Although no definite data are available, it is believed that Ceylon can not produce much longer at the present rate, and it is possible that the virtual exhaustion of the deposits is not far distant. Madagascar is capable of greatly increased production. It is doubtful if American deposits with less than 5 per cent. graphite will be able to meet free competition from Madagascar, where over 20 per cent. of the rock as mined is graphite. Too little is known of the Greenland and Brazilian deposits to hazard a guess as to their future importance, but it is reported that immense reserves exist in Greenland. The German flake deposits will hardly survive free competition from Madagascar, unless modern methods are introduced. Amorphous graphite will probably be chiefly produced, as at present, by Austria, Bohemia, Mexico and Chosen. Mexico and Chosen are likely to supply most of the pencil graphite of the world. Increased production of artificial graphite may reduce the demand for amorphous graphite. In 1918, notices in the German technical press told of the discovery of immense deposits of flake graphite in Roumania. These were to be worked jointly by the German and Austrian governments under a 75 year lease from the Roumanian government. The outcome of the war of course annulled this arrangement.
Vein graphite (that is, Ceylon graphite) is preferred for crucible manufacture, but increasing amounts of flake are being used successfully. European manufacturers seem to use flake almost exclusively; and American manufacturers will no doubt find it possible, if necessary. Increasing amounts of amorphous graphite are being employed for various industrial uses, chiefly foundry facings. The development of the electric steel furnace, by reducing the use of crucibles, may tend in some degree to reduce the difference in value between crystalline and amorphous graphite.
POLITICAL AND COMMERCIAL CONTROL
Amorphous graphite is so widely distributed that no serious difficulty is likely to be encountered by any of the great commercial nations in filling their vital needs. Mexican graphite is the chief supply of good material for pencils. Interest centers in the material capable of being made into crucibles.
Crucible graphite has been produced in the past mostly in Ceylon. Its granular form (characteristic of vein graphite) has been assumed by crucible makers to be the best. The deposits are worked mostly by small local owners in Ceylon, and the output is controlled by the British through state sovereignty and shipping. Control by ownership and operation with modern plant was attempted by an English company, but met native opposition until a few years ago.
Recently Madagascar flake graphite has largely replaced Ceylon material in European practice. This deposit is under French sovereignty and the French exercise a large degree of commercial control. The flake graphite of the United States has not yet reached a high development. There are large reserves of schist with about 5 per cent. graphite. Bavarian material is crystalline though not of such good quality. It is under German control. Prior to the war, mining and milling methods were primitive, and the product correspondingly poor. Canada, Norway, Sweden, Greenland, Brazil and possibly others have reserves of flake within their boundaries. Japan has a small production of flake graphite and controls a supply in Chosen.
American control of Mexican mines brings the entire Mexican output to this country for refining and re-export. One of the large Canadian mines is also owned in the United States.
When the British supply in Ceylon declined and the Madagascar production increased, the British, who had always controlled the world’s main supply, did not readily relinquish control. They bought a large part of the Madagascar product and have a concentrating plant on the island. The Morgan Crucible Co., of London, operates on the island as the French company “Graphites Maskar,” but this is a subsidiary of the London company and the control is entirely British. This is not the only plant, however, working on the island. One large company before the war had its main office in Hamburg, Germany, one at Antwerp, and there were several French companies. Some Austrian mines were owned by Belgian companies prior to the war, and English interests own a part of the Italian deposits.
During the war the French and British, having adopted the Madagascar graphite successfully, apparently arranged an agreement by which that supply should be used in Europe, while Ceylon graphite was sent mostly to the United States. The control was only possible by a combination of British and French, apparently a commercial rather than a political matter, though subject to government control.
There appears to be a combination among Madagascar graphite producers, as evidenced by a statement from the consul in Tananarive in November, 1918, that the “Union des Producteurs de Graphite” could furnish to this country annually 15,000-20,000 tons of 85 per cent. graphite at a definite price, f.o.b. Tamatave. The object of the combine appears to be to protect producers against unfair practices of the manufacturer.