Dimensions And Changing Patterns Of Supply And Demand (ECONOMICS OF THE MINERAL INDUSTRIES )

The endlessly changing pattern of mineral supply and demand offers opportunity to the alert and can bring disaster to the unwary. The discovery of ore bodies, the invention of extractive processes, the provision of new transport facilities, the political stabilization of underdeveloped areas, and many other changes can increase supply dramatically. Such new outpourings of mineral wealth from ore bodies bring fortunes to their developers, and consumers frequently find their competitive positions decidedly improved by new and cheap sources of supply. On the other hand, operators of marginal properties can find competition from newly opened high-grade mines intolerable. Consumers that have depended on the products of nearby, high-cost mines may find new, remote, low-cost supplies advantageous only to their competitors. The invention of new prospecting methods can have spectacular effects. Shortly after World War I the discovery rate of petroleum pools began to decline. The leading prospecting technique of that day, the projection downward of surface reflections of geologic structure, was proving less rewarding. Prophets foretold an oil shortage in the near future. But at that very moment scientists were perfecting the application of seismic waves to reveal underground oil-bearing geologic structures. As these geophysical methods were put into commercial use the whole outlook changed-the problem of the 1930's became how to cope with the surplus from discovery, not how to meet the ever rising demand. Many lead mines were being abandoned as unprofitable about this same time because the penalties charged by smelters for the zinc in the ores and concentrates more than counterbalanced the payments for lead and silver. Then selective flotation (at the time called differential flotation) appeared,