For the descendents of Richard Dearie and his son John Russell
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Documents about the history of Malayan Collieries. 1908-1922
Transcribed by Claire Grey unless otherwise stated.
1908 Coal is discovered in Malaya.
The Malay Mail, Saturday, 26 February 1910
Coal at Rawang. Those who were privileged to visit on Tuesday the coal mine recently discovered near Rawang had an interesting experience. In addition to Mr. F. J.B. Dykes, Senior Warden of Mines, who had arranged the visit, there were Messrs. W. Trump Director of Public Works, W. Eyre Kenny who is to act for Mr. Dykes, when the latter goes on leave, M.A.V. Allen, Assistant Warden of Mines, R. G. Evans, A.R. Mynott, H.P. Clodd and A.E. Bailey. Mr. S.P. George is resident on the coalfield. The Government authorities were informed by a Malay some months ago that some black looking chunks like coal were lying about the jungle, and enquiries were at once made, with the result that operations have now been in force for the past few months. The route to the mine is via the Kuala Selangor Road from Rawang. About 8 miles from Rawang a track strikes off to the left of the road through the jungle, and a walk of about three miles through this jungle brings us to the head of the mine. Shafting and tunnelling has already commenced. The members of the party descended the shaft about 10 feet down and proceeded through the tunnelling, when a fine seam of coal was seen. The tunnel continues for some 50 yards and pits have already been sunk in various directions. The surface coal is somewhat light and possesses a good deal of shale, but the lower appears to be pure coal, being quite black and fairy hard. It contains we understand about 46 per cent of fixed carbon. Experiments have been made with it up in Perak. In one case an engine was started with wood fire, and on the coal being substituted the pressure rose from 60lbs to 75lbs. It is thought that it may be useful for working a suction gas plant. We understand some 20 acres have already been proved and this represents a quantity of some 600,000 tons. Further pits have been sunk in extended directions and these also give indications of coal. It is quite possible that there may be a million tons within a comparatively small area. The commercial quality of the coal has yet to be proved, although tests have already been made, and the results, we are told, are encouraging. The cost of transporting the coal under present conditions is, of course, very heavy as the coal has to be carried on bags by coolies through the jungle to the Kuala Selangor Road, and then conveyed by bullock cart to Rawang. A proposal is under consideration for a light rail track to be laid, and, if this is done, the coal should be able to compete easily, with imported coals and, provided the quality proves to be really satisfactory in use, a very fine addition to the other valuable products of the F.M.S. will have been recorded.-
Letter November 17th 1908 From Mine’s Office Serendah to Warden of Mines, Kuala Lumpur.
Sir, I have the honour to supply herewith further details regarding the find of supposed coal in the neighbourhood of the Kuala Selangor Road. 2. Last Thursday the 12th I visited the place in company with the finder, an old Malay (75) by name Hadji dul hadji. 3. We left the K. Selangor Road at about the 24 and half mile and following a woodcutter’s track south of the K. Selangor road struck the cleared trace of the Rantan Panjang Forest reserve boundary. This we followed for about 4 – 5 miles, finally bearing south again for about one mile, we reached the spot at which the specimens had been obtained. I attach a sketch map showing the approximate position of the place, which may lie in either the Kuala Selangor district or in that of the Ulu Selangor. 4. The old Malay holds a dulang pass. 5. The place lies in dense jungle and the shallow pits ( 1ft) where the mineral was found lie at the bottom of a gentle slope. The coal was found in 3 or 4 small pits along the bottom of this slope. 6. I extracted several large samples from one of these, which samples I have brought back with me. 7. I could tell nothing of the probabilities of the deposit if any, from the few holes filled with muddy water. A few small prospecting pits would need to be sunk about 10 feet above these holes on the rising ground and a few on the other side of them in order to test the inclination and width of a possible seam. 8. I suggest an analysis of a sample to determine its constituents and calorific properties. Should anything result from this then the pits might be sunk at Government expense. I have etc: Sd: V.L. Aspland. Inspector of Mines, Serendah.
Document in the National Archives of Malaysia 5841 1908
Letter 28th August 1909 . Papan, Perak.
To the Senior Warden of Mines Sir, I have the honour to submit the following short report on the small sample of coal tested today on the Chain Grate Stokers at Siputeh Power House. (1) The coal is very similar in physical aspect to the Brooketon coal supplied by the Sarawak Government. If anything, it is slightly duller on the fracture, possibly due to a higher percentage of moisture either combined or occluded. (2) When put on the grate, the coal caught fire easily and burned with a short flame, quickly giving up all its gaseous constituents. (3) It continued to burn with a red glow, giving out apparently a good heat; in almost an identical manner to the Brooketon Coal. (4) It appears to burn away almost completely to a fine ash leaving no clinker and but very little residue. (5) The coal probably requires a good draught and close fire bars – so as to prevent the finer half burst portions from dropping through – as it has no tendency to clinker or cohere at all, each particle remains separate and would unless the fire bars were close probably drop through in half burst condition. (6) Tried in a blacksmith’s forge the coal burnt freely and gave out a good deal of heat. Its non clinkering properties make it useful in this direction. I should be very glad to give the coal a proper trial at the Power House and submit you a report on the same, as to its steaming qualities. I do not however anticipate that it will quite equal Brooketon Coal. For this please let me have as large a parcel as possible- so that the test may be over a fairly long period to give the coal a proper trial- 10 tons would be sufficient for 1 day- 1and half days. I have etc. sd W.M. Currie, General Manager.
Document in the National Archives of Malaysia 5841 1908
1909 The Government tests the coal.
Letter 15 January 1910 From Geological Department to Secretary of Resident, Selangor. Geological department Kuala Lumpur. Batu Gajah. Lignite near Rantau Panjang
Sir:- I have the honour to submit the following remarks in connection with a recent conversation with the British Resident on the subject of the lignite now being prospected by the Mines Department near Rantau Panjang. 2. I visited the locality on January 10th 1910 and concluded from what I saw that even if the seam being opened up now proves to be of too poor quality to use, the neighbourhood should be thoroughly examined, for it is possible that seams of “coal” as good as the Sarawak “coal”, and oil may occur. 3. I learned from Mr. Aspland, of the Mines Department that it was proposed to bore through the present seam, with a hand boring plant, and I told the British Resident that if any boring were to be done the big steam boring plant belonging to the Mines Department and now in Kuala Lumpur, would, if employed, give very valuable information, a result that can hardly be expected from a hand boring plant, seeing the nature of the rocks to be pierced. The steam boring plant is, I believe, capable of boring 1,000 feet, and I should be inclined to put a bore as far below the exposed seam of lignite as possible, in search of better seams of lignite or of coal, and of deposits of oil. 4. I propose to explore the neighbourhood myself this year, and in the event of a deep bore being put down, would wish to be present during the operations in order to prepare a record of the rocks passed through. I have the honour to be Sir, your obedient servant. J. B. Scrivenor Geologist F.M.S.
Document in the National Archives of Malaysia 5841 08
To Senior Warden of Mines from Mungo Park.
Sir, In accordance with your instructions I have the honour to submit herewith my report upon the recent coal discovery at Rawang:- 2. I paid a visit to the prospecting pits on the 9th of March and took a number of samples from that portion of the outcrop, which has been exposed in the adit driven across the southern portion of the latter. On my return with the aid of a calorimeter made at the Kuala Lumpur factory, Mr. Eaton and myself tested the evaporative value of the samples thus taken for comparison with the coals of local use; the latter coals were also tested under similar conditions. In my opinion such a series of tests being the most comprehensive way of showing the value of the coal recently discovered. 3. Mr. S. G. George has also kindly allowed me to use a prismatic survey of his showing the location of boring pits sunk through the surface alluvium, indicating the nature of the bed rock struck in these bores. I am also indebted to Mr. George for information regarding the topographical features of those parts of the neighbourhood which I was unable to inspect during my necessarily short visit to the property. 4. The information at present being limited, my opinions must be taken as merely opinions, and not as proved conclusions. However all the minor indications observed by me corroborate each other so exactly, that I have good reason for believing that my views as to the nature of the deposit will ultimately be found to be correct, notwithstanding the fact that my deductions are at variance with the opinions of some of those who have previously visited the property. Nature of the occurrence. 5. Some forty bores have been run through the surface alluvial proving the outcrop over an area of about 20 acres. The surface width of the outcropping coal being shown as about 500 feet, and the seam or seams have been exposed for about half a mile along the strike. 6. The formation appears to dip approximately South 15 degrees W at an angle of about 15 degrees, very clear records of dip being shown in the adit. The strike is approximately E 15 degrees S to W. 15 degrees N a direction which if persisted in would carry the outcrop to the neighbourhood of Pengkallen Kundang in the East and would cross the Kuala Selangor Road between Batang Berjuntai and Kam Kuantan in the west. The information at hand at present is however not sufficient to indicate whether such an extended continuity of the outcrop is likely to occur. As far as can be ascertained at present the coal is overlaid conformably by beds of shale. The coal in its turn resting conformably upon shale beds. From the few specimens shown me on the property the footwall shales seemed to be darker and harder than the shales in the roof of the seam. The former shales should form a good floor for mining purposes if they immediately underlie the coal. 7. The outcrop seems to be marked topographically by slight surface depression. The surface of the ground being more or less marshy. From what Mr. George tells me of the topography to the East of the borings it is possible that the seam may be faulted in that direction. Nature of the Coal. 8. Only about one third of the coal across the outcrop has been sufficiently exposed to allow samples to be taken. The third in question representing the upper seam or portion of the seam. I have mentioned seam or seams throughout as the outcrop has not been proved yet to be homogenous in character. The third in question however represents a seam of over thirty feet in thickness with a few bands of shale running through it. The coal is hard and should stand well for mining purposes, though its hardness will probably prevent the use of chain or sawcutters when mining commences. 9. I note that the coal has been termed a lignite by the Government Geologist. It differs very materially from the German lignites or Brauenkchler with which I am acquainted, but in chemical composition it has a greater resemblance to the latter than to the local coals commonly in use in Great Britain. I would describe it less definitely as a Hydrous Coal, the amount of moisture present in a specimen analysed by the Government Chemist being 20%. The chief disadvantage of such coal is that it tends to crumble if stored or stacked. The moisture present also tends to lower evaporative value. The tendency to crumble and the moderate evaporative value of the coal seem to be its only disadvantages. The amount of ash is exceedingly small (as analysed) and the coal seems to be singularly free from sulphur and it should be possible to mine and screen it free from shale and dirt of any description. 10. In a country such as this where coal has to be brought from India, Borneo, and Australia, the discovery is of great economic importance. During the year of 1908 the FMS railways consumed 53,147 tons of bakau firewood at $3.34 per ton and 19,440 tons of coal at $9.60 per ton. On the evaporative value tests the former could be replaced by 24,000 tons and the later by about 26,000 tons of Rawang coal making 50,000 tons in all. The total expenditure on fuel as described above being over $350,000. The Rawang coal would be in a position to compete with the imported coal and bakau if sold at $7 a ton. I believe that during the present year the price of imported coal has been reduced but in my opinion the conditions are such as to make it impossible for foreign coals to compete with Rawang coals wherever the latter are practically adaptable for steam raising in this country. 11. I append below a statement of the comparative values of coal in local use. All the results were obtained by Mr. Eaton and myself in the laboratory at Kuala Lumpur. In noting the evaporative value of 10.6 for Rawang coal I may add that in 1906 I made a very large number of tests upon Transvaal Coal and that the average results obtained by me showed a lower evaporative value than the samples obtained at Rawang. During the year 1906 about 3 million tons of this Transvaal coal were raised and sold at the pits mouth for 5/5 (or slightly over two and half dollars) a ton. Tests of evaporative value. Thickness of seam represented by sample. Lbs of water evaporated per lb of coal. Rawang Coal a. 3’ 9.0 b. 4’2” 10.2 c. 6’9” 10.6 d. 4’6” 9.6 e. 8’0” 9.8 f.10’0” 10.6 Total Average 36’5” 10.1 Borneo coal used Electric light station 14.4 Chinese anthracite used at Salak South Mine 12.4 Australian Coal from FMSR 13.4 Indian Coal (present contract) FMSR 13.2 Indian Coal (old contract) FMSR 13.6 The samples of Rawang coal were taken from the outcrop a most unfavourable situation. Moreover the whole outcrop section is not yet available. It is therefore a reasonable assumption that when the whole of the seam is exposed in depth these values can be improved upon. The weathered nature of the outcrop should be born in mind when attempting any tests upon a larger scale. 12. I am indebted to Mr. Forbes of the FMS railway for the information that in practice one ton of coal has an evaporative value equivalent to 3 tons of Bakau firewood. The evaporative value of the bakau may therefore be taken as about 4.5 for comparison with the fuel tests previously mentioned. The last Railway report gives $4.34 as the price of this fuel; a price that is likely to be maintained if not increased. 13. In connection with working coal a few rough facts and figures are of interest to indicate the value of the coal on a commercial scale. The Labuan collieries have a capital of $60,000; therefore $500,000 may be taken as a general figure for colliery equipment. The cost of hewing coal in Great Britain is less than $1 per ton (underground expense only). The total cost of coal winning in American coal fields never exceeds 2.70 a ton (Coal and Metal Miners Pocket book). The sale of Transvaal coal has already been given. From these figures a maximum working cost of $3.00 a ton can be safely assumed, a cost at which coal could be sold for the same price as Bakau with a margin of profit. As the coal has more than twice the heating power of the wood it would probably be readily marketable at $5.00 a ton. With two dollars a ton profit the sale of 50,000 tons to the FMSR would yield $100,000 or 20% on the assumed capital previously taken. This return to the Government would be in addition to any saving that would be effected by using coal at $5 a ton, no outside sales are also taken into consideration in the above figure. These rough facts and figures are not put forward in any authoritative way, they are merely given as indicative of the fact that the government in supporting a future coal industry in this country, will not only give stimulus to manufacturing in this country by fostering a great source of commercial prosperity, but will also receive a substantial return for any money invested. Prospecting. 14. From what I have previously written it is evident that this find is, in my opinion, a valuable one, and it is important that vigorous measures should be adopted with a view to opening up, and developing this deposit. 15. It is an axiom amongst miners that a colliery well prospected is half won. The idea is based upon the fact that whereas in a metal mine the main object is to follow up and extract payable areas from a lode of variable values, in a colliery, the coal is usually more or less of uniform value, and greater attention is paid to laying out the workings, so as to ensure cheap and efficient mining. Thus, colliery shafts are sunk with a certain scheme of working outlined beforehand, and are located with a view to underground drainage and haulage and ventilation. Such scheme can not be outlined unless full details are available for its conception. 16. No attempts to work the property should be made until the ground has been thoroughly prospected. I mention this because a very small amount of irresponsible mining along the outcrop may (the seam dipping as it does) form a reservoir which might have to be subsequently drained. 17. In prospecting I consider the most important step, at first, is to obtain by boring a complete cross section of the formation along the line of the dip. The dip of the formation at the outcrop being about 15 degrees. Each bore hole will prove the ground to the North to the extent of four times the depth of the formation passed through. (In the latter measurement, surface alluvial, lying unconformably on the formation is to be neglected). Thus a bore 123 feet deep passing through alluvial 23 feet, and shale 100 feet will probably indicate a shale outcrop to the north for 400 feet. Very complete notes should be kept of such boring, and samples of all rocks in the formation should be kept for reference. Such samples are certain to be valuable when lateral investigations are made along the line of strike. A complete section having been obtained along the line of dip, lateral investigation may be started and I would suggest that in the first instance investigations should follow the strike eastwards viz. in the direction of the Railway line, as if coal of good quality is found in this direction money may be subsequently saved in Railway sidings. Boreholes in lateral investigation can be placed a considerable distance apart as even if they do not strike coal a good indication of the whereabouts of the seams can be obtained by comparing bore sections with the complete section of the formation as previously described. Where faulting is proved to have taken place the location of the bores must be modified to suit the circumstances of the case. 18. While the section along the line of dip is in progress, work might be carried on as heretofore with the shallow boring set. I would suggest that at every ten chains East along the line of strike three or four bore holes be set transversely across the strike. I would strongly recommend a topographical survey of the neighbourhood being undertaken at once. Such a survey would be useful as an aid in prospecting and will be absolutely necessary later on when sites for shafts, surface plant dumps, and so forth have to be laid out. 19 In this later connection I would depreciate any Public Works of a permanent nature being set out in the neighbourhood of the seam until further investigation has taken place, as the most suitable point for attacking the coal seam is quite likely to be at a some distance from the spot where exploration is at present in progress, (a rough track for the conveyance of boring tools and temporary quarters are of course necessary). The inflammable nature of the colliery dumps also precludes their location in the near neighbourhood of buildings. The topographical map mentioned above should be roughly coloured and show sources of water supply. I have etc. sd. Mungo Park, Certified Colliery Manager (Transvaal) Inspector of Mines F.M.S.
Document in the National Archives of Malaysia.
Letter: 21st March 1910 from Office of Senior Warden of Mines to Fedr Secy F.M.S. Kuala Lumpur.
