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User:Nowakki/Marcona Corporation

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The Marcona Mining Company was a joint venture of Utah Construction Co. and Cyprus Mines Corp., incorporated to undertake the development of the Marcona open-pit coastal iron mine in Peru, all amidst the "iron rush" throughout South America at the time and the increasing dependence of the U.S. steel industry on imported iron ore, but before the rise of the Japanese steel industry, which only became a major importer a few years after the mine commenced operations in 1953.

Background edit

Iron ore was first discovered at Marcona in 1906, but until 1952 it remained completely undeveloped.[1]:19 Some exploration work was done at Marcano in 1945 when the plans for the Chimbote steel works were drafted.[2]

The Peruvian government reached a decision in January 1952 to enter into a contract with U.S. firms to develop the country's largest known deposit of iron ore at Marcano. A portion of the ore was slated to fulfill all requirements of Chimbote, were Peru planned to develop its steel industry.[3]

By May 1952 test drilling had proved 15 million tons of 60% iron content and less than 0.5% of sulphur, suitable for direct use in blast furnaces. Utah Construction Co. signed a contract to investigate for another 6 month, then decide on whether to accept a 20-year concession, at the end of which the property including fixed structures would revert to the government.[4]

The Cyprus Mining Corp. joined the enterprise in January 1953 at the beginning of construction.[1]:19

Opening edit

When the first shipments sailed onboard the SS Libertad on May 8, 1953,[5]:22 the deposits covering 18x12 miles were estimated to contain 100 million tons of recoverable 60%+ iron content hematite and magnetite with some limonite, with minimal initial overburden. To achieve an annual capacity of 2 million tons, $6 million in capital were invested on the open pit mine and facilities in the Port of San Juan. A first shipping contract (worth $35 million[6]) was with U.S. Steel to Mobile, Alabama and Fairless, Pennsylvania. Allen D. Christensen, president of Utah Construction, was president of the company.[7] The Export-Import Bank approved a $2.5 million credit to the company on July 15, 1953,[8] of which all but $1 million were subsequently cancelled.[9] Major construction activities were complete by September 1953. This included a 1,600 meter airstrip,[10] one mile inland near the Port of San Juan.

The ore was transported by 60-ton bottom-dump trucks over a new 18-mile purpose-built road between mine and port (a descent of 1,900 feet[1]:20). Ships were loaded from a 1,000ft conveyor-on-traveling-gantry-crane dock.[6] The fleet of tractor trailers at this stage numbered 17, the loading dock had a throughput of 1,000 tons per hour. Three shipping firms were frequenting the port with Liberty ships. By May 1954 the total investment stood at $13.5 million, including the $1m bank loan. The government extended the concession to 30 years.[11]

Beneficiation and Pelletizing Plant edit

In April 1956 a 10 ton per hour beneficiation pilot plant began production in the Port of San Juan. It used gravity, magnetic and flotation units and utilized sea water, the effects of which were being studied. The small plant was developed by Utah Construction Co.'s ore dressing laboratory in Palo Alto, California and all equipment shipped from the United States.[12]

The large scale beneficiation plant was completed at the end of 1961 with a capacity of 1,300,000 tons of concentrate, representing an investment of $22,500,000 (financed in part by a $10 million Eximbank loan and $2 million commercial bank loans[13]:18). Additional facilities included the loading dock at the Port of San Nicolas, the first section of an 11-mile conveyor linking the mine to the new port and a 10,000kw diesel power plant. Before the new facilities commenced operations Marcona had already finalized plans to spend a further $20,500,000 to built additional grinders and a pelletizing plant employing a Lurgi grate pelletizing machine with a capacity of 1 million tons.[14]

The pelletizing plant began operations in late June 1963, providing for 1 million tons of 69% iron, built by Lurgi of Frankfurt, Germany. Including 2 new grinding and magnetizing units this ended a 2-year, $55 million expansion program.[15]

Capital invested as of the end of the October 31, 1965 fiscal year totaled $78 million.[16]:8

Customers edit

As of September 1954 a total of 2,250,000 long tons since opening of the mine were shipped to U.S. Steel exclusively.[17]

In 1956, Marcona shipped 600,000 mt to Germany, with the rest destined for the United States[18] and also Japan.[19]

In 1958 a 5-year contract for delivery of 1 million barrels of petroleum products per year from the Caribbean to Peru was negotiated and 500,000 tons of other bulk cargo was shipped during the year.[20]

Shipping edit

In 1956 the tanker MV Strinda, built in 1937 by the Deutsche Werft A.G. was acquired from A/S J. Ludwig Mowinckels of Norway[21] and renamed San Juan Trader (6,400gt, 15,000dwt).[22] The ship was sold as soon as the San Juan Pioneer joined the fleet in 1962.[23]:13

Ship built for and owned by the San Juan Carriers, Ltd. subsidiary.

