Document YD7y4yag3Z5EzpYR9wBa2563O

1955 COMMONWEALTH OF AUSTRALIA. 017165 017164 TARIFF REVISION. TARIFF T&Z: . .i > V v . o-`- tf*or-VTH ' .n BOARD'S REPORT I ov ASBESTOS FIBRE. p-f p1 24th MARCH, 1955, MV F.M73/W. Printed (or the tove*Rtinrr of the CtwiionwtALTn tor A. J. Amui at the (torernment Printing Office. Canberra. (prtaten U AaetmUa.i Or7i6G r* PERSONNEL OF THE TARIFF BOARD. *! ' V RjjgMTE?MCCARTHY,- C.B.E., AA$A, Owirmon. . . ^4J^CUMMlNG^AASA,'WT^rr*"?* ~ ^.: * >rT fTS ^SglV.-A. CLARK, B.Com. (Tos.1, Member. ^*i*:p.*B. NEWCOMEN, C.B.E., Member. : <S ^(TM HIGGIN'^Men^r. ' / *)/ ?' '*f >' 1 DATE, B.Ec., Member. ' S' - i.. . - _..V r?:.- - F*l. ELY, Member. .v^A. ', . * ^. :vi -jf- ~ 'y*-. . .. * * *" ... \7%{. 'V- ** . v t*;.- . >.-*:*U.* 4 'ri.r? i i- * >4 *?$ ... o \"f *f ~ "t-f ; For the purposes of the inquiry or>d report on this matter the powers of the Board hove been exercised by-- ~ " M. E. MCCARTHY, Chairmon. V. A. CLARK, Member. P. B. NEWCOMEN, Member. F. W. HIGGINS, Member. 017167 TARIFF BOARD'S REPORT. ASBESTOS FIBRE. On J51b January, 1054. the Minister (or Trade and Erie Wilson Sudan, director, British Belting and Customs referred to tiie Tariff Coord for inquiry and Asbestos Ltd- Cleckheaton. Yorkshire, report ) accordance with section 15 (l)(<f) of the William Stewart Jeffery, director and general 1'arirf Board Act 1821-1053, the following question:-- manager, Australian Asbeatoe Pty. Ltd^ 84 MttVr- Whether assistance should be afforded the pro* dneiion is Australia of asbestos fibre and, if so found, the nature and extent of such assistance. Iu pursuance of the Minister's reference the Board has held the necessary inquiry and submits the follow* ing report:-- road. Marrickrille, New South Walla. Norman George Web#ter, technical assistant. Bell's Asbestos and Engineering (Australia) ltd.. 513 Waveriey-read, East Malvern, Victoria. Aleaander Walker, representing Goliath Portland Cement Co. XtA, Bailton, Tasmania. Robert Lawrence Lewrie, repreecnting Ellis k Clark EXISTING DUTIES. CUSTOMS TARIFF 19N-19M. _ lirtttaii FtWcmtlal Mlietdeira*te Mf. Tirlf. Jtett 174 {*>. AihMtoe, erode Free Fm tteernl Tew*. Free Lid., 204 nindera-atreet, Adelaide, South Aus tralia. Raymond Walter Everett, representing Eaadoe Qament Co. Ltd*, Yorkshire nottae, 24 Spring* street, Sydney, Now South Wales. Orxs Evzsnrcs. TARIFF BOARD VOTES. Ian Charles Henderson Croll, Senior M&aral 1. Vmitr tit Castemt Tariff (Caaadiaa Ffricrtaee) sad --Eoosomiat, Bureau - of Mineral Rnc anii, 483 Costoma Tariff (New Zulaad Pnlmui) tb* good* voder nfennie, vboa Imported from Canada or New Zealand nod eompiriae with tha preference vorialoaa, an admUtad avder. Bourkfr-atraat,Malbowtma^. - -i*.- rOolia Francis Adams, Superintendent of State .the fcittoftaleraalht-Tariff.---^--t - v--Battaaey.Vasfem dustrshtirACsmaadBafPO--w*r Goods dawtfaMe ander ltd 874 (>), wbea erigtaatfeg Perth, Wertern Asftntixr------------- ................. fa and tipurtod -fro~eertaia -yodafawd -topatrtea.- are -- George- FaHx-Hand,- aarietawnninlBg -eaggeerr eoeorded " Hoet-Faveend-Kstion" treatment-- and are admitted nadir aha UlnadtoU Tariff. - Bureau of Mineral Beeourea,*-485 Bourkostreet, Melbourne, CA. '' .......... t. Tie good* voder rtfetaaee are free ef Frimaye duty bn aay eustry. Erie Adams, manager Dominion Industries liA, Ohriitrimrch. New IMPORTATIONS. Official statistics of the goods under reference are act out in Appendix A. EVIDENCE* A copy of the official transcript of evidence tendered at the inquiry is forwarded herewith. PUBLIC INQUIRY. In aecordanee with section 11 (4) ef the Tariff Board Act 1921-1953 the matter covered by the Minis ter's reference was made the subject of a public inquiry by the Board at-- Sydney--2nd June, 1954, 3rd June, 1954, and 4th June, 1954. Melbourne--2lat June, 1934. WITNESSES. The following witnse* tendered erideaee on oath at the peblic inquiry and were examined by the Board:-- In Fatous of PaoncrtTE Dunes. Keith Osborne Brown, managing director, Australian Blue Asbestos Ltd., SO St. Gtcrge't-terrac*, Perth. Western Australia. Malcolm George Sing, director. Australian Blue Asbestos Ltd., 80 St. GeorgeVterrace. Perth. Western Australia. Honorable Harry Charles Strickland, Minister of the Crown. Geeernmeut of Western Australia. Parliament House, Perth. Is Orrosrnos to PaoTxcnr* Drrxci. Alexaurier Sydney Phillips Canaster. director and works munacer. Wunderlich Ltd- Baptist-street. Redfcrn, New South Woles. John Tbyne Adamaou. managing director. James Hsrdie and Co. Pty. Ltd.. Asbestos House. York* street. Sydney. John Seymour Prood. consuiting mining raeinwr. 9 Fin)y*fwl. Tnrmrmmi. New South Wale*. F.J473 9 8UMMAR/ OP EVIDENCE. The main points in the e*L.i~*s tendaxad at tbo inquiry have been summarised and are act out in Appendix B. TARIFF BOARD COMMENTS. Oaiotir or Hmurci. The Minister's reference arose from representations made by Australian Blue Asbestos Limited, Western Australia, requesting that, assistance 1* grv*a_4o. the production in Australia of asbestos fibre. * Imported* Khrc i* at present being admitted free of all duties rpgordlcss of origin and free of primage duty. HtfTOBY or Ikdcstit. Asbestos is a commercial term applied to a group of minerals characterized by a silky fibrous texture and high heat resistance. The mode of occurrence i in well-defined veins of fibres nr in irregular maases disseminated throughout the host rocks, which arc widely distributed in the rocks of the earth's erust; deposits of major commercial importance, however.-' ore confined to leas than a dozen regions, most of which 'are within the British Commonwealth. The mineral, asbestos, has been classified into the two broad groupings of Serpentine and Amphibole. This inquiry is mainly concerned with the three varieties which arc designated--ebrysotile. amosite and erocido* lite. Chrysotilr. more commonly known as white asbestos, is commercially the most important form of asbestos and come* within the Serpentine grouping: amosite and eroeidolite (the latter commonly known as blue asbestos) fall within tbe Amphibole grouping. * *et yrtnird. I in the matter of Personal injury Cases; Lead & copied to F. Scruggs-- - UIV *iO 4 TVbifct tfcrre is no internationally rerornircd standard method of grading asbestos, the most widely used system is that adopted by the Quebec Asbestos Mining Asso ciation for Canadian milled chrysolite asbestos. Tito grade is broadly governed by lenzth of the fibre: the greater the length the higher the grade and consequently the higher the price. The principal uses for aahestos fibre are-- (i) in the case of long fibres, spinning into yarn for wearing heat resistant doth and for insulating materials; (ii) reinforcement in asbestos cement products, mailing medium length fibre; ana (iii) for the manufacture of insulating paper, floor tiles, paints, lubricants, where abort fibres are need. The universally accepted method of selling asbestos fibre is by the short tons of 2,000 lb.: hereinafter, all reference to tonnage in this report will mean short tons. In South Australia prospecting for chrysotile has been undertaken in a number of locations since 2929, but with little success. In this State erocidolite occurs widely iu a belt extending 400 miles north of Encounter Bay but actual production has been recorded only from Robertson aod from Oraparinna Station. Although neither deposit Is being worked now, an aggregate of 910 toss was obtained from them from 1951 to 1953. Two small deposits of axnphibole were worked from 1936 to 1940 for a total of M tons. The principal deposits of asbestos in Western Aus tralia are in the region south of Fort Hedland and south-west of Marble Bar. At Nunyerry and at Lionel, good quality chrysotile is produced and four other small deposits in the same area have been worked. Total production of chrysotile from this region to the end of 2953 was 6,093 toss; most of this was of a grade higher than that generally required in Australia and. waa exported. Is the period 1047 to 1232 inclusive, the major pro In terms of ares and known leserves the eroddolite ducer in the world (excluding the Union of Soviet deposits la the Eamersley Ranges, Western Australia, Socialist Republics) was Canada, producing 73 per are the most important known asbestoe deposits in eent of the known world total. Canadian annual pro Australia. These deposits are similar to the erocidolite duction increased from 663*820 tons in 1247 to 229,332 appearing in South Africa, but the Australian fibre it in 1952. South African and Southern' Rhodesian longer. Whereas the earliest recorded production-was -- piawnrnhodtdihl6sue.tc7'stAipioxaenvrsre&eanietnklnisattoVnreec1sx9opte5nic2ntr.tiiibvmAeupltuyioosronttarfantwlhciaaeesn,k*benpenorioJnwdygs-u.7Scw.t4oioprpnleedrvr'teceopetearnenlt,.-t'~*,-"-iLlCnatrodg1l.eo--9-n3si7caa,l liSetueogrpaaescrroRanateeiltofinunAsinfncwtgiwlhChe1oo9ns.4eLA3tustdhhs,aa--trrtaetplosiaioranknrsotBvwlheueraerteb&AlsalsjiHbydeis&fmtoosr**--->, sente a self sn&iency of 7 per'eeat muy.' ' Tie interest of the Colonial Sugar Qe. J4d., CoannemsBr, Canada produces only chrysotile, the in asbestos fibre was the result of that company's entry bulk of which is of " soft " texture which appears in a into the building materials field is 1938, when a factory full range of grades; the balance is a "harsh" fibre for the masofacture of case fibre insulation board was ehrysotife occurring in non-spinning grades. The established. In order to be in a position to supply the Union of South Africa produces chrysotile, crocidolite, full range of building boards the company also acquired amosite and anthophyllite whilst Southern Rhodesia control of its present subsidiary, Asbestos Products Pty. .produces mainly chrysotile. LttL, which is a small producer only of fiat asbestos The main commercial amosite production in the world cement sheets and corrugates. is in the Petersburg--Lydeaburg area of the Transvaal, me extension ot tne aetmttes of toe Colonial Soger where production increased from 30,382 tons in 1948 Refining Co. Ltd. into the asbestos fibre field hrou^^t to 63,280 tons per annum in 1962; the total crocidolite the eompsny into competition, although only in production from South Africa in the same period minor way, with the well-established asbestoe eemeat increased from 10,903 tons per annum to 44,735 tout producing companies of James Htrdie and Co. Pty. in 1992. Ltd. and Wunderlich Ltd. An early eonfiiet of opinion In Australia the commercial production of asbestos fibre has. hitherto, been on a smell scale, as shown by the following table s-- arose between James Bardie and Co. Pty. Ltd. and the Colonial Sugar Refining Co. Ltd. concerning the acquisition by the latter-company in 1943 of- the' Witteuoom blue asbestos deposits. James Bardie end mi. | not Co. Fty. Ltd. contended-that these deposits could not W -- tn?. ISO. ll. mo. IMS. operated profitably because blue asbestos would only be used is the manufacture of asbestos eement for the Chnaotil* 38t CroodoJito .. 1,030 Otter tvp** .. 123 Tons. 309 403 325 1,314 363 C6 . 11,208 l 1.253 1,808 I.1M 1.367 ! 3,293 14,250 1 .. | .. - same purpose as South African amosite was used, and the amosite could be obtained for about half the price at which it was estimated the Western Australian blue asbestos would be offered for rale. James Htrdie and Co, Pty. Ltd. intimated that it would, however, be Whilst ehryiotile is in strong demand, deposits in Australia are limited; conversely crocidolite reserve.* far exceed the apparent demand. prepared to buy at prices equal to the landed eost of Imported fibres any Australian fibres equivalent in grade and quality. The Colonial Sugar Refining Co. Ltd. considered that the development of the Wittenoom Deposits of asbestos occur tn Xew South Wales. Tas mania. South Australis and Western Australia. The only deposit being worked at present in Xew South Wales is one of chrysotile at Baryulgil, 62 miles north west from Grafton,-where a maximum yearly output of Gorge deposits bad good proepeets of tueeesc even* without the support of James Bardie and Co. Pty. Ltd., jsnd that there were other possible uses for blue fibre "tKsn in the products being manufactured by that company. A3G tons was obtained in 1953; other small deposits of chrysotile occurring, but not at present borne worked, are situated at Woods Reef (V2 miles east of Barrabal and at Red HilL near Broken Hill. The development by Australian Blue Asbestos Ltd. of the Wittenoom Gorge deposits in the Bamersley Ranees. 180 miles inland from Rneboume and Point Samson, encountered all the problems inherent in the STo lestes are current in Tasmania, although there *-*tablihment of n mining venture in such an isolated are occurrences at four or fire Wat:r.s. Total Tas- r<`*ion. particularly during the war period. Labour was maaian production from 1899 to 1953 was 905 tout of difficult to obtain and equipment and transport costs chrysotile and 7 tons of tmphibole. were very high. Tu addition the nature of the host Produced in the mailer of Asbestos Personal Injury Cases; Abram lead & copied to Richard F. Scruggs. U17ibl) racks predated difficulties which required a special technique which was evolved only after con* sidetablf delay and experimentation. The bard and abrasive nature of the ore added to tnillinx costa and contributed to the general difficulties which caused the company, in 1946. to make representations for assistance from the Western Australian Government and tbe Commonwealth Government. The result of these representation* was that the Commonwealth Government, iu association with tbe Western Aus tralian Government, agreed to provide a freight sub sidy of 10a. per ton on asbestos shipped from Point iSaniwm to i'rcmantie and an additional subsidy of 27s. per tou ou asbestos sent by road from Wittenoom to Point Samson. A further subsidy was provided on goods sent by road from Point Samson to tbe mine, with the exception of building materials for houses built under the Commonwealth-State Housing Agree ment. Although the assistance thus agreed to was for a limited period and was to be reviewed in_June, 1949. it was continued beyond that date and did not eeasc until July, 1952. AccordLog to the evidence of Hr. F, G. Mead. Assistant Mining Engineer of the Bureau of Mineral Resources, the Commonwealth's share of the subsidy amounted to 480 in 1947*48; 1,985 in 194849; 2,745 in 1949-50; and 7,284 in the period from 1950 to the end of June, 1952. . . .The Commonwealth .Government also provided the funds under the Commonwealth-State Housing Agree ment with which the Western Australian Monsing Commission had 152 houses built at Wittenoom for a total cost of 281,634. The booses were actually bnilt by Australian Blue Asbestos Ltd., at eost plus 2| per cent. In addition the State and Common wealth governments have provided the cruel services, via., water supply, school, hospital, police, post office and maintenance of tbe aerodrome taken over from the company. The continuous efforts which Australian Blue Asbestos Ltd. undoubtedly made to aeeure economies in mining sad milling operations met with some unceess. but, in face of the increasing supplies of asbestos fibre which became available in oversea* roancries, the company bas had difficulty in effecting nlci and unsold stocks have progressively increased. The possibilities, therefore, of profitable operation, quire apsrr from the sped to recoup the losses of the earlier developments! period, have not improved. RfcQCfchTs fob IXtt a-nd Reasons Tnsaxvoa. Un behalf of Australian Blue Asbestos T,H Mr. 1C. O. Brown requested that the existing Tariff Item u>r Asbestos--1174 ik;--at present duty'free from nil '"minifies, bo amended to provide a 40*pcr eent. tariff importations of grades of asbestos fibre imported into Australia of length equivalent to Canadian Grad ing Groups 1 to 5, with the proviso that exemption apply to these gradings if entered for use in manu facturing articles, tbe total asbestos eostent of whieb consists of not less than 13 per cent, by weight of Australian croeidolite asbestos. On behalf of the Western Australian Government the Honorable 11. Strickland, M I.\ Minister for the .North West, supported the request for tariff protection. The principal reasons advanced in support of the mquest for a protective duty were-^- (i) asbestos fibre is a strategic mineral and it is nationally important that deposits of the magnitude occurring in the Hamartley Ranges, Waters Australia, should be fully developed; (ii) the grade of croeidolite produced at Wittanoom Gorge and the adjacent Western Gorge is at .' leut comparable with overseas eroodotbs and if a minimum consumption it aannd the Australian fibre will be able to eospetewith imported fibre; (tii) the use of 15 per eent of Australian croeido lite in asbestos cement product fibre mix tures would ensure profitable production of the Australian fibre; - .. (ir) the economic welfare of the inhabitants of the township of Wittenoom, and to a great extent of the population of Boebounie and Point Snmoon, is dependent upon the euccessful operation of the asbestos mine; (v) tariff assistance is necessary to ensure that the financial assistance already given by tbe Western Australian Government and the Commonwealth Government to foster development of the North West will not be nullified: <vi) the use of Australian croeidolite in place of t'anadiau riirysotilc wonld save Australia dollars. The figures given in evidence to show tbe declining eost of producing croeidolite at Wittenoom over the past four years due to increased ontpnt and improved technique wore as follows:-- -* <***,-p-F-r-.r-a-i-nu- Uaibtl*nt. Vr ending 3o.fl.SJ ,, .. to.flit .. ., .. 30.C.M .. S Month* I* 3I.12A3 .. 14)95 tM4 9M0 tsto SHI tot lot u; The production rate had reached 4.500 tons per annum at tbe date of the inquiry. The eost of grade 8 fibre fthe baric grade! into store at Fremantle was stated to be 13;. per ton. As again** incresses is output shown above the sale* of fibre over the three years ended 30th June. 1953. were-- Tw SuM- 1 | s t miiMW. | TMftL 30th June. 1951 30th June. (0.13 SOtfc ISM .. 1 sw : 555 i 1.113 MM: M3 ! r.37fi IA*3 l tAM W87 i1 OMWITtOS TO TK* IilfOHlTJOX OV A I>CTT AND Reasons TukatLSos. On behalf of Jaiue* Htrdie and Co.. Mr. J. T. Adamson opjx>*ed tariff protection but requested that if :i**itancc be atforded aswstn* production in Australia *ttfh a*sistanee riiould be confined to the payment of a bounty. Mr. A. S. P. Songster, on behalf of Wunderlich Ltd., also opposed tbe imposition of a duty, and requested that any assistance afforded the asbestos industry in Australia )>c given in such a way as not to compel asbesto* cement product manufacturer* to use Australia* .brc. The rmiaining opposition witnesses contested the application on the grounds that *ch imposition of a duty would place n eriotis financial burden upon the hmint1*** they represented. The principal reasons advanced in opposition to a protective duty were-- til any administrative action designed to compel manufacturer* to use Australian eroeidolite would raise costs of production generally and in specific cases would require modifi cation of existing machinery. cs Personal iyuy p&t*' s Lead & copied to d F. Scruggs. 017170 e ( U) the granting of a 40 per cent, duty on imported asbestos would place asbestos cement product manufacturers at a disadvantage in that high prices wouid depress #a ies ami the urn- mate users of asbestos runout sheets. in the main j-ersons in the lwer wage group. would pay more for the small hbre-cemeot dwellings} (ui) the proposed duty would not effectively save dollars because the usage of crocidolite would merely replace South African amosite; . (tv) the development of the remote asbestos deposit in Western Australia was ill advised and Although there are several aatlj deposit* of chrao tiie asbestos earreatly beia* worked ia Awtralia/the demand for thif vorjety is far ia excess of available local iupplie* and the bulk of .iustrsiiaa requirements is drawn from the extensive Canadian adds. Amosite Jibro is imported from the Union of South .i/riea and Southern iihodesit, where large deposits exist the output from which is being rapid!? increased' The very extensive deposits of asbestos in the Wittenoom Gorge area of the Hamersley Bances is Wetter# Auatxalia, which are being worked by Aus* iia Blue Asbestos Lti, consist of crocidolite fibre (blue asbestos), which is commercially the least imoor tant variety from the point of view of orewmt AmZnA The total UHge of asbestos fibre is Australia at the time Asbestos .Ltd. states that the average price of its present time is approximately 32,000 toss. It has been fibre could be reduced to 110 per abort ton, at which estimated that 05 per cent of this quantity is used in price, it is claimed, it would be competitive with equiva- tbe production of fiat and corrugated sheets, pressure lent grades of imported asbestos fibre. The company Sand sundry other fonoa of asbestos cement pro* believes that overseas markets eould be found for 4,000 The remaining 9 per cent, is used in the tons per annum at a price equivalent to A.U0 per short, manufacture of heat-resisting fabrics, brake linings, ton t-o.b. Premantle and that it would he necessary te hosier lagging, materials, floor tiles, gaskets, dispose of 4,000 tons per within Awftr*K* _ boxes, packings and painu. .. . _ , ^^^-Ia-iU-afforta to -radons tha cost- of *prodaatM^f There are only four massfaetnren of asbestos earnest ~ asbestos fibre, Australian Bias Aibmtos Ltd. is develop-- products. Of these, James Bardie and Co. Pty. lad. ing a richar ora body at Western Gorge, * tributary of produces nearly 70 per eeat of the total output and Wittenoom Gorge. The company's,plans, however, Wunderlich Ltd. about SS per cent The remaining provide only for a proportion--up to 80 per cent -- proportion of the total production is divided between of the total production of fibre to be drawn from the Asbestos Products Pty. Ltd.and Goliath Portland Western Gorge deposits on the basis that this would. Cement Co. Ltd. conform with accepted mining practices and enable The varieties of asbestos fibre used in asbestos the life of the whole mine to be extended to its utmost, cement manufactures are ehrysotile, amosite and croei* The alternative of mining only the richer ore depaaita dolite and of these ehrysotile is commercially the most at Western Gorge was not acceptable to the company, important Australian consumption of the three although, on the basis of evidence given by Mr. C. F. varieties has hcea approximately in the proportions of Adams, Superintendent of State Batteries in the Mines 60:30:10 respectively, but, in 1633, the statistics of Department of the Western Australian Government, the usage showed the relative proportions as 6$: 2S: 4. company's return would show a profit instead of tbo Each type of asbestos fibre has particular properties present foes if the whole of the output eould be obtained which determine its suitability, either alone or in com* from Western Gorge. Mr. Adams's evidence indicated bination with other types, for various uses. that tha recovery of fibre from Westers Gorge it Mr. J. S. Proud, a consulting mininr engineer, givina expected to yield 1 ton of fibre ior every 13 tons evidence on behalf of James Hardie and Co. Pty. Ltd." "f rock mined, whereas at Wittenoom the yield was 1 stated that there are four considerations upon which ton of fibre from 88 tons of rock, the strength. Quality and cos; of an asbestos cement In 1946, at the time when the eozcpaay made repre* prodnet depend. These are-- santations for governmental assistants, its plans were - (j) 7be amount of asbestos used: based on a production rate of 6,000 tons of fibre per fii) The tensile strength of the asbestos: annum. At a then selling price of IZO per ton f.o.b. (in) The bond strength between tbe surface of the Fremantle this was estimated to provide s return on asbestos and the cement; and capita) of 3 per cent The price of 30 was assessed (iv) The speed of filtration and final densitv of tbe in relation to 4K Canadian fibre, the cost of which *u product. * 48 per ton at Sydney. Each manufacturer, therefore, determines the propor- Tbe present cost of 4K Canadian fibre is 100 per 'ions of each tvpe of fibre and the quantitv of cement ton landed in Australia while, on a proposed produc* and water in the mix according to his own formula, fion schedule of 3,000 tons per snnum, Australian Blue baring retard to the technical operations best suited Asbestos Ltd. must sell at 110 per ton Fremantle in to the tvpc of machine which he operates, as well as to *rdcr to make s reasonable profit Tbe company claims the final costs of the product. Much of the discussion that this increase in price is not out of place compared at the inquiry centred on the technical characteristics with the increases which have taken place in the of the fibres used by Australian manufacturers and the prices of other forms of building materials and that it relative costs of manufacture as a result of the sub- redacts the additional cost of labour and transport which stitution of one fibre for another. have taken plaee since 1948. Australian asbestos cement manufacturers cenerally favour the use of a bish proportion of soft ehrysotile , Coatr-vjcra I Boroa.iL. fibre to ensure the required bond strength between fibre Anstr&Ymn Blue Asbestos Ltd., in estimating that the and cement and a quantitv of harsh fibre, equivalent to Wittenoom venture would be profitable on the basis of about one*toird of the total usaee. of amosite or eroei* a production and sellins rate of 9.000 tons of fibre a dolite cr a combination of amosite and crocidolite, year, has allocated a theoretical market of 4,000 tons aecordins to the speed of filtration required and the for consumption in Australia and 4,000 tons for sale density specification of the final product. overseas. -reduced in tfte matter of Xsbestos Personal Injury Cases; Uwams Lead & copied to -*rchard F. Scruggs. 017171 7 in regard to the Australian market, the company contend! that, for Wittenoom to continue to exist. James Hardie and Co. Pty. Ltd. must use at least 15 per cent of Australian bine fibre out of its total usage of asbestos fibre. In the company's otto words. " If Hardies firmly believe that they cannot pay more than 130 per ton for Ho. 3 blue fibre, then obviously a high protective tariff is needed to make sure they will use blue fibre rather than import. James Hardie & Co. Pty. Ltd. is such a large producer, so long established and with such a long past history of success and current strong financial position, that it could afford to_ continue to refuse to use the blue fibre, unless there is a high monetary incentive for them to do to." Australian Blue Asbestos Ltd. claims that, because of the policv of James Hardie and Co. Pty. Ltd. and the view of that company in regarding Australian blue fibre as being equivalent only to South African amosite at 50 per ton, a protectio'n equivalent to 00 per ton of Ho. 3 grade Australian blue fibre would be needed. Australian Blue Asbestos Ltd. requests a duty of 40 per cent, ad valorem on all imported _ fibre (including chrysotile), but with complete remission of the duty if. Australian bine fibro is used to the extent of not less than 15 per cent, by weight of the total of all asbestos fibre contained in aihestoe cement manufactures. oasis. At the present time Australian blue erode 3. which costs 135 per abort ton f.o.b. Jrmantle. would land into the company's Sydney store at 144. while fresh zone amosite lands into the tame store et an average cost of 5$ 10s. per short ten. The company's total asbestos purchases for nse is 1054 amount to 86,046 tons. The value of this quantity is 2,132.400. of which COO tons, costing 33.000, arc obtained from the company's mine at Baryuigil, Hew South Wales. The balance of 36,046 tons, valued at over 2,090,000, is imported and a 40 per eent. tariff on the value of that quantity would cost the eompany 603,000 and seriously damage its business. If, as the only alternative, the eompany is obliged to nse 26 per cent, of Australian blue, Le^ 3,997 tons in place of an equivalent quantity of fresh cone ament* tbe additional annual cost would amount to 347,700. The total increaae in price to consumers which would be necessary to recover that additional cost, without making any profit margin, would amount to 431,500 per annum. If Australian blue were, reduced to 110 per ton f.o.b. Fremantle, the additional annual basic raw material cost wonld be 347,000, and the necessary additional eoot to the ronmmei would be 300,830. In tbe view" of JamerHerdie'and Co/Pty. Tag, the the granting of a aubridyrin order to keep rawmatenal.- ef<*aaom*. T7. yoeyag^toaKi be quite ineffective as a means of protection, as it would uot necessarily have the result of eompelline James Hardie and Co. Pty. Ltd. to nse the local product instead of South African amosite. The applicant company stated that, on the basis of a comprehensive series of experiments which it bad conducted, there were no technical reasons why asbestos cement manofactnrera could not use up to 35 per cent, of bine fibre in their mix. In advocating tbe nse of Australian blue in preference to imported fibres, particularly South African amoaile. Australian Blue Asbestos Ltd. claims that; as a result of various trials which it has carried out in association with Its parent company, Colonial Sugar Refining Co. Ltd., into the properties and uses of asbestos fibre, the use of blue fibre would result ia increases io strength to weight ratio and yield, and tbe conclusion is drawn from these experiments that blue fibre is more than a replacement for cheap-amosite and is an effective replacement for 4K chrysotile. In tbe company's view it is superior to 4E fibre and therefore worth more per unit. Virwi or HanuFAcmoi. Hr. J. S. Prond. consulting minine engineer, stated, on behalf of James Hardie and Co. Pty. Ltd., that fresh rose tmoiite of South African origin and Western Australian blue asbestos are of similar reinforcement valne and both, being harsh fibres, are parallel in uaage. Amosite is at present being used to a maximum extent and Canadian ehryjotile to a minimum so that any enforced usage of Australian crocidolite would only renlace portion of tbe amosite at present being imported from South Africa. To his view, blue asbestos, occurring in vast deposits both in Australia and Africa oeeuoies only a minor v>le in world trade and. as ebrvsotile reserves are ademiate for many decades, it would be mane rear* before large tonnage* are required from Australia or African source*. Hr. J. T. Adamson, managing director of James Hardie and Co. Pty. Ltd., said that, as basic taw materials, fresh roue amosite and Australian bine asbestos are equivalent and inter-changeable in asbest** cement products, but are not comparable on a price bloc) is A.78 20a. per teaLo.b. Cape Town,. Tbe principal opposition of Jamea Hardie and Co. Pty. Ltd. to tbe imposition of a tariff on the Bnec euggested by tbe applicant eompany is based on-the high additional eoste which that proposal, if eaforeed, would bring about. Increased prices for asbestos cement sheets wonld result in higher costs in the low bracket building trade and wonld also tend to corrugated asbestos cement sheets much less competitive with corrugated galvanized iron for roofing purposes. Tbe additional cost would also make the larger diameter concrete pressure pipes non-competitive with cast Iron pipes. James Hardie and Co. Pty. Ltd. use the Wp**?