Part 5
“Undoubtedly one of the factors which has delayed the opening up of the tin fields of Nigeria has been the question of economical transport. But the Nigeria tin is of very high quality. It fetches, as a rule, anywhere from £6 to £8 more a ton than Cornish tin, and in this connection I should like to read an extract from a letter which was written to me by the managing director of the largest tin smelting works in Europe, to whom I sent a sample of the tin oxide as it was received here, and of which, in acknowledging it, he says, ‘It is about 75 per cent. metallic tin, of excellent quality, equal to anything being put on the market, so far as my observation goes.’ I am very closely connected with Cornish mining, and there we get Bolivian, Straits, and all kinds of tin, and it is the general opinion that Nigerian tin is one of the very best tins imported into Europe, and will always command a price equal to, if not better than, that of the Straits. Even under existing conditions alluvial tin mining in Nigeria is a highly profitable business, but when the present railway system is completed, and the road made from the Government line to the tin field, the freight should be reduced by many pounds per ton, and the profit largely increased. The completion of the road would enable heavy machinery to be brought to the mines, when larger quantities of the rich alluvial ground would be handled in an economical way, and the work done at a cost much below what is possible under existing conditions. The lodes, too, of which there is undoubted evidence, could be worked. Meanwhile some machinery can be transported in sections, and the output of tin should be rapidly increased and the costs greatly reduced.”
Mr. Assheton Lever, in summing up the situation generally in Northern Nigeria to a meeting of shareholders, said:
“We know that there are considerable areas there which in some cases are very rich in alluvial tin. There are also tin lodes there; but that for the present is another story, because alluvial tin is a thing which is easily and comparatively inexpensively worked, whereas to work a lode mine requires good means of transport, and to be able to get up to the mines easily expensive and heavy machinery. We have a good climate, we have a sufficiency of water, and so far as we can ascertain, we have a sufficiency of native labour. All the companies which are interested in Northern Nigeria appear anxious to co-operate, and are willing to work together generally for their mutual benefit, and for the tin industry in particular.”
Mr. H. W. Lake, the consulting engineer, speaking in a professional capacity at the same meeting, referred to the phenomenal richness of the river banks in the tin district in Northern Nigeria, while very rich alluvials are found on the flats, and when it comes to investigation of the river banks themselves very much larger quantities of black tin to the cubic yard are won. “I am speaking now,” he added, “from a certain amount of experience, because four years ago we had an expedition in the Bauchi district, and our engineer obtained some quite remarkable results from the alluvial. Of course, it is a new country. There is a great deal of pioneering work to be done, and what we have still to look forward to is steady systematic organisation for the next year or two. We do not want to make the mistakes that have been made in the opening up of many new countries—some of them not very far from Nigeria—but we do want to settle down to steady systematic development. As far as the railway is concerned, there seems no doubt that we shall have a line into the tin fields, which is going to simplify the question of transport, and reduce the costs very materially. With regard to the actual working of these alluvials, to begin with, I am of opinion that we should use the simplest methods possible—ground sluicing and so forth, but there will come a time when we shall have very seriously to consider the question of hydraulicing and treating these alluvials on a very much larger scale than would be possible by means of sluicing.”
A DISTRICT FULL OF NARAGUTAS
The extraordinary results obtained by the Naraguta Company might be regarded as exceptional, since it was a proved mine when taken over from the Niger Company, and the actual work done upon it has only confirmed what was previously known of its phenomenal value. But it may be said with great confidence, after careful examination, by not one, but many engineers, that the picture is not in any degree overdrawn. Moreover, the head of a great firm of mining engineers who was inclined to ridicule the values reported, has since admitted that he has altogether changed his opinion, and that he thinks from advices he has received, that the Malay Peninsula fields, even in their palmiest days, were never “in it” with the Northern Nigerian alluvial tin fields. In one place tin has been taken out, on the Dubbo property, belonging to the Lucky Chance Mines, extending over 640 acres, which actually goes 120 lbs. to the cubic yard. That is to say, that the calabashers must be getting out tin almost pure. This may be only a pocket; but the whole character of the reports from the fields makes it perfectly certain that the general nature of the Bauchi district, where the alluvial tin is mostly found, is of an absolutely phenomenal character.
