End-uses for metallurgical grade chromium and ferrochrome range from jet engine blades to sterile hypodermic syringes; almost any application demanding corrosion resistance. Among the most important of these are: Environmental control equipment: Almost without exception, pollution abatement equipment includes stainless steel components. Developments of automotive catalytic conversion systems or steam-powered transport would axiomatically require large amounts of high chromium steel. Power generation: Without exception, nuclear power plants utilize stainless steel in reactors, boilers and related equipment. Conventional power generating facilities also employ stainless for critical applications. Transportation: Chromium is essential in jet engine production and is critical in most other aerospace requirements. Corrosion-resistant alloys incorporating chromium are also necessary for manufacture of railroad cars, construction equipment and ships. For rail rolling stock alone, demand for stainless steel could raise anticipated demand for chromium by 10 percent by the year 2000. 8 Food Processing: Due to its surface finish and corrosion resistance, stainless steel is ideal for numerous applications in the food processing industry. Uses range from storage tanks for beverages to sanitary production machinery. Chemical and petroleum production: The oil, gas and chemical industries utilize large amounts of chrome-bearing alloys. Pumps, tools and tanks generally include high-chromium stainless. Production machinery employs alloys containing chromium in many critical parts. 8 Id. at 258-59. Home appliances and equipment: While important by commercial standards, the home products market (tableware, appliance trim, etc.) accounts for less than 6 percent of the end-use applications of chromium in the United States." Anticipated growth of chrome-bearing metals is strongest in the machinery and equipment area, followed closely by construction and transportation requirements. Transportation applications alone will demand more than 182,000 tons of chromium in the years 2000-double the current level." Overall consumption trends indicate the United States will need over 1.1 million tons of chromium per year to fill the demand by 2000. All of the United States demand is currently met by imports." These estimates could be revised upward, depending upon pollution control requirements and transportation needs. AVAILABILITY CHROMITE No chromite ore has been mined the United States since 1961.12 This country is totally dependent upon imports and the national stockpile as a source of supply. Without large government subsidies or revolutionary technological breakthroughs for processing low-grade domestic material, the United States will continue to be dependent upon foreign sources until at least the 9 Id. at 259. 10 Id. at 258. 11 Id. at 261. 12 In 1961, a small amount was produced under the Defense Production Act. Prior to 1961, total domestic production recorded since chromite mining began in the 1800's totaled approximately 2 million short tons. The bulk of this was produced under government assistance during the emergency periods between World War II and the Korean War. Stockpile requirements were fulfilled between 1951-1958 only by a government purchasing policy paying premium prices. Bureau of Mines Bull., 248. While precise statistics on world production of metallurgical grade chromite ore are not publicly available, production of all types of chromite is as follows: The following factors should be considered when analyzing these statistics: 1. Of the leading steel-producing nations, only the U.S.S.R. is self-sufficient in chromite supply." 2. Of South African production nations, only about 6 percent is high quality metallurgical grade ore.1 16 3. Turkish metallurgical grade chromite reserves are being depleted at a rapid pace. Further, over 2.6 million tons of Turkish metallurgical chromium have been committed to Japanese interests during the next 10 years." 14 Id. at 248. 15 Id. at 251-52. 16 American Metal Market, October 19, 1972. 17 United States Department of the Interior, Bureau of Mines Minerals Yearbook; 1971 (hereinafter cited Minerals Yearbook). 4. Bureau of Mines estimates of Rhodesian chromite production from 1966 to date appear to be understated. According to other sources, Rhodesian mineral production continued to increase during the sanctions period. The Journal of Commence, for example, reports that, "Since 1964, the year before unilateral independence, the mineral production index has gone ahead 58.2 percent. Mining and quarrying last year contributed 6 percent of the total Gross Domestic product; the volume of mineral production rose 9 percent. . .".18 1972 was also a good year for Rhodesian mining. "Despite depressed base mineral prices, especially for nickel and copper, the value of mining output rose 6.7 percent to reach R$108m, double the country's 1964 pre-sanctions output. Production of copper, chrome, nickel and gold showed significant improvements in value." Chromium appears to have been a leader in the improved Rhodesian mineral production. "Chromium mines owned by Union Carbide and Foote Mineral which once supplied some 40 percent of the U.S. requirements for metallurgical chrome are now being operated by the Smith regime. Rhodesia ships a third of the ore to Red China. . . ." 20 In 1970, the Rhodesian Secretary of Mines declared chromium exceeded pre-sanction production levels." By 1974 mining output had jumped again, and is now in excess of R$160m." U.S. Stocks of Chromite 21a Government Stockpile: Since 1962, the national stockpile of metallurgical grade chromite has declined over 60 percent and is currently at the lowest level in 20 years. The apparent size of the stockpile is further diminished by the fact that 20 percent of available inventories are officially classified "non-stockpile grade" -These inferior stocks cannot be economically used to produce 18 The Journal of Commerce, June 19, 1972. 21 The Star Johannesburg, February 20, 1973. 21a See The Journal of Commerce, March 26, 1975. |