Copper Queen

ON FEBRUARY 4, 1952, the Phelps Dodge Corporation signed Contract GS-00P(D)-12068 with the United States Government. This interesting document dealt with the "Bisbee East" project as part of the Government's program to increase the supply of needed copper by encouraging private enterprise to expand production. The ore deposit involved was a relatively small body of low-grade ore lying east of the remnants of the old Sacramento Hill deposit that was exploited with indifferent success from 1923 to 1931, as related in THE PORPHYRY COPPERS. Planning for the entire enterprise had been directed from the start by Harrison M. Lavender, who in 1945, succeeded Percy G. Beckett as vice-president and general manager for all of Phelps Dodge's Western mines and smelters. The untimely death of Mr. Lavender in 1952 prevented him from seeing his plans brought to fruition; but in his honor the mine was fit- tingly named "The Lavender Pit" and was so dedicated on August 7, 1954. The Copper Queen Branch operates under- ground mines at Bisbee (production in 1955 was 28,000 tons) ; but, as this volume is concerned only with Porphyry operations, this chapter deals only with the Lavender Pit project, or as the Government knows it, Bisbee East. My reason for going into some detail regarding the floor-price contract is that it is fairly typical of contracts made by the Government in connection with a half-dozen other copper-expansion projects; and, incidentally, with various projects involving other strategic metals. Phelps Dodge did not seek a loan or other financial aid. The only encouragement asked consisted of (a) the privilege of a five-year write-off (commonly called rapid tax amortization)