There is no doubt whatever that in this remote district of Nigeria, which until a few years ago, was closed to the white man by the ferocity of its inhabitants, nature has been concentrating tin for thousands and tens of thousands of years, until we have it now in very large quantities in an almost pure condition. To Sir Percy Girouard is largely due the honour of opening up this country, through the discipline he and his subordinates dealt out to the original inhabitants. To his successor, Sir Hesketh Bell, fell the duty and the honour of opening up further the country by a railway system which will make it a great Imperial acquisition.
The work of Sir Percy Girouard and Sir Hesketh Bell may be specially referred to, for they represent the Imperial Government; but we must not forget the work of the directors of the pioneer companies in London, who must have worked continually to do what they have done. In the short space of only twelve months they have accomplished an amount of work which ordinary directors without enthusiasm would have taken years to do. The country has been searched for good properties, engineers have been despatched and machinery ordered, and such is the good work done in a small way with high values, that it is no exaggeration to say that many properties are now paying their way. All has been so swiftly done, and with so little fuss, that it seems like a fairy tale, and the public have no conception yet of the extraordinary value of these alluvial tin propositions in Northern Nigeria.
POLITICAL AND COMMERCIAL OUTLOOK
It is satisfactory to gather from the report of the acting Governor dated 11th December last, that the year 1909 was a very peaceful one, the military operations which it was found necessary to carry out being on a small scale, and chiefly on account of highway robberies. From all the Provinces it is reported that the general feeling of the Emirs and native chiefs towards the British Administration continues to be most friendly. They are beginning to show an intelligent interest and zeal in the political work, and political officers are receiving support in any scheme proposed for the improvement of the Native Administration. The people show signs of wishing to be on friendly terms with the Government, and the agricultural classes are feeling a sense of security which enables them to spread out in all directions and take up new holdings. Their present position is described as “one of progressive tranquillity and content.” The inter-colonial traffic in slaves has already ceased; local slave-dealing is not entirely stamped out, but it is not extensive, and last year 1,392 slaves were freed, practically all by means of native courts, the majority of these ex-slaves being self-redeemed.
The cultivation of food stuffs has increased; new markets have been established, and the present safety of the roads has greatly stimulated the internal trade of the country. A great improvement in the export trade has followed the extension of the Baro-Kano Railway. To the north of Minna there is a most extensive area of shea butter trees, but very little of the produce of this area has so far been placed on the market, partly on account of the cost of transport, and partly owing to the reluctance of the pagans to have intercourse with markets outside their districts. The construction of the railway has done much towards gaining the confidence of these people, and the reduction in the cost of transport, consequent upon the completion of the railway, will render it possible to place profitably this sylvan produce on European markets. Further north the railway will pass through the rich agricultural and stock-raising Lausa provinces, which at present export live-stock, skins, and potass by means of annual caravans. The idea that Northern Nigeria is an especially unhealthy place for European residents is scarcely borne out by the total death-rate of roughly twenty per thousand, calculated on the average resident European population; but the proportion of officers invalided home is still large, though it is much smaller than it was a few years ago, when less satisfactory sanitary conditions prevailed at the stations.
