ad reserves indicated in years of consumption for 
1976. 
Although these data oversimplify the U.S. posi- 
tion in the short term, as stockpiles, increased re- 
cycling, or demand reductions are not considered, 
the long-term position is more clear. The United 
States has little, if any, potential for significant pro- 
duction of cobalt or manganese. U.S. copper re- 
serves are large, and the United States is the largest 
copper producer in the world. However, imports 
as a percentage of consumption have increased over 
recent years. Domestic nickel production is not sig- 
nificant, and is unlikely to become so until techno- 
logical advances make deposits economic.** 
The four metals most likely to be recovered from 
nodules are important to the U.S. economy. About 
two-thirds of nickel consumption goes into the manu- 
facture of capital goods. Consumer durables are the 
largest end use of the remaining one-third, with 
automobiles being the largest single element. Nickel 
is often used as the principal alloying ingredient in 
high-performance steels. An example is jet engine 
turbine blades.°° 
Manganese is also an important ingredient in steel- 
making. There is no acceptable substitute for man- 
ganese as a toughening agent and as a sulphur- 
removing or fixing agent.°* About 95 percent of 
world manganese output is used in steel production. 
Cobalt metal is used principally in alloys, perma- 
nent magnets, and cemented carbides. Superalloys 
containing from 36 to 65 percent cobalt can with- 
stand severe stress at temperatures up to 1,600 de- 
grees F. Although for some uses, cobalt and nickel 
are nearly interchangeable, and other alloying metals 
are substitutes in other uses, cobalt is clearly superior 
for many specialized uses such as carbides and some 
tool steels.°” 
Over one-half of copper consumption is for elec- 
trical uses. In 1976, copper consumption was esti- 
mated by use as: electrical, 58 percent; construction, 
14 percent; transportation, 9 percent; ordnance, 2 
percent; and miscellaneous, 5 percent.°® Although 
many other metals and materials may be substituted 
for copper in specific uses, such as aluminum for 
electrical purposes, or plastic for plumbing, copper 
often provides superior performance. 
Of the four principal metals of interest in manga- 
nese nodules, the United States is not likely to be a 
* U.S. Department of the Interior, Bureau of Mines. Mineral 
Facts and Problems, 1975 Edition. Washington, D.C., Govern- 
ment Printing Office, 1976, p. 747. 
® Arthur D. Little, Inc. “Technological and Economic Assess- 
ment of Manganese Nodule Mining and Processing,” contract 
report for U.S. Department of the Interior, Office of Minerals 
Policy and Research Analysis, Cambridge, Mass., November 
1977, pp. 62-64. 
*Ibid., pp. 74-76. 
"U.S. Department of the Interior, op. cit. note 94, p. 276. 
U.S. Department of the Interior, Bureau of Mines. Com- 
modity Data Summaries—1977. pp. 46-47. 
producer of manganese and cobalt and not likely to 
have significantly increased production of nickel in 
the foreseeable future. Our copper reserves are large, 
but imports constitute an important share of con- 
sumption. 
The interest in developing a new source for these 
metals is not because of threats of shortages, cartel 
actions, or embargoes. Rather, the interest is in 
diversifying the sources of these important metals 
so that the United States will not depend on only 
one or a few sources for any of them. 
Economic Potential of the Resource 
Manganese nodules are a marginal resource now. 
The best estimates of cost and return on investment 
publicly available °° indicate that, with current tech- 
nology, deep sea deposits can compete with land- 
based mineral deposits in the foreseeable future. 
A manganese nodule mine will produce at least 
three metals: cobalt, copper, and nickel. As mining 
and processing techniques become perfected and 
their costs are better estimated, some potential pro- 
ducers are indicating that manganese will be pro- 
duced to assure profitability. Given that all four 
metals may be produced, the potential importance 
of nodules as a source of metals is shown in table 
6—2 for various levels of production. One deep-sea 
mining operation is likely to process about 3 million 
short tons of dry nodules per year. 
Clearly, an ocean mining industry will not be 
able to operate profitably unless it can produce 
manganese, nickel, and cobalt at prices low enough 
to capture a large share of future growth. As’ low- 
cost nickel deposits are exhausted and production 
becomes concentrated in higher cost lateritic deposits, 
deep-sea output can gain a place in the market. 
Inasmuch as lateritic deposits are energy intensive, 
steadily rising energy prices will improve the com- 
petitive position of deep-sea deposits. However, if 
several operations produce simultaneously, it is pos- 
sible that world prices of manganese, nickel, and 
cobalt may be reduced. 
With neither operating history nor firm cost esti- 
mates, the economic importance of manganese nod- 
ules is necessarily speculative. Recent reports 101° 
do indicate that investments in ocean mining are 
likely to be at least as attractive as investments in 
lateritic nickel deposits in the short term with higher 
risks offset by a higher potential rate of return. The 
long-term outlook is even more optimistic as long 
as world prices hold at predicated leveis. 
* Arthur D. Little, Inc., op. cit. note 95. 
1 Arthur D. Little, Inc., op. cit. note 95. 
101 (1.$,. Department of the Interior, Ocean Mining Administra- 
tion. Ocean Mining—An Economic Evaluation, by Rebecca L. 
Wright, Professional Staff Study, March 1976. 
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