Mining News

Development: Iron Ore In Peru Utah Construction Co., of San Francisco and a Peruvian Government corporation have signed an agreement for development of a large iron orebody in Peru. Most tests show 60 pct iron or better. Most of the ore is magnetite. Although ore will be shipped mainly to Eastern U. S. blast furnaces, shipments to the West Coast may develop as the orebody opens up. The construction firm indicated three American steel companies have shown interest in the project. The orebody is located 300 miles south of Lima and about 15 miles from the coast at the same longitude as New York City. Allen D. Christensen, executive vice-president of Utah Construction noted that the distance is shorter between Peru and the East Coast. The ore deposit measures about four to five miles in one direction and 10 miles in the other. As many as 15 outcroppings within these limits have been reported. Several of the outcroppings are thousands of feet long by several hundred feet wide, Christensen said. Shipments between 100,000 and 200,000 tons of ore per month are projected by the company. Cost of opening the mine to production may go over $5 million, Christensen said. It would include building of docks for ocean going vessels, housing, and heavy duty mining and processing equipment. The contract with the Peruvian government gives Utah Construction six to eight months for additional tests and a 20 year concession for mining the orebody. Peru will collect royalties on all ore. The company will also supply about 300,000 tons per year for an electric furnace to be installed by the Peruvian Government at Chimbote. No steel is produced in Peru now. Utah Construction formed the Argonaut Mining Co. last year, and was shipping iron ore from British Columbia to Japan at a rate of more than 50,000 tons a month, before winter weather decreased operations.