COMPANY MEETINGS
DURBAN ROODEPOORT DEEP LIMITED
INCREASED PLANT CAPACITY DR. HANS PIROW'S SPEECH
DR. HANS PIROW presided at the annual meeting of the Durban Roodepoort Deep, Ltd., which was held in Johannesburg on Wednes- day, May 22nd.
Moving the adoption of the report and accounts, the chairman said the increase that had been effected during the year in the capacity of the Roodepoort United reduction plant had enabled it and the Durban Roodepoort plant to mill a combined total of 372,000 tons more than during 1938.
After reviewing the accounts the chairman said the development accomplished had amounted to 84,753 feet, an increase of 13,696 feet compared with the corresponding figure for 1938. Payable ore developed had totalled 1,797,300 tons, averaging 4.5 dwts per ton. That was an increase of 313,30o tons compared with the previous year's total, the average value being 0.2 dwt. per ton lower.
The available ore reserve, as re-estimated at December 31st, 1939, had been 6,167,700 tons. It showed the satisfactory increase of 556,600 tons, the average value per ton being 0.I dwt. lower, while the estimated stoping width was 1.3 ins. greater.
The sinking of No. 6 vertical shaft had been completed early in the year. Surface haulages connecting that shaft with both reduction plants had been completed and the necessary equipment for loading ore at underground shaft bins had been installed. Ore from the Princess section was now being hoisted at that shaft.
Owing to an acute shortage of native labour in the latter half of the year it had been impossible to exceed the record tonnage of 156,000 milled in May, 1939.
Since the beginning of the current year, however, the native labour position had improved considerably and tonnage milled had increased progressively from 150,000 in January to I8o,000 in April.
The shareholders would be aware of the levy on all revenue in excess of 15o shillings per ounce fine which the late Government had proposed.
After a full examination of the position, however, the present Government had abolished that levy as from January 1st, 1940, and announced that, instead, the mines would be paid the full market price for their gold, less the increased cost of realisation charges at present 37s. per cent. At the same time the Government imposed a new 9 per cent. tax on taxable income before deduction of the redemp- tion allowance and the loss brought forward. Under existing condi- tions those changes in the system of taxation would not affect the dividend position.
The report and accounts were adopted.
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