MINING PROSPECTS OF THE TRANSVAAL.

Gisborne Times, Volume XXV, Issue 2032, 18 March 1907, Page 1

MINING PROSPECTS OF THE TRANSVAAL.

AN ENORMOUS GOLD OUTPUT. JOHANNESBURG, Jan. 1. I lmvo often referred to the enormous and continually increasing gold yield of tho Rand. The output now oxceods two million three hundred thousand pounds worth per mouth, and seems capable of indefinite expansion, providing a sufficiency of labor and capital can bo obtained. The necessity for more labor prompted the importation of 00,000 Chinese, and the mining houses seem as yet but dimly conscious ns to the labor that, will be necessary in ordor to dovcloji and work the gold ores that can now ho regarded as in sight. Most of the gi ound is poor. Two* or tln'co years ago the averago for the whole of the Rand was -10 s a ton, or say lOdwts. It has now dropped to about 36s and scorns likely to go still lower. The lowest value on which they can work at present is about 23s on somo of tho moro easily worked mines, and there is an enormous proportion that will go as low as 2dwts., and vast quantities which will not produce moro than fdwts. Probably in course of time improved machinery or further scientific discoveries will permit of this low-grade ore being worked, hut in tho meantime it must lie where it is. Tho depth of the main reef on the Rand has not yet been definitely determined. The Turf mines put a bore down 4500 feet, and struck payable ore, but it was subsequently discovered that the borer had deflected towards the north—that is, in tho direction of tho outcrop—and they are not sure if tho ore mot with at the point where it was struck was moro than 3000 feet below the surface Roughly speaking, the Rand series may lie said to extend from Springs to Klerksdorp, a distance of one hundred and sixty miles, although there are several breaks between, somo of them of considerable size, especially on tho West Rand beyond Randfontoin. Some of the outcrop mines a’v getting worked out, and one of those, the Wemracr, a splendid gold producer in its day, is being partially dismantled, and the remaining ore bodies worked by one of the adjoining mines—the Village Main Reef. The Main Reef is dipping southerly, and broadsido on to the old outcrop mines are a number of deep-level companies. In no case, I believo, have these deep levels been found so rich as tho old ontcrops, although somo of them maintain a very high and a (cry regular quality of ore. The cost of equipment of these deep-level propositions is enormous, running into hundreds of thousands of pounds, and the results, in some instances, havo been disappointing. I could mention ono in particular which was floated o i an anticipated yield of at least lOdwts., but, unfortunately, the returns have dropped to 6dwt, although it is probable they will again improve. Tho profits amount to about £BO,OOO per annum, but they borrowed over £200,000 to complete their equipment. The life of the mine is only twenty-five years, and the shareholders will not get dividends for a considerable time. Quite a number of the development mines on the Rand have ceased development work, and thrown hundreds of skilled workers out of employment. The mining huusos assert that -rheyeannet raise'the capital necessary for completion owing to the unsatisfactory condition of tho labor market and tho uncertainty of obtaining an adequate supply of rough labor. They contend that European financiers will not subscribe moro capital until the industrial condition of the country is definitely settled. It is impossible to look into the minds of European financiers, but there are some who think that the chief diffierdty in raising money is dissatisfaction with the tactics of tho promoters of the companies, who have boon apt to take too much profit in advance by wateri ,g the capital. Whatever the reason, there are not wanting many signs to show that the flow of capital to the Rand, which was so large in volume before the war, is now shrinking to such an extent that before long it may dry up altogether. EFFECT OF THE WAR ON MINING. I am inclinod to the opinion that the war itself was very largely responsible for the restriction in the inflow of capital. Before the war there shareholders in a very great number of the mines, and especially in the dividend payers, were spread throughout the United Kingdom and the Continent of Europe, and a very large proportion of the shares were held by small investors. With the war came a cessation of dividends and a great fall in values. These small investors, who had come to regard Rand gold shares in the same light that they regarded Government, bank or railway stocks, received a shock. They were frightened and became distrustful. During the last months of tho war prices rose steadily, but the buyers were specidators and not investors. Immediately peace was arranged there was heavy professional selling, possibly a market manipulation was being attempted, and the small speculators lost heavily. There have been one or two reactions since then, but the general tendency was downward, and those who were responsible for the heavy selling immediately op the tormipatipn of tho war have not been able to set the market up again. Almost without exception the only persons who have made money on share dealing since the war havo been the sellers,the “bears,’ whilst scores, I may say hundreds, of small speculators havo been ruined. These conditions have operated still further on tho minds of the European investors, and South African gold stocks have got out of favor. The big jobbers and financiers are merely merchants who buy to sell again, and if the general public will not buy they are not likely to fill up their warehouses with goods. It has been a practice for many years to float these companies on insvificient working capital. promoters' and vendors.’ shares are issual a* the same time, and profits are made by market manipulators. In course of time, as development proceeds, the working capital becomes exhausted, and a reconstruction takes place, often with a further watering of share capital. .During the last year or so these reconstruction arrangements have been rendered difficult owing to the reluctance displayed by tho European investors in furnishing fresh capital, and finally things have reached a deadlock. Quite rocently the General Mining and Finance Corporation, which controls some six or seven mines, besides having a lot of mining properties in various stages of development, made an arrangement with a number of Berlin bankers, who, it may be presumed, had formerly been supplying it with money. These banks have now joined in the enterprise by subscribing for a great number of shares in the General Mining and Finance Corporation, and their representatives have gone on the Board, so that this one-Corporation will be able to supply its subsidiary companies with what capital they require. The head of another influential mining house re-