*1^ type machine ia the manufacture of aabestoa eemeat and, apart from the original Hatschek machine imported from 'Switzerland in 2027, all the company's machinery and plant have been designed by tbe com pany and built in Australia.' A* a result of'coatinnone capital expenditure on new and improved equipment with greater mechanization, tbe cost of manufacture of eabeston cement products since 1946 has increased by only 40 per cent, although the cost of raw materials (asbestos and cement) has increased by almost 200 per rent, and the basic wage has also increased by about the same percentage. As basic raw material eosts repre sent 65 per cent, of tbe company's production cost of its main lines, it has only been bv increased manufacturing efficiency that it baa been able to develop to its present ir* and importance to tbe community. The proposal of Australian Bine Asbestos Ltd. wonid. if implemented, destroy many of the valuable results achieved in main taining tbe asbestos cement industry as a supplier of low-cost building materials. Wunderlich Ltd. claims that crocidolite is unsuitable and would nt normally be u*ed except in eases where suitable grades of chrysotile and amotite were not available. Tbe eompanv is reducing its usage of crocidolite concurrently with its return to the prwwar mix of chrveotile and amosite. The comnsnv has boon uring Fniirdrimcr machine* and ho* found that, with rhrw machine*, it was jyMsible to use a limited propor tion nf AustroHan bine fibre, but its high price made its i*e eeonormeallv tmiustifiable. < _* ndMd F. SOU99S- 017172 8 Horerer. the filtration properties of the fibre arc Evidence was given that with a profit margin of $d. good and helped the company to maintain production si--}r square .yard of asbestos cement sheet, a maaufatH a time when well-graded amoritw were not available in :;irer could choose to absorb id. per square yard, which nfficient tonnages. was rvprwnted by an increase of 10 per 'ton in In order to reduce costs. Wuutlvrlieh Ltd. is carryine nut a programme of replaeine the Fonrdrimcr machines with Hatsehek and Magnaui machines which are proving very satisfactory. lu these machines, unice* modified at considerable expense, the Australian blue overage fibre coat. A tariff of 40 per eeat. ruSicieatlj hicii lo make the increase 30 per ton nr more, vts *nidered by the applicant necessary to ensure that i m.mtifaetttrer would decide to use IS per rent. Vntra!ion bine fibre. fibre will not run satisfactorily, but no difficulty has been found in using up to 20 per cent, of suitable araosites on the Hatsehek and Htgntm machines, as the amosite provides the filtration rate necessary for the faster speed* of these machines. la order to Uluatrate the effect of the monetary advantage of iving IS per cent Australian eroeidolite in lieu of iucurriug the 40 per eeat, duty, the applicant submitted a series of examples shoving the relative rest of typical fibre mixtures. Using the above In the ease of Wunderlich Ltd., the coat of imported vnrts those comparisons are shewn herennder>-- fibre for 2654 would be approximately 754,000. A 40 per cent, tariff would increase the cost by 366,000. Usage of fibre in 1064 would be about 6.500 tons and tliv alternative of using 15 per eeat. of this tonnage, i.r.. 1,275 tom. under the applicant company's proposals for the compulsory use of Australian blue asbestos would, st present prices, cost Wunderlich Ltd. X1S3.600. As the blue fibre could not be used on the company's Hatsehek and Jftguant machines, it would be necessary Saaapt* >-- iOOpQMUlX rvitOUctmcfs 66pMMst.4K \ Suulil__ UwfMt. UmJ/ to allocate it to the existing Fosrdrinter machines in place of amoaites and this would not be practicable, as a quaatitycfA^Tfiions woqld represent .$5 per pent, of the total fibre used s Sbece wsauiaes 'ana would has* 60 f$r will *"*?.' ^4Sprl.ia orvttkt 4fwi 40: the effect of producing-a sheet blue in appearance com pared with the standard light grey in the company's other products. The variation in colours would ereate an itnponible situation for the ecmpa&r in marketing this product *0 jwrMt.4K 40pWMsr.SK 40 par mbs. Mu or witO: 6 Mr mbs. 4K . 40pofMW.SK OolUth Portland Cement Co. Ltd. has a tnueh smaller output of asbestos cement products than either of the 40fWOMt CMC Is ptr MfU. Mat 'previous companies mentioned. This company opposes the proposals of Australian Blue Asbestos Ltd. on the grounds of the intolerable financial burden which would be placed on the manufacturer by the compulsory usage CONCLUSIONS. of nigh eoat Australian blue fibre, or the alternative During the inquiry it became quite evident to the penalty rate of tariff which the applicant company has Board that the question of the uae by manufacturers of ought greater proportion of Wittentx>m asbestos had pre The only other manufacturer of asbestos cement pro ducts is Asbestos Products Pty. Ltd., a subsidiary of Colonial Sugar Refining Co. Ltd. _The applicant com pany states that Asbestos Products Pty. Ltd. uses an average of SO per cent, of blue fibre in addition to a small quantity of amoeito.- Aetata* Product* Pty. Ltd. was still working on some stocks of blue fibre which it had purchased at 170 per ton at a time when Aw Lilian Bl&e Asbestos Ltd. bad excess stocks of this fibre nt Fremantle. The company's total fibre con sumption has never been more than 2.000 tons a year and. hecsose of its location, it is not possible to extend the aiae of the business. Asbestos Prodnrt* Pty. Ltd. eonld not. however, continue to ne 20 per font, blue fibre at a cost of 170 per ton while competitive com* panics were able to purchase it at 180 per ton. viously been the subject of negotiations and discussions between the principal parties. As the result of anta gonisms which had arisen, there was little evidence of -a willingoees to eompromije and what, in easier mr- vumstances, might have been minor points of difference^, were contested with a vehemence more appropriate to major points. On the question of relativeqeelky,-whita is an important matter, there was a conflict in the toehuical evidence submitted by the opposing interests. Tor the purpose of these conclusions however, and without ommittirg the Board tc an opinion on a matter which, if necessary, should be determined by experts, the Board has assumed that manufacturers of asbestos cement products in Australia could use about 4,000 ton* per annum of Wittenoom material without detriment to their products. On the basis of this assumption the problem is largely Omtr of rvroxTco *srr Am*-iit.\x Asswtos Fnax. .red.uce.d t.o .matters of coats, and pr,ices in which e: The resueetive current costs of those tvpes and grades ** efJ Proposed method aarnd measure of of fibred S rttoct to be used in asbestos cement -**** ** of "** PTM** necessary. beet manufacture are shown hereunder. Trr- <-*f, laaiCwl iSviImv. C A - wr tftn. rsBsSisft Chrrvml* 'I*J ('AMdisn Chrysolite #K South Atrina Amosite .'* Australian trewdolilv *SK South African CweWnUt*-- Oraile S. Opr Blue iK Crsde Cape Blue .. rai (vi. mn km vis" f.o.. r*fH*i,ir, ****( - .i- traJiM Hi* *#! i.td. w li w-tdae ** t "at* >* Mtiir. The costs of production by the applicant company ud consequently the selling price depend upon output. The price of 135 jer ton f.o.b. Fremantle being charged by the eompany for grade 3 fibre in November, 1W.'1. was based on production and sale at the rate of 4.000 tons per annum. With production at 8,000 tons per annum the eompany claimed that it would be able io aril at a price of not less than 110 f.o.b. Teemiatk. hot 4.000 tons of this quantity would have to be exported. * _ Millar (if i i * >J i I 01 I X 73 9 In commenting on tbe scale of production tad export prices in the overseas market, or to adoot a eombina- of iti eroeidolite fibre dense the earlier period of the 'ion of ixitn thfc$e courses. It is significant that the operations of the Wittoaoow mine, the representatives timanys taritf proposal includes the words w. . . of Australian Clue Asbestos Ltd. said-- the total *.-bosto consent of which eonsisis of not less Fro J1UU to 1052 atbmoi Mr* *** in rerr *hort stmpir saau 15 per cent, by weight of Australian eroeidolite ihrwufoont tne world (and production from Wittenoom was terv lowi and tbert nt no difficult? in tii*inftinir i the irlwj* output from WitUnoom. In 1D3.1 a rvo*>uion occurred in the wnnd market and. a* ii? that time w<* tvere relying iarnlv on tlic orcraeaa market to take our production, U became ineraaaiiiiijr difficult to dispose of the output with :<:b!-st or such greater percentage as may be gazetted from time to time by the Afinister for Customs r. The *ipany also admits that it would be possible to keep up the price of blue fibre, even if costs of production were to fnll. but it states that it is prepared to aeeept a out incurring heavy' toaea. The overaea* recession nmtinneil onr opinion that it was not aaie to rely largely on au export market; although, because of the reluctance of Australian eoBtumec* to ut* Australian blue fcfcrs, no had been forced to do an. profit margin not in excess of 10 per ton. As this would be on tbe full mine production, it would be within the terms of the company's assurance to charge higher prices to the Australian consumer in order to sell exports at world parity prices. It follows, there* ^ Over tlie period 1948 to 1952, Sooth African pro* fore, that to bring the price down to 110 per ton doetion of eroeidolite fibre rose from 10,900 tons to f.o.b. Fremantle the following conditions are 44,700 tons per annas and it is against production of uecesrery.'-- this magnitude and the lower mining eosts in South Africa that the applicant company's estimates of over* --ten markets must he measured. The company believes '"`that its fibre has properties whieh should make it acceptable on the world market at a price equivalent to fiA.110 per short ton Fremantle and to some extent this view is supported by the fact that it has negotiated sales in the vicinity of that price. In the limited market trhieh exists for eroeidolite fibre, Australian supplies would eome into competition with similar grades of South African eroeiaolite whieh provide the hulk of the world demand for that type of fibre. Any in* 1. There must he au export market for about 4,000 tons per annum. t. The export market would need to yield about 110 per ton f.o.b. Fremantle. 1. Costs of prodaetion should not increase. 4. A further capital expenditure of 70,000 by the eompany. 3. Australian users most take about 4,000 toss per annum at a price of 110 per ton. _ Jen* *0! A*' ' , - -J* ' - - *.** 1 --***!! * There is no aasuranee that tho firet three of these era* litious will be fulfilled; the fourth rests with the com crease in the costs of production of Australian croci- pany; the fifth depends upon fulfilment of the first dolite, or any appreciable drop in the price of the four aud to the extent to whieh these are sot folfiBod South Afi lean fibre would invalidate the assumption* the price to local users would need to he above 110 made by Australian Blue Asbestos Ltd. of a firm and l#r tow f.o.b. Fremantle to keep the company in profit* continuing overseas market for its product. The Board able production. It is dear that the best expectations considers that the company* assessment of so outlet of the company are that it can maintain a price as nit the world market for 4.000 short tons of Australiau low as 110 per ton f.o.b. Fremantle for domaatie eroeidolite per annum at an f.o.b. price of A.110 purposes. suffers from a degree of optimism which is neither tupperted by (he history of its earlier marketing experiences nor justified by the likely trend of its future competitive position. fu formulating itsproposals to ensure tbe profitable exploitation of the wittenoom asbestos deposits, Ana* rralian Blue Asbestos Ltd. has given scant conaidara* tion to the effects of its proposed selling price on the As an integral part of its proposals, Australian Blue three independent manufacturers of asbestos cement Aabestos Ltd. requests the imposition of a tariff rate products, or on the cost to the community in general of 40 per cent. ad valorem on all imports of asbestos <>i the increased prices of those products. On the hub fibre, such duty to be remitted if the manufacturers ..f the substitution of a minimum quantity of 4,000 o*e at least 15* per cent, of Australian blue in their urns of the applicant company's eroeidolite* at a eost total fibre consumption. On the value of imports in iuto*tforc Sydney, of 119 per ton in place of an aqni* 1953, a rate of 40 per cent, would increase the cost to valent quantity of South African amosite at 58 per manufacturers-f asbestos -earnest products -by au -ton. the additional cost to manufacturers would bar " amount conservatively estimated at more than 700,000, 248.000 per annum. In order to ensure the local and tbe applicant company readily admits that this i-imsumption of the minimum quantity of 4,000 tone. rate was intended to provide a tariff barrier which t!u> rempany has proposed that 15 per cent of the would make it uneconomical to manufacturers to absorb total fibre used must be Australian eroeidolite. The the duty on imported asbestos instead of using Aus -MUipulsory use of this proportion at the present con* tralian blue fibre. The effects of these alternatives on xumntion rate of about 20.000 tons of asbestos fibre the eosts of individual manufacturers, as estimated by would represent 4,500 tons and the additional eost to them, are. as shown above, much in excess of this manufacturers would be approximately 279,000. figure. The investment by the Colonial Sugar Refining Co. Quite apart from the questionable principle of com Ltd. in Australian Blue Asbestos Ltd. is stated to be - pulsion involved, the proposals ignore, or leave to be vi.85C.000. A further capital expenditure of aboaffitc inferred, the developments which the Board considers 70.000 would bo required to increase milling capacity are likely to occur if action were taken on the lines 1.7 8.000 i.ww <>f fibre per annum. A maximum profit anegreted by tbe company. If recognition were given `'larirjn of 10 per ton would represent a total profit to the needs of Australian Blue Asbestos Lid. for .> C$0,000 nr Ires than 5 per rent, on the total capital assistance in the form desired by that company, a f rite company. ud would .have the re*ult of aUowj'n* principle* would l>e accepted and *a pattern set from t1:- undertaking merely to survive, with little expeeta- which there would be no escape in tuc event that the :!> of minding production even if eosts could be ci-tnntB.r found itself unable to dispose of the estimated induced. To contribute towards this unsatisfactory xport volume of 4.000 tons per annnm at a urire of r>**iit manufacturers would be required to nay at least SAA10 i-r tn; in such circumstances it would 1* i'273.*,,w more for their raw materials an/i the eost to ".ccerssry to increase the proportion for the local le ojtnmer of asbestos products would be propor- rntrkot Vvond the 35 per cent now proposed a* a tinnatciv hieber. In addition. Wunderlich Ltd. would hasia, or raise the east of fibre to tbe Australian tnanu- need to incur the expeuse of modifying its new Hsteebek actureri to offset losses incurred in selling at lower and lianas: machines tc^pe'Australian blue fibre. Produced in the matter of Asbestos Personal IrW Cases; Abrams Lead & copied to Richard F. Scruggs. 017174 10 The company's proposals involve ice virtual prohi bition 01 imports octii local production is disposed of; they also involve the coapuiaory use of a proportion ot Australian aaceriai at a cost which will be at least Twice the cost ot the imported material now being used, and in tome instances they involve local wars in increased expenditure in adapting plant. The Board views with concern the prohibitive cud compulsory aspects ot' these proposals, Justification for them might lie in defence or strategic aspects which are outside the ambit of the Board's considerations, but ou economic grounds the industry has no features which single it out for more generous treatment than has been afforded to many others whieh have been examined from time to time and which have only wanted the assured sale of their production within Australia at an assured margin of profit to he certain of success. On economic grounds it has, is fact, fewer claims, principally because it does not appear to hare any pros* peets of being able to supply more than a portion of Australian requirements--and then only at excessive costa. The material mined in Australia can be mixed with Canadian, bat cannot entirely displace it The Board eonld not fail to be impressed by the fact that users of asbestos, whose itreo^th and future prospects lie in certainty of supplies of raw materials, and who would be expected to welcome the opportunity of obtaining requirements in Australia, vert stremriy opposed to the request. ' Allowing for the possibility that some of the hostility stemmed from earlier disenssions between the parties concerned, the Board believes that the largest user of asbestos in Australia would not reject the opportunity of an assured supply of portion of its requirements without haring gires serious consideration to the long and thort'term advantages and disadvantages. i'he Board's findings have been reached on economic grounds. On suen grounds a conclusion against assist ance to the production of blue asbestos fibre in Aus tralia is inevitable. It may be. however, that for other *han economic reasons, the Government may deaixe to ensure the continuance of the venture. Such reasons oiild. for example, include any likely defence value in the project and the maintenance of a settlement in nu area otherwise incapable of population at its present density. None of the reasons which the Bosttl can envisage would appear to justify placing on a par ticular eection or sections of the community, Le^ the asbestos cement manufacturers and users, the excessive burden of cost implicit in the request for. protection. On the other hand, assistance by bounty would pro--; ride no guarantee of the usage of blue asbestos by Aus tralian asbestos cement manufacturers. Protection of this industry by the normal method of imposing a duty on importations would result in an excessive cost burden on users and consumers; pro tection by the method eought by the eompiny would still involve esceas eosta and in addition would be aeeorepasied by repugnant compulsory conditions. .Issists&ee by subsidy would be at a high cost to the comnvBity and to be effective would also require the compulsory use of local materials. The Board con siders that no case has been established to justify either the high cost of assistance or the use of compulsion*- RECOMMENDATION. The Tariff Board recommends that no he granted to the production of asbestos in Australia. fibre M, E. McCarthy, Chairman, Tariff Board. J. A. Hozarox, Secretary, Tariff Board, Kew, Victoria, 84th March, 195b. SS$W' 11 APPENDIX a. 01717b i- CeMnraOnm. IMPORTATIONS OT ASBESTOS. CRUDE AND TO?RE. Aramttaii. 1* *+<*--<Jirn,rr>no au, Ttrts or Aasisra). I--------------------------_m--_-_-r_-u__.______________ i>_________________*_-__. Cvt a United Xtttdoa Sritttb Seat Africa Canada Rhodcva Swaziland Union ofSooth Africa Cnehoeiovafctt .. Soviet ftaaria .. XfolUd 8t*tm of Amotion AU ether Gotnttm Total............................... - 74 96.9*5 *9,130 1.300 IM3 146 31 193.013 , 383 63,908 6,6,668 34.071 U60 1.413 96 367 169.764 379 92 107409 42469 1,134 3fM3.414 336 34 194447 1.068 98 109473 62436 2497 26447 ,, 366 163 303,464 Suaneti Inv Mll^-Cutionit ttttAi. tett-48 IMHt Utt tt. WMUta -- Chaade Bhodtttt -.................... Swiia&d ................. UakaafBontk Abiee.. front* M. f Svitxarlaiul .. .. United Statae of Antebot AU other Oooatrica .. 4, Other Brttfch Obaatriet (195344 Chat- tatloal Foreign Oonstbe* (2953-44 Clatttfiatfcm) Total ... - Ova *40 190.707 VtM6 6476 36420 689 2.243 2.410 ,, 363,638 U: 301 <14463 162412 44464 102460 4460 10.479 24,707 ,, 852,486 CM. ' a , 230263 14492 14438 2M1.006 ,, 694 rt. -Ut-rtr' ana am 74476 76427 6Q468 4a .( 4483 170466 ' 623.467 OM. a cn f 39*491 13437 3403 16401 ,, ,, 336441 141MU 70426 30465 67,117 ,# r ,, 1.168,640 >f >* 336447 33431 r 60406 24*3 1491 404,417 116404 311497 M4 * --* 13493 4403 1433400 OwtrrerOMea Bunanui. Inx Ult.--Otootooom (Bu*l. ttca-ti. WML wta Cat a Cwt. a Cwt. At. (totted Xtagdoa Ciai^i Data afSoath Africa .. Bvattlaad Total.............................................. 20 3,600 3.134 161 6,712 17,004 6,764 2M67 24*2 5.032 6467 6467 64 4,167 1,016 6469 335 27489 6,478 34496 uau Cwt. a 69 16469 666 67461 15,628 67436 Cower efOrteia. Btattittc*!. Ira MIA--Amem. (tt-li. WML Cwt. tt. Cwt. a IN14). CwL a INM4. Cwt. tt. Usttad Kingdom Ctoadt Sotthem Rhodeeia SwuiUad Unioc of Sowtb Africa ,. Fttaoe Switterkod .. Ualted State* of Aaebea All ether Ceastrirt Other Brtttth Cnostriee (1933-64 CUi. dearies) .. j Total............................................. 2418 13.637 7,287 3.483 360.448 1 5,882 357 893 10.787 1.774 47432 20.681 23400 2,270 28.399 '0,840 410,128 -492408 15.169 668 3499 1493 " i 333419 l 218,797 1 5,402 46403 6.736 40.050 463,769 . -9,480 - 372402 63 11484 3418 6.089 211464 929 234437 439 47.103 16,634 41.941 626.455 9 6,203 * 838,646 %9 1049440 1481 103441 .. 251.466 - 6499 257465 Detail* of loportetiaa* hown tt official ctatinie* are abevs above. Sine* 1946--t?, value* thown in official tUtiiuci hate repreeeaeed Le.b. vtloe* is Awuahaa eerrtee*. la earlier mn value* abown wet* in terli&i and ttpceeented b.h. value* plu* 10 per net. For parpoeee of ope#c* vaiae* abows tt tbe above table for .rear* prior to 1940-4? hare beta converted to the sew hath. Produced hi ^ matter d Afibestos PereonaiW ^ Abrams Uad &W60 w T-hard ft Scruggs- 017176 12 APPENDIX B. SUMMARY OF EVIDENCE. The main point* in the evidence tendered at the inquiry have been summarized undtr:-- 13. It it considered unlikely that the competitive petition ol Australian blue asbestos will deteriorate as compand to oversea* producers, 14. Confidential evidence t* tendered concerning ox(rv.t price quotalions to Asbestoa Products Pty. Ltd. for thmotila. croeidolite and amosite. I,x Fayovb or itootxcnw Rents. By K. 0. Brown and il. 0. King (representing Australian Blue Asbestos Ltd.)-- 1. Australian Blue Asbestos Ltd. Is cadged in the mining sd milling of eraeidelite or "blue*' asbestos *t Wittenoom, Western Australia; the company's sham art held to the extent of 07 per etnt. hr Colonial Sugar Refining Co. Ltd. and the remaining them hr Weitern Australian Blue Aabettot Fibre* Ltd. and by Lionel Chrytottls Aabettot Ltd. S. Asbestos is the term applied to a group of fibrous mineral*, the molt important or wbieh are-- (el ehrysotile, or white asbestos; (6) croeidolite, or blue asbestos; (e) aaosite, brown or grty asbestos. Croeidolite has the highest tensile strength and amosite the lowest. 3. Tht company produces and market* blue croeidolite in three grades as fallows:-- ' Met per short ton. eA FressastJe. IS. Approximate current prices for various grades of fibre landed Sydney or Melbourne are as follows:-- - you. fate*. <Stg. 3T Grade Ganaciiu Obmotile 4K Grade Canadian Cbmotile (K Grads Canadian ehryaotiie Grade A Cape Sloe (length rosghJyequi- valent to 8Tj 92 Grade 8 Cape Bfaa (ksgth eoughly eqtd. valent to 4K) 83 Grade RAM. Cape Sloe (length oqui- valent to 3T) AaetraiUn Blue Fibre, Grade 3 (length equivalent to 3T) .. Asaeite Fibre, AW Grade .. diuiftiFfara, RCA/P Qrade } 40 CL. fates rarrarm u 180 102 n m 98 120 138 fit . Grad* 1 Grade .Grade 3 ICO J .1*0 Grade * is the Boat Important eoamrelally aad repreaents over 90 per cent, of tbs output. .... _ ... 4. Australia usee shout 91,000 short tons ef asbestos fibre per annum of which 1,000' short tons of dkryeotlk are bn* ported Iran and 1,000 of nmoeito from South Africa. 8. A table is submitted showing brehnienl data to respect ef tensile strength, fusion point* tptoifie gravity, Ac* of tht main types of asbestos. 8. Whereas the specific gravity of ehryaotiie erocidnlite and anosite is given as 2.4, IS and 3.1 respectively, it is the respective weight/volume ratio in the N as used " state whieh it significant. For most uses asbestos is "fiutfed out" or wjllowed before use and in this state, according to an American authority, the density ef croeidolite is approximately ose-hslf that of chryeotile or amosite. 7. Because of its particular mineral properties and its fibrous spi&oability asbestos is a raw materiel for which, fa many wnyi, there is no substitute; it will withstand exposure 1LI .to weather and high temperatures aad will mist aed:. - /v* 8. World prednetion of the main type* of asbestos bss in* ! creased since 1935 as will be seen from the following statistic* obtained from the Bureau of Mines, United State* of America. --* Hr ssluwii 18. Tbs company estimates that by Increasing output to MOO tons tht prloe landed Sydney r ttdbonraa weald ha 1.118. - 17. 7hc hulk of Aastrallaa importaUooa would ha ^--iif*i ehryaotiie grades 4--IK, and a quantity of yrsda. naeaito next fa tarns of quantity imported. ' 1*. Whilst asbeatos deposits occur fa Vow South Wales, Tasmania, South Australia and Western Australia, tht only really targa Australian deposit U that being mined by Ana- trnlian Blue Asbestos Ltd. In the Hamereley Ranges. *-; 19. Scientific survey* indicate that the Hamersley Bugs deposits art exceedingly large, extending over hundred* e! squara miles of era-bearing country, with each square mile carrying possibly 800,000 tons of asbestos. 20. In 1941 the Colonial Sugar Refining Co. Ltd* became interested in Australian asbestos fibre; being nt that time already manufacturer* ef Interior wall boards,It contamplatod the manufacture ei exterior wall sheeting. 21. Following full Go-'crnmental investigation approval %as granted id tbs incorporation ef Australian Blue Asbestos Ltd. 'on 17th April, 1943. 22. Existing leases were taken over and ether leases acquired making the total area held 4.833 acres. These leases cover rights fa Yampirt Gorge, DaleTTTBTge and Wtttonoom Gorge; at present mining is confined to Wittenoom Gorge. PRODUCTION SHORT TONS. Tbs*. Taul OvrKSUw Cmdteutt. IWWtl 1938 1948 1948 1949 19 1951 1952 1953 .. 403.000 AftO.OCO 1,100.000 945.000 IJ'JU.OW UOO.OuO UCW.OOO 1,400.000 395.900 653.3C0 1,057.900 920,700 USA2C0 1.210.700 I US7.9W 1,318.190 ZJSOO 10,000 11,800 22.300 31,900 55,200 48.000 43,000 4.000 16,700 30,300 42,000 42.000 84.100 04.100 38,900 9. The aoorecs of supply of these three-typos are-- Chrrsouie. CroeertsUt*. ' Amssiie. r.mmA, South Africa South Africa Russia South Alrlea Australia (in quantities) Bolivia Australia email 10. Asbestc* i* classed. commercially, a* fc crude" and ^milled": the former i* the miaerai as hand selected la its native state and milled asbestos consists of all grades pro duced by mechanics! treatment of asbestos ore. Almost all asbestos*imported into sn<l used in Austrsiie is "milled ". 11. Grading i. done according to the lennth of fibre and gcneraHr long fibred materia! represents the highest grade. 12. A graph showing the trend of world prices ter the pstt fifteen rears is submitted. IHiiist South African prices, influenced by ilir policy ni numerous small mines, are prone u< nn*teniU::c*s. the Canadian induUrv maimaiu* s stsbt* marketing organisation. Price* generally ercakensd in 1933 hut this trend 1* dm expected to continue. 23. Rry weather roads connect Wittenoom with Roebonrne, 00 mile* distant on the north coast of Western Australia, also with Point Samson, Port Bedland. Marble Bar aad with Meekatharn, a rail head 450 mile* to the south. A modem aerodrome is maintained by the Civil Aviation Repartmcat at Wittenoom and a five days per week service to Perth, TOO miles distant, to in operation. -- 24. Poor accommodation conditions up to tbs end of 1948 made it difficult to retain employees, and to improve this posi tion the Commonwealth Government and the Western Aus tralian Government screed to join with tbe compaav in financing the construction nf the town of Wittenoom 7 miles from tbe mine; this town is now completely established. 23. At the time the respective eoreraments agreed to assist tbe industry, it wa* estimated that a minimum production of 6,000 tom per annum would be necessary in order to compete with oversets prices. Owing to tbe subsequent dispropor tionate rive in Australian costa tbe minimum usual produc tion b now estimated to be 8,000 tons. S6. The company's budget in 1048 was based on a 8 per cent, return o eapiu) at a veiling price for fibre of IM per to,: f.o.b. Fremantle. This target nf 150 per ton was related to the then landed price of comparable oversets fibres, namely Canadian Grade 4K and Ko. 2 Grade South Airicu blue. 7. To-day, 4K Canadian fibre veils for !0 per abort ton landed in Australia and the company now estimates that at full production of 8.000 tons per annum it* product must sell at 110 Lo.b. Fremantle in order to realize a reasonable profit. 23. The imrea-e in the rompanv'a o>titnate of wlllnr price from 30 in JJIJC to alio currently U not out of alignment with the increa*c experienced in respect oi other goods, par ticularly building materials. 20. The total amount spent br the government* on tbe town ef Wittenoom is approximately 400.000 which provided tor homing, hospital. Building* for services such as post Produced In the flatter o! Asbestos Personal l(WLCases' Abrams Uad & copied to Richard P. Scruggs. Ui --*. \l i i t xs police. he. at well u road staling. The amount spent by the eompeav town buildiuet bat bm 110.000. Although nde*t in *u%`. ail terns** aw serviced by water, elererie light fi ton* oi rock. A considerable area of much richer grand fc known to exist bat the actual exteat of this has not bans ascertained. and aeptie Mwtratta. 31. Asbestos mining is Wittennon) Horn baa beta respon sible for arresting a aerioui dwindling of the population in the north we*, is an araa oi 521.000 square miiea the total popu lation excindinc native* it 8.4'K) person*, of cbeae 7.10 are ar Wittebooth and 80 at Koebourne. It to claimed that aabesto* production even at the preeent tUet of development i* directly responsible for 000 additional residents in the north watt. This ioewnae in population a* wall aa the general vtivitte* nuuerted with the tran*-shipment of fibre i* a vubtteatial contribution towards solving the national problem of populating empty areas in the north of Australia. 