Union Minière du Haut-Katanga

I. Directors' Report — Extraordinary General Meeting

An extraordinary general meeting of the shareholders of the Union Minière du Haut Katanga was held in Brussels on [date], M. Jean Jadot (president of the company) being in the chair.

Shareholders representing 219,814 shares were present.

The report of the directors to the shareholders was read as follows:—

Gentlemen,—The reports which we presented to you at the general meetings of July 14, 1919, and July 12, 1920, gave you an idea of our industrial activity during the period of the war, from 1914 to 1918, as well as during the year 1919.

In those reports we explained to you the reasons which prevented us from submitting to you the accounts for the years 1914 to 1919 on the dates laid down by our statutes.

We have convened this meeting today in order to submit for your approval the definite balance-sheets and profit and loss accounts relating to those years.

Balance-Sheet at December 31, 1918 (Covering the Five Years, 1914 to 1918)

Before examining the various items of the balance-sheet at December 31, 1918, we have to point out that the form of our balance-sheets has been modified so as to show more distinctly the amount of our capital expenditure.

Thus, you will find on the assets side of the balance-sheet the whole of the amounts expended on capital account since the beginning, and on the liabilities side, the reserves provided out of profits which are shown under the headings of premium on share issue, ordinary depreciation fund, and extraordinary depreciation fund.

In this new form, an examination of the balance-sheet suggests the following remarks:—

Balance Sheet at 31 December 1918 — Assets

Balance Sheet at 31 December 1918 — Liabilities

II. Profit and Loss Account 1914–1918

Distribution of Profits for the Five Years 1914–1918

III. Profit and Loss Account 1919

Distribution of 1919 Profits

Note: The directors state that the 1919 results 'may be considered as satisfactory.' The dividend of 50f. per share for 1919 compares with 150f. per share for the entire five-year period 1914–1918 combined (i.e., 30f. per share per year on average during the war years).

IV. Production Data — Monthly Outputs 1919 and 1920

Notes: (1) May 1919 production reduced on account of a strike of black workmen which lasted about 15 days. (2) The unsatisfactory results for March, April and May 1920 were due to a strike on the Rhodesian railways which broke out in March and seriously affected fuel supplies. (3) September and October 1920 copper production affected by a strike of the bulk of workmen which resulted in complete stoppage from 5 September to 5 October, when work was partially resumed. Strike due to 'the instigation of a foreign agitator who, for reasons of public order, had been expelled from Katanga a short time previously.'

V. Capital Increase Proposals

The financial position. The balance-sheet at December 31, 1919, shows that, irrespective of our debenture debt, our liabilities towards various creditors amount to more than 80,000,000f. This confirms what we explained to you at the general meeting in July, i.e., that it is imperative that we should obtain fresh resources in order to meet the heavy capital expenditure and also to provide working capital.

We have considered in what manner these resources could be created, and, in agreement with the Comité Spécial du Katanga, we beg to submit the following proposals:—

ANALYTICAL NOTE: Article 6 of the proposals makes explicit that, in agreement with the Comité Spécial du Katanga, the company transfers to Tanganyika Concessions Ltd: (1) the result of investigations, plans, reports and documents made by engineers and prospectors employed in discovery and exploration of mines; (2) all rights, powers and advantages of every kind specified in the convention-agreement. This is the most explicit statement in the archive of what Tanks received in return for its founding stake — not merely an equity interest but the entire intellectual and legal property of the exploration work. This is the concession structure that made Tanks a permanent participant in UMHK's mineral governance.

VI. Subsidiary and Operational Developments

Reconstruction of African Organisation

As we informed you in our report to the general meeting in July last, the work of reconstructing our African organisation, which was begun in 1919, has been actively continued during 1920. We have been obliged, in particular, to modify and reinforce substantially our management in Katanga. Mr. Sengier, our manager in Brussels, will start in a few days for Africa in order to ensure that the reorganisation is in conformity with the views of the board.

