COPPER IN THE USSR 1955

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CIA-RDP79R01141A000900170002-1
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December 31, 1957
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REPORT
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Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 tI- ECONOMIC INTELLIGENCE REPORT COPPER IN THE USSR 1955 CIA/RR 115 31 December 1957 N? 3 CENTRAL INTELLIGENCE AGENCY OFFICE OF RESEARCH AND REPORTS Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 I Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 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. Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 S-E-C -R-E-T ECONOMIC INTELLIGENCE REPORT COPPER IN ME USSR 1955 CIA/RR 115 (ORR Project 24.869) CENTRAL INTELLIGENCE AGENCY Office of Research and Reports S-E-C -R -E-T Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 S-E-C-R-E-T FOREWORD Although the USSR has not released any absolute figures on the production, reserves, imports, exports, consumption, or stocks of copper for nearly 20 years, sufficient Soviet data are available on which to base a complete series of estimates on production of refined copper. Such a series is presented in this report and is accompanied by a full description of the underlying methodology and the sources employed. Although the estimates of production of refined copper are believed to be subject to only a small margin of error, those de- veloped for other aspects of copper in the Soviet economy are subject to margins of error that may be of considerable magnitude. Estimates of Soviet trade in copper, for example, although based on an exhaustive analysis of a large quantity of fragmentary information, must be con- sidered incomplete. Estimates of the Soviet stockpile of copper and of the demand for copper in the USSR were derived entirely from secondary material and must be considered preliminary. These limita- tions reflect the prevailing scarcity of primary information, but the conclusions are believed to be valid. S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 S-E-C-R-E-T CONTENTS Page Summary 1 I. Distribution of Resources 3 II. Remaining Reserves 5 III. Production 6 1 A. Metal 6 1 B. Mines and Mining Areas 11 C. Beneficiation 12 D. Smelters 13 E. Electrolytic Refineries 13 IV. Trade A. East-West B. Intra-Bloc 16 V. Demand 17 VI. Supply and Demand Balance 21 VII. Stockpile 25 VIII. Capabilities, Vulnerabilities, and Intentions 25 Appendixes Appendix A. Deposits of Copper and Processing Facilities in the USSR Appendix B. Methodology 29 37 50X1 - v - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : IA-RDP79R01141A000900170002-1 -E -C-R-E-T Tables Page 1. 2. Estimated Production of Copper in the USSR, 1913, 1937-55, and 1960 Estimated Production of Copper in the USSR, by Economic Region, 1950-55 and 1960 8 10 3. Estimated Imports of Copper by the USSR, 1946-55 17 U. Estimated Demand for Copper in the USSR, 1929-55 19 5. Supply and Demand Balance of Copper in the USSR, 1929-55 22 6. Major Deposits of Copper in the USSR, 1955 . . ? ? 30 7. Copper Smelters in the USSR, 1955 33 8. Electrolytic Copper Refineries in the USSR, 1955 35 9. Production of Crude Steel and Consumption of Refined Copper in the US, 1930-55 39 Illustrations Following Page Figure 1. USSR: Production and Imports of Copper, 1913, 1937-55, and 1960 Plan (Chart) . . . 22 Figure 2. USSR: Evolution of the Copper Stockpile, 1937-55 (Chart) 26 Figure 3. USSR: Copper Deposits, Smelters, and Inside Electrolytic Refineries, 1955 (Map) . Back Cover - vi - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 CIA/RR 115 S-E-C-R-E-T (ORB Project 24.869) COPPER IN THE USSR* 1955. Summary The USSR is the largest producer of refined copper in the Sino- Soviet Bloc, probably accounting for more than 80 percent of the total production of the Bloc, and also ranks among the leading producers of the world. It is estimated that in 1955 the USSR produced 377,300 metric tons** of refined copper, or about 10 percent of the world pro- duction, thus ranking second only to the US, which produced 1,430,000 tons. Soviet production of refined copper in 1960 is scheduled to be about 604,000 tons. The high position the USSR has attained as a producer of copper is made possible fundamentally by the abundant resources of copper within its borders. Although no data on reserves have been released since the beginning of 1939, Soviet reserves at that time were among the largest in the world. Even if no additional resources had been discovered since 1939, the reserves known to be remaining would be adequate to sustain production at current levels for about 50 years. The new discoveries that have been reported from time to time since 1939 undoubtedly have added significantly to Soviet reserves, but no specific figures have been included in such announcements. Despite the relatively high domestic production of copper and the large reserves, the USSR has been a net importer of copper for many years. Imports reached their highest level during World War II, when the USSR received nearly 400,000 tons of copper from the US under Lend-Lease agreements. In 1944, for example, shipments from the US totaled 233,400 tons, an amount that exceeded Soviet production by nearly 60 percent. After World War II the USSR continued to import copper, but until 1953 receipts were fairly small, averaging less than 10,000 tons an- nually during 1946-52. During 1953-55, imports averaged more than 60,000 tons annually, all of which originated in the Free World. * The estimates and conclusions contained in this report represent the best judgment of ORB as of 1 October 1957. ** Tonnages are given in metric tons throughout this report unless other- wise indicated. S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 S-E-C-R-E-T Following World War II, most of the exports of copper to the USSR originated in countries which are now members of the Coordinating Committee on International Export Controls (COCOM).* Such exports were placed under quantitative control in August 1950 and under embargo in April 1951. All forms of copper were embargoed until mid-August 1954. At that time the export control lists were revised, and bare copper wire 6 millimeters (mm) and less in diameter was placed under surveil- lance.** Other forms of copper remain embargoed. Until the removal of the embargo on bare copper wire, most of the copper shipped to the USSR was in unwrought forms. Since August 1954, however, exports have consisted principally of bare copper wire. Although production of copper in the USSR has nearly tripled since the end of World War II, the demand for copper has nearly quad- rupled. Most of the demand stems from the requirements of electrical equipment and machinery and from the manufacture of military end items. To keep pace with these demands, Soviet production of copper has been supplemented by substantial imports from the Free World and by with- drawals from the stockpile of copper, most of which was accumulated during World War II. It is believed that the stockpile was reduced from about 700,000 tons at the end of the war to a little less than 600,000 tons in 1955. In view of the abundance of Soviet resources of copper and the methods and equipment employed in their exploitation, there is no natural or technological reason for the failure of the USSR to achieve self-sufficiency in copper. To explain this failure, it is necessary to consider the location of Soviet resources of copper and the char- acteristics of these resources, as well as the supply of needed machinery and manpower. Most of the Soviet resourcesof 'copper are located in the eastern part of Region Xaxxx (Kazakhstan) and in Uzbek SSR in Region )Cb (Central Asia), areas that are remote from centers of population and the manufacture of copper products. In addition, the copper ores are relatively low grade, probably averaging about 1 per- cent copper, and are oxidized. The rapid expansion of production * The members of cocom are Belgium, Canada, Denmark, France, Greece, Italy, Japan, Luxembourg, the Netherlands, Norway, Portugal, Turkey, the UK, the US, and West Germany. ** For a discussion of CCCOM controls, see IV, A, p. 14, below. - 2 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 50X1 Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 S-E-C-R-E-T of copper metal under such conditions requires not only scientific and engineering skill but also a huge investment of capital. The process- ing of oxidized ores requires changing from flotation processes commonly used with sulfide ores to hydrometallurgical processes for use with oxi- dized ores. Such a change involves the replacement of considerable quan- tities of costly equipment. Mining, milling, and beneficiating low-grade copper ores must be largely a mechanized operation, and the current short- age of qualified labor in the USSR makes this requirement difficult to fill. Finally, the problem of assembling adequate supplies of power, labor, food, water, and the equipment for mining, milling, beneficiating, and refining is particularly difficult in view of the present facilities for transportation in the USSR. Although the Sixth Five Year Plan (1956-60) calls for an increase of 60 percent in production of copper, the proportion of the invest- ment in the nonferrous metals industry that will accrue to the copper industry probably will not be adequate to bring the production abreast of the growing demand. It is anticipated, therefore, that, in order to meet other industrial goals of the Plan, the USSR will continue to import copper from the Free World. I. Distribution of Resources.* Most of the resources of copper in the USSR are located in four economic regions -- Region V (Transcaucasus), mainly in the Armenian SSR; Region VIII (Urals); Region Xa (Kazakhstan); and Region Xb (Central Asia), mainly in Uzbek SSR. In 1937 these four regions accounted for nearly 93 percent of all the Soviet resources of copper. The copper content of these resources was estimated by the USSR at 17.1 million tons in 1936, 1/** and 19.5 million tons in 1939. gi Although no official esti- mates of resources have been published by the USSR since 1939, the amount of geological prospecting reported suggests that additional resources of * For further details on the major deposits of copper in the USSR, see Table 6, Appendix A, p. 30, below. For the location of these deposits, see the map, Figure 3, inside back cover. 