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RCED-83-101 1 (1983-03-08)

handle is hein.gao/gaobabmwt0001 and id is 1 raw text is:        0STA.

                    UNITED STATES GENERAL ACCOUNTING OFFICE
                               WASHINGTON, D.C. 20548


 RESOURCES, COMMUNITY,
AND ECONOMIC DEVELOPMENT
     DVISION
     B-210543                                          MARCH 8, 1983




     The Honorable John W. Warner
     Chairman, Subcommittee on Energy
       and Mineral Resources
     Committee on Energy and Natural
       Resources                                              120940
     United States Senate

     Dear Mr. Chairman:

           Subject: Surface Oxidation of Cobalt Acquired for the
                     National Defense Stockpile Does Not Adversely
                     Affect Its Use (GAO/RCED-83-101)


           During a June 29, 1982, hearing before your subcommittee,
     you asked us to examine the basis of a statement by a former
     commissioner of the General Services Administration's (GSA's)
     Federal Property Resources Service concerning oxidation 1/ of
     cobalt purchased from Zaire in 1981 for the National Defense
     Stockpile. It was reported that, at the June 1982 assembly of
     the Tantalum Producers International Study Center, the former
     commissioner stated that the cobalt met the purchase specifica-
     tions in manufacturing, but oxidized by the time it arrived
     in the United States, implying that the cobalt no longer met
     the purchase specifications.

           Cobalt is a strategic and critical mineral. It is used as
      a raw material in a variety of applications, the leading ones be-
      ing jet engines, chemicals, and tools. Production is concentrated
      in a small number of countries and is generally a byproduct of
      other mining and refining operations.

           The objective of our review was to determine the cobalt's
      quality, the manner in which the specification had been set,
      and whether industries needing the cobalt for national defense
      production could use it. We interviewed GSA and industry
      officials and reviewed GSA records regarding purchasing and
      testing for this acquisition.



      1/Oxidation is the chemical process whereby a material combines
        with oxygen. In this instance, the cobalt gathered oxygen
        from the air, similar to the way iron rusts.

                                                           (008482)


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