NICKEL SUPPLY IN THE SOVIET BLOC (RR PR-57)

Created: 4/28/1954

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PROVISIONAL INTELLIGENCE REPORT BfeBBB

NICKEL SUPPLY IN THE SOVIET BLOC

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OA HISTORICAL REVIEW PROGRAM RELEASE AS SANITIZED

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CENTRAL INTELLIGENCE AGENCY

PHKE DE RESEARCH AND REPORTS

PROVISIONAL INTELLIGENCE REPORT

NICKEL SUPPLY IP TSCE SOVIBP BI/X

cia/RR it-57

NOTICK

The data and conclusioiic contained in this report do not necessarily represent the final position of ORR and should be regarded as provisional only and subject to revision. Comments and data which may be available to the user are solicited.

CENTRAL INTELLIGENCE AGENCY Office- of Research aad Reports

cornsns

1.

II.

III.

IV. Soviet

Consumption and

V.

Appendixes

Appendix A. Inputs into the Nickel Industry in the USSR .

Appendix B. World Nickel Production,3

Appendix C.

Appendix D. Caps in

Appendix E- Sources and Evaluation of

- ill -

Tables

Pngr

1 . Nickel UaagPH in the US and the

Principal Nickel Ore Deposits in the

Proved Nickel Reserves in the

k. Estimated Capacity of nickel Smelters and theCapacity and Production of Nickelthe35

Estimated Nickel Production in the -

Estimated Nickel Production in East Germany,

W

Estimated Nickel Production in

Estimated Nickel Imports by the 18

9- Estimated Nickel Supply and Apparent Consumption in

the Soviet3 20

Minimum Annual Wartime Requirements of

Nickel In the 21

Energy Requirements of the Nickel Smelting

Plants in tho5

Labor Force at Nickel Smelters and Refin-

eries in the USSR ^Asanuary

Nickel3 and

ClA/Rl)

NICKi:i. SUPPLY IN THE SOVIET BLOC*

S1 y

In the USSR as in the US, nickel is essential in -he manufacture of Jet engines and armaments and in the atonic energy program, as well as in many other Industries necessary for thc supportefense Although there are several substitute possibilities for which thc USSR is qualified with tbe requisite row materials, much of the research in thc field of substitution of metals remains to bc put into pructlce by Soviet industry.

The USSRinimumetricf nickel reserves, which at thc present rate of consumption will last fromoears. Included In this estimate is the Important deposit at Pechenga, acquired by the USSR from Finland.

At the present time the USSR is the second largest nickel producer in thc world- Production3 is estlmuted0 tons, which is about one-third of thc Canadian production. The expansion of the nickel production facilities is under way and will make possible5 planned production oftons. tockpile0 tons bad been accumulated0 and may have increased Relative to the size of its economy, thc Soviet nickel supply compareswith that of the US.

Although there are small nickel deposits ln Czechoslovakia, East Germany, Poland, Communist China, und North Korea, there arcfacilities only in Eaut Germany und Poland. ons, Eastons. The planned production for East Germany5ons, and thc fulfillment of this plan seems probable.

* The estimates and conclusions contained in this report represent the beat Judgment of the responsible analyst ao. ** Tonnages are given in metric tons of metallic nickel throughout this report.

Production in the Satellites is inadequate for thc demand, andfrom both the USSR and the West have been necessary. The COCOM embargo has helped toeficiency of nickel in thc Satellites and the increased lnports from tbe USSR haverain on Soviet' production.

I. Introduction.

Nickel Imparts such properties as deep hardening, improved toughness at low temperatures, and corrosion resistance to alloy steels. It help* Jet engines to perform at high temperatures, and it provides magnetic properties for electronic ccm-ponents. In addition to its direct military uses, nickel is an essential alloy particularly ia the oil, chemical, power, electrical, transportation, and metalworking industries, as well as ln the development of atomic energy.