50X1 - 3 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 S-E-C-R-E-T copper have been discovered since that date. The distribution of the resources of copper in the USSR in 1937, by economic region) was as follows Economic Region Percent of Total V (Transcaucasus) 9.20 VIII (Urals) 15.97 Xa (Kazakhstan) 52.34 Xb (Central Asia) 15.04 Others 7.45 Total 100.00 Other resources of copper include the ores from Noril'sk, which contain a small percentage of copper in addition to nickel, cobalt, and metals of the platinum group, and the nickel-copper ores of the Kola Peninsula. Copper is produced in these two areas as a byproduct of the nickel-mining industry. The oldest copper-producing region in the country is Region VIII. During the middle of the 18th Century, it was the leading copper- producing region of the world. The main copper belt extends southward along the eastern range of the mountains from Krasnoural'sk in Sverd- lovskaya Oblast to Zlatoust in Chelyabinskaya Oblast. These deposits always have been of primary importance in the various attempts of the USSR to increase production of copper. Although deposits in some of the older producing areas are approaching exhaustion, additional discoveries resulting from more intensive exploration may be expected because of the size of the area. Copper has also been produced for many years in Region V. In the 1890's the deposits at Zangezur (Kafan) and Shamlug (Alaverdi) were discovered and production was developed rapidly by foreign capital. Since that time, other deposits have been discovered, but most of them contain very low-grade ore. Inasmuch as Region V has been thoroughly explored geologically, the discovery of large new deposits containing high-grade ore is improbable. The largest deposits of copper in the USSR have been found in Re- gion Xa. These deposits form the basis of the Soviet copper industry and will become progressively more important. Although these deposits were discovered many years ago, they have become especially significant only since World War II. The deposit at Dzhezkazgan, probably the largest -k - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 S-E-C-R-E-T in the USSR, was discovered in 1771, but mining actually was not under way until 1906. The deposit at Kounrad was discovered in 1928. A third deposit, at Boshchekul, the existence of which also has been known for some time, is expected to be developed under the Sixth Five Year Plan. The lack of facilities for transportation probably explains the delay in developing this deposit. A large deposit of copper, similar in both size and quality to the deposit at Kounrad, has been located at Almalyk in eastern Uzbek SSR, about 75 kilometers (km) southeast of Tashkent. The development of this deposit, interrupted by World War II, was resumed in 1946, V but pro- duction had not started by 1949. No further mention of progress in exploiting this deposit was made until March 1956, when Pravda stated that the first section of the copper mine will begin operations in 1957 and that the first section of a copper smelter will be completed under the Sixth Five Year Plan. 2/ II. Remaining Reserves. The Soviet press has provided little concrete information on re- sults of exploratory work in the field of nonferrous metals in general and of copper in particular. Numerous statements of a general nature have been released indicating that exploratory activity has taken place. The geological organizations of the Ministry of Nonferrous Metallurgy did considerable work under the Fifth Five Year Plan and succeeded in expanding the reserves of nonferrous metallic ore. ?,/ To what extent these efforts apply to reserves of copper, however, is not specified. That the Soviet press has published few statements on copper should not be taken as indicating a lack of interest in developing new resources of copper. Bulganin has stated: In the Sixth Five Year Plan, serious attention must be paid to the development of nonferrous metallurgy. A large quantity of copper, lead, and aluminum will be re- quired for the new electric power stations and electric power network, for cable communication lines, accumu- lators, electrification of railways, and other needs of the national economy. In order to increase the produc- tion of nonferrous and rare metals, it is necessary to develop the ore base, improve the complex utilization of raw materials, and insure a fuller extraction of ores. I/ - 5 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : DIA-RDP79R01141A000900170002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 S-E-C-R-E-T To accomplish these objectives, investment in the development of nonferrous metals is to increase sharply. In Region Xa, for ex- ample, the amount to be spent on expanding the nonferrous metal- lurgical industry under the Sixth Five Year Plan is more than 10 billion rubles,* or somewhat more than twice the amount spent under the Fifth Five Year Plan. ?./ Inasmuch as Region Xa is the leading copper-producing region and has the largest resources of copper in the USSR, it is probable that a sizable share of this investment will be spent in exploration and the development of new reserves of copper. In view of various uncertainties, an estimate of the exact size of the total reserves of copper in the USSR is not warranted. It is possible, however, to estimate the minimum reserves of the USSR, which at the end of 1955 amounted to at least 16 million tons (re- serves in 1939 less cumulative production througb 1955). Even on this basis, which is conservative in the extreme, the reserves of copper in the USSR at the end of 1955 were exceeded only by those of the following countries: the Belgian Congo, Chile, Northern Rhodesia, and the US. It can be stated with assurance, therefore, that the reserves of copper in the USSR are among the largest in the world. III. Production. A. Metal. The USSR is the largest producer of refined copper in the Sino-Soviet Bloc, probably accounting for more than 80 percent of the total production by the Bloc, and also ranks among the leading producers of the world. It is estimated that in 1955 the USSR prod- uced 377,300 tons of refined copper, or about 10 percent of the world production, 2/ thus ranking second only to the US, which produced 1,430,000 tons. ly The USSR has been especially reticent about produc- tion of copper metal since the beginning of World War II. No tonnage figure for production of copper in the USSR as a whole or in any of its producing regions has been released since 1938, when production was said to have amounted to 103,200 tons, of which 83,700 tons were from ore. Other statements in the Soviet press made it possible to arrive at firm figures for production in * The official rate of exchange, 4 rubles to US $1, is not necessarily an accurate reflection of the dollar value. - 6 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 S-E-C-R-E-T 1939 and 1940. Although annual percentage increases have been pub- lished for most of the years since World War II, such percentages must be applied to a base figure. Uncertainty as to this base figure, usually taken to represent production in 1945, has given rise to divergent estimates, both here and abroad, of production of copper in the USSR since the war. Three facts concerning achievements during the Fifth Five Year Plan were recently published, as follows 11/: 1. Production of blister copper in Region Xa in 1955 was 79 percent greater than in 1950. 2. In 1955, Region Xa produced 44 percent of all the copper produced in the USSR. 3. The total production of copper in the USSR in 1955 was 53 percent greater than in 1950. These three statements, which are believed to relate to refined copper produced from both ores and scrap, can be related to other data pub- lished previously to derive a complete series of figures on production based entirely on information released by the USSR. The estimated production of copper in the USSR in 1913, 1937-55, and 1960 is shown In Table 1.* The estimated production of copper in the USSR, by eco- nomic region, in 1950-55 and 1960, is shown in Table 2.** As indicated in Table 2, production of copper reached 377,300 tons in 1955, and Region Xa showed the greatest increase. In 1954, for the first time, more copper was produced in Region Xa than in Region VIII. In 1960, Region Xa is scheduled to produce more than one-half of the national total, with Region VIII contributing a little less than 30 percent. This trend results directly from the distri- bution of the resources of copper. Region Xa was reported to possess more than one-half of the resources of copper in the USSR in 1937. In view of the large size of Region Xa -- a little more than one-third as large as the US -- additional exploration may have disclosed new de- posits of copper since that time. It is conceivable, therefore, that the reserves of copper in Region Xa are considerably larger than they were in 1937. In any case, Region Xa is expected to continue as the largest copper-producing region in the USSR for many years.*** * Table 1 follows on p. 8. ** Table 2 follows on p. 10. *** Continued on p. 11. - 7 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : :;IA-RDP79R01141A000900170002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 S-E-C-R-E-T Table 1 Estimated Production of Copper in the USSR 1913, 1937-55, and 1960 Thousand Metric Tons Year Region Xa a/ (Kazakhstan) Total Year Region Xa a/ (Kazakhstan) Total 1913 5.1 12/ 31.0 2/ 1947 57-7 La/ 155.7 2/ 1948 63.9 2/ 186.8 2/ 1937 N.A. 97.6 1/ 1949 77-9 s/ 224.2 LI 1938 N.A. 103.2 2/ 1950 92.7 2/ 246.6 I/ 1939 N.A. 142.5 E/ 1951 98.3 g 281.1 m/ 1940 35.5 fil 161.0 1-1/ 1952 109.4 Ii/ 323.3 xJ 1941 41.7 1/ 186.8 li 1953 120.6 y/ 320.8 !/ 1942 43.1 1/ 164.0 1/ 1954 143.3 12/ 336.8 2.-2:i 1943 44.6 li 141.2 1/ 1955 166.0 1211 377.3 22/ 1944 52.6 1/ 147.4 1/ 1945 55-0 1/ 134.7 ii 1960 315.4 aq/ 603.7 22/ 1946 55.0 hi 142.8 1/ 50X1 b. In 1913, Region Xa produced 5,070 tons of copper. 12/ d. In 1938, 5.7 percent more copper was smelted than in 1937. 2jil Production in 1938 is known, and production in 1937 was derived. f. Production of copper in 1939 was 46 percent greater than that In 1937./ g. In 1911.0, smelting of black Copper in Region Xa was seven times greater than that in 1913. 11/ h. In 1940, production of copper was In 1937. 1?/ i. For methodology, see Appendix B. j. Derived from production in 1946, than that in 1945. 12/ k. Derived from production in 1947, than that in 1946. 20/ 1. Derived from production in 1947, than that in 1946. gl/ - 8 - 65 percent greater than that which was 6 percent greater which was 5 percent greater which was 9 percent greater S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 S-E-C-R-E-T Table 1 Estimated Production of Copper in the USSR 1913, 1937-55, and 1960 (Continued) in. Derived from production in 1948, which was 10.7 percent greater than that in 1947. gg/ n. Derived from production in 1948, which was 20 percent greater than that in 1947. 23/ o. Derived from production in 1949, which was 22 percent greater than that in 1948. ?LI./ p. Derived from production than that in-1948. .?.2/ q. Derived from production than that in 1949. gY r. Derived from production than that in 1949. gy./ s. The planned production of copper in Region Xa in 1950 was to be 260 percent of production in 1940, .2?./ or 92,274 tons. The Fourth Five Year Plan (1946-50) for production of copper in Region Xa was fulfilled by 100.5 percent. g2/ t. Derived from production in 1955, which was 53 percent greater than that in 1950. 32/ u. In 1951, production of copper in Region Xa was 6 percent greater than that in 1950. 21/ v. In 1951, production of copper in the USSR was 14 percent greater than that in 1950. 12./ w. Interpolated. x. In 1952, production of copper in the USSR was 15 percent greater than that in 1951. 22/ y. In 1953, production of copper in Region Xa was 30 percent greater than that in 1950.3.111/ z. Derived from production in 1954, which was 5 percent greater than that in 1953. .35j aa. Derived from production in 1955, which was 12 percent greater than that in 1954. 2?/ bb. In 1955, production of blister percent greater than that in 1950. cc. In 1955, Region Xa produced 44 percent of the copper produced in the USSR. 2?/ Production of copper in the USSR has been computed from this fact. dd. The planned production of blister copper in Region Xa in 1960 is 190 percent of that in 1955. 