Editorial

POLITICAL developments, the impact of Korean warfare necessitating immediate rearmament plans, and recent developments in mining taconites have focused attention on their immediate exploitation to fill the gap created by diminishing reserves. The question of rich foreign ores versus low grade development is past-we need both sources with emphasis on the immediate large scale mining of taconites. In the past three months several things have occurred which add to the taconite picture: (1) Pellets have been used successfully in the blast furnace by Armco. (2) In Congress HR 8512 was introduced by Congressman Blatnik of Minnesota to amend the lending powers of RFC to permit long term loans on basic mining developments, particularly the taconites, which may be needed for the strengthening of the national economy. (3) Walter S. Tower, president of the American Iron & Steel Institute, announced that American steel companies are planning expansion of 6,000,000 tons of steelmaking capacities in the next few years. (4) The outbreak of war in Korea has obliged the United States to rearm and make plans for a semipermanent defense establishment to which 10 to 12 pct of the national income will be budgeted. (5) Startling new advances have been made in the Linde Air Products Co.'s jet-piercing drilling. The United States is now confronted with the problem of increasing its steel capacity and at the same time of securing enough iron ore to supply this increase as well as make provision for the rapidly decreasing supply of rich iron ore on the Mesabi range. Taconites, the low grade iron ore at the east end of the Mesabi, of which there are literally billions and billions of tons of easily concentratable magnetic ore, are the immediate answer. According to the Wall Street Journal on July 24: "Reserve Mining Co., backed by such steelmakers as the Armco Steel Corp., Wheeling Steel Co., Republic Steel Corp., is reported ready-as soon as the pending bill clears (HR 8512)-to seek a $100 million federal loan to build a taconite processing plant at Beaver Bay, Minn., to produce about five million tons (of pellets) annually of 60 pct to 65 pct in iron ore . . ." Experimental work indicates that pellets may be the final form, rather than nodules, agglomerates, or sinter. At Ashland, Ky., the Reserve Mining Co., which has obtained a