonstra- engine (cylinder, cobalt in heat resistant carbide, silicon cies potential. Light- ness, reproducibility currently produced, engine style IS required to fully tion engines so far pistons, sensors) and specialty steels; nitride, zirconia weight engine and reliability of parts generally, hot pressed realize ceramics potential in addition, chromium: components prototype parts require 1 5 percent, PGMs 34 diamond machining percent in automobile which IS an expensive catalytic converters mass production tech- (Use of ceramic parts nique. New processing will alter operating techniques could temperatures of en- generate significant gines, causing possi- economies of scale ble change in converter material requirements ) Automotive gas turbine (same as above) Silicon carbide, Higher engine efflclen- improved fracture tough- High cost of processing r ‘Proof of concept” engines Only prototypes and combustors, shrouds, silicon nitride, cies, ability to burn ness, thermal shock due to current tech- follow-on design will need demonstration testing and rotors sialon, lithium, any fuel, lower mass resistance, reproduci- niques and Iimited thorough, exhaustive road test- aluminum Potentially lower cost bility and reliability production volumes ing to overcame brittle image silicate of ceramics

NOTE These apphcahons are not meant 10 be all Incluswe but represent key potential applications SOURCE Elaine P Rothman, George B Kenney, and H Kent Bowen MIT Materials Processing Center Poferrt@ of Ceramic L4aterlak 10 Replace CobaH C/Irornwn Manganese and Plaflflum In Wlca/ App/IcatIorM OTA contract study, January 1984 292 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

and less than half a percent of its chromium vanced ceramics market by 2000 vary widely. demand, and most of this material is used in An American Ceramics Society study31 pro- the manufacture of jet engines.) jected a $20 billion world market, half of which would be domestic. The U.S. Department of Owing to their higher temperature capabil- Commerce was more conservative in a study ities, resistance to corrosive environments, low released in 1984. It projected total domestic inertial mass, potentially low cost, and the shipments (as equivalent to future market po- ready availability of raw materials, ceramics tential) of advanced ceramics of $5.9 billion. could become an integral part of future power Included were electronics shipments of $3.5 generating technologies. In contrast to current billion; heat engines, $840 million; cutting and near-term applications, however, major tools, $960 million; and wear parts, $540 mil- technical barriers must be overcome before ce- lion.32 In yet another estimate, advanced ceramic components for diesel and gas turbine ramic usage in automotive engines alone was engines can advance from demonstration proj- projected to reach $30 billion on a worldwide 33 ects to commercialization. Improvements are basis by the year 2000. needed in material properties (most significantly, fracture toughness), processing and Except in electronics, advanced ceramic fabrication techniques, ceramic-ceramic and materials have penetrated a very small share ceramic-metal joining capabilities, testing proof their recognized end use markets world- cedures, and design methodologies. Ceramic wide, primarily due to the state of the technol- components must be reliably produced and ogy and relatively high costs of its products. manufacturing processes must be capable of While low-volume production adds to these a high degree of reproducibility, neither of high costs, demonstrated technical perform- which is possible at the current state of the ance will not necessarily create markets for ad- technology. vanced ceramics. Roughly half of the cost of a typical ceramic component is estimated to The Ceramics Market and Industry be due to production rejects.34 An incremental introduction into most markets is expected un- The worldwide market for advanced ceram- 29 til ceramic component mass production tech- ics in 1980 was estimated to be $4.25 billion. niques are developed which can reproducibly Electronic components represent the primary fabricate reliable products and customer ac- market for ceramics, with cutting tools and ceptance can be firmly established. In auto- wear parts second and third, respectively. mobile markets, revolutionary ceramic engine Roughly half of the present overall demand is designs may have to await a lengthy proving being met by Japanese companies, whose sales 1980.30 process prior to successful commercialization. exceeded $2 billion in While the elec- If it is successful, the ceramic turbocharger— tronic segment now accounts for more than the first commercial structural heat engine use two-thirds of the total market and offers sig- of advanced ceramics—can provide invaluable nificant growth potential, it may eventually be information for this process and the beginnings dwarfed by the ultimate size of the high-tem- of institutional acceptance of the structural ca- perature applications market. pabilities of advanced ceramics. Indicative of a high level of uncertainty, pro- The essence of the advanced ceramics busi- jections made to estimate the value of the ad- ness is that common starting materials are con-

~9ROthrnan, et al,, op. cit., p. 238. Slrbido ~Ibid., Japanese firms were estimated to hold 52 percent of 32u.s. Department of Commerce,, op. cit., p. 13. The Depart- the worldwide ceramic powders market; 61 percent of electronic ment of Commerce cautioned in its study that it is too early in IC packages/substrates; 91 percent, piezoelectrics; 43 percent, the history of this new industry to predict its future with a high capacitors; 63 percent, thermistor/varistors; 79 percent, ferrites; level of confidence. II percent, gasdlmmidity sensors; 44 percent, translucent ceram- 33AccOr&ng to Kent Bowen of MIT, as quoted in Rothman, ics; 12 percent, cutting tools (carbide, cermet); and 48 percent, et al., op. cit. structural ceramics (heat and wear resistant). s41bid. Ch. 7—Substitution Alternatives for Strategic Materials ● 293 verted into high value-added commodities and industrial base for the future. In an issue of The 37 components by sophisticated, high-technology Japan Industrial & Technological Bulletin in processing and manufacturing systems. Exact- 1983, R&D in ceramics is recognized as involving standards require extensive quality control. ing “huge investment risks” and requiring “a Generally, material producers in the ceramics relatively long lead time before the commer- industry have been and still remain vertically cialization of these materials. ” As such, the integrated; thus, raw materials are processed study concluded that the Japanese government and fabricated into component parts within a “should take the main role in promoting ad- single company. Relatively few producers sup- vanced and fundamental research as well as ply ceramic raw materials, and even fewer sup- development. ” And, the primary objectives of ply new advanced ceramic powders. The evolv- the Fine Ceramics Office set up in July 1982 ing advanced ceramics industry consists of under the auspices of the Ministry of Interna- traditional ceramics firms expanding into new tional Trade and Industry (MITI) are to “get applications, new end users taking on the task a comprehensive picture of the domestic fine of being materials suppliers, and conventional ceramics industry, systematize the industry, materials firms expanding into the ceramics consolidate the industry’s foundation and arena.35 adopt comprehensive policies designed to promote the industry’s sound growth. ” The United States is not alone in its interest in advanced ceramic materials. It already is While the United States, Japan and Western competing with and will continue to encoun- Europe have all followed interdisciplinary ap- ter stiff competition from Japan and Western proaches in their independent research efforts, Europe in tapping future markets. The Japa- the U.S. effort has leaned toward basic re- nese industry is currently the sole source for search and design methodologies while others some high-grade ceramic powders (e. g., silicon have emphasized materials supply and proc- carbide) and has eclipsed the rest of the world essing. As a consequence, some feel that the in supplying the electronics market. se A Brit- United States may end up lagging behind in ish firm, which holds numerous patents for the implementation and exploitation phases of sialons (a ceramic composed of oxides and ni- advanced ceramics technology. In advanced trides of silicon and aluminum), now licenses ceramics (as in other new technologies), the others to manufacture these materials. Japanese seem willing to take the risk to apply state-of-the-art materials to consumer products. Japan began its comprehensive advanced This provides field testing for improvement of ceramics R&D program only in 1977, but its the knowledge base of the technology produc- government-industry-university collaborative tion experience and cost reductions and in- effort is widely regarded as the best organized come to finance further research efforts , all the and financed in the world, The Japanese are, while gaining customer acceptance for new of course, more materials and energy import- materials, dependent than the United States; and a prime goal of their research efforts is to ease that de- If one assumes that the Japanese rather than pendence. But they also view advanced cer- the United States becomes the dominate fac- amics as a technology which will be part of an tor in an all-important future automobile ce- tsFOr a review of the status of the U.S. advanced ceramics in- ramic engine market, the United States could dustry and the firms involved, see the U.S. Department of be adversely affected by a decline in the GNP, Commerce, A Competititre Assessment of the U.S. Advanced loss of employment opportunities, shift in the Ceramics Industry, op. cit. t@Not a]] such sales in the United States are imports, however. —— Kyocera International, a subsidiary of Kyoto Ceramic Co. of Ja- 37 Japan Externa] Trade Organization, The Japan Industrial ~ pan, established production facilities in San Diego in 1971 which Technological Bulletin: The Development of Structural Fine Cer- now supply 70 percent of the U.S. demand for ceramic packag- amics in Japan, Specia] Issue, No. 15. 1983, pp. 6-7. Note that ing for integrated circuits. See “The Japanese Score on a U.S. Japan uses the term “fine ceramics” for what is commonly re- Fumble, ” Fortune magazine, June 1, 1981, pp. 68-72, ferred to as “advanced ceramics” in the United States. 294 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

balance of trade, and loss of savings in energy in various applications. This short period of de- costs .38 velopment time probably contributes to the relatively low rate of usage of advanced ce- One aspect of the expanding ceramics indus- ramic materials so far, try for which there is little data is the possible environmental, health, and safety effects on the Following is a discussion of the current communities and workers where the process- status of the research and use of advanced cer- ing occurs. While some may assume that these amics in cutting tool, wear resistance, heat ex- processes may be “cleaner” than those of exchanger, and heat engine applications. isting metal production, the statistics as they are now collected and aggregated by the Envi- CUTTING TOOLS40 ronmental Protection Agency and the Occupa- Cutting tool applications represent a limited tional Safety and Health Administration based but growing and potentially valuable market on the traditional ceramics industry do not cor- for ceramic materials. At present the total U.S. respond to the future industry, market for cutting tools has been estimated at $2.2 billion per year. Advanced ceramic cut- Research in Ceramics Applications ting tools hold 2 to 3 percent of this market 41 Ceramics is an ancient art. Despite—or be- (compared to tungsten carbide at 45 percent). cause of—the age old and common use of ce- Nine percent of the annual U.S. consumption of cobalt is used as a binder in tungsten car- ramics, it remained essentially an art until re- 42 cently, when more exacting standards were bide material. asked of the materials. One major engineering New cutting tools are continually being textbook on ceramics states in its 1976 edition sought to increase manufacturing productivity that: by attaining higher cutting speeds and reduc- . . . until a decade or so ago, ceramics was in ing the downtime of cutting machinery through large part an empirical art, Users of ceramics improved lifetime of tool inserts. Ceramic procured their materials from one supplier and materials have proven feasible in this applica- one particular plant of a supplier in order to tion and may offer higher performance than maintain uniformity. Ceramics producers were existing cutting tool materials; but they must reluctant to change any detail of their process- compete with new metal alloys, coatings, and ing and manufacturing (some still are), The rea- processing methods (e.g., powder metallurgy) son was that the complex systems being used for market penetration. No one material meets were not sufficiently well known to allow the all cutting requirements in all applications, and effects of changes to be predicted or under- advanced ceramic cutting tools tend to be stood, and to a considerable extent this re- 43 mains true.39 higher in cost than conventional tools, owing to their smaller volume production and more British scientists conducted much of the complex processing. This higher initial cost, original research in the 1950s and 1960s in cer- however, can be mitigated by the higher cut- amics theory, raw materials development, and processing methods. Not until the 1970s were — —.———— ceramics developed to the point where they aCutting tools are insert pieces—the cutting edge—held and guided by machine tools. The process of machine tooling shapes could be considered engineering materials in and removes excess materials from manufactured products to that their chemical and physical properties produce desired tolerances. could be altered to match intended functions AIU.S. Department of Commerce, Op. Cit., P. 35. AZRothman, et a]., op. Cit., p. 168. ‘sAccording to an interim draft report (January 1984) by 3LIL. R, Johnson, A, P. S. Teotia, and L. G. Hill, A Structura] Charles River Associates for the National Bureau of Standards, Ceramic Research Program: A Preliminary Economic Analysis. Technological and Economic Assessment of Advanced Ceramic ANL/CNSV-38. Argonne National Laboratory, March 1983. Materials: A Case Study of Ceramic Cutting Tools, a typical sili- wwr, D. Kingery, H. K, Bowen, and D. R. Uhlmann, ~ntroduc- con nitride cutting tool is currently sold in the $18 to $20 range, tion to Ceramics, Zd ed, (New York: John Wiley & Sons, 1976), whereas typical tungsten carbide cutting tools are priced at $4 p. 1. to $5. Ch. 7 —Substitution Alternatives for Strategic Materials ● 295 ting speeds, if downtime due to lower reliabil- uted to the fact that in the United States’ older ity is not excessive, machine tool industry equipment is outdated and must be modernized or replaced before ce- An increase in the use of advanced ceramics ramic tools can be used to their full advan- is dependent on improvements in ceramic ma- 45 tage. terials and the machine tools in which they are used. Advanced ceramic materials have greater WEAR APPLICATIONS abrasion, wear, and creep resistance than their carbide counterparts, but less strength, fracture Wear applications are often in low-tempera- toughness, and thermal shock resistance. The ture environments in which resistance to abra- attributes of ceramic materials provide su- sion and corrosion are the primary perform- perior performance at high cutting speeds ance goals. Applications include ball and roller (especially demanded by the automotive and bearings, valves and pipefitting, industrial aerospace industries), which can translate into fasteners, and pumping equipment such as productivity gains. But widespread conversion seals, liners, and nozzles. The traditional to advanced ceramic cutting tools will require materials for those applications are cemented investments in new machine tools as many of tungsten carbide and wear-resistant steels (in those still in use have neither the speed, power, which chromium is used as an alloying agent nor rigidity needed to use ceramic cutting tools for its hardenability). Up to about 3 percent of effectively. U.S. cobalt consumption may be used in all wear-resistant applications and about 2 percent While approximately two-thirds of current of chromium. Thus, strategic materials savings ceramic tool sales are alumina (Al2O3), intro- could result from more extensive substitution duced in the 1960s, the newest cutting tools in of ceramic materials in wear applications. use today are based on the silicon family. (Sili- con nitride exhibits twice the fracture tough- While the technical feasibility of wear parts ness of alumina.) Rapid development of silicon made from ceramics (primarily aluminum ox- nitride ceramics has been the result of acceler- ides, and silicon carbides, silicon nitrides) has ated research activity over the past decade on been demonstrated, the Department of Com- high-temperature structural ceramics for use merce has estimated that ceramics currently hold less than 1 percent of the annual $3.3 bil- in advanced energy conversion systems. Ford 46 Motor Co., for instance, is now moving toward lion U.S. market. The extent to which they commercialization of its “S-8” material, which will assume a greater share of these markets was developed during research on materials for will be strongly affected by performance versus gas turbine rotors. cost tradeoffs. The current state of processing and fabrication techniques for ceramic wear Most of the direct research in cutting tools parts (rather than raw materials costs) leads to in the United States is conducted by private in- the higher initial costs than those for metal dustry and has been estimated at $1 million per 44 parts, Ceramics can, however, provide longer year. Indirect benefits may accrue, however, service life than metals. from the much heavier investments by government, industry, and academia in structural cer- The potential to resist fatigue, corrosion, high amics R&D. temperatures, and loss of lubrication better than metals make ceramic materials attractive Japan and Western Europe are considered to for ball and roller bearing uses, Their high cost be ahead of the United States in the develop- of fabrication, however, makes them imprac- ment and utilization of ceramic cutting tools.

(About half of the advanced ceramic tools sold 4sE Dow Whitney, “Process in Ceramics Research for Cut- in the United States are imported from Japan.) ting Tools in the U. S., West Germany, Japan and Sweden, ” pa- The difference in higher usage has been attrib- per given at the National Science Foundation conference on Sub- stituting Non-Metallic Materials for Vulnerable Minerals, June 1983, p. 1. ~41bid., p. 45. SeDepartment of Commerce, Op. cit., p. 35. 296 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability tical in many applications. Ceramic bearings lifetime. Constraints to the expanded use of tend to be consumed primarily by petroleum ceramics in this application are those specific and chemical industries, which have demand- to individual types of heat exchangers, but in- ing performance standards (e. g., in corrosive clude the need for improved materials prop- environments) and in specialized aerospace ap- erties such as thermal shock resistance and re- plications, all of which can absorb the high ini- sistance to certain corrosive environments, the tial cost.47 Pump seals are the largest wear ap- development of joining and sealing technol- plication market now held by ceramics. The ogies, and low confidence in the reliability of properties required are hardness, low friction, the ceramic components. The use of ceramics high resistance to corrosion, and high-tempera- is still not cost effective vis-a-vis metal alloys ture capability. Ceramics (especially, silicon in some heat exchanger designs, especially for carbide and silicon nitride) have been shown large industrial furnace and power systems, to be superior to metals in performance in this which are constructed from an array of thin- application and, with improved manufactur- walled ceramic tubes, Processing technologies ing techniques and reduced costs, are expected are still being refined to provide high repro- to assume more of the market. Nozzle parts ducibility for long (greater than about 8 feet) must withstand high wear and abrasion resis- tubes. In addition, sealing against leakage be- tance properties which the hardness of ceram- tween the hot and cold streams has not been ics provides. 48 fully successful. Research in wear applications for ceramics Because of their high temperature and often is primarily conducted by the private sector, corrosive environments, heat exchangers have much of which remains proprietary, resulting been predominantly fabricated from stainless in little transfer of technology. The research steels and superalloy; therefore, substitution is concentrated on improving the properties of of ceramic materials will result in some sav- the materials, on manufacturing techniques to ings of chromium and cobalt, although the reduce costs, and on nondestructive evaluation amount is difficult to quantify due to lack of methods to gain reliability. specific end use reporting. On the other hand, much recent heat exchanger technology has HEAT EXCHANGERS been made possible by new ceramic materials, Competitive pressure in high-temperature in- and the resultant growth in the use of ceramic dustrial processes, as well as the rising cost of materials are not as replacement materials. The energy and the reduced availability of high- use of ceramic materials, such as high-tempera- grade fuels in the 1970s, have led to the devel- ture cordierite (a magnesium alumina silicate opment and expanded use of energy conser- commonly referred to as “MAS”), silicon car- vation devices such as heat exchangers.49 As bide, silicon nitride, aluminum oxide, and lith- in other high-temperature applications, the use ium-alumino-silicate (LAS) in this application of advanced ceramic materials in heat ex- will be driven by energy costs faced by users changer technology allows for improved per- and the unit cost of fabricating ceramic com- formance over metals and often makes the ponents. technology possible. In addition, ceramics can The use of ceramics in recuperators, a type provide better oxidation and corrosion resis- of heat exchanger that allows a furnace to oper- tance, which can result in longer component ate more efficiently by recycling its waste heat — to preheat incoming combustion air, has re- qTceramic bearings Cost about $100 while simi]ar steel bear- ceived a considerable amount of attention. ings cost from $1 to $3,50. aaRothman, et al., op. Cit., p. 191. Both development and commercialization re- @’Heat exchanger” is a generic term for any device that trans- search in ceramic recuperators was contracted fer heat from a fluid flowing on one side of a barrier to another by DOE’s Conservation Office through GTE fluid flowing on the other side of the barrier. Here, the term refers to the use of such devices in combination with industrial fur- Sylvania and the Carborundum Co. As a result, naces, stationary power generators, and engines. small ceramic recuperators are now commer- Ch. 7—Substitution Alternatives for Strategic Materials . 297 cially available and are economically viable. fort has concentrated on the gas turbine engine They can be retrofitted to existing furnaces for automotive applications. with the modification of furnace burners to The ceramic materials being applied today cope with the higher temperatures generated. to these technologies are generally termed The performance advantage of ceramic recu- “structural ceramics.” They include monolithic perators is expected to encourage their use in forms of the silicon carbide (SiC), silicon ni- new furnaces and as add-ens to unrecuperated tride (Si N ), zirconia (ZrO ), and aluminum sili- furnaces; but a changeover in large industrial 3 4 2 cate (AlSi) families of ceramic materials. Ce- systems will be slow owing to the high invest- ramic composites are also being considered for ment costs of such installations coupled with engine applications because of their superior the current stabilization of energy costs. The strength and hardness, low thermal expansion, GTE “Super Recuper” is reported to save some and wear resistance, which may allow them to industrial furnaces 30 to 60 percent in fuel by overcome the fracture problems of the mono- enabling furnaces operating at 2,500° F to pre- lithic ceramics. However, ceramic composites heat incoming air to 1,600° F. Unlike the long have been found to lose their strength at higher tubular array systems, GTE’s counterflow plate temperatures, a problem that has not yet been design heat exchanger does not present any resolved, major ceramics processing problems. But materials properties improvements are needed in Ceramics are likely to see service in the hot order for the device to be applicable in certain sections of engines, progressively, as follows :50 highly corrosive environments such as those ● Turbochargers: static parts and rotors, in the glass industry, ● Small stationary electric power generators, A variety of other heat exchanger applica- similar to airplane auxiliary power units tions are being investigated by both the private (APUs). sector and DOE. They include ceramic regen- ● Large stationary electric power generators, erator cores for inclusion in gas turbine engine then mobile (ground and marine) APUs. designs and specific designs for use in cogen- ● Short-life turbojet and turbofan engines for eration and combined-cycle power generation missiles. equipment. ● Heavy-duty turboshaft vehicular propulsion engines; military truck, tank, off-road HEAT ENGINES vehicular, marine engine. Ceramic materials are under active investi- ● Automobile propulsion, gation by both the Federal Government and in- ● Human-rated aircraft propulsion and util- dustry for use in the propulsion of automobiles, ity electric power generation. trucks, military equipment (tanks and missiles), Technical advances gained from continuing and aircraft as well as stationary uses, such as research efforts are necessary before ceramic power-generating equipment. Research in these materials can serve in these applications. applications is being conducted to achieve significant advantages over the use of metal al- VEHICLES loys, including fuel economy, improved per- Ceramic materials are being considered ei- formance, reduced maintenance, and possible ther as direct substitutes for selected compo- reduction of pollution emissions, with savings nents of existing gasoline and diesel engines of strategic materials a secondary objective. or for use in engines designed specifically to Private sector R&D is focused primarily on benefit from the properties of ceramic ma- advantages of ceramics that could translate terials. into direct cost savings or improved product Component substitution in gasoline engines competitiveness. A review of the government- offers only minor improvements in fuel econ- sponsored research in ceramic heat engines in table 7-11 shows that the main focus of that ef- Soparkinson, op. Cit. 298 • Strategic Materials: Technologies to Reduce U.S. Import Vulnerability omy or power production over conventional overall weight savings (providing additional all-metal engines. As such, while selected com- fuel economy). The high-temperature charac- ponents (cylinder liners and heads, exhaust and teristics of ceramics are not a prime factor. intake ports, valves, bearings) of such engines Two technical problems constrain mass may be fabricated from ceramics, a “ceramic production of ceramic rotors for turbochargers: “ is not considered a possibil- gasoline engine the difficulties in joining ceramics and metals ity, Ceramic diesel engines, on the other hand, and uncertain reliability and reproducibility in can provide a 10- to 30-percent reduction in materials processing. Nevertheless, ceramic fuel economy and improved reliability due to turbochargers may be offered—to a limited the elimination of cooling systems. Since only extent—by the Japanese automobile industry minor amounts of strategic materials are used within the next few years. Two Japanese firms in conventional engines, ceramic components reportedly began delivering sample turbocharg- substitution can only marginally affect the use ers to Japanese car companies in mid-1983 for of strategic materials. One possibility, as yet testing purposes. One of these firms announced unproven, is that the pollutants emitted by such plans to begin production in late 1984 and pre- hybrid metal-ceramic engines will be lower, dicted that its ceramic turbines will be mass- owing to higher operating temperatures, and produced within 3 to 4 years. The major U.S. that strategic materials savings could occur turbocharger manufacturer, Automotive Prod- with a shift in the materials requirements (now, ucts Division of AiResearch, competes in inter- PGMs and chromium) consumed by automo- national markets and expects to have its ce- tive catalytic converter systems. ramic rotor turbocharger ready by 1986 for the Turbochargers. —Turbocharger rotors, now 1987 model year, If the ceramic turbocharger made primarily of nickel-based superalloys and is successfully marketed by the Japanese indus- nickel-iron alloys, could be a significant near- try, the U.S. automobile industry is expected term use of ceramics. This technology51 is one to compete by offering similar turbochargers of the few heat engine applications being in- on their specialty market automobiles, where vestigated with mostly private rather than gov- such gains in performance are desirable and ernment funding and is driven by a desire to the consumer may be willing to absorb added combine the fuel economy of today’s small cars costs (both initial and maintenance). with the performance of yesterday’s larger en- The ceramic turbocharger is seen as a pre- gines, As this competition for greater fuel econ- curser to the use of ceramics in gas turbine en- omy/performance increases in the automotive gines where the rotor must withstand higher industry, the inclusion of ceramic rotors in tur- stresses. Successful commercialization of the bochargers may retard an otherwise growing ceramic turbocharger could provide valuable market for superalloy. The main candidate information to accelerate the application of cer- material for ceramic rotors is silicon nitride. amics to gas turbine engines. The primary attraction of the ceramic rotor Gas Turbines and Diesel Engines.—Research in new is the improved performance provided by its automotive engine designs to incorporate ce- low rotational inertia, which enables a quick ramic materials has been a major beneficiary response by the turbocharger at low engine of government support. Technologies now be- rpms. The higher weight of metal alloys causes ing investigated under contract to industry are a delayed response called turbo lag. Secondly, the “adiabatic” (or, minimum heat loss) diesel there are expected material cost savings to be and gas turbine engines. Industry also supports gained from the use of ceramics, along with R&D in engine technologies through cost shar- sIA turbocharger, added to a standard internal combustion en- ing on government contracts and its own pri- gine, pumps hot air (compressed by action of a turbine spun by vate basic research. While various government hot exhaust gases) into the engine. Other options for fuel economy are available through redesign of the standard engine to projects have been funded sporadically since improve its performance by reducing the amount of waste heat. the 1940s, the heaviest support has occurred Ch. 7—Substitution Alternatives for Strategic Materials ● 299 during the last decade.52 NASA was directly of component manufacturing methods that are involved in the early research with the Depart- cost effective and provide reproducibility. ment of Defense and the Department of Energy After Congress passed the Automotive Pro- (DOE) now taking the lead. The current major pulsion Research and Development Act (Title projects are DOE’s Automotive Gas Turbine III of Public Law 95-238) in 1978, DOE and (AGT) program to develop a gas turbine engine NASA initiated the AGT program. Two con- by fiscal year 1986 and the U.S. Army Tank Au- tracts were awarded: one to General Motors tomotive Command (TACOM) program with (Allison and Pontiac divisions) for the AGT 100 Cummins Engine Co. to develop the adiabatic and another to the Garrett Corp. and the Ford diesel engine for use in military vehicles. It is Motor Co. for the AGT 101. Each of these con- believed that this diesel engine technology will tracts involve the design, development, and eventually be transferred to the private sector testing of an advanced ceramic automotive gas for use in heavy-duty trucks. Automotive use turbine engine. In the final versions the engines of both the diesel and the gas turbine engines, will have been designed from scratch to exploit if commercialized, is not expected until after 2000. fully the material properties of ceramics. Since its inception in 1980, the AGT program has The benefits foreseen in use of the adiabatic been revised to take the development of the ce- diesel engine are increased fuel economy (due ramic engine through to the proof-of-concept to the reduction of lost energy and the elimi- stage. A probable decrease in funding in fiscal nation of the need for a cooling system), reduc- year 1985 will require another shift in the over- tion in weight and inertia, and greater engine all program goals or organization. reliability and maintainability. Energy loss may Both the AGT 100 and 101 have successfully be reduced as much as 50 percent, and fuel passed an initial testing phase. The models consumption, 25 percent over conventional tested were designed using ceramics for static diesel engines with a significant increase in components, retaining metal for rotary parts. power. The phase now underway will test versions de- The TACOM/Cummins research project signed with ceramic rotary parts. started with development of ceramic components for conventional diesel engines. A sec- One of the largest technical problems foreseen with the application of ceramics as engine ond phase followed to design and test an components is that of gaining reliability and uncooled, nonadiabatic diesel engine with ce- reproducibility in the large-scale production ramic and metal parts. R&D is now proceed- that commercial automotive application will re- ing on an adiabatic diesel engine, combining quire, The ultimate phase required for bridg- both a ceramic combustion system and a turing a tough attitudinal barrier (“ceramics are bocompound unit (to utilize waste heat). Re- brittle”) and to ensure transfer of this new en- maining technical issues include the need for gine technology will be to convince engineers, further materials research and the development designers, the automobile industry management, and consumers that ceramics can indeed serve in these capacities. This will require rig- sZAc~ording to a draft interim report (November 1983) by Charles River Associates for the National Bureau of Standards, orous testing of ceramic engines in real en- Technological and Economic Assessment of Advanced Ceramic vironments—in automobiles subjected to daily Materials: A Case Stud~r of Ceramics in Heat Engine Appli- use over long periods of time. cations: Since 1976, total U.S. Government support for R&D in ceramic heat engines has exceeded $10 million per year. In 1981, 74 percent Again, the benefits of strategic material sav-

of tota! go~.ernment funding was provided by DOE, 23 percent by ings from these new automobile engines will DOD, and about 3 percent by hTASA, In addition, Charles Ri\er Asso- be minor except for the possible changes in [.iates ha~re estimated that private funding of structural ceramics R&D 1s roughly’ equal to the amount of funding received by the prit’ate materials now used for catalytic converters. Re- ~ector from the government in this area. However, little informa- sults from the use of advanced ceramic tion is available about the focus of this private funding, i.e., what arnou n ts are devoted to heat engine applications. materials in vehicle applications and the knowl- 300 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

Photo credit A//isorJ Diw.won, Genera/ Mofors Ceramic components are being evaluated in the advanced gas turbine being developed by Allison Division of General Motors for the U.S. Department of Energy and NASA edge gained in processing of those materials performance of jet engines. This performance, will undoubtedly benefit the development of which translates into fuel economies, increases aircraft gas turbine engines, where real stra- as the inlet temperatures for a gas turbine en- tegic materials savings may be realized from gine increases. The current materials—super- the substitution of ceramics for superalloy alloys—used in the hot sections of the engine (chromium and, especially, cobalt). have operating limits over time of about 1,9500 F. Ceramics, on the other hand, can withstand AIRCRAFT TURBINE ENGINES operating temperatures up to about 2,500° F. This higher thermal efficiency allows for a re- The use of ceramics in gas turbine engines duction in airflow through the engine and a for human-rated aircraft is believed to be one corresponding smaller engine size. NASA has of the most challenging and difficult applica- estimated possible introduction of monolithic tions for advanced materials, owing to high ceramics as turbine blades in this application performance demands and the extremely high around the year 2010.53 risk of use involved. It is, however, an area in which the private sector is acutely interested because of a continuing desire to increase the Ssparkinson, op. cit. Ch. 7—Substitution Alternatives for Strategic Materials ● 301

Both the Air Force and NASA54 have main- DOE and the private sector. In the longer term, tained a continuing interest in ceramic gas both General Electric Co. and Westinghouse turbine engine development, In the private are investigating the application of advanced sector, both Pratt & Whitney and General Elec- ceramics in large gas turbines for electric pow- tric Co. have contributed to basic research on erplants. It is believed that the thermal efficien- structural ceramics for potential aircraft engine cies obtainable with the use of ceramics can applications. The Air Force Materials Labora- result in considerable energy savings. To be tory has sponsored small research programs on economic, the ceramic materials will have to the evaluation of ceramics and ceramic com- withstand long component lifetimes. These posites with potential use in aircraft systems. large units are not expected for use until 2000. NASA’s Lewis Research Center, in addition to Strategic materials savings could be realized managing DOE’s AGT programs, has sponsored through reduced use of wear- and corrosion- small research programs on structural cer- resistant materials, such as chromium alloy amics. NASA has also developed an overall steels. program to augment its current research efforts in ceramics. This program, with its focus on Composites the aircraft engine, is intended to broaden the technological base of advanced ceramics by co- Two or more materials, when combined into ordinating research in the various technical a composite, can yield a product with very im- needs (e. g., materials processing, nondestruc- pressive properties, including high strength tive testing, design methodologies). The devel- and stiffness, low weight, and good corrosion opment of this plan was coordinated with other and chemical resistance. In addition, compos- government agencies and industry but was not ites offer engineers unparalleled opportunities included in the final NASA fiscal year 1985 to tailor materials to particular applications. budget proposal. Most composites contain little or no strategic metals, As a result, the anticipated growing Much work remains in developing mono- market for composites has the potential to dis- lithic ceramics and processing techniques and place some strategic metal use. gaining applications experience before these materials will be acceptable for human-rated Technically, a composite is any material aircraft. The advantages of ceramics with re- composed of two or more physically distinct gard to engine performance and, to a lesser ex- phases. This category includes, among other tent, the potential for reducing the overall use materials, filled plastics, laminated materials, of first-tier strategic materials are incentives dispersion-strengthened alloys, and fiber-rein- that will help promote the still-substantial re- forced materials. Of these, the latter two are search, development, and commercialization most likely to affect strategic materials usage. tasks ahead. Dispersion-strengthened alloys were covered in the superalloy substitution section, so the discussion here will be limited to fiber-rein- STATIONARY ENGINES forced materials (commonly called advanced Stationary engines being considered for ce- composites). The basic characteristics of fiber- ramic materials applications are primarily gas reinforced composites are outlined in box 7-B. turbines for industrial and household use, including accessory power units for emergency Advanced composites can be made from sev- or peak load service. The possible development eral different combinations of matrix and rein- of these small generators for near-term use forcement materials, but are generally clas- have benefited from research sponsored by sified by matrix material. Table 7-12 shows the most common matrix and filament combina- s~The budget for NTASA’s Ceramic Technology for Aerospace tions. Organic (polymeric) matrix composites Heat Engines was an estimated $3.3 million in fiscal year 1983 (including fiberglass reinforcements) are the and $4.4 million in fisca] year 1984. only composite materials in widespread com- 302 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

Box 7-B.--Fiber-Reinforced Composites Fiber-reinforced composites, which are continuous filaments or whiskers embedded in a binding matrix, exhibit properties that exceed those of its constituents taken alone. Each constituent serves a special function. The filaments provide the strength and stiffness, while the matrix provides the body of the finished composite product and transfers the stresses and loads to the fibers. The mechanical properties of a composite depend on the composition of both the matrix and the fibers, the relative proportion of each, the orientation of the fibers, and the length of the fibers. By varying these parameters, the strength of a composite can be optimized for the loads encountered during its service. The filaments, which account for 25 to 80 percent of the composite by weight, can be either continuous or discontinuous (whiskers). Composites with continuous fibers have outstanding directional properties, while those with discontinuous fibers lend themselves more readily to such conventional metalworking operations as forging, extrusion, squeeze casting, and welding.55 In addition to strength and stiffness, the filaments enhance other properties of the composite. Often, the filaments will increase the maximum service temperature by adding high-temperature strength to the composite. Also, certain filaments can enhance thermal stability because they do not expand greatly when heated (i.e., low coefficient of thermal expansion). Since most of the load-bearing responsibility falls on the fibers, the importance of the strength characteristics of the matrix material is diminished. In fact, composites with the weaker, but lighter matrices such as plastics, carbon, and aluminum can have good strength. Therefore, composites are known to have good strength and stiffness for their weight (i.e., high specific strength and modulus). The matrix provides more than the body of the composite. In unidirectional composites, which have all the filaments aligned in a single direction, the matrix provides most of the transverse (per- pendicular to the fiber direction) and shear properties. Additionally, the matrix is responsible for much of the corrosion and oxidation resistance and for providing the visual and textural appearance of the finished composite product. Although matrices and fibers serve different functions, they are not independent. The thermal expansion mismatch between matrix and fiber must below to minimize thermal fatigue problems. Also, both phases must be chemically compatible at both fabricating and operating temperatures in order to prevent interdiffusion and the concomitant degradation of fiber strength. In some cases where such compatibility is inconvenient, barrier coatings can be applied to the fibers to inhibit interdiffusion.

SORobart R. Irving. “Metal Matrix Composite pose a Big Challenge to COnV9ntiOn~ mOYSt” 1- 4N, Jan. IZ, 19839 P. 35. mercial use. Carbon/carbon composites are in brought out at a recent National Science Foun- limited production for aerospace applications. dation workshop: Metal and ceramic matrix composites have yet to be commercialized, except in highly special- It is unlikely that this country will witness ized applications. any wholesale and direct substitution of com- prospects for composites to displace strate- posites for critical and strategic materials unless some national emergency dictates such gic materials varies by composite class, Or- steps. Rather, composite materials will make ganic or polymeric composites—the only com- inroads in those areas where weight and/or posites now in widespread use—will seldom cost are the primary drivers. Most of the criti- directly replace the first-tier strategic materials cal materials, namely cobalt, chromium, plati- considered in this report, but the indirect ef- num, tungsten and tantalum are used because fects of their use could be significant, as was of their unique resistance to high temperature, Ch. 7—Substitution Alternatives for Strategic Materials ● 303

Table 7-12.—Advanced Composite Materials Options

NOTE Circles ind!cate composites which have been or are now In production status SOURCE Stanley L Channon, /ndustria/ Base and Qua/IfJca/Ion of Composfte Mater(a/s and .SWctwes (An Execut/ve Overview) (Alexandria. VA. Institute for Defense Analyses, March 1984), working paper, p 3

corrosion or their catalytic phenomena. In no composites may eventually be used in very way can the composite materials we ordinar- high-temperature superalloy applications. ily consider, graphite, glass, or Kevlar with epoxy, polyimide, or thermoplastic resins be con- The high cost of advanced composite mate- sidered for direct substitution. The impact of rials is an important deterrent to their wide- composites will come indirectly in secondary spread use. Table 7-13 shows the high relative effects. An example is a gas turbine in which raw material costs of various advanced com- the weight reduction by the use of composites posites. Moreover design, fabrication, testing, for stationary, low-temperature components and inspection costs are often higher for com- will cascade into downsizing of high-tempera- posite materials than for monolithic materials. ture components and result, not in elimination These costs can be expected to decrease as the of the critical metals, but in a significant re- materials come into more widespread use and duction in the amount of strategic material needed. se as processing and fabrication problems are overcome. Figure 7-3 shows the decrease in Carbon/carbon composites, used primarily in graphite fiber costs since 1970. aerospace applications, may also have indirect effects on strategic materials through redesign The advanced composites industry has rap- of products. Metal and ceramic/glass matrix idly become internationalized, with the United States, Japan, Great Britain, France, and other S“William E. Winters, “Use of Composites in High Perform- countries participating in individual segments ance Structural Application s,” Materials and Society, vol. 8, No. of the industry. Very often, separate fabrica- 2, 1984, p. 313. tion steps needed in the manufacture of par- 304 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

Table 7-13.—Price Range of Selected Composite Raw Materials

1985 Reinforcement cost/pound Graphite grades: Rayon precursor fibers (woven cloth) ...... , . . $70 to $80 PAN precursor (commercial and large-volume aerospace orders)...... $17 to $40 Pitch grade (high-volume aerospace) ...... $35 to $275 Graphite fiber prepreg (PAN grade, 60 percent fiber) ...... $36 to $40; up to $100/lb for specialty products Boron: Tungsten core...... $365 to $375 Boron fiber prepreg (carbon core fiber): 250° cure ...... $270 to $300 350° cure ...... $310 to $340 Kevlar: Type 29 ...... $5.40 to $39.25 Type 49 ...... $12.55 to $48.20 SOURCE Va~ous Industrial producers contacted~ythe Offlceof ~chnology Assessment

a domestic PAN production facility that reduces U.S. dependence on foreign PAN to 70 percent of domestic needs. However, this domestic precursor is not yet qualified for all defense programs, so in many critical applications dependence on foreign supplies is still near 100 percent. France, similarly, is the source of all quartz fibers and of an important curing agent used in epoxy resin formulations.57 It has been estimated that, in most segments of the composites industry, U.S. production capability could be doubled within 2 years if the 58 ;970 1975 1980 1985 need arose. Years SOURCE1970.1980d ata: Commercia/ Opportunities for Advanced Composites, Polymer (Organic) Matrix A A Watts (ed)(Philadelphla, PA. American Society for Testing and Materlals,1980), publication 704,p 90; 1985data provided bylndustry producers. Polymers, such as polyesters, epoxies, and polyamides, are by far the most developed of ticular composites are undertaken in separate all composite matrix materials. They are most countries. Although advanced composites are frequently reinforced with (fiber) glass, graph- not strategic materials in the ordinary sense of ite, or aramid (commonly referred to by its the term, a growing concern in the defense Dupont tradename, Kevlar) filaments. Poly- community concerns U.S. dependency on for- meric composites can have performance capa- eign processing capacity to fabricate key com- bilities that are commonly thought unattaina- posite components. Until recently, for exam- ble by plastics. For example, polyimide ple, the United States depended on Japan and composites are capable of continuous opera- Great Britain for virtually all carbon fiber rein- tion at 7000 F in some applications. Organic forcements made from polyacrylonitrile (PAN), one of three possible precursor materials for Szstan]ey L. Channon, Industrial Base and Qualification of carbon fiber. The United States now produces Composite Materials and Structures [An Executive Overview) (Alexandria, VA: Institute for Defense Analysis, March 1984), some carbon fiber using foreign PAN precur- p. 10 (working paper). sor materials. Also, Union Carbide has opened ‘eIbid., p. 16. Ch. 7—Substitution Alternatives for Strategic Materials ● 305 composites are attractive because they com- recent aerospace applications for advanced bine these good physical properties with light- polymeric composites. In each of these appli- weight and ease of fabrication. Consequently, cations, advanced composites were selected for these materials may reduce the need for stra- their high specific properties. Specific proper- tegic materials—not via direct substitution, but ties refer to common materials properties (e.g., through the cascading effects of downsizing strength), normalized to the weight of the ma- and redesign allowed by the decreased weight terial. Organic composites have very good and innovative fabrication. strength and stiffness for their weight and are therefore said to have high specific strength The total U.S. consumption of polymer com- and stiffness. posites in 1982 approached 1 million metric tons (tonnes). Of this, 618,000 tonnes of poly- Aside from polymer/glass composites, the ester/glass (fiberglass) was the largest share, polymeric composites with the greatest poten- Additionally, 106,000 tonnes of reinforced ther- tial for continued growth appear to be epoxy/ moplastics and 28,000 tonnes of epoxy resins graphite and epoxy/aramid. Epoxy/boron (de- (equivalent to approximately 90,000 tonnes of spite its early use) is no longer seen as promis- epoxy-based composites) were consumed.59 ing, owing to difficulties in processing the ex- U.S. consumption of composite reinforcing tremely hard and brittle boron fibers, to high filaments in 1982 was: glass, 280,000 tonnes; costs associated with producing the fibers, and aramid, 900 tonnes; carbon (graphite), 800 to effective competition from the graphite and tonnes; and other, 10 tonnes, aramid systems.

Fiberglass-reinforced organics (which are not Carbon Matrix generally considered advanced composites) dominate current markets. High-volume appli- A carbon matrix reinforced with carbon or cations include boat hulls, plumbing and bath- graphite fibers is commonly known as a car- room fixtures, and automotive body and trim bon/carbon composite. They are high-cost panels, which are often made from poly- materials used in specialty applications and ester/glass composites. Low raw material costs are, for the most part, in early developmental and automated, high-speed production proc- stages. To date, commercial applications in- esses have made possible the widespread use clude rocket nozzles and exit cones, re-entry of polyester/glass composites. Figure 7-4 shows vehicle nosetips, and aircraft brakes. 60 selected applications for different fiberglass These materials are very strong and tough, composites. and have the potential for maintaining these 0 Because of their high price, use of other poly- properties at temperatures up to 4,500 F. mer composites has been largely limited to aer- Moreover, carbon/carbon composites are very ospace applications, sports equipment, and au- light—somewhat less than 25 percent of super- tomotive applications. Low-volume aerospace alloy density and about 50 percent of ceramic applications for polymer composites have in- (monolithic or ceramic/ceramic composite) creased since 1968, when an epoxy/ boron hori- density—dimensionally stable, wear resistant, zontal stabilizer for the F-14 jet was first used and free of strategic metals, on an experimental basis. In 1970, the Grumann There are, however, several disadvantages Corp. approved this application for limited which must be addressed. Controlled environ- production. ments or impervious coatings must be used to Since then, air frames, air panels, satellite prevent oxidation problems in high-tempera- structures, and sporting goods have been built ture applications, and special weaves of graph- from advanced composites, Table 7-14 shows ite fibers are needed to prevent surface fatigue cracking caused by low interlaminar strength. 5e]Oe] Clark, ~ofen~jaj of Composite Materia]s to Replace c~ro- mium, Cobalt, and Manganese in Critical Applications, OTA contract report, 1984. eochannon, op. cit., p. 36. 306 Ž Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

Figure 7-4.— Fiberglass Composite Applications

I f Fabrics 1 I I I I Manufacturing methods and design

Pressure Rods Boats bottles Tubes Silos Silos Shapes Car bodies Tubing Building Scooters Pipe components Motorcycles Missile Electrical Furniture shells appliances Trucks Nozzles I Structural Homes Chemical tanks Swimming pool Bath tubs Plumbing fixtures

SOURCE: Cornmerck?l Opportunities for Advanced Composites, A. A. Watts (cd.) (Philadelphia, PA: American Society for Testing and Materials, 1980), publication 704, p. 112.

