FOREIGN ECONOMIC ADMINISTRATION Special Areas Branch Far East Enemy Division IRON CRE: MANCHUR IA November 1944 FE-119.1 CONFIDENTIAL Copy No. MAR 12'48 TN 406 .cb I76 1944 UNIVERS THE UN IVER SIT OF CA MIC WICHICAN 1817 · LIBRARIES • • : Seft Documents Expediter ས་ཁ་ (5-20-54 211-43 Summary and Conclusions The principal Manchurian iron ore deposits are in the Anshan, Penhsihu, and Tungpientao fields. These deposits are, for the most part, of low grade. However, because of the availability of good coking coal without the need for water transportation, the provision of adequate beneficiation facilities, and the proximity to the principal Manchurian iron works, they are an important source of iron for use in the Japanese war economy. Manchurian production in 1944 is estimated at 7.6 mil- lion tons of ore with a total iron content of 3.1 million tons, which is believed to be barely adequate to meet the demands of the Manchurian iron and steel industry, and probably represents the maximum exploitation possible under war conditions. } Table of Contents Page I. MANCHURIAN IRON MINES 1- 3 Ownership and Control Iron Ore Requirements Iron Ore Output II. PRINCIPAL ORE WORKINGS IN MANCHURIA 1 1 1- 3 4-15 Anshan Mining Methods and Transport Roasting and Concentration Regulation of the Roasting Process Magnetic Concentration Possible Concentration by Flotation Ore Supply 4-8 4-6 6 6- 7 7 7 7- 8 Penhsihu Output 8-10 9-10 Tungpientao Location 11-14 11 Reserves 11 Development 11-13 Mining Methods 13 Production History and Current Estimates Deposits of the Kyowa Mining Company 13-14 14-15 III. POSSIBILITY OF INTERFERENCE WITH ORE SUPPLY 16 TABLES 1. Estimated Manchurian Iron Ore Output, 1944 2. Total Estimated Reserves Available to Showa in the Anshan Field Ore Supply Planned for Showa Steel Works for 1941 3. 4. 5. Estimated Penhsihu (Honkeiko) Reserves Iron Ore Deposits in the Tungpientao (Tohendo) Field 2 5 8 10 12 ་ ! I. MANCHURIAN IRON MINES The Manchuria has vast deposits of iron ore, which constitute a major source of supply for the Japanese war economy. principal fields are the Anshan, Penhsihu, and Tungpiențao. There are a few other, less important, fields. Ownership and Control According to Domei broadcasts, all iron mining and processing in Manchuria were centralized on April 1, 1944, in the newly created Manchuria Iron Manufacturing Corporation, capitalized at 740 million yen. This corporation is under the general control of the Manchuria Heavy Industry Development Corporation. The new firm merged the Showa Steel Works at Anshan, the Penhsihu Iron and Colliery Company, the Tungpientao Development Company, and possibly the Kyowa Iron Mining Company, which operated five small mines near Ssupingkai. : • Iron Ore Requirements The most recent revised FEA estimates place Manchurian iron-making capacity, including both pig and sponge iron, at 3,442,000 metric tons (before the beginning of the Allied bombing program). Assuming a 15 percent reduction in output below theoretical capacity because of necessary relining and repairs of blast furnaces, but entirely overlooking bomb damage at Anshan and Penhsihu, it is estimated that total iron production in Manchuria in 1944 should approximate 2,908,700 metric tons. For production at this rate, the Manchurian iron and steel industry will require an iron ore supply with a total iron content of 3,070,000 tons, allowing for a three percent smelting loss and for 70,000 tons of iron content in the rich ores used directly in the open hearth charge. Iron Ore Output • · The 1936 figures, the last official figures published on Manchurian iron ore production, place the total ore produc- tion at 1,934,000 metric tons. A recent report states that in 1941 total Manchurian output was 4,200,000 tons, an increase of 219 percent over the 1936 figure. One broadcast claimed a 67 percent increase in 1943 over 1942; however, it has not been possible to verify this claim. Despite optimistic • - 2 - Japanese claims and the belief of such experts as Crockett,1/ that output at Anshan and Tungpientao could be expanded, to nine million tons, it is believed that Manchurian iron ore production barely meets the requirements of the iron and steel industry as estimated in the