Hamersley agrees to lower orders

Press, Volume CXII, Issue 32860, 8 March 1972, Page 20

Hamersley agrees to lower orders

(N.Z.P.A.-Reuter —Copyright;

MELBOURNE, March 7

Hamersley Holdings, Ltd, has agreed to more cuts in shipments to Japan in the year to April, 1973, after discussions with Japanese steel mills, the directors have announced.

Because of the difficulties facing the Japanese steel industry. Hamersley had been asked to accept total cuts in 1972 amounting to about 6 per cent below minimum contractual tonnages, they said. “The mills have given an assurance that they will use their best efforts—when the steel industry revives, to allocate sufficient tonnage to Hamersley to commission and operate the Paraburdoo mine, recognising the large investment involved and the potential of this orebody for their future iron ore needs,” the directors said in their statement.

Hamersley late last year confirmed persistent rumours that the start of operations at the sloom Paraburdoo mine, initially timed to begin next month, would be deferred indefinitely.

The Japanese mills had offered to meet the company again later in the year, when the situation for 1973 would be clearer. Details of possible

arrangements for 1973 would then be discussed. In the last year, Hamersley shipped 20.4 m tons of ore, about 15m tons going to Japan. The company was expected to ship between 25m and 28m tons this year, and more than 30m tons in 1973. Conversion issue 1.C.1. Australia, Ltd, is making a cash and conversion issue of s6m debenture stock to existing holders of shares, debentures, and notes. This issue is to replace s6m, 4J per cent debentures which mature on May 31. The rates of interest for the new issue will be: 7.2 per cent for 10 years; 7.7 per cent for 20 years. Holders of the maturing debentures may convert all or part of their holdings into debenture stock of the new issue, and will have prior rights to April 17.— (P.A.)