Anglo American Corporation of South Africa Ltd.: Investments in North America

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Alternative title Anglo American Corporation of South Africa Ltd.: Investments in North America Author/Creator Kaplan, Ruth Publisher Africa Fund Date 1982 Resource type Pamphlets Language English Subject Coverage (spatial) South Africa, , , , Namibia Coverage (temporal) 1917 - 1982 Source Africa Action Archive Rights By kind permission of Africa Action, incorporating the American Committee on Africa, The Africa Fund, and the Africa Policy Information Center. Description Foreign Investment in the United States. Anglo American Corporation. Minorco. Minerals and Resources Corporation. Consolidated Gold fields. Newmont Mining Corporation. Phibro Corporation. Engelhard. Hudson Bay Mining and Smelting. Overlapping Directorships. Subsidiaries. Affiliates. Format extent 39 page(s) (length/size)

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Anglo American Corporation of South Africa Ltd.: Investments in North America by Ruth Kaplan (associated with the American Committee on Africa) 198 Broadway e New York, NY 10038 q ,1

Anglo American Corporation of South Africa Ltd.: Investments in North America by Ruth Kaplan (associated with the American Committee on Africa) 198 Broadway * New York, NY 10038 V

Copyright 1982 by The Africa Fund ISBN: 0-943428-03-3

Introduction In the last few years there has been a significant growth in foreign investment in the United States. Most of this investment has come from -western , Canada, and more recently, Japan., Much publicity has been given to investment in the U. S. by the 13 members of OPEC, although this actually represents a small proportion of overall foreign investment. It may come as a surprise then, that the current largest foreign investor in the United States is a South African company, Anglo American Corporation. The significance of U.S. and other foreign investment in South Africa has been the subject of other studies. This investment has taken with it capital and technological knowhow, contributing in a fundamental way to the stability and growth of the South African economy. In this way foreign investment has helped make possible the continued existence of white minority rule, and has increased U.S. commitment to an undemocratic political system. Many opponents of Ppartheid, internationally and in South Africa, favor a complete withdrawal of foreign investment, and s number of universities, churches, trade unions, 9nd stste and municipal governments have removed their funds from corporations and banks with investments in South Africa. In contrast, the implications of South African investment in the U. S. have not been examined. John Chettle, the U. S. Director of the South Africa Foundation, an organization of businesses in South Africa, is of the opinion that such investment can blunt the efforts to end American investment in South Africa. What will the effect of South African investment in the United States have on U.S. policy toward South Africa ? Will it pave the way for growing U.S. acceptance of South Africa, helping strengthen the already powerful lobby favoring closer relations with this economic powerhouse? This study is a first step in supplying the information needed to answer these questions.

Anglo American Corporation Anglo American Corporation of South Africa Ltd. (Anglo American), the largest company in South Africa and a dominant influence in the economy of southern Africa in general, has become the largest foreign investor in the United States in 1980 and again in 1981. 1 In order to gain this financial position Anglo American displaced Royal Dutch Shell from first place into second; British Petroleum is in third place. This financial achievement culminates a publicly announced effort by Anglo American in 1975 "... to pursue a policy of seeking new business opportunities throughout the world. "2 This study examines the extent of Anglo American's holdings in North America and the role of its 100 plus investments in the U. S. and Canada. Anglo American, established in 1917, is the biggest single economic factor in South Africa and together with Consolidated Mines exercises control over a group of subsidiary and affiliated companies known as the Anglo group. The Anglo group is the Western world's largest producer of gold, diamonds and platinum, In 1979, Anglo produced 38. 2% of South Africa's total gold production. De Beers, on the other hand, operates a monopoly in the diamond trade, marketing 80% of the world's diamonds, including the Soviet Union's, through its London-based Central Selling Organization. In November 1981, the Anglo group consolidated its industrial holdings in South Africa through the merger of Anglo American Industrial Corporation and De Beers Industrial Corporation, displacing Barlow Rand as the largest industrial group in South Africa. The development of the Anglo group from a dominant economic influence in southern Africa to a transnational corporation partially illustrates how it became the largest foreign investor in the U.S. Anglo American owns or controls gold mines with some of the lowest production costs in the world. This is partially due to the fact that they were established some 30 to 40 years ago when it was much less expensive to set up a mine than it is today. It is also due to the fact that Anglo American has paid and continues to pay African miners much less than white miners. For example, in 1979 Anglo American paid African miners an average of $175 per month while paying white miners $1, 056 per month. This inequitable wage system and high prices for gold and diamonds resulted in enormous cash flows for Anglo American starting in the late 1950's. Anglo American attempted to invest on a large scale outside of South Africa when it first became cash rich. However, strict exchange controls were instituted by the South African government in 1960 after the massacre at Sharpeville and the subsequent shortterm withdrawal of large amounts of foreign investment from South