ANALYTICAL NOTE: Edgar Sengier is here identified as 'our manager in Brussels' being dispatched to Africa in late 1920. This is the earliest reference to Sengier in the archive — he becomes the dominant figure in UMHK's management throughout the 1930s, appearing as administrateur-délégué in all the 1930–1933 annual reports. His deployment to Africa in 1920 to 'reinforce substantially' the management following post-war disruption marks the beginning of his central role.

Syndicat Immobilier du Katanga

With a view to arriving at a successful and rapid solution of the difficult and important problem of the housing of our staff in Africa, one group has taken a large participation in the 'Syndicat Immobilier du Katanga,' which has been created under the patronage of the Comité Spécial du Katanga. This syndicate will immediately proceed with the necessary preparations for the constitution of a Land and Building Co. (Société Immobilière).

Société Générale Métallurgique de Hoboken

In order to facilitate the disposal of our products in Belgium, and with a view to enabling us to supply Belgian consumers with the refined copper they require, we have come to an arrangement with the Hoboken Metal Works, who will be able in a short time to undertake the refining of a good proportion of our rough copper.

In order to bring us into closer relations with this company, we subscribed on its formation for a participation in its capital of 10,000 shares, at 5,000,000f.

During the year 1920 refining tests have been begun at Hoboken and have given encouraging results. During the last few months about 25 per cent. of our production of rough copper has been converted into refined copper.

ANALYTICAL NOTE: This is the founding moment of the Hoboken relationship that appears throughout the 1930–1933 reports as a major subsidiary generating dividend income for UMHK. The 10,000-share participation at fr. 5,000,000 in 1920 had grown to a 50% capital stake generating 'notable' profit contributions by 1933. The network was being actively constructed in this post-war period.

Tin Concessions

The investigations made on our tin concessions during the last few months have proved that our tin mines are sufficiently important to be operated by a special and experienced organisation. Therefore, in agreement with the Comité Spécial du Katanga, we have decided to create a new company, which will be formed with a capital of 10,000,000f., almost all of which will be retained by our company. The latter will grant to the new concern the right to extract 10,000 tons of cassiterite from certain mines to be determined. This operating company will be formed very shortly.

VII. Labour Disturbances — Analytical Notes

Three separate labour disturbances are recorded in this document, each with distinct characteristics:

ANALYTICAL NOTE: The framing of the 1920 UMHK workers' strike as the product of 'a foreign agitator' expelled 'for reasons of public order' is the earliest instance in the archive of the company deflecting labour unrest onto external provocateurs rather than addressing its underlying causes. This formula — labour action as externally instigated rather than legitimately motivated — anticipates the paternalistic narrative management visible in the 1930s reports, where workforce reductions are framed as welfare improvements and labour conditions as 'entirely satisfactory.'

VIII. Tanganyika Concessions Agreement — Article 6 Details

The capital increase proposals include the following explicit statement of the Tanganyika Concessions relationship under Article 6 of our convention-agreement with the Comité Spécial du Katanga:

ANALYTICAL NOTE: This is the clearest statement in the entire archive of what Tanganyika Concessions received in exchange for its founding role: not merely equity but the entire body of exploration knowledge, mineral rights documentation, and legal advantages built up by Williams's prospectors from 1899 onwards. UMHK received the capital and the concession territory; Tanks received perpetual dividend shares and the intellectual property of empire-building. The transaction structure meant that as UMHK grew, so did Tanks's income — permanently and without additional investment.

IX. Key Financial Metrics — Six-Year Period 1914–1919

Source: 'Union Minière du Haut Katanga — Accounts Presented for Six Years Ended 1919 — The Directors' Financial Policy Unanimously Approved', The Financial News (London), Nr. 1146. Hamburgisches Welt-Wirtschafts-Archiv, signatur YW 4300, stamped 1 November 1920. Transcribed by A. Primmer.