31. Since the mine opened In 1047. considerable advance ment has taken place in the mode of mining the ore, aa a mult of technics! adrlee received from overseas expert*, ft la claimed the company'* mining methods are now eery efficient. S3. Recently, under advice from Ur. B. P. Luke one of the mining expert* brought to Australia, a section of Western Gorge, whieh is e tributary of Wlttenecm Gone, wee exposed and this new ana promise* to ha 60 per cent, better than the frowsd mined hitherto. \ 33. Although the eoet using 100 per cent. Western Gorge ore look* attractive, it la sot economical to oca more than 45, CuU submitted for production of blue fibre in South Airies indicate a large difleren-c between South African and Australian Ulwur nt. Native miner* in south Africa are (mid 2 5. per wrefc compared with tbe 30 per week neeneary t retain miner* in Wittenoom. 1 tore are Hi native uiioer> ttred for every mm white miner, whore wage* are 20 per week. -til. Heavy freight cot handicap* operations at fFIttcttom. particularly in reaped of the Inereere imposed on tha aoat <*f fuel il and explosives. 47. The average cost oi freight and charge* to Fremantle for tbe year ended 31*t December. 1933. wa* 13 per ton aod tbe company considers that this should he subsidised by tbe Government. 48. Another heavy harden os the company is pay-roll tax, which Is approximately 9,000 per annua. This tax honemea aa inflated burden on tha company because of tha need tn pay premium wages. 49. The company considers farther taxstioa aoBoanlow* should he allowed, for example by Increasing tbs present cone allowance deduction. 60. Balsa of fibre over the three years ended 30th Jane, tfifiS, werw a SO per cent, to td per sent, mixture with the Wittesoom Gorge ore. ' 880BT TONS. 34. Aa a result of improved mining methods production baa isseaaed aad aosta an steadily decreasing aa fellows*-- * sJnr Anaaal needoetiea rets. ane.etteu. Tsar ended 30th Just, 1*51.. Tsar ended 30tb Jaae,i952.. Tearended 30th June, 1653.. Balf year ended lift Decem ber, 1953--2,220 too* equals per ansoa Current rate Fatimated lor ptefiattlon of Estimated for production of 498 M9 MH 4400 4A00 94)00 30,000 Ontpertea tnetore Fi--aatle MS 202 lt2 137 135 102 70 39. Mining coats at Wlttenoom compare favorably with those of the mala metalliferous mine* in Australia, although the volume of aaheetoe ore treated is relatively low. 38. Tht milling methods at Wittcnoom have been improved considerably sines the initial installation and farther exten sions will be neceessry to eope with a production of 8,000 tout per annum; tbe pmeot value of toe milling plant i* C300&00 and a further expenditure of 70,000 will be necessary. 37. She quality of the fibre mined at Wittesoom is high and compare* favorably with tha beet blue (Cape Blue) produced in Sooth Airies, which is the only other country prodtwin? Mo* fibre of each high quality. m . ^mr hmurils.' ffieete. VAX teteh 30tii4uM,T96I.. 'MB 30th Joe, 1962 .. w 30th Ju4ae, 1983 .. , tfio m239 - ; ui* 437 358 2J76 MS ffifi M37 '< Balm to United 8tataa of Aacries for the year endlag filet December, 1963, were 24)00 tons. -s ... . 51. Complete dataila regarding the number of employees, total wages sad the statutory conditions of employment nr* submitted, together with details of the production bonus paid by the company. .-.f;;- 52. An appraisal of the Mies potential made by the com pany in 1946 entimated that an output of fl,000 tens per annum raotd be disposed of as fn'Ie^:-- Australia-- Wuadertoh Ptr. ,*. .. 2,000 - .a*beMos JVwducU Pty. Ltd. .. 1,000 Other ueers (leeludiug ether asbeetee cement manufaeturers) IfiOC Oversea*-- United States of America and Europe .. 24)00 38. Whilst three grades of fibre are produced at present, a* additional plant is pat is, n shorter No. 4 grade aad probably a No. fi wUl he produced. All fibre marketed eonforms with rigid specifications. 39. Practically all fibre sold to Europe is subject to preshipment inspection end sampling by General Superintendence Ltd., and tbe eootraet specifiesvise* call for in average fibre length of .47-io. to A4-in. with a rock, grit and dust content not exceeding 0 per cent, and foreign material not exceeding 1 per cent;' at disclosed by General Superintendence Ltd. the average rock, grit and dust content this year baa been 4.0 per eent This compares very favorably with similar over* seas grades. 40. A table is submitted showing the diaseetion by grade* (quantitv and value I of production ia the period 1st July, 1850, tt'JMt December. 1053. M0 53. The world demand for asbestos fibre between 1949 end 1952 rss good hut in this period production from Wittesoom was low: In 1963 the position waa reversed and the company was able to call only 14>56 tons out of a currant production of 4,500 tons. 54. In 1993 a total of 24*54 tens of Grade 3 fibre waa cold to the United State* of America for a total pries oi 9504)00 dollars: further orders for 2,000 tons in 1954 have been obtained for a price of 5764)00 dollars. 53. Correspondence from ovemM users of blue fibre indi cate* that a constant demand exists. Acoordieg to prioc, availability, personal preference, he* the proportion used varies between 5 per cent, and 30 per eent. of the fibre Mutest i tbe product* made 41. Detailed finaaeiei *uteente relating to the company'* trading fre the three rears ending 30th .lime. 1033, tngether with a summary of financial result* for the five years 104S-63 art submitted a* confidential statement*, la addition aa retiresC it submitted atoning tto extra capital nxt required to inert**# production to te) 8,000 ton* per annum: (91 30.000 tone per annum. 42. The ewupany'# iaspeeting engineer said that -to veplaee tbe erect* to day would eot 1,7 time* their present hook value. 43. At a ;<r*>diK-tio8 rate >f 84)00 ten* e>r annum the <cnpanv nuwtdera the oelling price fA.lt. Fremantle could he reduced to 110--tbe aim toinr to *ii 4.teNl ton* nvema* and to envvre that 44)00 tone per annum are used in Australia. 44. Tle climated eon ot production in the rtatementf ubmitted i* 10* per too ia atnre Fremeatle and thi* is based m the very n*i*ai istive yield *f 1 ton of fibre (rota imj 56. The company believes that at a price of 2110 per ten tJb, Fremantle 4,000 ten* of No. 3 Grade Mu* fibre could he cold per annum. 87. Tbe manufacture of aaheetoe cement products, by four `Atotralfan companies, constitute* tbe highest usage of aabeatos "4M>rv; U'h product* ttoitllv eon*i*t of 13 per rent, asbeeto* fibre s:m1 H7 i*t rant. Portland cement by weight. 58. A table i* submitted showing tbe quantity of fibre by -type* tired Vy these niansfeeteuwva ia 1853 together with tbe Mierees of such fibre. '>0. Bared on knowledge of overseas practice and the eomliny's experience at Asbestos Products Pty. Ltd., it is quite practicable to u*e blue fibre to the astent of 25 per cent, of the total fibre med ia the manufacture of asbestos ramcat product*. Australis sow u*es 30.000 tons per anntnn imeortod fibre for these products and if only IS per rent, of this were Australian bhi* there would he a market for 4.500 tons of local fibre. Produced inj^e matter of Asbestos Personal Injury Casas, Abrams Lead & copied to Richard P. Scruggs. 017178 u 10. Ibt pretest practice oi replacing * portion oi tbe hiu flbrt with bis* fibre and amosite in asbestos cement products, increase* tit drainage ratt and hence speeds ud tie axautac- turine process. Arao?ite las bo effect a yield n r-quare yards lot reduces : aiteneih vies used to replace *r quan tity of Xo. 4 tirade white libra: by contrast blua able improves the yield and does not affect tat strength. 01. In a report Issued ly the research departseat of the r.SJt. Co. Ltd. apeeUt attention it drawn to tbe improvemeats made possible by tbe inclusion of a percentsee of blue tibra in tbe ckrvsotile. amosite mixture. The strength to weight ratio of asbeato* cement aheet incresaea with the proportion of blue fibre need-, tbe yield ot equate cards per ton of tenant and of fibre inmates when blue fibre ia added to the mixture. 92. Crecidolite is more than a replacement fibre for eheap amotite. it ia an effective replacement for <K grade ekryaotilc. 03. Table* submitted show that the finished cost per square yard of aahestoe cement sheet don not increase when up to 33} per cent, o! blue fibre it need ia the fibre mixture. 94. The company hes hats advised by James fiardie aad Co. rty. Ltd^ the largest aaaufaetnrer of asbestos cement pro ducts in Australia, that it ia aot prepared to use Australian eroddeiite at price* anything near as high as the world market the extra tonnage could be obtained without cost. Tha road transport contract from min* to coast is now 4Ad. pa tan mile end sot 7Ad. as stated by Hr. Adams. TO. Various witnesses stated that blue fibre was technically unsuitable for article* such as brake and clutch linings and tli* company suggests that this difficulty could be overseas hr by-isw edmimlon. * 77. Although representatives of asbestos cement manufac turers gave evidence opposing the imposition of a duty on fibre, thev bad in previous inquiries betn strong adveoaua of protection on aabcctea cement products. 78. Evidence has been given tfast Australian No. 3 bios fibre it not suitable for uee in Batsehek vat machines, but the company's opinion is, and this is supported by evidence and correspondence tendered, that only minor medifiatiens are necessary to enable this type of mtchint to cops with No. 3 grade blue fibre. 79. Although Ur. Songster draws attention to the high price to which tha company's produet toss it is emphasised that at ail times the sailing pries rtfisetod cost aad wand price levels. 99, In stating that No. S blue fibre is merely equivalent to amoaita at 50 per ton. Jamas Bardic 4 Co. stress that com pulsion to use the former would be tantamount to imposing an extra expense of 300,009 per annum. The company dose price ot 110 per tan and considers it no better than amosite sot agree with the comparison of amosite and erocidolita, but of 50 per tom even granting thJa, such an amount spread over James Bardie1* 83. Wtrader!kb Ltd. naad Australian blue fibre until Sep- output of 28,000,000 square yards maaas an teems* only of "tembei, ifiSfi. hut no orders have been received felnee that d|d. per square yard. -- data. 81.' Ur. Adamson has stated that a previous Comaw*wealth M. Of the remaining two main consumers, Asbestoa Pro ducts Pty, Ltd,, eubeidiary of the C.SJI Co. Ltd* has oon- goviamsa* lafuaid financial assistance to the toduetry. Although a requested 5 par ton subsidy was aot franlsd, aistentJy nssd 20 per cent, hist, hut the Goliath Cement Co. prefers to use a South African blow Uniats all tear com* pastes purchase Australian blue fibre, the* there is virtually - financial sacutascn was given in other ways, for example, town construction and tha payment of a 27* par tea freight -utouyterror,n*?**3*-- no market /c? it ia Australia. ................ 87. If 15 per cent, to fiO per oeat. blue fibre la umd to replace aaosite the extra cost involved would be 0A7s- per square yard of etbesfet easant sheet or an extra overall coat of 8 15a. per averaged stead cottage; U Australian bins fibre is sued to replace imported blue, at say 20 per vo ekesper, then the extra coat would be id. per square yard or approximately 2 10a. per house. .. 8fi. Sht basis of tbe company1* case for tariff protection Is that for Wlttenoom to continue operating dames Hardle A Co. Pty. Ltdn being such a large user of asbestos fibre, must use Australia# eroddolite. 89. Tie proposal, therefore, is that a duty be placed on all imported fibre but that sneh duty he remitted in full is th event of the importer using 18 per cent. Australian blue fibre of all atbetto* used. 81. The company demits that Wlttenoom was permanently established before a world survey of demand was mad*; apart from an overseas survey to 1945, prior eoatrsete were made with tbe John Kesri})* Corporation Is tbs United States of America (unable to be fulfilled by the company} and with Wunderlich Ltd. It to pointed out alio that tha total world production of erecldefit* is 1952 was dfifiOO teas whereas the total quantity imported into tha United States of America to only 1,000 to 8,500 tone. ,.. 83. The company agrtu that the value of a fibre to brute assessed by testing asbestos eement product* VB*h fibre, however the full adventsga of Australian bio; ! apparent unless adequate preparation to undertaken. 84. Additional research data emtemisg tote -:reA<a*t&l by tha Goliath Cement pony *i. submitted wbieh further substantiate* tbe claim tost the inclusion of Australian blue fibre increases tensile strength and yield. The relative tensile 70. Theoretically a duty of 20 per eent. would be sufficient strength of fibres can be demonstrated approximately by the to afford protection to tbe extent of 20 per ton. however as simple procedure of tugging them apart between the fingers; this doty would only increase the cost of asbestos cement this method shows up a marked difference between ehcete by A27a, per square yard, tbe company considers that a total duty ot 40 per cant, would Vs nectssary; tbe additional duty of 20 per cent, ad valorem above the eqoalteinc rate of 20 per cent. being required to force the use *1 tha Australian and Australian blue. 86. The company doe* not fear competition from amotite to tbe manufacture of pressure pipe* and to confident that croeidolite esa compete with ehryaotiie on a prim basis. Blue Asbestos product. 71. It is set proposed that tbe duty be applicable to fibres By Boo. B. C. Strickland (Minister for North We*t, Gotten- shorter in length than those equivalent in length to Canadian mint of Western Australia)- grading groups 1 to 8. The imposition of a duty is to ensure 1. Tbe Western Australian Government desires to street th\t Anttrall* uses a minimum quantity of blue fibre. tbe economic importance get*rail? of the north-west of Aus 72. If Australia does not consume at least 4.000 tost of blue fibre per annum it will mean as and of tbe industry at Witteaoom. tbe failure of the attempt to populate the north- tralia and particularly the importance of the asbestos fibre industry located therein. 2. This area bounded os the south by the 28tb parallel of west, and the loss of asset* brought into being by governmental and company expenditure. 73. In a letter to the company the United Kingdom firm oi Universal Asbestos Manufacturing Co. Ltd. stated that they had used Australian Grade 3 Blue fibre is a 7} per cent, mix and found it not inferior to tbe best South African Cepe Blue and immeasurably superior to South African amosite. MMth Intitnrte. the aorth-vreet coastline and tbe boodarv of North Territory, comprise* 327.000 square mitm. which contain* a population of 8,400 persons exclusive of cent- rfrtffeccf. Ml-btnod aborigine*. 3. Towns along the 2.000 mile cnastal belt contain tbe msforltr of the population which ran be conveniently placed Into three tnaes thus:-- 74. In reply to statement* and atticism by Ur. C. T. Head the following point* are stressed (| considering tbe sire of the Samersley Jtesfe deposits it ie of little tinificaace that fibre value* may decline-with the distance from the nearest outcrop: <h) the Wlttenoom mill Is no move dusty then the large overseas mills: continual effort* arc being made to improve wnrkiae condition*: fe) tbe road subsidv erased in Julv, 1952: fd) tbe company did not eharge * profit fee on the erec tion of houses at Wittenmm: ii per vent was added to cover administrative overhead*. 75. Mr. C. F. Adams' comment? fn mpeet of the potential profit bound up Itt the mining of We*tern Gorge on erroneously anutned that this an* eonld supply full production imme diately, that the setting price was hizfevr than it was, aad that Carnarvon district (extreme aonth) Kimberley* (extreme north) Central am* 2A0O .. 2,700 .. WOO 4. Altbourh overall the population has decreased from a item* of 11.000 Hi 1933. the population of the town of Wlttenoom. which to situated adjacent to tbe atbeetoe mine* and extots by virtue of sueh mining, has increased an follows:-- Perms 1936 194! 1953 178 196 800 -*. The 9*bcsto* industry of Witteaoom apart from helplnt to revive the North West has been inimunrntsf (a brinrinc renewed activity to the town of Roebourne. 200 mils* distant, and its seaport, point Samson. prdriucsd Ift tiMfntattei' ot Art*$t08 Personal injury Cases. Abrams lead & copied to Rtah&rd F. Scruggs- 017170 15 0, Th* economic advantage to mm to j*tty activities at Point Bunion-- ii -- r#. tru. U Experience be* shows that the most suitable fibre mix ture it oTCanadian ebiraotil* of grading* 4* to fin wasting Pit to 109 per ton cd-f-, and South African amoaite at 51 cJ.f. This compare* with the latest price of Australian blue at 135 f.o-b. FremanU*, or with 144 ciX. which it grossly excessive. 12. Because the bulk of output fa tried in iow-eoet housing, Generalcargo handled toand out (tons) Ton* of sebata* exported .. Jetty revenue .. Wage* prides jetty 8.906 122 1482 834 4.859 1,010 3.454 3,094 9.062 J2300 1320 4.058 7.570 15,651 6388 12.006 aabettot corneal product manutaeturers must keep price* down to ecrupelt with other materials. II the 40 per cent, duty is prauted the extra cost to the eompsny would be 250,000, or Alternatively the use of 15 per cent, of Australian blue--in order to avoid duty--would involve an extra eoat of 105,900. 13. It would be impossible to comply fully with the proviso requiring 15 per cent of all fibre to be Australian blue because 7. Commonwealth and State Government* have recognized the quantity involved could not be absorbed by the remaining lb* need to populate northern arena of Australia nod have Fourdrisier machine*. encouraged production of anbe*to* by giving substantial financial awietanee for bousing, aehoola, hospital, road*, freight subsidise and other faciliUt*. The Commonwealth Government baa contributed 303,214 and the We*Urn Aus- trallan Government 1150,040. ft. A*be*toe fibre production in AuatraUs U far below Consumption which it ia expected will become greater; deposit* in the North Weet are known to be eeorouu* aud capable of supplying n portiom of Australia's requirement* 14. The company objects is the strangest terms to any inter ference with its freedom to purchase asbestos fibra from the most favorable sources. 15. Is regard to earing* affected by the as# of EaUthck machine*, experience over twelve months indicates that although tbe capital outlay per machine ia approximately 100,000, the annual saving by reason of the laser number of employees needed to attend the machine* over three shifts la of the order of 20,000. Thia saving fa to addition to tor many year*. Increased notput. ,? .8 In eiw f the large im of Government money* spent 10. Tbe asbeutoc smat Industry to Australis foGows the in promoting the aabeatoa fibre industry, its potential and its world practice of eoetrading annually for tbe purchase of___ -- impact on the economy of the North west, the We*tern Atu- fibre; the company adrite# that it fa TV"* tralixn Government consider* that adequate protection should requirements until April/Hay, 1955. - br-'proridsd to ware furthar expansion and oontinued production, , ; 17.'In reply to n ntetesmt by hlr. K. O. Brown to the effect that about IfiOQ to \JUH tow of Cape Woo sniaa" - AJvtmparted from Booth Africa at about 180 per ton H to l flmawiMi >mwbwh Dwim-, |l , 'pointed .out.ttet Wundgrlkh'x jemtag^ to^.Smih.AfltotoA.-------- By A. 8. P. Songster (rvpnanttag Wudcrikh Ltd, eroridoUt* to e*ly *40 tone and ft to nnAaratowI that Aaesa Hardie A On. Pty. Ltd. ere-net norchastog South African______ Baptist-etreei, Sedftrn, Now South WatoeH- -?v------ bln* fibre. In view of tfcfs it to noebtfuf whetho nmbs- - J. 31* company, which operate* asbestos etatat factories tervra other than Wunderlkh Ltd. and James Hardie -would in three States, 1* opposed to any Tariff on imported aabettoe be puretiring between Tib and IBM tone nf Booth ASrtoan------- fibre aud U as*iaUncs is given to the production of fibre in blue fibre. * '* Australia such assistance should not entail any funs of compulsion on manufacturer* of asbestos cement to use it. 8. Approximately 2,100 pence* are employed by the com pany, the assets of which art valued at 3&t.7Gi, in the manufacture of building material* in metal, asbestos cement and caramiee. 3. Ia the manufacture of aabeetee cement product* in Aus tralia approximately f4^00,000 worth of material* are pro duced annually t asbestos fibre, nearly all of which ia imported it the largmt item of cost, representing approximately 40 per oeat. by Value f the total materials. 4. Asbestos cement sheet* art made la a series of operations, the final one of whfeh to termed a wt maebine. Various types of these machines are available and until recently the company operated maehlnes called the Fourdrioier; these are now in the proses* of bring nplaeud by fletoebek machines which have a faster rate el pradactJoe than the Fourdrisier. 8. Bines 1918 the company had bad asperieaee with a large By J. T. Adameon (rcpruMstfag June* Hardie A Co. Pty. Ltd, Asbestos Souse, i'ork-etmt, .Sydney)-- 1. Tbe manufacturing eompsny of James Bardie 8 Co..Pty. Ltd, with a fully paid share capital o! 1,000,000 ia, tofttbsr with two other eompani**, namely Asbestos Mine* Pty. Ltd. and James Hardie A Co. Pty. Ltd, of New Zealand, a enhsidiaty of the holding company of Jama Hardie Asbestos Ltd. 2. From 1903 to 1927 ths company imported arietta asmsat for sale in Australia and subsequent to vM* period rweviiitursd aabeeto* sheets in Australia. At present, the eompsny has 2,026 employee* sod owns land, building* and plant with a book value of 21,848,790. Tbe eomneny usee 95 par ant. of total funds in tbe manufacture and marketing of erteetn* products. 8. The company to opposed to tbe imposition of duty eu asbestos fibre and ceasidtra that, U assistance is desood nee**wry, it should be eenfinsd to a bounty paid oot of sonsoUdated revenue. range of sabeatoe fibrm from many sources. In the main fibre has bees obtained from Canads/and, up to 1922. was aug mented by Australian fibre from Tasmania and New frmtn Wales; after 1922 supplies of amoeite were obtained from South Afriea to form a mixture with 85 per cent, of Canadian ehrrwtil*. 4. The company manufactures a full rang* of asbqtoe eeuteot building material*, pressure p<pw ss4 eendwt-to addition to brake and trsnsmtostu linings and thermal Insula* ties materials- 5. The turnover of tb* company to dependant npeu the maintenance of its policy of offering tbe highest qualify build fi. la tbe early yean of the last war when It appeared ing sheets at the lowest possible cost. Over the past eight supplies would be restricted, the company developed a Miryun til# deposit at Baryulgit, in New South Wales, and in 1044 Jas. Hardie A Co. Pty. Ltd. joined in tbe project. Subse year* > per cent of ell homes in New South Wales were of the lower cost asbestos-cement construction; only by keeping down tbe price of raw materials css asbestos sheets continue quently, J**, Bardie A Co. Pty. Ltd. acquired complete to eempett with ell alternative types of building materials. ownership of this mine. 0. Because the proposal as put to tb* Board stipulates 7. The conditions of general ehortas* necessitated the porehaee and use of many grades end qualities of fibre which were unsuitable. At that period the company was reluctantly rootpelted to introduce eroridollte into mixes. uppl<e* were obtained from Sooth Afriea and aeme procured in Australia. .V* supplies become more plentiful it is tbe intention to elimi nate blue fibre and return to the pre-war mixture of imported nsbesto* grades 1-5 as coming within the mope of duty if would be eareasoaeble to require duty to be paid on fibre entering the manuiaeturins proem tor Itatsaoe of frietlon materials (which technically preclude tb* me of vrocidolitc) and In surb clrtumstaaeve fibre should be admitted trader by-lsw free of duty. ekryaosiie and amoaite. -f. Blue fibra from Western Australia was first purchased "* 7. The following quantities of tow materials wen wed by th# company:-- in 1944 St 445 per ton add. Eaeb year tbe price increased and by 1959 it had reached approximately 179 per ton. -- IHt. utt tru. Hri. (Jtot- 9. In limited proportion* Australian blue fibre proved satis muedt. factory on tbe Fourdrisier maebine*. but the faich price made it uneconomic. The filtration properties of blue fibre are good and production can be maintained when auihciest wellgraded ammite cannot be rVifnarf Asbestos fibre-' short ton* Cement iccg toot 27,471 80,662 19.12" 21337 23,71* 97,479 105414 150,000 10. However. Australia* bin* fibre ft sat suitable for *#* with tbe Hateehek maebine heeauee of balling up is the eat* and levee. On tbe other band, op to 20 per cent, of tuft- able amoaite can b* wed. 6. Maoufacturinr costs arc now too high in Australia comfared with orereees costs end in the main lint of asbestos- cement fist ehects the raw material* now amount to 55 per PrdCfuttd In tfi matter of AsbMttt Personal Injury Cases; Abfftmt Load & copied to fifetard Scruggs.- 017180 It tut. of tbs total eost. To hnpoee a dot? of 40 per wot. oa fibre imported by toe company would Increase toe eon by 093.000. 11. u an alternative, IS per cut. of fibre eyed was to be Western Australian croridoiite at 142 IT*. 0d. per ton the additional cost incurred in replaeine the fresh job* samite now imported at 55 17*. 0d. would be 347.739 and atter taking account of trade and cash dwcouats would amount to 421.502 per annum. Even should Australian blue fibre be reduced, as suggested by the applicant to 110 per to Lc.b. Fremantle the equivalent amount of additional cost to the consumer would be 300.380. 9. 8oeb a large increase in raw materials noata should not be passed os to the low-cost borne builder nor ooaid it be borne by the company. 10. if assistance is to be granted it should be by way of U| to raiat the selling pnee of asbestos cement product* by Id. or 2d. per aquare yard to order to meet the - - high cost of Australian blue prodotHim ( mo per ton fx.b. Fremantle. 24. These extraordinary proposals were Batumi!* rejected and the application for duty was matte for the protection of a completely uneconomic Industry which. In the opinion of leading asbestos compeoKs to Australia and oversea*, ahoeld not have beta started. 25. A brief history of tbe development of tbe wse of Mot aebaetoe It submitted herewith. 6. In order to aid in assuring eoottooity of supplies of arnosit* the company bat acquired a aaalf shareholding equivalent to 3j per cent, of the capital to Cape Asbestos Co. bounty; however, unless the Colonial Sugar Refinery Co. can reduce cotta the chances o/ competing overacts with Cape Asbestos Company are negligible and tbe bounty payment would be a permanent eharge on the Government. Tnc price of S Grade Cape blue, the equivalent to Grade 3 Australian blue is A.72 10s. ix.b. Capa Town. 27. The uneconomic aspect of using Western Australian blue which ean only be used to replace amoaite to the com pany's mixes will he seen from the following prim history of the two types:-- 11. Greater manufacturing efficiency has enabled tbe com pany to confias increased labour costs per unit to 40 per cent. a period when raw materials and tbe basic wage both increased 100 per cent. -- tot. 1SU. m*. too. IMl. tea*. 12. Tbe main users of nabeetoa fibre in Australia namely James Bardie A Co. Pty. Ltd. and Wunderlich Ltd. were not consulted before the ill adviced mining speculation at WUtahootff***M embarked upon and therefor* it is anreason CAR. Bias Aaotfta 2 2 t fc 48 <i 100 135 150 m 20 36 40 44 47 60 able to expect that tbe efficient achievements of asbestos cement manniaetoren should be penalised to bolatar.mp the aareleee expenditure of npprextottelj 00,000. 28. -Statements that the uns of Australian hfwe fibre would --nano dollars are iaaoewato to that it to Prato fionoAmnrito* 13. The technical progress of the company has not lagged which would be reptemd. behind deeding AnnMa mangUfifrtngfciie wl AS:figrqmgqt it in erisfmt with Johns Kanvttie of tbs United State* sf. America and Tomer aadNewsIl f the United Kingdom tor' the free interchange f fabric] haow-Aow*. In - :S ft. If-.tha"FoardtetouId .tonclder that it to sMmsry to hasp m AM awn urilni to Wittencm too soot iVrwM not be loaded on to th* working man's tow oust asbostoooamoto tons*.- , -^==>- - ocseat aanuisetnre. .... 14. Consnsptinn of asbactowcement products In Australia ranks in fourth pUct in total world consumption and first In the world on a per eapsta beets 30. The company's machine* art deelgned to run toe town amoaite fibm and if a wall defined length of blue fibre of Grade 3 quality could be supplied locally there would he no technical difficulties to using eueh a fibre. a th* toato 15. Fibm used in tbs asbeetowcamsnt fadsstry can he it is all a question of ooat divided, ae to type and source, tote two genera) categories, via.:-- (a) Soft treaty etow-filtering fibre--Canadian chryeottlv. (b) Sarah spindly last filtering fibre--Croeidolite, amo* cite, most South African chrysotile. Australian chrysctile. 31. Ib the manufacture of pressure pipes, which contain 25 per cent. fast filtering fibre, the substitution of this amount of Fresh Zone Amotite by Australian blue fibre would molt la an exorbitant eost fnertave with the pries of amoeite toes than hall that oi Australian blue. 16. The efficient running of a modem Eatachek or Mass machine calls for a blend of fast and alow filtering fibm and. since the withdrawal from the market of what wst really a composite grade produced by Turner and NewaU, other osrm of repply were sought 32. Although tbe neap of fibre to brake and transmission linings is small, the imposition of toe duty applied for wooli price the company's product* eat of the market Fierce cum* petition it now experienced from the United Kingdom brake linings which enter duty free except for 10 per cent, primage; this would necessitate in tnra an application for duty on 17. The company has developed the use of Fresh Zone brake linings. A somewhat similar situation would develop Araosite as a fast-filtering fibre sod us* this to conjunction in respect of thermal insulation products. with chrysotile. The company, nevertheless, is aware of the advantages which would Been* from a supply of local asbestos fibre subject to a price parity with overscai sources. iff. let 1920 the eompsay first considered the possibilities 33. Tbe record of tha asbestos ecoent induetry daring toe recent war proved Ite strategic toport*nee. and in tbs post war period the economic tafiutree exerted it indicated by the fact that for the year ending 30th June, 1953. the fiat sheet of the Western Australian deposit* of croeidolite but after production was 10,495.000 yards. For three years ending inveetigation rejected the development of them as uneconomic. 