SUMMARY
The chief uses of lead are as metal and in the form of white lead or basic carbonate, as a pigment. Metallic lead is used for water pipe, covering for electrical cables, lining acid chambers and vats, and for shot, bullets and shrapnel. Alloys with various other metals are used in type, bearings, and fuses. The red and orange oxides are used for pigments. The largest single form of consumption is white lead.
Lead and zinc ores are commonly associated and are widely distributed over the world. Galena is the chief lead mineral, the other ore minerals, cerussite and anglesite, being derived from it by oxidation. Galena is a persistent mineral, being found in nearly all types of ore deposits. The countries producing the most ore are, in order of importance, United States, Australia, Spain, Germany, and Mexico. Districts of major importance are Broken Hill, New South Wales; southeastern Spain; southeastern Missouri; and Coeur d’Alene, Idaho.
The developments in selective oil flotation, by which the detrimental zinc content is eliminated from complex ores and made an asset, constitute the greatest recent advance in the dressing of lead ores. Electrolytic refining is the greatest recent advance in the metallurgy of lead.
The readiness with which lead is reduced from its ores and its utility as a collector of the precious metals in smelting have resulted in a wide distribution of reduction plants. Nevertheless a large percentage of the world’s output of ores is transported from the countries of origin to others, for reduction near the market and where skilled labor and fuel are more abundant and cheaper.
The countries of largest smelter production are, in order, United States, Spain, Germany and Australia; those of much less importance are Mexico, Belgium, Great Britain, France, Austria-Hungary, Italy, Greece, Canada and, recently, Burma. Other countries are of little importance.
The countries of major consumption are, in order, United States, Germany, Great Britain, and France. The United States produces its own requirements, but the other three countries import ores for smelting and also pig lead in large quantity. Australia and northern Africa have supplied the bulk of the ores, and Spain, Australia, and Mexico most of the pig lead. This is the situation at last analysis, the actual trade movement being, of course, much more complex.
The political control of the world’s lead production, in terms of the lead content of ores, in 1913 was as follows: United States, 36.0 per cent.; British Empire, 23.9 per cent.; Spain, 6.4 per cent.; Germany, 5.9 per cent.; Mexico, 5.1 per cent.; and France, 4.0 per cent. Three powers thus control 76 per cent. of the production.
The ownership of mines is important chiefly as determining the distribution of ores to smelters. Ore-purchasing contracts may modify or annul the effect of political jurisdiction and mine ownership. The ownership or control of reduction plants has been the most effective basis for commercial control of the industry. In the United States the American Smelting & Refining Co. dominates the market, but controls directly only one-third of the output. In Spain the French company of Penarroya controls more than half the production. In Germany the “Trio” headed by the Metallgesellschaft controlled the domestic industry prior to the war, and through the “Lead Convention” extended its domination to half the European output and most of the exports of Australia, Mexico, and the United States. This control was, however, never absolute. In Australia at present the Broken Hill Associated Smelters controls the marketing of most of the pig lead exported.
Joint political and commercial control has been established in the British Empire and France. During the war, political jurisdiction was quite generally invoked to modify or eliminate commercial control, particularly with regard to alien-enemy interests.
The various combinations of British companies to insure British control of the resources of the empire, particularly of Australia and Burma, culminated in the formation of the British Metals Corporation for the sale of the output. A representative of the Imperial Treasury will be on the board of directors and either the Metal Bank of London or the Chemical & Metallurgical Bank may finance its operation, unless it absorbs their functions. This organization is doubtless intended to take the place of the Metallgesellschaft as the dominant factor in the lead industry of the world. It will have much influence, as British capital controls all the production of the British Isles, Australia, Burma, Canada, and normally Siberia, most of that of Italy, part of that of Spain and Mexico, and perhaps of Greece. Probably the British Isles will not in the future desilverize as much foreign lead as formerly, so that the importance of this basis of commercial control will be greatly decreased.
The Société Minerais et Metaux, comprising all producers controlled by French capital, under government auspices is selling and purchasing agent for its members, and controls all the French and most of the Grecian production, more than half of that of Spain and Belgium, besides the ores of northern Africa and of Egypt.
Since the elimination of alien-enemy holdings by the Alien Property Custodian, United States capital controls substantially all the domestic production and nearly all that of Mexico, besides some ores imported from Mexico, Canada, and South America. Notwithstanding large ore reserves and reduction capacity, the United States is expected, after the period of readjustment, to supply its domestic needs, but to export little lead, as was the case prior to the war.
The position of Germany will depend largely upon arrangements for foreign ore supply. Some Mexican ore production may still be under German control. Belgium is wholly dependent on foreign ore, which presumably will be obtained largely from Australia; and with more than half her production controlled by French capital, she will be under British and French domination; but she consumes most of her smelter output. Italy consumes 50 per cent. more than the domestic production, which is chiefly controlled by English capital. None of the states formed by the disintegration of the Austro-Hungarian Empire will be of importance in the lead industry.
The commercial control of the smelter production of lead, calculated from the latest statistics available, is approximately as follows: United States, 48.6 per cent.; British Empire, 17.2 per cent.; Germany, 15.3 per cent.; and France, 12.7 per cent.; or a total for the four powers of 93.8 per cent. of the pig-lead output of the world.