Tbe forms, in broad categories, in which nickel was used In the USSR inV* are shown in Table 1. omparison with US practice in the same year, when each country wasartime basis, Indicateoa close similarity. 2/ US data2 arc also shown tochanges in such less essential usages as plating,ontrolled wartime economy) to uncontrolled peacetime, and back to controls/ It is thought that present Soviet practices approximate those of the USn that the use of nickel is stilleing directed primarily toward applications of military

In the US the substitution of more plentiful metalseffective conserver of nickel during World War II andduring the Koreanmeasures arc also avallab

the Russians, particularly the increased use of manganese, chrome, and boron, of which they have abundant supplies. 5/

In the US duringabout one-third of theillion tons ofwere National Emergency Steels containing small amounts ofvarious substitutes. 6/ In spite of the saving by this means,ons, aboutercent of USew highons in the same year, jj Thefor lend-LeoHc nickel indicate the existenceimilar cdndi-ln the

* Footnote references in arabie numerals are to sources listed ln Appendix E.

ollows on p. 3.

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23

II. USKH.

A. Deposits.*

The most productive nickel deposits In the USSR lie in the Urnln Economicnd second are the deposits In the Northwe.it Region and Lhe East Siberia Region. The important deposits, their location and the types of ore and their nickel content are given in

The nickel-copper sulfide deposits at Pecbenga, which were initially developed56ubsidiary of theNickel Company, are the main source of ore supply for the plant at Pecbenga. 8/ Two other nickel-copper sulfide deposits of unknown extent have recently been reported near Pecbenga. 9/ The ores in the Pechenga area ane difficult to concentrate by flotation and are smelted directly in electric

Other important nickel-copper sulfide deposits in thc USSR are located near Noril'sk in Eaat Siberia and near Monchegorsk in Murmansk Oblast. Tne deposits at Noril'sk are for tbe most part low-grade disseminations and are the source of ore for the nickel refinery at Noril'sk.

In the early thirties, large deposits of sulfide ore containing copper and nickel were discovered on the Kola Peninsula in Murmansk Oblast. During the late thirties, high-grade sulfide ores, containing as much8 percent nlckcl,were discovered in the vicinity of Monchegorsk. Both these ores, which are processed in the refinery at Monchegorsk, can be smelted directlyhaft kiln.

The nickel silicate (garnierlte) associated with weathered scrpcntlnoarge part of the total nickel depooltD in the USSR. The majority of these deposits lie in the Central and Southern Urals and are the source of ore supply for the nickel plants in the Urals.

*See the map, Soviet Bloc: Principal Nickel Deposits and Processing Plants, following

** The term region as used in this report refers to the economic regions defined and numbered on CIA1 (First, USSR: Economic Regions.ollows on p. 5.

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ddition to tho sulfide und silicate ores, thero is onr other type of ore vhich may In the future become on important source of nickel in the USSR. Thia ore is the nickel-chrome iron ore of the deposits located in the Southern Urals.

B. Reaerves

Proved nickel reserves in tbe USSR arc estimatedinimumons, vhich at the present rate of exploitation would be adequate for aboutoears.

9 the entire reserves of nickel in the USSR were estimated,illion Basedotal of the individual deposits, the best figure within this range for the9 is believed toons. The latter figure does not take into consideration the nickel content of the nickel-chrome iron ore deposits in theUrals. Hot only Soviet but also vorldvide attempts have been to obtain primary nickel from this type of ore but vith little pri success. These ores ore used to some extent In the USSR for pig iron by direct smelting In the blast

* the USSR acquired the large deposits at free Finland, vhich9 had proved reservesons' nickel. Ik/ Total output from thia deposit during thes estimated0 tons of nickel, making the totaleserves vhich vere acquired by the USSR equalhese deposits plusons of provedotalillion tons of proved reserves available" during the- During thehat the USSR producedons of nickel reserves. This leaves the USSR vith oreotalons of nickel at the present time. Thefj reserves In the USSR3 ore given inndout figure is low because It isproved reserves vhlch existed9 and the deposits at Pecbenga acquirednd therefore does not Include discoveries since that date. The USSR has placedmphasis on geological surveys to find new mineral deposits.ry us large as the USSRarge portion la unexploredthere are great possibilities for the discovery of nev nickel deposits.

ollows on p. 7-

P

Table 3

Proved Nickel Reserves in Ihc

Content

Region aad DepositMetric

Northwest

Monchegorsk

Urals

3

Novo-Troitok

Verkhnly

East Siberia

Kazakhstan

Total

cj

Minimum

oT. Deposits vere estimated"9 utmetric tons. This esti-aatc did not include the deposit at Pcchenga, which vas acquired from FinlandI1.

not include the high-grade oreercent nickelnear Monchegorsk in the late thirties.

estimateounded figure taken from Table.