Africa. Although foreign investors quickly reinvested in South Africa, as a result of the exchange controls Anglo American was stopped from pursuing its international investment plans and was effectively forced to put its money back into non-mining sectors of the South African economy. As a result of this pressure Anglo American moved into insurance, automobiles, construction and real estate to name a few. Another attempt to invest abroad was made in 1965 when Anglo American combined thi ee London-based investment companies it effectively controlled to form Charter Consolidated, a mining finance house. In the mid-1960's, England imposed its own exchange controls which discouraged f reign investment from a U.K. base and Anglo American was again prevented from investing abroad on the scale it wanted to. Minorco The restructuring of Minerals and Resources Corporation (Minorco) in 1981, Anglo American's subsidiary in , was its third and very successful attempt to set up an international investment arm for the Anglo group. The company was originally established by Anglo American in England in 1928 under the name Rhodesian Anglo American Ltd. Its function was mainly to provide financing for the development of a copper mining industry in what is now (formerly Northern Rhodesia). In 1954, the company's headquarters was moved from London to Zambia and its name was changed in 1964 to Zambian Anglo American Ltd. The name change was made to better reflect the company's involvement in all aspects of the mining and industrial sectors in Zambia. In 1970, at the same time the Zambian government acquired a 51% interest in its copper mining industry, the company's headquarters were moved again, this time to Bermuda. The company's public rationale for the move was to pursue a " .. policy of seeking new business opportunities for the investment of capital funds released from Zambia.-"3 The capital funds Minorco envisioned continuing to come from Zambia were cut short in 1974 when the Zambian government, in furthering the nationalization of its mining industry, allowed the export of only two dividends a year instead of four. Zambian Anglo American's name was then changed to Minerals and Resources Corporation and a new source of capital was then set up for Minorco to make it more independent of its Zambian operations. Anglo American transferred control of its 27% stake in Engelhard Minerals and Chemicals, which it had acquired in 1971, to Minorco as a cash source for future expansion. It took a number of reorganizations within the Anglo group to strengthen Minorco into an effective international base from which to expand. The most recent reorganization of March 1981 was intended to make Minorco a self-funding overseas investn'2nt arm. This was accomplished by transferring to Minorco other companies in the Anglo group that were rich in cash resources. The total assets transferred to the Bermuda company amounted to more than $800 million in exchange for stock in Minorco. The exchange of stock resulted in Anglo American increasing its direct control of Minorco to 43% while the Anglo group's control increased to 76%. The assets alone which were transferred to Minorco are enormous. They increased Minorco's net assets to a level of $2 billion in 1981 (Rl. 660 billion). The unconsolidated net assets of Anglo American Corporation of South Africa in 1981 were R2, 486 billion. Thus Minorco essentially became a third pillar in the Anglo group and financially should be considered one of the core companies within the group. It has the greatest wealth of any of Anglo American's overseas subsidiaries and though it can call on Anglo American for financial, technical and/or administrative assistance, it is expected to stand on its own and generate its own cash for investment purposes. The significance of the restructuring goes beyond the simple fact of establishing a self-sufficient investment arm outside of South Africa. The choice of Bermuda as Minorco's headquarters becomes all the more important because it is a tax haven for businesses and because of its perceived image as a neutral country or an English colony. The effect of the restructuring better positioned Minorco/Anglo American to continue piecing together a global empire starting in southern Africa and including holdings in the United States, Canada, Australia, South America and England. Minorco's primary holdings are in mining and natural resources, ".... the things Anglo and De Beers know most about. "4 As (the son of the founder of Anglo American and its current Chairman of the Board, President and Chief Executive Officer) was quoted as saying at the time of the reorganization of Minorco, "If you're going to do business for the greater part outside of South Africa, I don't think South Africa is the best place to do it from. ,,5

