THE MOLYBDENUM SUPPLY SITUATION IN THE SOVIET BLOC

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79-01093A000300130002-0
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 48
• Document Creation Date: December 16, 2016
• Document Release Date: April 6, 2005
• Sequence Number: 2
• Publication Date: May 25, 1953
• Content Type: REPORT

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WARNING
This material contains information :affecting
the National Defense of the United States
within the meaning of the espionage laws,
Title 18, USC, Secs. 793 and 794, the trans-
mission or revelation of which in any manner
to an unauthorized person is prohibited by law.
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XWEI-4 " it IL,
SECURITY INFORMATION
US OFFICIALS ONLY
PROVISIONAL INTELLIGENCE REPORT
THE MOLYBDENUM SUPPLY SITUATION IN THE SOVIET BLOC
CIA/RR PR-30
(ORR Project 25-52)
NOTICE
The data and conclusions contained in this report
do not necessarily represent the final position of
ORR and should be regarded as provisional only and
subject to revision. Additional data or comments
which may be available to the user are solicited.
CENTRAL INTELLIGENCE AGENCY
Office of Research and Reports
US OFFICIALS ONLY
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CONTENTS
Page
Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1. Introduction . . . . . . . . . . . . . . . . . . . . . . . 3
II. USSR . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
A. Geographic Distribution of Deposits . . . . . . . . . . 5
B. Description of Deposits . . . . . . . . . . . . . . 7
1. Transcaucasus (Economic Region V) . . . . . . . . . 7
2. Kazakhstan (Economic Region Xa) . . . . . . . 8
3. East Siberia (Economic Region XI) . . . . . . . 9
4. Far East (Economic Region XII) . . . . . . . . . . 10
C. Production . . . . . . . . . . . . . . . . . . . . . . 11
D. Reserves . . . . . . . . . . . . . . . . . . . . . . . 14
E. Trade . . . . . . . . . . . . . . . . . . . . . . . . . 14
F. Uses and Substitutes . . . . . . . . . . . . . . . . 16
1. Uses . . . . . . . . . . . . . . . . . . . . . . . 16
2. Substitutes . . . . . . . . . . . . . . . . . . . . 18
G. Consumption and Supply Position . . . . . . . . . . . . 19
1. Consumption . . . . . . . . . . . . . . . . . . . 19
2. Supply Position . . . . . . . . . . . . . . . . 20
III. Satellites . . . . . . . . . . . . . . . . . . . . . . . . 20
A. Communist China . . . . . . . . . . . . . . . . . . . . 21
1. History of the Industry . . . . . . . . . . . . . . 21
2. Principal Deposits . . . . . . . . . . . . . . . . 21
3. Production and Trade . . . . . . . . . . . . . . . 23
4. Supply Position . . . . . . . . . . . . . . . . . . 24
5. Future Development . . . . . . . . . . . . . . . . 25
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B. North Korea . . . . . . . . . . . . . . 25
1. Principal Deposits . . . . . . . . . . . . . . . 25
2. Production and Trade . . . . . . . . . . . . . . . . 26
3. Supply Position . . . . . . . . . . . . . . . . . 26
C. Rumania . . . . . . . . . . . . . . . . . . . . . 27
1. History of the Industry . . . . . . . . . . . . . . 27
2. Principal Deposits . . . . . . . . . . . . . . . . 27
3. Production . . . . . . . . . . . . . . . . 28
4. Consumption and Uses . . . . . . . . . . . . . . . 29
5. Supply Position . . . . . . . . . . . . . . . . . 29
6. Future Development . . . . . . . . . . . . . . . . 29
D. Czechoslovakia . . . . . . . . . . . . . . . . . . . . 30
1. General . . . . . . . . . . . . . . . . . . . . . . 30
2. Consumption and Uses . . . . . . . . . . . . . . . 31
3. Supply Position . . . . . . .. . . . . . . . . . . . 32
E. Poland . . . . . . . . . . . . . . . . . . . . . . . . 32
1. General . . . . . . . . . . . . . . . . . . . . . . 32
2. Consumption and Uses . . . . . . . . . . . . . . . 33
3. Supply Position . . . . . . . . . . . . . . . . . . 33
F. Hungary . . . . . .. . . . . . . . . . . . . . . . . . . 34
1. General . . . . . . . . . . . . . . . . . . . . . . 34
2. Consumption and Uses . . . . . . . . . . . . . . 34
3. Supply Position . . . . . . . . . . . . . . . . 35
G. East Germany . . . . . . . . . . . . . . . . . . 36
1. General . . . . . . . . . . . . . . . . . . 36
2. Consumption and Uses . . . . . . . . . . . . . 36
3 Supply Position . . . . . . . . . . . . . . . . 36
IV. Conclusions . . . . . . . . . . . . . . . . . . . . . . . 37
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Appendixes
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Tables
1. Distribution of Molybdenum Reserves in the USSR,
1933, 1938 . . . . . . . . . . . . . . . . . . . . . . .
6
2. Estimated Production of Molybdenum in the USSR
by Principal Deposits, 1946-47 . . . . . . . . . . . . .
12
3. Estimated Production of Molybdenum in the USSR,
1940, 1942 - 52 . . . . . . . . . . . . . . . . . . . . . .
13
4. Known and Estimated Imports of Molybdenum by the USSR,
1939-52 . . . . . . . . . . . . . . . . . . . . . . . . .
16
5. Estimated Molybdenum Supply Position of the USSR,
194o, 1942 - 5 2 . . . . . . . . . . . . . . . . . . . . . .
19
6. Principal Molybdenum Deposits in Communist China . . . . .
22
7. Estimated Production of Molybdenum in Communist China,
1940-52 . . . . . . . . . . . . . . . . . . . . . . . . .
23
8. Estimated Molybdenum Supply Position of Communist China,
1950-52 . . . . . . . . . . . . . . . . . . . . . . .
24
9. Principal Molybdenum Deposits in North Korea . . . . . . .
25
10. Estimated Production of Molybdenum in North Korea.,
1947-52 . . . . . . . . . . . . . . . . . . . . . . . . .
26
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ll.. Estimated Molybdenum Supply Position of North Korea,
1947 - 52 . . . . . . . . . . . . . . . . . . . . . . . 27
12. Estimated Production of Molybdenum in Rumania,
1941-52 ... . . . . . . . . . . . . . . . . . . . . . 28
13. Estimated Consumption of Molybdenum in Rumania,
1947-52 . . . . . . . . . . . . . . . . . . . . . . . 29
14. Estimated Molybdenum Supply Position of Rumania,
1947-52 . . . . . . . . . . . . . . . . . . . . . . . 30
15. Estimated Consumption of Molybdenum in Czechoslovakia,
1947-52 . . . . . . . . . . . . . . . . . . . . . . . 31
16. Estimated Molybdenum Supply Position of Czecho-
s lovakia, 1947-52 . . . . . . . . . . . . . . . . . . 32
17. Estimated Consumption of Molybdenum in Poland,
1947-52 . . . . . . . . . . . . . . . . . . . . . . 33
18. Estimated Molybdenum Supply Position of Poland,
1947-52 . . . . . . . . . . . . . . . . . . . . 34
19. Estimated Consumption of Molybdenum in Hungary,
1947-52 . . . . . . . . . . . . . . . . . . . . . . . 35
20. Estimated Molybdenum Supply Position of Hungary.,
1947-52 . . . . . . . . . . . . . . . . . . . . . . . 35
21. Estimated Consumption of Molybdenum in East Germany,
1947-52 . . . . . . . . . . . . . . . . . . . . . . . 37
22. Estimated Molybdenum Supply Position of East Germany,
1947 - 5 2 . . . . . . . . . . . . . . . . . . . . . . . 37
23. Summary of the Estimated Molybdenum Supply Position
of the Soviet Bloc, 1952 . . . . . . . . . . . . . . 38
Illustrations
Following Page
Soviet Bloc: Molybdenum Deposits and Ferro-
alloy Plants (Map) . . . . . . . . . . . . . . . . 47
Production of Molybdenum in the USSR,
1940-52 (Chart) . . . . . . . . . . . . . . . . . .