^1

The Russians liuvc not released any information on nickel reserves since thc late thirties other than to state new nickelhave been located, such as the new deposits along the Finnish border near These deposits mayart of theprobable reserves located near Pechenga, which were estimated90 tons of

Based on reports which indicate the discovery of new deposits and the large mineral potential of the USSR, total possible reserves of nickel in ores could* be as highillion tons.

C.

Stimulated by heavy war industry demand, the USSR is now the second largest nickel producer In the world, being exceeded only by Canada. During thehe USSR continued to develop its nickel deposits and to expand nickel plant capacities. The USSR currently is producing at an estimated rate ofofear, which is about one-third of Canada's rate, or equal to UOof US Importsickel.

It is evident that the expansion program will continue since the Soviet press has announced that5 plan for nickelcallspercent increase In terms of actual output based0 production05OQS of nickel.

Refined nickel first was produced in the USSRft at the plant at Verkhnly Ufaley. This plant continues to process the ore from the deposits in the Central Urals. ft the USSR was entirely dependent on imports ofituation which changed only slightly during the late thirtiei, because production at Verkhnly Ufaley was quite small. Current annual production at Verkhnly Ufaley is estimated atons of nickel. It is believed that this plant has undergone very little expansion, since the ore supply in the Central Urals is rather small. In addition to nickel, cobaltyproduct at this plant.

9 the USSR had built two additional refineries, one at Orsk and another at Monchegorsk. The initial production at these plants was quite small. Ofons of nickel which werein the USSRerkhnly Ufaley producedons. Plans called for the plants at Orsk and Monchegorsk to be the main producers of primary nickel, eachaximum capacity0

CSMJT

COO Ions ofear when completed. 2j/ The plant at Monchegorsk wan badly damaged by tho Germans during World War II, which delayed Soviet plans for expansion until the postwar period. Most of thc skilled workers and equipment had been evacuated to Orsk before the bombings, and the plant at Orsk became thedomestic source of refined nickel for the USSR during the war. With the restoration and expansion of refining capacity at Monchegorsk, these two plants presently produce more thanercent of the total nickel output In thc USSR.

With the discovery of large nickel deposits in the vicinity of Noril'sk ins, the Russians began toarge nickel-refinery in this area. The refinery was under construction, in partial operationnd completed 3 it was reported that the refinery at Noril'sk produced about one-third of the total nickel output in the USSR, orons. This production would indicate that the plant was producing considerably below its planned capacity, which0 tons of nickel per year. The development of the Noril'sk area had been retarded by abnormal clixtatic conditions and subsequently by lack of shipping vesselsWorld War II. Postwar progress In this area has been made possible by the supply of convict labor from the nearby MVD camps. ouble-track, ntandard-gage railroad was completed from Noril'sk to Dudinka, which is located on the yenisey River. Three months out of the year, large ocean vessels are able to reach Dudinka by the Northern Sea Route. At the present time there Is, evidenceailroad is being constructed from Vorkuta to Igarka and from Igarka to Noril'sk via Dudinka. The construction ofine will not only offer anroute for the exchange of goods between the Arctic section of East Siberia and the industrial regions of the USSR but'also will aid the explorationast areo believed to be rich in mineral resources. Because of transportation difficulties, exploration has been retarded.