Subject:- Mr. Mungo Park’s report on the Rawang Coal Deposit. Sir, I have the honour to forward for your information a copy of a report by Mr. Mungo Park on the Rawang Coal Deposit. 2. I agree with Mr. Park regarding comparative tests as mentioned in his paragraph 2. 3. The area now proved is considerably in excess of 20 acres. 4. This coal is undoubtedly a Hydrous Coal, and as such will not stand storage, and would have to be used, as soon as practicable, after being mined. 5. In my opinion the economic value of this coal largely depends on whether it can be used profitably, in Suction Gas Plant; and though no tests have been made, there are no grounds for doubt on this point, as the percentage of sulphur is very low. 6. One to three is a reasonable proportion to take for comparison with Bakau Firewood. 7. It is premature to say more than that, this discovery is a valuable one, and I am not prepared to quote costs, either capital or working, until the extent of the deposit has been proved; but I agree that no attempt to mine should be made until prospecting has been completed. 8. In another letter, I am making recommendations to carry out the work of thoroughly prospecting this find. 9. A topographical survey of the neighbourhood is indispensable, and I would ask that the Survey Department might be instructed to aid in this direction. 10. I agree that no permanent works should be undertaken until the situation is fully defined. 11. Attention is invited to the fact that this find is so far proved that expenditure on defining its extent is warranted, and is urgently required vide my No. 58/10 of 1910. I have the honour to be, Sir, Your obedient servant, sd. W. Eyre Kenny Ag. Senior Warden of Mines ,
F.M.S. Document in the National Archives of Malaysia (155/10)
Letter: 17th June 1910 From London and Malay Syndicate to British Resident applying for prospecting licence for Rawang Coal. (Received 8 July 1910)
London and Malay Syndicate Limited, 16 King William Street, Strand. Sir, I have the honour on behalf of my Syndicate to apply for a prospecting licence to prospect for coal over the area of land near Rawang in Selangor, where I understand that the Government has discovered Coal and Lignite. I have already made this application to the secretary of State for the Colonies, who has informed me that the correct procedure is to apply to you. My Syndicate is prepared to at once commence prospecting operations on a large scale and will when it is ready send out a first class Coal Expert to report on the property. They would require fro the Government the right to select a thousand acres in blocks of not less than 100 acres each, in the event of the Expert’s report proving favourable. I attach herewith a list of our principal shareholder to enable you to see our financial strength and as a guarantee of our position; from which you will understand that in the vent of a favourable report we shall be able at once to form a large Company for the proper working of the field. It is a matter of course understood that any reservation of Imperial Preferential rights or such protection for the local mining industry as may be considered fair would be accepted by my Syndicate. I will send separately Bank draft to cover the fees for the above prospecting licence. I have the honour to be, Sir, Your obedient servant A T Nation Manager. List of Shareholders Lord Grimthorpe, B. de Bertodano Esquire. C. de Bertodano C.E., Platt & Co. Turner Schon & Co., Marshall Sons & Co. Ltd. Britannia Iron Works Gainsborough, Skinner Turner Esquire, A. J. Plowes Esq. (Further names will follow)
Document in the National Archives of Malaysia 2961 10
Letter from the London and Malay Syndicate Limited, 16, King William Street, Strand. London. 19th August 1910 to W. Eyre Kenny. Senior Warden of Mines Kuala Lumpur, F.M.S.
Sir, I have the honour to acknowledge the receipt of your letter No 337/10 of July 12th 1910. 2. My company would be perfectly prepared to abide by the conditions contained in paragraph 2 of your letter under reply in the event of the lease being applied for and issued to the company. 3. Since last writing to you we have had some correspondence and an interview with Mr Dykes. What we desire is a licence to prospect over a considerable area of land, with the immediate right to take up, if prospecting is satisfactory, a large area of state land, with the further right to be allowed to take up an equivalent right of state land if we observe the conditions of the lease to the satisfaction of the Government. In short what we ask for is a definite promise of Land if prospecting operations are satisfactory and a definite reserve of State Land adjoining for further prospecting with a definite promise of a lease of such area if the further results of the prospecting are satisfactory. 4. I note that no export duty will be charged. “Pit Head Royalty” is mentioned. I am unable to say now definitely what Royalty we should be prepared to give in consideration of an issue of Lease or Leases under the Mining Enactment of 1904. It is a point to be agreed upon after we have prospected the land and found out the extent and value of the deposit, but we feel certain that the Government would not contemplate exacting from us a Royalty that would be irksome to our enterprise. 5. In paragraph 3 of your letter you ask for information as to (a) capital expended and (b) The name of our proposed advisor. We are prepared at once to expend anything up to £10,000 in prospecting the land and proving the extent and value of the deposit, and we are prepared to despatch at once a Mining Engineer to prospect on our behalf. With regard to a Professional advisor we have consulted Mr. Dykes. His opinion is, and we are of the same opinion also that the first operation is to prospect the land thoroughly by shafts and with a diamond drill to find out the area and extent of the deposit, and from samples of the coal sent home, to then gauge the value for raising steam. When once we are in possession of these facts we shall employ the best professional advice we can obtain, and we are now in a position to do so, but at present do not see that such a course is necessary. 6. The Shareholders of our company are influential men who are prepared to work the land on such reasonable conditions as the Government may think fit to enforce and should after prospection the results seem unfavourable we should then determine our negotiations. On the other hand if prospecting is satisfactory then it would be our intention to immediately exploit and develop the land. 7. Mr. Dykes has given us to understand that to enable us to place coal on the market, a cart road, or a light Railway will have to be made to the most convenient point on the Railway, and we have no doubt that facilities on terms to be agreed upon would be given us by the Government to make a road or Railway on state land and also facilities for making sidings to connect with the Main Line in the F.M.S. Railway. 8. I herewith enclose an application form for the land we require so that there may be no doubt about this matter we ask for (a) The right to prospect over the area mentioned in Notification No. 22 (b) The right to apply for the lease over the total area held under prospecting licence or such less area as we may select and (c) A reserve to be held for us of an equivalent area, lease for which is to be issued if work satisfactory to the Government is carried out on the first lease or leases issued or (d) Such modifications of the request above mentioned as may seem suitable to the Government. 9. We are dispatching this day cable to the following effect “ have consulted Dykes letter despatch asking for prospecting Licence over coal area please wait and cable us acceptance “ offer or not”. I have etc, Sd. A. T. Nation, Manager, London and Malay Syndicate Limited.
Document in the National Archives of Malaysia 4022 1910
Letter from the London and Malay Syndicate Limited, 16, King William Street, Strand. London.W.C. 12th August 1910 to W. Eyre Kenny. Ag. Senior Warden of Mines Kuala Lumpur, F.M.S.
Coal Concession Sir, I beg to acknowledge receipt of your letter of the 12th ultimo and to thank you for the information enclosed therewith, as you have suggested I have communicated with Mr. Dykes requested an interview. You are no doubt aware that at this period of the year most people of importance are away from London for the holidays this will cause some little delay in furnishing the name of our professional adviser and other information in respect of capital which you have asked for but will probably follow by next mail, meantime I am instructed by my Directors to say that there will be no unnecessary delay on their part- that they are prepared to spend at least £5,000 in preliminary explorations, and they anticipate no difficulty whatever if their investigations are satisfactory in finding whatever capital may be required for working the whole field. As proof of their ability to do this I append at the foot hereof the names of our principal shareholders. I delay forwarding the application for which you sent me until I have had an interview with Mr. Dykes and our coal expert when I hope to write to you fully with the details as to methods of working and transport which you require. Thanking you for your kind courtesy and the full information with which you have supplied us. I have the honour to be Your obedient servant, sd. A. T. Nation, Manager. London and Malay Syndicate Limited. The Earl Dysart Lord Grimthorpe Sir. R. L. Lucas- Tooth, Bart. Sir William Covey, Bart. B. de Bertodare Esq. ( The Court marales) John H. Platt ( Platt Bros: Oldham Cotton Engineers) G. H. & A. M. Jay, Stockbrokers L. H. Keeling, Barrister at law.
Document in the National Archives of Malaysia
Letter 8th September 1910 From Senior Wardens office Kuala Lumpur to Secretary to Resident Selangor. Subject: Applications for prospecting rights over the Rawang Coal Area
Sir, I have the honour to report on applications for prospecting rights over the Rawang Coal Area as follows, 2. Applications in fairly definite form have been received from the following firms, (a) Messrs. Boustead Hampshire and Co. (b) Messrs. Patterson and Simons (c) The London Malay Syndicate. And an inquiry has been made by the manager of Pusing Pharu Limited. 3. Firms a and b are I believe, still in communication with their London Agencies regarding some details which I asked for. 4. The copy of the latest communication from the London Malay Syndicate is attached- their first letter is your No. 2931/1C. 5. It is a difficult matter to judge between two firms such as Messrs. Boustead Hampshire and Company and Messrs. Paterson and Simons, both of whom could certainly command sufficient capital, and would have sufficient business aptitude to employ trained and experienced men on prospecting and development. 6. If Government desire to give the licence to local firms, I could suggest that the two above mentioned concerns should be invited to join hands and form one syndicate. 7. The London and Malay Syndicate have a number of good names on their Roll, and I also learn in a private letter from their Manager that their association is known to Sir. Francis Hopwood K.C.B.- K.C.M.G., Permanent Under Secretary of State for the Colonies. 8 As it appears desirable to reach a settlement without further lapse of time, I would advise that Government either request the Local Firms to form a Syndicate or grant the Licence to the London Malay Syndicate. 9. With regard to the latter recommendation, I believe that the London and Malay Syndicate have not as yet filed their formal application with the District Officer, Ulu Selangor; but I don’t think that this should be allowed to prejudice them. I have the honour to be, Sir, Your obedient servant. Ag Senior warden of Mines. FMS.
Document in the National Archives of Malaysia 4022 1910
Hand written letter from The London and Malay Syndicate, Limited. 4, London Wall Buildings, London E.C. 14th December, 1910 to W. Eyre Kenny, Esq., Acting Senior Warden of Mines, Kuala Lumpur FMS.
Dear Sir, Referring to our previous correspondence and to our cable to you reading as follows: - “Can you give prompt despatch- Coal Licence- please issue in the name of Rawang F.M.S. Coal Syndicate Ltd. We receipt by telegraph ?£10 cost licence etc. Prospector and machinery will be despatched immediately if we receive cable that licence issued. LonemaCo.” The position leading up to and the reason for this letter are as follows: - Immediately upon receipt of your esteemed favour of the 27th September last we set about forming a Company with a sufficient available working Capital to adequately deal with the Concessions referred to in your said letter as we realised that the moneys required for this purpose might be more than this syndicate as then constituted would have power to provide, and we were anxious that no difficulties should arise when matters were once in hand through any want of necessary cash. We have accordingly promoted and registered a company called “The Rawang (F.M.S.) Coal Syndicate Limited” This company is registered with a Capital of £25,000, and we have made arrangements whereby it has an actual cash working capital of an amount which we believe is amply sufficient to deal with the concessions above referred to, in an expeditious and thorough manner. This new Company having already been registered, we thought it better that the License should be granted direct to it rather than to the existing Company, as if this latter course was adopted we should immediately, in receipt of the licence, have to apply to you for a transfer thereof, or the issue to the new company of a fresh Licence in substitution therefore. All arrangements have been made by the new Company whereby, immediately we receive from you notice that the Licence has been granted, competent prospectors together with the necessary machinery will forthwith be despatched, and the work of prospecting energetically proceeded with. I have etc. Sd. T. Nation, Manager London & Malay Syndicate Ltd. P.S. Please note the change of this company’s address. A new Secretary has been appointed, and the further correspondence will be carried on by him. The office of the new Company (The Rawang (F.M.S.) Coal Syndicate Limited) is in the same building, and the Secretary of that Company is the same gentleman as is the Secretary of this Company. Sd. a T. Nation.
Document in the National Archives of Malaysia 4022 1910
From the Annual Departmental report F.M.S. by W Eyre Kenny, Senior Warden of Mines for 1910.
“ Further preliminary prospecting was carried out departmentally on Rawang coal area, and a company has been registered in London as the Rawang F.M.S. Coal Syndicate Ltd., to prospect and work it with a capital of £25,000. His Excellency the High Commissioner accompanied by the Residents of Selangor and Pahang paid a visit to the site on 5th May 1910, and examined the adit which had been opened. This mineral has been identified as hydrous coal, laboratory tests have been made, the results of which agreed with a trial made by F.M.S. Railways; but as the samples were of the outcrop near the surface, results cannot be regarded as more than experimental. On the railway this coal steamed well; but the consumption was higher than that experienced with the coals in general use. A local trail in a suction gas plant showed the coal to be unsuitable for such a purpose, a result which, I am informed, was corroborated by a trail made by Messrs. Hornby & Company in England.”
Document in the National Archives of Malaysia
Report on Rantau Panjang Coal Measures by the Government Geologist Paper No. 4 of 1911 F.M.S. to be laid before the Federal Council by Command of his Excellency the High Commissioner. Geologists Office, Batu Gajah, 17th January 1911.
(Report prepared according to instructions in letter of 10th September 1910. Includes a map compiled from several sources “which will be found to differ from the State map published in 1904”. Sir, - During 1908, a Malay named Haji Abdul Hadi, while prospecting for tin ore in the dense jungle that lies to the south of the Rantau Panjang Forest Reserve and west of the Kuang Pengkalan Kundang cart-road, found in the swampy bed of a small stream pieces of black coal, some of which were sent to the office of the inspector of Mines, Kuala Kabu. In September some fragments, weighing about 10 grams, were sent to my office by the Warden of Mines, Selangor. In November, at my request, a larger specimen was sent to me and meanwhile the Mines Department had examined the locality, and steps were taken for prospecting, which continued throughout 1909 and until May 1910, when it was suggested that I should take over the work and utilise the steam- boring plant belonging to the Mines Department, but a decision to leave all further prospecting to private enterprise put an end to the operations and the locality has been practically deserted ever since. 2. In September, 1910. I was instructed to examine the surroundings of the coal with a view to” ascertaining the probability of the extension and occurrence of coal bearing country in areas outside the proposed prospecting licence, and to advise as to tracing the coal to a workable point as close to the railway as possible.” In order to carry out these instructions, the greater part of November and December 1910 were spent in the vicinity of Rantau Panjang, and I now submit the conclusions at which I have arrived. 3. Situation and extent of coal.. 4. Operations by Mines department..5. type of coal..6. classification of coals.. 7. Analysis of coal.. (with table) 8 evaporative value..9. moisture content..10. steam tests.. 11. Price..12. Topography of neighbourhood and seam “whole of this part of Selangor is covered with virgin jungle” 13. View from top of Bukit Panjam.. 14. Rolling hills... 15.. roads..16. jungle drainage.. 17..geology of neighbourhood.. quartzite, clay-slate, 18.quartizite 19. Clay slates..20. shales above coal seam 21. Coal measures soil orange.. Quartzite yellow or reddish..22. relations of coal measures to quartzite and clay slate age of rocks.. 23 coal measures younger than granite..24.. coal measures tertiary.. fossil plants 25. Flora different if coal measures same age as quartzite..26. fossil plants latin names..27. coal made of thin reed like plant.. 28. More fossil plants will identify age.. 29. Conclusion Sketch map shows boundary, best way for railway would be along Klang River and then up unnamed left tributary. 30. Places where more coal may be found marked on map.. 31. May be other patches, patch one square mile is on a watershed which explains its preservation… 32. Searches on other low watersheds… 33. Unlikely to be more on higher granite hills.. 34.thanks to Mr. H. N. Ridley for examining fossils, Mr. A. M. Burn Murdoch conservator of forests, Mr. Mungo Park for help in obtaining coolies. J. B. Scrivenor. Geologist, F.M.S. (Map attached.)
Document in the National Archives of Malaysia 2505/1911
Letter from The Rawang F.M.S. Coal Syndicate Ltd., 4, London Wall Buildings, London E.C. 17, February, 1911 to Ag. Senior Warden of Mines, Kuala Lumpur.
Dear Sir, I beg to acknowledge receipt of your cable dated the 4th instant, reading: -“Do not delay qualified prospector” to which we replied on the 6th inst: - “ We have appointed Osborne Chappel Managers; operations beginning immediately. Have not yet received Licence” which, however crossed your letter of the 16th January (received on the 7th instant) informing us that the Licence would be handed over to our Representative at Kuala Lumpur on production of the necessary authority. On receipt of this letter, we replied on 8th inst: - “Referring to your letter of 16th day of January will you give licence to Osborne Chappel” On the 15th inst: your answer came to hand as reading:- “ may proceed” I am instructed by my Directors to express to you their appreciation of the help which you have rendered this Company in forwarding its interests, and to assure that no time will be lost in pushing on prospecting operations. Mr. Osborne of Messrs. Osborne & Chappel, is at present in this country, and has cabled his firm asking them to commence prospecting immediately. I am, dear Sir, Yours faithfully, Sd. C. Leslie, secretary.