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CIA/RR PR-30
(ORR Project 25-52)
THE MOLYBDENUM SUPPLY SITUATION IN THE SOVIET BLOC*
Summary
In the Soviet Bloc, as in the US, molybdenum is used chiefly as
an alloying element in the manufacture of iron and steel. Because
the Soviet Bloc is better supplied with various other ferroalloy
metals, molybdenum is conserved for high-priority uses
The principal producer of molybdenum in the Soviet Bloc is the
USSR, which produced an estimated 3,550 metric tons** in 1952. The
total production of other Soviet Bloc producers (Communist China,
North Korea, and Rumania) amounted to less than 400 metric tons.
The USSR also is the principal Soviet Bloc consumer of molybdenum.
Relatively small amounts are consumed also by the iron and steel
industries of Czechoslovakia, Poland, East Germany, and Hungary.
Before 1940 the USSR was dependent almost entirely on imports of
molybdenum. During the Second Five Year Plan (1933-37), when exten-
sive searches for molybdenum were initiated, the USSR made its first
real start at producing molybdenum. any deposits had been discovered
and were in process of being exploited when the Germans occupied parts
of the USSR. With the loss of the deposits in the economic region***
of the Transcaucasus (V), the Russians concentrated on developing
mines in Kazakhstan (Xa) and East Siberia (XI). The production from
these deposits, together with Lend-Lease shipments, greatly eased the
deficiency of the USSR in this metal. With the end of Lend-Lease in
1945, molybdenum became one of the scarcest metals in the USSR.
This report contains information available as of 15 December 1952,
All estimates in this report are in terms of molybdenum metal
unless otherwise specified.
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Efforts were concentrated on restoring mines in reoccupied areas and
on increasing the output of molybdenum from the complex ores. The
main producing areas in the USSR at the present time are the Trans-
caucasus, Kazakhstan, and East Siberia, and there are indications
that the Far East (XII) has potential value.
Total reserves of molybdenum in the USSR cannot be estimated.
It is probable, however, that reserves are much larger than the
20,000 metric tons reported for 1940. New deposits discovered and
exploited during and after World War II and the development of a
process for recovery of the metal from complex ores have greatly
improved the molybdenum supply situation.
Since 1945, when Lend-Lease shipments were discontinued, the
USSR has received very little molybdenum from the West. Between
1945 and 1949 the US, which was the only important Western source
of molybdenum, did not ship it in appreciable amounts. In 1950 an
embargo control on molybdenum shipments to the Soviet Bloc was
established by the countries in COCOM (Coordinating Committee on
East-West Trade), and this resulted in even smaller imports of
molybdenum by the Soviet Bloc. Until recently the USSR has en-
deavored to obtain molybdenum from the West in any amounts and
regardless of the price. A possible indication of an improved
molybdenum supply situation in the USSR, however, is seen in the
fact that the Russians refused an offer
1952 because the price was too high.
Although it is impossible to measure the quantities'of illicit
molybdenum imports into the Soviet Bloc, it is known that since the
imposition of COCOM controls, significant amounts of molybdenum
have continued to be transshipped through Western Europe to the
Satellites at premium prices and. that trade representatives of
Czechoslovakia, Poland, Hungary, and East Germany continue to expend
considerable effort in attempts to procure molybdenum in the West.
There have been numerous other indications of molybdenum shortages
in the Satellites. These facts serve as an indication that imports
of molybdenum from the USSR to the Satellite countries have fallen
short of meeting their demands.
In conclusion, the Soviet Bloc supply situation for molybdenum
has improved considerably in the postwar years. This is especially
true for the USSR, whose indigenous production, together with im-
ports from Communist China, appears to provide sufficient molybdenum
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for current essential industrial requirements, rather narrowly de-
fined, and to leave a small surplus for stockpiling and for exports
to the European Satellites. The situation in the European Satellites,
however, is not so favorable, and available supplies, obtained al-
most exclusively from the USSR, are not sufficient to meet all essen-
tial needs. Reserves in Communist China are substantial, and, though
production has not yet reached a high level, it appears that the
Soviet Bloc is in a position to obtain increased supplies through
further exploitation of resources in both the USSR and Communist
China.
Molybdenum has been produced on a commercial scale only since
1900, chiefly for its uses in ferrous metallurgy. During World
War II, molybdenum utilization increased significantly as a result
of the large wartime demand for special-purpose steels.
Molybdenum is a metallic element which occurs in nature only
in chemical combination. The chief commercial molybdenum-bearing
ores contain molybdenite (MoS2), 60 percent of which is molybdenum.
Molybdenite is mined both separately, as a noncomplex ore, and to
an increasing extent as a complex ore, in conjunction with tungsten
and copper, especially the latter. Molybdenum deposits vary greatly
in the amount of molybdenite that they contain. Smaller deposits
average as high as 3 percent molybdenite, whereas the larger
deposits usually average 0.i- to 0.7 percent. The amounts of molyb-
denite found in conjunction with tungsten and copper ores are still
smaller, averaging from 0.03 to 0.08 percent molybdenite. After
extraction is completed, molybdenum normally enters into commerce
as a concentrate.* Standard concentrates in general use contain
from 65 to 85 percent molybdenite.
* Quantities and prices are commonly given in terms of a concentrate.
For the sake of simplicity, this practice has not been used in this
report.
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In the USSR as in the US, approximately 85 to 90 percent of the
molybdenum produced is consumed by the iron and steel industry. The
remaining 10 to 15 percent is consumed by the chemical, ceramic,
and electronics industries.
Molybdenum is added to steel in the form of calcium molybdate,
ferromolybdenum, or molybdic oxide. It serves best in steels which
also contain nickel, chrome, or manganese. Only small quantities
of molybdenum are required, usually less than 0.20 percent. Molyb-
denum is specified in many of the engineering alloy steels because
of the following beneficial effects:
1. Molybdenum is a nonoxidizable metallic element imparting
a large measure of hardenability to steel. This is useful where
close hardenability control is desired.
2. Molybdenum is unique in its powerful. effect in increasing
the high-temperature tensile and creep strengths of alloy steels.
3. Additions of molybdenum to high-chromium and chromium-
nickel steels greatly enhance the resistance of these steels to many
forms of corrosive attack.
4. Molybdenum steels are less susceptible to temper-brittle-
ness than alloy steels in which molybdenum is not present.
Molybdenum steels are used in aircraft and automobiles for such
parts as shafts, valves, pumps, gears, hollow-steel propeller blades,
and seamless tubing. Molybdenum steel is essential in certain types
of armor-piercing shells and armor plate. At the present time, high-
temperature alloy steels containing molybdenum are finding wide
application in jet engines, guided missiles, and turbo-superchargers.
Small amounts of pure molybdenum are used for such purposes as
heating elements in high-temperature resistance furnaces, focusing
cups and other parts of X-ray tubes, filament supports in lamps and
radio tubes, and electric-contact points.
