Trends

PHILIP D. BLOCK, JR., vice president of Inland Steel Co., visualizes a fine future for the Menominee Range of the Upper Peninsula of Michigan. He sees a future unclouded by threat from foreign ore imports or the development of low grade ore processing in Minnesota. The statement was made during the opening of Inland's new Cayia mine near Crystal Falls. Inland, according to the vice president, is planning to use an increased amount of the high phosphorous ores found on the Menominee Range. He said that other steel companies will probably do the same, because the steel industry has learned how to use ores of high phosphorous content. He said: "I do not mean to imply that we can use an unlimited amount of high phosphorous ores or that we can burden our blast, furnaces with 100 pct high phosphorous ores, but we have reached the point where we can absorb a much larger percentage of these ores without any detrimental effects. Foreign ores and lowgrade Minnesota ores cost too much to offer real competition, Block said. Transportation costs from the Menominee range to steel producing centers in Chicago and on Lake Erie are less than for any other range in this country. In the meantime, the American operators of the Bomi Hills iron ore mine in Liberia, have reportedly signed a new agreement with the Government. Several months ago, President Tubman of Liberia expressed a definite dissatisfaction with the original contract. Informants state that the agreement only needs the approval of the Export-Import Bank, which loaned Liberian Mining Co. $4 million to develop the iron ore properties. Majority stockholder of the Liberian Mining is Republic steel, with 61.57 pct of the stock. Under the new contract, the Liberian Government will start to share in the profits when the indebtedness is liquidated and the return of invested capital accomplished, or April 1, 1957, whichever is earlier. Under the old agreement the Liberian Government received a 5 cent per ton royalty and an additional sum based on the price of pig iron. The royalty rate reached more than 17 cents per ton this year. After debt liquidation the Liberian Government will receive 25 pct of net profits for the first five years; 35 pct for the next ten years; and 50 pct thereafter. Until the Government starts to share in profits it will receive a royalty of $1.50 per ton in U. S. currency, in addition to royalties provided for in the old agreement.