Document 9L6NGB75pk59k4okNJn1ZZ0ED

l is t u f c o n s o l id a t t d c t t s id ia d ius o f a n a c o n d a c o ??3R m AT DIC3.3SR 31. 1941 C OKPAMY 22 Par :er.t ov; Ml Subsidiaries whose accounts are consolidated in the Consolidated Balance Sheet of Anaconda Copper Mining Company and iC-Ori owned subsidiary conp-inios, and in the se.-ieral Consolidate! 3~.Iiir.ce Sheet Anaconda Copper lining Company Subsidiaries Minority The .'vEeric.-.n Brass Cor.puny 100 The American Trass and Copper Company, Ino, The American 3rass Company of Texas The American Metal Hose Company Anaconda American Trass limited Canada Strip Mill, Limited The French Manufacturing Corporation Waterbury Brass Goods Company Anaconda Sales Company 100 Copper Bxport Association, Incorporated Andes exploration Company of Maine 100 Butte, Anaconda and Pacific Railway Company 100 Columbia Amusement Company 100 Diamond Coal and Coke Company 100 Frontenac exploration and Development Company 100 International smelting and Defining Company 100 International 3uilding Association New Jersey Storage and warehouse Company Raritan Copper Corks ' Raritan Terminal and Transportation Company Interstate Lumber Company ' ` 100 Minas Investment Corporation 100 Montana Hardware Company 100 Tooele Valley Railway Company 100 Washoe Copper Company 100 ICC loo loo iq o ico ico ICO ICO 100 ICO ICO 100 Other subsidiaries whose accounts are consolidated in the aeneral Consolidated Balance Sheet Andes Copper Mining Company Potrerillos Railway Company Butte Water Company Chile Copper Company Chile Sxplorat'ion Company Chile Steamship Company Incorporated Greene Cananea Copper Company The Cananea Consolidated Copper Company, S,, A Mayflower Mining Company Santiago Mining Company Smokehouse Copper Mining Company West Mayflower Mining Company 97.770 99.650 98.501 98.364 88.833 20.703 99.031 39.938 100 .165 100 100 .002 100 73.504 2.230 .185 1.499 1.634 11.167 . 793 .969 10.C62 to earlier deliveries made temporarily out of inventories, resulting in metal losses which offset the metal gains usually realized from scrap intake. During the year the lead refinery and related plants of International Smelting and Refining Company at East Chicago, Indiana, were sold. A long term contract was negotiated for the refining of lead produced fro the Montana operations of Anaconda Copper Mining Company and the output of lead bullion from the Tooele plant of International Smelting and Refining Company, both of which had formerly been refined at East Chicago. Operations at the sulphide concentrator and lead smelter of Inter national Smelting and Refining Company at Tooele resulted in profits of $530,017*14, as compared with losses in 1945 of $338,442.26, an increase of $868,459*40 in operating Income. Volume of operations at these plants in creased over 50#, and there was a decrease in smelting costs per ton of lead bullion produced. Costs of refining lead bullion under the contract with American Smelting and Refining Company, referred to above, were less than those formerly charged by the East Chicago lead refinery. Increases during the year In the market prices of lead, zinc, silver and copper were also a factor in the increased profit at Tooele. The balance of the increased profit at Tooele shown on page 4 is accounted for principally by the elimination of the 1945 operating loss of the copper smelter which wae shut down throughout 1946. INCOME FROM AND INVESTMENT IN UNCONSOLIDATED SUBSIDIARIES Investment, including advances, in unconsolidated subsidiaries at December 31, 1945 and at December 31, 1946 is shown in the following table, , together with market values based on market quotations of securities which f L^t OF CONSOLIDATSP-gjaSIPIAPIES OF ANACONDA. COPPER mt w t n o c o mpan y 23 AT DECEMBER 31. 