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A. Geographic Distribution of Deposits.
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regions in the USSR considered to have potential economic value as
sources of molybdenum are the Transcaucasus (V), Kazakhstan (Xa),
East. Siberia (XI), and the Far East (XII).*
Before 1917 the only known deposits of molybdenum were in
the Gutay district of Chita Oblast (East Siberia). Facilities
were present for the concentration of the mined ore, but production
was insignificant. Beginning in 1917, several molybdenum-tungsten
deposits were discovered in the Georgian SSR and on the Pacific
Coast, and these deposits became the chief sources of molybdenum in
the USSR through the period of the First Five Year Plan (1928-32).
These deposits, however, did not produce enough to supply growing
domestic requirements, and in 193+ prospecting for molybdenum was
started in the Transcaucasus.
The opening of important new deposits of molybdenum as a
result of the prospecting begun in 193+ has caused a substantial
change in assessments of the economic potentials of various regions.
These changes in assessment are given in Table l,** where a decided
percentage shift is revealed between the deposits as known in 1933
and the deposits as known in 1938. Whereas in 1933 the significant
locations were the Georgian SSR and the Pacific Coast, in 1938 the
Karbardian ASSR (Transcaucasus) and Altay Kray (Kazakhstan) con-
tained far greater percentages of known reserves than the other
locations. 1/-
One of the greatest achievements of the geological pros-
pecting work under the Second Five Year Plan (1933-37) was the
discovery and investigation of the Tyrny-Auz molybdenum-tungsten
deposit in the Karbardian ASSR. Since then, as a result of
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Distribution of Molybdenum Reserves in the USSR
1933,
1938
1933
1938
Georgian SSR
61.6
1.6
Pacific Coast
27.8
12.3
Chita Oblast
10.6
6.7
Altay Kray
N.A.
6.0
Karbardian ASSR
N.A.
64.4
Others
N.A.
9.0
intensive geological investigation, additional reserves in the deposit
have been discovered each year, and Tyrny-Auz now constitutes one of
the most important molybdenum-tungsten deposits in the USSR. 2/ As
a source of molybdenum, this deposit is still the largest in the USSR.
The deposits of the Karbardian ASSR, however, are not confined to the
Tyrny-Auz deposit. The Agarak, Pirdoudan, and Karobi copper deposits
contain molybdenum and show promise of becoming some of the main
sources for the extraction of this metal in the USSR.
Kazahkstan is second only to the Karbardian ASSR as a poten-
tial source of molybdenum. Very large copper deposits at Kounrad
and Bosche-Kul contain molybdenum. The exploitation of these deposits
also makes possible the extraction of molybdenum. Large deposits of
molybdenite are located at East Kounrad. Promising prospects for
molybdenum such as the Chindagatuy deposit are also in evidence in
the southeastern part of Altay Kray and in parts of the Gorno-Altay
Autonomous Oblast adjacent to it. 3/
It is quite possible that two other important economic regions
for molybdenum at the present time are East Siberia (XI) and the Far
East (XII). It is known that the Russians have been sending out geo-
logical expeditions in the search for ferroalloying metals and that
new deposits have been found. The production potential, however,
remains unknown. Information on known deposits in East Siberia indi-
cates that this region is a substantial producer of molybdenum, but
very little information on the actual size of the deposits in the
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Far East is available. The principal deposits there are Pervomayka,
Davinda, Gutay, and Chindagatuy.
B. Description of Deposits.
1. Transcaucasus (Economic Region V).
a. Tyrny-Auz.
The molybdenum-tungsten deposit in Tyrny-Auz is a
basic industrial asset in the Tyrny-Auz ore-bearing area, where
deposits of tin, antimony, and other metals also are found. This
deposit is the largest producer of molybdenum ore in the Soviet
Bloc. 4/ The mine was developed in 1939-40 and began production in
1940. 51 With the occupation of this area by the Germans in 1942,
the production facilities were destroyed and were not restored
until 1947, when capacity was estimated at 1,000 metric tons of ore
per day. 6/ Production in 1947, based on restored capacity, has
been estimated at 700 metric tons of molybdenum. 7/ Before the
German occupation, one of the largest molybdenum-processing plants
in the USSR was located at Tyrny-Auz. This plant was restored in
1947.
It is reported that a copper-molybdenum ore deposit
discovered in Pirdoudan before World War II is a promising source
of molybdenum. 8/ Work was started on this deposit during the
Fourth Five Year Plan (1946-50) in connection with the creation of
a large molybdenum industry in the Armenian SSR. The plans called
for the development of the molybdenum deposits in the Zangezurskiy
Mountains. 9/ Production has been roughly estimated at 50 metric
tons of molybdenum during 1947. 10/
c. Agarak.
The deposit in Agarak is located in the Mergenskiy
Mountains of the Armenian SSR and is included in plans for the
development of molybdenum resources. The ore is of low grade,
containing about 0.03 to 0.04 percent molybdenum. Reserves in 1941
were estimated at 25,000 metric tons of molybdenum. 11/ Production
has been roughly estimated at 50 metric tons of molybdenum during
1947. 12/
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The deposit in Karobi contains low-grade ore which
is associated with vein quartz but is uniform in molybdenum content.
The mine has been equipped for a total output of 500 metric tons of
ore per day, and a concentrating plant was scheduled to be built
during the postwar period. 13/ No production or reserve figures
are available, but, on the basis of equipment and analysis of ore,
production in 1947 has been roughly estimated to have been 70 metric
tons of molybdenum. 14/
2. Kazakhstan (Economic Region Xa).
A large copper-molybdenum deposit, which runs about
0.5 percent molybdenite and contains an estimated 16,700 metric tons
of molybdenum, is located in Kounrad. 15/ The mine was reported to
have eight vertical shafts with an electrically operated elevator
to haul ore to the surface. 16/ Production during l946 and 1947
has been estimated at 300 to 780 metric tons of ore per day. 17/
In converting this to annual production of molybdenum, the figure
of 300 metric tons of ore per day was arbitrarily used for 1946
and 480 metric tons for 1947. This. would give an estimated annual
production of 270 metric tons of molybdenum in 1946 and 425 metric
tons in 1947. 18/
b. East Kounrad.
The molybdenum deposit in East Kounrad is nearly
as large as the one at Tyrny-Auz. It was developed during World
War II in order to offset some of the loss which resulted from
German occupation of the deposits in the Transcaucasus. World
War II production is not known, but it has been reported to have
yielded more molybdenum in 1942 than all other such enterprises. 19/
This is probably an exaggeration, but it is an indication of the
potential of this deposit.
The ore has been reported to contain 0.8 percent
molybdenite. 20/ Estimated. annual :production at East Kounrad,
based on reported daily ore production, is 340 metric tons of
molybdenum in 1946 and 550 metric tons in 1947. 21/
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C. Chindagatuy.
Work was started on the deposit in Chindagatuy
during the Third Five Year Plan (1938-42). Production, however,
was insignificant up until 1943, at which time the mine was expanded
to offset partially the loss of mines in the Transcaucasus. The
ore is of a low grade, and the molybdenite is associated with silica
rock. The area in which this deposit is located is believed to have
considerable potential value as a source of molybdenum. 22/ Produc-
tion during 1946 and 1947 was estimated to have been 150 metric tons
of molybdenum per year. 23/
The low-grade copper deposit in Bosche-Kul may
eventually be worked and its molybdenum content recovered. Reserves
of molybdenum have been reported at 7,200 metric tons. 24/
3. East Siberia (Economic Region XI).
a. Shakhtama.
