Document k90mJnYzG9YwO2GJBDQZqQbg0

008140 con PHONOGRAM SBfT 11.45 *.n. 14/9/59. n ft c e y T. HIH1NG EECISTEAR IfeHBLE BAR ATT2BTXCBI JUST BRAWN APPLICATIONS MINERAL CUIUS 112 TO 115 INVLOSIVE BY HANCOCK FBOSPSCUNC COX/ANY ADJACENT OOfi QPKRaTICBS WITTEHOCM STOP A1S0 UNDERSTAND FURTHEB APPLICATIONS SIMILAR MATURE BY SAMS COMPANY ADJOINING 002 JOBE PCS WHICH HEARING WILL TAKE PUCE USER STOP OBJECT TO CEaHTIHG ALL AREAS aSD REQUEST ADJOURNMENT CP BEARING' OF FIRST MENTIONED CLAIM APPLICATIONS TO ENABLE FORMAL OBJECTION TO BE LODGED AND OPPOKTONITY CITES DS TO SOPfQET SAME IN COURT STOP FORMAL OBJECTIONS AIRMAILED TODAY tUOKAS AOSTEA IAN BLUE ASBESTOS LTD *T 008141 4 PAUL CROtfL THOMAS to prove: I reside at 29 Praser Road Applecross Z am in Western Australia for Australia Blue Asbestos Limited. I am authorised by my firm to give evidence in support of its objection to the granting of Mineral Claims 116 to 129 inclusive. A Form of Objection dated 14th Sept - . ir jU^*1 ember 1999 has been lodged herein and reads -- "That the lease in question falls vith ^ KW*~ ------- ^ in the Mineral Reserve of which it was understood this Company had right to <oi J7^. r+*"' investigate and peg any areas suitable for the mining of blue asbestos; Due also to the presence of the reserve it has been the Company's policy oyer the rr past to only peg the leases as required for immediate mining purposes. Further that the lease referred to adjoins our 'g s ^ a?&**/* w-4. existing leases and therefore limits . the extension of our existing mining . operations.". It is important in understanding the . company's objection to briefly have the ! fejju u c^* hncVffrrmnrf. The Colonial Sugar Refining Company Lia ited became interested in blue asbestos e-f>iu-A( deposits in The Blue Asbestos Deposits -y of the Hamersley Ranges during the var in 1942 because of a proposal to join . c vith the L.G. Hancock Asbestos Company* <A 's--- "'* /' 1 S *T ,j*o- y .~o *0^-- ( 00814^ to develop asbestos leases held by that company. At that time Australia had almost no . resources of asbestos fibre After inspecting the deposits and perus ing the reports of the Department of Mines in Western Australia it was dec - ided by C.S.R. that if the Commonwealth Government considered it important to Australia to develop the deposits the n the oompany would endeavour to do this* The interest to the company vas that it was in line with developments in the building materials industry which . . had engaged the company's attention for some time* The Commonwealth Government completely agreed on the importance of the project and it was decided to proceed with plans to develop asbestos deposits at Vitten- oom Gorge* Australian Blue Asbestos Limited was incorporated in April 194? in which the Hancock interests had a lasge share holding* A Temporary Reserve of some 19100 miles was established under the Mining Act* My company has carried on ope atlons on til amm 1 a4 * --' fka ly granted to it under the Mining Act* Many difficulties were encountered in developing the asbestos areas at Vitten oom during war time and progress was . V{ '<*u f'Vfcrjr'Islow. Despite highly skilled mining engineers r / % iiiliiiliiilltiiiii'liiiiiif! Tv f `;K ; i,-. ,/r?-*,4 t.-w * U*.1 Produced In the matter of Asbestos Persona! Injury Cases; Abrams Lead & copied to Richard F. Scruggs. / 0USI43 the technique for mining the particular deposit vas unsatisfactory and progress vas slow. The Hancock Interests were discouraged, and asked C.S.B. to purchase their share holding. At this tine ? C.S.B. also took over fixed assets and claims of v.A.B.A.'* Limited and paid 25,000 cash for the express purpose of enabling a loan made to that company by the V.A. Government to be repaid. At this time ?. assurances were given that there would be no difficult y in the company holding these additional claims provided it could show that it vas doing its best to mine and market . asbestos from other claims held by it. f In 194? a major decision to provide hou?> sing had to be made and after discussion with both State and Commonwealth Govern ments, housing vas provided at Govern - ment expense. The Company provided at its expense, houses for staff, hotel,'theatre, store facilities, barracks for workmen. Despite the provision of housing and the best endeavours of skilled mining men from Australia and abroad and the bringing of mining migrants from Europe, at the company's expense, the project . developed slowly and resulted in lar ge financial loss to the company. This vas caused by difficulties in min - ing and milling the extremely low grade 3. Produced in the matter of Asbestos Personal Injury Cases; Abrams Lead & copied to Richard F. Scruggs. 