Professional Documents
Culture Documents
Global 2nd Edition Mike Peng Solutions Manual
Global 2nd Edition Mike Peng Solutions Manual
Solutions Manual
Visit to download the full and correct content document:
https://testbankdeal.com/download/global-2nd-edition-mike-peng-solutions-manual/
GLOBAL 2nd Edition Mike Peng Solutions Manual
Chapter 2
UNDERSTANDING FORMAL INSTITUTIONS:
POLITICS, LAWS, & ECONOMICS
Learning Objectives
After studying this chapter, you should be able to:
1. Identify two types of institutions.
2. Explain how institutions reduce uncertainty.
3. Identify the two core propositions underpinning an institution-based view of
global business.
4. List the differences between democracy and totalitarianism.
5. List the differences among civil law, common law, and theocratic law.
6. Articulate the importance of property rights and intellectual property rights.
7. List the differences among market economy, command economy, and mixed
economy.
8. Explain why it is important to understand the different institutions when doing
business around the world.
Chapter Summary
This chapter takes an in-depth look at the institution-based view. After discussing what
institutions do and how they influence global business, we look at three types of formal
institutions: political systems, legal systems, and economic systems. As we discuss
political systems, we look at the difference between democracy and totalitarianism and
discuss political risk. In the section on legal systems, we discuss the differences among
civil, common, and theocratic law and discuss property rights (including intellectual
property rights).
This case can yield many questions for class discussion. Should the government have
simply used the FDIC to protect depositors while allowing the failing banks to go under
and be taken over by other private banks? Did the drastic actions taken in the U.S. and
overseas to deal with the crisis actually stimulate more fear on the part of the public and
business community? If so, did that fear result in reduced business investment and
consumer spending which in turn produced a far greater economic downturn than would
otherwise have been the case? Did the events of 2008 (as well as those in 2009 not
covered by the case) mean that our economic system has been changed permanently – or
temporarily?
_______________________________________________________________________
LESSON PLAN FOR LECTURE
_______________________________________________________________________
Outline and Suggested PowerPoint Slides
Learning Outcome PowerPoint Slides
Learning Objectives Overview 2-3: Learning Objectives
LO1 4: Institutions
Identify two types of institutions. 5: Two Types of Institutions
6: Two Types of Institutions – Formal
Institutions
7: Two Types of Institutions – Informal
Institutions
POLITICAL CONTROL
Political control of the lead resources of the world up to the outbreak of the war in 1914 seems to have been
a minor factor in the industry, and to have made itself felt chiefly through imposition of protective tariffs or
bonuses designed to stimulate domestic production, smelting, and refining. Such measures resulted in the
establishment of lead smelting in British Columbia and were an inducement to the development of the Altai
district of Siberia. As will be described later in detail, the growth of international commercial relations had
permitted the establishment by German interests of organizations which, although not all-inclusive, gave
effective control of the industry.
During the World War, however, political jurisdiction was largely invoked to restore control of national
resources to citizens. This movement was particularly marked in the British Empire, where there now exists a
joint political and commercial control. Alien interests have been eliminated by governmental action and the
government retains a share in the control through its interest in marketing organizations or its financial
participation in reduction works. In France, the consortium Société Minerais et Metaux, organized by
government action, is the arbiter of the industry and comprises all the important French companies both at
home and abroad. In the United States the Alien Property Custodian was active in eliminating all enemy-alien
interests.
COMMERCIAL CONTROL
Copper, lead, and zinc form a class by themselves, with respect to industrial utility and tonnage produced,
ranking after iron, which far outclasses them, as the most important base metals. The total yearly production of
each throughout the world is considerably more than a million tons.
T 53.—O P ,S , C L 1913
(Tons of 2,000 Pounds)
Recoverable lead content R
of ores and concentrates Primary pig lead
Mine Smelter N
production Exports Imports production Imports Exports Consumption imp
Per Per Per Per Per Per
Net cent. Net cent. Net cent. Net cent. Net cent. Net cent. Net Per Net
Country tons [130] tons [130] tons [130] tons [131] tons [131] tons [131] tons cent. tons
Algeria 12,900 1.0 12,900 1.0 ... ... ... ... ... ... ... ... ... ... ...
Australia [133]244,500 19.7 132,000 10.6 ... ... 112,500 9.0 ... ... 101,900 8.1 10,600 0.8 ...
Austria-
Hungary 23,800 1.9 ... ... 2,800 0.2 26,600 2.1 12,500 1.0 ... ... 39,100 3.0 15,300
Belgium ... ... ... ... 56,000 4.5 56,000 4.5 ... ... 8,700 0.7 47,300 3.7 47,300
Bolivia 1,100 0.1 1,100 0.1 ... ... ... ... ... ... ... ... ... ... ...
Bulgaria 2,200 0.2 2,200 0.2 ... ... ... ... ... ... ... ... ... ... ...
Canada 18,800 1.5 ... ... ... ... 18,800 1.5 6,400 0.5 ... ... 25,200 2.0 6,400
China 14,000 1.1 14,000 1.1 ... ... ... ... ... ... ... ... ... ... ...
Egypt 3,200 0.3 3,200 0.3 ... ... ... ... ... ... ... ... ... ... ...
France 9,600 0.8 ... ... 21,300 1.7 30,900 2.5 87,700 7.0 ... ... 118,600 9.1 109,000
German S.
W.
Africa 13,200 1.0 13,200 1.0 ... ... ... ... ... ... ... ... ... ... ...
Germany 79,300 6.4 ... ... 120,300 9.7 199,600 15.9 46,800 3.7 ... ... 246,400 19.1 167,100
Great
Britain 20,300 1.6 ... ... 13,300 1.1 33,600 2.7 177,400 14.1 ... ... 211,000 16.4 190,700
Greece 20,300 1.6 ... ... ... ... 20,300 1.6 ... ... 20,300 1.6 ... ... ...
Holland ... ... ... ... ... ... ... ... 10,500 0.8 ... ... 10,500 0.8 10,500
India
(Burma) 6,500 0.5 [134]2,200 0.2 ... ... 4,300 0.3 ... ... 4,300 0.3 ... ... ...
Italy 24,900 2.0 [134]1,000 0.1 ... ... 23,900 1.9 12,000 1.0 ... ... 35,900 2.8 11,000
Japan 4,200 0.3 ... ... ... ... 4,200 0.3 17,000 1.3 ... ... 20,400 1.6 17,000
Mexico 68,300 5.5 7,100 0.6 ... ... 61,200 4.9 ... ... 61,200 4.9 ... ... ...
Norway ... ... ... ... ... ... ... ... 500 ... ... ... 500 ... 500
Peru 4,300 0.3 4,300 0.3 ... ... ... ... ... ... ... ... ... ... ...
Portugal 600 ... 600 ... ... ... ... ... ... ... ... ... ... ... ...
Rhodesia 400 ... 400 ... ... ... ... ... ... ... ... ... ... ... ...
Russia 3,100 0.2 [134]2,000 0.2 ... ... 1,000 0.1 63,700 5.1 ... ... 64,800 5.0 61,700
Spain 209,200 16.8 ... ... 9,900 0.8 219,100 17.4 ... ... 219,100 17.5 ... ... ...
Sweden 2,100 0.2 500 ... ... ... 1,600 0.1 1,200 0.1 ... ... 2,800 0.2 700
Switzerland ... ... ... ... ... ... ... ... 6,400 0.5 ... ... 6,400 0.5 6,400
Tunis 31,100 2.5 31,000 2.5 ... ... ... ... ... ... ... ... ... ... ...
Turkey-in-
Asia 15,300 1.2 ... ... ... ... 15,300 1.2 ... ... 15,300 1.2 ... ... ...