The important deposit in Shakhtama in the Zabaykallye
area was developed during World War II. Prisoners of war employed
here in the years 1945-47 have estimated the average daily produc-
tion during this period at 200 metric tons of ore. 25/ Production
in 1946 and 1947 has been roughly estimated at 100 metric tons of
molybdenum, 26/ but it is possible that production is much higher
at the present time. The increase would be dependent on the degree
to which the Russians have mechanized this mine since 1947. During
the period 1945-47, reports have stated that a horse-drawn car was
used for transporting ore from the mine to the mill and that man-
power was used in moving ore cars in the inclined shafts and
levels. 27/
b. Gutay.
The deposit in Gutay was the sole producer of molyb-
denum in the USSR up to 1930. 28/ The ore has a molybdenite content
of from 3 to 4 percent. 29/ In 1945, reserves were estimated to be
small -- 135 to 190 metric tons of molybdenum. 30/ Production in
1946 and 1947 has been estimated at 50 metric tons of molybdenum per
year. 31/ Thus it is probable that the reserves have been exhausted
at this deposit.
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An open-pit deposit reportedly containing a fair
grade of ore is located in Inkur. Production in the period 1945-47,
based on estimated daily outputs as :reported. during this period, 32/
has been estimated at 40 metric tons of molybdenum annually. The
extent of reserves is believed to be small. 33/
The deposit in Davinda was developed during World
War II. Reserves are reported to be extensive and the ore of a
fair grade. Production during 1946 and 1947 has been. estimated at
125 metric tons of molybdenum annually, based on reported daily
output of 100 metric tons of ore during this period. 34/
e. Pervomayka.
This open-pit deposit located in Pervomayka on the
side of a mountain has been reported to have produced-about 200 metric
tons of ore per day in the period 1925-47. 35/ The ore is shipped
to Gorodok for processing. Based on daily output, production in
1946 and 1947 has been estimated at 100 and 150 metric tons of
molybdenum, respectively.
It is believed that some molybdenum is mined also
at the following deposits, but there are insufficient data to make
any definite statements on them: Belukha, Gorodok, Balkhash, and
Bol'shoy Kebin.
4. Far East (Economic Region XII).
The deposit in Ust'-Umal'ta contains small veins
ranging from 0.6 to 2.4 percent molybdenum. Production is esti-
mated at 50 metric tons of molybdenum in 1946 and 100 metric tons
in 1947. 36/
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C. Production.
Before World War IT, Soviet molybdenum production was insig-
nificant, as indicated by the Third Five Year Plan (1938-42), which
set forth the hope of increasing output by 12.3 times from 1937 to
1942. 37/ The development of the Tyrny-Auz molybdenum deposit in
1939-40 somewhat eased dependence upon small sources such as
Ust'-Umal'ta and Gutay. Furthermore, extraction of molybdenum from
the Kounrad copper mine was initiated on an increasing scale, and
the deposit of molybdenum at East Kounrad was being developed.
Thus, despite the destruction of Tyrny-Auz by the Germans in 1942,
molybdenum production in 1943 was three times that in 1940. 38/
The increase of production from Kounrad and East Kounrad continued
during,the war and was augmented by the operations of small new
mines such as Shakhtama, Davinda, Pervomayka, and Chindagatuy. The
magnitude of total increase in Soviet molybdenum output during
World War II may be judged by the target of the Fourth Five Year
Plan (1946-50) for an increase of only 2.1 times in the period
1945-50 as compared with the increase of 12.3 times in the period
1937-42. 39/
At the end of World War II,-approximately two-thirds of all
Soviet molybdenum production came from Kazakhstan (Xa) and one-
third from East Siberia (XI). This total apparently did not include
Tyrny-Auz, the restoration of which does not seem to have occurred
until 1947, when a large increase in molybdenum production was noted.
Estimated production figures for molybdenum in the USSR for
the immediate postwar years are given in Table 2.* They have been
estimated on the basis of a study of the producing regions.
The totals given in Table 2 do not represent the actual
amounts of molybdenum available to industry. In the processing of
the ore, a certain percentage of the molybdenum is lost depending
on the type of ore. -The average loss is about 15 percent. The
revised figures for 1940 and 1942-52 are given in Table 3.**
Since the 1930's there has been practically no official
publication of actual amounts of molybdenum produced. From 1940
Table 2 follows on p. 12.
Table 3 follows on p. 13.
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Table 2
Estimated Production of Molybdenum in the USSR by Principal Deposits
1946-47
Economic Region
Deposit
1946
1947
Transcaucasus (V)
Tyrny-Auz
50
700
Pirdoudan
25
50
Agarak
50
50
Karob i
25
70
Kazakhstan (Xa)
Kounrad
270
425
East Kounrad
340
550
Chindagatuy
Bosche-Kul
100
N.A..
150
N.A.
East Siberia (IX)
Shakhtama
100
100
Gutay
50
50
Inkur
40
40
Davinda
125
125
Pervomayka
100
150
Far East (XII)
Ust'-Umal'ta
50
100
Total
1,325
2,560
on, the Russians have published production figures in terms of per-
centage incs'ease, using 1940 as the base year. The wide range in
estimated production for the year 1940 -- 210 40/ to 1,220 41/ metric
tons of molybdenum -- did not lend itself as a basis for estimating
production during the following years. Therefore, a study on the
output of individual deposits was made in order to arrive at the
most reasonable estimate far the year 1940. This figure was used as
a base in computing yearly production where the reported percentage
increases seem reasonable. By interpolation, it was possible to
estimate production for the years in which percentage increases were
not published. Production of molybdenum in the USSR for these years
is shown on the accompanying chart, Production of Molybdenum in the
USSR, 1940-52.*
Following p. 14.
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Estimated Production of Molybdenum in the USSR a/
1940, 1942-52
1940
1942
1943
1944
1915
1946
1947
1948
1949
1950
1951
1952
Metric Tons
350 b/
650 I+3/
1,155 7
1,500 7+5/
1,450 7
1,125 e/
2,175 e/
2,550
2,800 f/
3,045 J
3,300
3,550
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The drop in production during 191+5 and 1946 could be explained
by the fact that much production was halted while scarce metallurgical
equipment and specialists were transferred from areas which were
developed during the war years to the Transcaucasus (iT) in order to
carry out the planned restoration of deposits located there. The
sharp 191+7 recovery in molybdenum production could mean almost com-
plete restoration of production capacity at Tyrny-Auz and other
deposits in this area.
There are indications that molybdenum reserves in the USSR
.re much larger than the 191+0 estimate of 20,000 metric tons. 50
This results from concentrated efforts made by the USSR to discover
new deposits and to develop a process for the recovery of molybdenum
from complex ores such as copper and tungsten. These complex ores
have great potentialities, but the extent to which the development
of a process has progressed is not known. It is believed, however,
that a full technical development has not yet been achieved, as some
42,000 metric tons of molybdenum are reported to be contained in
idle copper mines. 51/ In general, it can be concluded that the
processing of copper-molybdenum ore has good possibilities and that
the working of more deposits may materially expand available supplies.
The same conclusions can be made concerning the processing of
tungsten-molybdenum ore.
At the present time, molybdenite is the most important source
of molybdenum. Many of the reserves of rolybdenite ores were
developed during and after World War II, and information on reserves
is not available.
In conclusion, it can be said that the reserves of molyb-
denum in the USSR have increased considerably since 1940. Large
quantities are undoubtedly tied up in complex ores. Providing that
this molybdenum content can be recovered, reserves should be
sufficient to meet the essential requirements of the iron and steel
industry for many years.