1Q46 Subsidiaries wbose accounts are consolidated in the Consolidated Balance Sheet of Anaconda Copper Mining Company and 100$ owned subsidiary companies, and in the general Consolidated Balance Sheet The American Brass Company The American Brass & Copper Co., Inc. The American Brass Company of Texas The American Metal Hose Company Anaconda American Brass Limited Canada Strip Mill Limited The French Manufacturing Company Kenosha Brass Company Waterbury Brass Goods Corporation Anaconda Alloys Corporation Anaconda Sales Company Copper Export Association, Inc. Andes Exploration Co. of Maine Butte, Anaconda & Pacific Railway Company Columbia Amusement Company Compania Sud-Americana Exploradora de Minas, S. A. Frontenac Exploration and Development Company, Limited International Smelting and Refining Company New Jersey Storage and Warehouse Company Raritan Terminal and Transportation Company Interstate Lumber Company Mines Investment Corporation Montana Hardware Company Tooele Valley Railway Company Wa3hoe Copper Company Other subsidiaries whose accounts are consolidated in the general Sbnsollflated Balance Sheet Andes Copper Mining Company Potrerillos Railway Company Butte Water Company Chile Copper Company Chile Exploration Company Chile Steamship Company Incorporated Creene Cananea Copper Company . The Cananea Consolidated Copper i Company, S. A. Mayflower Mining Company Santiago Mining Company smokehouse Copper Mining Company west Mayflower Mining Company Per cent. owned bv Anaconda Copper Mining Company Subsidiaries Minority 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 9? 927 99-717 99-172 98.439 88.833 20.703 99-031 89-938 100 .165 100 100 .002 100 78.504 - 2.073 .118 .828 1.559 11.167 .793 .969 10.062 LflSS.,PW DISPOSAL OR DISMANTLEMENT 0? FTXTTO ASSWTS 95 Cost of buildings, machinery, etc sold or Accumulated dismantled depreciation -.page 59 - page 62 Salvage, less dismantling Loss .(prom*! Anaconda Copper Mining Company The American Brass Company Anaconda American Brass Ltd. Butte, Anaconda and Pacific Railway Company Copper Export Association, Incorporated International Smelting and Refining Company: Sale of plant at East Chicago, Ind. Other Interstate Lumber Company Montana Hardware Company Per page 63 and per Profit and Loss Statement of registrant and 100# owned subsidiaries page 34 Andes Copper Mining Company Butte Water Company Chile Exploration Company Chile Steamship Company Incorporated The Cananea Consolidated Copper Company, 3. A. 640,076.32 603,888.41 1,189-00 23,777-46 402.36 491,606.63 550,406.60 1,189.00 14,719.91 402.36 2,605,832.35 13,108.52 5,036.56 389.43 2,026,001.31 13,108.52 4,750.84 274.59 3,893,700.41 12,481.53 1,530.21 275,998.59 3,102,459.56 12,161.44 1,456.08 275,544.42 4,847.53 2,847.53 4,762.51 1,525-39 33,987.00 30,640.80 111.90 9,225-60 710,568.21 3,041.51 285.72 50.00 787,910.74 320.09 74.13 454.17 2,000.00 3,237.12 114,482.69 22,841.01 111.90* 168.05* -- 130,737.17* 3,041.51* 65.04 3,330.11 --- Per page 63 and per Profit and Loss Statement of registrant and subsidiaries - page 33 $ 4,193,320.78 3,395,994.42 793,996.25 3,330.U ==7^5-- Miami, Arizona The smelter at Miami was down fr >m April 23d until November 17th, when operations were resumed to treat the accumulated concentrates shipped by the Miami Copper Company. There were treated during the year 104,654.28 tons of concentrates and purchased ores, from which there were produced 50,818,557 pounds of fine copper, 120,897.19 ounces silver, and 1,258.185 ounces gold. International Lead Refining Company The refinery at East Chicago, Indiana, treated 7,974.68 tons of lead bullion from the Tooele Plant, and 3.268.31 tons of purchased ore and bullion, from which there were produced 20,683,128 pounds common lead, 914.875 pounds antimonial lead, 2,612,959.96 ounces silver, and 9,020.993 ounces gold. Anaconda Lead Products Company The plant was shut down from March 15th to October 16th. There were pro duced during the year 4,601,553 pounds of white lead; sales amounting to 5,559,418 pounds materially reduced the stocks on hand. The plant is now on an operating basis of about 20 tons of white lead daily. Walker Mining Company Mining operations except development work at the Walker Mine and mill were discontinued throughout the year. The ore reserves at the end of the year were esti mated at 900,000 tons, averaging 