32/ ee. The planned production of copper in the USSR in 1960 is 160 percent of that in 1955.122/ in 1949, which was 20 percent greater in 1950, which was 19 percent greater in 1950, which was 10 percent greater copper in Region Xa was 79 - 9 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/08/15: CIA-RDP79R01141A000900170002-1 S-E-C-R-E-T Table 2 Estimated Production of Copper in the USSR, by Economic Region a/ 1950-55 and 1960 Thousand Metric Tons Year Region Ia (Northwest) Region V (Transcaucasus) Region VII (Central) Region VIII b/ (Urals) Region Xa 2/ (Kazakhstan) Region XI (East Siberia) Total 2/ 1950 1951 1952 1953 1954 1955 1960 6.o a/ 7.0 8.0 a/ 8.0 8.0 8.0 15.0 13.0 14.0 16.0 17.0 19.0 20.0 e 25.0 50.0 2/ 50.0 50.0 50.0 50.0 50.0 6o.o 82.9 108.8 135.9 120.2 110.5 126.3 178.3 92.7 98.3 109.4 120.6 143.3 166.0 315.4 12/ 2.0 II/ 3.0 4.o f/ 5.0 6.o 7.0 10.0 246.6 281.1 323.3 320.8 336.8 377.3 603.7 12/ b. Difference between the total regions. c. Figures d. 141/ e. 2 f. 3 production in the USSR and the are taken from Table 1, p. 8, above. g. / h. Plan figure. -10 - S-E-C-R-E-T sum of production Declassified in Part - Sanitized Copy Approved for Release 2013/08/15: CIA-RDP79R01141A000900170002-1 in the other 50X1 Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 S-E-C-R-E-T Under the Sixth Five Year Plan, production of copper in the USSR is scheduled to increase 6o percent over that in 1955. Attain- ment of this goal will result in production in 1960 of a little more than 600,000 tons, an increase of 226,000 tons over that in 1955. Two-thirds of the increase is to come from Region Xa, where production is scheduled to increase from 166,000 tons in 1955 to slightly more than 315,000 tons in 1960, a gain of nearly 150,000 tons. In 1960 the share of Region Xa in the total production of copper in the USSR will be more than 50 percent. Reliable data on the plans for production of copper in other regions are not avail- able. It is anticipated, however, that the producers of copper in Region VIII also will be called upon to increase their production. Except for Region Xa, the estimates of production in 1960 shown in Table 2 represent an attempt to apportion the planned production of copper in 1960 among the producing regions on the basis of frag- mentary qualitative information. B. Mines and Mining Areas.* The three principal mining areas in Region V are at Zangezur, Kadzharan, and'Shamlug. Most of the resources of copper are centered in the Zangezur district, where lode deposits containing 2 to 5 per- cent copper have been reported. The ore is chiefly chalcopyrite, occurring in irregular veins in andesite. At Kadzharan the deposit is porphyritic, containing about 0.6 percent copper. At Shamlug the grade of the ores available for exploitation is becoming pro- gressively lower. Of the principal copper mines in Region VIII, those at Degtyarka, Krasnoural'sk, and Blyava are reported to be among the most important. Copper is mined in the Degtyarka district from a deposit 5 km long. Three shafts are operating, and all are equipped i__/ with modern machinery. 45 The ore is reported to contain about 1.4 percent copper. 46 Copper-bearing pyrites, averaging about 2.2 percent copper 477 with small percentages of tin and zinc, are mined at Krasnoural'sk. At Blyava, all mined ore is chuted to the main level, where it is transported by a system of electric haulage to the hoisting shaft and thence to the surface for processing. The mine has up-to-date equipment, and mechanization has played an im- portant role in maintaining the level of production. 1??/ * For further details on the major deposits of copper in the USSR, see Table 6, Appendix A, p.30, below. For the location of these deposits, see the map, Figure 3, inside back cover. S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : D1A-RDP79R01141A000900170002-1 S-E-C-R-E-T The future of the copper industry in the USSR depends on the exploitation of large, low-grade deposits in Region Xa. The Kounrad open-pit mine in Region Xa is the largest copper-mining operation in the USSR1121 and compares favorably in size with some of the open-pit mines in the US. After about a decade of development, this mine began operating in 1939. 22/ Production of ore in 1940 amounted to only 7,500 tons, but the Fourth Five Year Plan (1946-50) called for production of 22,500 tons per day in 1950. 51/ It is estimated that in 1955 the daily production amounted to about 27,000 tons. The ore, containing about 1.1 percent copper, is mined with power shovels and transported about 20 km over an electrified railroad to the concentrator at Balkhash. 52/ The reserves of copper-impregnated sandstone in the deposit at Dzhezkazgan are spread over a large area. Mining operations are con- ducted from at least 50 shafts which have been sunk in all parts of Dzhezkazgan. 22/ There may be some open-pit mining where the ore out- crops or is near the surface. The mines are located in a semidesert where the supply of water is dependent on the spring run-off from melting snow. To eliminate fluctuations in the water supply, a dam to Impound the seasonal water run-off for use in the Kingir concentrator during the long, dry summer has been constructed on the Karakingir River. The planned capacity of the dam is 125 million cubic meters. 211/ C. Beneficiation. Most of the copper ores in the USSR must be beneficiated before they can be smelted. At the time when most of the concentrating plants were built, selective flotation was well advanced in the US, and much of the technical aid needed by the USSR to establish and operate such plants was furnished by the US. Little information has been released by the USSR in the last 20 years regarding the beneficiation of copper ores. Considerable data have been gleaned, however, from reports describing operations on the ores from Region VIII during 1935. For example, the copper content of the ores from this region ranged from 1.73 to 4.07 per- cent, with an average of 2.57 percent. The copper content of the con- centrates averaged 12.0 percent, but only 80.1 percent recovery in the concentrates was achieved. These data indicate that the process of selective flotation had not been mastered. With a relatively high- grade ore the concentrate was low-grade, and the recovery of copper in the concentrator ranged from poor to fair. The Plan for 1941, however, - 12 - S -E -C -R -E -T Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 S-E-C-R-E-T indicated some improvement, and a higher recovery in the concen- trators was expected from a lower grade of ore. 55/ It is also noteworthy that the average grade of ore in Region VIII had dropped from 2.57 percent copper in 1935 to 1.95 percent under the Plan for 1941. Inasmuch as substantially greater recoveries are achieved in the US from similar grades of ore, it is possible that recoveries have increased measurably in the USSR since that time. D. Smelters.* The USSR has at least 12 smelters for smelting ores and concentrates, and 1 utilizing copper scrap as the primary charge. The total smelting capacity is believed to range between 477,000 and 481,000 tons, about 30 percent of which is represented by the plant at Balkhash. Other smelters are situated at Revda (estimated ca- pacity, 50,000 tons) and Krasnoural'sk (estimated capacity, 40,000 tons) in Region VIII, and the scrap smelter (estimated capacity, 55,000 to 60,000 tons) is located at Moscow. These smelters consti- tute about 30 percent of the total estimated capacity. Of the re- maining capacity, about one-half is located in Region VIII. As early as 1941 a copper-smelting plant with a capacity of about 150,000 tons had been planned for Almalyk in Uzbek SSR, but little progress was made because the ores are badly oxidized and difficult to process. Methods of enrichment used elsewhere in the USSR were not adaptable to these oxidized ores, and a new technique had to be developed before pro- duction of copper could be achieved. Inasmuch as the work of preparing deposits for mining has been resumed at Almalyk, it is probable that a suitable technique has been developed. US mining journals have contained enough information on the treatment of oxidized ores to give the USSR all the technical information needed. E. Electrolytic Refineries.** In 1941 there were only three refineries in the USSR for pro- ducing electrolytic copper, located at Pyshma, Kyshtym, and Moscow. The refinery at Moscow utilizes scrap as raw material. Since 1941, * For further details on copper smelters in the USSR, see Table 7, Appendix A, p. 33, below. For the location of these smelters, see the map, Figure 3, inside back cover. ** For further details on electrolytic refineries in the USSR, see Table 8, Appendix A, p.35 , below. For the location of these re- fineries, .see the map, Figure 3, inside back cover. -13 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : D1A-RDP79R01141A000900170002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : 31A-RDP79R01141A000900170002-1 S-E-C-R-E-T four additional electrolytic refineries have been placed in op- eration, and the current refining capacity in the USSR is estimated to range between 430,000 and 470,000 tons, of which the plant at Balkhash in Region Xa accounts for a little more than 35 percent. Originally, the plant at Balkhash fire-refined copper, but since about 1952 the electrolytic process has been installed, making it one of the largest electrolytic copper refineries in the country and an important factor in the development of the resources of copper in Region Xa. Provisions are reported to have been made to install a second section in the electrolytic plant, increasing the annual capacity of the plant to about 175,000 tons. IV. Trade. A. East-West. The USSR has been a net importer of copper for many years. Just before World War II, imports of copper by the USSR are be- lieved to have been nearly equal to the Soviet domestic production. Imports of copper by the USSR from the US alone in 1940 amounted to more than 50,000 tons. 5,Y From m1d-1941 through mid-1945 the USSR imported about 400,000 tons of electrolytic copper, tubes, sheets, copper-base alloys, and copper wire and cable from the US under Lend-Lease agreements. 57/ Before 1939 and after 1945 the USSR obtained only minor amounts of copper from the US. Information on Soviet imports of copper from the rest of the world during World War II is not available. In 1948, as a result of a decision of the National Security Council, the US instituted controls over exports of strategic ma- terials to the Soviet Bloc. 513./ The US also urged other countries to follow suit, and in the latter half of 1949 a Consultative Group (CG) was formed, with representation from the US and several Western European countries. In 1950 the CG established COCOM in Paris as the working group of the CG.* In April 1951, copper in the form of ores, concentrates, scrap and old metal, and in primary forma was placed under interna- tional control for the first time. LI Semifinished forms such as S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 50X1 Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 -E-C -8 -E-T plates, sheets, and bare wire were placed under control in October 1951. All such forms of copper remained embargoed to the Sino-Soviet Bloc until mid-August 1954, at which time bare copper wire, 6 mm or leSs in diameter, was removed from the list of items embargoed (IL-I)* to the Soviet Bloc and placed under surveillance (n-m) The controls on the other forms of copper remained unchanged through the end of 1955, and all forms of copper remained embargoed to Communist China. The USSR imported only very small quantities of copper from the Free World in the years immediately following World War II, but such quantities increased very rapidly after 1950. During the period from 1951 to 1954, when all exports of copper to the USSR from the major producers of the Free World were embargoed, a lively illegal trade in copper developed. After mid-August 1954, most of the trade in copper con- sisted of legal shipments of copper wire. Because these shipments are reported in the official trade statistics of the exporting countries, the estimate for 1955, which is based on these data, is believed to be much more accurate than estimates for earlier years. Estimated imports of copper by the USSR, 1946-55, are shown in Table 3.