The USSR has been a consistent and, whenever possible, a
large importer of molybdenum. In 1939, imports of concentrates
(65 percent molybdenite) exceeded 8,000 metric tons, and in earlier
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years considerable ferromolybdenum was imported. Up until 19+5 the
USSR was largely dependent on imports. During the war years, under
Lend-Lease, the USSR imported large quantities of molybdenum from
the US. With the end of Lend-Lease and an embargo on molybdenum
shipments to the USSR from the C0C0M countries, it became necessary
for the USSR to develop its own resources and to import appreciable
quantities from Norway, Chile, and North Korea. In 1950-51, when
shipments from these countries stopped, the USSR became even more
dependent on domestic resources. At the present time the Russians
are exploiting the large reserves in Manchuria. During World War II
the mine installations in Manchuria were damaged to some extent,
and equipment was removed as a result of Soviet and Chinese Communist
occupation. The mines are now believed to be partially restored,
and all molybdenum produced is destined for the USSR. 52
There can be no doubt that the USSR is endeavoring to obtain
molybdenum from the West, but restrictions and prices have kept
buying to a minimum. The US, which produces about 90 percent of
the world's supply, has placed an embargo on all molybdenum products.
During 1951 the Russians were still making inquiries about the avail-
ability of US molybdenum, and a Soviet official is reported to have
asked whether or not molybdenum is available on the black or gray
market. 53/ F_ 25X1
Yere offered to the Russians, 5 and the offer
was reuse because 'the price was too high. This is in rather sharp
contrast to the period before 1950, when the USSR was buying all
available molybdenum regardless of price. This might be an indica-
tion of an improved supply situation.
In conclusion, it can be said that the USSR at the present
time is receiving very little molybdenum from the West and is
meeting the essential demands of the iron and steel industry through
indigenous and Manchurian production.
The known and estimated imports of molybdenum by the USSR
in 1939-52 are given in Table 1+.*
* Table follows on p. 16.
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Table 4
Known and Estimated Imports of Molybdenum
by the USSR a/
1939-52
1939
4,100
1940
150
1941
1, 070
1942
2,350
1943
1,830
1944
1,81A
1945
74o
1946
N.A.
1947
N.A.
1948
N.A.
1949
N.A.
1950
125 b/
1951
225
1952
325
a. Except for 1950-52, all imports are
from the US only. 55/
b. Represents estimated production of
Communist China, all of which goes to the
USSR.
Despite large imports of molybdenum and plans for the
production of an extensive variety of molybdenum steels, the USSR
actually has produced only a modest assortment during the past
decade. In 1939, only two molybdenum steels were in regular pro-
duction. 56/ The first, a chrome-molybdenum-aluminum steel with
0.4 to 0.7percent molybdenum, was used for various types of
machine parts, seamless tubes, and high-pressure pipe fittings;
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the second, a chrome-molybdenum-vanadium steel, high in chrome, with
0.5 to 0.8 percent molybdenum, was used primarily for complex dies
and patterns but also was authorized as a substitute, after appro-
priate heat-treatment, for high-tungsten (17.5 to 19 percent tungsten)
tool steel.
During World War II the use of molybdenum in steels
increased. A new molybdenum steel containing 0.3 to 0.1+ percent
molybdenum was developed for the manufacture of machine parts, 57/
and in 191+5 a high-speed tungsten-cobalt-molybdenum tool steel
containing 0.3 to 0.6 percent molybdenum went into regular produc-
tion. 58/ High-molybdenum tool steels and low-molybdenum struc-
tural steels were not yet in mass production in 191+7, although
Soviet plants were experimenting with them.
More important was the increased wartime use of molyb-
denum in different types of cast iron. Cast irons were produced
containing 0.2 to 0.6 percent molybdenum for flywheels and diesel
engine valves; 0.2 to 0.8 percent for automotive cylinder blocks,
piston rings, and distributors; 0.4 to 1 percent for gear teeth
and other miscellaneous purposes; and 0.8 to 1 percent for gear
teeth. 59/
all indications, Soviet use of molybdenum in low-alloy, n1911-
strength engineering steels is quite limited. For high-temperature
applications, alloy steels made in the USSR follow in general the
British and German analyses and make use of metals in plentiful
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supply such as chrome, tungsten, and nickel. 61/ In the US a
molybdenum addition of about 1 percent is considered essential to
steels which are used at a temperature of 1,1000 F, whereas the
USSR follows the German practice of adding only about 0.35 per-
cent molybdenum. 62/
The electronics industry is a substantial consumer of
molybdenum. Requirements will undoubtedly increase with the
expansion of this new and important industry. For most applica-
tions, such as vacuum tubes, pure molybdenum is required. Because
of certain characteristics possessed by molybdenum, substitution
by other metals such as tungsten is possible only to a limited
extent.
The USSR has plentiful supplies of the metals -- tung-
sten, manganese, and boron -- which can satisfactorily serve as
substitutes for molybdenum to a certain extent and in certain
applications.
The use of boron can save a small portion of molybdenum.
Examinations at Wright Field of captured equipment have indicated
that boron steels are being made in the USSR. Soviet documents
indicate that back in 19+6 the USSR was aware of the use charac-
teristics and limitations of boron? 64/
For high-temperature applications such as the manu-
facture of jet planes, British and German experience has shown that
alloys containing high percentages of nickel and chrome and a
little or no molybdenum give fairly satisfactory performances.
Examinations of captured equipment indicate that the USSR is copying
these nickel and chrome alloys to a large extent.
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G. Consumption and Supply Position.
1. Consumption.
Direct data on consumption and requirements of molybdenum
in the USSR are not available. Table 5, however, gives estimates of
apparent consumption including stockpiling. These estimates were
derived by adding production to imports and subtracting exports. It
is reasonable to assume that in the period 1940-52 apparent consump-
tion approximates actual consumption. This assumption is based on
the fact that molybdenum has always been in short supply in the
USSR and that increased production during the past few years has been
only partially successful in overcoming loss of Western imports and
increased requirements.
Estimated Molybdenum Supply Position of the USSR
1940,
1942-52
Year
Production
Imports
Exports a/
Apparent Consumption b/
1940
350
150
N.A.
500
1942
650
2,350
N.A.
3,000
1943
1,155
1,830
N.A.
2,985
1944
1,500
1,810
N.A.
3,310
1945
1,450
740
N.A.
2,190
1946
1,125
N.A.
N.A.
1,125
1947
2,175
N.A.
251
1,924
1948
2,550
N.A.
339
2,211
1949
2,800
N.A.
419
2,381
1950
3,045
125
500
2,670
1951
3,300
225
536
2,989
1952
3,550
325
582
3,293
a. Actual export figures are not available, but it is known that
the USSR supplies the bulk of the molybdenum available to the
Satellites. Therefore, it has been assumed that Soviet exports
approximate Satellite consumption.
b. Includes stockpiling.
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2. Supply Position.
A summary of the estimated molybdenum supply position of
the USSR for 1940 and 1942-52 is also given in Table 9. No informa-
tion is available on molybdenum stockpiles in the USSR. There is
little doubt, however, that the USSR is stockpiling this metal,
which is of great strategic value and the future needs of which must
be met almost entirely by indigenous production. The stockpile inven-
tory is probably quite small at the present time.