30th June. 1953, houses sheathed with aabeatoe earnest fiat ~ 19. When the Colonial 6ugar Refining Co. Ltd. announced sheets total sore then 25 per cent, of bouses built is Australis their entry into the field of nsbeatos mining and tbe and nearly 50 per cent, of those built is New South Wales and manufacture of asbestos-Cement products the present chair Western Australia in that period. man of James Bardic A Co. Pty. Ltd., Mr. A. Three Reid, communicated with the chairmen of the Colonial Sugar Re fining Co. Ltd. as he felt it imperative to want tbe latter cemptnv about the potentialities of ammite. Copies of letters exchanged between the two companies arv submitted. 34. If corrugated asbestos eeaeat sheets had to hear the burden ot a eost increase, these sheets could not continue to compete with galvanised iron. A similar situation wooId develop with high pressure water pipe*. Is this regard a letter i* submitted from tbe Minister for Fublie Works. New 20. James Bardie A Co. Pty. Ltd. maintain and repeatedly stressed in the letters referred to abort that, in the manu facture of asbestos cement sheets, eroeidolitt and amoeite are interchangeable,- because amotite can be obtained for approxi mately half the eoet of croeidolite the company cannot consider sting Westers Australia* croeidolite. 21. In October, 1945. leases of deposits adjacent to Wittenoom were offered to Turner and Newel) of England and aUo to Jamas Bardie A Co. Ply. Ltd. hut there were rejected. 22. If is understood that at this time the Colonial Bucar Refining Co. Ltd. approached the Commonwealth Govern ment for assistance but that the request was refused. 23. In November, 1952, the Colonial Sugar Refining Co. Ltd. advised tbe company that it would be necessary to apply for tariff protection unless the two major asbestos ement r--nfselnrers. tt'tmderlieh Ltd. and -tome* llardie A Co. Pty. Ltd- could aid the Australian Slut Asbestos Com pany to marketing Wittenoom output. Specific proposals (a) format!** of a joint selling company: South Wales, drawing attention to the effect a tariff would have on the cost of water retieulatioa aervim. 35. In reply to a statement made by Mr. Brown to the toect that the products n( Asbestos Products Pty. Ltd. were com- iwtitiw with of other companies it ean he Mastrated hr price !(<# thnt 23 per cent, of the eocBporablt product* are - .bjgher in the ease of Asbestos Product* Pty. Ltd. ... 30. In addition it it submitted that toe claim made by Mr. Drown that e.hestm cement fist sheets are complementary -Vo and not competitive with other lining boards manufactured hv ("loninl Sugar Refining O. Ltd. is without -fovudatiou. Is New South Wle* only 38.1 per cent, of all prodectieo aould I* require! fnr xterns) use on home*, based on 150 square yards fit external sheathing per bouse plus 100 square yards lr eve linings, gable ends and garage*. 37. Since the war. trtirltles in owser-buildins of low cost homes have increased considerably and fnr this reason any increase in nnt however small i< >( paramount importance. The ciimiianys husines* was established in tbe low cost home lh-ld and the vifret f price increases and ew--amer re-action is moat critic). ^^ ^ ^ * Aifcittds Perional Injury Cases, Abrams Lad A eopfed to___ .. Richard ft ScwM^ 017181 17 88. The itttram by Mr. Brews tbit Australian Bine Asbestos Ltd. kim plant valued at 319.000 Item Colonial *rger Refining t o. Lid. {or a charge of Si per t to epver both iawrt depredation. he- suggests. is view of tbt high level uf wear and tear, that the hint tt absorbing as unmkooed not. 3fl. Before Jams* Uardie A C. Pty. Lid. sad other matfactum* are compelled to ** Australian blue fibre. Mr. BrownV romj*Dr aiivulil be mni[<e)fcd to lirrt ns* 1CK1 per cent, rroeidolite: is fact Colonial Susar Refining Co. Ltd. eouM incorporate a percentage in other buiidinr material* it manu facture*. 40. Tbe extra euet Involved if aabeetoa cement produet manufacturer* were compelled to use Australian Mu* would be equivalent to pacing a subsidy to tbc 109 min* worker* at Wittenoou ao amount of 2.278 per worker per annum. 41. The evidence indicate* that Australian Blue Asbestos Ltd. embarked upon a moat uneconomic mining project at Wittesoom without as adequate salt* tump. 42. The text of eablea exchanged with Turner* Asbestos Cement (Ax Lid., and conversation* with the General Manager of John* Manville indicate explicitly that Australian blue must he competitive os the world market with Cape Mae at 78 Australian LoA. Durban. 42. Although the company has had experience in mining asbestos sod it the only maaufeeturer of asbestos-cement pro duct* in Western Australia its views were aever sought by the Government before authorising an axpenditare of 454,000. 44. Misleading and inaeeuratc statements have bees made by Colonial Sugar Refining Co. Ltd. and the consulting engi- nser at Wittcnoom concerning the Western Australian erocidolite deposits. It has been erroneously ststsd that Aus tralian bloc would-- . (a) taka ear* of the mtirs Australian for fibre; <) he a dollar caver; - (e) replace the products of evereee* mines *UA were Wing worked eats fd) enable Australian msnufaetarers to export sheet*. 46,The proponed alterations to Tariff Item 874 (n) are economically and administratively unsound. There would he a danger tut the applicant might not always be content with having a monopoly of 16 per cent, blue fibre in all mixes. 10. Only ehryuotile. erocidolite and amosite penes* the high tensile strength necessary to produce a satisfactory board. 11. Different combinations of types of fibre as -well as ihe fibre ratio to eement affect the strength of the product: within limits, strength increases with the quantity of fibre in tbs mix. 12. Another contribution to bond strength is tbe surfae* area of the opened up fibre: both amosite and erocidolite suffer iu comparison with soft Canadian chrysolite. The chief cause <i| meagre surfae* ana b the high epeeific gravity ol the amphibole fibres. 13. The inclusion of sots* harsh fibre in the fibre blend not only assists filtration hut, up to a certain limit, increases the density of the resultant produet and hence it* strength; in ome respects Fresh Zone amosite ia superior to Australian croeidolits and at least performs the tame function. 14. Tests show that Fresh Zone amosite it interchangeable with eroeidolitc and with adequate supply the question becomes solely one of price. 15. A detailed comparison between the mining cost* of Australian blue asbestos, and the South African products of Cap* blue nnd amosite is rendered difficult bicsnsi in the latter instance cheap nattva labour is employed aad the Australian mine at wittcnoom relies to a great degree on mechanisation. Therefore th* real comparison ia tha total cost of production. 16. The deposits fa th* Humanity Ranges, Western Aus tralia, are undoubtedly eerj largt and whilst the ^mining practices are excellent, the milling process leavtLAsmCtUBg- to be desired. The cost of production is undenteod to be around 135 per ton nt Fremantle when 5,000 tons per M-- an prodneed, reducing to 110 per ton on 2,000 tone per naaumt this compare* with 58 per ton, landed In Sydney, for-Fmh Zone amosite. .. IT. Th* chief competitor of the Australian Bine Asbestos Ltd. k toe Capo Asbeetoe Co. Ltd.; there nrv other Sooth Afrfana competitor* including tht Transvaal Mas asbestos reducen who, owing to th* abundance,of ehiyautlk,.may well damp their production on tbe world markets. IS. ns output of Cape blue asbeetoe In short tuns in 'the 1850-1952 yean was as follows:-- *' INO. mi. ink 1UI1 >8441 *1,881 , By J. S. Proud, consulting mining engineer, of ' Finlay- production in >954 is planned for 80,000 toss should "demand road, Tummunw-- require it. ` Jjfr v _ 1. As eonsuUsnt to James Bardie 4 Co. Pty. Ltd. evidence is submitted for the purpose of illustrating the similarity between Fresh Zone amosite and Westers Australian blue asbestos: both these fibres beve parallel usee being berth fibre* and being used for reinforcement. 19. Of th* total output of Cap* Asbeetoe Ltdn 94 per orat. is of grade 6 ranging from i-io. to f-fn. ia length sod priced in 1953 at iSA.58 per ton Ixxb. Capetown. In April, 1953, to* cost of production was given et SA.46 per ton and the rate of produetios under 20,000 ton* per year. 8, Compulsory us* of Australian blue would mult In the replacement of amosite and not Canadian asbeetoe. In fact It would swan the substitution of a raw material costing only 66 per ton into factory by one costing 142 per ton. 80. The demand for blue asbeetoe ia th* general asbestos and insulation industries is unlikely to exceed 1,500 ton* per eppuqi for many yearn: the chief market for shorter grades of blue is in th* asbeetoe eement. 3. Any risim as to the value of a fibre must rest upon the validity of the method of valuation aad the application of this valuation to tbe use* to which the fibre ic put. 4. She method of testing the vslue of respective fibres used by Jetrm Ucrdie 4 Co. rty. Ltd. consists of making end com paring the fiesural strength* of a eeriee of sheets with those of a parallel scries of abset* made ia the same operation from a fibre of known performance. This method U similar to that nsed by overseas manufacturers. 21. The Cepe Asbeetoe Co. Ltd. plan* a step up iu production to 30,000 tons per yesr. Notwithstanding, some of th* hanh ehrysotile mined in Quebec has been subsiituted for blue fibre in asbestos eement pipes and the ehrysotile fibre from the new Munro mfae fa Ontario could be a serious competitor to eroeidolite. 12. In the light of th* advantaxes enioved by Cape blw tbe claim that a ready dollar market exists for Australian blue is open to question. 6. fa Australia the two systems <f manufacture in sue are 23. Trsnsvasl blue asbestos Is a soft fibre end laeks high the Hatsrhek and the Fourdrinier. -lames Uerdic 4 Co. Pt>. tensile strength: it* ehief effect upon Australian blue would be Ltd. use tbe former and Asbestos Products Pty. Ltd. use in the low quality market. the letter system; Wunderlich Ltd. are in tbe process of 24. A multiplicity of grades of amusitev is produced in changing over from Fourdrinier machine* to Hateehek. South Afriea and tbe prices in 1053, as shown in the aecom- 6. The main feature* of the Batsebek machine are illustrated l<anying schedule, range from 21 to 45. South African by the diagrams submitted. currency f^.b. Durban. Present production is approximately 7. Tbe manufacturing process can be divided lata three 484)00 tons and 75.000 tons per year are planned. separate pans. vU.-- 25. Us chief application is in tite aide field of insulation (a) (61 lei the formation tit tbe mixture of raw materials, La a slusrv ot wetted atoeitos fibre and cement sus pended'fa waters the removal of excess water by suetlon and pressure at tot sis* roller: the building up of the product by successive layers although in the poet-war shorn?* cossidmbto quantities were uwai is asbestos eement. Wbil-t tbe *nt't brown taaehed varieties were disappointing, experiment* hr James Bardic _A. Co. Pty. Ltd, with Fresh Zone amosite brought about a complete reassessment of it* potential value for at* In "asbeetoe cement. on the size roller or bv farther processing of the newly made material. 8. The asbesto* fibre twine the vemforeing agent play* a vital pert, the whole prove*. rfepeoriioe np*n the unique 29, The Freeh Zone material does si) that blue asbestos doe* in asbestos cement manufavtnrc at about half th* cost of Australian blue, and because .of Its light eolor produces*snore attractive sheet. property oi affinity of asbestos tor cement. 27. The technics] specifications of wfast the United States fi. The msnuiaetiirer nut make a thorough study of th* available fibres and in tom choose those types possessing the necessary charactcristies to satisfv the requirements of the ot America regarded as strategic material* in 1044 is set out in detail in accompanying *Ro*xrw: the grade* instanced are Cape standard grade*. particular maam<*ur;ng prtwe-s. The soundness of tbe eco 29. It it seen from details of world production ol asbesto* nomic and technics I decisions invoiced can have a marked fibre, submitted, tost over 90 per cent, of drmsnrf is tor effect upon tbe wot aad qualitv of the finished product ehrysotile. Prorfuttd In the matter of Artistes ftfrsona! Injury Casas; Abrami Usd & copied to Richard ft Scruggs. 0171W 18 tfl. AibMtM fibr* *m first diced in Australia during World War l. by Wunderlich Ltd. and James Bardie A Co. rtv. LtL, but these operation* ceased in 1981 because tber btnmc uneconomic. Minis* opersiion* wrn rwomed hr VVnnderiirh Ltd. iu IVii <t Baryuigil, Xev South Walc*.*jtnd in l`.U4 James Bardic * Co. i`ty. Ltd., joined iu the project: pro duction last year m d40 ton*. 2. The company's products arc used by State Instrumental!tic* aim by the Royal Australian Navy, ft is significant that ' i he British Admiralty now specify 109 per eett. amosite for tiv* in temperature Boiler and steam pipe insulation. A statement prepared by the company's technical adviser, Mr. Frederick l.ihason. supporting tbe objection so the ini|>oiMun oi n duty, is submitted. 30. When European factories were eut off from South African nnd Canadian supplier during the meat war. James By A. Walker f representing Goliath Portland Cement Co. Bardie A Co. Plr. Ltd. built up supplier to overcome the Ltd, Iteiiton, Tasmania >-- inevitable !<vst>war shortage period. World supplies are 1. The company wishes to record an objection to tbs Imposi again plentiful. tion of 9 duty os imported asbestos fibre. or alternatively t 32. At far ae the Australian position i construed the the proposal that minimum of IS par cent, of all fibrn need experience of veers abowi that maintenance of n local asbestos shall be Western Australian croeidolite. mine is unwarranted if It eanaot be operated at eurrent 2. The company's objection Is an economic one. In the manu asbestca prim. facture of asbestos sheets South African blue is now used 38. The apeetasey of lift of the known return of asbestos outside Australia even at as increased rate of production range between 60 and 100 years supply. 33. The tendency of ooom manufacturer* to explore the possibility of using lew grading* of ehrysotils is asbestos cement products eould eventually mult is the rstreat&eat of large dumps of this type in Africa and Canada-, the scales sm weighted against the wide ntt of bins asbestos for many years to coat. or 693 per ton. and whilst frum tbe technical aspect this eouUI W replaced by Western Australian blue ths cost would be prohibitive at 130 per ton Lo.b. Fremantle or Hit at factory. Even at the present pries the South African blue to eoasidered too expensive. 3. The company considers that the proposals before the Board would constitute an intolerable financial burden oaf en undos restriction on its efforts to provide a satisfactory ertlele at a minimum cost. Any assletenee afforded the Western Australian asbestos Industry should, it is frit, be 34. After yean of research work Jams* Bardie * Co. Pty. spread over the whole community by nose form of bounty Ltd. ean reasonably elaim to hare investigated tbs asbestos l<symrt -assouma.ot Australia; only one small erodnstr of ehrysotils emerged from these investigation* with a mint that is PcOBomicaliy toand. By R. L. Lnwrie (rinreeintlni Enin aad Clark tge, Adelaide, Sooth Australia 1-- 36. Amosits and bloc asbestos, both being harsh fibres, 2. The company, which manufactures electrical - art interchangeable and any enforced naags of Australian ahoets, opposes tan fntiodnciica oi a 49 per mat. tariff os bln* asbestos will merely replace portion of tbe amealu from imported asbeetoe fibre. South Africa. - t. As the malt ef enpmiamtn carried oat with difmenV 36. In ontradteetSaa to-Vri Brown'd wNtiflnn, the bulk' types of fibrn, mdy Cnmdton ahryuctlk It aow Mi to ths - of ths fibre when opened up has no connexion with the p*in aeaubctexfatf promamn. _ __ . ___ gravity of ths fibre. 37. Contrary to what Ur. Brown has stated, there is to international standard method of grading asbestos. The method evolved in Canada is really applicable only to ehrysotiU produced at Thctford. Quebec. 33. Additional technical data are submitted to eubetaatlaie the elaim of interchangeability between Freeh Boas amosite aad croeidoUU. 39. James Bardie A Co. Pty. Ltd. believes a stable market cannot be found for Australian 3 grade croddollte at J110 per ton Lo-b- Fremantle. By K W. Evgrett (representing Kaados Cement On. Lid, Yorkshire Boost, 14 Spring-street, Sydney, Knr Bocth Wales)-- In a letter addressed to the Board, Ur. Alee L. BeU, JointGeneral Manager of Kendo* Cement Co. Ltd. draws attention to the eerious effects the fmponition of a duty on asbeetoe fibrn will havs on tbe sale of asbestos cement sheets aad to tars em the company's cake of cement. Om* Swats. By 2. C. &. Croll (Senior Mineral Economist, Baton e( By E. W. Sismaa (representing British Belting and Asbestos Mineral Resources, 486 Bourke-stmt, hisibourns)-- Ltd., CleckheatoB, Yorkshire, England 1-- 1. The company, which is in tbe proem of eatablisbieg s factory in Ballarat. Victoria, manufactures asbestos textiles, packings, jointings and brake and dutch linings. i Seceareh has been conducted into tbe possibility of oeing erocidolite eruds as an adulterant to beeie ebryeotik in brake and clutch linings. Whilst this is feasible on the setter types ( woven linings, it ess only be rogsrded as an expedient. 3. The disabilities of croeidoUte nro-- fol its harsh springy nature mists that erasotttfetiM necessary to produce a dense bard wearing product: (k) it to mors abrasive than ehrysotile and can eeuse ecuring of the brake drums: (e) grads for grads it it more expensive than cbryaotilc. 4. It is requested that all asbestos fibres remain free of duty or alternatively any tariff imposed be limited to importations of crotidoUte fibres. J. Asbestos Is the commercial term applied to the two breed grouping* of nea-metaUk minerals known as serpentine aad ampbibole asheston. 2. The most valuable variety of terpentine to ebrytotito or what is commonly known as white asbestos: the group known n* ainnhiliol* comprise* actinolite, amosite. antAopbyUlte. rroeidoiitc. tremoiitc. Of this Utter grouping it Is erocMolite which, by reason of very large deposits U Westers Australia, is of considerable Importance la this Inquiry. 3. The natural characteristics of tic various types of asbestos fibre dictate the usst to which they can be pot. Whilst such uses are numerous aad diverse they may he grouped as follow*?-- (I tong fibre suitable for epiaaiag and therefore wear, log tote fireproof clothing; brake linings, giiktti, Aar (i) medium length fibre--used mainly in asbestos cement produets: fr) short fibre--for wee in floor tiles, palate, lubricants. By W, 8. Jeffrey (representing Australian Asbestos Pty. Ltd, 64 llseks-road. ltorriekrfU*, Xew South WalesI-- }. As a manufacturer of nsbettoe rope lagging, the com* psay strongly urges that the type of fibre used, namely white asbestos grade 4tc he admitted tree of duty ahoutd tbe Board recommend protection for asbestos. 3. Experiment* have been vondm-twl with blue abelo* hot it has been found impossible to use this type with the company's existing plant. By X. 0. Webster representing Bell's Asbestos * EogiBWiDff (Australis) Ltd.. S13 Waverlcy-road, East ifalrern, Victoria l-- 1. The company manufacture* a wide man of asbestos pro ducts. particularly packing and insulating materials and asbestos rope and as the majority of thasa materials require 100 per cent, imported atuesitt fibre any alteration in tbe existing tariff Is opposed. Experience bat shown that croei doUte has neither the thermal nor physical characteristics desired. 4. The principal characteristics of commercial varieties of asbestos arc shown in the accompanying table, which however must lie regarded as indiesting n general secrage, from which divergence may he expected. It must be emphasised Hist no taw samples from asperate localities will have Identi cal properties. --- --A. It Is difficult to cnerelate grade designations mad fa -vtri.mi nHintrk*. there being no iateraaikatl standard method u: gmdiex asbeetoe. d. The only national system of grading to tint adopted by the Qucbce Abe*tos Minin? Arsoeistioc for Canadian milled rfirysotils aabsstoa. Ths grndtnr method adopted Is ons of progrestsve sievioe by controlled sriutins through n series of four ifn.vcs i'i differiar sereca opening*. Starting with a esifflcu weight of fibre tbe proportions of such weight remain, in; in each box alter ths required operating time to expressed as relative proportion#. 7. Each grads of Canadian milled fibre to essentially a blend nf fibres different lengths, auertss in most other coantrto each grads conatou oi fibne oi n particular length or within a abort length rang*. nf produced in the ^J?,r_.ras8S. Asbestos, P"SloC Abrams Uad & copied w Richard F. Scruggs. Produced in the matter ut Asbestos Personal tarn Cases; Abrams Lead & copied to c Coennne 0 J1 Li*lors rf* , ' Tlir :ih.|o-rii<M ..i tit# varieties *H art* **l * ,B # table -niuuitted. the properties nt the three ma vanetle# "nh wht.-fa Australia i vwaccrned are as tollnw*:-- 17, .Australian import- ami expurt- in the ai-re a< follow*.------------- -liOKT TON'S. tteriml-------- _| I * Sal code \ssMlr. Wit : ISM. *',Aitrr UstdncM Specific srantv Tensile streaxth (1.000 lh./hq. in.) fusion point' F. Tiexihiutv HohiBahifitV .. Texture greenish. yeUosrwb 3.3-4 3.4-3.0 *M0U 2,770 High Poor Very good Soft to harsh Blue Grey, gn-en fitown 4 3.2-3.3 IUIU3UO 1 2.180 Hood Good Fair bofttobanh . i ! r>..7-c 3.1-3.23 (8-W 2A30 Good Pair Pair Cbane Import* Kspurt* ld.673 18433 33.081 28483 I3I.0J4 120.642 . nil .343 431 ; <139 1 1410 2,330 13. The iwjHirt > asbestos into Australia ha* bad as increasingly -ignilii-snt effect wa the expenditure of dollar currency "a >*en by the following rtstetneot:-- KXCESS IMPORTS OVI-R EXPORTS. -- Dollar eurrenev OtheresRtney 1 ISSI. tau. ! 1W. ! A. TA. ; A. 732,403 803411 1 980439 .. 761*938 i 827,087 } 488434 9. The Mode 0/ occurrence of asbeatoe U aitber iu veil* defined vein* or la irregular masse*: veins can eonaiat of ... 1,494,403 j I * crow n or "slip " libm, that la with tbt long fibres running either at right angle* or parallel with the wails of the rein. The uoprtHM-at I* IMS was doe to a Mill reduction in imports and a significant increase in the quantity end value 10. A total of 0,4704)00 abort ton* waa produced by all x|jrtei|: however, the net effect was wialy on nondollar evuatriea. excluding U&SJL, in the six years 1947-1952 in expenditure. tbt following proportions.-- 19. The Burcae has hefwaaWe to obtain faS Information regardig actual coasaaptSoa by types aad-graies of fibre CMBtrr.. IWrasnses at total oetMt. U m pndoeed. -- used in asbestos eament products, bwt of an estimated total -votwumptfoa of 9400 toas jt-lW wad 3(460 teas fa 19S3 ft Canada 734 .. Chrysotile.- " ' U believed the proportion average_out p.-n-i-----ij. South Afrim - ",-srr--* 4-tv fbrysotija,-- OeefeteUt*,' ' per eeat ehrysctils. 90 per cent amosit* tad 40 par east t ; Southern gbndasia -- U4u wnciland .. Italy Amoeite Ambepbyllite. M .. CferywotU*. 34 .. Chrysotile and Attpbibole. 34 .. ChrysotUa. 14 .. Cbrysotil*. vrwridolitc. _ ~ . _ .......... _ fiO. There sceats to be bo immediate prospect of a down, ward ttmd in the eoosnmptioa rate, which has expanded la recant years thus-- Cy^n* 14 .. Chrysotile. 1948.................................................................... *i,ol Finland 14 .. AatsophyUlU. 1947 .. .. .. 18,789 Japan 04 .. Chrysotile, Ampbibole. 1948 17,849 Aastralia 01 .. Chrysotile. CroeidoJitc. l........................................................ 13405 AnthophyliiU. Ampbi 1930 .. .. .. .. 34,460 bole. 1931 31490 Other Countries 04 .. Various. 95*........................................................ 14U9 1933 .. 33,849 11. The pattern of consumption is aot easy to plot because of the isndtsc* of post-war stoek-piliag: however it is clear 'list e.Nt-rpt (or Cattails and Italy, which enjoy Inti |*-r cent, and i>0 per eeat. self-sufficieaey mpeetively, consuming coun tries import the win bulk of their requirements. 31. A#be*to cement products absorb approximately 93 per rent, of the asbestos in Australia whilst boiler lagging, (tackias. floor tiles, gaskets, battery boxes. Ac. neeount for the balance. 23. The onlv (trices |iitliltdv quoted for Australian asbestos 13. fnfonuaUua eooeernies prices f mftrprr f*r vemotrii-- are for eroeidolite prodneed at Wittenonm and einee 1948 attside North Amariea and riots comparison of available these are a follows:-- _ prices Is aude difficult by the lack cf uniformity in gradius. Date. A chart i* submitted showin? the price* curve* of approxi January. 1948 Grade t. _ Grades. -- Grads*. 01 mately eutuparable grade*: these prices are at the level of August. 1948 1*0 W____ . 73 free (in board or froa on nil la the country f origin. Jttne. 1949 too November, 1349 .. "7! 200 !! 130 '! 133 4 13. Commercial productioa of asbestos in Auttrsli* fs com- February, /OJl fined to aboat fifteen deposits yielding from a few tons to January, 1052 .. uo .. 200 .. 130 300 23 170 4400 tons per rear. No deposits of commercial importance July. 1033 00 100 ISO have been recorded la Queensland. Victoria or the Northern December. 10.'4 170 130 133 Territory. AIJ the above prices are Lodi. Fremantle, 14. la 1933 Australia produced 04)58 short tons of asbestos as follow*:-- Usorr#. Western Aastralia Trpe. .. Crocidollte tfaaatltr. 4350 33. The lullowlns approximate -.iX A e. eosu per ton of imported (Hire have bees supplied to the Bureau of Mineral Resources by James Hardie and Co. Pty. Ltd. shown in A. |*r abort ton.-- Chrysotile 1.172 1 i New Month Wales .. Chrysotile #. MO ----- '____ 1IW. 1*40.. 1ttiU * ISi*. tvt 1-*. Aatralisn production has prugre*ivly incressnf since 1948 when 1.487 ton* were mined. Kxcepi lor siuall quantities of croehlolKe mined In Sooth Australia, production in the years 1948-33 hat beta roufiued to Western Australia ami Xew Month Walt*. Id. The principal Western Australian ile|<o*il# are in the region *>tu of Port HedUnd and south-w#<t of Marble Dar. I.ous-iibred -hrysotlle is produced at Nitnyerry and Mini ot Bbodeaian t 'hrvMdib-- Grade 3 Unde 4 t Wtttdian (.IrrvaHtil.-- Grade 4K -nitb African .lntvfc.tr*- i>7 734; 114 123-1431 133 103 47 77 88-09 1 108 88 4fi Ml ' 73} %8 . IOO 100 in 44 in .vt :,s A7 !nff crew* fibre eroeidolite occur for eonsiderahir distances in the s**ree* f the Haweraley Ranee*, situated Mtmximatclv 30W miiv **r iu inm1 H>faimree. These deposit- hluV !:> i. C. A.Ism* sSru^rimriuieut .0 SsMMrrment. W#rern Australia 1-- luttori#*. Mine* lw*to w#rc iir-t mined in 1937. but laruc-Hulc ois-ratinii* rr# n* tnrtol until 1943 when areas were to tin- twesent ntat.w. Au-traiiaa Bln# A-kot,,-. |,,| - .. ..| foe miaiHs stone in the Wittemsmt i.,.rcr aRi| j|. tributary. U`h# tssscg*. I. Prom * modi-Kt lieuinnins in UiJt>. wimn fibre was mined tli<- miiiuIi- la-.-i.-bine un-ili.sl, Wiitcunnni a-lte-tn* minine r li-i- .1*-*.*-i..iHi| -.n'i.lernlfiy t.. - u-.-e where np-to-date n,'ihi and e>|tii|Hiieni are remvepinu the lilirr efficiently .. the proem c.i(.iiai will allnjp, , i *** iJcwStg *? Following the taking *rar. la 1943, of the Wlftenoum *>. Ut year 4,700 short ton of ttn nr* pr*d*d fm by Anstinltaa Bin* Asbestos Ltd. a wamiful --irmfioo abort touxwf ore and a loss of 425,000 eras **tompt was m*4* to apply eoal-mtoing and drifting notbode t-Had-this-qnarrtrtv of tba higherqunttty Western Gorge ora Because / the extreme hard***# / tba rock enclosing the Uwa treated it is estimated that the ben would have bees libra at Wittaaeom it was anwrr to iiutaU modem light irsasUted iato a profit of IttllW. machines with air (eft aad tungsten carbide tipped *Im1 bite 3. Initially all the mine epeaian were kept doara to a height u! 4 feet which Beast tkat the wisera were eratapad aad retarded. The Ittort Itrest baa drive* of 7 feet high aad 8 feet wide. 4. Tba system *f removing brokea took is by pane aeraper aad electrteaHy draws railed damping tracks. 5. With the stetacs of vertical abaft* aad sataral water, humidity i set troebteaotte aad the problem rf vcatilstfea tl. Io a total asmber of employe** of (04 there ere 124 mployed in the mill aad workabope: this fedeet* the diffi culties ex|ierlented in the aeparatioa of rock aad fibre. 22. Jt is considered tkat fundamentally the WHUaoom mining proepeet i* eoadaeted along aoaad "*, aad with eon- tiaaad improvement la milling pcnnmms. M *nsjtmihn with a full-scale development of tba Western Qom deposits, worth* while profits will be woa from Australia's bine aaheetoa twittuw. t. * . not difficult; tbit it undertakes by a primary fas. driven by a Bf'-Q.'T. Yead (a&htsat mining- engineer, Bsreaa of 80 bonwpowvr eleetrie motor, disputing 40,000 oabio feet of Mineral Rraticwej)-- j- air per miaate aad secondary ms* (2400 cubit IsH) of.. 8 horee-power. J" ... . nc - In the *ad*Tgiuuml -airtion of WHtenoom mfae the !. lb* sxtoeloe neenrrfnees'at-WJttesoom and Xnayerry, Western Australia, bsre'feea examined aad is the Ugbtof the proved eoasialeaey of tba /ormatMn*. U is fwaaooahlc io assume appliances aad teekniquM combine to form a well Integrated that tba following mineral reetrrea exist::-- whole wkleh wmba metbodiaaftyand amootbly.' * 4M T. Tim* priadpka witbrimnevneate to wit tbvUeatien- are sow bring used to mtn*:flbr* from Weetera Gdftvjrbar* the rnde oflkre ebiowt Wltteaoom flfiV'ICTs______ project should to speedUj |l$j*lo outlay will toprimry. frraB gatod-^. _ tat tbrin--t-WUtwoom ml** w* twt 'JaMi'ei'f' f**i**.'H' -it-*** . M saw Ssiooo sassmsfblii p+im. * .1 tl . .-*' I.18A0OO . ,d000 . timi,.. * - 2,011,boo' r.-W- ihjanaiarseem tor ttrrpa^'t*ia wire* awm iaoparatlwmi** --ivtiaged eftw*CTbhiw 'BsigiHhM ***** * mtot ci thkt#r.T' -t-e--k-*--u->-d----a-4--.-e-f-t-L- -,-3-->-.4At. p*.m* *cAr_OM.t4tktf>trv--b---L1#- t tHiSi1* -fibre i wmw thi-pah^motbod.at'l4-fk`eeat7v to ptippuil1krirU tte-foite^eraQi aawho* b--b--a--f-U--1-------------------,,-------------thmfibraaaam ia only t to 4 : hafid ]]^Z*.4h* ahewe* of praeedwt, eroeffalit* fibre eeparaUoa __?