It is clear that mining companies within the Commonwealth are being treated more favourably than those in South Africa, The Union Government, it will be recalled, has decreed that all gold sales effected over 150s. shall be appropriated by the Govern. ment—this of course being quite distinct from the relatively heavy taxation to which the Witwatersrand gold mining industry was already subjected.
It is to be borne in mind that not only are the Australian producers to receive the equivalent of 156s. sterling per ounce, but that they stand to derive a 50 per cent. benefit from any further advance in the price of gold.
It is worth pointing out that under existing conditions the position of gold mining companies is such that it is impossible in any case to derive anything approaching the full benefit of the recent advance in the price of gold.
It is pointed out in influential West African mining quarters, for example, that as the result of the substantial increase in war risk rates, higher freight rates, and a rising tendency in working costs, as much as 75 per cent. of the recent rise in the price of gold from 148s. to 168s. per ounce will be absorbed in offsetting these items.
Text read from the printed page and cleaned; old type leaves the occasional error.