preceding section. Table 1 gives only a very rough approximation of the 1944 output, but it is in reasonable agreement with the potentialities of the various ore fields. TABLE 1 'Estimated Manchurian Iron Ore Output, 1944 (metric tons) Iron content Field (percent) Ore Iron content Anshan Rich 50 800 400 Le an 33 3,600 1,200 Penhsihu 40 (aver.) 1,000 400 Tungpientao Other 50 2,100 1,050 50 100 50 7,600 3,100 With production as estimated in Table 1, Manchuria would be barely self-sufficient in iron ore production, There are, however, several factors which may affect the quantity of ore actually available for the Manchurian iron and steel industry. 7 It appears possible, for example, that the Japanese may be shipping considerable quantities of Tungnientao ore to Japan Proper by way of Korea. There is no direct evidence of such shipments, though British sources have estimated that at much as one million tons a year of Tungpientao ore may be reaching Japan Proper. > م There is, on the other hand, evidence that iron ore is reaching Manchuria from Lungyen, North China. Shipments from 1/R.E. Crockett, H.A. Brassert and Company, New York. - 3 It Lungyen have been recently estimated at 1,825,000 tons. is believed that much of the ore reaching Manchuria from Lungyen is in transit to Japan Proper, by way of Korean ports. Some of it may be destined for Manchurian blast furnaces, but if this is the case, the proportion so destined is not known. Possibly the Japanese are bringing ore to Manchuria from North China to replace Tungpientao ore shipped to Japan. Only a short rail and sea haul would be necessary to transport Tungpientao ore to Japan Proper, whereas a much longer ocean haul would be involved in shipping Lungyen ore to Japan Proper via Tangku. Such a policy would be in accord with the announced Japanese program of transferring heavy freight from water to rail whenever practical. : If some Lungyen ore is being utilized in Manchuria, the reason may be that the Japanese have preferred to import rich ore rather than to expand the concentrating plants required for the leaner ores. Little, or no, information is available on these im- portant points, and even though information were available concerning the activities of a particular date, it might not be true of the situation at another time. Japan, like other countries engaged in war, must at times resort to improvisa- tion.. t: It is, therefore, impossible to determine exactly Man- churian production, exports, and imports of iron ore, The figures given for output must be regarded as tentative and approximate. · - · 4 · II. PRINCIPAL ORE WORKINGS IN MANCHURIA Anshan The largest iron ore deposits known to exist in Man- churia are located in the vicinity of Anshan, Fengtien Province. They are estimated to total more than one billion tons cf ore. These deposits comprise 12 workings within 16 kilometer radius of the Showa Steel Works at Anshan, and the Kyuchorei (Kung- changling) deposit, 48 kilometers southeast of Liaoyang. The individual deposits and the estimated reserves contained in them are listed in Table 2. $ • According to the report made by H.A. Brassert and Company to the Manchurian Industrial Development Company in 1939, the ore is a hard hematite-quartz-schist. Because its hardness (6 to 6.5 Mohs scale) exceeds that of the surrounding strata, the ore, through erosion, has been formed into prominent hills or ridges, thus facilitating open-cut mining. Total reserves of immediately available rich ores, ranging from 53 percent to 61 percent iron content, were estimated in 1939 at 25 million tons; and of lean ore, averaging 35 percent iron content, at 1,089 million tons. • * • Because of the hardness of the ore, its high silica, tai content, and the fine division of the hematite particles, the... low-grade deposits, on which the blast furnaces at Anshan mainly depend, require a much more difficult beneficiation process than the ores of similar iron content found at Birming- ham, Alabama, the Cleveland ores of England, or the French minette ores. However, ever since the Showa Steel Works built the plant at Anshan, its research bureau has devoted intensive study to the beneficiation problem, and a solution has been achieved by a