** With the removal of copper wire from IL-I in 1954, imports of wire by the USSR increased significantly, although total Soviet imports of copper declined slightly. The relaxation of the em- bargo on copper wire enabled the USSR to enter the world market and purchase wire at competitive prices. Thus, copper wire of 6 mm or less in diameter constituted more than 90 percent of all the copper imported by the USSR in 1955 except for covered wire and cable. Slightly more than one-half of this quantity was obtained from the UK, with most of the balance coming from other members of COCOM. * Items which are embargoed to the Soviet Bloc are on International List I (IL-I); those subject to quantitative control, on International List II (IL-II); and those subject to surveillance, on International List III (IL-III). 62/ ** Table 3 follows on p. 17./ -15- S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 50X1 50X1 ' 50X1 50X1 Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 S-E-C-R-E-T B. Intra-Bloc. The trade in copper between the USSR and the Free World is difficult to gauge, but the trade between the USSR and the Satel- lites is less elusive. The available evidence indicates that Soviet imports of copper from the Satellites are about equal to Soviet exports of copper to the Satellites. 1 Before 1952, all of the copper produced in Bulgaria was shipped to the USSR for refining. Since 1952, when a refinery with 1 a capacity of 5,000 tons was installed at Eliseyna in Bulgaria, only the copper produced in excess of the refining capacity has been shipped to the USSR. 64/ Estimates of Soviet imports of copper from Bulgaria during 1950-55 are as follows: Year Amount (Thousand Metric Tons) 1950 2.4 1951 3.0 1952 0 1953 1.8 1954 3.0 1955 5.5 In return the USSR exports refined metal to Bulgaria, probably in amounts equivalent to imports of ore and concentrates. Somewhat similar is the arrangement between the USSR and East Germany. In this case the USSR exports unwrought copper, per- haps as much as 10,000 tons annually, to East Germany, which fabri- cates this copper and returns the products to the USSR. Relatively small amounts of refined copper and copper alloys, probably not exceeding 5,000 tons in any recent year, are shipped to Rumania and to Communist China. Whereas most of the shipments to Rumania are believed to be exported in return for im- ports of copper ore and perhaps for concentrates as well, those to Communist China may actually constitute exports in the true sense of the word. -16- S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 S-E-C-R-E-T Table 3 Estimated Imports of Copper by the USSR 1946-55 Thousand Metric Tons Year Amount Year Amount 1946 0.3 21 1951 21.0 fi 1947 0.1 b/ 1952 18.0 1/ 1948 4.7 s/ 1953 61.o 1949 14.2 di 1954 73.0 1950 6.o -A/ 1955 49.2 a. ?5./ c. Including about 4,000 tons of copper and copper wire 62/ and about 700 tons of covered wire and cable. 0../ d. Including about 9,000 tons of copper and copper wire 69/ and about 5,200 tons of covered wire and cable. 70 e. 71 V. Demand. The USSR has released no substantive information on the use of copper for more than 20 years. Soviet statements have consisted only of general allusions to the importance of the metal in its pro- gram of expanding.heavy industry. In order to estimate the demand for copper in the USSR, therefore, an indirect methodology must be employed. In the US, a direct relationship exists between produc- tion of crude steel* and consumption of unwrought copper (copper * For methodology and for data on production of crude steel and consumption of refined copper in the US, 1930-55, see Table 9, Appen- dix B, p.39, below. - 17 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 50X1 Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 S-E-C-R-E-T metal produced from ores, concentrates, and scrap). The relation- ship is believed to be causal: the specific properties of copper make it complementary to steel rather than competitive, as is the case with aluminum, titanium, and magnesium. Accurate data on production of crude steel in the USSR are available for the years 1929-55 except for 2 or 3 years during World War II, when there are uncertainties as to the dates that pro- duction ceased at some of the plants overrun by the invading Ger- mans. Firm data also are available on the production, importation, and exportation of copper in the years 1929-33. Although the changes in the level of the stocks of copper are unknown, it is believed that the annual production plus imports minus exports (which were zero), averaged for the years 1929-33, will cancel any changes in stocks that may have occurred and will, therefore, in- dicate within reasonable limits the level of the demand for copper. The demand for copper in the years 1934-55 was estimated on the basis of the increase in production of steel, using the average annual production of steel in 1929-33 as a base. The estimated demand for copper in the USSR, 1929-55, is shown in Table 4.* The demand for copper can be estimated within reasonable limits on the basis of its relationship to production of steel for past years, and the same technique probably can be used to forecast its future growth. The Sixth Five Year Plan calls for an increase of 50 per- cent in production of steel. Accordingly/the demand for copper also is expected to increase 50 percent over that in 1955. On this basis the demand for copper in 1960 can be estimated at about 671,000 tons. Available data are too fragmentary to apportion this total among the chief consumers, except for electrical machinery, which is expected to consume about 390,000 tons of copper in 1960. 72/ An exhaustive analysis has been made of the electrical machinery industry of the USSR. 73/ This analysis concluded that about 240,000 tons of refined copper were consumed in the USSR during 1955 in the production of motors, generators, power and distribution transformers, switchgear equipment, electric wire and cable, and communications equipment. Information on the quantities of copper for uses other than electrical machinery in the USSR is very sparse and fragmentary, but intelligence studies based on interpretations of such data make possible * Table 4 follows on p. 19. -18- S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/08/15: CIA-RDP79R01141A000900170002-1 S-E-C-R-E-T Table le. Estimated Demand for Copper in the USSR 1929-55 Year Production of Steel a/ (Million Metric Tons) Index of Production i1929-33 Average = Estimated Demand for Copper b/ 100) (Thousand Metric Tons) Year Production of Steel ai (Million Metric Tons Index of Production (1929-33 Average = Estimated Demand for Copper bi 100) (Thousand Metric Tons) 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 1941 1942 4.9 5.8 5.6 5.9 6.9 9.7 12.6 16.4 17.7 18.1 17.6 18.3 16.7 6.5 loo 167 217 283 305 312 303 316 288 112 60.9 2/ 101.7 132.2 172.3 185.7 190.0 184.5 192.4 237:0 2/ 92.2 sti 1943 1944 1945 1946 1947 1948 1949 1950 1951 1952 1953 1954 1955 7.5 10.7 12.3 13.3 14.5 18.6 23.3 27.3 31.4 34.5 38.1 41.4 45.3 129 184 212 229 250 321 402 471 541 595 657 714 781 106.2 di 151.5 2/ 174.5 di 139.5 152.3 195.5 244.8 286.8 329.5 362.4 376.1 2/ 438.7 2/ 447.1 2/ a. 1929,i; 1930-140 and 1945-55, /2/; 1941-44, J. b. The coefficient of correlation between the demand fqr copper and the production of steel in the USSR was assumed to be 1. Although this degree of corre- lation is known to be too high statistically, it is assumed to be reasonable in the case of the USSR because the emphasis on heavy industry reflects a different pattern of consumption and creates a higher correlation between the demand for copper and the production of steel than would occur in countries where production is more evenly balanced between light and heavy industry. For methodology, see Appendix B. c. It has been assumed that for the years 1929-33 the-supply of copper and the demand for copper were in balance. The average annual, supply of copper during this period has been estimated at 60,900 tons. (See Table 5, p.22, below). d. Increased by a factor of 1.35 to reflect the greater consumption of copper per ton of steel resulting from production of ammunition during World War II. e. Reduced by a factor of 0.06 to adjust for the substitution of copper by aluminum, allowing a 2-year technological lag behind the US. - 19 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/08/15: CIA-RDP79R01141A000900170002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : 3IA-RDP79R01141A000900170002-1 S-E-C-R-E-T some estimates of other specific uses. For example, the shipbuilding industry of the USSR is estimated to have consumed about 20,000 tons of copper for all types of vessels, naval and commercial, in 1955. Similar estimates have been made of consumption of copper (excluding wire and cable) in the manufacture of automobiles; tractors; locomo- tives and rolling stock; agricultural machinery, machine tools, and metal-forming machinery; and aircraft. The difference between the sum of these uses and the estimated total consumption of copper must be consigned to other manufacturing uses that cannot be identified sep- arately and to direct military consumption, including ammunition. The estimates of consumption of copper in the USSR for these various uses in 1955 are as follows: Amount Use (Thousand Metric Tons) Electrical machinery 240 Automobiles 20 Ships 20 Tractors 5 Locomotives and rolling stock 4 Agricultural machinery, machine tools, and metal-forming machinery 4 Aircraft Direct military and miscellaneous manufacturing equipment 153 Total 447 The methodology employed in estimating consumption of copper in the USSR has taken into consideration an intensive programfor pro- duction of ammunition during World War II. The methodology also provides for a fairly substantial program for production of ammunition in peacetime comparable to that of the US and allows for considerable substitution of aluminum for copper. It is known that the USSR has significant substitution in the electric wire and cable industry, in the automotive industry, and to some extent in the transformer indus- try. 11/ These data suggest that the USSR probably has carried the substitution of aluminum for copper about as far as has the US. - 20 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 S-E-C-R-E-T VI. Supply and Demand Balance. The available supply of copper in the USSR, shown in Figure 1,* is made up essentially of domestic production and importation from the Free World (net exports being negligible). The supply and demand balance of copper in the USSR for the years 1929-55 is shown in Table 5.