COMPANY MEETING

RAND MINES, LIMITED

SATISFACTORY POSITION GOVERNMENT AND THE GOLD MINES MR. JOHN MARTIN'S SURVEY

THE annual meeting of Rand Mines, Limited, was held in Johannes- burg on May 27th.

Mr. John Martin (the chairman), in moving the adoption of the report and accounts, said the position disclosed was satisfactory. The dividend distribution had been maintained at the same rate as in the three previous years and the financial and investment basis of the company remained sound, strong, and well spread.

INCREASED PROFIT The profit earned had been £1,041,501, an increase of £117,674 ccmpared with the corresponding figure for 1938. That profit had been derived exclusively from dividends, interest, and sundry revenue.

The investment reserve account now stood at £3,635,476, a decrease of L128,439 compared with the previous year.

The market value of the company's gold mining interests at the end of the year had represented 83.6 per cent, of the market value of all investments, and of the gold mining interests 96 per cent. had been dividend-producing.

GOVERNMENT POLICY

During the last nine months there had been important changes of Government policy affecting gold mines. At the end of August the Treasury, acting through the Southern African Reserve Bank, had become purchaser at 150 shillings per ounce fine of the gold output of mines in the Union.

Although the present Government had undertaken subsequently to deal with the problem of increased working costs when it arose the position thus created had been uncertain and inherently unsound.

It had taken some time before that fact had become generally realised, but in his Budget statement to Parliament the Minister of Finance had abandoned the principle of an arbitrary levy and had announced that as from January 1st, 1940, producers of gold would be entitled to the full official price for gold subject to their bearing increased realisation charges—at present 37 shillings per cent.

These charges were estimated to amount to some £2,000,000 per annum, which would accrue to the Treasury, by whom it would be placed as a contribution to the loan account.

Taxation had been further increased by the imposition of a flat rate of 9 per cent. of the taxable income before deduction of the redemp- tion allowance and the loss brought forward from a previous year.

The total direct revenue derived by the Government from the gold mines would be much the same as the amount calculated to accrue under the earlier scheme, but the change was welcomed by the industry as the replacement of a harmful arrangement by one that was logical and sound LABOUR POSITION The excellent relations between employers and employees in in- dustry had been maintained throughout the year. The Savings Fund allowance of tod. per shift, established in 1937, had been increased by 3d. per shift to is. id., and the provident fund rules had been amended, so as to entitle an employee on leaving a mine after 15 years' service to receive benefit from that fund on reaching the pensionable age.

The native labour requirements of the industry had continued to rise, and during the whole of 1939 they had been much in excess of actual supplies. Since the beginning of the present year the position had greatly improved.

Labour for the gold mines of the Witwatersrand was now recruited from an area ranging from the Cape to Barotseland and the northern shores of Lakc Nyasa and from Mozambique in the east to Bechuana- land in the west.

The employment of tropical natives from areas north of latitude 22 degrees south had continued to give satisfactory results and there was reason to hope that it might be possible in the near future to obtain increases in the quotas granted by the Governments of the territories concerned.

The supply of east coast labour was governed by the Mozambique Convention. Early this month an agreement had been concluded between the Union and the Portuguese Governments under which an increase from 8o,000 to too,000 natives would be allowed in the maximum number of Portuguese natives to be employed on mines.

RECORD TONNAGE MILLED

The tonnage of ore milled by the Witwatersrand mines of the Central Mining Rand Mines group had been increased during 1939 by 557,700 tons to a fresh record of 19,563,400 tons.

The average yield of gold per ton milled at 3.88 dwt. had shown a further reduction of 0.139 dwt., or 3.46 per cent.

The total working profit had risen by £477,772 to £9,363,190. The total amount distributed as dividends at £5,291,434 had been £303,239 more than in 1938.

On the metallurgical side the average residue value for the past year had been reduced by o.ott dwt. to a record low level of 0.175 dwt. per ton, which reflected great credit on the staffs at the mines and at head office.

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RAND MINES, LIMITED

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In the Witwatersrand Gold Mines, of the group the mortality r from disease had fallen from 5.57 per i,000 in 1938 to 3.23 per 1,0 o in 1939, which was the lowest in the group's experience. Deaths from mining accidents also had shown a slight decrease from 2.02 tO I per 1,000.

MAXIMUM CONTRIBUTION TO WAR EFFORT

The Chairman continued: It goes without saying that the policy .4 the mining industry is to make a maximum contribution to the w e effort.

Gold production, the foundation of our national economy, must -f possible be maintained, but the spirit animating employers and c- - ployees alike is a determination to do, with full strength and loyal'-', whatever tasks they may be called upon to undertake.

Many of our men have transferred from mining to military activities —our good wishes are with them all—and large numbers are under- going training.

A liberal policy in granting allowances to those serving in the Force' is being followed by this company and the mining companies generally.

Those who are required to carry on the essential business of keepin the mining industry going will have heavier burdens of work and :-:- sponsibility to carry. But the predominant anxiety of the men of mines in every sphere of service is, and will be, that they shall Jo their duty.

The report and accounts were adopted.