RIO TINTO
A DIFFICULT YEAR
HE sixty-sixth ordinary general meeting of the Rio Tinto Com- pany, Limited, was held on April 28th, in London.
The Rt. Hon. Sir Auckland Geddes, G.C.M.G. (the chairman), said that the year 1938 had been, as so many recent years had been, an extremely difficult on for the company insofar as its interests were in Spain. Fortunately, within the last few weeks the war had come to an end and it was possible to review its effect upon their financial position. The accumulation of pesetas, received or due at December 31st, 1938, was Ptas. 36,275,071. The total value of goods and sterling delivered to the Spanish authorities had passed £2,85o,000. Certain difficulties in the way of export continued, notably the prohibition of export to France, which was particularly damaging to the company's competitive position.
It was his hope that such hindrances might soon be removed as it was only in that way that the increase in the export of pyrites, in which the Spanish Government was so interested, could be obtained. Any increase produced by price-cutting would be disastrous to the industry and to Spain as it was only by strenuous efforts that orderly marketing in the pyrites industry had been attained and with difficulty maintained.
CONDITIONS IN SPAIN
Their labour force in Spain had rendered eyrollent service throughout the year, and, apart from one or two departments in which the absence of young men had been felt, its efficiency had been fully maintained and earnings had been at a higher rate than ever before. It would be noted, however, that the net profit was well below the income received from Rhodesian invest- ments. That indicated the drain upon their Rhodesian income necessary to meet the exchange requirements of the Spanish authorities. It would be noted that in spite of their not taking credit for the value of the pesetas which they held they would, after the payment of the preference dividend suggested, have re- stored their carry-forward to the figure at which it had stood two years ago.
With regard to their Rhodesian interests, since he last addressed them he had revisited Nkana and Nchanga and was more than satisfied with the progress made by the Rhokana Corporation and the Nchanga Consolidated Copper Mines. He had also visited Mufulira, in which indirectly through the Rhokana Corporation they were interested, and that mine also was doing well.
The report was adopted.
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