Part 9
_Directors._—Segar R. Bastard (Chairman, Champion Gold Reefs of West Africa, Ltd., and Director of Juga (Nigeria) Tin and Power Co., Ltd.), Wm. F. Jackson (1-2 Great Winchester Street, E.C., and Stock Exchange, E.C.), John Waddington, J.P. (Director, Naraguta (Nigeria) Tin Mines, Ltd.).
_Consulting Engineer._—Charles G. Lush, M.E.
_Secretary._—H. Tuffrey.
_Offices._—Blomfield House, 85 London Wall, E.C.
This company has been formed to acquire the exclusive rights to prospect for minerals, mineral oils, and precious stones over an area of 3 square miles, situated about 4 miles south of Bukeru, in the well-known Bauchi Tin Fields of Northern Nigeria.
The property is situated on the top of the Bukeru Watershed, a basin heavily watered with small streams running through the whole area, which is stated to be alluvial, and all the ground is tin-bearing from the top to the bottom of the pits, which have been sunk to a depth of about 15 feet. Mr. Lush, the consulting engineer to the principal Nigerian tin mining companies, who thinks well of the property, has consented to act as consulting engineer for this company.
A party, consisting of four engineers with boring plant and stores, has already sailed for Nigeria to take possession of and work this property, as well as two other properties belonging to the Gongola Syndicate, Limited, and arrangements have been made for giving to this company the benefit of this organisation, on payment of a proportion of the charges incurred and to be incurred in connection therewith. There will be set aside £20,000 of the capital for working capital, of which 10,000 shares will be subscribed for immediately.
The purchase consideration is 30,000 fully-paid shares to be allotted to the Wadu Syndicate or its nominees, and the right to subscribe at par for the unissued capital of the company.
It may be mentioned that it is estimated that a profit of at least £45 per ton of ore will be obtained, taking the actual price at £90 per ton and deducting £15 for the cost of working and £30 for transport, &c., which latter item will shortly be considerably reduced.
RIBON VALLEY (NIGERIA) TIN FIELDS, LTD.
_Capital._—£200,000 in 200,000 shares of £1 each, of which 50,000 are set aside for working capital.
_Directors._—Mr. Edward Hooper (Chairman), Mr. Sidney J. Messenger, Mr. Herbert Moir, Mr. James Wickett (Director of the Malay Tin Mines), and Mr. H. W. Pelham Clinton.
_Secretary._—Mr. George Kerr, A.C.I.S.
_Offices._—Capel House, New Broad Street, E.C.
This company has acquired a most extensive property—nine miles in extent—and holds it under an exclusive prospecting licence from the Northern Nigerian Government. So far the prospectus has only been privately issued. The licence carries with it the right to select areas for mining purposes for periods of twenty-one years, at an annual rental of 5s. per acre, and a royalty on the mineral output. The property is situated on the head-waters of the river Gongola, the river flowing through the area being locally known as the Ribon. It is about 20 miles south-east of Naraguta, and within easy reach of the main transport route. There is a constant and unlimited supply of water, and a large quantity of timber suitable for fuel. The labour is plentiful, cheap, and suitable for alluvial mining. The costs are put approximately at £20 per ton of black tin, of a minimum of 70 per cent. Mr. H. W. Laws, M.I.M.M., the chief mining engineer of the Niger Company, says: “I consider the area has excellent prospects of proving very large and profitable, and that in selecting land for mining purposes it will probably be necessary to acquire two, and perhaps three, separate leases, owing to its unusually large extent.” An engineer of wide experience and an assistant has left London for the property, and Mr. Walter Wethered, who is paying his third visit to the Nigerian tin field, is to attend to the Company’s interests on the spot. The intention is that the Ribon Company shall become one of the parent kind, because it is quite impossible that, unaided, it can develop so large a sett.
THE REIN RIVER (NIGERIA) TIN MINING CO., LTD.
_Capital._—£76,000, divided into 270,000 ordinary shares of 5s. each, and 170 deferred shares of 1s. each.