In addition, carbon/carbon composites are very ernment and industry experts found an ex- expensive as a result of the complex weaving pected need for 800,000 pounds of carbon/ procedures, long processing times, and high carbon by 1990—-a quadrupling in demand in energy consumption involved in processing. As an 8-year period.61 As already discussed, some with most developing materials, the cost is ex- concern exists about U.S. reliance on Japan for pected to decrease as the technology emerges most of its carbon fibers made from PAN. Al- and production rates increase. though rayon- and pitch-based carbon fibers exist, PAN-based fibers are used in most current Development work at NASA and in indus- applications. Figure 7-5 projects defense and try is aimed at reducing the high fabrication civilian needs for carbon/carbon composites costs of carbon/carbon composites. Improving through 1990; this may be an overestimate, due composite strength and stiffness and increas- to changed program priorities. ing the reliability of coatings and oxidation- inhibiting matrix additives are also goals of this Ceramic/Glass Matrices work. Monolithic ceramics and glasses are brittle U.S. carbon/carbon composite use is expected and exhibit low fracture toughness. The tough- to grow rapidly, primarily because of defense ness of these materials can be improved by and aerospace needs. In 1982, an estimated 200,000 pounds of carbon/carbon was con- 61The 1982 estimate and the 1990 projection were made by sumed in the United States. One survey of gov- Channon, op. cit., p. 42. ——— ..——— - -—

Ch. 7—Substitution Alternatives for Strategic Materials ● 307

Table 7-14.—Current Aircraft Applications for Advanced Composite Materials

Component Source Remarks Wing: F-15 composite wing ...... McDonnell Douglas Graphite/epoxy used to form wing ribs and spars over much of the wing substructure; target weight savings for entire wing, 25°/0 C-5A leading edge slat ...... Lockheed-Georgia Basic design is graphite/epoxy skins over aluminum honeycomb core: weight savings, 22% F-5 main landing gear door. . . Northrop Weight savings, 36°/0 737 spoilers ...... Boeing Basic design is graphite/epoxy skins over aluminum honeycomb core with aluminum and fiberglass fittings, edgemembers and ribs: 108 units (27 ship sets) have been fabricated and service tested: weight savings, 15% A-4 landing flap...... McDonnell Douglas Basic design is graphite/epoxy skins over aluminum honeycomb with aluminum edgemembers except for a molded graphite/epoxy actuator rib: weight savings, 47 % F-5 leading edge flap ...... Northrop Weight savings, 32% B-1 leading edge slat ...... Lockheed-Georgia Basic design is graphite/epoxy skins over aluminum honeycomb core with aluminum and fiberglass ribs and trailing edge close-out. Front beam is molded graphite/epoxy along with the leading edge structure: weight savings, 15%; cost savings, 35% Empennage: A-4 horizontal stabilizer ...... McDonnell Douglas Basic design is multishear web/solid-laminate skin concept; shear web constructions are both graphite/epoxy laminates and fiberglass core- graphite/epoxy skin honeycomb structure: weight savings, 28% F-5 horizontal stabilizer ...... Northrop Basic design is graphite/epoxy skins over aluminum honeycomb core with aluminum close-out ribs, integral spar, and torque tube fitting: weight savings, 23°/0 F-4 rudder ...... McDonnell Douglas Used graphite/polymide in leading edge spar; other high- temperature materials used were fiberglass olyimide honeycomb core, boron/polyimide prepreg. titanium, and high-temperature adhesive DC-10 upper aft rudder , . . . . . McDonnell Douglas Graphite/epoxy rudder is 32 ft2 rib-stiffened-skin design manufactured in a co-cured assembly; composite component weight is 57 lb: weight savings, 37% L-101 1 vertical fin ...... Lockheed Graphite and Kevlar composite box beam and skins to replace 9 x 25 ft primary structure; composite component weight is 640 lb (17°/0 metals): weight savings, 25°/0 Fuselage: A-7 speed brake ...... Vought Aeronautics Built-up molded laminate design using graphite/epoxy elements bonded with structural adhesive: weight savings, 400/0 F-5 speed brake ...... Northrop Weight savings, 23°/0 CONVERSION FACTORS 1 ft] – O 1 m’ Ilb = O 45 kg If! = 03 m SOURCE CornmercM Opporlunft~es focAdvarrced Cornpo.wfes, A. A Watts (cd.) (Ph!ladelphla, PA American Soc!ety for Testing and Mater!als, 1980), publication 704, p 104 reinforcing them with ceramic fibers to limit Most glass compositions (e.g., lead, quartz, the growth of cracks. Currently, glass matrix borosilicate, and boron oxide) have been rein- composites are more developed than their forced on a laboratory scale. They have been ceramic counterparts. Ceramic matrix compos- allied with a variety of filaments, including alu- ites are still confined to experimental applica- mina, silicon carbide, graphite, and tungsten, tions–-they are not currently used commercially, in order to improve their toughness and high- 308 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

ites will need substantial additional research and development. They may eventually be used for turbine vanes, blades, and cases.

800 - Metal Matrix Metal matrix composites are relatively new 600 - structural materials. Many metals, including lead, titanium, stainless steel, magnesium, cop- 400 - per, nickel, and zinc, have been experimented with, but the most highly developed are alumi- 200 - num matrix composites. Virtually any metal can be reinforced; benefits include increased

0 1 I I 1 I I I 1 specific strength compared to conventional 1982 83 84 85 86 87 88 89 90 1991 metals, improved wear resistance, and higher Years allowable operating temperatures. However, ‘Th~~e e~tlrnates, reported ifl 1~, reflect anticipated ‘se ‘n ‘eaPons the gains from reinforcement are often insig- systems, aircraft brakes, andengines at that time. Recent changes in program planning indicate that these needs may be overestimated. nificant when compared with the costs. SOURCE: Stanley L Channon, /rrdustria/ Base and Qua/if/cation of Composite Ma?eria/s and Structures (An Executive Overview) (Alexandria, VA: In. Metal matrix composites are still primarily stitute for Defense Analyses, March 1984), working paper, p 43 laboratory materials. However, some successful commercial applications exist. Toyota Mo- temperature strength. One promising example tor Co. has developed an aluminum/alumina is United Technologies’ lithium aluminum sili- composite for reinforcing the piston ring cate glass, reinforced with silicon carbide groove in production diesel engines and is de- fibers, This material has roughly 10 times the veloping composite pistons and cylinder heads. fracture toughness of the unreinforced glass up In such applications, improved performance to about 2,0000 F. is highly valued, and this has been the justifi- cation for developing metal matrix composites, Ceramic matrices that have been examined Table 7-15 shows some potential commercial experimentally include alumina, boron nitride, applications of metal matrix composites, zirconia, silicon nitride, and silicon carbide, Reinforced with either inorganic materials or Copper composites are under consideration metal wires, these ceramics could possibly be for use in transmission lines. Lead is reinforced used in applications with temperatures exceed- for use in batteries because in certain applica- ing 3,0000 F. As with glasses, ceramics are tions lead lacks the strength to support its own reinforced to improve their toughness. They do weight. Aluminum matrices, containing boron, not, in general, benefit from any improvement alumina, or silicon carbide fibers are designed in high-temperature properties. to compete with titanium. Reinforcing an aluminum alloy can raise its allowable service Reinforcement of higher temperature ce- temperature by 2000 F, permitting its utiliza- ramics has been relatively unsuccessful to date tion in many applications where it otherwise because of fiber strength losses due to fiber and could not be used. Aluminum/graphite and alu- matrix interaction at high fabrication tempera- minum/boron composites have been developed tures, fiber recrystallization, and fiber fracture for use at 525° F. due to abrasion and stress during processing. As a result of these problems, NASA research Fiber-reinforced superalloy (FRS) technology has been redirected to ceramic composites emis under development in the NASA Metal Ma- ploying weak bonding between the fiber and trix Composite Program, The aim of this pro- the matrix and to developing processing tech- gram is to develop the technology to fabricate nologies that employ lower temperatures and an FRS turbine blade capable of operating at no pressing, Clearly, ceramic/ceramic compos- a surface temperature of 1,100° to 1,200° C Ch. 7—Substitution Alternatives for Strategic Materials ● 309

Table 7-15.—Potential Commercial Applications of Metal Matrix Composites -.. Application Desired properties Suggested composite systems Aerospace: Space structures...... lightweight, stiffness B/Al, B/Mg, Gr/Mg Antennae ., ...... lightweight, stiffness B/Al, B/Mg, Gr/Mg Aircraft: Airplanes: Pylons ...... lightweight, stiffness, heat resistance B/Al, SiC/Al Struts ...... lightweight, stiffness, strength B/AI, SiCa/Al Fairings ...... lightweight, stiffness B/Al, SiCa/Al, Gr/Al Access doors ...... lightweight, stiffness, strength B/Al, SiCa/Al Wing box ...... lightweight, stiffness, strength B/Al, SiCa/Al Frames ...... lightweight, stiffness, strength B/Al, SiCa/Al, Gr/Al Stiffeners ., ...... lightweight, stiffness, strength B/Al, SiCa/Al, Gr/Al Floor beams ...... lightweight, stiffness, strength B/Al, SiCa/Al, Gr/Al Fan and compressor blades ...... strength, stiffness, heat resistance, B/Al, SiCa/Al, Gr/Al impact resistance Turbine blades ...... strength, stiffness, heat resistance, tungsten or tantalum fiber-reinforced impact resistance superalloys

Turbine blades strength, stiffness, heat resistance, directionally solidified eutectics Ni3Al-

erosion resistance Ni3Cb, Ni3Al-Ni 3Cb-N i, Ni-Mo wire Helicopters: Transmission cases ...... lightweight, stiffness, strength Truss structures ...... lightweight, strength, stiffness Swash plates ...... lightweight, strength, stiffness Push rods...... lightweight, stiffness, strength Trailing edge of tail rotor blades ...... lightweight, stiffness, strength Gr/Al, SiCa/Al Automotive: Engine blocks ...... lightweight, heat resistance, strength, SiCb/Al stiffness Push rods ...... lightweight, heat resistance, strength, SiCa/Al, B/Al stiffness Frames, springs ...... lightweight, strength, stiffness Piston rods ...... lightweight, strength, stiffness Battery plates ...... stiffness Electrical: Motor brushes ...... electrical conductivity, wear resistance Gr/Cu Cable, electrical contacts . . . . electrical conductivity, strength GrlCu

Utility battery plates...... stiffness, strength, corrosion resistance Al2O 3Pb, Gr/Pb, fiberglass/Pb Medical: X-ray tables, prosthetics . . . . lightweight, stiffness, strength B/Al,, SiCa/Al Wheelchairs ...... lightweight, stiffness, strength B/Al, SiCa/Al Orthotics ...... lightweight, stiffness, strength B/Al, SiCa/Al Sports Equipment: Tennis racquets ... , ...... lightweight, stiffness, strength B/Al, Gr/Al, SiCb/Al Ski poles ...... lightweight, stiffness, strength B/Al, Gr/Al, SiCb/AL Skis ...... lightweight, stiffness, strength B/Al, Gr/Al, SiCb/AL Fishing rods ...... lightweight, strength, flexibility B/Al, Gr/Al, SiCb/AL Golf clubs ...... lightweight, strength, flexibility B/Al, Gr/Al, SiCb/AL Bicycle frames ...... lightweight, strength, stiffness B/Al, Gr/Al, SiCb/AL Motorcycle frames ...... lightweight, strength, stiffness B/Al, Gr/Al, SiCb/AL Textile industry Shuttles ...... lightweight, wear resistance B/Al, Gr/Al, SiCa/AL Other: Bearings ...... — Gr/Pb Chemical process — equipment ...... Al2O 3/Pb — Abrasive tools ...... B/Al2 O 3 , SiC/Al2 O 3 aslc whisker andlor continuous SIC filament bSIC whiskers only

SOURCE Commercial Oppotiun(fies for Advarrced Cornpos/fes, A A Watts (ed ) (Philadelphia, PA American Socfety for Testtng and Materials, 1980), publication 704, P 119. 310 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

(2,000° to 2,200° F). FRS development has been Ceramic whiskers and fibers also have been carried out almost solely through NASA spon- used to strengthen metal matrices. Such rein- sorship. With no end user deeply committed forcement is attractive because ceramic whisk- to the material, its development pace has been ers and fibers have high strength at ambient slow.62 and elevated temperatures, high elastic modulus, good oxidation resistance, and low density, NASA’s development prototype is a cobalt- It has been found that ceramic reinforcement, free (15 percent chromium) iron-based tungsten usually as chopped fibers, can significantly im- fiber-reinforced superalloy (TFRS). This exper- prove the wear resistance of certain metals. imental material has been successfully fab- However, results of research with both the ricated into a turbine blade, but has not yet whiskers and the long single crystal fibers have been engine tested. Cobalt- and nickel-based su- been disappointing so far. peralloys can be used as a matrix material, but only if a protective barrier is provided to pre- One of the major advantages of metal com- vent tungsten/matrix interdiffusion. Hence, the posites over polymer composite systems is that first FRS material likely to be commercialized there is not as large a difference between trans- will probably be cobalt free. verse and longitudinal strength. Transverse strength in metal composites is essentially In addition to their high-temperature prop- equal to the strength of the matrix metal. An erties, TFRSs are good substrates for thermal additional advantage, which can be important, barrier coatings (TBC), which also raise engine is that metal matrix composites are electrically temperature capabilities. The thermal expan- conductive. sion coefficient of TFRSs is low compared to superalloy and approaches that of current Generally, the cost of metal composites is on TBC. Such coatings applied to TFRS compo- the order of 10 times the cost of the matrix nents would, therefore, show less tendency to metal alone. Much of this differential is due span (i. e., crack and flake particles off the sur- to the high raw material cost of the reinforce- face) than they do with present superalloy, ment. Also, processing complexities add sig- (Spalling problems prevent TBC from being ap- nificantly to the total cost. For this reason, plied to present superalloy blade and vane air metal matrix composites are only considered foils.) Further, regardless of the application of for applications where the value of their added a TBC, the high thermal conductivity of TFRSs performance is great, permits the use of simpler internal blade geometries for cooling air, thereby lowering man- Prospects for the Future ufacturing costs, Advanced composites are now entering a Several major technical problems currently period of rapid growth. Much of this increased limit the prospects for widespread use of use will occur in the transportation industry, TFRSs in turbines. The expansion coefficient where there are significant incentives to de- of the tungsten fibers is approximately one- crease the weight and increase the perform- third that of the matrix. This induces thermal ance of materials. Over the next 10 years, the fatigue in a TFRS blade, considerably reduc- aerospace industry could represent over 50 per- ing its life. Also, tungsten fibers oxidize rapidly cent of the total high-performance composites at turbine operating temperatures if exposed market, Significant growth in the automobile to the hot gas, Accidental exposure of the fibers and industrial sectors may occur in the late in service could lead to rapid failure of the 1980s.63 blade. At present, insufficient confidence exists that the probability of such exposure can be kept acceptably low, even with the application of a coating,

ezparkinson, op. cit. esclark, op. cit., p. 1. Ch. 7—Substitution Alternatives for Strategic Materials . 311

Aerospace Applications consideration as substitutes for conventional Most aircraft applications of composite ma- superalloys or directionally solidified eutectics. terials do not require high-temperature per- They have not yet seen active operating serv- formance and can be satisfied by polymer or ice and would require a serious testing com- aluminum matrix composites in such applica- mitment before acquiring the confidence for tions as airframe and structural parts. The use industrial implementation, of aluminum matrix composites in these appli- Today, carbon/carbon composites can be fab- cations represents the largest foreseeable mar- ricated into forms that may be useful in the gas ket for metal matrix composites, The down- turbine for combustor liners, cases, afterburn- sizing and redesign, made possible through the ers, and nozzles. A one-piece bladed turbine reduction in weight, has the potential to reduce disc has also been formed, Industrial-research strategic materials usage. is at such an advanced stage for low- stress ap- Weight reduction in aircraft translates into plications that jet engine afterburners made of fuel savings, lower operating costs, and in- composites could be in use in 5 years. High- creased profits for commercial aircraft; in- stress applications are 10 or more years away. creased range, payload, and maneuverability The complex qualification procedures used in for military aircraft; and reductions in manu- the composites industry could affect timing, as facturing due to parts consolidation in both well. These procedures are discussed in the cases. The impetus for substitution of compos- concluding section of the chapter. ite materials for conventional materials comes Carbon/carbon composites, despite their ad- from market forces alone rather than from any vantages in low-stress applications, cannot be desire to substitute strategic materials. Con- expected to satisfy high-temperature, high- stant economic pressure can be expected to stress requirements for jet engine applications stimulate materials innovation. for another 10 to 20 years. Use of these materi- Metal matrix composites, like advanced als will depend on developments in oxidation ceramics, ceramic composites, and carbon/car- inhibitors and nondestructive testing methods, bon composites also have some potential for While materials prices are of negligible impor- use in the jet engine industry, where the use tance when compared to the overall cost of an of composite materials is expected to be per- engine, efficient implementation of these ma- formance- and market-driven. Cost considera- terials in jet engines will require a major over- tions for jet engine materials will be of second- all redesign effort that will be both costly and ary importance relative to the overall cost of risky, Industry seems to believe that govern- the engine. ment risk-sharing will be necessary to promote a rapid development of these novel tech- While substantial technical problems must nologies. be overcome, these advanced materials could boost operating temperature above 2,500° F, It is not expected that engine blades will be far beyond even the most advanced superalloys made of carbon/carbon composite materials, now under development, However, use of if only because reliability criteria for rotating high-stress parts are far from met, and testing these nonmetallic materials is not expected by 64 NASA for human-rated engines until after the has been far from sufficient. year 2010—roughly the same period as for ad- Automotive Applications vanced ceramics. Tungsten fiber-reinforced superalloys will, Currently, all the major automotive manufac- in all likelihood, be used in jet engines only in turers have active development programs in- the event of a prolonged crisis in the cobalt vestigating the use of advanced composites in market. They have not satisfied important reliability criteria necessary for serious long-term ~4c]ark, op, cit., p. 75. 312 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

automotive structures. A wide variety of pro- design concepts lead to a general expansion of totypes have been fabricated of advanced com- composite materials markets and lower prices. posites, including hinges, brackets, leaf springs, Corporate Average Fuel Economy (CAFE) reg- drive shafts, doors, and door guard beams. ulations have been instrumental in creating an Many of these components have been tested environment for novel new concepts of auto- in actual service over the last few years and motive designs and materials usage. However, have been found to perform well. Composite these pressures have been relieved by automo- parts equivalent to steel parts in performance tive downsizing to meet CAFE standards in the have been built. Significant redesign of these short run. If CAFE requirements become more components has been accomplished to take stringent and make downsizing less profitable advantage of the design flexibility which com- in the U.S. market, polymeric and metal ma- posites offer. Table 7-16 shows the potential au- trix composites could be a very important tomotive applications for Kevlar-reinforced means of achieving weight reduction. New composites. auto body parts production and assembly technologies, which are likely to affect the use of Composites will also see increased use in au- composites in automotive structures, are ex- tomobile engines. Toyota has used aluminum pected to see implementation over the next 10 reinforced with polycrystalline aluminum ox- years. Use of composites in substantial quan- ide fibers for the connecting rods in an exper- tities is not expected to increase before the imental engine. Advantages of composite use 1990s. The impact of composites technology in engines could include increased fuel effi- on critical materials (mostly chromium) will be ciency, faster engine response, and reduced en- 65 largely indirect, through weight reduction and gine vibration. performance enhancement. Large-scale use of composites by the automotive industry could occur as broader consumer acceptance, lower production costs, and Barriers to the Adoption of Composites Composites have some major technical prob- B6Meta] Progress, February 1984, p. 14. lems which counter the attractiveness of many of the properties described above and inhibit Table 7-16.-Potential Automotive Applications for the introduction and effective use of these Composites of Kevlar 49 Aramid materials. There is little doubt that many of these problems will be overcome as the tech- Potential application Reasons for use nology matures, Leaf springs ...... reduced weight, stiffness, fatigue resistance Use of composites in many potential applica- Transmission tions has been discouraged by the lack of estab- supports ...... reduced weight, stiffness, vibration damping lished design practices and insufficient design Drive shafts ...... reduced weight, stiffness, fatigue data, Additionally, when composites are se- strength lected for use, they are often used as direct sub- Bumper beams . . . . . reduced weight, stiffness, damage resistance stitutes for conventional materials without re- Radiator supports. . . reduced weight, stiffness design. The performance of composites in such Anti-intrusion circumstances is often less than optimal. The beams...... reduced weight, damage resistance implementation of sophisticated computer- Wheels ...... reduced weight, damage aided design algorithms promises to reduce resistance greatly the complexity of designing for com- Body parts ...... reduced weight, stiffness, damage resistance posite structures and allow more effective use Clutch faces, brake of composites, linings . . . ~ ...... strength, wear resistance, high temperature, frictional properties Another problem of composites is the high SOURCE: Commercial Oppoflunfties for Advanced Composites, A. A. Watts (cd.) cost of raw materials, especially high-perfor- (Philadelphia, PA” American Society for Testing and Materials, 1980), publication 704, p. 119. mance reinforcements such as boron, graph- Ch. 7—Substitution Alternatives for Strategic Materials Ž 313 ite, and aramid. Prices for these reinforcements cation problems, low impact strength, and low range from $20 per pound to well over $100 thermal shock resistance. Recent research, per pound. For this reason, advanced compos- however, has shown that the ductility can be ites (those with specific properties exceeding improved by microalloying and thermome- steel) are selected only for applications where chanical treatment, This raises the prospect of their special properties are highly valued. using the intermetallics in high-temperature applications, such as gas turbines, where strate- Contributing to the high cost is the poor gic materials are currently used. productivity of composite product fabrication. Processing composites is generally labor-in- Nickel Aluminizes tensive and time-consuming. While innovative techniques for automated, high-speed process- Single crystals of Ni3Al exhibit good ductil- ing have been developed, their use is not wide- ity, but polycrystalline Ni3Al is very brittle. Be- spread and is usually limited to forming specific cause of the cost and inconvenience of single types of goods. Moreover, once a nonmetallic crystal-technology, monolithic Ni3Al is unat- composite is fabricated, the integrity of the tractive for most applications.66 Research at structure is difficult to assess without destroy- Oak Ridge National Laboratory has demon- ing the component. This drawback is being strated that small additions of boron (around overcome with the advent of nondestructive 0.05 percent) to the polycrystalline form re- tests based on ultrasound and laser holography moves the ductility problem.67 Microalloying and with improved design procedures and in- (doping) with boron makes it possible to ex- creased experience in end uses. trude, forge, and cold roll these materials, In addition to being fabricable, these boron-doped Long-Range Order Intermetallic Materials aluminizes have tensile strengths that compare favorably with those of Waspaloy, Hastelloy X, Materials in which two elements are ar- and 316 stainless steel. ranged in an ordered pattern throughout the Possessing high-temperature strength and ox- entire crystal lattice are known as long-range idation resistance, and adequate ductility and order intermetallics. Although there are many fabricability, boron-doped Ni3Al alloys have po- types of intermetallics, three families are par- tential as structural materials. The aircraft gas ticularly interesting with respect to the use of turbine industry is beginning to evaluate the strategic materials: material for various applications. Polycrystal-

Nickel aluminizes , , ., ... , ...... NiAl and Ni3Al line forms are being considered for discs—

Titanium aluminizes ...... TiAl and Ti3Al operating temperatures up to 1,250° C, or Iron aluminizes ...... , ...... FeAl and Fe Al 3 2,280° F, seem possible. Combustor liners and None of the above materials contains any co- turbine vanes are other possible uses. A sin- balt or chromium, but other compounds could gle crystal Ni3Al turbine blade is also of in- contain strategic materials. Very little informa- terest. tion concerning long-range order materials is The good oxidation resistance of Ni3Al re- publicly available, making it difficult to assess sults from the formation of aluminum oxide the state of the technology or determine when scales, which protect the alloy, Recent work it will be commercialized. has shown that alumina-forming materials Each of these six materials has low density as well as excellent high-temperature stability, 88 NiaA] is most commonly known as the dispersion phase strength, and oxidation resistance. These prop- [gamma prime) that imparts high-temperature strength to nickel- erties have been known for many years, but the based and iron-nickel-based superalloy. materials have seen little service because of 5TC. T. Liu and C. C. Koch, “Development of Ductile PoIY- crystalline NiqAl for High-Temperature Application s,” Techni- brittleness problems. Their poor ductility, par- cal Aspects of Critical Materials Use by the Steel Industry, Vol- ticularly at low temperatures, results in fabri- ume 1113, NBSIR 83-2679-2, June 1983, op. cit.

38-844 0 - 85 - 11 , ~L 3 314 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

have excellent hot-corrosion resistance in coal of this new technology on the use of strategic energy conversion systems. Such findings sug- materials are as yet unknown. As emphasized gest that aluminizes may be useful as structural in a 1983 NMAB study: materials in sulfiding environments. Work is continuing in the field of rapid solidification and its applicability to the reduc- Titanium Aluminizes tion of strategic elements. Work to date indicates that this method of processing holds The ductility problems of Ti3Al are overcome by microalloying with columbium (niobium), much promise for attaining at least a degree as a second-tier strategic material. Ti Al is being of independence from such elements cobalt 3 and chromium in various systems of alloys. studied in the United States for use in aircraft However, it must again be emphasized that, for gas turbine engine compressor rotors and blades critical alloy applications, the principal moti- and in low-pressure turbine discs, blades, and vation in alloy and process development is the vanes. These materials are potential (albeit ex- achievement of improved mechanical, physi- pensive) substitutes for some superalloy (e.g., cal, or chemical properties, Whether the suc- Waspaloy and Inco 713.)68 cessful application of RS technologies will be accompanied by a reduction of the use of stra- 70 Iron Aluminizes tegic elements cannot be foreseen at this time. Pratt & Whitney Aircraft has studied these Rapid solidification refers to the chilling of materials in conjunction with rapid solidifica- molten materials into solids at very high cool- tion rate processing.69 The inherent ductility ing rates. Materials are considered rapidly problem was removed and an increase in ten- solidified when they have been cooled fast sile strength achieved by microalloying with enough to assume microstructure that cannot be generated by conventional solidification titanium diboride (TiB2). The particular interest in these materials is for use as sheet for techniques. Cooling rates obtained with RS combustor liners—up to temperatures of 1,800° processes are often on the order of millions of to 2,0000 F. Iron aluminizes are also of inter- degrees Celsius per second. est for turbine discs, blades, and vanes at lower Because of the heat transfer characteristics temperatures, and for cases. needed to attain the requisite high cooling Nickel, titanium, and iron aluminizes are all rates, RS materials must have high surface in relatively early stages of development. While area-to-volume geometries. This requirement they have shown great promise to date, much limits the shapes of RS products to powders, remains to be learned concerning the full range flakes, and ribbons. These are rarely used in of their material properties. the as-cast form; usually, consolidation and mill working operations are needed. The cast- Rapid Solidification ing, consolidation, and mill working processes are described in box 7-C. Many new and potentially useful materials are being developed using technologies that so- RS in Strategic Materials Substitution lidify molten alloys extremely quickly. These A vast number of alloy systems have been rapid solidification (RS) technologies enable rapidly solidified in the course of scientific in- materials engineers to improve current alloys quiry, but commercial interest in RS has been and to explore previously unattainable alloy limited to only a few classes of alloys. Of these, compositions and microstructure. The effects transition metal-based glasses and aluminum-, nickel-, and iron-based crystalline alloys seem ~Parkinson, op. cit., p. 49. 71 @@JoSeph Moore and Colin Adam, “Potential of Rapid Solidifi- to have the greatest commercial potential. In cation for Reduction of Critical Element Content of Jet Engine Components, ” Conservation and Substitution Technology for PONMAB.406, op. cit., p. 68. Critical Materials, Vol. IZ, NBSIR 82-2495 (Springfield, VA: Na- 71J. V. Woods, “Rapid Solidification Processes and Perspec- tional Technical Information Service, April 1982). tive Part I I,” Materials and Design, vol. 4, April/May 1983, p. 712. Ch. 7—Substitution Alternatives for Strategic Materials Ž 315

general, glassy materials are most interesting Nickel alloys with abnormally high refrac- for their magnetic or electrical properties, tory metal concentrations for gas turbines. while crystalline alloys are of interest for struc- Steels with submicron-sized phase disper- tural applications. Some of the potential appli- sions for higher speed bearings. cations of RS materials include: formation which is subject to special export controls. It should not be transferred to foreign nationals in the U.S. or abroad with- Aluminum alloys for aerospace structures. out a validated export license. Distribution is limited to U.S. Gov- RS aluminum would compete with polymeric- ernment organizations. Other requests for the document must and, possibly, aluminum-matrix composites be referred to DARPA/TIO, 1400 Wilson Blvd., Arlington, VA and titanium in these applications.72 73 27709. —. TSC$ Blankenship, panel/Workshop on Critical Questions in pZNatiOnal Ma@rialS Advisory Board, Rapidly Solidified (RS) Rapid Solidification Processing, Rapid Solidification Process- Aluminum Alloys—Status and Prospects, National Research ing, Principles and Technologies, III, Proceedings of the Third Council, Publication NMAB-368 (Washington, DC: National International Conference on Rapid Solidification, Reston, VA, Academy Press, 1981). This unclassified document contains in- 1983. 316 . Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

Amorphous (glassy) eutectic iron alloys with gines.78 79 If processing difficulties can be over- unusual electrical and magnetic properties for come, it is possible that the suitability of differ- power transformers and magnetic applica- ent RS alloys for other engine applications tions. Use of RS alloys with good magnetic per- could be determined in 5 years (with an ex- meability coupled with high resistivity can cut 80 transformer core losses by 60-70 percent. This penditure of $5 million for each application). can greatly reduce energy wastage during 74 75 Cobalt-free superalloy powders produced power distribution. through various rapid solidification processes Commercial use of RS is still limited primar- have been shown in early experiments to have ily for cost reasons. Auto industry experts esti- some advantages over conventionally proc- mate it will be 10 to 15 years before the tech- essed alloys. One promising example is an ex- nology reaches their area. Entry should be perimental, cobalt-free superalloy being devel- sooner in aerospace where a lo-percent im- oped by Pratt & Whitney Aircraft for turbine provement in strength-to-weight ratio warrants airfoils. The alloy, which chiefly contains a twofold to threefold increase in raw material nickel, molybdenum, and aluminum, offers su- price. T’ Based on information gathered at the perior creep resistance compared to some first Workshop on Rapid Solidification Tech- other hot-section alloys. Moreover, with addi- nology held at the National Bureau of Stand- tion of 3 percent chromium as well as smaller ards (NBS) in 1981, the NMAB concluded that: amounts of hafnium and yttrium, the RS alloy has oxidation resistance exceeding that of al- The primary application of RS crystalline alloy 454 (10 percent chromium), now used in loys at this time are superalloy disks for aircraft engines and high speed tool steels . , , and the turbine blades of the F-100 jet engine. The near-term opportunities for commercial appli- RS alloy “offers approximately 1500 F advan- cations of RS aluminum alloys appear limited tage in temperature capability over our current to the aerospace industry. 77 (directionally solidified polycrystalline) metals in the stress range critical for blade design.”81 Limited commercial acceptance notwith- Depending on the design strategy, the increased standing, RS research enjoys substantial sup- temperature capability can be used to improve port from industry. Pratt & Whitney Aircraft, the performance, durability, or cost of the en- with the considerable support of the Defense gine. R&D with this RS superalloy continues, Advanced Research Projects Agency (DARPA), but neither the results nor an estimate of the has played a major role in promoting RS alloy possible year of introduction are available.82 development, Production of RS superalloy material has reached the level of a few thousand The development of rapidly solidified iron- pounds per year and some discs made from RS based alloys has received support from DARPA material have been incorporated into jet en- and the Army Materials and Mechanics Re- search Center (AMMRC). These two organiza-

74 tions have sponsored a program at Marko ’’ Glassy Metals Move Into Production, ” High Technology, March/April 1982, p, 80, Materials Inc. aimed at developing RS iron- 75’4Glass-Like Metals Cut Cost and Energy Use, ” Machine De- based alloys for potential high-temperature sign, Apr. 26, 1984. structural applications in the intermediate tem- ~Metal Progress, “Trends in Powder Metallurgy Technology,” January 1984, p. 58. perature range of 800° to 1,200° F. These new TTNationa] Materials AdvisorV Board, Rapid so~idification Processing, Status and Facilities;, National Research Council, TWMAFMO1, op. cit., p. 16. Publication NMAB-401 (Washington, DC: National Academy Tgcharles River Associates, New Metal Processing Technol- Press, 1982), p. 3. This unclassified document contains infor- ogies, OTA contract report, 1983, p. 53. mation which is subject to special export controls. It should not aOJohn K. Tien and Robert N. Jarrett, Potential for the Devel- be transferred to foreign nationals in the U.S. or abroad with- opment and Use of New Alloys to Reduce the Consumption of out a validated export license. Distribution is limited to U.S. Gov- Chromium, Cobalt, and Manganese for Critical Applications, ernment organizations. Other requests for the document must OTA contract report, 1983, p. 9. be referred to DARPAITIO, 1400 Wilson Blvd., Arlington, VA alMoore and Adam, op. cit. 27709. azparkinson, op. cit., p. 48. Ch. 7—Substitution Alternatives for Strategic Materials . 317

RS alloys will be specifically developed to Near-term opportunities for commercial appli- evolve as potential replacements for conven- cations, other than aircraft, are limited. Signif- tional precipitation-hardenable (PH) stainless icant commercial applications have not been steels, titanium alloys, and iron-based super- identified, or at least verified, with any degree alloys.83 of confidence. 86 Rapid solidification particulate technology Two RS aluminum alloys have achieved offers great potential for the production of a production status and are being offered as ex- new family of aluminum alloys that have prop- trusions, die forgings, and hand forgings. erties superior to those of ingot alloys. Accord- These are alloys 7090 and 7091, air-atomized ing to NMAB, realistic property improvements 700()-series powder alloys that are modified likely between 1985 to 1990 include: 10-percent with cobalt additions and have been developed reduction in density, lo-percent increase in by Alcoa.87 The mechanical properties of 7090 tensile strength, 15-percent increase in fatigue and 7091 have been evaluated in several indus- strength, 10-percent increase in modulus of try and government programs. In addition to elasticity (stiffness), and usable properties at good strength and fracture toughness, these al- elevated temperatures (450° F).84 Improve- loys have excellent exfoliation and stress cor- ments in corrosion and stress corrosion crack- rosion cracking resistance. This combination ing resistance are also likely. These alloys are of high strength and corrosion resistance is su- not expected to replace many strategic mate- perior to that of any existing ingot alloy. Two rials directly. Furthermore, the new aluminum 7090 die forgings will be used as a main land- alloys may contain cobalt and manganese as ing gear support link (an 85-pound finished alloying elements. However, RS aluminum al- forging) and an actuator component for the loys will probably change the need for strate- main landing gear doors on the Boeing 757 air gic materials because of design relationships transport. The components offer a 15-percent in the applications where they are likely to be weight savings over the same parts designed used. with conventional alloys. 88 Though actual in-service experience has not The Air Force Materials Laboratory is cur- been accumulated, use of these new alloys is rently working on the development of advanced foreseen in a variety of aircraft, missile, ar- second-generation alloys with improved strength mored vehicle, and space structure applica- and ductility properties, improved fatigue and tions. Because of weight savings, significant re- fracture properties, increased modulus and de- ductions in fuel costs would be achieved, a’ creased density, and improved elevated tem- Effective use of the expected improved prop- perature properties for service at temperatures erties will make these materials potentially ranging from 450° to 6500 F. Scale-up to pro- competitive with various composite materials duction status will be initiated when adequate and titanium alloys for selected applications. properties are demonstrated and is expected to be completed by 1990.89 as~an jan Ra]~, vlsw~a nathan panchanathan, and Saul Isserow, “Microcrystalline Iron-Base Alloys Made Using a Rapid Solidifi- cation Technology, ’ Metals Progress, June 1983, p. 30, 84N MAB-S6B, op. cit, The improved properties of RS alum i- WIN MA B-368, op. cit., p. 5. inure alloys derit’e from \’ery’ small grain sizes, extended solu- IW090 A]uminum—8. (1 7,inc—2, 5 Magnesium- 1.0 (kpper- 1.4 bilitj or supersaturation of solute alloying elements, and Ierjr Cobalt fine dispersions of dispersoid and insoluble particles, 7091 Aluminum—6,5 Zinc—2.5 Magnesium-1.6 Copper-O.4 WA, [,. Bement and E, C, van Reuth, “QUO Vadis—RSR, ” Rapid Cobalt. Solidification Processing; Principles and Technologies 11, R, Me- ‘8 Stephen Ashley, “RS Alloys Gaining A[;f:e[)tance, ’ .4n]eri- habrian, B. H. Kear, and M, Cohen (eds.) Baton Rouge, LA: can Metal ~~arket, 9/12/83, p. 13. Claitors [publishing [livision, 1980). aeNMAB-36u, op. cit., p. 2. 318 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

Institutional Factors in Substitution

The potential role of direct substitutes and ,.. the citations for a given material are fre- advanced materials in reducing U.S. strategic quently so numerous as to render compilation material needs depends not only on resolution and evaluation for relevancy a very time-con- of technical problems, but also on overcoming suming and expensive task. Further, the inter- several institutional barriers that may impede pretation of relevant data often is complicated by the lack of a standard format for presenta- their development. Several institutional issues tion and the absence of sufficient information are discussed below, including the general to properly characterize the material.91 need for improved material data management, qualification and certification processes in- To make the most of the wealth of materials volved in substituting one metal alloy for information being generated, an on-line mate- another in critical applications, and factors rial properties data base with concise, thor- affecting development of advanced ceramics ough, and validated data would be desirable. and composites. This base would provide engineers with easy access to important information regarding sub- Information Availability and Substitutes stitution and design. Benefits of such a system, according to the NMAB study, would include Limited access to materials properties infor- “stimulation of innovative design, decreased mation inhibits the use of substitute and ad- design costs, and increased component relia- vanced materials in many applications. The bility, and, as a result, the U.S. position in the lack of a publicly accessible material property international markets would improve.”92 data base not only discourages direct substi- Such an on-line data base would greatly en- tution, but also frustrates the design process. hance the design process, especially that based In a recent study on material properties data on computer-aided design (CAD) and com- management, the NMAB found that: puter-aided manufacturing (CAM) systems. Materials properties combined with struc- Also, it would disseminate a great deal of use- tural analysis form the basis of modern indus- ful information to small businesses, which may trial design. International competitive pres- not be able to support a staff of materials sures are driving virtually all structural design engineers. in the direction of greater complexity and increased economies of production and opera- There seem to be no technical barriers to the tion. If the U.S. industrial design process is to development of such a data base. A recent remain competitive in this environment, engi- workshop sponsored by NBS, the Committee neers must have rapid access to a well orga- 90 on Data for Science and Technology of the nized materials properties data base. International Council of Scientific Unions Handbooks, the traditional method of pre- (CODATA), Fachinformationzentrum, and Oak senting material properties data, are increas- Ridge National Laboratory (ORNL) found that ingly unable to keep up with developments in the major problem is selecting the best orga- a timely manner. Moreover, their methods of nization to lead the effort, raise the necessary organizing the data are too limited. The com- funds, and coordinate the required technical 93 puterized material information sources that ex- expertise. ist are bibliographic services that search ac- Finally, it should be mentioned that the cording to material properties. However, the dearth of easily accessible properties data is a information they provide is often cumbersome particularly acute problem for advanced ma- to use. According to NMAB: terials, such as composites and ceramics. The

WNational Materials Advisory Board, Materials Properties Data QIIbid., p. 3. Management–Approaches to a Critical National Need, NMAB- ‘JZIbid., p. 33. 405 (Washington, DC: National Academy Press, 1983). QaIbid., p. 3 and 102. Ch. 7—Substitution Alternatives for Strategic Materials . 319 great potential of these new materials lies in Two examples of alloy certification processes the innovative structural designs that they —one for stainless steel, the other for super- make possible. However, in order to examine alloys—are discussed below. a wide array of structural configurations and to use most effectively the special capabilities Stainless Steel of the materials, the design process must be As the earlier section on substitution pros- computer assisted, An on-line material prop- pects suggests, several promising low- or no- erties data base would be an integral part of chromium alloys could serve as alternatives to such a design system, However, not only are currently used stainless steels and nonstainless machine-readable data not widely available, alloy steels. Actual use of technically promis- but information in any form is difficult to come ing, lower chromium substitutes will depend by. Much of the development work on ad- on acceptance of these new materials by pro- vanced materials is done by end users (as op- ducers and end users. For many consumer and posed to suppliers) who have no interest in decorative steel applications, substitution of a promoting the material outside their company new material is a comparatively simple mat- or industry. Therefore, properties data are of- ter—often entailing a decision to switch by a ten unavailable for use in other applications. manufacturer. For critical applications, however, extensive testing and certification is es- Qualification and Certification of sential before widespread use. Alloy Substitutes In contrast to superalloys, in which com- Currently, many promising alloy substitutes pany-oriented qualification of materials pre- are under development that have potential to dominates, certification of new stainless steels reduce strategic materials requirements. Actual and alloy steels is usually undertaken through use of these materials by industry is problem- committees of professional societies or trade atic. Many of these substitute materials will not associations, often through voluntary donation be tested and developed to the point where they of time and facilities by producers and end can be considered on-the-shelf technologies users, Such activities may take 10 years or that will be immediately available in a supply more if the immediate need is small, and can disruption. slow the process of user acceptance of replacement materials, A major reason for this is that industry is not likely to commit resources to qualify and cer- An instructive example of the steps entailed tify new materials that it does not have imme- in qualifying a new material in a critical ap- diate plans to use. Qualification and certifica- plication is provided by the ongoing effort by tion is needed in many critical applications— DOE to qualify a new alloy as a boiler and pres- those in which substitution could be most im- sure vessel material. The initial steps toward portant to reduced import vulnerability—yet development of the alloy began in 1974, when few substitutes will be taken through this proc- a task force set up by DOE (then called the ess because of the time and cost involved. This Energy Research and Development Adminis- barrier appears greatest when there is no evi- tration) recommended a program to develop dent economic driving force to entice indus- reference structural alloys for use in the liquid try to engage in the process. Such is the case metal fast breeder reactor.94 The alloy devel- for many strategic materials substitutions— opment process was sponsored through two government, not industry, is the party with the offices in the DOE under an Oak Ridge Na- most concern for making sure that the new alloy gains customer acceptance. In addition, g4The history of the 9- I alloy is discussed in P. Patria rca, E. owing to their critical applications, the certifi- E. Hoffman, and G. W. Cunningham, “Historical Background” in P. Patriarca, compiler, ORNL Technology Transfer for A4eet- cation process for strategic materials substi- ing A New Chromium-Molybdenum Steel for Commercial Ap- tutes is more demanding of time and data, plications (Oak Ridge, TN: Oak Ridge National Laboratory, Apr. which translates into cost. 7, 1982]. 320 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability tional Laboratory contract with Union Carbide rication processes. To provide additional test Corp., and in conjunction with Combustion data, modified 9Cr-1Mo alloy replacements for Engineering, Inc. After studying several alter- 18-percent stainless steel tubes have been put native alloys, a modified 9Cr-1Mo alloy was in service in six conventional powerplants lo- selected for further development, Data devel- cated in the United States, Canada, and Great opment for qualification began in 1979, but the Britain, as shown in table 7-17. alloy has yet to be approved for widespread Widespread, nonexperimental use of this commercial use. The purpose of the effort was substitute in powerplant applications is depen- not to conserve chromium, but rather to pro- dent first on approval of its specifications by vide a uniform construction material for boilers the American Society for Testing of Materials and pressure vessels. Figure 7-6 shows the de- (ASTM), followed by its inclusion in the Amer- velopment “ladder” for this alloy. ican Society of Mechanical Engineers (ASME) Once initial laboratory work had been under- Boiler and Pressure Vessel Code, taken, the need to demonstrate reliable trans- In May 1981, an application was made to fer of properties through scale-up and field test- ASTM to approve specification of the modified ing arose. Under arrangements with several 9Cr-1Mo alloy for use in plate and tube prod- alloy producers, commercial heats (ranging ucts, followed a year later by a similar request from 0,5 to 15 tons) were made using several for forgings, pipings, and fittings. The speci- commonly used processing practices (e. g., fications are currently working their way AOD and vacuum induction melting). The through the ASTM approval process, as shown commercial heats were then formed into plates, in table 7-18. A data package for inclusion of bars, tubes, and pipes, using a variety of fab- the material in the ASME Boiler and Pressure Vessel Code pertaining to nonnuclear applica- Figure 7-6.— Development of Modified 9Cr-1Mo Steel tions was provided in June 1982, Additional for Fossil Fuel and Nuclear Power Applications data will have to be collected before the substitute material can be considered for possible use in nuclear powerplants. By early 1984, the alloy had been approved for certain limited uses in conventional (nonnuclear) powerplants. Additional applications for the alloy can be expected to be approved sometime in 1985—9 years after initial design of the alloy. Estimated costs for the post-laboratory alloy development through the end of 1983 are $5 million by the government (an estimated $2 million has been donated in services by industry).95