4.2% copper, carrying also values in silver and gold. The tramway to Spring Garden was completed. There are on hand at the mill more than 7,600 tons of concentrates, assaying 19.76% copper, 7.46 ozs. silver per ton, and .19 ozs. gold per ton, which will be shipped to Tooele when smelting operations are resumed. Arizona Oil Company During the year the Arizona Oil Company produced 328,574 barrels of oil. Pro duction was lower than in previous years, due to a strike of employees throughout the California oil fields, resulting in a temporary close-down of practically all companies operating in the Bakersfield district. Dividends of $13.70 per share were paid, your Company receiving $111,792.00 from this source. South America Andes Copper Mining Company Curtailment of operations at Potrerillos went into effect at the beginning of the year, and in consequence the development work done was less than that of the previous year. 7 ) Anaconda Lead Product* Company At East Chicago, Indiana, there were produced 15,290,364 pounds barrelled white lead, and 79J21 pounds pulp lead, all of which were sold.. The plant is now operating on a basis of 25 tons daily. Walker Mining Company Operations at the mine and mill were resumed on May 22nd. At the mine, ore broken amounted to 54,482 tons. At the concentrator there were treated 38,652 tons of ore, averag ing 5.62% copper, producing 9,716 tons concentrates, averaging 21.08% copper, with a recovery of 95.59%. Shipments to the smelter amounted to 16,779 tons concentrates, and 3,046 tons crude ore, averaging 11.6% copper. Construction at the concentrator to bring the tonnage up to 275 tons per day was completed, and it is the intention to further increase the capacity to treat a reasonable proportion of ore newly developed. Arizona Oil Company During the year the Arizona Oil Company produced 379,690 barrels of oil. Due to the bringing in of a large number of new wells in the State of California by various com panies operating in that State, the stocks of unsold oil were greatly increased, with the result that prices rapidly declined. This condition had a bad effect on the earnings of the Oil Com pany and, in consequence, no dividends were disbursed during the year. On the other hand, the low price of California fuel oil has been a benefit to the International Smelting Com pany's smelter at Miami, Arizona. Andes Copper Mining Company Operations at Potrerillos during the year 1922 were confined to mine development, operation of testing plant on both oxides and sulphide ores, advance of tunnels on La Ola pipe line, and miscellaneous work. Development There was no churn drilling done during the year, but the work was confined to enlarg ing and finishing the main adit, driving of haulage levels, defining known ore body, and checking drill holes by upraises and drifts. The results were highly satisfactory, the drifts frequently disclosing ore of very much higher grade than that indicated by the drill holes originally bored. 8 J fold. From the treatment of fume and flue dust there were obtained 369.58 tons crude arsenic, averaging 91.11% As,Ot. The Tooele Valley Railway Company handled during the year 429,062 tons of ore and miscellaneous freight. Miami, Arizona At the Miami smelter there were treated 426,348.01 tons of concentrates and pur chased ores, from which there were produced 189,900,983 pounds copper, 608,503.14 ounces silver and 7,506.667 ounces gold. International Lead Refining Company Lead Refinery The refinery at East Chicago, Indiana, treated 52,096.01 tons of purchased ore and bullion, from which there were produced 97,118,093 pounds common lead, 6,376,821 pounds antimonial lead, 6,945,450.19 ounces silver and 20,328.121 ounces gold. Zinc Oxide At East Chicago, the Pilot Plant operated from January 23rd to May 5th, and from December 1st to 31st, 1923. The main plant was completed and put in operation January 5th and operated satisfactorily throughout the remainder of the year. Production of mer chantable zinc oxide amounted to 6,925,425 pounds. At Akron, Ohio, a French process oxide furnace was completed and put in operation March 1st, operating to capacity throughout the remainder of the year. A second unit was completed and put in operation December 28, 1923. Production of merchantable zinc oxide amounted to 5,961,817 pounds. Anaconda Lead Product* Company The plant at East Chicago operated satisfactorily during the year. There were produced 12,607,270 pounds barrelled white lead and 38,084 pounds pulp lead. The plant is producing at the rate of 25 tons white lead daily. 