Minorco is the Anglo group's major vehicle for investment in North America. It has over 50% equity in, or effective control of, the second tier or the major North American operating companies within the Anglo group. The major operating companies in North America include Anglo American of Canada (Amcan) and its major Canadian affiliate Hudson Bay Mining and Smelting (Hudbay) controlled 100% and 45% respectively by Minorco; Consolidated Gold Fields (Cons Gold) and its major U.S. affiliate Newmont Mining Corpo'-ation, controlled 29% and 22. 4% respectively by Minorco; and Engelhard Corporation (EC) and Phibro Corporation (Phibro), controlled 27. 5% and 27.2% respectively by Minorco. (Until April 1981 EC and Phibro were separate divisions within Eng-'1hard Minerals and Chemicals Corporation,) Minorco controls other companies with large interests in natural resources in Brazil, Australia and Zambia. Anglo American's control of its subsidiaries and affiliated companies is not organized in a hierarchal structure but rather as an associated group of companies with interlocking connections. In other words, Anglo American through Minorco or any of its other companies may have majority control of a subsidiary (50. 1% or more control) or it may have effective control of an affiliate (anywhere from 5% to 50% control) by virtue of having the largest voting block of shares of any shareholder. Effective control can also be reinforced via overlapping directorships (Table A has a partial list of some of these overlapping directorships). In effect, Anglo American gets maximum control with a minimum investment. Along with cross holdings of stock, the core of Anglo's group effectively controls each other through a complex network of direct, indirect and 'back' ownership. Table B lays out the corporate structure of the Anglo group with particular emphasis on its North American operation. The major operating companies function independently although they can call on the financial or administrative resources of Anglo American and De Beers. This continuing direction toward more independent operation is part of the 1981 reorganization plan, a stated intention of which is to include wider public ownership in Minorco, Charter and De Beers and to have a majority of non-Anglo American directors. A step in the direction of non-Anglo American directors included the addition to the Minorco board in 1980 of Walter Wriston (Chairman of Citicorp), Robert Clare (senior partner in the New York law firm of Shearman & Sterling which represents Citiban)|), Cedric E. Ritchie (Chairman of the Bank of Nova Scotia) and Felix Rohaytn (partner in Lazard Freres, an investment banking house).

The 1980-1981 Anglo group's acquisition via Minorco of Consolidated Gold Fields, Newmont Mining and Salomon Brothers have added greater depth and expertise to Anglo American's main areas of interest. These most recent acquisitions follow a pattern of investment which tends to overlap with current Anglo American lines of business. In the short term, expansion into North America will be through acquisition rather than development in spite of I., er fears that the U.S. Federal Trade Commission might go alt(r aiglo American again on ils monopolistic practices. In the, 194W's and again in 1974 De Beers was investigated by the FTC for such practices. Consolidated Gold Fields The 29% stake in London-based Consolidated Gold Fields was secretly acquired by De Beers in March 1980 on behalf of the Anglo group. De Beers promptly split its acquisition with Anglo American and their joint holding was subsequently transferred to Minorco in March 1981 in exchange for Minorco stock. Cons Gold, besides being a diversified natural resource company along similar lines to the Anglo group, with total assets in 1981 of 1788. 8 million, has its own expansion plans in the U. S. The 1981 annual report highlights, among other things, its development of "... a series of natural resourcerelated industrial businesses, particularly in the U. S." Cons Gold's further stated intentions reflect similar Anglo American thinking as well, namely, "... to significantly add to (their) mining activities in the 1980's. Gold will continue to be the Group's primary target ... the search will include silver, tin and base metals while outside the Americas, coal and uranium are being sought. "6 Newmont Mining Corporation Cons Gold's United Kingdom home became the non-South African base for an agreed 26% acquisition of U. S. -based Newmont Mining Corporation in October 1981. As of December 31, 1981, Cons Gold had acquired 22.4% of Newmont. Newmont is a major international mining house with holdings in copper, gold and energy. Newmont owns 27. 5% of Peabody Coal (the largest U. S. coal producer), it produces 20% of total U. S. gold production and it is the seventh largest copper producer in the world (fourth largest largest in the U. S. ). Newmont also has holdings in the Mining Company, Ltd. (28. 6%) and O'oKiep Copper Company Ltd. (57. 5%), South Africa, as well as a 35. 3% interest in Tseumb Corporation, Ltd. in Namibia.