Superalloy As suggested previously, several current and prospective materials and technologies could be used to reduce cobalt and, to a lesser extent, chromium use in the hot sections of gas tur- r Foundation of knowledge of alloys A bine engines. Some, perhaps most, of these may have the technical potential to reduce stra-

SOURCE. John K, Tlen and Robert N. Jarrett, Potenfial for the Deve/oprnerrr and Use of New Alloys to Reduce the Consumption of Chromium, osInformation provided by V. Sikka, Oak Ridge National Lab- Cobalt, and Manganese for Crltlcal Applications, OTA contract report, September 1983. oratory. Ch. 7—Substitution Alternatives for Strategic Materials • 321

Table 7-17.—Current Status of Testing of Modified 8Cr-1Mo Steel Tubes in U.S. and Foreign Steam Powerplants

Operating Tube temperature Tubes being Number Date Utility Plant location (“c) replaced of tubes installed Status Tennessee Valley Authority Kingston Steam Plant, Unit 3 Superheater 593 Type 321 8 May 1980 Operating American Electric Power Tanners Creek Unit 3 Secondary 593 Type 304 10 April 1981 Operating superheater Detroit Edison St. Clair Unit 2 Reheater 538 Type 347 2 February 1981 Operating Central Electric Generating Board (U K) Agecroft Power Station Superheater 590-620 2¼ Cr-1 Mo 6 April 1982 Operating Ontario Hydro (Canada) Lambton TGS Reheater 538 Type 304H 9 May 1983 Operating Reheater 538 Standard 9 Cr-1 Mo 9 Ontario Hydro (Canada) Nanticoke TGS Secondary 538 2¼ Cr-1 Mo 11 April 1984 Planned superheater SOURCE V K Slkka and P Patrlarca, L7a/a Package for Modlfled 9Cr-lMo A//oy (Oak Ridge, TN Oak Ridge National Laboratory December 1983), p 28

Table 7-18.–Status of Specifications for Modified 9Cr-1 Mo Alloy

Specification number Description Status as of December 1983 A-213 T91 . . . . Seamless ferritic and austenitic alloy-steel, boiler, super- Approved and available as separate heater, and heat-exchanger tubes A-387 GR91 . . . Pressure vessel, plates, alloy steel, chromium-molybdenum Approved by Main Committee and awaiting Society Ballot A-182 F91 . . . . Forged or rolled alloy-steel pipe flanges, forged fittings, and Approved by Main Committee and await- valves and parts for high-temperature service ing Society Ballot A-234 WP91 . . . Piping fittings of wrought carbon steel and alloy for moder- Approved by Main Committee and await- ate and elevated temperatures ing Society Ballot A-335 P91 . . . . Seamless ferritic alloy steel pipe for high-temperature Approved by Main Committee and await- service ing Society Ballot A-336 F91 . . . . Steel forgings, alloy, for pressure and high-temperature To be submitted for AI.06 Subcommittee parts approval A-199 T91 . . . . Seamless cold-drawn intermediate alloy-steel heat-exchanger To be submitted for AI.10 Subcommittee and condenser tubes approval A-369 FP91 . . . Carbon and ferritic alloy-steel forged and bored pipe for To be submitted for AI.10 Subcommittee high-temperature service approval SOURCE: V K. Sikka and P Patriarca, Data Package for Modified 9Cr-lMo Alloy (Oak Ridge, TN: Oak Ridge National Laboratory, December 1983), p. 5 tegic materials without impairing the advances mercial application. Many research ideas never in performance so critical to the military. How- reach the laboratory stage, and of those that ever, aside from those that are already fully de- do, only some show technical promise. veloped, most of these potential substitutes still Even when technical problems can be over- face massive R&D costs, and, if they prove via- come, institutional barriers can add appreci- ble, large scale-up and qualification costs. ably to development time or can indefinitely Given industry’s little incentive to assume these delay work on the project. Given the protracted costs itself, unless clear performance and cost time period involved, what may have been ini- benefits would also accrue, most of the re- tially seen as a clear need for a new material sources available for qualifying new super- may not be relevant a decade later. Many su- alloy are dedicated to prospective materials peralloy development efforts are cost-shared to be used in the next generation of jet engines. between government and industry, which adds Successful commercialization of a new su- to the risk that R&D priorities will change dur- peralloy for the hot section of a gas turbine en- ing the course of the project. Coordination of gine can take two decades, beginning with the research may also be difficult. By the time com- researcher’s idea, through laboratory proof-of- mercialization of a superalloy is successfully concept, to engine testing and eventual com- reached, several different government agen- 322 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

Photo credit: U.S. Oepatiment of the Interior, Bureau of Mines Aluminum and silicon can reduce the need for chromium in stainless steels for high-temperature applications. A 5-percent aluminum addition to a Bureau of Mines 17Cr-8Ni research alloy (center) enormously improves oxidation resistance after 380 hours at 1,000° C compared to type 304 (18Cr-8Ni) and type 316 (18Cr-12Ni) stainless steels. The research alloy is under investigation as a possible high-performance alternative to the 25 percent Cr-20 percent Ni stainless steels cies, universities, and companies may become avoiding the performance penalties associated involved—each with its own specific objec- with the need for cooling air. tives, personnel, and priorities. The origins of Inconel MA 6000 date back Typically, laboratory findings must be veri- to 1968, with the invention by a researcher at fied in large-scale industrial heats. It is only at the International Nickel Co. of a mechanical this stage that the technical validity and man- alloying process for producing oxide disper- ufacturing practicality of the process can be sion strengthened superalloy. In 1974, NASA known with assurance, and it is only at this entered the picture by providing Inco with sup- stage that the expensive and time-consuming port to design an alloy composition that be- process of engine qualification can begin. came MA 6000. In time, university research- Designer and user acceptance of the new ma- ers and several manufacturers of jet engines terial will occur only when there is confidence became participants in the project as it ad- about its reliability and performance at accept- vanced through scale-up to its present status— able costs. preparation for engine testing. If successful, it will probably be another 5 years before MA Figure 7-7 shows key steps that must be over- 6000 is actually used for turbine blades and come in the successful commercialization of vanes in human-rated jet engines. Using 1974 a new superalloy, using Inconel MA 6000 as as a starting date, 15 or more years—and an an example. Inconel MA 6000 contains no co- estimated $10 million to $12 million—will have balt, but its initial development had nothing to been consumed in the development of this one do with conservation of strategic materials. cobalt-free superalloy. Rather, the key objective was to develop a turbine blade material able to operate at a higher Development costs associated with an en- temperature than other superalloy, while tirely new superalloy may be greater than for — —— .

Ch. 7—Substitution Alternatives for Strategic Materials . 323

Figure 7-7.—Technology Transfer Ladder for ODS MA 6000

SOURCE Joseph R. Stephens and John K. Tlen, Considerations Of Technology Transfer Barriers in the Modification of Stra- t.9QiC Supera//oys for Aircratf Turbine Er?glrres, NAsA Technical Mernorarldurn 83395 (Springfield, VA’ National Technical Information Service, 1983) a superalloy with a modified composition. For superalloy would substitute for already used, example, the low- or no-cobalt COSAM alter- widely accepted, higher cobalt superalloy, no natives are intended as substitutes for existing single company is likely to be committed to as- superalloy. If the alternative materials were suming such a development effort simply for commercially used, it is probable that only mi- the purpose of contingency planning for a nor adjustments in manufacturing and fabri- hypothetical future cobalt shortage. cation processes would be needed, In this regard, NASA’s proposed fiscal year 1985 budget earmarks $50,000 for preparing several test Institutional Barriers and Advanced Materials heats of one of its four low-cobalt, alternative Advanced materials face a number of institu- superalloy. Figure 7-8 shows steps taken to tional barriers before being adopted on a ma- date and additional development required for jor scale. As comparatively new technologies the COSAM superalloy. and new industries, they need the support of Institutional barriers to continued develop- more complete and reliable data than is cur- ment of the materials are formidable, even if rently available and of innovative design which their technical promise is favorable. In the case uses the materials to their best advantage. In of the low-cobalt COSAM alternative super- the end, final acceptance of advanced materials alloy, post COSAM augmentation efforts by engineers, designers, and consumers will could require 6 to 7 years and $6 million to $9 come only from experience in use. The Fed- million, assuming real-time testing require- eral Government’s efforts focused on these new ments and typical scale-up activities for each materials can assist in this adoption process modified alloy. Since the COSAM alternative and promote the growth of new industries. 324 • Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

Figure 7-8.—Technology Transfer Ladder for COSAM Strategic Material Substitution

SOURCE Joseph R Stephens and John K Tien, Considerations of Techrro/ogy Transfer Barr/ers in the Modification of Strategm SuperalJoys for Aircraft Turbfrre Engfnes, NASA Technical Memorandum 83395 (Springfield, VA Nattonal Technical Information Servtce, 1983)

Ceramics Data Base Requirements, Standards, Designer Preference and Education and Qualification Processes Product design engineers select materials on The properties of ceramic components and the basis of past experience and available data. the materials from which they are made—and Few structural design engineers have experi- thus their usefulness for any particular ap- ence with ceramics (less so with composites). plication—can vary depending on their chem- As stated above, reliable data about material ical formula and the methods by which they properties are scarce, and in general, formal are produced. One of today’s largest single in- codes and specifications do not yet exist, Such stitutional constraints to expanded structural data bases normally serve as guides for engi- usage of ceramics is the poor quality and neers working with unfamiliar materials, limited availability of information on these In general, the formal education received by variable material properties. The technology engineering students is deficient both in knowl- needs not only the application of standardized edge obtained about advanced materials and test procedures (specific to materials and proc- in how to incorporate that knowledge into de- essing and the effect of different temperature sign work. For instance, materials courses are and chemical environments over time) and a not generally required of mechanical engineer- systematic collection of available information ing students, and if they are, the emphasis is but also research efforts devoted to producing 96 on metals. Educational institutions are reluc- the information. —— tory (IVZ?S Update, June 11, 1984). The laboratory will help man- geThe National ~ureau of Standards recently announced the ufacturers by providing them with information on powder char- establishment of a Ceramic Powder Characterization Labora- acteristics. Ch. 7—Substitution Alternatives for Strategic Materials Ž 325 tant to adjust long-established curricula to elim- OSHA, do not yet aggregate advanced ceram- inate such deficiencies and may often be con- ics data separate from that of the traditional strained by budgets from doing so. In a broader ceramics industry. context, the base of 10 to 15 universities in the United States with programs in ceramics may Government Research be insufficient to meet the future research needs of a rapidly expanding industry, Currently, several agencies are involved in many aspects of advanced ceramics research: Industry in Transition primarily, DOE, Department of Defense, NASA, The advanced ceramics industry is being cre- and NSF. Those interested in the advancement of the technology express concern over the un- ated out of discrete parts of other industries. certainty from year to year over adequacy of The mature traditional ceramics industry, con- funding, the direction of funding, and possi- servative because of a history of stable and ble lack of coordination which may lead to profitable years, is only now examining new duplication of effort. possibilities. This change in perspective may be a result of recent depressed conventional The bulk of the research effort is focused on markets (linked to the steel industry) and talk the high potential (in terms of market size, of future competition from abroad. Most of the energy efficiencies, and strategic materials sub- innovations in the industry, however, appear stitution) heat engine applications. While this to come from end users rather than from the may be appropriate from an applications point producers. Much of the research conducted by of view, questions remain as to whether con- end users naturally leads them into becoming centration on major development projects is materials processors in order to maintain the the best way to advance the science of ad- necessary tight control over this critical step. vanced ceramics and whether this approach Other segments of this emerging industry are will contribute to the building of a firm, broad the expansion into advanced ceramics by con- base of technical knowledge for the support of glomerates and conventional materials firms a competitive domestic industry. Supporters of that sense future market changes. the concept argue that the technological base is broadened by focusing on the development This merging process means that there is no of a major application, since success requires focal point, no industrial champion for ad- an iterative process in which researchers must vanced ceramics. As yet, no industrial associa- continually return to basic science in order to tion or organization is charged with research, solve problems encountered in the develop- development, or product data specification. ment phase. Others worry that, by pushing the The established professional association—the development phase at the expense of basic re- American Ceramics Society—provides a forum search, application failures which occur will for the exchange of technical information. It result in generating negative impressions of the does not, however, have a technical section ultimate capabilities of the technology. dealing with advanced ceramics as a separate issue. Recently, it has begun to collect data on The current contractors on the ceramic heat industry production of advanced ceramics and engine projects have plans to commercialize form a standardized data bank. With little in- the technology eventually, but a technology gap formation yet available about the organization will exist after the proof-of-concept stage is of the industry and its participants, govern- reached by government R&D efforts. The skills ment data collection centers, such as those of developed in designing the ceramic compo- the Department of Commerce,97 EPA, and nents of experimental engines will be transferable to engines designed with the consumer in mind. But industry will have to be firmly con- 971 n f. rrnat iO n is hegi n n i ng to emerge, however. See, for instance, U.S. Ilepa rtrnent of Commerce, A Cornpetititre Assess- vinced of the technology’s viability to be will- ment of the [;. S. ,4d\anced Ceramics lndustr~-, March 1984. ing and able to take on expensive and lengthy 326 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability development costs before ceramic heat engines National Laboratory (ORNL), in its Ceramic are ready for the marketplace. Technology for Advanced Heat Engines Pro- gram Plan,99 provides a breakdown of the funds Until recently, there was no Federal office committed by various agencies for R&D in ad- with a specific mission to promote, coordinate, vanced ceramics considered applicable to heat and focus the government’s R&D efforts in ad- engine technology. The Advanced Materials vanced ceramics. (As is discussed in chapter Development Program at DOE is developing 8, the National Critical Materials Act of 1984 a computer-based data system which, when establishes a council in the Executive Office completed, will provide continuing—and sys- of the President that is to formulate a Federal tematically collected—information on the R&D program plan for advanced materials.) It is cur- efforts in structural ceramics of Federal Gov- rently difficult to obtain a comprehensive over- ernment agencies. view of the R&D efforts of the various agencies and to determine whether there is any Even with these statistics available, overlap overlap of effort. Table 7-19 provides a break- of effort is difficult to assess. The difficulty lies, down by agency of estimated Federal Govern- in part, in the large and growing number of ad- ment R&D for structural ceramics technology. vanced ceramic materials, each designed with This reflects internal shifts of program empha- specific properties for specific applications sis and is a result of a growing awareness in (similar to metallic alloys). While the knowl- many sectors of the important role that ad- edge gained from success in one application, vanced ceramic technology could play in fu- if transferred, can advance the use of similar ture U.S. economy.98 ceramic materials in another application, a material designed for a specific application can- DOE has initiated some steps to cope with not necessarily serve “as is” elsewhere. the lack of available information. Its Oak Ridge

SeRobert B. Schulz, Program Manager, Advanced Materials Development Program, Department of Energy, personal com- W3ak Ridge National Laboratory, Ceramic Technology for Ad- munication, Oct. 4, 1984, vanced Heat Engines Program Plan, ORNL/TM-8896, June 1984.

Table 7.19.—Structural Ceramic Technology Federal Government Funded R&D (in millions of dollars)

Fiscal year Fiscal year Fiscal year Fiscal year 1982 1983 1984 1985 Department of Energy: ● Conservation and renewable energy: — Heat engine propulsion ...... $9.3 $14.6 $15.5 $13.6 — Industrial programs ...... 1.5 1.0 2.3 2.7 — Energy utilization research...... 0.3 0.5 0.6 2.0 . Fossil energy: — Advanced research and technology development . . . . . 1.2 1.0 1.0 1.0 — Advanced energy conversion systems ...... 1.9 “ Energy research: — Basic energy science ...... 2.0 3.0a 3.0 3.0 NASA: b ● Lewis Research Center ...... 1.8 3.0 3.5 4.6 NSF ...... 2.7 2.9 3.3 3.6 Department of Defense: ● Defense ARPA ...... 2.0 7.7 9.5 7.7 ● U.S. Air Force ...... 1.7 3.0 3.4 4.7 s U.S. Army ...... 1.3 4.7C 6.0C 2.5C . U.S. Navy ...... 1.0 1.2 1.3 1.4 Total ...... $26.7 $42.6 $49.4 $46.8 aReflects increase in portion of budget applied to structural ceramics. blnclutjes salaries for manpower. CTACOM included. SOURCE: U.S. Department of Energy, Advanced Materials Program, October 1984 Ch. 7—Substitution Alternatives for Strategic Materials ● 327

Despite the lack of official oversight, coordi- with the greater design flexibility also comes nation among agencies has apparently im- the need for strict materials and processing tol- proved in recent years. The ORNL program erances during production runs, Addressing plan on ceramic heat engine technology was the concerns arising from the sensitivity of developed to identify technology base needs; composites to each manufacturing step, the develop a multi-year technical and resource composites industry has adopted elaborate cer- agenda; and coordinate activities with other in- tification and qualification schemes. These pro- dustry, government, and university programs. cedures are needed to ensure the quality and NASA holds regular and frequent meetings uniformity of the various materials, through the with DOE that now include DARPA and the many times they change hands, used in the Air Force. Each fall, an interagency meeting production of composites. is held for all the participants from govern- Qualification and certification is more comment, industry, and academia working on cer- plex for composites than for traditional mate- amics in heat engines, rials for several reasons, NASA’s Lewis Research Center has also de- The composites industry is very fragmented– veloped a new comprehensive ceramics pro- there is very little vertical integration. There gram proposal but funding was not included are many processing steps entailed in the pro- in the fiscal year 1985 budget, The program’s duction of composites, and rarely, if ever, does goal, while focused on the aircraft engine as one company engage in all these segments of the application, was to broaden the ceramics the business. Most composites companies are technology base in general. specialized, each concentrating on a segment The National Science Foundation, under its of the industry, industry and university cooperation program, While this may not increase the amount of has funded the Center for Ceramic Research testing needed to ensure product quality and at Rutgers University. This center has been uniformity, it causes confusion with regard to granted public funding for 5 years with the in- testing needs and data interpretation. tent that it will be able to generate sustaining private funding of its research efforts within Composites are fundamentally different in that period. Research areas in which the Cen- their structure and behavior than traditional ter is involved include, among other things, materials. The well established testing and powder processing technologies and improve- characterization techniques used for tradition- ment of materials properties. al materials are not suited for composites. Ap- propriate composites testing techniques have Qualification, Certification, and Standardization been developed, but on an ad hoc basis with of Composites100 little industrywide agreement. There is no uniform procedure for certify- Composites are engineered materials, and as ing and qualifying composite materials and such are very sensitive to a multitude of struc- structures; every product is handled differ- tural and processing factors. This character- ently, on a company-by-company basis. istic is very beneficial, because it gives designers great control over the properties of The composites industry has no industry as- composites, allowing the tailoring of these sociation to pursue the interests of the compos- materials to individual applications. However, ites industry as a whole. There is no organization through which the industry can work on l~Thls section draws heavily on Stanley L. Channon, ‘ ‘Indus- qualification, certification, and standardization trial Base and Qualification of Composite Materials and Struc- problems common to many of the involved tures (An Executive Overview)” (Alexandria, VA: Institute for Defense Analysis, May 1984). Presented as a working paper for companies. a Department of Defense-sponsored colloquium/workshop on Composite Materials: Standardization, Qualification, Certification, Developing the data package necessary for Washington, DC, May 1984, qualification of composite materials and struc- 328 Ž Strategic Materials: Technologies to Reduce U.S. Import Vulnerability tures is very time-consuming and expensive Engineers (SAE) and others generate compos- (especially considering the small quantities of ites standards, but the process is slow and often materials often associated with composite includes compromises accepted in order to orders). The battery of tests required to qual- broaden the applicability y of the specifications. ify a material may cost $20,000 to $200,000 or ASTM test methods find frequent use in indus- more, depending on the scope of testing. While try, but many companies develop their own test these costs are borne by the composites user methods because of preferences in testing for the initial supplier’s material, alternate sup- equipment and procedures. pliers may be required to assume part or all of Regarding the need for standardization of their qualification costs. The new suppliers composite materials, a recent industry survey may be required to perform costly full-scale concluded: tests if bench-scale evaluation suggests significant differences between their material and Although the majority of industry and gov- the primary material. Qualification of a new ernment personnel would prefer to see stand- supplier for an existing material may require ards adopted for the composites industry, it is 3 to 6 months for most structural applications. recognized that this will not be accomplished Whenever any change is made in the compos- easily. A major resistance to standardization emanates from the suppliers of materials who ites used in rocket nozzles, full-scale test- fear that the identity of their materials would ing—taking up to a year—is required. This be lost. , . Some opponents to standardization costly testing limits the number of suppliers for feel that this would retard technological inno- any given application. vation in the industry whereas proponents feel In addition to being costly, the complexity that the industry will advance more rapidly if standards are adopted. Some feel that the tim- of the qualification process may discourage in- ing is inappropriate for standardization be- novation. Once a composite has been qualified cause the industry is still in a dynamic state. 101 for a particular use, changes in the material or its production are usually disallowed for that Composites technology also faces other in- application. This, along with designers’ pref- stitutional barriers similar to those for ce- erence for proven materials, tends to restrict ramics, although it is probably far ahead in the number of available qualified materials. most aspects, The technology has found its major application in the aircraft and automotive There is also a need for standardization of industries and has been supported and pushed material specifications and test methods for by those industries and by the government. The composites, Standards are currently generated extensive government research in composites by a variety of government and industry groups, has been centered primarily in the Department but it is customary to rely on specifications of Defense. The interest in composites for use from fiber and resin suppliers. The government in military aircraft, and the accompanying lack specifications are rarely used because they are of public information, however, has been blamed too broad or out of date. Industry groups such for slowing technology transfer between the as the American Society for Testing and Materi- government, academia, and industry. als (ASTM), the American National Standards Institute (ANSI), the Society of Automotive 101 Ibid., p. 22. CHAPTER 8 Policy Alternatives for Strategic Materials Page - Potential Contribution of Alternatives to Specific Material Supplies...... 331 Chromium ... . *,,0***,*****.,,.,***,*.***..*..*...... **..,.* 334 Cobalt *.o***. *.. ... ,.. .. 334 Manganese *. 334 Platinum Group Metals .., ,,, . o . . * * * * ., ...... 335 Existing Laws and Strategic Materials Policy ...... 335 National Materials and Minerals Policy, Research and Development Act. ,...... 335 National Critical Materials Act of 1984 ...... 338 Defense Production Act ...... 340 Strategic and Critical Materials Stock Piling Revision Act ...... 340 Stevenson-Wydler Technology Innovation Act of 1980 ...... ,.....341 Formulation of Strategic Materials Policy ● . 342 Goals, Objectives, and Priorities of Strategic Materials Policy ...... 343 Providing Information About Federal Research and Development Activities .. ...347

Mineral Production and Processing ● ...... 350 Exploration for Domestic Strategic Resources ...... 351 Domestic Production of Strategic Materials ...... 353

Encouraging Foreign Production of Strategic Materials . . ● ...... ● . ● ● . ● ● ● ● ● ● ,.356 Implications of Diversification of Supply for Ferroalloy Production ...... 361 Substitution and Advanced Materials ...... 362 Direct Substitution Options ● .*, ,***. ,., ...... 363 Providing Substitution Information to Industry ...... 365

Developing Substitute Alloys ● ...... • ● ● ● . ● .366 The Potential of Advanced Materials...... ,...... 368 Government Support of Research and Development ...... 369 Education Needs and Advanced Materials . . ’ ., ...... 370 Transfer and Diffusion of Advanced Materials Technologies ...... 370

Conservation and Recycling of Strategic Materials ...... 371 Information Needs and Recycling ...... 372 The Impacts of Federal Activities on Recycling ...... 374 Developing New Recycling Technologies ... *,, ,. .*.,, 376 List of Tables Table No. Page 8-1. Technical Prospects for Reducing U.S. Import Vulnerability for Chromium, Cobalt, Manganese, and the Platinum Group Metals ...... 332 8-2. Probable Degree of Government Involvement Needed in Long-Term Strategies to Reduce Vulnerability ...... 336 8-3. Selected Federal Agencies With Strategic Material Responsibilities. . ● ,.,.....344 8-4. Policy Alternatives for Formulation of Strategic Materials Policy .., ...... ,..345 8-5. Distribution of R&D Funding for Critical Materials by Materials and by Technology Goal . 348 8-6. Distribution of Critical Materials R&D Funding by Stage of the Materials Cycle ...... 349 8-7. Policy Alternatives for Exploration, Mineral Production, and Processing, ...., 352 8-8. Policy Alternatives for Substitution and Advanced Materials ...... 364

8-9. Policy Alternatives for Recycling Strategic Materials ● ● ● ● ● ● * . ● ● ● ● ● ● * ● . * . * .,.373

. . ., . -- . . .’.k- , -- . . , .- -e .- .—- .-J . -,. .. ‘. - -=. ,, . .——. ——=-F —- ‘ . -. .- . . . .-z . += -+7 —-— -. ‘ :- --. – c .%- K - ‘ . - .- .= . . .- ,. < ..- - t ~. * .’ . .- . . , . . . , ------. . . T .f , -’ - . . ‘. -a-+.4,-T —-+... L-.-* :g; “ .~-..~*- , : - “ ~ . . . -- .- --- -r -m .- . . . . *-,: *G- -. .; ,- . . . . +“~,-~.- -.——. >—“ ,. , ,. .. CHAPTER 8 Policy Alternatives for Strategic Materials

The central premise that underlies concern proaches, including the formulation of coordi- about strategic materials can be stated as fol- nated Federal strategies for strategic materials, lows: the United States must import a number are the subject of this chapter. of materials that are essential to the national Two general observations apply to the dis- defense and to domestic industry. For a num- cussion in this chapter. First, most of these ber of these materials, the bulk of the supply technical approaches are long-term in nature. comes from countries or regions that are either Some of the alternatives, such as the develop- politically unstable or ideologically hostile to ment of substitute materials for the most de- the United States. As a result, the United States manding applications, may require 10 years or may face disruptions in the supply of these more to be brought to fruition. Second, private materials, disruptions that could be damaging industry, not the Federal Government, is the to the national defense or industrial strength primary producer, importer, and consumer of of the country. strategic materials. Therefore, it is private in- The National Defense Stockpile and the pri- dustry that will make most decisions about the ority allocation system provided under the De- location of new mineral development, about fense production Act address the problem of the use of conservation and recycling technol- maintaining an adequate supply of materials ogies, and about the development and use of for national defense. These policies and pro- substitute materials. cedures, however, are not meant to protect the The Federal Government can influence pri- U.S. industrial economy from disruptions in vate decisions through such actions as support the supply of strategic materials except in times of research and development or use of tax and of war or national emergency. other economic tools to influence investments. The technical approaches that are the sub- The degree of government involvement consid- ject of this report can help reduce the vul- ered appropriate or desirable depends on the nerability of the United States to disruptions policymaker’s assessment of the likelihood and in the supply of strategic materials. The ap- effect of supply disruptions, on his or her phi- proaches can be grouped into three categories: losophy of the relationship of government and mineral production and processing, conserva- industry, and on the economic and technical tion and recycling, and substitution. Policy resources available for this issue in the wide options for the implementation of these ap- range of national affairs.

Potential Contribution of Alternatives to Specific Material Supplies

Prospects for reducing vulnerability must be Table 8-1 illustrates how each technical alter- assessed on a material-by-material basis. The native relates to the first-tier strategic materials potential contribution of each alternative (chromium, cobalt, manganese, and platinum differs for each strategic metal under exami- group metals) that are addressed in detail in nation; however, taken in sum, these alterna- this study. These alternatives are summarized tives can contribute significantly to net reduc- briefly below. Detailed discussion of the tech- tion of U.S. vulnerability to disruptions of nical alternatives to import vulnerability is pro- supplies of strategic materials. vided in chapter 5 (production and processing),

331 Table 8-1.—Technical Prospects for Reducing U.S. Import Vulnerability for Chromium, Cobalt, Manganese, and the Platinum Group Metals

Chromium (Cr) Cobalt (Co) Manganese (Mn) Platinum group (PGM) U.S. apparent consumption 319,000 short tons 5,592 short tons 672,000 short tons 61 short tons (1982)a (1 1,184,000 Ibs) (1,787,000 troy ounces) a U.S. import dependence (1982 ) 85% 92°/0 990/o 800/0 Recycling in 1982 12% 80/0 Not estimated 19°/0 (excludes toll refined) (purchased scrap)b a Domestic production in 1982 0% 0% About 2°/0 of apparent 0.40/0 of apparent consumption consumption Price in 1982a Turkish chromite: $100/short ton Cathode 99°/0 Co: About $1.58-$1.68 per long Dealer Price: ($110/metric) $12.90/pound ton unit (22.4 pounds) of 46 platinum —$327/troy oz.; South African: $47/short ton to 48°/0 of Mn metallurgical palladium —$67/troy oz. ($52/metric). ore. Value of imports into the $120 million $143 million $197 million $554 million United States in 1982C (including gross weight) a Import sources (1979-1982) Chromite: South Africa (480/o); U.S.S.R. Zaire (37%); Zambia (130/o); Canada (80/0); Ore: South Africa (330/0); South Africa (560/o); U.S.S.R. (Bold-faced countries are (170/0); Philippines (130/.); Other Belgium-Luxembourg (80/0); Japan (70/o); Gabon (260/o); Australia (160/O); U.K. (11 O/O); Other (l T”/o). primary producers) (220/0). Ferrochromium: South Africa Norway (i’ ”/o); Other (lsO/o). (200/0); Brazil (120/0); Other (440/o); Yugoslavia (90/.); Zimbabwe (9%) Ferromanganese: (90/.); Other (380/.). South Africa (430/.); France (260/o); Other (31 O/O). Location of major world South Africa and Zimbabwe (920/o); the Zaire (500/0); Zambia (130/0); Cuba (70/.); South Africa (400/o); U.S.S.R. South Africa (790/o); U.S.S.R. reserves d remaining 8°/0, distributed among U.S.S.R. (50/o); the remaining 250/. of (370/o); remaining 23°/0 (190/0); remaining 20/0 (20 million more than 10 countries, represents world reserves (2 million short tons) is (distributed among 8 coun- troy ounces) is in Canada, the reserves in excess of 100 million distributed among 12 countries. tries) represents reserves in U. S., and Columbia. short tons of chromite. Chromite excess of 200 million short typically ranges from 22 to 38°/0 tons. chromium content. Prospects for increased Very good for noncritical applications; Good for many applications; additional Poor—substitutes for Mn in Alternatives to PGM exist in many substitution for critical applications, extensive R&D needed for critical applications steelmaking (which applications; in critical applica- applied R&D will be needed. Basic such as superalloys. Qualification accounts for 900/0 of con- tions, prospects for direct research breakthroughs may be requirements may limit practical use of sumption) are not promising. substitution are poor in the near needed to develop substitutes in the these substitutes. and medium term. most critical applications. Potential for displacement Fiber-reinforced plastics and some Reasonable prospects for incremental Limited: various composites Breakthrough in basic by advanced materials other composite materials may com- phase-in of advanced materials in near may compete with steel in research is probably pete with stainless steels in some and medium term; long-term prospects specialized applications. needed for other materials critical applications over time. (2010 and beyond) may be great in heat to replace PGM as a catalyst. engine applications.

Potential for increased Good—major obstacles are economic. Good—economic factors are primary Poor—unless technical Excellent—recycling of PGM from recycling Reduced downgrading, improved impediments to recycling, although advances make Mn recovery automotive catalysts could pro- obsolete scrap recovery, and advanced technologies may have to be from slag economical. vide 400,000 to 500,000 troy recovery of Cr values from steel- developed to maximize recovery of ounces of PGM annually in the making wastes appear to be the ma- superalloy scrap. Obsolete superalloy mid-1990s. Obsolete electronic jor opportunities, although data is scrap, spent catalysts, and other scrap could also be a major out-of-date. Scrapped catalytic con- postconsumer uses will be a growing recycling source if high costs of verter shells could become source of potential source of cobalt. For 1980, an disassembly are overcome. Cr; recovery of Cr from steel making estimated 2,350 short tons (4.7 million wastes also may add to supplies. Ibs) of Co was not recycled or was downgraded. Table 8=1.—Technical Prospects for Reducing U.S. Import Vulnerability for Chromium, Cobalt, Manganese, and the Platinum Group Metals (Continued)

Chromium (Cr) Cobalt (Co) Manganese (Mn) Platinum group (PGM) Potential for mo~e efficient Incremental gains; a major break- Very good—in superalloy production Good—manganese required Uncertain—will depend on use through design, through akin to the AOD process, and parts fabrication; however, more per ton of steel could be basic research in catalyst processing, and manufac- which reduced chromium losses in efficient manufacturing will reduce reduced significantly by the chemistry. turing technologies stainless steel production is not scrap materials most preferred for year 2000 (from the current foreseen. recycling. level of 36 Ibshon to 25 Ibshon). Prospects for production and processing: Potential for Significant Very poor—known deposits are low Poor—without subsidy or major price Very poor—known deposits Fair to good—initial plans to domestic production in quality and probably WIII not be rise. Good with subsidy. Maximum very low in quality. Possible develop one domestic site exploitable except in a national simultaneous development from ex- discovery of a promising anticipate palladium and emergency; however possibility of a isting mine sites could provide 10 deposit cannot be ruled out platinum production equivalent new discovery of a promising million pounds (5,000 short tons) of entirely. to 9 % of total U.S. PGM con- deposit cannot be ruled out entirely cobalt annually for a 10- to 15-year sumption in 1982. A decision on In addition, Iimited quantities of period. Production economics varies by the project is expected in 1985. chromite may be produced as a by- mine site. Mine owners have cited Much higher production levels product if nickel-cobalt Iaterites are prices ranging from $16 to $25 per may be achievable if other sites developed. pound as needed where cobalt is the are developed. primary mine product. At other sites, prices of nickel and copper need to be considered in determining whether coproduction would be profitable. Potential for supply Poor to fair—probably would require Good prospects—but viability depends Good—several alternative Poor—unless major new dis- diversification abroad U.S. development assistance or in- on copper and nickel markets because suppliers exist, including coveries are made (U.S. has centives to promote production in cobalt is a byproduct from mining of Mexico, Australia, Brazil, most promising unexploited Turkey, the Philippines, and several these materials. Improved technologies and Gabon. deposit). other countries. for laterite processing in the U.S. may be transferable overseas. Potential to retain Loss of processing capacity is Good—processing capacity is expanding Loss of processing capacity is Good—domestic refining capacity domestic processing expected to continue in near term due to recycling efforts expected to continue in near has increased to meet recycling capacity with stabilization of domestic term with stabilization of in- needs. industry at a reduced level in long dustry at a reduced level to term to” meet specialty steel industry meet-specialty steel industry needs. needs. Prospects for substantial reduction in current levels Fair Good Fair Good of U.S. dependence by the year 2000 using the above alternatives.

Most promising technical Substitution Recycling Continuation of conserva- Recycling of automobile catalysts routes to reducing U.S. tion trends in steelmaking and electronic scrap import dependence by 2000 Recycling Design, processing, and manufacturing Diversification of supplies Domestic production technologies Diversification of supplies Domestic production Replacement of steel in some substitution applications by aluminum or plastics au s, De~a~t~ent of Interior, Bureau of M ,nes, Mineral c~mm~dlty .c&mmarle~ 7984 washln~t~n, Dc u s Govemnlent p~lntln~ Off Ice, 19&3) Figures on apparent consumption may d Iffer f:cm apparent Con- sumption ftgures In table A or ch. 1 because of different reporting conventions used In different Bureau of M Ines statistical series bu s, Department of Interior, Bureau of Mines, M/nera/ comm~d,ty Summaries 7983 (washlnqton, DC. us. Government prlnt,ng Of f,ce, 1982) Estimates of purchased scrap as a percentage Of apparent COfl- sumptlon In 1982 are preliminary estimates which may be sub)ect to rewslon Appreciable quantities of manganese contained In ferrous and nonferrous scrap and steelmak(ng slag are recycled Howwer, scrap recovery specifically to recycle manganese IS mlnlmal Cu,s, Department of Interior, Bureau of Mines, M/nera/s yearbook Vo/ I, Me/a/~ and Minerals 7982 (Washington, DC U S Government prlntlng Off Ice, 1983), table 10, pp. 54-55. du.s. Department of Interior, Bureau of Mines, “Mineral Commodity Profiles 1983” (chromium, cobalt, manganese, and plat!num group metals),

SOURCE: Office of Technology Assessment, 1984. 334 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

chapter 6 (conservation and recycling) and have been developed which could replace co- chapter 7 (substitution and advanced ma- balt in some superalloys-–the application of terials). greatest concern because of their importance in jet engines. These will need to be thoroughly Chromium tested and qualified for use before they can be employed. Over the long term—beyond the The United States is dependent on South year 2000—promising advanced materials may Africa and the Soviet Union for most of its increasingly be used in jet engines, potentially chromium, half of which is used in stainless reducing the need for superalloy (and hence steels. Major opportunities exist to conserve strategic materials) in this critical application. chromium, especially in nonessential applications for stainless steel where substitutes (e.g., Evaluations of known domestic deposits sug- aluminum and plastic) are widely available. For gest that more than 10 million pounds of co- critical applications, some promising lower balt could be produced annually for a 15- to 20- chromium stainless steels are now under de- year period if the four most promising sites velopment—primarily by government. These were developed simultaneously. At current co- will need substantial additional work before balt prices, none of these sites would be profita- they will be available for use. In some appli- ble to develop. Moreover, at some sites, cobalt cations, chromium is so essential that a break- would be a coproduct or byproduct of other through in basic research may be needed to metals production so that production econom- find substitutes. Although recycling of stain- ics would not depend on cobalt alone. Federal less steel scrap has reached a high level, re- subsidies, such as a guaranteed purchase price, duced downgrading and improved recovery of would probably be needed for a protracted obsolete scrap and steelmaking wastes could period for sustained cobalt production to help add to chromium supplies. Because occur. known domestic chromite deposits are very poor in quality, diversification of foreign sup- Manganese pliers may be a more attractive option than development of known domestic chromite depos- Options for reducing U.S. reliance on the So- its. Discovery of higher quality domestic viet Union and South Africa for manganese chromite deposits appears unlikely but cannot supplies are largely limited to conservation in be ruled out. steelmaking and developing greater diversity among foreign suppliers. The ongoing process Cobalt of upgrading U.S. steelmaking facilities and processes should make it possible to reduce to- Of the first-tier strategic materials, cobalt tal manganese requirements (excluding home offers the greatest range of technical alterna- scrap) for each ton of steel from about 36 to tives to current supply patterns, which are 25 pounds by the year 2000. Manganese fer- dominated by Zaire and Zambia. Ongoing man- roalloy requirements, especially, could be re- ufacturing trends in the aerospace industry are duced–falling from about 16 to about 8.3 encouraging highly efficient use of cobalt in pounds per ton by the year 2000. A commit- the fabrication of jet engine parts, and this ment to changing supply patterns to reduce trend is likely to continue in the future. With reliance on South Africa and the Soviet Union advances in recycling technologies, it should could also reduce U.S. vulnerability, since sev- become technically possible to recover much eral other major foreign producers exist. As more of the several million pounds of cobalt with chromium, virtually no exploitable domes- contained in downgraded scrap or waste that tic manganese deposits are known at this time. is not recovered each year. Substitutes are al- Unless a major new deposit is found, prospects ready available for cobalt in many applications. for significant domestic production will remain In addition, some low-or no-cobalt substitutes slight. .

