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HONG KONG DAILY PRESS, SATURDAY, SEPTEMBER 3, 1932.

ENGINEERING AND BUILDING

GOLD MINING IN MANCHURIA.

THE RESOURCES AND HOW THEY SHOULD BE USED.

NECESSITY FOR FOREIGN CAPITAL.

BY G. T. EVE, A.I.M.M., LATE CHIEF MINE GEOLOGIST, LENA GOLDFIELDS, LTD,

a lower rate of taxation was able to operate and produce gold from comparatively poor mines and here! in lies the key to the prosperity of the gold mining industry in any

country.

never be overlooked, High taxa- tion and inadequate lows do not allow poor mines to be operated.

A Suggested Polley.

on

We who are specialists in this class of mining know that rich mines are few. The great majority of the world's gold mines consist ing of so-called low grade ore Are poor but from that poor It is a common error to assume, shown a progressive decrease in its majority comes the bulk of that gold inining is a simple opera. production, during the four years; the worki's gold. This is an tion requiring no special skill or mentioned. What are the reasons all-important fact which should capital but consisting merely of for this? the not too complicated process of

The Northern Manchuria, gold- digging auriferous gravels and field is the natural continuation of rucks and separating the gold from the geologically termed "Amur them. In actual practice, gold Region. Auriferous Belt'! and com- mining is a highly specialized in-parison between the working condi- dustry demanding expert know- tions and mining laws in that bel ledge, experience and large capital, and in Manchuria will assist in The gold mining batry in understanding and solving the Manchuria is passing through its problem with which the industry childhood which, unfortunately, is confronted in the latter country. has been marred by lack of proper, The mining laws in the Amur care and nourishment. This lack Region (I refer, of course, to the of proper care is expressed in the period prior to the advent of the inadequate, complicated and in Soviet form of government since efficient mining laws and admin when no private mining has been levied heretofore in taxation in istration and the lack of nourish permitted), ware based on moderate Manchuria, gives G.827,600,000 ment is expressed by the absence of taxation, freedom to obtain claims If Manchuria adopted wise and sufficient capital and properly trained personnel. The industry not only passing through a pre- carious childhood but it is further menaced by a disease known a "arrested development" which may result in very grave injury to the growth of the industry. The fol- lowing figures will illustrate my statements:

The annual output of gold in Manchurin, expressed in gold dollars, during the years stated; was approximately :-

1020

: 1027.

1028

1920

G.84,500,000

G.83,408,000

G.82,700,000

G.$2,500,000

NEW GUNBOAT FOR CHINA STATION.

UNDER CONSTRUCTION BY THORNYCROFT,

THE SANDPIPER.

NEW USE FOR COAL.

MINING ASSOCIATION'S OHANCE FOR THE "RIGHT" MAN.

The Mining Association issues the following statement: "Realising that if coal is to be the fuel of the future it must be treated, sold, The decision of the British Ad-and' used in accordance with the miralty to order the new shallow draft gunboats for Chinese waters

from Messrs. John I Thornycrol'

ment scientific and economic mo thods, the Mining Association, in Co. is another svept in the

conjunction with the distributors: keen rivalry of that concern with lished a Coal Utilisation Council and exporters, has recently estab Meters, Yarrows, of Scotstoun. The object of this body is to sell rivalry which has gone on for many more coal, but, as its name implies, years now, anys the Journal of Com to do so by finding new and better-

Not only have they been methods of utilising this raw ma merce. running neck and neck with the con- terial. Coal can do it better is striction and design of torpedo the keynote, and the Coal Utilisa craft ever since the 'seventies, but tion Council is looking for the man- when the shallow draft gunbont to help it to tell the world · how. became possible by the invention The association will apara no pains: of the tunnel stern in the 'nineties, to secure the right man. Personal- ity and enthusiasm, organising they found a further field. It inability, constructive vision, and true that Yarrows specialised in technical knowledge-these are sorde

of the qualifications required.” them rather more strongly than.

The well-known geologist, Pro. fessor Anhert, in his book

Minerals of Manchuria" gives a tentative estimate of the gold re serves in Manchuria as approxi-Thornycrofta, turning out the first-

of the type for servien in Egypt. gorge of the Upper Yangtze River mately G.88,300,000,000. Taking this figure as a basis we find that but their rivals were hard on their from Ichang to Chungking. 4 per cent, the percentage of rare rich mines, gives us G.892,000,000, 30 per cent of this sum, the amount

heels....

Competition In Shipbuilding.

In 1887 Yarrows built the Night- ingale, Robin, Sandpiper BIX! Snipe, little nine-knot ships of and Thornycrofts the Woodcock and Woodlark, 13-knot ships of 150 tons, drawing two feet. Both types carried two six-pounder guns and machineguns. The Woodcock and Woodlark completed over

land the security of all those fair mining laws and taxed this 93 tous, drawing 20 inches of water,

granted, practically no government royalties levied on the gold won, a comparatively high tax on land surface and a fixed minimum out: put from ench claim. Above all, these laws were rigidly enforced.

Some Comparisons.

18 Knot Ships.

In 1901 Yarrows brought out the 180-ton Teal and Moorhen, and i 100% the 195-ton Widgeon on prac tically the same lines. Then there was a lull in ships of this type un til the war, when Yarrows prepar

ed designs for very much more

the various centres particularly

powerful ships which were used in Mesouotain, and have drifted out to China. They have a displace ment of 625 tons, a main battery of two six-inchers and smaller pieces, and speed of 14 knots. 30 although 18 knots on trial was quite usual. So many were order. them all out at Yarrow's yard, and they were built by various estab Hahmonts.

withdrawn from the Naval List in 1028, when they had the distinction of being the oldest vessels in fight- ing commision in the British Navy. The Woodlark was the first steamer of any size to navigate the difficult

(Continued on nena Untumn.)

churia, would be impossible to operate under present conditions.