The addition of Newmont to the Anglo group added geographical spread to the group's already diversified holdings in energy. Hudbay (acquired by Anglo American through Amcan in 1962) controls oil and gas production through Francana Oil and Gas as well as Trend International. Francana drills for oil in North America, the U.K. sector of the North Sea, ParaguLay and in Indonesia (through Trend International, in cooperation with Pertaraina, the state-run oil company. ) Francana sells crude oil and natural gas to refiners and diLtr;' .Lors and it receives a substantiai portion of its consolidated gross production income from its Indonesiau operations. In addition, subsidiaries of Cons Gold in the U. S. supply the oil in.Justry with drilling equipment and other supplies necessary n 01- prfcduction while Newmont Oil explores for and produc ec i i t i i U.S. Phibro Corporation On the other side of the marketing picture is Phibro, the world's largest publicly owned commodity trader, dealing in more than 150 commodities. Phibro is acknowledged to be the world's largest trader in oil on the spot market. In 1980, 50% of Phibro's total revenues of $23. 7 billion came from the sale of crude oil and oil products; no other product or material contributed as much as 10% to the company's revenues in that year. In addition, Phibro was the beneficiary of the Engelhard Mineral and Chemical Company's deal with the Hunt brothers who over-extended themselves in 1980 in their silver dealings and were indebted to Engelhard Minerals and Chemicals for a silver purchase obligation of approximately $700 million. When the Hunt brothers were called on their silver speculation by the Commodities Futures Trading Commission, Engelhard called in its debt, which was repaid by the Hunts in the form of a 20% interest in their holdings in the Beaufort Sea oil exploration area of Canada. The Anglo group's oil interest, though geographically spread out, has the potential to be a well integrated oil operation. Starting with exploration, proceeding through production (not including refining) and jumping to wholesale marketing, Anglo American, with its recent acquisitions, is set up with a good foundation to greatly expand in oil in the future. Further expansion into, and development of, energy as well as other areas of interest to Anglo American, need large amounts of capital, something which it has always had access to. It has either generated its own capital through its mainstays of gold or diamonds or has had access through such sources as its 12. 5% holding in Barclays National Bank in South Africa. Barclays National has 1, 000 branches in South Africa and is indirectly controlled by Barclays Bank International Ltd., London. The acquisition of Salomon Brothers, which is the largest private investment banking firm in the United States and is 1V9% controlled by Phibro, offers potentially new sources of capital and different ways to get at it. Salomon Brothers, as an investment banker, floats private bonds for large cciporations and serves as a financial adviser during takeovers and acquisitions. Private bond placement is generally the cheapest way for a corporation to raise funds. In this current time of rapid mergers as well as during Anglo American's expansion by acquisition into North America, Salomon's services can be particularly valuable. Anglo American's six major operating companies own important subsidiaries or affiliates in North America in their own right. The third tier of the Anglo group operates throughout all of North America. A total of 143 separate investments in North America by the Anglo group have been identified; 106 of these investments are in the U.S. (in 32 states) and 37 are in Canada (in 7 provinces). The distribution of these associated companies within economic sectors indicates a predominance in areas traditional to Anglo American. Some new areas of economic activity for Anglo American have also been identified. Of the total North American investments, 5 are in agriculture, 10 in the chemical industry, 16 in energy, 8 in marketing, 1 in investment banking, 5 in mineral processing, 24 in manufactured steel products, 9 in construction, and 23 in unconnected industries, while 8 more are trading companies and 10 are holding companies. The economic activities of 25 investments have not been determined. In energy the major Anglo American holdings are in Peabody Coal, Francana Oil and Gas and in Newmont Oil. In mining the significant Anglo American investments include Carlin Gold Mining, Foote Mineral Company and Inspiration Consolidated Copper. In steel products the leading companies are the Azcon Corporation and the Newconex Corporation. Table C provides more detailed information on Anglo American's North American investments. For each investment, Table C provides its location within the U. S. and Canada, the name of the second tier company which controls it, the percentage equity held by the immediate parent, and further information, when available, on its role in the sector. Certain non- North American companies are included in Table C if they serve as an intermediate parent for the North American holdings. While the six major operating companies are encouraged to function independently, Table C also indicates certain sectors, like oil, energy and chemicals, where there is a strong potential for common planning and intra-firm trade within the Anglo group. Conclusion The abundant natural resources of the 1970's have become the scarce resources of the 1980's. Anglo American's choice of investing in North America is no accident. North America offers a stable area, politically and economically; it is an area rich in mineral and energy resources. The sector-wise and geographic diversification of its investments will cushion Anglo American from the fluctuations in prices in any one specific natural resource. Anglo American will realize a high return on successful investments because it can export more of its profits than it could in countries with exchange controls or nationalization plans. Anglo American has placed itself in a position to become an important broker between the United States and South Africa. Through Phibro it has access to the major resource that South Africa lacks-oil. And in South Africa the Anglo group is involved in the production of not just gold but many scarce minerals in demand in the United States. As Ludwig Jesselson of Phibro put it, "This firm (Phibro) has access to all the materials that the U. S. and other industrial nations are short of now. "7 Through its controlling interest in Salomon Brothers and by having Walter Wriston, Chairman of Citicorp, on the Minorco board, Anglo American has strengthened its position in the international capital markets. Citibank is the largest U.S. lender to South Africa and the only U.S. bank with branches in South Africa. African Explosives and Chemical Industries, part of the Anglo group, recently received a $100 million loan which is being managed by Citicorp. This is one of the largest Eurodollar loans ever made to the private sector in South Africa. The implications of U.S. investment in South Africa and South African investment in the United States are integrally related. African states, through the Organization of African Unity, have called for economic sanctions against South Africa, including an embargo on oil and bank loans. Similarly, many Americans have called for an end to U. S. investments in South Africa. Anglo American's extensive investments in North America come at a time of increasing internal resistance to white minority rule. These investments significantly strengthen U.S. economic and political relations with South Africa and its undemocratic political system. Notes 1 Forbes, July 6, 1981; p. 84. 2 Financial Mail, March 14, 1975. 3 Minorco Annual Report, 1979. 4 Sunday Times, March 1, 1981 5 Economist, March 7-13, 1981. 6 Consolidated Gold Fields Annual Report, 1981, p. 10. 7 Business Week, September 3, 1979. -10-

