Brinco Mining Limited

Ore Reserves

Based on the current open pit design, ore reserves as of
December 31, 1984 are now calculated to be 6.3 million
tonnes, having an average core reading grade of 6.9
percent with an average stripping ratio of 1.03 bank
cubic meters per tonne of ore. (1983 figures were 7.4
million tonnes, 6.85 percent grade and 1.14 bank cubic

meters per tonne of ore).

Marketing

Free World consumption of asbestos fibre remained fairly

static at 1.4 million tonnes in 1984 compared to 1982 | bit bil btirel io

levels which had dropped sharply from 2.1 million tonnes
consumed in 1980. Canadian fibre shipments in 1982

were 880 000 tonnes, a decline of 400 000 tonnes from
1980 levels. Canadian shipments have since stabilized

and were 812 000 tonnes in 1984, a 15 000 tonnes increase
from 1983. The substitution of other products for

asbestos has had a major impact in the market for the
shorter fibres and a slight impact in the asbestos cement
market where the bulk of Cassiar fibre is sold. Although
further substitution will remain a threat in the future,
conversions have been slow and in some cases efforts have
been postponed due to the cheaper asbestos prices

which now prevail.

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DI Torat Brinco

Installed Free World production capacity remains
unchanged from 1980 levels at 2 million tonnes, and

the U.S.S.R. still remains a major supplier to the Free
World market providing in excess of 300 000 tonnes per
annum. Consequently, Free World production facilities
have, in the aggregate, been operating at less than 60
percent capacity.

Fibre prices weakened throughout the year reflecting the
over-supplied condition of the market. However, Cassiar
continues to maintain its market share, selling 95 percent
of capacity and this above-average performance reflects
customer loyalty to the high quality Cassiar fibre.

Fibre prices will remain under intense pressure in 1985,
a condition which will not improve until some portion of
production capacity in the Free World is permanently
closed.