The_Open_Door_deel1

-245-
S ources:
- "Technical Information", pamphlet published by B.M.C, Bong
Range, Salala District, Bong County, Liberia, December 1976
(pp.3 and 4);
- Information Pamphlet "Bong Mine" published by the Information
& Public Relations Department, Bong Mining Company (Undated;
probably published in 1976);
- Concession Secretariat, Ministry of Finance, Monrovia.
The Dutch had already joined in 1972 through the merger of Hoesch
A.G. and the Dutch steel company of "Hoogovens" into "Estel".
In 1976 yet another change in ownership occurred when the German
Steel Company of August Thyssen-Hutte, the largest single private
shareholder in B.M.C. acquired Rheinstahl A.G. (including its 5-4
? interest in B.M.C.) through its 100? subsidiary of Thyssen -
Industrie A.G. Lastly, in 1975 the Iranian Government had bought
a substantial portion of the shares of Friedrich Krupp Huttewerke,
owner of 8.6? of B.M.C. 's Class B Common Stock, (see Chart 3
"Ownership Structure of B.M.C. as of December 31, 1977").
Exploration und Bergbau (formerly Gewerkschaft Exploration) plays
an important role in the mining company. Under the Consultancy
Agreement of August 1, 1962 Gewerkschaft Exploration already
handled all work in connection with the Bong mine which was not
undertaken in Liberia, e.g. investment planning and control;
tendering, the signing and supervising of contracts; recruitment
of ex-patriate labour; accounting and bookkeeping; financing and
management of funds outside Liberia. In 1965 the original
agreement (of 1962) - under which a fee of 7>5 cents per ton of
shipped concentrate was paid for these services - was substituted
by an arrangement which provided for only the reimbursement of
actual costs of these services whereas Gewerkschaft Exploration
was(by the same agreement) charged with all work concerning the
planning, construction and operation of the first pelletizing
plant (which started operations in February 1971), Actual
expenditures made on behalf of B.M.C. were considerable and were
equivalent to 32.4 cents per metric ton or 1.6? of sales revenue
in 1976 (99).
Exploration und Bergbau is a non-profit organization and a
service company to the German steel industry, providing services
to both B.M.C. and the "Konsortium Liberia" (for which it is
reimbursed at cost.-This reimbursement does not include a profit
margin - unlike Granges/LAMCO and M.M.A.L./N.I.O.C.). It holds
the shares in B.M.C. on behalf of the German steel companies
participating in the Konsortium Liberia. Exploration und Bergbau
also acts as B.M.C.'s agent for sales to the German buyers but
B.M.C. does not pay commission on sales to affiliated companies
and as sales to non-affiliated companies are insignificant the
costs of sales are virtually limited to the payment of sampling
fees. In the 197O's these fees averaged about $ 150,000.00 per
year in the case of Exploration und Bergbau and nearly
$ 60,000.00 per year for Italsea, B.M.C.'s Italian agent for
sales to Italian buyers. Contrary to Exploration und Bergbau
Italsea is not affiliated to the private investors in Bong (100).