BIG CONTRACT.

Auckland Star, Volume LXX, Issue 306, 28 December 1939, Page 3

BIG CONTRACT.

MOUNT LYELL COPPER.

SUPPLIES FOR BRITAIN

WORTH £:539,.VX) A YEAR

A contract to supply copper to the British Government has been secured 'by the Mount Lyell Mining and Railway ( oinpany, Ltd. The quantity involved is a maximum ot 7000 tons per annum, and tin' price £48 10/ sterling per ton, wk'li provision for adjustment according to costs. Thus the maximum gross value of the contract is £339,000 sterling per annum over £400.000 in Australian currency. In making this announcement at the company s annual meeting in Mel"""nc. the chairman of directors. Mr. • . Holmes Hunt, said that Empi re properties can produce more than .MX) 000 tons ot copper a year. The whole' of tins is not absorbed by Empire countries. <.reat Britain, the:eforn, tan obtain all the copper needed for ordinary uses and munitions from Empire sources. In consequence. it is unlikely that there will be a repetition of the very hiirh prices paid for the metal dining rhe last war. "Indications are," he said, "that all the copper .Mount Lyell can produce should rcaclil.v hnd its way into consumption lc/r some time the local market has absorbed practically the whole Australian output: ot refined coppcr. The demand lor industrial an<l defence pui poses exceeds the rate of production.'' Hhe activities of the company this year would again l>e directed to further development and economical working of low-grade deposits. They would shortly 'be in an even stronger position wifii regard to plant and equipment than ttiev wero a year a«o. With additional plant available they would be better able than 5° malntiain copper production at 1.1.0W tons a year oven from ore of a lower grade.