The Economic Aspect of Geology

by C. K. Leith

In the United States about 85 per cent of the production, or one-third of the world's production, comes from the Lake Superior region, a large part of the remainder from the Birmingham district, Alabama, and smaller quantities from the Adirondacks. For the rest of the North American continent, the only largely producing deposit is that at Belle Isle, Newfoundland, which is the basis of the iron industry of eastern Canada. Cuba supplies some ore to the east coast of the United States.

In Europe there are only three large sources of high-grade iron ore which have heretofore been drawn on largely,—the magnetite deposits of northern Sweden, the hematites and siderites of the Bilbao and adjacent districts of northern Spain, and the magnetite-hematite deposits of southern Russia. The first two of these ores have been used to raise the percentage of iron in the low-grade ores which are the principal reliance of western Europe. The Swedish ores have also been necessary in order to raise the percentage of phosphorus and thus make the ores suitable for the Thomas process; on the other hand the Spanish ores and a small part of the Swedish material have been desired because of their low phosphorus content, adapted to the acid Bessemer process and to the manufacture of low-phosphorus pig. The Russian ores have largely been smelted in that country.

The largest of the western European low-grade deposits is a geographic and geologic unit spreading over parts of Lorraine, Luxemburg, and the immediately adjacent Briey, Longwy, and Nancy districts of France. The ores of this region are called "minette" ores. This unit produces about a fourth of the world's iron ore. Low-grade deposits of a somewhat similar nature in the Cleveland, Lincolnshire, and adjacent districts of England form the main basis for the British industry. There is minor production of iron ores in other parts of France and Germany, in Austria-Hungary, and in North Africa (these last being important because of their low phosphorus content).

Comparison of figures of consumption and production of iron ores indicates that the United States, France, Russia, and Austria-Hungary are self-supporting so far as quantity of materials is concerned. Certain ores of special grades, and ores of other minerals of the ferro-alloy group required in steel making, however, must be imported from foreign sources; this matter has been discussed above. Great Britain and Germany appear to be dependent on foreign sources, even under pre-war conditions, for part of the material for their furnaces. During the war there was considerable development of the low-grade English ores, but this does not eliminate the necessity for importing high-grade ores for mixture. Belgium produces a very small percentage of her ore requirements and is practically dependent on the Lorraine-Luxemburg field.

The principal effect of the war on iron ore production was the occupation of the great French mining and smelting field by the Germans, thereby depriving the French of their largest source of iron ore. Since the war the situation has been reversed, France now possessing the Lorraine field, which formerly supplied Germany with 70 per cent of its iron ore. As the German industrial life is largely based on iron and steel manufacture, the problem of ore supplies for Germany is now a critical one. It has led to German activity in Chile and may lead to German developments in eastern Europe and western Asia, particularly in the large and favorably located reserves of southern Russia. It seems likely, however, that arrangements will also be made to continue the export of ore from the Lorraine field down the Rhine to the principal German smelting centers. France needs the German coal for coking as badly as Germany needs the French iron ore. The Rhine valley is the connecting channel for a balanced movement of commodities determined by the natural conditions. These basic conditions are likely in the long run to override political considerations.

The Lake Superior deposits, the Swedish magnetites, the Spanish hematites, and the Russian ores carry 50 to 65 per cent of metallic iron. The Birmingham deposits of southeastern United States, the main British supplies, and the main French and German supplies contain about 35 per cent or less. It is only where ores are fortunately located with reference to consuming centers that the low-grade deposits can be used. For outlying territories only the higher-grade deposits are likely to be developed, and even there many high-grade deposits are known which are not mined. The largest single group not yet drawn on is in Brazil. Others in a very early stage of development are in North Africa and Chile.

World reserves and future production of iron ore. The average rate of consumption of iron ore for the world in recent years has been about 170 million tons per year. At this rate the proved ore reserves would last about 180 years. If it be assumed that consumption in the future will increase at about the same rate as it has in the past, the total measured reserve would still last about a century. These calculations of life, however, are based only on the known reserves; and when potential reserves are included the life is greatly increased. And this is not all; for beyond the total reported reserves (both actual and potential), there are known additional large quantities of lower-grade ores, at present not commercially available, but which will be available in the future,—to say nothing of expected future discoveries of ores of all grades in unexplored territories. Both geological inference and the history of iron ore exploration seem to make such future discoveries practically certain. Iron ore constitutes about 4 per cent of the earth's shell and it shows all stages of concentration up to 70 per cent. Only those rocks are called "iron ores" which have a sufficiently high percentage of iron to be adapted to present processes for the extraction of iron. When economic conditions demand it, it may be assumed that iron-bearing rocks not now ordinarily regarded as ores may be used to commercial advantage, and therefore will become ores.

Not only is an indefinitely long life assured for iron ore reserves as a whole, but the same is true of many of the principal groups of deposits.

The question of practical concern to us, therefore, is not one of total iron ore reserves, but one of degrees of availability of different ores to the markets which focus our requirements for iron.

The annual production of ore from a given district is roughly a measure of that ore's ability to meet the competitive market, and therefore, of its actual immediate or past availability. Annual production is the net result of the interaction of all of the factors bearing on availability. It may be argued that there are ores known and not yet mined which are also immediately available. On the whole, they seem to be less available than ores actually being produced; otherwise general economic pressure would require their use and actual production.