United
States 411,900 33.3 ... ... 13,200 1.0 425,100 33.8 ... ... 10,800 0.9 414,300 32.1 2,400
Other
countries ... ... ... ... 2,600 0.2 2,600 0.2 34,100 2.7 ... ... 36,700 2.8 36,700
World[135] 1,245,100 100.0 227,800 18.2 239,400 19.2 1,256,700 100.0 476,200 37.8 441,600 35.2 1,290,500 100.0 682,700
The ownership or operative control of mines is a minor factor in the commercial control of the lead industry
and in general is of importance only as determining the distribution of ore to smelters competing otherwise on
nearly equal terms. Most of the large smelter interests engage in, or have subsidiaries engaged in, mining or
have sufficient holdings in large mining companies to influence their smelting contracts. The actual basis of
control of the industry is, therefore, often through combined ownership or control of mines and of reduction
works.
The ownership or control of reduction plants has been the dominating factor in the commercial control of
the industry. The production of each country in 1913, the principal lead reduction works of the world, and
their affiliations and control are discussed below.
United States.—The control of the lead industry of the United States through ownership or control is
vested in ten groups as follows:
1. The Morgan-Guggenheim group, comprising the American Smelting & Refining Co.; American Smelters
Securities Co.; and their subsidiaries: Selby Smelting & Lead Co.; Tacoma Smelting Co.; Garfield Smelting
Co.; Consolidated Kansas City Smelting & Refining Co.; Federal Lead Co.; Federal Mining & Smelting Co.;
Western Mining Co.; Silver Lake Mining Co.; and the Yak Mining, Milling & Tunnel Co.
2. The St. Joseph Lead Co.
3. National Lead Co.; St. Louis Smelting & Refining Co.; United Lead Co.
4. The Rockefeller-Ryan group, comprising the International Smelting Co.—Tooele smelter, Utah; and the
International Lead Refining Co.,—refinery at East Chicago, Ind.
5. The United States Smelting, Refining & Mining Co. group, comprising the United States Smelting Co.—
Mid vale smelter, Utah; U. S. Metals Refining Co.,—electrolytic lead refinery at Grasselli, Ind.; Needles
Mining & Smelting Co.,—zinc-lead custom concentrator at Needles, Calif.; Bingham Mines Co. and other
mines in Utah (Bullion, Beck, Champion, Utah-Apex, Centennial-Eureka and Tintic); Sunnyside and Gold
Prince mines at Silverton, Colorado, and formerly a half interest in International Metals Selling Co.; and the
Leadville Unit.
6. The Day group, comprising the Northport Smelting & Refining Co.; Pennsylvania Smelting & Refining
Co.; Hercules Mining Co.; Tamarack & Custer Mining Co.; and the Amazon-Manhattan mines et al.
7. The American Metal Co. group, controlling the Ohio & Colorado Smelting Co. (owning 65 per cent. of
its stock), and the Balbach Smelting & Refining Co. (owning one-third of its capital stock and selling the
entire output).
8. Hayden-Stone-Clark-Coolidge group, comprising the American Zinc, Lead & Smelting Co.; American
Zinc Co. of Tennessee; American Zinc. Co of Wisconsin; American Zinc Co. of Illinois; Granby Mining &
Smelting Co. of Missouri; and the Butte & Superior Mining Co.
9. The Eagle-Picher group, comprising the Eagle-Picher Lead Co., Joplin, Mo. with smelter at Joplin, Mo.,
and controlling the Galena Smelting & Manufacturing Co., Galena, Kan.; and the Webb City Smelting &
Manufacturing Co., Webb City, Mo.
10. The Bunker Hill & Sullivan Mining & Concentrating Co., controlled by Bradley-Crocker interests, and
probably representing a certain proportion of English capital.
11. The Desloge Consolidated Lead Co., which formerly operated its own smelter but now has its ores
smelted on toll by the Federal Lead Co. and markets its own lead.
All of the above companies are owned and controlled by American citizens so far as known, except certain
interests in the American Metal Co. and perhaps the Bunker Hill & Sullivan Mining & Concentrating Co.
The American Metal Co. has 70,000 shares of capital stock, of which 34,644 shares were owned by the
Metallgesellschaft, one of the German “Trio,” 18,620 shares belong to Germans who have become naturalized
American citizens and have had the management, and the remaining 16,736 belonged to Henry L. Merton &
Co., of London, a firm that is in process of liquidation. The Alien Property Custodian took over the 34,644
shares referred to above and sold them at public auction. The control of the company is vested in three voting
trustees selected by agreement between the Alien Property Custodian and the American shareholders.
Vogelstein & Co. at one time linked groups 5, 7, 8, and 10, chiefly through selling contracts. Vogelstein &
Co. owned the International Metals Selling Co., formerly marketing the production of the United States
Smelting, Mining & Refining Co., but this connection is now broken. A contract for sale of the entire output
of the American Zinc, Lead & Smelting Co. was held by L. Vogelstein & Co., partly owned by Aron Hirsch &
Sohn, another member of the great German metal combine. L. Vogelstein & Co. (Inc). was seized by the Alien
Property Custodian and was controlled by five directors, two of whom were appointees of the Custodian.[136]
The operative control of the Bunker Hill & Sullivan Mining & Concentrating Co. is vested in Americans, but
Vogelstein & Co. sells the output. Groups 5 and 8 are probably linked to some extent by large stockholders in
common, Clark & Coolidge of Boston.
[136] L. Vogelstein is reported to have sold his interests to the American Metal Co. and subsequently, early in 1920, to have
acquired a fifth interest in that company.
As a result of the activities of the Alien Property Custodian, the ownership and control of substantially all
the mines and reduction works in the United States are vested in American citizens. Further information
regarding the activities of German interests in the American metal trade is given in the chapter on copper,
pages 232-235.
Table 54 lists the important lead smelting and refining plants of the United States at the present time.
T 54.—S - S U S
Financial Operating Location Number Annual
Group company of capacity
No. furnaces (tons of
charge)
1 American Smelters Securities Co. Selby, Calif. 3 210,000
1 American Smelting & Refining Co. Denver, Colo. 7 510,000
1 American Smelting & Refining Co. Pueblo, Colo. 7 380,000
1 American Smelting & Refining Co. Durango, Colo. 4 210,000
1 American Smelting & Refining Co. Leadville, Colo. 10 510,000
1 American Smelting & Refining Co. Murray, Idaho 8 657,000
1 American Smelting & Refining Co. East Helena, Mont. 4 306,000
1 American Smelting & Refining Co. Omaha, Neb.[137] 2 82,000
1 American Smelting & Refining Co. Perth Amboy, N. J.[137] 4 170,000
1 Con. Kansas City Smelting & Refining Co. El Paso, Texas 6 380,000
10 Bunker Hill & Sullivan Mining & Concentrating Co. Kellogg, Idaho 3 600,000
7 Ohio & Colorado Smelting Co. Salida, Colo. 3 200,000
5 U. S. Smelting, Refining & Mining Co. Midvale, Utah 7 530,000
6 Northport Smelting & Refining Co. Northport, Wash. 2 216,000
6 Pennsylvania Smelting Co. Carnegie, Pa. 2 60,000
4 International Smelting Co. Tooele, Utah 5 500,000
Total 77 5,521,000
The following Table 55 shows the relative importance of the various financial groups controlling the
production of lead in the United States.
T 55.—F G C P L U S
Percentage
Financial of production
group Oct.-Nov.,
No. Company 1918 1917
1 American Smelting & Refining Co 34.1 37.7
3 National Lead Co. (St. Louis Smelting & Refining Co.) 5.9 9.0
2 St. Joseph Lead Co. 20.1 16.4
4 International Smelting & Refining Co. 3.7 6.5
5 U. S. Smelting Refining & Mining Co. 5.5 8.3
6 Pennsylvania Smelting Co. 6.2 7.2
7 American Metal Co. 1.8 2.1
8 American Zinc, Lead & Smelting Co. 1.7 1.3
9 Eagle-Picher Lead Co. 9.3 6.2
10 Banker Hill & Sullivan Mining & Concentrating Co. 6.3 1.7
11 Desloge Consolidated Lead Co. 2.6 3.3
Ontario Smelting Co. 1.9 0.0
The American Smelting & Refining Co., through the preponderance of its production and the wide
distribution of its interests, dominates the domestic industry, although its proportion of the total output has
decreased greatly during the past few years.
