Copper’s glitter was

dulled last year

From GUS SMALES in Port Moresby

The 1976 net earnings of Bougainville Copper dropped by $A5.4 million because of low metal prices, increased raw material costs and high wage levels.

The company chairman, Mr F. F.

Espie, reported this in April at Bougainville Copper’s annual meet ing held at Panguna, the town ad joining the mine in the centre of Bougainville Island.

Net earnings for the year were 5A46.8 million. Dividends declared for the year amounted to 10 toea a little under 11c Australian. They will absorb $A32.2 million.

Mr Espie referred to the political problems which earlier had become expressed in a move for Bougain ville to secede from Papua New Guinea.

Mr Espie said that the company had been careful not to become in volved in the political events on the island, but the period had neverthe less been a difficult one for the com pany and its employees.

He said that from the company’s viewpoint he was pleased to record that the PNG Government and the Bougainville power base had been able to reach an amicable agreement on the distribution of powers.

Mr Espie announced a capital project costing about SAI2 million to drive a huge tunnel into the side of the Crown Prince Range on Bougainville to drain its open pit mine.

The tunnel project, which will eliminate drainage pumping, is part of an overall efficiency programme being undertaken by the company in its engineering, operational and workforce divisions.

When the mine began operating just over four years ago, the bed of the pit was higher than the adjacent river system, making drainage

engineering relatively simple.

But, Mr Espie reported, the base of the pit was now lower than the river system. This meant that pump ing was essential for drainage a system which would become in creasingly complex and expensive as the pit deepened.

The new tunnel would run for several kilometres under the sur face, emerging at a point where gra vity would allow the water to drain into the river systems.

Mr Espie also announced new shareholding arrangements under which “little” shareholders in Australia will be given the oppor tunity to grow bigger or to bow out gracefully.

Holders of fewer than 100 share generally too small a holding to have marketable value will be given the chance to dispose of their holdings or build them up to 100.

The scheme will, in essence, amount to a reshuffle of holdings among small shareholders, con solidating the amount among fewer

people.