Although the addition of the Nigerian Protectorates to the Empire is primarily due to the prescience and enterprise of the Niger Company, that corporation has no monopoly of trade within their boundaries nor any special advantage over other traders. It takes its chances against rival firms in the many spots in which it comes into competition with them. At Gana Gana, for instance, the company’s first station beyond Burutu, the German firm of Bey & Zimmer has a depôt. John Holt & Co., E. H. Stern & Co., J. T. Palmer & Co., Pagenstecher, and the British Cotton Growing Association are all represented in Nigeria, and the firm of G. W. Christian & Co. has established important trading stations at most of the principal towns on the river. As recently as 1904 Messrs. Christian started operations in Nigeria at a small place named Proropro on the left bank of the Niger; to-day they have branches at Forcados, Burutu, Onitsha, Illah, Illushi, Idah, and Lokoja, and at all these centres they not only conduct a large cash and barter trade, but undertake equipments and accept commissions, and cater in every way for the requirements of both Europeans and natives. The extraordinarily rapid rise and progress of this firm is almost entirely due to the exceptional qualifications for the trade possessed by the principal, Mr. George William Christian, who was born in Liverpool in 1872, and who, from the early age of fifteen has been associated with West Africa, and in twenty-five years has acquired a thorough experience and first-hand knowledge of the British and native needs of the Protectorates.
PARTICULARS OF COMPANIES WORKING TIN PROPERTIES IN NORTHERN NIGERIA
CHAMPION GOLD REEFS OF WEST AFRICA, LTD.
_Capital._—£50,000, in 200,000 shares of 5s. each; all are issued and fully paid.
_Directors._—S. R. Bastard (Chairman), F. N. Best, Sir Horace C. Regnart, John Waddington.
_Secretary._—Newman Ogle.
_Offices._—Friars House, New Broad Street, E.C.
To this company belongs the credit of being one of the first to appreciate the almost unlimited opportunities the tin fields of Northern Nigeria offer for the employment of British capital. It is not surprising, therefore, that it has to-day, not merely one finger, but the whole of its digits in the Nigerian “pie,” from which it has already pulled out a “plum” in the shape of a dividend of 100 per cent. paid in March last. It is not always the pioneer in a new mining field who strikes the richest areas, but under the guidance of its highly capable engineers, Champion Gold Reefs of West Africa obtained exclusive rights over some properties and interests in options over others which promise a magnificent harvest in years to come.
It was in September 1909, that the company decided to abandon gold mining in Ashanti and devote attention to tin mining in Northern Nigeria. What were described as “very extensive alluvial tin areas” were acquired on September 20. In a circular to the shareholders, dated October 6, it was stated that the work carried on by the Niger Company, and the investigations of mining engineers in the district had “proved the existence of very rich alluvial ground, and already upwards of 1,000 tons of black tin, won by means of calabashes and sluice boxes, had been shipped.” It was further stated that on one of the properties, over which the company had exclusive rights, there was a waterfall of 480 feet, which would secure cheap and ample power; that the properties were situated some 3,500 feet above sea-level, and the climate was good; that the district was thickly populated, and the natives willing and anxious to work.
The first members of the staff sailed for Northern Nigeria on October 6, and were followed a month later by Mr. Charles G. Lush, the well-known expert on the working of alluvial tin deposits. Mr. Lush was to advise as to the best method of developing the company’s property, which was then stated to be 13 square miles in extent. Parenthetically it may be mentioned that other suitable areas were afterwards taken up and several handed over to subsidiary concerns. Mr. Lush first went to the Juga and Sub-Juga properties, and the first communication received from him was the following cable, dated Bauchi, December 17: “Have visited Juga, am very favourably impressed. Up to the present time proved alluvial extends over 200 acres and averages 9 feet; alluvial contains 4s. per cubic yard; the value of stream tin, £600,000. I will visit Sub-Juga this week.” On December 22 he again cabled as follows: “Sub-Juga—Have visited, am very favourably impressed. I consider admirably adapted for the Australian method of working. It will be necessary to erect a dam; will make survey and report upon. Alluvial extends over 500 acres and averages 9 feet. Estimated value of stream tin, 2s. 6d. per cubic yard.” From these and other communications subsequently received it was evident that Mr. Lush had been most favourably impressed with the field generally, and with the value of the Champion Gold Reefs property in particular.
Four subsidiary companies have been formed to date, viz.:
Naraguta (Nigeria) Tin Mines, Ltd. Lucky Chance Mines, Ltd. Juga (Nigeria) Tin and Power Company, Ltd. Tin Fields of Northern Nigeria, Ltd.
