Document qaYr1mRZ3Kkn6vRVXDm652MdR

No. 1 December, 1Q71 PRICE INCREASES OF R.K.265D Please find attached a copy of the minutes of a meeting with Cape Asbestos which was called to discuss the price increases to be imposed on supplies of asbestos to operating companies. The present situation and future implications for supplies of this raw material are evident from these minutes. 1. In view of this situation and coupled with the present trice differential between grades S33/65 (3.M.265D) and SAA, companies are reconsnended to evaluate the replacement of S33/5 by SAA as soon as possible. Attached is a technical report comparing the effects on the finished product of asbestos grades S22/63, S33/65 *nd SAA for your information. Foseco G.m.b.H. are currently evaluating SAA on a production basis and as soon as information is available it will be published for the benefit of companies. SAA is a fairly new grade of fibre produced by further refining of waste. Cape Asbestos assured the meeting tha.t it was in good supply. 2. Because of the predicted limited availability of amosite asbestos in the future and, therefore, the probability that the price of all grades will rise again next year and continue to rise for the next five years, it is recommended with regard to the present situation that companies evaluate in due course the elimination of asbestos, where possible, both for health and economic reasons. To this end a development study will be carried out by the department in the second quarter of 19??. M.J. Mellodey MEETING WITH G\TE AG3E; OS FIBRES LIMIT!'. LONDON AT F.I.I.. 21*TV NOVEMBER. Purpose. The meeting was called at the request of F.I.L. to establish the price and availability of the various grades of amosite asbestos used vithin the Group during 1972. The meeting followed a report that increments of 9 on SLL prices and 111- on S33 prices had been quoted to Foseco Gesellschaft, Germany. Salient Cape points. 1. C.A.F.L. indicated that the F.O.B. price of all grades of amosite asbestos marketed by Capes are being increased by a minimum of 8%. Also from January 1st, 1972. freight charges from South Africa to European ports were increasing by 15'-. In consequence, the European companies could anticipate increments of the order of 9*. 2. The grades of amosite asbestos S33/65 and SLL purchased by refractory tile manufacturers would carry a minimum increment of 87 compared with an increase of 20-25 - for those grades of amosite asbestos marketed to the Building Industry. 3. The reasons given by Capes for these increases were as follows 1) As a result of political activity in South Africa, Cepes informed that labour costs had increased due basically to the need to retrain on an annual basis the bulk labour force. 2) The denand for amosite asbestos was currently around 50-7 more than the current capacity of the production facility in South Africa. 3) Production capacity could not be significantly increased within 5 years because the current mine shafts are at peak production capacity and it would need the sinking of fresh mine shafts plus the building of new production plants to raise the output in line with demand. A decision regarding increasing capacity in due to be taken by Capes during next year. This would not, however, take effect for 5 years and would mean that in the interim there could be keen competition for amosite asbestos with the inference that prices would continue to rise. L) Capes indicated that these worldwide price increments were being implemented partially to raise necessary capital funds for expansion. 0846 Jtm '}) Caoes indicated that, it was their policy ! inrtit'iti ng differential orice increase.', to maintain interest in the ruooly of amosite asbestoa to the Refractory Tile Industry at the exoense of the business to the Building Sector. Salient Foseco points. 1- In response to our enquiry regarding either a prouo discount or special price in view of the increased offtake of the group during the past three years, i.e. 1969 - 600 tons, 1970 - 2,000 tons, 1071 - ?,?00 ton? Capes reiterated that no discount or special price was available over the 600 ton figure. 2. In view of Cape Asbestos remarks regarding the future availability of amosite asbestos, F.I.L. requested consideration for a 2 year contract provided the price was satisfactory. Capes indicated that they were not prepared to consider contracts of greater than one year duration. 