Spain.—More than 60 per cent. of the pig lead made in Spain comes from the smelters of the Penarroya
company (French), which within the past few years has absorbed the Spanish smelters of Escombrera-
Bleyberg at Esconbrera, and the two smelters of Figueroa, at Linares and Cartagena. This gives the Penarroya
company a dominant position in the Spanish lead industry. English interests, E. J. Enthoven & Co., have a
smelter producing about 25,000 short tons of lead annually. All the smelting companies have made a
combination to stop competition in ore buying. The Spanish government imposes a duty of about $1.80 per
ton on lead concentrates exported.
Australia.—Smelting plants in Australia that produce lead have the capacities shown below.
1913 production,
short tons
Company Location pig lead
Broken Hill Associated Smelters Port Pirie, South Australia 92,824
Sulphide Corporation Cockle Creek, New South Wales 19,660
Total 112,484
The annual capacity of the Port Pirie plant is now 165,000 short tons of pig lead.
T 56.—S L S M
Company Location Number of Annual
furnaces capacity
tons of
charge
American Smelting & Refining Co. Monterrey 7 410,000
American Smelting & Refining Co. Aguascalientes 1 (lead) 40,000
American Smelting & Refining Co. Chihuahua 7 400,000
American Smelters Securities Co. Velardeña 3 150,000
Compañia de Minerales y Metales Cerralvo 2 35,000
Compañia de Minerales y Metales Guadalupe, N. L. 1 70,000
Compañia Fundadora y Refinadora de Monterrey (leased to American Metal Co.) Monterrey 4 (or 8?) 210,000
Compañia Metalurgica Mexicana (Towne) San Luis Potosi 10 250,000
Compañia de Minerales y Metales (reported about to be dismantled) Torreon 9 350,000
Compañia Minera de Peñoles Mapimi 6 350,000
Mazapil Copper Co., Ltd. (English) Saltillo, Coahuila 1 36,000
Total 51 2,301,000
Mexico.—Practically all the Mexican smelting works are owned and operated by American companies.
Prior to the war several of these were controlled by German interests through the American Metal Co.
(incorporated in the United States), but the action of the Alien Property Custodian eliminated all foreign
control in those companies, which comprise Compañia Minera de Peñoles, Compañia de Minerales y Metales,
and Compañia Metalurgica de Torreon, leaving only the Compañia Fundadora y Refinadora de Monterrey still
under German control. The American Metal Co. normally controlled 60,000 to 75,000 tons of bonded
Mexican lead and 12,000 to 15,000 tons of lead smelted in Mexico, together with over a thousand tons of
antimonial lead.
The Aguascalientes and Velardeña plants are chiefly copper smelters. There are small lead smelters at
Terrazas and Santa Rosalia, Chihuahua, but they are probably abandoned.
British Isles.—During the war the British lead-smelting capacity is reported to have been increased. Before
the war a large amount of foreign lead bullion from Spain, Belgium and Germany was desilverized in the
British Isles.
Other Countries.—The lead-smelting plants of France escaped destruction during the war, being outside
the war zone. The capacity of the Pontgibaud plant was greatly increased. They are all French owned. The
most important lead smelting plant in Italy is that of the Societa di Pertusola (English), with a pig-lead output
in 1915 of 16,625 metric tons; the other plant is that of the Societa di Monteponi (Italian), with an output of
5,187 tons. The only lead smelting of Greece is that of the Compagnie des Mines de Laurium (French).
The only important lead smelter of Canada is that of Trail, British Columbia, which is controlled by the
Canadian government. This plant includes a refinery using the Betts electrolytic process.
The only lead smelter in Turkey is one controlled by French interests, that of the Société des Mines de
Balia-Kara-Aidin, at Kara-Aidin. The lead smelting plant of the Burma Mines Corporation, Ltd., at Bawdwin,
Burma, has a capacity of 22,000 short tons lead.
In Siberia the Ridder Mining Co., controlled by the Irtysh Corporation, of London, has constructed 165
miles of railroad, which, together with river transport, brings the ore from the Ridder concession and the coal
of the Ekibastus coal fields to the smelting plant at Ermak, which has a capacity of 15,000 tons of lead
annually.
Trade Combinations.—National and even international control of the lead market has at times been
attained through marketing organizations or trade combinations of reduction works, ore-buying and metal-
selling agencies with interlocking directorates, joint ownership, and long-term contracts for ores, concentrates,
and metals.
In 1909 the so-called Lead Convention, or officially the International Sales Association, was formed in
Paris. It was composed of German, Spanish, and Belgian producers and metal-selling agencies controlling
directly about one-half of the European production. Some companies not nominally in the association acted in
concert with it. This convention was renewed in 1910 and again in 1913 for three years. The association was
dominated by the same interests as the German Zinc Syndicate,—the Merton group, comprising the
Metallgesellschaft, the Metallbank and Metallurgische Gesellschaft of Frankfort and the Merton companies of
London; Beer, Sondheimer & Co., controlling a dozen German metal and chemical concerns, and Aron Hirsch
& Sohn at Halberstadt. The Merton group of London and Frankfort were the selling agents of the association,
and the dominant “Trio,” through the Australian Metal Co., controlled the lead exported as metal or
concentrates from Australia.
In the United States and Mexico all lead exported was controlled by the American Metal Co., affiliated with
the association, or the American Smelting & Refining Co., acting in concert with it. The German “Trio”
maintained and was rapidly extending and strengthening its ascendancy throughout the world through banks,
holding companies, affiliations with syndicates and cartels, interlocking directorates, joint share holdings and
purchase in whole or in part of mines and smelters. Some of the English lead refineries were closely
associated with the Convention, and all lead exported from the Port Pirie smelter was sold by Merton & Co.
The association was able to fix the price of lead in Europe and thus affect the output and, it has been claimed,
so manipulated the market that lead outside the Convention was controlled just as effectively as that inside.
The membership was international, brought together by mercenary motives. That the strongest and most
aggressive interests were German citizens was purely incidental.
As a result of the war, however, the production of Australian lead concentrates and bullion is permanently
diverted from German control. The activities of the Alien Property Custodian tended to eliminate all German
interests in the United States. Most of the Australian lead bullion production is now marketed by the Broken
Hill Associated Smelters, Prop., Ltd., of whose capital stock the Broken Hill Proprietary owns one-third and
the Broken Hill South, Broken Hill North, and Zinc Corporation each own two-ninths. The plant of this
company is now the largest smelter in the world.
The nationalist movement in France resulted in the formation of trade associations known as “consortiums,”
comprising the principal factor in each industry. These “consortiums,” were recognized by the government,
and each was made virtually arbiter of its particular field. The consortium of the mineral industry has been
perfected into the Société Minerals et Metaux, 154 Boulevard Hausmann, Paris. The official announcement
states that this society is organized under the auspices of the French government in order to group the French
metal producers operating both at home and abroad into a co-operative association for the purchase and sale of
metallurgical products.