process which involves transforming the hematite to magnetite by roasting; fine crushing; magnetic concentration; and sintering the finely divided concentrate into an agglomerate containing about 57 percent iron which is suitable for blast furnace use. Mining methods and transport. The following description of mining methods in the Taikozan mine, the principal producer in 1939, is typical of mining methods used at all of the open- cut Anshan deposits. The mining proceeds from the top of the hill containing the deposit. A mixture of liquid oxygen and carbon (soot produced from anthracene) is utilized for blasting. The crude ore passes by way of inclined hoists to a crushing plant at the foot of the hill where the fines are screened - 5 Class Reserves (thousand Fe Mn TABLE 2 Manchuria: Total Estimated Reserves Available to Showa Steel Works in the Anshan Field, Typical Analysis Deposit Typical analyses (percent Si02 CaO A1203 MgO S Cu metric tons) Ohtoen Rich Kyuchorei Rich 24,000 1,000 :53 .038 .054 61.1 022 .11: · 13.5 1.51 .59 •49 .087 069.: 12.81;: .82 .555 .682 :081 .15 Total rich 25,000 Nishi Anzan Lean 75,000 42.20.038 .217 37.5 .85 .45 .217 .041013. Taikozan Lean 95,000 Ohtoen Lean 27,400 38.55 .034.12:43.93 .06353.84 31.8 .016.063. 53.84 .24 .14 •5 047 007 .95 .057 .088 .044 .027 Higashi Anzan Lean 150,000 Ohkhoshi Lean 110,000 Hakka hoshi Lean 100,000 Ittanzan Lean, 94,400 Kanmon-zan Lean 19,600 Shin-Kanmon-zan Lean 20,000 Tessekizan Lern 300 Shoreishi Lean 500 Kyuchorei Lean 371,000 Total lean 1,064,000/ 1,089,000 · Total ore Source: Brassert Report, 19:9. Figures are as given in the Brassert report; the reserves shown add up to 1,063,200 metric tons för lean ore and 1,088,200,000 metric tons for total ore. -6. out and sent by a conveyor system to nearby storage space. The crushed lump ore is then loaded from a tipple into 50-ton freight cars which are conveyed in trains of 10 to 15 cars directly to the hoppers at the roasting plant at Anshan. The Kyuchorei mine, which contains the largest amount of rich ore, uses underground methods. In 1939, hạnd crushing in the mine and at the mine face was the only means of pre- paring the ore for blast furnace use, but plans were being made for the installation of mechanical crushers and equip- ment for conveyance to storage. A network of railway lines transports the ores from the various workings over the short distance (average of 12 kilo- meters) to the roasting and concentrating plant which is situated on a 12-meter elevation at the south side of the main steel works. Roasting and concentration. Roasting is accomplished in special furnaces developed at Anshan, with cross-sectional dimensions of 6 by 2 meters and a height of 9 meters. Charging is done by means of a modification of the usual blast furnace double bell top. The ore is preheated, by burning powdered + coal in combustion chambers located on both sides of the fur- nace and about half way between bottom and top. The products of combustion of the coal enter the furnace through ports in the sides and penetrate the charge to the top of the column. The passage of the heating gases through the charge heats the ore to a temperature ranging from 600 C to 700° C. Reduction is effected by coke oven gas which is admitted to the furnace at the bottom and rises up through the heated ore, joining the current of heating gases at the level of their admission. The availability of surplus gas from Anshan coke ovens pro- vides a cheap and effective reducing agent. The waste gases are drawn off by an exhaust fan through offtaxes which communi- cate with a circle pipe. Regulation of the roasting process. The bottom of the furnace is closed by a water seal. The rate of discharge of ore is determined by the speed of a rotary feeder on either side of the furnace, which discharges the ore onto a pan con- veyor running beneath the surface of the water. Reducing fuel (coke-oven gas) is used at the rate of 40 to 50 cubic meters per ton of ore. Powdered coal of 6,000 calories per kilogram is used for heating, at a rate varying from 20 to 25 kilograms per ton of ore. Power consumption is stated to be 2.2 kilowatt hours per ton of ore. į 7- : The The recovery of iron ranges from 80 to 90 percent. The