008144 deposit in bard rock and of tbe absence of a reasonably large market for fibre only low production consequently vas possible* This Company advised tbe V.A*Government of tbe grave difficulties. On every occasion the Company vas induoed to continue to do its best to make tbe venture a success. It became obvious that in view of tbe quite small market available in tbe and world for blue fibre/tbe difficulties . of establishing.the industry that their was no room for more than one company producing and marketing fibre in V*A* Ibis Company asked tbe Government to exempt asbestos areas from pegging und er tbe Mining Act* This it vas said could not be done and a Temporary Beserve of a large band of country in tbe Hammersley fiange area . vas made* This Company has always understood and been informed that no Mineral Claims . could be pegged within tbe Temporary Be serve* This Company has always been informed . that tbe reserve vas created to enable A.B.A* to develop, under difficult cir cumstances, without the fear of another party commencing to mine and market af ter A*B*A* bad carried out tbe diffic ult developmental work* This Company has understood that when extra areas were required these would A A** _?< / J ^^ *' A xj^ ^ ^ fw,v_ vw ^ --<_ lV ^ >d in the matter of js Personal injury Cases, ; Lead & copied to 1 F. Scruggs. 008145 be granted to A.B*A, from the Temporary fieserve and that whilst the reserve ex isted other parties could not peg Miner al Claims* As a consequence, A.B.A. merely con-- tinued over the years to apply for areas as operations extended beyond areas al ready held* So attempt has been made to apply for or hold large areas of country which would otherwise be necessary to obtain long term security for a project the size and cost of the one at Vittenoom. <33-0 x Thus, in 1958 a further X4UU^T acres was applied for and granted to the Company. V These claims are to the Vest in the direction which the main incline is pro ceeding. The Company estimates that its present claims only provide for perhaps 10 years mining allowing for barren and bear areas which have already been encounter ed. This is a very short period in view of the extensive nature of the deposits and "of the scale on which the project been tackled* has Exploration by diamond drilling in the new areas has not yet proceeded far and no exact life can be estimated. The Company** plan of development was to explore the existing Mineral Claims and to peg additional claims in the reserve as a result of the findings of this exploration. This procedure would be utterly frustrated i \ .UK . b Jd tAc (0 v'*- v t*/W/ '|C</W ts. 1* h>v kt ,vv SSKS&- Richard F. Scruggs- 008146 by indiscriminate pegging of claims on the boundaries of our existing workings The apparent intention of such pegging is to restrict our further extension. This company is cmnvineod that the Mines n.pa-fmar'f < eigo a* thq ftpiri^n that claims In the Temporary Reserve. The Company has never been informed to the contrary when, for example* new claims are applied for as in 1958. that sufficient areas must be pegged to cov er all foreseeable future requirements. In 1994 the Tariff Board was asked to foroe the use of blue fibre in Austral- I la by means of a tariff on imported as bestos i .I'-This action was taken to enable produc- i tion to be increased at Vittenoom to give some security to the industry ! and to enable lover costs to be achieved by higher production. The Board refused to recommend such a tariff and although a subsidy for the year ending 50th September 1956 was granted by the Western Australian and Commonwealth Governments this did noth ing towards creating the neoessary mar ket for Australian blue fibre. Both C.S.R. and A.B.A. have by frequent -risifcs abroad endeavoured to build up _the market for blue fibre. Gradually they have managed to gain acceptance for the use of small quant ities of blue fibre in some products . 