The participants comprise the principal companies in France producing or refining metals and also the
mining and smelting companies controlled by French capital in Spain, Algeria, Tunis, and other foreign
countries. A highly centralized organization of that part of the mineral and metal industry under French control
is thus achieved for mutual protection and advantage in competition with other nationalities. Members of this
organization will produce most of the ore from Algiers and Tunis and probably 75 per cent. of the Spanish
lead bullion. The present annual output of the participating companies is about 200,000 metric tons of lead,
50,000 metric tons of zinc, and 40,000 tons of copper, besides iron, antimony, platinum, etc. The association
comprises the following companies: Société Minière et Metallurgique de Penarroya; Société d’Affinage de
Metaux; Compagnie des Mines d’Ain-Barbar; Association Minière; Société des Mines de Zinc d’Ain-Arko;
Compagnie du Boleo; Compagnie Française des Mines de Bor; Corocoro United Copper Mines, Ltd.; Société
des Mines de Fedj-el-Adoum; Société des Mines de Zinc de Guergour; Compagnie des Mines de Huaron;
Société Minière du Kanguet; Compagnie des Minerais de Fer Magnetique de Mokta-et-Hadid; Comptoir Lyon
Allemand; Société Anonyme des Mines de Malfidano; Compagnie des Mines d’Ouasta et de Desloula; Société
des Mines de Parzan; Compagnie Industrielle du Platine; Société Anonyme des Mines et Fonderies de
Pontgibaud; Société des Mines d’Antimoine de Rochetrejoux; Société des Anciens Etablissements Sopwith;
Société Française d’Etudes et d’Enterprises; Société des Mines du Djebel-Ressas; Société Anonyme Française
du Djebel-Hallouf; Société Anonyme des Mines et Usines de Peyrebrune; and Compagnie La Cruz.
One of the results of the war was the stimulation of co-operative enterprises between British companies, the
movement being encouraged by the government, which in some cases participated financially. The British
Australian Lead Manufacturers Proprietary, Ltd., was formed as a consolidation of the Australian interests of
British firms, with the object of establishing a white-lead industry in that country. Those participating
comprise: Alexander Ferguson & Co.; Cookson & Co.; Foster, Blockett & Wilson; Locke, Blockett & Co.;
Locke-Lancaster; W. W. & R. Johnson & Sons, Ltd.; Mersey White Lead Co., Ltd.; and Walkers Parker & Co.
The Chloride Syndicate comprising the Zinc Corporation, Ltd., Burma Mines Corporation, and the Swansea
Vale Smelter, Ltd., is conducting experimental work on the Ganlin process with the object of perfecting it.
Richard Tilden Smith, having acquired controlling interests in J. H. Enthoven & Sons, Locke-Lancaster,
Walkers Parker & Co. and a one-third interest in the Burma Mines Corporation, became a strong link between
these important companies and thus secured an arrangement with the Imperial Government for financial
assistance with the new plant of the National Smelting Co., Ltd., at Avonmouth to the extent of £500,000 out
of the total estimated cost of £750,000, the government being particularly interested in the production of by-
product acid. The National Smelting Co. agreed to take 25,000 tons yearly of Broken Hill concentrate and
smelt no foreign ore without government permission. Enthoven & Sons control through ownership the output
of one of the Spanish smelters and through desilverizing and marketing contracts the output of the French
Laurium company of Greece. An attempt to bring about a closer combination of all the above-mentioned
English and Australian companies failed.
It is reported that in 1917 Vivian, Younger & Bond, and Morgan, Grenfeld & Co. were instrumental in
forming a “Metal Bank” in London. Broken Hill Associated Smelters Prop. Ltd., and the Penarroya company
were said to have agreed to market their production through this bank, but it is probable that the arrangement
was never made effective. A Chemical and Metallurgical Bank has been formed in London, among the
shareholders being Richard Tilden Smith. Its proposed field is not clear, but it will probably endeavor to
influence the control of lead in the United Kingdom.
A British Metals Corporation was formed in 1918 by Vivian, Younger & Bond, Chas. Tennant Sons & Co.,
Cookson & Co., the British Aluminum Co., Morgan, Grenfeld & Co., and large stockholders of the Rio Tinto
Co., with a capital of £5,000,000. The Imperial Treasury will be represented on the board of directors. The
purposes are to finance British non-ferrous metal companies, bring all the production within the empire of
those metals under one marketing organization and preserve British control. If plans are successfully carried
out, the smelting both in England and on the Continent of Europe, should any British concentrates be allotted
there, will practically be on toll, the metal remaining in the control of the Metals Corporation or the affiliated
bank.
T 57.—C C W ’ O P L
Recent Financial control by
pig-lead Per cent.
production of Home United Great
Country (short tons) Year world capital States Britain France Germany
United States 612,200 1917 44.6 ... 612,200
Australia 127,800 1913 9.4 ... ... 127,800
British Isles 12,600 1916 0.9 ... ... 12,600
Canada 20,400 1916 1.5 ... ... 20,400
Burma 20,000 1917 1.5 ... ... 20,000
France 30,800 1913 2.2 ... ... ... 30,800
Italy 24,000 ... 1.8 5,700 ... 18,300
Belgium 39,400 1913 2.9 15,000 ... ... 24,400
Venezuela 200 1917 ... ... ... ... ... 200
Bolivia 2,400 1917 0.2 400 ... ... 2,000
Greece 12,800 1916 0.9 ... ... ... 12,800
Japan 12,300 1916 0.9 12,300
Peru 3,000 1917 0.2 500 500 2,000
Russia 1,100 1913 0.1 1,100
Chile 6,000 1917 0.4 3,000 ... 1,000 ... 2,000
Mexico 61,200 1913 4.4 ... 53,200 8,000
Spain 157,000 1917 11.4 20,000 ... 25,000 105,000 7,000
Sweden 2,100 1915 0.1 1,100 ... ... ... 1,000
Germany 200,000 1913 14.5 ... ... ... ... 200,000
Austria-Hungary 26,600 1913 1.9 26,600
Total 1,371,900 ... 100.0 665,900 235,100 175,000 210,200
Per cent. of world production. 100.0 48.6 17.2 12.7 16.3
United States.—During the war the United States demonstrated that its lead-ore deposits were capable of a
production greatly in excess of the normal. That the increase was not greater was chiefly because of
insufficient incentive in the market price of lead, which did not attain the early inflation of many of the other
metals; and later, when the price was right, was restricted by lack of refining capacity. The existing capacity
was at times not fully utilized because of the congestion of railway traffic. The lead-ore deposits in the United
States have large possibilities, but with the exception of the disseminated lead deposits of southeastern
Missouri the developed ore reserves will supply production for only a few years. Control of the mines in the
United States is vested almost exclusively in Americans or American companies, some of the latter, however,
having foreign stockholders, chiefly British or Canadian.
The United States imports lead ores, to a small percentage of its total production, from Mexico, Canada,
South America and Africa. The Mexican ore is largely imported to meet the especial needs of the El Paso lead
smelter, and not because of lack of smelting capacity in Mexico. The smelting capacity of the United States
has always been in excess of the actual production of ore and is now very greatly in excess of the normal
production. The ownership of most of the important smelters has always been vested in American capital, and
as a result of the activity of the Alien Property Custodian all of them are now owned and controlled by
American citizens. A considerable amount of lead bullion is imported, chiefly from Mexico, for refining. Most
of this is re-exported. United States capital through ownership of smelters controls the greater part of the pig
lead produced in Mexico and Peru. The importation of ore and bullion for refining from Canada is restricted
by the government bounty on lead smelted and refined in Canada. United States capital also controls a
considerable percentage of the mines of Mexico and has some interest in the Burma Mines Corporation, and
the Irtysh Corporation.
Notwithstanding the enlarged smelting capacity and the possibilities of production from American mines, it
is not expected that there will be any considerable export of domestic lead after the period of readjustment
following the World War.
British Empire.—The countries of the British Empire in the order of the importance of their lead output in
1913 are Australia, British Isles, Canada, Burma, and Egypt.