The acquisition of the Pecbenga area by thc USSR from Finlandajor event in the history of thc Soviet nickel Industry because the USSR acquired both thc large nickel deposits in the area and the plant which had been started by the 'International This plant was.finally completed under German-Finnish cooperation and was capable of smelting0 tons of nickelear. During World War II the plant was partially destroyed, but it is now believed to have been completely restored and supplies the nickel refinery at Monchegorsk with nickel matte for refining. The estimated capacity of nickel smelters and the estimated capacity arid

production of nickel rcfincri.es in the USSR35 are given in Table h

The plants at >toncbegorsk, fforll'sk, and Orsk process overercent of the nickel ore of the USSR. Monchegorsk and Borll'sk not only arc subject to the rigorous climatic and arduousconditions but also are highly vulnerableilitary aspect. gW Monchegorsk is strategically weak because of itstu"the Finnish border, and Norll'sk, because of theof the rail and water transportation route which is openonths of the year. Because of its accessibility to year-round transportation and less vulnerable location, the nickel production at Orsk is probably the most important and most dependable Soviet source of supply.

The estimated nickel production in the USSR for tbe*5 is given in Table

Planned nickel production in the USSR during theallspercent Increase over0 production0 tons, or an increase0 tons. Distributed evenly over this period the plan could be accomplishedearly increase ofons at the existing plants. Expansion of these plants poses no technological problem, and the Soviet heavy machinery industry nowapable ofthc necessary equipaent for plant expansion, whereas in earlier expansion periods the USSR had to import foreign equipment. Shipments of ore processing, smelting, and refining equipment0 indicate that expansion was taking place at Monchegorsk, Orsk, andbe Soviet drive for self-sufficiency and their adequate reserves and existing facilities should assure fulfillment of5 planned productionons of nickel.

Ill- Satellites.

A. Czechoslovakia.

There are several small nickel ore deposits in Czechoslovakia located in the Erzgeblrge district of Bohemia and at Ceske These deposits have been idle for many years.

Tablefollows on* ollows on

-

till

Tab Lo 5

Estimated Nickel Production in the

M-tric Tor.*

28/

37

0

V

CO0

ooo

Product

figure is derived by interpolation.

Production figure is based5percent increase/

B. East Germany.

The only known nickel ore deposit in East Germany is located at Llchtensteinear Glauchau, in Saxony. The deposit has been under development since The nickel content of the, ore reportedly is The reserves have been estimated to be sufficient foroears of On thc basis5 planned production, these reserves would0 tons of nickel.

The smelting und refining of nickel ore in East Germany are carried out at three plants, located at St. Egldien, Freiberg, and Aue. An ore treatment plant and saelter are under construction at St. Egldien, near the deposit at Lichtcnsteln. The first furnace of thc smelter was scheduled to begin operation in Uponthe smelter will contain six The smelter will have sufficient capacity to treat some Imported ores as well us those

-

produced locally. The nickel matte produced by the smelter at St. Egirtien la further processed at Freiberg. Crude nickel from Freiberg is refined electrolytically at the nickel refinery at Auc. 2 the plant at Aueefining capacity ofnd it iR assumed that, this capacity will be increased by

Nickel reserves of the deposit at Lichtenstcin are probably not sufficient to allow for an expansion of production much beyond thc5 level- The possibility exists, however, that additional production can be achieved by importing concentrates and matte, possibly from the USSR. The estimated nickel production in East Germany for the05 is given in Table 6.

Table 6

Estimated Nickel Production in East

Metric Tons

1

Production

/

i

W'a/

a! Plan figure.

C- Poland.

w

Poland has several deposits of low-grade nickel ore, only one nich is considered to bc of industrial significance. This deposit is located at Szklary, in lower Silesia, an area taken under Polish administration. The nickel content of the oreercent. Inreserves were reported to bc sufficientears of operation at the prewar rate of/ This rate would be equivalent to reserves of0fnickel.

1 thc higher grade ores of the deposit at flxklary were exhausted, and, because of Che high cost of processing the lover grade ores, operations ceased. Operations vere resumed6 following the developmentore economical process for treating the lower grado ores. The Germans continued these operations until thc plant at Szklary was virtually destroyed In the latter stages of World War II.t7 the Polish government announced that the plant would be rebuilt and one furnace would be In operation byv3. t8plan called fortons of nickel. ft6/ econd fumuce was to be in operation, ft7/

The current Six rear, however, expressed the desire to attain asegree of national self-sufficiency as For this reason and because the deposit at Szklary contains the only workable nickel in Poland, it is probable that every effort will be mode to maintain the production of the plant at the highest posolble level.