** The annual differences between supply and demand are shown as stock changes. The data in this table indicate that during the 1930's the demand for copper increased faster than domestic production. Only part of the deficit was met by imports and the remainder appar- ently was met by withdrawals from stocks. A critical shortage of foreign exchange probably explains the failure to import larger quan- tities. Later in the 1930's and throughout World War II the USSR imported sizable quantities of copper. These imports, added to domestic pro- duction, gave the USSR a supply of copper in excess of demand each year during 1937-47. The only exception was the year 1941, when the nonaggression pact between the USSR and Germany had its maximum effect on the world copper market, which was controlled mainly by the Allies. During 1948-55, withdrawals from stocks of copper are believed to have been resumed, except in 1953 and 1954, when supply and demand were very nearly in balance. Although positive information that stocks of copper were reduced during this period is not available, there is ample evidence that a shortage of copper has existed in the USSR since 1950. Three factors are believed to account for this shortage, as follows: the failure of the copper industry to meet the goal for production of the Fifth Five Year Plan, the high price of copper on the world market, and the restrictions on exports of copper im- posed by.members of COCOM. In any event, it is highly unlikely that stocks of copper in the USSR were .augmented. during this period. A comparison of the planned production of copper in the USSR of 604,000 tons in 1960 with the estimated demand for copper of nearly 671,000 tons indicates that there will be a deficit of copper of approximately 67,000 tons. This deficit is about equal to that of 1955, which was met by imports from the Free World and by with- drawals from the stockpile. Inasmuch as the Satellites are also * Following p. 22. ** Table 5 follows on p. 22. -21 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 S-E-C-R-E-T Table 5 Supply and Demand Balance of Copper in the USSR 1929-55 Thousand Metric Tons Year Production 2/ Imports 2/ Total Supply 2/ Estimated Demand 2/ Indicated Changes in Stocks 2/ Minimum Stocks on Hand if 1929 35.5 25.1 60.6 1930 44.5 20.6 65.1 193144.3 25.1 00.92/ 0 68.9W 1930 4m 1.2m pr:10, 1933 44.3 7.9 52.2 1934 53.3 11.5 64.8 101.7 -36.9 52.0 1935 76.0 29.6 105.6 132.2 -26.6 25.4 1936 100.7 46.2 146.9 172.3 -25.4 0 1937 97.6 103.1 200.7 185.7 15.0 15.0 1938 103.2 125.4 228.6 190.0 38.6 53.6 1939 142.5 72.8 215.3 184.5 30.8 84.4 1940 161.0 84.0 245.0 192.4 52.6 137.0 1941 186.8 11.2 198.0 237.0 -39.0 98.0 1942 164.0 94.7 258.7 92.2 166.5 264.5 1943 141.2 135.0 276.2 106.2 170.0 434.5 194, 147.4 233.4 380.8 151.3 229.3 663.8 1945 134.7 63.0 157.7 174.3 23.2 687.0 1946 142.8 0.3 143.1 139.5 3.6 690.6 1947 155.7 0.1 155.8 152.5 3.5 694.1 1948 186.8 4.7 191.5 195.5 -4.0 690.1 1949 224.2 14.2 238.4 244.8 -6.4 683.7 1950 246.6 6.o 252.6 286.8 -34.2 649.5 1951 281.1 21.0 302.1 329.5 -27.4 622.1 1952 323.3 18.0 341.3 362.4 -21.1 601.0 1953 320.8 61.0 381.8 376.1 5.7 606.7 1954 336.8 73.0 409.8 408.7 1.1 607.8 1955 377.3 49.2 426.5 447.1 -20.6 587.2 a. 1929-35,g; 1936, DV; 1937-55,. from Table 1,1. 8, above. b. 1929-35, 1936, ?li; 1937-45, LAW; 1946-55, from Table 3,p. 17, above. c. Sum of production and imports. d. From Table 4, p. 19, above. e. Difference between supply and demand. f. Accumulated stock changes. g. Average. h. At least this quantity must have been available because stocks at the close of 1936 could not have been lees than zero. - 22 - S -E-C -R -E -T Declassified in Part - Sanitized Copy Approved for Release 2013/08/15: CIA-RDP79R01141A000900170002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/08/15: CIA-RDP79R01141A000900170002-1 USSR PRODUCTION AND IMPORTS OF COPPER 1913, 1937-55, and 1960 PLAN Thousand Metric Tons 700 600 500 400 300 700 100 Figure 1 , ,-/ , : ; / , , , TOTAL AVAILABLE NEW SUPPLY , IMPORTS TOTAL SOVIET PRODUCTION --,- -- ' 7' , .....----7. ?--- ------- r----.------- 1 I ? ---- 1 1 i 1 -- ..---? ---- KAZAKHSTAN, 1 1 1 ---- SSR 1 1 1 1 1 1 i 1913 26111 10-57 Declassified in Part - Sanitized Copy Approved for Release 2013/08/15: CIA-RDP79R01141A000900170002-1 1937 1940 1945 1950 0 Plan 50X1 50X1 Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 S-E-C-R-E-T deficient in resources of copper, and in view of the growing domestic demands, it appears that the USSR will continue to rely on the Free World for supplies of copper throughout the Sixth Five Year Plan. Probably the only feasible alternative is for the USSR to engage in an even more rigorous and stringent program to conserve copper through the intensive substitution of aluminum and plastics. Dependence on imports of copper is not believed to have resulted from any technological deficiency on the part of the USSR. Abundant evidence is available that indicates that the USSR has an adequate working knowledge of all phases of copper operations, from explor- atory drilling to electrolytic refining. The USSR also is capable of producing equipment for mining, milling, and handling materials which compares favorably in both size and quality with that of the US. There are two main reasons why the copper industry has lagged in the industrial development of the USSR. One is the remoteness of the areas in which most of the Soviet resources of copper are located, and the other is the general Soviet policy of emphasizing immediate gains in production at the expense of long-range developments. As previously indicated, more than one-half of the resources of copper in the USSR are located in the eastern part of Region Xa. In 1955, nearly one-half of the Soviet production of refined copper was produced in Region Xa. On the other hand, most of the copper produced is consumed in other parts of the country. The principal consumer of copper in the USSR is the electric wire and cable industry. None of the known plants manufacturing electric wire and cable is located in Region Xa, and only one -- the Saler Electric Cable Plant at Tashkent -- is located in Region Xb (Central Asia). In 1955 the plant at Tashkent accounted for only 6 percent of the national production of electric wire and cable. On the other hand, production of electric wire and cable in regions west of the Urals* accounted for about 68 percent of the total production of elec- tric wire and cable, whereas these regions accounted for only about 21 percent of the national production of refined copper. * Economic Regions Ia (Northwest), Ib (North), ha (Baltic), lib (Belorussia), III (South), IV (Southeast), V (Transcaucasus), and VII (Central). -23- S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 S -E -C -R -E Of perhaps even greater significance, however, is the logistic burden resulting from the remote location of Soviet resources of copper with respect to the sources of supply of equipment, materials, and labor. As the trend toward exploiting leaner ores in open-pit mines in Region Xa and probably also in Uzbek SSR continues, the need for more equipment and materials will intensify. The mining and efficient processing of the lean ore of the type most common in these regions require large quantities of heavy, power-driven, earthmoving equipment; large milling and concentrating plants; plentiful supplies of fuel, power, and water; sizable inventories of spare parts; and an abundance of skilled labor. The necessity of hauling machinery, equipment, and other essential supplies over long distances will con- tinue to place a heavy burden on the transportation system. Although the USSR has proved capable of manufacturing the required machinery and equipment and probably has available adequate supplies of power, water, labor, and food, it is by no means certain that the present facilities for transportation can bring all these factors together simultaneously in Region Xa and Uzbek SSR in sufficient quantity to expand production to the desired levels and meet other planned objec- tives as well. The national and the regional press have emphasized repeatedly that the USSR has not been devoting the necessary attention and funds to developmental work in various phases of the copper industry. For example, the lag in developing the ore base is claimed to have re- tarded the expansion of the copper industry. 4211/ The use by many plants of outmoded, unimproved machinery and equipment for enriching ore and for smelting and refining is said to have resulted in extremely high losses of metal. In mid-1956 it was announced that cumulative losses of copper throughout the nation amounted to 21 percent of the metal contained in the ore. ?2/ In comparison with the US, where losses probably average not more than 10 percent, the losses in the USSR must be considered excessive. Although one regional newspaper has pointed out that a good technological method for processing the complex ores found in Region Xa has not been developed, 1Y other criticism contends that satisfactory technological processes for ore concentration have been developed but that they have not been put into practice. IT/ In view of the fact that US technical journals on mining and metallurgy have published many articles on all aspects of copper technology, the failure of the USSR to reduce metal losses and to install and utilize modern methods and equipment must be attributed to lack of investment in these phases of the industry rather than to - 2 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 S-E-C-R-E-T lack of knowledge or ineptitude. Such investment presumably was not made because the results would not have been as immediate as invest- ment elsewhere, such as in equipment for excavating, hauling, and handling materials. VII. Stockpile. The USSR is known to have been engaged in an extensive stockpiling r ram for man ears but its exact magnitude is unknown. it is certain that the USSR emerged from the war wit a siza e s oc die of copper metal. On the basis of available data on production, importation, exportation, and consumption, this reserve is calculated to have amounted to approx- imately 700,000 tons in 1946.* Since the war the Soviet demands for copper have expanded more rapidly than has the domestic production. To meet the increased needs for copper the USSR has increased the domestic production, but the rate of increase has not been great enough to keep abreast of the de- mand. As a result, additional supplies were imported from the Free World to the extent possible, with the remaining deficit being met by withdrawals from the stockpile. Although estimates of withdrawals from stockpiles in any 1 year are necessarily tenuous, there is little doubt that significant withdrawals from stocks have been made during the past 6 years. Such withdrawals are estimated to have reduced the stockpile of copper by a little more than 100,000 tons since World War II. The evolution of the stockpile of copper in the USSR during 1937-55 is shown in Figure 2.** VIII. Capabilities, Vulnerabilities, and Intentions. Because copper is essential in many phases of Soviet industry, inadequate supplies of copper have a retarding effect on the over-all development and expansion of industry generally. Although the USSR has evaded stating directly whether the goal of the Fourth Year Plan for production of copper was fulfilled, there is no doubt that the goal of the Fifth Five Year Plan for production of copper was not. Mean- while, the demands for copper in the USSR have been rising steadily. Consequently, the USSR had to supplement production of copper and * See Table 5, p. 22, above. ** Following p. 26. -25- S -E -C -R -E -T Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 S-E-C-R-E-T withdraw significant quantities from the stockpile of copper. The only alternative was to retard the over-all growth of industry generally by allocating smaller supplies of copper to consumers. Inasmuch as there are no countries in the Sino-Soviet Bloc which pro- duce a surplus of copper, the USSR imported supplies from the Free World. In view of the failure to mine and process sufficient copper to meet the goals of the Fifth Five Year Plan, the failure to make adequate investment in the long-range development of the industry, ' and the tremendous logistics problem facing the industry, it is anticipated that the USSR will have to rely on the Free World for a significant portion of its new supplies of copper, at least through 1960. Such imports would, of course, be cut off with the outbreak of hostilities. In this event, unless the USSR had been able to accumulate, through more sizable imports, a much larger stockpile than it now has, the country would be in a vulnerable position. Under the Sixth Five Year Plan the USSR proposes to increase production of copper by 60 percent) or by about 225,000 tons. This plan may be compared with the achievements in the course of the Fifth Five Year Plan, when production increased by 53 percent (the plan called for 90 percent), or about 