13,505,842 pounds white lead and 44,735 pounds pulp lead were sold. Walker Mining Company Operations at the mine were continued throughout the year. 166,953 tons of ore were broken. A new concentrator with capacity of 750 tons ore per day was completed, and began International Lead Refining Company Lead Refinery The refinery at East Chicago, Indiana, treated 57,479.23 tons o purchased ore and bullion, from which there were produced 105,637,507 pounds common lead, S,930,688 pounds antimonial lead, 5,907,412.43 ounces silver and 18,112.925 ounces gold. Zinc Oxide During the year, plant capacity was increased both at East Chicago, Indiana, and Akron, Ohio. All operations were satisfactory throughout the year. Production of merchantable zinc oxide at East Chicago amounted to 12,153,418 pounds. At Akron, the production of merchantable zinc oxide amounted to 29,730,677 pounds. Anaconda Lead Product* Company The plant at East Chicago was operated during the year. There were produced 13,757,905 pounds barrelled white lead, of which 12,355,979 pounds were sold. Walker Mining Company Operations at the mine were conducted throughout the year. 251,492 tons of ore were broken. The new concentrator fully met expectations, yielding an average recovery of 95.84%. 205,903.40 tons of ore, averaging 3.268% copper, were treated, from which 25,314.64 tons of concentrates, averaging 24.529% copper, were produced. There were de livered to the smelter and sold 2S.747.35 tons of concentrates containing 12,659,429 pounds copper, 217,764.28 ounces silver, and 8,216.408 ounces gold. Arizona Oil Company During the year, the Arizona Oil Company produced 353,026 barrels of oiL dividends were paid. No 9 pNtC00000*99 International Lead Refining Company Lead Refinery The refinery at East Chicago, Indiana, treated 67,137.21 tons of lead buiiion from which there were produced 124,616,850 pounds of common lead, 6,592,715 pounds of antimonia! lead, 7,571,423.79 ounces of silver, and 21,932.080 ounces of gold. Zinc Oxide The manufacturing plants at East Chicago, Indiana, and at Akron, Ohio, wqre operated satisfactorily throughout the year. There were produced 44,797,773 pounds of merchantable zinc oxide, of which 18,712,729 pounds were produced at East Chicago and 26,085,044 pounds were produced at Akron. Butte, Anaconda & Pacific Railway Company The Railway transported during the year 5,384,543 tons of ore and other freight, and 22,851 passengers. The gross revenues were $1,725,586.04; operating expenses $1,364,945.44; taxes, interest, rentals of leased lines and loss on road and equipment retired due to abandon ment of Georgetown Extension, less miscellaneous receipts, $188,255.50; net income. $172,385.10. Anaconda Lead Product* Company There were produced from the plant at East Chicago, Indiana, 11,323,101 pounds barrelled white lead, and 12.101,288 pounds were sold. Walker Mining Company Operations at the mine were conducted throughout the year. 229,616 tons of ore were broken. The concentrator made an average recovery of 94.488%. 