Way clear for P-NG's "greatest

Business and

Development

Way clear for P-NG's "greatest single commercial venture"

A bill which will make possible what was described as the greatest single commercial venture” in the history of apua-New Guinea was passed by the territory’s House of assembly at its Budget session in August-September. The ven ire could eventually transform the territory’s economy.

E bill is the Mining (Bougain ville Copper Agreement) Bill , which approves an agreement een the P-NG Administration the Bougainville Copper Pty. Ltd. le mining of copper on Bougain tugainville Copper Pty. Ltd., h was formed in mid-year, is oiled by Conzinc Riotinto of ralia (CRA), as the major share ir. CRA is in partnership with Broken Hill Consolidated, which a one-third interest, e Director of Lands, Mr. D. S. e, stated at the P-NG Assembly’s meeting that the company had dy spent about $4 million in find i large body of low-grade ore at una; and that the cost of bring i copper mine into full produc there could be well over $lOO an.

Huge royalties

ien full production was reached veral years, up to $500,000 per would be paid by the company e Administration in royalties, i full production, the operation pected to provide about 200,000 of copper concentrates for ex and these concentrates should in about 70,000 tons of the copper,” Mr. Grove said, “In ion, between 200,000 and 300,000 : gold should be produced each as a by-product from the treat of the copper ore. nee the project is firmly estab l, some eight to 10 years after icncement of production, and laximum tax is being paid, the nistration would hope to receive il revenue of about $lO million year from the project through duties and royalty.” . Grove said that there would reat benefits for the people of

Bougainville. Education, health and community services would be stimu lated, and there would be great opportunities for employment and the sale of local garden produce.

He added that an important part of the agreement between the company and the Administration was that the Administration would have the option to take up at par 20 per cent, of the share capital of the company.

Shares would be held in trust for the people of the territory. Later on a method would be worked out for the people of the territory to buy some of them.

In the debate on the bill during the Budget session, Mr. A. C. Voutas (Kaindi, Open) expressed concern over the ability of New Guineans to become shareholders in the company when the opportunity was given them to participate.

“The Administration has agreed that for the first 15 years, only one quarter of the shares can be trans ferred to eligible territory residents,” he said. “The people in my elec torate are particularly concerned with this question of share participation.

The people at the village level are only capable of investing between $5 and $2O in any company, be it CRA or any future company.

"Good agreement"

“It seems to me that a lot of thought has to be given to some in stitution or some mechanism to exist between the villager and the com pany to allow the villager to become a shareholder.”

Mr. Paul Lapun, the native mem ber for Bougainville (Open), in whose electorate the Panguna mine is situ ated, said the agreement was a good one.

“If each of us men in the villages

can buy shares in the company . . . then we can co-operate with CRA, and will not be enemies with them,” he said. “Then we can say that CRA is a company belonging to us all . . .

It will be a good thing provided that the shares do not remain too long with the government.”

New nickel venture

in New Caledonia

THE two partners for the second nickel company for New Cale donia are Kaiser Aluminum of New York, and the territory’s current sole nickel miner, Societe Le Nickel of France.

There has been much talk in Noumea in recent months about the second nickel company after the French announced last December that a second company would be allowed (PIM, Jan., p. 142).

An announcement was made in New York of the new venture by Kaiser Aluminum on September 18.

Two new joint-owned companies— New Caledonian Nickel Company and Kaiser Le Nickel Corporation— will be formed, and one will produce nickel in New Caledonia and the other will sell it in North America.

Spokesman for the new companies said they could now move immedi ately to construct a processing plant in New Caledonia and set up a sales organisation in the United States.

Work on a New Caledonian nickel plant with an annual capacity of 15,000 metric tons was expected to begin “soon”.

However, while the new company meets the French Government’s re quirement that nickel output in New Caledonia be stepped up, it does not meet New Caledonians’ desire that Le Nickel should have outside com petition to limit its domination of the island’s economy.

International Nickel (Inco) of Canada and American Metal Climax are tipped as the final contestants for the role of partner in a third French consortium, which is expected to invest SUS2OO million in New Caledonian nickel mining.

The French Government is expec ted to announce its decision by early November so the third project can get going by the end of the year.

Meanwhile International Nickel is still waiting for results on nickel ore

Business and development

it shipped to Canada earlier this year from Santa Isabel Island, in the Solomons, for assessment by metallurgists ( PIM, May, p. 131).

