Reprinted from MINING CONGRESS JOURNAL, July 1972 Summary of the First Annual Report of the Secretary of the Interior Under the Mining & Minerals Policy Act Secretary of the Interior Rogers C. B. Morton has submitted to Congress the first of annual reports required under the Mining and Minerals Policy Act of 1970. Enactment of that Act was significant evidence of an awareness that a national policy on minerals had become an absolute necessity. The Secretary's first annual report confirms this for it presents factually, more than any report to date, the alarming state of the nation's minerals posture and signals the dire and deteriorating position in the years ahead unless a life-saving policy is adopted and activated. What has happened and where are we headed? The report reveals this position: • Development of mineral resources in the United States is failing by far to keep pace with rapidly expanding demand with consequent alarming increase in dependency on foreign sources for its essential mineral needs. • In 1970, domestic mineral production fell $8.6 billion short of primary domestic demand, having risen from about $2 billion in 1950. • Conservative projection indicates Avoidance of these consequences can be accomplished only by greater domestic mineral production from the resources that are available. This will require a national policy that will create an atmosphere designed to encourage investment in exploration for and development of mineral resources and facili ties to recover and process them. Such policy and atmosphere are needed if the nation is to avoid the pitfalls of complacent dependency on foreign sources and its inevitable uncertainties with respect to national and industrial security. The necessary atmosphere does not presently exist. Without it, the prospects of securing future mineral needs on a sound basis are negligible. The necessary policy which can lead to the required atmosphere may be in process of evolu tion. The Mining and Minerals Policy Act of 1970 and the revelation in the Secretary's first annual report of the emergent need for action to implement the Act's purposes form a foundation from which the necessary policy and atmosphere can rise. The Secretary's report is a document so significant to the future welfare of the nation that it should be studied by all who believe that in large measure that welfare will depend on a sound and stable minerals posture. The summary of the report-prepared by the American Mining Congress Staff-which follows may be helpful in appreci ating the far-reaching and vital inferences it contains. J. Allen Overton, Jr. President American Mining Congress Processed materials have $150 bil lion value The contribution of minerals to the national economy can be measured in terms of their impact on the 1971 GNP of $1 trillion plus, as depicted in fig. 1. Fig. 1 indicates that domestically extracted mineral raw materials in 1971 represented a value of some $30 billion. The value of reclaimed metals and minerals was $2 billion and that of raw mineral imports over $4 billion. When processed into energy and other forms of first use, these materials of mineral origin had a value in excess of $150 billion annually. It is impossible to Energy demand doubled since 1950 This doubling demand effect for energy is depicted in tig 2 which shows energy requirements jumping from nearly 34 quadrillion Btu in 1950 to 69 quadrillion Btu in 197; A breakdown of this total reveals that while demands for coal and hydropower have been fairly constant. demand for natural gas has tripled and demand for petroleum has doubled. To help support these demands. domestic production of natural gas trebled and petroleum about doubled during the past 20 years as indicated in fig. 3 Despite this, there has been a growing reliance on imports, particularly in the case of petroleum Currently, imports of crude oil and renned products amount to 25 percent of the domestic demand whereas in 1950 they were only 14 percent Imports of natural gas still remain smail, but there has been a steady increase over the years Conversely. in 1971 exports of coal and coke valued at about $1 billion helped to offset costs of imported minerals The growth of domestic uranium mining is traced in tig 4. Stimulated by the AEC's procurement program. uranium production reached a high point of nearly 20,000 short tons in 1960 Imports also peaked out around this time because of procurement contract terminations by the AFC, a ban on imports and relatively low industrial demand. Domestic demand for metals tripled The report states that domestic demand for metals tripled from 1950 to 1971, accounting for 28 percent and 36 percent of total mineral demand in the respective years The most important measure of industrial activity and strength is the pro USES |