chief difficulty in effecting a high recovery is in regulating the reducing action so that it produces a magnetic condition without further reduction to ferrous oxide (Fe). If magnetite is further reduced to form excessive proportions of ferrous oxide, the value of the roasting is lost because over-reduced ore is no more magnetic than the original hematite. necessity of cooling in the absence of air to prevent re-oxida- tion to ferric oxide (Fe203) requires the use of large amounts of steam. This steam may be inspirated into the furnace by means of the induced draft of the fan. At the temperature of the furnace, it will react with ferrous oxide to form magnetic oxide (Fe30) and hydrogen, thus automatically serving as a regulator of the process. , ! Magnetic concentration. Concentration of the roasted ore is carried out by the usual methods of wet magnetic concentration, using the Grondal separator. The roasted ore is reduced through jaw crushers to a nominal size of minus 25 mm. It is then further reduced in roll crushers to a nominal size of minus 6 mm. after which it is ground in ball mills. Final grinding is in a closed circuit by means of tube mills with classification into plus and minus 150 mesh size (0.014 mm. square opening), by means of Dorr bowl classifiers. The minus size goes to the Grondal separators, from which the concentrate is washed, settled in Dorr thickeners, filtered, dried, and sintered on sintering machines of the Dwight-Lloyd type. Tailings go to waste. The sintered ore has an iron content of about 57 percent and a silica content of about. 17 percent, 4 Possible concentration by flotation. According to recent Japanese broadcasts, the research department of the Showa Steel Works has succeeded in perfecting a method of concentrating the lean Anshan hematite ore by a flotation process which, the broadcast claims, is vastly superior to the process described above because it eliminates the necessity of roasting. In view of the fact that the American Oyahamide Company is said to have worked out a successful flotation process for iron ore concentration in the United States, it is believed that the Japanese could probably apply some form of flotation process to the Anshan ores. However, it is not thought that flotation would be used on a large scale at Anshan, as the present concentrating and sintering equipment is satisfactory. Ore supply. At the time of the exhaustive study of the steel works at Anshan by the Brassert Company in 1939, the annual ore supply for the works totaled 2.4 million metric tons, 8. including two million tons of lean ore from Taikozan, 300,000 tons of rich ore from Kyuchorei, and 100,000 tons of rich ore from Ohtoen. The Showa Steel Works at that time was contem- plating a plan of expansion calling for a total ore supply in 1941 of almost 5.5 million tons to be obtained from the deposits shown in Table 3. TABLE 3 Ore Supply Planned for Showa Steel Works for 1941 (thousand metric tons) Deposit Production Total Ohtoen (rich) 183 Kyuchorei (rich) 1,100 Total rich 1,283 Taikozan. 2,815 Higashi Anzan 700.. Ohtoon (lean) 700 Total lean 4,215 Total ore 5,498.. Source: Bressert Report, 1939. In the opinion of Mr. Crockett, one of the Brassert engineers who inspected Anshan in 1939, the Japanese should have been able, not only to carry out the expansion planned for the 1941, program, but also to produce at least six million tons of ore in 1944 from the Inshan: field.. " 4 Recent Japanese press statements appear to indicate that the expansion program for ore production has not been fully carried out and thet. Inshan is dependent to a large- degree on imports of rich ore from Lungyen and Tungpientao. The use of such imports may imply that the ore production. program at Inshan has fallen short.. • Penhsihu²/ These iron ore workings, located in the vicinity of the town of Penhsihu on the Mukden-Antung railway, are the 2/ Penhsihu is called Honkeiko in Japanese se. ノ ​• - 9 - oldest in Manchuria. They were developed as early as 1905 by Okura and Company, which formed the Penhs ihu Coal and Iron Company in order to take advantage of the occurrence of both good coking coal and iron ore in the immediate vicinity of Penhsihu. Total reserves in