Business: Money for Magma?

In Arizona, 45 miles from Tucson, lies the nation’s biggest untapped source of copper. It is the 4,411-acre San Manuel field, which geologists estimate contains 460 million tons of ore—enough to last the U.S. for about three years. But it has not been exploited because the low-grade ore would be enormously expensive to mine and process.

Last week RFC Boss W. Stuart Symington hinted that the Government may lend $75 million to put San Manuel to work to help ease the copper shortage. The loan was requested by little Magma Copper Co., sixth on the list of U.S. copper producers and owner of the San Manuel property. If the loan goes through, as RFC officials expect, Magma’s San Manuel production should hit 70,000 tons in the next four years, increasing U.S. copper output by 6%. That would push Magma’s total output up to 100,000 tons a year,make the company third in domestic production.*

* Top two: Kennecott and Phelps Dodge.