COMPANY MEETINGS
WANKIE COLLIERY COMPANY
SUBSTANTIALLY INCREASED COAL SALES
THE sixteenth ordinary general meeting of the Wankie Colliery Company, Limited, was held on December 13th at Southern House, Cannon Street, London, E.C.
Sir John R. Chancellor, G.C.M.G., G.C.V.O., D.S.O. (chairman and joint managing director) who presided, said that there was a balance to be dealt with of £74,709, out of which a final dividend of 21 per cent. was recommended, which would make a total of 7f per cent. for the year and represented 121 per cent. on the capital of the company prior to its increase by the issue of 1,330,000 bonus shares in the May of last year. there had been a substantial improvement in coal sales which had increased from 929,947 tons to 973,083 tons, constituting a record. With regard to the reduction in profits despite the in- crease in the sales of coal, he would remind shareholders that at the last general meeting the then chairman had stated that it had been considered advisable to enter into long-term contracts at reduced prices with their larger consumers ensuring orders for their total requirements for many years to come. The explanation of those long-term contracts was that it had come to the Board's knowledge that the Northern Rhodesian copper companies were seriously considering the installation of hydro-electric energy in substitution for fuel, with a view to reducing costs of production; the reduced prices ensured the Wank:e Company obtaining the whole of their fuel requirements over a long term of years. Sales of coke showed a decrease of 13,551 tons, chiefly due to the fact that the Union Miniere du Haut Katanga had of recent years obtained the major portion of their requirements from Belgium, but the outbreak of hostilities had made that difficult, and the Board had every hope that the Wankie Company would for some time to come supply that undertaking with their total requirements As to the coal reserves, it was estimated that there was a tonnage of about 411 millions remaining to be mined within 2 miles of the present pit bottom, and that was by no means the limit of the distance of economic mining from those shafts. Generally, he hoped that through increased output, and consequent reduction of over-head charges, they would to some extent make good the reduction in profits resulting from the long-term contracts. With regard to his visit to Rhodesia last May and June, he had found everything in a most satisfactory state ; the progress made in all respects since his previous visit nearly 12 years ago was very striking.
The report and accounts were unanimously adopted.
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