IRON ORE

Evening Post, Volume CXXIII, Issue 58, 10 March 1937, Page 9

IRON ORE

SUPPLIES FOR JAPAN

YAMPI SOUND PROJECT

LOAN OF CAPITAL

(From "The Post's" Representative.) • ■ ■ SYDNEY, March 6.' The world shortage of steel has given added interest to the plans-of the Anglo-Australian company formed to work the iron ore deposits at Yampi Sound, Western Australia, on capital lent by the Nippon Mining Company, of Tokio. The Japanese have contracted to take the whole output of the mine if the operating company provides the plant and machinery. It is estimated that between 500 and 600 Australians will be employed in the enterprise. Yampi Sound is the channel . between the mainland and Cockatoo Island, and lies between Collier Island and King Sound, at the head of the Buccaneer Archipelago, 150 miles north-east of Broome. The islands have large deposits of ironstone, the deposits on Koolan and Cockatoo Island alone having been calculated to contain nearly 100,000,000 tons. The first application for leases of part of •the deposits was made in 1907. Certain leases were granted then, and in the succeeding years, but attempts to interest English capital were unsuccessful. Mr. Harold Buckley' acquired the leases in 1932. In October, 1934, permission was given to Japanese experts to inspect the deposits, and later Sir James' Connolly acquired an option over Mr. Buckley's leases and a temporary reserve over the balance of Koolan Island, and his interest was taken over, late in 1935, by H. A. Brassert and Company, of England, who have now formed the Australian operating company. IMMENSE SCOPE OF Koolan Island is one of the world's largest and richest iron ore deposits. Experts have estimated that there are 76,550,000 tons of iron ore above high water mark, and millions more tons of ore below sea level. Yampi Sound is a splendid natural harbour. Koolan and neighbouring islands are all some hundreds of feet in height, and rise, almost sheer from the sound. Kooland'lsland is seven miles long, with a maximum breadth of three miles. In some places the iron ore seams extend for a depth of 600 feet. Some years ago an analysis of iron ore samples showed between 92 and 97 per cent, of ferric oxide, and practically none of the two most harmful ingredients of ironstone, sulphur and phosphorous. Three experts from a Japanese iron company will arrive in Sydney on March 18 to endeavour to make arrangements about Yampi Sound ore. Late last year a party of Japanese experts endeavoured without success to find iron ore deposits north of Yampi Sound. They chartered .an auxiliary schooner, and in a five weeks' cruise, travelled 530 miles north of Broome to Vansittart Bay. H. A. Brassert and Company's leases are held under the Western Australian Mining Act for 21 years, with the right to apply for renewal. The leases were granted subject to the company's compliance with certain labour conditions. It is stipulated, for example, that work should proceed on the leases every day by British labour at the rate of at least one man for every 12/ acres. The company pays 5s an acre a year. IN THE EVENT OF WAR. The Government of Western Australia has no power to cancel the leases of any contract in the event of war, but the Japanese experts' interest has raised the question of Commonwealth powers over the export of iron ore, or over leases, in the event of war or any other situation which might make intervention imperative. Britain or Australia has first call on any ore produced in .this, country during peace or war. The Commonwealth Government has power, under Section 112 of the Customs: Act,. 1901-34, to issue regulations in: time of peace, or a proclamation, in ;the event of war, prohibiting the export of any goods which are capable 'of being used for any war purposes. . . ' It is considered in official quarters •iii Canberra that supplies of iron-and iron ore for all Imperial purposes from ,existing sources are more than adequate and that any shortage in Britain can' easily,,be adjusted.through, the ordinary ■ channels of commerce. The official view in.. Canberra' is that any effort to restrict: Japan's access to the iron deposits-of Yampi Sound'would be dangerous, "as 'it would' strengthen Germany in her claim for the restoration of colonies by enabling her to demonstrate that the Empire was restricting access to the natural resources of the Dominions. Moreover, as one of Japan's chief sources of iron at present is British Malaya, and since the British Colonial Office has made no effort to' restrict purchases by Japan j-i that colony, it is regarded as evident that the British Government • agrees with the policy of the Commonwealth that restrictions should not be imposed on foreign customers. The suggestion that the Yampi deposits are required by Japaij for the manufacture of armaments is not believed in official quarters. It. is pointed out that tine industrial building and engineering developments in Japan have been so great that they have necessitated an immense expansion of raw iron and ore'purchases.