—t ~t : "it ”• contly paid a hurried visit,L .Europe on wliafc tho] papers auiioiuicod as private busiubss. it has (low been stated that lie was endeavoring to raise further capital for tlH> concerns in which his company is interested; lint, was unsuccessful. This company lias boon dependent, to somo extent, 01 Krone]) capital, but ijio spring seems to bo closing up. v miS CIO I/D PRODUCTION. WbbUipr the mining bouses are able to 'obtain ample funds or not, the gold production will not suffer, but will still increase, although not to such'nil extent as it would, were the large properties, now in the development stage, able to enter into the list of gold producers. Four years ago I mentioned that the gold production, which, before the war, bad readied a yield value of sixteen millions per annum, might within five years swell to thirty millions. 'l’lie total yield for ..908 was 5,780,017 ounces of fine gold valued at £24,579,987, and the increase for the 1 year was 889,397 ounces, .valued at £3,777At this ratof'bi increase the thirty millions will sooit he reached, and the industry is still suscep-* tiblo of indefinite expansion, but I do not anticipate ~-an.y; considerable inflow of capital Tor FtirtSor'development until confidence is again restored. Confidence that the Government of the country will bo conducted on sound, progressive lines; confidence that the interests of the investing public will be protected by those to whom they confide their money. Tj-F, BARBERTON MINES. If it is difficult to raise a sufficiency of capital to proceed with the mines in process of development on the Rand, it is obvious that mineral properties in other parts of the Transvaal must suffer to a much greater extent. In the Barberton district it lias always been a cause of complaint that its progress was arrested and its chief industry compelled to languish because nil the available capital was attracted to the Rand. In Barberton all the oro workings, nearly the whole of which are quartz, are patchy. There are some banket lodes, but these are very poor, and will not pay for working during the life of this generation. Barberton quartz is very variable in quality, and the majority af the companies which have been operating there have not enjoyed a very happy existence. Barbortonians can always furnish good and sufficient reasons why every mine has been compelled to cease working, and From this point of view it has never jeen because of the quartz being too loor. It lias been a talc of somo mismanagement, or bad luck, or somelung of that sort. Very frequently die big mining houses are blamed joeauso they have diverted capital n the direction of the Rand. Baricrton was a gold producer before die it a lid was discovered, and 20 rears ago it was regarded as likely ,o produce more gold than the Rand. >ut the rapid succession of absentees : rom tho list of gold producers has •educed it now to a, condition in vhich somo half-dozen mines ropro;ent the whole of the gold producers, larberton is on -the borders of Swaziland, and here also gold is bund in many places, and one company at Pigg’s Peak is working, larberton is probably the only part if South Africa that is reminiscent >f Australasia, and, to somo extent, if old California. You meet with amijiar names for townships as tvooa, Eureka City, and Jamestown. The streams • there are called creeks, ind all the okl Australian nonicnilaturo is adhered to. Stretching rom Barberton through Swaziland, ind then qn to Zululand, there is nore gold in different pn.rts, also itream tin, and a number of other ninerals. Going north, gold is mot with in lie Lydenburg district. There is lie old Pilgrim’s Rest goldfield, vliere even now alluvial miners are requcntly heard of as making a ;ood thing, chiefly working on trimte on behalf of tho big corporaions, who own nearly everything. Juite a number also are employed ilirougbout the Lydenburg district lollying quartz from thin lenders, vhich are very rich at times, but nostly very poor. There are some larger mines in ibis district in various stages of inmition endeavoring to reconstruct ir get fresh capital, and one or two ;ood ones. Further north there is :opper in larger quantities, and nan.v ancient copper workings, and illuvial diamond areas of consideviblo value. Still further north, in die Letaba district, there is again jold and copper, and numerous rtlier minerals, exliaustless wealth, jut no present means of working. In Pretoria district diamonds arc igain found plentifully, and in the Pietersburg district we have a repetition in some form of Barberton experiences. Here also gold is found in all directions, amongst the mines being the oldest one in tlie Transvaal, the Ecrsteling. It is extremely rich in patches, and lias been worksd in a desultory manner for the last 20 years. Two or three mines arc still working in various parts, but blio returns are uncertain. There is also some alluvial and a great number of the old machine houses with plant, whilst the reefs can he seen crossing tlie country rock at all points. Some of these carry fairly payable gold, others are poor, and active operations may be regarded as suspended. Still further north, and going towards the Limpopo similar experiences arc met with The whole country is dotted with mines or mineral deposits. Most of the latter arc being prospected in r perfunctory manner, or else hnv< been abandoned. No conditions fo; working are enforced in tile Trans vaal. People who peg claims hav< to pay half a crown a month pm claim license money, and small syn dicatcs or individuals take up these areas, pay tho claim licenses, and look round for someone to huv then out at a big profit, an eventuality which does not often occur, espoei ally in these dull times. In tin course of time they get tired of tliif continual paying, and the property reverts to the State, and is again pegged off and taken up by som< other party, and tho same old story continues. THE TRANSVAAL MINING LAWS Tlie laws which govern the holding of minerals lands, and especially gold, as I know them in other parts of the British world and in Afnerica. do not obtain here. No efforts seem made by the State to enforce working Were holders compelled to work oi surrender their holdings, and simultaneously with this the license fees reduced to a nominal figure until the producing stage is reached, we would, I think, have numerous small parties of miners and companies with five or even ten stamp batteries working in scores of directions. They might not materially swell the gold output, even as compared with one of tho large Rand companies, but they would establish small centres of industry wherever they are located, and give a great impetus to agriculture and small trades, and materially assist in increasing the prosperity of the conn/, try. As it is, we )iave one hiye oj'