the. Penhsihu area are estimated at over five million tons of rich ore (64 percent iron) and 500 million tons of lean ore (33 percent iron). (See Table 4.) · 4 The principal ore deposit is found at Maioerhkou, eight kilometers east of Nanfeng station. This deposit was first worked by the open-cut method, but later it was found necessary to drive adits into the hill in which the ore body is located; mining was then carried on by the cut and fill system. Ore was brought to the surface through the adits, lowered to the foot of the hill by a gravity plane, and shipped by narrow-gauge railway to Nanfeng where the low- grade ore was concentrated by Grondal magnetic separators..: These concentrates, together with the fines from the deposits of rich ore, are briquetted at a plant at the Penhsihu Iron Works before utilization in the blast furnace, fore utiliz Since the low-grade ore is predominantly magnetite, no preliminary roasting is required. The concentration pro- cess is, therefore, much simpler and less costly than at Anshan. The ore at Miaoerhkou is reputed to be one of the best low phosphorus ores in the world, comparing favorably with the best Swedish ores. It is especially suited for the manufacture of the special steels required in the munitions industry. Its qualitative importance in the Japanese arms industry is, therefore, probably much greater than would be indicated by the comparatively small output. Output. Although separate statistics on output at Penhsihu are not available, it is believed that in the prewar period, the blast furnace capacity of the Penhsihu Iron Works was supplied entirely by the adjacent deposits. To supply this capacity would require an annual production of roughly 1,500,000 tons (average iron content of combined rich and poor ore assumed to be 40 percent). According to recent in- formation, however, "both Penhsihu and Showa are now making considerable use of the rich and easily mines Tungpientao iron ores, in preference to the lower grade ores hitherto mined in the vicinity of their works." · 10 - ་ : TABLE 4 Estimated. Penhsïhu (Honkeiko) Reservesa/ (million Reserve Miaoerhkou (percent of iron) metric tons) • Rich magnetite 64 5. :. Lean magnetite 33 230 Waitoushan Lean magnetite 33 150 Tahoyen lean magnetite 33 120 • Source: Brassert Report, 1939. ....... 505 Five other deposits near Penhsihu are listed by Tegengren, Iron Ores and Iron Industry of China. 1924; no analyses or estimate of reserves is given. Analyses of Miaoerhkou Ore (percent) FE A1203 Cao Mgo Mn S Pi Si₂03 Rich Ore 64.01 1.28 0.45 0.027 0.37 0.116 0.017 6.17 Lean Ore 33.61 0.37 0.38 0.08 & 0.030 0.059 50.93 Source: Japan-Manchukuo Yearbook, 1940, page 755. .. 11 . Tungpientao2/ • Location. One of the richest discoveries of high- grade iron ore in Manchuria was made in 1937 as a result of intensive Japanese surveys in the hilly, thinly settled area east of Tunghua (Fengtien Province) close to the Yalu River in the Tungpientao field. The iron ore beds in this field extend 30 miles cast and west and nine miles north and south from Talitzukou to Chitakou and Santoukou. A list of the mines as given in the Brassert report, together with analyses of samples from the principal deposits, is shown in Table 5. :: · : • Reserves. The discovery of the Tungpientao deposits was so recent that most of them had not been thoroughly sur- veyed by the time of the Pearl Harbor attack. The only available information about the reserves concerns the prin- cipal deposit at Talitzukou and the Chitakou mine of which loss is known. Preliminary reports estimated the total reserves at 100 million tons of rich ore (64 percent iron) and "several hundred million" tons of medium quality and lean ore for 'the entire field. Of this total, Talitzukou contains an estimated 78 million tons of rich hematite ore. (64 percent iron), 1.6 million tons of magnetite ore (50 per- cent iron), 3.8 million tons of chamoisite (31 percent iron), 640,000 tons of limonite (54 percent iron), and 1.5 million tons of sidcrite. The Chitskou deposit is estimated to con- tain two million tons of hematite and eight million tons of magnetite, averaging 52 percent iron content. complete analysis of Chitakou ore is not available. 