446 SIR ERNEST OPPENHEIMER
favourably
commented upon, and, owing to its purity, a very satisfactory premium
has been obtained over and above the ruling market prices. In addition
to vanadium, the company will derive a certain amount of revenue from
the lead and zinc contents of the ore.
Large
ore reserves are assured, and, apart from the proved tonnage, there are
great potentialities in the company's mining area, where, so far,
little work has been done outside the existing mines.
A
flotation plant has been erected and is now in operation, dealing with
valuable accumulations from the old concentrating plant. The flotation
product will supplement the tonnage of lead ore from the mine, which
will enable the lead smelters to maintain a limited but steady output.
The new zinc plant is expected to be in commission towards the end of
next year.
Electric
power will be obtained from the company's hydro-electric plant near the
Mulungushi Dam. The present capacity of this plant is being extended to
12,500 kW., which will be amply sufficient for the company's immediate
requirements.
In
the beginning, the plant went through the usual teething troubles, but
the prospects were more than promising, especially as the developments
of technology were providing a market for vanadium, as well as for lead
and zinc; just as, incidentally, the growth of the world demand for
cobalt was to strengthen the position of the N'Kana Mine.
Nevertheless,
the world depression hit Broken Hill very hard. At the annual general
meeting of Anglo American Corporation held on 20 May 1932, Ernest
Oppenheimer had to announce that the Broken Hill board had decided to
discontinue the production of lead and zinc. This
decision
was reached as a result of certain negotiations by the chairman, Sir
Edmund Davis, with the zinc cartel, when he succeeded in obtaining some
consideration for this abstention. On the other hand, I am glad to say
that there has been a satisfactory demand for the company's vanadium
product, which is marketed in two forms, namely, fused vanadium oxide
and vanadium concentrates, and for both of these the chairman of the
company negotiated very satisfactory contracts. The result has been
that although not producing its two principal products . . . the
company has succeeded, throughout a year when exceptionally
unfavourable conditions obtained, in operating not merely without loss
but actually at a profit. This, in all these circumstances, must be
regarded as a considerable achievement.
Zinc production was resumed at the beginning of 1933, but as was explained by Ernest Oppenheimer in 1934,
the
financial results of these operations have not come up to expectation,
owing to the low price realized for the product. In this connexion I
would