Document in the National Archives of Malaysia
Letter from Osborne and Chapel, Ipoh, Perak, 20th October, 1911, to Senior Warden of Mines, F.M.S., Kuala Lumpur.
Sir, We have the honour to acknowledge receipt of your letter of the 18th of October, No 526/11, covering a copy of a letter from the General Manager of the F.M.S. Railway in reference to the Coal tests which they propose carrying out with Rawang Coal. As soon as sufficient quantity of Coal has been collected and carted to Rawang we will take the necessary action laid-out in the General Manager’s letter at the same time, we will inform him of what we are doing. Since last writing to you in reference to the Prospecting which has been done on the property, we would like to take this opportunity of informing you that we have proved an area of 150 acres to up to date, exclusive of the area composed of the outcrop, which gives, on a conservative basis, a tonnage of Marketable Coal of over 3,000,000 tons. In view of our conversation with you to-day and the above figures for the tonnage which we now furnish we would like, if possible, to make arrangements at an early date for Mr. Lucas to inspect the property with our representative so that we know exactly what is considered necessary in the way of confirmatory work by your department. We have the honour to be, Sir, Your obedient servants, Sd. Osborne & Chapel.
Document in the National Archives of Malaysia 4022/1910
Page 2 of Letter from Senior Warden of Mines to ? ( page 1 missing)
of Mr. G. D. Lucas for this duty, I propose to ask the British Resident, Perak, to allow him to come here for a week or ten days as soon as possible. 5. Prospecting operations have progressed more rapidly than heretofore, and it may become advisable to commence the construction of the Railway connection next year and to order the necessary Rolling Stock; but I am not prepared to make a final recommendation until Mr. Lucas has verified the prospecting results and sampling has shown that the coal is of a marketable quality. I have the honour to be Sir, Your obedient servant, Senior Warden of Mines, F.M.S.
Document in the National Archives of Malaysia
F.M.S. Annual Departmental Report 1911 (J. B. Scrivenor. Geologist, F.M.S) The Rantau Panjang Coal Measures 17.
During the year prospecting work by diamond drill, hand-boring tools and pits, has been carried out by Messrs. Osborne & Chapel, with Mr. Mungo Park as Resident Manager, on behalf of the Rawang Federated Malay States Coal Syndicate, Limited of London. This has been followed with great interest in connection with my report on the coal- measures as a check on the accuracy of the limits mapped by means of the soil derived from the coal measures, and its difference from the soil formed from older rocks. As far as can be judged at present, it appears that the area was too restricted, since the soil from the older rocks, which form hilly ground overlaps that of the coal measures. This may be entirely due to soil creep. In para. 29 of my report I remarked that in the map the boundary- line of the coal measures had not been closed on the south because the coal- measures might extend into the swampy ground beyond. Mr. Mungo Park has now proved by boring that the coal measures extend into this swamp nearly as far as the three-mile radius from the adit. As yet no prospecting has been done at localities indicated in the map where more coal may exist. (18. Notes on more fossil leaves identified by Mr Ridley).
Document in the National Archives of Malaysia
F.M.S. Annual Departmental Report 1912 p.7
Rawang Coal Area 32. The Rawang Coal Syndicate, Limited completed their prospecting operations and a quantity of coal amply sufficient to justify working on a large scale has been proved; the Government have decided to connect the field with the railway system and the survey of a branch line from Kuang Station was in hand at the end of the year. A considerable deposit of oil shale was discovered in the course of prospecting, but its oil content was too low for commercial purposes. The clay on this field was tried for making tiles and pipes and proved to be suitable. No deep boring was done, the greatest depth investigated being 306 feet, so that there is still a possibility of further discoveries being made in the future. It is regrettable that experiments have not been conducted by the Syndicate on briquetting this coal, and on its use in Dowson double action suction producers. Further trials were conducted by the railway authorities which tended to confirm the results previously attained.
Document in the National Archives of Malaysia
The Malay Daily Chronicle, Wednesday , October 23, 1912. Extracts from report of Chief Secretary, Mr. E. L. Brockman C.M.G. on the Federated Malay States for the year 1911:
“Coal. Progress was made with the prospecting operations in the coal area at Rawang, or rather Rantau Panjang, as it should be called. A sufficient quantity of coal has already been located, and experiments have been made with a view to testing the quality. It is proved that the coal has a commercial value, and the promoters of the undertaking hope that it will find a sale among the mining community. It will be a valuable asset to the country if it can be produced at such a price as to compete with firewood, and thus save the forests of the Federated Malay States from the destruction with which they are threatened. Fuel is becoming a serious question for the mines, and a cheap coal will benefit the industry very greatly.”
Copy of Letter: October 25, 1912. From Rawang F.M.S. Coal Syndicate Ltd., London, to Messrs. Osborne and Chappel, Ipoh 25/10/12
Dear Sirs, I am instructed by my Directors to inform you that Mr. J.A. Russell, by the terms of an agreement, dated October 22nd, is financially associating himself with this Company. My Directors have also been advised, that in the interests of the Company, they should endeavour, as far as possible, to obtain the co-operation of the Chinese and the big consumers of fuel in the F.M.S. and allow of their becoming financially interested in the future of the coalfield. The time appears to be now ripe for this action. There seemed to be difficulties in bringing any such scheme to maturity, without enlisting the services of someone thoroughly conversant with the Chinese and their language, and to obviate these difficulties, the Directors have entered into the agreement above referred to. To enable him, to negotiate on these lines, Mr. J. A. Russell is proceeding to the Federated Malay States at once, and will at an early date, either call or correspond with you. My Directors request that you will consider him as an emissary from the Board, whose interests are largely identical with those of the Company, and therefore that you will give him at all times such particulars of the past and present prospecting operations as he may request, and give him full access to all plans. My Directors would also be obliged, if you would at any interviews with Officials of the Government, when his attendance might be beneficial to the interests of the Company, request him to be present with your representative, notifying the Official or Officials concerned, that Mr. J. A. Russell, is associated with the Company, and therefore in that capacity, that his interests being identical with the Company’s, due attention to his requests may be given by the Government and yourselves. It is quite likely that he may see no good arising from his being present at any interviews, but should such an opposite policy seem desirable, then I would suggest that you should before any such meetings request Mr. J. A. Russell to meet your representative and arrange as to the line of policy pursued. Should any question arise as to his locus standi, then would you please present a copy of this letter to the Official or Officials, showing that he is authorised to do so on behalf of this Company. Mr. J. A. Russell has also been given an authenticated copy of this letter. Would you please also instruct Mr. Mungo Park to give Mr. Russell access to all portions of the land, and to all plans and results of prospecting operations, and also to afford him verbally all such information as he may require. My Directors wish to make it quite clear that Mr. J. A. Russell’s position as an emissary of this Company, in no way supersedes in any respect your legal position as our present Agents and Consulting Engineers. Our agreement with Mr. J. A. Russell specifically mentions that we shall endeavour to obtain the renewal of our prospecting licence, and to apply for all land likely to be coal bearing. We have already requested you to further these objects. Any fees required over and above those necessary in connection with the application you made for the 1,200 acres, will be defrayed by Mr. J. A. Russell. Should Mr. J. A. Russell desire to be supplied with coal for trials, I should be obliged if you would comply with any request made by him. He will defray all expenses in connection with the getting of such coal. Should there be any conflict of opinion between you and Mr. Russell regarding any request he may make to you, would you then refer such matter to me by cable for the decision of my Directors. I am, Dear Sirs, Yours faithfully, (Sgn) C. Leslie. Secretary.
Document in the National Archives of Malaysia SEC. SERL 999/1913
Document: U. S. 544/10, No. 5239, Government of Selangor P.L. No. 15/12 Schedule Under Section 46 of “The Mining Enactment, 1904” Prospecting Licence
This licence authorises the Rawang, F.M.S. Coal Syndicate Ltd. of London (a) To prospect for the following metal or mineral- namely Coal and oil for the period of 18 months commencing from the 13th day of January 1912, within the area hereunder described, subject to the conditions and limitations contained in part III of the “Mining Enactment, 1904” (b) To select and receive a lease for the whole or any part of State Land within the area hereunder described on proof to the satisfaction of the Resident that the licensee has done a sufficient amount of prospecting work to entitle him to such a lease. Note. - This licence is liable to cancellation by the Resident if the licensee shall cease altogether to work within the area hereunder described for a period of 6 months. Description of Prospecting Area. The available area within a radius of 3 miles from the adit of the Selangor Coal Field near the 26th mile Rawang- Kuala Selangor Road and also such part of the additional area as lies within the Ulu Selangor district together with such part of the additional area as lies within 80 chains of the District boundary. Dated this 25th day of October, 1912. Fee paid $25/- Sd. Re E. Gordon- Walker, Collector. Rt. 6441/12 Special Conditions (Endorsed on back of License) The licensees shall prospect on the express understanding that no lease will be granted without a proviso to the effect that the Government shall always have the right of entering upon the land for the purpose of mining and taking mineral oil for the ships of H.B.M.’s Navy or for other purposes of H.B.M.’s Admiralty and further subject to such other conditions as may be settled hereafter. The issue of the lease will also be subject to the approval of the Secretary of State for the colonies. Sd. R. E. Gordon- Walker, Collector of land Revenue, Ulu Selangor.
Document in the National Archives of Malaysia 3943/13
Letter: 13 February 1913. From Osborne and Chappel, Mining and Consulting Engineers, Ipoh, Perak to The British Resident, Selangor, Kuala Lumpur.
Sir, Rawang F.M.S. Coal Syndicate, Ltd. We have the honour to inform you that we have been asked by Mr. J. A. Russell to send you a copy of a letter which we received from the Board of the above Syndicate dated October 25th 1912. You will gather from the letter that Mr. Russell by terms of an agreement, is financially associating himself the above Syndicate, and the directors have asked us if in the case of any interviews with Officials of the Government when his attendance would be beneficial to the interests of the Syndicate, that we are to request the Official or Officials concerned that Mr. J. A. Russell be present, and that due attention to his requests may be given by the Government. We have the honour to be, Sir, Your obedient servants, Osborne and Chappel.
Document in the National Archives of Malaysia SEC. SERL 999/1913
The Malay Mail, Supplement, Kuala Lumpur, Wednesday, March 5, 1913.
The Rawang Coal Measures. Their Extent and Potentialities. History of the Coalfields. The credit of discovering the Rawang coal measures belongs to one Haji Abdul Hadi bin Abdullah, a Malay who in the latter part of 1908, found beside a stream near the Southern boundary of the Rantau Panjang forest reserve, in about as out of the way place as any in mid Selangor, a piece of dark mineral which appeared to him unfamiliar. He took some specimens to the District Officer, Ulu Selangor, at Kuala Kubu, who handed them over to the mines department. The mineral was examined and found to be a species of coal. Haji Abdul was rewarded with a pension of five dollars a month for life, which, we believe, he subsequently compounded for a lump sum in order to visit Mecca, and so he passes out of the story. An Inspector of Mines visited the place on Nov 17th 1908, and the Mines Department, impressed by the value of the discovery, commenced prospecting, near the scene of Haji Abdul's find, in May 1909. An adit was driven into the side of the sloping ground by the stream and numerous experimental shafts were sunk in the same immediate neighbourhood. The presence of coal in large quantities was soon established, while sample lots were tried in this country with considerable success, it being demonstrated that, though the coal had not a high calorific value as compared with the best Welsh coal, it might well prove useful fuel for local consumption, since, being on the spot, it would be possible to produce it at a very much lower price than that paid for imported fuel, practically all of which is Indian or Japanese mineral, with which the Rawang product has proved to be practical identical in economic value. Moreover, the increasing price of firewood, even three years ago, indicated that the mining industry might well be hampered in the future by the curtailment of the supply of timber readily available. The investigations of the Mines Department had not, however, determined the extent of the measures, nor the probable direction of the seam when the then High Commissioner, Sir John Anderson, visited the workings on May 5th 1910. Towards the end of the same year prospecting was stopped, and the Government decided, apparently, that enough had been done to establish the existence of useable coal in quantities sufficient to induce private enterprise to carry out the task. Negotiations were opened with local capitalists but eventually a prospecting permit over 18,000 acres was given to a London corporation, formed for the purpose, and entitled the Rawang F.M.S. Coal Syndicate. The concession covered the southern portion of the Rantau Panjang Forest reserve and a large area adjoining. The syndicate appointed Messrs. Osborne and Chappel their agents, and the latter engaged Mr. Mungo Park who had till then, been an Inspector of Mines under Government, to carry out the work of further prospecting the area. Mr. Mungo Park had already some knowledge of the measures and was, moreover, one of the few men in Malaya who had any experience of coal mining, he having worked in the coal fields of Natal and the Transvaal before he came to this country. He began prospecting on behalf of the Syndicate in April, 1911, with the object of discovering whether there was enough coal of a marketable quality to enable the syndicate to dispose of its holding to those who would be willing to finance it as a working colliery. There was no intention of developing the measures, except in so much as might be necessary for obtaining coal for experimental purposes, nor was it part of the syndicate’s programme to determine the full extent of the coal field. Towards the end of last year the syndicate found, as a result of its discoveries, that it possessed a marketable proposition and it was enabled to dispose of its rights to a Kuala Lumpur group willing to undertake the capitalisation of the colliery into a going concern. Situation and Extent. We propose to make some account of the discoveries of Mr. Mungo Park, but before doing so it may be of interest to convey an idea of the situation of the district in which the existence of the coal has been established. The portion of the measure so far definitely prospected is an oblong block of about 350 acres running from north of the southern boundary of the forest reserve nearly due south, and is at present approached from the 26th mile of the Kuala Lumpur- Kuala Selangor Road, via Rawang, about 8 miles beyond the last named town. From the milestone a rough track, crossed and re-crossed at frequent intervals by the spoor of wild elephants, leads south west, for two and three quarter miles through dense jungle of the forest reserve, to a small clearing where are the houses of the prospector and the men who have been working for him; other clearings in the jungle near by, mark the site of the Government workings on the scene of the first discovery and the pits sunk later for obtaining coal for experimental purposes. Here in the midst of the virgin forest are heaps of coal, not very large ones, for they consist only of the residue left over when the good coal was removed, but still coal enough to provide a striking contrast with its surroundings. Environment has much to do with the impression left on the mind by any specific scene, and the Englishman’s idea of a coalfield is usually derived from what he is accustomed to in his own country, where the existence of the mineral, means that it has been worked for a period quite long enough to have blackened everything in its neighbourhood, to say nothing of the scarifying effects produced by the allied industries which usually spring up in its immediate surroundings. It is necessary to exercise the imagination, presupposing the possession of such an attribute, to experience any lively sensation of incongruity when standing in a primeval forest and being assured that coal or anything else lies below the ground, but even an unimaginative person cannot escape the sense of the unusual in being confronted with heaps of raw coal lying in the depths of an F.M.S. forest reserve. However there the coal is; it can be seen and touched, so it is worth while considering how it will be approached if it is worked. The present method of approach is obviously unsuitable, for even if the track from the Government road should be metalled it would be a roundabout way of getting to the railway line. Approach from the southern end will undoubtedly be the best, and this has been recognised by Government since the 1913 estimates provide for the spending of $2,000,000 on a branch line from Kuang in the direction of Batang Berjuntai which will, in the first instance, go as far as the Rawang coal fields. In addition the new road from Kepong to Kuala Selangor, which has been under construction so long, but which is now nearly completed, passes within a few miles of the coal field so that this may well prove the best method of approach to Kuala Lumpur for road- borne traffic. The Main Seam. To come to the results of the actual prospecting, and bearing in mind that borings were nowhere sunk below 340 feet, the existence of two seams of coal, besides small minor ones, has been established, the Main Seam and the North Seam. The latter has been little investigated, and leaving it for the present, it may be well to deal with the Main Seam which was the site of the first discoveries. The outcrop, which lies on an average about 20 to 30 feet below the soil, runs from a point a little to the west of the first discovery almost due east and then curves boldly towards the south, running first due south and inclining more to the west as it reaches its termination. It forms, therefore, a rough semi circle, rather like an undrawn bow, bent towards the east, with the top, or northern end more flattened than the bottom or southern end. From the outcrop the seam slopes inwards and downwards, towards the string of the imaginary bow at an angle of 10 degrees; the direction being, beginning at the north end of the seam, first south then south west, then due west and finally west with a slight tendency to the north. The seam has uniform depth wherever bored at 50 feet, measured at a right angle to its floor, and since it slopes downwards, the further it gets from the outcrop the deeper it lies. The full extent of the seam has not been proved, but at rather over 300 feet, the depth to which the deepest borings were made, the coal still