Right Hon. C. D. Howe (Minister of Trade and Commerce):
Mr. Speaker, I wish to make a statement with regard to cobalt ore.
In order to stimulate further production of cobalt to meet future defence and essential requirements for the metal, the Canadian government will purchase northern Ontario concentrates for a period of three years on the following basis:
For ores and concentrates containing 10-11-99 per cent cobalt-$1.35 per lb. of cobalt contained; containing 12-13-99 per cent cobalt-$1.40 per lb. of cobalt contained; containing 14 per cent or over cobalt-$1.45 per lb. of cobalt contained.
This incentive price schedule will be posted immediately by the Deloro Smelting and Refining Company, acting as buying agents for the government, and that company's smelter facilities will be used to convert such ores and concentrates into metal to establish a Canadian emergency stockpile.
The new price schedule represents an increase of approximately fifty cents per pound of metal. The ores and concentrates shall be purchased by the Deloro company on the basis of assay determinations by the Temiskaming testing laboratory at Cobalt, Ontario, and in minimum shipments of 5-ton lots. The silver content of such shipments will be paid for on the basis of Deloro company's customary tariff.
Cobalt metal is in short supply today. In a defence program cobalt plays a vital role for such essentials as jet blades, tool steels, alnico magnets and tungsten carbide.