Smaller Ships Are Being Bullit.

Since the war smaller ships have been built to replace the veterans,

most important and essential in- dustry in a manner beneficial to the government and the commun-: ity. My on the basis of a 5 per cent levy on the gold won, it would mean that practically all the poorer mines could be operated. years' service before they were that it was impossible to turn that & tremendous influx of capital The inadequate mining lawa for investment would follow and which exist in Manchuria appear that on the exhaustion of the above to have been based on excessively reserves Manchutis would have high taxation and heavy royalties handled gold to the value of Gold without providing any protection $2,300,000,000 instead of Gold 892.

and Yarrows have turned out Sea- mew, Tern. Gannet, Petrel and against inflation of areas by so-008,000 and that in direct taxation

Falcon at their own designs, ships called "blanket

**agreements"" the government would reap the

which have proved invaluable dur Morcover the complicated and slow sum of Gold $115,000,000 instead of

ing the recent troubles in the East. From those figures it will be

and which have been kept very busy These figures of noted that Manchuria's gold min-procedure of registration of claims Gold 827,000,000.

escording merchantmen up and ing industry, never too robust, has and the general lawlessness are course are tentative but they serve

down the rivers through the most footers with which the prospective well to illustrate the vital impor

What Should be Doné,"

troubled areas. But their number is insuficient, nid the old "Moor- operator has to contend. The re-tance of the very essential point From this last example we can hon, of 1901, the last of the old sult is that the Amur Region. I must make clear to the govern- arrive at one most important de- type, is past or prime, so that prior to the Russian Revolution,ment.

duction if Manchuria decides to the new ship is very welcome to Gold mining in the Amur Redevelop its mineral reserves, as it

everybody. produced an annual average of output of gold valued at some gion belonged to the initial stages must take steps to invite foreign G,813,000,000 and directly employed of the industry and its gold catae capital to participate in that The new gunboat Sandpiper, the in the gold mining industry ap. entirely from alluvial mines, the development, that is, the country order for which was given to The Ma Messrs. Thornycroft, is the sixth proximately 50,000 men together G.800,000,000 of invested capital must borrow capital.

churia Goverument should-invite vessel of this type to be built aineo with hundreds of engineers and was producing gold at the rate of foreign capitalists to invest in reef the War. The 17 existing vessels skilled mechanics, whilst in Man G.815,000,000 per annum or at the mining giving them every facility are all serving in China, 12 in the churia the output of gold before rate of G.80.30 for every dollar and help as this form of gold min Yangtze dotilla and five in the ing development is of the utmost West River, and the bulk of them the Russian Revolution was in-invested.

importance to the future of the are usually known as Tigriä gun- significant and in 1928 reached only The total capital invested in the nation. Preference should then be boats, having been built in 1916-10 domestic capital to for work on the Tigris during the about 0.64,600,000, in value drop- reef mines. in the Transvan, given to

operate, by hand-working methods, campaign in Mesopotamia. There ping to G.82,500,000 in 1929 when ampunts. to approximately G.8175,-

the alluvial deposits which are not remains in Burvice, however, the the total number of men employed 000,0000 and the mines are produc suitable for operation by ima old, China, gunboat Moorhen, com- In the industry did not exceed 16,-ing at the rate of some G.8220,000, chinery-those alluvial mines which pleted in 1901, and still flying the 000 with practically no highly 000 per annum or at the rate of require mechanical operation and, White Ensign at Canton. As the hence, & comparatively large age limit for such craft, is 20 years. trained personnel at all.

about G.81.25 for every dollar in amount of capital should be group- the Moorhen should have been re- vested, and the Transvaal mines ed for the purposes of develop placed more than 10 years ago, but are working, ore which, in Man ment, with the reef miles the must wait until the Sandpiper

(Obntinued on next coluvän,) Eastern Review.

is ready for service in 1933.

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As regarda capital investment and output: & sum of approxi- mátely G.830,000,000 was invested in the Amur Region whereas in Manchuria, though the total sum is unknown, it was and in certainly very small. Taxation in the Amur, Region, including levica of all descriptions, did not exceed 8% of the total value of the gold pro- duced whereas in Manchuria, taxes and other charges upon output amount to over, 30%. In the former region, even comparatively poor alluvial deposits returning, say, G.80.20 per cubic yard were ac" tually operated owing to the mor favourable conditione ruling there bat in Manchiria no mines can be, developed unless they produce not less than 0.80.10 per cubic yard. In the Amur Region the gold min- ing industry was gradually pass ing from the primitive stage to mass production with the pro-

LIGHTING & POWER INSTALLATION Bressive use of machinery whereńs

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ELECTRICAL ENGINEER

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in Manchuria no modern mechani- cal methods are adopted for the ex traction of gold. The output of gold per man in the Amur Region averaged .8305 per annum while in Manchuria och miner produces less than 0.8235, per annum. It is, moreover, very important to note that in the Amur Region the gold mining industry, notwithstanding the more favourable conditions, laws and taxation, returned to the in vestors only about 4.7% average profit on their investment. This proves that the Amur Region with

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GENERAL

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