6. Produced in the matter of Asbestos Personal Injury Cases; Abrams Lead & copied to Richard F. Scruggs. i uuei4> particularly for asbestos ceaent pres sure piping for water reticulation. In 1956 arrangements vere Bade with the Johns-ManriUe Corporation in America - tor it to regularly purchase large quantities of blue fibre on the under standing that our fibre would be sold at prices to then that were ooapetit - ire on the world's market with other fibres. largely due to efforts from this American corporation, through its lic ensees throughout the world, sales . hare been built up in Europe and Japan The attached graph shows that for . the year ended 30th June 1959 the volume . -of sales was 14,242 tons. i for the half year ended 30th June 1959 sales were at the rate of 18,000 tons per annua. { These may drop back to about 14,000 tons per annua rate for this current half year ending 31st December, 1959* Vorld production and sale of asbestos of sll types and grades, ignoring Russian production, is slightly over 1,000,000 tons per annum* The great bulk of this is short white ehrysoltile asbestos fibre which oec - urs in huge deposits in soft serpentine rock, easily mined and cheap to prod - uce. This sells at a low price. This type of asbestos fibre is quite satisfactory for most purposes for which asbestos is used* produced Asbestos 1 Abrams L< Richard F. m of injury Cases; oied to UUti4o Blue crocidolite asbestos, such as is produced at Vittenoom and In South Africa, is a special grade and qual - Sty different chemically white chrysoltile. t0 It is only for quite special purposes* The total market for this general var iety from various sources is about tons per year. This company has gradually managed to get about 14,000-16,000 tons per ann um* The total market for blue fibre is not increasing* It is tending to decrease as major us ers find ways and means of using the more generally available and lover prioed chrysoltile asbestos in place of blue Qroeidolite fibre* Johns-Manvllle Corporation, for exam ple* own large white chrysoltile mines in Canada and have been endeavouring to work out processes to use 100$ White asbestos in' pressure piping in stead of using imported blue fibre* They are now using only half the per centage of blue fibre in their press ure piping as compared to what they were using a few years ago* This development in the use of white asbestos will of course be encouraged by them and the use of blue fibre from South Africa or Australia is therefore decreasing* 8. 'afegg-.y: 55EKv : Produced In the matter of Asbestos Personal Injury Cases; Abrams Lead & copied to Richard F. Scruggs. oubi4y Russia Is now producing end marketing on a large scale in Europe, a hard * chxysoltile fibre which is selling at prices as much as 23% below other chrysoltlle fibres. This harsh fibre is even more suit - able than Canadian grades as an alter native material for the special purp oses for which blue fibre has been . used. Indications from our market investig ations overseas are that sales for the calendar .year I960 will be consid erably reduced as compared to the rate of sales during 1959* Recent discussions in London with Cape Asbestos Co. Ltd. the main prod ucer of blue asbestos in Africa, re vealed a grave conoern at the trend in the market. The hope was expressed that Australia would not expand the production of blue fibre at present and extension by Cape Asbestos has oeased. It is therefore most unlikely that the tomage of fibre shipped / V.A. would be any greater if from other asbestos mining concerns did commence operations. Exports may decline as if the same quantity is produced by two separate parties, costs must be higher and selling prices would need to be . greater for economic operation. 9 * A Produced in the matter of Asbestos Persona! injury Cases; Abrams Lead & copied to Richard F. Scruggs. The Domestic Market 008150 In the last few years this company has been successful in getting local users to purchase an appreciable quantity of blue asbestos fibre. Currently such users are absorbing 4,000 tons per annua. C.S.E. Company was only able to bring this about in order to provide our local market to give the much needed . security to blue asbestos production in Vestern Australia by agreeing to cease the manufacture of asbestos ce - sent building materials in Australia and agreeing not to re-enter this busi ness. This was a very heavy price to pay to bring security to the blue fibre ind - us try in V.A. In fact, there is no longer any point in this Company being Interested in the production of blue asbestos fibre unless the long term prospects are reasonably secure and reasonably prof itable, which they have not been to date. . The C.S.R. Company has spent over . 