With the company asking for an extension of its Santa Isabel nickel concessions, the Kaiser-Le Nickel venture and talk of a third nickel company on New Caledonia, com petition for supplies of highly-prized nickel ore in the Pacific has intensified.

New capital for

Fiji industries

FIJI Industries Ltd., Suva-based cement manufacturer, allotted 44,000 new ordinary FlO/- shares at a premium of FI2/6 to an Australian cement firm, Australian and Kandos Cement Holdings Ltd., of Melbourne, in early September.

The price was equal to about $2.50 a share, which made the transaction worth about $llO,OOO, representing just over eight per cent, of Fiji Industries’ total paid-up capital.

The directors of Fiji Industries said they had taken the opportunity to form “an association” with the Australian company and they ex pected long-term benefits to accrue from it. The funds raised from the placement will be used for expansion purposes.

What expansion Fiji Industries had in mind was not revealed.

Group net profit of Fiji Industries fell by £F27,166, or 36.4 per cent, to £F48,003 in the year ended June

30, it was later announced.

Dividend is held at the increased 14 per cent, paid last year with a final of 71 per cent.

French flour soles

to Fiji criticised

FRENCH inroads into Australian sales of flour and sharps to Fiji came in for criticism by the chair man of Hackshalls Limited, Mr.

M. H. R. Gough, in his company’s annual report for the year ended June 30.

Flour mill running time improved with ample supplies of wheat avail able for milling, Mr. Gough said.

Unfortunately full advantage of this could not be taken as heavily sub sidised flour and sharps from Europe were being sold in the Pacific Islands at prices below the Australian cost of production.

Conditions in Fiji were more favourable than anticipated due to an increase in tourism and sub stantial building development, Hackshalls, general islands merchant, also makes soap and biscuits in Fiji, Net profit for the year was $211,869 and a final dividend of per cent, will be declared payable on October 11, making the full year’s dividend 15 per cent.

Earlier this year Australian flour exporters protested that French flour exporters were selling cut-price flour to big importers in Fiji ( PIM, June, p. 129).

Guinea Gold NL

to carry on

THE voluntary liquidation Guinea Gold NL was narrov averted in late September after French-Canadian investor, Mr. N< Galland, and other shareholders c posed a resolution aimed at windi up its operations at a special meeti in Adelaide.

Guinea Gold pioneered many routes in New Guinea in the 1; 1920’s and 1930’s and also conducl extensive mining operations in 1 territory before World War 11. left New Guinea after the w; when enemy action ruined most its assets at Bulolo, and has mained an almost dormant mini investor, with its only real as; nearly 25,000 shares in the mu] million dollar Canadian miner, Plat Development Ltd.

Mr. Galland, who recently acquir 50 per cent, of Guinea Gold’s capit told PIM he was “not in favour liquidation” and he said he want to revive the company as an acti mining investor and miner, possil in New Guinea or “elsewhe depending on prospects”.

Through a Sydney firm, Rea Credit Ltd., Mr. Galland, recen bought 142,415 Guinea Gold shar equal to 28.5 per cent, of the coi pany’s capital, for $1.64 eac (Placer shares were worth abc $33.80 in late September).

At the Adelaide directors’ meetii Mr. Galland was elected to the boa of Guinea Gold and appoint managing director. Mr. K. L. Cam remained chairman.

Old Noumea firm

to close down

ONE of Noumea’s oldest impo: export houses is to go in voluntary liquidation. It is the Socie Havraise Caledonienne, which Plh Noumea correspondent says has bei “very shaky for a number of years SHC as it is generally know once formed part of a Freni Empire-wide chain headed by tl parent company at Le Havre France.

Some time after the last war tl business was acquired by Ne Caledonian shareholders, and son effort was made to modernise oper tions, principally by constructing very expensive modern building.

However, no progress was made the development of the business ai a few years back the business wi taken over by the Pentecote grou]

Tie decision has now been made wind up the company. Local lion of the failure is that •chandising brains were absent n the management, he business once boasted 15 aches—lo of them in Noumea’s jrbs and five in country centres, have now been disposed of.

