MOUNT MORGAN.

Otago Daily Times, Issue 20473, 30 July 1928, Page 5

MOUNT MORGAN.

MINE TO BE REOPENED. JUBILATION IN QUEENSLAND. (From Our Own Correspondent.) SYDNEY, July 20. There is great jubilation in the north of Queensland at the prospective reopening of the famous Mount Morgan mine. There is now hope that the cloud of depression that has been hanging over the Rockhampton district for the past 12 months is beginning to lift. The announcement that an option had been secured over the mine and that a new company would start operations shortly was received with unrestrained enthusiasm at Mount Morgan itself, and when the news was received groups gathered in the town and discussed the situation as if some great national event had taken place. This is not surprising, for during the last seven years there have been misery and depression in the town. Business places have been closed, and many land owners, who held the opinion that Mount Morgan had gone the same way as other mining centres, sacrificed their properties to buyers. Many details of the new compan have yet to be completed, and only a few particulars have so far been given. It seems that a group of Sydney financiers is interested in the new venture, and that it has been decided at the outset that the company will not be over capitalised. The share capital has been underwritten and will not exceed £250,000. Because it is felt that many Queenslanders have retained faith in the mine it is proposed to offer £50,000 worth of share holdings to Queensland investors. It is also stated that it is the intention of the new company to proceed slowly at first. Much of the existing plant and organisation have been adjusted to the new policy. The mine is already in a revenue-producing condition, so a very large amount of dead or developmental work, inseparable from a new project, will not be necessary. Much of the existing plant will be realised, and the proceeds of the sale placed in reserves. With a smaller overhead burden it is anticipated that the new company will be able to clear working expenses and provide a good return for the shareholders. No one for a moment expects the hectic days at Mount Morgan to return, but the working of the immense body of ore that still remains must provide work for a great number of men for a long period. It is stated that ore from outside sources will be required in order to equalise the difference between the output of ore from Mount Morgan under the new programme and the volume required to meet the economic working capacity of some of the plant.