Specific data regarding the types and amounts of molybdenum-bear-
ing alloy steels produced in the various Satellites are not avail-
able, but, generally speaking, special steels and armor plate pro-
duced in the Satellites follow Soviet specifications. Orders for
these types of steels are placed by the Russians with the Satellite
steel industries in sufficient volume to consume all or nearly all
of the available supplies of critical alloying materials including
molybdenum. There have been numerous reports to the effect that
production of molybdenum-bearing steels has been seriously retarded
in the Satellites because of the scarcity of that metal. 65/ Conse-
quently, production of alloy steels containing molybdenum is restric-
ted to the relatively narrow range of products of Soviet specification.
As pointed out earlier, the Soviet Bloc is richly endowed with
alloying metals that can be utilized to a certain extent as substi-
tutes for molybdenum. This substitution is being carried out where-
ever possible in the Satellites. Early in 1952, for example, the
Vitkovice Steel Works in Czechoslovakia had reportedly been success-
ful in substituting tungsten for molybdenum at a ratio of 2 to 1 in
the manufacture of steels for use under high pressure and temperatures
of 5000 C. 66/ Whenever such substitution has not been possible,
carbon steels have been utilized in applications where alloy steels
normally would have been used. 67/
The iron and steel industry accounts for approximately 90 per-
cent of the molybdenum consumption of the US. The remaining 10 per-
cent goes to such uses as the ceramics, chemicals, and electronics
industries and for applications in powder metallurgy. 'Approximately
the same general consumption pattern applies for the Satellites,
varying, of course, from country to country in accordance with the
types and quantities of alloy steels produced and the status of other
molybdenum-consuming industries.
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The estimates of consumption by the iron and steel industry are
based on the ratio of molybdenum consumption to raw steel production
~n the US for each of the years and are modified by a percentage
factor judged to be suitable for each of the particular countries.
Because of several factors, the Satellites do not consume molyb-
denum in the same ratio to raw steel production as does the US:
(1) molybdenum is relatively plentiful in the US, and such pos-
sible substitute materials as tungsten and chromium are relatively
scarce; (2) molybdenum is less plentiful in the Satellite area than
are tungsten and chromium and most other possible substitute
materials; and (3) alloy steel production as a percentage of total
steel production is greater in the US than in the Satellites.
1. History of the Industry.
China proper has never been a significant producer of
molybdenum. For example, in the year of highest production, 1940,
about 15 metric tons of molybdenum concentrates were recovered
from tungsten operations in South China. It is estimated that
less than 6 metric tons of molybdenum were contained in these con-
centrates. 68/
The Japanese initiated large-scale molybdenum production
in Manchuria in 1940, following the discovery of molybdenum in the
lead and zinc ores of the Yang-chia-chang-tzu deposit. They built
a flotation mill capable of handling 800 metric tons of ore per day
in conjunction with the Yang-chia-chang-tzu mine. Production under
the Japanese reached a peak level in 1944 and dropped sharply
following the surrender in 1945. 69/ The occupying Soviet forces
and local Chinese civilians looted the mine and ore-processing mill
of machinery, ball bearings, electric motors, motor belting, and
other capital equipment items. 70/ When the Chinese Communists
attained control of the area, they undertook the rehabilitation of
the mine and mill. The USSR supplied technicians and equipment to
speed recovery and is now in full control of Manchurian molybdenum
production. 71/
2. Principal Deposits.
The Yang-chia-chang-tzu deposit is by far the most impor-
tant molybdenum deposit in Communist China. Estimated reserves are
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8 million metric tons of ore with molybdenite content of 0.4 per-
cent, equivalent to about 20,000 metric tons of metal. 72/ This
estimate is based largely on studies of the deposit made by the
Japanese before 1945, and it may well be that the reserves are
even larger, as the area had not been fully explored.
The Ma-lu-kou mine in the Pen-ch'i district of Manchuria
contains ore with 1.2 percent molybdenite together with copper and
silver. The reserves are unknown, but they are believed to be
relatively small.
There are also molybdenum deposits at P'u-pien-tsun
and at Shis-ping-ch'uan which contain high-grade ore, running in
excess of 3 percent molybdenum. Production in these areas has been
insignificant, but reserves of molybdenum, although remaining un-
known, appear to be substantial. 73/ Tungsten deposits in Communist
China contain some molybdenum, but the percentage is low, and re-
serves are not believed to be very large.
Little is known concerning the mineral resources of the
western parts of Communist China. There have been reports from time
to time of molybdenum discoveries in this area, but details are
lacking. The area may prove to be an important source of molybdenum
in the future.
The principal molybdenum deposits in Communist China
are listed in Table 6.
Table 6
Principal Molybdenum Deposits in Communist China
Deposit
North
East
Shih-fen-kou
42?38'
129?33'
Yang-chia-chang-tzu
4o?49'
120?30'
Ma-lu-kou
41?12'
124?l8'
Shis-ping-ch'uan
28?23'
120018'
P'u-pien-ts'un
25?53'
118059'
Ssu-chien-k'eng
25?53'
118?59'
Ch'ih-t'ien-yang
26039'
119?33'
Hsien-tu
25?03'
117?36'
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3. Production and Trade.
The estimated production of molybdenum in Communist China
in 19+0-52 is given in Table 7.
Estimated Production of Molybdenum in Communist China
19+0-52
19+0
19+1
19+2
19+3
191
19+5
19+6-49
1950
1951
1952
28 a/,
55 a/
242 J
335 a/
335
20 a/
N.A.
125 b_/
225
325
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Production for the years 1950-52 has been estimated on
the basis of available information on production under the Japanese
and efforts on the part of the Chinese Communists and Russians to
increase production during this period. The Yang-chia-chang-tzu
mine, which furnishes all but a small fraction of molybdenum produc-
tion, came under the control of the Chinese Communists in October
1947. At that time the mine was idle, and the equipment removed
or destroyed by the Russians in 1945 had not been replaced. The
Chinese Communists lacked the necessary equipment and technicians
to rehabilitate the mine and restore a high level of production.
The USSR began supplying these needs in 1949 and 1950. The level
of production that has been attained since that time has depended
primarily upon how freely the USSR has supplied necessary equipment
and technicians. Actual production during these! years may have
been higher or lower than the figures given in Table 7, but it is
believed that the margin of error is not large.
Virtually the entire output of molybdenum in Communist
China is exported to the USSR in the form of molybdenum concen-
trates. 75/
4. Supply Position.
A summary of the estimated molybdenum supply position
of Communist China for 1950-52 is given in Table 8.
Estimated Molybdenum Supply Position of Communist China
1950-52
Year
Production
Consumption
Imports
Apparent
Exports
1950
125
0
0
125
1951
225
0
0
225
1952
325
0
0
325
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5. Future Development.
The molybdenum deposits in Communist China provide a raw
material base sufficient for a molybdenum industry considerably lar-
ger than that which now exists. The development of these deposits
depends mainly upon the availability of capital equipment and tech-
nically trained personnel, because the USSR already provides a ready
market outlet. Considering its need for molybdenum, the USSR prob-
ably will provide enough capital equipment and technically trained
personnel to assure a high level of production.
North Korea is the second ranking molybdenum producer among
the Satellites. There is, however, little detailed information
available concerning the development and present status of the North
Korean molybdenum industry.
1. Principal Deposits.
There are several molybdenum deposits in North Korea, as
listed in Table 9, but the Suan deposit is the only one of any impor-
tance.