Table A: Partial List of Overlapping Directorships in Anglo American Corporation of South Africa Agnew, Rudolph I. J. Anglo American Corp., Director Amcon, Chairman & Director Consolidated Gold Fields, Deputy Chairman & Group Chief Executive Gold Fields of South Africa, Director Clarke, J. N. Anglo American Corp., Director & Executive Director Charter Consolidated, Director HudBay, Director Minorco, Director Doull, Adrian Montieth Amcan, Vice President since 1973 Francana Oil & Gas, Director HudBay, Director & Senior Vice President (Finance) Inspiration Consolidated Copper, Director Terra Chemicals Int'l., Director Trend Exploration Ltd., Director Trend Int'l. Ltd., Director Fraser, H. R. Engelhard Corp., Director Minorco, Chief Executive Officer, President & Director Phibro, Director Terra Chemicals Int'l., Director Zambia Copper Investments, Director Gush, Edwin Peter Amcan, President & Director since 1977 Anglo American Corp., was Executive Director from July 1975 to June 1979 Francana Oil & Gas, Director HudBay, Chairman & Chief Executive Officer Inspiration Consolidated Copper, Chairman & Director Minorco, Director Tantalum Mining, President & Director Terra Chemicals Int'l., Director Trend Exploration Ltd., Director Trend Int'l. Ltd., Director

Table A (cont.) Lloyd-Jacobs, David Amcon, Chairman Concolidated Gold Fields, Director Gold Fields Mining Corp., Chairman Oppenheimer, Harry Anglo American Corp., Chairman & Executive Director Charter Consolidated, Director De Beers, Chairman Minorco, Chairman Oppenheimer, Nicholas Anglo American Corp., Director De Beers, Director Relly, Gavin W. H. Anglo American Corp., Deputy Chairman & Executive Director Charter Consolidated, Director De Beers, Director HudBay, Director Minorco, Director Taylor, C. Keith Francana Oil & Gas, Director HudBay, Director, Senior Vice President (Administrative), Secretary & General Counsel Inspiration Consolidated Coppar, Director Tantalum, Director & Secretary Terra Chemicals Int'l., Director Trend Exploration, Director Trend Resources Int'l. Ltd., Director Trend Resources Ltd., Director Thompson, J. Ogilvie Anglo American Corp., Director & Executive Director Charter Consolidated, Director Consolidated Gold Fields, Director De Beers, Director Minorco, Director -12-

Table B: Corporate Structure of Anglo American's North American Investments Oppenheimer Family \ Chartei Consolidat 36% 27.2% " Phibro Corp Phibro is the world's largest publicly owned commodity trader, dealing in more than 150 different commodities including grain, oil, sugar, ferrous & non-ferrous minerals and metals, petrochemicals and other raw materials. Before the split from Engelhard Minerals & Chemicals (EMC) in April 1981, Phibro was one of three operating divisions in EMC. Phibro's revenues had quadrupled in the last 5 years, from $5.8 billion to $23. 7 billion; its earnings went from $95 million to $467 million. In 1980 alone, Phibro's revenues accounted for 89% of EMC's total revenues. Ludwig Jesselson of Phibro was quoted in 1980 as saying, "The world needs traders. We serve as an apolitical, international clearing house for essential goods." In October 1981, Phibro bought Salomon Brothers, the largest private investment bank in the U.S. The combined assets of Phibro and Salomon totalS1. 5 billion. 8% 27. 5% ' Engelhard Corp Engelhard Corp. (EC) consists of the remaining, two divisions of Engelhard Minerals & Chemicals: (1) the Industrial Division which is one of the world's leaders in the refining of precious metals and manufacturing products containing precious metals and (2) the Mineral & Chemical Division which mines non-metallic minerals and processes them into various special purpose products. Net earnings for 1980 and 1979 were $65.9 million and $48.2 million respectively. Charles Engelhard, the founder of the company, was on the Board of Directors of Anglo American Corp before his death in 1970. Harry Oppenheimer is quoted as saying, "Just before Charlie died he proposed that we buy more shares from him so we would end up controlling his business." American Corp 38.4% De Beers Consolidated ath Africa (Anglo) 1 4% Mines (De Beers) 1 27% Anglo American[ Investment 23% Trust (Anamint) 23% 29% Consolidated Gold Fields Ltd. (Cons Gold) Anglo American of Canada (Amcan) 45% Hudson Bay Mining & Smelting (Hudbay) Amcan is primarily an investment company. Its principal asset is its holding in HudBay. HudBay is a diversified natural resources company dealing in base metals, petroleum and fertilizers. It was acquired by Anglo in 1962. It was the seventh largest Canadian oil company in 1979, Consolidated Gold Fields is primarily a natural resource company which mines and processes raw materials, mainly gold, in South Africa, Australia and North America. It also deals in construction materials and manufactures steel products. Cons Gold has a 48% interest in Gold Fields of South Africa which is the second largest producer of gold in South Africa after Anglo American. In 1979, Anglo American accounted for 38.2% of South Africa's gold production, while GFSA accounted for 6.8%. Cons Gold's total South African gold production in 1980 accounted for 12% of the world's total gold production. Trend Int'l., Bermuda Anglo American Corp of Brazil (Ambras) Zamanglo Industrial Corp, Zambia Australian Anglo American Corp Anglo American of Zimbabwe Ltd. (Amzim) Societe Imetal SA, France Zambia Copper Investments Nchanga Consolidated Copper Mines Ltd. Roan Consolidated Mines Botswana RST 22.4% Newmont Mining Corp Newmont is a diversified natural resources company engaged in exploration, development and production of copper, gold, silver, oil, gas, uranium, zinc and other raw materials. It operates the largest gold mine in the U. S. which together with other Newmont subsidiaries accounts for 20% of total U.S. production. Newmont's copper output ranks it as the seventh largest producer in the world, the fourth largest in the U. S. Newmont holds a 10. 4% stake in Anglo American's Highveld Steel & Vanadium and 55% of the Gainsberg zinc deposit in South Africa. -13- pJ z 00 44U 4-4 r'-4 0 4) 41 N 4 I-I ~ 4 -4 r-4 Ur- =3 L) .. u- 00 -4 Hu C)-C. -4 r= E-4 -4 4 u53 u 0 0 0 0 4 Hd H. H 4-d 4-4 .Li -4 d-d >, >1 $ >iC >1i 00 04)4)04) P 004 u. 4 H4) HO HO HOH .4 10 0 0 -4 VE-4l 0 0:r4) 0. 4)U 00 0 r-4 *'.4.u(al 0n (a 5.4 0 0 0 4)4) i ( z u 0 r~) ) 4E 0 41 00 H 0 H HLI 0 . M 0) ) 00 0 $4 H) $14 .,H V1 4) H (13 C H0 HO 4) C E-$40 0 4. 4 >.OH 0 Va W 00V ~ 10 ' 44 4) -. - -14-