131,000 tons. The amount of capital invested in the entire nonferrous metallurgical industry under the Sixth Five Year Plan is to be 2.3 times greater than was invested under the Fifth. fli,V Because of the importance of copper to the Soviet economy, it is assumed that a considerable share of this increase will accrue to the copper industry. If the Sixth Five Year Plan for production of copper is achieved, production in 1960 will be about 6o4,000 tons. Under the Same plan the USSR intends to increase production of crude steel by about 50 per- cent, which will bring production in 1960 to about 68 million tons. On the basis of the copper-to-steel ratio that is believed to have prevailed during the latter part of the Fifth Five Year Plan -- that is, nearly 1 ton of copper consumed for each 100 tons of crude steel con- sumed -- the demand for copper in 1960 may exceed the domestic pro- duction by about 67,000 tons if all other conditions remain approx- imately equal. Even if further steps are taken to substitute other materials for copper and allocations to consumers are controlled more rigidly than was the case under the Fifth Five Year Plan, continued dependence on imported supplies and withdrawals from stocks may be anticipated. -26- S-E-C -R -E-T Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/08/15: CIA-RDP79R01141A000900170002-1 USSR Thousand Metric Tons 860 700 600 5130 400 EVOLUTION OF THE COPPER STOCKPILE, 1937-55 300 - AVAILABLE NEW SUPPLY 200 100 0 QUANTITY OF COPPER ----6533 IN STOCKPILE 264.3 434.5 637.0 699.1 693.9 682.8 818.4 620.5 r599 8 605.6 606.4 Figure 2 585.9 r 1 ESTIMATED DEMAND _53.3 14.7 83.6 136.6 97.6 1937 26110 10.57 1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 1949 1950 1951 1952 Declassified in Part - Sanitized Copy Approved for Release 2013/08/15: CIA-RDP79R01141A000900170002-1 1953 1954 1955 50X1 50X1 Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 S-E-C-R-E-T Although no direct evidence can be cited to support this con- tention, indirect evidence exists in the magnitude of the imports of copper from the Free World. During 1953-55, imports ranged from a low of 49,000 tons to a high of 73,000 tons.* In 1956, imports amounted to nearly 60,000 tons, suggesting that no significant pro- gress has been made toward overcoming the deficit between domestic production and demand. It appears, therefore, that the USSR does not expect to become self-sufficient in copper by the end of the Sixth Five Year Plan in 1960. Although investment in the copper industry probably is much higner than in any previous plan, the size of the investment required to expand the domestic production to the point of self-sufficiency may have been considered too great. Continued reliance on supplies of copper from the Free World may, therefore, have been judged to be the more prudent course. * See Table 3, p. 17, above. - 27 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : IA-RDP79R01141A000900170002-1 S-E-C-R-E-T APPENDIX A DEPOSITS OF COPPER AND PROCESSING FACILITTES IN THE USSR Available information on the major deposits of copper and pro- cessing facilities in the USSR is shown in the tables which follow. Major deposits of copper in the USSR in 1955 are shown in Table 6.* Copper smelters in the USSR in 1955 are shown in Table 7.** Electrolytic copper refineries in the USSR in 1955 are shown in Table 8.xxx * Table .6 follows on p. 30. ** Table 7 follows on p. 33. xxx Table 8 follows on p. 35. - 29 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/08/15: CIA-RDP79R01141A000900170002-1 S-E-C-R-E-T Table 6 Major Deposits of Copper in the USSR 1955 Location Almtlyk, fashhent Oblast. Uzbek SSP laynek, Eashkirelays 5200, Blyava. Chloeloviday. Oblast, RCM Boehchebta Pewloyda-smya Chlmt, Kazakh SSP Deg-Veit, Sverdlovskeya Oblast. 62000 Table 6 follow ch 0.32. Pc mai legion el Description of Deposits Kb A "re" PorPh.V17 deposit with a thickness of more than DSO ces. tete and a horizontal area of nPlermfmately 0.67 squart 'diameters (1m). The average copper cmtent of the ore le about 0.9 percent.al Be- came of Om midi/ nature of the ores. exploitation was delayed until suitable treating Process had been de- veloped. The s true tare of the deposit As ?Dailar to that at Kounrad. RN/ Sulfurous Ores containing both copper ancl sine occur in remold" schist. VII/ Ore bodies comin of lentils of copper PYrite ranging from 0.5 to 7 Percent eopper. The emend, grade Is less than 3 percent. .g, The Largest len- til being marked in 1950 vas 503 octets long along the strike. Its enrage thick- ness vas 60 to 65 eaters. 51/ Sn A large Porn)," deposit con- taining copper, gold, and mlybdenho. LOW The average clipper content of the ore is Mat 0.8 perceit. "fining and Beneficiating lkthels Estimated Production, 1955 V Disposition of (Patric Tam) Ores and Concentrates Preparations for Open-Pit raining were started in 1956. 2/ A concentrating Plant is. under constnction to 1956. $1/ Both open-pit and under- grOund co thois are used. The ore is beneficiated by selective flotation. For moo- years the deposit was worked by underground methods ? toes-out mining wed atarted in 1952. On 1954 the underground oper- ations were being cur- tailed. 1.10f Open-pit mining and con- eatnating methods will be similar to Mose at Ralldiedh. ASV triTI A narrow deposit approximately Rising is done undergranni? She 104S. La the central part with three rain levels at of the deposit, which is about 130 cetera, 190 stets, 120 meters vide, the deposit in and 250 meters. known to extend to a depth of 130 meters. The rain ore cin- emas are pyrite, spbaderite, chalcopyrite, eimenopyrite, and crmelllta. The average copper cadent of the ore is shout It percent. 1CS - 30 - S-E-C-R-E-T This deposit was not being A copper swelter wee under wOrted in 1955. construction in 1956. Production is enticated at 1.5 odIumn. to 2 million tons of ore containing about 2 Per rent copper. or 30,000 to 40,003 tons of copper. Assming the molter at Yednogorsk wee operating at or near capacity in 1955, the production of ore at Blyava was about 850,C00 tons of ore containing 20.CCO to 25..,000 Envelopment of thin deposit naadia3eed a us lac of transportation. The com- Platten of the railroad line between Akeolinsk end Pavlociar provides access to the area. Production is to begin during the course of the Sixth Five Year Plan (1956-60). Daily production of are in 1955 yes 8,000 tees. 3.11 On en annual basis, this rata would mount to Dearly 3 Mlllm tons of ore or ito,000 to 45,000 tone of awe Ores and concentrates plo- dded in excess of the - capacity of this smelter are shinned to other plants in ReglOn VIII. The ore is shipped to the plant at Padnogorst for recessing and smelt- ing-10V Ores win be treated at Boshchekul, and the con- centrates probably will be shipped to Pailthaeh for smiting and refining. The ore is shipped to the nearby concentrator at &Tea' Copper concen- trates ere smelted at Reeds, and pyrite concen- trates are shipped to sul- furic acid plants. Declassified in Part - Sanitized Copy Approved for Release 2913/08/15: CIA-RDP79R01141A000900170002-1 Estimated Reserve. (*tide Tone) This dePait me been know for ? long time. In 1934, reserves were estimated at 2.213,000 tans of copper. 4/ to 1931,, reserves were esti- mated at 352,700 tons of copper In 16.5 million tans of ore. Ef It Is believed that adastioal reserves baye been developed since then. /n 1934 reserves were esti- sited at about 65o,000 toos of copper in about r oil- lion tons of ore. le_gt In 1935 the reserves were estimated at 2546,000 -tom of copper. In 1955 ? geological dele- gation from the Free *mid reported that the reserves of ore were claire& to be about Bo million tans. 50X Declassified in Part - Sanitized Copy Approved for Release 2013/08/15: CIA-RDP79R01141A000900170002-1 S-E-C-R-E-T Table 6 Major Deposits of Copper in the USSR 1955 (Continued) tacatIon Dthethmen. gangenith- skan Oblast, bath SSP Adtbren. Arszranskay? SSP learatash. 19.el11ebte00s3a Celast. Wit Iiirorgrad. gardiarebra ablaut. WWI gband. Iteremeitmlon Oblast. Kazakh MP 00comie beim .SI Description of blethith IS Ills drab it ecesista of tor perr-iegnmand ardstom epread ber ? large ans. 31111 emery= ore Oodles Oecerring in mattered. Irregothr lenn? PY 1935. 35 distinct one tmum tadlety (them- natl. il_LV ma .eoPPer-beblog fanatieas are Mat, dipping, cagierstinlY shelters. be ore sverape shoat 1.6 Penne eopper? 333/ This parthin deimn? a.? boom as the Peak dmalt. S. tisinminations of chalice. mita, pyrite, sad maybe- ^ in altered tettlary inn- the rtel, be mange copper content le 0.6 saremit? lb albs be at am ?lekat on of 2,203 meters. aj,/ This debit conflate of 7 on bollee Concentrated in ? ar- mee schist north-Gauen belt 12 la thog. the enrage grade or the or. is about 2.3 percent COPPth. with MO thoo 1.111?0 in met of the beadles. la/. VIII This ambit ass Mead we ebl> as 11313. Copper Otters a irresalar biles in schist. 50?0 Of the ore bailee in the Welke gra* ben ? high eh. content. Is Ills is a large. len-gnie ParDbirl dfloett lorsiel about .0 silts north of lebPbaah. The &melt in batthathapol =mists of an Coldieed min sone Man fl asters thick. fanned by ? leached um 20 HI 25 meters thick, sod [tally ? mint zoos abut 120 meters thick, the enrage caPPer eon- tact at its desalt is Ithat It percent. 7/ Mining sal ltetficiating Petthods In 1951 there sere 20 umbr- Vaal Mon and / open-pit Met an the ans. Mf In 1935, another was-pit sib table:mkt ) starbi, thick as to beam the largest In tie arm. laf /Were:rani methods Ian been Med exelathaly. The Moth yin Tear Plan calls ter en. naive tis? of opm-eit m?thcds.MW Thor mien, all intitme- acted teiergrani, I Opention. Ore is treated by mlatin !beetle.. threlegreard ebbed, are ed with ithlectin flotation Mimi toed to Pada. colger sad *lac emeentraters. Ma Mee is ? Inge ogee- pit operatic?, yell smehlemis. The On is Debate:I protectios, 1953 Ness. induction Is atimeted at 3.003 to 10,000 tons or on per tlay, la) ar 30.003 to 60.000 tom of comer my ma capacity of tile triter is 3.033 tam of an per day. 1121 onsnssish basis, this 'weld mount to 1,095,003 tons Of on can- tasting moat 6,501 tom or capper. The myal dwelty of the . breasts le esti- mated to bare been incremed to 23,003 tams in 1540. 133/ It the mite tee bra operating at capacity sines that time co Mbentrate? from Itan-bash wed if no ed. dILIOnal discaverle? bare ben rade. deposits at rare. bath my be appraelaing ex- haustless. Current ban/ prod/tithe a. tattm?tel at 10.030 to 25.033 tare. Tho anneal enmity Of it. swelter at glrorgred, Mitch Procne. mainly local aym. Is Initthated st moat 53,60) tomtit Motoemam of Lb? cencentrator lam 20 to Se large ball mills It is es- timated that this eooitt treated by floe grinding bt coahl means 93,003 to flotation. 351003 tab of ere Prebetion Is estLestel. therefare. ?t 120.003 to . 11.0.030 tom Of Cense per - - S-E-C-R-E-T Mapfeitico of One sad Comeatrate? btheated Penne. (Mtric Tem) The high-grab be is in 1937. neer"' an shipped to ha the continua- ported to be 3.7 ?11110, tons ter at Iraraskpy. The Of capper. bre name geode cm is 'blared to ? dIsCenries probably bee bee concentrator at /Lingle or been sage. to sauhmh. AU or it. tamentrates an believed CO be melted and refined at blkbah. Ore Is delivered to ? con- centrator at Ithiabria an aerial traths. Tto cover e?166n1rata5 protecaly ant sent to Manna for melting. the onlaor 65'6661-ma..an malted at immesh, ail hot it. aim ecocentrata probably an ?hipped Pa cheirtmear'' Ore is concentrated ard the soarer Ore is netted at dirmonad? tInt memo- Mates probably are shamed to amammtna, sal the pyrites prebthlY art whipped to enlierie ecid plants. Ore Is Oatmeal to talkbah for both ementrating md. refining. 