Philippine Chromite Now a Factor in World Market

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Institute of Pacific Relations Philippine Chromite Now a Factor in World Market Author(s): Alvin Barber Source: Far Eastern Survey, Vol. 8, No. 5 (Mar. 1, 1939), pp. 58-59 Published by: Institute of Pacific Relations Stable URL: http://www.jstor.org/stable/3022838 . Accessed: 16/06/2014 07:07 Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at . http://www.jstor.org/page/info/about/policies/terms.jsp . JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact [email protected]. . Institute of Pacific Relations is collaborating with JSTOR to digitize, preserve and extend access to Far Eastern Survey. http://www.jstor.org This content downloaded from 195.34.78.242 on Mon, 16 Jun 2014 07:07:14 AM All use subject to JSTOR Terms and Conditions

Transcript of Philippine Chromite Now a Factor in World Market

Institute of Pacific Relations

Philippine Chromite Now a Factor in World MarketAuthor(s): Alvin BarberSource: Far Eastern Survey, Vol. 8, No. 5 (Mar. 1, 1939), pp. 58-59Published by: Institute of Pacific RelationsStable URL: http://www.jstor.org/stable/3022838 .

Accessed: 16/06/2014 07:07

Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at .http://www.jstor.org/page/info/about/policies/terms.jsp

.JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range ofcontent in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new formsof scholarship. For more information about JSTOR, please contact [email protected].

.

Institute of Pacific Relations is collaborating with JSTOR to digitize, preserve and extend access to FarEastern Survey.

http://www.jstor.org

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58 Philippine Chromite Now a Factor in World Market March 1

dalay. The use of water transport on the Irrawaddy River to Rangoon, from which point ships sail to Eu?

rope, would be not only an economy but would reduce

by several days the time for ships plying between

Europe and French Indo-China. It is thought, how?

ever, that the Burmese Government is desirous of re-

quiring the use of the government railways, since ship? ping trade on the river is in private hands. They argue that the trade should be confined to the railway to

repay the expense involved in extending the line to con? nect with any Chinese line built southwest from Yunnan. Though nothing final has resulted, this newly expanding Sino-Burmese trade is undoubtedly com-

manding interest; in years to come we may well see a new railway inlet into China, a route not only far safer from Japanese attack than any now existing, but one which would tap relatively undeveloped territory in this vast country. Norman D. Hanwell.

PHILIPPINE CHROMITE NOW A FACTOR IN WORLD MARKET

Since the announcement that important chromite

deposits had been discovered in the Philippines (see Far Eastern Survey, Jan. 30, 1935, p. 13), considerable

progress has been made in building a new domestic

mining industry spoken of in some quarters as a poten? tial rival of Philippine gold. War clouds bring pros- perity to producers of chromium, a constituent of the ferrochrome alloys which are essential for war pur- poses. Competitive rearmament has accordingly in? creased the demand for this metal already stimulated

by the steady extension of its uses in other fields and

general recovery in the base-metal market. These fac? tors furnished a powerful impetus to the Philippine industry, quickening the tempo of exploration and pro? duction. In turn, they have led to cynical reappraisals of the ultimate political destiny of the Commonwealth should control of its chromite resources prove vital either to the United States or other major powers.

Although the Philippines now rank as an important producer of chromite, the industry is so new that very little was known of deposits there prior to 1933. In

recent years, however, extensive exploration has yielded workable bodies of ore occurring in the ultrabasic rocks

from northern Luzon to Mindanao. The west and

southeast coasts of Luzon, the southern part of Panay,

parts of Samar, Dinagat Island and the northern coast

of Mindanao all contribute to the known chromite

reserves. The first deposit of commercial consequence found

and exploited was the Florannie Mine, near San Jose, on the Caramoan Peninsula in Camarines Sur. Here

the Florannie Mining Company, under an operating agreement with the Benguet Consolidated Mining Company, has developed approximately 100,000 tons of good grade ore running better than 50% in chromic oxide content. This entire output was contracted to the Union Carbide Company and shipments began in

1936. By November 1938 some 70,000 tons had been

sent to the United States. Estimates of remaining un- mined reserves run from 30,000 to 50,000 tons. Other small bodies of good chromite are found in the same section and will probably be mined by the Florannie

Company, which is the only producer operating there. While the Florannie Mine has accounted for the

largest Philippine export tonnage to date, by far the most spectacular discovery of chromite involves the area along the foothills on the west side of the Zambales Mountains in Luzon. These deposits, said to be the largest in the world, aroused the early interest of the United States and Philippine Governments, which exercised their right of reservation under the basic mining law. While several government reserva- tions remain in force, one was vacated. In this latter area Consolidated Mines acquired holdings which it

subsequently turned over to the Benguet Consolidated

Mining Company on a profit-sharing basis. Tonnage estimated at more than 10,000,000 tons has now been

proved. Unfortunately the ore is not of the same high quality as that produced at the Florannie Mine. Aver-

aging not more than 34% in chromic oxide content, it is below the usual standard for metallurgical purposes. Aluminum oxide is present, however, in a proportion very desirable for the manufacture of refractory mate? rials. In addition, recent reports from the Philippines speak of new methods devised to permit the use of this ore in the manufacture of metallurgical products. Should these hopes be fulfilled a substantial expansion of production would be indicated. Aside from the im-

mense Benguet Consolidated holdings, there are esti? mated ore reserves of more than 250,000 tons con? trolled by several other private companies operating in the Zambales area. This is all richer in chromic oxide. Ore of metallurgical grade, for example, is taken from the Acoje Mine at Santa Cruz, which has esti? mated reserves of 150,000 tons. Wartime conditions, which have the effect of lowering grade requirements, would undoubtedly see a vastly increased production.

