MINING

Press, Volume LXXI, Issue 21363, 4 January 1935, Page 11

MINING

TIN COMPANY'S DIVIDEND A dividend of 6d a share has been declared by Kuala Lumpur Tin N.L., payable on January.2s. FUTURE OF MOUNT LYELL NEED FOR REDUCING COSTS "The existence of the company as a mining undertaking depends on our ability to reduce costs or, alternatively, as a factor completely beyond our control—an improvement in the price of copper," said Mr Colin Templeton, chairman of directors, at the annual meeting in Melbourne of the Mount Lyell Mining and Railway Company, Ltd. Mr Templeton said that the last year' saw a continuance of low prices for copper and unexpected difficulties arising from insufficient rainfall. The cost of producing copper was much higher than for some time past. If it were likely to cost £53 a ton to produce copper in future, there would be no justification for carrying on operations, but the directors expected that costs would be reduced to less than in 1033, which worked out at £46.34 a ton of copper. The company was still faced with claims for increased wages and improved working conditions, but it must be realised that any material increase in labour costs under the conditions now existing would seriously jeopardise the continuance of the company's activities at Mount Lyell. There were few indications of an increase in the price of copper, Mr Templeton said. The expansion of production now being undertaken in Africa, where enormous deposits of comparatively high-grade ore were available, was not a hopeful feature. Copper from Rhodesia was being produced and delivered on the London market at a cost of less than £2l a ton.

WOOL SALE PROSPECTS

CHEAPNESS OF CHOICEST SORTS

Winchccmbe, Carson, Ltd., the Sydney wool brokers, in their fortnightly report, state:—The well-distributed competition which characterised the closing wool sales of 1934 supplies good reason to anticipate a ready demand at opening auctions of 1935. Indications do not point to rising values such as were experienced 12 months ago, when January catalogues in Sydney averaged 20 l d per lb, but the fears have been dispelled that demand would not be sufficient to absorb the supplies available. The experience of cheaper goods stimulating sales is again being seen. Of late, business has shown signs of expansion on the Continent. In Germany the mills have continued to be well occupied. Trade in that country has been better than in 1933, retail business generally in the June-Sep-tember quarter being 12 per cent, higher than 12 months before. Australia has experienced a much curtailed volume of orders for the sheep's staple from that quarter, but German consumers have not been doing without supplies. The total imports of wool, tops, yarns, etc., from January to September last were only 2 per cent, less than in 1933. As a matter of fact, German stocks of tops increased slightly during October. European Purchases Circumstances have compelled Germany to search the world for requirements, and to procure them in quarters where compensating business in goods can be obtained. South Africa, the Argentine, and other European countries have found means of selling her raw material. Even France has sent her bulky quantities, selling her among other lots, 10,000 bales of old stock South American wool by means of a barter arrangement. The absence of usual purchasing for Germany in Australia was largely responsible for the fear that the Commonwealth might not be able to dispose of this season's clip within the season. If she buys in other quarters she is reducing the supplies available in those directions for other consumers and compelling them to seek raw material elsewhere. It is satisfactory to know that, in spite of the production of "wolstra," Germany wants wool. Her consumption is still a factor in the world position, though it is a diminished direct influence at Australian auctions. The Commonwealth is losing, however, because German millmen are transferring porI tion of their consumption to other types, and the classes of wool Australia grows are consequently not commanding normally widespread competition. Unusual Feature One of the most unusual features of this season's sales has been the lack of normal demand for superfine, speciality merino fleece wools. Most wools are dearer to-day than during the depression years from 1930-31 to 1932-33. The highest price secured for merino fleece in Sydney this season is 20d, and some excellent lines have been offered. The highest class more or less luxury trade for which speciality lines are bought is not prosperous. Interest rates are low and the incomes derived from investments by the wealthy are much diminished. That is one contributing factor to the unusual position. Sooner or later the situation in that respect will alter, but meantime it is a most exceptional phase that the really choicest, most attractive fleece for which this country is renowned should be relatively so cheap. The Sydney sales reopen on January 7. Between that date and April 11. 493.500 bales are to be offered on the market, which will bring the season's offerings to that time to approximately 1,000,000 bales. LONDON TALLOW SALES (UNITED P::ES3 ASSOCIATION—-BY KLECTEIC TELEGTUPH—-COPYHIGHT.) 1 LONDON, January 2. J At the tallow sales 484 casks were offered and 330 sold, mostly a shilling dearer. Quotations:—• Mutton, fine 22s 6d, medium 19s 6d. Beef, fine 23s 3d, medium 19s. The Bank of New Zealand has received the following advice from its London office, dated January 2:— There is a good demand in the London tallow market. Current quotations are:—Good mutton 21s 6d to 22s per cwt; good beef, 21s 6d to 22s per cwt; good mixed, 21s 6d to 22s per cwt; gut, 18s to 19s Cd per cwt.