6 Th Nwi-Review, Roseburg, Ore. Mon,, Feb., 27, 1961
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Company Mining The Only Known Major
Deposit Of Ore In The United States
One of Douglas County'a largest
tingle industrial operations is that
of Hanna. Mining Co. and Hanna
Nickel Smelting Co. at Nickel
Mountain in the Cow Creek valley
southwest of Kiddle.
Nickel Mountain contains the
only known major deposit of nick
el in the United States. Small
amounts of the metal are obtained
as byproducts in a few mining
operations around the" country, it
is reported.
The presence of a large deposit
of nickel in Douglas County has
been known- for almost 100 years.
The earliest prospectors in the
area noted that their prospect holes
in the mountain yielded a yellow
ish ore identified as nickel.
In the '70s, as prospectors fanned
out from the California gold fields.
numerous claims were filed. Sev
eral attempts to produce nickel
were undertaken, but all were fail
ures. Geologists say that Nickel Moun
tain once was one of the towering
peaks of the Pacific Coast. It was
one of the high mountains of a
range that formed the coastline.
The ocean then came inland al
most to the present site of Rose
burg and swung sharply west along
the ramparts of the mighty moun
tain which, geologists say, tower
ed some 20,000 feet into the air.
Today Us elevation is around 2,
500 feet.
During millions of years of ero
sion, according to the geological
NICKEL ORE GETS A RIDE in the mining operation near
Riddle when it dropped 2.000 feet by an aeriol tramway
approximately 8,400 feet In length. Carrying 250 tons
per hour in giant buckets, the tramway turns generotors
which act as brakes while producing approximately 500
horsepower of electrical energy. The electricity is dis
tributed for generol use. One of the tramway lifts is pic
tured above.
report;, nickel, which was a part
of the mountain's composition as it
was forced up by volcanic action,
oxidized and filtered down.
It combined with iron ores.
Throughout the centuries the ore
bodies concentrated more and
more.
But the deposit Is of low grade.
It takes many tons of ore to pro
duce a comparatively few pounds
of metal. a
Before a successful mining In
dustry could be established, a way
had to be found whereby large
quantities of dirt and rocks could
be moved and processed cheaply
as a means of recovering a very
small percentage of metal.
This is why early operators fail-,
ed. They were unable to make the
few pounds of metal obtained pay
the cost of removing tons of low
crade ore.
Hanna Mining Co. solved the
problem by developing a strip mm
ing process. The ore is gathered
at a- crushing station, then trans-
orted 8,400 feet by the world's
ongest aerial tramway, and drop
ped to a smelter z.ooo feet down
the mountainside.
There a process developed In
France, never before tried in the
United States, and only patented
in the United States since being
refined at Riddle, extracts a fer-
ronickel from huge quantities of
ore sent down from the mine
above.
Principal Ingredients of a 40
pound ingot produced at the smel
ter are iron, nickel and traces of
phosphorus, sulphur, carbon, chro
mium. The smelting process results in
a large amount of ferrosilicon
which, in turn, is used in process
ing. Investigations Many
The present operation follows nu
merous investigations by large
concerns. ,
After earlier attempts by indi
viduals had failed to bring forth
an economical method of ore ex
traction, several different compan
ies were formed to work on a co
operative basis, but none was suc
cessful. interest in nickel mining at the
site had existed (for more than 75
years, before the Hanna Co. moved
in.
The final and successful develop
ment resulted from the nation's
critical need for a strategic metal.
Because of the importance of a
domestic supply, the federal gov
ernment made available a suffi
cient loan to be attractive to an
operator.
But, even with $25 million avail
able in the form of a loan, Hanna
Co. spent four years of investiga
tion of nossibilities before it would
enter into negotiations with the
lgovernmcnt. ,
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A ONCE LORDLY MOUNTAIN OF THE PACI
FIC COAST is today being sifted into the elec
tric furnaces of the Hanna Nickel Smelting Co.
at Riddle to supply the only exclusive produc
tion of ferronickel in the United States. Nickel
Mountain, which once towered to an eleva
tion of more than 20,000 feet, geologists say,
today is only a little more than one-tenth
that size, and is growing steadily - lower as
its top is removed and dropped 2,000 feet
by the world's largest aerial tramway to the
unique smelter. The operation is located four
miles west of. Riddle, 25 miles south of Rose-burg.
Company Negotiates For Plant Ownership
COMMERCIAL METALS
Douglas County has several prop
erties containing sulphide deposits
in which commercial metals are
gold, silver, copper and zinc. For
many years in the past, streams in
the county and tributaries to the
South Umpqua have been placered
for gold by hand and by larger
scale operations.
The only mine In the United the GSA and Defense Materials
States engaged exclusively In the
production of nickel is located 25
miles south of Roseburg.
Granted a government loan, de
signed to be amortized in 1962,
the Hanna Nickel Smelting Co.,
which directs Jhe smelting opera
tion at this unique mine, reports
that the debt to the government
has been paid, production has ex
ceeded expectations, and the com
pany has entered into negotiations
to take over the plant and oper
ate it as a private enterprise in
dustry, well ahead of the antici-
lated date for repayment of the
oan.
The mine is located on Nickel
Mountain, four miles west of Rid
dle. The smelter is just off the
Cow Creek road. The deposit is
the largest in the United Stales.,
so far as is known. A few other
mines produce nickel as a byprod
uct, but the Hanna operation, pro
ducing ferronickel, is the only one
mining nickel exclusively.