263,411 tons of ore, averaging 2.432% copper were treated, from which 25,079.01 tons of concentrates, averaging 24.731% copper, were produced. There were sold to the smelter 26,015.58 tons of con centrates and ore containing 12,764,496 pounds of copper, 230,808.45 ounces of silver and 8,749.911 ounces of gold. Arizona Oil Company Operations of the Arizona Oil Company during the year resulted in the production of 362,415 barrels of oil. Distributions from Reserves to the extent of $293,760 were made by the Oil Company in 1925. From these distributions your Company received $146,880. South American Companies Andes Copper Mining Company Work on general plant construction and on the preparation for mining operations was resumed in February, 1925. From the time of resumption of construction all divisions of the work have been carried forward at a very satisfactory rate, and at the end of the year were in advance of the delivery of structural material and equipment. Mine Work during the year was done on the preparation of the South Sulphide orebody for mining; the removal of waste and storage of ore from the South Oxide orebody; the 9 PNrcooooosoo ri Miami, Arizona During the year the Miami Plant treated a smaller tonnage than in 1925, resulting in a lesser production as compared with the previous year. There were treated 376,770.45 tons of concentrates and purchased ores, from which there were produced 173,591,080 pounds of copper, 459,795.14 ounces of silver, and 11,017.214 ounces of gold. Utah-Delaware Mina During the year there were produced 11,112.02 tons of copper ore, and 134,169.88 tons of lead-zinc ores. In addition, 24,564.26 tons of lead-zinc ore were produced by leasers oper ating on a royalty basis. Rico, Colorado During the year 1926, the International Smelting Company purchased a controlling in terest in the Pelleyre Mining and Milling Company and purchased the old Pro-Patria Mill at Rico, Colorado. The mill has been remodelled for selective flotation of lead-zinc ores, with a capacity of 250 tons daily. The new mill was started November 1,1926, and operated con tinuously for the remainder of the year, and during this period treated 10,675.55 tons of ore, from which there were produced 2,339.28 tons of zinc concentrates, averaging 48.90% zinc, and 1,566.97 tons of lead concentrates averaging 59.30% lead. North Lily Mine Development work was done during the year on the property of the North Lily Mining Company in which the International Smelting Company holds a controlling interest. This property is located in the East Tintic District, near Eureka, Utah. The development work disclosed a body of lead-silver ore and the outlook as to future possibilities is promising. International Lead Refining Company Lead Refinery The refinery at East Chicago, Indiana, treated 83,182.37 tons of lead bullion, from which there were produced 154,898,754 pounds of common lead, 8,112,230 pounds of antimonial lead, 8,319,378.70 ounces of silver, and 24,267.166 ounces of gold. Zinc Oxide The manufacturing plants at East Chicago, Indiana, and at Akron, Ohio, were operated satisfactorily throughout the year. There were produced 40,268,895 pounds of merchantable zinc oxide, of which 16,303,339 pounds were produced at East Chicago, and 23,965,556 pounds were produced at Akron. Anaconda Lead Products Company There were produced from the plant at East Chicago, Indiana, 12,726,707 pounds barrelled white lead, and 12,085,870 pounds were sold. 8 J PNYC00000501 constituting th entire Board. The President, Ur. Cornelius P. Kelley, acted as Chairman of the meet ing, and the Secretary, Mr. E. 0. Sowerwlne, acted as Secretary. The minutes of the regular meeting of the Board of Directors held on September 22, 1936 and the Special Meeting held on October 1, 1935, ware read, and on motion duly made and seconded, unanimously approved. The chairman presented to the meeting statements of Set Income and of Set Current Assets, estimated as of September 30, 1936, which on motion, duly made and seconded, were approved and ordered placeq on file. On motion, duly made, seconded and carried, it was RESOLVED, That the action of the Officers in approving the following appropriations be, and the same la hereby ratified, approved and confirmed: (a) 2,157.00, for repairs to the East Chicago Office Building. (b) 3,000.00, for the installation of a new pump at Perth Amboy. The Chairman stated that the next business to come before the meeting was a proposal to dissolve Anaconda Lead Products Company, a wholly-owned sub sidiary of the company, liquidate its affairs and distribute and transfer all of its