Document 1gEx5ZBavvNRdyQVyZRm3K3Od

u jinn % mmmmm LXA16AAA k jgtfiirii n > LEAD INDUSTRIES ASSOCIATION *J0 LOmOTON AVIMUI NSW VOftK 17, M* V. I i izxo ffiorocTiog nr mncot austealia amp mnovmfux* L. H. B4rtt rvxldtnt tn^Lnur kmricMii SMltinc tad Hafininf C# i i i I f QUESTIOKSi 1. To what extant will tbs current eaabined natal price of 21t-l/2# par lh. effect lead and tine production ; In poor area} 2. What, If any, reduction in O.SJU nine production tonnage of laad la 1952 In your area waa due aolaly to the drop la the price of pig lead? 3. So you halleve that a continuation f the present level cf lead, that la to aay 13-lUf, over 1953 will reault in a aarloua drop la laad production In your area? If ao, whan In your opinion will a sub{ rtantial eurtailaant in laad beeeea apparent? Xy oaseents relative to the three quaati one for consideration heftre this panel, apply to lead and xlnc production In Mexico, Australia and Pawfoundland. Since the subject of Australian preduction will be covered In aore detail by another speaker, I will refer only broadly to operations with which I m particularly fajj liar naaely; at Jtt. Isa and West Australia, Question 1 pertains to the effect of the current eocblned natal prloa of 21*1/24 (per pound daceStic) upon production. In general, it appears that tkla prloa will not cause an important drop In production. * Alaoet all Mexican propertlee contain an lnpcrtant credit In gold and silver, while both the Kt. Isa and Buchans eree are not only above average grade, but each carries an important copper aatal credit. In all probability the gold and silver credits will bold without change la Mexico, but at both Mt, Isa and Buchans, a softening In the copper prloe would re serve sobs of the cushion that helps to carry the load at these properties. It la alto important to not# that taxes decrease as profits fall, and this also helpe to #keep up production on a narglnal aarket, s Presented at the 25th Annual Meeting cf the Lead Industries Associeties April 9-10, 1953* White Sulphur Springs, W. Wa, IWWfPPJWMI mmm*: 4 N 3360 ! VMW fP jj! i pi'^ J fw e w a y i u p w es n w emn i"M W w pwWWTism**ien muffiw w w im jpwpiwiupmapii1 pj,w.w^piMiiii)i.ti!.ii>i! i.iBPPPB^p^piiwjr^MppH|p^|f LI A 16445 mm "" -- -r'Vilrhi ri nfl, ' il . . Lead Production In Mexico, Australis cad Sewfoundlaad l U HBart Kfr.rtKeless, the raryln of profit In ill of these esses obviously will be effected by ft continuation cf low netal price*, cod while there 1* no incentive te Ion* continue produrtlcn cr. a marginal profit basis, the alternative of dosing down ft Kin* 1 avoided ft* long ** pojalfcle because of shut-down east*, scattering of p* r*ennel, end other things. These cp.idi tiers usually le*d to greater eeleetlwIty toward Moping hirher grade ore reaenres, md cutting down development work. This practice, which Is injurious to cost tiros, usually result* a* a human factor, t without a declaration of policy. These adjustments automatically reduce the labor requiresents *nd in likely to be accreparied by ft tendency t* defer replaceoect of separations, wherwrer this Is possible. Under these conditions, improved effici i ency, both la later and use of materials, nay be expected. The net overall recall cf all these factor* 1* a probabl* gradual tapering off of output. In answer to Question 2, there wae no significant drop in laid production Airing 1952, la Mexico, Australia or Mewfoundland. Question 3 pertains to whether or not long oentinnetlan of current prices will precipitate a serious drop In lead production. I believe this question was answered under Question 1 above, wherein only a modest decrease Is anticipated which will become effective gradually and perhapa not exceed an overall 10JC rwdnotlco in lead output in the areas considered. This trend 1* already noticeable and the full extent of production decrease should be apparent within the next two or three Moths. 9 Oppositely, it wight be observed that had the early 1952 price* continued. It is probable that production in these area* would have been very substantially expanded by this ties. ! QGZSTXOIi b Which natal carries the greatest affect on overall natal production? Tot example, if la ad should improve in price and tine decline further, and yet combined netal* stay at the sane level, would this be apt to increase cr decrease production? This queetion pertains te the relative worth of lead and tine to a miner of cewplex ore containing these metal*. The answer is tied to a comparison of the economic return on these wetol*. As a startir-g basis, the net value te a producer f.e.b. as*Iters, at 10# per pound for each netal in an assisted average concentrate. Indicates that the fine return 1* approximately 37J of the combined metal return. At 12-1/2# per pound for each wetal, the line return is 395 of the total, and at 15#, the tine return 1* LCX of the total return. These retie* are baaed on average open eettlement sohedul** of a number rf lead smelter* and several types of tine smelters, Since the metal content in the average sine concentrate is less than that in an average lead concentrate, the effect of freight and vther handling coct* of the cancentrat** will b* proportionately greater on tlno than lead, and this causes a further spread in the economic return of the two ratal*. With this general basis fact in mind, the variation* which fit any individual eas* may be visualised. As as 3 axanple, if an ore contains an equal amount of tine and laad, and the recoveries are approximately th* sere, and tere coat of handling concentrate to anelters Is aeaumed, with lead at 15# And tino at If#, the tine worth would be about 25.6(1 of th* combined metal value. This combined value 1* only slightly greater (6.A5#) this th* combined return when both metals are priced at 12-1/2#. Therefore, prio* varlam within this range would have little effect on production. vewyisrt'i1 sewwMMWPy.Mjw jaiwiewinwjsiyiii. iLx^jPVW u.vwwpsyvejraewwieipeBy ii mmmm wwwwwm i in ..| 'j'fif 'j _ LIA16446 0H 1 '0 Lead Production in Hajdooj Australia ad >ewfoupdland 3" I* Hi Hart Obviously, ths broad general conclusion la that tha eoonoaio worth of tlno In eceplex ora la far lass par unit than lead. Hcwevar, difference la tha prloa of tha two attala; dlffaranca In tha natal content of tha oraaj dlffaranca in will rscc-rtrltt and dlffaranca in tha handling coat ef concentrates to shelters, all have a tearing upon tha relative nat worth. In thia respect It si/ ba Interesting to nota that world sdna production of line la considerably greater than world wine production of laad today - in other words, there are acre alnaa In which dno output exceeds lead than those la which laad output exceeds tine. I sa not prepared to discuss tha cauaaa ef tha basic variations defined above, other than to point out that the refining and aarfcctlng of sine involves lower ef ficiency freeoverlss) and greater coats than are obtained In refining and aarketing lead. i i. i .1 t |ij^i^JWjU|BWpapi^!i|Bg|jygppw>l>PI!f^ii, IWM.mi.Wi!iijpvm^ a^p>,|>iMW|>^a^ppBpwa^p!pciww- \