MG raises

i head

October, first tenants will move into what will probably be several years to come New [lea’s prestige office block—the million, 12-storey A NG House >ort Moresby. he Australia New Guinea Cor ition group of companies has ; the block, the first tall, modern ling of its kind in the territory. ;lt there was a need in the ter y for a modern office block for companies, and that it would be >od investment. r. Steven Rich, chairman of ANG lings, the corporation’s publicly 1 affiliate said in August that block was 100 per cent, “booked , and he hoped it would be [ally opened early next year. :nants included Qantas, TAA, : Bank, W.D. and H.O. Wills, Department of Territories, the dopment Bank, the Reserve Bank Australia, Commonwealth New ica Timbers, and Phillips Oil. activities in the territory de tea, coffee and rubber planta , timber operations and small al shipping interests around Port ssby. r. Rich described work on 3,000 at Cape Rodney, in the eastern m of the Gulf of Papua, as part i “multi-million dollar timber ct”. With a subsidiary, Pacific d Timbers, more than $1 million been spent on plant, logging ties and equipment so that timber rts could start to Australia and i in 1968. the Cape Rodney land, 1,000 had been cleared and high-grade it was grown on 300 acres, th rubber prices very low it was dered 1,000 acres was the ideal for a plantation to be run on )mic lines and the corporation lot yet decided whether to extend Libber plantings or try something on the cleared land.

Rich said Pacific Island ers, which suffered losses in and 1965 before it was taken by the corporation, had returned ofitability.

IG Holdings had three coffee

plantations near Goroka Huvei, Elmbarlee and Hoka—totalling about 280 acres. Last year they produced 131 tons of coffee.

At Banz, in the Western Highlands, the company intended to plant 1,400 acres with tea. Workers had already planted 300 acres and another 300 acres would be planted in 1968.

A tea factory would be built in 1969.

Total cost of the tea project so far, Mr. Rich said, was about $600,000.

ANG Holdings with a M f S ’ A mode 1l 2>Zo,t>UU profit tor 1965-66, would show a bigger return this year Mr Rich said and thp rnmnanv me t 4 Cn SaiQ ’ j e . company was very confident it would pay dividends in two years.

The corporation is a consortium of leading Australian and overseas banks, financial bodies and industrial and pastoral concerns.

W. R. Carpenter and Burns Philp, through their insurance company associates. Southern Pacific Insurance Company Limited and Queensland Insurance Company Limited, have interests in the corporation.

The larger shareholders are: Associated Pulp and Paper Mills Ltd., Australasian Capital Assurances Ltd., Aus tralasian Temperance and General Mutual Life Assurance Society Ltd., Australia and New Zealan d Bank Ltd.—through their wholly owned subsidiary Australia and New Zealand Investments Ltd., Australian Metropolitan Life Assurance Company Ltd., (Over)

Australian United Corporation Ltd., Bank of New South Wales, Bankers and Traders Insurance Company Limited, Beaulieu Holdings Pty. Ltd., British Tobacco Com pany (Aust.) Ltd., Broken Hill Proprietary Company Ltd.

C.D.F.C. Australia Ltd., Chase Interna tional Investment Corporation—a wholly owned subsidiary of the Chase Manhattan Bank, City Mutual Life Assurance Society Ltd., Colonial Mutual Life Assurance Society Ltd., Commercial Bank of Aus tralia Ltd., Commercial Banking Company of Sydney Ltd., Commercial Union As surance Company of Australia Ltd., Con zinc Rio tin to of Australia Ltd., Dalgety and New Zealand Loan Ltd., Development Finance Corporation Ltd., E.S. and A.

Bank —through their wholly owned sub sidiary Melbourne Safe Deposit Pty. Ltd., Elder Smith Goldsborough Mort—through their wholly owned subsidiary Elders’

Nominees Ltd., Equitable Life and General Insurance Company Ltd.

Hongkong and Shanghai Banking Cor poration—through their wholly owned sub sidiary Hongkong Finance Ltd., Imperial Chemical Industries A.N.Z. Ltd., Industrial Acceptance Corporation, Manufacturer’s Mutual Insurance Ltd., Mercantile Mutual Insurance Company Limited, Mutual Life and Citizens’ Assurance Company Ltd., National Mutual Life Association of Aus tralasia Ltd., New Guinea Investments Limited, Power Corporation Australia Ltd., Queensland Can Company Limited, Queensland Insurance Company Limited.

Rothmans of Pall Mall (Australia) Ltd., Shell Company (Pacific Islands) Ltd., Southern Pacific Insurance Company Ltd, Transport and General Insurance Com pany Ltd., United Insurance Company Ltd., Victoria Insurance Company Ltd.