When the extent of the Zambales deposits became

apparent, explorations were hastened in other parts of the archipelago, with varying success. On the island of Samar a number of small chromite lenses of shipping grade have been discovered and some ore was shipped to Europe from this source. Difficulties have been

encountered, however, and development is delayed. The

same situation applies to the chromite of superior

quality found on Dinagat Island, south of Leyte. Transportation from the mine and the absence of any suitable ocean shipping point are here the major prob-

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1939 Protected and Railway Villages in Manchuria 59

lems. Mindanao ore, discovered along the north coast in the foothills south of Cagayan, Oriental Misamis, is scattered and expensive to operate. Some 10,000 tons have so far been uncovered, showing the chromite to be of high quality, and in the event of war it would

certainly be mined.

Philippine export statistics reflect the growth of the

industry. Prior to 1935 chromite did not figure in the

export list and in that year only 1,292 metric tons were shipped. In 1936, 11,890 metric tons were ex?

ported and in 1937 shipments mounted very rapidly, reaching 69,856 metric tons. Tax collection figures for the latter year show that 76,416 metric tons were

actually removed from Philippine mines. In 1937 world

production of chromite rose to an all-time peak, more than doubling the low figure of the depression and ex-

ceeding 1,000,000 tons for the second successive year. Despite that fact, Philippine exports of almost 70,000 metric tons were an important source of supply in the world markets, comparing with the following tonnage figures in other leading producing countries: Southern

Rhodesia, 276,000 tons; Soviet Union, 219,000 tons

(1936); Union of South Africa, 169,000 tons; Turkey, where chromite mining has developed very rapidly in recent years, 164,000 tons (1936); and Cuba, mostly low-grade ore, 95,000 tons.

In the first six months of 1938 Philippine exports of chromite continued at the same high rate. During this time 57,400 metric tons of ore, valued at Pl,393,120, were shipped, compared with 17,201 metric tons for the same period in 1937, an increase of 234%. Ship? ments dropped in the second half of the year, amount?

ing to less than 10,000 metric tons (through October)

against more than 25,000 metric tons for the four-month

period, July-October, 1937. In the disposition of Philippine chromite, the United

States has been able to command the market. At the

outset, Japan, by commercial pressure and persuasion, sought to contract for the entire output of the Islands

(see Far Eastern Survey, April 14, 1937, p. 85). This

plan was unsuccessful. In 1935 Philippine trade re- turns indicate shipments of 1,071 metric tons to the

United States and 210 metric tons to Japan. In 1936 the relative percentages were approximately main-

tained, the United States receiving 9,206 metric tons and Japan 2,084 metric tons. In 1937 United States trade returns show imports of Philippine chromite

amounting to 43,648 long tons. Except for 508 tons taken by Italy in 1936, Philippine export records are

virtually barren of shipments to any countries other than the United States and Japan.

The United States is by far the largest consumer of

chromite, yet almost all of its supply must be imported. Like other major consuming countries, except Russia and to some extent Japan, it produces only a minor

fraction of its needs. In 1937 the United States im?

ported 554,000 long tons of chromite, or approximately half of world production, and of this amount the

Philippines supplied about 8%. Chromium makes steel harder and increases its ten-

sile strength. Alloyed with nickel, it is used in making armor plate. The chromium alloy steels find many other uses in the manufacture of airplanes, projectiles, guns, ball bearings, safes, tools and machine tools. The

stainless steels, largest and best known use of chro?

mium, constitute a still unfinished chapter in metal?

lurgy and industry. Chromium is extensively utilized in the automotive and transportation industries, in

building and petroleum production. Chrome plating has been widely developed for decorative purposes and for its wear-resisting qualities. In addition, 40% of

the world consumption of chromite is devoted to the

manufacture of chrome brick and other refractory ma?

terials and cements. Lesser quantities are consumed in

the manufacture of chromic acid for electroplating, and

in the dyeing, tanning, pigment and ceramic industries.

Clearly chromium is an expanding industry and a

useful one to the Philippines. Although chromite ex?

ports from the Islands are valued at less than 1% of

total exports, the hazards of independence and re?

stricted markets offer no threat here, as they do to so

many Philippine products. The architects of a new

Philippine economy may well find in chromite a de-

pendable building block. Alvin Barber.

PROTECTED AND RAILWAY VILLAGES IN MANCHURIA

Since the establishment of Manchoukuo, there has been a dearth of information regarding conditions

among the native inhabitants. Literature from Hsin?

king in the English language has been prolific; but it

has dealt mainly with the "marvelous" economic prog? ress of the new state, the growth of industries, the

spread of communications, the construction of cities, particularly of the new capital Hsinking, and like

subjects. Very little has been said about conditions in the countryside in the small farm villages where the bulk of the inhabitants reside. As 90 to 95% of the

population of Manchoukuo is Chinese (the Japanese have labelled them Manchus), this is an important

aspect. The Japanese have presumably benefited by the seizure of Manchuria, but what of the native

population? The whole subject is too broad to be covered at this

time, but one of the most interesting angles is the

matter of protected and railway villages about which

some information has recently become available. These

two types of villages were developed by the Japanese in order to deal with the problem of "banditry."

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