3. During discussion, Foseco Inc's offtake current and potential 72 were introduced. The price which Foseco Inc. ?av to N.A.A.C. could not be related by Foseco directly to the same F.O.B. South Africa port price that applied to European Foseco associates. Caoer advised that their policy was a separate market price in North America and Jaoan. Prices in these two regions would be significantly higher than those appertaining to Europe and the rest of the world. In view of this we requested a quotation for supplies to Foseco Inc. ex South African port from Cape Asbestos Fibres London Limited. Mr. Scott indicated that he would raise this with N.A.A.C. and would revert if agreeable with an offer. 1*. Caoe Asbestos Fibres were informed that in the oresent price climate Foseco as a grouo would be looking at alternative materials and alternative supoliers of amosite asbestos. e* 08A7 COMPARISON OF ASBESTOS SU4 WITH THE STANDARD MATERIAL R.M.265D (S33/65 ) Introduction Laboratory tests had shown that two new grades of asbestos S33/65 and s*l* could be used as alternative material to R.M.'s 265B or 265c. The tests below were carried out to examine the properties of ShU under production conditions, using R.M.265D (S33/65) as standard. Experimental The recipe used as a basis was as used in the previous tests. i.e. 61 Asbestos 3% ^68B a* 267 294 131C 581 00E The two Asbestos types Ski* and S33/65 were substituted in the above recipe. Mixing Procedure Total solids weight - 50 Kg. Volume of water - 60 gallons. The standard production scale hydropulper was used. The procedure was as follows: (1) R.M.'s 267 and 00E were pulped with aooroximately of the total volume of water until the R.M.267 was completely pulped. (Time ca. 30 minutes). (2) All the other R.K. 's were added and pulping continued while the total amount of water was added. (Time 2 minutes). (3) Pulping was continued for a further 3 minutes and the slurry discharged. Two mixes were made using the above procedure, one with Ski* and the other with S33/65. A second mix with Ski* was made using a slightly modified procedure as follows: 1) R.M. 's 267 and 00E were pulped as described above. 2) All the other R.M.'s except the Skk were added and pulped as above. n. IJ t -c- 3) Pulping was continued for a further 3 minutes, i) SW* was added and mixed in without intensive pulping. The reason for the modified procedure was to prevent any reduction in fibre length of the Asbestos since this was already considerably shorter than the R.M. 265D. Properties of slurry, and tiles Standard tiles (1200 x 33 cm. ) were formed on the SAM at Uo p.s.i. applied pressure. The tile thickness was approximately 1 inch. The formability, forming and dewatering times, slurry suspension, green strength and green water content of the tiles was determined; the density, permeability and transverse strength of the cured tiles was also determined. Results 1 S33/65 23 Skk SLk (modified nixing procedure) Slurry properties solids content % suspension ($ clear liquid) after 1 hour after 2k hours Forming properties green product formability (distribution of slurry on tool evenness of top surface and thickness of tile) green strength 15 - 16 22 30 25 32 good good very good very good Forming time (sec) Dewatering time (sec) Finished product Density (g/cc) Permeability (AFS units) Transverse strength (p.s.i.) 20 22 0.88 7.5 lgrr 17 20 0.93 11.3 236 23 30 good slightly better than the other mixes 20 25 0.90 11.3 260 08^9 - 3- The general appearance, hardness and flexibility of the cured tile were similar in each case. Steel pour test a) Ease of strip: b) Metal surface quality: All tiles easily removed. Residues fairly veil sintered. No observable difference in behaviour of each tile. Smooth metal surface in each case. No penetration. Moderate bum on. Comment (1) Comparing 1 and 2, the properties of the products at each stage of manufacture are very similar with the exception of the density of the tile, which is somewhat greater in the case of SW*. (2) The modified mixing procedure for SW< has brought about an improvement in green strength and transverse strength by preserving the fibre length of the Asbestos and there has been a slight reduction in density. This procedure is therefore to be reconnended. (3) The green strength of the tiles made with the new types of Asbestos is satisfactor, for tile manufacture. Further tests would be necessary to determine whether this is sufficient for one piece head manufacture. Conclusion Apart from the differences in density and the economic implication of this, there are no great differences in quality of tiles made with Skk compared with those from 333/63* SW could therefore be used as an alternative. V.S. Mellows 0850 S^u in GERMANY On production uses co-date the German company has been unable to establish any differences in performance of their Profax using asbestos grade S--. 0851