*^ite aabeaioa^ MiU|tNfi i;tn^reoer*i dHwemalm'araeeettaatiaa the it ' **th yeayerry^obg raeoeety eTbra^. oootraatt'wft^' ;,iiTsL,K- 3SSisSiSS35^"Wr5s Sir' I f-ibre to.d- rawa apward.a .fn.a.s .alx. corrcsL *' 13. Th* m^niag problem i* oMstiaOy os* of lack of lsfornaU and whilst improeemats aid. oematutly betse made it . p The extent of abramTTfiwt at Wltteaoom ia a oartoos oj_pf_trofiab_TUa__m*.. Abatraliaa Blot A*be>to*X<d.baa ia*taU*d aad ettlie*otorv lBxihe>.mUl bet. eoia.diUo.na' a asmber are ptill to. ti- C^^realth' Ooreremcot refJd . csrare an tepmed orerau.iwoepiy. . ** - . -^o^t for , | per eeaWdoty rm Imported aabt^oa aad a 14. bllUlng eoat* are gieea aa 30a. per ton whies ineledea abeidt of 45 per ton on fibre prodneed, aaaistaaee wae girt* .8*. per toa for Jota bag* -to eotrUla the fibre. Three mat* an high hot sot sedate ao M eewpaxteos with those ef teipe Aeatraliaa gold aad bat* metal mlaaa.^_______ _ . to the* industry by the Commonwealth and the State Goreramewl ia the term ate-------(*| freight anteidy of 10a. per toa eabwte* chipped 15. The mine power sail was redeeigatd aad reioeated ia from Point Samson to yruisiili aad * subsidy of 1951 aad the preeeat eoet per salt is 44d. which la about 17a per toa on asbestos aad goods either way 80 per ecak higher than the eoet ter almilar teetalleiiea* - - tetweea WUtmoom and Pnlat Samso*; teeated elaewhcrer the mala reaeos- for thle I*'the *eet ef diceel fuel at 43* per too against tlaewhtte of US. (I)- tbs smtisa of houses, sebool. hospital, post often, fic^" ia the township of Wittesoom. 14. The toad tnoportetioa of fibre to Foist Samsoa and the retro loading of store* le sadsrtekee by two eoatraetora who eharge 13.&. per ton mile. Ia tight of eomparfsoa with ohsrge* made for similar servlet* elsewhere and the capital outlay it is considered the eharge phonld not be more than Sd. per too mite. 17. The eharge for freight from Point Kemeoa to Fremantle >* 37a. fid. per ton; to this must be added handling mats of 42 per toa aad 41 10a. per too at the mpeotirs porta. By E. Adams friiirstsiiilai tsslatos Indastriss Ltd, (lirntehureh. Kew Zealand^-- . 1. Asbestos cement sheets prodoetd during feet raws oa Hstscliek maeblaes showed noticeable improvements when No. 3 grade Australian blue fibre was included in the asbestos fibre mix. Improved performance oa the machine* at varying speeds, the handling properties of the greea sheets and gsoeral flexibility and appearance were noticeable when fid per eest of Anstraiian blae fibre was aaed. 19. The total capital wpeadid to date Is ll.7ftO.OfW plus governmental ~u***t** of 4480400 for bousing, made and water --pply- ----- - - - - i1 imIwiml * 19. Fertioa of this high capital expenditure tan be attributed to-- <) the aoed ter the company to prorMe adepaete am*nities iadudiax rineme. hotel, eaff. Ae.t (9) the fact tkat operations were ewmmeweed ia war time; (e) the seed, particularly in the initial etese*. to ttplece obsolete min* and mill equipment inelndihg the complete renewal of the power bonee. f. A letter from the eoapany dated 13th Jane. 1954. advised the general matugrr, Colonial Sugar Befisine Compeov, that ,,\'ie Xealsnd .exchange regulation* restricted the parehaa* of Australian Mac fibre. Within the scone ef these rcctrlette** the Ocnnpenr intends to eontiaoe purchasing blue fibre. Tbe enmpanv's major requirements ef fibre are covered by cowtract with tbe Aebeetoe Gorpcratios of Canada. In addition a con tract has hevn in operation sioee 1048 with the Tape Asheat<r* Company. 3. Although only 1ft tone of Aoatralian Mu* wee* seed in the tests referred to. It la considered that this quantity was anfllcfent to afford ennrinsiv* mult*. Printed for the Goransyew of the CoMWorwxatTS by A. J. fimrai at the Gorarmnent Printing Office. Canberra. P/oduc*d in the matter ot $.03 Asbestos Personal Injury Cases; ----Abrams lead & copied.to_ Richard F. Scruggs; !1i> ' ui ;: t.r, commonwealth of acstralta, TARIFF REVISION. TARIFF BOARDS REPORT tS ASBESTOS FIBRE. \ o. 9. 24th MARCH. 1955. 1673/55. Printed lor die Govmnumt 01 the Cokmouwkaltu i> A. -1. Authc* .h the Government Printing Office. Canberra. (Printed 10 Anemlia.i OlTU'l' PERSONNEL OF THE TARIFF BOARD. cM. E. McCARTHY, S ., AA.S.A, Choirman. i. 8- CUMMING, A A S A., Member V. A. CLARK, 8.Com. iTas.t, Member P 6. NEWCOMEN, C.3.E., Member. P W. HIGGINS, Member A. DATE, 8.Ec.. Member. F. I. ELY, Member For the Purposes of the inquiry ond report on rhi$ matter the powers of the Boord hove been exercised by-- M. . McCARTHY, Chairman. V A. CLARK, Member. P B. NEWCOMEN, Member F. W HIGGINS, Member. TARIFF BOARD'S REPORT. ASBESTOS FIBRE. f'sr',srr --ifi: 3y*:$ranc* v : v:f vs:!''* BvarJ ............ .!* jii:rv .1i kKnn;t* ... iiRjr** ,fi*m -*T 4 It* "K\<T [?*C, nt 'T! MS >'.!> r.MiifK >.*.4 Kntlali tod e Tariff .rutn* !>.< * >nrl m-p r` r11 he TAKUV Bm.VKD ! f.'ndcr tin' Tivfiif il<nadin Prc:fi*nrp > *n; C.ri:f . NVv ZiMi&nd Ikre:orrTir*< u-* c* * `** *cke :1en^'*. n .nn.'.iuu irmn 4.jAai.\ r R* .m*r in*.' u t *1i.> j.ii'ii'tpiio* j,i .< !<<{ .M.* .in. .?'( mine* *ii. j5r:*esh l'r<v>rrm:i f.iri(T J <.... <J. i'*.i *!>;, tmrlpr Iccrn O f.:. a!., n <>r: Zt Ai tm? . ii\:.**rtcu rr* in Pvil.mi |....... . iff ......... ' Wo i*.o..tin >1 *. unu nf .'.l .t. a.iHittcd under *lnt<THH>iinU* T\r:sf. i The sovu* urvU'p *'.uvnci* u** 'r,N. ff<iin anv <>uutrv i'i:rtiv;p uit\ IM POKTATIONS. Official statistics of the goods unuer reference arc *ci -Mir in A epcndix A. - ' -.:i. iir:n-;i i(.'',tnc and ; ... ( eo.\'jeali>ii, Vontsii I re. England, .'''u:' Jnneiy. d::ector and general -a '. '..-iraiian Aat>cios 1't.v. Ltd- 54 Meeks- u New South Waits. X . :u.i tic-rr- Webster. .-iiuical assistant, Beil'.* .-.'C-ii - .i.hi Enginot line : Australia) Lid.. :M '.' iici i, v-iuu'i. Fast Malvern, Victoria. s.Ki tc: Wji.vi:i-. ncrc'i'niing t/oiiiith Portluud 1 -im'm 1 i. i. Kjuton. rnsiuaiim. ... .: I... .i r. c.. . r;e. reprcscntuur Ellis Co (iiarn i. ... 1 ................. Adelaide, .^nutti Aur- .i-'i iv.i'-ri, rciiiv'en' mu ICandos ' i ii |,, Wntdiiri* IT*i>-**. 11 .'princ- . r.r 'MM-. \ew .South Wlllt-V (Jtiiv.r Eviokscs. ..... i nrie- IF udevson (`roll, .'iemor Mineral ............nisi, liuieaa ot Miueinl Ke-ourees, 435 ii'ifkr--tree'. MM bourn.'-. - n i-t iiii't- \.Intiis. .siiperiniendi'iil --I S-ati* Batteries. VV,'stern AuOralian Minna Oepartment. Perth. Was-, in \::sii-iiin. i.mrse F-lix ,\fiati. a-sinaut mining entrineer, \!!;|t|.:| ................ICS. I'.". I InUlkc-lllTC' '] i41 . (. I ' I . J . \.i:'i:.*. t-iti.iite:'. 1 nuu ton [tidujtric.s Lldi-i .n: . X, M /. .ll.llld KVlDI-iXcH,* -t.y <: r!ie --itirial transcript of evidence tendered .. rJ.c inquiry :oranietl herewith. PUBLIC INQUIRY. In accordance with section 11 (4) of the Tariff p.nnrd Act 1921-1353 the matter covered by the Minis'er'-* reference was made the subject of a public inquiry by ihe Board at-- Sydney--2nd Juno, 1954. 3rd June. 1954', aud 4th June, 1954. Melbourne--2lst June. 1934. WITNESSES. Tiie toiiowine witnesses tendered evidence on oatb at the public inquiry and were examined by the Board: -- Lv FlVOlR OF PsOTICTtVB DuTtfc.. Keith Osborne Brown, managing director, Australian Blue Asbestos Ltd., 39 St. George's-terrace, Perth. Western Australia. Malcolm George King, director, Australian BhuAsbctos Ltd.. 39 St. George's-terrace, Perth. Western Australia. Honorable Hurry Charles Strickland, Minister of the Crown. Government of Western Australia. Parliament House. Perth. ' - (hTOMTION TO pKOTBCTtve Dl'TIM. .\Mttui.;r .-y.lnev Phillips Smigster. director and ...rk* f.i'i^eer. Wunderlich Ltd.. Baptist-street. EK-diVni. X, w South Wales. John Tiivtn Adamson, managing director, JatnvHard:* aim C o. Pry, Ltd.. Asbestos House. Yorkstreet. Sydney. 'inn oevn-oiir Promt. con*uitine mining engineer d Finl-n ov.: Turrannirra. New Smitli Woles. F 1-5:3 A-. 2 SUMMARY OF EVIDENCE. riic main pointa in the evidence rendered at the .equity have been summarized and are set out in Vppcndix B. L ARII'F BOARD COMMENTS. Otnotx of Rkfesestb. l ev Minister's inference arose from representationmails' by Australian Blue Asbestos Limited, Western A is'raiia. a-quc-tini: that assistance he given to the '.lii.-tiuu in Australia of asbestos fibre. Imported il.it- ;s at present being admitted free of all duties - 1 uh's.s .11 ..riem and fret* of primage duty, History of Industiy. A.siwrtos I- a commercial term applied to a group ... r.iiucrali characterized bv a silky fibrous texture mil high heat resistance. The mode of occurrence i* n weil-dcfiued veins of fibres or in irregular masse.* ..setiiinaci'il throughout (he host rocks, which are uiiiely di>trtbii(i'd in the rocks of the earth's crust: .h-pnsiis nf iiiiijnr commercial importance, however, me confined to less than a dozen regions, most of which are ivirliiu -tic British Commonwealth. The mineral, asbestos, has been classified into the two broad arouptngs of Serpentine and Ampbibole. This inquiry is mainly concerned with the three varieties which arc designated--chrysotile. amositc and crocido* l;:e. Chryotiie. more eommoniy known as white asbestos, is commercially the most important form of asbestos and comes within the Serpentine grouping: iimosite and croeidolite fthe latter commonly known n ' luc asbestos) fall within the Ampbibole grouping. * ft<i (*rinrl 1824 o; /> 4 ?'>..i-t thws *o :r.:crr.a::t>Eiiiv ized iianda:-: method 3: gractr.z asbestos, the t.os: w:-i*iy uscc system -.s that adopted ;y the Queoce Asyc`tos Mit-.ins A = i-> -.atto:: to: Car.atitan milled tarysocilc a-cc^'.o-. "ho -Tide broaciv governed by dearth -he tibre: tr." greater the gca t.-.e tigher trie grace j::,: ^nseqiiorit:" aighsr t:e prtce. The principal uses for asbestos fibre a.-e-- 'i) in the case at long dotes, -tpic.-.v.r.e into yarn tar weaving beat resistant doth and tor ir.suiating materials: hi) reinforcement in asbestos cement products. requiring medium iength fibre: and .Hi) for the manufacture of insulating paper, dcor tiies. paints, lubricants, ic.. where short fibres are used. The universally accepted method of selling asbestos di-re is nr the short tons of 2.000 lb.: hereinafter, ail reference to tonnage in this report will mean short tons. In the period 1947 to 1952 inclusive, the major pro ducer in the world (excluding the Union of Soviet Socialist Republics) was Cauada, producing *3 per cent, of the known world total. Canadian annual pro duction increased from 661,320 tons in 1947 to 929,339 in 1952. South African and Southern Rhodesian production ranks nest in importance, being 7.4 per cent, and 6.7 per cent, respectively of the known worid total, whilst Australia's contribution was only .2 per cent, in the six years to 1952. Australian production repre sents a self" sufficiency of 7 per cent, oniy. Commercially, Canada produces only chrysotile. the bulk of which :s of soft" texture which appears in u fill ranee of erodes: the balance is .1 'harsh" fibre hrysetii- ..Tirring in non-spinning grades. The ' 0:011 '! riourii Africa produces chrvjnrile. erccidolitc. amosite and utthonhyllite whilst Southern Rhodesia produces raainiy chrysotile. The main commercial amosite production in the world is in the Petersburg--Lydenburg area of the Transvaal, where production increased from 30,332 tons in 1943 to 63,280 tons per annum in 1938*, the total crocidolite production from South Africa in the same period increased from 10.903 tons per annum to 44.733 ton* in 1952. In Australia the commercial production of nsbesto3bre has. hitherto, been on u small scale, as shown by the following table:-- -- J .. T |0<* 1 iwe. < t?so. li'M. ?9. i mi. CCOlrtiohfvcesirdftoctyjllipetee* Ton*. 1.0iU.-13i0 ji 3:TM6is39 1)i 1.43G1043* ; 1,<13i.4 1!' 1 ; t1.,-Wtl'S7 1I.,-9JX0H3 I41..J45008 Whilst chrysotile is in strong demand, deposits in Australia are limited: conversely crocidolite reserve* far exceed the apparent demsnd. Deposits of ssbestos occur in New South Wales, Tas mania. South Australia and Western Australia. The oniy deposit being worked at present in New South Wales is one of chrysotile at Baryuigii, 52 miles north west from Grafton, where a maximum yearly output of 636 tons was obtained in 1953; other small deposits of chrysotile occurring, but not at present being worked, are situated at Woods Reef (12 miles east of Barrsbal and at Red Hill, near Broken.Hill. No leases are current in Tasmania, although there ire occurrences at four or five locations. Total Tas manian production from 1899 to 1953 was 903 tom of chrysotile and 7 tons of amphibole. In fiouta Australia prcsoectisg for chrysotile has been u.-.ciertiiei: :r. a itamcer of locations since 1929. with lithe success, in this Stale crocidolite occurs wiuely in a oc.t extending 409 miles north of Encounter Bjv out actual production .`ms been recorded oniy from Rocertaou u::i; ti^m Orapannuu Station. Although -.cither deposit . .-jvshc worked now. an aggregate of .'10 tons was obtained from them from 1951 to 1953. Two small deposits of ampuibole wore worked from '.536 to 1340 for a total oi 66 tons. The principal deposits of asbestos m Western Aus tralia are in the region south of Port Hedlaad and south-west of Marble Bar. At Ntwyerry and at Lionel, good quality chrysotile is produced and four other small deposits in the same area have beea worked. Total production of chrysotile from this region to the end of 1953 was 6.093 tons: most of this wss of a grade higher than that generally required in Australia and was exported. In terms of area and known reserves the crocidolite deposits in the Hamersley Ranges, Western Australia, -re the most important known asbestos deposits in Australia. These deposits are similar to the crocidolite appearing in South Africa, but the Australian fibre is longer, whereas the earliest recorded production was in 1937, it was not until 1943 that plans were laid for large-scale operations when Australian Blue Asbestos Ltd.--37 per cent, of whose shares are held by the Colonial Sugar Refining Co. Ltd.--took over the leases. The interest of the Colonial Sugar Refining Co. Ltd. hi asbestos fibre was the result of that company's entrv into the building materials field in 293S, when a factory for the manufacture of cane fibre insulation board was -scablished. In order to be in a position to supply tbe full range of building boards the company also acquired control of its present subsidiary. Asbestos Products Pty. Ltd., which is a small producer only of fiat asbestos .-cmcnt sheets and corrugates. The extensiou of the activities of the Colonial Sugar Refining Co. Lid. into the asbestos fibre field brought the company into competition, although only in minor way, with the well-established asbestos cement producing companies of James Hardie and Co. Pty. Ltd. and Wunderlich Ltd. An early conflict of opinion arose between Jfimc* Hardie and Co. Pty. Ltd. and tbe Colonial Sugar Refining Co. Ltd. concerning the acquisition bv tlii- latter company in 1943 of tbe Wittenoom blue asbestos deposits. James Hardie and Co. Pty. Ltd. contended that these deposits could not be operated profitably because blue asbestos would only be used in the manufacture of asbestos cement for" the same purpose as South African amosite was used, and tbe amosite could be obtained for about half the price at which it was estimated the Western Australian blue asbestos would lie offered for sale. James Hardie and Co. Pty. Ltd. intimated that it would, however, be prepared to buy at prices equal to the landed cost of imported fibres any Australian fibres equivalent in grade and qualitv. The Colonial Sugar Refining Co. Ltd. considered that the development of the Wittenoom Gorge deposits had good prospects of success, even without the support of James Hardie and Co. Pty. Ltd., and that there were other possible uses for blue fibre than in the products being manufactured by that company. The development by Australian Blue Asbestoa Ltd. of the Wittenoom Gorge deposits in the Hamersley Ranges, ISO miles inland from Roeboume and Point Samson, encountered all the problems inberent in the establishment of a mining venture in such an isolated region, particularly during the war period. Labour was difficult to obtain and equipment and transport costs were very high. Tn addition the nature of the host 0 i 71 * >' > 6 -:> m:r.;r.g tifhcuities which require1; .i :.`:c:a: un.i.-.e -. men -vas evoived naiy alter Mr,- ;nio <.. a::c experimentation. 'be aaru am -::i.-!ve -r.e ore acced to wiling :o= -met . ..c jenerai difficulties which catiseu . -to, to muse rcpi'Csvirattons l' - -:.i '''e-fern Australian Go'crnrren . .................... Mr.t Me t ; mnior.wsa.! .--r- ....... rinr:--i: w::u tnc Western Au- :. .-.lireni to oiev-.de j irticni ?uu 'nl'S'l.' snipped :resn i'om " :r. -- 'Miiitsfe aa .iin.icionai ju.ijiuy . .7- ' : .. .i-he-tn-. -mi oy rmid t'rnir: Wiitenof.r. !! j............. further subsidy . provided a ."ft'i- ......... ircim Point Samson to :ne mini .i.!2 ''Netpuor. of btiiiding materials tor house- : uiir ui'ier Mr l. .'njmonweaitb-State Housing Agree- r.nir. .'.Though the as<ixiauee thus agreed to was :'n. \ limited ociivii and was to be reviewed in June, 10-43 ; ,v:.- -'ntnnif'd beyond that date and did not coas< irini July. Aot-ording to the evidence oi Mr. F G. .'dead. Assistant Mining Engineer ot' tbc Bureau f-t' Mineral Resource*. the Commonwealth's share ot' the -iin-idy amounted ro 4SO m 19-J7-48; 1,033 in lOi'-it'. 3.743 in 1049-30; and ?.2S4 in the period 'mn, tu.'in to the end ot June, 1952. The Commonwealth Government also provided the :`;:td under 'he Commonwealth-State Housing Agree ment -vith which the Western Australian Housintr `'ommission had 132 houses built at Wittenoora for a totai cost ot 231,634. The houses were actually 'unit by Australian Blue Asbestos Ltd., at cost plus i\ per cent. In addition the State and Commonwoultb governments have provided the usual services, viz., water supply, school, hospital, police, post office and maintenance of rite aerodrome taken over from the ciimpany. The continuous efforts which Australian Blue Asbestos Ltd. undoubtedly made to secure economies In mining and milling operations met with some -uccess. hut. in face of the increasing supplies of a-bojfos fibre which became available in overseas countries, the company has had difficulty in effecting '-.ties and unsold stocks have progressively increased. The possibilities, therefore, of profitable operation iuite apart from the need to recoup the losses of the earlier .developmental period, have not improved. M.."-n i ' IV ,i\3 pl'ASONS TueatFoa. ", :* :rj.:an Glue Asi-estos L:u.. Mr. ). G:. ... - ivstci :;..it mc e.vtstine iariif item I'-t"------74 . --.it present duty free from aii ;.'r:c-. . :t-p.^--. :c:c a 10 per vent- tarifi . . uruut:- ! tisoestos tiore imported . -. cm i-. n uie-nt to ('.niauiait Grad- . --- ;- ; '-. :tu proviso -.m: exemption -. - c.-UMCs -.:ercu for use :a ronnu- . .. .. . .:(* '..c Mt.ii asocstos cootens of which . ........ .i raiia;, i,,,.i-rnmeu: ! lii.imi. Minister -i. .i: j! : ! the riiinvt for rarllf .. -.1 ;.v , ;...* .1 -a.....- ,,.j nrdl -.ipport of fhO fiv.* duM- -.X'crc-- n..rc i- n -irattrcic niuierai .inti it t..r : ::niiv i:n(,i.i-t.mt Unit deposits of the i ,iiri:jr-.i.K- -in ring hi ibe lixioersley H.mac-. UV-irm Australia, jlionld bo fully .ivi'clopcd; -ii araue ot i.-iocKiidiu; pruducctl at Wittcnoouj t mi{< and the ad lacent Western Gorge is at '.-.ist comparable with overseas crocidoiite and if a minimum consumption is assured the Au.uralian fibre will he able to compete . ith imported fibre; uii the use of 13 per cent, of Australian croctdo- !:tc in asbestos cement product fibre mixure.- would ensure profitable production of lie Australian fibre; : i tuc economic welfare of the inhabitants of ijio towuship of Wittenuom. and to a great - \teut of fjie population of Hoebourne and Point Samson, is dependent upon the -iim-sstul operation of the asbestos mine: v i unrf uasistaiice is necessary to ensure that the financial assistance already given by the Western Australian Government and tin: ( oininoiiwi-altli Government to foster development of the North West will not be nullified; ii the use of Australian crocidoiite in place of I'.uiiidian ciirysotik- would nave Australia dollars. The figure? u'iven in evidence to show the declining .-i-vr of ni-ndiieing crocidoiite at Wittenoom over the i>at four years due to increased output and improved e'hninnc ( re ,i follows:-- ....... '.<.tl ;o.fi.S2 30.S.33 ........ . re 01 lg..t3 . . 1" ! .u03 2.594 3.63a 2.220 <** er ten into ire. Krrmnntlr. i 202 102 137 The pi-odncrion rate had reached 4.500 tons per annum at the date of the inquiry. The cost of grade 3 fibre 'rhe haie grade) into store at Fremantle was stated ro *>e J3.'i per ton. As acainst increases in output shown abevo the sales of fibre ever rhe three years ended 30th June, 1953. were-- Y*.1f (MM-- ; | 1 r>Tra*t' 30th June. 1951 30ih June. 19.52 30lh June. 19.5.1 98A : 1.533 : 1,043 | 32a! *43 ! I.KJ4 | 1.113 2.37(5 2.897 i ir-i-osiTin.s n> rna ixicoantON ui- > lifiv ano Hkasona Titfcah.yoii. it:; U-iiiiii "i .lame? ilaidie and i'u.. Mr. .). T. \<i:iiii.-Mti "I'l-'-i-ii tiirilf pi'ouction but requested that if .--i-rnncc- he anorded asbestos production in Australia >ich n>-1sro11-1* -hould hi- confined to rite payment of a bounty. Mr. A. S. I\ Saugacr, on behalf of Wunderlich Ltd.. .'Ifo opposed the imposition of a duty, and requested 'mt any n-.-isiuiue afforded the asbestos industry in Australia he given in neh u way as not to compel .i.-iio-tos eeniciit product manufacturers to use Australian fibre. The rciuaiiiiHg opposition ivitnesse* i-onrested th<application mi the ground* that such imposition of a .!;iiv w.,iii,I p{.icc a -crious fiiiflnciai burden upon the tui-nu-.i- 11 icy represented. I"nc prim-ipai reason* advanced in opposition to a protective duty were-- G) any administrative action designed to compel manufacturers to use Australian crocidoiite would raiso costs of production generally and in specific eases would require modifi cation of existing machinery. >J . U 0 17 : 7 U granting oi a 40 per :s;. auty ;n importer piuce center.: prom:: vcicrs it ^ ikju-.-antase -- :..e :-j-i !.:? would -.o; enoctiveiv a-'1 .'...a:- rtcmse tse usage of 'rocidoiite -..a n.ereic replace St-.tr. African me .pmonc the remote ssoescot deposit - 'r-^orr. Ausiraiia --vis i,i advised ami tuee'nomicsi, and it :s unreasonable to x'<tt aj-.esios cement manufacturer.* to par r *uca a costiy experiment. Acsra.iitA.v Markets and Demand. i i.e tot.ii usage of asbestos fibre in Australia at the _:.';-e:ic rime is approximately 32.000 tons, it :;i- jeii ::nate<i that J5 per cent, of this quantity is used in :be production / fiat and corrugated sheets. pressure pipes anu sundry other forms of asbestos cement pro ducts. The remaining 5 per cent, is used in the nanufacture >> ..eit-resistine fabrics, brake linings, oiler lagging, initiating materials, door tiles, gaskets, cattery boxes, pacstngs and paints. There are onir four manufacturers of asbestos cement products. 0: these. James Hardie and f >. Pty. Ltd. produces ncar:v TO per cent, of the totai output and Aunaoriich Ltd. about 22 per cent. The rcniaiiiintt proportion of the total production is divided between Asbestos Products Pty. Ltd. and Goliath Portland r'emeat Co. Ltd. The varieties of'asbestos fibre used in asbestos cement manufactures are chrysoiile. amosite and crociiolite and of these cbrysotile is commercially the most important. Australian consumption ot the three varieties has been approximately in the proportions of Jf): 30: 10 respectively, but, in 1053. the statistics of usage showed tiie relative proportions as bo: 2d: 4. Each type of asbestos fibre has particular properties which determine it6 suitability, either alone or in com bination with other types, for various uses. Mr. J. to. Proud, a consulting mining engineer, giving evidence on hehaif of James Hardie and Co. Pty. Ltdstated that there are four considerations upon which the strength, quality and cost of an asbestos cement product depend. These are-- ';) The amount of asbestos used; /ii) The tensile strength of the asbestos; (iii) The bond strength between the surface of the asbestos and the cement; and (iv) The speed of filtration and final density of the product. Each manufacturer, therefore, determines the propor tions of eash type of fibre and the quantity of cement and water in the mix according to his own formula, having regard to the technical operations best suited to the type of machine which he operates, as well as to the final costs of the product. Much of the discussion nt the inquiry centred on tha technical characteristics of the fibres used by Australian manufacturers and the relative costs of msnufaeture ss a result of the sub stitution of one fibre for another. Australian asbestos cement manufacturers generally favour the use of a high proportion of soft chrysotile fibre to ensure the required bond strength between fibre and cement and a quantity of harsh fibre, equivalent to about one-third of the total usage, of amosite or crocidolite or a combination of amosite and crocidolite, according to the speed of filtration required and the densitv specification of the final product ...taouza are severe. ;msll deposits oi caryso- usoestos c.rr'rt.v roir.g worked la Absentia. the r;.n-j a. ,ucv ;ar excess ot .lv.mauic loca: lit: ,i:: 1 l.-. -i.a >; A-:;; rainm rcquuomentS IS 'n tr-'tn ;:.e -..'.teiur.e Lttuaaias r.cid.-. Amosite :i..-e ; importC'! tr.ra :ae L'uion of s^uth Africa .i..u southern AiiO'iesia. wnore large deposits exist. .e output ::oai .%h:ch ;s oeing rapidly lr.creased. ve.-y extensile deposits of asbestos ;n the A irtenoom Gorge area of tae Hamersiey Ranges in item Australia, wnich are icing worked by Aus tan b.uc Asocstos Ltd., consist of croctdolite fibre ue asocatos). watch is commercially the lease impornt variety :rom tae point of view of present demand. On the basis of a production rate of 1,500 short tons pvr annum, the price of Grade 3 Australian blue f.o.b. Fremantle is 135. equivalent to an inco-store cost of .nr-roximately 144 at Sydney. If an assured sales emme of 3.000 short tons couid be obtained. Australian ' 'it Asjfjtos Ltd. states that the average price of its .-..-re could bo reduced :o 110 per shore ton. at which ;>! :ce, it :s cinimod. :t would be competitive with equiva- .v ;t grades of imported asbestos fibre. The company bi-iieves that overseas markets could be found for 4.000 per annum at a price equivalent to A.110 per short ' 'i f.o.b. Fremantle and that it would he necessary to .:-poe oi 4.000 tons per annum within Australia. In its eiiorts to reduce the eost of production of -sbestos here. Australian Blue Asbestos Ltd. is develop.iis a richer ore body at Western Gorge, a tributary of W.ttcnoom Gorge. The company's plans, however, provide only ior u proportion--up to 20 per cent.-- it the total pruduetiou of fibre to be drawn from the Western Gorge deposits on the basis that this would conform with accepted mining practices and enable the life of the whole mine to be extended to its utmost. She alternative ot mining only the richer ore deposits a: Western Gorge was not acceptable to the company, although, on the basis of evidence given by Mr. C. F. Adams. Superintendent of State Batteries in the Mines lionartment of the Western Australian Government, the i">rupany'j return would show a profit instead of the prp'oui loss if the whole of the output could lie obtained from Wi.-<trrn Gorge. Mr. Adams's evidence indicated that the recovery of fibre from Western Gorge is xpected to yield 1 ton of fibre for every 13 tons f rook mined, whereas at Wictenoom the yield was 1 ton of fibre from 28 tons of rock. (n 1946, at the time when the company made repre sentations for governmental assistant-, its plans were based on a production race of 6,000 tons of fibre per anuum. At a then selling price of 50 per ton f.o.b. Fremantle this was estimated to provide a return on capital of 5 per cent. The price of 50 was assessed in relation to 4K Canadian fibre, the eost of which was 46 per ton at Sydney. The present cost of 4K Canadian fibre is 100 per ton landed in Australia while, on a proposed produc tion schedule of 8,000 tons per annum, Australian Blue Asbestos Ltd. must sell at 110 per ton Fremantle in order to make a reasonable profit. The company claima that this increase in price is not out of place compared with the increases which have taken place in the prices of other forms of huilding materials and that it reflects the additional cost of labour and transport which have taken place since 1946. Company's PxorosAt. Australian Blue Asbestos Ltd., in estimating chat the Wittenoom venture would be profitable on the basis of s production and selling rate of 8,000 tons of fibre a year, has allocated a theoretical market of 4,000 tons for consumption in Australia and 4,000 cons for sale overseas. ) I 017171 in regard to :ne Australian market. ms company oasis. A; ;tie present time Australian slue zrade 5. contends teat, far Witcenoora to continue to exu:. wmeh costs 35 per short ton f.o.b. Fremantle, would James Hardie and Co. ?:y. Ltd. must use at leas: 15 lana .n:o the company's Sydney store at 144, whtie per cent, of Australian blue fibre out of its totai usaze fresh zone amosite lands into the same store at an of asbestos fibre. In the company's own words, "I: average cost of 55 10s. per short ton, Hardie s nrcniv believe that tcey cannot pay more than 50 per ton tor No. 3 blue fibre, then obviously a htea orotectf-'e tariff is needed to make sure they w.i! use ;'::e fibre rac-.er than import. James Hardie A O'1. L: 1- .< : : a larze producer, so lone established :: past ni-;ory 01 rn >ir.o 'irro::' -T'-j fir a.1: :n: - 'sitior.. :::a: :: .ouid afford to con tin'.:" .-j:t>oinc fibre, udivss liicre i> a u:z:i monetary .r.-`V"v? for them to o so." Austra.lan Bine Asbestos Ltd. claim* that, because of the policy of James Hardie and Co. Ptv. Ltd. and the view of that company in regarding Australian biue fibre as being equivalent oniv to South African amosite at 30 per ton. a protection equivalent to 00 per ton of No. 3 zrade Australian blue fibre would be needed. Australian Blue Asbestos Ltd. requests a duty of 40 per cent, ad valorem on all imnorteu fibre (includinz chrysolite), but with complete remission ot the duty if Australian biue fibre is used to the extent of not less than 15 per cent, by weight of the total of ail asbestos fibre contained in asbestos cement manufactures. The company s tciat usbest.es purchases ter use u\ 1054 amount to 26.646 tons. The value of this quantity ' s 1A J. ti"). jf "inch 000 tons, costing 33.000. are obtained :r,,-m the company's mine at Barvuigii, New rh 3V r;rv 71 balance of 20.046 tons, valued at over 2.090.000. Is i.T.r>->rtc'i and a 40 per cent, tariff on '-ho value of that quantuv would cost the company 693.000 ::i serv-u^y 'iam.tze is? business. If. 