British capital controls the mines and smelters of the British Isles, Canada, Australia, Burma, and the Altai
Mountains in Siberia, and, by ownership of mines and smelters, some 25,000 tons of lead annually from Spain
and over 70 per cent. of the production of Italy. By contracts for desilverization and marketing it has
controlled the greater part of the Spanish output and part of the production of Greece. It is reported also to
control small tonnages of ore from Peru and Chile. In view of the recent increase of refining capacity in Spain
by the Penarroya company (French), and the organization of all French interests into the Société Minerais et
Metaux, future control by English capital of Spanish output above the 25,000 tons produced by the English
smelter is doubtful, although it has been reported that the Penarroya company had agreed to market its lead
through the new Metal Bank of London. Prior to the war much base bullion from Spain, Belgium, and
Germany was imported and desilverized, and in large part re-exported.
The ore production of the British Empire is about 25 per cent. greater than its consumption, but insufficient
smelting capacity has caused dependence on foreign-smelted lead. The smelting capacity has been increased,
and the additional capacity contemplated will make the total equal the consumption. The empire can be made
independent of the rest of the world should the policy of “Imperial preference” be adopted.
All the large interests in the lead industry of the British Empire have shown during the war period a strong
tendency to co-operate and organize for mutual protection and benefit. A culmination of this movement is
apparently the formation of the British Metals Corporation, intended to vest the marketing control of the
production of the whole British Empire in one organization under governmental auspices.
Australia.—The Australian production of lead ore and concentrates, derived chiefly from New South Wales,
makes Australia rank second in world production of lead ores. In 1913 little more than half the output was
exported to Europe for smelting, the remainder being smelted at Cockle Creek and Port Pirie. The pig lead
produced, less a small local consumption, was also exported.
Australian mines have always been owned by British and Australian capital. Prior to the war the marketing
of concentrates and of all lead bullion exported was controlled by the Australian Metal Co., affiliated with the
German metal “Trio” headed by the Metallgesellschaft. During the war, however, the governments of Great
Britain and Australia annulled the long-time ore- and metal-purchasing contracts, and the ore producers and
smelters have organized for mutual protection and to keep the industry permanently under exclusive British
control. The capacity of the Port Pirie reduction works has been increased by capital contributed jointly by the
principal mining companies, and the plant is now the largest lead smelter in the world.
British Isles.—The small output of lead ore in Great Britain is obtained from a few scattered deposits of
little importance. Some ore is imported and smelted with the domestic production. The consumption of the
British Isles is so large that very large imports of pig lead are necessary, amounting to 14 per cent. of the
world’s production. All of the mines and smelters of the British Isles are owned and controlled, so far as
known, by British capital.
Canada.—With the assistance, through bounties, of the Canadian government, the Trail smelter has become
firmly established and is the only important lead producer of Canada. It handles most of the British Columbia
output of ores, which otherwise would have to go to the United States for reduction. The Canadian
consumption is, however, about one-third greater than the production.
Burma.—Although the production of ore and pig lead in the Northern Shan States by the Burma Mines
Corporation was in 1913 an insignificant part of the world’s output, the company has developed its deposits so
as to be capable of a very much greater yield, which may amount in the near future to 75,000 tons annually.
This company is controlled by British with probably some American capital.
Egypt.—The small ore production of Egypt is exported for smelting and is controlled by French capital.
Germany.—Germany, a large producer of lead ores, imported in 1913 for smelting nearly 10 per cent. of
the world’s output and in addition imported a considerable amount of pig lead, being the second largest
consumer of lead in the world. Should Germany lose Upper Silesia, which produced nearly half the domestic
ores, it will be still more dependent on imports to supply its smelters. Prior to the war the German lead
industry was closely organized, much of the lead mining and smelting being conducted by departments of the
state governments, although some of the largest concerns were private corporations. The German metal “Trio”
headed by the Metallgesellschaft through the International Sales Association controlled directly about one-half
the European production, comprising in this so-called Lead Convention, besides the German concerns, most of
the Spanish and Belgian producers, most of the lead exported from the United States and Mexico, and the pig
lead and concentrates exported from Australia. This system of control outside of Germany has now been
permanently destroyed, and the magnitude and the organization of the German lead industry in the near future
cannot be anticipated.
France.—In France the output of lead ore is small and is controlled, with probably one exception, by
French capital. Some ores are imported for smelting, Tunis and Algeria being capable of supplying even more.
To provide for the large consumption, France ranking fourth among lead-consuming countries, there is
imported in the form of pig lead some 7 per cent. of the world’s output. Recently smelting capacity has been
increased. French capital controls more than half the production of Belgium through ownership of smelters,
and through ownership of mines and smelters controls more than half the production of Spain and most, if not
all, of the output of Greece. It also controls the ore production of Egypt and most of the ores produced in
Algeria and Tunis. Under government auspices a strong organization of all the metal-producing companies
controlled by French capital in France and foreign countries has recently been effected under the name of the
Société Minerais et Metaux, which controls the sale of all the production of its members, as well as acting as a
purchasing agent for them.
Belgium.—Belgium produces no ores but smelts about 4¹⁄₂ per cent. of the world’s output, nearly the whole
of which is consumed within her borders. A little less than half of this production is controlled by Belgian
capital, the remainder by French interests. Belgian capital is also interested to a minor extent in Spain, Algeria,
the Caucasus Mountains and Tunis. It is believed that a part of the Australian concentrates may be allotted to
Belgium for smelting.
Italy.—The Italian ore production, amounting to about 2 per cent. of the world’s total, is smelted in that
country. The product is consumed, together with about 50 per cent. more, imported as pig lead. More than
three-fourths of the domestic output is controlled by English capital; nearly all the remainder is controlled by
Italian capital, but other English, French and Belgian companies produce insignificant amounts of ore.
Austria-Hungary.—The Austro-Hungarian Empire produced and smelted ores to the amount of about 2 per
cent. of the world’s output in 1913, and consumed this with about 50 per cent. more metal imported in the
form of pig lead. The several lead-producing districts and smelters, some of which belong to the states of
Austria and Hungary, with the partition of the empire fall within three or more distinct political jurisdictions,
the lead production of none of which will be of importance. One of the important lead smelters is at Fiume.
Spain.—Spain ranks third in content of ores produced and second in smelter production. The domestic
consumption being negligible, all of the lead is exported. Prior to the war most of the production went to
England to be desilverized. During the war, however, the refining capacity of Spain was greatly increased, and
it now seems likely that any silver lead which the domestic plants can not take care of will be shipped to
France for desilverization. More than half the Spanish production is controlled by French capital, and to a
minor degree by Belgian and German interests.
Japan.—Japanese lead-ore resources are meagre. The output of lead ore and pig lead in 1913 was about 25
per cent. of the domestic consumption. Since then ores and concentrates have been imported from China,
Formosa, Korea, Siberia, and Australia, but importation of pig lead has still been necessary. The Japanese are
endeavoring to secure control of ore deposits in China and Siberia, and supply the raw material for the
increase of their domestic smelting and manufacturing industries. It is probable, however, that Japan will be
dependent for many years on imports from other sources for most of the lead consumed.
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.
CHAPTER XVI
ZINC
B F B. H
USES OF ZINC
Metallic zinc, or spelter, as the commercial metal is often known in the trade, is
chiefly used in the form of rolled sheets; in galvanizing; in alloys forming brass
and bronze; and in the desilverization of lead bullion. Rolled sheets are used for
roofs, tanks, conduits, and protective linings. Iron and steel objects are dipped into
baths of molten spelter and coated with the metal or galvanized, being thereby
protected from oxidizing agencies. Other methods of applying this protective
coating are also in use.
Zinc and copper unite in all proportions, forming alloys known as brass which
are of widespread industrial application. There is only one definite alloy; it
corresponds approximately to CuZn2, contains 33 per cent. copper and 67 per cent.
zinc, is hard and brittle and of little practical value. All other brasses may be
considered as solid solutions of this definite alloy in an excess of one of its
constituents. Brasses in use vary in zinc content from 20 to 85 per cent. and differ
greatly in their properties according to the composition. Alloys of zinc and
aluminum have valuable properties, especially those containing 25 to 35 per cent.
zinc. Other alloys used contain, besides copper and zinc, either lead, tin or nickel.
