RAW MATERIALS
contracts covering the major part of the anticipated $3,300 tons of additional dafly ore milling
capacity would be executed within the next few months,
The recent survey also disclosed that certain areas had adequate milling capacity in ree
lation to total developed ruserves but the proportion of this capacity available for ores of
independent operators was or might be insufficient because the ore reserves controlled by
independent operators had increased since the concentrate procurement contracts were
negotiated, During the quarter negotiations were being conducted with several mill operators
in such areas for contract extensions to provide a stretchout in the production of company-
controlled ores which would result ina greater market at this time for the ores produced by
independent operators in the areas affected,
*
Process Development
The Grand Junction pilot plant has operated continuously since 1955 to test new processes
and process {mprovements for recovery of uranium and to supply engineering and cost data
for use in the negotiation of concentrate purchase contracts. The work for which this plant had
been constructed was successfully concluded at the end of the quarter, and the facility was
closed. The process development work at the Raw Materials Process Development Laboratory
at Winchester, Massachusetts, was also being concluded at the end of fiscal year 1958, However, the laboratory will continue to operate on a reduced basis to investigate the possibility
of health hazards in connection with mill operation and discharge of waste products.
A comprehensive study of the AEC-owned Monticello mill is being undertaken to determine
whether this mill is meeting the standards established by the Division of Licensing and Regulation for uranfum milling operations. If any of the standards are not being met, corrective
measures will be developed and put into effect. The Division of Biology and Medicine and the
Winchester laboratory will participate in the Monticello study. The results of this study should
contribute to the development of survey procedures and corrective measures that can be used
in privately owned mills.
Ore Reserves
o
Estimated uranium ore reserves in the United States remained approximately the same
as reported for hfarch 31, 1958, about 78,000,000 tons averaging 0.27 percent U,0,.
Private Sales of Uranium
On May 8 the AEC announced that domestic producers of uranium ores and concentrates
ery
may now make private sales of these materials to domestic and foreign buyers for peaceful
uses of atomic energy, subject to AEC licensing regulations.
FOREIGN OPERATIONS
Canada
ed
a
DOE ARCHIVES
Six additional mills came into operation during the quarter, completing the installation of
Canadian ore processing capacity financed under special price contracts. Two companies
which planned milis have been unable to arrange financing, and the possibility of their financing
the construction of production facilities appears remote. Nineteen plants with a total milling
capacity of approximately 42,000 tons of ore per day were in operation at the end of June.”
Canadian procdiction is approaching a rate of about 15,000 tons of U;Q, per year. This isa
maximum figure based on regulation of deliveries after July 1, 1958, limiting the plants to the
UNCLASSIFIED
~Historews og
Depariment ef Forty