'iic .:.v alternative, the comnanv :s obliged to use 15 per cent, of Australian biue. i.a.. 3.997 tons in place of an equivalent quantity of fresh zone amosite 'he additional anr.ua: cost would amount to 347.700. The total increase in price to consumers which wouid be necessary to recover that additional cost, without makinz any profit margin, would amount to 421,500 per annum. If Australian blue were reduced to 110 per ton f.o.b. Fremantle, :he additional annual basic raw material cost wouid be 247.000. and the necessary additional cost to the consumer would be 300,380. In response ro suggestions by various witnesses opposing the imposition of a tariff dtuv. but suzgestinu :uc granting of a suosidy in order to keep raw material osts to a minimum, the representatives of Australian 3!ue Asbestos J.r-i. stated that they were net claiming a bounty and. in fact, would consider that a bounty couin be quite tnetfvrive as a means of protection, as it In the view of James Hardie and Co. Pty. Ltd. the chances of securing an overseas market for Australian eroeidolite are negligible unless the producing com pany can get its costs down to the level of those of the South African Cape Asbestos Company. The price of S zrade Case blue dthe equivalent to crade 3 C-S.R. blue) is A.72 10s. per ton f.o.b. Cape Town. would not necessarily have the result of compeliine The principal opposition of James Hardie and Co. James Hardie and Co. Pty. Ltd. to use the local product Pty. Ltd. to the imposition of a tariff on the lines Instead of South African amosite. suggested by the applicant company is based on the The applicant company stated that, on the basis of a .oinprehensive series of experiments which it had conducted, there were no technical reasons why asbestos cement manufacturers could not use tip to 23 per cent, of blue fibre in their mix. In advocating the use of Australian blue in preference to imported fibres, particularly South African amosite, Australian Blue Asbestos Ltd. claims that, as a result of various trials which it has carried out in association with its parent company, Colonial Sugar Refinioz Co. Ltd., into the high additional costs which that proposal, if enforced, would bring about. Increased prices for asbestos cement sheets would result in higher costs in the low bracket building trade and would also tend to make corrugated asbestos cement sheets much less competitive with corrugated galvanized iron for roofing purposes. The additional cost would also make the larzer diameter concrete pressure pipes non-competitive with cast iron pipes. James Hardie and Co. Pty. Ltd. use the Hatschek properties and uses of asbestos fibre, the use of blue type machine in the manufacture of asbestos cement fibre would result in increases in strength to weight ratio and yield, and the conclusion is drawn from these experiments that blue fibre is more than a replacement for cheap amosite and is an effective replacement for 4K chrvsotile. In the company's view it is superior to 4K fibre and therefore worth more per unit. and, apart from the original Hatschek machine imported from Switzerland in 1917, all the company's machinery and plant have been designed by the com pany and built in Australia. As a result of continuous capital expenditure on new and improved equipment with greater mechanization, the eost of manufacture of asbestos cement products since 1948 has increased by V taws or HAnurAcruxxu. only 40 per cent., although the cost of raw materials (asbestos and cement) has increased by almost 100 per ifr. J. S. Proud, consulting minin* enzineer. stated, cent, end the haste wage has also increased bv about Jon behalf of James Hardie and Co. Pty. Ltd., that fresh the same percentaze. As basic raw material costs repre zone amosite of South African origin and Western sent 6.4 per cent, of the company's production coat of its Australian blue asbestos are of simitar reinforcement main lines, it ha* only been bv increased mannfacturine jj value and both, being harsh fibres, are parallel einfficiency that it has been able to develop to its present . usage. Amosite is at present being used to a maximumsize and importance to the community. The proposal of ' extent and Canadian chrysotile to a minimum so thaAtustralian Blue Asbestos Ltd. would, if implemented, any enforced usage of Australian eroeidolite would destroy many of the valuable results achieved in main only replace portion of the amosite at present being taining the asbestos cement industry as a supplier of imported from South Africa. In bis view, blue low.cost building materials. asbestos, occurring in vast deposits both in Australia and Africa occupies only a minor role in world trade and, as chrysotile reserves are adequate for many decades, it would be mane yean before large tonnages are required from Australia or African sources. Wunderlich Ltd. claims that eroeidolite is unsuitable and would not normally be used except in eases where suitable grades of chrysotile and amosite were not available. The companv is reducing its usage of eroeidolite concurrently with its return to the pre-war iff. J. T. Adamson, mauazing director of James mix of chrysotile and amosite. The companv hai been Hardie and Co. Pty. Ltd., said that, as basic raw usinz Fourdrinier machines and baa found that, with materials, fresh zone amosite and Australian blue these machines, it was possible to use a limited prooor* asbestos are equivalent and inter-chanzetble in asbestos tion of Australian blue fibre, but its high price made it* cement products, but are not comparable on a price use economically unjustifiable. C 1828 eX i un :::j: t ;>r-'Rt a*: 16 >t in .......... . ..i V -ir-.d jo per pc.-- top -.::hc:cf!tly itu'i'ac-: ::u r -e:1 it:- i'- I "-idificd st t r-:de:,a3:i? -xi'p:-,.*.. :re cm r*:r. 4atifac:er::v :: '-'Vi t C'lii'i jjisic up ;o .- . ..,i ;->o Ha'-c'hi'k M.i.- -i- ';fiv--:`-v ' 3 ............. . . .. -'"p mnp-iiirx'i Ir. ::ir a'" or Wiinrlomch i.t i . -he -ji '.are :oi If"4 uould be apprnximatciv 7S4.-i0n 40 per ccttt. 'ariff would increase the .-net bv G2G6.1)1'"' L'sage of fibre in 1954 would be about *>.500 tons ami alternative of using 15 per cent, of this tonnaee. i.e . 1.275 tons, under the applicant company's proposal* :mthe compulsory use of Australian blue asbestos would, at present price*. cost Wunderlich Ltd. 1*3.600. Atlie blue fibre could not be used on rhe eomnany's Hntsehck and Moguani machines, it would He necessary to allocate it to rhe existing Fourdriniev machines :n place of amosites and this would not be practicable, as a quantity of 1,275 tons would represent 2*< nor cent, of 'he total fibre used on these machines and would have the etfeet of producing a sheet blue in appearance com pared with rhe standard light crev in -he cutimanv's ther products. The variation m colours would create an impossible situation for the cnmoaiiv m -narketim: his product. Goliath Portland Petnent Co. Ltd. has a much smaller output of asbestos cement products than either of the previous compauies mentioned. This company opposes the proposals of Australian Blue .Asbestos Ltd. on the grourrdt of rhe intolerable financial burden which would be placed on the manufacturer hv the compulsory usage of high cost Australian blue fibre. 0r the alternative penalty rate of tariff which the .applicant company has sought. The only other manufacturer of asbestos cement pro ducts is Asbestos Products Pty. Ltd., a subsidiary of `">!onial Sugar Refining Co. Ltd. The .mnlicaiu como.mv 'fates r Asbestos Products Prr. Ltd, uses m average of 20 per cent, of blue fibre in addition to a 'mall ouantitv of xmosite. Asbestos Product.- Ptv. T.f 1 was still working on some stocks of blue fibre which if had purchased at 170 per ton at a time when Aus- iliflil Blue Asbestos Ltd. had excess stock' of thifibre it Fremantle. The company's total fibre con sumption has never been more than 2.000 tom ,i year and. because o; its location, it is not possible to extend 'he size of the business Asbestos Products Pty. Ltd. .-mild nor. however, contintte to "*e 20 1'or cent, blue fibre at a cost of 170 per ton while competitive ,-om'>anies were able to purchase it at 130 per 'on. t'oT Of fiti'oarxn ,.vn Arsfn.ttt.vx Asnrsros Fidrk. The respective current costa of those types and grades ,.f fibre stated in evidence to ho used in asbestos cement dieet manufacture are shown hereunder:-- I'.mndian Clirysotilt ( inadian Cliry-oul* 3K -niith African AniOiiU \\\-t.'in Au-iraMao Crociitol'ic S(.uiJ> African Cmcidolit^-- r.raOe *. Cape Blue Oracle l'.A.M.. Cape Blue Ttu. CM-i. i-'-i-l cn -4 i:> t.i- t>. e'romaiid. rxuan liiiix v-i.'-i.'- I-.1 r.. h.- if- -.-lUnc inyvirr 100 : is* Si : In :itM.f.u..l..lIirll...v.im..- --tra'i- ' 'n.- 'n.-umarv i ;f ...-r .: A iscr.iii.iri .-roc-.loficc i -i ; r ' t:u- in : i-u. -in t\. 'm- j I'IkiCjii; ty; |. :i-\:urr-- i'-mu the .tauve laniit-i -- (-.`I'-.-iltri-HV. .(r- fi-nvii in-ivu ll-if-r .-- lAU-lf-l f`-n . Ig,.li..ifX >|.lJg-|1 Exunpl* l -- 100 per eeat. 4K i 100 ,! with (Mature of: SO per ocat. tK j! iOH 1' per ceut. blue fixample i-- vt/pereeai. IK V0 per cent, iracwite 4i ^i si it "ith i 43 per cent. 4K 10 per cent, saoub- V >: t* i 3 per cent, blur i. <1. . i i. u n - 134 0 0o " o Hi u i) ii i. 0 o fclt.iuph; J-- :0 per ct-nt. sK U> per cent, JK 40 per cent. *moutc i -ritb : i per cent. 4K 4U per cent. 5K 40 prr ct-nr. niat--itv l.'> m`r ernt. l.ltir ' :a ii -I up > u > 7h ii ) : CONCLUSIONS. During the inquiry it became quite evident to the Hoard that the question of the use by manufacturers of t greater proportion of Vittonoom asbestos had pre viously been die subject of negotiations aud discussions between the principal parties. As the result of anta gonisms which had arisen, there was little evidence ot i willingness to compromise and what, in easier eiruinstances, might have been miuor points of difference. vre contested with a vehemence more appropriate to in |or points. On the que4tion of relative quality, which i.- an important matter, there was a conrtiet in the tech nical evidence submitted by the opposing interests. For In* fun-pose of these eoneiusioiis however, and without -*mmuting the Board to an opinion on a matter which. -f necessary, should be determined by experts, the Board has assumed that manufacturers of asbestos cement uioducts in Australia could use about 4.000 tons per iiiiuim of fTittenoom material without detriment to heir product*. On the basis of tbi* assumption the problem is largely cljccd to mutti-rs uf costs and prices in which cou-idcrarion of the proposed method and measure of instance and of important principles is necessary. Tiie costs of production by the applicant company and consequently the selling price depend upon output. I'hc price of 135 per ton f.o.b. Fremantle being .-barged by the company for grade 3 fibre in November, Uijd. was based on production and sale at the rate of 4..10H tons per annum. With production at 8,000 tons per annum the company claimed chat it would be able '< sell at a price of not less than 110 f.o.b. Fremantle. nit 4,0fl0 tons of this quantity would have to If i-xported. | f I 1 C 1 829 07 9 ;r. toe -caie o: --tiucttor. ar.d axoor: ..'.j r.e .tter.ooiu m.iie. tae .evrcsentative.; : ... .`t.-a.ia:: 3i.;c Asteiios Ltd. said-- :... ... > :*i ::.u p5 i tca in rrsn >V,::enoo:n "is r--r. ;;i ;;VV5 j :v.sli.'n ,cccrr :m - -.j -- jrxei ir.u. 35 ,y :-.ii June '-oi.' >- -ae (verieai rnarxec `.a tasc 'ur production, .acjrr.vj .ie*vy 71.v 'jr>ni rei--sion oinnrratj . i.n.'.c. :..it it mi no: >ic to reiy ..njcy in in exoor: ...^rxet :.:r. .u;:.. vinous* 01 tSe reluctance ol Australian . ..-.'timer- : io >0. Au.f.a.ian 01u t.nre. nc r.ad -.con : .-reed : O'er t:.e .,e.-:cm 1945 Lo iU.M. south African pm* -taction :: erovidoiite fibre rose :';cm 10.990 :011s to *i4.7u0 :ci3 per annum and it i against production of in- magnitucc .niti the lower mining costs in Soutn Atrica :::a: rle applicant company'- estimates of over---eas markets mu: sc lucusurod. Tic company believes that its fibre has properties which ,m>uld make it acceptable on the world market a; a price equivalent to A.M0 per iiiort ton Fremantle ana io jome extent this view supported by the fact that it has negotiated `ales in the vicinity of that price. In the limited market which exists for crocidolite fibre. Australian supplies mild come into competition with similar trades of 'ourh African erocidolitr v:.i,-ii provide the bulk ; :r,e .vmhi viemund for 'Mit tvpe of fibre. Anv m.reuse 1:1 tilt costs ut |iro>iuvlioii of Australian emciiolire. .0 inv appreciable drop m tin- pvici; of r!> couth Aft can nbre would invaiiduto the assumptionmade ov Australian Blue A.-bc-sto- I.id. of a firm mid . uiuinuing overseas market for ils product. The Board considers that the company's assessment of au outlet m the world market for 4.000 short tons of Australian vrocidoiite per annum at an f.o.b. price of A.I10 suffers from a degree of optimism which is neither supported by the history of its earlier marketing experiences nor justified by the likely trend of its future competitive position. As an integral part of its proposals, Australian Blue Asbestos Ltd. requests the imposition of a tariff rate of 40 per cent, ad valorem on all imports of asbestos fibre, such duty to be remitted if the manufacturers use at least 15 per cent, of Australian blue in their total fibre consumption. On the value of imports in 1953, a rate of 40 per cent, would increase the eoat to menufecturers of esbeatoe cement products by an amount conservatively estimated at more then 700,000. and (he applicant company readily admits that thia rate was intended to provide a tariff barrier which would make it uneconomical to manufacturers to absorb the duty on imported asbestos instead of using Aus tralian blue fibre. The effects of these alternatives on the costa of individual manufacturers, as estimated by them, are, as shown above, much in excess of this figure. Quite apart from the questionable principle of com pulsion involved, the proposals ignore, or leave to be inferred, the developments which the Board considers are likely to occur if action were taken on the lines suggested by the company. If recognition were given to the needs of Australian Blue Asbestos Ltd. for :isitence in the form desired by that company, a principle would he accepted and a pattern set from vhich there would be n- escape in the event that the C'-mnany found itself unable to dispose of the estimated export volume of 4.000 tons per annum at a price of SA.U0 per ton: in such circumstances it would be necessary to increase the proportion for the local market beyond the 15 per cent, now proposed as a basis, or raise the cost of fibre to the Australian manu facturers to offset losses incurred in selling at lower ; r:ccs ;r. :..i tverstas niar.sec. :r :o adopt a ? o m n i n a - .. : u-.t . .arses. .: .- significant :.-.at ice . ay ; ;.; ;>,,sa 1 tt-.ciuuoa t-C worn " . . . .'.o j_-c-;.--03 .Latent of which consists of not !e." an vi ay weigh: o: Australian cioci.ioiitc -:- r .-n.-;. u:;-n;c-r percentage as may be gazetted in Miio oy :ne Minister tor Customs ". Tko Hi.pat.y n;-> a.units taat t; wouid be possible to keep ::> tnv puce at l-iue fibre, even tf costs of production :n.l. but :: `rates taat it is prepared to accept a -n: -nargtr. not excess of 10 per ton. As tats ;.u :w an :i.l nil mine production, it wouid be :rr.-.u tii.- t(rnn i.i t.c company's assurance to charge ...gucr prices to :l.c Australian consumer in order to i vxpi rts ;t "-iu puritv prices. It follows, there- .at t.i 'untie the price down to 110 per toil i-':c:ri:iiUiv 'he following conditions are i"ut :. :i.n.-t i,e an export market for about . urns per annum. I !u xpviT u.urKct ivould need to yield about ill1' per tou f.o.b. Fremantle. : -I pii"iuction should not increase. : A .i: :!n-r a(lUal expenditure of 70.000 by tbo mpany. \.:.-ti.i:laii cscrs must take about 4.000 tons hi1 annum at ft price of U0 per ton. : . .v - ! j-:uft::ce tiifit the first three of these coa............. !.< `uinilnd: the fourth rests with ti:e com:'i'. " tin a i i - i -i 11 > t.-- iipnn lulfilmcnt of the first I- an.......... . v\:.-ui to wiiicii tln-sc are not fulfilled pin.- ............ u-i-n* wuiild need to be above 110 ' `. 'i t.M.b I- r.-matiilir to keep (he conlpuny in profita Mr .................... h is vlvar tliac the beat expectation^ -i :In.- voaipany arc that it cart maintain a price as Cm a.s 110 per ton f.o.b. Fremantle for domestic purpose*. In formulating its proposals to ensure the profitable "xplottation of the Vuttenoom asbestos deposits, Aus tralian Blue Asbestos Ltd. has given scant considera tion io rhe effects of its proposed selling price on the three independent manufacturers of asbestos cement products, or on rhe cost to the community in general of the increased prices of those products. On the basis I the substitution of a minimum quantity of 4,000 .on., of the applicant company's crocidolite at a cost. mn-More Sydney, of 113 per ton in place of an equi valent quantity nt South African amosite at 56 per ion. riie additional cost to manufacturers would be 143.000 per annum. In order to ensure the local consumption of rhe minimum quantity of 4,000 tons, the company has proposed that 15 per cent, of the iota! fibre used must be Australian crocidolite. The compulsory use of this proportion at the present con sumption rate of about 30,000 tons of asbestos fibre would represent 4,500 tons and the additional cost to manufacturers wouid be approximately 279,000. The investment by the Colonial Sugar Befining Co. Ltd. in Australian Blue Asbestos Ltd. is stated to be 1.056,000. A further capital expenditure of about 70,000 wouid be required to increase milling capacity to 3.000 tons of fibre per annum. A maximum profit nmririn of 10 per ton would represent a total profit M 130.000 or less than 5 per cent, on the total capital of rhe company, and would have the result of allowing rln- undertaking merely to survive, with little expectsis n of expanding production even if costs could he edueed. To contribute towards this unsatisfactory result manufacturers would be reauired to pay st least 279.000 more for their raw materials and the cost to the consumers of asbestos products would be propor tionately higher. In addition, Wunderlich Ltd. would need to incur the expense of modifying its new Rntschek and Maguani machines to use Australian blue fibre. C1 017174 10 ..5 cc-r.;v s proposals mcoive toe virtual proa;- o; imports locai production is disposed of. y .i.?:- .i.vj.v; toe compulsory use of a proportion o: .tuiiraii.in materia: a: a cost waich -v.ii be at least e cvt :: tut* imported material now ueir.g us=u. unu ;r. ;>rr.e instances they mvon-e >cai u-era r. ... rease-i v\pcr..'.;:u:e m adapting plant. Tue Boav-J :e->-s .:!'. ccnrcr.t toe prouibitivc a:..| compulse:.'- ,i~: lcu croposau. -J:;csricj;s<-n t.r tr.c-ra m.-itt lie ii .iriciice or jtrntegic aspect' which it uti-.ee me jinuit o; the Board's con-itieiauor.s. but >;. -cviiomie grounus tae industry bus no icaturos whum .i.gle it out tor more generous treatment than has beer ihordcd to many others which have been examined -.rom rime to time ana which have onlv wanted the . .-siueu saie .it their production w-.tum Australia a: .o assured margin ot' profit to be certain ot' success. On sruatxia if he.-, in tact, fewer eiainis. i ie.eniaiiv because it does not appear to nave any pro*- -cts ot being aide to supply move than u portion oi V'i;i-al:on requirements--and then only .it cxeo-stw T!.e nntc-nril mined in Australia can be mixed >:rh i 'joadinn. but cuunot entirely di'pluce it. The Board could not tail to bo impressed by rhr fact that tier of asbestos, whose strength and future prospects lie in certainty of -applies of raw materials. :;<i -Aiin would be exoected to weicomo the opportunity i obtaining requirements in Australia, were strongly pposed to the request. Allowing tor the possibility ::iat ,owc of :he hostility stemmed from earlier disru-sion- between the parties concerned, the Board believes that the largest user of asbestos in Austrslia would not re ject the opportunity of an assured supply f portion of its requirements without having given -enous consideration to the long and short-term uihaniaees and disadvantages. iJj iSuaiU : UliUU.g; ;mt Oeell readied Oil economic arciuxs. u:; jucii grounds a conclusion against asaist- *:..c .o :uc piouucf.su n olue asbestos fibre in Aus tralia s inevitable. I: m.av oe, however, that for other '....a .-..-iicmic ic.ijciis, ;;;c Government may desire to -u.-nre me .o,.:i;;uj;;ct; of the venture. Such reasons .,i. f 'r cxanitno. ...c.uc.e anv iikely defence value and -fc maintenance of a settlement m .. ,iI'm iro tiii-apanie of population at ic3 present ,..:.,itv. vin- ut reasons which the Board can :ii ,iu:,,nr to "i.-tify placing on a par- ; -.us;- v-:;cii >r -.t-t-.oiis of the community, i,e.. the i5vero` 'ment mnnuiacturers and users, the excessive irbi-n nt cost implicit in the request for protection, im :i.i otu.-r haivi. assistance by bounty would pro- -:de no guarantee ot the usage of blue asbestos by Aits- .ilinu n.-bC'tO' iwmeut manufacturers, i'-ofccrion (.f t.-idustrr bv the normal method of in i`o>;ng a -'ury on impovtaiions would result in an \.<.<:ve cost burden on users and consumers: pro- -crion by rlic method sought by the company would -'hi involve excess co.'ts and in addition would be .......... .. by repugnant compulsory conditions. \i-i-rauei- by uihsidv would he at a high cost to the mmuniry and to bv effective would also require the "uipuisovv use of locai materials. The Board cou- -i.i.-rs tiu't no mse has been established to justify either b<- high cost of assistance or the use of compulsion. RECOMMENDATION. Die Tariff Board recommends that no assistance :, granted >< tue production of asbesros fibre n Australia. M. E. McCarthy. Chairman, Tariff Board. 1. A. nt.TjTo.v. Secretary, Tariff Board, Krw. Victoria. B4th March. 1935. 31 0 \PPENDIX a DEPORTATIONS OF ASBESTOS- CRUDE AND FIBRE. 'CiTiwiCAt. fitse *++*--lyCLThtyo Ty'S or Asscstosi. 'Jun?2cn ISntun East Atrica ! .nad* P.!>CdtH& Vrioa of South Africa 'teehoslovalti* Sonet Ruuia l sited States of Aroenca All other Countries Total < At ** tUi.WJ 3i,+; 39.130 1,100 1.0+3 1+5 31 193.0+3 1.1 >.1,908 uS,50S H.07! 1,100 1.413 li Vi7 169,73* Cl 179 93 :07./,09 *2.<59 1.134 33.01+ 338 2* 184.3+7 :a. 1.083 03 109,373 63.930 3.697 36.9+7 386 !SS 303.48+ Statistical Itim 3x1 i --Chrysotii.*. tilft-SI Ail-M. iA 4.1 U'W-M. fc. SK. 19SJ-5+. C-T. fA. United Kinedom Rhotlcw* Union of South Ai'fie.t Franco Coated State* of America All other Countries Other British Countries 1953-64 Claui- . ocAtioa) Foreign Countries 11933-3+ Classification) 1 Tvtl M !`.707 .3.310 . 3.1*3 3,110 . 062.633 101 51+.383 1H3.3I3 11.331 lul.JgU . l.UiiO ; 10.479 11.707 832.436 i 130.263 1 U.iiOl ' i i.u;*a 31.903 *9+ 170,398 i 103,843 . :m"0 m.uit V 1.633 4.83.7 012.437 , ;J.'.17 IS..+OI 9 339.6+1 1,010.686 i TO,336 1 :".3A7 1 *7.117 _7 } 1,188.6+0 136,8+7 31.311 30.103 3.8+3 1.291 +04.417 1.233.804 118.90+ 211.997 13.292 1.902 1.632300 CcMicUy Orltla. Crated Kingdom C<ni*d4 Suattisnd Total .. 'Statistical Itim 3812.--Caociooutt <Blos1. iCSo-M i 1931*39. iMt-M. 1 c*t. (A. j C*t. 20 [ 3.600 | 3.134 | J 5,754 j\ 141 j 6.712 i 17.004 j 23.867 1 2.032 i 2.032 i u. i Cwi. | i 8.867 1 j 9.867 / 8+ | U87 | 1,018 1 .3,289 ) t.\. j J 535 j .i 37.289 | 0.474 | 34.299 1 l 1053- *4. Cwt. ! 1 69) 14.449 1 ! 15.628 | (A. 564 87.061 37.636 Couairr + Orton. Southern Rhode** Union of Sooth Afrie* . United State* of America All othar Counuies ficauoni Total .. Statotical Itm 3313.--Amosit*. 1930-31. I95t-M. Cvt. 2,218 13.637 7,187 3.183 260.448 2.862 347 993 281.084 LA. 10,757 +7.821 29.681 13.399 *10,126 12.169 868 3.699 - 333,519 CvV 1.77+ 13,800 2.176 6,3*6 192.308 . 1.393 218.797 (A. j Cwt. 5,402 | +6.903 6.728 1 +0,020 1 +C3.7C9 } ! j 9.680 1 63 11.66+ 3*518 6,089 211,944 929 ! 372.502 j 234.237 u. *39 *7,103 16.634 *1.941 516.+25 6,103 628.646 I955-1+, Cwt. ' j l.l. | 1 104.360 1! | 1.281 f 251.466 5,899 104.641 j 257,366 0(aIU of importations shown In oflcinl statistics m tbom aboro. Since 19*4-47. relue* shown in official stetiatios bare represented fo.b. values in Australian currency. In garlic? rear* raluec shown wen in sterling and represented f.o.b. raluae pin* 10 percent. Far parpoccc of comparison raloee shown in the abort table for rear* prior to 19 <0--17 hare bees oonrcrtad to the new basis. ft**? khnJw<V>'vi* ' ' * ' 0 12 ..PPEyDIX 3. iL'M-MARY OF CVIDliNCC. a : ;e jfiutsft ti-auercd a: tbr inquiry 11 ,/cn a< -ir.cer -- "vv-vcn or i'HOTXCTiVS Octies. 2.' i-C. i1 L'r-.x:: and il. fv.rg representing Australian AiiCia..an :....e Ao.-stus Lid. ; engaged -.a the minm,- :.a uu.i.ng <! .. --iwui.te or u.ue" a.oesto* it W.ttenoom. -'c-itcrn A-.ii:.i.!.x. t:.c vompsnv s >r.arcs are h:d to tnc \:rnt or T ncr <-o-.it. by Colonial Sugar Refining Co. Ltd. and the 'omsimn? -mres iy Welters Aust.-ai.sn Blue Asbestos F.-rc-p Ltd. i:.u .> L.-j.ici Chrysotfie Asuescos Ltd. .. .\-uc-i;n- uv term anniied to * group oi fibrous .. :s:; sRti.e. Jr aitc Isbcsto*. ,, .<-- :tc. ..r blue SSOeSCOsl . i:i:--sitv. .i<n or grey Xaoestos. '"-eidniiic :;u- :hc highest tsn-iie strength and umosito the J. Tiit company pr<ln<vs ann market* nine crocidolite m inree grades a* loilovvs.-- Price per short ton. ; o.a. Fr. mantle. Grad* t Grad* 2 Grad* 3 ISO ISO !30 Grade 3 i> die most important commercially and represents over 00 per cent, oi tlie output. -I. Australia uses about 31.000 short too* ol asbestos fibre per aonum oi which 21.000 short ton* o: chrysotil* ar* tinported inuu Canada and 9.000 of amoaue Irom South Africa. o A tid e I* -ni.:n*ttcd -flowing technical d.idt m resnecc c,f tensile strenztli. fusion point, specific gravity, he., ol the main type* oi asbestos. 'I. 1 .-<-<;i (.in .I.ei-nf jr.ivuv oi clirysOtilc CMuilolite nnu smosite u given as 2.4. 3.2 and 3.1 respectively, it it the respective wcigiit/volimia ratio m the "a* used'' ttata which is significant. Fur most use* asbestos is "fluffed out" or widowed before use and in thia state, according to an American authority, the density ol crocidolite it approximately one-hall that or chrysotile or aaoaitt. 7. Because of iit particular mineral properties and its fibrous ipinnability asbestos it a raw material (or which, in many svnya. there is no substitute! it will withstand exposure to weather and high temperature* and will resist acid*. "* s. World production of the main types ol asbestos has in creased since 1933 aa will be seen from the following statistic* obtained irom the Bureau oi Mines. United States oi America. PRODUCTION SHORT TON'S. Yw. Total. Cl-rv*ouu. ' Croeldoku. ATOV14. 1933 . 403.000 1 393.900 1 2,500 1 4.000 1943 890,000 - 643.3C0 1 10.000 1 16,700 . 1.100.000 1.037.000 i 11,800 1 30,300 1949 . . 933.000 I 920.700 1 22.300 42.000 1930 1.300,000 1 t,2284C0 1 31.300 42.000 1,300,000 t 1.210.700 i 33,200 34.100 1,300,000 - 1.137,900 | 18.000 64.100 1953 1.400.000 1 1.318,100 l 43.000 38.900 The Muifvu. u! uppiy of the** thro* type* srs-- i-.iry-i.roCguolU*. Aaotiis. Canada Russia South Africa Australia (In small South Africa Bolivia Australia South Afries quantities) 10. Asbestos > classed, wuimercitlly, a* " crude" and "milled"; the former is the miaersl a* band selected in it* native stale and milled asbestos consist* oi all grids* pro duced by mechanical treatment oi asbestos or*. Almost all asbestos imported into and used in Australia it " milled ". 11. Grading i. done according to the length ol fibre and generally long fihred material represent* the highest grade. 12. A graph showing the trend ol world price* ovtr the past filtern years is submitted. Whilst South African price*, influenced be the policy ni numerous small mine*, ar* prone to niuten'liro!.., tiic cnn.sdian industry maintains a stable marketing organization. Price* generally weakened in 19S3 but this trend is not expected to continue. . i. . 4 : ;;an w <; i* *cnen ?. W-sCcf * -.-it the -omnetittvt oosition vt ; ,, dcterinrate a* comonred to - i. vvn:*dcn::ai <ih :-(tc:ei concerning overset* rife Or^A. .va.icsjo* f* -.-'Ci> <':v Lti,. tor vhrvsotnc. :r dC.iOiiU 3-4 !3. A3:::rox;n:a:e ;i5irent urn vs :ur various grade* of fibre \r.te4 " ............. . " G a* :.ilJW4,---- ; r. vn< ;%r sfiorv iT Grid* Canwoivn >.:..*v. ; K Grade Canadian -. - .r.; : - -K Grade C.naiii ,r: u- rv- inv Graue AO- ii.< . net - r v-.i.-nt to ,iTi Grade S C.n- nl -v -. i nient to < Ki Grade P.A.M. C.i...... ........... . vsient t-j i f I Australian blue 1-mr.-. ,.r.-ie .1 equivalent tn 3Tl 'Amoaita Fibre, AW -ir.vit- *Amoaite Fibre. DCA-1) Ornii- *w Stjf. ^.rj, > 1 v X. 160 102 tJ7 r,A i : jj oj .i * ui*d for ccioeni '.6. The company estimates that by incretiing output to 3.000 ton* the price landed Svrtncv or Melbourne would be eA.l 13. IT. The bulk ol Australian importations would be Canadian rhrysotiie grades 4--4l\. and a quantity oi grade* 5. truh .smosite next m terms oi quantity imported. !$. Whilst asbestos deposits occur in New South Wales, Tasmania, south Australis and Western Australia, the only leaily large Australian <l|>otit it that being mined by Aus tralian Slue Asbestos Ltd. in the Hameraley' Range*. 19. Seientinc survey* indicate 'hat the Hameraley Rinse deposit* are extemlingl.v l.ir-;v, cxtvniliiiu over hundreds of square miles of ore-bearing country, with each square mile carrying possibly 300.000 ton* ui acbvxtos. 20. In 1941 the Colonial Sugar Refining Co. Ltd., became interested in Australian a*eto* fibre; being at that time already meauracturers ot rntertor wall boards, it contemplated the manufacture ot exterior wall sheeting. 21. Following lull Governmental investigation approval was granted lor the incorporation ol Australian Blue Asbestos Ltd. on 17 th April. 1943. 22. Existing tease* were taken over and otbtr leases acquired making the total area held 4.833 acres. This* leaaas cover right* in'Ysmpire Gorge, DaleTTWrga and Wittanoom Gorge; st present mining is confined to Wittenoom Gorge. 23. Dry weather roads connect Wittenoom with Roebourne. 200 mile* distant on the north coast oi Western Australis, also with Point Samson, Port Hedland. Marble Bar and with Sieekatharra, a rail head 430 mile* to the south. A modem aerodrome is maintained by the Civil Aviation Department at Wittenoom and a five days per week service to Perth. 700 miles distant, is in operation. 24. Poor accommodation conditions up to the end of 1940 made it difficult to retain employees, sud to improve this posi tion the Commonwesith Government and th* Western Aus tralian Government agreed to join with the company in financing the construction oi the town oi Wittenoom 7 miles Irom the mine; this town is now completely established. 25. At the time the respective governments sgreed to assist the industry, it was estimated that a minimum production ol 0,000 tens per annum would be neecsaary in order to compete with overseas prices. Owing to th* subsequent dispropor tionate rise in Australian cost* the minimum annual produc tion is now estimated to ho 8.000 tout. 20. The company's budget in 1940 j. based on 0 per cent, return un -.apical at a -tiling price (or fibre ol t50 per ton r.o.b. Fremantle. This target oi 30 per tou was related to the then landed price of comparable oversea* fibrt*. namely Canadian Grad* Ifv and .Vo. 3 Grade South African blue. 27. To-dav. 4K Canadian nbre sella for 102 per short ton landed in Australia sod the company now estimate* that at lull production of 8.0110 toss per annum its product must tell at 110 l.o.b. Fremantle in order to realise a reasonable profit. IS. The increase in the company's estimate ol selling price from 30 in 1946 to tllO currently is not out of alignment with the increase xperienced in respect oi other good*, par ticularly building materials. 