The Rhodesian Selection Trust (RST) was a mining Corporation which produced copper from the Copperbelt region of Northern Rhodesia, now Zambia.

History

The RST was formed in 1928 by Alfred Chester Beatty, an Irish-American mining magnate, as a holding company for his mining assets in Northern Rhodesia.[1] The new company received the financial backing of the American Metal Company of New York, who acquired 1,000,000 shares of RST in October 1930.[2]

In 1960, RST and its main subsidiaries cleared $13,132,546, or 29 cents a share for the fiscal year ending June 30, 1960, an increase from $8,780,651 in the preceding year.[3] In 1964, the firm reported a slight dip in profit from $16,691,000 in 1963 to $16,517,000 for the year ended June 30, 1964.[4] The firms sales however, rose from $142,605,518 to $165,736,718.[4][5]

Zambia independence

In February 1964, firm Chairman Sir Ronald Prain, who had insisted RST offer copper outside the speculative London Metal Exchange at a price below the exchange level, argued alongside the Anglo-American Corporation of South Africa "for maintaining copper price stability".[6] On October 23, 1964, in a letter to stockholders, Chairman Prain noted that the date marked the first day of independence of the Republic of Zambia, previously Northern Rhodesia. "He said that Zambia has a larger white population than any other country in tropical Africa now under an African Government and added, 'It is gratifying to record that race relations are excellent.'"[4]

In December 1964, the Rhodesian Selection Trust, Ltd. changed its name to Roan Selection Trust, Ltd. At the same time, the Roan Antelope Division of Rhodesian Selection Trust, Ltd., became the Luanshya Division of Roan Selection Trust, Ltd.[7]

1970 merger

In 1970, Roan Selection Trust, Ltd., which had been 42.3% owned by American Metal Climax, Inc., became a wholly owned subsidiary of AMAX as a result of a reorganization.[8]

"The amalgamation will be effected under an arrangement before Zambia's high court that will also provide that a substantial portion of the Roan assets be received by other than Amax shareholders. Under the previously announced nationalization of all Zambian copper properties, the present mining, smelting and refining operations of Roan in Zambia are to be merged into a single company to be named Roan Consolidated Mines, Ltd., in which A state‐owned industrial corporation, Indeco, will acquire a 51 per cent equity interest. The remaining 49 per cent of the equity capital in Roan Consolidated will be owned 36.75 percent by Roan Selec tion and the remaining 12.25 per cent almost entirely by companies in the Anglo-American Corporation group by reason of their present minority, interests in certain of the Roan Selection companies."[8]

In 1982, NCCM and RCM were merged into the giant Zambia Consolidated Copper Mines Ltd (ZCCM).

1993 merger

In 1993, AMAX merged with the Cyprus Mines Corporation to form Cyprus Amax Minerals Company, the world's leading producer of molybdenum and lithium, and a leading producer of copper and coal. In 1999, Cyprus Amax Minerals was acquired by Phelps Dodge Corporation which in turn was acquired by Freeport-McMoRan (NYSE: FCX) in 2007, forming the world's largest copper producer.[9][10]

References

  1. ^ Berger, Elena L. (1974). Labour, Race and Colonial Rule: The Copperbelt from 1924 to Independence. Oxford Studies in African Affairs. Oxford: Clarendon Press. ISBN 0 19 821690 4. Retrieved 2013-09-26.
  2. ^ "NEW LISTINGS SOUGHT ON STOCK EXCHANGE; American Metal Company Offers Shares to Be Used in South African Deals" (PDF). The New York Times. 17 October 1930. Retrieved 27 January 2020.
  3. ^ "Rhodesian Selection Trust" (PDF). The New York Times. 11 October 1960. Retrieved 27 January 2020.
  4. ^ a b c "COPPER PRODUCER SHOWS PROFIT DIP; Rhodesian Selection Trust Reports a Slight Decline" (PDF). The New York Times. 23 November 1964. Retrieved 27 January 2020.
  5. ^ "Announcement by Chambishi Mines Ltd on 21st May 1962 and comments made to the press on 21st May 1962, by Sir Ronald L. Prain, mimeographed RST documents". Roan Selection Trust Journal.
  6. ^ "Chief of Rhodesian Trust Urges Copper Men to Hold Price Line" (PDF). The New York Times. 7 February 1964. Retrieved 27 January 2020.
  7. ^ "Company Gets New Name" (PDF). The New York Times. 17 December 1964. Retrieved 27 January 2020.
  8. ^ a b Hammer, Alexander R. (7 March 1970). "Selection Trust Will Be Subsidiary of Climax Under Zambia Plan" (PDF). The New York Times. Retrieved 27 January 2020.
  9. ^ "Cyprus Amax Minerals Company: Private Company Information - Bloomberg". www.bloomberg.com. Retrieved 29 August 2017.
  10. ^ "History of Cyprus Amax Minerals Company – FundingUniverse". www.fundinguniverse.com. Retrieved 29 August 2017.
Categories