Document VJB5NOjnrxonKGjjngDXvDbZK

PLAINTIFFS | EXHIBIT t WV-03938 PLAINTIFFS EXHIBIT /Q/4^00 n r riv.uo, 7th October, 1959. The Director, Australian Blue Asbestos Ltd., PERTH. Dear Sir, COSTS. 'please prepare an estimate of the cost into store at Pt.Samson for rates of 14,000 t.p.a. and 17,000 t.p.e. compared to the present rate. The estimates should show the costs dissected as in the half yearly mining and milling accounts i.e. labour charges, stores, power, management, depreciation etc. Consideration should be given to the method of cpsrating the plant to achieve minimum cost at these rates. With the installed plant capacity it should be possible to produce 14,000 t.p. . running two shifts per day. This seems likely to be more economical than running two treatment lines three shifts per day. Please let us have these estimates as soon as possible. PROy<yri;cy. Mr.Broadhurst recommends reducing the current production rate to 320 tp.w. following his discussions with Johns-ManviXle in Hew York. We agree that you should do so immediately and avoid accumulating stock at Fremantle. Please advise us how you intend to reduce the rate bearing in mind that we will very likely be operating at this lower rate for a considerable time and wish to achieve the lowest possible cost for this rate. There may be some rate a little more or less Produced in Asbestos Persona! Injury Cases: Abrams tead .;r,d copied to Richard F. Scrubs WV-003938  * / The Director, -2- Austrailan Blue Asbestos Ltd.. PERTH. P.No.86, 7th October,195' than 320-t.p.w, which is more economical from the production cost point of view. If so. you should recommend this for our consideration. ^please advise us of the total stock of fibre you"expect to have on hand at the end of December_if the rate is 320 t.p.w, for the rest of the year..- v "Cl +w ** ' -I--:.''."IRECOVERY. It is more important than ever when operating at this lower rate that the production staff achieve the highest possible recovery. There is no justification for sacrificing recovery to get a higher rate when we have excess capacity. , ^- LABOUR.* Engagement of labour and development planning should be reviewed immediately on the assumption that sales for 1960 may not exceed 16,000 tons. GENERAL We are agreeable to your sending a / copy of this letter to th4 Manager, Wittenoom, if you wish. Yours faithfully, pro Managing Director Produced in Asbestos Personal Injuiy Cases: Abrams lead and copied to Richard F. Scruggs /