Ch. 8—Policy Alternatives for Strategic Materials • 335

Platinum Group Metals high cost that they are used very efficiently, and the incentive for conservation is high. The Alternatives for reducing U.S. dependency United States also has one of the world’s most on South Africa and the Soviet Union for plati- promising deposits of PGM that has yet to be num group metals (PGMs) include increased exploited in the Stillwater Complex of Mon- recycling of automotive catalysts and elec- tana. One mine site in the complex is now be- tronic scrap and development of domestic ing evaluated for possible production, raising PGM deposits. Between now and 1995, the an- the possibility of appreciable domestic produc- nual amount of potentially recoverable PGM tion by the end of the decade. Initial plans call from scrapped cars will grow from about for production of about 175,000 troy ounce of 110,000 to 700,000 troy ounces or more, If PGM, about 9 percent of total U.S. consump- 500,000 troy ounces of this were to be recycled, tion in 1982. Over the long term, much higher an amount of PGM equivalent to 25 percent of production levels may be achievable if addi- 1982 U.S. PGM consumption for all uses would tional sites within Stillwater and elsewhere are be added to U.S. supplies. PGMs are of such brought into production,

Existing Laws and Strategic Materials Policy

There are many ways in which the Federal branch strategic material policy formulation Government can assist and guide the private and coordination, and oversee a new Federal sector in implementing the aforementioned advanced materials R&D program. The 1980 technical approaches if it chooses. Options National Materials and Minerals Policy, Re- range from dissemination of information and search and Development Act placed increased data, to sponsorship of research and develop- emphasis on materials R&D in the Federal Gov- ment (R&D), to provision of incentives and sub- ernment, and articulated a national materials sidies to encourage private actions. Over the policy. Table 8-2 compares the potential con- years, congressional concern about strategic tribution of the technical alternatives to mate- materials has led to adoption of several laws rial supplies with the degree of government which provide a relatively comprehensive stat- action that may be needed to achieve that con- utory framework for Federal activities of this tribution, while major Federal laws that pro- kind. Laws such as the Defense Production Act vide potential vehicles for implementing these and the Strategic and Critical Materials Stock- actions are discussed briefly below. piling Revision Act provide basic authorization to undertake a full panoply of activities related National Materials and Minerals Policy, to strategic materials, such as development of substitutes, development of processing technol- Research and Development Act ogies, and development of domestic production (Public Law 96-479) capabilities when such activities are deemed In 1980, Congress enacted the National Ma- necessary for national security or would help terials and Minerals Policy, Research and De- achieve stockpile objectives. velopment Act to provide a basic coordinating Two recent Federal laws have emphasized framework for executive branch material pol- the need for high-level executive branch policy decisions. The law gave heightened visibil- icy coordination of strategic materials R&D ity to substitution, recycling, and conservation activities. The National Critical Materials Act as well as to mineral development to meet U.S. of 1984 directed the establishment of a National material policy objectives, and emphasized the Critical Materials Council in the Executive Of- importance of government support for R&D in fice of the President to assist in executive addressing material problems. A key purpose 336 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

Table 8-2.—Probable Degree of Government Involvement Needed in Long-Term Strategies to Reduce Vulnerability

Nature of government actions Extent of Likely time- Potential government Direct frame to contribution action needed Information subsidy achieve Material to reduced to achieve and Research and to implement outcome once alternative vulnerability potential monitoring development alternative action initiated —. Chromium: Recycling Large Moderate x x No Near-term Substitution: Noncritical Large Moderate x Possibly No Medium-to applications long-term Critical Medium Moderate to x x No Long-term applications extensive Supply diversity Small to medium Extensive x Possibly Probably Long-term Domestic Small, without Extensive x x x Long-term production new discoveries Cobalt: Recycling and Large Moderate to x x Probably not Near-to conservation extensive medium-term Domestic Large Extensive x x x Near-term production Substitution Medium Moderate to x x Possibly Medium-to extensive long-term Supply diversity Medium Extensive x Possibly Probably Long-term Manganese: Conservation Large Modest x x No Near-to medium-term Supply diversity Large Extensive x Possibly x Long-term Domestic Small Extensive x x x Long-term production Substitution Small Not assessed ? ? ? Platinum group metals: Recycling and Large Modest x Minor No Near-term conservation Domestic Medium to Probably x Minor Probably not Near-term production large modest (possible) Substitution: Noncritical Large Modest x No Near-term applications Critical Probably small Not assessed ? ? Long-term applications Supply diversity Probably small Not assessed ? ? Long-term Advanced materials: Ceramics Potentially Extensive x x Possibly Long-term large Composites Potentially Extensive x x Possibly Long-term large KEY: Large—200/0 or more of 1982 U.S. consumption. Medium—5 to 20°/0 of 1982 U.S. consumption. Small—less than 5°/0 of 1982 consumption. Near-term—within 5 years. Medium-term—within 15 years. Long-term–beyond 2000. Modest—Little required beyond current level. Moderate-Some new actions needed. Extensive—Major new actions required. X = Increased activities in this area. ? = Not assessed. SOURCE: Office of Technology Assessment. Ch. 8—Policy Alternatives for Strategic Materials ● 337 of the Act was to provide better mechanisms responsibility for coordination of national for coordinating Federal material-related pro- materials policy to the Cabinet Council on Nat- grams, which presently are highly decentral- ural Resources and the Environment. R&D co- ized, being administered by a host of agencies ordination not involving policy questions was with differing missions, objectives, and per- assigned to the interagency Committee on spectives. Materials (COMAT), under the direction of the White House Office of Science and Technol- The Act declared that “it is the continuing ogy Policy (OSTP) Federal Coordinating Coun- policy of the United States to promote an ade- cil on Science, Engineering, and Technology. quate and stable supply of materials necessary to maintain national security, economic well- Several concerns have been expressed about being and industrial production with appropri- the Administration’s discharge of its respon- ate attention to a long-term balance between sibilities to Congress under the 1980 Act. The resource production, energy use, a healthy Act required the plan, as a minimum, to con- environment, natural resources conservation tain a program, budget, and organizational and social needs.”1 structure for “continuing long-range analysis of materials use to meet national security, eco- The 1980 Act encompassed all materials that nomic, and social needs. ” The plan refers to are related to industrial, military, and essen- a review of the Federal minerals and materials tial civilian needs. However, strategic materials data system, but makes no specific reference were given high visibility in the Act, which de- to establishment of a continuing long-range fined materials as: analysis of materials, and also did not provide . . . substances, including minerals, of current a budget proposal. or potential use that will be needed to supply the industrial, military and essential civilian The President’s plan also drew criticism for needs of the United States in the production overlooking some key areas of emphasis in the of goods or services, including those which are Act. The report focused primarily on minerals primarily imported or for which there is a pros- availability issues associated with Federal pect of shortages or uncertain supply, or which lands and on the management of the stockpile; present opportunities in terms of new physi- substantially less emphasis was given to the cal properties, use, recycling, disposal or sub- R&D components of the 1980 Act. Nor did it 2 stitution . . (The definition excludes food and address recycling, conservation, and substitu- energy fuels.) tion in detail. Although the Act provided the The law also called on the president to submit President with substantial discretion to select to Congress, on a one-time basis, a “program plan components, critics contended that the plan” containing such existing or prospective failure to address these issues made the Presi- proposals and executive branch organization dent’s plan inadequate to fulfill the intent of structures “as he finds necessary” to imple- the Act. ment key sections of the Act. Other implementation difficulties were iden- In April 1982, president Reagan submitted tified by the U.S. General Accounting Office to congress his materials and minerals pro- (GAO) in a 1984 report to Congress on overall 4 gram plan required by the Act. The 22-page executive branch responses to the law. GAO document summarized actions to be taken in pointed out that not all agencies with impor- four major areas—land availability, materials tant materials responsibilities were represented research and development, minerals and ma- on the Cabinet Council on Natural Resources terials data collection, and the strategic and and the Environment, charged with overall pol- critical materials stockpile.3 The plan assigned icy coordination. Additionally, GAO found that

‘Public Law 96-479, sec. 3. 41-J.s. General Accounting Office, Implementation of the Na- ZPublic Law 96-479, sec. 2(b). tional Minerals and Materials Policy Needs Better Coordination aThe White House, National Materials and Minerals Program and Focus (Washington, DC: U.S. General Accounting Office, Plan and Report to Congress (Washington, DC: N. P.) April 1982. Mar. 20, 1984), GAO/RCED-84-63. 338 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability some agencies have made key materials pol- was required to be submitted to Congress by icy decisions independent of council clearance. October 21, 1981. As of March 1984, the report had not been submitted, apparently because it The effectiveness of COMAT in providing in- was still under review by the Administration. formation for R&D policy decisions was ques- A Department of the Interior report, also due tioned. According to GAO, the President’s fis- in October 1981, was not submitted until No- cal year 1984 budget included an unexpected vember 1983. Only the Commerce Department $38 million for a major new initiative in mate- complied fully with the Act. (A more detailed rials sciences research by the Department of summary of GAO’s findings can be found in Energy’s (DOE) Lawrence Berkeley Laboratory box 4-A in ch. 4.) in which COMAT and even the Cabinet Coun- cil had little input. The overall goal of this Despite the Administration’s failure to fulfill initiative was to improve linkages among aca- the information needs of Congress, many in- demic, national laboratory, and industry sci- dividual agencies appear to be carrying out entists for the future advancement of high- their own activities in a way that is reasonably technology industries—a responsibility the responsive to the law. Strategic materials R&D President’s plan delegated to COMAT. How- funding has fared well in a time of budget cuts, ever, the policy decision concerning redirec- and many other initiatives have been under- tion of Federal materials R&D and the appro- taken that were not specifically identified in priateness of DOE’s initiative were made the President’s plan. For example, in 1984, the independently by the Director of OSTP before Secretary of the Interior, who also serves as COMAT had formulated a position on the need Chairman of the Cabinet Council on Natural for a new initiative. Moreover, the Cabinet Resources and the Environment, created a Na- Council had not reviewed the need for this pro- tional Strategic Materials and Minerals Pro- gram, nor had it been developed within the gram Advisory Committee. context of an overall national materials and minerals R&D program. Another instance cited by GAO was the failure by the Department of National Critical Materials Act of 1984 Defense to coordinate with the Cabinet Coun- (Public Law 98-373) cil before seeking funds to subsidize domestic Signed into law by President Reagan on July mineral production capacity under Title III of 31, 1984, Title II of Public Law 98-373 estab- the Defense Production Act. lishes a statutory National Critical Materials Several strategic materials reports required Council “under and reporting to” the Execu- by law either have been submitted late or not tive Office of the President to advise and as- at all. First, Congress mandated OSTP to pre- sist the President in formulating critical ma- pare and annually revise “an assessment of na- terial policies. The Council is also given key tional material needs arising from scientific responsibilities in developing a “national Fed- and technological concerns over the next 5 eral program” for advanced materials research years” and where possible, over the next 10 or and technology, and stimulating innovation 25 years. As of March 1984, the initial report and technology utilization in basic and ad- had not been done, and the office informed vanced materials industries. GAO that it had no plans to undertake the Authorization for Title II will expire on Sep- study. (The law did not specify a date for sub- tember 30, 1990, unless extended by Congress. mitting the report.) The three members of the Council are to be ap- The Department of Defense told GAO that pointed by the President, with advice and con- it had prepared a report “assessing critical ma- sent of the Senate if the appointee is not already terial needs related to national security” and a Senate-confirmed government official. One “steps necessary to meet those needs” which member is to be designated Chairman of the was required by the Act. ” However, the report Council by the President. In selecting mem- Ch. 8—Policy Alternatives for Strategic Materials Ž 339 bers, particular emphasis is to be given to peo- problems. The Council is to review and update ple with training, experience and achievement its report and assessment as appropriate, and in materials policy, science or engineering, and is to report to Congress at least biennially. The at least one member is to have a background Council is also to recommend to Congress and understanding of environmental issues. changes in current policies, activities, and reg- The Council is directed to appoint a full-time ulations, as well as new legislation, needed to Executive Director, who is authorized to employ achieve the intent of Public Law 98-373, and a staff of up to 12 people in carrying out the Public Law 96-479. Council’s duties under the act, and develop, subject to Council approval, rules and regula- The Council is given a major role in devel- tions needed to carry out the Act’s purposes, oping and overseeing the national Federal pro- The law authorizes the appropriation of $500,000 gram for advanced materials research and for fiscal year 1985, and thereafter, such sums technology called for by the Act. It is to estab- as maybe necessary. As mentioned, Title II au- lish a Federal program plan for R&D in this thorities will expire at the end of fiscal year area, identifying responsibilities for carrying 1990 unless specifically extended by Congress. out the research and providing for coordination among the Office of Management and The Council, among other things, will: 1) as- Budget, the Office of Science and Technology sist in establishing responsibilities and provide policy, and other appropriate agencies and for coordination and implementation of criti- offices. The Council is to annually review, and cal materials policies (including research and to report to Congress, on the Federal R&D plan. technology) among Federal agencies; 2) bring materials issues deemed critical to the Nation’s The Council is to annually review the mate- economic and strategic health to the attention rials research, development, and technology of the President, Congress, and the general authorization requests and budgets of all Fed- public; and 3) ensure continuing consultation eral agencies to ensure close coordination of with the private sector in matters related to crit- program goals and directions with policies de- ical materials; materials research, determined by the Council. The Office of Man- velopment, and use; and Federal materials agement and Budget is to consider authoriza- policies. tion requests in these areas as an “integrated, coherent, multiagency request” to be reviewed In accomplishing these responsibilities, the by the Council and OMB for its adherence to Council is to review and appraise Federal the national Federal materials program plan in agency programs to determine the extent to effect for that fiscal year. which they contribute to achieving the policy and directions given by the 1980 National To promote innovation in the basic and ad- Materials and Minerals Policy, Research and vanced materials industries, the Council is to Development Act. It is also to be involved in evaluate and make recommendations about recommending budget priorities to the Office establishing Centers for Industrial Technology of Management and Budget (OMB) for mate- as provided for by the Stevenson-Wydler Tech- rials activities by each Federal agency and de- nology Innovation Act of 1980, which is dis- partment. cussed subsequently. The activities of such nonprofit centers, initially funded by Govern- By April 1, 1985, the Council was to submit ment but intended to become self-sufficient af- to Congress a report on critical materials inven- ter 5 years, would focus on generic materials tories, and prospective needs for these mate- research. rials by government and industry, One component of this report is to be a long-range The Council is directed to establish, in co- assessment, prepared in conjunction with operation with other agencies and private in- OSTP, on prospective critical materials prob- dustry, a mechanism for the efficient and lems, and to advise about how to address these timely dissemination of materials property 340 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

data. This is intended to promote innovation In its 1984 reauthorization of DPA (Public and better use of materials in design. Possible Law 98-265), Congress established new proce- establishment of a computerized material prop- dures for authorization of Title III projects erty data system (using existing resources to which apply when a congressionally or presi- the extent practicable) is to be considered. dentially declared national emergency is not in effect. Among other things, the law requires Public Law 98-373, like Public Law 96-479 be- the President to determine that federally sup- fore it, is in many respects process-oriented leg- ported projects meet essential defense needs islation, intended to give the Executive Office and that the Federal support offered would be of the President key responsibilities for criti- the most “cost-effective, expedient, and prac- cal materials policy. Within the framework tical alternatives for meeting the need, ” The established by the law, the executive branch law requires “industrial resource shortfalls” for is given considerable discretion and flexibility which Title 111 assistance is sought to be iden- to establish goals, objectives, and priorities for tified in the budget (or budget amendments) critical and advanced material programs. The submitted to Congress. If more than $25 mil- law, for example, does not specifically define lion in aggregate Federal assistance would be the terms “advanced materials” and “critical entailed to meet the industrial resource short- materials, ” but instead uses the broad defini- fall, specific authorization by law would be re- tion of materials provided by public Law quired. 96-479. Historically, DPA has been used primarily to encourage mining of strategic minerals in this Defense Production Act (50 U.S. C. 2061 et seq. ) country and abroad. The instruments provided in the law, however, could potentially be used Enacted in 1950, the Defense Production Act for development of substitutes, advanced recy- (DPA) provides several mechanisms for assur- cling technologies and other technical innova- ing availability of materials and industrial tions considered desirable for national secu- capabilities needed for the national defense. rity. In addition, DPA is now viewed as a Title I authorizes government priorities for al- means to secure supplies and essential proc- location of materials in a congressionally or essing capabilities for advanced materials presidentially proclaimed national emergency needed for defense purposes. or war. Title 111 authorizes the President to support Strategic and Critical Materials Stock Piling private activities which would expedite “pro- Revision Act (Public Law 96-41) duction and deliveries or services” in aid of national defense. Loans and loan guarantees are In 1979, Congress revised and updated prior authorized for expansion of capacity, develop- laws related to the National Defense Stockpile ment of technological processes, or the produc- through enactment of Public Law 96-41. The tion of essential materials, including explora- law resolved several issues related to chang- tion, development, and mining of strategic ing executive branch strategies for stockpile metals. Purchases and purchase commitments management among successive administra- are authorized for metals, minerals, and other tions. Among other things, it stated that the materials for government use or resale. The stockpile was for the purpose of national de- President is also authorized to “make provision fense only, and established a statutory stock- for the development of substitutes for strate- pile goal of having a 3-year supply of materials gic and critical materials” when “in his judg- on hand to meet national defense, industrial ment it will aid the national defense. ” Materials and essential civilian needs in a national de- considered excess to DPA requirements can be fense emergency or war. It also established a transferred to the national stockpile. Title 111 stockpile transaction fund so that sales of ex- assistance can be used both domestically and cess materials could be used to acquire new abroad. materials consistent with stockpile goals. Ch. 8—Policy Alternatives for Strategic Materials Ž 341

Several provisions in the Stockpile Revision may be carried out on public lands, and with Act have indirect relevance to government sup- the consent of the owner, on private lands “for port of private activities related to strategic the purpose of exploring and determining the materials. The law calls for maximum feasible extent and quality of deposits of such minerals, use of competitive procedures for stockpile ac- the most suitable methods of mining and bene- quisitions; however, waivers are authorized, ficiating such materials, and the cost at which and this could provide a basis for supply diver- the mineral or metals may be produced.’” sification on an ad hoc basis. The law authorizes upgrading of already Stevenson-Wydler Technology Innovation Act stockpiled materials through refining and proc- of 1980 (Public Law 96-480) essing so that they will be in the form most The Stevenson-Wydler Act is intended to suited to current needs. This has prompted the promote development and diffusion of new in- considerable interest of domestic processors. dustrial technologies in the United States. The A panel of the American Society for Metals law gives the Secretary of Commerce, in co- (AS M), for example, recommended in August operation with other relevant agencies, key 1983 that sufficient quantities of substandard responsibilities in stimulating transfer and cobalt from the stockpile be provided to indus- diffusion of information about federally funded try in order that it could test capabilities to up- technology development to the private sector grade the material to current standards,’ Of the and to State or local governments. It requires 46 million pounds of cobalt in the stockpile, each Federal laboratory to establish an Office 40.8 million pounds were acquired in the 1947- of Research and Technology Applications to 61 period. More stringent requirements and facilitate information transfer about activities consumer specifications have made much of within the lab that have potential for success- this cobalt inadequate to meet today’s demand- ful application by industry. In addition, the law ing requirements for many critical applications established a central Federal clearinghouse unless the cobalt is upgraded. The ASM panel (called the Center for Utilization of Federal recommended pilot tests with cooperating pri- Technology) to collect and disseminate infor- vate firms to identify preferred procedures to mation about federally owned or originated upgrade the cobalt quality so that it could be technologies. (This function has been assigned used immediately in a crisis. The recommen- by the Commerce Department to the National dation is under consideration by the General Technical Information Service. ) Services Administration (GSA) and Federal Emergency Management Agency (FEMA). The Act also directed the Secretary of Com- merce to assist in the establishment of “centers As in the prior stockpiling law, the 1979 Act for industrial technologies’’—centers affiliated calls on the President to make “scientific, tech- with university or nonprofit institutions set up nologic and economic investigations” concern- to enhance technological innovations, The Rea- ing ‘‘development, mining, preparation, treat- gan Administration, on November 17, 1983, re- ment and utilization of ores and other mineral voked rules for making grants for such centers. substances , . .“ These investigations, delegated At the same time, it also promulgated rules for by the President to the Secretary of the Interior, a program for promotion of private sector in- are to be carried out to determine and develop dustrial technology partnerships, indicating “new domestic supply sources; devise meth- that this program was intended to supercede ods for treatment and use of lower grade ores 7 the generic technology center program. The and mineral substances; develop substitutes for new Administration program provides infor- essential ores and mineral s.” Investigations mation support to industrial technology part-

0 f’uh] i(: 1,aw 96-41, sr(, 8[ a ]. This pro~is ion is a cent i nuat io n of similar pro~’ision~ in prior stockpiling laws. 7F’edcral Rcgi.stcr, Irol. 48, Nro. 223, N o~r. 17, 1983, p. 52289. 342 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

nerships and cooperative R&D arrangements The newly enacted National Critical Mate- of corporations, nonprofit organizations, and rials Act of 1984 directs the National Critical government. Materials Council established by this law to evaluate and make recommendations about The Stevenson-Wydler Act also directed the establishment of Centers for Industrial Tech- National Science Foundation (NSF) to assist in nology to promote innovation and increased the support of “centers for industrial technol- 1984 productivity in basic and advanced materials ogy” under the Act. According to a Ad- industries. Among the activities identified for ministration report on implementation of Pub- possible Center involvement were corrosion, lic Law 96-480, NSF’s previously existing welding and joining of materials, advanced program of support for university/industry co- processing and fabrication technologies, mi- operative research centers is being used to meet 8 crofabrication, and fracture fatigue. the requirements of the Act in this respect. —.—. —— ‘Secretary of Commerce, The Stevenson- Wydler Technology innovation Act of 1980, Report to the President and Congress Law 96-480, the National Science Foundation, in fiscal year 1983, (Washington, DC: U.S. Department of Commerce, February was supporting eight university/industry centers, including two 1984). According to the report, which was required by Public centers on polymers, one on ceramics, and one on welding.

Formulation of Strategic Materials Policy

In formulating long-term technical strategies nerability may be achievable with little govern- for reducing import dependency, the full range ment action, Private industry is already well- of available-options, on a material-by-material positioned to take advantage of the growing in- basis, must be considered. In some instances, ventory of PGMs that could be recycled from there may be several options available for each automotive catalysts as cars are scrapped; and, material. These options could potentially ease with some limited increase in PGM prices, import vulnerability, but entail different costs nearly 10 percent of current domestic needs and different levels of security. In the case of could be provided from one U.S. site, with ad- cobalt, import vulnerability could be reduced ditional production possible from other sites in several ways, including domestic produc- in the longer term. Continued monitoring of tion, recycling, and substitution. Domestic industry trends will be needed, but unless one production, for example, could make a major assumes that a PGM supply disruption is likely contribution to domestic cobalt supplies, with in the near term, government action to encour- complete supply security, but only at a cost to age recycling or domestic production is prob- the government (at 1983 prices) far higher than ably not needed at this time. simply purchasing cobalt for the stockpile from Experience has shown that development of world markets. Other options, such as devel- overall Federal strategies to reduce import vul- oping promising recycling technologies to the nerability is a highly complex task. Several Fed- point where they could be used by industry eral agencies have important research respon- would cost less, but would also entail greater sibilities in the materials field, including the risk, since it cannot be certain that a given re- Departments of Defense, Interior, Energy, and search technology will be commercially viable. Commerce; and the National Aeronautics and It is noteworthy that the implementation of Space Administration (NASA). FEMA has lead these and other technical approaches to reduc- agency responsibility for coordination of stock- ing cobalt import vulnerability all entail in- pile planning, and GSA administers it. Many creased government support. other Federal departments and regulatory In other instances, as in the case of PGMs, agencies have indirect effects on materials pol- substantial long-term reductions in import vul- icy through tax policies, regulation of com- Ch. 8—Policy Alternatives for Strategic Materials ● 343 merce, environmental protection, Federal land innovative initiatives in the materials field, but management, antitrust enforcement, patent it also means that continuing congressional policy, foreign affairs and trade policy, and guidance may be needed at times to assure that other activities. (Selected executive branch the intent of the the two laws is met. agencies with direct responsibilities for stra- OTA’s analysis of oversight issues has fo- tegic materials are shown in table 8-3.) cused on two specific issues that may be par- This decentralization is, to a certain extent, ticularly relevant as the Administration begins unavoidable, and may even be desirable, but to implement the 1984 Act: establishing policy it has made the job of formulating strategic goals, objectives, and priorities for strategic materials policy difficult for both Congress and materials, and upgrading information about the executive branch. Congress itself has many Federal strategic materials R&D activities as a different committees with jurisdictional areas key step in interagency coordination. These is- related to strategic materials, including (among sues are discussed below and are summarized others) House Committees on Armed Services; in table 8-4. Banking, Finance, and Urban Affairs; Science and Technology; and Interior and Insular Af- fairs; and Senate Committees on Armed Serv- Goals, Objectives, and Priorities of ices; Banking, Housing, and Urban Affairs; Strategic Materials Policy Commerce, Science, and Transportation; and A long-term commitment is needed if tech- Energy and Natural Resources. Appropriation nical approaches to the reduction of strategic subcommittees are even more diverse. materials vulnerability are to succeed. More- Through enactment of the National Critical over, the combination of technical approaches Materials Act of 1984 and the National Mate- effective for one material will often be inap- rials and Minerals Policy, Research and Devel- propriate for another. Recognition that effec- opment Act of 1980, Congress has firmly tive planning and policy formulation proce- placed statutory responsibility for coordinat- dures by the executive branch were needed to ing Federal agency activities and decisionmak- develop coordinated goals, objectives, and ing with regard to strategic materials research strategies for materials research led to enact- in the Executive Office of the president. The ment of the National Materials and Minerals policy planning and coordination procedures Policy, Research and Development Act of 1980. required by the 1980 Act, together with the stat- However, the expectation that this law would utory establishment of the National Critical lead to an effective policy structure for coordi- Materials Council “under and reporting to” the nation of strategic material activities through- Executive Office of the president by the 1984 out the government has not been fully realized, Act, may in time provide coordinated and co- as has been discussed. herent strategies to guide Federal agency activ- With adoption of the National Critical Ma- ities to reduce import vulnerability. terials Act of 1984, prospects for improving the As the Administration begins to implement executive branch policy structure will hinge to its new mandate, congressional oversight of the a considerable extent on the effectiveness of Administration’s progress in the continuing the new National Critical Materials Council in implementation of both the 1980 and 1984 laws the Executive Office of the President. Section will be important. Both laws give the Admin- 205(a) of the law gives the Council “specific istration considerable flexibility and latitude responsibility for overseeing and collaborat- in developing strategies to address strategic ing” with Federal agencies and departments materials issues. They are oriented towards de- “relative to materials research and develop- velopment of effective processes to formulate, ment policies and programs. ” In this role, the coordinate, and implement materials policy Council is mandated to annually review both programs, and by and large do not dictate sub- the authorization requests and budget pro- stance. This flexibility could lead to highly posals of all Federal agencies conducting ma- 344 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

Table 8-3.—Selected Federal Agencies With Strategic Material Responsibilities Agency/department Policy Research and Securing matertal comments development development supplies/maintainIng domestic processing capabilities

I:J i 0

c: -Ii .!t .2 1; Itt .s J i 1 I § j I 1 I Illhi 9 ~ ? u ! j Ii i i t ~ I ~ f a. c ! ! ! 2. m ~ i I~~ d1 2 :I I ci 4( Executive Office of the EuP aSSigned overall President: responsibility for policy and R&D coordination by the National Materials Cabinet Council x and Minerals Policy, and Natural Resources Research and Development and Environment Act of 1980 (P.L. 96-479). The National Critical Materials Office of Science X X X x Act of 1984 statutorily and Technology established the National Policy Critical Materials Council to assist and advise the Office of Management X X President on critical and Budget materials and advanced materials policy (P.L. 98-373). (National Critical X X X X X X Materials Council) -Coordinates R&D- Department of Commerce x X X x X X Under P.L. 95-479, DOC has National Bureau of x X X X X statutory responsibility. Standanis aSSigned to the Office of Strategic Resources. for preparing case studies of material problems Department of Defense X X X X X X X X X X X P.L. 96-479 required DOD to and Individual Services submit a Congressional report on t~ationa1 Security needs for materials by Oct. 21,1981. As of March 1984, the report was still under administration review Department of Energy X X X X X X and National laboratories Department of the The Secretary of Interior serves Interior X X X as Chairman of the Cabinet Bureau of Mines X X X X X X x Council and Natural Resources Geological Service x x x and Environment, assigned overall policy responsibility for strategic materials by President Reagan. The Secretary has established an advisory panel on strategic materials to assist the Department in its strategiC material programs. National AeronautiCS and X X X X X X Space Administration Federal Emergency X -Supports R&D- X X X X FEMA is a lead coordinating Management Agency agency in stockpile management 1)0 Ii C1"

General services x IX X X x I GSA admlOlsters the stOCkpile AdrnInistrat4en National Science X -Supports R&D- Foundation X

Export-Inport Bank X X Off Ice of'~echnology' T echnology Assessment ---- - • Ch. 8—Policy Alternatives for Strategic Materials ● 345

Table 8-4.—PoIicy Alternatives for Formulation of Strategic Materials Policy

Arguments for/against Problem/issue Option Positive Negative — . 1. The executive branch has had Direct the National Critical Clear- direction for strategic Overly specific congres- difficulty in establishing Materials Council estab- materials policy and long- sional guidance could overall goals, objectives, and lished by Public Law range plans to address result in inflexible agen- priorities for strategic 98-373 to develop a long- specific material needs is cy response. Periodic materials R&D policy. As a term strategy for required to give contin- revision of the overall result, Federal agency Federal strategic uity and ensure appro- strategic materials plan activities are not guided by a materials activities, in- priate follow-through for could lead to excessive coherent, overall strategy for cluding goals and objec- strategic material time and expenditures long-term reduction in import tives by which individual research. devoted to policy form- vuInerability. agency activities can be ulation and planning monitored. The multi- activities. year strategy could be revised on a 4-year basis by the Executive Office of the President, giving Congress the opportunity to review progress, provide guidance and clarification as needed.

2. Federal R&D activities related Instruct the National Would give decisionmakers Could lead to overempha- to strategic materials are Critical Materials Coun- information needed to sis on strategic dispersed over a large cil to give high priority monitor multi-agency materials R&D to the number of agencies. To co- to section 209(a)(3) of responses to overall detriment of other ordinate R&D policy, conduct Public Law 98-373 which strategic material goals, needed materials oversight and establish calls for cataloging R&D identify areas of overlap research in agency R&D priorities, improved survey activity as fully as pos- or duplication of effort, program planning. information is needed. sible. Such a catalog, if and areas where insuffi- undertaken on a mater- cient R&. D is conducted. ial-by-material and objective-by-objective basis, with updates on a regular schedule, would be useful in the budget review activities of the council and would help identify progress * towards meeting goals.

SOURCE Off Ice of Technology Assessment. terials R&D to “ensure close coordination of set broadly—i.e., strategic materials in gen- the goals and directions of such programs with eral—or should be targeted as closely as prac- the policies determined by the Council. ” This tical to those materials considered to be most process is to be coordinated with the Office of vulnerable. By and large, the approach taken Management and Budget, which is to consider over the years, and which still prevails, is to material budget proposals as a coherent multi- address strategic materials in a generic sense. agency request. The new law requires the This allows agencies to adopt a flexible ap- Council to prepare and annually revise a Fed- proach in their research programs, but with- eral program plan for advanced materials R&D. out centralized administration guidance, it also results in diffusion of efforts among many It seems unlikely that the Council will be able materials. to succeed in its coordinating functions unless it is able to articulate overall goals, objectives, An alternative approach would be for the and priorities that could guide strategic mate- Council to give greatest priority to those ma- rials R&D policy. One important question is terials that are most vulnerable to a supply dis- whether Federal research objectives should be ruption and most critical to the United States.

38-844 0 - 85 - 12 : QL 3 346 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

Such an approach presents some problems. 5 years.” Other plan elements identified by the First, one cannot know in advance which ma- Committee were: “an assessment of current na- terials will actually be subject to a supply tional materials research and technology needs disruption, so a danger exists that the wrong and problems . . . identification of priorities for materials will be targeted. Inflexible adminis- research to address those needs or problems, ” tration and rigid adherence to outdated objec- and “recommendations for program initiatives tives and strategies could also be potential and changes to meet policies and goals as set problems. Furthermore, much materials re- forth by the Council.”10 search is not specific to individual metals, and While the law may not explicitly require such such research might not receive support if a plan for strategic materials R&D, such an forced into a material-by-material evaluation approach might well be effective should the in determining support for R&D activities. Council choose to pursue it. If a more active However, viewed as a policy tool for establish- congressional role is desired, one option (table ing overall Federal goals and objectives and for 8-4, issue 1) would be for the executive branch selecting among alternative strategies for to prepare and submit to Congress a multi-year achieving them, the material-specific approach strategic materials plan of action on a periodic could give a clearer sense of direction to Fed- 9 basis–say once every 4 years. Congress would eral efforts to combat materials vulnerability. then have the opportunity to review the plan’s An effective strategy, therefore, might very well goals and objectives, along with specific meas- involve a combination of both the generic and ures and estimated funding levels needed to material specific approaches to achieve the ob- achieve them. jective of reduced import vulnerability. The multi-year plan could then serve as a Federal program planning for strategic ma- kind of benchmark by which the Council and terials needs to reflect long-term objectives, Congress could evaluate annual budget re- while still being adaptive and flexible in light quests with respect to strategic materials R&D of changing circumstances. The 1984 Act’s activities. In reviewing the plan, Congress budget review mechanism in theory provides could give the Council and the Executive Of- a vehicle for infusing a longer term perspec- fice of the President–which have overall tive into agency planning than is provided by responsibility for materials coordination— the annual budget-setting process. additional guidance on specific issues related This connection is most explicit in the case to the multi-year plan. of advanced materials R&D, through Public Structured into the Act is considerable op- Law 98-373’s requirement that the Council de- portunity for congressional review and over- velop and annually revise a Federal program sight of the Council’s activities, through its plan for advanced materials research and tech- biennial reporting on critical materials to Con- nology. The law itself does not specify the com- gress, its annual reporting to Congress on the ponents of this plan, nor does it specifically de- national Federal advanced materials program fine the term “advanced materials.” However, plan, and its charge to recommend, when the House Committee on Science and Technol- appropriate, changes in current policies, activ- ogy, in its report on the bill, indicated its in- ities, and regulations, and additional legislation tention that the plan include at least four ele- that may be needed to carry out materials ments, including “a listing of major existing policy. Federal material research and technology programs—to include existing funding and goals In the end, the selection of a framework for as well as proposed funding levels over the next policy formulation depends on the extent to which Congress wishes to be involved in set- gThe need for material specific approaches to reduce export ting the overall direction, goals, and objectives vulnerability has been discussed by the U.S. General Account- ing Office, Report to the Secretary of Interior (GAO/EMO-82- 69), June 3, 1982. IOHouse Report 98-593, Part I, pp. 38-39. Ch. 8—Policy Alternatives for Strategic Materials . 347 for strategic materials policy, and the extent search was conducted or sponsored by DOE to which it wishes to delegate that function to national laboratories, the Bureau of Mines, the executive branch. Establishment of the Na- NASA, the National Bureau of Standards tional Critical Materials Council, and the con- (NBS), and various components of the Defense tinuing planning processes required by the Department. 1980 Act, clearly provides legislative authori- Fiscal year 1980 was the last year for which zation for effective policy planning by the ex- the executive branch has published compre- ecutive branch. However, without legislative hensive information about strategic materials oversight and guidance when needed, there is R&D activities on a material-by-material basis. no assurance that current or future adminis- Detailed information of the sort portrayed in trations will fully use these policy tools to ef- the tables have not been issued for subsequent fectively formulate executive branch strategic years on a governmentwide basis. However, it materials policies. appears that strategic materials R&D has not been greatly affected by the general trend Providing Information About Federal Research toward reduction of research budgets that has and Development Activities affected other areas, although some strategic materials programs (e.g., NASA’s conservation A sustained program of Federal R&D will be of strategic aerospace materials program) have the cornerstone of any long-term strategy to re- been cut back. duce U.S. materials vulnerability using the technical alternatives considered in this report. Federally funded R&D has been the driving In the last decade, strategic materials R&D has force behind the development of advanced received increased emphasis, and recent levels materials. Total Federal expenditures for struc- of research funds appear to be quite healthy, tural ceramics R&D were $23 million in fiscal However, concern exists about the adequacy year 1982.12 By fiscal year 1984, Federal ex- of current coordination mechanisms at the in- penditures had grown to over $40 million. Re- teragency level, especially as they relate to the cent figures are not available about composite formulation of policy. R&D funding. However, in fiscal year 1980, over $80 million in composites R&D were ex- The Federal Government is the primary pended by Federal agencies. Advanced mate- sponsor of R&D activities related to strategic rials R&D activities are undertaken by several materials. It is also the primary sponsor of Federal agencies, including the Department of basic and applied research related to develop- Defense, NASA, DOE, NBS, and the National ment of advanced materials. This is consistent Science Foundation. with the administration’s position that Federal support for R&D should focus on high-risk or A central thrust of both the National Criti- long-term areas that may not otherwise be ad- cal Materials Act of 1984 and the National dressed by industry. Materials and Minerals Policy, Research and Development Act is to establish a mechanism In fiscal year 1980, about 4 percent ($67 mil- that would replace ad hoc materials and min- lion) of the total Federal materials R&D budget erals decisionmaking within the executive was directed at strategic materials (excluding branch with a coordinated Federal R&D pol- advanced materials) .11 As shown in tables 8-5 icy. As mentioned, the President’s 1982 mate- and 8-6, nearly 40 percent of this budget was rials plan reestablished COMAT under the di- for chromium research, followed by aluminum, rection of the Federal Coordinating Council on titanium, nickel, and cobalt. Most of this re- Science, Engineering and Technology (FCCSET) 348 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

Table 8-5.—Distribution of R&D Funding for Critical Materials by Materials and by Technology Goal* ($1000)

‘NOTES Funds may be attributed to more than one goal, where appropriate, upper amounts “direct” program funding for research pnmarlly to Indicated category, lower amounts “’related” program funding directed tu the categories, but with slgnlflcant potential for Impact In the lndlcated category, tl Department of Energy 2 Department of Defense 3 Department of the Interior 4 Department of Commerce 5 Natlonai Aeronautics and Space Admlnlstratlon. SOURCE U S Department of Commerce, Survey Ma feria/s Life Cyc/e Research and Development /n tbe Federa/ Government Flsca/ Year 7980 (N BSIR 81-2359 DOE, September 1981) The above table may not reflect all Federal funding of research that affect strategic materials For example, Department of Defense support for surface modtficatlon technologies, near. net shape technologies, and retirement for cause research are not Identlfled In the substitution and conser vatlon columns of the table These programs could result In savings of chromtum, cobalt, nickel and other strategic materials. for the coordination of Federal materials and ● establishment of a working panel within minerals R&D activities, directing: COMAT to coordinate Federal R&D on essential materials; ● Assistant Secretary-level representation ● establishment of a formal mechanism from the departments and agencies con- within COMAT for information exchange cerned with minerals and materials; among agency managers of materials R&D ● the incorporation into COMAT of the De- programs; and partment of Defense Material Availability s policy resolution of materials R&D ques- Steering Committee and the Interagency tions through the Cabinet Council on Nat- Materials Group; ural Resources and Environment. .

Ch. 8—Policy Alternatives for Strategic Materials ● 349

Table 8-6.— Distribution of Critical Materials R&D Funding by Stage of the Materials Cycle* ($1000)

Exploration Processing Manufacture Application Evaluation Development of raw and and of of Waste resources Extraction materials fabrication utiIization properties materials management Totals I Chromium I 151 I - 550 10,300 60,050 15,570 31,616 260 118,492 — — — — I 420 I 100 I 300 I 70 I 890 I Aluminum 121 — 1,555 1,000 3,000 5,000 500 — 11,176 — — — I — I — — — — — Niobium 32 — 180 2,000 3,000 1,000 4,000 — 10,212 — — — 200 200 500 — 70 920 Cobalt 120 306 825 810 1,000 1,190 1,270 397 5,918 30 106 381 420 113 100 530 84 1,764 — Titanium 51 — 250 300 1,000 1,000 1,050 — 3,651 — \I l–l– 210 200 200 500 300 1,410 Platinum 38 500 200 500 1,000 680 — 2,918 — — — — — — — 150 150 I I I I I iI Manganese 55 251 1,000 300 247 3,003 30 106 — — 288 661 Nickel 120 251 660 — — 500 860 397 2,788 I I 30 I 243 324 I 200 I 313 500 230 293 2,133 — - — — Lead 92 950 I 265 1,307 — — — —-1 — — — — —

Tantalum — 100 200 500 200 1,000 I l–l– — 200 200 500 — 900 Iron ore — . 840 — — — — 640 — — — — — — — I I I I I 280 280 Tungsten 57 — 470 I — I — 125 — 652 — 430 — — — — 430 Direct 837 808 6,830 15,210 69,350 26,760 40,601 1,566 101,962 I Related I 90 I 455 1,469 1,640 1,239 2,100 1,360 1,235 9,588

“ NOTES Funds may be attributed to more than one goal, where appropriate, upper amounts direct program funding for research prlmarl Iy to lndtcated category lower amounts related program funding directed to the categories, but with slgnlf!cant otentlal for Impact In the Ind Icated category

SOURCE U S Department of Commerce Survey I terta /s L //e Cycle Research and Deve/opfnen( /1 the Federa/ Governmen( F/sea/ Year 1980 (N BSIR 81 2359 DOE, September 1981 I

COMAT was directed to perform an inven- or even identified. Nor does the 1983 report tory of Federal research and technology activ- group Federal R&D activities by specific ma- ities that would be useful for interagency co- terial (e. g., cobalt, chromium) or by program ordination and for assessing national materials objective (e.g., minerals development, recycl- needs and objectives. The data acquired from ing). Instead, the 1983 inventory lists overall this inventory would be used by the Cabinet materials program funding levels for fiscal year Council to aid in policy decisions pertaining 1982 and estimated expenditures for fiscal year to R&D. 1983 on an agency-by-agency basis. Since the 1983 inventory does not identify strategic COMAT’s report, “Inventory of Federal Ma- materials research activities, it is of virtually terials Research and Technology, ” was issued 13 no use as a policy tool in the development of in June 1983. Unlike the survey done for fis- material-specific objectives and policies for cal year 1980, funding levels for strategic R&D. materials research are not separately addressed Moreover, COMAT apparently has not taken 1 1~’()[~()r[~ (:fx)r[~l n~i 11]: ( :(}L]I1(; i] for S(:ien[, e, Engineering, and action to assure that individual agencies keep ‘rechnolog~ (;ommittw on \laterials, ZII ten tor~ of 1+’ederal track of strategic materials research activities ,I!ateria]s Research and ‘1’cchnologj.: Fiscal J’ear 1982 O$’ash- i ngtorl, 11(;: Exe(,ut i~w of fi( f! of the l)resident, office of Science on an agencywide basis, COMAT representa- an(l ‘1’echnolc)g} P(Ji(:y, ]LIII(’ I’18:1). tives from several Federal agencies were con- 350 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

tacted by OTA to determine whether detailed private institutions” (Public Law 98-373, sec. agencywide information on strategic materials 209(a)(3)). Such information will indeed be crit- funding had been compiled independently for ical if the Council is to effectively exercise its fiscal year 1985. Some agencies provided this new responsibility for coordination and review information at a relatively detailed level, but of Federal strategic materials activities. Con- one major department was able to provide only sistent with the premise that the executive a partial answer. In this case, OTA was told branch should have considerable flexibility in that it would take 3 to 6 months to perform a formulating materials programs and plans, the strategic material R&D inventory if given a for- Act does not specify a timetable for such cata- mal request. log activities nor identify its content. It would appear, therefore, that COMAT has Certainly, if effective coordination of strate- not established an effective mechanism to track gic materials research were envisioned, infor- and report on interagency strategic materials mation equivalent in detail to the earlier (fiscal research activities, The need for such informa- year 1980) survey would be needed. Periodic tion in R&D policy formulation is widely rec- surveys of this sort would also be needed to de- ognized as a key step in establishing effective velop a multi-year executive branch plan of ac- coordination of all Federal activities related to tion for strategic materials. Given the recent strategic materials research, In fact, the 1984 difficulties the executive branch has had in de- National Critical Materials Act calls on the Ex- veloping such survey information, congres- ecutive Director of the National Critical Ma- sional oversight and guidance may be needed terials Council to catalog, “as fully as possible, if the initial activities of the Council do not give research and development activities of the Gov- priority to developing a continuing tracking ernment, private industry, and public and system of this sort (table 8-4, issue 2).

