ANGLO AMERICAN CORPORATION 105
under
all conditions. It is our intention that these additional funds of the
corporation will be employed in participating in the mining development
of this country, in the same manner as Dc Beers Industrial Corporation
is taking part in the Union's industrial expansion, thus carrying out
the policy of the founders of De Beers.
The
Diamond Corporation had, in fact, invested largely in Orange Free State
and West and Far West Rand gold interests. In the annual report for the
following year, it was stated that 'it was decided to divide the
Diamond Corporation into two companies by forming a new company called
De Beers Investment Trust Limited, and the new company was registered
on 10 December 1952, with a nominal capital of £12,000,000 in 12,000,000 shares of £1 each'.
At the following annual general meeting, Ernest Oppenheimer explained the situation at greater length.
In
1930-1 the corporation had taken over approximately £13,000,000 of
diamonds at the prices ruling then, which were only a fraction of the
prices which have prevailed in the recent past. During the years
immediately after 1930—1 —the years of the severe depression —
deliveries from this stock were more than replaced by new purchases
made at even lower prices.
When
we could at last dispose of our stocks, we were in the midst of the
greatest boom the diamond trade has seen, prices of diamonds had
recovered and benefited from the two devaluations of the pound
sterling. We reaped a golden harvest, the Diamond Corporation's cash
resources rising to £40,000,000.
This immense capital accrual was forced upon us by the restraint placed on the disposal of our stocks. It was not a profit in the ordinary way of business. It will never recur. The corporation earmarked £20,000,000 for the protection of the diamond trade and has employed the remainder of its resources in the establishment of the 'De Beers Investment Trust'.
During
1952 and since the turn oi the year, the capital of the Diamond
Corporation has been increased to £20,000,000 in 20,000,000 shares of
£1 each, all of which are fully paid and issued.
In
your directors' report, particulars are given of the formation of De
Beers Investment Trust and the scope of its activities. We have
employed the surplus funds of the Diamond Corporation, through De Beers
Investment Trust, in furthering the development of the African
Explosives and Chemical Industries, whose activities include increased
output of dynamite, cyanide and fertilizers, all directly connected
with the expansion and development of mining and agriculture in the
Union and the Rhodesias. We have participated in the development of
the gold-mining industry on the Far West Rand and in the Orange Free
State.
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