Principal Molybdenum Deposits in North Korea
Deposits
North
East
Suan
38?L-2'
l20022'
Choum-ni
38?08'
126?23'
Mokki
38?35'
127?58'
Kumgang
38038'
127?10'
Little is known concerning the geological characteristics
of the North Korean deposits. The Kumgang mine reportedly contains
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4 percent molybdenite; the ratio is 3 to 4 percent molybdenite in
most of the other mines, with poor deposits ranging as low as
0.3 percent molybdenite. 76/ The extent of North Korean molybdenum
reserves is unknown.
2. Production and Trade.
The Suan mine is the principal source of North Korean
molybdenum. Current production levels in North Korea are impos-
sible to estimate because of the present war conditions. The
estimated production in recent years is given in Table 10. Almost
the entire amount of molybdenum produced in North Korea is exported
to the USSR, and there is no significant consumption in North Korea.
Estimated Production of Molybdenum in North Korea 77/
19+7-52
Year
Amount
19+7
8
19+8
12
19+9
4+7
1950
58 a/
1950
91
1951-52
N.A.
a. January to August.
3. Supply Position.
A summary of the estimated molybdenum supply position
of North Korea for 1947-52 is given in Table 11.*
* Table 11 follows on p. 27.
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Estimated Molybdenum Supply Position of North Korea
1947-52
Apparent
Year Production Consumption Imports Exports
1947 8 0 0 8
1948 12 0 0 12
1949 47 0 0 47
1950 91 0 0 91
1951-52 N.A. N.A. N.A. N.A.
1. History of the Industry.
Before World War II, molybdenum production in Rumania
was insignificant. War demands stimulated production and raised
Rumania's output to about 8 metric tons in 1941. 78/ During the
latter part of 1941 and in 1942, the Germans partially depleted
the leading deposit. Consequently, production dropped sharply
in 1943. 79/
In 1948, a Soviet-Rumanian joint company was formed to
exploit the remaining Rumanian molybdenum reserves. It was agreed
that equipment and special technicians would be furnished by the
USSR and that Rumania would provide the mineral deposits and labor. 80/
2. Principal Deposits.
The only important molybdenum deposit in Rumania is
located at Baita, in the Bihor Mountains, 9 kilometers east of
Vascau. 81/ This mine produces a complex molybdenum-bismuth ore
with a molybdenite content varying between 0.15 and 0.45 percent. 82/
The mine is old and had been idle for many years before 1939, when
it was reopened. 83/ The Germans operated the mine from 1941 until
1944 and seriously depleted the reserves. In 1946 and 1947 the
Rumanians undertook to redevelop and expand the mine, and under Soviet
guidance and direction they are striving to recover the maximum pos-
sible amounts of molybdenum.
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Other small and scattered molybdenum deposits in Rumania
are of no economic significance at the present time. Total reserves
are unknown, but the Germans estimated the Baita reserves at no more
than 125 metric tons of molybdenum content in 1942. 84/
There is, in conjunction with the Baita mine, a small
flotation mill, which in 1949 was capable of processing 50 metric
tons of ore daily. 85/ The Baita mill produces molybdenum concen-
trates. There are no other known molybdenum-processing plants in
Rumania.
3. Production.
The estimated production of molybdenum in Rumania in
1941-52 is given in Table 12.
Estimated Production of Molybdenum in Rumania
1941-52
1941
1942
1943
1944-47
1948
1949
1950
1951
1952
Amount
8.0 a/
7.4 a/
4.3 a/
N.A.
3.5 b/
3.5 b/
4.o c/
4.0 c/
4.0 c/
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4+. Consumption and Uses.
Rumania produces only small quantities of molybdenum-
consuming alloy steels. Accordingly, it has been estimated that
the ratio of molybdenum consumption to raw steel production in
Rumania is no more than 30 percent of that of the US. The figures
in Table 13, showing the estimated consumption of molybdenum in
Rumania in 19+7-52, were calculated on this basis.
Estimated Consumption of Molybdenum in Rumania
19+7-52
Year
Iron and Steel Industry
Other
Total
1947
5
Negligible
5
19+8
8
Negligible
8
19+9
9
Negligible
9
1950
11
1
12
1951
12
1
13
1952
12
1
13
Because of the relatively low state of development of
other molybdenum-consuming industries in Rumania, it is estimated
that the iron and steel industry accounts for at least 95 percent
of consumption.
5. Supply Position.
A summary of the molybdenum supply position of Rumania
for 19+7-52 is given in Table 11.*
6. Future Development.
The Rumanian molybdenum deposits are not of sufficient
size to permit the development of the industry appreciably beyond
its present state. All workable deposits, however, probably will
Table 1 follows on p. 30.
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Table 14
Estimated Molybdenum Supply Position of Rumania
19+7-52
Year
Production
Consumption
Exports
Apparent
Imports
19+7
N.A.
5
N.A.
N.A.
19+8
3.5
8
0
4.5
19+9
3.5
9
0
5.5
1950
4.0
12
0
8.0
1951
4.0
13
0
9.0
1952
4.0
13
0
9.0
be exploited to the fullest practical extent because of the scarcity
of molybdenum in the Soviet Bloc.
1. General.
Czechoslovakia has no molybdenum deposits and hence
relies wholly on imports to satisfy domestic requirements. Because
of relatively expensive electric power and limited electric furnace
capacity, Czechoslovakia has never produced ferroalloys to any
extent except for ferromanganese, which can be produced in blast
furnaces. 89/ Czechoslovakia imports molybdenum in the form of
molybdic oxides, ferromolybdenum, molybdenum metal, and molybdenum
products such as molybdenum wire and sheets.
In the past, Czechoslovakia procured its molybdenum
supplies almost exclusively from English and other Western European
metal brokers, seldom, if ever, purchasing directly from the primary
producers, located largely in the Western Hemisphere. 90/ The
advent of the embargo on shipments of strategic materials to the
Soviet Bloc forced Czechoslovakia to resort to clandestine trade
channels to procure molybdenum from the West. Czechoslovak trade
representatives in the West have displayed a willingness to pay
inordinately high prices for molybdenum in almost any quant:ity.
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These efforts have met with some success, and sizable amounts of
molybdenum have moved from the West to Czechoslovakia in the form
of transshipments through such countries as Switzerland, Italy,
Belgium, Austria, West Germany, and Sweden.
The trade channels that the Czechoslovak iron and steel
industry established with the West prior to the Communist domination
of Czechoslovakia have unquestionably served as an aid to the Soviet
Bloc in its attempts to procure molybdenum from the West by clandes-
tine means. It is probable that these channels are currently being
utilized to obtain molybdenum for other members of the Bloc as well
as for Czechoslovakia.
2. Consumption and Uses.
Czechoslovakia is one of the leading producers of alloy
steel among the Satellite countries and as such consumes approxi-
mately 50 percent as much molybdenum in relation to its total raw
steel production as does the US.
The estimated consumption of molybdenum in Czechoslovakia
in 1947-52, based on this 50-percent consumption factor, is given in
Table 15. Ninety percent of the molybdenum is consumed by the iron
and steel industries. Czechoslovakia's other molybdenum consuming
industries, being relatively highly developed, are estimated to
account for 10 percent of total molybdenum consumption.
Estimated Consumption of Molybdenum in Czechoslovakia
1947-52
Year
Iron and Steel Industry
Other
Total
1947
114
13
127
1948
143
16
159
1949
166
18
184
1950
193
21
214
1951
200
22
222
1952
207
23
230
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3. Supply Position.
A summary of the molybdenum supply position of Czecho-
slovakia for 1947-52 is given in Table 16.