Mineral Production and Processing

Currently, there is virtually no production of short tons) could be provided for a 10- to 15- cobalt, chromium, manganese, or PGMs from year period if known domestic cobalt depos- domestic mines.14 However, prospects are good its were simultaneously developed, production for platinum and palladium production from will not occur unless cobalt prices rise and are the Stillwater Complex in Montana, which sustained at appreciably higher levels than is could provide about 10 percent of U.S. PGM now the case, or unless the government pro- needs (as a percentage of 1982 consumption) vides a substantial subsidy. Domestic prospects if prices increase somewhat, as well as much for production of chromium and manganese larger amounts of PGM if it becomes feasible production are not good, owing to the very to open other sites, (The decision whether to poor quality of known domestic deposits. go ahead with an initial mining project is ex- The United States heavily relies on a few pected to be made in 1985,) In addition, more countries for its supplies of strategic materials, than 10 million pounds per year of cobalt (5,000 To some extent, supply diversity could be broad- lqAbout 2 percent of apparent domestic consumption of man- ened through greater reliance on other coun- ganese is contributed from manganiferious ore containing less than 35 percent manganese, Platinum group metals have been tries which have known deposits of strategic produced domestically in small amounts as recently as 1982. materials. Of the four metals under study, sup- I,arger amounts of manganese and some chromium were ply diversity is currently greatest for man- produced during the 1940s witb considerable Federal subsidy. Substantial amounts of cobalt were produced under Federal sub- ganese; greater diversity on manganese sup- sidy during the 1 950s. Cobalt was also produced in small plies will probably depend on the willingness amounts as a byproduct of iron production until 1971. of producers in Australia, Mexico, and Brazil Ch. 8—Policy Alternatives for Strategic Materials ● 351 to increase production for export markets. In assessment, 15 in which alternative alternative the case of chromium, expanded production management strategies and policy issues asso- in Turkey, Albania, and the Philippines ap- ciated with mineral development on Federal pears to be the primary near-term supply diver- lands were comprehensively addressed, as well sification option; in the longer term, limited as several other, more recent publications ad- amounts of chromite may be obtainable from dressing mineral development issues and Fed- deposit types that are now untapped in the eral lands.16 Philippines and New Caledonia. Increased supplies of cobalt maybe obtainable from Canada Exploration for Domestic Strategic Resources as a byproduct of nickel-copper production. Over the long term, cobalt may be obtained as The outlook for the discovery of commercial- a byproduct from Pacific-rim nickel laterite de- scale deposits of the first-tier strategic materials posits when future nickel demand justifies new in the United States is generally agreed to be mine operations. Other than the U.S. Stillwater insufficient to generate more than minor inter- deposit, significant diversification of platinum est by most mineral developers. The U.S. Gov- supplies seems unlikely. (See table 5-3 of ch. ernment spent considerable effort during and 5 for a country-by-country ranking of supply after World War II in seeking high-grade do- diversification prospects for each of the first- mestic deposits of manganese and chromium, tier minerals.) with only subeconomic deposits to show for its efforts. Cobalt, while not sought directly, has OTA’s analysis of alternative policy actions only been found in low grades and only as a with regard to minerals production and proc- result of exploration for nickel, copper, lead, essing focused on the following areas: poten- and zinc. Platinum, the one successful case of tial of intensified exploration assistance to discovery of a commercial-grade deposit of a locate new domestic deposits; possible govern- first-tier material, is quite limited in terms of ment subsidization of domestic production; tar- total U.S. demand for PGMs. geting of Federal programs to encourage diversification of foreign supply sources; and Past failures, however, do not mean that options for addressing problems associated there is no possibility of discovering domestic with declining domestic processing capabil- deposits of chromium, cobalt, manganese, or ities. The options addressed are summarized PGMs. Past experience, however, makes explo- in table 8-7 and discussed below. ration less attractive for these materials than The emphasis in this assessment is on tech- 15u. s. Congress, Office of Technology Assessment, ~anage- nological issues. Therefore, political issues ment of Fuel and Nonfuel Minerals in Federal Lands, OTA-M- associated with competing values for Federal 88 (Washington, DC: U.S. Government Printing Office, April land management are not addressed here. 1979). leLegis]ative statu5 of selected bills in the 98th Congress re- Some Federal lands are under highly restric- lating to strategic minerals evaluation and Federal lands is pro- tive management policies which limit the cir- vided in Strategic Materials Management, June 15, 1984. Pro- cumstances and kind of exploration activities cedures used in regional mineral appraisals on Federal lands are discussed in John J. Schanz and John G. Ellis, Assessing the that can be undertaken, and these restrictions Mineral Potential of the Federal Public Lands (Washington, DC: are seen by some exploration geologists as pos- U.S. Library of Congress, Congressional Research Service, 1983). sibly inhibiting private initiatives to discover Recent Department of Interior activities related to Federal land mineral evaluation potential are discussed in U.S. Department new mineral deposits. In general, Federal lands of the Interior, Summary Report: US. Bureau of Mines Depart- being considered for permanent addition to ment of Interior Programs and Studies Required by the National such restrictive management systems as the Materials and Minerals Policy Act of 1980 (Public La w 96479) National Wilderness Preservation System are (report submitted to the chairman of the Subcommittee on Trans- portation, Aviation, and Materials, U.S. House of Representa- given some mineral appraisal prior to desig- tives Committee on Science and Technology, with cover letter nation. The reader is referred to a prior OTA dated Nov. 10, 1983). 352 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

Table 8-7.—Policy Alternatives for Exploration, Mineral Production, and Processing

Arguments for/against Problem/issue Option Positive Negative 1. Lack of industry interest in a. Improve the economics of Cost to government arises Tax incentives can only exploring for domestic deposits domestic deposits of stra- only if deposits of strategic improve project economics by of strategic materials. tegic material resources materials are developed. several percentage points. through tax incentives for Costs are limited to tax liabil- They cannot turn deposits exploration and develop- ity of those deposits. simiIar to known domestic ment. chromium, cobalt, and manganese deposits into profitable ventures. b. Reduce the cost of explora- Could reduce cost of identi- Actions are not material- tion by increasing level of fying areas of possible specific and are unlikely to detail obtained by govern- deposits and allow industry to result in increases in explora- ment resource assessments conduct more exploration tion for strategic resources and by conducting R&D to within current exploration unless coordinated with other improve exploration budgets. incentives. technology. c. Improve ability to predict Could lead to location of Unlikely to result in discovery location of possible deposits that cannot be found of any deposits of strategic deposits of strategic by current exploration equip- materials resources until material resources through ment or methods. greater scientific understand- increased understanding of ing is achieved—a process ore formation processes. that could take many years. 2. Known domestic strategic Federal subsidies for Assure domestic supply. High costs relative to pur- material sources are economi- domestic mining. Reduce likelihood of disrup- chasing for stockpile on cally noncompetitive, and tion occurrence. world markets. No guarantee therefore not currently producing. that production period would coincide with any supply disruption. a. Cobalt Could provide an assured At 1983-84 metal prices, a domestic supply of up to 10 substantial Federal subsidy million pounds per year over would be needed so that it 10 to 15 years. would be cheaper to buy cobalt on world markets for the National Defense Stockpile. b. PGM A relatively small subsidy could Government action probably not assure near-term production necessary. Market forces of 6 to 10 percent of U.S. alone are expected to pro- needs. mote domestic production — possibly in the next 5 years. c. Chromium and manganese Subsidy would assure production of Cr and Mn in lim- Uneconomic nature of known ited amounts over relatively deposits would require high short time period; might subsidies: for Cr, two or more encourage domestic explo- times and Mn, seven times ration activities. market world prices.

3. Magnitude of production Use government resources Reduces likelihood of Perpetuates reliance on foreign resources of existing concen- to expand foreign production successful supply disruptions. sources. If actions are not - trated foreign suppliers inhibit of strategic materials. targeted, option could pro- development of alternate sources. mote competition for nonstrategic domestic mining industry. a. Improve information about Relatively inexpensive use of Results tend to be limited and possible projects. resources. difficult to foresee. b. Reduce political risks to Relatively inexpensive use of Targeting to specific minerals U.S. private sector resources. is difficult. Results are investment. limited in weak mineral markets. c. International direct/indirect While relatively expensive, As with domestic subsidies, aid to encourage foreign many foreign mining projects it would be less expensive at projects. are marginally economic and current prices to purchase could be less costly than from existing sources for domestic subsidies. Aid can stockpile. be coupled with other developing country needs. Ch. 8—Policy Alternatives for Strategic Materials ● 353

Table 8-7.—Policy Alternatives for Exploration, Mineral Production, and Processing (Continued)

Arguments for/against Problem Option Positive Negative

4 Declining domestic ferroalloy ore a Government subsidies to Assures processing capability Creates excess global supply. processing capability maintain/develop capacity in time of emergency need. along with ore sources b Government support for Improves productivity and Closure of some remaining modernization efforts and therefore competitive position facilities continues with job R&D in emerging of domestic Industry. Could loss in near term. technologies. target development of flexible production capacity,

SOURCE Office of Technology Assessment for other minerals, such as copper, lead, zinc, cally at reducing the cost of exploiting depos- or bauxite, for which there is a substantial rec- its for the first-tier materials as they are likely ord of success to hearten investors. to be found in the United States. The Federal Government generally partici- The second approach would be for the Fed- pates in only the first of the four stages of pros- eral Government to undertake, either directly pecting and exploration, that of wide-scale or through contract with private firms, more reconnaissance (table 5-2, ch. 5). Information detailed prospecting activities, again directed obtained at this stage helps prospectors select at specific types of mineral deposits. This ap- areas for more detailed survey but is unlikely proach could also include the development of to locate signs of a specific deposit. In view of improved exploration equipment and tech- the prevailing industry belief that commercially niques, such as the development of geophysi- competitive deposits of the first-tier strategic cal techniques for locating sedimentary man- materials are unlikely to be discovered, an in- ganese deposits, more portable and accurate crease in general information would probably equipment for geochemical analysis, and lower be insufficient in and of itself to encourage cost core-drilling equipment. more intensive exploration for these specific The third approach, increasing the likelihood materials, although such information may in- of success of exploration, could combine cur- deed encourage exploration for other metals. rent data collection and analysis procedures To increase the potential for discovery of do- with intensified research into the processes of mestic deposits of first-tier materials, the po- formation of deposits of strategic materials, tential profitability of deposits must increase, with the goal of improving the ability to iden- the cost of exploration must decrease, or the tify areas most likely to have deposits of spe- likelihood of success of exploration must in- cific first-tier strategic materials. Predictive ge- crease. Further, in order to be efficient in the ology, based on theories of the formation of use of Federal resources, actions directed mineral deposits, is in its infancy and certainly toward these goals should be material-specific. a long-term approach to strategic materials Table 8-7, issue 1, identifies three approaches supply issues. which could be taken. The first possibility, increase of profitability Domestic Production of Strategic Materials of potential deposits, could be approached through tax policy (e.g., increasing the percent- As discussed in chapter 5, known domestic age depletion allowance for specified mate- deposits of first-tier strategic materials cannot rials), through exploration loans that have re- support profitable minerals production at cur- duced rates or reduced principal when they rent prices, Nonetheless, domestic production lead to the discovery of deposits that eventually could make a contribution to domestic mate- lead to commercial exploitation, and through rial supplies. Of the materials under study, po- mining and metallurgy R&D directed specifi- tential contributions to material supplies (as a 354 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

portion of U.S. requirements) varies from mod- reauthorization of DPA for fiscal years 1985 erate to large in the case of PGMs and cobalt and 1986. In hearings about this legislation, the to small, in the case of chromium and man- U.S. General Accounting Office expressed con- ganese, cern that the Administration had not undertaken adequate cost/benefit comparisons among Several potentially exploitable PGM depos- candidate Title III projects for which it sought its exist, the largest of which are located in the funding. In April 1984, Congress amended Stillwater Complex in Montana. Commercial DPA to authorize a total of $100 million in fi- production of PGMs from one site in the Com- nancial aid to defense industrial projects for plex is now under evaluation by a private firm. 19 fiscal years 1985 and 1986. The amendment Other than monitoring progress at the Still- did not preclude a Title III cobalt project, How- water site, there appears to be no pressing need ever, it did establish new procedures for the for government involvement in this project at Administration to follow in seeking Title III this time. It has been estimated that, if a deci- authorization. Except in times of a national sion to go ahead is reached, about 2 years lead emergency, Title III projects must be presiden- time would be necessary before the mine would tially cleared, and a determination made that produce PGMs. At current prices, domestic the alternative is the most practical means for production of the other first-tier materials meeting a shortfall. would require a Federal subsidy. It is not clear whether the Administration has The Federal Government can subsidize—and any plans to initiate a cobalt project, but the sometimes has subsidized—domestic produc- issue of domestic production of strategic mation of strategic materials. During World War terials is likely to continue to be debated in the 11 and the Korean war, the United States was future, able to obtain some of its chromium, manganese, and cobalt supplies through heavy sub- Potentially exploitable cobalt deposits in the sidization of production from limited domes- United States include the Blackbird Mine in tic deposits. Between 1948 and 1962, about 14 Idaho, the Madison Mine in Missouri, the million pounds of cobalt were produced do- Gasquet Mountain Project in California, and mestically under Federal subsidy.17 When Fed- the Duluth Gabbro Complex in Minnesota. For eral contracts expired, most domestic produc- domestic production to occur without subsidy, tion ceased.18 cobalt market prices, about $6 per pound in 1983 and $11 to $12 in mid-1984, would need Recent concern about strategic materials has to rise appreciably and be sustained for a pro- rekindled interest in domestic production sub- tracted period in order for mine owners to as- sidies through Title III of the Defense Produc- sume the risks of production, Each of these tion Act (table 8-7, issue 2). Title III provides sites has received some scrutiny for possible several instruments (loans, loan guarantees, subsidy under the Defense Production Act. Al- guaranteed prices, or purchase commitments) though DPA can be used to secure materials that could be used to support industrial proc- for the stockpile, it has generally been used to essing and production of strategic materials. support industrial processing capabilities con- Possible subsidization of domestic cobalt pro- sidered essential for national defense, One duction was among an initial list of Adminis- proposed method of subsidy has been a “con- tration projects proposed for possible Title III tingent purchase contract” between the gov- assistance during congressional debate about ernment and mine owner. In such contracts, a negotiated “floor price” would be set with ITJarneS C. Burrows, cobalt: ArI Industry Analysis, a Charles the company. The government would be obli- Rivers Associates Research Study (Lexington, MA: Heath Lex- ington Books, 1971), p. 111. IaSome cobalt continued to be produced at Pennsylvania’s lgpublic Law 98-2Nj, the Defense Production Amendments Act Cornwall Mine until 1971 as a byproduct of iron ore produc- of 1984, was signed into law by President Reagan on Apr. 17, tion without subsidy. 1984. Ch. 8—Policy Alternatives for Strategic Materials ● 355 gated to buy the cobalt only if the company planning, It has also increased its mine life esti- were unable to sell it on the open market, mate to 20 years. Some evaluation of production economics Another inactive mine, the Madison Mine in from candidate sites has been conducted by the Missouri, could also support production of co- sponsoring companies, with estimates ranging balt as a primary ore, according to its propo- from $16 to $25 per pound. However, some of nents. Closed since 1961, Madison produced the estimates have not been revised since 1981, lead, copper, and nickel, and during the 1950s, and none should be considered definitive, cobalt under a DPA subsidy. Madison’s owner According to the Department of Defense, “con- estimates that the mine could produce 2 mil- tradictory data being quoted and evaluated” led lion pounds of cobalt annually over an esti- the Air Force, in 1983, to seek “definitive data mated mine life of 20 years. In addition, sub- through legal contracting procedure for a stantial amounts of cobalt are present in mine cost/benefit analysis of domestic cobalt produc- tailings that have accumulated over the years tion.” 20 The form of the Air Force effort, a draft from lead and zinc mining in the area. These request for proposal,21 evoked controversy be- tailings could provide 300,000 to 500,000 cause some believed that a final determination pounds of cobalt annually, using prevailing had been made to go ahead with a pilot plant lead and zinc recovery technologies, but far project to evaluate the quality of domestically more if other processes were adopted. The produced cobalt for defense applications. The Madison mine owner estimated in 1981 that effort did not reach the stage in which such de- a cobalt price of $25 per pound would be nec- finitive data was submitted, however. essary to bring the mine into production. Re- vised estimates apparently have not been made The Blackbird Mine (an inactive mine which since then. produced cobalt under DPA subsidy in prior years) is considered the largest potential do- The Gasquet Mountain Project, a proposed mestic source. In 1981, the company which mine on National Forest land in California, owns the mine estimated that Blackbird could would involve production of cobalt and some support an annual production level of 3.7 mil- chromite as coproducts of nickel production. lion pounds (1,850 short tons) of cobalt for a A 1981 feasibility study for the project esti- 14-year period if cobalt prices rose and were mated that the lateritic deposits at the site could sustained at a $20 per pound level or if the gov- support annual production of 19.4 million ernment subsidized production. 22 Lead time for pounds of nickel, 2 million pounds of cobalt, production would be 3 to 4 years. A spokes- and 50,000 tons of chromite over an estimated man for the company recently told OTA that mine life of 18 years. The economic feasibil- it now estimates a sustained cobalt price of $16 ity of the project would thus depend on multi- per pound to be sufficient to bring the mine ple metals prices, with changes in the relative into production, owing to discovery of higher value of one metal, compared to the others, grade cobalt at the site, and improved mine affecting production economics. For example, if nickel prices were $3.50 per pound, cobalt 20Department of Defense submittal entitled “General DoD Com- production would be viable at $12.50 per ments on the Classifed GAO Statement, ” in U.S. Senate Com- pound. If nickel prices rose to $3.96 per pound, mittee on Banking, Housing, and Urban Affairs, Reextension cobalt would be viable at $8 per pound, but if of the Defense Production Act, hearing held Sept. 15, 1983, (Washington, DC: U.S. Government Printing Office, 1983), p. 161. nickel prices were $2.21 per pound, a cobalt 21 Department of the Air Force, Draft Request for prOpOsal price of $25 would be required.23 Nickel prices (DFRP) for Contemplated RFP F33615-83-R-5106: Establishment in 1983 were $2.20 per pound. A company of Domestic Cobalt Production, Aug. 30, 1983. ZZLetter of R.V. Fiorini, Vice-president, General Manager, Noranda Mining Inc. to Senator Harrison S. Schmidt as reproduced in U.S. Senate Committee on Banking, Housing, and Ur- ZSDocuments prot~ided to OTA on the Gasquet Mountain Stra- ban Affairs, Defense Production Act and the Domestic Produc- tegic Metals Project by the California Nickel Corp. in March tion of Cobalt Hearing, Oct. 26, 1981, Senate Hearing 97-38 1983. The figures cited above assume a constant chromite price (Washington, DC: U.S. Government Printing Office] p. 143, of $40 per ton. 356 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability spokesman told OTA that it had not revised its about the 1984 DPA amendments.24 The Black- economic evaluation since 1981. bird Mine is surrounded by Federal lands, including 40,000 acres which has been classified In assessing the desirability of subsidizing as wilderness with a stipulation that it will re- domestic cobalt or any other strategic material, main open for cobalt exploration and mining several considerations should be kept in mind. activities. Although open, actual development Supply security is the primary argument used of the mine could be delayed by the process in support of government assistance for domes- of establishing Federal regulations governing tic cobalt production. To some, the risks en- access to the site across Federal lands. Water tailed in continuing to depend on insecure for- pollution problems arising from the presence eign sources of cobalt is an overwhelming of arsenic will have to be overcome before argument in favor of a domestic production production can begin. subsidy even when cobalt could be more cheaply acquired from world markets for the stockpile. The supply security aspect of domestic produc- Encouraging Foreign Production of tion is most persuasive if the risk that a pro- Strategic Materials tracted supply disruption will occur before ade- The United States is likely to be dependent quate quantities of cobalt could be acquired for on a few producing countries for most of its the stockpile is seen as unacceptable. To those supplies of strategic materials for the fore- who think the short-term risks of a supply dis- seeable future. Actions can be taken to increase ruption are not great, stockpiling now, rather the number of countries supplying these ma- than depleting limited domestic cobalt re- terials, thus achieving greater diversity of sup- serves, seems to provide greater supply secu- plies. However, these actions take time to rity in the long term. implement and are not likely to alter funda- Fluctuating cobalt or coproduct metal prices mentally the supply patterns in the next dec- have made it difficult to identify the extent of ade. Over the long term, a concerted effort to subsidy that would be needed, compared to promote diversity of foreign supply sources of simply buying cobalt on the world markets for specific minerals could help reduce overall the National Defense Stockpile. If 1980 cobalt U.S. vulnerability to a supply disruption. To prices ($25 per pound) were to return and be be most effective, these actions must be nar- sustained, domestic production of cobalt would rowly focused to address problems that are compare favorably with world prices, and thus mineral-specific and to avoid possible compe- could be cost effective even with minimal gov- tition with efforts to develop domestic sources. ernment involvement. At 1983 cobalt prices, Potential benefits of supply diversification about $6 per pound, it would cost the govern- strategies will vary by material, Of the first-tier ment three to four times as much to buy co- materials, for instance, prospects for supply balt from domestic mines than from the world diversification appear to be best for manga- market. If it is assumed that mid-1984 cobalt nese, which already has the most diverse sup- prices (about $12 a pound) will continue, stock- ply. Several alternative supply sources also ex- piling from world markets would still be ist for chromium, such as expanding output in cheaper than subsidizing domestic production. Turkey and the Philippines. Cobalt diversifi- Environmental considerations may also de- cation, primarily in the Southwest Pacific, delay or potentially curtail proposed projects, pends to a large degree on world markets for especially when supply security objectives are nickel and copper, since cobalt is usually a by- not widely perceived as a pressing need. Con- cerns about possible water pollution and envi- ?4Environmental concerns associated with Gasquet Mountain were discussed in House debate on the conference report on ronmental damage to California’s Gasquet the DPA amendments. (Congressional Record, H2538, Apr. 17, Mountain were raised in the legislative debate 1984.) Ch. 8—Policy Alternatives for Strategic Materials Ž 357 product of production of these metals. In the supported development of Cuban nickel re- case of PGMs, the most promising known but sources to diversify U.S. supplies. The effort nonproducing deposit is in the United States. was successful in developing Cuban nickel, but Outside the United States prospects for PGM for political reasons the United States has not supply diversification will depend on new dis- had access to this supply since the early days coveries rather than on the development of of the Castro regime. known deposits. In some countries the government plays a The likelihood that a supply diversification very active role in backing international re- strategy will succeed also depends in part on source projects launched by private firms. In the extent to which the Federal Government Japan, for instance, overseas ventures of suffi- and U.S. industry are willing to accept the risks cient importance to be considered “national and attendant costs associated with bringing projects” are backed by low-interest loans to alternative supply sources on line, According both the country in which the project is located to a 1982 GAO report, direct investment by and the consortium of Japanese firms involved U.S. firms in mining and smelting activities in in the project. The government itself serves as developing countries has fallen significantly the major stockholder in the consortium. since the late 1960's and early 1970s.25 Reasons Among industrialized nations, Japan is unusual for this include prolonged weak markets, per- in that half or more of its foreign mining and ceived risks associated with such investments smelting investments are in developing coun- (due to political uncertainties), and controls on tries—as compared to 25 percent among U.S. investment asserted by producer countries. On firms .28 the other hand, the involvement of multina- In the United States, private industry—not tional mining firms in developing countries is government—plays the primary role in secur- still extensive, While equity participation has ing mineral supplies from foreign sources, and declined, firms are willingly supplying technol- this policy is likely to continue. However, the ogy and management services. Federal Government can be a catalyst in pro- New mining ventures from exploration to moting private investment overseas, through production can cost $1 billion and more. More- the dissemination of essential information, by over, mining prospects are long-term ventures. facilitating interaction between private indus- Exploration activities to discover new depos- try and foreign owners, and by the targeting its can take many years and are often unsuc- of international aid to private and producer cessful. Once a deposit is identified and found country mining activities that are related to to be promising, a minimum of 2 to 5 years is strategic materials. The extent and degree of required to bring a new mine into production; encouragement considered appropriate can somewhat less time is required to increase out- range from modest to extensive, depending on put from an existing alternative mine that is the importance given to supply diversification already in operation. Hence, actions taken to in overall U.S. strategies to reduce import de- promote diversity of supplies must be planned pendency. and executed far in advance and are not likely The Reagan Administration has emphasized to be successful as a way to avert immediately information development to encourage private the consequences of a supply disruption, Even action. Initiatives include a Department of In- if financial obstacles were overcome, supply terior minerals training program for State De- diversification strategies have inherent risks. partment regional resource officers to improve Near the end of World War II, and through the collection of information. It also includes much of the 1950s, the Federal Government discussions with market economy countries

f 25[J. S, (jfjnera] A{;{;c)unting office, Federal Encouragement ‘ about mineral investment problems and the hlining ln~estment in 1%~’eloping Countries for Strategic and Criti{;al Minerals Has Onl~ Been hlarginall~’ Effectitre (Wash- ington, I)C: [J. S. General Accounting Office, 1982]. 2~Ibid., p. 5. 358 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability need for more consistent statistical reporting. One TDP report has resulted in a TDP follow- In fiscal year 1983, the U.S. Geological Survey up contract for a feasibility study to further en- (USGS), in cooperation with Canada, West Ger- courage private industry’s involvement. Future many, Australia, South Africa, and Great Brit- reports might be more useful if they included ain, began an International Strategic Mineral possible followup steps for government action Inventory program to upgrade and standard- to be considered by relevant agencies (e.g., ize resource and production information about technical or financial assistance), and joint ven- world deposits of chromium, nickel, manga- ture opportunities for the private sector. Al- nese, and phosphate. Other minerals are ex- though TDP’s approach is promising, funding pected to be added to the inventory. The USGS levels may be too low to realize any substan- Office of International Geology obtains fund- tial improvement in diversified minerals ing through the Agency for International De- sources. velopment (AID) for various mineral potential Other Administration efforts have involved studies of developing nations. These projects the development of a model bilateral invest- are often cooperatively funded by the development treaty. When adopted by individual coun- ing nation, must be “sold” to AID on the basis tries, such a treaty may improve a country’s of their assistance to immediate development investment climate, but does not necessarily needs, and do not necessarily focus on strate- create mineral investment opportunities, gic materials. (Phosphate for agricultural purposes is a major item.) An alternative or complementary approach would be to target or give special priority to President Reagan has also given new respon- strategic materials in U.S. bilateral assistance sibilities to the Trade and Development Pro- programs, or as part of U.S. responses to multi- gram (TDP) of the International Development lateral assistance in which it participates (table Cooperation Agency (IDCA) in order to “broaden 8-7, issue 3). The 1980 National Materials and opportunities for the U.S. private sector to par- Minerals Policy, Research and Development ticipate in the development of and diversifica- Act emphasized the importance of such activ- tion of foreign sources of supply of strategic 7 ities by calling on the President to “assess the materials. “2 The mineral resources group of opportunities for the United States to promote TDP received funding of about $700,000 in cooperative multilateral and bilateral agree- fiscal year 1984 which is supplemented by co- ments for materials development in foreign na- operative funding for specific projects. TDP tions for the purpose of increasing the reli- concentrates its efforts on a small number of 29 ability of mineral supplies to the Nations.” strategic minerals and, as of March 1984, had Major multilateral and bilateral programs issued five reports that identified investment applicable to mineral development are high- possibilities in those minerals for U.S. mining 28 lighted in box 8-A. companies in foreign countries. TDP also brings private project promoters and prospec- Multilateral programs, established by the tive investors together informally to discuss for- United Nations, the World Bank group, and eign mining and processing projects. The TDP other international organizations, have been reports have been thoroughly prepared and are the primary means (albeit indirect) for U.S. potentially useful; however, some industry peo- assistance for mining and smelting activities ple claim they provide information already in developing countries. These programs, ac- available and that the analysis is not extensive cording to the GAO report, have had a limited enough to attract private investment, especially impact on increasing supplies of strategic during periods of depressed minerals markets. materials of importance to the United States. Of 45 mineral-related projects during 1971-80, ZTNatjona] Materia]s and Minerals Program Plan and Report most involved copper, lead, zinc, and iron ore, to Congress, op. cit., p. 11. 28Report~ cover manganese in Mexico, cobalt in Morocco and Peru, and chromium in Turkey and the Philippines. Zesec. 4(g) of Public Law 96-479. Ch. 8—Policy Alternatives for Strategic Materials ● 359

Box 8-A—Bilateral and Multilateral Assistance Approaches for Mining Investment in Other Countries Bilateral Approaches: to those which are viewed as a way to im- ● Overseas Private Investment Corporation prove foreign exchange earnings and bal- (OPIC) was established in 1969 to facilitate ance of payments postures. Development flow of private U.S. capital and skills to the bank activities sometimes conflict with U.S. Third World through insurance, financial domestic mining interests by promoting the guarantee, direct loan, and promotional development of foreign competition. programs. Mining and energy initiatives U.N. Revolving Fund for Natural Resources were instituted in 1977 to help revive in- Exploration was set up in 1973 to help in- vestor interest in developing country mining crease natural resources exploration in de- projects. Although OPIC does not support veloping countries and expand the world’s a significantly large number of projects, the known resources base. Its mission is to ad- mining projects that it does support are gen- dress what experts perceive to be the great- erally targeted to strategic minerals. est mining-related problem for developing ● Export-Import Bank was created in 1934 to countries: insufficient exploration. While provide financial support for U.S. export exploration costs generally are not great sales through direct loans, financial guaran- compared with mine development costs, tees to private lenders, and commercial and the risks are greater due to a lower prob- political risk insurance. Unlike most assist- ability of success. Therefore, funding is dif- ance programs, Ex-Im operations are not ficult to obtain–even from development limited to developing countries. Programs banks. The Fund, which contracts actual were directed toward specific mineral work to the private sector, deals in explo- needs during World War II and the Korean ration projects exclusively although it does war using the Reconstruction Finance Cor- have the authority to do follow-up feasibil- poration and the Defense Production Act ity studies. Of 11 projects completed in as sources of funding. Since then, however, 1983 and 5 continuing on through 1984, lending (for mining equipment exports) has none involved first-tier strategic materials. been limited and has not focused on strate- According to GAO, by 1982 the Fund had gic minerals. The Bank has no control over not yet demonstrated its capabilities con- the mix of incoming applications it proc- vincingly, having had financial and initial esses. Weak markets and inability to com- problems in convincing governments to use pete effectively with foreign counterparts its services, and in obtaining contributions have resulted in only a few mineral projects. to set up the fund. International insurance plans to safeguard foreign investment have been proposed but Multilateral Approaches: never implemented, due to lack of agree- • Development Banks (e.g., the World Bank, ment on how to arbitrate disputes, negoti- Asian Development Bank, and Inter-Ameri- ate claims, finance the plans, or distribute can Development Bank) tend to devote voting rights. Recent proposals and spon- small shares of their overall funding to sors include: International Investment mineral projects and have no mechanism Insurance Agency (1966), World Bank; In- to target “U. S.” strategic materials when ternational Resources Bank (1975), U.S. the strategic materials of other involved na- Government; Inter-American Fund for En- tions are different. Priorities for addressing ergy and Minerals (1979), Inter-American basic needs of people limit mineral projects Development Bank. 360 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability and only four involved strategic materials. Mul- stricted by legislation to small businesses, tilateral programs that support exploration which disqualifies the majority of mining firms. activities, such as the U.N. Revolving Fund for Loan guarantees (up to $50 million) are avail- Natural Resources Exploration, have some po- able only for the production phase of mining tential to result in new discoveries of strategic projects. OPIC political risk insurance maxi- materials. mum ($125 million) may not be consistent with the real costs of most mineral investment activ- Several bilateral aid programs could be spe- ities today, although it does provide 20-year cifically targeted to encourage U.S. firms to in- coverage of the entire mineral exploitation vest in mining activities for strategic materials, process from exploration through production. Past efforts have been only marginally successful, as was brought out by the GAO report, The President’s materials plan does not ad- Among other things, the report found that ex- dress foreign aid or loans as an instrument of isting programs were not oriented toward pro- national minerals policy. When more limited viding solutions to what are, after all, mineral- means do not encourage the diversification of specific problems (the TDP studies, a notable sources, it may—given the perception of risk— exception, were only beginning at the time of be appropriate for the Federal Government to the GAO study) and that there was a lack of engage in direct financing support for exploi- coherent investment strategies to guide imple- tation of, or creation of demand for, these mentation actions over the long term. diversified sources. Stockpile needs and other One of the often stated impediments to min- Federal Government purchases, for example, ing firm investment abroad is the fear of polit- could be directed at creating demand for un- ical instability, A mining firm will launch a exploited strategic materials deposits. Loans project only if it believes that the project will and loan guarantees could assist countries both yield an adequate after-tax return on equity directly and indirectly in exploiting mineral re- over a specified time period. Political risk in- sources. For instance, prospective mining surance can reduce the political component of projects are often located inland, without ade- economic decisionmaking. The Overseas Pri- quate in-place transportation and energy infra- vate Investment Corporation (OPIC), estab- structure. Developmental aid for such support- lished by Congress in 1969, provides such in- ing projects could overcome economic surance as well as financing (loans and loan obstacles to mine development, provide invest- guarantees) to U.S. firms investing in development opportunities for U.S. firms, and, at the ing countries. Its involvement in mineral proj- same time, stimulate the overall economic ects, however, has been limited due to the growth of a developing nation. weakness of markets and, in the area of natu- In using both multilateral and bilateral mech- ral resources, it concentrates on energy proj- anisms, a clear distinction must be made be- ects. OPIC, like the Export-Import Bank (see tween the needs of the domestic mining indus- box 8-A), assists rather than subsidizes foreign try and those of U.S. firms involved in the projects. Thus, it can improve the competitive international mining industry, Policies devel- posture of U.S. firms but not the markets oped for one may be viewed as detrimental by wherein firms must operate. the other. The domestic mining industry today GAO cited policy and procedural restraints faces increasing competitive pressure from for- on OPIC’s activities as limiting factors on the eign mining that is supported by governments number and type of mineral projects it sup- that are more concerned with generating for- ports. As a public corporation, OPIC must as- eign exchange or jobs than with profits. Many sure that, overall, its investments generate a of these ventures may be supported either positive return. To do so, its investments are directly or indirectly by public sector interna- broadly based in terms of industries and coun- tional development banks. The domestic industries served. Loans granted by OPIC are re- try, which is guided by the principles of the free Ch. 8—Policy Alternatives for Strategic Materials ● 361 — —

market, says it cannot continue to compete in ● higher capital investment required of do- global markets under these newly emerging mestic producers in order to meet strin- and unfamiliar rules of competition. Con- gent U.S. environmental and safety re- versely, U.S. firms involved in foreign mining quirements. projects can take advantage of them. Clearly, for The domestic ferroalloy industry has a num- commodities where domestic mining competes ber of strengths, including large, in-place ca- with foreign mining, a policy choice must be pacity for production of ferroalloys; adaptabil- made that serves both sectors or just one. For- ity of furnaces between various manganese, tunately, inherent in the nature of “strategic chromium, and silicon products (although con- materials” is the fact that little, if any, domes- version between products is, in some cases, tic mining occurs for these commodities at limited by design of electrical or pollution con- present. If policies are specifically targeted, trol systems) and proximity to markets for fer- they would have less chance of being detrimen- roalloy products that allows quick response to tal to the domestic mining industry and greater special orders for nonstandard products. likelihood of success in diversifying U.S. supply sources. One way to assure ferroalloy processing availability would be to encourage the construction of processing capacity along with Implications of Diversification of Supply chromium and manganese mines, but this for Ferroalloy Production method would provide excess worldwide capacity and be wasteful of capital investment. Diversification of ore suppliers offers only A second alternative is to maintain a ferroalloy a partial solution for decreasing the potential processing capability in the United States, one for interruption of supplies of chromium and designed to be flexible both in products (ferromanganese, Since the bulk of chromium and chromium, ferromanganese, silicon, and ferromanganese ore is processed into ferroalloys for silicon, and specialty products such as calcium use in the production of steel, stainless steel, silicon) and in production rates (with plants de- and superalloys, it is also necessary to ensure signed for rapid expansion of capacity). that ferroalloy production facilities will be available to process ore obtained from a vari- New technology may change the outlook for ety of suppliers. the domestic ferroalloy industry in two ways. First, process improvements, such as increased The domestic ferroalloy industry was once use of automated equipment and computer the major supplier of ferroalloys to the U.S. control, may increase labor productivity, re- steel industry, but this position has been eroded duce energy consumption, and raise the qual- by foreign suppliers such as South Africa, ity of products. These improvements, in turn, France, and Brazil. This decline can be at- would improve U.S. competitiveness, since tributed largely to nontechnical factors, par- high labor and energy costs are a contributor ticularly: to the high cost of domestic production, and ● policies by foreign governments and inter- the quality of products for specialty steels and national organizations that provide finan- superalloy can protect and strengthen the U.S. cial incentives that encourage development position in these markets. The second major and operation of ferroalloy production in technical change facing the industry is the developing countries, primarily in con- adoption of plasma arc and high-voltage elec- junction with operating mines; tric furnaces. These advanced furnaces, which ● higher cost for U.S. labor in comparison are in the latter stages of development and the to labor costs in other producing countries; first stages of commercial use, may offer lower ● current exchange rates that, due to the operating costs and improved energy efficiency strong U.S. dollar, favor the use of im- over the submerged arc furnaces now in use. ported products over domestic production; However, they must be built to replace fur- and naces now in use, which will require the in- 362 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

dustry to make major capital investments. labor productivity and reduce energy and ma- These new furnaces are applicable both to do- terial consumption. Second, financial incen- mestic and to foreign production, so it is pos- tives, such as increased depreciation, tax sible that the domestic industry could be left credits, or low-interest government loans could behind its foreign competition if it is slow to be used to encourage the adoption of new ferro- adopt the new processes. alloy furnaces. Third, the government could use its influence in international lending orga- Since the immediate problems of the ferro- nizations to encourage the use of development alloy industry arise from political and eco- loans for projects other than ferroalloy facil- nomic factors rather than technical ones, the ities. Fourth, additional support, either as loans principal response of the government (if it is or grants, could be provided to the ferroalloy to respond) is likely to be political, In the longer industry to include in plant designs the po- term, however, there are more options (table tential to increase capacity or shift between 8-7, issue 4). First, the Bureau of Mines can products rapidly when supplies of imported work with industry to develop process im- ferroalloys are unavailable and ores must be provements, particularly in the area of auto- processed for domestic industries. mation and computer control, that increase

Substitution and Advanced Materials

In discussing substitution, it is useful to able to designers. However, institutional and differentiate between two broad classes of economic barriers impede acceptance of these alternative materials: direct substitutes, i.e., materials so that many will not be fully devel- materials that, while not necessarily preferred, oped. Substitutes used in highly demanding ap- could replace materials now in use; and ad- plications need to undergo extensive testing vanced materials, which may displace cur- and qualification before they can be used. In- rently used materials in time because the new dustry has little incentive to undertake this test- material offers a clear advantage in perform- ing unless the substitute offers a clear advan- ance, cost, or other benefit. In contrast to di- tage over currently used materials. rect substitutes, which may require only mi- nor design changes for use, advanced materials Besides direct substitutes for materials now often require redesign of products for optimal used, the Federal Government also plays a pri- use. mary role in sponsoring research on advanced materials, such as advanced ceramics and com- Direct substitutes are immediately available posites, and rapidly solidified metals. These for many applications that now use first-tier materials have long-term promise to change strategic materials. However, this is not the current requirements for strategic materials— case for some applications that are most criti- although to what extent is difficult to predict cal to the national defense and the U.S. econ- due to the need for redesign of product com- omy. As discussed in chapter 7, the Federal ponents. In some applications, net savings in Government sponsors considerable R&D aimed strategic materials may occur, while in other at finding direct substitutes for strategic ma- applications, product redesign could lead to in- terials, Much of the research has focused on creased use of strategic materials. development of lower chromium alloys as potential replacements for stainless steels of high- Many barriers must be overcome before use chromium content, and on alternative jet en- of these advanced materials becomes wide- gine superalloy which contain reduced amounts spread. Some barriers are technical, arising of cobalt or other strategic materials. This re- from the materials themselves or from the need search adds to the choices of materials avail- to improve current processing techniques so Ch. 8—Policy Alternatives for Strategic Materials Ž 363 that reliability is increased. Others are institu- Emphasis on substitution research among tional and economic. Some of these materials Federal agencies has accelerated since the mid- are much more expensive than currently used 1970s. Several Federal agencies, including va- materials, although costs may go down in time rious defense agencies, NASA, the Bureau of as processing problems are overcome. From Mines, and the DOE national laboratories un- the institutional side, widespread use of these dertake or sponsor strategic materials substi- materials may have to await establishment of tution research. Despite recent budget cut- standards and specifications for their use, as backs, Federal funds available for substitution well as greater emphasis on these materials in research appear to be quite healthy, with some engineering curricula. gains and losses among different Federal agencies. The Bureau of Mines substitution re- An emerging import vulnerability issue con- search effort has increased recently, while cerns adequacy of domestic processing and NASA’s Conservation of Strategic Aerospace manufacturing capabilities for advanced ma- Materials (COSAM) program has been cut terials. Most advanced materials are made somewhat. The COSAM program has resulted from raw materials which are plentiful in this in some superalloys with reduced cobalt con- country. However, the manufacturing capabil- tent that have the potential to directly replace ities (including technology and technical know- existing superalloy. These materials have not how) to produce qualified materials suitable for received extensive development beyond the the most demanding applications is distributed laboratory stage. A more fundamental purpose among several nations. Most advanced mate- of the COSAM program was to sponsor basic rials are in limited production status at this research that would shed light on the function time. As they become more frequently used, the that strategic materials play in superalloys. extent to which the United States should at- (Table 8-5 shows total U.S. expenditures for tempt to become self-sufficient in all stages of production of these materials is likely to be in- substitution on specific strategic materials for 30 fiscal year 1980, the last year in which govern- creasingly debated. mentwide data is available.) Table 8-8 shows selected policy alternatives Federal sponsorship of substitution research with respect to substitution and advanced is generally conceded to be essential if research materials. Although some policy issues asso- programs are to be undertaken on a sustained ciated with direct substitutes and advanced basis to find direct substitutes for strategic materials are held in common, there is enough materials. However, this research alone will divergence to merit separate discussion, as is not do much to reduce overall vulnerability done below. unless promising substitutes are developed to the point that they can be used by industry. The Direct Substitution Options time lag between initial laboratory develop- The Federal Government is the primary ment of an alternative material and the stage sponsor of R&D on direct substitutes for strain which it is ready to be used is often pro- tegic materials. Except in times of a supply tracted; many expensive and time-consuming shortage, industry has little incentive to con- intermediary steps must be surmounted before duct such activities unless the substitutes af- the material can be considered “on the shelf.” ford a clear benefit of cost or performance. The extent to which the Federal Government needs to be involved in narrowing this gap depends on the relative weight that is given to 3oFOr ~ discussion of initial self-sufficiency issues associated with the advanced composites industry, see Stanley L. Chamon, substitution in an overall strategy to reduce im- Industrial Base and Qualification of Composite Materials and port vulnerability. Structures (An Executive Overview) (Arlington, VA: Institute for Defense Analyses, 1984). Concern about U.S. reliance on for- Actions the Federal Government could take, eign sources and a sole domestic supplier for polyacrylonitrile besides its continuing important role as the pri- (PAN), used in production of some carbon composites, was one issue discussed in the legislative debate about reauthorization mary sponsor of research on substitutes, are of the Defense Production Act in 1984. identified in table 8-8 and discussed below. 364 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

Table 8-8.—Policy Alternatives for Substitution and Advanced Materials

Arguments for/against Problem/issue Option Positive Negative Direct substitution: 1. Information about available Sponsor a substitution infor- Would enhance U.S. substitution Information could become substitutes which would entail mation program to readiness—especially in the obsolete quickly; industrial less use of strategic materials disseminate information to case of chromium, for which users may not have as great may be difficult for small firms to industry, giving private sec- major opportunities to con- a problem in obtaining such obtain, hence delaying their abili- tor (testing societies, trade serve chromium in nonessen- information as is sometimes ty to respond to a supply disrup- associations, universities, tial application exists; would contended (i.e., industry tion and possibly impeding and industry) key roles in provide “continuing visibility” would have a great incentive initiative to ease import depen- designing and implementing for strategic material con- to find this information in the dency in advance of supply the program so that it is of cerns by setting up an institu- event of a supply difficulty). difficulties. maximum utility to end tional program to disseminate users. Option appears most information. promising as a means to reduce chromium overspecification in stainless steel. 2. Work on promising laboratory Sponsor a joint government- Could result in long-term reduc- Long-term nature of commit- substitutes that could reduce industry effort to develop tion in import vulnerability if ment, plus the expense of strategic material requirements is selected promising substi- substitutes were successfully developing particular alloy often ended at an early stage tutes to the point where they developed so that they could substitutes may mean that because of lack of industry incen- can be commercially used, be used by industry; Federal other options (e.g., diversifica- tives to develop these materials focusing on lower chromium sponsorship of applied tion of supplies and recycl- on their own, and because Federal alloys that could reduce research to develop direct ing) would be more useful. agency research funds may not chromium requirements for substitutes may not be jus- Government has limited ex- be provided for the long period of stainless steel. tified unless more substitutes perience with alloy develop- time needed to develop substi- are developed to the point ment and should leave tutes fully for commercial use. where they could be commer- development to industry cially used. alone. Advanced materials: 3. Problems in coordinating ad- Exercise oversight functions Would help the administration Oversight process, if taken vanced materials R&D at the on the Administration’s establish goals for Federal to an extreme, could lead to a executive branch level have long Federal program plan for activities with respect to disproportionate expenditure been apparent. The new National advanced materials R&D, to advanced materials; would of EOP staff resources on Federal program for advanced establish early and contin- give greater visibility to meeting congressional infor- materials R&D, established by the uing guidance to the advanced materials in the mation demands, which National Critical Materials Act of National Critical Materials executive branch, Congress, would be contrary to the 1984 (Public Law 98-373) is intend- Council and other imple- and the country as a whole. intent of Public Law 98-373 as ed to overcome this difficulty. The menting agencies about pro- expressed in its legislative flexibility given to the executive gram direction, goals, and history. branch in formulating this pro- specific initiatives. gram, could lead to innovative approaches, but a danger also exists that congressional intent will be misconstrued. 4. Advanced materials use may be Provide startup education and May help U.S. maintain Industries that stand to impeded by lack of qualified curriculum development competitiveness of its ad- benefit from such educational engineers, designers, and grants to U.S. universities to vanced material industries activities should assume material scientists trained in the expand faculty and to through research and training primary responsibility for use of these materials. stimulate research and of personnel needed to meeting their technology and graduate/undergraduate pro- establish domestic personnel needs through con- grams in advanced material capabilities. tributors to educational studies and in design with institutions. these materials. 5. Widespread adoption of advanced Sponsor initial activities in May encourage more wide- Government should not attempt materials may require develop- conjunction with testing spread use of advanced to “force” premature uniform- ment of more uniform testing societies, industry, and materials by providing greater ity on a developing tech- methods, material specifications, academia and relevant certainty to material pro- nology. Evolution of needed and procedures for certification Federal agencies to develop ducers and consumers about information systems can best and qualification than currently guidelines and data require- conditions in which they can be accomplished incremen- exists, as well as an improved ments for testing methods, be appropriately used. tally by users and suppliers and updated data base to specifications, procedures, as the need arises. facilitate use of advanced and design with advanced materials. materials. — SOURCE: Off Ice of Technology Assessment. Ch. 8—Policy Alternatives for Strategic Materials ● 365