continued wherever tested, so that there is strong presumption that it runs further at a greater depth. The next strata above the seam is oil shale to which we shall refer later, and the next clay, while beyond the clay comes a mass of rock. It was at first believed that this rock, which occurs slightly beyond the deepest borings, was a solid quartzite formation older than the coal, and that in consequence the seam could not continue beneath it. For the purpose of ascertaining the nature of the rock, therefore, a pit was sunk, and carried to a depth of about 46 feet, in a valley the reverse side of the hill in which the rock begins. The stone quarried from this pit, which is still being worked, are boulders of varied kinds of rock, which appear younger than the coal, so that the seam may be of much greater extent than is present known. Setting conjecture aside, however, and taking into consideration only the area actually prospected, it is reckoned that there exists in the main seam about 15 million tons of coal, though for the purposes of estimation not more than seven to ten million tons have been calculated upon. Still, taking even the lowest figure, the Main Seam offers an enormous quantity of coal, at a comparatively shallow depth. The North Seam. Going due north from the scene of the first workings, by the Mines Department the first outcrop is a strata of sandy clay running immediately under the Main Seam, the next outcrop, underlying the clay, is oil shales, and beyond the shales, comes the outcrop of the North Seam, running at the same angle as the Main Seam, but, of course, far below it. This seam, which was discovered by Mr. Mungo Park, has so far been but little prospected. Coal of a quality similar to that of the Main Seam has been won from two pits near the point of discovery, immediately north of the first workings, and experimental bores put down to the east and south- east indicate that the outcrop tends to follow the same outline as that of the Main Seam. But though its existence has been established, its extent has not yet been proved. The very fact of its existence, however, indicates that the capacity of the coal field, as a whole, may possibly be very much greater than was at first believed or has yet been definitely ascertained. Quality of the Coal. It would appear that the presence of coal in large quantities has been ascertained, and that there are indications that further prospecting, if undertaken, may reveal the existence of quantities larger still; but, however large the amount, unless the quality is good, there would be no profit in mining it. The coal has, therefore, been subjected to a variety of practical tests, both by the Government and by the prospecting syndicate, here and in England, the general results of which indicate that, although not a high- quality coal, it may well prove of use here in Malaya, taking into consideration the peculiar conditions which govern the supply of fuel. To go into details, abbreviated though, for in their entirety details of any subject, save to experts or persons vitally interested, are apt to be tedious, the deposits are pitch coal, a variety of lignite ranking between lignite and bitumous coal, of the tertiary period, closely allied to coals found in Sumatra, Borneo and New Zealand, and to the brown coal of Germany, of which latter 49,000,000 tons were produced during the first nine months of 1910 and a slightly larger amount during the twelve months preceding. In England no coal of the same kind is found, and compared with the English minerals, it is a young coal, though this fact, by the way, has no bearing on its fuel value since pressure and local conditions, rather than age, determine its worth or worthlessness. When compared with the valuable deposits in England the Rawang product has but a low calorific value, but when contrasted with Indian coal with which it would have to compete, it appears to more advantage, since, though it has slightly lower calorific value than the Indian mineral, it is a cleaner fuel, having no sulphur and producing much less ash and smoke and practically no clinker. The railway tests give 56lbs. per train mile for the local coal as against 47lbs from the Indian, but it is claimed that better results would have been obtained had the furnace bars on the engine employed in the tests been altered by being put nearer together, since the Rawang coal breaks up easily and requires a grate with narrow bars or even a chain gate. If, however, the railway authorities decide to use the local coal, it could be put upon the railways at the time at a very much lower rate than could Indian, the cost of which is from $11.75 to $12 per ton in Kuala Lumpur. That fuel does not depend entirely upon calorific value is shown by a series of practical test carried out at Kuala Lumpur cement works, near Batu Caves, where we are told that, although no greater amount of Rawang coal than Indian coal was used, the former owing to the qualities mentioned above, gave by far the better results of the two minerals. But wood is still the principal fuel here, both on the railway and on mines, and with wood the new coal should be able to compete, even at present prices, while in the future it ought to be in a position more favourable still. On the railways 123lbs to 140lbs of wood are used per train mile as against 56lbs of Rawang coal, i.e. more than two to one. Moreover, coal occupies less storage space than timber and would on that account be preferable. Further, apart form the railways, which have a permanent supply of wood assured in the big mangrove reserves, harvested in accordance with the rules of forestry, the increase in the cost to other users, the principal of which, are of course, the mines, has recently been so considerable that, in spite of the vast forests which cover the greater art of the peninsula, wood fuel is now costing as much that consumers are eager for a substitute. The forests are receding from the near neighbourhood of the mines and the chief centres of industry so that, though there is almost any quantity of timber to be had, the cost of transport is tending to raise the price beyond that at which so rapidly burning a form of fuel can be used with economy. Further experiments have shown that Rawang coal can be used successfully in the furnaces of mine boilers and, an important point when dealing with so conservative race as the Chinese; mine-owners and managers who have tried the coal are willing to use it instead of wood if the price is satisfactory. We are told that, from trials carried out by Mr. Chong Yoke Choy at Mr. Loke Yew’s mines near Ampang, it was found that a ton of Rawang coal was equal to two and half parsongs of hard wood for which the current market rate was $5.30 a pasong at the time, though now it is higher. In addition to local tests, specimen parcels have been sent to England for trial and Professor Bone has used Rawang coal with success in the Bettington boiler, in which dust coal is fed through a sprayer on to the furnace bars in the manner employed in oil burning furnaces. Another consignment was recently tried at Stockton on Tees where, as we recorded the other day, the municipal power plant, using Rawang coal, successfully completed a trial run of thirty hours. Oil Shales and Clay. Mention was made earlier in this article of the strata of oil shales which overlies both the Main and the North Seams. These shales are somewhat similar to the deposits in the West of Scotland. Oil has been distilled from them, and specimens of the results are to be seen at the coal field. Experiments are being undertaken to ascertain the value of the oil, but results have not yet been received. The proportion of oil in the shale is, perhaps, somewhat too small to enable it to be distilled at a profit with the methods of extraction at present in vogue, although the enormous size of the deposits of oil shale, containing in aggregate millions of gallons of oil, their proximity to the surface and to a supply of cheap fuel invest them with great interest. Should some more economical way of getting oil from the shale be discovered, it is possible that the Rawang shales might be exploited, and, considering the limited area of the known oil fields within the British Empire and the extent to which oil is replacing coal in the British Navy, the future my see them endowed with a significance they do not now possess. The concessionaires now propose boring their property to greater depths in the hope of discovering free oil, and oil rights have been obtained from Government over the whole concession. Above both strata of shales lies sandy clay which has been found by practical tests to be suitable for making bricks and tiles, besides the coarser kind of pottery, so that, whether the shales possess an economic value or not, there is no doubt that a brickyard and potteries could, if thought advisable, be run as an adjunct to a colliery.
The Straits Times, 26 May 1913, Page 9. “Malayan Collieries. RAWANG COALFIELDS AND THEIR PROSPECTS.
A Two Million -Dollar Company. To the present established industries of this fecund Peninsula is shortly to be added another, and an important one, by the opening up and development of the Rawang coalfields. The existence of coal in the Ulu and Kuala Selangor districts was proved by the Government of the F.M.S. a number of years ago, and the results of prospecting carried out over a considerable period by the Rawang (F.M.S.) Coal Syndicate Ltd. of London, have established beyond doubt that the deposits are extensive and accessible. Their development is to be undertaken by a concern named Malayan Collieries, Ltd. with headquarters in Kuala Lumpur. The capital is to be £2,000,000, of which it is proposed to issue three fourths at present. The shares are of the $10 denomination. The vendors who are represented by Mr. J. A. Russell, get one million dollars- $610,000 in shares and the remainder in cash – which leaves on the primary issue a sum of $500,000 for working capital, therefore, 89,000 shares are being offered to the public, but the prospectus states that applications have already been received for 60,000, upon which the directors will proceed to allotment.” Results of Prospecting. Prospecting operations have been conducted for the past two years by Messrs. Osborne and Chappell on the concession for which the Syndicate had acquired a prospecting licence. As a result of these operations an application for a lease of 1,200 acres of the richest land has been made by the Syndicate, and they are at liberty to select and apply for other areas up to a limit of 18,000 acres before the end of July. On the area already applied for the prospectors have located a main seam extending over 345 acres with an average coal thickness of 30 feet. After making allowances for slack and small coal, they estimate a visible supply of over nine million tons of marketable fuel. Nor do the resources of the field end there. According to the report, other seams have been discovered, but these have not been thoroughly prospected, the Syndicate wisely pursuing the policy of delineating the one main measure which, in itself, have proved rich enough to justify their faith. The coal is of a lignite or woody, character, such as is successfully mined in many countries. Compared with coals of a similar nature mined in South Africa, India, Australia and Siberia, the evaporative power of Rawang is a low one, but a good impression of its practical value may be gathered from the statement of Mr. Benedict Kitto, the eminent analyst of St. Swithin's Lane, London, who tested a number of samples, that its heating power is equal to about three-quarters of that of good Welsh steam coal. Very exhaustive practical tests, in fact, have been carried out both locally and in England, in the latter country under the direct supervision of Professor W. A. Bone, D.Sc. F.R.S., professor of chemical technology (fuel) at the Imperial College of Science and Technology, London. Commenting on a test with Rawang coal on a Bettington boiler, Professor Bone writing on March 13 last said that “ having regard to the lignite character of the coal, these results may be considered as eminently satisfactory, and there is no doubt but that the coal can be used economically for steam raising in this type of boiler”. Gratifying reports are also made of tests carried out on the F.M.S. Government railways, at the Batu Caves Portland Cement works, and elsewhere. The Market for Coal. These facts are extracted from the mass of evidence contained in the prospectus and are sufficient to show that Rawang coal may compete on favourable terms with other steam raising fuels in the market at present. As to establishing itself in competition with existing supplies, the promoters are sanguine of success. It is estimated by Messrs. Osborne and Chappell that the company will be able to produce coal at a cost nearer $2 per ton than $3. To arrive at a selling price for the product, they took into careful consideration the value of Rawang coal compared with firewood and other brands of coal actually in use in Malaya and came to the conclusion that it could compete favourably with existing fuels at a selling price of $5.25 per ton at the pit-head. As a matter of fact, one of the tests, carried out on a 12 N.H.P. portable boiler at Ampang- a type of boiler very largely used in the F.M.S.- seems to show that in order to compete with firewood the coal can command $10.75 at the pit head, but Messrs. Osborne and Chappell have adopted for the purposes of calculation their own conservative figure of $5.25. All things considered, there would appear to be little doubt that Rawang coal will find a ready market among the tin-mines, rubber plantations, railways, local steamships and other coal-consuming industries. The Government of the F.M.S. regards the enterprise with a favourable eye, in token whereof provision has already been made for laying of a branch line of the railway to the pit-head; while to guard its interests, the Government will nominate one of its own officers to sit on the Board of Directors. Messrs. Osborne and Chappell in their general remarks say: “We are of the opinion that the commercial potentialities of the concession have been proved to be of great value. All estimates have been made on a conservative basis. The opening out of this coal field- resulting in cheap fuel being put on the local market- should act as a stimulus to the tin-mining industry, which is faced at the present time with the serious menace of increasing coal costs.” Every colliery venture looks to make a considerable enhancement of profits from its by products. Rawang coal is stated to be very rich in easily recoverable tar, a commodity for which there is a good local demand, and ammonium sulphate is another product for which a ready market should be found in an agricultural country like this. A thick layer of oil-bearing shales exists in the field and, although the yield of oil from them, on testing, is lower than is usually looked for from workable shales, the proximity of the bed to the surface and its thickness lead to the hope that it may prove to be well worth exploiting. These are factors, however, which may be shelved for later consideration when the actual mining has been put on a proper footing, and in their outlook the promoters do not lay much stress on their existence.
The Malay Mail, Wednesday 28th May 1913, page 5.
Malayan Coalfields A New Company Capital Two Million Dollars. The Rawang coalfields, regarding which excellent reports have been made, are to be developed by Malayan Collieries Ltd. and if all that is said of their capabilities is borne out by later results, the F.M.S. will shortly have another and important paying industry, whose value to the country will be very great indeed. Prospecting has already proved a large area of deposits, which can be easily worked. Malayan Collieries Ltd. is to develop them and from the prospectus, which was recently issued, and which is now available for reference, we see that the capital will be $2,000,000, and the present issue three-fourths, shares at $10. Mr. J. A. Russell represents the vendors, who receive $610,000 in shares and the remainder in cash. On the first issue $500,000 is left for working capital, enough on experts’ estimates to place the concern on a profit-earning basis. Eight-nine thousand shares are offered to the public. In the prospectus however it is stated that application has already been made for 60,000, and upon this the directors will proceed to allotment. The Area. The area covered by prospecting license comprises all State land within the radius of three miles from the adit of the coalfield near the 26th mile on the Rawang Selangor road and all the State land outside the radius and within the Ulu Selangor district, and also such state land within the Kuala Selangor district and outside that radius as lies within 80 chains of the district boundary. Total area, about 18,000 acres, not taking into account the additional areas outside the radius. Prospecting Operations. Prospecting operations have been conducted for the past two years by Messrs. Osborne and Chappell on the concession for which the Syndicate had acquired a prospecting license. As a result of these operations an application for a lease of 1,200 acres of the richest land has been made by the Syndicate, and they are at liberty to select and apply for other areas up to a limit of 18,000 acres before the end of July. On the area already applied for the prospectors have located a main seam extending over 345 acres with an average coal thickness of 30 feet. After making allowances for slack and small coal, they estimate a visible supply of over nine million tons of marketable fuel. According to the report, other seams have been discovered, but these have not been thoroughly prospected. The High Commissioner on Nov 14th 1912 stated “ Prospecting carried out at Rawang Coalfield has proved the existence of a large quantity of marketable coal and it has been decided to connect the field with the Railway system. Nature of the Coal. As to the nature of the coal, Mr. Benedict Kitto, the well-known London analyst, gives a good report, in which he gives the evaporative value as 11.4lbs. Of a later assay, Messrs. D. G. Robertson state: “You will note that the coal is high in volatile matter and very low in ash. We have had a lot of over 40 tons sent to the Batu Caves Portland Cement Works and we find it compares very favourably indeed with Indian coal, which we have been using. The low percentage of ash in Rawang coal keeps the fire grate clean and is a distinct saving as compared with other coals” The evaporative value as determined by Mr. Mungo Park by calorimeter varies from 10.0-11.5 lbs of water lb. of coal. Trials “Numerous trails have been made of the steam raising qualities of the coal. Of a trail made at Ampang in February, 1912 by Mr. Cheong Yoke Choy, on a 12 N.H.P. portable boiler Mr. Chong Yoke Choy reported that it gave ‘very satisfactory results’ and that he found a ton of it equivalent in value to 2 and half ‘pasongs’ of firewood for which he was then paying at the rate of $5.30 a ‘pasong’”. In reply to an inquiry Mr. A. L. Armstrong in a letter dated February 25, 1913, stated that the price of the same Indian coal was, so he understood, then $13.25 per ton delivered in Ipoh. On the basis of his test, states the prospectus, this shows that in order to compete with Indian coal the price of Rawang coal per ton, after paying all charges for freight and royalty, can be $12.42 in Ipoh, the chief mining centre of the F.M.S. or $10 per ton at pit head. Other reports of later trials are exceedingly favourable and indicate that Rawang coal will find a big sale for mines and estates, to say nothing of steamers, and the railways would doubtless be big consumers. It may be added that in a report made for the Government Mr. Mungo Park during 1908 upon the potentialities of the then newly- discovered Rawang coalfields, he stated: - “I may add that in 1906, I made a very large number of tests upon Transvaal coal and that the average results obtained by me showed a lower evaporative value than the sample obtained in Rawang. During the year 1906 about 3 million tons of this Transvaal coal were raised and sold at the pits mouth” No exactly similar coal to Rawang coal is to be found in England, but on the continent of Europe such coals are largely mined and used, the last edition of the Encyclopedia Britannica giving Continental production at over 80,000 tons per annum, a figure which is steadily increasing. The continental lignite is never better than Rawang coal, whilst its average calorific value is on the whole distinctly lower.
The Straits Times, 29 May 1913, Page 10 . (Letter From J A Russell to Editor) Malayan Collieries, Ltd.
