PUBLIC RECORD OFFICE
C.O.882
Reference :-
2 PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO
(Confidential.)
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Inclosure 2 in No. 63.
THE SALANGOBE (EAST INDIA) TIN MINING COMPANY (LIMITED). (Registered under the Companies' Acts 1862 and 1867.)
Capital 250,000l., divided into 15,000 A, or Preferred Shares, of 101. each, and 10,000 B Shares of 101. each.
Issue of 11,500 A, or Preferred Shares.
The 15,000 A Shares are entitled to Dividend up to 101. per cent. before the B Shares
receive any
Dividend.
11. payable on Application; 21. on Allotment; and remainder as called up.
DIRECTORS. In London:-
Seth Apcar, Esq.,74, Lancaster Gate, Hyde Park, of the Firm of Apcar and Co., Calcutta. Seymour Clarke, Esq., Walthamstow. late General Manager of the Great Northern
Railway.
M. G. Maclaine, Esq., 6, Princes Square, London, and Lochbuy, Oban, Scotland. Count Charles de Geloes, of Ngadirodjo, Java, Limbourg, Holland, and 6, Hanover
Street, Hanover Square, London
The Honourable H. J. C. Hoogeveen, Resident Governor of Batavia, 6, Hanover
Street, Hanover Square, London.
At Singapore:-
W. H. Read, Esq., Consul-General for Holland at Singapore, of the Firm of
A. L. Johnston and Co., Singapore.
J. Guthrie Davidson, Esq., Advocate, Singapore.
Bankers.-London and County Bank, Lombard Street.
Engineer. Richard Barker, Esq. (formerly Manager of the Eskett Iron Ore Company), Whitehaven, Cumberland.
Auditors.-Messrs. Price, Holyland, and Waterhouse, 13, Gresham Street, London. Solicitors. Messrs. Newman, Dale, and Stretton, 75, Cornhill, London.
Broker.---
Secretary (pro tem.).—Alfred Ellerton, Esq. Temporary Offices.-Weavers' Hall, 22, Basinghall Street, London.
Prospectus.
THE mineral wealth of the Malayan Peninsula has long been known, but up to the present time no well organized plan for developing it has been brought before the public. This Company is formed with the object of working the extremely valuable tin mines in Salangore, under a concession from the Viceroy of that territory, dated the 8th March, 1873; and with the approval and sanction of the Earl of Kimberley, Secretary of State for the Colonies.
Salangore is situated in the Malayan Peninsula, adjacent to Banca and Billiton, adjoining the British Settlement of Malacca, and bounded on the north by the kingdom of Perak. It has an area of about 4,800 square miles. The seaboard is 120 miles in length, the depth inland, 40 miles. It averages 180 miles from Singapore and 100 miles from Penang. Steamers ply twice a-week between those places. The country abounds in tin ore, which is so situated that it can be brought to the surface without the necessity of shafts or other underground works. Deposits are found at depths varying from 15 to 60 feet, and it has already been proved to be tin-bearing for a breadth of five miles along the entire length. A small settlement of Chinese have been engaged in mining operations to a limited, though profitable extent, working manually and entirely without the assist- ance of machinery and modern appliances.
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The Dutch Government has, for about 200 years past, worked the tin mines of the neighbouring Island of Banca with immense success; the mines of the adjacent Island of Billiton have also been worked by private enterprise with like results. These islands are situated on the coast of Sumatra, and in a direct line with the seaboard of Salangore; and there can be no doubt that the district secured by the concession is a continuation of the great deposit which constitutes the mineral wealth of Banca and Billiton.
The Dutch Government returns state that the exports from Banca during the last fifty-two years amount to 2,914,692 picule, the average yearly profit in 1870 aud 1871 being 316,609. The exports from Billiton during the last twenty years were 345,297 piculs, the average yearly profit in 1870 and 1871 being 181,9021.
The shares of the Billiton Company are divided into "Red" and "Black" shares of 1,000 florins (831. 68. 8d.) each, fully paid up. They are now worth 3081. 68. Sd, and 3541. 38. 4d. respectively.
Salangore has been carefully inspected and tested, during a period of twelve months, by Mr. Richard Barker, the Engineer of the Company, whose long experience in England and subsequently in Australia and the Malayan Peninsula, has fully qualified tim for such an undertaking. His annexed Report cannot fail to carry conviction to the minds of those acquainted with the operations of tin-mining.
From Mr. Barker's Report it will be seen that the quantity of tin already known to exist in Salangore is great, the principal deposits being on the course of some extensive rivers; the transport of the mineral to the shipping points on the seaboard being thereby easily accomplished.
The mines have also been visited by two of the Directors, Mr. W. H. Reed and Mr. J. Guthrie Davidson, who have been resident in Singapore for many years past, and are well acquainted with the territory of Salangore.
The Viceroy has shown his interest and confidence in the success of the undertaking
by requesting that 20,000 dollars in shares be reserved for subscription by himself and his brothers.
It is proposed that the Head Station of the Company be established at Bookit Jerom, at the mouth of the Boolong River, at which place smelting works will be erected. Abundance of the requisite fuel for smelting purposes can be obtained in this district.
The facility with which the Coolie labour is obtainable (the cheapness of which is well known), is an important feature in connection with the working of the mines.
The cost of raising and smelting the ore and shipping it to Singapore, inclusive of all charges, is estimated at 18 dollars (47. 18.) per picul (133) lbs. English), as shown by the subjoined extract. An estimate of the minimum revenue to be derived from the mines is also given.
Samples of ores from the mines have been submitted for analysis to Dr. Percy, the Government Analytical Chemist, whose Certificate, annexed to Mr. Barker's Report, shows an average of 71 per cent. of tin.
The Concession extends over a period of 109 years, during the first ten years of which the right is held of working, with the exception of the small Chinese settlements, all known mines, and of searching for and winning new deposits, at the end of which time a lease of 99 years is granted of all the mines which the Company may then have taken up. The nominal capital of the Company is 250,000., only 115,000l. of which is required to be raised; as the Concessionnaires, showing their confidence in the undertaking, have consented to receive, as consideration for their Concession, 135,000 in fully paid-up Shares (viz., 35,0001. in A Shares and 100,0001. in B. Shares), and 15,0001. in cash.
The working capital required is estimated at 100,000%.
The capital of the Company will therefore be apportioned as under:~~-
Working capital Vendors
Cash.
£
£ 100.000 ?.
100,000 15,000 35,000 100,000 150,000
15,000 135,000 100,000 250,000
A Shares. B Shares. Total
The B Shares will receive no dividend until the A Shares receive 10 per cent. out of
the profits in each year. The profits above the 10 per cent. to the A. Shares, will be paid to the B Shares up to 10 per cent. When out of the profits of each year the A and B Shares have both received 10 per cent., all further profits will be divided equally pro rata between the two classes of Bhares.