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National Defense Stockpile: Disposal of Excess Zinc

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Report Type Reports and Testimonies
Report Date Nov. 7, 1996
Report No. NSIAD-97-30
Subject
Summary:

The American Zinc Association contends that the Defense Department's plan to sell excess zinc from the National Defense Stockpile will disrupt the usual markets for this strategic material. GAO found, however, that the government's determination was sound and that the military has policies and procedures in place to avoid unduly disrupting the zinc market. Specifically, it has publicized its policy on the timing of sales, amounts to be sold, and relation of sales prices to market prices; provided plans to the appropriate congressional committees for approval; sold less zinc than it was authorized to sell; and strived to sell at prices close to commercial market prices. Zinc is commonly used for everything from galvanizing to producing the penny. As of March 1996, the military has nearly 300,000 tons of slab zinc valued at $300 million stored at 15 facilities in nine states.

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