COPPER: Strike for Magma

Four centuries ago, in search of the legendary Seven Cities of Cibola, Francisco Vásquez de Coronado beat a trail along the San Pedro River in southeast Arizona. Coronado never found the fabled wealth of the cities. But in recent years, evidence of other riches—in the form of big copper and molybdenum deposits—has been found by prospectors along the San Pedro. During World War II, the Magma Copper Co., seventh biggest U.S. copper producer, took out an option and set up a subsidiary, the San Manuel Copper Corp., to explore the deposit. In the past seven years, Magma President Alexander J. McNab has spent $10 million on preliminary exploration and development, estimates that his mine contains half a billion tons of low-grade ore, biggest U.S. underground copper mine.

Last week Magma struck it rich—not on the San Pedro but in the bureaus of Washington. To develop its San Manuel property, it got a $94 million RFC loan, the biggest ever made to a private company. With the money, Magma plans to build a town for 7,000, a concentrator, smelter and other installations. But there is one catch. Not till Magma raises $17 million for the mine from private sources will the RFC turn over its money. President McNab is still not sure where the $17 million will come from. But since the Government is willing to provide a guaranteed market at a price which will probably assure the company a profit, McNab is sure he can get the money. If he does, he estimates that by 1958 San Manuel will annually be turning out 140 million Ibs. of copper, an increase of 8% in U.S. production, and 6,000,000 Ibs. of molybdenum, a boost of 16%.