Table 16
Estimated Molybdenum Supply Position of Czechoslovakia
1947-52
Metric Tons
Year
Production
Consumption
Exports
Apparent
Imports
1947
0
127
0
127
1948
0
159
0
159
1949
0
184
0
184
1950
0
214
0
214
1951
0
222
0
222
1952
0
230
0
230
E. Poland.
Poland, having no molybdenum deposits, is wholly dependent
upon imports to meet its requirements. Unlike Czechoslovakia, however,
Poland has facilities for the manufacture of ferromolybdenum and
therefore imports molybdenum in all stages of manufacture from ore
concentrates to finished molybdenum products. Before the COCOM
embargo on shipments of molybdenum to the Soviet Bloc, Poland imported
the bulk of its molybdenum from Sweden, Norway, and other Western
European countries. The embargo forced Poland to rely, partially
at least, upon clandestine trade channels for molybdenum. supplies,
as only limited amounts can be imported from the USSR and other areas
of the Bloc. 9l/ It is not possible to measure accurately the quan-
tities of molybdenum which Poland is able to procure from these
different sources at the present time.
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2. Consumption and Uses.
Like Czechoslovakia, Poland is a leading producer of
alloy steel among the Satellites and is estimated to consume ap-
proximately 50 percent as much molybdenum in relation to its raw
steel production as does the US. The consumption of molybdenum in
Poland in 19+7-52 as based on this estimate is given in Table 17.
Estimated Consumption of Molybdenum in Poland
19+7-52
Year
Iron and Steel Industry
Other
Total
19+7
79
4
83
19+8
l06
6
112
19+9
141
7
148
1950
161
8
169
1951
164
9
173
1952
171
9
180
The iron and steel industry consumes an estimated 95 percent of
the molybdenum imported. Poland's other molybdenum-consuming
industries are not so highly developed as those of Czechoslovakia
and consume only an estimated 5 percent of available molybdenum
supplies.
3. Supply Position.
The estimated molybdenum supply position of Poland
for 19+7-52 is given in Table l8.*
Table 1 follows on p. 34.
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Table 18
Estimated Molybdenum Supply Position of Poland
1947-52
Metric Tons
Year
Production
Consumption
Exports
Apparent
Imports
1947
0
83
0
83
1948
0
112
0
112
1949
0
148
0
148
1950
0
169
o
169
1951
0
173
0
173
1952
0
180
0
180
F. Hungary.
1. General.
Hungary, like Czechoslovakia and Poland, has no molyb-
denum deposits and imports its total supply in the form of ferro-
molybdenum, pure molybdenum metal, and finished molybdenum products.
Under the present Five Year Plan (1951-55), Hungary is
placing considerable stress on the development of quality steels
and, accordingly, is expanding ferroalloy production facilities. 92/
Ferromolybdenum, however, is not to be produced under the program,
and Hungary will continue to rely on imports.
At least part of Hungary's molybdenum requirements are
met by imports from the USSR. 93/ Vigorous Hungarian efforts to
procure molybdenum from Western sources via clandestine trade chan-
nels indicate that molybdenum imports from the USSR fall short of
satisfying the demand of the Hungarian iron and steel industry. 94/
2. Consumption and Uses.
Hungary produces relatively large amounts of alloy steel,
and its ratio of molybdenum consumption to total raw steel production
is estimated to be approximately equal to that of Poland and Czecho-
slovakia: that is. about 50 percent of that of the US. The iron
and steel industry consumes an estimated 90 percent of the molybdenum
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imported. Molybdenum consumption by other industries in Hungary
accounts for about 10 percent of total consumption.
The consumption of molybdenum in Hungary in 1947-52
is given in Table 19.
Table 19
Estimated Consumption of Molybdenum in Hungary
1947-52
Year
Iron and Steel Industry
Other
Total
1947
30
3
33
1948
43
5
48
1949
50
6
56
1950
57
6
63
1951
57
6
63
1952
59
7
66
3. Supply Position.
A summary of the molybdenum supply position of Hungary
for 1947-52 is given in Table 20.
Estimated Molybdenum Supply Position of Hungary
1947-52
Year
Production
Consumption
Exports
Apparent
Imports
1947
0
33
0
33
1948
0
48
0
48
1949
0
56
0
56
1950
0
63
0
63
1951
0
63
0
63
1952
0
66
0
66
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G. East Germany.
East Germany also is devoid of commercially exploitable
molybdenum deposits and is dependent on imports. Although East
Germany has ample electric furnace capacity for the manufacture of
ferromolybdenum, it lacks the necessary molybdenum ores and concen-
trates. Therefore, it imports ferromolybdenum, pure molybdenum
metal, and fabricated molybdenum products. As have other members
of the European Satellite group, East Germany has experienced
difficulty in obtaining the required quantities of molybdenum from
the West and, as recently as December 1951, was experiencing an
acute shortage of molybdenum. 95/
The amount of molybdenum that East Germany is able to
import from the USSR is unknown, but, judging by intelligence reports,
it appears to be insufficient to satisfy requirements. Evidence of
this is found in the current unusually high prices commanded for
molybdenum and molybdenum products shipped from Western Europe to
East Germany. These prices have ranged up to several hundred per-
cent of US prices for comparable products. 96/
2. Consumption and Uses.
East Germany produces relatively little alloy steel. The
ratio of molybdenum consumption to raw steel production in East
Germany is estimated to be not more than 30 percent of that of the
US. The iron and steel industry consumes an estimated 90 percent of
the molybdenum imported. Other molybdenum-consuming industries
account for approximately 10 percent of total consumption.
The consumption of molybdenum in East Germany in 19+7-52
is given in Table 21.*
3. Supply Position.
A summary of the molybdenum supply position of East Germany
for 19+7-52 is given in Table 22.**
Table 21 follows on p. 37.
Table 22 follows on p. 37.
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Estimated Consumption of Molybdenum in East Germany
1947-52
Year
Iron and Steel Industry
Other
Total
1947
3
Negligible
3
1948
14
2
16
1949
23
3
26
1950
41
5
46
1951
62
7
69
1952
87
10
97
Estimated Molybdenum Supply Position of East Germany
1947-52
Year
Production
Consumption
Exports
Apparent
Imports
1947
0
3
0
3
1948
o
16
0
16
1949
0
26
0
26
1950
0
46
0
46
1951
0
69
0
69
1952
0
97
0
97
The molybdenum supply position of the Soviet Bloc has improved
considerably in the postwar years. The estimated supply position
for 1952 is summarized in Table 23.* The improvement is especially
* Table 23 follows on p. 38.
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Summary of the Estimated Molybdenum Supply Position
of the Soviet Bloc
1952
Country
Production
Consumption
Exports
Imports
USSR
3,550
3,293 a/
582
325 b/
Communist China
325
0 _
325 c/
0
North Korea
N.A.
N.A.
N.A.
N.A.
Rumania
L.
13
0
9 d/
Czechoslovakia
0
230
0
230 d/
Poland
0
180
0
180 d/
Hungary
0
66
0
66 d/
East Germany
0
97
0
97 a/
Total 3,879 3,879 907 907
a. Apparent consumption.
b. From Communist China.
c. Apparent exports to the USSR.
d. Apparent imports from the USSR.
noticeable in the USSR, where indigenous production and imports from
Communist China appear to provide sufficient molybdenum for essential
industrial requirements and to leave a small surplus for stockpiling
and for exports to the European Satellites. The European Satellites,
however, are not so well supplied, and imports from the USSR are not
sufficient to meet all eseential needs. Reserves in Communist China
are, on the other hand, substantial, and the Bloc appears to be in
a position to obtain increased supplies through further exploitation
of resources in both the USSR and Communist China.
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