These actions are of two kinds: greater govern- these have been conducted on an ad hoc basis ment involvement in developing the informa- without a sustained focus. tion needed to facilitate industry use of new Information programs of varying scope and materials; and greater Federal support for the complexity have been proposed. At the most post-laboratory development of direct sub- basic level, an ongoing program of confer- stitutes. ences, seminars, and information dissemination has generally been seen by the materials Providing Substitution Information to Industry community as a relatively inexpensive and ef- Many on-the-shelf technologies and materials fective way to heighten industry awareness of could lower strategic materials consumption research developments relevant to strategic in the United States, and potential substitutes materials substitution and conservation oppor- are at various stages of development. These tunities. Many Federal agencies and private alternative materials and technologies are well organizations have contributed to such pro- known to defense industries, automakers, and grams in the past, but a continuing program other large or technologically advanced indus- of this sort does not exist. tries. However, many small or technically un- Others see a need for a national information sophisticated firms ordinarily would not have repository for substitution studies, including easy access to information about specific ma- studies on alternative materials, analyses of terials, technologies, and applications in which alternative processing techniques, substitution substitution could lessen strategic materials case histories, and directories of experts on use. Difficulties in obtaining information about particular technologies or material substitutes. alternative materials might lengthen their sub- Much of this information may be available stitution response time in a supply disruption— through individual agencies or through the Na- a critical concern, especially for firms that are tional Technical Information Service (NTIS), not likely to receive an allocation preference which has been given augmented responsibili- in the event of a supply disruption of major ties by the Reagan Administration to transfer proportions, information about Federal technology develop- The need for a more effective mechanism for ment to the private sector. But the demands collecting and transferring information about placed on NTIS may be too diffuse to address strategic materials substitutes to industry and effectively the particular issue of strategic end users has long been recognized by the materials substitution. materials community (table 8-8, issue 1). Sev- At a more ambitious level, various organiza- eral major conferences on materials, as well tions and individuals have proposed establish- as various testing societies and industry or- ment of a “substitution information stockpile” ganizations, have recommended that a sub- to provide engineers, designers, and procure- stitution information program of one sort or ment officials with highly technical informa- another be an essential component of strate- tion needed to make decisions about available 31 gic materials policy. Some steps have been substitutes. As generally proposed, this “infor- taken by government agencies, trade organi- mation stockpile” would identify, systematize, zations, and professional organizations to im- and compile detailed information about the prove substitution information availability, but properties and potential applications for currently available and qualified alternative materials. Often, systematized information about slrI’he i m [)() rta n(; e of suhst itutio n information is illustrated i n recommendations made at a workshop on (conservation and sub- alternative processing and fabrication technol- stitution for critical materials held in 1981 at Vanderhi]t [’ ni\rer- ogies that could conserve strategic materials sity under sponsorship hj’ the Departments of Commerce and is seen as an essential component of the infor- the Interior. of 27 recommendations, 10 invo]ved development, compilation, and dissemination of information related to sub- mation stockpile. The primary purpose of such stitution, conservation, and d isplacemerlt of (:ritical metals, a stockpile would be to reduce response time 366 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability in a supply disruption. However, it is possible vey by the Metal Properties Council, which is that more firms would adopt their own con- an active supporter of the substitution bank tingency strategies for reducing their depend- concept. (This latter effort has been supported ency on imported materials if they were aware in part by NBS.) In this regard, it should be of available substitution opportunities. noted that a nonprofit entity, called the Na- tional Materials Property Data Network, Inc., Even though often proposed, specific steps has recently been established to explore ways toward development of an information stock- for providing computerized data on engineer- pile have been limited. Part of the reason for 32 ing materials. Additional work to define the this may be that developing a proper format feasibility and parameters of an information for the information—a technical handbook or stockpile would be needed. computerized data bank that could be available to industry—could be quite difficult. Safe- Development of a substitution information guards, for example, would have to be built into program would require extensive interaction the system to assure that the information, how- between government and the private sector, in- ever presented, clearly delineates those appli- cluding participation of testing societies, trade cations in which qualification is required from associations, professional societies, and indus- those in which it is not, Another reason may try. This need for extensive private sector be a concern that a handbook or data bank involvement in development and use of the in- could quickly become obsolete, presenting stale formation program may mean that the govern- information of little value. Hence, revision and ment’s key role would be sponsorship—not ac- updating of the information stockpile would be tual conduct—of the program. For example, the essential. Finally, testing societies and trade government could provide funds to a testing associations have limited resources available society, a university, or other nonprofit orga- for such purposes, while the Federal Govern- nization, to establish a nonprofit center with ment has focused most of its substitution ef- a specific mission and charter to develop in- fort on research. formation about substitute materials and new technologies that would help conserve strate- Although some components of an informa- gic materials. Participation of key Federal tion program—conferences and library repos- agencies, such as national laboratories, NASA, itory, for example—have broad relevance to NBS, the Bureau of Mines, and the Department strategic materials, the substitution bank con- of Defense could be structured into the center’s cept would probably be of greatest practical use charter. for chromium—especially as used in stainless steel. Designers frequently overspecify (use higher chromium content stainless steels than Developing Substitute Alloys may be needed) in many noncritical applica- As a general proposition, the Federal Gov- tions. Stainless steel is used in a wide variety ernment’s role in developing substitute mate- of applications throughout the economy; an rials often ends at an early stage of laboratory estimated 60 percent of this demand is for ap- research. Research results may be published, plications in which adequate substitutes are but it is usually left to private industry to de- available, or in which some substitutes maybe cide whether additional development steps developed after a period of R&D. Ready access should be taken. Thus, many strategic material to information about these substitutes could substitutes are not placed on the shelf by fed- help the consumer of chromium for nonessen- erally sponsored research, nor are they likely tial uses to respond to a supply disruption and to be fully developed by industry unless the ease problems the government might have in allocating available chromium to essential uses. Ozsee National Materials Advisory Board, Materials Proper- Initial work on chromium substitution op- ties Data Management Approaches to a Critical National Need (Washington, DC: National Academy Press, 1983), NMAB–405, tions includes a major report by the National for a discussion of the need for upgrading U.S. materials prop- Materials Advisory Board and an industry sur- erties data bases. Ch. 8—Policy Alternatives for Strategic Materials . 367 — new material is seen as providing significant velopment activities of substitute materials on cost or performance benefits compared to cur- a cooperative basis with industry. Moreover, rently used materials. the Federal Government has sometimes sponsored new materials for qualification by test- Substitute materials used in critical applica- ing societies, Oak Ridge National Laboratory tions, such as in powerplants and chemical is now sponsoring a 9 percent chromium steel plant processing, must be extensively tested af- 33 for use in powerplants, for example, and the ter their initial development in the laboratory, Department of Defense has played a key role Depending on the application, it can take 5 to in the commercialization of many materials 10 years and several million dollars to develop considered essential for defense purposes. and qualify new materials or processes to the point that they can be used by industry, Obviously, because many substitutes are potential candidates for augmented development Many—perhaps most—of the direct substi- activities, considerable care would be needed tutes that have been developed with Federal in selecting the materials. Selection of any funds would be more expensive (at current materials for further development work would prices) than the materials they would replace. depend on many considerations, including A few are potentially cost competitive with cur- their technical prospects, degree of industry in- rently used materials and thus might be used terest, and potential contribution to reducing by industry if the qualification hurdle were import vulnerability relative to other strategies overcome. (e.g., stockpiling or recycling). Given this situation, the question arises as to For example, as discussed in detail in chap- what steps, if any, could be taken by the Fed- ter 7, several superalloy with reduced cobalt eral Government to bring potential substitutes content, intended as direct replacements for closer to commercial use? One alternative superalloys now used in jet engines, are now would be for government to support a cooper- under development, These will not be available ative effort with the private sector to select, for use unless they undergo several years of ad- fully test, and qualify (where necessary) a few ditional testing. It has sometimes been pro- materials with significant potential to reduce posed that steps be taken to prequalify such critical material needs (table 8-8, issue 2). Most low-cobalt substitutes (presumably by govern- of this effort would probably involve contracts 34 ment) so that they would be available for use. with industry, testing societies, and universi- Because of rapid changes in materials used in ties to carry out key roles, Once these materials jet engines, these substitutes could be partially were fully developed, they would be available obsolete by the time they are fully developed. for use by industry or could serve as a kind of Therefore, other options—ranging from stock- standby “national emergency alloy system, ” analogous to the national emergency steel sys- —. tem developed in World War II. 33This stee] ~~as not del,e]oped to reduce import ~wlnerability, but as part of the breeder reactor program. It is intended to Such a step would not necessarily entail a replace both a 2?4 percent chromium steel and a 18 percent chromium steel now used in powerplants, so that the design of a par- major new Federal program: it could be accom- ticular powerplant will determine whether more or less chro- plished through selective targeting of strategic mium is used. It has been speculated that this steel may materials development activities to focus on eventually replace 18 percent chromium stainless steels in some other applications, although, to date, this has not occurred. Fed- those materials considered to be most critical eral expenditures in data development and other activities asso- to U.S. substitution preparedness. Both the De- ciated with qualification of the material are estimated to be about fense Production Act and the Stockpile Revi- $5 million since 1978. An estimated $2 million in private services have been donated to the effort. The 9 percent chromium sion Act authorize the President to develop alloy is expected to be used commercially in some applications substitutes for strategic and critical materials. in 1984. Federal agencies, such as the Department of aqsee, for example, the discussion in U.S. Department of Commerce, Conservation and Substitution Technolog.v for Crit- Defense, Bureau of Mines, and NASA, from ical Materials: Proceedings of Public Workshops, June 15-17, time to time sponsor test heats and other de- 1981, p. RI-1. 368 • Strategic Materials: Technologies to Reduce U.S. Import Vulnerability — piling to recycling to aggressive pursuit of ad- At the same time, it maybe difficult to justify vanced materials—could be more effective in Federal applied research on direct substitutes reducing vulnerability in this application. unless the end result is to reduce overall U.S. import vulnerability. This may not occur un- Fewer options are available for reducing less ways are found to develop promising sub- chromium import vulnerability for stainless stitutes to the point to which they can be used steel, however, and despite appreciable re- by industry. search efforts, an estimated 40 percent of the chromium used in stainless steel is considered irreplaceable. At present, several low-chro- The Potential of Advanced Materials mium alloys that could substitute for higher chromium stainless steels in some applications Strategic materials displacement is not a pri- are in the early stages of laboratory develop- mary reason for the current interest in ad- ment. (Table 7-4 in ch. 7 shows selected exam- vanced ceramics, various composite materials, ples.) Current substitution research is address- rapidly solidified alloys, and other advanced ing applications in the midrange of difficulty materials that are the subject of intensive R&D (technically feasible substitutes could be devel- efforts by government and industry. Rather, oped after a period of intensive R&D). Full de- these materials promise special performance velopment of substitutes for this midrange of benefits compared to currently used materials. applications could ease allocation decisions in However, advanced materials usually contain a supply disruption so that available chromium little or no cobalt, chromium, manganese, or could be used in those applications for which PGMs, and therefore, over the long term they no alternatives are likely to be available, have promise to displace or reduce some strategic material requirements. Often, reduced Targeting a few of the most promising low- strategic material requirements will be an in- chromium substitutes for augmented develop- direct benefit of using these materials. Since ment would require in-depth analysis of their redesign of component systems may be neces- current status, needed development steps and sary for optimal use of advanced materials, associated costs, and applications in which overall savings in strategic materials are diffi- they could reduce critical and strategic mate- cult to predict. rial needs. Substantial input from industry, testing societies, and academic institutions would Advanced materials—unlike direct substi- be needed both to identify the most promising tutes for currently used materials—have the po- materials, and to undertake most of the indi- tential to provide the basis for important new cated development steps, Given the costs that U.S. industries, while at the same time reduc- could be entailed—the Oak Ridge qualification ing requirements for strategic materials in process discussed above cost an average of $1 some applications. Advanced ceramics may be- million per year over a 5-year period—such a come a multibillion dollar business, with po- program would have to be conducted at a small tential markets projected to reach over $20 bil- scale, with no more than two or three materials lion by the year 2000, However, at present, the undergoing augmented development at any competitive posture of the United States in ad- given time. vanced ceramics lags behind Japan in the area of electronic components, and the United Ultimately, whether it would be desirable to States is in some danger of losing the race for establish a cooperative government and indus- market supremacy in engineering ceramics, try program of this sort depends on the prom- Other countries, including Great Britain and inence that is assigned to substitution in over- some Western European countries, are also vy- all Federal strategies for reducing import ing for expanding world markets. dependency. Development of direct substitutes is a medium-term (5 to 15 years) response for A 1984 Commerce Department study of the reducing import dependency, so that actions advanced ceramics industry indicated that nei- taken now will not have an immediate effect. ther the United States nor Japan was in the Ch. 8—Policy Alternatives for Strategic Materials ● 369 clear lead with regard to advanced ceramic Government Support of Research and Development engineering materials. However, the Depart- ment predicted that the United States could fall It is generally thought that the United States behind Japan if current trends continue. Japa- leads the world in basic research with regard nese success was noted in the following areas: to advanced materials. Funding of advanced materials R&D activities in the United States ● domination of electronic components appears to be generally healthy. However, con- made of advanced ceramics; tinuation of a strong basic research effort will ● domination of supplies of advanced ce- probably be needed for many years. Manufac- ramic powders; turing processes and fabrication technologies ● greater and more organized R&D efforts; are areas in which more emphasis in R&D is ● superior performance/cost characteristics generally considered necessary. The high costs of Japanese demonstration products; of fabricating composites, for example, arises ● reputation for accepting short-term losses in part from labor-intensive and time-consum- and investing in long-term product-market ing processes. In advanced ceramics, key needs development; and are to improve powder production and to de- ● record in developing and implementing velop reliable processing technologies to pro- superior commercial manufacturing proc- 35 duce flaw-free ceramics economically. Im- esses and technologies. proved nondestructive evaluation techniques The potential importance of an internation- are critically needed in both composite and ce- ally competitive advanced materials industry ramic applications. to the U.S. economy, and the stance of the Fed- As with other areas of material research, several Government in encouraging such indus- eral Federal agencies, including NASA, NBS, trial activities, is likely to be an increasingly the Bureau of Mines, various Defense Depart- visible issue in the years to come. In general, ment agencies, and the DOE national labora- the alternative roles that the government could tories, undertake or sponsor advanced ma- play in fostering a strong domestic ceramics terials research. Much of the government industry are likely to be identified and debated research is undertaken on a contractual basis within the broader context of the overall pos- with industry. Information sharing among re- ture of government-industry relations, not in searchers, including various government agen- the context of strategic material issues. Regard- cies and those firms directly involved in R&D, less of the extent of government involvement is generally considered by researchers to be ef- in encouraging U.S. competitiveness in this fective. However, coordination of policy with area, a number of technical and institutional respect to advanced materials, particularly at problems will have to be overcome before these high levels of the executive branch and with materials come into general use. Therefore, the Congress, has been fragmented. discussion here is focused on issues of Federal involvement in research, development, infor- As discussed previously, the National Criti- mation transfer, and education, rather than on cal Materials Act of 1984 calls for the estab- the full spectrum of alternative policies to en- lishment of a “national Federal program for ad- courage advancement of this sector of the econ- vanced materials research and development, ” omy.36 giving key responsibility to the National Criti- cal Materials Council in the Executive Office

35 ~]. S. I)el)a rt ment of Commerce, A Competitive A Ssessmen t of the President for implementing the program, OF the Lr.,$. Ad~’anced Ceramics industry [Springfield, VA: Na- tiona] Technical Information Service, 1984), p. 64. —-———— a6Readers who are interested in alternative Federal roles in involving transfer of new technologies to the private sector are strengthening the international competitiveness of the U.S. ad- discussed in 4’Development and Diffusion of Commercial Tech- vanced ceramics industry are referred to the Commerce Depart- nologies: Should the Federal Government Redefine Its Role?” ment’s assessment identified in the previous footnote. The (Office of Technology Assessment Staff Memorandum, Indus- broader issues associated with alternative government actions try, Technology and Employment Program, March 1984.) 370 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

The Council, among other things, is directed engineers with materials that are most prev- to prepare and annually review a Federal pro- alently used today, such as metals. Progress in gram plan for advanced materials R&D. The advanced materials fields—the materials which plan is to designate key responsibilities for car- will come into greater prominence in the rying out research, and is to provide coordi- future—may hinge in part on the success of nation with the Office of Management and engineering curricula to make engineers and Budget, the Office of Science and Technology designers familiar with processing technol- Policy, and other appropriate Federal offices ogies, and product design associated with ad- and agencies, vanced materials, Although many U.S. universities are important research centers in one or The Council is also to review annually the more advanced material areas, U.S. universi- materials research, development, and technol- ties are turning out comparatively few people ogy budget requests of all Federal agencies to in some advanced materials fields. In the area ensure close coordination of the goals and of ceramics, for example, only 36 identifiable directions of such programs with policies de- doctorates were estimated to have been granted termined by the council, The Office of Man- in the 1982-83 school year by U.S. universities. agement and Budget, upon reviewing individual agency budget requests, is to consider them The Federal Government can assist U.S. uni- as an “integrated, coherent, multiagency re- versities to increase their emphasis on ad- quest” to be reviewed by the Council and OMB vanced materials if it so desires, Various assist- for adherence to the national Federal materials ance programs administered by the National program plan for each fiscal year. Science Foundation, and academic research and curriculum development activities sup- The process established by the 1984 Act can ported by other Federal agencies could be used be expected to give far greater visibility to re- to channel increased support for advanced search needs associated with advanced mate- materials activities in universities, rials than has existed heretofor. However, in keeping with the process orientation of most One option would be to provide initial educa- congressional laws pertaining to materials tional development grants to several universi- R&D, the law gives the Council considerable ties for a specified time period (e.g., 5 years), discretion in putting together components of after which time the university would assume the plan. For example, while the law makes it full responsibility for the program. Because clear that the program is to include R&D from these programs could have clear benefits to pri- “basic phenomena” through processing and vate industry, industry might contribute to manufacturing, it does not define the term “ad- such an effort. The startup funds could be used vanced materials, ” thus giving the Council flex- to attract new faculty, support research, assist ibility in determining which classes of mate- in acquisition of needed instruments, or par- rials fall under the program plan, The Council ticipate in other activities that would be needed will also have discretion in determining over- to establish a sound curriculum and research all goals and objectives of such a plan. As a re- program, Industry-university cooperation and sult, congressional oversight and guidance may coordination could be encouraged through be needed to determine whether the Council’s advisory committees comprised of industry program accurately reflects Congress’ intent and government representatives and through in establishing the program (table 8-8, issue 3). internships and collaborative research projects,

Education Needs and Advanced Materials Transfer and Diffusion of Advanced Materials Technologies Considerable concern exists about the adequacy of current engineering curricula and Advanced materials are currently in an early training of engineers and designers in the use stage of commercial application. A key issue of advanced materials, Most curricula in engi- in their ultimate acceptance and adoption by neering schools are designed to familiarize industry on a widespread basis will be the ex- Ch. 8—Policy Alternatives for Strategic Materials Ž 371 tent to which reliable engineering data (includ- Although testing societies, private industry, ing clearly defined procedures for testing and trade associations, generally determine materials), materials specifications and phys- material standards, the Federal Government ical property data, and standards can be devel- can play an important facilitating role if it oped in a form that is readily accessible to chooses, Several Federal agencies, including users. the Department of Defense, DOE, NBS, and NASA all have important programs related to As discussed in chapter 7, current U.S. prob- advanced materials, and have been integrally lems in maintaining an upgraded materials involved in maintaining materials data bases property data management system in general that could be of considerable relevance to are acute. In the case of many advanced ma- standard-setting activities. terials, including rapidly solidified metals, ceramics and some composites, absence of acces- A cooperative effort by government and in- sible information is a major constraint to their dustry to undertake initial work to develop widespread use, Data on advanced materials organizing concepts, define information needs, is held largely by the research community and and identify appropriate formats for needed by the few firms that have been integrally in- engineering data could be an important pre- volved in their early development or that have liminary step toward advanced material stand- proprietary data for specialized applications. ard-setting. Such a cooperative endeavor would A kind of catch-22 is involved in this situation: require extensive interactions between testing designers will not use new materials until they societies, industry, academia, and government, have data on their behavior in engineering ap- with each contributing key inputs to the proc- plications, but until the materials are used by ess. One possible arrangement (table 8-8, issue designers, that data will not exist. 4) for facilitating such interaction would be for the Federal Government to partially sponsor The formal codes, reliability standards, speci- (with contributions by relevant industries) a fications, and other forms of information that nonprofit center associated with a testing so- would aid product design engineers select ciety, a university, or other nonprofit institu- materials are not generally available for ad- tion. A similar approach is being used to ex- vanced materials. Development of such infor- plore the feasibility of establishing a national mation will be a long-term process, and it may materials properties data network with primary be many years before general agreement is reference to metals. reached about the proper form of such information.

Conservation and Recycling of Strategic Materials

OTA’s analysis indicates that ongoing trends cause of increased use of scrap and improved in industry have led to more efficient use of manganese recovery rates. Near-net shaping materials in processing and manufacturing. processes used in the aerospace industry will These trends are expected to continue as firms also reduce cobalt raw material requirements upgrade facilities and adopt new manufactur- for superalloy production, although this will ing processes. also be accompanied by a reduction of home and prompt industrial scrap preferred for recy- In steelmaking, for example, manganese re- cling. The incentive to conserve PGMs is very quirements for each ton of steel produced are high, owing to their high cost; thus, improve- expected to be reduced from 36 to 25 pounds ments in catalyst design that would reduce by the year 2000. Somewhat greater savings (in PGM use can be expected to be adopted quickly. terms of imported manganese) are likely be- Some modest improvements in chromium uti- 372 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability lization can be expected, but the rapid phase- Economic barriers (arising from the added in of the argon-oxygen decarburization (AOD) cost of collecting, sorting, transporting, and reprocess in making stainless steel is now nearly processing obsolete scrap and waste) and incomplete, and no major breakthroughs appear stitutional impediments (e.g., difficulties in imminent. As a rule, material-conserving tech- organizing collection systems and the reluc- nologies will be adopted because of product tance of consumers to use recycled materials) quality and cost competitiveness reasons, not are the major constraints on recycling. because of concern about strategic materials. Appreciable advances in recycling technol- Important opportunities also exist to increase ogies have been made in recent decades, owing supplies of cobalt, chromium and PGMs through in part to Bureau of Mines’ R&D efforts, and recycling. In the case of PGMs, the chief op- industry initiatives. In general, few technical portunity for increased secondary production problems need to be overcome to increase re- is through recycling of automotive catalysts; cycling of PGMs, cobalt, and chromium. How- an emerging industry structure is developing ever, in some applications—especially super- to collect and process these catalysts. Oppor- alloys—advanced technologies may have to be tunities to extend cobalt supplies include im- developed before major advances can be made proved recycling of cobalt values from obsolete in current levels of recycling, Increasing com- superalloy scrap and recovery of cobalt from plexity in materials used in products in gen- spent catalysts used by the petroleum indus- eral also means that continuing R&D will be try. Although stainless steelmaker now derive needed to meet future recycling needs, one-fourth of their chromium needs from pur- OTA’s analysis of recycling issues focused chased scrap, losses from three areas—down- on several areas of possible congressional con- grading, failure to recover obsolete scrap, and cern: adequacy of information about current losses of chromium in steelmaking wastes— and prospective levels of recycling; the need are substantial. See table 6-6 in chapter 6 for for evaluation of the indirect effects of Federal a detailed listing of recycling opportunities. programs and policies on recycling in order to Increased recycling not only augments stra- identify possible changes that could facilitate tegic material supplies, but also has environ- recycling; and the possible need of a pilot plant mental benefits associated with reduced land- project to demonstrate advanced superalloy filling and disposal of wastes, Recycling also recycling technologies. These issues, and asso- offers energy conservation benefits, since scrap ciated options, are summarized in table 8-9 and already embodies initial energy requirements discussed below, needed to process raw ores into concentrated form, Energy savings from recycling aluminum Information Needs and Recycling scrap, compared to manufacturing the same product from virgin materials, can exceed 90 Recycling’s potential to reduce import depen- percent, and for copper, iron and steel, lead, dency can only be roughly estimated unless and zinc, savings of over 60 percent have been reliable information is available about both cur- noted. 37 Because the first-tier minerals covered rent levels of recycling nationwide and about by this report are produced and often partially quantities of unrecovered scrap and waste that processed abroad, net energy savings to the could potentially be recycled if economic or U.S. from increased recycling of these mate- technical conditions changed. Current statis- rials would only accrue as an alternative to in- tical series provide incomplete information creased domestic production, however. about annual levels of recycling because they focus on the purchased component of scrap supplies, and do not estimate potentially re- JTNationa] Association of Recycling Industries, Recycled Me- cyclable materials that are not recovered. In- tals in the 1980s (New York: National Association of Recycling creased emphasis on compilation of recycling Industries, 1982), p. 174. data and trend analysis seems needed if pol- Ch. 8—Policy Alternatives for Strategic Materials ● 373 icymakers are to have a realistic picture of the comprehensive materials flow model for super- prospective role that recycling could play in alloy scrap was prepared by the government. reducing U.S. dependency on imported mate- Efforts to update this model using 1980 data— rials (table 8-9, issue 1). but 1976 scrap ratios–do not fully reflect the important changes that have occurred in super- From time to time, agencies such as the Bu- alloy recycling since then. reau of Mines and the National Materials Advi- sory Board have produced relatively compre- Analysis of long-term trends in conservation hensive materials flow models for individual and recycling is also needed on a periodic ba- metals or applications. These models have ap- sis, especially since the two often influence preciably increased understanding of overall each other in complex ways, Adoption of near- recycling levels, but have been prepared infre- net shape technologies by aerospace manufac- quently, with little or no followup or consis- turers will reduce the amount of preferred tency in procedures used. The need for mate- scrap generated in the fabrication of superalloy rials flow information is especially apparent parts. This means that obsolete scrap and lower in the area of superalloy recycling—an area that quality manufacturing scrap will comprise an changes rapidly, affects use of several strate- increasing portion of the materials potentially gic materials, and is of obvious importance to available for recycling. Similarly, efforts such national security. Most current information as the Air Force retirement-for-cause program about the flow of superalloy scrap is based on to extend the life cycle of jet engine parts could conditions in 1976—the last year for which a reduce the amount of obsolete scrap available

Table 8-9.—Policy Alternatives for Recycling Strategic Materials

Arguments for/against Problem/issue Option Positive Negative 1. Annual statistical series do Supplement current data Better information about Could add to industry not provide an adequate pic- with in-depth “cradle-to- recycling is needed for paperwork requirements ture of current and prospec- grave” data and analy- realistic appraisal of tive recycling levels; detailed sis of Cr, Co, Mn, and recycling’s prospective information is out of data PGM or other materials role in reducing import and not prepared on a as appropriate on a dependency. regular schedule. regular schedule. 2. Adjustments in Federal pro- Call for an executive Could lead to eventual Federal Government should grams and policies could branch evaluation, with changes in Federal pro- not attempt to favor one encourage greater recycling recommendations to grams which would be mineral form over of strategic materials, but Congress, about ways helpful to recycling firms another; overemphasis on the necessary evaluation of to structure Federal pro- in increasing recycling recycling could inhibit these programs has not been grams related to taxa- levels. domestic mining activ- done by the Administration. tion, real property pro- ities related to strategic curement and disposal, materials. environmental regulations, etc., to encourage strategic materials recycling. 3. Advanced recycling Authorize one or more If technical merit of Option provides less technologies for superalloy pilot-plant projects to research processes is immediate supply secur- may not be developed by demonstrate technical demonstrated in pilot ity than domestic produc- private industry because of feasibility of reclaiming project, it may be possi- tion and depends on suc- low metal prices. individual elements ble to recycle most of the cessful outcome of pilot from superalloy scrap superalloy scrap that is project to determine com- or other advanced scrap now downgraded or lost. mercial feasibility; recovery processes. (An estimated 2.8 million government should not pounds of cobalt was be involved in commer- lost in superalloy scrap cialization of new alone in 1980.) technologies.

SOURCE. Off Ice of Technology Assessment 374 • Strategic Materials: Technologies to Reduce U.S. Import Vulnerability for recycling. These interrelationships are dis- as much as 7 million pounds of cobalt-nickel cussed in greater detail in chapter 6. aluminate slag has accumulated over the years. This material would not be economic to re- Superalloy applications are not the only area cover without major increases in cobalt prices, where current data are inadequate for identify- and some technical problems in recovery ing current and prospective recycling levels. would have to be overcome. In a supply dis- opportunities for recovering more chromium ruption of protracted length, however, it may from obsolete stainless steel products and steel- represent a recoverable resource. In addition, making wastes can only be roughly estimated a large quantity of strategic materials are since most of the available national data date present in mine tailings which maybe poten- from 1976 and 1974, respectively. Important tially reclaimable. Although information is improvements have occurred since then. Sim- ilarly, monitoring of PGM recycling from au- available about strategic material content of some of these tailings (e.g., cobalt tailings from tomotive catalysts and electronic scrap will lead zinc mining in Missouri), their national clearly have to be emphasized in the years to magnitude is not known accurately. come in order to develop accurate information about recycling trends in this industry. The importance of information can, of course, Analysis of industry trends and the revision be overstated. It would not be necessary, or even desirable, to attempt to inventory compre- of scrap material flows on an annual basis is hensively all low-grade sources of strategic probably not necessary or desirable, but it would be desirable on a periodic basis, perhaps materials, for example, to derive plausible estimates of the magnitude of such resources. Nor once every 4 or 5 years. The Bureau of Mines, which sponsored the superalloy analysis dis- are current information deficiencies so great as to prevent identification of applications and cussed above as well as a similar scrap flow materials in which there is potential for ma- model of chromium recycling in stainless steel, jor increases in current recycling levels. How- would be a logical agency to undertake this ever, an institutional mechanism for periodic analysis. Cost of preparing new material flow reexamination of recycling and conservation models would vary, but would probably be less than $100,000 per application addressed. The trends and opportunities would be highly useful in policy formulation. original appropriation for the two models mentioned above was provided to the Bureau of Mines under the Defense Production Act The Impacts of Federal Activities on Recycling through the Federal Emergency Management Act. Update of these models would cost about The Federal Government influences recycl- $50,000 per application. ing of strategic materials both directly and indirectly. Direct effects arise from its R&D At present, limited national level information activities aimed at improving recycling tech- is available about “hidden inventories” of stra- nologies. This research has had a demonstra- tegic materials that could potentially be re- ble effect in encouraging increased recycling cycled in the event of a supply disruption. of strategic materials; many currently used (Stockpile management estimates about recy- processes were initially developed with Fed- cling levels in a supply disruption are based eral support. on economic analysis, not estimation of materials.) Hidden inventories include scrap Indirect effects—some positive and some inventories that for one reason or another are negative—arise from a wide variety of Federal not reported to the Bureau of Mines and po- policies and programs that are not specifically tentially reclaimable mining tailings and indus- aimed at recycling. Such activities as taxation, trial waste materials. Such inventories can be regulation of transportation rate setting, envi- quite large. At one Gulf area petroleum cata- ronmental policy, and procurement and dis- lyst recycling operation, for example, perhaps posal of materials by Federal agencies can af- . - . . . .

Ch. 8—Policy Alternatives for Strategic Materials ● 375 feet material flows in the economy. Several molybdenum hydroprocessing catalysts, for ex- recent laws have attempted to remove inadver- ample, may contain trace amounts of lead and tent bias in Federal regulations that may favor arsenic that may make them potentially haz- virgin raw materials over recycled materials, ardous. Although spent catalysts are not a but the recycling industry continues to be con- listed hazardous waste, generators of spent cerned that Federal policies may discourage catalysts often treat them as such, and as po- recycling.38 tentially subject to Federal regulations which restrict storage of hazardous wastes on site to The National Materials and Minerals Policy, 90 days. As a result, within 90 days, genera- Research and Development Act called on the tors of spent catalysts must decide whether to president to: send the material for recycling or to landfill the . . . assess Federal policies which adversely or material at an approved site. In the late 1970s, positively affect all stages of the materials cy- recyclers of spent cobalt catalysts would often cle, from exploration to final product recycling pay generators $300 per ton to obtain this ma- and disposal including but not limited to, fi- terial in order to recycle molybdenum. In the nancial assistance and tax policies for recycled 1982-83 period, generators often needed to pay and virgin sources of materials and make rec- the freight to have the spent catalysts sent to ommendations for equalizing any existing imbalances, or removing any impediments, the single U.S. firm still recycling those cata- which may be created by the application of lysts for molybdenum values. As a result, land- Federal law and regulations to the market for filling is often a more attractive option, and materials . . 39 simply storing the material on site while waiting for metal values to increase is precluded. The President’s materials plan did not specif- An estimated 270,000 pounds of cobalt were ically address this issue. (The plan placed such not reclaimed from spent hydroprocessing analysis in the overall context of its regulatory catalysts in 1982. reform assessment, an approach that is not specific enough to suggest improvements for stra- The impediments to recycling cobalt cata- tegic materials recycling.) lysts are thus largely economic in nature, arising from the low value of metals at the present Such an evaluation and recommendation time, but Federal hazardous waste regulations process—especially if focused on strategic may inadvertently cause premature loss of co- materials—could help identify possible changes balt values. It would be inappropriate to change in Federal programs that could encourage Federal policy with respect to hazardous waste greater or more effective recycling of strategic simply to facilitate recovery of strategic mate- 8-9, materials (table issue 2). This cannot be rials in circumstances such as this. However, done with a narrow focus simply on strategic with appropriate safeguards, it may be possi- materials: overall objectives and missions of ble to develop alternatives to encourage recy- Federal programs must be taken into account, cling of strategic materials while safeguarding even if a particular program or policy may ad- concerns about public health and safety aris- versely affect recycling. ing from hazardous waste storage. Possible Nonetheless, there may be ways to encourage alternatives to encourage recycling of strate- recycling while meeting these broader objec- gic materials from some hazardous waste in- tives. One area meriting further examination clude intensifying the recycling R&D activities concerns possible connections between waste by the Bureau of Mines to assist industry in de- disposal policies and recycling. Spent cobalt- veloping effective reclamation technologies; possible use of guaranteed purchase agree- ss~”[)r a rji scussion of the (;o n cerns of the recycling 1 IId USt ry ments under the Defense production Act to about Federal policles, see ,NJational Association of Recycling defray the expense of reclamation when it is Industries, RecJrcled Lletal.s in flrc 1980s (New’ York: National Association of Reclcling Industrlcs, 1982), pp 167-177. currently not economic; longer term but tempo- a~[~uhli~ [,a\\, !36-479, 5(?(:. 4(8). rary storage of some hazardous wastes contain- 376 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability —

ing strategic materials in regional repositories At current cobalt prices, this would not be where they would be available for subsequent the case with regard to superalloy reclamation. recycling; and possible use of “waste end” tax- An Air Force working group established to as- ation, which could make landfilling less attrac- sess a feasibility study on a cobalt reclamation tive as a disposal option by taxing generators process for obsolete jet engine parts reached of wastes when they are landfilled. the conclusion that it would be cheaper for the government to sell these parts as scrap, given Increasing interest exists in strategic mate- current cobalt prices, (The working group did rial recycling opportunities associated with not identify costs associated with the various surplus Federal property—especially that of the alternatives.) This argument fails to take into Department of Defense. GAO is currently au- account the strategic benefits of having a do- diting Department of Defense scrap generation mestic capability to reclaim individual ele- levels and possible alternative means of dis- ments from scrap in the event of a supply posal of scrap at the request of the House emergency. Armed Services Committee. However, the GAO effort is focused principally on aluminum—not Besides evaluation of agency programs to de- on superalloy scrap. termine whether changes may be needed in Federal policies with respect to recycling, the Military aircraft contain large quantities of Federal Government can heighten visibility of strategic materials that are potentially recycl- recycling industry issues through special able at the end of their service life. Currently, studies. most jet engine parts are declared surplus and are sold as scrap at the end of their useful serv- The National Materials and Minerals Policy, ice life, Generally, obsolete superalloy scrap is Research and Development Act of 1980 estab- downgraded for its nickel and chromium con- lished a continuing assessment function in the tent, so that other metals (e.g., cobalt) are not Commerce Department to undertake case studies beneficially used. of specific material needs to ensure “an adequate and stable supply of materials to meet Alternatives to disposal of surplus scrap national security, economic well-being and in- could have strategic material conservation dustrial production needs. ” To date, studies benefits. The Department of Defense and the have been completed on the steel industry, and General Services Administration can promote the aerospace industry, and a study on the do- advancement of recycling technologies and mestic mining industry is in progress, Al- processes by contributing surplus scrap to though such studies may address recycling to demonstrate advanced recovery methods. some extent, special assessment of key com- A model and precedent for a government-run ponents of the recycling industry would aid in recycling program exists. For nearly a decade, understanding the role recycling could play in the Department of Defense has conducted a providing strategic and critical materials and precious metals recovery program (including in the identification of economic ‘and institu- platinum, palladium, and rhodium) from sur- tional barriers to increased recycling. plus, damaged, or outdated government property. The recycled materials are refined to a Developing New Recycling Technologies high level of purity and may then be used as government-furnished materials in defense Recycling of strategic materials often entails contracts and in certain other government con- highly sophisticated technologies and proc- tracts. Savings to the government from this pro- esses. The increasing complexity of materials gram have been very large because the costs used in end products, such as jet engines and of recovering and refining PGMs are cheaper automobiles, and the general trend toward than purchasing new material. more stringent material specifications, require Ch. 8—Policy Alternatives for Strategic Materials • 377 adjustments in segregating and processing facturing processes are reducing the amount scrap by recyclers. As a result, extensive R&D of home and prompt scrap available. activities are often needed to keep pace with Several commercially used processes can be, changes in end products. and to a limited extent have been, used to recy- Substantial technical advances have been cle obsolete superalloy scrap to provide mas- made in recycling technologies in recent years, ter melts suitable as raw materials for jet en- and many of these advances have been sup- gine superalloy. Alternative processes that ported by government research. Increasingly, reclaim individual elements from the scrap in as government funds for general recycling re- highly purified form have been demonstrated search have become more limited, available only in the laboratory. funds have been targeted on strategic mate- Experimental reclamation processes of this rials, including processes and technologies to sort have been developed under Bureau of effectively reclaim them from low quality Mines’ sponsorship, and independently by materials (e. g., obsolete scrap) that are not now some companies. Proof that they would work processed. in commercial-scale operations has not been Several Federal agencies, including the De- ascertained, and an additional 2 to 5 years of partment of Defense, NASA, and the Environ- work may be needed to reach definitive con- mental Protection Agency, have sponsored clusions. recycling R&D activities relevant to strategic One Bureau-sponsored experiment, undertaken materials. However, the Bureau of Mines is the in the late 1970s, demonstrated the technical primary Federal recycling research agency. Re- feasibility of separately reclaiming individual cent Bureau projects have emphasized, among elements from superalloy scrap, including other things, development of processes to en- cobalt, chromium, and nickel—an important hance recovery of cobalt, nickel, and chro- breakthrough if the technical merits of the mium from materials such as superalloys and process hold up outside of the laboratory. In- stainless or specialty steel scrap and wastes. dustry feasibility studies for a pilot plant and Funding of strategic materials recycling activ- small commercial facility showed promising ities has been maintained at a high level through profit potential at 1980 prices (cobalt was then reprogramming of funds from other areas. selling at $25 per pound), but when prices fell, Normally, industry itself assumes the key role so did interest in the project. (The price of co- in actually developing new technologies aris- balt that would allow this process to break even ing from Bureau research. Many currently is confidential information with the company used processes pertaining to recycling of steel- that developed the feasibility study.) Other Bu- making wastes, cemented carbides, and other reau of Mines’ processes, including one which materials were originally developed or spon- rapidly dissolves metals out of the superalloy sored by the Bureau of Mines. At least seven scrap, may also have the potential to advance companies, for example, are using a Bureau- superalloy recycling technologies. Some pri- patented process which permits effective re- vate firms, as discussed in chapter 6, have un- covery of cemented carbide scrap, with its co- dertaken laboratory research in the area of balt values. reclamation. One of these firms currently recovers cobalt from various scraps (including Current metal prices do not justify private superalloy grindings) for use in cemented car- investment in post-laboratory development of bides, and is considering possible applicabil- some experimental recycling technologies— ity of the process for recycling superalloy per especially those for superalloys—that promise se. to substantially improve recycling of strategic materials, Superalloy raw materials provided Although government’s role in commercializ- through recycling will increasingly depend on ing specific new technologies is usually lim- effective obsolete scrap recovery since manu- ited, overriding national objectives, such as na-

38-844 0 - 85 - 13 : QI, 3 378 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability tional security, may justify exceptions. Further ect facility plus $1 million to $2 million in oper- development of advanced superalloy recycling ating costs, need to be viewed in terms of the processes may well be such a case. One alter- potential benefits and increased supply secu- native would be for government (in consulta- rity that could accrue to the United States in tion with industry to select the most promising the event that such technologies are commer- candidate processes) to sponsor one or more cially viable. Commercial availability of such pilot plant projects to demonstrate advanced technologies could give U.S. firms the techni- reclamation processes—either at a government cal capability to recycle most of the cobalt that facility or under contract with industry (table is now lost or downgraded, estimated at 2.8 8-9, issue 3). The costs of a pilot plant project, million pounds in 1980. probably entailing $5 million or more per proj- Appendixes Appendix A Review of Previous Lists and Methods of Selection

Most lists of strategic materials are based, im- of “the unusual circumstances that the Communist plicitly at least, on the two strands of criticality and countries possess about 75 percent of world re- vulnerability. A 1981 report by the Congressional serves.” 3 Research Service listed the following criteria for Of the 21 materials, 10 were eliminated “because defining a materials import “vulnerability” (as dis- of favorable combinations of such factors as ade- tinguished from import “dependency ’’):1 quate U.S. reserves, declining domestic demand, 1. Critical need for the material. available substitute materials, availability of tech- 2. Lack of adequate domestic resources (includ- nology to process low-grade ores, and proximity of ing both a total lack and an insufficiency). foreign supplies.”4 The other 11 minerals were as- 3. Limited potential for substitution. signed index numbers and ranked by relative vul- 4. Lack of alternative sources of supply (includ- nerability, as shown in table A-1. ing politically stable sources and geographi- The SSI does not describe exactly how the index cally close sources). numbers for each material were derived. The text It will be noted that factors (1) and (3) have to do implies that the index numbers are the sum of nu- with criticality of use, and factors (2) and (4) with merical values assigned (on the basis of the authors’ vulnerability of supply. On the basis of these fac- judgment) to each of the five principal factors men- tors, the Congressional Research Service defined tioned above. The selection of these factors gives the following as “materials of particular concern”: far more weight to vulnerability of supply than to Bauxite/aluminum criticality of use. However, it is evident from the Cobalt text that factors other than those five entered into Chromium the ratings. For example, the authors’ discussion Columbium Manganese of individual materials refers to the essential uses Platinum-Group Metals of each, as well as the availability of substitutes. In Tantalum any case, as the authors state, the numbers do not Titanium refer to anything quantitative but were based on A “semiquantitative” index for rating strategic “qualitative assessment, ” that is, their own materials on the basis of vulnerability was devised judgment. by the Strategic Studies Institute (SSI) of the U.S. 2 In 1977, one of the authors of the SSI study re- Army War College in 1974. The index was based vised the vulnerability index in an attempt to re- primarily on five factors affecting vulnerability to fine it and make it more quantitative.5 The 1977 ver- “coercive pressures from foreign suppliers, ” as sion of the SSI Index included 27 factors, each rated follows: for the importance of its influence on economic, 1. Availability of domestic reserves. political, and military vulnerability of materials. Ta- 2. Availability of substitutes, ble A-2 shows the factors and their ratings. 3. Number and location of foreign suppliers. Of the 27 factors on the list, no more than 5 are 4. Ideology of foreign suppliers. related to criticality. Not one explicitly mentions 5. U.S. stockpile objectives (based, at that time, the essential uses of particular materials. Yet one on 1 year’s wartime needs). must assume that essential uses are implicit in the Materials selected for the SSI assessment were rating scheme, at least in the selection of materials the 20 minerals for which the United States im- to rate and in assessing the availability of substi- ported half or more of its requirements, plus tung- tute materials. sten. The authors included tungsten, even though A further complication in the rating scheme is U.S. import dependency for tungsten was below 50 that each of the 27 factors is also assessed for the percent, because the ratio of U.S. production to slbid,, p. 5. 1981 estimates indicate that China holds 47 per- consumption was “rapidly decreasing” and because cent of the world reserve base of tungsten, and another 11 percent is in the Soviet Union and North Korea. Both Canada and ICongressional Research Service, A Congressional Handbook on U.S. the United States have large reserve bases of tungsten; Canada’s Materials Import Dependency/Vulnerability, cited in note 2, p. 341 ff, is 15 percent of the world trade. ZAlwyn H. King and John R. Cameron, Materials and the New Dimen- ‘Ibid. sions of Conflict, Strategic Studies Institute, U.S. Army War College 5Alwyn H. King, Materials Vulnerability of the United States—An Up- (Carlisle Barracks, PA: 1974) available from National Technical Infor- date, Strategic Studies Institute, U.S. Army War College (Carlisle Bar- mation Service, U.S. Department of Commerce, Springfield, VA 22151 racks, PA: 197’7), available from the Defense Technical Information Cen- (AD/A-004263). ter, Defense Logistics Agency, Cameron Station, Alexandria, VA 22314,