4 Development. In September 1938, after geological surveys had proved the richness of the coal and ore deposits in Tung- pientao, the Tungpientso Development Company was formed. Created for the purpose of developing the resources of the area, it is a subsidiary of the Manchuria Heavy Industry Development Corporation and is capitalized at 140 million yen. Railway construction was the first essential. Work was promptly begun on a line from Leihoukou (Shaho) on the Mukden-Kirin main line, running through Tunghua and the mineral-bearing areas to Chian and Linhiang, where it connects with the Korean railway system. This line was completed in 1939. A steel plant was constructed at Tunghua with a blast furnace capacity now estimated at 132,000 tons a year and iron- 3/ Tungpiontao is called Tohendo in Japanese. - 12 TABLE 5 Iron Ore Deposits in the Tungpientao (Tohendo) Field Japanese Name Dairisshiko Roko Sandoko (West) Shichidoko Daizenshiko Daiyoshiko Daisekisakushi Chinshumon Daibyoko Chinese Name Talitzukou.. La ok ou Santaokou Chitaokou Tatzentsukou Tayantsukou Tashih-Tz otsu Chenchumen Status Prospected 11 11 Not Prospected 11 11 " Tamiaokou 11 Daikoro Tahanglu Ħ Sandoko (Middle) Santa okou. 11 Sandoko (East) Santa okou 11 Kanj in Hangjen 11 Rore (South) Laoling 11 Godoko Wutaokou " Hokusaichi Daik oko Paitsaiti Tahungk.ou #t " Prospected Analyses of Dairisshiko (Talitzukou) Ore Type of ore Fe CaO MgO Mn S P Si203 -Hematite:: 64.38 0.27 0.27 0.007 0.015 3.70 Hematite : 65.35 2.81 0.50 0.018 0.025 3.39 · Limonite 54.38 2.33 0.027 0.020 1.76 Magnetite 50.14 6.52 0.105 0.105 0.025 7.86 Chamoisite. 31.42 1.69 8.08 0.051 trace 13.02 Source: Brassert Report, 1939. - 13 - : making capacity of other than blast furnaces estimated at 30,000 tons a year. • Although the original Japanese plan contemplated a much larger steel plant at Tunghua, the final decision (which was recommended in the Brassert report) was apparently to confine further expansion to Anshan and to utilize Tungpientao orės to a large extent in supplying the Anshan and also the Penksihu plant. Mining Methods. In view of the fact that all develop- ment at Tungpientao occurred after 1938, when. publications of significant data on vital Japanese industries had been dis- continued, little information is available concerning mining methods in the area. Since Since, according to reports of Japanese surveyors, the richer deposits are near the surface, it may be assumed that open-cut methods are used almost exclusively. A recent press report from occupied China states that the transport facilities of the mines are to be improved by the addition of a fleet of electric locomotives and that new apparatus is to be installed in the Talitzukou and Chitakou mines. : It is probable that the provision of an adequate labor supply for the area will prove more difficult than the supply of steam shovels and the other relatively simple equipment required for onen-cut mining. Tungpientao is very sparsely settled and was overrun by bandits until 1938, thus, the importation of labor and the construction of barracks would be necessary. Production history and current estimates... That the Tungpientao mines were producing in 1939 is indicated by Mr. Crockett's statement that 300,000 tons of Tungpientao ore were utilized at Anshan that year. According to one source, the Japanese had planned a production of 500,000 tons from Tungpientao for 1940 and 1.3 million tons for 1942. Japanese press reports in 1940 stated that the Tungpiento Development Company planned to increase production by 550,000 tons, of which 300,000 were to come from Talitzukou and the balance from Chitakou. To estimate 1941 production at about 900,000 tons would appear to be reasonable. Mr. Crockett believes that a current output of three million tons of high-grade ore for the entire field would be quite possible. Another source states that, an annual 14 - " production of 1.7 million tons at Talitzukou alone was planned to follow completion of the Tunghua-Chian railway. However, recent information suggests that both at Anshan and at Tung- pientao the rich ore deposits are mostly on the surface and that the quality of the ore deteriorates as lower depths are reached. Shortages of labor and