Shipping losses help

good copra prices

DEPUTY chairman of the P-NG

Copra Marketing Board, Mr.

K. G. Oliver, reporting on world copra trends in Port Moresby on September 22, said that daily prices set during August by the copra associations in London and Holland resulted in an average of £Stg.69/17/6 for Sep

tember shipments.

Prices set so far during September indicated an average of £Stg.7o for October shipments, he said.

He added; “Early June saw an up ward trend in the daily prices advised from London and as these are still holding firm the board’s tentative price was increased by $5 per ton effective from September 1. Tentative

prices, including the present bounty

distribution of $3 per ton, are: Hot air, $126 per ton; FMS, $123, smoke sl2l.

“Latest advices from London are of a continued decline in Philippine exports for July. Exports of copra were down 22 per cent, and coconut oil 34 per cent., giving a combined decline of 25,000 tons oil basis or 26 per cent from last year.

“The total for the first seven months of the year from January/ July is down by 131,700 tons oil basis or about 25 per cent.

"A recovery of exports is expected for the last five months of the year but the present shortage was aggra vated by recent shipping losses off Africa, Cadiz and the Philippines.

“These losses contributed to the present relatively good prices.

“Territory production is presently running at about the same level for the period January/August last year and indications are for an annual production of around 115,000 tons.”

May be record for

GEIC copra

COPRA production in the Gilbert and Ellice Islands appears to be heading for a record this year.

Mr. A. Z. Bolt, secretary of the GEIC Copra Board, said in late August that production provisionally could be 8,500 tons as against 7,870 tons in 1959, the best year so far.

These figures exclude plantation pro duction at Christmas, Fanning and Washington Islands.

Mr. Bolt said that for a good many years all copra from the GEIC has gone to Europe through contracts with Unilever. These had continued after the old Ministry of Food con tracts ended.

“There is some hardening in the market indicating that future con tracts may not so easily be renewed,” he said.

One of the economic facts which plagued the colony was the very high cost of copra collection from 37 islands spread over one million square miles, excluding the Line Islands.

These costs remained whether the price was a low £Stg.sB or a reason able £BO, he said.

Cook Is. copra

"in the money"

Repercussions from the recent Suez Canal crisis and the cur rent unstable Nigerian situation will be felt in the Cook Islands in a favourable way at least until the end of the year.

Fixed copra prices in the Cooks for the last quarter of the year will be the highest for 15 months. First grade hot-air dried copra will fetch $NZ132.93 per ton packed f.o.b.— a rise of SNZ 12.93 over the last quarter’s price. First grade sun-dried copra will fetch $NZ130.97 (a rise of SNZ 14.93) and standard grade copra will be worth $NZ129.51 (up $NZ14.94) per ton.

Cook Islands copra now collects the best price in the South Pacific.

Rubber prices hit

rock-bottom

WHY grow rubber these da] Papuan rubber growers w e seriously asking themselves t question in early September wh world prices for natural rubber a 15-year low.

On September 11, London pri< were about 14id Sterling a lb equivalent to about 17| cents A tralian a lb returned to Papn estates.

For many of the smaller rubl growers this puts returns at less th their cost of production—so they j growing rubber at a loss.

Papua has about 73 non-indigem rubber holdings, covering nea 34,000 acres. The commodity is, has been, one of Papua’s top mom earners.

The big slump in rubber prices 1 been caused by two factors—ov production by the world’s rubl giants, Malaysia, Thailand and ' donesia; and increasing inroads ii traditional crude rubber markets synthetic rubbers.

With a recent 10 per cent, cut synthetic rubber prices, brokers c see no price rises in the offing 1 natural rubber.

For Papuan growers who decide continue producing in the hope tl prices will eventually recover it plain that they must cut producti costs and increase the yield of th trees.

Soap factory for

Lautoka

AF£5O,OOO locally-owned sc factory at Lautoka, Viti Le 1 was opened by Fiji’s Minister I Commerce, Industry and Labo Ratu Edward Cakobau, on S tember 16.

Built by Punja and Sons, 1 factory will employ 18 men a produce at first 2i tons of washi soap a day. It is hoped that by 1 end of the year powdered and flak soap and toilet products will made.

Processing oil for the factory v be bought from a Lautoka oil crusl who purchases from copra growi in the Yasawa and Mamani Islands. • Plantation Holdings Lf Papuan copra and cocoa grow made a net profit of $43,070 for t year ended June 30, as compai with $37,765 for the previous ye