133/ Declassified in Part - Sanitized Copy Approved for Release 2013/08/15: CIA-RDP79R01141A000900170002-1 In 1535, resents were esti- mated at 623,010 tom or maPara 133/ In 1931, teleran vere esti- mom at 351,003 tens of oyster. 0/ to 193k, anent, nee esti- mated at 571.603 tem of capper in 33.1. alnico to.,. of on la A? at 1 Taus 1936, reserva arm estimated at2,513,000 tons at mapper. la/ 50X1 Declassified in Part - Sanitized Copy Approved for Release 2013/08/15: CIA-RDP79R01141A000900170002-1 S-E-C -R-E-T Table 6 Major Deposits of Copper in the USSR 1955 (Continued) Location Krasnourel'sk, Sverdlov- skaya Oblast, RSFSA Shamlug, Armyanskaya SSA Zangezur, Armyanskaya SSA Economle, Region I!Description of Deposits Mining and Heuer iciating Methods Estimated Production, 1955 y (Metric Tons) VIII The principal ore bodies in this deposit occur in a. miner- alized schist zone, which can be considered a continuation of that in the Karabash dis- trict. The two most important lath" are in copper-bearing pyrite that occurs in the font of lenses. The copper content of the ore averages about 2.2 percent. Capper ore with an average metal content of about 3.7 percent occurs in irreg- ular masses in a rock for- mation. Formerly there were several mines operating in this district, but they have been abandoned because of the exhaustion of ore resources. 136/ Copper occurs in irregular veins in andesite, some of which are polymetallic. The copper ore, chiefly chalco- pyrite, averages 4 percent copper. VW/ She ore is mined by under- ground methods and is treated in a fine-grinding, selective flotation plant where a copper concentrate and a pyrite concentrate are produced. Underground mining methods are used. The first concen- trating plant in the dis- trict is to be built at this mine under the Sixth Five Year Plan. 131/ The ore is mined by under- ground methods and is con- centrated by fine grinding and flotation at the &manor plant. The capacity of the smelter at Krasnaural'sk is not less but may be twice as large. Production is, therefore, tohfanco::::::::11:1Y3e4a/r, probably at least 20,C00 tons Disposition of Estimated Reserves Ores and Concentrates (Metric Tens) The ores are concentrated In 1934, reserves were esti- and the copper concentrates mated at only 3130600 tons of are smelted at Krasnour- copper in 14.3 million tons al'sk. The pyrite coneen- of ore. 135/ trates are shipped to sul- furic acid plants. Production exceeds that of Ore probably is shipped to Although large ore bodies are 1950 by approximately 30 per- Zangezur for concentrating reported to have been dis- cent, 138 amounting to and then on to Alaverdi covered, 139/ reserves pro- about 80,000 tons of ore for smelting and refining. bably are small compared to Containing 3,000 tons of those Of ROgiOn Ka. copper. This is a small operation, probably not exceeding 1,000 tons of ore per day, or 14,500 tons of copper per year. Concentrates are shipped to In 1935, reserves were esti- the smelter at Alaverdi. mated at 163,000 tons of copper. 141/ b. The total production in 1955 was - 32 - S-E-C -R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/08/15: CIA-RDP79R01141A000900170002-1 50X1 50X1 Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 S-E-C-R-E-T Table 7 Copper Smelters in the USSR 1955 Location Alaveriti. Areaslova SA Palkhash. aremezeUnstays Oblast. aelh 93 Parma. '5- clubowe. Vostccroo- asataralays Chia, Rath 95R learabesh. Cbely.binlaya Tanaka. SanaaInael Cblast, Raab SA Rtrommed. Sad lova... Oblast. MISR ? or Table T folltra.co P. 34. tecoadc, reace fescriptiam_Of Plant Source at nor Material Disposition of Pa.:at V lids le the roll tear salting Copper caentrates non plant In Rent= V. Sera Varlet Par agerttr ars] Adana I a Rea testa operated this eater. Maltla to the 010 Pat were Ea is 1936, he ..lagithe ji capacity to 10,030 taper year. g_ty Ts this is s scetern alter with 3 re- Copper concentrates provided verberatory thinness sit 3 con- verters, the largest nonferrous in- stallation in the Cegg. Order the girth rive Mar Plan, (1556-60) a new reverberatory fealfide is to be .tnta. urell It is Pins" to antoniz? the control erel checking of all ihrnliteeh With lonssents en to result in an firms of 31.b percent in protests of blister capper by 1960. Lig Till This is ? nal alter train eon- Local conatrates centrates marie locally. Ins nee Of fairly large ranee, omission Of the swelter es be anticipated. Is Mao tan se the Irtysh pat. AY Onthentnite? eta local/ altar Ins built by en English a- 'trod each so] copper- party in the early 1920M. Da lead-Line ars salter vs renovated in Ins a was scheduled hie expasion trdth the Third Fin Tan Pa (1936-12). 1-1Y Vill Mils plant tad 3 blast fillerdethe 1 local concentrates reverberatory terrace, and t con- verter. In 1918. ).S by the lora emccatzster Constriction of this plant se started In 1913. riS 1939, tweet> ? at t000t 6,000 tea. Capacity no to reach 16,0W to 9+,0:0 ton. by 1950. IS VLLI AM* plant le etaiPPth With re- verberatory thirsts and cao- vertes, it least part of the ISO sed in the triter consisted of Issiel vial end peat. 12.19/ Bigh-grada Dthethalgan ars Iciest Concentrate. -33- S-E-C-R-E-T !litter copper is re- fined at the kcal electrolytic re- ter copper is fined et at the local electrolytic flitter copper cinTer " shipped to Pima ant ttye for refinlag by elettroly.i.. Ulster copper Is shipped to Balthath for refining. later capper La shipped to the elec- trelytte refinery at krettn. Blister nipper t shipped to raltheth for refining. Blister capper is shipped to Polls for refining by electroly- sis. Estimated 'twatlen entiaste6 Capacity, 1955 12), of Master Omer, 1955 Si (Metric Torn) (Metric Tat.) Caplotion of the carmen- 21.000 atm at RatIsharan a to have malted In a dealing of the capacity of this alter. Arrefors, 1555 capacity tat estated at Capacity at be 'Waded,e not only in Smile lost concentrates of 120,0W to 110.020 tan small/ but also to @sit diner con- centrates cede Ilse Dtherkezsa ars thich sep amount to 35,0W Us tho,cco Therefore, capacity Tian, is estimated at 165.0W tCa 5.00012.g h,CCO 15,cco 15,030 Probably rot sere than 10.030 to 20,0W 25.0:0 tons S,003 21,030 30.030 25,003 Declassified in Part - Sanitized Copy Approved for Release 2013/08/15: CIA-RDP79R01141A000900170002-1 50X1 Declassified in Part - Sanitized Copy Approved for Release 2013/08/15: CIA-RDP79R01141A000900170002-1 S-E-C -R-E-T Table 7 Copper Smelters in the USSR 1955 (Continued) Location Krasnoural'ek, Sverdlovskaya Oblast, RSFSR fiednogorsk, Chkelovskaya Oblast, RSYSR Morchegorsk. leumanskaya Oblast, R6PPR Moscow, Moskovskaya Oblast, RSFSR Noril'sk, TaYmYreklY Natsional'nry Okrug, NSF SB Heyde, Svendlovskaps Oblast, RSFSR Ecpmcdc. Region 8/ VIII VIII La VII Description of Plant Source of Raw Material This plant is believed to be equipped with reverberatory furnaces and con- verters. 122/ At this site is a concentrating plant with 2 sections, a smelter with 2 blast furnaces and 2 converters, a copper sulfide plant for smelting sulfurous copper ore, and a sulfuric acid plant. This is primarily a nickel smelter where a nickel-copper matte is pro- duced by electric furnaces. A copper smelter has been operating at this site at least since 1918. The plant was dismantled and moved to Kyshtym in October 1941 and was back in operation probably before the end of 1955- 3,5S XI Construction ben in April 1948 and the plant was in operation by mid-1949. Equipment consists of 2 reverberatory furnaces horizontal converters and 2 anode furnaces. /612/ VIII This plant was eccpleted in 191.8 and is connected, by rail with the copper manes at Degtyarka. Equip- ment consists of coarse and fine crushing plants, a selective flo- tation plant, 2 converters, add 2 large reverberatory furnaces. 162/ Concentrates from the plant end probably some from &weak Concentrates produced locally with ores frOm Blyava Nickel-copper concentrates and high-grade ores, aleo nickel- copper matte from the smelter atPt-change Copper scrap collected from an parts of the USSR 12/ Concentrates from local ores containing nickel, platinum, and copper 161/ Copper mines at Degtyeadm and &tweak Disposition of Product Blister copper is shipped to Pyshma for refining by electro- lysis. Blister copper is shipped to the elec- trolytic refinery at Kyshtym. Capper in the nickel- copper matte is re- covered locally by electrolysis. Blister copper is re- fined by electrol- ysis. 158/ Blister copper is re- fined locally by electrolysis, Blister copper is shipped to iwyshma for refining by electrolysis. Satiated Capacity, 1955 /iv (Metric Tons) D0,00012/ 25,000 -Ipansion is reported to be under way. 158/ 7 000 122/ 55,000 to 60,000 //22/ 7,000 50,000 /9], Estimated Production of Blister Copper, 1955 9/ (Metric Tons) 34,030 21,000 7,000 10,000 6,000 40,000 to 50,000 D. The total capacity- in I was c, The total production in 1955 ,000 to 414,0C? tons. S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/08/15: CIA-RDP79R01141A000900170002-1 50X 50X Declassified in Part - Sanitized Copy Approved for Release 2013/08/15: CIA-RDP79R01141A000900170002-1 S-E-C Table 8 Electrolytic Copper Refineries in the USSR 1955 Location Aliment", Armyensaa.re 6211 Balkhash, Karagandinskaya Oblast, Kazakh sea Kyahtro, Chelyabinskaya Oblast, REM moneltegorsk, Ittneanskaya Oblast, 25752 Moscow, Moslcovskaya Oblast, RSTSR Neril'sk, Tvocashiy Nataioral'en.YOkru,S, Description Ibis plant was constructed in 1944-46. In 1955 the production of refined copper was reported to have increased 32 percent over that of 1950. Until 1552, when the tint section of its electrolytic unit was completed, this refinery either fire-refined its blister copper or shipped it to Re- gion VIII for electrolytic refining. A second section was scheduled for operation in 1954. IV/ Source of Estthated Capacity, 1955 12/ Blister Copper (Metric Tons) Local smelters Inasmuch as this is the only electrolytic refinery in Region V, its capacity oust be roughly equivalent to the capacity of the smelt- er, or 25,DCO tons annually. The smelters St .11hash, Oluboknye, and Karsak- Pay Inasmuch as this is the only electrolytic refinery in Region X and Region X pro- duced 166,000 tons of re- fined copper in 1955, it is estimated that the capacity of the refinery must be about 175,0D) tons annually to produce this amount of refined copper. Catimated Production, 1955 Ei (metric Tons) 20,000 166,000 VIII The plant is equipped with anode and The smelters Approximately 50,000 tons 35,000 to 45,030 cathode furnaces, casting wheels, and at gsrabash, annually 2? electrolytic cells Two of the anode ENy=k, and and two of the cathode furnaces use mednCeorst fli01 011 fOr smelting./ ?reduces copper as a byproduct by Nickel-copper 8,000 Lq2/ 7,000 electrolysis. Pleat was badly dam- matte Prom the aged during World War I/. a/6 the smelter at Monchegorsk No details are available. The second- 55,000 50,000 ary Copper smelter at MOScol, Tootnotn for Table 8 follow on p. 36. The refinery hes 6 cells. The av- erage weight of the anodes is 270 kilograms. 110/ - 35 - The local 7,CCO sxlter Declassified in Part - Sanitized Copy Approved for Release 2013/08/15: CIA-RDP79R01141A000900170002-1 6,000 50X1 Declassified in Part - Sanitized Copy Approved for Release 2013/08/15: CIA-RDP79R01141A000900170002-1 S -E -C -R -E -T Table 8 Electrolytic Copper Refineries in the USSR 1955 (Continued) Location Pyshma, Sverdlovskaya Oblast, RSFSR Economic Region at. Description VIII Construction began in 1929 or 1930 along a US design. The five re- verberatory furnaces are oil fired. 