Tramway Lara
Ore from the summit of the
mountain is transported by aerial
tramway, 8,400 feet long, largest in
the United States, to a smelter
2,000 feet below.
The tramway can transport 250
tons of ore per hour. The weight
of the loaded, descending buckets
creates much energy. This energy,
in turn is used to operate electric
generators, which act as brakes.
The tramway, under full load,
will produce almost 500 horsepow
er of electrical energy.
The ore is subjected to the Ugine
process, invented by Rene Perrin
in France. The method commonly
is referred to as the Perrin Proc
ess. The smelter turns out a 40
pound ingot, roughly 45 per cent
nickel and 55 per cent iron. Pro
duction is around 70 tons per day
of ferronickel.
4JS employed
Total employment Is 425, In
round figures. Of that number 3D0
persons aro employed at the smel
ter, 65 at the mine.
The operation concerns two cor
porations. The mine is owned and
operated by the Hanna Mining
i, The smelter, built with gov
ernment loan, is dircc!ed by the
Hanna Nickel Smelting Co.
The project was developed be
cause of an urgent need for the
stockpiling of a strategic metal.
Inasmuch as the United States in
earlier years was almost totally
dependent upon foreign imports of
nickel for industrial and war needs,
the development of the one known
domestic source was felt necessary
as a part of national security.
The project was investigated by
several agencies. The M. A. Hanna
Co., one of the nation's largest
mining concerns, spent almost four
years of research, starting in 1949,
before coming up vith what was
thought to bo a suitable program.
Actually it has proven tar better
Ulan expected.
, The federagovernment, through
I
Procurement Agency, made a loan
of approximately $25 million avail
able for construction and opera
tion of the smelter.
Production Set -
It was agreed that the company
would produce between 80 million
and 125 million pounds of metal
for the federal government, which
would agree to purchase that
amount of production at a price
that would amortize the loan by
June 1902. 1
But not all the money made
available has been needed to build
the plant, according to the Gen
eral Manager, Earl Mollard. The
provisions of the agreement be
tween the company and the federal
government have been met,
negotiations now are in progress
whereby the plant will be freed of
all interest by the federal govern
ment and will be operated entirely
as a private industry.
The agreement calls for an ex-
ficnditure of approximately $2 mil
ion by the company in concluding
the transaction. It originally invest
ed around $4 million in the pur
chase of land, the installing of
equipment, and the opening of the
oro bodies on the mountain. The
federal government did not parti
cipate in the mine development.
The studies of the mineral depos
it, the research into smelting proc
esses and the plans for production
of nickel culminated in the start
ol construction in 1953. The plant
went into operation in 1954. Many
improvements were made to the
process, then largely experiment
al, but nroduction volume crept up-
n(j .ward as experience and efficiency
were guiueu. -Production
High
. Last vear. the best year of oper
ation, the mine, producing 5.000
tons of ore per day on a five-day
week, supplied a million tons of
ore to the smelter. The smelter, in
turn, produced 22 million pounds
of contained nickel; that is nickel
contained in the ferronickel prod
uct.
The mine's output went to 36 cus
tomers in the United States.
Originally established to operate
only until 1962, ore resources so
far uncovered are sufficient for an
other 20 years of operation, the
manager reports. Search goes for
award for additional bodies of ore.
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Technical Magazines Note Nickel Mining Work
The unique mining operation at
Nickel Mountain, near Riddle, is
receiving much publicity, in tech
nical magazines.
Earl Mollard, general manager,
says that numerous technical pub
lications bave been gathering in
formation, i
Because the plant is the only
nickel producer in the United
States and because it uses a pro
cess imported from Prance and
unique in this country, it is par
ticularly interesting to the trade,
Mollard reports.
The October and November is
sues of Mining World, one of the
chief publications of the mining in
dustry, carry detailed articles re
lating to the Riddle operation.
The October issue deals with the
smelting process. The November
issue covers the mining operation
in detail. ' -
Numerous other magazines are
using articles and pictures, Mol
lard reports.
The plant shunned publicity in
earlier months, inasmuch as its
process was still secret and unpat
ented, but has released informa
tion since the French process has
obtained approval of its application
for American patent.
LUCTKOC
POWER FOR FARM
POWER FOR HOME
POWER FOR RURAL INDUSTRY
nnnr.i ac ci tsrTmr -operative
Inc.'
1981 N. E. Stephens
ROSEBURG
OR 3-6616
3
(( AND II
Serving and Growing
With Douglas County
Since 1932
CRUSHED ROCK TOP SOIL
DRAIN ROCK PLASTER SAND
SHOVEL WORK -BULLDOZING
PORTABLE CRUSHER
AVAILABLE FOR OUTSIDE CONTRACTING
We with to take thit opportunity to thank the many
customer and friends wo have served in Hie past 28
years. Wo look to tho futuro with confidence of con
tinued growth, pleasant relationship! and increasing
prosperity for all of Douglas County,
, Office at Shady Point, 3 Miles South
of Roseburg on Hwy 99 Business Rout,
Across from Shady Oaks Motd
Mailing Address: P. 0. Box 1207, Roseburg
ROSEBURG
SAND and
GRAVEL
OR 2-3491