COMPANY MEETING
CROWN MINES, LIMITED
INCREASE IN ORE RESERVE MR. JOHN MARTIN'S SPEECH MR. JOHN MARTIN presided at the annual meeting of Crown Mines, Ltd., in Johannesburg on Thursday, May 23rd. After reviewing operations and the financial results, the chairman said that the payable ore developed on the main reef leader and the south reef had been estimated at 4,025,700 tons, of an average value of 4.9 dwts. per ton.
There had been an increase of 419,300 tons in the available ore reserve, which had been re-estimated as at December 31st, 1939, at 21,340,000 tons, of an average value of 5.o dwts. per ton over a stoping width of 44.6 ins.
The constantly increasing depth at which mining operations were being conducted and the consequent increase in rock and the air temperatures of the working places, presented one of the most serious problems which the gold-mining industry had to face. In order to help to combat high temperatures which were encountered at great depth, arrangements would be made to instal an air-cooling plant of the surface at No. 17 shaft. Experience gained from the operation of similar plants had shown that the cooling effects underground would be sufficient to bring within workable limits considerable quantities of ore which would otherwise be lost.
NATIVE LABOUR
Another important question was that of native labour supply. During the year under review the shortage of native labour had been acute and had been responsible for a substantial portion of the increase in working costs which had taken place. Systematic work on a large and increasing scale was being done by the mining industry in its collective capacity to ensure that adequate supplies of native labour would be forthcoming. On the mines themselves close attention was paid to the working conditions, provision of amenities and the question of diet. At Crown Mines native compounds and locations were spacious and attractive. There had been further improvement in the morbidity and mortality rates during the year. Out of the average total of 22,422 natives employed throughout the year, only 59 had died from disease—a record low figure of 2.63 per thousand. The death rate from mining accidents had been 2.23 per thousand.
At the end of August, the Government of the day had promulgated a regulation under which through the Reserve Bank the Treasu.-y had become the purchaser at 15os. a fine ounce of all gold produced in the Union. The present Government had since abandoned the princiPle of a levy on the price about that figure and had allowed producers of gold to obtain for their product its full official market price subject to their bearing the increased realisation charges—at (resent 37s. per cent. In addition, however, to taxation and the operation of the lease formula, a special contribution, estimated to produce £3,500,000, was to be collected from the industry by means of a flat rate percentage of 9 per cent, of taxable income before the deduction of redemption allowance and the loss brought forward from the previous year.
The net result of the new arrangement, which took effect from January 1st, 1940, would be to produce for the Treasury an amount little different in total from what would have accrued under the plan which it replaced. In the case of the Crown Mines the system of taxation would be to leave the position very much as it was before.
The report and accounts were then adopted.
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