171/ Fbr many years the largest electrolytic refinery in the USSR, this refinery was surpassed in size by the one at Balkhash in 1954. Source of Blister Copper Estimated Capacity, 1955 12/ (Metric Tons) The smelters 110,000 to 150,000 172/ at BaYmak, Kirovgrad, Krasnoural'sk, and Revda Estimated Production, 1955 1/ (Metric Tons) 135,000 to 100,000 b. The total estimated capacity in 1955 was 430,000 to 470,000 tons. C. The total estimated production in 1955 was 377,300 tons. - 36 - S -E-C -R -E -T Declassified in Part - Sanitized Copy Approved for Release 2013/08/15: CIA-RDP79R01141A000900170002-1 50X1 50X1 Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 S-E-C-R-E-T APPENDIX B METHODOLOGY 1. Estimates of Production, 1941-44. a. 1941. During the first 7 months of 1944, production of copper in Region Xa was 69.4 percent above that of the corresponding period of 1940, 26.3 percent above the level of 1941, and 18 percent above the level of 1943. 173/ On the basis of this statement an index of production of copper in Region Xa was derived, as follows (1940=100): Year Index 1940 100 1941 134.o 1943 143.6 1944 169.4 This index applies only to the first 7 months of each year. New capacity was being installed at the Balkhash plant in 1940 which re- sulted in a concentration of an unusually large proportion of pro- duction during the latter months. It is probable, therefore, that the monthly production during the last 5 months of 1940 approximated that during 1941: that is, an increase of 34 percent. The average monthly production in 1940 was, therefore, as follows: X = average monthly rate in each of the first 7 months 1.34 X = average monthly rate in each of the last 5 months 7X + 5(1.34)X = 35,490 7X + 6.7X = 35,490 X = 2,590, average during the first 7 months 2,590 x 1.34 = 3,471, average during the last 5 months Production in Region Xa in 1941 is estimated, therefore, at 3,471 x 12, or 41,652 tons, which was 22.3 percent of the total production of copper in the USSR in that yeare6.1.1(1/4 The total production of copper in 1941 was, therefore, about 1 , 0 tons. -37- S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : DIA-RDP79R01141A000900170002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 S -E -C -R -E -T b. 1942. Production of copper in 1942 was estimated at 164,000 tons by interpolating between 1941 and 1943. C. 1943. Production of about 44,600 tons of copper in Region Xa was estimated by increasing the average monthly production during the first 7 months of 1940 (2,590 tons) by the factor 1.436 and multi- plying this product by 12. The total production of copper in the USSR in 1943 is estimated at 141,200 tons, inasmuch as production in Region Xa accounted for 31.6 percent of the total. 175/ d. 1944. Production of 52,600 tons of copper in Region Xa was esti- mated by increasing the average monthly production during the first 7 months of 1940 (2,590 tons) by the factor 1.694 and multiplying this product by 12. The total production in the USSR, 147,400 tons, was derived from the statement that Region Xa produced 35.7 percent of the total production of copper in the USSR in 1944. 176/ 2. Estimates of Demand. Production of crude steel* and consumption of refined copper in the US, 1930-55, are shown in Table 9.** These two series of data were correlated, and a coefficient of correlation of 0.91 was found to exist between the two variables. A significantly higher coefficient of correlation exists if two groups of years are eliminated from the series. These are the war years, 1941-46, and the last 5 years, 1951-55. In 1941-46 the steel-to-copper ratio. decreased because of the large quan- tities of copper used in production of ammunition. In 1951-55 the steel-to-copper ratio increased because aluminum has captured part of the market traditionally served by copper. If these two groups of years are eliminated, a coefficient of correlation of 0.98 exists be- tween consumption of copper and production of crude steel. * Production of crude steel is virtually equivalent to consumption of crude steel, inasmuch as crude steel in unfabricated forms normally is not exported or imported in significant quantities. ** Table 9 follows on p. 39. -38- S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/08/15: CIA-RDP79R01141A000900170002-1 S-E-C-R-E-T Table 9 Production of Crude Steel and Consumption of Refined Copper in the US 2/ 1930-55 Production of Crude Steel Year (Million Short Tons) Consumption of Refined Copper (Thousand Short Tons) Year Production of Crude Steel (Million Short Tons) Consumption of Refined Copper (Thousand Short Tons) , 1930 1931 1932 45.6 29.1 15.3 632.5 451.0 259.6 1943 1944 1945 88.8 89.6 79.7 1,502.0 1,504.0 1,415.0 1933 1934 26.0 29.2 339.4 322.6 1946 1947 66.6 84.9 1,391.0 1,286.0 1935 38.2 441.4 1948 88.6 1,214.0 1936 53.5 656.1 1949 78.0 1,072.0 1937 56.6 694.9 1950 96.8 1,447.0 1938 31.8 1107.0 1951 105.2 1,304.0 1939 52.8 714.9 1952 93.2 1,360.0 1940 67.0 1,008.8 1953 111.6 1,435.0 1941 82.8 1,641.6 1954 88.3 1,235.0 1942 86.o 1,608.o 1955 117.0 1,412.0 a. 177/ -39- S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/08/15: CIA-RDP79R01141A000900170002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 S-E-C-R-E-T High positive correlations between production of crude steel and consumption of copper were found to exist also in other industrialized countries. For example, the coefficient of correlation between production of crude steel and consumption of copper in the years 1934-38 and 1946-55 was 0.88 in the UK and 0.94 in Canada. In Japan the coefficient of correlation between production of steel and consumption of copper in 1947-55, the only years for which data were readily available, was 0.93. On the basis of these relationships, it is concluded that in a large industrial nation such as the USSR, production of crude steel can be used as the basis for estimating the demand for copper. Reliable Soviet data on production of crude steel are available, although there is less confidence in the figures for the war years, 1941-45. On the whole, however, data on production of crude steel in the USSR are considered among the most valid available on any phase of Soviet industry. Data on consumption of copper in the USSR, however, are not available for any recent year. Data on production and importation of copper in 1929-33 have been released by the USSR. Exports of copper in these years were negligible. In order to use production of crude steel as a basis for estimating the demand for copper, it is necessary to start from a base period during which the absolute demand for copper is known. As a first approximation, in the absence of any primary data, de- mand in such a period may be taken to equal production plus imports less exports. This equation would be correct, in principle, however, only if copper were freely available to the consuming sectors of the economy from domestic production and from imports, if there were no shortage of exchange with which to buy imports of copper on the world market, and if stocks of copper did not change significantly during the period. Available information indicates that the first two conditions were reasonably well satisfied during the period 1929-33, but primary data on changes in the levels of stocks of copper in the USSR are not available for this or any other period. To minimize the effect of changes in the levels of stocks of copper, an initial relationship is established between the average annual pro- duction of steel and the annual average algebraic sum of the amounts of copper produced, imported, and exported, which are known for these years. The demand for copper in succeeding years then is estimated on the basis of production of steel. - 40 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 S-E-C-R-E-T An examination of the US data on production of crude steel and consumption of copper* reveals that consumption of copper per ton of crude steel produced increased by about 35 percent during World War II. This increase is due principally to production of ammunition; about 350 pounds of copper are required for each ton of ammunition produced. 11?/ Inasmuch as the USSR also was engaged in a heavy program of production of ammunition during this period, the estimate of consumption of copper derived from production of steel was increased by 35 percent for the years 1941-45. The US data also indicate that in 1951-55, consumption of copper did not keep pace with production of steel because of competition from aluminum. In the US, consumption of copper increased only 94 per- cent as fast as production of steel. On the assumption that the USSR would lag 2 years behind the US in technological development, the estimates of consumption of copper in the USSR derived from production of crude steel were corrected by this factor for the years 1953-55. There are no reliable data available indicating the distribution of copper among the consumers in the USSR for any year since 1933. In that year the percentage of the total consumption of copper by various industries was as follows 179/: Consuming Industry Percent Nonferrous metalworking 34.1 Electrical engineering 42.0 Chemical industry 2.2 Ferrous metallurgical and other heavy industry 9.8 Machine building 7.7 Light industry 1.3 Other 2.9 Total 100.0 In view of the many applications of copper, its use pattern is especially complex. The tabulation given above indicates that copper was used in nearly every phase of the economy as long ago as 1933. Furthermore, its use pattern changes constantly as new metals, alloys, and uses are discovered and as prices of copper, alloying materials, and competitive metals fluctuate. * See Table 9, p. 39, above. - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 S-E-C-R-E-T The most detailed and recent estimate of the use pattern of copper in the US was prepared for the President's Commission and covered the year 1950. The 1950 is shown by the following percentages Use Materials Policy use pattern in the US in 180/: Percent 24 7 8 L. 10 12 Electrical equipment Telephone and telegraph Light and power Radio and television Other rod and wire Automobiles (radiators) Building (plumbing, flashing, and leaders only) 11 Railroads 2 Refrigerators 2 Ships (propellers and the like) 2 Air conditioning 2 Clocks and watches 1 Copper-bearing steel 1 Heating radiators (convectors) 1 Ammunition 6 Other 7 Total 100 These data indicate that in the US about 53 percent of the copper consumed in 1950 was used in production of "electrical ma- chinery" -- electrical equipment, telephone and telegraph, light and power, radio and television, and other rod and wire. Assuming that the 240,000 tons of copper consuMed in the USSR in 1955 for electri- cal machinery also made up 53 percent of the total consumption of copper, the total consumption of copper in the USSR can be calculated at about 452,800 tons for 1955, whicb compares very favorably with the 447,100 tons previously estimated,* using an entirely different methodology. * See Table 4, p. 19, above. -42 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 le# 40 Next 8 Page(s) In Document Denied e Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 50X1 Declassified in Part - Sanitized Copy Approved for Release 2013/08/15: CIA-RDP79R01141A000900170002-1 USSR: COPPER DEPOSITS, SMELTERS, AND ELECTROLYTIC REFINERIES, 1955 4/4-77c 0 CF:" AS onchegorsk jr, _ ? - 0(4 orgrad Revda OlA 8 KrQS SPY5 yshiym Karabosh . / / Woos chiliad' Korsakpay / e Usurbe._gu , sherkagran Kounrad 0 IAS O 10 ',Rol ash ..s/..4%.? aCco RaLkhersh .tri \ 7> 0Almalyle 4 et 4.4.,, /.. / 8.-undaroes are not necessan:y thou S7 .7)75 wormed by the US Grano?um / r 26073 6.57 01' A:47- />2701 0Copper deposit 14 Capper smelter Electrolytic copper refinery ? sso sco 750 M 250 510 10 Milorntlen Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 gure 50X1 50X1 50X1 Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1 i I SECRET SECRET Declassified in Part - Sanitized Copy Approved for Release 2013/08/15 : CIA-RDP79R01141A000900170002-1