PEAK DOWNS COPPER MINE.
ITS HISTORY - III
The purchaser of the property at auction was a representative of a new company which had been hastily formed by some of the residents of Peak Downs and Rockhampton, together with certain of the old shareholders in Sydney who still believed that it might be made to pay if legitimately worked. The attempt already made to float the company in Sydney for £25,000 having failed, it was thought best to localise the new venture by making its headquarters at the mine itself instead of at a distance and to be content with a much smaller amount of paid-up capital. The sum of £15,000 was, therefore, determined upon, only £10,000 of which was at first subscribed, the remaining shares being held over. Somewhat later on, these were placed upon the market, but only a very small number were taken up. A local directory was formed, provisionally at first and afterwards permanently, and the greater part of the staff which had latterly been in the employ of the old company was re-engaged by the new one, in order that operations might at once be proceeded with. One of the conditions under which the property had ben sold was that the ores then at grass should be taken over by the purchasers at a valuation to be arrived at by arbitration. The valuation was based on the market price of copper in England, namely, £78 10s. per ton, and an old scale of smelting charges, and under it the new company had to pay £2466 cash for the ore at grass, which added to the cost of the mine and stores and the preliminary expenses incurred in connection with the formation of the company, made a total of about £6400, leaving only £3600 as a working capital, and even this amount was not immediately available, as the time for the payment of calls extended over four or five months. Had everything gone on without the slightest hitch, it would have been barely possible for operations to have been carried to a successful issue with so small a working capital. As it was difficulties foreseen and unforseen beset the management from the very start. No advances could be obtained from the banks upon the copper and it was actually on board ship, and as the average time of travel from mine to port was not far short of two months, and the working expenses of the mine were over £2000 a month, the greatest difficulty was experienced in obtaining sufficient money to carry on with. The Bank of New South Wales, with which the new company first transacted its financial business, soon became so uneasy that credit was stopped when debit balance reached £2000. Arrangements were then made with the Australian Joint Stock Bank, which eventually agreed to make advances on copper as soon as it left the mine, but it was not until after much trouble that this concession was made. Meanwhile interest on advances became a serious drawback, a sum equal to the entire paid up capital standing at overdraft interest for a long time, and as it was to a great extent unsecured, there was no wonder that the bank was disinclined to continue or to increase the accommodation. The natural and inevitable result was that the directors found it impossible to continue and operations were accordingly suspended in a little over twelve months from the commencement with a very heavy deficit. In order to meet the company's liabilities a mortgage was effected on the whole of the property pending the sale of copper in England, by means of which all outside liabilities were eventually paid off.
Copperfield Cemetery
Sanguine expectations had at first been indulged in as to the career of the new company, and, in spite of the difficulty of obtaining money before working expenses until copper could be placed on the market, there was every reason to believe that the mine could have been worked at a profit but for the abnormally low-price to which copper fell immediately after operations were commenced, and which continued to rule during the whole period of work and until after the produce had been disposed of. The first heavy blow was experienced in the price paid for the old companies ore's. The scale of reducing charges under which they had been valued was found, upon practical test to be 8s. per ton of ore, or £4 per ton of refined copper, under actual cost, while the metal contained therein, and which had been purchased at a valuation of £72 10s. per ton in London, by the time it reached the market, did not realise that price within £5 per ton, while 12 months had elapsed between the date of paying for the ore and that of receiving the returns from the sale of the produce, thus adding a heavy item of interest and causing a very serious loss instead of the anticipated profits. Nor did matters improve in this respect, for each succeeding advice of copper sales reported a falling market, and some of the largest parcels of the company's copper was sold at £50. And £60 per ton. The average price realised being only a fraction over £63 a time for all the 623 tons turned out in their thirteen months of the company's operation, an average which it is safe to say, had never up till then been equalled for lowness during the history of copper mining in Australia. The total loss amounted to £10 per ton on all the copper produced, a very large proportion on which loss was represented by interest paid for accommodation and in attendant expenses, clearly showing the fallacy of the attempt to work with an insufficient capital. All the smelting being done with wood fires, the supply of that article was at all times a vital question. The large amount of timber used by the old company during the previous ten years had denuded the country for miles around of the sorts suitable for smelting, and one of the first things that the new directory took in hand was the question of future supply. An extensive tract of timbre of the finest quality was known to exist in the direction of that portion of the company's property known as the Western Peak Downs mine, almost seven miles distant from the furnace, and a project was formed to run a tramway from the works through this belt of timber and in the direction of Western mine, to which it was eventually to be extended, for the purpose of bringing in ores as well as firewood. To that extent the survey was made from the smelting works to the edge but the timbered country, the engineer being employed being Mr. J. Climie, M.I.C.E. the representative of one of the first engineering firms of England, who undertook the task at a merely nominal sum in the expectation of securing a contract for the works if carried out. An excellent line was formed, having comparatively few engineering difficulties, and one capable of being constructed at a moderate cost. For this work the company expended in all £260, £250 being the amount agreed upon with Mr. Climies firm. Though it was insufficient to cover its actual outlay. Unfortunately the