Ship Type Yard Launched Refs
Harvey S. Mudd 31,600dwt Tsurumi Dec 1955[24]:12[a] [26]
Allen D. Christensen 1956
San Juan Merchant 49,000dwt Japan Sep 1958[20] [1]:25[27]
San Juan Traveler 1959[b]
San Juan Exporter 19,000dwt 1960[28]
San Juan Pioneer 71,000dwt 24 Jun 1962[29]
San Juan Prospector 1962
San Juan Pathfinder 1963
San Juan Trader 63,000dwt 7 Jan 1966[30]:4[31]
San Juan Exporter 106,000dwt 1967[c]
San Juan Transporter 100,000dwt Italy 1968
San Juan Vanguard 131,000dwt Japan 1969
San Juan Venturer 131,000dwt 1969
San Juan Voyager 131,000dwt 1970[d]

San Juan Exporter was likely sold in 1964.[34]:9

Jumboized ships
Ship Rebuilt as Date Ref
San Juan Exporter 144,000dwt 1972 [35]
San Juan Prospector 110,000dwt 1973 [36]
San Juan Pathfinder 110,000dwt 1973 [37]

San Juan Carrier ships broke several panama canal records after jumboization.[38]

Harvey S. Mudd-class[26][24]:12
LOA 655ft
breadth 87ft
depth 46.5ft
gross 11,600
dwt 31,600
ore hold 540,600cuft
speed loaded 14.5kn
range 7,900nm
propulsion 12,500shp turbine
San Juan Pioneer-class[39]:15
Length 835ft
Breadth 106ft
Depth 65ft
dwt 71,000
Ore hold 1,300,000cuft
Cargo oil tank 3,200,000cuft
Full load speed 17kn
Range 24,000nm

San Juan Merchant was converted to an oil-slurry-ore carrier, able to carry any one of those 3 types of cargo, at a cost of $2.5 million and renamed Marconaflo Merchant. In April 1970 the ship delivered ore slurry for the first time from the Tasu iron mine in British Columbia to the Portland plant of the Oregon Steel Mills. When carrying slurry, fine ore would first be concentrated to 70% iron, then a mixture of 75% solids and 25% water pumped as a slurry into the cargo hold. The water would then be removed after the solid phase had separated from the liquid phase, leaving behind a compact cake with less than 8% moisture. At the end of the journey, the solid mass would again be liquefied by high pressure water jets, and eventually be pelletized. This method of transportation was a Marcona Corp. invention.[40]

The San Juan Exporter was rebuilt as a oll/slurry/ore carrier of 141,000dwt in 1971.[41]:16[42]

Year Vessels Owned DWT owned Charters Billion ton-miles total Ref
UFY58 3 80,000 [20]
UFY59 5 176,200 [13]
UFY60 6 193,000 [43]
UFY61 6 200,000 48 33 [44]:8
UFY62 6 250,000 55 34 [23]:13
UFY63 +2 390,000 124 38 [39]:13
UFY64 7 375,000 108 39 [34]:9
UFY65 7 378,000 63 [16]:10
Year Owned DWT Long Term Charter Ton-miles Ref
UFY66 8 12 [30]:4
UFY67 9 560,637 16 [45]:5
UFY68 7 498,000 12 [46]:12

Production edit

UFY: Utah Construction Co. fiscal year ending October 31

Year Amount Refs
< Aug 1953 500,000 tons [6]
1953 984,703 lt [47]
< Sep 1954 2,250,000 lt [17]
1955 1,737,823 mt [48]
1957 3,550,000 tons [49]
1959 2,844,249 tons [13]:19
UFY1961 4,238,000 tons [44]:5
UFY1966 >6,500,000 tons [30]:5
1966 7,039,000 tons [1]:21
1967 7,511,332 tons [1]:21
UFY1968 8,347,000 tons [46]:9

Eximbank loans edit

Date Amount Purpose No. Ref
15 Jul 53 $1,000,000 Development of iron ore deposits 548 [50]
14 Nov 57 $10,000,000 Iron ore beneficiation plant 963 [51]:154
23 Mar 61 $6,500,000 Construction of plant for iron ore production 1509 [51]:156
12 Feb 62 $6,000,000 Iron ore expansion program 1973 [51]:158
21 Feb 63 $1,250,000 Expansion of iron ore beneficiation program 2082 [51]:160
2nd half 1964 $13,800,000 Machinery and services for expansion of iron ore processing plant [52]
FY1969 $11,000,000 U.S. equipment and services for iron ore production [53]

Notes edit

  1. ↑ Harvey S. Mudd arrived on her maiden voyage in Los Angeles on April 11, 1956, bound for San Juan.[25]
  2. ↑ Keel laid 15 Sep 1958, Hull #738[20]
  3. ↑ Arrived on maiden voyage in Los Angeles in December 1967[32]
  4. ↑ Arrived on maiden voyage in Los Angeles on May 7, 1970[33]

