MOUNT MORGAN

Evening Star, Issue 19919, 16 July 1928, Page 1

MOUNT MORGAN

MINE TO BE REOPENED SOUTHERN FINANCIERS' VENTURE Press Association—By Telegraph—Copyright BRISBANE, July 16. (Received July 16, at 9.40 a.m.) A southern group of financiers and mining men announce their intention of reopening tho Mount Morgan mine, tho capital for which will not exceed £250,000. THE CLOSING OF THE MINE At Melbourne, on July 29 of last year, an extraordinary general meeting of shareholders of the Mount Morgan- Gold Mining Company, Ltd., who held 1,000,000 £1 shares, decided that the Mount Morgan gold and copper mine be shut down permanently. It was agreed that all tho assets should bo sold and the company wound up. Tho meeting was convened to consider tho future of the company, particularly in view of the position arising out of tho adverse reports of tho American exports, who had advised against the practicability of winning the remaining ore reserves by opencut methods.

In a speech reviewing the difficulties of conducting operations in recent years, tho Chairman said that he felt certain that every Australian shared tho view of the directors that it was a national industrial disaster to be compelled to abandon mines with 8,000,000 tons of known ore and £15,000,000 to £16,000,000 worth of metals. The Chairman said it had not been possible to recoup tho costs of minyig and treatment from the metal values in the ores. While the value of copper in the world’s markets had been persistently low, it had been beyond tho company’s capacity to effect any corresponding reduction in the costs at Mount Morgan. The fact had to be faced that mining and labour conditions were such that the recovery of the £15,000,000 worth of ore remaining in tho mine was no longer possible on an economic basis, and only for tho company’s investments tho mine would olng since have gone out of existence.