directors were totally unable to carry out his project, which in its self, would have tended greatly to the profitable working of the mine by reducing the cost of firewood twenty-five or thirty per cent, besides ensuring an adequate supply in all seasons. The most important question of all-that of a securing a sufficient supply of payable ore was, of course constantly before the new directory. The old company had virtually exhausted those portions of the lode which had been opened, and its efforts at exploring had latterly been almost abandoned. Thus the new company was heavily handicapped in this matter. There was scarcely a level of or stope into which a party of men could be put to break ore without the heavy expense of timbering and securing the workings or opening out places choked with rubbish, where payable deposit were believed to exist. Thus the cost of raising ore was unduly increased, and its average quality correspondingly diminished as time went on, and the miners had to full-back upon the ground which had been passed over in more prosperous times as unpaid. Exploration properly so called was out of the question, but in one part of the time, a long distance west of any previous payable workings and near a spot where the old company had tried in vain to trace the load, it was found in three places and followed down 15 fathoms on its course, being of a very promising description and carrying a fair proportion of carbonate ores of good quality, assaying up to 30 per cent of copper. Indeed, so good were the prospects considered that the new discovery, as it was called, was looked upon as equivalent to opening out a new mind. At the lowest depth reached, the load was much disordered and did not carry sufficient good percentage ore to pay for crushing. It was, therefore, reluctantly left alone until funds should be available with which to open it out more systematically, but unfortunately, that time never arrived and it remained undeveloped. The from the very start the new proprietary was at a disadvantage in many ways, but least amongst them was the having to commence operations with a new mining manager the former one having given up his position at the end of the old company's tenure, Captain M Bryant was the first mining manager engaged, and, as he was a perfect stranger to the mine, it was very difficult for him to gain such knowledge of the nature of the lode and the general characteristics of the mine as would enable him to work it to advantage. Plenty of information as to these points was preferred by such of the miners as had been for a considerable time on the ground, but in almost every instance their opinions proved fallacious and much profitless expense was incurred in following them out. Captain Bryant resigned his position after only a few months work and his plays was filled by Captain W. C. Paul, who though having the advantage of what little experience his predecessor had gained during his short sojourn, was still hampered by the same difficulties, and he had barely time to become fully acquainted with such portions of the workings as were accessible when operations were suspended and all the mining staff was discharged. Both these gentlemen agreed as to the value of the mine and also as to the impossibility of ever being able to work it at a profit without a far larger amount of capital than was available. In February, 1879, after a most harassing and unsatisfactory period of office extending over little more than a 12 months, the new directors saw no possible means of making ends meet and were compelled to ceased raising ore at once and all other works as soon as the ore then at grass had been converted into copper. Mr. J. P. Christoe, who had been for many years in the position of assayer to mine and was an experienced smelting manager, being of the opinion that it was still possible to work with a small margin of profit, then made an offer to lease the mine for a period of two years, paying the company a tribute or royalty on all the copper produced, which was to be not less than 200 tons in each half-year. The offer having been put into definite shape, it was submitted to the shareholders at a special general meeting held in March, and was by them accepted. As the property was at this time, however, mortgaged to the lenders of the money advanced to pay off the men, it was necessary to obtain the sanction of the mortgagees, who at first refused it, but afterwards gave their consent, and Mr. Christoe took up position in May. The two or three months' delay did not improve matters. On attempting to resume work it was found that the water had risen so high as to flood the principle levels and that it was so strongly impregnated with copper held in solution that the lower portions of the water lifts had been eaten away by it in and that it was necessary to replace them, while other damage had occurred in the workings through their being so long under water, Mr. Christoe was entirely without capital, but the miners and smeltors, who had been some time idle, were willing to go to work at a reduced rate and to take payment for the most part in stores and various necessities of life. The local storekeepers being anxious to see working carried on as well as to avert the distress which must have ensued from a large number of men with their families being throwing out on employment, agreed to supply rations, &c., and to take payment as the copper was produced and disposed of from time to time. By this means, and by daunt of strict economy, hard work, and the reduction of all expenses, Mr. Christoe was enabled to carry on operations for considerably over two years, the lease having been extended at its expiration and though he was unable to produce nearly the quantity agreed upon, all that was produce returned a small profit to the company, reducing the debit at profit and rose some £2,000 and preventing, or rather delaying, a total collapse and making it a gradual instead of a sudden one. For two years Mr. Christoe appeared to be working, at least with serious loss, but as might have been foreseen the same difficulties affecting him as had proved so disastrous to the company. Both payable ore in the old working and firewood within a reasonable distance began to grow scarcer with time, and exploration was more than ever out of the question. A few parties of men, under the incentive of liberal tributes, opened out from time to time small patches of good ore in the old ground, but beyond this, all was rummaging in the old stopes and stuils, gleaning over ground that had already been practically exhausted. The hope that the copper market would recover something like it's normal tone was but faintly realised. Although the average price was far above that obtained during the company's time, it was not sufficiently so to avert the ultimate wreck of Mr. Christoe's hopes.
