Document 1QQ2mpGqd8a1EeMqpyYOK1Yxq

4-h *oo[ 9th February 43. The Commonwealth Actuary, Cajltal Issues and Building Control London Circuit, City, CANBERRA, A.C.T. Jear 5iX, National Security. lCapita_l_l5sues) Regulations. Western Australian Asbestos Ltd. Further to our telephone conversation of the 5th distant and referring to your letter of the same date (Ref. Cl*13194), I have to say that we contemplate producing at the rate of 1000-2000 tons spinning fibre \c 3000 tons short length fibre per annum. The output is difficult to fix at this stage and will be governed largely ly the quantity of shorts (asbestos-cement grade) -tht can be absorbed in established industries as long length fibre predominates in the ff.A. deposit and* should the demand ars^ven larger quantities ;han 2000 tons per -nnua of long fibre could be produced with a shorts production or 3000 tons* In order to produce a high grade and well prepared product in accordance with the demands of the trade and of established manufacturing plants and processes, certain essential stages are necessary in the asbestos sill and an appreciable variation in the output of the mill would not mean any appreciable variation in the initial <??pltal investment required in the milling plant* While **e 3et a tentative output of say 1000 tons long and 3000 tons short fibre per annua, the success or the mill it not dependent on these quantities being at once absorbed md, on tie other hand, larger quantities could be produced without extensile alterations to our equipment. The chief item of east of production will be the mining sidthe output ct this stage can, of course, be readily varied according to the desand* It Is not anticipated in the first plc.ce that Australia's industry will he able to absorb all the long fibre and the surplus will be available for export. L. G. Hancock Asbestos Co* have informed us that they have enquiries for 180 tons crude (long fibre) per annum from Johas-Manville, New York, and for 1200 tons per annum, (of which two thirds to be crudes) from Asbestos Ltd*, New " York. Such enquiries are of interest at present, however, chiefly in assisting to establish the economic basis of the proposed Industry, aid the chief products as fsr as war-time industry in Australia is concerned are: - (1) Spinning fibre for the manufacture of yarn, cord, cloth end packings* (2) Millboard. (8) Pipe and boiler coverings. (4) Asbestos-cement sheets. In addition to established uses, we anticipate finding an outlet for a considerable quantity of long fibre for the lagging of all heated surfaces in the ship building industry. Blue fibre is well suited for this purpose. With regard to the attitude of Australian manu facturers of asbestos cement, we have been In close touch vith Asbestos Products Ltd. in Sydney and have been inforced that they are very satisfied with asbestos cement contaialng 30jf of blue fibre and on the 15/10/42, Mr* HacDiarmid, manager of that Company, wrote as per copy / of letter attached herewith. The matter was referred to South African producers by cable on the 29/7/42 as to their experience with blue asbestes and on 31/7/42, they replied as follows: "Tour twentysevanth first question if colour finished article immaterial up to hundred lbs. capeblue grades may be used to each hundred lbs. shingle fibre which may even be partially replaced by paper stock capebli generally having greater tensile strength than shlng.; fibre or up to thirty lbs. Transveelblue Grade 3 to each hundred lbs* chrysotlle which must be at least shingle quality* Second question no but generally blue far less suitable moulding purposes than chrysotlle compliments". This opinion states that good quality blue can be mixed with chrysotlle 100 parts: 100 parts and that up to producer iVi.TV,v.ty y-w' :> i C'iP"' Oo wCjS of a lower grade of blue may be so used. Blue fibre is suited particularly for flat :heets and Super-6 corrugated aid not for moulding purposes but the <"?o former iters constitute the major uoes. The attitude of Asbestos Products Ltd. to the use of blue fibre has been consistently favourable within * the above mentioned limitations. We have not been in direct touch with the other two companies concerned but understand that their attitude is less sympathetic because their established practice is based on the use of chrysotile only, and possibly because well milled Australian blue has not been available* We have, however, conducted a conslderaole tmount of Investigation and carried out numerous trials in our ovn test laboratory and have satisfied ourselves that satisfactory sheets can be made from blue fibre. We are very satisfied with these results and, as we consider that any opposition to the use of blue fibre is more a matter of opposition to change of procedure in which satisfactory factory, methods have been established, it Is no* proposed that should there be any reluctance on the part of existing manufacturers to absorb supplies of blue once we have placed a high grade and well prepared fibre on the market, to arrange for supplies of asbestos-cement sneets to be manufactured to our specification and to our account aad risk* Should the further step of additional manufacturing plant be required for this purpose, we have plans already completed fbr the installation of manufacturing plant for making flat sheets from blue fibre but it is not our intention to proceed with this at present unless requested to do so by the Directorate of Materials Supply. We have been informed by the latter Department that many enquiries already exist for blue fibre and that business in the pest has been htapered by Inadequate production and by inefficient milling methods which have resulted in an imperfectly prepared fibre being placed on the market. Our proposed plant and aethods will overcome both these faults which have hindered the use of blue asbestos in the past, and we feel confident that if we accept the financial responsibility of proving its suitability for the purposes mentioned herein, re will be able to overcome any opposition to its use that Tiay exist with some manufacturers at present. N * | 1 j 1 j j 5 -- i As far as spinning is concerned, erocldolitejc definitely be used for thi$ work and, if. existihg^anr^ -r* unwillinj to change over from imported^-chry_s"oti1e .it /{. _____ iU:, * /<> . * :JV 6, -4reared tc accept whatever responsibility or instal hctever plant is necessary to ensure the utilisation of lue fibre, generally speaking, we have satisfied ourselves "at blue iibre can be used for the purposes mentioned nd that there is no sound reason why the almost nliaited supplies of blue fibre in Western Australia hoald not be developed and used to replaee a correspond^' ng quantity of imported chrysotile. Ws have, moreover, considered these proposals a conjunction with the production of chrysotile fibre y ?asmanian Asbestos Proprietary Ltd. which has now been e-istered In Tasmania, and it is hoped that the permissible ercentage of blue fibre will help to sake up for any eflciency la quantity that may be procurable from the caller Tastanlan field and so go a long way towards establish!^ a future all-Australian industry. Tours f aithfully. pro Acting General Manager,-- - < .A a COp'* v **' t frfr. --jj j| ._- *? ~?r- PLAINTJF; EXHIBIT iinyuyiriji[aaMa-Aglg JO, iSfy geftfrh : i^iso. jsiQjicrnaj.vSe.ajLritj Keouia-iws___mjwmmuxamm . 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