References edit

  1. ↑ a b c d e f Report of the Commission on Taxation and Production of Iron Ore and Other Minerals (PDF) (Report). 1969. Archived from the original (PDF) on 13 March 2024.
  2. ↑ Template:Cite magazine
  3. ↑ Template:Cite newspaper
  4. ↑ Template:Cite magazine
  5. ↑ Utah Construction Co. 1953 Annual Report (Report). 1953. Archived from the original on 14 March 2024.
  6. ↑ a b c Template:Cite magazine
  7. ↑ Template:Cite magazine
  8. ↑ Export-Import Bank of Washington D.C. 1953 July - December Semiannual Report (PDF) (Report). 1953. p. 13.
  9. ↑ Export-Import Bank of Washington D.C. 1955 January - June Semiannual Report (PDF) (Report). 1955. p. 56.
  10. ↑ Template:Cite magazine
  11. ↑ Template:Cite magazine
  12. ↑ Template:Cite magazine
  13. ↑ a b c Utah Construction Co. 1959 Annual Report (Report). 1959. Archived from the original on 14 March 2024.
  14. ↑ Template:Cite magazine
  15. ↑ Template:Cite newspaper
  16. ↑ a b Utah Construction Co. 1965 Annual Report (Report). 1965. Archived from the original on 14 March 2024.
  17. ↑ a b Template:Cite newspaper
  18. ↑ Template:Cite magazine
  19. ↑ Utah Construction Co. 1956 Annual Report (Report). 1956. Archived from the original on 14 March 2024.
  20. ↑ a b c d Utah Construction Co. 1958 Annual Report (Report). 1958. Archived from the original on 14 March 2024.
  21. ↑ (1956) Lloyd's Register of Shipping 1956
  22. ↑ (1958) Lloyd's Register of Shipping 1958
  23. ↑ a b Utah Construction Co. 1962 Annual Report (Report). 1962. Archived from the original on 14 March 2024.
  24. ↑ a b Utah Construction Co. 1955 Annual Report (Report). 1955. Archived from the original on 14 March 2024.
  25. ↑ Template:Cite newspaper
  26. ↑ a b Template:Cite magazine
  27. ↑ (1968) Lloyd's Register of Shipping 1968 M-Z, p. 831
  28. ↑ (1980 page=1094) Lloyd's Register of Shipping 1980 A-K
  29. ↑ (24 June 1962). "Carrier Launched". San Bernadino Sun: 20.
  30. ↑ a b c Utah Construction Co. 1966 Annual Report (Report). 1966. Archived from the original on 15 March 2024.
  31. ↑ Template:Cite newspaper
  32. ↑ Template:Cite newspaper
  33. ↑ Template:Cite newspaper
  34. ↑ a b Utah Construction Co. 1964 Annual Report (Report). 1964. Archived from the original on 14 March 2024.
  35. ↑ (1980 page=268) Lloyd's Register of Shipping 1080 M-Z
  36. ↑ (1980) Lloyd's Register of Shipping 1980 M-Z, p. 2,441
  37. ↑ (1980) Lloyd's Register of Shipping 1980 A-K, p. 1,936
  38. ↑ Template:Cite magazine
  39. ↑ a b Utah Construction Co. 1963 Annual Report (Report). 1963. Archived from the original on 14 March 2024.
  40. ↑ Template:Cite magazine
  41. ↑ Utah Construction Co. 1970 Annual Report (Report). 1970. Archived from the original on 15 March 2024.
  42. ↑ (1974) Lloyd's Register of Shipping 1974 M-Z
  43. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named ucannual_1960
  44. ↑ a b Utah Construction Co. 1961 Annual Report (Report). 1961. Archived from the original on 15 March 2024.
  45. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named ucannual_1967
  46. ↑ a b Utah Construction Co. 1968 Annual Report (Report). 1968. Archived from the original on 15 March 2024.
  47. ↑ (1953) Minerals Yearbook, U.S. Department of the Interior, Bureau of Mines, p. 574
  48. ↑ Template:Cite magazine
  49. ↑ Utah Construction Co. 1957 Annual Report (Report). 1957. Archived from the original on 14 March 2024.
  50. ↑ Export-Import Bank of Washington D.C. 1955 January - June Semiannual Report (PDF) (Report). 1955. p. 56.
  51. ↑ a b c d Export-Import Bank of Washington D.C. 1962 July - December Semiannual Report (PDF) (Report). 1962.
  52. ↑ Export-Import Bank of Washington D.C. 1964 Annual Report (PDF) (Report). 1964. p. 32.
  53. ↑ Export-Import Bank of Washington D.C. 1969 Annual Report (PDF) (Report). 1969. p. 35.
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