The Parkes process of desilverizing lead bullion has superseded the older
Pattinson and cupellation process, except where bismuth is present, owing to the
avidity with which zinc robs the bullion of gold, silver, copper and tellurium. This
purification may be made as perfect as desired or only to a commercially profitable
point, generally being brought down to a content of one-half ounce of silver per ton
of lead.
Among the miscellaneous uses of zinc are these: ornamental castings; in
galvanic batteries; in photo-engraving; in plates hung in boilers to prevent
formation of scale; precipitation of gold in the cyanide process; in the form of
powder, as a reducing agent in organic chemistry, especially in the reduction of
indigo-blue and in a paint for structural steel. Zinc is also used in the form of
numerous salts, such as the chloride as a wood preservative, and the sulphate,
employed in medicine, dyeing and glue manufacture.
Zinc oxide, produced both from the metal and from ores, is used as a pigment
both in combination with white lead and barytes, and as a competitor of them.
Considerable amounts of oxide are also used in the rubber manufacturing industry.
Lithopone (an intimate mixture, obtained by chemical precipitation of zinc
sulphide and barium sulphate) is of growing importance as a pigment.
All the chief uses of zinc, comprising galvanizing, rolled sheets, brass-making
and the desilverization of lead bullion, may be considered essential. Brass belongs
with steel in the category of indispensable materials of modern industry. No
satisfactory substitute as regards both physical qualities and cost is available for
many important parts of machinery and for manufacturing purposes. Its wide use
depends on a number of qualities. The excellent sharp castings made from certain
brasses are readily machined or otherwise finished and electro-plated if desired.
The electrical conductivity of brass is good. Certain brasses are easily rolled into
sheets and cut and stamped in desired shapes. Lubricated surfaces of steel on brass
make satisfactory and durable bearings.
The other large uses of zinc depend on its resistance to oxidation and on the
possibility of rolling it into fairly thin sheets. In both these qualities, however, it is
surpassed by other metals, notably nickel and tin. Alloyed with lead it may be
rolled into a substitute for tin-foil. It is in some cases a fairly satisfactory, cheap
substitute for metals of higher quality. In times of scarcity or high prices,
substitution of metals of inferior quality is feasible, and in many cases zinc may be
temporarily dispensed with altogether. Its field is therefore largely fixed by
commercial conditions of supply and price, which determine broadly the total
consumption and especially the percentages devoted to the various uses. It may be
assumed, however, that the percentages for the domestic consumption in the United
States in 1910 represent approximately those of normal peace times. In that year, of
the total consumption, 60 per cent. was used in galvanizing; 20 per cent. in brass-
making; 11 per cent. in rolled sheets; and 1 per cent. in lead desilverization;
leaving 8 per cent. for miscellaneous uses. During the war the percentage used in
galvanizing was greatly reduced and that used for brass-making much increased.
The use of rolled sheets will increase.
A large part of the European production in normal times is rolled into sheets
used chiefly for roofing.
CHANGES IN PRACTICE
In the extraction of zinc from its ores the most important changes in practice
during recent years have been adaptations of retort smelting for the purpose of
utilizing zinc concentrates from complex ores, the increased production of zinc
oxide and lithopone through the application of volatilization methods to the re-
treatment of retort residues and base ores, and the electrolytic and electro-thermic
processes of extraction of the metal.
The most revolutionary advance has been the development of the oil flotation,
the electro-magnetic, and electro-static processes for the concentration of ores.
These processes are being widely introduced and in connection with electrolytic
reduction are particularly adapted to the production of spelter of the highest quality
from complex ores. As the electrolytic and electro-thermic processes find their
field only where power is relatively cheap, the tendency is to put installations
where hydro-electric power is available, effecting a redistribution of zinc-smelting
centers.
GEOLOGICAL DISTRIBUTION
Zinc and lead are commonly associated in mineral deposits, sometimes
intimately mixed, sometimes so segregated that one metal predominates, but ores
of one are seldom free entirely from the other. The geological and geographical
distribution of the two metals is therefore nearly identical.
The sulphide ores, chiefly sphalerite or blende, are the most important, but in the
oxidized zone they are often altered to carbonates—smithsonite, calamine and
hydrozincite. The oxides—franklinite, willemite and zincite—are important in only
one district in New Jersey. The carbonates, although they carry a low percentage of
zinc, often occur in concentrated ore bodies, and yield readily to metallurgical
treatment. Therefore, calamine-smithsonite ores form a large proportion of the
production of many important districts, but blende will hereafter be of increasing
importance in the world production.
Zinc ores occur in deposits of several distinct genetic types. In the order of their
importance they are:
(a) Deposits formed in sedimentary rocks, without apparent connection with
igneous rocks, as bedded replacements usually of limestones and dolomites. The
ores of this type usually contain lead (galena) and iron (pyrite or marcasite)
minerals, often those of manganese and cadmium, sometimes those of arsenic,
cobalt and nickel, but seldom gold, silver, copper, or antimony. Barite and fluorite
are sometimes present.
The deposits of this type are of world-wide distribution. Their greater purity and
the simplicity of the treatment necessary, particularly of the ores in their oxidized
zones, have caused them to be exploited first and most extensively and to be until
recently the dominant factor in the world production of zinc. To this type belong
the deposits of the Mississippi Valley and Silesia, which together produced 34 per
cent. of the world’s output in 1913.
(b) Veins associated with igneous rocks and disseminated sulphide replacements
of igneous rock. In this group come the deposits of Butte, Leadville, and the Coeur
d’Alene, and the disseminated deposits of the Bawdwin (Burma Mines Co.),
Ridder (Siberia) and Salmon River (B.C.). These ores are usually complex,
comprising minerals of zinc, lead, copper, iron, gold and silver, and often arsenic,
antimony and other metals. In one group, the silver-lead deposits, zinc seems a
minor factor, but with depth replaces lead as the predominant metal. Deposits of
these complex ores have in recent years become important sources of zinc through
recognition of the zinc ores in their oxidized zones, through zinc becoming the
dominant metal with increasing depth at many mines, and especially through
improvements in methods of concentrating complex ores and extracting metal from
the concentrates. Ores of this type will be of increasing importance in the future
because of their world-wide distribution.
(c) Igneous metamorphic deposits containing franklinite, willemite, zincite, a
little blende, and a gangue of calcite, rhodonite, garnet, pyroxene, hornblende,
magnetite and tremolite. This type is characteristic of the Franklin and Adirondack
deposits of the northeastern metallographic province of the United States and is
also found at Magdalena and Hanover, New Mexico and the Horn Silver mine, in
Utah.
(d) Metamorphosed deposits. Originally these may have been of any of the
preceding types but are now disguised by regional metamorphism. The best
example is the important deposit of Ammeberg, Sweden. Blende there occurs
disseminated in bands in gneissoid granulite, which also contains bands of
disseminated pyrrhotite and arsenopyrite.
GEOGRAPHICAL DISTRIBUTION
The chief zinc ore deposits of the world are in the countries listed in the table
below; the order of the countries is that of their importance in the industry in 1913,
as nearly as can be estimated from incomplete data.
The three major metallographic provinces of the world as indicated by present
exploitation are those of Broken Hill, N.S.W., Silesia, and the Mississippi Valley.
The condition of the zinc industry in the principal countries, in 1913, is shown in
Table 59.
United States.—The zinc deposits of the United States may be assigned to three
metallographic provinces, which in the order of their present importance are: the
Mississippi Valley province; the Western province; and the Northeastern province.