assets and property to its stockholders, in complete cancellation or redemption of all' of its capital stock. After discussion, and on motion duly made and seconded, the following preambles and resolution were unanimously adopted: WHEREAS, this Company is the owner of all the outstanding capital stock of Anaconda Lead Products Company, a Delaware cor poration; and WHEREAS, in the opinion of this Board of Directors it is ad visable to dissolve said Anaconda Lead Products Company, distribute all of its assets to its stockholders and liquidate its affairs: HOW, THEREFORE, BE IT RESOLVED, that the' proper officers of this Company be and they hereby are authorised and directed to take such action on behalf of this Company as owner of all the outstand ing capital stock of Anaconda Lead Products Company as may be neces sary or required under the laws of the State of Delaware to dissolve said Anaconda Lead Products Company, llquldata its affairs and dis tribute and transfer all of its assets and property to this Company in complete cancellation or redemption of all the stock of said Anaconda Lead Products Company. On motion duly made and seconded, the following resolution was unani mously adopted: WHEREAS, Ur. Willis T. Burns has been Manager of the Raritan Plant of this Company since 1926, and prior thereto had been in the employ of Anaconda Copper Mining Company for more than thirty years, and because of physical disability has requested that he be transferred to the re tired list; and PNYC00000502 The Chairman presented to tha moating statements of Hat 'Income and of Hat Current Assets, estimated as of September 30,1948, whloh 'on motion duly made and seconded, were approved and ordered placed On file. was: On motion duly made, seconded and unanimously adopted. It RESOLVED, that the action of the Offloers of the Company In approving the following Appropriations be and the same hereby Is ratified, approved and aonflrmed: Ho DesorlPtlOn Amount 480 I Conorete loading platform for Baker Trucks at Perth Amboy. <19,038.00 164 Drilling a third deep wall near reservoir In ii Pine Canyon and purohmslng and Installing new l pump for wall at Tootle Plant 8,150.00 i There was presented to tbe meeting tha contract of sale between the Company and tha Eagle-Pioher Company executed September 27, 1.948 covering the sale and transfer to the Eagle-Plaher Company of a parcel of land on which the Company's East Chicago, Indiana, Plant Is located, together with all buildings and Improvements thereon, all fix tures, accessories, machine send machinery, lead and zinc bearing materials, taterial^and supplies, items made especially for the East Chicago Plant, atemo now/order by the Company and tha assignment to the Eagle-Plcher Company of the Company's 9. S. Patents Hos. 2,156,420 ami 2,174,559 for a Consideration of <988,000 subjeot to any mutual revision upon the comple tion of the Inventory ofmaterlals and supplies, which amount Is to be paid as follows] a. <500,000 was received from the Eagle-Pioher Company upon the ixecutlon of the contract. b. <475,000 Is deposited In the Guaranty Trust Company of Hew York to be paid over totha Company upon the delivery to and acceptance by the Eagle-Pioher Company of a daed and abstract of title cover ing tha realty Included In the oontraot of sale. o. Balanoe of purohase prloe to be paid In oaah by tha Eagle-Plohar Company to tha Company on or before delivery and aoceptanoe of the deed. Water-rates, power bills, real estate and personal property taxes wlllbe apportioned as of Ootober 1, 1946 and fire Insurance on the buildings now In effeot shall be maintained by the Company until the clos ing of the title. After discussion It was on motion duly made, seconded and inanlmously adopted; RESOLVED, that the President or Vice President apd Seoretary or Assistant Seoretary be and they hereby are author ised and empowered on behalf of the Company to execute and de liver to the Eagle-Pioher Company a deed of the following desorlbed real estate belonging to the Company located In East Chicago, Indiana: pNYCOOOOOSO: