No cobalt lode deposits are known in coastal areas of the United States and the possibiUty of finding 

 lode deposits in the continental shelves is considered very remote. 



COPPER 



Uses. Copper is one of the most versatile and widely used metals. Its superior electrical conductivity 

 and alloying characteristics are responsible for its importance in the industrial economy. About 50 per 

 cent of all copper consumed is for electrical applications; most of the rest is for alloy manufacture, 

 chiefly brass. 



Present levels of utilization of copper in millions of short tons. 



World (1966 production) 6.6 



United States (1966 demand) 2.4 



Range of demand projections in millions of short tons to the year 2000. 



Area Projection base 1970 1985 2000 



Prospective supplies and prices. Measured reserves of copper ore in the United States are adequate for 

 domestic demands over the next ten years. However, these reserves represent only the working 

 inventory. The sum of all categories of U.S. reserves are beUeved sufficient to sustain projected domestic 

 demand until 2000. 



World reserves have not been defined as clearly or comprehensively as domestic reserves. However, 

 the rate of new discoveries and the sum of the various classes of reserves— measured, indicated, and 

 inferred— seem to assure an adequate supply of copper to meet world demand until the year 2000. 

 History shows that the grade of copper ore mined has constantly declined as improving technology has 

 made it possible to mine lower grade materials without increase in costs; as a result, reserves have tended 

 to increase. With technology continuing to improve this trend seems likely to continue. No shortage of 

 copper ore seems likely at least for the period of the projections. 



Copper prices have been rising recently. Domestic prices have increased steadily from a 1962-63 

 average of 30.82 cents per pound to an estimated 1967 average of 38.28 cents. This trend is generally 

 expected to extend into 1968, but competition from other materials will exert a growing restraint on 

 each increase. Industry statements suggest that the next several years will see production capacity in 

 excess of demand, with a consequent buildup of stocks that are now depleted. 



World prices, in contrast to U.S. prices, fluctuate widely. In 1966, the London Metal Exchange 

 monthly average for spot copper ranged from a low of 51.1 cents per pound to a high of 76.8 cents per 

 pound. In 1967 these averages declined to 45.1 cents before a new series of increases began in May. 



Possible substitute materials. Aluminum is the principal substitute material for copper as an electrical 

 conductor. Aluminum wire with a steel core has displaced copper for long-distance transmission Unes. 



VlI-134 