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43 r4 ) " -4 41D 10 (ai 00 w0 (a-0 www4 4U - t4 r-4 0 4 S-A4) W) 4 to D 0 41 () UQ 0 ra 0 0t q4n 4jwi H044-4 U)43 z~ 040U U.r. -H H- toU) coH 4 . --A -4 -. I to S0 H) r- d)0 4 ft m SoH 4)0 to .. Li H 00 0 0) 0 *.0 0U) 43* H)H4H )>i H)w~ V1 )04U0 $4 0% 43 U)- ( U) -H.00(d H- 41 0) t -4 3. ) z wi U) w i H- 44- '.H 4i4 440 0 0 o 0 0 0 0 0D , , 0 CD 0 D >. .0.0.0 a0 04dPP*dP *i*j 04C 00D 0 0 0 0 0 04 00~ HH-H HUH w4$44 0 0 0 0 O L 04 0 04 03 to toE4 r V H H H HH-: g~~~ ZO ~ 0 - i ri Li 1. U)~ U1 to ). . 0 . 04~0000U 00 .0w0 . m" >UU) ItU0 0400 >4~~. U4) M PS 0 w>".00 0O .0e.e 4 (a to 0o 043 -A .,Ii V- 4141~ ..,13i 0 0 to tU) Lit)0 04 4 -25-

10 >4 0 4d) * > 1 0 0 H1 w 4J z ~a) 0 V4 0r.4 I .2 04 0 '.4 0 0 0 a. U) 04 04 0C U)n o 04 04 Ni 4.) 01 0 V0 04 0 0 o000 40W0:-0 H Hw w H o o C ..e -4 . 4 o'4J 1. 1 to 411 . 4 -40000 0 1 >00V 0 0 H- A 0 H r4 -4-40 1. 0 L 044 0 R. C 44 -26-