To the Editor of the Straits Times. Sir, With regard to the article in your issue of the 26th on the subject of the forthcoming flotation of the Malayan Collieries, Ltd., I should like to be permitted to point out that you may therein perhaps have conveyed to those who have not seen an advance copy of the prospectus a somewhat wrong impression regarding the evaporative power of Rawang Coal. Contrasted with the best Welsh steam coal it may be, it is true, of low evaporative value; but the various tests made, showing it to have a gross evaporative value of from 10 to 11.5 lbs., prove it to be considerably higher than those coals of a similar nature that are so largely mined in New Zealand, Australia, South Africa, America and on the Continent. It is in this connection interesting to note that the Continental production of lignitic coal, which is never better than Rawang coal, whilst its average calorific value is on the whole distinctly lower – is over eighty- million tons per annum. This Continental lignite is largely used for all purposes of factories, railways, shipping and gas and tar making, besides for domestic consumption. It is unfortunate, however, that in a trial made by Messrs. Osborne and Chappel, and which is apparently the one by which you are going, they only obtained a net evaporative power of 5lbs.; this is probably to be explained by the fact that the furnaces of the ordinary boilers on which the trail in question was made were, like the railway locomotive fireboxes, constructed for burning local clinkering fuels, and therefore unsuitable without some slight alteration, for the non clinkering, ashless coal. A far more thorough and scientific trial than the one mentioned was carried out, from coal sent to him by Messrs. Osborne and Chappel, by Professor Bone in England. Professor Bone by practical trial obtained a net evaporative power of 6.9lbs on the wet and 8.05lbs on the dry coal. However, the economic value of any particular coal as fuel does not depend solely on its evaporative power. In the trials at the Kledang mine, for instance, the difference in consumption between Indian and Rawang coal was only 6 and a quarter per cent., while as against this slight increase in the quantity used of Rawang coal the latter was found to keep up steam better, and to leave less slag than the Indian, thus making firing much easier. The 40-ton trial made at the Batu Caves Portland Cement Works was another one of the tests that proved the coal to be more economically valuable as a fuel than the Indian coal which they are at present using. It should not be forgotten, moreover, that all these tests and trials have been made upon the unscreened coal obtained during prospecting operations, while the majority of them were also carried out, although upon coal supplied by Messrs. Osborne and Chappel, yet subsequent to that firm’s report of August 23, 1912, so that the data obtainable therefore could not be included in that report. -Yours, etc. J. A. Russell. Kuala Lumpur, May 28th, 1913.
The Times of Malaya and Planters and Miners Gazette, 21st June 1913, p. 9
Coal In Malaya The Rantau Panjang Find To be Floated Locally How the Tin Mining Industry Will Benefit. (Special to the “Times of Malaya”) It has been general knowledge for some time past that the find of coal at Rantau Panjang, in Selangor, is a valuable one and we now learn from the prospectus which has been sent to us that this coalfield- best known as the Rawang coalfield- is to be floated locally under the title of “Malayan Collieries Ltd.” with a capital of $2,000,000 out of which the vendors get $390,000 in cash and $610,000 in fully paid up shares of $10 each. Position of the Field As very little has yet been made public about this most interesting and valuable find of coal in Malaya we have obtained the following details for the information of the readers of the “Times of Malaya”. The property, we learn, is situated in the district of Ulu Selangor and lies about eight miles from the station of Kuang on the main railway line between Prai and Singapore. The F.M.S. Government are naturally pleased at this valuable find of coal for many reasons, the principal of which is that it will save the Malay Peninsula from ultimate deforestation owing to the present great demand for firewood for the mines, and they have promised to run a branch line right up to the coal field, while, in view of the large amount of capital to be sunk by the Government in affording access to the mine, and in providing rolling stock for the use of the mine, and also in view of the importance to the country that its coal deposits should be efficiently and economically worked to their best advantage, the company have agreed at the request of the F.M.S. Government to nominate one of their officers to a seat on the Company’s Board of Directors- a point, we think, that will go a considerable way towards inducing local people to put their money into the new coal company. How the Coal is Found. From the data a representative of the “Times of Malaya” has seen, we learn that the country surrounding the actual coal area consists of quartzite’s, phyllites and clay slates which, it is most interesting to note, are older than the granite of the Peninsula, which is believed t be mesozoic. The coal rests on these old rocks and from fossils found and recognised may be classed as of tertiary origin. The coal measures consist of oil-bearing shales with seams of coal of varying thickness and sandstone and silicious clay. They are, we learn, covered in parts with a recent drift which almost completely hides the outcrop of the seams and the formation above and below them. Prospecting was first confined to proving the extension of the outcrop of the seam of coal, which original was tentatively prospected by the F.M.S. Government, but, subsequently, operations were directed to proving the extensions of the seam at depth. It was during these later prospecting operations that Messrs. Osborne and Chappell, who have charge of the work, proved the existence of a second seam north of the main seam. Four Miles of Outcrop. Later the outcrop of the main seam was delineated for a distance of nearly four miles, or to be exact, three and half miles, and for the greater part of this distance the existence of the seam has been proved on the dip to a depth of 150 feet. The average thickness of the seam is said to be approximately 44 feet, of which there is an approximate coal thickness of 30 feet. It has been proved that the seam extends over an area of several hundred acres and it is estimated that the total marketable coal in situ amounts to twenty- seven- million- nine- hundred- thousand tons- a quantity that it will take the tin mines of Malaya some fairly considerable time to consume. Indeed, already practically some ten million tons of marketable coal have been proved. What sort of coal it is. The coal, we learn, from our enquiries, has been classed as a long flame lignite low in ash. It is black and lustrous and does not soil the fingers, has a concoidal fracture and decrepitates on exposure to the sun for any length of time. The percentage of moisture is somewhat high and consequently, the heating power is correspondingly low and the result of an evaporative test to the gross evaporative power (lbs. of water at 212 degrees F evaporated by 1 lb of coal) was 9.6. The average of several tests gave the coal as producing 9,409 British thermal units. The coal, it is interesting to add, does not fuse on strong ignition and has no tendency to clinker. Messrs. Osborne and Chappel estimate the over-all working costs at from $2 to $3 a ton of marketable coal. Chinese labour is accustomed to and skilled in working underground; many of the Kain-chu Hakkas, it is worthy of note, having been coal miners, in their native country. Although plantation labour may be difficult to obtain, there is no scarcity of mining labour in the F.M.S. The Selling Price. What the coal will be sold at pit head is however, a point of the utmost moment to Malayan tin- miners, who have so much trouble over the question of fuel, and we read that Messrs. Osborne and Chappel in their last prospecting report dated 23rd August, 1912, placed the pit –head selling of Rawang coal at $5.83 a ton. From this price they then, in order to allow of Rawang coal successfully under selling its firewood and imported coal competitors, made a 10 per cent deduction which brought their pit-head selling price per ton down to $5.25. It will, however, already have been noticed that this is a far lower price than may, from the evidence of all other tests and trails, confidently be expected. The Rawang (F.M.S.) Coal Syndicate, Ltd., for instance, have already had a request from one Kuala Lumpur firm to supply them with 2,000 tons a month at $8 a ton, which, less royalty, freight and terminal charges would mean $7.01 at pit-head (the covering letter of the order saying: “ To get into this business, I consider you should sell at a reasonably low rate and this in my opinion should be $8 dollars a ton in Kuala Lumpur”), while many of the tests and trails would seem to show that the pit-head value of the coal to be more in the neighbourhood of $10 rather than Messrs. Osborne and Chappel’s $5.25 per ton. So although it may be true that a pit-head selling price of $5.25 per ton would give the Company a very good profit, still it would appear more reasonable from all the evidence obtainable to say that the present true average selling price of coal is in the neighbourhood of $7 per ton at pit-head. In conclusion, we would emphasise the point that the opening out of this coal field- resulting in cheap fuel being put on the local market- should act as a stimulus to the tin-mining industry, which is faced at the present time with the serious menace of increasingly fuel costs.
The Malay Daily Chronicle 23 June 1913 page 6
Large Advert for Malayan Colliery shares.
The Malay Daily Chronicle 23 June 1913 Ipoh, 23rd June 1913. (Editorial) BLACK DIAMONDS IN MALAYA The prospectus which we publish this morning marks a still further step in the development in the Federated Malay States. The chance discovery of a Malay, who believed that he recognised coal in a black lump which he picked up at Rantau Panjang, is likely to lead to a completely new industry in these States, of which the Rawang Coalfield will be the beginning. The Malayan Collieries Limited is being promoted by Mr. Russell of Kuala Lumpur, who will have associated with him on the Board among others Messrs. A.D. Allen, Foo Choo Choon, Loke Yew and Tan Chay Yan. These names alone are sufficient to establish confidence in the undertaking. It starts with a favouring wind, and makes its appeal to the public fortified by the promise of support to the extent of $600,000. The total nominal capital is $2,000,000 in shares of $10 each. The price to the vendors, who are the Rawang Coal Syndicate Ltd., and Mr. J. A. Russell is $1,000,000 divided into $390,000 in cash and $610,000 in shares. Mr. Russell, who is the immediate promoter, receives no profit in cash. This indicates his faith in the future prosperity of the enterprise, which he commends to the notice of the public. A sum of $500,000 is set aside for working capital, and there will be a reserve of a similar amount. It cannot be said that the venture has been launched with insufficient preparation. Nearly two years have been spent examining and prospecting, at a cost of $100,000 in cash; and the numerous Reports made upon the samples of lignite both in the F.M.S. and in Europe are evidence of the care with which attempts have been made thoroughly to test the nature of the deposit, which it is proposed to exploit. An area of 1,200 acres has been selected, and up to the 31st of July next the company has the right to select other areas under a prospecting licence that entitled the Rawang Coal Syndicate to prospect for coal and oil. The F.M.S. Government has taken a keen interest in the exploitation of the coal seam at Rantau Panjang. Since the Government has agreed to construct a railway, now in progress, to the mine the Company, at the request of the Government, has undertaken that the F.M.S. Government shall nominate one of its officers to a seat on the Board of Directors. In spite of the pessimism of previous officers, who were of the opinion that coal would never be discovered in the Peninsula, though deposits of lignite are by no means rare, Kinta will at length be able to use Malay coal in its mines, and thus reduce the cost of working. It is estimated that though the coal may be regarded as worth in value as much as Japanese or India coal per ton, and may, therefore be sold at $10 a ton at pit head, it can be produced and delivered to the public at a handsome profit at a price of only $5.25 at pit-head, thus competing with the firewood brought from the neighbouring jungle. The table of comparative fuel values proves conclusively that, as a result of a test made at Ampang with a 12 h.p. boiler and an 8 inch pump, Rawang coal can give a saving of $25.34 per day, $760.20 per month, and $9,922 per year. Such a striking economy will enable many a small miner to work his open cast mine with considerable profit. The report of Messrs. Osborne and Chappel is couched in the most optimistic language. The lignite coal measures are geologically speaking, recent, classed as of Tertiary origin, and are thus similar to those in Europe and North America. They have been proved over an area of approximately two square miles, to contain a seam of an average thickness of 44 ft. with a coal thickness of 30ft. The outcrop of the main seam was followed for a distance of three miles and a half and a bore struck the seam at 225ft. The coal is black not brown, the general colour of lignite, lustrous and burns with a long flame and with a small quantity of ash. The moisture percentage is high, as in the case of lignite everywhere. But this is counterbalanced by its want of tendency to clinker. The cost of mining will probably be low. It is proposed to work by shaft, and expert Chinese miners will be easily obtainable. Messrs. Osborne and Chappel estimate the mining costs at the outside, though they may be high in the beginning, not to exceed a charge of $2 to $3 per ton. Even if the latter figure be adopted, there will still be a handsome profit remaining at the selling price of $5.25 per ton, an extremely reasonable figure, as opposed to the present price which coal fetches in Kinta. The calculation that ten million tons of marketable coal may be considered proved in the main seam alone may be regarded form the data give in the Prospectus to be abundantly justified. An output of 200,000 tons yearly is mentioned. This is admitted to be unusually conservative. About 800,000 tons of coal are used in British Malaya annually. It is certain that the use will increase rather than diminish. It may, therefore, be anticipated that an output even after the first year at Rawang of 400,000 tons will be necessary to supply the public demand. The analysis made by experts in the British Isles as well as in Malaya will then be confirmed by experience. The coal trails made at Ampang and on the Bettington boiler at Erith will be sufficient for ordinary practical miners. When a man of the standing of Professor W. A. Bone F.R.S. of the Imperial College of Science, binds himself to the definite opinion that there is no doubt that this coal can be used economically for steam raising in the type of boiler which he employed, and when he reports in the most favourable terms upon the gas- making powers of the coal, one must field that further investigation is unnecessary. The language of Mr. Risk, well known as a careful Engineer in his criticism of the results obtained by the Railway Department during their trails which he supervised, is, from the point of view of the practical man, even more satisfactory. Passengers by rail will be delighted to know that there is almost an entire absence of smoke with Rawang coal, whist the steaming qualities of Japanese and Indian coals are equalled, without the inconvenience of the higher percentage of sulphur known to exist in these coals. Apart from the fact that by-products such as tar and sulphate of ammonium, may be obtained and that there are potentialities for oil in the presence of the shale overlying the coal seam, apart also from the presence of tin in the coal field, The Malayan Collieries Ltd. makes its appearance with the assurance of a well-trained debutante. It has a right to expect a favourable response from the investing public. Subscribers’ shares, upon which 6 per cent interest will be paid during the period of development, rank before those of the vendors. The figures already given prove, however, that dividends from 25 per cent upwards may be considered assured to all shareholders.
The Malay Daily Mail 23 June 1913 page 7
Cost of Fuel in the F.M.S. Some Interesting Experiments. The Committee of the Selangor Miner’s Association are circulating a very interesting report upon a series of trails and investigations carried out by Towkay Choo Kia Peng with the object of comparing the relative economic values of coal and firewood for fuel purposes on portable steam boilers. Mr. Choo Kia Peng’s tests were made at his mine at Sungei Choh. We have only space for his general conclusions: - “If coal were universally employed in the F.M.S. the saving to the mining industry per annum would be enormous. Taking the mukim or sub district of Ampang for instance, I find from figures kindly furnished me by the Mines Office that the total horsepower engaged thereon in mining is 973, which at 12 h.p. to a boiler equals 81 boilers. From this it can be proved that by burning Indian coal the miners of the mukim would save $38,880 per mensum and $466,560 per annum on their fuel bills, while by burning Rawang coal they would probably be able to save as much as from $54,432 to $ 61.579 per mensum, and from $639,984 to $738,912 per annum. Truly astonishing figures. What must be the saving the whole country could effect?
The Straits Echo Mail Edition, 27th June 1913, No 26, Vol.11 p.611 Tuesday 24th June, 1913 (Leading article.)
MALAYAN COLLIERIES LIMITED. In our leading article of yesterday we emphasised the potential importance to this country of the floatation of the Malayan Collieries, Limited, and, having in the interval devoted some little time to a study of the prospectus- a “document of twenty-five closely printed pages- we are now in a position to examine it from the point of view of the investing public. The company proposes to commence operations with a capital of $1,500,000 and to hold $500,000 worth of shares for a possible future issue. The shares are of $10 each and, of the 150,000 which will figure on the initial register, 61,000 are to be allotted to the vendors, who also take $390,000 in cash, so that the present issue comprises 89,000 shares. Private applications, the prospectus states, have already been received for 60,000 shares and the company may go to allotment on these applications. The cash, nearly four hundred thousand dollars, taken by the vendors may appear to be heavy, but we are assured that the sum of over $100,000 has been sent in prospecting under the direction of Messrs. Osborne and Chapel during the past two years and also that Mr. J.A. Russell, the ultimate vendor, makes no cash profit. We gather, therefore, that the balance of the vendors cash goes to the Rawang Coal Syndicate, which furnished the funds for prospecting, and that Mr. Russell’s remuneration will consist in a portion of the block of shares allotted to the vendors, on which, during the period of development, no dividend is to be payable until those issued to the public have received interest at the rate of 6%. We have read the prospectus carefully and in a critical spirit, and we have come to the conclusion that the statement made in the “Summary of Contents” on page 3 are fair and reasonable deductions from the reports of experts. Investors in Malaya are acquainted with the status of, past experience and reputation of Messrs. Osborne & Chappel, who are responsible for the data as to the proved area of the main seam, the tonnage of marketable coal it contains, the over-all cost of production and the bed- rock selling price. Experiments as to the quality of the coal itself have been carried out both locally and in England by professional experts of good standing. It is not contended that the quality of this coal, which is lignite, is equal to that of anthracite, but it is stated that it is very suitable for power purposes and only slightly inferior to the Indian product, the comparative evaporative values being 1.06 and 1.00, while for the Rawang coal is claimed the advantage of less ash and sulphur percentage. The summary to which we have referred says” The prospecting of the Concession has been conducted for a period extending over two years by Messrs. Osborne and Chappel, who have now exhaustively proved, at least 10,000,000 tons of marketable coal, in part of one seam alone, besides discovering several other seams, indicating in all very large deposits, sufficient, in fact, to supply the needs of the country for many years to come. This prospecting has been most thoroughly and efficiently done at a cost, including fees of Home experts, etc., of over $100,000. The coal has been carefully analysed and tested on numerous and various occasions by some of the highest authorities on the subject in the British Isles, whilst a great number of trials on a practical scale have been made both locally and in England. These analyses, tests and trails, the chief of which are to be found in the body of the Prospectus, have proved the coal to compare very favourably with coals of a similar nature mined and used in other parts of the world, showing it to be of great economic value, and well able to compete with firewood and locally imported fuels. Rawang coal has by these tests been proved to be eminently suitable for portable engines, suction gas plants, the railway, cement works, smelting and shipping, as well as for many other purposes, while to supply about half the present mining requirements alone an initial local demand of some 200,000 tons per annum has been demonstrated, and it is solely on this latter source of consumption that the figures of this prospectus have originally been based. These local trails have also shown the coal to be worth as much as $10 a ton at pit head; but the Prospectus estimates and figures have in the first instance been calculated on a selling price of only $5.25 at pit-head. The depth of the seams, and other conditions of the coal measures, show that over-all costs of coal production should never exceed $3 a ton, and may be confidently calculated at $2; however in this Prospectus the higher figure has been taken. A working capital of $500,000 has been estimated to be more than ample for all purposes. A table of dividends on page 17 of the prospectus holds out prospects ranging from 26 and half per cent per annum- a figure based on Messrs. Osborne and Chappel’s estimates- to just over 118 and three quarters per cent which it is contended, could be obtained if the capital of the company was raised to $1,600,000 and four hundred thousand tons of coal produced annually at $2.25 (including government royalty) and sold at pit-head at about $7 per ton. We imagine that most investors would be quite content with the more modest return. To a certain degree the Prospectus bears the imprimatur of the F.M.S. Government and although this, of course, constitutes no guarantee that shareholders may not eventually be disappointed, it is reasonable to suppose that the Government would not claim the right to nominate a director to the board of a company unless it considered that its prospects were sound, or that provision would be made by in the F.M.S. estimates for construction, at a very considerable cost, of railway connection with the mine unless it were thought that the venture would prove a success and that both the output and demand for the coal would be sufficient to make its carriage a profitable business for the railways. We may note further that Sir Arthur Young, addressing the Federal Council in November last year, stated that “ prospecting carried out at the Rawang Coal Field had proved the existence of a very large quantity of coal and it had been decided to connect the field with the railway system.” While the Senior Warden of Mines in his Annual Report published last month said: “ The Rawang Coal Syndicate, Limited completed their prospecting operations and a quality of coal amply sufficient to justify working on large scale has been proved; the Government have decided to connect the field with the railway system, and the survey of a branch line from Kuang Station was in hand at the end of the year. There is, as we need hardly point out, an element of speculation about every mining proposition, and it would be excessive not to expect this element to be present when dividends of from twenty-six to a hundred and twenty per cent are foreshadowed. But in the case of Malayan Collieries, the prospecting seems to have been carefully and thoroughly done; the board is composed of sound business men who may be counted upon to advance and safeguard the interests of shareholders; the vendors have not made any of those exorbitant demands which are unfortunately too common in connection with local floatation’s; and the company starts with a reasonable prospect of justifying its prospectus and giving its members an adequate return.