Thc estimated nickel production in Poland for thet63 is given in Table 7-

Tuble 7

Estimated Nickel Production in Poland

Metric Tons

19ftS

b/

o7. Production estimates based on the plan figure. Estimates2 are derived by

b. Production goal of the Six Year Plan was expressed asercent offt_9/ Requirements vara reportedetric tons of/

-

D. CccuounlGt Chinu.

Camounlst China has two known nickel ore deposits, bothln Sikung Province. The nickel content of the ore ranges66 percent. Reserves are estimated atonn of nickel. Si/ The nickel content of these ores is too low to be exploited economically, and both mines arc believed to be inactive at the present time.

B. North Korea.

There are several nickel ore deposits in North Korea but only three of these deposits seem to be of industrial significance. These deposits are located at Ch'ongam-myon, Ich'on, and Uhsong-ni. The nickel content or thc ores at Ich'on and Unaong-ni is unusually high, but the reserves are believed to be small. The nickel content of the ores at Ch'ongam-myon is less

Nickel refining in North Korea was centered at the metals refinery at Hungnamhen the refinery was at/S Army inspection team that visted the plant inhen the area was under United Nations control, was able to discern from the ruins that it had been of fairly modem design and structure. Plant records revealed that production of refined nickel wus U9 tons5 tonsndons In the period froa January toj>/

There probably has been no nickel production in North Korea Future nickel production depends on the refinery at Hungnam being rebuilt and re-equipped. The US Army Inspection team recce-mended that nickel production be expanded to about doubleevel. Domestic ores were considered to be sufficient for this purpose.

IV. Soviet Bloc.

A.

Before and during World War II the USSR Imported considerable quantities of nickel from the Western world. TheBc imports amountedons0 tonsonsend-Lease shipments of nickel to the USSR during the wartlTlt5 totaled0 tons plus substantial amounts contained in finished end items such as tanks und The USSR has had

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no known nickel imports5 other than such quantities as nay have been diverted rrom the Satellites.

esult of the rapid expansion or nickel production, tlie USSR hadet exporter of nickel to thc Soviet Bloc as earlyJ. 1 the USSRons of nickelons to Additional exports were probably made to the other Satellites.

Some nickel Is still imported into the Satellites from thethe COCOM embargo on nickel which has been in effect sinceit is not possible to determine the amounts. With the

relaxation of allocation controls In the West, the Satellites willnow find it easier to procure nickel from non-Soviet Bloc sources in spite of the COCOM embargo.

Numerous instances in which Satellites have expressed ato pay Western sources several times the established world price for nickel is evidence that the USSR often fails to furnish thewith sufficient nickel to meet their demands. Other indications of nickel shortages in the Satellites include measures taken toother metals for nickel and the actual elimination of nickel frcea certain uses. The estimated nickel imports fron all sources by the Satellites for tbe period lcAfl3 is given in

The USSR is the only Soviet Bloc country whose nickelis high enough to allow exporting, and then only In smallto other countries. Most of tbe nickel exports go to theSatellites, especially to Czechoslovakia, East Germany, and Poland. ough estimate of the amounts imported by the Satellites can be made for the3 by assuming that all the imports for that year came from the USSR. Actually this figure could approximate the total Imports of nickel by thc Satellites because thc USSR does supply the Satellitesajor portion of their imported nickel.

As the industrialization of thc Satellites progresses, their demands Tor nickel will increase- Because'or limited nickel resources nickel productionhole will increaselower rate thanhe demand, and the Satellites will continue to be dependent on nickel imports. So long as the Satellites are denied access to Western nickel supplies, thc increased demands will place an additional burden on the nickel industry of thc USSR.

ollows on

-

In addition to exporting nickel to the Satellites, the USSR has made small shipments of nickel to Finland in exchange for essential equipment and in the latter part3 Masons of nickel to West Germany in part payment for

Because of its essentiality, particularly in time of war, theretrong compulsion on the USSR to stockpile nickel. 0 it uas reported that two nickel stockpiles One of0 tons of nickel, uas located on the outskirts of Moscow and owned by the Soviet Air Force, and the other,ons of nickel, was under the control of the Main Administration of State Material Reserves. It is reasonable to assume that other nickel stocks existed in the USSR at that time and are continually being built up.

