World resources of cobalt appear ample for the foreseeable future; however, political and economic events have caused concern over the availability and reliability of an uninterrupted supply. Because of this concern, the U.S. Congress requested that the U.S. Bureau of Mines initiate a study of the flow of cobalt in the economy that would delineate and quantify the production areas where metal values are lost. As a result, the Bureau has developed a computerized commodity flow model. A major attribute of this model is that it is amenable to updating as supply, demand, and/or production data change. This report follows the flow of cobalt through its metallurgical and chemical applications and highlights areas where significant losses occur due to downgrading, export, or disposal. The study indicates that about 4,300,000 lb of cobalt-bearing materials are lost each year, representing 24 pct of U.S. domestic demand.