Judged by present knowledge, the Mississippi Valley province is one of the three
major zinc-bearing metallographic provinces of the world. It occupies an area
underlain with slightly disturbed Paleozoic limestone, ranging from Ordovician to
Lower Carboniferous in age, that comprises most of the great mid-continental
valley of the Mississippi in the states of Missouri, Arkansas, Oklahoma, Kansas,
Illinois, Kentucky, Wisconsin, Iowa, also Tennessee and the western part of
Virginia. Igneous rocks are generally absent. There are three principal
subprovinces: the Ozark province, comprising Missouri, Oklahoma, Kansas,
Arkansas; the upper Mississippi valley, comprising Wisconsin, Northern Illinois,
and Iowa; and the regions of Tennessee and Virginia.
T 58.—C Z - D W
Percentage
of world’s
Approximate production
order Country in 1913
1 United States 35.0
2 Germany 25.0
3 Australia 15.0
4 Italy 5.0
5 Algeria 3.0
6 Japan 2.0
7 Spain 2.0
8 Russia (including Russian Poland) 2.0
9 France 1.5
10 Greece 1.0
11 Sweden 1.0
12 Mexico 1.0
13 Austria 1.0
14 Tunis 1.0
15 Indo-China (Tonkin)
16 Great Britain
17 China
18 Bolivia
19 Canada
20 India (Burma)
21 Egypt
22 South Africa
23 Peru
In the Ozark subprovinces the Joplin district is most important. The ores lie at
three horizons in flat-lying lower Carboniferous limestones. In the upper horizon,
below the surface, the ore lies in clayey chert breccias, and galena predominates.
The middle horizon, or “sheet ground,” carries mixed galena and blende, which
cements brecciated chert. The ore is low grade, the average recovery of zinc being
1.9 per cent. This horizon has been the most important source of ore. The third and
lowest horizon, as yet little exploited, contains disseminated ores. Thirty mills
were busy in the Joplin district in 1918. The Athletic Mining & Smelting Co. was
the largest producer, operating the Athletic mine, at Duenweg, the Bertha A., at
Webb City, and Mutual mine, at Oronogo. Miami Zinc Syndicate, affiliated with
the Butte & Superior and American Zinc, Lead & Smelting Co.; the Commerce
Mining & Royalty Co.; the Century Zinc Co.; and the Tri-State Mining Co., are
large operators. Much of the production is by lessees and small operators.
T 59.—Z I 1913
Spelter
(short tons)
Available zinc in ore
(short tons) Produced Annual
For To be con-
Country Produced Smelted Exported Imported Primary Secondary export imported sumption
United
States 305,500 310,500 8,500 13,500 310,500 50,000 21,000 339,500
Australasia 206,000 4,000 202,000 ... 4,000 ... ... ... 4,000
British
Isles 50,000 65,000 ... 15,000 65,000 6,000 ... 143,500 214,500
Canada 24,000 ... 24,000 ... ... ... ... 20,000 20,000
Burma,
Indo
China,
etc. 18,000 ... 18,000 ...
France and
French
Africa 69,000 63,000 6,000 ... 63,000 20,500 ... 5,500 89,000
Italy 40,000 ... 40,000 ... ... ... ... 12,000 12,000
Belgium 11,000 218,000 ... 207,000 218,000 3,500 7,500 ... 84,000
China 5,000 2,500 2,500 ... 2,500 ... ... 7,500 10,000
Greece 12,000 ... 12,000
Japan 10,000 8,000 2,000 ... 8,000 ... ... 4,000 12,000
Russia 35,000 13,000 22,000 ... 13,000 ... ... 23,500 36,500
Holland ... 27,000 ... 27,000 27,000 3,000 25,500 ... 4,500
Mexico 30,000 ... 30,000
Norway 15,000 10,000 5,000 ... 10,000 ... 10,000
Spain 50,000 15,000 35,000 ... 15,000 ... 8,500 ... 6,500
Sweden 10,000 6,000 4,000 ... 6,000 ... 6,000 ...
Austria-
Hungary 24,000 24,000 ... ... 24,000 3,000 ... 17,500 44,500
Germany 163,500 312,000 ... 148,500 312,000 18,500 75,000 ... 255,500
Other ... ... ... ... ... 1,500 ... 45,000 46,500
Total 1,078,000 1,078,000 411,000 411,000 1,078,000 106,000 283,500 278,500 1,179,000
In Arkansas the ores are of similar character and mode of occurrence and are
found in the same formation and also in the Ordovician limestone. The Lavender
Mining & Milling Co. is the largest operator and the production has been largely
carbonate ores.
The Upper Mississippi region comprises deposits in nearly horizontal limestones
of Ordovician age. Three-fourths of the output of this district is made by five
companies: the Mineral Point Zinc Co., a subsidiary of the New Jersey Zinc Co.,
with seven mines; the Vinegar Hill Zinc Co., with six mines; the Wisconsin Zinc
Co., a subsidiary of the American Zinc, Lead & Smelting Co., with four mines; the
Frontier Mining Co., with five producing mines; and the Cleveland Mining Co.,
with two mines. Other important companies are Burr Mining Co., Block House
Mining Co., M. & A. Mining Co., B. M. & B. Mining Co., and Oliver Mining Co.,
a subsidiary of the U. S. Steel Corporation. All of the mines are equipped with
milling plants. The production of the district shows a steady growth.
The zinc deposits of southwest Virginia and northeastern Tennessee occur as
disseminated replacement breccia along crushed and faulted zones in folded
Cambro-Ordovician limestones, and also as oxidized ores in clays residual from
the weathering of the same limestones. The gangue is calcite and dolomite. The
American Zinc Co. is the largest operator in Tennessee; it has a milling capacity of
3,000 tons daily and zinc-blende ore reserves greater than 6,000,000 tons averaging
between 4 and 5 per cent. zinc, from which 60 per cent. zinc-blende concentrates
are made. This company is a subsidiary of the American Zinc, Lead & Smelting
Co.
The Western province comprises most of the western states; it extends north into
British Columbia and south into Mexico. The chief subprovinces are those of
Leadville, Butte, and Coeur d’Alene.
The Leadville deposits are found in strata varying in age from Archean to
Cretaceous, which have been intruded by igneous rocks. The ores are mainly
replacements of limestone and occur in large masses. This district first became of
importance in zinc production upon the recognition of smithsonite and calamine in
the large masses of oxidized ores. Of recent years sulphides form an increasing part
of the production, now coming largely from deeper levels. The ores carry gold,
silver, manganese, copper and sometimes bismuth. The United States Smelting
Refining & Mining Co., the Empire Zinc Co., a subsidiary of the New Jersey Zinc
Co.; the Western Mining Co., the Downtown Mines Co., the Wellington Mines Co.,
at Breckenridge; and the Mary Murphy mine, at Chalk Creek, are the largest
operators in this region.
The Butte ores occur as veins in igneous rocks. The area in which zinc ores
predominate surrounds that of important copper veins on three sides. On the border
of the two areas, zinc-silver ores predominate in the upper levels and copper in the
deeper workings. Many of the present zinc mines were formerly worked for silver.
These complex zinc ores have been made available by the successful application of
oil flotation and electrolytic deposition. The Black Rock mine of the Butte &
Superior Mining Co., the Elm Orlu of W. A. Clark & Son, the Alice, and several
other mines of the Anaconda Copper Mining Co., and the North Butte Mining Co.
are among the most important producers. The twelve mines yielding zinc in 1915
together have immense reserves. The ores all carry lead and silver and some pyrite,
and many contain copper and gold.
The Coeur d’Alene subprovince comprises a number of mining districts in
Idaho, at least five being zinc producers. The Interstate-Callahan, in the Beaver
district, is the largest zinc mine in the state. The ore is remarkable for the small
percentage of minerals other than sphalerite, averaging 28 per cent. zinc.