The Naraguta (Nigeria) Tin Mines is not only a productive concern, but one that has already entered the dividend list, 1s. per share having been distributed. The property was originally five square miles in extent, but the area has since been extended. It was held under option by Champion Gold Reefs, who transferred their option to the present company. The purchase consideration paid to the Niger Company was £50,000, payable as to £30,000 in cash and £20,000 in fully-paid shares. The Government and the Niger Company are together entitled to a royalty of 10 per cent. on the profits. Before the present company was formed the Niger Company obtained from the Naraguta property over 1,000 tons of tin concentrates, and it is stated that in one square mile of the property, which has been systematically tested by pits, there are 10,000 tons of black tin awaiting extraction. Up to the present time, the ground treated has produced tin to the value of £3,000 per acre, whereas in other countries, such as Australia and the Malay Peninsula, £1,000 per acre is considered phenomenal. Some of the ground gives fully 5 lbs. of tin to the cubic yard. There can be no doubt that Naraguta is going to be one of the “gems” of the district.
The Lucky Chance Mines, Ltd., was originally formed in May, 1905, to acquire property in New Zealand, but at the end of 1908 only seven shares had been issued, and the paid-up capital was £5 5s., the company having no assets or liabilities. Towards the end of last year, however, it was placed on its financial legs by the Champion Gold Reefs of West Africa. The latter company sold certain of its tin areas to the Lucky Chance Company for 200,000 shares, and agreed to procure the subscription of 8,000 further shares. To-day the Lucky Chance Company is a robust and ably-controlled enterprise, with excellent prospects of development. Its properties comprise nearly 12,000 acres. The South Juga property has recently been sold to the Juga (Nigeria) Tin and Power Company for £10,000.
The Juga (Nigeria) Tin and Power Company owns what is known as the Juga property, which is situated on a plateau 3,280 feet above sea-level, having a total area of 1,600 acres, and the Sub-Juga property, which lies upon the lower plateau immediately below Juga, the area in this case being 6,720 acres. As already remarked, the South Juga property has recently been added. Mr. Lush estimates that 200 acres of the Juga property will be highly payable. For the purposes of his estimate, he took the average depth as 9 feet, which, extending over 200 acres, equals 2,904,000 cubic yards, each cubic yard containing 6 lbs. “In valuing the ground at 6 lbs. per cubic yard,” Mr. Lush said, “I am not taking into account only the high results obtained from some of the bottom wash, but am reckoning it as a whole. I do this because working results may prove that the wash does not extend over the whole 200 acres, but the gravel does, and I feel confident will average what I state.” In a similar way he estimated that the Sub-Juga property would yield 3 lbs. per cubic yard over 5,808,000 cubic yards.
Tin Fields of Northern Nigeria, Ltd., is a company owning eight square miles at Federri and nine square miles near Dila River, both in the Bauchi Province.
In addition to having floated these companies—in which, of course, Champion Gold Reefs retains a large interest—the company has also large holdings in the following concerns:
Northern Nigeria (Bauchi) Tin Mines. Anglo-Continental Mines, Ltd. Anchor Diamond Mines.
It also still owns a lease over five square miles in Ashanti.
NARAGUTA (NIGERIA) TIN MINES, LTD.
_Capital._—£175,000, divided into 175,000 shares of £1 each, of which 158,500 are issued and fully paid.
_Directors._—Frank N. Best (Chairman), H. C. Godfray, Herbert Moir, John Waddington, H. Bousquet, H. S. Reitlinger.
_Secretary._—Newman Ogle.
_Offices._—Friars House, New Broad Street, E.C.
This company owns an area of 3,200 acres at Naraguta, and two further blocks known as the “C” and “Q” areas of eight square miles. It was formerly worked by the Niger Company, who won from the alluvial beds its 1,000 tons of tin concentrates. The company was registered on 15th January, and the property was taken over on 4th February. Mr. C. G. Lush, the company’s consulting engineer, has inspected the property, and has stated that on the Naraguta property they had ground which would give fully 5 lbs. of tin to the cubic yard. He further reported that ten acres had already been treated and given that result, which could be taken as a very fair prospecting whole.
