B.H.P. Steel Output Should Be Record

Press, Volume CVI, Issue 31343, 13 April 1967, Page 17

B.H.P. Steel Output Should Be Record

(N.Z. Press Association—Copyright) MELBOURNE, April 12. Broken Hill Proprietary Company, Ltd., should produce a record 61 million tons of steel ingots in the current year, the former managing director and a present director (Mr Norman Jones) said. This compares with 5,548,842 tons produced in 1965-66.

Mr Jones, addressing a legacy luncheon, said the total output would comprise 3 l/12m tons from Port Kembla, 2m tons from Newcastle and 750,000 tons from Whyalla.

He said the iron-ore -discoveries in Western Australia had represented a revolution in the steel industry. As a result Australia was now placed fifth in the world in the magnitude of its iron ore reserves.

Mr Jones said that obtaining mining leases today was a matter of bartering. The establishment of steel plants was usually a condition of a company being guaranteed a security of raw material supplies.

Once upon a time mining leases were sacrosanct but now things were entirely different. Capitalisation Spurred by gas, oil and iron ore developments, shares in the B.H.P. yesterday touched 7 dollars before slipping back a couple of cents still giving the company the highest market capitalisation in its history, the “Australian Financial Review” reported. Yesterday’s top price of 7 dollars compares with what is generally regarded as the previous historic high of 8 dollars in May, 1961, but allowing for two cash rights issues since then yesterday’s price would have been equivalent to 8.60 dollars six years ago. Market Rise B.H.P.’s market capitalisation at 7 dollars a share equalled 904.38 m dollars compared with capitalisation in May 1961, of 772.76 m dollars. The current value represents 9 per cent of the total equity capitalisation on the Sydney Stock Exchange.