.0 4 a40 04 10 Le0 4U W~. o 0 >1 V 0 0 0 0 4, 4, 0 04 Z U 0 0 V H (04.) 02 *.4 Li 1.1-4 V 0 4-JO 44 4.) (420 ~ .0 V*-4 U) *.-4 04-) -4 Li HO 0 J~3 0 4.) U) VLi 4) -4 1.14) ~ 044 .00 >3 >4 .-.4H .0 .0 4, Li Li O~ 4, 4) 0 0 0 0 4.) 4-I 04 0i 0 0 00 E4 4.) 4.) 04 0 0 4J -27- E-1 -40 >0 V -0 L) 4, 4 .0 0 ao dV to. -4 "-0 AU A-4 0 r. 0 8L z z H CO 0 H 0 H E- 4.) 4. C 00) 10i 44 .J 04 OH -H00ia.r4 -4 40LA00 008ra0 1 Ow . 0 C) 0 0a-4 41 cIP 04 4) 0 - 4.) 04 La 0 C A 0 04 .) E-1 0 dP o 0a oD -4 t ?V ro 0 0 -4 to .0 d E .4) H4).4.4E-A C00r>.. 0 V4.) 0 L a 0 4 -28- Table D: Partial Listing of Subsidiaries and Affiliates of Intermediate Parents Within the Anglo Group Anglo American of Canada Ltd. Amby Services Ltd. Canada Baffinland Iron Mines Canaua Deas Lake Mines Ltd. Canada Francana Oil & Gas Ltd. Canada Lytton Minerals Ltd. Canada Minorco Canada Ltd. Canada Tombill Mines Ltd. Canada Whitehorse Copper Mines Joint Venture Canada Consolidated Gold Fields Ltd. Amcon Group Inc. U.S. Amey Roadstone Corp. of America U.S. Amey Roadstone Corp. Ltd. U.K. A.R.C. America Corp. U.S. A.R.C. America Materials Corp. U.S. Associated Sand & Gravel Co. Inc. U.S. Azcon Corp. U.S. Azcon Export Corp. U.S. Azcon International Corp. U.S. Brown Strauss Corp. U.S. Cement Products Corp. U. S. Consolidated Minerals & Metals Corp. U. S. Darius Gold Mines Canada Dennen Steel Corp. U.S. Eurcon Group Ltd. U.K. George E. Failing Co. U.S. George E. Failing Supply Co. Ltd. Canada Gilbert Merrill Steel Corp. U. S. Gold Fields Exploration Canada Ltd. Canada Gold Fields Mining & Industrial Ltd. U. K. Gold Fields Mining Corp. U.S. Hydro-Conduit Corp. U.S. Hyman-Michaels Co. U.S. King Oil Tools Co. U.S. Knoxville Iron Co. U.S. Kyle Inc. U.S. Kyle-Gifford Hill Inc. U.S. Mechanical Seal & Service Co. U.S. Newconex Corp. U.S. -29-

Table D (cont.) Ortiz Gold Mine U.S. Rich Steel Division U.S. Rockwood Iron & Metal Inc. U.S. Skytop Brewster Co. U.S. Stainless Shapes Inc. U.S. Standard Alloys & Manufacturing Co. U. S. Standard Brass & Manufacturing Co. U. S. Standard Metals Inc. U.S. Steel Service Co. U.S. Tennant C., Sons & Co. Ltd. U.K. Tennant Mercantor Inc. U.S. Unimet Corp. U.S. Union Filters Ltd. Canada Union Steel Corp. U.S. Union Tractor Ltd. Canada Union Tractor Industries Ltd. Canada Western Titanium U.S. Engelhard Corporation Chemstone Corp. U.S. Derby & Co. Inc. U.S. (a) Derby Metals & Minerals Ltd. Canada Derby Metals Ltd. U.S. Derby Distributors Inc. U.S. (a) Eastern Magnesia Talc Co. U. S. Engelhard Distributors Corp. U. S. Engelhard Industries Export Corp. U. S. Engelhard Industries of Canada Ltd. Canada Engelhard Industries International Ltd. Canada Engelhard Oil Corp. U.S. Engelhard Oil & Base Metal Corp. Canada Engelhard Oil & Gas Corp. U.S. Engelhard Ore & Base Metals Corp. U. S. Engelhard Products Corp. U.S. Engelhard Resources (Canada) Ltd. Canada Exhaust Controls Inc. U.S. (a) Intermill Products U.S. (a) Metal Transport Corp. U. S. (a) Minerals & Chemicals Export Corp. U. S. National Zinc Co. U.S. P.B. Pacific Corp. U.S. (a) -30-

Table D (cont.) Porocel Corp. U.S. (a) Socomet U.S. (a) Somex U.S. (a) S.W. Shattuck Chemical Co. U.S. Victrix Corp. Canada (a) Hudson Bay Mining & Smelting Co. Ltd. Ambay Services Ltd. Canada Beaver Exploration Co. U.S. Black Pine Mining Co. U.S. Baffinland Iron Mines Canada Caynon Fuel Co. U.S. C & S Well Servicing Ltd. Canada Deas Lake Mines Ltd. Canada Farmers Agricultural Credit Corp. U.S. Fonbec Ltd. Canada Francana Minerals Ltd. Canada Francana Oil & Gas Ltd. Canada Francana Resources Inc. U.S. Georgia Agricultural & Industrial Warehouse Inc. U.S. Grand Forks Seed Co. U.S. Hawkeye Fertilizer Corp. U. S. H.B. Holdings Inc. U.S. Hudson Bay Air Transport Ltd. Canada Hudson Bay Die Casting Ltd. Canada Hudson Bay Exploration & Development Co. Ltd. Canada Hudson Bay Marketing Division Inc. U.S. Hudson Bay Metal Sales Inc. U.S. Hudvam Mines Ltd. Canada Inspiration Coal Inc. U.S. Inspiration Consolidated Copper Co. U. S. Inspiration Development Co. U. S. Larmo Pipe Line Ltd. Canada Lytton Minerals Ltd. Canada Northern Agricultural Credit Corp. U. S. Plateau Holdings Inc. U.S. Provident Resources Inc. U.S. Riverside Chemical Co. U. S. Stikine Copper Ltd. Canada Sullipek Mines Canada -31-

