COMMERCIAL New Mining Moves By Overseas Interests

Press, Volume CIX, Issue 31993, 21 May 1969, Page 19

COMMERCIAL New Mining Moves By Overseas Interests

The exploitation of Australia’s booming minerals industry by overseas interests shows no sign of tailing off.

The latest developments are a new approach from the Japanese coal industry for more coking coal, and the announcement of further expansion in Australia by Union Miniere S.A., the large Belgian miner.

The “Australian Financial Review’s” Tokyo correspondent (Max Suich) reports that a top level technical mission from the Japanese steel industry will fly to Australia this month to take an exhaustive six-week-long look at coal resources in New South Wales and Queensland. This is the second such mission to visit Australia in 10 months and is an indication of the industry’s compelling interest in Australian coal. Three factors lie behind the visit of the technical team: The concern of the Japanese steel industry about the ability of world coking coal supplies to meet the demand which the industry’s expansion plans will generate over the next five years. The hopes of the steel industry that Australia, with its abundant resources in the Bowen Basin, in Queensland, and the older fields of New South Wales will be able to marshal the capital, technology, labour and management to meet a substantial part of this new demand. Fears concerning the failure of a number of Australian shippers to meet present contract demands—and the consequent doubt about what the Australian performance will be in the future.

The industry’s dependence on Australia for coal is already very substantial. Union Miniere SA, the giant Belgian mining group which

established an office in Melbourne 12 months ago and is already participating in two exploration programmes, is on the threshold of further expansion in Australia. Over the last year the local subsidiary, Union Miniere Australia, Ltd, has concluded prospecting and mining development agreements with Newmont Pty, Ltd, and La-

porte Mining (Australia) Pty, Ltd. In the parent company’s annual report, to be presented to the annual meeting in Brussels on Thursday directors say a third survey agreement, with other partners, is on the point of conclusion. “Contacts have been made with a number of other important groups which could lead to similar agreements,” the report adds. The latest balance sheet shows that at December 31 it had the equivalent of sl36m in cash and short-term investments.