2,000,000 developing the asbestos ind us try In the Hammersley Range. No profit has been received on this . investment over the entire period of 16 years since the project was commen ced. The accumulated loss of A.B.A. is , .321 000 .10 A Produced in the matter of Asbestos Personal Injury Cases; Abrams Lead & copied to Richard F. Scruggs. The Company 006151 spent large capital sums to enable the mine and mill to he made more efficient and to en -- able production to keep ahead of the slowly growing market which it has been able to build up* The following capital expenditure . has been made at Vittenoon* Tear ending June 1957 181*600. " " 1958 476,800. " " 1959 303,500. Total* 961,900. The mill has a production capacity in excess of 20,000 tons of fibre per annum. It has been hoped to gradually in crease sales to this figure. It has been planned to instal extra plant to enable higher recovery of fibre to be made from tailings thus nTHwg the industry even more effic lent. In view of the present threat to security all operations at Vittesoos coupled with signs of slackening in the world demand for fibre, all work of a capital nature as summar ily ceased. from the level of sales during the half year ended 50tb June 1959 it had been hoped to be able to sell . blue fibre at the rate of 18,000 tons to 20,000 tons during the cal endar year I960. For this reason we have been operating ' y Produced; Asbestos ' Abrams b Richard r. matter ot a\ Injury Cases, copied to 006152 over the past few months at a rate of approximately 400 tons of asbestos per week* Past experience has vividly shown us that suggestions of insecurity t o the asbestos industry in VA. results in reduced sales as purchasers will only order ahead from a stable organ isation* The company with this present threat to the security of operations and of the indications of lover sales in any ease has reduced out put from 400 to 300 tons per week until the . position is clarified* The present pegging of claims as shown on the attached plan is deliberately aimed at stopping expansion and the oontinued life of A*B*A* This is the only conclusion which can be drawn in view of the vast area of asbestos bearing country elsewhere . which could have been pegged without interference to A*B*A.*s operations* The area of the Temporary Reserve al one is 1,100 square miles* The Company considers that having been induced to rely on the security of the Temporary Reserve and consequently not pegging claims for development years ahead it should have been warned of a change in the position* Further, in view of the work of A.B.A. and its large Investment some protec tion should be given within a radius of 5 miles of the present A.B.A. mine / Further, that the company may be perm itted to hold sufficient areas of as bestos bearing country to secure secur ity of operation for 50 years. The company's estimate is an area of 5,000 acres. Without such safeguard the whole order ly progress of the blue asbestos Indus try in Western Australia will be en dangered. Blue asbestos occurs as a near horlz ontal seam only a few inches wide As a consequence large areas are need ed to produce a reasonable tonnage. 1. The company consider that the pres ant claims pegged in the temporary re serve should be refused. 2. If it is intended to remove or change the present temporary reserve , the company is entitled to reasonabl notice. 5. The company ought to be given the opportunity to obtain sufficient Min - eral Claims to give it an assured oper ating life. Produced in the matter of Asbestos Personal Injury Cases; Abrams Lead & copied to Richard F. Scruggs. Js66ruS 3 pJSipiy l.P?!do 3 P5S1 sujejqw S9S5Q Xjnfuj (euosjdy sojseqsv J eifl ui peonpojy Itsmi TA. 41A 008154 COMMONWEALTH Of AUSTRALIA--POSTMASTUUMNECAl/S WAtTMINT Mr b* Oricttr. MMr 4 WONKY HW1AMI(..wIh8t Ti--KwH W euo 1 Sdu C1MI4*. QM* l Orttk URGENT TELEGRAM Ml tiliy-- kM kM* mak*4 MlW to M4t4t'kAct MbtMw. Ito Km ( tok k kumMiOMm s-~= Ato*rih*M4*tNo kWpmM, 7-WITTENOOM WA 55 10-37A BLUEASBESTOS PERTH WA '* JHANCOCK HAS APPLIED FOfC FOUR -THREE HUNDRED ACRES LEASES ^ iFOUR MILES WEST B GORGE LEASES IN RANGE CREEK AREA STOP } */) 'OBJECTIONS REQUIRED WARDENS OFFICE MARBLE BAR ON OR BEFORE .ELEVENTH SEPTEMBER STOP ADVERTISEMENT APPEAREO NORTHERN r ,^'TIMES THIRD SEPTEMBER RECEIVED HERE YESTERDAY STOP PLEASE ..ADVISE IF YOU WISH ANY ACTION TAKEN REGARDING OBJECTIONS ALLAN. *3.*. Wi=L