The Malay Mail Weekly, July 3rd 1913 page 3.
Malayan Collieries Report of Suction Gas Trials. By the last mail the Malayan Collieries Ltd., received the full report of the suction gas trials made in London on Rawang Coal. The test was continued for three days and was very satisfactory. We reprint below the final paragraph of the report: - “Conclusions – the coal is quite suitable for use in our bituminous gas producers. The sample tested contained a considerable quantity of fine coal, probably 15 per cent under 3/8th cube. This was probably due to it having been transported so far in bags. With less small coal rather better results would be expected. Owing to the coal being of a free burning nature it is much more easily worked than the majority of British coals. The ash is of a light grey colour and does not appear to fuse easily. From the above you will see that the tests were very satisfactory from a working point of view. The coal consumption is rather high but with a smaller percentage of the small coal we have no doubt that this would be reduced”
The Times of Malaya July 5 1913
Malayan Collieries Solicitors’ Letter to Singapore Paper The following letter from Messrs. Drew and Napier, Solicitors, Singapore, has been addressed to a Singapore paper on the question of the prospectus of the Malayan Collieries Ltd.: In your issue of this morning there appears a letter from “ Investor” dealing with the prospectus of the above Company. As Solicitors for the Company (which by the way is not registered at Somerset House, London, but in Kuala Lumpur) we consider it necessary to point out certain mis-statements contained in your correspondent’s letter. With reference to the general views expressed as to probable output and consumption of the Company’s coal and its suitability for certain requirements, we do not think it is necessary for us to make any reply to your correspondent. Your correspondent states: - “According to the prospectus (which is very indefinite) dividends have to be paid to the vendors during the period of development” Upon what basis does he come to this conclusion? The first page of the prospectus states that no dividend will be payable on vendors’ shares until those issued to the public receive interest at the rate of 6% per annum for the period of development. He continues: - “The prospectus does no say where the floatation expenses are to come from, so we presume these must be deducted form the working capital” On page 19 of the prospectus it is stated that the Company will pay all preliminary and incidental expenses to the formation of the Company and limits the amount to $5,000. He further states: - “Underwriting expenses, if any, will no doubt be taken from the same fund” If the Company had to pay these expenses the prospectus would have so stated. We are authorised to state that the Company will not pay these. The only other statement in the letter which we desire to draw attention to is that in which your correspondent says: - “ London has paid the expenses of prospecting, in all possibly $60,000” A reference to page 4 of the prospectus will show that the vendors have expended over $100,000 upon the proposition. As previously stated, we do not think it is necessary to refer to the other matter set forth by your correspondent, as investors are provided with an opportunity, by reading the prospectus, of forming their own conclusions as to the merits of the proposition.
Copy of Letter: To the District Officer, Ulu Selangor, from J.A. Russell, Federated Malay States, Kuala Lumpur , Selangor, 10th July 1913.
Sir, I have the honour on behalf of the Rawang (F.M.S.) Coal Syndicate of London and of the Malayan Collieries, Ltd., to apply for the whole of the still by them unselected area held under their Prospecting License dated 25th October, 1912, over the available area within the radius of three miles from the adit of Selangor Coal field near the 26th mile Rawang - K.Selangor Road, and also such part of the additional area as lies within the Ulu Selangor District, together with such part of the additional Kuala Selangor area as lies within 80 chains of the District boundary. Messrs. Osborne and Chappel who hold power of attorney from the Rawang F.M.S. Coal syndicate of London have already written to the British Resident informing him of my power to act, and the former selection of 1,200 odd acres made by me. I enclose a cheque for $6,550/- for survey fees; please let me know whether this is sufficient. I have the honour to be, Sir, Your obedient servant, Sd: J. A Russell.
Document in the National Archives of Malaysia US1 842/30
The Malay Daily Chronicle July 12, 1913, page 7
We hear that Towkay Loke Yew and Towkay Lee Kong Lam paid a visit to the concession of Malayan Collieries Ltd. at Rawang and on their return next day combined to underwrite 20,000 shares each.
Copy of letter to The District Officer, Ulu Selangor, from J.A. Russell, Federated Malay States, Kuala Lumpur, Selangor, 11th July 1913.
Sir, With reference to my letter to you of the 10th instant on the subject of applying for the whole of the still unselected area held by the Rawang F.M.S. Coal Syndicate of London, and to the conversation of myself and Mr. A.A. Henggeler with you of the same date, I have the honour to apply on behalf of the Rawang F.M.S. Coal Syndicate of London and on behalf of the Malayan Collieries, Ltd., of Kuala Lumpur for renewal for one year of the said prospecting licence. Should the Government agree to renew the licence, then the application of yesterday to take up the whole area would be withdrawn. In renewing the licence I would ask that there being no machinery for the transfer of prospecting licences, it be made out in the name of Malayan Collieries, Ltd., who have purchased the whole of the property and rights of the Rawang F.M.S. Coal Syndicate. I would mention that Malayan Collieries, Ltd., duly went to allotment on the 9th instant and that the total capital has been slightly oversubscribed. The Company has a present working capital of $500,000/- and an unissued reserve of another $500,000/-. For the last month or two the Rawang F.M.S. Coal Syndicate has done practically no prospecting, but the Malayan Collieries Ltd. intend, should the prospecting licence be renewed, to proceed vigorously with the prospecting work. The Malayan Collieries Ltd. have appointed Messrs. Forster Brown and Rees of Cardiff, perhaps the best known colliery engineers in Great Britain, to be their consulting engineers and to engage for them at Home a fully –qualified and experienced manager and staff. I have the honour to be, Sir, Your obedient servant, Sd. J A Russell.
Document in the National Archives of Malaysia 3943/13
Letter to The Secretary to the Resident, Selangor from District Officer, Ulu Selangor, Kuala Kubu. 13 July, 1913.
Sir, with reference to your (34) and (35) in 5376/11, I have the honour to enclose herewith a copy of a letter signed by Mr. J. A. Russell and dated 11.7.13 applying for the renewal for one year of the Prospecting Licence issued to the Rawang F.M.S. Coal Syndicate which expires today, and asking that the new licence be made out in the name of Malayan Collieries Limited. 2. I know of no objection to the renewal of the licence but would point out to Government that as no prospecting has been done by the licensee in the “additional area” (I have reliable information that such is the case) mentioned in your (34) quote above, there can be no “claim” whatever for the renewal of the licence with regard to that area. I am not in a position to report as to what prospecting has been carried out inside the original prospecting area (none has been done outside the three mile radius) but have no doubt that the Warden of Mines will be able to supply that information. 3. I also enclose a copy of a letter dated 10.7.13 signed by Mr. Russell, and alluded to by him in para (1) of his letter of 11.7.13. my remarks in para (2) above, apply equally to the question of the issue of a lease in respect of any portion of the ‘additional area” 4. I put up copy of tracing supplied by Osborne & Chapel showing the original prospecting area (the three mile radius) and the “additional area”, and (approximately) the block of 1200 acres for which the issue of a lease has been approved (Correspondence 2459/12) now charted on the tracing in pencil by the Survey Office. The Survey Department have also shown on the tracing the corner of an agricultural block in the Kuala Selangor District not shown by Osborne and Chappel. I have the honour to be, Sir, Your obedient servant, ?JE Kenny, District officer, Ulu Selangor.
Document in the National Archives of Malaysia 3943/13
Letter from Acting Secretary to the Resident to the Under Secretary F.M.S. Kuala Lumpur. 9 August 1913.
Renewal of Prospecting Licence Rawang Coal Area. Sir, I am directed to report that application has been made for renewal, in the name of Malayan Collieries Limited, of Prospecting Licence for coal and oil which was issued last year to the Rawang F.M.S. Coal Syndicate Limited. 2. A copy of the licence, which expired on 12th July 1913 is attached. 3. The Resident, after consulting with the Senior Warden of Mines, recommends that a new licence be issued to the applicant company for a period of one year, at a fee if $25, with the rights of selecting over all or any part of the available area, the licence to be subject to the same conditions as the previous one, with an additional clause giving the Resident power to insert in any lease for land selected thereunder a condition to the effect that such area shall be worked to his satisfaction. 4. This condition is suggested with a view to preventing the company taking up land with the sole purpose of excluding possible rivals. The Resident does not consider it desirable that there should be rival undertaking in this area, but the prospect of possible competition should exercise a stimulating effect on the present lessees. 5. It will be seen that the former licence reserves the right to include special conditions in any subsequent lease, but it is nevertheless considered advisable that the special conditions now recommended should be brought to the notice of the licensees by being specially mentioned in the licence. 6. The area so far selected by the licensees under the old licence amounts, as already reported, to 1,200 acres. I have the honour to be, Sir, Your obedient servant, O.F .Stonor, Ag: Secretary to Resident, Selangor.
Document in the National Archives of Malaysia 3943/13
Letter from District Officer, District Office, Kuala Kubu, Ulu Selangor to The Secretary to the Resident Kuala Lumpur. 4th November 1913 USL 904/13
Mining Lease to the Malayan Collieries Ltd. Sir, With reference to your correspondence 2459/12 I have the honour to forward for perusal the Mining Lease (in duplicate) which is to be granted to the Malayan Collieries Ltd. This Mining Lease is to take the place of the Mining Certificate lately issued to the Rawang F.M.S. Coal Syndicate and subsequently transferred to the Malayan Collieries Ltd: and includes part of the Rantau Panjang Forest Reserve revoked vide your correspondence No 4001. 2. I would ask authority to issue this Mining Lease to the Malayan Collieries Ltd: I have the honour to be, Sir, Your obedient servant, T C ?Henry/Hemmings District Officer, Ulu Selangor.
Document in the National Archives of Malaysia 5644/13
Document: U. S. 544/10, No. 5239, Government of Selangor P.L. No. 15/12 Schedule Under Section 46 of “The Mining Enactment, 1904”
Prospecting Licence This licence authorises the Rawang, F.M.S. Coal Syndicate Ltd. of London (a) To prospect for the following metal or mineral- namely Coal and oil for the period of 18 months commencing from the 13th day of January 1912, within the area hereunder described, subject to the conditions and limitations contained in part III of the “Mining Enactment, 1904” (b) To select and receive a lease for the whole or any part of State Land within the area hereunder described on proof to the satisfaction of the Resident that the licensee has done a sufficient amount of prospecting work to entitle him to such a lease. Note. - This licence is liable to cancellation by the Resident if the licensee shall cease altogether to work within the area hereunder described for a period of 6 months. Description of Prospecting Area. The available area within a radius of 3 miles from the adit of the Selangor Coal Field near the 26th mile Rawang- Kuala Selangor Road and also such part of the additional area as lies within the Ulu Selangor district together with such part of the additional area as lies within 80 chains of the District boundary. Dated this 25th day of October, 1912. Fee paid $25/- Sd. Re E. Gordon- Walker, Collector. Rt. 6441/12 Special Conditions (Endorsed on back of License) The licensees shall prospect on the express understanding that no lease will be granted without a proviso to the effect that the Government shall always have the right of entering upon the land for the purpose of mining and taking mineral oil for the ships of H.B.M.’s Navy or for other purposes of H.B.M.’s Admiralty and further subject to such other conditions as may be settled hereafter. The issue of the lease will also be subject to the approval of the Secretary of State for the colonies. Sd. R. E. Gordon- Walker, Collector of land Revenue, Ulu Selangor.
Document in the National Archives of Malaysia 3943/13
The Straits Times, 15 November 1913, Page 10
Oil in the Peninsula. To the Editor of the Straits Times. Sir,- In your leader of the 6th inst. under the above caption dealing with the F.M.S. Government Geologist's pamphlet on the prospect of mineral oil being found in the Federated Malay States, you say: "The author thinks most, apparently, of prospects in the rich coast districts, as in Province Wellesley, Kuala Selangor and some other places.” We would beg to point out that in this you are not quite correct. The Government Geologist distinctly states that the two brightest spots are not these coastal deposits but the two occurrences of tertiary rocks found, the one on the Singgora border, and the other forming the Rantau Panjang – more commonly known as the Rawang – Coalfield, now the property of Malayan Collieries, Ltd. In the pamphlet under review the Government Geologist says he thinks that the deeper portions of these two widely- separated outcrops of Tertiary rocks may quite possibly contain oil in payable quantities, and lays it down that to prospect these two outcrops thoroughly should be the aim of those looking for oil. With regard to the one forming the Rawang coalfield, Mr. Mungo Park A.R.S.M., who prospected these measures, gave a rough estimate of the oil contained in the top shales of the upper portion of the same at about twelve thousand million gallons. Unfortunately, the oil in this upper portion is so disseminated through the shale that, although representing a potential asset of considerable value, with the present methods of extraction would not pay to work. Oil rights, however, have been obtained by the company from the Government, and so soon as development work on the main coal shafts has been completed, the company will probably put down in the middle of the outcrop in search of free mineral oil in the lower portion of the measures that bore to depth the hitherto non- sinking of which the Government Geologist regrets.- Yours etc. J. A. Russell and Co. Kuala Lumpur, November 12, 1913.
Letter from D. O. Russell, Malayan Collieries Ltd., J. A. Russell and Co. Federated Malay States, Kuala Lumpur, Selangor 4th December, 1913 to Collector of Land Revenue, Ulu Selangor.
Sir, We have the hour to inform you that we have now placed before our Board of Directors Prospecting Licence No 5314 (17/13), received from you last week, of date 17th November, 1913, and have been instructed by them to draw your attention to the fact that an extra Clause has been inserted in the Prospecting Licence as follows: -“ The Resident shall have the power to insert in any lease of land selected under this licence a condition to the effect that such an area shall be worked to his satisfaction”. In our letter of the 13th October, and that of Mr. J. A. Russell on behalf of the Rawang (F.M.S.) Coal Syndicate, Ltd., of the like date it was stipulated that the new Prospecting Licence issued to us should be identical as regards terms with that one previously issued to the Syndicate and under which it was then undertaken in return for the new one to make no further selection of land. The terms of Clause 3 are vague and the powers conferred on the Resident alarming; we should seem by it to be deprived of absolutely any protection or benefits of the Mining Enactment, 1904, and yet be subject to all its pains and penalties. Before, therefore accepting this Prospecting Licence, we would beg of you kindly to give us some interpretation of the meaning of this Clause. While on the point, we would also ask for an interpretation of Clause No 2. Is it not the form of the lease which it is meant is to be subject to the approval of the Secretary of State for the Colonies? We have the honour to be, Sir, Your obedient servant, Malayan Collieries Ltd., J. A. Russell and Co. Sd. D. O. Russell. Manager.
(This letter has pencilled notes in the margin: “stipulated” is underlined and the note added: “ Neither M.C. nor the Syndicate was in a position to dictate terms.”