381

38-844 0 - 85 - 14 : QL 3 382 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

Table A-1.—Strategic Studies Institute Index of Relative Vulnerability: 1974 Ranking

Vulnerability Material index Principal or major exporters Chromium ...... 34 Soviet Union, South Africa Platinum metals ...... 32 Soviet Union, Canada, South Africa Tungsten ...... 27 Canada, Peru Manganese ...... 23 Brazil, Gabon Aluminum ...... 22 Jamaica, Canada Titanium ...... 20 Australia, Canada Cobalt ...... 20 Canada, Zaire Tantalum ...... 16 Canada, Brazil, Zaire Nickel...... 14 Canada, Norway Mercury ...... 11 Canada, Mexico, Spain Tin ...... 6 Malaysia, Thailand SOURCE: Alwyn H. King and John R. Cameron, Mater/a/s arrd the New Dimensions of Conf/ict, Strategic Studies Institute, U.S. Army War College (Carlisle Barracks, PA, 1974)

Table A-2.—Factors Affecting Materials Vulnerability Index: 1977 List

Effect on Vulnerability Factor Economic Political Military Domestic reserves: Availability ...... L L L Cost of developing...... L L s Domestic production industry: Present capability...... L L Cost of augmenting ...... L L Substitute materials: Present availability ...... L L Cost of research to develop ...... L L Time required to develop ...... L L Additional domestic resources: Present availability ...... L L L Cost to develop suitable processes ...... L M M Time to develop suitable processes ...... M M M Probability of discovery if not available ...... M M s Cost of additional exploration ...... M M s Foreign suppliers: Number of controlling companies...... L s M Number of supplier countries ...... M M M Political stability of supplier countries...... M L M Ideology of supplier countries ...... M L M Productive capacity of supplier countries ...... L L L Economic sufficiency of supplier countries ...... L L s History of political relations with U.S...... s M s U.S. dollar involvement in supplier country ...... M M s Accessibility of supplier countries (supply routes) ...... s s L U.S. stockpile: Present U.S. stockpile objective ...... L L L Actual quantity in U.S. stockpile ...... M M M Customary industry stockpile ...... M M M Trend in usage of critical material ...... M M s Proportion of national consumption directly related to military requirements...... s s L lmportance of secondary sources (recycling) ...... M M M KEY: L = Large M = Medium s = Small SOURCE: Alwyn H. King, Mater/a/s Vu/nerabMty of the United States—An Update, Strategic Studies Institute, U.S. Army War College (Carlisle Barracks, PA: 1977). Appendix A —Review of Previous Lists and Methods of Selection ● 383

direction of its influence on vulnerability; that is, Figure A-1 .—Strategic Studies Institute Relative whether it currently contributes to a significant in- Vulnerability Index: 1977 Ranking crease, a moderate increase, or a decrease in the t vulnerability of material supplies. All these factors, 3,400 - including their importance and direction, are given 3,200 “ numerical values, the sum of which is the “relative vulnerability index” number of each material. Fig- 3,000 “ ure A-1 shows the results for four materials. 2,800 - The authors suggested using this numerical index to help set priorities for stockpiling, allocation of 2,600 - funds to research and development, and other such 2,400 - decisions. A pitfall in using this index, or others 6 like it, for such purposes is that it may convey a 2,200 - Aluminum (bauxite) misleading impression of certainty or objectivity. 2,000 - The use of index numbers to show “relative vulnerability” may be a convenience but does not at all 1,800 - evade the necessity of applying subjective judg- 1,600 - ment—as the authors of the index recognized. Judg- ment is involved at every step: in deciding what factors to include, how much importance each should be given, how to rate a material in relation to a specific factor (e. g., “political stability of supplier countries”), and so on. Another attempt to construct a systematic rating system for strategic materials was the Critical Minerals Index pilot study done by the U.S. Depart- ment of the Interior’s Office of Minerals Policy and Research Analysis in 1979.7 Designed to be used as

warning of potential problems, the index included 1 two components: one to measure the likelihood of disruption of supply (i.e., vulnerability) and the other to measure the cost of disruption or, con- versely, the importance of the minerals to the U.S. economy (including factors of vulnerability and criticality). The scheme proposed to use the subjective judgment of a panel of experts to assign index numbers for both components to specific NOTE: Overall Index number IS the sum of military, polltlcal, and economic minerals. index numbers SOURCE: Alwyn H King, Maferlals Vulnerabl/ffy of the United States — Arr UKJ Examples of events considered possibly disrup- date, Strategic Studies Institute, U S Army War College, (Carllsle tive to supply were: Barracks PA: 1977) ● Collusive price agreements (cartels). ● Shifts in demand. ● Embargoes. ● Labor strife. Factors suggested for inclusion on the cost side ● Transportation bottlenecks. were: ● ● Violent conflicts, including local rebellion, re- The magnitude and duration of the disruption. gional war, riots, border skirmishes, blockades, ● Total annual U.S. demand for the mineral. ● and sabotage. Availability of alternative sources of supply; e.g., domestic or other foreign sources. ● Time required to deliver alternate supplies. ‘An index with some similarities to the Strategic Studies Index, with ● a clearer description of how it is constituted, is in Bohdan O. Szuprowicz, Availability of substitutes. ● HOW to Avoid Strategic A4aterials Shortages (New York: John Wiley & Time required to adopt substitutes. Sons, 1981), p. 8ff and p. 285 ff. ● Expectations of those controlling investment 7Robert L. Adams, Barbara A. White, and James S. Crichar, Develop- ing a Critical Minerals Index: A Pilot Study, Office of Minerals Policy about the future of alternative supplies and of and Research Analysis, U.S. Department of the Interior, July 1979. substitute technologies. 384 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

The Critical Minerals Index was simply proposed and a number of measures of the economic impor- in a pilot study. Its authors did not apply it to pro- tance of the material, all of which, the IGS con- duce a list of minerals. ceded, were difficult to analyze and apply. A different approach to a rating system for stra- Altogether, the IGS concluded that criticality can- tegic materials, making no attempt to produce over- not be quantified readily. The quantitative pointers all index numbers, was proposed by the British In- are either crude or trivial. The more important stitute of Geological Sciences (IGS) in a 1982 questions—defining the national interest, judging Memorandum to a Committee of the House of the importance of one manufacture in relation to Lords in Parliament.8 Dividing the factors that de- another, determining whether substitutions for a fine a strategic material into the vulnerability and material are possible and how long it would take criticality strands, the institute’s vulnerability list to effect substitutions— are all matters of judgment. included: However, it is possible to combine judgments about 1. Import dependence (besides net import de- these factors into a subjective criticality rating of pendence, this factor included total import de- high, medium, or low for each material. pendence, recognizing that some of Britain’s Overall, the IGS rating scheme separated the vul- minerals processing and export industry re- nerability and criticality strands; disentangled fac- lies entirely on the import of raw materials). tors which can be quantified from those which can- 2. Concentration of supplies to Great Britain. not; quantified different factors, each in its own 3. Concentration of world production. terms; and gave subjective ratings to factors that 4. Indirect import dependence, involving a long, cannot be measured adequately by quantitative in- complex chain of supply. dicators. No effort was made in the scheme to com- 5. Concentration of world reserves (or “eco- bine all these unlike “apples and oranges” into a nomic resources”). common index number. 6. Reliability of producer countries. In their statement to the House of Lords, the 7. Market mechanisms, which include: authors concentrated on describing their rating Ž the lead time to develop new productive ca- scheme rather than applying it to produce a list of pacity. strategic materials. They did select 15 materials to • the proportion of materials tied up in long- illustrate how the scheme would work. Two of the term contracts, compared to the amount 15 materials were selected to show the independ- available on the “free” market. ence of vulnerability and criticality. Fluorspar is ● the potential for cartel formation, on the ba- critical for the production of aluminum and steel, sis of shared interests and values of pro- but is mined in Great Britain and thus is not re- ducers. garded as vulnerable. Vermiculite has high vulner- 8. The potential for recycling. ability because Great Britain is entirely dependent 9. The adequacy and security of supply links on on imports from one dominant supplier (South land and sea. Africa), but it is not critical because substitutes are The IGS memorandum pointed out that many of readily available. Of the 13 other materials used to the measures for vulnerability can be quantified, illustrate the IGS rating scheme, the authors said some quite simply. To show the concentration of that most “are likely to manifest high degrees of suppliers to Great Britain, the IGS devised an in- both vulnerability and criticality, and would there- dex based on the total number of supplying coun- fore be identified as strategically important.” They tries and the share they supply; the same kind of are: index was used to denote concentration of world Aluminum Nickel production, Reliability of supply, on the other hand, Columbium Phosphate rock Chromium Platinum-group metals cannot be quantified because it depends on such Cobalt Tantalum considerations as political stability, ideology, or Manganese Tin “excessive economic nationalism, ” which are mat- Molybdenum Tungsten ters of qualitative judgment. Vanadium On the criticality side, the institute mentioned the The materials selected are strategic to Great Brit- range of uses, the availability of substitutes, the na- ain but not necessarily to the United States, ture of British industries consuming the material, Molybdenum, for example, would not appear on a list of U.S. strategic materials because the United @Institute of Geological Sciences, Strategic Minerals, Memorandum States is the world’s largest producer and exporter submitted to the Parliament, House of Lords. Select Committee on the and holds more than half of the world’s resource European Community (Subcommittee F), Feb. 18, 1982. base—a great deal more than any other country. Appendix A—Review of Previous Lists and Methods of Selection • 385

A simpler scheme, based on the aggregate judg- reserves are discovered or as countries’ rates of pro- ment of an expert panel, was used by the British duction change). The members used qualitative Materials Forum on Strategic Materials.’ Applying judgment, as well, in estimating probable future the concepts of degree of criticality and degree of diversity of supply and in evaluating the political vulnerability to the metals used by British indus- factors involved in vulnerability of supply. try, the forum reported that “the following group The flavor of the forum’s evaluation is suggested of eight metals emerged as meriting the highest pri- by the following excerpt from its discussion of chro- ority in the newly defined strategic sense’’:10 mium:ll Chromium Manganese Although the physical long-term supply situation Cobalt Vanadium for the world as a whole looks reasonable. . never- Columbium Molybdenum theless, 97 percent of the presently known reserves Tungsten Platinum-group metals of chromium are located in South Africa and adja- All members of the forum agreed on the rating, cent Zimbabwe. The relatively small reserves lo- and all the metals were thought to merit equal rat- cated in other countries indicates that their present ing. Again, the materials listed are strategic from levels of production are unlikely to be maintained the British point of view, for more than 10 to 20 years (unless new reserves For each metal on the Materials Forum list, the on a very substantial scale are found and then de- criticality aspect was brought out by examining the veloped commercially within this time scale). Thus, metal’s more important uses in key industries. To along with many other consumer countries, the U.K. could steadily shift towards a greater depen- help assess vulnerability, the forum members dence on South Africa and Zimbabwe for chro- looked at the ratio of reserves to production in each mium supplies, whatever countries are supplying of the major producer countries of the world to esti- us at present. Since these two countries are sur- mate which countries are likely to become domi- rounded by political uncertainties, or at least such nant in the future. The group recognized that the is the generally accepted view by most Western reserves-to-production ratio is a “static” indicator countries, then imports to the U.K. need to be of reserve life (and could very well change as new regarded as becoming increasingly “vulnerable” in the future. The Materials Forum, Strategic Metals and the United Kingdom, cited in note 3. 10 Ibid., p, 3, IiIbid., p. 6. APPENDIX B Import Sources of Materials Judged to be Nonstrategic, 1978-82

1982 net import 1982 reliance Commodity Import sources (1978-81) by percent supplied consumption 4 Aluminum Canada(62), Ghana(11), Norway(4), Japan(4), Other(19) 4,740,000 45 Antimony Metal: Bolivia, China(34), Mexico(10), Belgium- Luxembourg(7), Other(n) 33,200 Ores and Concentrate: Bolivia(36), Canada, Mexico, Chile(8), Other(18) b W Arsenic Sweden, Mexico, France, Other(13) w 74 Asbestos Canada(97), South Africa(3) 267,300 52 Barite China(24), Peru(21), Chile(13), Morocco(11), Other(31) 4,140,000 w Bismuth Mexico, Peru(26), Great Britain, West Germany(9), Other(23) Reported: 1,050 69 Cadmium Metal: Canada(27), Australia, Mexico(n), South Korea(9), Other(35) 4,087 3 Cement Canada, Japan(15), Mexico(7), Spain(7), Other(22) 65,000,000 c NA Cesium Compounds: West Germany(95), Great Britain(4), Canada and France(1) NA Pollucite: Canada(100) 7 Copper Chile(32), Canada(22), Peru(14), Zambia(11), Other(21) 1,980,000 100 Corundum South Africa(100) 650 87 Fluorspar Mexico, South Africa, Italy(4), Spain(3), Other(3) 800,000 61 Gallium Switzerland, Canada, West Germany(10), China(6), Other(7) Reported: 10 100 Gem stones South Africa, Belgium-Luxembourg( 23), Israel, India(n), Other(16) $ million: 1,700 NA Germanium Belgium-Luxembourg( 50), West Germany, China(12), Switzerland(n), Other(15) 46 43 Gold Canada(52), Soviet Union(20), Switzerland(17), Other(11) Troy oz: 3,800,000 36 Gypsum Canada(73), Mexico, Spain(3), Other(2) 18,800,000 w Hafnium Negligible Crystal bar: 50 Sponge: W 72 Ilmenite Australia, Canada, South Africa(6), Other(l) 920,000 NA Indium Belgium-Luxembourg( 32), Peru(28), Japan(n), Great Britain(9), Other(20) NA w Iodine Japan(81), Chile(18), Other(l) 3,950 36 Iron ore Canada(64), Venezuela, Brazil(9), Liberia(7), Other(4) 61,150,000 22 Iron and steel Europe, Japan(34), Canada, Other(15) 88,100,000 1 Lead Ore, concentrate and bullion: Peru(32), Honduras, Canada, Australia(9), Other(13) 1,171,500 Pigs and bars: Canada(39), Mexico, Peru(8), Australia(8), Other(8) 2 Lime Canada(94), Mexico(6) 14,900,000 43 Mercury Spain(34), Japan(21), Italy(12), Algeria(10), Other(23) 76-lb flasks: 50,700 100 Mica sheet India(83), Brazil(n), Madagascar(4), Other(2) 1,800 75 Nickel Canada(44), Norway(n), Botswana(9), Australia(8), Other(28) 174,000

386 Appendix B—Import Sources of Materials Judged to be Nonstrategic . 387

1982 net import 1982 reliance Commodity Import sources (1978-81) by percent supplied consumption’ 9 Ammonia Soviet Union(38), Canada(23), Mexico, Trinidad and Tobago, Other(2) 16,000,000 31 Peat Canada, West Germany(1) 1,160,000 71 Potash Canada, Israel(3), Other(3) 6,600,000 15 Pumice Greece, Italy(13) 590,000 NA Rare earths Monazite: Australia(89), Malaysia(8), Thailand(3) 21,500 W Rhenium Chile(49), West Germany, Other(4) Reported: 2.5 NA Rubidium Canada(100) NA 8 Salt Canada(38), Mexico, Bahamas, Other(21) 42,050,000 50 Selenium Canada, Japan(17), West Germany(8), Great Britain(8), Other(23) 550 20 Silicon Canada, Norway (22), Brazil, South Africa(7), Other(32) 330,000 59 Silver Canada(37), Mexico, Peru(23), United Kingdom(5), Other(n) Troy oz: 144,000,000 d 8 Sodium sulfate Canada(98), United Kingdom(l), Other(l) 1,278,000 100 Strontium Mexico, Other(l) 15,000 3 Sulfur Canada(58), Mexico(42) 11,440,000 W Tellurium Canada(43), Fiji(14), Hong Kong(13), Peru(9), Other(21) 85 W Thallium West Germany, Belgium-Luxembourg(9), Japan(6), Other(4) w NA Thorium France, Canada(6), Netherlands(6), Malta(3), Other(5) 15 (nonenergy) 12 Tit. dioxide West Germany, Canada, Great Britain, France, Other(30) 721,000 48 Tungsten Canada, Bolivia, China(14), Thailand(7), Other(39) 7,400 w Yttrium Monazite: Australia, Malaysia(8), Thailand(3) 140 Zenotime: Malaysia, Australia Yttrium concentrates: Malaysia, Canada, Japan 53 Zinc Ore and concentrates: Canada, Peru(17), Mexico(8), Other(16) 891,000 Metal: Canada, Spain(8), Mexico(6), Australia(6), Other(16) w Zirconium Zirconium: France, Japan(23), Canada(5), Other(4) Reported: 100,000 Zircon: Australia, South Africa(10), Other(2) astatistics are for apparent consumption in short tons, except where indicated. byv = withheld to avoid disclosing company proprietary data. CNA =. not available dlg82 import and consumption data is unavailable. 1981 data is reported here. SOURCE: 1983 Mineral Commodity Summaries, U.S. Department of the Interior, Bureau of Mines. All the data presented above contain 1982 statistics. The import sources are 4-year averages for the years 1978-81. —

Appendix C Overview of Second-Tier Materials

Bauxite and alumina are the raw and semi- and other electrical uses account for still another processed materials from which aluminum is made. 10 percent of the aluminum used in the United They are considered to be strategic materials be- States, cause of the high U.S. import reliance and because Approximately 10 percent of U.S. bauxite con- of the size and importance of the aluminum indus- sumption goes into nonmetallic applications. Alu- try. For several reasons, however, bauxite and alu- minous chemicals are used for water and sewage mina are not in the first tier of strategic importance: treatment, dyeing, leather tanning, and sizing pa- many of the end uses of aluminum are not highly per. Bauxite is also used in high-alumina cement, critical and can easily be replaced by substitute as an absorbent or catalyst by the oil industry, in materials; the sources of bauxite and alumina sup- welding rod coatings, and in fluxes for steelmak- ply are fairly diverse and relatively reliable; and, ing. High-alumina abrasives and refractories are since the United States is the world’s largest alu- used in glass and ceramic products. minum producer, accounting for 25 percent of the For many of the important uses of aluminum world’s production of aluminum, the U.S. market there are adequate substitutes; e.g., steel and wood is very important to foreign suppliers. can be used in residential construction. Zinc-based Alumina (aluminum oxide) is produced from diecastings and chromium-plated steel were replaced bauxite, and it is made into aluminum for use in by aluminum in the automobile industry, and a products such as alloys, chemicals, and abrasives, shortage of aluminum could conceivably reverse Aluminum alloys offer widely varying combina- this substitution. Copper can be used in electrical tions of mechanical strength, ductility, electrical applications, and glass, plastics, paper, and steel conductivity, and corrosion resistance. Some alloys can be used in packaging. For some transportation have strengths approaching those of steel. Similar uses, magnesium and titanium can be used instead to most other materials, the worldwide recession of aluminum, albeit at significantly increased costs. caused declines in the consumption of bauxite and Approximately 97 percent of U.S. bauxite sup- alumina in 1982 (see table C-l). plies come from Jamaica, Guinea, and Suriname. Containers and packaging account for over 20 Alumina is imported from Australia, Jamaica, and percent of total aluminum consumption and are the Suriname. Australia is the world’s largest producer largest end use for the material. Almost as large is of bauxite. As table C-2 shows, many other coun- the amount used in construction, for such products tries have large reserves and production capacities as residential siding, doors and windows, roofing, of bauxite; e.g., Brazil, India, Guyana, Greece, and mobile homes, curtain walls, bridge rails, and guard Yugoslavia. Thus, there is a wide diversity of world rails. The automobile industry accounts for about suppliers, each with large reserves. 10 percent of U.S. aluminum consumption for such The United States is the world’s largest producer items as body, brakes, steering, pistons, trim, elec- of aluminum and therefore the world’s largest mar- trical uses, and metallic paint. Other transportation ket for bauxite. It appears unlikely that raw uses—marine vessels, rail cars, military vehicles, materials producers would refuse sales to this coun- aircraft, and recreational vehicles—account for try, lest they risk losing their share of this rich another 10 percent of consumption. Aluminum ca- market. ble with steel reinforcing has replaced copper for The United States has a small bauxite mining in- high-capacity electrical transmission lines. This dustry, but reserves are relatively limited. The Bu- reau of Mines has conducted research on producing alumina from alternative materials such as Table C-1.–U.S. Consumption of Bauxite, 1978-82 clays, alunite (a potassium-aluminum-sulfur miner- Apparent consumption al), coal wastes, and oil shales, The United States Year (thousand metric dry tons) has large resources of these materials and could 1978 ...... 5,300 meet most of its aluminum raw materials needs if 1979 ...... 5,106 the appropriate technology were developed. A pri- 1980 ...... 5,824 vate industry consortium, Alumet, has done work 1981 ...... 5,555 on producing alumina from domestic alunite. A 1982 ...... 4,048 large deposit of alunite discovered in Utah in 1970 SOURCE: US. Department of the Interior, Bureau of Mines,Mirrera/ Commodity Summaries 1984. could supply domestic aluminum producers for

388 Appendix C—Overview of Second-Tier Materials ● 389

Table C-2.—Bauxite: U.S. Imports, World Production, and Reserves

Sources of U.S. imports (1979.82): Country Percent Jamaica...... 39 Guinea...... 32 Suriname...... 10 NOTE: 1982 U.S. net import reliance = 96 percent. World mine production and reserves, 1982 (thousand metric dry tons): Mine production Reserves Country Amount Percent Amount Percent Australia...... 23,621 32 4,600,000 21 Guinea ...... 10,908 15 5,900,000 26 Jamaica ...... 8,380 11 2,000,000 9 Brazil ...... 4,186 6 2,300,000 10 Soviet Union ...... 4,600 6 300,000 1 Greece ...... 2,853 4 650,000 3 Yugoslavia ...... 3,668 5 400,000 2 Hungary ...... 2,627 4 300,000 1 Suriname ...... 3,059 4 600,000 3 India ...... 1,854 2 1,200,000 5 Guyana ...... 953 1 900,000 4 United States ...... 732 1 40,000 <1 Other market economy countries ...... 4,820 6 3,100,000 14 Other central economy countries ...... 2,180 3 200,000 1 World total ...... 74,441 100 22,500,000 100 SOURCE:U.S. Department of the lnterior, Bureau of Mines,Mirrera/ Commodity Summaries 1984. years. But alunite is a lower grade alumina raw ma- space vehicles, and inertial navigational systems for terial than bauxite, and the processing is currently missiles and aircraft. Another large application (35 more expensive than the standard Bayer process percent of consumption) is in beryllium-copper al- used on bauxite. Although the technology is avail- loys in electronic components, including high- able (the Soviets are now producing alumina from strength, noncorrosive housings for underwater ca- alunite), it it uneconomic in the United States at this ble repeater stations, contacts, and heat sinks, A time. relatively new use is in ceramic beryllium oxide Beryllium is the second tier because of its criti- substrates for complex electronic circuitry. cal end uses and because one U.S. company is the Consumption patterns of beryllium reflect its de- sole processor of raw ore for beryllium in the en- fense and aerospace uses. Table C-3 shows that con- tire free market world. Because of its relatively high sumption has actually been increasing, even in hard price, use of beryllium is not widespread. But times. where it is used, it appears to be highly critical, Beryllium’s special properties include light especially to defense. Arguing against a higher stra- weight, high strength, high thermal conductivity, tegic rank for beryllium is the fact that the United and neutron moderating and reflecting capability. States is apparently capable of supplying most of There are some substitutes for beryllium metal its own needs. (U.S. production figures are not (steel, titanium, graphite composites) and beryllium- available, so this conclusion is not certain.) Also, beryllium is used in relatively small amounts, so Table C-3.–U.S. Consumption of Beryllium, 1978-82 transportation of imports is not a significant problem. Apparent consumption Forty percent of U.S. beryllium consumption Year (short tons) goes to the aerospace industry and to nuclear weap- 1978 ...... 271 ons. Although the details of the military uses of 1979 ...... 303 beryllium are classified, beryllium is known to be 1980 ...... 321 a particularly good reflector of neutrons, Known 1981 ...... 303 1982 ...... 150 aerospace applications have been in missiles, air- SOURCE: U.S. Department of the Interior, Bureau of Mines,Minera/ Cornmodlty craft brake disks, aircraft frames, satellites and Summaries 1984 .

390 Ž Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

copper alloys (phospher bronze), but not without ported—mostly from a single source, Brazil—and a substantial loss of performance. Synthetic sap- because it is used in a variety of essential indus- phire can be used in place of beryllium in some tries. It is not in the first tier, however, because electronic uses. there are a number of substitute materials. Also, it Some beryllium ores are imported, but exact is used in limited quantities and could be airlifted figures for net import reliance are not available be- from foreign suppliers if necessary. Table C-5 cause domestic production data are withheld to shows a trend of increased use of columbium, ex- avoid disclosing company proprietary data (see ta- cept for the recession year of 1982. ble C-4). Before 1969, the United States was over High-strength, low-alloy (HSLA) steels owe their 90 percent import-dependent. In that year, a domes- strength and toughness in part to a fine-grained tic plant opened to convert imported and domes- structure. Columbium is used in HSLA’s at levels tic beryl and bertrandite to to beryllium oxide. This ranging from 0,01 to 0.04 percent by weight to help plant is the only known ore processing facility in attain this structure. With the trend toward more the market economy countries. It appears that the use of HSLA steels to replace plain carbon steels, United States is capable of meeting its own beryl- consumption of columbium has increased. The ad- lium requirements to a substantial degree, U.S. re- dition of ferro- and nickel-columbium to high- serves are very large (28,000 tons) in relation to the temperature superalloy imparts strength and car- 1982 consumption of 328 tons, and reported im- bide stability. For stainless steels, too, columbium ports for 1982 were moderate—108 tons. Also, in provides carbide stability.’ There are substitutes for the case of beryllium, distance from sources of sup- columbium, but not without performance penalties; ply is not an important factor. Because the mate- vanadium and molybdenum in HSLA steels; tanta- rial is used in relatively small quantities, it could lum and titanium in stainless and high-strength be airlifted if necessary. steel and superalloys; molybdenum, tungsten, tan- Columbium (niobium)l is included as a second- talum, and ceramics in high-temperature applica- tier strategic material because it is entirely im- 2At high temperatures and pressure, molecular hydrogen dissociates Wolumbium and niobium are two names for the same metal. The name into atomic hydrogen, penetrates steel (or other metals), and reacts with columbium is favored by engineers and is generally used in describing the carbon in the steel to form methane. This causes the metal to fail. the composition of alloys, while niobium is the accepted name in the This hydrogen attack is decreased with the addition of carbide stabilizers, scientific community. Since this report is directed toward engineering such as chromium, molybdenum, tungsten, vanadium, and titanium as applications of strategic materials, the name columbium is used here, we]] as columbium,

Table C-4.—Bertyllium: U.S. Imports, World Production, and Reserves

Sources of U.S. imports (1979.82): Country Percent Brazil ...... 38 China ...... 40 South Africa ...... 5 Rwanda ...... 4 Other ...... 13 NOTE: 1982 U.S. net import reliance = W, World mine production and reserves, 1982 (short tons): Mine production Country Amount Percent Reserves Brazil ...... 35 28 Not adequately South Africa ...... 3 2 delineated Rwanda ...... 4 3 Argentina ...... 1 1 United States ...... W NA China ...... NA NA

Other central economy countries ...... 80 63 World totala...... 126 100 aDoeS not Include United States andChina. NA—Not applicable W—Withheld to avoid disclosing company proprietary data SOURCE U S Department of the Interior, Bureau ofMines, kfirreral Commodity Summaries 1984, Appendix C—Overview of Second-Tier Materials • 391 —

Table C-5.—U.S. Consumption of Columbium, 1978-82 put depends largely on gemstone production and is not directly related to industrial diamond de- Apparent consumption mand. Diamonds are not included in the first tier Year (short tons) for two reasons: with the advent of a huge diamond 1978.. .., :...... , . 3,293 industry in Australia, the western world’s nearly 1979. , ...... 3,560 1980 ..., ...... 3,767 complete reliance on African nations will disap- 1981, ...... 4,059 pear, and even from the limited area of southern 1982, ...... --— . . . 3,300 Africa, supply has been quite reliable in the past. SOURCE US Departm-entoft;e Interior ~ureauof Mines Mlnera/C&modffy Table C-7 shows the trend in industrial diamond Summar/es 1984 consumption in the United States. The major use of industrial diamond stones is in tions. Some of these substitutes are themselves con- drilling for minerals. Dies, core bits, cutting tool sidered strategic. points, and electrical machinery also use natural Columbium deposits exist in the United States, diamond stone. Synthesized polycrystalline dia- but none are producing, nor are they likely to in monds are competitive with natural stones in some the near future. The United States imports all its applications where small stones are suitable, but columbium, either in the form of concentrates and synthesis of large industrial diamonds is not cur- tin slags or as ferrocolumbium. Brazil dominates rently commercial. It is expected that eventually U.S. imports and indeed world supplies. Its re- half of the demand for natural stones can be serves will last for hundreds of years (see table C- replaced by synthetics. 6), The only other major source of U.S. imports is Although the United States currently mines no Canada, and its deposits are low-grade. A single industrial diamond stones, there are diamond de- overwhelmingly dominant source of supply makes posits near the Colorado-Wyoming border. The for increased vulnerability even when the source United States is the world’s largest consumer of nat- is friendly and well-endowed with reserves. ural industrial diamond stones. As with several Natural industrial diamonds are included as other strategic materials in the first and second second-tier strategic materials because U.S. import tiers, supplies are limited to a rather small group dependence on them is 100 percent and because of producers. Currently, the main sources of sup- no substitutes are available, Another factor making ply of natural stones are South Africa, Zaire, Bel- for uncertain supply is that industrial diamond out- gium-Luxembourg, and Great Britain, as shown in

Table C-6.—Columbium: U.S. Imports, World Production, and Reserves

Sources of U.S. imports (1979.82): Country Percent Brazil ...... 75 Canada ...... 6 Thailand ...... 6 Other ...... 13 NOTE 1982 U S net import reliance = 100 percent World mine production and reserves, 1982 (short tons): Mine production Reserves Country Amount Percent Amount Percent Brazil ...... 13,165 - 83 4,000,000 93 Canada ...... 2,417 15 175,000 4 Nigeria ...... 90 1 100,000 2 Zaire ...... 10 <1 50,000 1 United States ...... Small NA Negligible NA Other market economy countries ...... 98 1 9,500 0 Other central economy countries ...... NA NA NA NA World total...... 15,780 100 4,334,500 100 aDoes not ,n~lude united states or central economy countries NA—Not applicable W—Withheld to avoid disclosing company proprietary data NOTE Amer/can Metal Market (Mar ?9, 1983) reports that China has 400 million metric tons of columblum.beanng Iron ore The Japanese are plannlng to extract the colu!nblum during steelmaklng SOURCE U S Department of the Interior, Bureau of Mines, A4/nera/ Commodify .%mmarles 1984 392 . Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

Table C-7.—U.S. Consumption of Natural has dropped with the 1982 recession, as shown in Industrial Diamond Stones, 1978-82 table C-9. Of the many varieties of graphite (with distinc- Apparent consumption Year (million carats) tive characteristics and uses) the primary types are flake, lump, and amorphous. Amorphous is the 1978...... 3.7 “ 1979...... 4.0 cheapest, at $60 to $80/short ton, flake in the mid- 1980...... 3.4 range at $200 to $l,000/short ton, and lump, the 1981 ...... 3.7 most expensive at $800 to $2,00()/short ton. Natu- 1982...... 2.9 ral graphite is used mainly to raise the carbon con- SOURCE’US Departrnant of the lnterioL Bureauof Mines, Minera/Commodity Summaries 1984. tent in steel production. It is also used in refractories, for dressings and molds in foundry operations, table C-8. Australia is beginning full-scale produc- and as lubricants. Because of its superior ability to tion from its enormous reserves, with production conduct heat, crystalline flake is the only type of expected to be about 2 million carats in 1983 and graphite used in crucibles. 15 million to 20 million carats in 1985, and could Substitute and alternative materials do not per- easily become the world’s largest producer of in- form as well as graphite for most applications. For dustrial diamonds. Other countries with substan- example, in steelmaking, graphite goes into the tial, identified deposits are Ghana, Botswana, and metal more easily than do other sources of carbon the Soviet Union. because it does not emit as many volatiles. One sig- Natural graphite sources are well-diversified and nificant functional substitution exists, however, its end uses are less critical as those for other Teflon and similar materials are increasingly used materials considered here. Graphite is, however, for bearings, so that the need for graphite lubricants considered strategic to some degree because of its for steel bearings has declined. wide-ranging uses and the many industries that em- No natural graphite was produced domestically ploy it. Moreover, natural graphite comes in sev- in 1982, although one deposit in Texas has been eral forms, and certain uses require one particular mined recently, and another in Alabama is being form. Of these specific varieties, some are found investigated. There are also deposits in Alaska, in a very few places in the world. Because of its Idaho, Montana, New York, and Pennsylvania uses in the basic industries, demand for graphite which are not economically viable at present.

Table C-8.—Natural Industrial Diamonds: U.S. Imports, World Production, and Reserves

Sources of U.S. imports (1979-82) (diamond stones): Country Percent South Africa ...... 60 Zaire ...... 14 Belgium-Luxembourg ...... 7 United Kingdom...... 7 Other ...... 12 NOTE: 1982 US. net import reliance = 100 percent World mine production and reserves, 1982 a (million carats): Mine production Reserves Country Amount Percent Amount Percent Soviet Union ...... 8.5 25 80 8 Zaire ...... 8.6 25 150 15 South Africa ...... 5.8 17 70 7 Botswana...... 6.6 19 125 13 Ghana...... 0.6 2 15 2 Australia...... 0.5 1 500 50 China ...... 1.6 4 20 2 Other market economy countries ...... 2.4 7 30 3 World total. ., ...... 34.6 100 990 100 alncludes all natural industrial diamonds SOURCE’ U S. Department of the Interior, Bureau of Mines, A4inera/ Commodity Summaries 1984 Appendix C—Overview of Second-Tier Materials ● 393

Table C-9.—U.S. Consumption of Natural Graphite, lump graphite is shrinking. It is this potential to 1978.82 substitute one type of graphite for another that puts graphite into the second tier of strategic materials. Apparent consumption Year (thousand short tons) Titanium and rutile are considered together here, because rutile is one of the ores from which 1978 ...... W 1979 ...... 74 titanium sponge (metal) is produced. Most rutile is 1980...... 49 consumed in the production of titanium dioxide 1981 ...... 55 pigment (see table C-n for consumption statistics). 1982...... 43 Titanium has critical uses in certain industries— W—Withheld to avoid disclosing company proprietary data in particular, aerospace—and thus is strategic to SOURCE:US Department of the lntenor, Bureau of Mlnes,Minera/Commodity Summaries 1984 some degree. It is not included in the first tier because the main sources of supply, of both rutile and U.S. demand for graphite is met by imports of titanium metal, are political allies of the United crystalline flake from Madagascar, lump and chip States and are considered secure suppliers. Also, from Sri Lanka, and amorphous from Mexico. Ko- substitutes do exist for many uses. Moreover, syn- rea, the Soviet Union, and China also export graph- thetic rutile can be produced from domestic il- ite to the United States. In general, reserves of menite, another titaniferous ore. graphite around the world are large and are not iso- U.S. consumption of titanium metal increased in lated in any particular geographic region, but spe- recent years as the commercial and military aircraft cific types of graphite are highly localized. Table fleets were built up, as shown in table C-12. C-10 illustrates the U.S. imports, world production, The major end use (60 percent) of titanium metal and reserves. is in jet engines, airframes, and space and missile Sri Lanka, sole world source for lump graphite, applications, where it is valued for its high strength attempted to take advantage of the situation by es- and light weight. Another 20 percent of titanium calating prices in the 1970s. This encouraged end- consumed in the United States goes into steel and users to begin designing out requirement for lump aluminum alloys, where titanium is used to remove graphite. As a result, Sri Lanka’s market for its oxygen and nitrogen and to toughen the alloys.

Table C-10.—Natural Graphite: U.S. Imports, World Production, and Reserves

Sources of U.S. imports (1979-82): Country Percent Mexico ...... 63 South Korea ...... 4 Madagascar ...... 6 China...... 8 Brazil ...... 8 Other ...... 12 NOTE: 1982 U.S. net import reliance = W. World mine production and reserves, 1982a (thousand short tons): Mine production Reserves Country Amount Percent Amount South Korea ...... 39 6 Large India ...... 49 8 Moderate Mexico ...... 38 6 Large Austria ...... , ...... 27 4 Large Madagascar ...... 11 2 Large Sri Lanka ...... 8 1 Moderate to large United States ...... W — 1,100 Other market economy countries ...... 53 9 Moderate Other central economy countries ...... 383 63 Large World total...... , . . . . 608 100 1 70,000a

aThiS flgure E from Bureau of Mines’ statistics which aggregate reserves by COntinent. W—Withheld to avoid dlsclos!ng company proprietary data SOURCE U S Department of the Interior, Bureau of Mines, Mlnera/ Commodity Summaries 1984 394 • Strategic Materials: Technologies to Reduce U.S. Import Vulnerability —.— .—

Table C-11.— U.S. Consumption of Rutile, 1978-82 ers including Italy, South Africa, and Sri Lanka, as well as the other countries mentioned. Reported consumption Ilmenite, a titaniferous ore which is abundant in Year (short tons of concentrates) this country, can be used to produce synthetic ru- 1978 ...... 253,000 1979 ...... 314,000 tile, from which titanium can be made. A new syn- 1980 ...... 298,000 thetic rutile plant is being planned by a firm which 1981 ...... 285,000 mines ilmenite in Florida. The process to be used 1982...... 239,000 is the same as the one in current use in Australia. SOURCE US Department of the anterior,Bureauof Mlrres, Mirreral Cornrnodtty For most domestic producers of metal (mainly lo- Summarres 1984 cated on the west coast) it is cheaper to import rutile from Australia than to use synthetic rutile de- Another 20 percent is used in the chemical proc- rived from domestic ilmenite. According to an essing industry, power generation, and marine and industry source, the costs of starting up more syn- ordnance applications. thetic rutile plants and shipping the produce to do- In some uses, high-nickel steel and superalloy mestic sponge producers are the only barriers to can substitute for titanium alloys. For aircraft and U.S. self-sufficiency in titanium raw materials. space applications, high-strength, low-weight com- Major U.S. import sources for titanium sponge posite materials are being introduced to replace metal have been Japan, China, the Soviet Union, titanium. Also, new aluminum alloys produced by and Great Britain (see table C-14). The United States powder metallurgy techniques (discussed in ch. 7) has enough processing capacity to produce all the provide alternatives to titanium in aerospace appli- titanium metal required for domestic consumption, cations. but about 35 percent of capacity was idle in 1982, There is some rutile mining in the United States, Tantalum performs essential functions in certain but most of the material is imported (see table C- products, and some of those products themselves 13). The major import source is Australia, with mi- meet critical needs, Others are nonessential. The nor amounts coming from Sierra Leone and India. present major U.S. import sources for tantalum are Brazil has by far the largest reserve base in the judged not to be highly reliable, which adds an ele- world, but current production there is limited. ment of risk. Yet worldwide ore production is quite Sources of supply are quite diverse, with produc- substantial and diverse. For these combined rea-

Table C-12.—Rutile: U.S. Imports, World Production, and Reserves ——— Sources of U.S. imports (1979.82): Country Percent Australia ...... 69 South Africa ...... 9 Sierra Leone ...... 14 Other ...... 8 NOTE 1982 U.S. net import reliance = W World mine production and reserves, 1982 (thousand short tons of concentrates): Mine production Reserves Country Amount Percent Amount Percent Australia...... 243 64 10,000 7 South Africa ...... 52 14 7,000 5 Sierra Leone ...... 53 14 4,000 3 Sri Lanka ...... 14 4 6,000 4 India ...... 9 2 4,000 3 United States ...... W NA 3,000 2 Brazil ...... — o 100,000 70 Italy...... — 0 6,000 4 Central economy countries ...... 10 3 3,000 2 World total...... 381a 100 143,000 100 aExciudeS U S production NA—Not applicable W—Withheld to avoid disclosing company proprietary data SOURCE U S Department of the Interior, Bureau of M!nes, &f frrera/ Commodity Summaries 7984 Appendix C—Overview of Second-Tier Materials ● 395

Table C-13.—U.S. Consumption of Titanium Sponge, an additive, tantalum carbide improves hot hard- 1978.82 ness and crater resistance in tool bits. Columbium carbide is a suitable substitute for the purpose. Reported consumption About 9 percent of tantalum consumption goes into Year (short tons) high-temperature superalloys for critical parts 1978 ...... 19,854 1979 ...., ...... 23,937 (blades and vanes of gas-turbine engines for air- 1980 ...... 26,943 craft). The other principal use of tantalum is in mill 1981 ...... 31,599 products, mainly used by the chemical industry for 1982...... 17,328 such items as corrosion-resistant heat exchangers SOURCE U S Department of the Interior, Bureau of Mtnes, Minera/ Corrtmod/ty Summaries 1984 and tank linings. Substitute products are glass-lined containers, graphite, Hastelloy C, titanium, and zirconium. sons, tantalum is in the second tier of strategic The United States imports 90 percent of its tan- materials. talum in the form of concentrate and tin slags. The As indicated in table C-15, annual U.S. consump- largest supplier is Thailand, with smaller amounts tion of tantalum is small, on the order of 1 million coming from Canada, Malaysia, and Brazil. Malay- pounds per year. sia and Thailand ship substantial amounts of tan- The largest share of U.S. tantalum consumption talum-containing tin slags, a source that is likely to (54 percent) goes into electronic capacitors. Capa- decline as the old tin slags become depleted, Can- citors are used in all areas of electronics: computers ada is the largest source of natural tantalum min- and office equipment, telecommunications, instru- erals, but Australia may eventually supply a larger ments and controls, consumer, and automotive. portion. In addition, there are reserves of tantalum Some areas of capacitor use maybe considered es- in Nigeria and Zaire. Nigeria’s tantalum is a by- sential and others not. For example, in the United product of columbium production; demand for States, consumer electronics accounts for about 12 Nigerian columbium may decline as production of percent of tantalum capacitors. (In Japan, by con- columbium oxide in Brazil gears up. Nigerian tan- trast, two-thirds of tantalum capacitors are used for talum production may then drop accordingly. Ta- this purpose.) Moreover, where size and stability ble C-16 contains statistics relating to tantalum, are not essential features (as in consumer products), No significant mining of tantalum has occurred aluminum electrolytic capacitors are competitive in the United States since 1959. This country has and can substitute for tantalum capacitors. Thus, 3.4 million pounds of tantalum resources in iden- only a limited proportion of tantalum use in capac- tified deposits, but they are uneconomic to develop itors may be regarded as critical. at current prices. For several years world tantalum Another important use of tantalum (27 percent) prices have been falling, which probably indicates is in cemented carbide metalworking tool bits. As confidence about future raw materials supply. As

Table C-14.—Titanium Sponge: U.S. Imports, World Production, and Reserves

Sources of U.S. imports (1979-82): Country Percent Japan...... 85 China ...... 11 Soviet Union...... 4 NOTE” 1982 U S net import reliance = W World mine production and reserves, 1982 (short tons): Mine production Reserves Country Amount Percent Amount Percent Soviet Union ...... 44,000 53 50,000 39 United States ...... 15,600 19 33,500 26 Japan ...... 18,600 23 36,000 28 United Kingdom ...... 2,600 3 5,500 4 China ...... 1,500 2 3,000 2 World total...... 82,300 100 128,000 100 w—Withheld to avoid disclosing company proprietary data SOURCE U S Department of theInterior, Bureau ot Mines, Mneral Commodity Summarfes 7984 396 Ž Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

Table C-15.–U.S. Consumption of Tantalum, 1978.82 Nonetheless, because the material is pervasive in many industries, a serious interruption of supply Apparent consumption Year (short tons) might cause severe economic dislocation, until sub- 1978 ...... 560 stitutes could be adopted. 1979...... 720 The United States relies on imports for 72 per- 1980...... 590 cent of its tin requirements. Major import sources 1981 ...... 630 at present are Malaysia, Thailand, Bolivia, and In- 1982...... 530 donesia. Quite a few other countries have large de- SOURCE: U.S. Department of the lnterioL Bureauof Mines, A4inera/Comrnodity Summaries 1S4. posits (China, Soviet Union, Burma, Brazil, Austra- lia, Nigeria, the United Kingdom, and Zaire), as mentioned below, production capacities of devel- shown in table C-18. In the developed world, a Brit- oping nations for both tin and tantalum have been ish mining consortium is going ahead with the first rising. commercial use of a suction dredge for the seabed Tin is included in the second tier mainly because mining of tin in sands off the coast of Cornwall. it occurs geologically with tantalum. Because of this Small quantities of tin are produced domestically, geological pairing, tin supplies share characteris- as a byproduct of molybdenum mining in Colorado, tics of vulnerability with tantalum. and from placer deposits in Alaska and New Mex- Tin consumption in the United States is shown ico. Over 20 percent of the tin consumed in this in table C-17. Tin is used in cans and containers, country comes from recycled scrap. electrical applications (solder), and in construction There is a large inventory of tin in the U.S. stock- and transportation. Substitutions for most of these pile, which essentially serves as another supply uses are widely available. There are a multitude of source, since sales are made constantly to reduce alternative materials for tin cans and containers. the surplus, From July 1980, when tin sales began, Epoxy resins can be used in place of solder in some to the end of 1982, over 10,467 tonnes of tin were nonelectrical uses, and aluminum or copper base disposed of from the stockpile. This amounted to alloys or plastics can be used in place of bronze. approximately 7 percent of U.S. apparent consump- Lead-base bearing alloys and plastics can be used tion over that period. for tin-containing bearing metals as well. Thus, the Vanadium is on the second-tier list because of its essential use of tin is limited to electric solder. critical uses. It is employed in a variety of steel and

Table C-16.—Tantalum: U.S. Imports, World Production, and Reserves

Sources of U.S. Imports (1979-82): Country Percent Thailand ...... 42 Canada ...... 11 Malaysia ...... 9 Brazil ...... 8 Other ...... 30 NOTE: 1982 U.S. net import reliance = 92 percent. World mine production and reserves, 1982 (short tons): Mine production Reserves Country Amount Percent Amount Percent Brazil ...... 115 31 1,500 4 Canada ...... 85 23 3,000 9 Australia...... 85 23 7,500 22 Thailand ...... 10 3 10,000 29 Nigeria ...... 12 3 5,000 15 Zaire ...... 10 3 3,000 9 Malaysia...... — o 2,000 6 Mozambique ...... NA NA NA NA Other market economy countries ...... 50 14 2,000 6 Other central economy countries ...... NA NA NA NA World total...... 367 100 34,000 100 NA—Not applicable. SOURCE: U.S. Department of the Interior, Bureau of Mines, Mir?era/ Commodity Summaries 1984, Appendix C—Overview of Second-Tier Materials ● 397

Table C-17.—U.S. Consumption of Tin, 1978-82 ing. Vanadium imparts hardening properties to steel by means of grain refinement. It is used in Apparent consumption Year (short tons) high-speed tool steels and high-temperature rotors because it forms stable carbides and resists high- 1978 ...... 70,304 1979 ...... , ...... 76,262 temperature abrasion. It is used in crankshafts, pin- 1980...... 60,068 ions, and gears because of its shock and wear re- 1981 ...... 60,012 sistance, The high strength-to-weight ratios of steels 1982...... 44,364 containing vanadium (HSLA and full-alloy steels) SOURCE” US Department of the anterior, Bureau of Mines, Minera/Cornrnodity Summaries 1984 make these steels valuable in weight-saving components. Because of its various uses in steel products, alloy products and as a chemical catalyst. Of the demand for vanadium is tied to the demand for possible substitutes for vanadium, many are them- steel. selves more strategic. U.S. vanadium supplies and Ten percent of U.S. vanadium demand is in ti- processing capacity are sufficient to meet this coun- tanium alloys, where it provides strength and work- try’s requirements. Yet a considerable amount is be- ability. The rest of U.S. vanadium consumption is ing imported at present, which adds an element of in the chemical industry, where vanadium is used vulnerability. Altogether, vanadium probably be- as a catalyst, mainly in the production of sulfuric longs near the bottom of the list of second-tier stra- acid. tegic materials. Many metals are interchangeable with vanadium Vanadium is another material that is used in com- to some degree in alloying; examples are colum- paratively small quantities, as shown in table C-19. bium, molybdenum, manganese, titanium, and About 80 percent of the U.S. vanadium consump- tungsten. Platinum can be used in place of vana- tion is used as a microalloying agent in steelmak- dium as a catalyst in the chemical industry.