The returns up to and including the month of October 1910 amounted to a total of 350 tons of tin oxide made up as follows:
1910 Tons February 28 March 34 April 36 May 36 June 37 July 44 August 45 September 45 October 45 --- 350 ===
Good profits can be, and are being, made under the present primitive methods in use, but the greatly increased profits to which the management is looking forward can only be secured by adopting the most up-to-date machinery, such as is used in Tasmania and other countries. In order to assure success experienced men are being brought from Tasmania by the Champion Gold Reefs group, and the Naraguta Company will have the benefit of their advice.
At the statutory meeting in April last the chairman stated: “We have the proud distinction of owning the property from which the first shipments of tin were made—not only that, but one of the richest out there, and I am quite confident this company can look forward to a very successful career. The extent of our property is four square miles, one mile only of which has been thoroughly prospected, and calculated to contain 10,000 tons of tin oxide. At the present market price of tin this should yield over £500,000 profit. Our engineer tells me that up to the present time every acre of ground so far treated has produced tin to the value of £3,000, whereas in other countries, such as Australia and Malay, £1,000 per acre is considered phenomenal: therefore, I consider we can congratulate ourselves upon being interested in such a unique proposition.”
As an indication of what may be expected when improved working methods have been introduced, Mr. C. G. Lush states that thirty men and one plant will be able to produce as much and even more tin than is now being obtained with three hundred men. “If we put only one plant on the property,” he says, “it will take us, perhaps, a hundred years to work it out, but there is no reason why we should not have four or five plants, and work it out in a lifetime!” In Australia, Tasmania, and the Straits Settlements 1½ lbs. of tin per cubic yard is considered very good, but Mr. Lush is of opinion that in Naraguta the ground will give fully 5 lbs. of tin per cubic yard; in fact, 10 acres have already been treated, and have given that result, which can be taken as “a very fair prospecting whole.” All that is necessary is to get the plant there as soon as possible.
In Mr. Frank D. Bourke the company has an excellent and indefatigable manager, and recently the directors engaged the services of Mr. A. F. Kitto, who left on October 12 to assist Mr. Bourke in the management.
LUCKY CHANCE MINES, LTD.
_Capital._—£75,000 in 300,000 shares of 5s. each, all issued and fully paid.
_Directors._—Mr. S. R. Bastard (Chairman), Mr. F. N. Best, and Mr. Oliver Wethered.
_Secretary._—Mr. Newman Ogle.
_Offices._—Friars House, New Broad Street, E.C.
This company owns the following properties:—
(1) _Dubbo._—A property in Bauchi, Northern Nigeria, consisting of 632 acres. This property is under the charge of two engineers.
(2) _Rafinsiroma._—This is a small rich property of 33 acres adjoining Dubbo to the south, and capable of immediately producing tin by ground sluicing and calabashing.
(3) _Bengalili._—A property of about 320 acres on the river Bukeru, situated about one mile to the north of Dubbo, and capable of producing tin by handworking at once.
(4) _Bengalili North._—This is an area of about 120 acres adjoining and to the north of the Bengalili property, also capable of producing tin by sluicing and calabashing. The river runs through this property.
(5) _Polchi._—A property of 84 acres adjoining South Juga, and situated on the main road from Toro to Bauchi. The property is now being worked and is producing tin.
(6) _Boidun._—This property is situated on the road from Dubbo to Bri, and is about one mile west of Dubbo. It extends for a distance of about a mile along the river.
(7) _Bilidi River._—Three square miles, or 1,920 acres. Good tin was found on this property, besides an appreciable amount of gold in the wash.
(8) _Kurdum._—Five square miles, or 3,200 acres. On the tests made the overburden went 3 lbs. of tin for 7 feet, and the bottom wash went 60 lbs. of tin for 1 foot.