Document in the National Archives of Malaysia 3943/13
Mining Lease. (copy) Government of Selangor. (Schedule D. Section 9 (i.) of “The Mining Enactment 1904”)
Lease for Mining Land. District of Ulu Selangor. No. 2549 Vol. XXXVI Fol.49. This lease is issued by the Resident of Selangor, on behalf of His Highness the Sultan of Selangor, to Malayan Collieries Limited and those claiming under him, to occupy for the term of 21 years from the date hereof that portion of land in the mukim of Rawang Portion 1285 estimated to contain 1282 acres, (as shown on annexed plan and bounded as follows, that is to say:-) Subject as hereinafter provided: - For the purpose of working all metals and minerals found on or beneath the said land other than mineral oil. Excepting and reserving unto His said Highness all mineral oils on or beneath the said land with full liberty for His said Highness or persons authorised by him or by the said Resident on his behalf to search for, work and dispose of the same. Subject to the payment therefore of the annual rent of one thousand two hundred and eighty two dollars and to the employment thereon of not less than one thousand two hundred and eighty two coolies, and to the provisions and conditions set out in “The Mining Enactment 1904.” And to the special conditions and obligations endorsed hereon. In witness whereof the said Resident has hereto set his hand and caused the public seal of the State to be affixed at Kuala Lumpur this 6th day of December 1913, Sd. E. Burnside, Acting British Resident, Selangor. in the presence of Sd. T.S.T. Row. Signed by the said Lessees this 25th day of November 1913 for Malayan Collieries, Ltd: Sd. J. A. Russell Director. J. A. Russell and Co. Sd. D.O. Russell, Manager, Agents and Secretaries. in the presence of Sd. Henry E. Swan Collector. Registered at Kuala Kubu Land Office, this 23rd day of January 1914. No. of former Title Mining Certificate 988. Sd. R. E. Gordon-Walker, Collector. Ulu Selangor. SPECIAL CONDITIONS 1. The lessee shall on the written request from time to time of the said Resident place and thereafter keep at the disposal of the Government all such portions of the land hereby leased as the Government may require for the construction and maintenance of the Railway connecting the land hereby leased or any part thereof with the main line of the Federated Malay States Railways between Kuala Lumpur and Kuala Kubu and for the construction and maintenance of sidings connected with such railway and with other works appurtenant thereto ad shall so construct the mining operations hereby authorised as not to interfere with or obstruct the construction, maintenance or use of any such railway or sidings or other works as aforesaid or to endanger the good order or stability thereof. Provided that the said Resident in selecting all such portions of land as aforesaid shall first consult the lessee as to the position thereof. 2. . The lessee shall not after the expiration of the nine months from the date upon which the Railway connecting the said land with the F.M.S. Railway system may be available for traffic cease at any time for a period of 12 consecutive months from doing work upon the said land necessary for and incidental to winning coal from the said land. 3. All coal raised from the land hereby leased shall be subject to a royalty to be paid by the lessee to the Government at the rate of 25 cents for every ton of coal removed or transported beyond the boundaries of the said land, payment of the royalty to be made in such manner as may be directed by the Resident. 4. The lessee shall furnish to the said Resident on or before the15th January, April, July and October in every year a return showing for the three months immediately preceding the month in which the return is required to be furnished, (a) the amount of coal raised, (b) the amount of coal sold, (c) The stock of coal in stacks, trucks, and bins on the last day of the month immediately preceding the month in which the return is required to be furnished, (d) the price or prices at which the coal has been sold and the amount paid to the Government as royalty. 5. The lessee shall from time to time on demand produce for the inspection of the Commissioner of Trade and Customs and the Senior Warden of Mines and of any officer authorised by either of them all books and accounts kept in pursuance of the obligation imposed by Section 16 (x) of “The Mining Enactment 1904” and shall at all times permit and on demand afford all reasonable facilities for the checking by the said Commissioner or Senior Warden or any other officer authorised as aforesaid of the amount of coal in stock. Provided that the lessee shall not be required to remove any such books from the place or places where they are for the time being kept. 6. The lessee on application made from time to time by or on behalf of the said Resident or the Chief Secretary to Government, Federated Malay States, supply for the use of the Government such quantities of coal as may be applied for at a price not exceeding the lowest price at which coal of the quality required is supplied by the lessee to any other person. Provided that should the Government at any time require a supply of coal in excess of 200 tons but not exceeding 2000 tons per mensum three months notice of such requirement shall be given to the lessee and should the Government at any time require a supply of coal in excess of 2000 but not exceeding 5000 tons per mensum six months notice of such requirement shall be given the lessee and should the Government at any time require a supply of coal in excess of 5000 tons per mensum 12 months notice of such requirement shall be given the lessee. 7. All Government Officers authorised in that behalf by the said Resident in writing shall at all times have free access to the land hereto leased with all necessary workmen and apparatus for the purpose of winning, and taking therefrom mineral oil for the ships of His Britannic Majesty’s Navy and for other purposes of His Britannic Majesty’s Admiralty and the lessee shall in no way obstruct or interfere with any such entry or operations. Provided that for any loss or damage caused to the lessee by the exercise of the rights conferred by this condition reasonable compensation shall on complaint being made within twelve months by the lessee to the said Resident be payable by the Government to the lessee; and provided further that, if and so often as the Government and the lessee shall differ as to the merits of any claim for such compensation as aforesaid or as to the amount of compensation to be paid such difference shall be submitted to the arbitration of two arbitrators, one to be appointed by the said Resident and the other by the lessee and such arbitrators shall appoint an umpire or third arbitrator. Such arbitration shall proceed in accordance with the provisions of “The Arbitration Enactment 1912” or any enacted modification thereof. 8. The lease shall be liable to forfeiture for breach of any of the obligations set forth. 9. No export duty shall be charged on any coal won from the land. 10. If the lessee shall within the two years immediately preceding the expiration of the said term of 21 years apply in writing to the said Resident for a lease of the said lands for a further term of 21 years from the expiration of the term hereby grated and if the conditions and obligations expressed and implied herein shall in the opinion of the said Resident have consistently observed and performed then the lessee shall be entitled to receive a lease of all the said lands upon all the terms and conditions herein contained excluding only this condition. Sd. E. Burnside Acting British Resident, Selangor.
Documents in the National Archives of Malaysia
The Malay Daily Chronicle, Tuesday December 30, 1913.
The Statutory Meeting. Mr. J.A Russell’s speech. The statutory meeting of Malayan Collieries Ltd., was held on 22nd inst. at the registered offices of the Company, 14 and 15 Loke Yew Buildings, Kuala Lumpur, Mr. J. A. Russell, (the chairman) presiding. Mr. D. O. Russell (on behalf of Messrs. J. A. Russell and Co. the agents and secretaries) having read the notice convening the meeting, the Chairman said: - Gentlemen, - this meeting, as you all know, is called but in order to comply with the provisions of the Companies Enactment, 1897, it being what is known as a statutory meeting. The object in calling a statutory meeting is not to present an audited balance sheet and report on the working of the Company, but to afford an opportunity to shareholders of learning how the floatation of the company has been effected. I have therefore first to inform you that the total number of shares allotted is 150,000 of which 61,000 are allotted fully paid up to the extent of $10/- a share in part consideration of the acquirement of the property and rights in the Federated Malay States of the Rawang (F.M.S.) Coal Syndicate Ltd. From this you will perceive that our Company has gone to allotment fully subscribed; it was in fact slightly over subscribed, and all very small applications were rejected. The total amount of money that has been received to date is $527,328. There is a sum of $6,750 still due from shareholders on account allotment, but the whole of this sum has been independently guaranteed. The total amount of disbursements made to date is $407,755.14 of which $390,000 was the cash consideration paid to the vendors. The amount of cash with the Company’s bankers is $112,572.86. The present directors, auditors, bankers and the agents and secretaries are those whose names were originally given on the front page of the prospectus, no changes or resignations having been made. But your directors have since the formation of the Company engaged the services of Messrs. Forster Brown and Rees, the eminent colliery consulting engineers of Cardiff, to design your plant, and to advise on equipping and working, while the latter have selected and engaged on your behalf Mr. Thomas Lockhart McCall to act as your mines- manager at Rawang. Mr. McCall until he joined your Company was manager at the Ormiston Colliery, Great Britain, and holds, besides other certificates and diplomas a first class colliery manager’s certificate. Mr. McCall was unfortunately unable at once to sever his former connection, and therefore to arrive out here before about a week ago. The property and rights of the Rawang (F.M.S.) Coal Syndicate, Ltd., have been fully transferred to your Company and you are now sole registered owners of the Rawang Coalfields. Your directors, I must explain, had hoped to be able to avail themselves of the opportunity of today’s formal meeting to give you the information about the proposed method of working and the prospects of you Coalfield, which I am sure you are eager to have; but in view of the fact that Mr. McCall has but just arrived from Home, and has, therefore, not yet had sufficient time or opportunity in which thoroughly to investigate the field and seams, and to arrive at what is the best method of working, we have thought it better to say nothing now, but to promise that within one month’s time from today we will issue to all shareholders a circular giving the fullest possible particulars of the proposed method of working and of the prospects of your property. I shall, therefore, add nothing further at this meeting except in conclusion to mention that you must not think there has been any delay on the part of your directors, for matters have been progressing steadily and could not have been further expedited without taking grave risks; that the earthwork line being built by the F.M.S. Government to your coalfield is now well in hand; that all your directors have seen and heard since the formation of the Company has but the more convinced them of the great value of your property; and finally to thank you for you attendance here to-day.
Letter to the Secretary to the Resident, Selangor, from Drew and Napier, Advocates and Solicitors, Kuala Lumpur Federated Malay States. 31st December 1913.
Malayan Collieries Ltd. Sir, The directors of the above Company wish to discuss with the British Resident the terms of the prospecting licence which has recently been issued with regard in particular to the last special condition thereof. That condition is designed to prevent a monopoly of mining for coal in the Rawang coal area, and the directors are quite willing to accede to any condition upon that point, but they feel that the condition as worded does not properly meet the case and is far too wide in expression and is likely to embarrass them in working the Mine in the future. It is on the above points that the Directors desire to consult with the Resident with a view to redrafting of the condition. We should be much obliged if the Resident would be kind enough to grant an appointment, when we and the Directors can attend before him and discuss the matter. We have the Honour to be Sir, Your obedient servants, Drew and Napier.
Document in the National Archives of Malaysia 3943/13
F.M.S. Annual Departmental Report. 1913, page 6.
Coal. Rawang Coal Area. 21. The Rawang Collieries Company, Limited, was floated locally in July, with a capital of $2,000,000, and the manager who had been engaged in England arrived at the end of the year. A commencement was made on railway connection, and good progress is expected. The coal was successfully tried in a Dowson double action suction producer; but no experiments have been made with regard to briquetting. A considerable amount of preliminary work is under consideration by the company and they should be in a position to produce coal shortly after the completion of the railway connection. Further prospecting operations were also in hand at the end of the year.
Document in the National Archives of Malaysia, also reproduced in The Malay Daily Chronicle, Wednesday June, 10, 1914 page 7.
The Straits Times, 23 March 1914, Page 10 and The Malay Daily Chronicle, page 3 Saturday, March 28, 1914
MALAYAN COLLIERIES, LTD. Preliminary Equipment of The Plant. Messrs. J. A. Russell and Company, agents and secretaries, have issued the following circular to shareholders in Malayan Collieries, Ltd.:—. With reference to our circular letter to shareholders, of February 2, we have been instructed by the board of directors to inform you that our mine manager, Mr. McCall, having now concluded the sinking into the coal of the trial shafts put down with a view to obtaining working data as to the nature of the coal and covering shales, has thus been able to complete the drawing up of the plans, specifications and report for the full equipment and development upon modern lines of a colliery capable of turning out, screening, washing, and loading into trucks 1,500 tons of coal a day, and that this report and these plans, after having been submitted by your board to the Senior Warden of Mines, have been sent home to the consulting engineers in Cardiff for them to deal with. But the installation of the entire plant will take some little while to effect, and it will be impossible to get every part of it ready for use by the time that the railway is constructed to the pit-head and able to convey coal to the market. So, as the full pumping and winding plant will not be required at the outset when neither pumping nor winding would be heavy (and the same condition will apply to a great deal of the rest of the equipment), and remembering that the market will not at once be able to consume anything like a daily out-turn of 1,500 tons, your directors after consulting with your mine manager, have decided to commence mining operations by only installing to start with a modified selection and adaptation of the full equipment, and have with this in view instructed Messrs. Forster Brown and Rees to order from stock and to ship out with all possible speed only those portions of the plant necessary for the initial development and working of the mine. This preliminary equipment will be capable of handling some 500 tons day; an amount which will probably suffice the market for some little time to come. Its component parts will all be easily procurable from stock. It will be possible to transport it over the company’s cart road to the mine and probably to erect it and get it in working order by the time that the railway is ready to convey coal to the market. The total cost of this will be well within the amount allowed for plant in the company’s prospectus. With very slight modifications it will all fit in with the full equipment when later on that latter comes to be installed. As in the final scheme so in this preliminary one all vital portions of the plant will be in duplicate. It is intended to work the mine by four inclined shafts; two of these will be equipped with rails for haulage and the other two will serve for man-way, pumping and electric cable purposes. By thus duplicating the shafts it is hoped to obviate the risks of a total break-down. A vertical ventilation shaft will also be sunk and cross cut into the workings. When the full plant has been finally installed, this latter shaft, together with a companion vertical haulage shaft, will be continued down into the North Seam and both seams be simultaneously operated. Good progress, it might in conclusion be mentioned, is being made by the Railway Department with the construction of our line to the pit-head.
Letter from Drew and Napier, Advocates and Solicitors, Kuala Lumpur, Federated Malay States, to the Secretary to the Resident Selangor. 2 April 1914.
Re Malayan Collieries Ltd. Prospecting Licence. Sir, We have the honour to acknowledge receipt of your letter of the 27th ultimo in this matter. We have seen Mr. J. A. Russell upon your letter and his recollection, coinciding with Mr. Robinson’s recollection, of the result of the interview with the Resident on the 13th January, is that the Resident agreed in principal to the request of the Directors of the Malayan Collieries Ltd. and that the Resident was to consider whether the wording of the condition of the Prospecting Licence could not be modified so as to cover the reasons for its insertion and no more. The reason for its insertion as given to Messrs. J. A. Russell & Company was that it was designed to prevent a monopoly in collieries arising in the Malayan coalfields. The wording of the condition does not deal with this point specifically though of course it is wide enough to affect the object of the Government, but the Directors point is that it not only effects this object but it is also very much wider than what the Government require for the purpose the have in view. 0. The effect of it is that the Company is not only subject to all the requirements of the Mining Enactment, including the clause with regard to employing one cooly per acre, but it also imposes additional liabilities on the Company to work the land in accordance with the wishes of the Resident, which is an addition vague in itself and under it the Company might be called upon to do things in addition to what is required of the Lessees by the Mining Enactment, and these things, as we have said, cannot be known to the lessees until the Resident calls for them to be done. At the interview with the Resident referred to above it was suggested as an alternative that the labour clause of the Mining Enactment should be modified by relieving the lessees from the obligation to employ one cooly per acre, a number which in coal mining it may be impracticable to employ when a large area is taken up. Both Mr. Russell and Mr. Robinson left the interview under the impression that it had been agreed in principle that the Government would meet the Company on one or the other of the alternatives named above. Under these circumstances your letter of reply came as a surprise to the Directors, and we have the honour to request that you will lay this letter before the Resident in order to remind him of the circumstances. The matter is of great importance to the Company which is perfectly willing to agree to any stipulation to effect the prohibition of a monopoly which was the reason for the condition being imposed upon, but, as framed, that condition is a great deal wider than the government require for their purpose and is liable to embarrass the Company in their work to a considerable extent. We have the honour to be, Sir. Your obedient servants, Drew and Napier.
Document in the National Archives of Malaysia 3943/13
Letter from O. F. Stonor, Secretary to the Resident, to Messrs. Drew and Napier, Advocates and Solicitors, Kuala Lumpur. 9th April 1914.
Gentlemen, In reply to your letter of the 2nd April on the subject of the Prospecting License held by “the Malayan Collieries Ltd.” I am directed to say that the Resident has no recollection of having agreed to anything at the interview referred to except that he would be willing to consider any further representations that the Company wish to make on the matter. I have the honour to be, Gentlemen, Your obedient servant, Sd. O.F. Stoner secretary to the Resident, Selangor.
Document in the National Archives of Malaysia 3943/13
Malay Mail Wednesday, May 20th, 1914 and The Straits Times, 22 May 1914, Page 8
Two thousand part- paid shares in the Malayan Collieries, Ltd., were put up for sale on Saturday last by the Chinese Industrial Bank, and were bought by Mr. Loke Chow Kit at $2.50 per share.
