SPANISH MINES.

Hauraki Plains Gazette, Volume XXXVI, Issue 4817, 2 March 1925, Page 3

SPANISH MINES.

rtJIKJHASBP BY KBUPPS.

COAL AND IRON ENTERPRISE.

'(.The London Times Correspondent.)

The Krupp firm is sedulously developing its industrial, programme in Spain. A few weeks ago I announced that i.t had arranged to purchase the Mierep mining and smelting company. This statement was denied, but nevertheless it was true. The agreement, which was Berlin, hap now been approved, and, according to information from one of the panties -principally .interested, the signatures have been affixed and the contracts are. in the ■ hands of a notary. Kfupps will form a new company with a capital of 100,000,000 pesetas (about £3,- . 030.000). Of this sum 25,000,000 pesetas will go to the Marquip de Villaviciosa. of Asturias, and the Conde de Mieres, the owners of the Spanish company. .About. 25,000,000 pesetas will be allocated for paying the debts of the company, and 50,000,000 pesetas -ill remain for developing the enters prise. The Langreo • railway, which is also the property of the Marquis 'e Villaviciosa and the Conde de ' tfieres is not included in the sale, and will remain in the hands of its present owners. The Mierep mines are situated in the province of Asturias, close to the sea. and are the richest coalmines in Spain;" The iron that is produced there is also pf excellent quality. The Krupp programme, as I learn fiom a very good source, contemplates the working of the mines by the most modern methods, the installation ol‘ smelting-works, and. the. manufacture of 'war material and'industrial machinery. They wanted al,so to buy certain other ironworks and shipbuilding yards in Andalusia, but. were not successful. In financial circles it is thought that Messrs -Krupp will meet with enormous difficulties in placing tne shares and bonds of the new company in Spain, because the leading members of the banking community are ■'by no means favourably disposed towards their projects. Some months ago, when Krupps issued the shares for their new shipbuilding company, the bankers remained inactive, and tlie result showed that Spanish investors had little confidence in -he affair. On the present occasion there is some talk about the money coming fram abroad, but the big financiers do not believe in this. In order to under- ' stand this hostility it should be known, that the principal banks and bankers in Spain are already interested in similar enterprises. The Urguijo -Bank, for example, f.he Bank of Vizcaya, the Bilbao Bank, the Central Bank, and the Credit del’Union Miniere have large interests in the Dura Fe’.quera Siderurgica of Ponferrada, the Altos Horrios of Bilbao,, the Altos Hornos del Mediterraneo, and other mining and metallurgical works.