There is no information available concerning nickel inventories in the Satellites- Since the Satellites, without exception, eitherno nickel at all or at best insufficient quantities for their own requirements, it seems extremely doubtful, that Satellite stockpiles exist or that Inventories ever exceed normal working levels.

Consumption and Requirements.

In the Satellites, annual consumption approximates the annual available supply, while in the USSR consumption is equal to theminus exports and additions to the stockpile. Because there is no information available on tbe amount of nickel stockpiled annually, this stockpiling is included in tbe amount actually consumed, and the combined entry is labeled apparent consumption. Thc estimated nickel supply and apparent consumption in the Soviet Bloc3 are 'given in

of minimum annual wartime requirements (l) to

maintain the production of essential military goods during the first year ofo insure that items in the hands of the armed forces are kept ln efficient operation, and (j) to maintain thc war-supporting industries and services is given in

"* ollows on* Tabicollows on p. SI.

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Table 9

Estimated Nickel Supply and Apparent Consumption in the Soviet Bloc3

Metric Tons

Country

onsumption 5/

Czechoslovakia Bant Germany Pol and

0

6co

oo

There is no information available on the nickel nupply in Albania, Bulgaria, Comauniat China, Hungary, North Korea, or Rucania.

stockpiling.

not include small amounts shipped outside tbe

is estimatedetric tons of nickel werend Typeirframes andnd VK-1AftOO metric tons are estimated for consumption byenergy program.*

V. Conclusions.

The USSR is endowed with extensive reserves of nickel ores and, if necessity dictates, they have the capability of expanding the rate of extraction.

The intentions of the USSR to stress thc development of thc nickel industry ore evident from the accomplishments of the Industry. The USSR has become the world's second largest producer of nickel, and its share of the total world production of nickel has risenercent toercent during the lastears. Relative to thc size of its economy, thc Soviet nickel supply compares favorably with that of the US.

* CIA estimate.

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Tabic 10

Estimated Hinlnum Annual Wartime Requirements of Nickel In the

Metric Tons

Requlrementfl

Military

Tankn and Self-Propelllng

Atomic

Industries

Machinery and Heavy

Electronic and Communlcationa

Scientific and Technical

Transportation

Chemical

Grand

The Satellites including Communist China produce lessthey need. Because of COCOM restrictions, the Satellitesto obtain nickel from the USSR, and this dependency causeson Soviet

The concentration and location of thc major nickel refineriesulnerability In cusc of war. One of the refineries is located near the Finnish frontier, and another is north of the Arctic Circle. Thus, as in World War II, the USSR could again be dependent for the most part on the production of the refinery at Orsk.

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Soviet Bloc: Principal Nickel Deposits ond Processing Plants

APPENDIX A

INPUTS INTO THE NICKKi, INDUSTRY IN THE USSR

1. Energy.

An Important Input for the nickel Industry in the USSR lo energy for converting the nickel area into metal. The source of energy in the USSR will be electric power or coal, depending on the location of the mines, smelters, and refineries. 5 planned production oftons of nickel will0 British thermal uniteof energy, divided among ore mining, smelting, and refining, as follows:

Mining.

The energy required for the extraction and preparationon of ore0 Based on an estimated average recovery of nickel equalercent of the minedillion tons or ore will be required to supply5 plan0 tons of nickel, The energy requirement for this mining is0tu).

Jh/

The smelting of ore in thc electric furnaces at Pecbenga during the first year of operation requiredtu. This same factor is used for all smelting operations because it Is believed to beof the energy required to smelt nickel ores of any composition ,Tfte eotlaatcd energy requirements of the nickel smelting plants in the USSR to fulfill5 planned production are given in

Nickel is usually refined electrolytlcally, and the processtu per pound of On this basis,5 planned production will require50tu).