Headstone in Copperfield Cemetery
Very soon after the commencement of his third year it became apparent that troubles were thickening around him. Efforts were made to avert impending fate, but without success, and in the later part of 1881, after a brave, but ineffectual struggle, Mr. Christoe was obliged to give up the effort.
During the currency of Mr. Christoes lease the company had made sundry efforts to dispose of the property to capitalists who would be in a position to work it to advantage. Negotiations were opened in 1881 with a Dr. J. N. M. Robertson, of Renfrew, who at that time was in the colonies for the purpose of inspecting mining properties with a view to purchase, and who came out as representative of a syndicate of British capitalists. Dr Robertson visited and inspected the mine and expressed himself quite favourable with respect to it's value, while unhesitatingly condemning the system of working which had obtained from first to last, and which was designated as hundreds of years behind the age and entirely obsolete in every coppermine of any importance in the world. In his opinion, a large amount of money must necessarily be expended before a payable return would be expected, though of the ultimate result he seemed to entertain no doubt, basing his opinion on a very extensive copper-mining experience in various parts of the world, as well as on a scientific knowledge of the nature of copper and other mineral deposits. An agreement for the sale and purchase of the property was prepared and executed. Dr. Robertson stipulating however, that it shall be subject to ratification by his principals after his report and on his return to Europe, pending which the mine was to be very clear of water and a certain level at the expense of the company. Although this was done at considerable expense, especially for many months continual pumping, the time agreed upon fort the ratification of the agreement passed without any result except that of evasive reply from Dr Robertson to the company's investors and the bargain eventually fell through. From that time the property remained entirely idle, the machinery, stores, &c. being placed as far as possible in safety and security until the rapidly advancing railway line or a decided advanced in the price of copper might induce the formation of a company sufficiently strong and again commence operations with a reasonable prospect of being able to carry them to a successful issue. Should such a company be formed, it was stated, the large and valuable pile would be of material assistance, the engines and machinery alone being of great value and the stock of tools and appliance very large and varied.
The freehold property then consisted of seventy eight blocks of mineral land at the Peak Downs mine, through which the main lode ran at a distance of a mile and a-half: three eighty acre blocks about three miles east of the main lode which appeared to pass through it; one eighty acre block about three miles east all the main lode which appeared to pass through it; two blocks of 80 acres and 42 acres respectively containing an unlimited supply of fireclay of the best description: and one block of 102 acres distant from twelve to fourteen miles from the mine, entertaining a valuable seam of coal of good-quality, constituting in all, a remarkably complete mining freehold, with a line of railway in course of construction to a point only four miles distant and complete to with in 35 miles, thus connecting the mine with Rockhampton. Notwithstanding the large quantity of copper which had been taken from the mine, only a comparatively small portion of the ground had been worked and that to but a shallow depth. The Western mine was only open sufficiently to prove it payable nature, when the company originally owning it was wound up, after which time the former owners of the property endeavored to repurchased it for the purpose of floating a strong company to work it in an effective manner. The Peak Downs copper was well and favourably known in the market as equal to any in the world, on a par for quality with that from best of the South Australian mines and all competent judges who had inspected the property concurred in the opinion that, if properly worked there was almost a certainty of it becoming permanently remunerative. The complete and exhaustive report by the late Mr. Sammuel Higgs, F. G. S. contained much valuable information of a technical nature. Mr. Higg's faith in the mine was shown by his offering to undertake the management of it for the new Peak Downs Company, but unfortunately, the company was not in a position to avail itself of his offer, as the amount that would have been required to carry out Mr. Higg's plans was entirely out of the question at the time. The entirely speculative style in which the Peak Downs Copper-mining Company was manipulated, and by means of which so many investors became public which was not warranted by the heavy losses in past times, gave the mind a bad odour amongst the miners, actual facts relating to it as a mine, but which have ever since militated against the success of any new venture proposed in connection with it.