US government’s stance on minerals issues draws heavy criticism at mining meetings

President Reagan may be "a nice guy," but he is "misinformed, misdirected, and misadvised," when the subject is the state of the US copper industry, according to Sen. Dennis DeConcini (D-AZ). DeConcini took the opportunity as keynote speaker at the Arizona Conference AIME in Tucson to fire a few salvos at the Reagan Administration's industrial policies. "American copper used to stand above the rest of the world," he said. Now 21,000 copper workers, about half of the total, are out of work due to less expensive foreign imports. "Those 21,000 are real people, not statistics," he said. US production has been cut to one-third of its capacity, he said. And the Administration shows no signs of changing its position to favor US copper protection. "Third world copper towns are booming," he continued, "while ours are dying." Regardless of profits and despite oversupply, Chile continues to produce, he said. And, while US mines continue to close, "the International Monetary Fund (IMF) is handing more than $1 billion to six copper producing countries." President Reagan wanted $8.6 billion from the IMF. "I'm damn mad about it," DeConcini said. "For the life of me, I can't understand how this Administration can stand by while this industry is brought to its knees." Last year, the International Trade Commission ruled that imports were injuring domestic copper and recommended relief. The President, DeConcini said, vetoed those recommendations. DeConcini softened his tough talk a bit saying the President's image makes it difficult for people to not like him or stand up to him. "How can anyone stand up to President Reagan?" he asked. "He's such a nice guy. But it's time someone did. He's just misinformed, misdirected, and misadvised. We must take real action and we must have a president who understands this." DeConcini said he has introduced legislation aimed at helping domestic copper. It would limit copper imports to 385 kt/a (425,000 stpy). Imports now stand at about 635 kt/a (700,000 stpy). The bill would also impose a $0.33/kg ($0.15-per lb) duty on foreign copper. DeConcini called the duty a sort of "environmental equalizer" because that is the amount domestic producers must spend on pollution control devices. Foreign competitors do not have such controls, he said. "I face people who are damn mad that this country is being pushed around," he concluded. "It's time we stand up and say we can be competitive. If they (foreign countries) put an import duty on our stuff, we will do the same. It's time this country stopped being the nice guy." As if to underscore domestic copper's desperate situation described by the Senator, Duval Corp. announced about the same time as the meeting that it has nearly closed its eastside office in Tucson. Staff has been reduced from 120 to four. Spokesman Dean Lynch said the four will consist of President A. Everett Smith, a secretary, a person in environmental affairs, and another in purchasing. Duval is also selling an office and a laboratory in Tucson. Pennzoil Co., Duval's parent, has been trying to sell the company for more than a year. It began dismantling Duval in November 1984. Pennzoil took over its subsidiary's profitable sulfur operation in Texas, sold the New Mexico potash facility, and spun off gold interests in Nevada, forming Battle Mountain Gold. Northwest Mining Association - Spokane Rock Jenkins, Associate Editor The true role of minerals needs to be realized by both the policy makers and the people of the US, according to Robert Dale Wilson, director of the Office of Strategic Resources, US Commerce Department. In addition, a re-thinking of the theory of free trade and competitive advantage is necessary. Wilson made his remarks in December at the opening luncheon of the 91st Annual Convention of the Northwest Mining, Association in Spokane, WA. At a later press conference, Wilson said one of the mining industry's main problems is that its presence in Washington has been reduced in the past few years. Part of this can be seen by events within the American Mining Congress (AMC), he said. "The problem with AMC," Wilson said, "is that in 1981, when Reagan came in, no problems were seen for mining and a lot of their (AMC's) lobbyists were let go." He