_Directors._—S. R. Bastard, Chairman of Champion Gold Reefs of West Africa, Ltd., Lucky Chance Mines, Ltd., Tin Fields of Northern Nigeria, Ltd., South Bukeru (Nigeria) Tin Co., Ltd., Director of Juga (Nigeria) Tin and Power Co., Ltd. (Chairman).
C. G. Lush, M.E., Director of Tin Fields of Northern Nigeria, Ltd., and Goss Moor, Ltd., Consulting Engineer to South Bukeru (Nigeria) Tin Co., Ltd., and Naraguta (Nigeria) Tin Mines, Ltd.
Julius L. F. Vogel, M.I.E.E., M.I.M.M.
John Waddington, J.P., Director of Naraguta (Nigeria) Tin Mines, Ltd., Champion Gold Reefs of West Africa, Ltd., South Bukeru (Nigeria) Tin Co., Ltd., and Great Boulder Proprietary Gold Mines, Ltd.
_Offices._—Friars House, New Broad Street, E.C.
This company has acquired an exclusive prospecting licence over about 1,440 acres of alluvial tin-bearing ground, situated at Forum on the Rein River, in the Province of Bauchi, which is at present the richest known tin district in Northern Nigeria. From this district alone over one thousand tons of tin have already been won. The property extends for a distance of about three miles along the river. Hand-washing by calabashes and simple sluice-boxes, using a stream of water, have been employed, and this method will be adopted by this company for the present.
ESTIMATES
By comparison with the results obtained in the district it is estimated that, when the property is opened out, an output of 50 tons a month or 600 tons a year of “Black Tin” should be obtained, and the following results may be anticipated on the basis of the report:—
Sale of 600 tons of “Black Tin” at £90 per ton (the present price being over £100 per ton) £54,000 Cost of production (maximum estimate) at £15 per ton £9,000 Freight under present conditions at £29 10s. per ton 17,700 Administration, rent, royalties, &c., about 4,300 ------- 31,000 ------- Estimated nett annual profit £23,000 =======
By about March the new freight conditions should be in force, which would increase the estimated nett profit to about £29,000 per annum.
_Life and Tonnage._—Assuming Mr. Wethered’s figures that more than two-thirds of the area carries 3 to 5 lbs. per cubic yard for a depth of from 1 to 4 yards, the following is an estimate of the tonnage of tin and the life of the property:—
1,000 acres 2 yards deep at 3 lbs. per cubic yard should yield about 13,000 tons of Black Tin over about 20 years, which at £90 per ton represents a profit (taking into account reduced freight) in excess of £500,000.
_Management._—An arrangement has been made with the Lucky Chance Mines Limited, for the superintendence of the company’s interests, and for organising the work under a suitable manager.
The following report by Mr. Walter Wethered, one of the pioneers of the Northern Nigeria Tin Fields, was made on the original concession, which comprised an area of six miles along the river, of which this company have acquired one half.
“This property is situated on the south-eastern side of the Bauchi tin fields, between the pagan towns of Forum and Rein.
“The area encloses about six miles of a stream flowing in a northerly direction from Rein to Forum, where it junctions with the system of rivers on which the Ribon, Bisichi, Doss, and other properties are situated.
“The area is three-quarters of a mile wide by six miles long, an extent of four and a half square miles, practically the whole of which is tin-bearing alluvial. The alluvium is composed of a sandy material of an extremely free nature, and the bottom is the usual coarse grey granite. The latter outcrops in very few places, and carries from about a yard to four yards of alluvial ground. Although the bottom could be reached in only a few places in the stream bed, good prospects of black tin were obtained in nearly all samples panned, and from the alluvial flats, as exposed by the banks of the stream, the results ran from about 3 to 5 lbs. of tin per cubic yard. The panning concentrates contained 10 to 15 per cent. of titaniferous iron sand (which was allowed for), but this mineral presents no difficulty, and can be easily eliminated by the ordinary dressing operations.
“The width of the property (three-quarters of a mile) does not include the whole of the large alluvial flats that occur on either side of the river, but having secured the river and so much of the adjacent ground, these flats are protected, and, if necessary, may be taken up when the land for mining purposes is selected.
