COMMENTS ON MINERAL CONDITIONS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP83-00423R000500330001-9
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 2
• Document Creation Date: November 9, 2016
• Document Release Date: November 23, 1998
• Sequence Number: 1
• Publication Date: March 1, 1953
• Content Type: REPORT

Approved For Release 1999/09/1.0 : CIA-RDP83-00423RO605G3
Country: Peru/Chile
Subect: Comments on Mineral Conditions
Place Acquired --
Date Acquired: Mar 53 25X1A6a
Date of Information:
25X1A2g
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1. The continued low price4 of lead, and especially zinc, has caused several
small properties to suspend their operations, while several others have
changed their flowsheets over to copper recovery. Much zinc is being
held in storage pending a possible recovery of prices. With the exception
of the Santander property, all other new lead - zinc developments have been
stopped.
2. Considerable activity has been noted in proposed increases of cement pro-
duction in Peru. Several new small dry plants are being considered for
the interior. Interest is also being revived in the two larger projects:
a. Cia Nacional de Cemento Portland del Norte S.A (Pacasmayo cement)
b. Southern Cement Plant
(1) It is claimed that Pacasmayo has received a promise from the Inter-
national Bank visitors that a loan for this project will be approved,
providing a certain percentage of local capital can be raised.
(2) Several years ago consideration was given to the possibility of
erecting a cement plant in the South of Peru. Interest is again
being aroused in this proposal in view of the potential cement re-
quirements for the construction of the Toquepala Copper Mining Milling
and Smelting Plants.
Construction is nearing completion for the exploitation of the Marcona
iron ore deposits. The ore runs 60% iron and only 0.5% sulphur with a
proved reserve of 100 million tons. The US Steel Company has contracted
for one million tons per year.
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Approved For Release 1999/09/10: CIA-RDP83-00 3v00
4. Three US geophysical surveying companies have now been engaged by foreign
oil interests for survey work in the Sechura Desert to assist in the ex-
ploration for petroleum.
5. Chile
The news from Chile is disturbing. In addition to the general strike at
Chiquicamata which lasted for two weeks, the Cia Salitrera de Tarapaca
y Antofagasta is in difficulty with the Chilean Government. Their request
for assistance to maintain the high cost Shanks process plants in operation
was turned down by the government. Any attempt to shut them down was
countered by the government with the threat of taking over the industry.
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Approved For Release 1999/09/10 : CIA-RDP83-00423R000500330001-9