MOUNT LYELL RESULTS

New Zealand Herald, Volume LXXIII, Issue 22608, 22 December 1936, Page 5

MOUNT LYELL RESULTS

USE OF LOW-GRADE ORE PAST POLICY REWARDED MINING COSTS REDUCED The importance of the policy of the Mount Lycll Mining and Railway Company, Limited, of developing the lowgrade ore ou its property in Tasmania was emphasised by the chairman, Mr. !\ C. Holmes-Hunt, at the annual meeting in Melbourne last week. Results for the year were the best since 1929. The better financial result of the operations was due mainly to the sustained higher price for copper, said Mr. Holmes-Hunt, although that would not have been of sdeh benefit had it not been that the policy of developing the low-grade propositions at Mount Lycll had been persisted with for some years, and had now been brought to the really fruitful stage. Illustrating the effect the higher price of copper had had upon the year's results, it should bo noted that revenue from copper sales had averaged £SO 15s 2d a ton, Australian currency, against £44 13s 3d a ton for the previous year. Greater Quantity of Ore The most prominent alteration in the profit and loss account was the decrease in the mining item from £359,910 to £296,524, a reduction of £03,380, although the cost of mining approximately 44,000 tons more ore was represented in the'year's expenditure. That achievement was the direct outcome of the extraction of much larger quantities of oro from the West Lycll o lien cuts. Further investigation of the West Lyell and Prince Lycll deposits had been carried out, while intensive work ing proceeded, and had resulted in a substantial addition to the ore reserves, lie continued. 'The reserves at West Lyell mine had been increased by 939,000 tons. The addition of those large quantities of low-grade ore, however, had had the effect of reducing the average assay value of the total reserves to below 2 per cent, but the cheap mining cost of this ore justified its inclusion. Price oi Copper Referring to the outlook, Mr. Holmes-Hunt said it divided itself into two parts. In the first place there was that part over which there was definite control, namely, operations at the mines and works. In the second place there was that part beyond the company's control, which covered not only the returns from investments, but also the all-important item —the price of copper. Unless something unforeseen developed the company expected to be able to produce at least 13,000 tons of copper in the year at a cost possibly a little better than that experienced for the last 12 months. A development of moment was an alteration which had taken place in the business of Commonwealth Fertilisers and Chemicals, Limited, in which the company held a large interest. Negotiations had been concluded under which the alkali portion of its business had been transferred to a new company registered as Industrial Chemicals Proprietary, Limited. Any benefits resulting from that development would, of course, be participated in by the Mount Lyell Company. The change did not affect the superphosphate and sulphuric acid side of tlio business of the fertiliser undertaking. Commonwealth Fertilisers and Chemicals had increased its holding in Imperial Chemical Industries of Australia and New Zealand, Limited, to 500,000 £1 shares.

SOUNDNESS OF WOOL USE OF STAPLE FIBRE WIDE VARIETY OF FABRICS Wool growers are naturally perturbed by the development of ravon and Btapie fibre, but so far consumption results do not indicate that the use of the natural product has been reduced. However, rayon has had marked effects on the quantity of silk consumed, while the production of staple fibre has appreciably advanced. Opinion appears to be gaining ground that the staple fibre is likely to prove more of help than hindrance to the use of the sheep's staple by permitting the introduction of greater variety into fabrics, and, where low price is essential, cnablinc goods to be produced within specified selling limits. Manufacturers of staple fibre arc endeavouring to push its use, not as a substitute for wool, but for its utilisation in conjunction with wool. If that policy continues, staple fibre should not have an ill effect on the salo of the sheep's product, as it will extend its use among the world's pcorer classes, who find the constant purchase of woollen clothing difficult. World production of staple fibre last year was 133.800,00011)., or more than six times the 1932 output of 21,900,000 lb. On the other hand, wool was in stronger demand in 1935 than in 1932. The output of staple fibre last year was as follows, with figures for 1932 in parentheses: —Italy, 60,000,000 (9,400,000) lb.; Germany, 30,000,000 (G. 600,000) lb.; Japan, ' 13,600,000 (600,000) lb.; United Kingdom, 10.000,000 (2,200,000) lb.; other countries, 14,200,000 (3,100,000) lb. In spito of this remarkable growth the fact remains that the whole of the wool shorn last year from the finest Merino to coarse crossbreds has found adequate use.-Even Italy and Germany, who stand in the forefront as producers of staple fibre, have shown anxiety to secure wool supplies this season, while the keen buying by Japan has dominated all recent sales in New Zealand. PUKEKOIIE PRODUCE [fkom ouk own coititksi'ondent] PUKEKOIIE, Monday Supplies of new potatoes offering from the growers at l'ukekohe are still ample to meet requirements and a big volume of business is being transacted at £5 a ton f.0.r., Pukckohe, or 5s 9d per ewt. The market is firm in sympathy with a sharp rise in the Wellington "market, thought to bo caused by the Christmas demand. Locally-grown green onions are slow of sale, and values, which opened this season at 16s to 17s per ewt., have receded to 14s and 15s. The demand for cabbages is keen and prices have hardoned to as high as 4s Gd a sack. Owing to lack of labour for picking, the supply of green peas is below the demand and prices have hardened to 8s Gd a sugar bag. Carrots arc selling at 6s a sugar bag and rhubarb at 3s 3d a dozen bundles.