“Of the area staked, certainly more than two-thirds carries alluvial ground of the thickness given above. Except in the bed of the stream, I would not expect rich patches, but a fairly uniform value throughout.
_Water._—There is a continuous flow of water for sluicing purposes all the year round.
_Grades._—Cannot be determined without survey, but at the lower (Forum) end of the property there is sufficient fall to allow the tailings to be inexpensively dealt with.
_Costs._—Will compare favourably with other mines in the district, _i.e._ with ground of moderate value the costs would amount to between £10 and £15 per ton of black tin, and present transport charges £27 10s. per ton inclusive.
“Final tests of the flats are capable of being cheaply and quickly carried out by means of trial pits; boring is unnecessary. The probability is that the workable ground will prove to be of too large an area to be included in one mining lease, and that it will be necessary to split the present area into two or more properties.”
New Mining Regulations for Northern Nigeria
[NOTE.—_The Proclamation as enacted in the Protectorate differs from this copy in the addition of a clause suspending—as regards licences to mine issued under the previous Proclamation—the operation of Section 26 and Regulation 23 (relating to royalties) until 1st January 1911, to which date the provisions of the “Minerals Proclamation, 1902,” with regard to duty on profits, are kept in force._]
THE MINERALS PROCLAMATION, 1910
A Proclamation regulating the right to search for minerals and also to dig for, mine, and work minerals, and for other purposes relating thereto.
Be it enacted by the Governor of Northern Nigeria as follows:—
[Sidenote: Short Title.]
1. This Proclamation may be cited as “The Minerals Proclamation, 1910.”
[Sidenote: Interpretation.]
2. In this Proclamation, unless the context otherwise requires:—
[Sidenote: Person.]
“Person” includes a corporation.
[Sidenote: Holder.]
“Holder” of a prospecting right or exclusive licence to prospect means the person to whom such right or licence was granted in the first instance, but in the case of an exclusive licence to prospect includes a person in whom such licence or a part of the rights thereunder has become vested by transfer, assignment, or otherwise.
[Sidenote: Lessee.]
“Lessee” of a mining lease includes all persons having any right or interest in or under a mining lease, whether by transfer, assignment, or otherwise.
[Sidenote: Treasurer.]
“Treasurer” includes any officer appointed by the Governor to perform any act or duty or to exercise any authority which by this Proclamation may be done by, or is imposed upon, the Treasurer.
[Sidenote: Government Inspector of Mines.]
“Government Inspector of Mines” includes any officer appointed by the Governor to perform any act or duty or to exercise any act or authority which by this Proclamation may be done by, or is imposed upon, or may be exercised by, the Government Inspector of Mines.
_Court._
“Court” means the Supreme Court or any Provincial Court.
[Sidenote: Minerals.]
“Minerals” means and includes the following as classed hereunder (_a_), (_b_), (_c_), and (_d_):—
[Sidenote: Metalliferous Minerals.]
(_a_) Metalliferous minerals, including antimony, arsenic, bismuth, copper, cobalt, chromium, cadmium, gold, iron, iridium, lead, manganese, mercury, molybdenum, nickel, platinum, silver, tin, tungsten, uranium, zinc, and all others of a similar nature to any of them, and all ores or combinations of any of them with each other or with any other substance, excepting only those that occur in the form of precious stones.
[Sidenote: Carbonaceous Minerals.]
(_b_) Carbonaceous minerals, including anthracite, asphalt, brown coal, bitumen and its compounds, coal, graphite, lignite, and all substances of a like nature to any of them, or combinations of any of them with each other or with any other substance.
[Sidenote: Earthy Minerals.]
(_c_) Earthy minerals, including asbestos, barytes, clays, gypsum, infusorial earth, sandstone, marble, mica, phosphates, potash, rock salt, soda, sulphur, steatite, slate, talc, and all other substances of a like nature to any of them.
[Sidenote: Precious Stones.]
(_d_) Precious stones, including amber, amethyst, beryl, cat’s eye, chrysolite, diamond, emerald, garnet, opal, ruby, sapphire, turquoise, and all substances of a similar nature to any of them.
