Climax Molybdenum Section - Diversification

In the spring of 1950, just two years after the inauguration of the domestic uranium program by the U. S. Atomic Energy Commission, the company entered the uranium mining and milling business through a newly formed subsidiary, Climax Uranium Co. This was the first venture into a new field of mining for Climax, which became the first old-time mining company, other than the vanadium producers, to become active in the embryo uranium industry. Twenty-five years earlier, Arthur Bunker, president of Climax Molybdenum, organized and operated the U. S. Vanadium Co. at Rifle, Colo. With this background, he viewed the budding industry of the Colorado Plateau with much interest. Upon its formation, the new subsidiary entered into a con- tract with the U. S. Government and the potential uranium-vanadium properties of Minerals Engineering Co. were assigned to Climax Uranium Co. Funds for the construction of a processing plant and working capital were advanced by Climax Molybdenum Co. The old sugar mill building of the Holly Sugar Co. in Grand Junction was leased to house the extractive plant. Construction of facilities, which were based upon a new process developed for the treatment of both uranium and vanadium ores, was completed and the mill was placed in operation early in 1951. Subsequent to that time several alterations were made and the capacity of the plant increased. In terms of recoveries, the plant has proved to be one of the most efficient on the Colorado Plateau