Table D (cont.) Tantalum Mining of Canada Ltd. T-Bird Drilling Ltd. Terra Chemicals Exploration Inc. Terra Chemicals International Inc. Terra Eastern Corp. Terra Illinois Corp. Terra Nitrogen Inc. Terra Rain Corp. Terra Southern Corp. Terra Western Corp. Trend Exploration Ltd. Trend Holdings Ltd. Trend International Ltd. Trend Italiana Spa Inc. Trend Pakistan Corp. Whitehorse Copper Mines Joint Venture Zochem Inc. Canada Canada U.S. U.S. U.S. U.S. U.S. U.S. U.S. U.S. U.S. Virgin Islands (U. S.) Bermuda U.S. U.S. Canada Canada Newmont Mining Corporation Atlantic Cement Co. Carlin Gold Mining Co. Dawn Mining Co. Foote Mineral Co. Magma Copper Co. Newmont Exploration Ltd. Newmont Exploration of Canada Ltd. Newmont Mines Ltd. Newmont Oil Co. Newmont Oil Co. International Peabody Coal Co. Peabody Holding Co. Inc. Resurrection Mining Co. Sherrit Gordon Mines Ltd. Phibro Corporation Phibro Asia Ltd. Phibro Export Sales Corp. Philip Brothers Far East Inc. Philip Brothers Grain Inc. U.S. U.S. U.S. U.S. U.S. U.S. Canada Canada U.S. U.S. U.S. U.S. U.S. Canada U.S. U.S. U.S. U.S. -32-

Table D (cont.) * Philip Brothers Philip Brothers Philip Brothers Philip Brothers Philip Brothers Latin America Corp. Metal Corp. Oceanic Company Pan American Corp. (Canada) * (a) assumed held through Engelhard Corporation following the split of Engelhard Minerals & Chemicals -33- U. S. U.S. U.S. U.S. Canada

The Africa Fund The Africa Fund (associated with the American Committee on Africa) was founded in 1966 to provide humanitarian aid to African people struggling for independence and to work toward increased American understanding of African issues through a program of research and literature publication. The Fund is a major source of information on southern Africa and U. S. polLv for individuals as well as church, trade union, student and human rights organizations. Recent studies by the Fund include: Black Unions in South Africa by Sandy Boyer South Africa: Qaestions and Answers on Divestment by Gail Hovey Namibia: For Freedom and Independence by Theo-Ben Gurirab Ruth Kaplan is an independent economic researcher who has worked in the past with the United Nations Center on Transnational Corporations and the National Council of Churches. She is a graduate of Brandeis University. -,34-

Bibliography Canadian Key Business Directory 1982 Canadian Trade Index 1981 Financial Post Survey of Mines 1979 Financial Post Survey of Energy Resources 1979 Who Owns Whom -- North America 1981-1982 Financial Times Mining International Yearbook 1980, 1981 Directory of Foreign Manufacturers in the U.S. 1979 Moody's International Manual 1981 The World Directory of Multinational Enterprises 1980 Financial Times Oil and Gas International Yearbook 1979-1980 Standard & Poor's Directory of Corporations 1982 U.S. State Industrial Directories for: Arizona, Colorado, Delaware, California, Illinois, Iowa, Georgia, Kentucky, New York, West Virginia Annual reports for the following companies: Anglo American Corp. of South Africa 1979-1980 Chairman's Statement, Anglo American Corp. of South Africa 1970-1980 Consolidated Gold Fields Ltd. 1981 Engelhard Minerals and Chemicals Corp. 1980 Francana Oil and Gas 1979, 1980 Hudson Bay Mining & Smelting 1979 Inspiration Consolidated Copper 1980 Minerals and Resources Corp. 1976-1980 Newmont Mining Corp. 1980 Securities and Exchange Commission filings (10K's, 10Q's and proxies) were used where available for the above companies and for those listed below: Azcon Corp., Proxy 1978 Engelhard Corp., 10Q's 1981 Phibro Corp., 10Q's 1981 Articles from the following newspapers and magazines: Business Week Financial Mail, -35-

Bibliography (cont.) Financial Times Forbes Fortune Johannesburg Star New York Times Sunday Times, London The Economist Wall Street Journal -36-