29. The total tmouut spent by the governments on the town of Wittenoom is approximately 400,000 which provided for housing, hospital, building* (or sarvies* such aa post C 1 333 13 r-* i; ' "e;i <* r*u Am-unt < v.e !> i:-v -a - -u:. 3:1:31 an -.re- il ') jOO. A,-..-.Sun - .- -. L1 t i .-..Mr vex A mjen fierier ground : :::ia: extent a! nas Jot been '4:: srt.l nun-1 ; < ih:.t.-c i.st >i : .- ii ............... .a.;*. sod c.rtsiaes to Vreaiaotie ;;j ,.f -.on !!i-ocnu> v i'i* Mr. it l' unc vi tin: ' An..: .ci mi.-.vii -n ;i;c vJOiiany :s ouy- o;! ;x\. vs.cii :* approximately 9.000 per annum. This tax becomes . fijtcj 'uirni-n 'n t::e company because of the need .1 a iiAiut.irv 'A'ltteiiuuiu Gnr.'u. was expOjvJ and :!i:j new arcs i.reims". in 'm 50 per -cnt. better than the ..Sunil mined iiiihertu 'I AMMuan the vi't is.ill.' IDO per cent. tVenern uuiie r- I'.aK. ji.-.-jfinv. uni rtunomi.'i] to use more thnn 2d j.-r -urge ufv tu 23 per cent. mixture with the Wittenor.u, 11 A' i ;e-uit vt uni-roved mining methods nivrtucli'.m .ii marcKsen and 'viti are steadilv decreasing as loilow -- 'f p-r 1 4i IV, > -::r .ii.* coisidert lurthcr taxation c-jncession- :..u!u -I. a., .wcy. example hy increasing tile present ..iic liliioanco 'ic'luetioo. ). Miles .i i.brc over the three /cere ended 30th June, ''M; wer^-- SHORT TONS. :>w v:nil.|-- tasirslis. . Oaror*. t* S.A. c.'Ul. FreinflllTlr K VeurendedJOth lurte. 1951 1 095 2:;j V til June, iP.'iI t'.'th June. 1932 Vnr ancrt 3u:h f-une. ;?''> .`394 :"th Jem . Iti.v; *. si.' entied -tilth June. i9 i.t i -*56 Ijb ;32 :93 . U13 531 487 : 338 ' 2.3TH 041 '3 069 3.697 Half war enned J!u Detcm I -. r. .3'3--2.220 : n. > ' -tv-1 '-no. oi America i^r the y*.ir ciuuug .u-i equals per annual 4.500 ! 3* *. ,-...^.i ,-c j.uoO ton*. nrrcni ''ale 4.-Ill: ( ( *. i --'.iiietl.n ..r `'timatert ine sroviucti.in .0 4 300 ' ....... lO.Ooil .IS i ............... ivgarding me number or ........Iciycc*. '; ".a-- mu :.c -tituiory conditions of employmeot are -- inert. i.ati iiT w.iii .-ictails of the production boou* paid J.`>. Mining cr.'U at 'A'ittenn.nn compare iamrubly with thr..a ' ::.c *....... .mi ; the main nivlnllilcrnus minds in Auirnijtlimigh ric volume of a-bestos ore treated it relatively tow. Mi. The gulling methods at Wittenoom have been improved considerably since the Initial installation and lurcher extern lions will be necessary to cope with a production of i.OOu tons per annum: the present value of the milling plant i' 1300.000 and a further expenditure of 70,000 -ill be necessary. 37. The qualitv of the fibre mined at Wittenoom is high aad compares favorable with the best bine <t..i;ie Blttei produced in South Africa, which is the only other coiiutrv producin'.' blur nhre of such high quality. 3 \n .ipi r.u-.ii :,| me ,.iles potential made hr the i in> in ::i4i: c-tunated that an output of il.OOO ton. ii-um ('.uld be lisiwcd of at follow*; -- Australia-- Wunderlich Ptv. Ltd. A-i-vsto* Pf..(iii'ts Tty. Ltd. >1 her n-ers c .nciitding nthcr .i-beslo* cement manuiuctUicrei Overseas-- ('niced States of Americatad Europe 2.900 I 000 1.000 2.000 36. Whilst three grades of fibre are produced at present, as 8.000 additional plant is put in. a shorter No. 4 grade and prnbablv a No. 3 will be orodueed. All fibre marketed conforms with *3 The world demand for n-hestos fibre between 1940 nj mid specifications. into ms ;,od but m this ocri'-d nr"duction frum "'ittennoni 39. Practically all fibre sold to Europe is subject to |nr'hiomeni ib.pec'tion and sampling by General Superintendence Ltd.. and the contract specification call for in average fibre was low: m 1933 the pontion wne reversed and the coninsuv ' nblc to sell only 2.950 tons out of a current production .i 4.500 tons. length of .47-in. to .34-in. with a rock, grit and dust content 54. In 1933 a total of 2,034 tone of Grade 3 fibre waa told not exceeding ti per cent, and foreign material not exceeding " the United Sine* uf America (or a total price of 030.000 c 1 per cent.;' as disclosed by General Superintendence Ltd. vlbr.: further orders for 2.000 tona is 1934 have been the average rock, grit and dust content this veer hot been untamed for a price of 3*3,000 dollars. 4.8 per cent. This compare* very favorably with timilar overseae grade*. >3. Correspondence from overset* user* of blue fibre mdi rites that a constant dcraend exist*. According to price. 4ft. A table is submitted allowing the dissection by grades Availability, personal preference, 4c., the proportion used t quantity and value) of production m the period !t July. 1930, to blst December. 1033. nines between 3 per cent, and 30 per cent, of the fibre conten' the product* nude. 41. Detailed financial statement* reletiog to the company's trading for the three year* ending 30th June, 19-'.3, together with a summary of financial result* for the five yean 194S-11 are submitted a* confidential statement*. In'addition an estimate U submitted showing the extra capital colt required ro increase production to-- <n 3,000 tons per annum; i 6) 30.000 tone per annum. 42. The company's inspecting engineer said that to replace the *cr today would cost 1.7 time* their present book value. 4.1. At a ur-Kluction rale <if 8.000 tons per annum the lumpanv lonmders the selling price f.o.b. Fremantle could be redmed to tl 1C^--the aim being to sell 4.000 tana overseas and to ensure that 4,000 tone per annum are used in Australia. 44. The estimated cost of production in the statement* submitted is 102 per too in non Fremantle and this is based i,n the very conservative yield of 1 ton of fibre from everv 50. The cumpany believe* that at a price of 110 per ton f.e.b. Fremantle 4.000 tons of No. 3 Grade blue fibre eould be told pur annum. 57. The mt/jytaoturt of asbestos cement product*, bv four Australian companies, ennatitute* the highest usage of asbestos Mur: >uili t<rudu<ti> iMially consist of 13 per cent, aobetto* nhre *nd 47 |hw cent. Portland cement by weight. .38. A table is submitted showing the quantity of fibre hr types used by these manufacturer* in 1933 together with the ."tirces of such fibre. i9. Rawed on knowledge of oversea* practice and the coni' |,nv't experience at Asbestos Products Pty. Ltd., it is quite -mcticihle to uie blue fibre to the extent of 25 per cent, of the tetnl fibre uaed in the manufacture of asbestos cement products. Australia now use* 30,000 tent per annum uf imported fibre for these products and if only IS per rent, of this were Au. trtlian blue th*r* would be a market for 4 '.3(1 ton* of local fibre. C 1834 0 78 u "J C.v pre-en: practice oi re;uc:ng a i,,. ... j .,. -,:.c >vmi -- litre icd ssiosite i:: asses'ca cement orotiuets. -...< rat* iTM nice spccis ir.-.ivors:- *? yr'.etss .ir.A.ite .-.is no effect 03 vieid :n ..quarc yard, - . :,-> : .< when used to replace &n vqua: v-j.-.s- tv ; -i-c " i.:e :.3f. ov inl:ist -- ov-s : -. - ; v.:j i-n r.ot nice: fr.c strengtn. r.::v t : i - .-v.vi 5? ths research department oi the ' itoti-ii ,:t".-t:.;n :) a:n -.no uc.urn "it : -,e 'y ns# isciusioa oi a percentage o( blue ; r. - <-nTit -j.. ct ir--------- wish toe rim- v.e ill .( -caare vrii : er son tore increases ween btuc nbre is added to --t * r**..o cion a rcoUcement litre lor cae-o t.1 o -va.jcrntvnt :or iK .-rvie c)irv*ot,,v .. T-o.m ....-ritted ,iiou- that the finished oat oer square I'l i -~e-: r ement sheet does not increase wnea up to V for . .'::c .':;'.-c is need in :.;ur uhtt mixture. !.. -:iv ...v, ooeh auvised by Jeu.v- i!..i.i:C i.t i. ' .. ...rjest manufacturer of .xsbcsttva -ement pm " ts : i. that it i not prepared to use Australian .rociuohte at : r::e anything near as high as the world market *r:ce -if :i 10 * : n and t"n>uler< it -iu : nn .mu..... : i.lu :vr v.:i. \v'under t-ch l.cJ used Australian blue nbre until Sep.. i.uei. /-t*. i...; .... .rders have ii-eu ir>. nc-i -invo ;u.,i ... l;t the ;c;r.u:unz two ntaiu consumer--. AbvsW i*..- - :.w . msfiiiiarj 0/ the O.S.IU UV. Ltd., has con- i-iv i-,-i i'i -er cent. blue, but the G-duth tenwu x.. :i use e r-.iitli African blue. L'ulc-s ail four a- .nw- ..-.ua*; a ,,-ualian uiue rtorc. thou t-u-re M-t-iail' 1..11-.VI : n Australia. : t v.:it. 10 ;0 per vent, lutu- hi....... .. "*-1 f . .are .......... .0 vacra cost involved I.ir .srrt ot i,.,?,ioa retoont sheet nr m eetia wri.iil ft i.'-. -r averaged sited cotuae: if Australian blue ,i.io 1. u.si ... roji.ae* impoued blue, Jt ..iy tdl> Pin- t--u u u.or, tiieii ti.e eatra cost would be Id. per -i|iiare yard nr i.ioMuiaie.' id ids. per house. ..S. The basis "f the compeny'a case tor tariff protection is mil if.i- Wittenovim to continue operating James Hardie k 1.,,. i'iv. Ltd., being such a large user of asbestos fibre, mutt nre Australian erocidolite. ii!i. The proposal, therefore. 1a that a duty lie placed on >:i imported fibre but that such duty be remitted in full in the event oi the importer uiiog lu.per cent. Australian blue fibre of ail asbeitoa used. TO. Theoretically a duty of 20 per cent, would be sufficient to afford protection to the extent of 30 per ton. however aa thi< dutr w111.1l only increaae the cost of asbestoe cement be O.iT-. per square yard, the company consider* thttt 1 -vial rlutv ru 1" oer cent, would be necessary: the additional iu:v ol 20" per 'em. ad valorem above the equalling rate of JO per ccot. l-.emi required to force the use of the Australian Blue Asbeitoa product. ft 19 not proposed that the duty be applicable to fibres -liorter in length than those equivalent in length to Canadian grading groups 1 to S- The imposition ol a duty ia to ensure 'hat Australia uses a minimum quantity ol blua fibre. T2. If Australia does sot eoniume at least 4,000 tons of blue fibre oer annuo it will mean an end of the industry at iViitenoom. the failure ol the attempt to populate the north, west, and the loss ol asset* brought into being by governmental and company expenditure. T3. In a letter to the company tha United Kingdom firm of Universal Asbestos Minuleetoring Co. Ltd. stated that they had used Australian Grade 3 Bine fibre in a 74 per cent, mix and found it not inferior to the beet Sooth African Cepe Blue and immeasurably superior to South African anoeite. 74. In reply to atatemente and criticism by Mr. G. ? Mead die following points ere stressed:-- la 1 considering the site of the Hamerstey Range deposit* it i* 0/ little significance that nbre values may decline with the distance from the nearest outcropi (j) che Wittsnoom mill It no more dusty than the large oversees mills; continual efforts art being made to improve working conditioni 1 fci the road subsidy etaaad in July, 1932; id) the company did not charge e profit fee on tha erec tion of house* at Wlttenoom: 2f per cent was added to cover administrative overheads. 73. Mr. C. T. Adams' comments in respect ol the potential profit bound up in the mining oi Kcatern dorse ore erroneously assumed that this area could supply lull production imme diately, that the selling price was higher then it mi, sad that r.c r\;:o runnase .uu.a oe votaioed witoout cost, the road I'rvvgort contract :rom mine to coast is oow o.Jd. per ton ~> .-.rid 301 7.2S. as tmed by Jfr. Adams. ' - Various witnesses stated mat slue nbre was technically -ajti.tabic tor articles suca ns brake sad clutch linings sail - v any 1 u; j-.-s11 test :a;s aiicuity couid be averccme v cy :nw .omission. '' A.tnouj-.i rv;)-'Ceeatatives of a>bettos cement msnuiac- :.;er cave vv-den-e onaosirtz the impositiob of a duty 011 iuc. tauy aad in jrcvious inquiries heed strong advocates - -lotection oa asbestos cement products. * L'.iilciuc nq .ccn gi>cn that Australian Mo. 3 blue fi; c v not -ui-.abie for use in H.itschek vat machines, but tne -a -any onin.un :o, .ad tins is supported by evidence and . ic-t onucntt- .dered. taat on.y minor modifications artuv.ess&rv to enaulc this type oi machine to cope with Mo. 3 .clue blue fibre. f'1 Although Mr. hangster draws attention to the high 'vc- -o whicn the c-nmany's produet rose it is emphasued h.it at all times the spiling price reflected cast and world price A-veis. - j in .laiinz that .Vo. 3 >iuc fibre is merely equivalent :o luia-nc it t.'.ii cr t-'i. lantus Hardie A Co. stress that corn. n.-M-n tv 1.v uw airir.cr ivaniq he tastamount to imposing aa >1 vMicnsv nf .100.000 per annum. The company docs i...t iv 1 with the ...uii.iirisoii of amostte and erocidolite, but - ,n ci jntmd tn..iieii an amount spread over Jamas Hardie's i-'ir ,.i :>.0f)0.i>no Mitiare yards means an increase only nf : 1. ; vr uiiau- yard. I Mr. Adamson has stated that * previous Commonwealth eminent rented financial assistance to the industry, vi.'iioucu -v-iiesipd sfi per ton subsidy was net granted. Miiutcul .1 -- i*t.inic was enen in other w*ys. for example. - . .n-n-iictu.n and the oayment of a Js. ner con freight -2. The ......... my cleniw that Wittenoom was permanently ioi-l.vl <rv h wrul survey of dem*Dd was made; ii"ii1 m "ieivp.-n survey in 1345. prior roatricti were m me mill the fobm Manviile Corporation in the United 'i lies 01 Amcru-a tunable to be fulfilled by the company) and v it h Wunderlich Ltd. It is pointed out aIno that tha total ".rid production oi erocidolite in 1952 wan 43,000 tona v-rc-i. the total quantity imported into the United States -r Amnr.s is only d.COO to 5.500 ton*. S3. The company agrees that the'value of a fibre ie truly nsseiaed by testing asbestos cement product# containing such fibre, however the full advantage of Australian blua ia not Apparent unless adequate preparation ia undertaken. 94. Additional research data concerning testa conducted hy the Goliath Cement Company art aubmitted which further substantiates the claim that tha inclusion of Australian bine fibre increases tensils strength and yield. The relative tensile strength of fibre* can be demonstrated approximately by tbe simple procedure of tugging them apart between the fingers; this method show* up a marked difference between aaoeite md Australian blue. 53. The company does not fear competition from amotite 10 the manufacture ui pressure pipe* and is confident that .-rnctdnlitc ran vnmpete with ehryactiis on a price basis. T.v Rnn H. 1 . Strickland I Minister (or N'orth West, Governmen nf WeMern Australia! -- i. Thu Western Auotrxlian Government desires to stress the economic importance zencrally of the north-west of Aucili.i and narticularly the importance of the asbestos fibre iniliwtrv located therein. Th).` area lx,under) on the .south by the 20tb psrallel of -ouch latitude, the nnrth-weet comtline and the boundary "( North Territory, comprise* 527.000 square mile*, which lontain* a imputation of K.400 person* exclusive of semi-ivilltcd. lull-blood nhnrirines. 1. Town* *long the 2.000 mile eoastal belt contain the m.-ifririn* "I the population which ran be eonvenientJy placed into three nones thus: -- Person- Carnarvon district(extreme south) Kimberley* (extreme north) I'cntral arcs* 2,900 2.700 2,800 4. Althoueb overall the population has decreased from a ri-ure of M.OOO in 1933. the population of the town of Wittenoom. which is situated adjacent to the eabeatoa mines vnd exists by virtue of such mining, bae increased aa follows:-- Perse .a 1930 1941 1933 .178 .............................. 198 ... 800 *- The asbestos industry of Wittenoom spirt from helping tn revive the Korth West haa been instrumental In bringing enrwrd Activity to the town of Roebourse. 200 milan distant, and its seaport. Point Samson. c; Th* economic idvantag* : josn 10 _etiv act.vit.ci P'.nt Samson-- -- experience nie .uowo that tne most suitable fibre mis : :e :s .<[ x.a:iau;*n uirveettie of gruuuigs (K to 5;< coating i.j to s.-.:> per -..in v.i.:.. end fioutu Atman -iiucsit* at iul i This ,ui!i..4i -All the .alxt price oi Australian bint si sijj I.u.o. Fremantle, or with U( t.i.:.. winch ;s grossiy -.\cessive. 13 Because me bulk of output is used in iow-coot housing, Gtaer^i cifgo handled in and 4 ,oa of si>cstos exported . revenue t-ages paid at jetty ?.306 IZ2 1,362 . 334 ; 1.339 1 '..->10 1 3.(5( i 3.094 i i:.r) :.::o . ,..> ti.5-6 13.0-1 0.538 I 12.\")5 .ow-t.-i* cement product inanuiactureri must itcep prices gown v ...i,pete with other mstemli. if the 4U per cent, duty it .:..mvn the extra cost to the company -oull be 2C.o0b, oi ..tcrnativeiy tne use of 15 per cent, of Australian blue--m ouicr to avoid duty--wouid involve an extra cost of 105,500. ;3. It wouid be imoositbl* to comply tully with the proviso requiring 15 per cent.'of all fibre to be Australian blue because Commonwealth and Sue* Governments nave rtcognixed cue quantity uivoivcu could not b* absorbed by the remtimait 'he seed lo populate northern areas o( Amtiaii* *nd save encouraged production of asbestos by giving suotani:ni financial iimuact (or housing, schooia, hospital, r-j-us. freight subsidies and ocher facilities. The Comtuonwciun Government has contributed 303,2U and the Western Aus tralian Government *150,040. 3. Asbestos fibre production in Australia is fur beinw consumption wnich it if expected will become s- cuter: deposits in che N'ortb West are Known to be euoiiuoiis u.;u capable of supplying a portion of Australia's requirements :or many years. f ourdrinier tuacuinet. 14. The company obiecti in the strongest terms to any inter ference with its freedom to purchase asboetoa fibre irom the most favorabie sources. 15. In regard to savings effected by the use of Batachek machines, experience over twelve months indicates that although the capital outlay per machine it approximately 100.000. the annual saving by reason of the letter number of employee* needed to attend the machines over three shifts of the order oi 20,000. This saving is in addition to increased Output. 0. In view oi the large sum of Government moneys spent m promoting the asbestos fibre industry, its potential anu its impact on the economy of the North West, the Western Aus tralian Government consider* that adequate protection should be provided to ensure further expaneioa and continued production. 10. The asbestos cement industry in Australia follow* the -a.rid practice of contracting annually for the purchase of i-bre: the company advises that it is committed for fibre requirements until April/lay, 1955. IT. In reply to a statement by Mr. &. 0. Brown to tbe effect that about 1.000 to 1,500 tons of Cap* blue per annum i;e imported from South Africa at about 120 per ton it is lx Opposition to Psotxctiv* Dunu. pointed out that Wunderlich's contract for South African By A. c. K Songster (representing Wunderlich Ltd.. Baptist-street. Redfern, New South W*lei -- vrocidulitc is only 240 tost and it is understood that James Hardie A Co. Pty. Ltd. are not purchasing South African blue fibre. In view of this it it doubtful whether manufac 1 Tin: company, u hicli operates asbestos cement i.u.u>nvs turers other than Wunderlich Ltd. and James Hardie would three 2'.iu-s. ts opposed to auy Tain! on imported aaiiesios e i-urciinving between 750 and 1.250 tons of south Afnesa ' in' anu i( sss.i-laiive is given to the production *! fibre >n blue fibre, .ui-uun.i sut.li assistance should cot vncail auy ioim t.i .....piii-i<.n I.n manufacturer* of .vcovstos u-ment to u>e it. 3. Approximately 3.IUU persons aic employed l.y the ...... my, ;,,c ini, oi "Inch are valued at t.:,3Sfi.;o4. m :.t, .n.iuufat.;uic -u -.t.i.ding niatcnais in luctai. asbcsiltis -v........ : ni'l ceramics. : in the manuu.ture of asbestos cement products m Aus tralia approximately (.->00.000 worth oi material* are pro-iuced annually; asoestot nbre, nearly ail of wmeb is mipuitoi i< ill* larecat item of coat, representing approximately 10 per cent, by v.i.u* of the total materials. 4. Asbestos cement sheet* are made in n series oi operations, the nnal one oi which it termed a wet machine. Various types of these machine* are available and until recently the company operated machines called the Fourdrinier; theae are now in'the process of being replaced by Hauchck mnclunrs "Inch have a faster rat* of production than the Fourdrinier. 5. Since 1916 the company bed had experience with a Urge :mge oi asbestos ribrea from many source*. In the main nlircii.ee been outained from Canada,'and, up to 1932. wav mig;ncn:ed by Australian fibre from Tsa/nani* and .Veir Smith Wales: after 1922 suppliet of ainotite "ere obtained from >outh Africa to iorm a mixture with 84 per cent, of Canadian .irysotile. -h In the e*rlv years of the laat war when it appeared supplies would be restricted, the company developed a ehrysolife denosic at Baryulgii, in New South Wale*, and in 11X4 is-. Hardie A Co. Pty. Ltd. joined in the project. Subse quently, /**. Hardie & Co. Pty. Ltd. arqiiirod complete ownership of this mia*. T. The condition* of general shortage necessitated the -iirehtj* and use of many grades and qualities of fibre vltu-ii I. ore unsuitable. At that period the compnay wae reluctantly -oinpelled to introduce crectdolite into mixes. Supplies were obtained from South Africa and some procured in Australia. as iuppliee become more plentiful it is the intention to elimiu.ite blue fibre and return to the pre-war mixture of ,-hrysoiilt and amoeitc. 8. Blua fibre irons Western Australia wet first purchased By .1. T. Adameun t representing Jatuut Hardie A Co. Pty. i.td., Asbestos House. Voikurect, Sydney) -- 1. The m.iniitaviurin: imnipitny of James Hardie A Co. Ptv. Ltd., with a full; paid share capital oi 1.000.000 is. together ah two other companies, namely Asbeato* Mines Pty. Ltd. ,.nd .)amc> Hardie A Co. Pty. Ltd., of New Zealand, a subdiaiy of the hoi-iing company of Jama* Hard!* Asbestos Ltd. 2. From )!)&;: to 1017 the company imported asbestos cement for sale jn Australia and subsequent to this period manufac tured *<fcv>io* sheet* in Australia. At present, the company ii*< 2,0-28 employee* and own* land, buildings and plant with ,i hook value of 1,<>48.796. The company use* 96 per cent. <i total funds in the manuiactur* and marketing of asbestos product*. .1. The company i osposod to the imposition of duty on asbestos fibre nod considers that, if assistance is deemed nects- iy. it'should he confined to a bounty paid out of consoli dated revenue, 1. The rouipinv manufacture* a full rang* oi athetto*icii-vut biuldinu material*, presauru pipe* and conduit i-i addition lo brake and trantmwainn lining* and thermal insula tion material*. .'>. The turnover of th* company i* dependent upon the maintenance of ns policy of otfering the highest quality build ing sheets tt the lowest possible coal. Over the past eight ye-.ir* '>2 |i- r cent, of all homes in New South Walt* were of the lower cost asbotui-cement construction; onlv by keeping down the price oi raw material# can asbeato* sheet* continue to compete with all alternative types of building materials. 0. Because the proposal aa put to the Board stipulate* imported asbestos grades 1-5 as coming within the scop* of duty it would bo unreasonable to require duty to be paid on fibre entering th* manufacturing proeeee for instance of friction materials (which technically preclude the use of ..rocidnlitc) and in such circumstance* fibre should bo admitted under by-law free of duty. 7. The following quantities of raw matariala were used by the company in 1944 at 45 per ton e.i.f. Each year the price increased and by 1952 it had reached approximately 179 per ton. 9. In limited proportione Auetralfan blue fibre proved satis m ]fcL 4K*tSasredi. factory on the Fourdrinier machines, but the high price made it uneconomic. The filtration properties of blue fibre are good and production can be maintained when sufficient wellgraded amotite cannot be obtained. Asboetoa fibre--short ton* Cement--long ton* 17.471 90.862 19.127 21.337 23.712 97,479 105,314 130.000 10. Bowever, Australian blue fibre is not suitable for use with the Hataehek machine because of balling up in the vita and aicvee. On the other hand, up to 20 per cent, of suit able amotite can be used. 3. Manufacturing cotta are now too high in Australia com pared with overseas cost* and in th* m*in tin* of *tb**to*cement fitt cheat* the raw materials now emouat to 65 per CiTlcU 16 ;( -.re **--x :-it To impose i lacy r.l ;0 3*' Tta: in -..cc-rtti esaiptfly .;.it ..nrrexae ;>; :y ; . .. s io t.teraaciie, ,i :cr .i-nt. .;re J:c. i .> -ji >>'ern Australian trocicoiitc jc !Ts. io - yir me wntionai cost lOturrcn :n remacing '.ho irvsii 3- _ro.,.,:c r.i-.* -mported at ii5 :?s. ad. wmud te i347.:33 -:... .-..ter t-s.r.j arccuut ot '."ue iaa cash .nocounts -aou:u n ;:at :j ci...cOJ per imium. ii.cn should AUatri.inn s u it ce rc-.u-ca. a suggested uy tnc ippii.ant to j;;o yr c. : j o. Fremantle the equivalent amount of ahuitmnal ci-s; > me consumer ivouid be 300.330. ' a .acie increase in raw materials p-st itiouiu n--t i- :,i.--cu -n to :h low-cost home oui.der nor '-"md t 5e me oy tr.e co.T.oany. ifi !l .t-sieuncc -. to :e granteu it should o nv way -intyi n-*vr. -:o:js the Colonial Sugar Ki-nnery Co an tuuce >" t..- -nn<. or competing mer-ea- a'uh Cam'.snpjtoa u .mcany ire negligible aod the oounty -- v. mem aoiuti '( i permanent charge on the Government, the oruv > Grade Care blue, the equivalent to Grade 3 Australian Mu* :s A.72 tbs. l.o.b. Cape lows. :l. Greater manufacturing aiSciency has enabled the com -.any to confine increased labour cost* per unit >n 40 per ceut. in a period when raw material! and the banc wage both increased 100 per cent. The main users ol asbestos fibre In Australia namely 'imes Hardie 4 Co. ?tv. Ltd. and Wunderlich Lid. were nut -n-uitid htfoi> the ill advised mining -liatiuu -i ft;trenoom was embarked upon and therefore it unreason able to expect that the efficient achievements n( asbestos ccme-ii n.siniiacturers should be penalised to bolster up i* c.ireic" expenditure oi approximately 3,000,000. 13 The technical progreaa ot the company has nut lagged bcomd leading oversea* manufacturers. in fact xrt agreement :s m existence '*itb Johns Manville oi the United Statea oi America and Turner and Kewali of the United Kingdom lor the free interchange of technical 'know-how ' n asbestoswment manuiacture. 14. Consumption of asbestos-ccmcDt produois in Australia i auks in fourth place in total world consumption and first m the world on a per capita baaii, 15. Fibres used in the asbestos-cement industry can >*.divided, at ro type and source, into two general categories, via.: -- iai (61 Soft greasy slow-filtering fibre--Canadian chryaotih-. Harsh spindly iaat filtering fibre--Crocidolite. amo- site- meat South African ebrysotile, Australian ehrysotit*. IS. The efficient running of a modern Hatschek or Maau machine calls for a blend of fast and slow filtering fibres and. since the withdrawal from the market of what_at really a composite grade produced by Turner and N'lwall, other sources of supply were sought. 17. The company hta developed the use of Fresh Zune Amosite as a cast-filtering fibre and use this in conjunction with Canadian ebrysotile. The company, nevertheless, is aware of the advantages which would accrue from a supply of local asbestos fibrs subject to a price parity with overseas sources. 18. In 1930 the company first considered the possibilities of the Western Australian deposits of crocidolite but after investigation refected the development of them ae uneconomic. 19. Wbtn the Colonial Sugar Refining Co. Ltd. announced their entry into the field of asbestos mining and the manuiacture of asbestos-cement products the present chair man of Junes Hardie A Co. Pty- Ltd-, Mr. A. Tbyne Reid, communicated with the chairman of the Colonial Sugar Re fining Co. Ltd. as he felt it imperative to worn the latter company about the potentialities of amosite. Copies of letters exchanged between the two companies are submitted. 20. Jams* Hardie * Co. Pty. Ltd. maintain and repeatedly stressed in the letters referred to above that, in tbs manu facture of aabestoa cement ibeets, crocidolite and amosite arc interchangeable!- because emoaite can be obtained for approxi mately half the soot of ereddolite the company cannot consider titiag Westers Australian crocidolite. 21. In October, 1948, lessee oi deposit* adjaeeot to tVittenoom were offered to Turner and N'twali of England nd also to James Hardie A Co. Pty. Ltd. but these were -eiecttd. 22. It i* understood that at this time the Colonial Sugar Kcfiiiing Co- Ltd. approached the Commonwealth Governn.i.ia :or os. punee but that the request was refused. 2:1. in November, 1952, the Colonial Sugar Refining Co. Ltd. advised the company chat it wooid be accessary to apply for tariff protection unless the two major asbestos <ement r- -uf.-icturers, Wunderlich Ltd. and James Hardie Si Co. Pty. Ltd., could aid the Auitraliao Blue Aabestoa Com pany in marketing Wlttenoom output Specific proposals were:-- (a) formation of a joint selling company: ' :o i ?e -nc ?cil:nv :-r.;c ot asbeens remi-nt nroduri* i . < 2 1 v.- -."MIC IJ' v :i )r-,cr eifft [hr - ii :n.. rr.-Tant-c. it. 7>-t .-virir-nunarv pro:o>l u.rt -i.itui.illy rejcvlvd cd tn .11.i-11c.tt: i ;.ir i-.itv ."..is n-.nut ror th<- prjtccdun of * ;.ini;uevri> ui.v .uminic mu-.isiry ".nici). :n :nc opinion ol Ir.ijing .isvesui> nuuraiMCs m Aueiralia *nii o-erara*. houi<l n.it n.iv* ocvu viArceil. 23. unci hismrv -J '-lie development "i the ................ himabsco u submitted herewith. 4U. In i-rdr i" uid m v-nsuruiL' cuntinuity >( mpplic* i.r tmoaice i.'ie wmpauy h.is acnuircii u small -bareoolrtinv ,-iuiviiivni to i ;,a cent, oi the cnpnxl in Cape Asoestvs C.> i.tJ. 27. Thi; .ui'.-vocuimu: ,>pfct -'l using 'A'vslt-rii Ailstralm.i ni-ic winch can omv be uscu t" replace aioosite in the coni puny .nil tie -ei-n irom the (nlinwinc price hnmn it the to types- -- Alt :3l- I 1019. 13-41 Ibf.l. I3it .-.a. Blur Amnsilr i III 30 ; it ....................... !l- 4" i 13.'. 44 . i I.MJ |7 l 17" 4" 24. M.u,ini:i- Ui.it the ,iv of Austrahnii Idue nbre would -.in- tiiijlnr- ..rv iiniecuratv .u that it is Fresh /vue Aruosit* - Ini li m,.11111 lie ri-piiu.-e<i. 2'.1. ff tin- lii.mil ..[luiilrt consider that it i- ncvc.-sary to even -'"lie 2*i*l "icn norKing it Wiucnrv.ni rhe cn-l vlloulrf vbt Pe loaiivd mi to the workui? man's low rest asbestos-cement home. ui. The i-.inv - niiieiiinv- uie designed in run tiie lbu*.( Auiunte niire. run if a neil rtcimr'l leudth of hlnc nliro of Grade ,1 ,(n;ility emild be supplied Uieaily there would be no '.rehnicAl iliirviillir. in iisinu -"<h a fihrn. In the main I I- -ii| .1 |ll.-'llou of cojt. !]