OTHER MINERAL WEALTH. Throughout the Transvaal, and especially in the eastern portion of the High Veld, there are numerous coal deposits. The coal is very rarely of the highest quality, hut in quantity it seems inexhaustible. Ordinary farm land known K> con Lain eoal can ho purchased at from £2 to £3 per acre, and it is difficult to find buyers. The,, iron deposits are also numerous, and .other metals and minerals are met with. Tin, zinc, cinnabar, and even asbestos and mien. One cannot travel twenty miles in the Transvaal in any direction without meeting indications of mineral deposits or of gems. It is impossible in these few lines to give an adequate idea of ils enormous wealth. ■ : In the-Northern Transvaal the Statpifowiis something like twelve rriillion acres:‘Yr.-A 11 the rest of the country has been "alienated, and-is divided into farms.- A'Several of the old Dutch farmers are wealthy, and own considerable areas, but the largest individual owners are the land and financial companies, lisqmc of which are domiciled here, < and others in England.- One company owns about two million acres, and it is doing little or nothing with it. The present developed mineral wen Ith of the Transvaal is only a very small percentage of the undeveloped wealth already located, and almost every month fresh discoveries of various kinds are being made. Tlie material potentialities of the country are enormous, incalculable, but tlio problems of tlio country are also very great, and some solution of these must be accomplished before the Transvaal occupies that position to which its vast natural resources entitle it.—Auckland Star.