[Sidenote: Saving as to quarrying, &c.]
3. Nothing in this Proclamation shall prevent any person from quarrying stone for building purposes, or any native of the Protectorate from mining for iron, salt, soda, or potash, except in any area over which a mining lease has been granted.
[Sidenote: No person to prospect without a prospecting right, or exclusive licence.]
4.—(1) It shall not be lawful for any person to prospect for minerals without having first obtained a prospecting right or an exclusive licence to prospect in the prescribed form.
(2) An exclusive licence to prospect shall not be granted to any applicant who has not, either by himself or his duly authorised agents, examined the area over which an exclusive licence to prospect is applied for.
(3) It shall be in the discretion of the Governor for good cause to refuse an application for a prospecting right or an exclusive licence to prospect.
[Sidenote: Prospecting right.]
5. A prospecting right shall entitle the holder to prospect for any minerals in those parts of the Protectorate which are not included in any exclusive licence to prospect, and which the Governor has not by Government Notice in the Gazette declared to be closed to prospectors.
[Sidenote: Prospectors employed by corporations.]
In the case of a company or corporation employing prospecting engineers or prospectors, each prospecting engineer or prospector shall be required to take out an individual prospecting right.
[Sidenote: Exclusive licence to prospect.]
6. An exclusive licence to prospect shall entitle the holder thereof, and his duly authorised agents, to the sole right of prospecting for minerals within an area not less than one square mile and not more than sixteen square miles in extent, and for a period of one year from the date thereof, subject to renewal in accordance with the prescribed regulations for further terms of one year each, but so as not to exceed a period of three years in the whole.
[Sidenote: Right to enter upon land to prospect.]
7. A prospecting right and an exclusive licence to prospect shall, subject to the terms thereof and to the prescribed regulations, entitle the holder thereof to enter upon any land and prospect for minerals, and any person interfering with or obstructing such holder in the exercise of any rights hereby conferred upon him shall be guilty of an offence and shall be liable to a penalty not exceeding £25 or to imprisonment for a term not exceeding three months.
[Sidenote: Settlement of disputes.]
8. All disputes between holders of exclusive licences to prospect in respect of the exercise of the rights granted by such licences shall be submitted through the Government Inspector of Mines to the Governor for his decision, which shall be final and conclusive between the parties: Provided always that the Governor may in his discretion refer any particular matter in dispute to a court for its decision.
[Sidenote: Penalty for prospecting without a right or licence.]
9. Any person prospecting without a prospecting right or licence to prospect shall be guilty of an offence and shall on conviction before a court be liable to a penalty not exceeding £50 or to imprisonment for a term not exceeding six months.
[Sidenote: Transfer of rights and licences.]
10. A prospecting right shall not be transferable, but an exclusive licence to prospect or any portion of the rights granted under such licence may be transferred with the consent in writing of the Governor, signified by endorsement thereon.
[Sidenote: Revocation of licences.]
11. In case of any breach by the holder of a prospecting right or exclusive licence to prospect or by any attorney, agent, or employee of such holder, of any of the provisions of this Proclamation or of any rule or regulation made thereunder, the Governor may summarily revoke the said right or licence and thereupon all privileges and rights conferred thereby or enjoyed thereunder shall as from the date of such revocation cease: Provided always that the fact of such revocation shall not in any way affect the liability of such holder, attorney, agent, or employee, in respect of the breach of any provision of this Proclamation or of any such rule or regulation committed by him before such revocation.
[Sidenote: Surrender of licence.]
12. An exclusive licence to prospect or any portion of the rights granted under such licence may be surrendered at any time after three months’ notice in writing has been given of the intention to surrender: Provided that such surrender shall not affect any liability incurred by the holder before such surrender shall have taken effect.
[Sidenote: No grant except to holder of prospecting right or exclusive licence.]
13.—(1) It shall not be lawful for the Governor to grant a mining lease to any person other than the holder of a prospecting right or an exclusive licence to prospect, nor to any person who cannot show to his satisfaction that he has, either himself or by his duly authorised agent, carried out _bonâ fide_ prospecting operations on the area applied for.