. (n the iiuimiiaeturc ni pressure pipes, which roncarn 2*> per cent, fast filtering fibre, the substitution of this amount of tresh Zone Amosite hy Austrslian blue fibre would result in an exorbitant cost increase with the price nt amosite les- than hall that of Australian blue. 33. Although the usage of fibre in brake and transmission lining* is -mall, the imposition of the duty applied for would price the company's product! out of the market. Fierce com petition is now experienced from the United Kingdom brake linings which enter duty tree except for 10 per cent, primage; this would necessitate in pirn an application for duty on brake linings. A somewhat similar situation would develop in respect of thermal insulation products. 33. Th< record of the asbestos cement industry during the recent war proved its strategic importance, and in the post war period the economic influence exerted is indicated by the fact that for (lie year ending 20th June, 19S3, the flat sheet production was 18.403.040 yards. For three years ending 30th June. 1033, houses sheathed with asbestos cement fiat sheets total more than 25 per cent, of house* built in Australis .mil iie.idy 30 per cent, of thus* built ia New South Wales and Western Australia in that period. .<4. If corniguted asbestos cement sheets had to bear the burden of a cose increase, three sheet* could not coneinu* u> compete with gulvsaixod iron. A similar situation would develop with high pressure water pipe*, ia this regard a letter is submitted from the Minister for Public Works, Hew South Wale*, drawing attention to tha effect a tariff would have on th* cost of water reticulation service*. 3.7. in reply to a statement made by Mr. Brown to the effect that tlie products of Asbestos Products Pty. Ltd. were comi ctitiv* with tin-* i>f other cuinpasim it can be illustrated by frier Ij-.f* iJut 3:1 iwr rent of tli* comparable products are higher in th* care of Aube*to* Product* Pty. Ltd. 30. In addition it is submitted that th* claim mad* by Mr. Ilrown time a-hc*to* cement fiat sheets are complementary in and not competitive with other lining boards manufactured fiv fnlnniat Sugar Refining Co. Ltd. is without foundation. In New >outh Wale* only 38.1 per cent, of all production iinidd be required for external use on homes, based on 130 ,-luare yards external sheathing per house plus 100 square ;. Avtli lor eve linings, gable ends and garages. 37. Nim-e the war. activities in owner-building of low cost homes have increased considerably and for this reason any increase in coat however small ia uf paramount importune*. The company'* business wa* established in the low cost horn* livid .md the i-rtvet of price increases and eooaumar re-action is most critical. C 1 837 Oi 15.1 L? ' T.-.c -,v .'Ir. S-own mi; Australian 3lue : va.y ter.!...- :: i- .-rocuioutc ar.n an.osit* possess tb* i.iccv-arv :n c-ocuci* a -atmactorv uoarit. U r-;.-.::: . .i:i:.r.n- oi ); f.bi'C *J -veil as ............ ra;.., tv :it j,:.-,: ..... %t;,ii -iiviiuct. i.ih.fl ..oi'-.-. -l-vn^tn itcrtM-v? ...:n :.ic <|untitv oi fibre .n ;i:c nix. tuipurttc i n ;:ici v.ii.mai ui.vrnais it :::aau- :.u lures ... The >.i . ir w-u wt'i .-i-mcnl preuuci .i.AniiiAttiiiv. - ' n i,r..e..ui . ..it Ai.crauan siuc wouid .. , ' i .r.os.ay -.re .,-9 mint w.srxcr : a .-.cun................. .....in: tJ.JT^ ,:o w.*.r:er ccr annum. ' \ r .. twa-oni -tit ir. 'ine: !*..,mtc eyeing project untc -aiu> survey. '2 .lAo;:nr r.-:-;> -i.it .;/( .yi.'i n the sur/.icc i; ni ;:.c opviivu :m o . . ........ tu n i vioci.i..i Ac a.i.fcr ,,i .o.-nr.si'i-on w::.i ..it t .1 ii.iu ..m mu j'..tuc. T..o chic: f.iusc : mv.tgrc jurfatc i.. i i. mv ii.yh jiucuu- cravny oi l!ic vripmoole fiores. '.j. Ihi.' meiti?ion v: ...me harsh ub:v .-i :uc nbre oiend out assists r.::ra:;.a ant. ; t ...l.un .unit. ;ocrcacs -.ne density tne rv- i.twMt *>:rid.;ct 4:.u ncncc :ts ctrc-igth. in ' f 7'---:- !>!' /f.irn irm.-.tc- ,iuC: c'lia-viCsbic i.:o mciooliie ...it w.Ui c..V'|U.uv -.ijiutv ;hc nucito.i: ! econio -o.c;v .'re p: :.c- - 11.u .. u\.A.a::gcu 'it.l Turners A-oeiAO? A detailed c nirariM-n j.'tween tnc cmuni cojU oi .muni a L;. i'.i , cbm r-.i :ta the (isncral Manager .v.Firman blue a-uotos. anj the fiouth Airicau products oi i I.-Iin- Ma-'.ic .na.c.tu a:mc:t.y tn.it Australian siue yane ome and m-.-:te rendered dufituil bccinse m :nv ui -,* 'mi-vt -i" -n cue on.l isar,cei wirb Cap* biu* at .aitri- nstance M'.cm r.atne 'nbour ts cnmloycd and rhv Aurtrai.au i.u.u. iiuruun. c.iFtraiiaa mii.c a a Ateniuui rouvr i*, .i cu.tt .le^rec on 43. Aiihnueit :r>a- ".mreiny lias h*ii uxyeneiic* 10 minin* asbestos anti :t me nnlv nianuincturer oi i'beto*-cement ?ro- .Tcchanitation. Thi-rciurc the real compansgii i> the total cost of productinn. met in Western Australia u.. ,:* "ere never ,ought by the id. The deposits in the Kamersfey Ranges, Western Aus uvuiurm-nt *ir: c .uitiioriting m expenditure of 454,000. tralia. are undoubtedly very large and whilst the miniug 44. Mi-Icu.img and ina>cursir >ciucment have been mad* t,y Colonial s.i::nr Henning Co Lt-I. and the consulting engi neer at Ws-ti-noonj mnne-rnin; the Western Australian rocitlolit* deposit'. It !ia. been vrr'.neousiy stated that Aus tralian nmc wnnid-- practices are excellent, the milling process leaves, something to be desired. Thy curt oi production i> understood to bs urouad 135 per tun at Fremantle when j.uOO tons per annum are produced, reducing to ill1) per ton on t.OOU tons per annum; this compares with 56 per ton. landed in Sydney, for Fresh Zone imosii*. I ui take rare <-t the ent.re Australian demand for fibre: k . be a ui.i'.ar =jvcr. rtslsec the w-cuits w .terea mines whirh were omul! worsted out. /' ei'ame Australian nunui.inturcrs in export sheen. 17. The chief competitor of the Auetralian Blue Asbestos Ltd. is the Cape Ane<tn Co. Ltd.; there are other South African competitors including the Transvaal blue asbestos producers who. owing 'o the abundance of chrytotils, may well dump their pruriutti'in on the world markets. i.t Tlis :u* -r n'l-il .liferations te> Taritl Item 1174 td are .... numnahs ami xuiiuiiixirstiwiy unsound. There would be . im-.-fr I i.i t It.:.ill lint -uignt not .ilsvaye no content witu -mving .i 1. ........... .. r.i 1'. per n-nt. blue fibre In all mixes. id. The output of Cape blue anestos in short tons in the UI50-1952 years wa* as follows:-- 1030. in.*.! 13.581 10,141 21.321 ftv I v i'r-urt. ,<-n->Mi:ng mining engineer, i 9 Finlay r...id. Turmmiu ra-- 1. \s c......... (> i'.idim Hardie 4 to. Pty. Ltd. evidence i> iibmiiti.i i-' the purpose "I illustrating the similarity iiseen l-Vc-n Z--n<> juiiaiip ami Western Australian blue a.liestns. I.crh lir., rii.rj. Imve |'.trUel uw* heing harsh `ihres anil ijeuiir usuil i'.i ruiolorccnivnt- 2. (.impiiisory uw> oi Australian hlue ivnuld result in the -ipIniTiticut .imrsMtc and not (an.-tdian asbestos, la fact t M-.ulil Incan the sunstitution ol a rasv material enstins noly t'.il ner t'-n m:.> i.ictory "iv one ousting 143 per tnn. Production in 1934 u planned for 39.000 tons -hould demand require it. !9. Of the total output vi Cape Asbestos Ltd., 34 per cent, is of grade S ranging from i-nt. to {-in. in length and priced in 1953 at iS.A.53 per ion f.o.b. Ca|>ctown. In" April, 1953, the i-o>t of production ua> given it Sai.48 per tun and the rate of production under 20.000 tons per year. 20. The demand lor blue asbestos in the general asbestos and insulation industries is unlikely to exceed 1.500 tons per innmu tor mine vrars: the chief m irk.-t mr -lu-rirr gradeof blue is in the asbestos cement. Ai.v In in: it- to the i.ilut- oi a fthre most rr. ti/i--r> the 21. The Cap* A'bestos Co. Lid. plans a stop up in production < alulity oi the method oi valuation and the application of this to 30.000 tons pvr yrnr. Notwithstanding, jnnie of the bars!) i-iiuiiion to the uses in which the fibre in put. ihryjotile mined m'Quebec ha* been xnb.titiitud for blue fibre 4. The method of testing the value of respective fibres used iv .fann-t Hardie A: Co. I'tv. Ltd. c.mits oi m.iking ann eotnparins the dexnrnl jtreoeths of a series of sheets with thoae in asbestos cement pipe* and the chrysotile fibre from the new Munro mine in Ontario could be a serious competitor (o .-rocidolile. 4 ..I ,i |.itrailel o-ncs ui sheets uinde in the same operation 22. lo the light uf thu advantages cn|oyvd he fane blue ironi a fibre oi known iierfornianee. This ineihod is similar the claim that a ready dollar market exists for Australian I., that used iiv overseas manufacturer*. blue is open to question. .: fn Ao-tiiiiiii the two iiiU'im of iiianufsctiirn in use are 23. Transvaal him- arlu-rtm i' a -ml nhrc ...... lacks high (Sr (f.'it'elu-k iiiuf the r.iurifriiiii-r. i.ones (l.irjie A Co. Tct. a-naifr strength: >(> Wirci cffr-ri npnu Au.lca/Ian l.inc uuiiid Ikj # i.td. use the forim-r unit Asdx-sUi* I'riajucts 1'ty. Ltd. use in the low quality market. the latter y'tcoi; Wnudcrlieh Ltd. art in the process of 24. A multiplicity of grades of nmiuitc* is produced in changing over fr.'m Fonrdrinier msehinea to HatKhek. South Africa and the prices in 1933, as shown in the accom ii. The main feature* of the Hataehek maehine arc illiiFtmuil panying schedule, range from 2? to 45. Eolith African l.y the diagram* subaitUd. currency f.o.b. Durban.' i'resent production ia approximately 7. The mamriaeturinf process can be divided into tbrev iH.iKJfl ton and 75.000 tons per year arc planned. separate part*, via.-- 25. It* chief application i* in the Jc Mold <.i :iiulation (at ih* formation ni the raixtur* of raw materials, ia.. a ilurrr nr treated asbestos lihre and cement sue- landed in water; 16) the removal of ex***a water by suction and pressure at the size ruller: lei th building up of the product by successive layer* although is the post-war shortage considerable quantities were used in asbestos cement. Whilst the -oil brown leached varieties were disappointing, experiments by James Hardis A Co. Pty. Ltd. with Fresh Zone amosite brought about a complete reassessment of its potential vain* for us* in asbestos cement. or. tlir size roller ur by further processing of the 26. Tb# Fresh Zone material dost all that blu* asbestos newly mad* material. dost ia asbestos cement manufacture at about bait the cost of 5. The asbetto* fibre being the reinforcing agent plays a Australian blue, and because of it* light color products a mors vital part, the whole process depending upon the unique attractive sheet. property of affinity of asbestos for cement. 27. Th* technical specifications of what the United Stats* 9. The manufacturer must make a thorough study of the available fibrei and in turn choose those types possessing the nccessarv characteristics to satiety the requirements of the of America regarded as strategic materiel* ia 1944 It set out in detail in accompanying annexur**; th* grades instanced are Cap* standard grsdss. particular manufacturing proeesa. The soundness of the eco 28. It is sesn from details of world production of asbestos nomic and technical decisions involved can have a marked fibre, submitted, that nvor 90 per cent, of demand is fnr vlfcct upon the cost and quality of the finished product. chrysotile. C 1838 0 13 29. a-ocuoj bbrs ur.i mined .n Australia _>se;ri:;y World War I. by Wunderlich Ltd. and James Birdie s Co. Tty Lid.. but theis operations ceased in 132; because tbey became .neoQomc. Miniog operations were resumed oy " u:;dert;cn Ltd- :n .M2 at Garyylgil, Xew South Wales. jnd ;n ;jn Lin.ea Hnr::a- x C>. pty. Ltd- ;omeu in me pioject. pro luction list year "is b-io tons. 23. When Zurcnean factories were cut off from South African anu C-i-iJ.*a supplies aurm- too :tmn '"! Ja.-m-"a:d:e i. >_. ?:v. Ltd. ou.lt up suppiic, to overcome t..e ..-.evitioie -'.at-.'ur .-nonage period. World %uu|-ie> > izam p.enttiul. 21. As :ar Hi* Australian position is concerned -,n. experience >hu..- that maintenance < i Inca. isocuo -me is unwarranted if it rannot be operated at current asbestos prices. The expectancy oi iiie of the Known reserves ot asoestus '.i`ide A-'-trnlia >cu at an increased r.ue of tunouct.on range betiveea 30 and 130 years supply. 33. The tendency of some manufacturer* to explore the posstbilitv of using iow gradings of ebryiotile in asbestos cement products could eventually result in the retreatmeat of large dumns ui this tine in Africa and Canada: the scale* are weighted against the wide use of blue asbestos for many years to* come. 34. After years of research work James Hardie & Co. Pty. Ltd. can reiisouabiv claim to have investigated the asbestos teiO'ireee "1 Australia! only one small producer of chrysotile emerged trom -ir-e investigations with a mine that is .cononiicailv ioiinrt. J.t An.'os.te ...... Wuv asbestos, both being harsh fibre-. .ire sfttere-ianscan.e ami my emoreed usage oi Australian due asuesios win mere.y replace poitiou ot the amosite from South Africa. 30. In contradicat.on to Mr. Brown's contention, the buik of the libre wnen mened up has no connexion with the specuic gravity oi the fibre. 37. Ciiitraiv ; what Mr. Brown has stated, there is 'i.nternatiorai standard method of grading isoestos. The method even ml in Canada i* really applicable only to chrysotile produced at Thcti-id. ifuebcc. 30. Additional tv-lmicai data are submitted to -ubstuniiatifhe claim interchangeability between Fresh Zone amosite and croculolue. 39. James Hardie i Co- Ply- Ltd. believes a stable market .anuot be found for Australian 3 grade cromrfofitc at slid per ton t.o.b. Fremantle. By E. Si-inan i representing British Belting and Asbesto. Ltd.. Clc-kheaton. Vorkshire, England) -- f. The company. winch ie in (he process oi establishing a r'.ufoi'v m lUllarat. Victoria, manufactures asbestos textiles, packings, jointings and brake and clutch finings. 2. Research iia been conducted into the possibility of using erocidolice crude at an adulterant to basic chrysotile in brake and clutch linings. Whilst this is feasible on the soiter woes oi "otcii linings, it can only be regarded as an expedient, l. The disabilities of croeidolite are-- ioi its harsh o.ringy nature resiita that consolidation nc?e**arv to produce a dense hard wearing product: b > it i- more abrasive than chrysotile and can cause -coring of the brake drume: , c grade for grade it is more expensive than chrysotile. 4. it is requested that all asbestos fibres remain free of duty or alternatively any tariff imposed be limited to importations oi croeidolite fibres. Bv \V. S. Jeffrey 1 representing Australian Asbsstoa Pty. Ltd.', 54 Mtcks rond. Marrtekvills. Xew South Wales)-- I. At a nunuiscturer of aabsatoe ropa lagging, the compa nv itronelv urtre that the type of fibre used, namely white asbestos grade 4K be admitted free of duty should the Board recommend protection for asbestos. i. Experiments have bees conducted with blue asbestos but it ha* been found impossible to iih this type with the company's existing plant. By X. C. Webster \ representing Bell's Asbestos A Engi neering (Australia) Ltd.. 213 Waverley-road, East Malvern. Victoria! -- (. The company manufacture* a wide range of asbestos pro ducts. particularly packing and insulating materials and asbestos rope and at the majority of these materials require 100 per cent, imported auieiit* fibre any alteration m the existing tariff Is opposed. Experience has shown that croei dolite has neither the thermal nor physical characteristics desired. 2. Tl, cviuoaoy > ..roducts ate Used by Stete instrument!" . -:ia ::.c Uoya, Australian Xavv. .'l :j significant that 3i iti.il Auiiiuaity f:o>v -pecuy 100 i-r cvnt. amo-itc for -v -n temperature wiitr and steam pipe insulation. :. A statement prepareu by the company's technical advr. Mr. i-'rc-Jertck L-.ir.aon. supporting tiic objection to the miiusitiuii vf > -ar-. is s_..micd. If. A SV-i-.-.-i 11ci.rt'xcounx' vol.oth J'villand Cement ec* *ho ev.iu-ativ "i-iiva to tetoru an i.u.c-etion tu the UlipOsr 'll III - ....tv --U .::I||>'UCU .1'W.lllll i.ulv. -I ..ut naU'VIy t. -u in0[ui-m that a minimum oi 15 per cent, of til fibre ucu ill be .V.-stcrn Aii-iiiiua cioculolite. 2. i"'tc ........ i nun.-cu.m an vcononnv :.nc. in the fnanu ..vturc ui asbestos meet- couth African uiue is now useu . tfij per tun. and wIhEs; ttuo; me ti.-cliuii.'ui ..s|.evt fins Cuiuu teuiaced by Western Australian blue the cost would be . imiibitiic at t)30 per ton f.o.b. Frcmaatle or iUO at factory. M-.cn at the present price the South African blue is con birred too expensive. 1. The company consider* chat the proposals before the Bonrd would constitute en intolerable financial burden and ,ti ua'lue restriction on its efforts to provide a satisfactory vtirlc at a minimum cost. Any assistance afforded the ''.'-tern Australian asbestos industry should, it is felt, be -need over the whole community by iom form of bounty iv-nent. Hv R. L. Lawn* (representing Ellis and Clark Ltd., W'-Mide. South Australia) -- f. The comptnr, which manufactures electrics) insulation -..-.L-ts. opposes the introduction oi * 40 per cent, tariff mi --.niirted asbestos fibre. 2. As the result oi experiments carried out with different pcs of fibre, only Canadian chrysotile is now used in the .'iiui*uuring processes, r.v R. W. Everett 'rc-rcscnting Kando* Cemcot Co. Ltd.. V-'ksfiirc House. 14 joring-itreec, Sydnev. .S'ew South "`lie* i -- f n a letter addressed to the Board. Mr. Alec L. Bell. Joint ' -iieriu Manu-Jer ni i\.ino., Ucmeiit Co. Lul. draws attention *.!:e -t.-n-.n* i-rfrc-t* the imposition of a duty on asbestos : wiii ime mi ti.r -.lie oi asbestos cement sheets tnd in turn on the i-ompany'* -ales of cement. Ovum Evuuics. !!v 1. C. II. Croll (Senior Mineral Economist, Bureau oi Mmeral Resources. 4S5 Bourko-strest, Melbourne) -- l. A-bescos ie the commercial term applied to tbs two broad groupings of non-melailic minerals known as aerpenlins and ituphiboJs asbestos. Tire most vafuabfe variety of serpentine it chrysotile or "hat is commonly known as white asbestos: tbe group known - .niifiliiliole comprises actinolite. amosite, anuophyUite. - nicidolitc. tremoiitc. Of this latter grouping it is croeidolite whirh. by reason oi very large deposits in Western Australia, is oi considerable importance in Chie inquiry. 3. The natural characteristics of the various types of ssLh-kU'x fibre dictate the uses to which they can be put. Whilst such uses arc numerous and diverse they may be ir-iopcu ax ioUnin: -- la) long fibre--suitable for spinning and therefore weav ing into fireprooi clothing; brake linings, gasket*. Ac.: (M medium length fibre--used mainly in asbestos cereeut products: t<) short fibre--for us* in floor tile*, paints, lubricant*. 4. The principal characteristic* of commercial varietie* of i-bc-vtoe arc shown in the accompanying table, which however i-.u-t he r.-ssrded i* indiciiting a general average, from which divergence may be expected. It must b# emphasiied Hut no two ** topic-- irom separate localities will have lent i ..il pro|>crtic*. It is difficult tn correlate grad* designations used m - h i-.us (.outlines. Uierc being no intsmatfonal standard method ni grading aabestoe. u. The only national system of grading is that adopted by 'he <fucbcc Asbestos Minins Aaaoeiation for Canadian milled .-lirysntile ashesto*. The grading method adopted ia on* of progressive sieving by controlled agitation through a aeries nf lour boxes of differing screen opening*. Starting with a common weight of fibre tbe proportion* of *uch weight remain ing io each box after the required operating time ia expreaaed as relative proportion*. 7. Each grade of Canadian milled fibre is essentially a blend ,[ :i)uTs of different lengths, wherena in most other countrircji Ii grada consist* of fibres of s particular length or within a short length range. j 4 017 jr'cm-e, '.vctmit u e : vi*ot: i' r.cxsawty Acltl fvisURCt "pmn.VKur-. '(tier enrrcncv -A. `I2.4b3 '01.038 2 A. ab3.3U *27,037 -.A. >b0,830 443.834 etmcd name >( -.,eUl I'eCeC v* i-i eitl.el m >mtIi in. m .11 uiegiuar iiuaiCi; eiiis un vuiisist m .4U4.4U3 t.:.'0,39S 1.340.6*3 t *h * Abie*. that j* " tth tiie luti'a c~ iiinnin*.: r.m. j'uale- ..I parallel with 'In: .nU .1 tiic '<-i<i iii.i.i ....? .uni tn .v pcductioil in iru .in iease .ii tin; qnjiitite ,iml value .iTv.liUU a .mimx L.O.S ib. ... oil Used 'nnUin i.' ... *n '. ,:lvt ..i. iimiNl(. oil tnmiLnll.ii :.| .Mm* (lulls . -- Urn :l ................... . tn i.ut.im lull intonnutii.u itiiintiuii rn* ti pes ami grades nt libre V, alljdlt 'until All l 'UUtnel'n It leatesl.l s,v .121 l.lI <lt ic.alv . ....Ivan ;j.i 3.1 l.S 1.3 1.0 1 i.ysotiie. 1 .uy.otile. v .ucidolite. Amosite AuthuphyllitC. (..iry*otile. uhiesOtlle amt Alllphlboie. Chrysotile. Chrjsotil*. Uirysottle. AutUophyllite. yhrysotilc. Ampuiuole. (.hrysotilr. Croctdolite. Anihoptiytliie. Amjimbolt. Various. ... idullte. i int ye<n> tint?-- lfJ4b L '>47 .'>48 'ill "J30 1051 m.'i2 ! Ii.'i.i nt piudiiel?. nnt nt .in estimated cot.il t'.n- .ti .'j.'i' .mil .11.`.00 totu m 1033 it rtiotia .n.-rn^e one at approximately 00 io per wnt. .mio<ite and 10 per toot. in* immediate [ntisjicot of a down* iis.(iii|.(i..ii tale. vhivli hn. ix)iiinded in Tout. 21.081 10.700 17,340 13.003 34.480 . 31,090 34.389 33.840 - atlcin "V vvQalUttpU'nv l* l|.A 1.v>v V*. pint Wvaw-e rnre >: :ost-w*r stock.pilintf; li..mi.r it is ricar * . .......... (in ullll Italy, niit.ii vnji.v Inn pel vrut. (.Kijt -eltsiirticicncy iC'peviivelv. vun-uminy conn- 'Im main Ini Ik of their requirement.- 2t. n? . jin'iil in mim*I? * jv.hu :([nnus i;n*teiv 03 t-v'i >':in. -n tin- a-be-tos in Australia whilst lioiler la;giog. I'.iiKitnr. 'l.-'i tile- i.i.kntv h.ittery boxc*. it'., iccount for In- inti....... 22. The mi!i ..a.? 11a11iicIv quotcil [nr \risti-ili.in a-iitr-tos ............ >... v:., limn smt'iKH -iU(2 ^losc iitui i.v' tin* uck V'''|>an'rn mu*....... .. .iililn <>i .I'Hlihlc :n riuihir.' "C tci :'*'ciiinlite :n'wliicrcl at Witlenoimi and *iuec 1043 .lie a. t'.ib'U - -- 1 Mfr ......... i r ;l+ i , ,;.',i ....... ctl -li'n'mc the price** nn'c* <r .u>pro\i 'immi .1 uradc-: these prices are at the level m ifMMlV. I!I4' fulust. 1948 __ __ ii `IO 1 7*, ................. laid ,..a rail ill the enuntre a min. f'ine. I`J4U __ t'MI A'l'euiher, l'j4f> UM k irSMDCM'Ma -niuiietion "i aeiiestcn in Australia is ....... t' dl/'Mir i utecn ueposiu vieldinj tram a few ton* te fU" \>t-r .mi \'o dciK>*iu of rommert'iai imoiirtaiicc ait been (.v r i'i in ^ncvn^Und. V ivtorin or fn* N'ortli^m / .^nuoiy. .4. In .9Aufit.iliK produced U.U38 short tun* u( a 1iCs liis f i'hniiirs*, iOJi ' mtiarv. l''S2 lie, IU33 :>.riili,r. I'j,-.;: *r,\t IOO 200 :o J04I lull 130 All the auuw' |)ik iav f.."J>. 1'icmutitlc. 170 113 23. The ii.'ilnwinn ainuoximute e.i-f. i c. tests per t.iti .if toilO'V*: -- iiu[ioited nine have necn supplied to the Bureau oi .Mineral .\uuuliu \.-U This-. t roetdolitv Cbrysotile Chrynotile iiusutity. 4.230 1,173 O.lii Hesourcus by /nine* Hardic and O'- I'tr. Ltd., shown in tA. per slievt toil: -- (us nii'j. i*.. i'i.m ie.i:. j lii.tniliHii i.i.nin..tnnl ha? iirnftrewively increased since '4S when 1.447 ton. were mined. K.xeept tor small quantities u i ii.iiilolite mined in smitli Australia, pnvluetion in elm .i'.iia fp.t4.vi ha. in-en confined to Western Australia .mil V. n south Wale. 'Hie pemiAynl Western Australian delmsit* ace ia the Sion smitli "i I'ort HedJand and south-west of Marble Bar. iiiu i.| i lr ('i.iilc is produced at N'nneerrv .md scam, ot mi r-ro.. niire .-i..i-irtolitc occur for considerable distance* in he lovues ni trie Uamcralev Raines, situated npproximatcly ;'(> i.iiv i.e ......(I trum Hi<bonrne. These deposits of blue .-i.e'to- "vie ui-t mined m 1037. but largeenlc p|>eration* .(.re not sMire-l .iiiril 1043 iehen area* were leased to the . .....ut ..tins. Insiriihan Blue A.'U'stns I.td.: 'Host of ' ie I.uniue i* :i..n' .fane in i he \\ itten.M.m *.*ji and it. ilnit-.i 'A'.x.'i ............ye. flhodcsinn ( hre...fih- . i.radcit 'irailc4 ' uiadjtui C]ir( 9"tili CmtlebK .s.aitli Atriemi Ainnsiic i>7 734 114 12o-143i 13-3 I tUH i7 33 " 38-00 ' 108 | 38 Jit ml 73$: ss til 14 4,4 . An t00 1 too 72 | 33 fly 1. I*\ lil.ims >ti|s:i inteiuleiii "t 4tatc llattcnes. Mines ............. Western Aiistvaliai -- I. I'l'.mi a mildest l.eymninq m 1030, when tilire wj> mined 'V ill,, .ifiijife ' vtu liiui mellio.1, the Witteiionui a?bc.tn* minins f" cet In- ,h*\elofi.-d run.iiierahlv' tn a stacc where iip*to-date :i.cclirid? and (-(111ir*(11111f are recmerin*' Ihe fibre a* eOicietltlv * 'An- nresent cijutal will allow. C 1840 0171&4 \ i ' - - ; ..biu i.'.iucmi ;:om : aim 1 Iba, 31 *.i.:)uy .ustaineu. *i.-; Higher ci.i.itv u *u-vn Haige ore - .tiliatcu that ................. -ue i.c-ii -t-t 0! -2-J3.2W. 1. u.-iatn ur empiotcu vf tJiere are ib; . .in., m .i usiiU|m. uii- u-tlcct* tuc <url. - - 'C--.li ........... soi-k And :1111c. -. *- -.;-iit. .n--ng sound line.-*, .ml with -.on* 1 ' i.'iiiug -ccscva, conjunction ujth 1 .:n -i -. u- " .virn iiurge deposit*. "oitu- -i \u-tr>lin'. i.'i.-.tn. 7 ?7i,-sc ;>i:uii:>lci >>tli imornvtiinm --nt - itir>>< to no" used a:nc fibre :Ii'.r: .\"c.-I"'i! ..I-;,-. aeia he grade nt tilire `hows 11I> to i>0 Mr mm. iinprnii-pp-nt --n the 'CittCRnoni -;brc. ft - ,..... siderittl that 'in' W.-.n-i-n i;0rg.- mrCCC .`im'rrij he - "i"'!Ur '.'ci-i'i-apei/ though ......... u;|ar wilt Ins necessary. v Probable lo-ervc' at the present tVittvuiH.ui man- ur t..-. Oars' suni'lv and. as indicated he outernn .mil raw inlliug a' ;'`**tern some ten rears' supply. )'o..ibie in f! I'oascs can mm- he uiiessed at but :n ' "sr rf.ii induction they appear to lie unlimited. a Minin; cost* arc hiis. rr tun and with .n rv .,-i , t onerations. .1, envisaged tor We-tern ..... . >li- tfi-o niiid be reduced to perhaps ,10s. id. The efficiency of the milling doc n..t ii.pcii t- h.- .,. ninncli as with minin'.-. All inherent diiTirnltv the toirrii ".tture o| the rock and the abrasive prouei-t m-s tiu-irot *r . "interact this c\eesirc wear, picking um ot 'he i-ci; t.v anti i* done by tarelve men per shift. 11. In the absence 01 precedent, crooulnlite librc -unration rom hard rack lias been developed h-calli- with 1 hr. result 'ht it is to some extent a matter of trial and error 12. In general the process aims sc accentuating the idivsirni uonerties of the vsluclett rock and the "anted tilire: tluformer is crushed to a granular product so ,1, to ossa through 'r over the screens to which the or* is fed. and the Huffed no . 'Hire is drawn upwards in an sir current. 11 The milling problem is essentially one of hick of informa tion and whilst improvements are constantly being made it would he advantageous to inereaae the grade of mill heads to ensure an improved overall recovery, U. Milling costa arc given as 30s. per ton which include* 2.$s. per ton for jute bag* to contain the fibre. These rotare high but not unduly so in comparison with those of iorge Australian sold and base metal mines. 13. Tlie mine power unit waa redesigned and relocated in '331 and the present coat per unit is 4.8d. which is about > ner cent, higher than the cost for similar installations cated elsewhere; the main reason for this is the cost of diesel fuel at 32 per ton against elsewhere of 2.1. 16. The road transportation of fibre to Point Samson and tlie return loading of stores is undertaken hv two contractors who chare* 7.2d. per ton mil*. In light of comparison with charges mad* for similar service* elsewhere and the capital outlay it is considered the eharg* should not i* more than M. "er ton mile. IT. The chnrge for freight from Point Samson to Fremantle s 37s. <d. per ton; to this must b* added handling costs of 2 per ton and it 10*. per ton at th* respective port*. 18. The total canitel expended to date it 1.7*0.000 plus governmental aealatano* of 450.000 for housing, roads and wster supply. 13. Portion of this high capital expenditure can ho attributed in the need for the company to provid* adequate ameni ties including cinema, hotel, cafe, he.: 1. the fact that onerations were commenced in war time; the need. 1 irtienUriy in the initial stages, to replace obsolete -nine and mil! equipment including the mnnlete renewal of tii* power house. IV. 11 - o........ V.ini-rr-- s.-.yiof) I.I.Ui.uOO `.'tH.iM* i-.-Hi s.iVKl s.iKU) J . 'ur.-. -1; -: -i -1'i-rl i dviH-ndcnt upon Uw - .-io ............. . .mil dip ef Hie illir.- .l-i- ;l............. -s' it.nice .......... now ii.es the |..llai inctUoti. if 1- ' 't -> .-ft. -.ii/ars .ic 2f.fc. centres to supf/orc 1. ;ir, in.--. - :' ............... .. *-*u.t ...........mi* -i eti t-- iiford 'uirstnot. 1 I'?..- tii---. ... ............. ... .ritvl iirtii Mlutc Isbi-slo- ;I> .! r: 11.0.7 .in-.ip .1 t.d v; at Vupvernr coal I ill. -i. ,-n .......... -.mill Iiu.u.tisl ii.r III.: ivem-cry of ore. -mi. .11.nun;, 'll,........Ming nt noiidnlite i-outrasts with ...t c. i-m-iiti .: the tMi filer. Iicctui**. i.t the e\ti,cuii` hardness -..v ........ 1. .ciativi-iv cM'eosi'*e md .it ciu- .11111' C",- flu' ........ . m.jII i.i.ie[::ni.-rv !-. ...nsulcr.iiilc. -. ill.- wt.-nt -it abrasive dust -it 'Viuenoom is a serious .i.lc-n. A-istraliiiii blue A't-csti-e i.td. has installed a number i fail, .1 mm ...iU-itors in tin- nidi but i-onititinns .ire sidl mi,tv. 7. AltliiMiuh ill,- b'l'imiioiiwviiltii (ioveruiuvnt n'l'u'vd .1 ,h|mv,; ini .1 l.'i iwr cent- duty i<n iiiifiortod asbestos and a -n,,idv m .1 uvr tnu nn fibre produced, assistance was given : > -.in- industry by the Cnmmnnwenlth and the State Gowre.-ut ie tlie form of-- : - - irsiuht subsidy 01 lUs. |wr ton nn aslieaio* slii;>pe<l from Point Samson to Fremantle and a subsidy of 17,. ncr ton on .\,besto* and goods either .tv bctnvvii Wlttenoom and Point Samson: < i the crcctum -if houses, school, hospital, pose adie.-, it*.. In the township of Wittciioum. !tv If. Adam, .representing 0..minion liidusatcs Ltd.. 1 11 i-tcliur.'li, Xcw Zealand I -- .1 -I,-,to, ,-emrot sliest* i.rmUiecd linrinir test nms on Hatrehek u.aetnnes -liowetl notieeahl* improvements when N'o. .1 grade Australian blue fibre was included in the asbMto* lil.re ,,ii\. improved performance on the machines at varying pevds. the handliog properties of the green sheets and general ilrxibilitv and anpearanc* were noticeable when 2f- iwr e*nt. f Australian blue fibre was used. 1. A le't.-r '11.111 the company dated I'.th lunv. IP.U. sdviwsl .Iiv gcuei'ui Muiiisiger. Colonial Sugar Refining Company, that Vcn- Zealand c-a-iiange regnlationa restricted the porch*** 01 Vii,tra)i:iu blue Hire. Within the sco)ie of these restriction, the company intends to continu* purchasing blu* fibre. Tlie --'mpany's aiamr rcuuirementa of fihr* ar* covered by contract with the Asbestos Corporation of Canada. In tddition a con11 act lia- ),i-n ip ...-ention ,inrc 1348 with the Cape Ahr*to, 1 -.nipnnv. b Vltlioiiuh ..nlv 'u tun, of Vustraiian bin* were used 1 'Me tef* referred to. it i, enn*idr*d that this quantity 1. .iirfieieot to afford coneh-i'*e results. Printed for the GovHtsur.st of the COMStOhweaLTtt by A. 1. Afrritu* at the Government Printing Office. C.mherr.i. C I 841