MERCURY 



405 



Table 80. — Mercury supply and demand in the United States 



[Thousands of flasks] 



1850-1949 1960-59 1960-69 1970 1971 



Mine production (started 1850) 2,979 204 248 27.3 17.6 



Secondary production (started 1946) 47 '94 '8.1 n6.7 



Imports (started 1868) 506 231 21.7 29.7 



Total supply 



Consumption (no record before 1867) 



Exports (started 1864) 



Total demand 



Surplus or deficit , 234 -147 -9.1 



> Includes GSA sales of 72.366 flasks in 1965-69 and 701 flasks in 1970. 

 ' Includes GSA exports of 5,700 flasks to AID. 



the United States. Official figures compiled by the 

 U.S. Bureau of Mines (table 80) are somewhat 

 confusing because sales and releases of primary 

 mercury from the Government stockpile by the Gen- 

 eral Services Administration are included under 

 secondary recovery. In 1964 these releases included 

 7,000 flasks to other Government agencies and 

 10,000 flasks to the Department of Health, Educa- 

 tion, and Welfare for donation to more than 3,000 

 hospitals and schools. In 1971 there were no GSA 

 sales, but 5,700 flasks were transferred to the 

 Agency for International Development for shipment 

 to India. 



PRICES AND TARIFFS 



The U.S. price has averaged as low as $28.56 a 

 flask, in 1883, and as high as $570.75, in 1965 ; but 

 it reached an intraweekly all-time high of $775 on 

 July 1, 1965 (fig. 46). When this report was pre- 

 pared in mid-1972, the price was only $165 a flask. 



The world (London) price is generally lower 

 than the New York price by roughly the amount of 

 the U.S. tariff, but monthly averages range from 

 about $80 lower to $35 higher. 



There are no special federal taxes on mercury 

 production, although some States impose a tax on 

 the proceeds of all mines. An import tariff of $19 

 per flask in effect since 1922 was reduced to $15.20 

 on January 1, 1969, to $12.92 on January 1, 1970, 

 and to $11.40 on January 1, 1971. A depletion al- 

 lowance for new domestic discoveries of 15 percent 

 since 1932 was increased to 23 percent under the 

 Internal Revenue Code of 1954 and has continued 

 through 1971. The allowance is limited to 50 per- 

 cent of net income. 



OUTLOOK 



Until just before World War I the United States 

 produced more mercury than it consumed (fig. 47). 

 Ever since, it has relied to greater or lesser degree 

 on imports to supplement domestic mine production, 



except during the World War II period, when, with 

 high prices and some Government support, domestic 

 mines virtually filled the U.S. requirements. It has 

 been generally felt that if the price of mercury were 

 high enough. United States mining could supply all 

 domestic needs, although production response to the 

 increased price would lag 2-4 years behind the price 

 increase. In 1965 the price rose to unprecedented 

 levels, but the mine production response peaked in 

 1969 at about 29,000 flasks, which was only one- 

 third of the domestic consumption. It has become 

 obvious that, as predicted (Bailey and Smith, 1964), 

 the U.S. supply of known, or even suspected, mer- 

 cury ore of grade competitive on the world market 

 is entirely inadequate to meet domestic needs. The 

 current outlook for discovery of large high-grade 

 deposits in the conterminous United States is un- 

 promising, but in less explored southwestern Alaska 

 major discoveries may be possible. 



As a result of concern about pollution, the de- 

 mand for mercury in the United States has dimin- 

 ished considerably, but concurrently the price has 

 fallen so low that domestic mine production will 

 not supply even the reduced demand. 



Until higher grade foreign deposits are de- 

 pleted — which, it is estimated, will not be for at 

 least 25 more years at Almaden, Spain — the United 

 States will remain a net importer of mercury, ow- 

 ing to the low grade of ore available and the rela- 

 tively high cost of mining it. However, the main- 

 tenance of some domestic industry, even if for no 

 other reason than to provide a bargaining base, is 

 highly desirable. 



GEOLOGIC ENVIRONMENT 



BASIC GEOCHEMISTRY 



A little mercury occurs in almost all natural sub- 

 stances — rocks, soils, water, air, and both animal 

 and vegetable organisms — ^but analytical techniques 

 sufficiently sensitive to measure the minute amounts 

 involved have been perfected only recently. Al- 



