FLUORSPAR (Data in thousand metric tons, unless noted) Domestic Production and Use: In 1995, fluorspar shipments totaled 48,000 tons from one mining company in southern Illinois. An estimated 74% of the reported fluorspar consumption in the United States in 1995 went into the production of hydrofluoric acid (HF) in Louisiana, Texas, and Kentucky. HF is the primary ingredient from which virtually all organic and inorganic fluorine-bearing chemicals are produced, and is also a key ingredient in the processing of aluminum and uranium. An estimated 9% of the fluorspar was consumed as a flux in steelmaking and in iron and steel foundries. The remainder was consumed in aluminum fluoride manufacture, primary aluminum production, glass manufacture, enamels, welding-rod coatings, and other end uses or products. To supplement domestic fluorine supplies, about 52,300 tons of fluorosilicic acid (equivalent to 92,000 tons of 92% fluorspar) was recovered from phosphoric acid plants processing phosphate rock. Fluorosilicic acid was used primarily in water fluoridation, either directly or after processing into sodium silicofluoride, and to make aluminum fluoride for the aluminum industry. Salient Statistics--United States: 1991 1992 1993 1994 1995e/ Production: Finished, all gradese/ 1/ 58 51 56 2/ 49 48 Fluorspar equivalent from phosphate rock 106 106 116 97 102 Imports for consumption: Acid grade 412 423 434 433 419 Metallurgical grade 83 111 63 59 112 Fluorspar equivalent from hydrofluoric acid plus cryolite 128 106 99 108 124 Exports3/ 74 14 13 24 52 Sales from Government stockpile -- 4 21 273 186 Consumption: Apparent4/ 485 569 537 543 603 Reported 484 485 447 486 510 Stocks, yearend, consumer and dealer 69 72 75 300 335 Employment, mine and mille/ 180 180 180 180 180 Net import reliance5/ as a percent of apparent consumption 88 91 90 91 92 Recycling: Primary aluminum producers recycled HF and fluorides from smelting operations. HF is recycled in the petroleum alkylation process. Import Sources (1991-94): China, 56%; South Africa, 23%; Mexico, 16%; and other, 5%. Tariff: Item Number Most favored nation (MFN) Non-MFN6/ 12/31/95 12/31/95 Acid grade (more than 97% CaF2) 2529.22.0000 $1.66/t $5.51/t. Metallurgical grade (less than 97% CaF2) 2529.21.0000 Free 13.5% ad val. Depletion Allowance: 22% (Domestic), 14% (Foreign). Government Stockpile: In fiscal year 1995, the Defense National Stockpile Center (DNSC) was originally authorized to sell 40,000 short dry tons (sdt) of metallurgical grade and 200,000 sdt of acid grade. The disposal authority was subsequently revised to 80,000 sdt of metallurgical grade and 90,000 sdt of acid grade. During the period January through September 1995, the DNSC sold 40,000 Sdt of metallurgical grade from the stockpile at Memphis, TN; 40,000 sdt of metallurgical grade from the stockpile at Pine Bluff, AR; and 89,000 sdt of acid grade from the stockpile at Northgate, CO. An additional 36,000 sdt of acid grade was sold from the Northgate, CO, stockpile, pending approval of the fiscal year 1996 annual materials plan. Prepared by M. Michael Miller, (703) 648-7716. FLUORSPAR Stockpile Status--9-30-95 (Thousand short dry tons) Uncommitted Committed Authorized Disposals Material inventory inventory for disposal Jan.-Sept. 95 Acid grade 545 300 516 89 Metallurgical grade 289 73 289 80 Events, Trends, and Issues: China, the world's largest fluorspar producer, restructured its export license/quota system in an attempt to address problems with the existing system. Bids by exporters were restricted to those that fell within a certain percentage range above and below the established average bidding price. The price range was determined by the bidding committee based on international market price, domestic supply, and export costs. The price range was announced prior to the commencement of bidding. As required by the Montreal Protocol and the Clean Air Act Amendments of 1990, most U.S. production of chlorofluorocarbons (CFC's) ceased on December 31, 1995. The current market for CFC's and their replacements is muddled. The demand for the major replacement, HFC-134a, is lower than expected. Producers of HCFC-22 are finding that feedstock costs are high and margins low. In the case of HFC-134a, many customers are still relying on CFC-12, which will no longer be produced for domestic use after December 31, 1995. Producers expect U.S. supplies of CFC-12 will likely be exhausted by 1997-98. World Mine Production, Reserves, and Reserve Base: Mine production Reserves7/ 8/ Reserve base7/ 8/ 1994 1995e/ United States 49 48 W 10,000 Brazil 90 90 W W China 2,100 2,100 27,000 46,000 France 125 120 10,000 14,000 Kenya 64 70 2,000 3,000 Mexico 327 490 19,000 23,000 Morocco 85 90 W W South Africa 174 230 30,000 36,000 Spain 95 90 6,000 8,000 United Kingdom 59 60 2,000 3,000 Other countries 682 680 9/ 114,000 10/ 167,000 World total (may be rounded) 3,850 4,070 210,000 310,000 World Resources: Identified world fluorspar resources were approximately 400 million tons of contained fluorspar. Resources of equivalent fluorspar from domestic phosphate rock were approximately 32 million tons. World resources of fluorspar from phosphate rock were estimated at 330 million tons. Substitutes: Olivine and/or dolomitic limestone were used as substitutes for fluorspar. Byproduct fluorosilicic acid from phosphoric acid production was used as a substitute in aluminum fluoride production. e/Estimated. W Withheld to avoid disclosing company proprietary data. 1/Shipments. 2/Includes fluorspar from National Defense Stockpile reprocessed by Ozark-Mahoning Co., Illinois. 3/Exports are all general imports reexported. 4/Excludes fluorspar equivalent of fluorosilicic acid, hydrofluoric acid, and cryolite. 5/Defined as imports - exports + adjustments for Government and industry stock changes. 6/See Appendix B. 7/See Appendix C for definitions. 8/Measured as 100% calcium fluoride. 9/Includes Brazil, Morocco, and the United States. 10/Includes Brazil and Morocco. Mineral Commodity Summaries, January 1996