The Northeastern province comprises important deposits at Franklin, New
Jersey, and in the Adirondack Mountains in New York, and others of minor
importance in the New England states. It is characterized by deposits of igneous
metamorphic origin in Pre-Cambrian limestone. The Franklin deposits, in New
Jersey, consist chiefly of franklinite, willemite and zincite in a gangue of calcite,
rhodonite, garnet, pyroxene, magnetite and hornblende. Willemite is separated
magnetically from these ores and used to produce a very high-grade spelter free
from lead and cadmium and therefore in great demand for certain purposes. The
other classes of ore are smelted for the production of zinc white and spiegeleisen.
These mines, owned and operated by the New Jersey Zinc Co., have produced
more than 1,500,000 tons of zinc in the form of spelter and zinc oxide. The
Edwards-Balmat district, in St. Lawrence County, New York, comprises an area
two to three miles wide and fifteen miles long, of Pre-Cambrian limestone. The ore
occurs in lenses and is a mixture of sphalerite, pyrite and a little galena with a
gangue of dolomite. Separation is effected by magnetic tables. The typical ore
contains: sphalerite, 25.5 per cent.; galena, 1.43 per cent.; pyrite, 12.4 per cent.;
barite, 3.9 per cent. The ore reserves of the Northern Ore Co., the largest operator,
are known to exceed one million tons.
Germany.—Imperial Germany comprised most of one metallographic province
of major importance, Silesia, and other districts ranking as follows: Upper Silesia;
Rhenish Prussia; Westphalia; Saxony; Hanover; and Nassau.
The major part of the mineral province of Upper Silesia lay within the
boundaries of Germany in 1914. Once it was part of the Kingdom of Poland,
except for portions included in the old empires of Russia and Austria. The pre-war
production of zinc ores from Russian Poland was entirely from this metallographic
province. The deposits, which contain lead and zinc together, occur in Triassic
formation overlying Carboniferous rocks that carry important seams of coal. This
juxtaposition of ore and fuel has furnished an ideal basis for the great smelting
industry that has been developed, and facilitates the smelting of low-grade ores.
The ores are said to average 17 per cent. zinc and 5 per cent. lead. They come from
two ore horizons. The lower is characterized by blende, with a little galena and
marcasite; the upper or lead horizon comprises a very persistent sheet of galena
0.05 to 0.30 meters thick, which generally is underlain by red calamine. The blende
deposits are extensive and will be productive for a long time.
In Rhenish Prussia, zinc ore (smithsonite) deposits are found in strata of
Devonian age. These deposits are approaching exhaustion. The chief zinc deposits
of Westphalia are in Devonian strata. The historic mines at Freiberg (Erzgebirge),
in Saxony, produce a small quantity of blende from the concentration of galena
ores. The blende carries considerable iron and silver and some of it contains traces
of tin. These mines are controlled by the Saxon government.
A considerable quantity of blende ore is concentrated as a by-product in the
dressing of the lead ore of the Upper Harz, Hanover. The ore of Rammelsberg, in
the Lower Harz, occurs in a bed interstratified with lower Devonian slates and
sandstones; it is an intimate mixture of blende, galena, pyrite, chalcopyrite, and
barite and some calcite and quartz. Zinc is produced as a by-product of lead ores in
the valley of Lahn (Nassau), where a series of strong veins are found in Lower
Devonian strata.
Australia.—The zinc resources of the Commonwealth of Australia are chiefly
in New South Wales and Tasmania. The former has been the chief source of zinc in
the past, but the Tasmania deposits are now being rapidly developed and equipped
for production.
The most important source of zinc ore in New South Wales is the great Broken
Hill lode, where operations began in 1884. The country rock comprises crystalline
schists and gneisses. Between the oxidized and primary sulphide ores was a thin
zone of secondary sulphides. The early operations in the district were for lead, and
immense dumps accumulated of zinc-bearing ores sorted out or of zinc-bearing
tailings from the concentration of the lead ores. In 1903 these dumps were
estimated at 5,687,400 tons carrying 18.6 per cent. zinc. With the development of
demand for zinc sulphide ores and of oil flotation methods of separation and
concentration these dumps became important sources of zinc concentrates, but
many of them are approaching exhaustion. The sulphide ores are a close mixture of
galena and zinc blende, carrying silver. There are two classes of these ores,
distinguished as silicate-gangue ore, and calcite-gangue ore. The silicate gangue
ore bodies carry rhodonite, garnet and quartz and are richer in zinc and silver than
those of calcite gangue.
Eight mining companies are now at work. In the order of the importance of their
output and ore reserves, these companies are: Broken Hill South Silver Mining
Co.; Broken Hill North Mining Co.; Zinc Corporation; Sulphide Corporation;
British Broken Hill Proprietary Co.; Broken Hill Proprietary Co., Block 10; and
Broken Hill Proprietary Co., Block 14. The estimated ore reserves of all the mines
approximate 12,000,000 tons.
The Broken Hill South Silver Mining Co. has ore reserves estimated at
3,350,000 tons, and is the largest producer. Broken Hill North, Amalgamated Zinc
(de Bavay), Zinc Corporation, and Barrier South Ltd. are controlled by Govett and
associates, a group of Australian capitalists. The Amalgamated Zinc Co. in 1913
treated 498,289 tons of tailings, obtaining 140,098 tons zinc concentrates, carrying
zinc, 48.9 per cent.; also lead concentrates amounting to 1,584 tons, carrying 57.1
per cent. lead. The Zinc Corporation, a company formed by Bewick, Moreing Co.,
has ore reserves estimated at 1,504,211 tons, averaging 14.8 per cent. lead, 9.2 per
cent. zinc, and 2.5 ounces of silver per ton. The mine of the Broken Hill
Proprietary Co. is, according to last reports, nearly exhausted.
The principal deposits of Tasmania are those of the Primrose, Hercules, and
Tasmania Copper Mines, all owned by the Mount Reed Rosebery Co., affiliated
with the Mount Lyell Mining & Railway Co. The state geological staff estimates
reserves at 1,272,500 tons averaging 29.79 per cent. zinc, 8.89 per cent. lead, 12.16
ounces of silver and 0.17 ounces of gold per ton.
Italy.—The zinc production of Italy is derived from the Iglesias district of
Sardinia, and the Province of Bergamo. The Iglesias district is in the southeastern
part of the island of Sardinia. The ores are oxidized and mostly worked by open
pits. They are mined and milled by two Italian companies, Societa di Monteponi,
and the Societa di Pertusola. The ores have usually been smelted in Germany,
England or Belgium. The Bergamo mines, in the Province of Lombardy, are
worked by the English Crown Spelter Co., which ships the ore to Swansea, Wales,
for smelting.
Algeria.—Algeria produced 82,256 tons of zinc ore in 1913. Of the 78,973 tons
whose origin is known, 31 per cent. of the total was extracted by Belgian
companies and the remainder was produced by French operators.
Japan.—The only important zinc-producing district in Japan is the Province of
Hida. The principal companies are the Osaka Zinc Mining & Smelting Co., Takata
& Co., the Rhuara Mining Co., and the Mitsui Mining Co. The largest producer is
the Kamioka Mine of the last named, which produces annually about 10,000 tons.
The Osaka Mining Co. also produces from Korea (Chosen) about 15,000 tons of
ore annually.
The annual smelting capacity in Japan, with all projected construction
completed, is estimated at 300,000 tons of zinc ore, whereas the domestic output of
ore is about 50,000 tons. The difference has been imported chiefly from Siberia,
China, Tonkin and Australia. In the future it is expected that the foreign ores will
come chiefly from China and Siberia. The domestic spelter production has reached
about 60,000 tons annually and the domestic consumption 29,000 tons.
Spain.—Zinc ores are produced in the provinces of Santander, Murcia, Tereul,
Biscay and Guipuzcoa. The only district of importance is that of Santander, where
there is a zinc smelter owned by the Compagnie Royale Asturienne des Mines
(French). Some of the ore is smelted in France. Most of the Spanish ores are
calamine and occur almost without exception in limestone. Eighty per cent. of the