Table C-18.—Tin: U.S. Imports, World Production, and Reserves

Sources of U.S. imports (1978-81): Country Percent Malaysia ...... 39 Thailand ...... 21 Bolivia ...... 17 Indonesia ...... 13 Other ...... 10 NOTE” 1982 US net import reliance = 72 percent. World mine production and reserves, 1982 (short tons): Mine production Reserves Country Amount Percent Amount Percent Malaysia...... 57,600 22 1,320,000 12 Soviet Union ...... 40,800 15 1,100,000 10 Indonesia ...... 40,200 15 1,705,000 16 Thailand ...... 28,700 11 1,320,000 12 Bolivia ...... 29,500 11 1,080,000 10 China ...... 16,500 6 1,650,000 15 Australia...... 14,000 5 385,000 4 Brazil ...... 10,500 4 440,000 4 Great Britain ...... 4,400 2 286,000 3 Zaire ...... 2,400 1 220,000 2 Nigeria ...... 3,000 1 308,000 3 Burma...... 1,900 1 550,000 5 United States ...... Negligible 77,000 1 Other market economy countries ...... 12,100 231,000 2 Other central economy countries ...... 4,000 66,000 1 World total...... 265.600 a 10.738,000 100 aExcludes U.S. production SOURCE: U S Department of the Interior, Bureau of Mines, &firrera/ Commodity Summaries 1984 398 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

Table C-19.—U.S. Consumption of Vanadium, 1978-82 country, vanadium is usually mined as a coproduct or byproduct of uranium or phosphorus; an excep- Apparent consumption tion is the vanadium mine in Hot Springs, Arkan- Year (short tons) sas. Because of this geological pairing, continued 1978 ...... 8,164 1979 ...... 10,168 U.S. production may be somewhat uncertain, since 1980 ...... 8,521 it depends to a considerable degree on the market 1981 ...... 9,584 for unrelated minerals. Although the United States 1982...... 6,406 has the reserves to be self-sufficient, market forces SOURCE. U S. Department of the Interior, Bureau of Mines, Minera/ Commodity may at times favor imports. Summaries 1984. Vanadium can also be recovered from iron slags and petroleum residues. Japan and the United Overall, U.S. net import reliance for vanadium States are the only countries currently producing (24 percent) is not as high as for most other strate- vanadium from petroleum. The United States uses gic materials, but this is due in part to the depressed Venezuelan crude oil as a vanadium resource. state of the steel industry in 1982. The foreign Vanadium is also imported in semiprocessed form sources of supply are not very diverse; the majority as ferrovanadium, largely from industrialized coun- of vanadium imports originate in South Africa, as tries. Canada, Belgium, Luxembourg, and West table C-20 indicates. The major world deposits are Germany supply approximately 90 percent of U.S. located in South Africa, the Soviet Union, the ferrovanadium imports. Canada processes U.S. and United States, and China. These same countries are South African ores into ferrovanadium and then ex- the world’s leading producers of vanadium. In this ports it to this country.

Table C-20.—Vanadium: U.S. Imports, World Production, and Reserves

Sources of U.S. imports (1979.82): Country Percent South Africa ...... 54 Canada ...... 10 Finland ...... 7 Other ...... 29 NOTE: 1982 U.S. net import reliance = 24 percent. World mine production and reserves, 1982 (short tons): Mine production Reserves Country Amount Percent Amount Percent South Africa ...... 13,200 36 8,600,000 47 Soviet Union ...... 10,500 29 4,500,000 25 China ...... 5,000 14 1,800,000 10 United States ...... 4,100 11 2,400,000 13 Finland ...... 3,470 10 100,000 1 Australia...... 110 <1 270,000 1 Other market economy countries ...... 120 <1 600,000 3 World total...... 36,500 100 18,250,000 100 SOURCE’ U.S. Department of the Interior, Bureau of Mines, Minera/ Commodity Summaries 1984 Index Index

A{:oje JVlining, 145 Applications Ar]iabatic engines, 298-299 ceramics, 294-301 Aclianced ~orning electrode (A(~E], 76 chromium, 12-13, 53, 62-66, 78-80 Adiance(] materials cot)dt, 13, 54, 66-70, 78, 80, 101 ceramics, 22, 25, 286-301, 324-327, 347. 368-369 composites, 305, 308, 311-312 chromium substitutes 22-23 essential, 12-13, 46, 78-80 cobalt substitutes, 25 ferroallo}rs, 63, 187, 2~33 {:om pos ites, 268, 301-313, 327-328, 347 future, 77-78 data collf;~;t ion and analysis, 318-319, 324-326, 371 future consumption estimates, 64, 70, 72-74, 78-80 import (1 epf>nden cc, 363 import consumption charrges and, +1 institutional harriers, 323-328 ]ong-range ordf:r intf:rrnetallic materials, 313, 314 ]egislati~re actions and, 118-119, 338-340 manganese, 13, 55, 71-72, 187 long-range or(ler intermetalli{: materials, 313-314 platinum ,qroup meta]s, 13, 56, 72-77, 79, 80 o~’er~ ie~ir, 285-286 rapid sol id i ficat ion mat f;ri a 1s, 315-317 polic} options, 35 superallo~’s, 63, 67, 278, 281-284, 290 ra~)id s(jlidi f’icat ion, 283, 314-317 types, 61 resear{:h and (I(; k’[; lo])rll(;rlt, 35, 118, 347, 3[;9-370 Ar~[~~~-o~\,~[;Il-~l[; [;:~rt]L~ ri~at ion (A(]I)), [j[j, 2 I 6-21 ~, 248, Adtran(;e(l Llateria]s I)ekwlopment l)ro~r am, 326 251 Ad\ranced ~)rocessing technolo~ies AK N4C0, 274 ele(;t ron ic scrap, 253-254 ArnlJr hl at f;rials ancl hlfx:hanics Resf;ar(; b (l[;ntf~r o~rf]rlrie~~r, 216 (Ahlhl RC), 316 ])rospects for, 2,57 Associated hlanganesc, 178, 184 sta i n]ess steel, 274-276 Australia, 160, 161, 163, 179-182 Stcf!l , 232, 235-237 Autonloti~f) a])pl ications so pera 1 I()}rs, 24-25, 220-221, 227 257, 279-284 cf)ramics, 297-300 Aerospace appl i(:atioos. Set? Avia ion ap~)li(:at ions chromium, 62-63, 80 /\ fri(:a n c i~r i] d isordc r, 90 cobalt, 67 Agen{; }r for I ntf; rnati onal I) f;\rf; lop nerrt [ A 1 1)], 358 corn posit f:s, 308, 311-312 A,qnell’ hl i ni n~, 1 [;3 future changes, 78 A i r F’o rx:f; , 22 (j, 22 ~, 2 ~ 1, ~~ 1, 327, :]~ ~, 3 ~[; future consumption estimates, 80 A i r For’(;[; hfateri als 1,aborat or}, 301, 317 platinum group mf;ta]s, 72-74, 79, 80 A i r-melting prxx:ess[; s, 222 rapid so] i[lifi cat ion mat f]rials, 31 [j, 317 Albania, 141, 143-144, 162 superallo~rs, 284, 290 A ] l)a n Jr R[!sea r(:h (je n t e r, 153, 272 Autonloti\7e gas turbine (AGT], 244, 299-300” A] [;oii , 317 Automotilre Gas Turbine (ACT) program, 299, 301 A 1 ]f; ~hf; n Jr I,u{j IL1 m St f;el (jor>p, Resea r’(; h (~f;n t (; r, 27 ~1 i4utonloti[re Prduc;ts Ili~ision of AiR~;sea r(; h, 298 Al]o}” certifi(: ation processes, 319-323 Autornoti\e Propulsion Research and I)[:\’(]lO1)Ill[;r~t Act A]lo} s1[)[)]s, 22{1, 230, 276-277 (Title III of Publi(: l,a~fr 95-238), 299 A It ernat i Ire al 103 com mere ial izat i on, 34-35 Aiiation applications A 1 t c r n a t i ~’c ap p I’() a c h [:s. ,5’ec ‘1’e(:hrlologi(::]l” a~)[]roaches ceramics, 300-301 A] u m i not hf:rm ic (, A-’I’ ] ])rocf; ss, 157 chromium, 63-64, 78-79 Alum i n u m alloys, 317 cobalt, 67, 101 A rnax, 161, 163-165, 175-176, 200 (composites, 305, 311 Ameri(:an Cf; ramics So(:iet}r, 325 long-range orcler interrnetallic matf;rials, 313. 314 American (jhrome & (~hern ical (;o.. 1 bp rapid solid ificat ion matf;rials, 315-317 American Chrome [;o., 150 superal]o~’s, 278, 281-284, 290 /\nlcri(:an S(~(;iet} for Nqf;tals IASNI), 341 Amf]ri can Societ } for ‘1’est ing of Materials (AS’1’hi), 272, Bacterial ]eacbing, 132 320, 328 Bayf;r Group, 139 American Sof; ict\r of’ Llechanica] Engint!ers IAShJI E), 272, 13(:1, I,td., 163 320, 328 Bell System, 101 Anl(J(:(J L1 inf:rals, 167 Bent; ficiat ion, 135, 153, 187 nf)rals (; ()., 151, 152, I 97 /\ na(:() n(la hli Bcnquet Corp. < 145 An(lrus, Cf;(;i] H., 114 Bf;thlf>hern Stfwl, 178 A n g]o A m f;ri(; a n, 147, 178, 193 Bioenginf;ering, 132 AnKlo ‘1’r[~lls\t]{~l-( ;[)rlsoli(latf;(j (:0. I,td., 178 Bird Ri~’er df;pos it, Canada, 147-148 A n s(, h o t z .\ 1 i n i n g, 170 Hlackbir(j Nline. I(]aho, 168-170, 173, 174, 355, :356

401 402 Ž Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

Hl;]st I (l rll;lf’(:~, 188, 2:15-2:1[; ]I]ilI’k[~t [~l(:to I’S,~{j’~-’~()-l, _ -. f]fjtl-:](j{) 130~:s, ] . (:illf!t), 1 [)8 ()~’(:r~’if!~~, 286, Z[j[i Honao, ” 173 l)ro~)(:r ties, 2H[j [~ot~tkrtlnii, l[io, 1 (i 1, 1 (i:] [)1’ OS])(?(:t\ 101’, 22. 25, 2(;7-268, 288, 2{10, 292 f{(]t~it’{ln:i f~S’1’. 1 fi~l r(!>t)ar(,ll {i 11(1 ({(!\ ’[!loI)IIIE)Ilt, 268, 2:):1-30 1. :j 25-327, :34 7 I{r;]z i], 1-11, 144, 177-1 H:3 St:lti O1lill’\r (~n~ill(’ ;i[)~)li(:;it ions, :\() 1 Hrit isll ( ;Ilronlf! & ( ll](!IIlit::ll ( 1o., 157 \ f:hi(; lt: ii I)~)li(:iltio IIS, 297-:100” HII rrtIu of” hli[~[;s L\r(!:l I’ i)i)l)l i(:iltiolls, 2<15-296 (;hronliu[n rt!ltittwi il(:ti~itit;s, 143, 15:i (;(~r ‘1’;iilor(!(l] ~)lr]ti]lunl gll)ll~) lllf’tc]l~ r(;l;ltt!(l il(ti[’iti[:S, 200” S)’st(’nl, 277 rtx:> (;I ill: ii(.t ii’it itx, :ifi, 225, 251, 2 5:1-2 54. 258-25!1, :374, (Jllcmi(:dl il[)~)l i(:tltiol)h, [i 1, 65, (j(j, (;9, 72, 74 :17$>, ,177 ( ;l][;l]l i(;i]l (;~ltil]\$jt$, 24[j. ,$(?[? (11.$() (;iltiil\’\t S

s~ll)stit(]tion il(;ti~’iti{;s, 34, 1 14, 2(i7, 272, 275-277, :1(}:1 (:ht:\ I’(III Kt:sot;r[x+ (lo. ((; h[![[”()[l (’S/\], 1[)7 Hurllll(li, 162 (Jl]ina, 178, 182 Hllsh\’ol(j (;ompl(!k, south :Ifri(:a, 139. 145-146, 1{15 ( jlll’O1l)it[! ]’[!fl’{]( :tO1’l(!s, [j(j ( ; h 1’()[11 iU 111 ( :,lt)ill(!t ( ;01111(: i] 011 ~iltlll’il] ~(?SOLII’(:f!S cII1(] h; Ilf’i I’OIIIUeIlt, , I i ~ [) 1 i (,,1 t i ( I IIS, 12-1 :j, 5:1, [j2-(j(j. 70-80” 117$ 118. :1:17 -:]:)8 (;()]ls(~r~<]t ioI1. 21. 21.7, 218, 2:19, 248-251 (;iilil’t)rlli;l \’i( L(JI (;[)I])., 132, 170. 171 t. ( I I 1s (I II ~ ~ )t i( ) n, I :1, 44, 5:1, [)2. [i:], 65, 7P-H() (;illlllill (!, 145 ~l(]]I]t;sti(, I)ro(ili(,t ion, 1!1-20, 5:1-b4, 12(;. 148-154, :155 ( J ii 11 ~1(1 il 1(’rr[)( l]r(]l]liuln, l[i, 1{)-21. 44, 5:1, fj:~, 1 :18, 1 :1!), 141-147, (:llr[)mium ~)ro(i(l(:t ioIl, ” 1-17-148 I 54-1 5{) (ol)illt ~)ro(iu(;lion.” l(io-l(j4 ior(;ign [Irod[]ctiorl,” 12(;, 1:IH-14H r)i(. k(!l strike (Ii 1{169, 1(;, 94-97, 10:], 257 in]~x)rts. 53, :)4, 1:38 ~)];ltinum gI’()\I~I IIl(!tii]S pro(iu(;tion, I, :]()~, :]()~], :~()~-:~()(i, ‘] ] I pro(;[!ssillg, 1:1(;, 153159 (JarlJ[)II m;]tr ii [onl~)[)sitt?s, 302, :103, :;05-:] 06, 311 ])l’()(ill(:t i()ll, 14, 1{1-21, 136-139 (jai’t)OIl St[![!IS, 220, 230, 276 ])rospects for, 153-154, 334 (:;lI.t~orllrl(i~lrll (:()., 2{l(j-297 \ u t)st i t u t i ( )n, 21 -2:1, (i T1-66, 268-277, 2 ~{j, ~~~, ~[j~, Z{)(), (:~iI’l)otll[;l’tlli[, i)ro(t;ss, 157 :1 [;(; (::irolnlt)t, lll[; ., 170 su]~])lj (Iisru])tions, 15-16, 48, {) I-94, 103, 104 (jart(;]s, 8(;-87 (~hromiunl nlf;t;ll, 15&15{) (;art[?r, ]inlnl~r, 111, 114 (Iia. Afinertl Aut]an S.A. dc (~.\’., 178, 183, 184 (:asting twhnolo$q’, 24-25, 220, 23(i-2 :17 ( ;It;a I] ,Air fl(;t ( l~uhli(; I,aw’ 91-604 iIn(i ;iI[l[;Il(lIl][;llts), 72 (:atdj’sts, fi9, 80, 101! 245-248, 375 (Jloswi [Iic f’orging, 220-221 (J;~talj’ti(; (;on~[!rtt;rs (Jo,]t i rigs, 275, 282, 305, 310 altcrr]tlti~c te(:hI](Jlogif;s, 24:1-244 (;obalt [)latinum groui) nlf~tdl substitutes, 24:1-244 :ipj)lictit ions. 13, 54, [;[; -70, 78, M), Iol rt:(;~r(;ling, 21, 28, 1! lH. 239-243, 240-25(1 (; O1lS[!l’~’:lt ion, 24-25, [j9, 10 I -102, ~ ] 5, 21 []-~~(), 222, 225, S(}(:on[!han({ In:ll’kct, 242-243 ‘)4-. 5-248, 254 stainless stwl sut)stitutcs, 274 (,()[ls(lnl])t ion, 13, 44, 54, [;7, 68, 70, 7{1, 80, !1{1, 277-278, strat[!gi( mct[lls USC. 14, 72-74, 79, 2;18-2:3!1 ~{)() Slli)pl}’ (iisruptif)n Stl’ilt(?gi CS, 244-245 (lonlcst i(: pro(l u(:t ion, 55, 126, 167-174, 354-35[; (Jcn][;nt[!(l (;art)i(ics. 67, 80, 101-102, 254. 275 f’orf:ign ])rodu(;t ion, 126, 160-167 (jt; nt[!r for (~f?ranli(; Rescar(;h, Rutgc[s [ lni~crsit~’, 327 i reports, 54, 159 (: f;ntcrs for IIldllstri{ll ‘]’ WhIl[)]()~}’, 342 ()\’t!I’\’ic Lv, 54-55 (Jerami(; (;a])a(; itors, 75-77, 80 potential SOUI’(:[!S, 126, 147, 162, 165-172, 21 (), 246 (l(!I’;IIIli(:/g] {lSS IIlilt I’i X (: OIIlpoSit(; S,” 303, ~)06-~~8 pro(; cssing, 24-25, 137, 160-1 [51, 171, 173-177 (j(; rikllli(; S product ion, 14-15, 23-24, 31-32, 137, 159 ;lir(;r;ti’t turhin[; engin[? a~)])lications, :100-301” ])ro(~uct ion subsi(iies, 126, 171-173 (;onljwsitc matrix. 303, 306-308 prospects for, 173-174, 334 (;utting tool applictltions, 294-295 substitution, 25, 68, 69, 70, 99, 1() 1, 279-284, 290 (iat:] (:oll[!ct ion and analy’sis, 324-326 su[)I)l~ disrul)t ions, 16, 48, 97-104 he;it ~;ngine applications, 297, 325-327 (lo~){~lt panic Of 1978-79, 16, 63-64, 97-104, 257 h[!ilt [? X(:hiII)~CI’S, 29[;-297 (;of rcmmi, S. A., 165 Index ● 403

COIllhustioIl EIlgilwf~riIlg, IIlC" :~:z() Critical(jriti(:a] Malt~rialsNl;itf)riiils C()unciL(;olln(;il. 2q2{1 C()m i1(),~, 17B, 17<) CUlllmin(lumrnin Engin(~l+:n~inc Co"(h)., 2Sl!-l299 ComiIla, 144-14~ Cutting(:utting tooltool” applications,a]j]]lications. 294-295 COIllillittp!~ ()Il i\lilt!~rials rCO\1t\T), 31, 117, 11B, T17, :nB, C\'R(:\’R I), 178. HU18:1 347-3~{) (:OIll p()si t t~S Data collection and andl~lsis applications, :lO~, 30B, JII-31:Z advanu:d malt:rials, :lIB-:lI

platinum group metals, 72, 74-77, 79, 80 Forging technology, 220-221 Electrolytic chromium metal, 156-158 Foster Wheeler Corp., 156 Electrolytic processes, 135, 157 Fuel cell stations, 77-78 Electronic scrap, 251-254 Full alloy steels, 229, 230 Elkem Metals, 158, 189-190 Fuqua, Don, 116, 118 Embargoes, 87-94 Energy production facility construction, 65 Gabon, 178, 179, 181, 183 Engelhard Corp., 193, 194, 201, 253 Gag Island, Indonesia, 167 Environmental Protection Agency (EPA), 243, 251 Garrett Turbine Engine Co., 282, 299 Essential uses, 12-13, 46, 78-80, See also Applications Gasquet Mountain Project, California, 150, 152, 168, Etibank, 146-147 170-171, 355-356 Eutectic superalloy, 283-284 Gas turbine applications, 244, 298-301, 310, 311, 313 Exploration Gecamines, 165 description, 129-131 Gemini Industries, 240 domestic, 26, 28, 201, 204, 206-211 General Accounting Office (GAO], 118, 173, 337-338, 354, foreign, 142-143 358, 360, 376 land-based resources, 201, 204, 206-209 General Electric, 67, 281, 301 ocean-based resources, 209-211 General Mining Union Corp. Ltd. (Gencor), 178 policy options, 4, 32, 351, 353 General Motors, 63, 299 prospects for, 126, 201, 204 General Services Administration (GSA), 157, 190, 341, research and development, 208-209 342, 376 technology, 20, 131, 204-208 Genetic theory, 204, 208 Extractive metallurgy, 135, 153, 174 Geology, 128-129, 137, 159, 177, 199, 201, 204 Globe Metallurgical Division of Interlake, Inc., 159 Falconbridge, 161, 163-165, 194, 201 Gold Fields of South Africa Ltd., 195 Federal Clean Water Act, 251 Goodnews Bay Placer Mine, Alaska, 196, 198, 200 Federal Emergency Management Agency (FEMA), Grande Carajas Development Project, Brazil, 180-183 172-173, 341, 342, 374 Greece, 139, 144 Ferbasa, 144 Groote Eylandt Mining Co., 180, 182 Ferroalloys Grumann Corp., 305 applications, 63, 187, 233 GTE Corp., 254 chromium, 16, 19-21, 44, 53, 63, 138, 139, 141-147, GTE Sylvania Corp., 225, 296-297 154-159 Gulf Chemical & Metallurgical Co, (Gulf C&M), 247 domestic production, 20-21, 33, 44-45, 126, 136, 154, 157-159, 189-190, 361-362 Hadfield steels, 71, 229 foreign production, 15, 16, 19, 53, 126, 136, 139, Hall Chemical, 176-177, 247-248 141-147, 157, 179-180, 183 Hanna Mining, 175 imports, 15, 44-45, 55, 94, 138, 139, 177, 179, 189 Hanson Properties, 198 manganese, 15, 26-27, 44, 55, 154, 177, 179-180, 183, Heap leaching, 132, 187 187-190 Heat engine applications, 297, 325-327 nickel, 175 Heat exchanger applications, 296-297 policy options, 33, 361-362 Hellenic Ferroalloys S. A., 144 prospects for, 26-27, 126, 141-142, 159 Hellenic Industrial Mining & Investment Co., 144 supply disruption and, 33, 45, 136-137 High-strength, low-alloy (HSLA) steels, 63, 229, 230 technology, 154-156, 187-188 Home scrap, 215, 222, 233, 235, 248 Fiberglass composites, 305 Hot isostatic pressing (HIP], 226, 280-281 Fiber-reinforced superalloy (FRS), 308, 310, 311 Hot isothermal forging, 24, 221 Finland, 141, 144, 154, 160, 164 House Armed Services Committee, 376 Ford Motor Co., 295, 299 House Committee on Science and Technology}, 115, Foreign production 117-118, 346 chromium, 126, 138-148 House Subcommittee on Seapower and Strategic Critical cobalt, 126, 160-167 Materials, 113 ferroalloys, 15, 16, 19, 53, 126, 136, 139, 141-147, House Subcommittee on Transportation, Aviation, and 157, 179-180, 183 Materials, 117-118 manganese, 126, 178-184 Hydrometallurgy, 135, 171, 174 platinum group metals, 126, 192-195 Hydroprocessing catalysts, 246-248, 375. See also policy options, 32-33, 356-361 catalyst s potential sources, 147-178, 162, 166-167, 180, 195 prospects for, 125-127, 162, 194 ICOMI, 178, 182 supply disruptions and, 91-92, 97, 102 Impala Platinum Holdings, 165, 192, 194, 195 Index . 405

Ijmuiden Hoogo\rens B\’, 167 Large-scale fue] cell stations, 77-78 I reports LASERGLAZING, 275 chromium, 53, 94, 138 Laser technology, 275 cobalt, 54, 159 LAYERGLAZING, 275 composite components, 304 Lewis Research Center, 301, 327 ferroa]lo~rs, 15, 44-45, 55, 94, 138, 139, 177, 179, 189 Life extension strategif:st 216-217, 225-227, 281, 282 form of, 44-45 IJong-range order intf>rmetallic mat f>rials, 3 I 3-314 ]et”e] of, 42-44 Longyear, E. J., 208 manganese, 15, 44, 55-56, 177, 179 platinum group metals, 15, 57 Machiner}’ sector applications uses of, 44 ceramics, 294-296 Import \ulnerabilit\’ chromium, 65-66 ad~anced materials, 363 cobalt, 67, 80 alternatilre approach prospects, 331-335 definition, 61 extent of, 41 future materials requirements, 80 ferroalloy production and, 136 Madagascar, 141, 144-145 Go\’ernment role in, 4-5 Madison Mine, Missouri, 168, 170, 173, 355 nonfue] m inera] dependence, 42, 44-45 Magnets, 69-70, 101 problem of, 3, 5, 7, 41 Manganese reduction strategies, 3-5, 7, 11 applications, 13, 55, 71-72, 187 substitution strateg}r, 264 conservation, 27, 215, 218, 230, 232, 233, 235-238 In(;o consumption, 13-14, 55, 71, 72, 79, 80 chromium activities, 141 domestic production, 55, 126, 184-187 coba]t activities, 160-164, 175 ferroal]o~rs, 15, 44, 55, 154. 177, 179-180, 183, platinum group metal activities, 193, 194, 200” 187-190 rec~rcling actilrities, 225 foreign production, 126, 178-184 superal]oys acti~rities, 322 imports, 15, 44, 55-56, 177, 179 Inco Alloy Products Co., 281 over~riew, 55-56 Inco Alloy Products Research Center, 273 potential sources, 126, 181, 184, 209-210 Incone] allo}rs) 67, 322 processing, 26-27, 136, 187-190 1nco Research & Development Center Inc., 245-246 production, 15, 25-27, 136, 177-178 India, 141, 144, 178, 180, 181 prospects for, 180-181, 185-186, 189-190, 334 Indonesia, 162, 167 steelmaking use, 187, 227-237 Inmetco, 250 substitution, 27, 55, 290 In situ leaching, 132, 187 supply disruption, 15, 91-92 Interdependence, 105-106, 108, 110 Manganese metal, 189 Interlake, Inc., 145, 159 Mansfield, Mike, 110 International assistance, 358-360 Maraging steels, 68 International Council of Copper Exporting (;ountries Marcona Iron Mine, Peru, 162, 166 (CIPEC), 87 Marinduque, 165 International Development Cooperation Agenc~’ Marko Materials Inc., 316 (II)CA), 32, 165, 184, 358 Materials for Advanced Turbine Engine (MATE) International Harvester Co., 276-277 Program, 281 International Mineral & Chemical, 139, 178 Materials policy International Nickel Co., 322 congressional actions, 112-119 International Strategic Mineral In\rentory, 358 conservation and recyc]ing, 371-378 Ion implantation, 275-276 coordination issue, 105, 107, 109, 111, 117-118, 343 Iron aluminizes, 314 elements of, 104-105 I ronmaking, 235-236 formulation issues, 342-350 Isothermal forging, 25, 221 goal, objective, and priority setting issues, 343-347 mineral production and processing, 350-362 Japan, 293, 295, 298, 357, 368-369 National Commission on Materials Policy Johns Man\ille Sales Corp., 197 recommendations, 107-109 Johnson Matthey, 165, 192, 201, 240, 252 National Commission on Supplies and Shortages recommendations. 109-112 Kawasaki Steel, 141 Paley Commission recommendations, 106-107 Kennicott Copper, 200 research and development inventory issue, 347-35o responsibility for, 114-119 Ladle technology, 232, 236 self-sufficiency v. interdependence issue, 105-106 Larco, 175 statutory framework, 335-342 406 ● Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

substitution and ad~anced materials, 362-37 I Ni-Cal Technology Ltd., 171, 174 Materials program plan, 30, 172, 347-349, 360, 375 Nickel aluminizes, 313-314 Metallgesellschaft, 141 Nickel metal, 175 Metallurgic Hoboken Overpelt, 165 Ni(;ke] strike of 1969, 16, 94-97, 103, 257 Metallurg, In{;., 139, 141, 150 Nippon Mining, 163 Metal Matrix Composite Program, 308, 310 Nonconventional energy systems, 77-78 Metal matrix composites, 303, 308-310 Nondestructive e~aluation (NDE], 216-217 Metal Properties Council, Inc. (MPC), ‘274, 366 Noranda Mining of Canada, 168-170 Metals Reser\e Co., 150 Nerd Resources Corp., 147 Metaux Speciaux, 161, 164, 165 Mexico, 178, 181, 183-184 Oak Ridge National Laboratorlr ([lRNI.), 270, 272, Middleburg Steel & Alloys. 156 313, 319-320, 326, 327 Mine development, 130, 131 Obsolete scrap, 215, 218-220, 222, 224, 248, 249, 254 hlineral activity, 129-131 Ocean resources, 24. 26, 209-211 Minera] depletion, 84-85 Office of Management and Budget (OMB), 118-119, Minerals & Resources Corp., 193 339 Mining and Minerals Policy Act of 1970, 30, 114 Office of Science and ‘1’echnology Policy, White Mining technology, 128, 131-132, 153, 173, 186-187, Ilouse (OSTP], 30, 116, 118, 338 200-201 Ontario Research Foundation, 148 Nlintek (Council for Mineral Technology], 146 O1)en pit mining, 132, 153, 173 Missouri Lead Belt deposits, 168, 170, 173 Organic matrix composites, 304-305 Morocco, 164-165 Outokumpu Oy, 144, 164 Mount Isa Mines Ltd., 147 O\erseas Pri\ate Investment [corporation (OPIC], 360 hlulti]ayer ceramic capacitors (M1.CS], 76 Oxicie dispersion strengthened (ODS] superallo}’s, 281-282 National Aeronautics and Space Administration (NASA) paley Commission, 106-107 adkr a need materials ac tikr it ies, 299, 301, 306, 308, Palhdium, 14, 28, 72, 76, 79, 80, 190-191, 197, 200, 310, 311, 327 251, 253 research role, 30 Pal)ua New Guinea, 142, 1477 162 substitution activities, 34, 267, 272, 281, 282, 322, Parts life extension. Sef; IJife extension strategies 323, 363 Peru, 162, 166 National Bureau of Standards, 34, 217 PGMs, 146 National Commission on hiaterials Policy (NCMP), Philippines 107-109 chromium production and processing, 141, 143, 145 National Commission on Supplies and Shortages, (;obalt production, 160, 161, 165 109-111 Pittsburgh Pacific Processing Corp., 250 National Critical Materials Act of 1984 (Title II of Placer deposits, 131, 200 Public Law 98-373), 118-119, 338-340, 343, 346, Placer mining, 132 350, 369-370 Plasma arc reduction processes, 156 National Critical Materials Council, 118-119, 338-339, Plasma furnaces, 155-156 343-344, 350, 369-370 Platinum group metals (PGMs) National Defense Stockpile, 5, 96, 99, 102. See also applications, 13, 56, 72-77, 79, 80 Stockpiling conservation, 28, 57, 77, 215, 218-219, 239-245, National Laboratories, 34 251-253, 376 National Materials Advisory Board (N MAB), 48, consumption, 14, 44, 56, 72-80, 239, 240 185-186, 201, 209, 259, 366 domestic production, 57, 126, 190, 192, 196-201, National Materials and Minerals Policy, Research 354 and Development Act of 1980 (Public Law foreign production, 126, 192-195 96-479), 29, 30, 36, 116, 118, 335, 337-338, 343, imports, 15, 57 358, 375, 376 overt’iew, 56-57 National Materials Policy Act, 115 potential sources, 126, 195-200 National Materials Propert} Data Network, Inc., 366 processing, 137, 193, 200-201 National Science Foundation (NSF], 327, 342, 370 production, 15, 27-28, 137, 190-192 National Technical Information Service (NTIS), 365 prospects for, 335 Near-isothermal forging, 221 substitution, 28, 76, 243-244 Near-net-shape technologies, 24-25, 220-221, 227 supply disruption, 244-245 New Caledonia Political embargoes, 87-94 chromium production and processing, 141, 142, 145 Polyacrylonitri]e [PAN), 304 cobalt production, 161, 162, 165, 175 Polymer matrix composites, 304-305 Index ● 407

Siilt Z~itt[}l’ I ll(i Ll\t ri(’t)au, ;l, (;,, ] (i2 s:]]] ~:],, (;(),., ] :]\j< 1 ~[], ] []J Santini. James, I 11 S(:ott, I lu~k 1 1[) Sm;on(iar~ rf;f’in in:, 2 :\6 St!(;ond{iry $(; I’{ip, 215 S(;(;urity! of supp]~, 83 African ci~til disorcicr factors, 90-91 (Uanad ian ni(; ke] strik(~ of 1969, 16, 94-{)7, 103. 257 (;:1 rt[!ls i] fl[i, 86-87 (;()])i~}t [)ani(; of” 1978-79, 16, 63-64, 97-102, 257 dcrn an[i surge factors, 85-86 (~ [!p] et iu n of’ resou r[; es factors, 84-85 effects of disruptions, 102-104 So\ict emhargo of” 1949 and, 15, 91-92, 103, 104 So\iet resour(;e war factors, 87-90 [ ‘,S. emi)argo of Rhodesian chrnm ium and. 15-16, 92-94, 103. 104 Sec also Import Lulnerahilit}; Nlateria]s 1)oli(;~ St;lf-sllffi(:i[;rl(;}r, 105-106 Sherritt Gordon, 161, 163, 164 Shicldalloy Corp., 157-158 S i] i(;onla ngan[?sft, 55, 188-189 Sili(,on nil ri(lc (:[;ranli(:s, 295 S1, N. 165, ]75 So(:ictc (i(: ]i] ‘1’iehaghi, 141, 145 Soc;it;t} of AutonlotiIc I+; ngineers (SAfi), 328 408 . Strategic Materials: Technologies to Reduce U.S. Import Vulnerability

Solution mining, 132, 153, 187 processing, 135-137 South Africa production, 14-15, 136-137 chromium production, 139, 141, 145-146, 156 selection process, 51-52 cobalt production, 160, 165 supply prospects, 125-128, 132-135 manganese production, 178, 179, 181, 184 vulnerability of, 48-51 platinum group metals production, 190, 195 See also Chromium; Cobalt; Manganese; Materials strategic materials production, 14-15, 19, 26, 27 policy; Platinum group metals Soviet Union Strategic Materials Act, 112 chromium and manganese embargo, 15, 91-92, 103, Submerged arc electric furnace, 154, 187-188 104 Subsidies and assistance, 30, 112, 126, 150, 167, chromium production, 138, 141, 146 171-173, 190, 340, 354-356, 360, 362, 370, 374 manganese production, 178, 179, 182 Substitution minerals policy, 105-106 alloy steel chromium, 276-277 nickel strike role, 96 chromium, 21-23, 63-66, 268-277, 279, 282, 284, 290, platinum group metals production, 190, 191, 194 366 Rhodesian chromium embargo role, 93, 94 cobalt, 25, 68, 69, 70, 99, 101, 279-284, 290 strategic materials production, 14-15, 19, 26, 27 criticality of materials and, 47 Stainless steel data collection and analysis, 34, 277, 318-319, advanced processing technologies, 66, 236, 274-276 365-366 conservation approaches, 218, 248-250 definition, 17 materials consumption, 80, 238 development stage, 366-368 materials substitutes, 270-274 institutional factors, 318-328 overview, 230 manganese, 27, 55, 290 qualification and certification of substitutes, platinum group metals, 28, 76, 243-244 319-320 policy options, 33-35, 365-366 recycling, 239, 240, 242, 248-250 prospects for, 266-268, 277-279 substitution, 268-276 qualification and certification, 319-323 Stationary engine applications, 301 research and development, 263, 267-268, 270, Steel 272-274, 281-284, 321-322, 363 classes, 229-230 role of, 263-264 chromite use, 66 stainless steel, 268-276 conservation approaches, 218, 227-238 superalloy, 267, 277-284 manganese composition, 71-72, 187, 227-232 viability factors, 265-266 maraging, 68 See also Advanced materials materials consumption, 80 Substitution information system, 34, 277, 318-319, processing efficiency, 232-237 365-366 process waste recycling, 250-251 Sumitomo Metal Mining, 165 tool, 68 Superalloy Stevenson-Wydler Technology Innovation Act of 1980 advanced processing technologies, 24-25, 220-221, (Public Law 96-480), 30, 119, 341-342 227, 257, 279-284 Stillwater Complex, Montana, 148, 151-153, 191, applications, 63, 67, 278, 281-284, 290 196-198, 354 composition, 277-278 Stillwater Mining Co., 197 conservation approaches, 219-227, 377 Stillwater PGM Resources, 197 fiber-reinforced, 308, 310, 311 Stockpiling, 105, 107, 110, 112-114, 117, 167, 172, future requirements, 79 173, 340-341 near-net shape processes, 220-221, 227 Strategic and Critical Materials Stock Piling Act of prospects for, 278-279 1946, 112 qualification and certification of substitutes, Strategic and Critical Materials Stock Piling Revision 320-323 Act of 1979 (Public Law 96-41), 30, 45, 113, rapid solidification process, 316 340-341 recycling, 24, 37, 101, 221-225, 227, 257, 377 Strategic materials substitution, 267, 277-284 changeability factors, 57-58 Surface deposits, 131 conservation prospects, 254-259 Surface mining, 132 criticality of, 46-48 Surface treatments, 274-276, 282, 305, 310 definition, 11, 45, 51 Synthetic fuels, 78 first-tier production and processing, 136-137 geology, 128-129 Tambao, Upper Volta, 181, 184 legislative policy guidance, 29-30 Technological approaches mineral activity, 129-131 characteristics of, 17, 19 -—

Index . 409

chromium, 19-23 Twin Cities Research Center, 174 {;oba]t, 23-25 200 series stainless steel, 71 components of, 17 300 series stainless steel, 270, 272 conser~ration, 36-37 implementation of, 29-31 Uganda. 162 manganese, 25.27 Underground mining, 132, 153, 173, 200 mineral product ion and metal processing Union Carbide, 139, 141, 145, 147, 184, 304, 320 a 1 tern at ilws, 31-33 United States Steel, 167, 178, 183, 230 platinum group meta]s, 27-28 United Technologies, 308 policj options, 4 UN. Re\~ol\,ing Fund for Natural Resources prospects for, 331-335 Exploration, 360 substitution alter nati~’es, 33-35 Upper Volta, 181, 184 Tenelon steel, 230 Urucum Mineraco S, A., 182 Thermal barrier coatings (T13CS], 282, 310 U.S. Army Tank Autornoti\re Command (TACONI) Titanium aluminizes, 314 program, 299 ‘1’()(}] st~!els, 68, 275 U.S. Geological Sur\e\’, 192, 195, 209, 358 ‘1’0}0 Soda, 158 [Jtah International, 183 ‘1’o~’ota h!otor Co., 308, 312 Trade and I)e~relopment Program (TI)P], 32, 165, 166, i’acuurn melting processes, 222, 224 184 \Tale do Rio Doce (CL’RD), 178, 183 Transport at ion lrehicle applications. See Automotive applications chromium, 144-147 J’ein deposits, 131 Cot):]lt, 137, 160, 163, 164, 166 \roest-Alpine, 156 manganese, 178, 180, 181, 183, 184 J’ulnerabilit}r of suppl}’, 48-51 platinum group metals, 137 \’ul nerability of, 127 Watt, James B., 45 Transportat ion se(;tor a})plications Wear applications, 295-296 ceramics, 297-301 Western ILlining, 161, 163 chromium, 62-64 11’estern Platinum, 146, 165, 193-195 COt)alt, 67 Westinghouse, 156, 301 definition, 61 World resource depletion, 84-85 platinum :roup meta]s, 72-74 Wright-patters[jn Aeronautical ].aborat[)r}r, 226 Sce also Automobile applications; Aiiation a p p] ic a t i o ns Yugosla~’ia, 139, 143 Trans,aal Consolidated, 139 ‘1’rans~aal Nlining. 139 Zaire, 159, 160, 165-166, 174 Trident hlining & Industrial Corp., 145 Zairian cobalt panic of 1978-79, 16, 63-64, 97-104, 257 Trimming, 230 Zambia, 159, 160, 166, 174 ‘1’rurnan, Harr-}, 106 Zirnbab\\e, 139, 141, 147 ‘1’ungsten fiber-reinforced superallo~ (TFRSI, 310, 311 Zimbabwe Mining & Smelting Co., 147 ‘1’Llri)(](:h:]rgers, 290, 298 TLlrkej’, 1 :]CJ, 1 ~’1 , 1~fj-147