Evening star., 1924-11-15
BY ROGER ". BABSON.
n snatch 20 The Star

Special n snssch 20 The Star.
WELLESLEY HILLS Mass. No.
vember IJ.--The present trend and
future Development OF the copper
industry is of unusual interest not
only to investors in copper stocks but
TO all investors.
John Hayes Hammond believed by
many to be the worlds greatest min
ing engineer. has beautiful Summer
home At Gloucester. AS d native OF
that port, have been in the habit
OF spending my holidays there and
We sometimes get together for
neighborly chat.
He told me about Katanga and the
Development of the South African
mines. cannot mention anything
in the way OF American resources but
Mr.. Hammond is ready TO match them
or exceed them with statistics on
Africa. We were talking about cop
per when he told me OF the develop
ments now under way in Congo.
Development In the Congo.
Belgians and the Union Miniera
katanga. This company in 1912 was
producing about 100000 pounds Of
copper a year. This production has
steadily increased until, based on last
months output. il is producing at
the rate of 225.00o.ooo pounds a year.
This brings its volume to practically
the same as that Of the Chilli Copper
Company. nov generally known as
the worlds largest producer. It is
understood, however. that these Kat
anga mines are now building for an
output OF over 100000 pounds of
copper Il day or over 7oo.ooeOoo
pounds annually. AS this develop
ment is completed the center OF the
worlds copper production will be
shifted from the Western to the East
ern Hemisphere.
Inese African mines are located
In the southeastern corner of tho
province OF katanga. which in turn
is located in the southeastern part Of
Belgian konSo. The headquarters
OF the company. at little town
known as Eliza bethville, are 1900
miles by rail from the nearest port,
Beira- The two are connected by 4
pany has concession over 5000
square miles and in addition to pro-
ducing copper is also mining tin and
radium. In the copper operation the
ore is worked with a steam shovel it
contains from to 9 per cent of
copper, ana Is refined near the mines.
Black Copper Treated.
Black copper is shipped for treat
ment, either TO the companys finish
ing refneries in Belgium or to the
Nichols Copper Company, Laurel Hill,
New York. The rail haul from mine
to port Is somewhat Of handicap.
but since it is mostly down grade this
cost is not prohibitive. Labor, on the
other hand. is unbelievabiy cheap,
and this African copper is now being
delivered in Europe at a cost Of 8
cents or less per pound. The tre-
mendous production at so low cost
must have its effect, and it will not
be surprising il the price of copper
does not rise far beyond its present
figure.
The point in the copper situation
is that low-cost companies can make
a very good profit in our present
market. Even at Is cents it will be
seen that the iow-cost producers. like
Chile, Katanga and kennecott, are
making gross profit of 90 per cent
This. of course, is figured before de-
probation is charged, and deprecia-
ton is very important item in con.
nection with mining operations II
is certain, however. that this great
development in Africa is an exceed
ingly bearish. factor. as 1t must at