* ritish thermal unit (Btu) la the quantity of heat required toound ofegree Fahrenheit. Tableollows on.

-

I

u.

7.- n

yEnergy Requlresent* of- - Plants

in Ine USS3

l*n

Estimated Annual

Typo or Capacity and Location Sasiting (Metric Ton*)

Monchegorsk

Pechenga

Electric

1 Hydro- Kandalnkchc elec-

10 trIc0 v gydro- Janiakoski

Orsk

Verkhnly Ufaley a/ Coal aod

0

Coal Orak Thermal-electric Power Plant

Sverdlovsk-Chelyabinsk Power Wotwork

Siberia

and

0 Coal Sarll'sk

Pover Plant

/

is tbe requirement of tho jtlunt at Hezh,

estimated capacity50 metric tons or nickel,production is eatimatedone- The Bseltora therefore willatercent capacity,0 Btu.

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2. Labor.

of the labor force at nickel smelters and refin-

eries In tne USSR is given in

Table 12

Estimated Labor Force at Nickel Smelters and Refinerie* in the USSRAs7

Region and Location Managerial Unskilled

Northwest

Pechenga

150

650

Rezh

Verftbnly Ufaley

East Siberli Norll'sk Total.

Uo

O.ftOO

Does not include workers involved in mining nickel ores.

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BLANK PAGE

APFZ'.DTX ii

WORLD NICKEL PRODUCT33

Table 13

(Metric Tons) Percent (Metric Tons) Percent

Canada

Caledonia

of South Africa

c/

d/

Germany

Other

of Mines estimate of peak production during World War II.

of Mines preliminary estimate.

he production from the deposit at Pechenga hasIn the Soviet production estimates.

estimates.

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BLANK PAGE

APPENDIX C

MKDIODOUXJl

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Theof arriving at tor amount of proved nickel reserves tn Ihe USSR is explained lnbove. Because of the lack ofit van not possible to estimate the total reserves at the present time. It is believed, however, that the minimum figure ofons,easonable estimate which Indicates the magnitude of nickel reserves ln the USSR end can be used in making certain observations regarding the nickel supply in the USSR-

Production estimates which are given in this report havelargely on reported annual increases in productionpercent. Por the early*here wereavailable, such as those put out by the AmericanCommerce TheO is the base year to which thefigures were applied,0 nickel production wasvarious sourcesons. Productionthe12 are estimates based on available 3 production was reported to have0 production,ercent0 1 production is an estimate obtainedroduction was reiwrted to haveercentof the preceding year,7 production is based on aIncrease over6 production. roductionto have0 tons. The production of thcyears0 wus obtained by Interpolation, as wasfor the1 The latter interpolationbased on Soviet plans to Increase production50

Information available on plant capacities and data from other intelligence sources have been used in conjunction with the reported percentage Increases to test their reliability. It is felt that these estimates are close to the actual production.

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BLANK PAGE

APPENDIX D

GAPS inRHCE

Although it is felt that the Intelligence information contained in thia report is in most respects reliable, many significantare evident.

Little direct post-World War II information pertaining to the specific capacities of the various nickel processing plants in thc Soviet Bloc Is available. This deficiency is especially true of the plants at Noril'sk, Orsk, Verkhnly Ufaley, and Pecbenga in the USSR; at Szklary in Poland; andp in East Germany. Information9 is better on Monchegorsk, but lt is by no means complete. Details concerning developments9 are almost completely lacking. The most serious gap in Intelligence information regarding the various combines is the postvar'expansion of smelting andcapacity. For example, it Is not knovn definitely whether or not refinery has been built at Pecbenga.

Gaps in Intelligence also exist on developments in ore processing practices and techniques. Specifically, it vould be of advantage to knov vhat measures have been taken to exploit more fully thelarge deposits of complex nickel-bearing ores In the Southern Urals. More information is desired on tbe methods and processes of treating the lov-grade ores of Poland and East Geraany.

Soviet Bloc trade statistics on nickel are weak. More complete information is needed on the nickel imports to tbe Satellites from both the West and tbe USSR.

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Original document.

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