The Straits Times, 5 August 1914, Page 10, Malay Mail, 7 August 1914, p.15 and The Malay Daily Chronicle, Thursday August 6 1914,The Singapore Free Press and Mercantile Advertiser, 4 August 1914, Page 12
MALAYAN COLLIERIES, LTD. Mine Manager Describes Progress Of Borings. The first annual report of the directors of Malayan Collieries, Ltd., for the year ended June 30, to be presented at the general meeting at Kuala Lumpur on the 22nd inst., runs as follows:- TITLE.— The company's mining certificate has now been exchanged for mining lease No. 2549, district of Ulu Selangor, over an area of 1,282 acres. The balance of the concession, however is still held under a prospecting licence giving the company the right at any time to select, at a premium of $5 an acre, the whole or any part of the land covered by it. 0. Prospecting.- Further prospecting was carried on throughout the year. The coal area proved extends beyond the boundaries of the land so far under lease, and it is intended to convert more of the concession to leasehold land, applying for a renewal of the prospecting licence over the balance. 0. Management.- The directors were of the opinion that it was advisable in laying out their plant to secure the advice and services of the very best home consulting engineers to be obtained, and also to engage a mine manager who had practical experience as a manager of a large home colliery. With this end in view they engaged in the first capacity the services of Messrs. Forster Brown and Rees of Cardiff and London, one of the largest firms of consulting colliery engineers in Great Britain, and these latter on behalf of the Company selected and engaged as mine- engineer Mr. T. L. McCall. Mr. McCall, however, was unable to leave the Ormiston collieries until the end of the year, which made a delay of some months; but the directors thought it better to incur this delay rather than to secure as manager a man not so well recommended. Arrangements are now being made at home to engage an assistant manager, and a mechanical-electrical engineer. 0. System of Working.- Mr. McCall after his arrival was first engaged in obtaining data regarding, and consulting with the directors concerning, the particular system by which the mine should be worked: that is to say, whether by open cast, by vertical shafts sunk to meet the seam at the 300ft level, or by means of inclined shafts sunk on the outcrop. The latter was the method finally decided upon. 0. Mines.- The mine will be worked by two diverging haulage inclines which should insure a regular and continuous output capable of being at any time considerably expanded beyond the initially intended supply of 500 tons per diem. A shallow vertical ventilation shaft is being sunk between these two haulage mines. 0. Plant.- In a circular to shareholders issued on March 20 it was stated that the directors hoped the 500 ton per day installation that is being erected could all be obtained from stock. Unfortunately this anticipation has proved to be wrong, the most of the plant having to be specially manufactured. The majority of it has now been inspected under trail by our consulting engineers, passed, and is on its way out. In the meantime to avoid delay in opening up, a temporary and locally obtained plant has been installed. 0. Railway.- The Government railway line to the collieries is well in hand, and is estimated to be completed by the end of the year. A brick- kiln has been started on the concession to supply the needs of the mine, and probably also those of the railway. 0. Telephone.-The government has agreed to connect up the Colliery with the telephone system. 0. Directorate.- Mr. Tan Chay Yan, having been unable to attend three consecutive meetings of the board, in accordance with the articles of association of the company resigned his seat. The board do not consider it necessary to elect at present another director in his place. The Government have not availed themselves of the right for which they asked to nominate a Government Official to a seat on the board. The retiring directors are Mr. J.A. Russell and Mr. Foo Choo Choon, who being eligible offer themselves for re- election. The auditors, Messrs F. W. Barker and Co retire, and offer themselves for re election for the ensuing year. 0. Mine Manager’s Report. 0. For the half year ending June 30, Mr. McCall, the mine manager, reports from Rawang under date June 30:- 0. On assuming duties at the mine at the beginning of this year, the first steps taken were to examine the field and prepare plans and reports for Messrs. Forster Brown and Rees, your consulting engineers. These plans and reports having met with your approval were dispatched towards the end of February. In order to expedite matters, I assumed that Messrs. Forster Brown and Rees would agree to the general outline of the plan and according put down a few shallow bores in the neighbourhood of the inclines or mines, by which mines the coal will be brought to the surface. These bores were necessary for the purpose of starting the mines to catch the coal at the correct inclination. This work was finished by the end of April. 0. On receipt of a cablegram from the consulting engineers, stating that the plans submitted had met with their approval, the south mine or incline to the main coal seam was stated on May 22. Owing to a spell of dry weather the incline was driven down without the use of pumps until June 6 by which time the distance on the slope from the surface was 55 feet. At this juncture work had to be suspended owing to the flooding of the mine due to the resumption of the rains. A temporary boiler and pump were installed and work on the incline was resumed on June 17, coal was struck some 76 feet (on the slope) from the surface and the mine is now 10 feet into coal. The north mine or incline to this same seam was started on June 16 and is making good progress. The coal as shown in the south mine is hard and compact and so far is free from shale bands. It is being burnt in the temporary boiler with satisfactory results. There is a minimum of ash, the small quality that there is being fine dust. There is no clinkering and the fuel is almost smokeless. I cannot yet report on its storing qualities. 0. The road in the coalfield, through the jungle, has been widened out and the bridges have been rebuilt. It is now possible to bring in sufficient machinery over this road to develop the mine, until such time as the railway may be through. There is good brick clay on the property and a brick kiln is in the course of erection, which will be shortly producing. Further borings for coal are now in progress on the lands over which the company have prospecting rights. A kedai has been erected on the mine and is open for the sale of provisions, etc. The labour employed is Chinese throughout, and I am glad to be able to state that the general health of the workforce has been good.
Document: Malayan Collieries Limited, Directors Report and Statement of Accounts. For the year Ending 30th June 1914. To be Presented at the first Annual General Meeting of Shareholders to be held at the Registered Offices, 8,9 and 10, Loke Yew Buildings, Kuala Lumpur on Saturday, the 22nd day of August, 1914, at 10 a.m. (Content as reported by The Straits Times, of 5 August 1914, Page 10).
Document in the National Archives of Malaysia 2/2144
The Malay Mail, Thursday, August, 27, 1914.
Rawang Coal. The Collieries’ Meeting. Chairman’s Statement. The first annual general meeting of the shareholders in the Malayan Collieries, Ltd., was held on the 22nd inst., at the registered offices of the company, Loke Yew Buildings, Kuala Lumpur, Mr. J. A. Russell (the Chairman) presiding. Mr. P.P. Spradbery, for the agents and secretaries, having read the notice convening the meeting and the report of the auditors. The Chairman in the course of his speech said:- I should first like to explain that our original reason for fixing this day of the week and this hour for the holding of our general meeting was that it might fit in with the Race Meeting intended to take place today. We thought it possible that the racing fixture would bring many Perak, Penang, and other distant share holders to Kuala Lumpur, while by holding our own meeting as early at 10 o’clock in the morning, shareholders could still get away in time to attend the lotteries at eleven thirty. Unfortunately for us all a temporary crisis has since arisen, and race meetings like other more important matters have had for the time being to be suspended.
( Rest of meeting as reported in The Straits Times, 28 August 1914, Page 10. See below)
The Straits Times, 28 August 1914, Page 10 Malayan Collieries. PAST YEAR'S WORK ON RAWANG COALFIELDS. Present Position and Prospects. The first annual general meeting of the shareholders in the Malayan Collieries, Ltd., was held on the 22nd inst., at the registered offices of the company, Loke Yew Buildings, Kuala Lumpur, Mr. J. A. Russell (the Chairman) presiding. A report of the chairman’s speech is sent to us by the secretaries, Messrs, J. A. Russell and Co. 0. The chairman in the course of his speech said:- 0. The report and accounts of the company showing the year’s working to June 30 last have been in your hands for some time, and I shall, therefore, ask you to take them as read. The accounts, which are from the formation of the company till the end of June, are, I think, self-explanatory. The total preliminary expenses incurred, not including brokerage, have been found to be $5,585.58, of which amount, in accordance with the terms of the prospectus, the vendor has now to refund the sum of $585.58. 0. From the Directors’ and the mine manager’s reports before you, you will have learned briefly what we have done up to June 30, and the position of the mine at that date, and I should like now, after this further six months, emphatically to confirm what I said at the statutory meeting of this company; that is, that everything that has so far transpired in the development of your property has but tended to confirm the statements made in the prospectus. The prospectus at the time was described, perhaps cynically so, as “ an extremely glowing one”: the year’s working has proved the potentialities and prospects of what is popularly known as the Rawang Coalfields to be equally “glowing”. 0. Quality of the Coal. 0. Our coal in fact is all that it was claimed for it, while the Main Seam, which is the seam we are now developing, would, so far as we have opened it up, appear to be with regard to freedom from shale bands even better than was anticipated. The coal is perhaps harder in texture than was thought, but despite this extra hardness it is not believed that the working costs per ton as estimated in the prospectus will be exceeded. We are ourselves already in a position to turn out a certain amount of coal, and have had numbers of enquiries for consignments of it, we presume for trial, from the local shipping interests, engine ring firms, mines and others; but until the railway is through we can supply nothing. We are, however, using out coal for our own plant and with great success. The Chinese engine- drivers upon the coalfield, who have previously worked on mines using Indian fuel, tell us that they can obtain from our Rawang coal more satisfactory results than could they formally get from Indian stuff, and this I tell you for what it is worth. We wish, however, to be perfectly frank with our shareholders, and I must warn you that on certain points, such for instance as the coal’s storage properties, we have not yet had sufficient experience to guide as at arriving at a definitive conclusion; but I can and do say that indications on all these points are on the whole favourable, and that none of them are of sufficient importance to outweigh the many good qualities of the fuel. 0. The majority of our permanent plant has now arrived, or should be arriving in a day or two at Port Swettenham. That which has already arrived is in the process of being carted from Rawang to the coalfield, where foundations to receive it are in the course of construction. 0. Plant and management. 0. Messrs. Foster, Brown and Rees, our consulting engineers at home, in conjunction with our mine manager, have drawn up very full plans, and have purchased and tested for us all our plant. In order to obtain the best plant at the cheapest prices, a contract has been given for the whole amount to one firm, but the supply has been split up amongst some twenty firms. Messrs. Forster, Brown and Rees have called for tenders for each separate part of the plant, specifying exactly down to the minutest details what we require, and seeing that we get our requirements. This is the value of our employing the best colliery engineers to be obtained; their fee may be high, but in specifying for machinery, and for all the hundreds of articles used in the equipment of a mine, one has the advantage of their years of experience in managing many of the largest collieries in the British Isles; and in daily using themselves the very articles which we require; they know how to get the best and cheapest of everything, and, moreover, no commission is charged on purchases. 0. You will see by the directors’ report that arrangements are now being made to engage an underground assistant mine manager and an engineer from home. Well, we have thought it our duty to cancel the engagement of the engineer, and take on a local man, one who has been most highly recommended to us. In times like these, if we can possibly do so with safety, we must do what we can to assist local men. We do not think it safe or possible, however, to engage out here the class of man that we want as an assistant mine- manager, one that is, who has had years of practical experience in all branches, including the lower ones, of actual coal winning; so our assistant manager we shall be obtaining from home. With regard to the system of working I should like to assure you that your directors have gone very thoroughly into the question and have only adopted the system which they have done after full consideration of many other methods. 0. The Government have promised that their railway line shall be ready for the transportation of coal by the end of this year. There is at present pending between the Government and ourselves a question as to who shall pay for the marshalling sidings; but the Chief Secretary has verbally assured us that any delay in coming to a decision upon this matter will not affect the actual time of completion. 0. We shall require for use on the mine a considerable number of bricks, and having very excellent clay and abundant fuel we have found it cheaper to erect a kiln and make our own bricks than to purchase these bricks in Kuala Lumpur and cart them to the coalfield. The acting Chief Resident Engineer for Construction has informed us that if our bricks are of good quality, and we can deliver them on the line, he is prepared to take a considerable number form us, while when the line is open we hope to place them on the Kuala Lumpur market. 0. The Proposed Call. 0. I now come to a matter about which I am sure you are all anxious to hear; I refer to the call which has been made of $1 payable on or before the last of September next. Several shareholders have asked the secretaries whether it is not possible in view of the present crisis to defer this call. It has been pointed out that most companies are deferring their calls until the advent of more normal times and it is inquired why this company cannot do likewise. As announced by a circular issued to shareholders on February 2 last, the policy of this company’s board was, and is, to make calls as infrequent and easy as possible. I do not think that any shareholder when applying for shares in the company ever for a moment thought it would be over a year before the first call would be made, or that when made such call would be only one of a dollar; but by the practice of a rigid economy upon the part of the board, and I think I can also say by good management, this happy result has been achieved. Prospectus estimates are generally exceeded, and in the same manner that at the time of floatation of this company many voiced their opinion, even in the public press, that the facts stated in the prospectus were incorrect, so it was also said that our estimates were bound to be exceeded. Well, we have not only so far kept within our estimates, but we have kept well within them, and we shall endeavor in future to be as careful in the matter of making calls as we have hitherto been. But this present call must be made, and must be made now. The amount of our plant we have reduced to a minimum consistent with safety and efficiency, but this minimum has all been ordered and made, and must now be paid for. There is the freight and insurance and the transport upon it to meet; it has to be erected; there are foundations now being built, and bungalows and stores being put up. We shall want money for all these. I might mention that only essential development work upon the mine is being carried out, and that our labour wages have all been reduced; although of course we have not paid off any old hands wishing to remain on, and willing to work. We have work enough for all. 0. Two installments of 50 Cents. 0. By carefully arranging our finances I am now able to announce to you at this meeting that we shall be prepared to receive the call in two installments of fifty cents each: the first installment to be paid on or before September 10, and the second on or before November. Shareholders’ certificates will not be endorsed as having had the call paid until both installments have been paid in full, and I would earnestly ask such shareholders as can do so to pay the whole of their call straight away. But in justice to those shareholders who do pay, the company cannot afford to be lenient to those who don’t, and I must therefore warn you that if by the dates I have mentioned the installments of call upon any shares remain unpaid, steps will be taken under section 21 and 22 of the Company’s Articles of Association to forfeit such shares. 0. In conclusion I would add that there being so many Chinese shareholders in this company many of whom probably do not read English, it is intended to send to each Chinese shareholder a translation in Chinese of the report and accounts and of these remarks of mine. I think that this is all I have to say, and I will now formally move that the directors report and accounts be received and adopted, which I shall ask Mr. Henggeler to second; but before putting the motion to the meeting I shall be pleased to answer to the best of my ability any questions which any shareholder may desire to put. 0. No questions being asked, Mr. Henggeler seconded the motion, which was unanimously agreed to. The formal business was next transacted, and a vote of thanks to the agents and secretaries and another to the chairman and directors terminated the proceedings.
Letter: To the Secretary to the Resident from District Officer, Ulu Selangor Kuala Kubu. 3rd December 1914 U.S.L. No. 841/13 No. 3943/13
Appln. From the Malayan Collieries Ltd. for the renewal of their P.L. Sir, With reference to your correspondence Nos. 3943/13 & 2812/14, I have the honour to inform you that the Malayan Collieries Limited have applied for a renewal of the Prospecting Licence issued to the Company on the 17th November 1913 and expiring on the 16th November 1914. The Company applies for a selection area of 268 acres under this prospecting Licence, as shown on the attached tracing. 2. As regards the renewal of the Prospecting Licence I understand that the Resident approved it subject to conditions, laid down in 2812/14 and accepted by the Company. 3. The selection area adjoins the land for which a lease has already issued to the Company (shown as P.1285 on the plan.) It falls within the prospecting area. 4. I can see no objection to the granting of this application and would therefore recommend it subject to the conditions imposed in the case of the lease already issued and approved in your correspondence No. 2459/12. I have the honour to be, Sir, Your obedient servant, ?CMOwen, District officer, Ulu Selangor.
Document in the National Archives of Malaysia 2819/14
The Malay Mail, Friday January 15 1915, The Straits Times, 13 January 1915, Page 8
Malayan Collieries Position at the End of 1914. Mine Manager’s Report Messrs. J. A. Russell and Co., Kuala Lumpur, Managing Agents and Secretaries of the Malayan Collieries, Ltd. have issued to shareholders, under date Dec 31st the following statement of the position of the property as at Dec 31st last:- We are desired by your board of directors to inform you that they take the opportunity afforded by the conclusion of the Company’s financial half year to give shareholders a brief description of the present position in the development of their property. The initial system of opening adopted has already been explained to be one which, by means of two diverging “slants” or inclined tunnels following the coal downward from its outcrop, avoids the unremunerative outlay of shaft- sinking through great thicknesses of barren measures together with the extra expense attendant upon the necessarily more costly winding and other equipment of vertical- shafts. Such shafts moreover, in the process of sinking would have occupied, according to the depth sunk and the difficulties encountered, anything in time from between 18 months and 2 years or more. The North and South Mines. The two haulage inclines, constructed in accordance with the above plan, and known as the south and north mine respectively, are both in the main seam, and are connected by a drift communicating with a shallow vertical ventilating shaft. The north, or underlying, seam, will be worked later on through separate connecting shafts. Mining was begun with a temporary pumping and haulage plant, the installation of the permanent machinery from home proceeding pari-passu. The erection of the two Babcock and Wilcox boilers and the steel work in connection therewith has now been practically completed, while the 100 foot smokestack has been finished. The work of installing the permanent hauling engines is also nearly completed. