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THE NORTHWARD EXPANSION
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485
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APPENDIX I
(See section XV, p. 434 supra)
SIR ERNEST
OPPENHEIMER'S CORRESPONDENCE
WITH SIR AUCKLAND GEDDES
DECEMBER 1930
I have been considering
the possible future of the Bwana, R.C.B.C. and N'Changa companies, and
I have very definitely formed the opinion that it would be of the
greatest benefit to those companies, and hardly less so to the Northern
Rhodesian copper industry as a whole and the country itself, if an
operating company . . . could be formed which could acquire the
undertakings of the three companies mentioned. Such a company, of
course, should be self-contained and have its own managerial,
secretarial and engineering staffs.
Among the many reasons which have led me to this opinion, the following appeal to me particularly.
(1)
The establishment of such a company would ensure collaboration and
avoid competition with regard to production. It is, of course,
impossible to forecast the ultimate copper output for which these
companies will be responsible, but I suggest that it is quite
reasonable to assume that the following is what may be expected within
the next five or six years: N'KANA
7,500 short tons per day at 4 per cent—90,000 short tons of copper per annum. R.C.B.C.-N'CHANGA
5,000 short tons per day at 7 per cent—105,000 short tons of copper per annum.
A total of 195,000 short tons of copper per annum.
This
represents about 10 per cent of the world's production last year, which
was a prolific year, and as such would constitute the company
controlling this output one of the most influential in the world, and
place it in the same class as such groups as Kennecott/Utah, Anaconda,
Phelps Dodge/ Calumet and Arizona, and Union Miniere. The advantages to
be derived from occupying such a position especially in respect of any
negotiations pertaining to rationing are too obvious for elaboration.
Separately the three companies could not hope to exercise anything like
the same amount of influence, apart from the fact that if there were no
close relationship there would be a real danger of competition between
them, which would still further weaken their position in the councils
of the world's producers. The above is undoubtedly true on the very
conservative basis indicated, but
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