MINERALS YEARBOOK, 1985710 
 
sustaining a serious oversupply. World the Congress. The Department of Defense
mine capacity continued to exceed produc- Authorization Act, 1986 (Public
Law 99tion by 25%. 145), signed by the President on November 
~ Concerns over short-term nickel supplies 8, 1985, stated that no action
may be taken pushed the nickel price upwards during the before October 1,
1986, to implement or first half of the year. However, the excess administer
any reduction in a stockpile goal supply situation that developed in the
sec- in effect on October 1, 1984. 
ond half of the year drove the price down to The U.S. Department of the Treasury,
its lowest level since early 1983. Bureau of the Mint, solicited bids on
March The major event affecting the domestic 8, 1985, for copper-nickel coin
blanks in- 
nickel producers was the closure of AMAX stead of the raw metal usually purchased.
Nickel Inc.'s Port Nickel refinery in Braith- The purpose was to cut fabrication
costs and waite, LA. The refinery was the country's shift expenses from normal
operating funds only primary nickel-cobalt refinery. The to the special Mint
coinage fund. Concerns M.A. Hanna Co., formerly Hanna Mining raised by domestic
mills and members of Co., temporarily closed its integrated nickel Congress
that foreign bidders would have a mine and smelter at midyear to install
a built-in cost advantage convinced the Mint, wet screening unit at the mine
and a slurry however, not to award any contracts under transportation system
to haul the ore to the the solicitation. Arrowhead Metals Ltd., smelter.
Toronto, Canada—the lowest bidder—unDomestic Data Coverage.—Domestic
pri- successfully challenged the decision to drop 
 the solicitatiOn in Federal courts. Meanmary production data for nickel
are obtain- while, the Mint purchased 1,700 tons of ed by the Bureau of Mines
from a survey of nickel under three tenders for processing the single integrated
nickel mine-smelter into coins according to the past practices. and from
another survey of the two copper 
 Most was purchased from trading comparefineries that produced bvrroduct
nickel. nies with U.S. offices; AMAX Nickel providDomestic consumption data
for nickel are ed 263 tons as one of its last sales before developed by the
Bureau from a voluntary 
 ceasing primary nickel production. 
survey of U.S. operations. Of the 375 oper- U.S. Geological Survey (USGS)
continued ations to which a survey request was sent, exploring and evaluating
the Exclusive 340 responded, representing 74% of the Economic Zone for seafloor
mineral reapparent primary nickel consumption sources, particularly cobalt-nickelshown
in table 4. Apparent consumption of 
 manganese crusts. The U.S. Department of 
primary nickel was estimated using U.S. the Interior's. Minerals Management
Serprimary production plus imports minus ex- vice (MMS) established a new
office, the ports plus adjustments for Government and Office of Strategic
and International Minerindustry stock changes. als, to formulate policies
for exploring and Legislation and Government Pro- developing minerals from
the Outer Contigrams.—The General Services Administra- nental Shelf.
An interagency wecking group tion (GSA) received 5,014 short tons o'~ consisting
of the USGS, National Oceanic vacuum-melting-grade nickel for the Na- and
Atmospheric Administration, and MMS tional Defense Stockpile. The material,
completed draft regulations on such activipurchased in late 1984, brought
the yearend ties. MMS financed detailed geologic and inventory to 37,223
tons, well below the goal hydrothermal studies of the Gorda Ridge of 200,000
tons. crust deposit off the Oregon coast. The On July 8, the President approved
recom- Gorda Ridge Technical Task Force, consistmendations by the National
Security Coun- ing of State and Federal representatives, cii (NSC) for modernizing
the strategic and formulated recommendations to the Secrecritical materials
stockpile. Under the NSC tary of the Interior regarding future leasproposal,
the stockpile would be structured ing. 
into two tiers. Tier I would contain materi- Possible seafloor mineral development
als required by military, industrial, and moved closer to reality near Hawaii
as the essential civilian users during a military Hawaiian Task Force reviewed
mine develconflict that would not be available from opment scenarios, developed
leasing plans, domestic or reliable foreign sources. Tier II and began overseeing
an Environmental would contain a supplemental reserve of Impact Statement
(ElS). MMS sponsored an material already possessed by the Govern- additional
data-gathering cruise over the ment. According to the NSC guidelines, Cross
Seamounts site, one of the most promnickel would be categorized in tier II,
and ising crust deposits near Hawaii. 
the goal would be 5,000 tons. At yearend, Congress failed to enact legislation
reauthis proposal was under consideration by thorizing the Comprehensive
Environmen