SODA ASH (Data in thousand metric tons, unless noted) Domestic Production and Use: Five companies in Wyoming and one in California composed the U.S. soda ash (sodium carbonate) industry, which was the largest in the world. The six producers, with a combined annual nameplate capacity of 11 million tons, operated at 89% of nameplate capacity. Sodium bicarbonate, sodium sulfate, potassium chloride, potassium sulfate, borax, and other minerals were produced as coproducts from sodium carbonate production in California. Sodium bicarbonate, sodium sulfite, sodium tripolyphosphate, and chemical caustic soda were manufactured as coproducts at several of the Wyoming soda ash plants. The total estimated value of domestic soda ash produced in 1995 was $750 million.1/ The reported distribution of soda ash by end use was glass, 51%; chemicals, 22%; soap and detergents, 13%; distributors, 5%; miscellaneous, 3%; and pulp and paper, water treatment, and flue gas desulfurization, 2% each. Salient Statistics--United States: 1991 1992 1993 1994 1995e/ Production2/ 9,000 9,380 8,960 9,320 9,800 Imports for consumption 134 72 89 79 80 Exports 2,730 2,960 2,800 3,230 3,600 Consumption: Reported 6,280 6,320 6,310 6,240 6,280 Apparent 6,460 6,360 6,350 6,260 6,280 Price: Quoted, yearend, soda ash, dense, bulk, f.o.b. Green River, WY, dollars per short ton 98.00 98.00 98.00 105.00 105.00 F.o.b. Searles Valley, CA, same basis 123.00 123.00 123.00 130.00 130.00 Average sales value (natural source), f.o.b. mine or plant, same basis 84.18 80.93 74.34 70.44 76.00 Stocks, producer, yearend 234 371 274 203 200 Employment, mine and plant 2,800 2,800 2,800 2,800 2,800 Net import reliance3/ as a percent of apparent consumption E E E E E Recycling: There is no recycling of soda ash by producers; however, glass container producers are using cullet glass, thereby reducing soda ash consumption. Import Sources (1991-94): Canada, 99%; and other, 1%. Tariff: Item Number Most favored nation (MFN) Non-MFN4/ 12/31/95 12/31/95 Disodium carbonate 2836.20.0000 1.2% ad val. 8.5% ad val. Depletion Allowance: 14% (Domestic), 14% (Foreign). For natural only. Government Stockpile: None. Events, Trends, and Issues: In February, a large section of one Wyoming mine collapsed and generated a seismic event that had a 5.2 magnitude on the Richter scale. The accident temporarily resulted in a short-term supply disruption that was soon overcome. The cause of the catastrophe was still under investigation by yearend. In April, the European Union Commission issued provisional antidumping duties on imports of U.S. soda ash after a 2-year investigation. The duties ranged from 0% to 14.3%, depending on the producer. European glass manufacturers and U.S. soda ash producers lobbied the Commission to reduce or rescind the duties. In October, the definitive duties that replaced the provisional ones were lowered ranging from 0% to 8.9%. Furthermore, the duties will be reevaluated after 1 year rather than the customary 5 years. Despite this favorable ruling, U.S. soda ash demand was forecast to remain strong throughout 1996 without any significant exports to Europe. Prepared by Dennis S. Kostick, (703) 648-7715. SODA ASH Because of strong export sales and increased domestic soda ash consumption in the flat glass, chemical, and pulp and paper sectors, the industry raised its off-list price of soda ash by $15 per short ton, effective July 1. Several small accounts and some quarterly contracts were the primary targets for the action. Larger buyers with long-term contracts that are negotiated by yearend may have to pay more for their soda ash in 1996 because supplies may be limited due to increased demand. The outlook for soda ash through 1996 is extremely favorable. Opportunities for additional shipments to Europe appear optimistic, beginning possibly as early as 1997, as European soda ash demand continues to grow. World Production, Reserves, and Reserve Base: Production Reserves5/ 6/ Reserve base6/ Natural 1994 1995e/ United States 9,320 9,800 7/ 23,000,000 7/ 39,000,000 Botswana 140 100 400,000 NA Chad NA NA 7,000 NA Kenya 245 250 50,000 NA Mexico -- -- 200,000 450,000 Turkey -- -- 200,000 240,000 Uganda NA NA 20,000 NA Other countries -- -- 260,000 220,000 World total, natural (rounded) 9,700 10,200 24,000,000 40,000,000 World total, synthetic (rounded) 21,000 21,000 -- -- World total (rounded) 31,000 31,000 -- -- World Resources: Soda ash is obtained from trona and sodium carbonate-rich brines. The world's largest deposit of trona is in the Green River Basin of Wyoming. About 47 billion metric tons of identified soda ash resources could be recovered from the 56 billion tons of bedded trona5/ and the 47 billion tons of interbedded or intermixed trona and halite that are in beds more than 1.2 meters thick. About 34 billion tons of reserve base soda ash could be obtained from the 36 billion tons of halite-free trona and the 25 billion tons of interbedded or intermixed trona and halite that are in beds more than 1.8 meters thick. Underground room-and-pillar mining, using a combination of conventional, continuous, and shortwall mining equipment, is the primary method of mining Wyoming trona ore. The method has an average 45% mining recovery, which is higher than the 30% average mining recovery from solution mining. Improved solution mining techniques, such as horizontal drilling to establish communication between well pairs, could increase this extraction rate and enable companies to develop some of the deeper economic trona. Wyoming trona resources are being depleted at the rate of about 15 million tons per year (8.3 million tons of soda ash). Searles and Owens Lakes in California contain an estimated 815 million tons of soda ash reserves. There are at least 62 identified natural sodium carbonate deposits in the world, some of which have been quantified. Although soda ash can be manufactured from salt and limestone, both of which are practically inexhaustible, synthetic soda ash is more costly to produce and generates environmentally deleterious wastes. Commercial mining of nahcolite is presently being done by one producer in Colorado, and two other companies are trying to obtain financing for development of competing nahcolite projects. None of the ventures are associated with oil shale mining or with dawsonite recovery. Substitutes: Caustic soda can be substituted for soda ash in certain uses, particularly in the pulp and paper, water treatment, and certain chemical sectors. Soda ash, soda liquors, or trona can be used as feedstock to manufacture chemical caustic soda, which is an alternative to electrolytic caustic soda. e/Estimated. E Net exporter. NA Not available. 1/Does not include values for soda liquors and mine waters. 2/Natural only. 3/Defined as imports - exports + adjustments for Government and industry stock changes. 4/See Appendix B. 5/The reported quantities are sodium carbonate only. About 1.8 tons of trona yields 1 ton of sodium carbonate. 6/See Appendix C for definitions. 7/From trona, nahcolite, and dawsonite sources. Mineral Commodity Summaries, January 1996