equipment at Tungpientao have been reported. These facts and the utilization of Lung- yen ore at the Showa Works are said to indicate that the Tungpientao mines are not developing according to plan, though the use of the Lungyen ore, as noted earlier, may be to com- pensate for the export of Tungpientao ore. In any case, out- put has been estimated, tentatively, at about 2.1 million tons, of which possible 300,000 tons would be used at Tunghua, and the balance perhaps divided among Anshan, Penhsihu, and Japan Proper. There is no recent information indicating that Tung- pientao ore is now being shipped to Japan Proper, although as early as 1939 it was reported that an initial shipment of 6,000 tons of Chitakou ore arrived at Moji. If such shipments are taking place, which is possible in view of the present Japanese program of transferring cargo from water to rail routes wherever possible, they may be going by way of Fusan. Deposits of the Kyowa Mining Company In 1939, the Kyowa Iron Mining Company was formed ** a sub- sidiary of the Manchuria Heavy Industry Development Corporation, to exploit the iron deposits worked by the Kang-te Iron Company at Kaiyuan, Hsifeng, and Hsuchiatun, near the main South Man- churia Railway line, Mukden-Hsingking. Press reports state that the firm also expected to develop mines at Hsifeng, Chiatao, Lienshankwan, Kuchiatzu, Tanankow, Shimachi, and Wangchiapu. The firm was originally capitalized at 10 million yen, which was increased in 1940 to 20 million yen. · Of the above-mentioned deposits, Tegengren gives only the Hsuchiatun deposit, just south of Mukden. According to his estimate, this deposit contains only 300,000 tons of marketable ore, averaging 50 percent iron content, which is so scattered in small separate beds that it can hardly be credited with any commercial importance. Recent information indicates, however, that in 1940 the Hsuchiatun deposit was being worked by small-scale hand method, that about 20 Japanese and 300 Chinese were employed in the mine, and that the ore was transported by hand trucks on a light railway to the main Dairen-Mukden railway, two kilometers distant. No estimate of output was given. • 4/ Iron Ores and Iron Industry of China, 1924. 15 More optimistic Japanese accounts allege that the Kaiyuan deposit contains 60 million tons of hematite rang- ing from 50 to 70 percent iron content. No evidence of actual output from Kaiyuan or any of the other deposits owned by Kyowa is available. In view of the mining company's small capitalization, the small-scale nature of mining at Hsuchiatun, and the complete absence of references to Kyowa in recent Japanese broadcasts concerning Manchurian iron ore output, it is reasonably certain that the original Japanese claims were exaggerated and that the current output is probably so small as to be negligible. 16.. III. POSSIBILITY OF INTERFERENCE WITH ORE SUPPLY Inasmuch as the principal ore fields at Anshan, Penhsihu, and Tungpientao consist of many scattered deposits, worked principally by open-cut methods, their exploitation is not particularly susceptible to interference, because only the ore conveyors, loading platforms, and short railways spurs, which could be repaired fairly quickly, would be liable to injury. Serious damage to the ore concentrating equipment at Anshan and Penhsihu would render useless the low-grade ores which constitute the major supply of both fields. It would probably be impossible also, to increase sufficiently the output of Manchurian high-grade ores, or imports from North China, to supply full iron-making capacity in Manchuria. Six months to a year would be required to rebuild the concentrating plants and restore operations after their effective destruc- tion. Direct hits on the crushers, gyrators, and motors would be necessary to destroy the ore concentrating equipment, as it is too heavy to be seriously damaged by near misses. However, viewing the Manchurian steel industry as an inte- grated unit, the ore fields and ore-processing equipment are clearly less susceptible to attack, and less essential to the output of finished steel, than the steel plants themselves and the related coke ovens at anshan and Penhsihu. UNIVERSITY OF MICHIGAN 3 9015 02996 3561