Shoshone News Press
By PAUL BORING
Staff writer
OSBURN — An Osburn-based mining company is using a unique clay to leave its imprint on a diverse range of professional fields.
Atlas Mining Company, a staple in the Silver Valley since 1924, recently began mining rare halloysite clay at its Dragon Mine in Juab County, Utah. The clay has historically been used in fine china and porcelain, and as a catalyst in filtering systems for oil refineries. Atlas Chief Executive Officer and President Bill Jacobson acquired the property almost under duress.
“We’re underground miners,” Jacobson said. “We’re underground, hard rock miners and that’s what we’ve done in the Silver Valley. We didn’t even want to look at this property. Finally I was talked into going down and looking at it. We looked at it, and then we found out the value of the stuff. We found out what it looked like and we said, ‘You’d have to mine over one ounce rock (one ounce of gold per ton) in order to make the same kind of money. And you can sell this whole ton of clay and not have to worry about waste or residual or any major environmental processing problems. This would be better than gold mining.’ That’s how we looked at it.”
Atlas initially sent samples of the clay to existing users to gauge interest in their specific product. At the time, the largest producer of the clay resided in New Zealand.
“Everyone who tested our clay and looked at our clay came back to us and said, ‘Your clay is so much better and so much superior to what we’re getting out of New Zealand right now. Yes, we’ll buy it. You start mining it, we’ll start buying it,’” Jacobson said.
Mining activities have ramped up in the last month, the Atlas president said.
“We’re now bringing clay out of that clay bed to the plant and we’re processing it,” Jacobson said.
Aside from its known uses, Jacobson soon learned that the clay had other widespread uses that would broaden the president’s knowledge of the peculiar white substance. Once the clay was placed under a microscope and scrutinized, its unique microtubular make-up became apparent. Geologists postulated that a volcanic thrust under the clay bed rolled it over like an ocean wave and gave the clay its rare microscopic qualities.
“We think that the rolling of the bed that took place through that volcanic reaction is what caused the microtubular aspects of the clay,” Jacobson said.
Once the clay’s microtubular quality became known, the interest mounted from a variety of product manufacturers. NanoDynamics, a firm utilizing the science of elements one micron or smaller, have signed on to purchase over 5,000 tons of the clay. Jacobson learned that the hollow and tubular clay could be injected with nearly any substance, making the clay invaluable. The tubular shape also made the clay superior for its original uses in porcelain and fine china because of its unique structural soundness.
“The whole world could open up,” Jacobson said. “This is really getting big. We’re excited.”
A technology link center at Montana State University, which has a contract with the U.S. Department of Defense to find commercial uses for microtubular materials, studied clay from the Dragon Mine and once again, the ball started rolling. Jacobson learned the clay could be injected with a material that would fight off barnacles and fungus, making the substance an asset to the U.S. Navy and its vessels.
“This thing could just blossom,” Jacobson said. “And there could be even more uses out there. Right now we’re in the driver’s seat.”
The clay can also be used in everything from ink jet printers to fertilizer and insecticides to anti-mold house paint. Jacobson said that every day brings new phone calls from unexpected companies interested in the clay.
Mere years ago, Jacobson formulated a clear plan for Atlas Mining Company. He envisioned a company that would not be content to simply remain a small mining outfit, but branch out into other areas such as contracting and give back to its roughly 1,700 stockholders. He also wanted pursuits that would have no adverse environmental impacts.
“The clay property fits right into that,” he said.
Jacobson credited Atlas employees for helping mold the company into the well-respected business it has become.
“We have the contracting mentality and we have amazing people,” he said. “That’s what makes up Atlas. And we have that entrepreneurial attitude. That’s just the way we are.”