[Sidenote: Right of exclusive licence holder.]
(2) The holder of an exclusive licence to prospect who has fulfilled all the conditions attached thereto shall be entitled to the grant of a mining lease in respect of any portion of the area covered by such licence subject to the conditions relating to the grant of such leases.
[Sidenote: Applicant must show sufficient working capital.]
14. The Governor may require an applicant for a mining lease to show to his satisfaction that he possesses or commands sufficient working capital to ensure the proper development and working of the mine; and may require any reports on the matter made by competent engineers to be submitted for his information. In the event of such applicant failing to satisfy the Governor as aforesaid, the Governor may refuse the application, but the applicant may renew his application at any time.
[Sidenote: Giving false information as to above matters an offence.]
15. Any applicant for a mining lease wilfully or recklessly giving false information as to any of the matters in respect of which information is or may be required to be given under this Proclamation shall be guilty of an offence, and shall be liable on conviction to a fine not exceeding £50 or to imprisonment for a term not exceeding six months.
[Sidenote: Duration of lease.]
16.—(1) A mining lease may be granted for any term not exceeding 21 years.
[Sidenote: Renewal.]
(2) If at the expiration of the term originally granted the lessee or his assigns shall be carrying on work in a normal and business-like manner under the lease, and the lease shall not at that time be liable to be declared void under any of the provisions of this Proclamation, and the lessee or his assigns shall have given to the Government six months’ notice in that behalf, then the lessee or his assigns shall be entitled to obtain a renewal of the lease for a further term not exceeding 21 years, upon the conditions which are then generally applicable to new mining leases.
[Sidenote: Different kinds of mining leases.]
17. Mining leases shall be of the following kinds, viz.:—
(1) Lode mining leases, the unit of area being one claim of 80,000 square feet, rectangular, and of such dimensions that the width shall not be less than one-half the length. No greater area than 30 claims shall be included in one lease. The rent payable under such lease shall be at the rate of £4 per claim per annum.
(2) Alluvial mining leases, which shall not exceed 800 acres in area and shall have a minimum width throughout of 400 yards. The rent payable under such lease shall be at the rate of five shillings per acre per annum.
(3) Stream mining leases, which shall not be granted in cases where an alluvial mining lease is applicable, shall be confined to the bed of a stream and shall not exceed one mile in length. The rent payable under such lease shall be at the rate of twenty shillings per annum for each 100 yards or part thereof.
(4) Iron mining leases.
(5) Carbonaceous minerals leases.
(6) Earthy minerals and precious stones leases.
(7) Dredging leases.
Leases of the kind (4), (5), (6), and (7) shall be granted subject to regulations to be made by the Governor under section 34 of this Proclamation.
(8) Water power leases, which shall be the subject of special agreements with the Governor; and such agreements shall make provision _inter alia_:
(_a_) As to the rate to be charged to consumers for the supply of power, such rate to be specified in each agreement, and not increased without the consent in writing of the Governor;
(_b_) As to the compensation to be paid by the beneficiaries thereunder in respect of interference with pre-existing individual rights of any kind whatever;
(_c_) To ensure, under penalty of revocation, the adequate development of the available power; and
(_d_) To ensure the supply of power on equitable terms to all consumers.
Provided that (1) no such agreement shall be concluded until at least three months after reasonable advertisement of the application for the lease; and (2) the Governor shall at all times have the power to determine any such agreement, subject to reasonable notice and to the payment of adequate compensation in respect of expenditure incurred.
[Sidenote: Governor may order survey, at cost of applicant.]
18. The Governor may in any case where he shall deem it necessary, before granting a mining lease, require that the boundaries of the land affected shall be surveyed by a surveyor approved by the Governor, and the cost of such survey shall be paid by the person applying for the lease.
[Sidenote: Overlapping areas.]
19. In the event of any areas the subject of mining leases or exclusive licences to prospect being found to overlap, the ground in dispute shall be considered as within the area first granted, and no claim, whether for compensation or otherwise, shall be allowed in respect thereof to the lessee or licensee of the area subsequently granted.
[Sidenote: Registration.]