During the war these contracts were cancelled by the Australian and British governments and the work of reconstructing the industry on a purely Australian and British basis was undertaken, the idea being to provide for the treatment, so far as possible, of all ores in Australia, so that they could be marketed in their finished state. The Australian government first formed a metals exchange, through which all metals produced in Australia must pass for sale. The Zinc Producers’ Association Proprietary, Ltd., was registered May 20, 1916, in Victoria, Australia, to market products of the member companies producing zinc ores, concentrates, and metals in the Commonwealth of Australia and Tasmania, all of which have sold their entire output to the association for fifty years. The shares, 100,000 of £1 each, are held by the following companies: Amalgamated Zinc (De Bavay’s); Broken Hill Proprietary, Block 14; Zinc Corporation; Broken Hill Proprietary; Electrolytic Zinc Smelters; Junction North; North Broken Hill; Sulphide Corporation; British Broken Hill; Broken Hill Associated Smelters; Broken Hill Junction; Broken Hill South Silver; Broken Hill Proprietary, Block 10; Mount Lyell Mining & Railway Co.
The Australian federal government, acting through the Zinc Producers’ Association, contracted to sell to the British government the whole output of zinc concentrates in Australia for the period of the war and ten years thereafter. Previously the Prime Minister had contracted for the sale to the imperial government of 100,000 tons of zinc concentrates and 45,000 tons of electrolytic zinc and spelter for ten years. The arrangement provided for the British government taking the stocks of zinc concentrates on hand December 31, 1917, less a definite percentage reserve, and thereafter 250,000 tons per annum for the period of the war, and 300,000 tons annually for the following nine years. Provision was also made for supplying the requirements of the Australian zinc-refining works and the fulfilling of Japanese contracts during the period covered by the British contract. Under normal conditions the Australian output of zinc concentrates, averaging from 46 to 48 per cent. zinc, is about 450,000 tons per annum, valued at $25,000,000.
The effect of the above arrangements is to transfer permanently the control of the Australian zinc industry from German to British citizens under a system jointly commercial and political. The mines and works always were owned by British and Australian capital.
The Zinc Producers’ Association is co-operative in character, guaranteeing to all members equality of treatment irrespective of tonnage. The commonwealth is represented on the board. The federal government is also encouraging in every possible way the establishment of reduction works, particularly electrolytic zinc works. It has been reported that the Burma Corporation was a stockholder of the Zinc Producers’ Association, but this report has not been satisfactorily confirmed. In case it should be true the association may ultimately control the sale of 85 to 95 per cent. of the zinc ores of the British Empire. Having smelting capacity for a considerable part of their production and acting as a unit in selling the surplus, the Australian zinc producers should hereafter be in a strong position in dealing with German, Dutch and Belgian smelters. The smelting capacity will not be largely increased in the near future.
France.
—The nationalist movement in France during the war resulted in the formation of trade associations known as “consortiums,” comprising the principal factor in each industry.[139]
[139] For a description of the consortium covering the mineral industry, the Société Minerais et Metaux, see the Chapter on Lead, [pages 284] and [285].
POSITION OF THE GREAT NATIONS
Since the elimination of the alien-enemy interests in the American Metal Co., L. Vogelstein & Co., and Beer, Sondheimer & Co., the industry in the United States is controlled and the mines and works are owned by American capital, which also controls some zinc production in Mexico, Canada and Peru. Future production and consumption will probably balance as before the war. There is now excess smelting capacity, but it has been conclusively demonstrated that the country is capable of supplying the ore for even greater capacity. The United States will retain first place as a producer. During the period of readjustment some concentrates may be shipped to Belgium and Holland.
With the permanent diversion of the Australian concentrates, and the probable loss of the Silesian deposits and reduction works, Germany will lose its second place in the industry. With only the Rhenish, Westphalian, Harz, and Erzgebirge districts as sources of domestic ores, the supply will be reduced to one-third of that produced before 1914, which was only two-thirds of all the ore smelted in the country. Unless ores or concentrates can be imported, Germany will be only a small factor in zinc production. Whereas in 1912 Germany had 50,000 tons of spelter available for export, importation may now be necessary. As a result of the treaty of peace the Polish industry may be dominated by French capital.