Mining 'Spies' Discussed

Press, Volume CIX, Issue 32217, 9 February 1970, Page 15

Mining ' Spies ' Discussed

(N.Z. Press Assn—Copyright)

SYDNEY, Feb. 8. Unidentified British companies who paid large sums for advance information on mining discoveries in Australia were a possible explanation for sudden price rises in Australian mining stocks on the London Stock Exchange, the “Sunday Telegraph” newspaper said today. The Sunday newspaper’s article said that industrial “spies” were being paid huge sums for their inside information by Australian, British, American and Canadian investment companies and private businessmen. It said that one unnamed Australian company alone was believed to have paid out almost $250,000 in the last year for information. The article, which carried no byline, quoted “a leading Sydney geologist” as saying that there were “spies” in all major mining areas in Australia. i

The “spy” . . . could be the fellow in the bar who looks like a "soak,” the unnamed geologist was quoted as saying. “But he has probably swallowed a glass of olive oil to keep sober and listen to talk that might prove valuable,” “Or he could be a rouseabout working in a mining camp. “Most mining companies think their security is unassailable, but you can’t stop fellows talking. "It’s pretty rough, really, because this kind of thing is seized upon by the big investment companies.' “They hit the market when its right in London, then they do the same here, and vice versa,” the geologist said. The geologist said that not all the spying was on the level of hotel bars and fringe workers in mining camps. Big Money “It involves big money and therefore some skilled personnel must be a party to it in some cases.” The Sunday tabloid article said: “British companies, in particular, are said to be using the. spying method to gain an advantage on the share market here.”

“This could explain the intriguing manner in some cases where Australian mining shares have jumped sharply in London before any announcements have been made to Australian stock exchanges.” The article also said that some Canadian and American groups were reported to be making keen use of the system and many big individual Australian investors had mining spies on their pay-roll. The article reported an advertisement in a Perth newspaper which said: “A British businessman” would “pay $lO,OOO or 10 per cent of profits made, whichever is the greater, to any mining employee giving DEFINITE ADVANCE information leading to the successful doubling at least of the investment on the Stock Exchange.” The advertisement said that the businessman had $lOO,OOO to invest and replies, to a post office box number, would be treated in strictest confidence. “Greatly Exaggerated” The chairman of the Sydney Stock Exchange, Mr J. H. Cooper, said that the newspaper report “appeared to be greatly exaggerated.” “It is fairly common know-

ledge that some overseas groups do have people on the fields looking for advance information, but whether they are paying big money for this is something I do not know. “I think most reputable overseas groups would not be prepared to pay money for this kind of information,” Mr Cooper said. Newspapers today predicted that the Government would soon step into Australia’s mining boom. The “Sun-Herald,” said that the Government would set up a National Development Corporation and would probably announce details on the opening day of Parliament next month.

“The decision (by Cabinet) last week marks a fundamental break with liberal party traditions in that it will put the Government into business,” the Sunday newspaper said. The “Sunday Telegraph” said that the major object of the corporation would be to use the borrowing status of the Commonwealth of Australia to secure loans at favourable rates on overseas markets, enabling it to re-lend locally at reasonable rates for mining and other industrial development