RI 8033 Capital And Labor Requirements For Iron Ore Mining And Beneficiating

The inputs of capital and labor to support future iron ore production were developed by the Bureau of Mines from projections of iron demand and estimates of capital and labor requirements. Trends in technologic change and the organization of production were analyzed. Labor requirement schedules for iron ore mining and beneficiating were constructed from aggregate inter-temporal trends and 1970 cross-sectional analysis of mines and mills. A sup-ply schedule of the capital requirement for mine-mill-pellet plants was developed from U.S. and Canadian experience. The structure of demand for iron to the year 2000 was examined as well as the availability of resources. Projections of capital and labor requirements to 2000 were constructed under two international patterns of iron ore supply to the United States. The most likely model is for a continuation of the 70 percent United States-30 percent foreign shares, expanding at an average 2.0 percent growth rate to 2000, and supported by a cumulative gross capital investment of $3.8 billion constant 1967 dollars and a labor force in the United States of 29,800 by 2000. The information content of projections is discussed, and the possible effects of international forces on supply are considered. A generalized methodology for estimating capital and labor requirements in other mineral industries also is included.