TNAG-0759-FCO40-963-Manufacture-and-storage-of-explosives-in-Hong-Kong-1978 — Page 28

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CONFIDENTIAL

10.

Safety Record of Product. The safety record

;

for the manufacture of watergel explosive is quite remarkable, this applies to both companies products. Both companies have reported incidents involving handling of ingredients but neither has experienced explosion during the mixing, extrusion, packaging or handling of the explosive itself. During the four years that watergel explosive has been used in Hong Kong there has not been one incident of accidental explosion while storing, handling, using or even when destroying by burning involving any of the 1,555,000 lbs. of cartridged watergel so far imported.

11.

Product Price. As previously stated the company declined to enter into any obligation with regard to product price although they have in a previous detailed proposal to the Hong Kong Government indicated that the cost of their Hong Kong manufactured product would be of the order of 10% higher than the cost of imported dynamite.

of the product will also have to reflect the royalties paid to Ireco Chemicals for their technology and the capital investment, which, taking into account the larger premium can be expected to be higher than Du Pont's.

12.

Guarantee of Supply. I.C.I. are in a better position under their present set up in S.. Asia than are Du Pont to provide a speedy provision of alternative supply.

Information Suprlied by Du Pont (Hong Kong) Ltd.

sec Annex 'D' );

13.

The

Suitability and Acceptability of Product. range of TOVEX cartridged watergel explosivos proposed for manufacture in Hong Kong is the same as that currently imported by the company » The forecast given for 1980 production quentitios, i.., 2,180 tonnes, would be approximately double Hong Kong's own needs. Of the 1,555,000 lbs. of watergel imported by all companies for use in Hong Kong since 1974 1,361,000 lbs., 87%, has been TOVEX manufactured by Du Font.

or

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Apart from demonstration blasts supervised by Du Font technical experts the 2 dia. cartridged product has been catablished through intensive use in quarries