Nt1PANY MEETING

NCHANGA CONSOLIDATED COPPER MINES LIMITED

(Incorporated in Northern Rhod(sia)

STEPS TO MAINTAIN STABLE WORLD COPPER PRICES

MR. H. F. OPPENHEIMER'S REVIEW WLN1Y-111,111 ANNUAL GENERAL MEE11NG of ehga Consolidated Copper Mines Limited will b`r acid on August 23 in Salisbury, Southern "nodesia. mll.11.?..following is an extract from the review by bee g• P. OPPENIMIME.R, the chairman, which has a

etnints:sirculated with the annual report and ac- ,

‘langa s primary production of copper for the r,it reached 197,948 long tons. The total tonnage ren,re milled was 200,000 tons less than in the eupous year and the increase in production was ilPartlY to a higher copper grade and partly to andvements in plant efficiencies, in both the leach in tankhouse sections. to which I have referred '"Y last two reviews.

The

heldi Policy announced in October, 1960, of with-, ng 10 per cent of the total planned production "nin 6' Year d

w market mark t in force throughout the •

elect ?ring which 183,052 long tons of blister and ber, TiYtic copper were sold. Over the period Octo- Were to March 31. 1962, our sales of copper , aPProximately 3,000 tons below 90 per cent Plapned production.

paSiiitee the end of the financial year the copper com- irt of the Anglo American Corporation Group t.3,,,,'s-ociation with the Rhodesian Selection Trust sle:??, have decided to increase the 10 per cent d above by 5 per cent, making a total of itarr cent. Announcements of cuts have also been „! ,by the Union Miniere du Haut-Katanga, athr,n,ua Mines Limited, Phelps Dodge Corporation eo,, ene Anaconda Company. It is hoped that other aea'Per producers will take similar action in the alr4Afutnre. The total cuts or withheld copper te4-:"Y announced amount to about 200,000 long fror—'n Per annum. As in the past, we shall decide the time to time whether to withhold copper from tiParket or cut production. Of Jentain optimistic about the future prospects are, IPPer consumption. The steps we have taken orae°vvever, necessary during certain periods in inaad' 44/, correct the imbalance of supply and de- zwerabY enabling world copper prices to be 1•11241ed at reasonable and stable levels. total tonnage sold by Nchanga was higher \vas fit] the previous year, and the unit cost of sales s' Per ton lower; there was however a decrease 4.e average clectro price realized from £237 per

COPPER MARKET

ton in 1960-61 to £231, with the result that our• revenue from sales was only £1.5m. greater than for last year. The net profit after providing 47.93m. for taxation amounted to £12.89m. compared with £12.4m. for the previous year.

Appropriations of £2.25m. for capital expenditure and £1m. to general reserve absorbed £3.25m. and the board has recommended a final net dividend of 5s. 6d. per stock unit which, together with the interim net dividend of Is. 6d. paid in February, 1962, will maintain the total net dividend for the year at 7s., as for the previous year.

The appropriation for capital expenditure of 42.25m. was mainly to cover the expenditure of £1.86m. during the year. The balance represents a forward provision of £.39m. against the capital pro- gramme for 1962-63.

PLANT EXTENSIONS

A year ago 1 referred to planned extensions to the surface plant costing about 43.7m., wiuich would improve extraction and enable a greater tonnage of copper to be produced, without increasing the rate of mining. Work continued throughout the year on the first stage of these extensions, the construc- tion of a low grade oxide leach plant which, to- gether with additions and alterations to the existing leach plant, absorbed 41.16m. of the total capital expenditure for the year. The first stage will be completed during the current financial year and work will also start on the second stage, the erection of a roasting plant to deal with low grade sulphides. It is estimated that when completed the extensions will make it possible to recover an additional 15,000 tons of copper per year from current grades of ore at the present rate of mining. We should thus be in a position either to maintain the current level of production at lower grades or lower mining rates, or to increase output at short notice in order to take advantage of anticipated increases. in world demand in future years.

The main issue in the field of labour relations during the past year has been the copper mining companies' proposals in respect of African advance- ment. Early in 1961 complete agreement was reached with the Northern Rhodesia Mine Officials and Salaried Staff Association and the Northern Rho- desia Mines' Afriein Staff Association on the further advancement of Africans into the staff and super- visory fields within the copper mining industry.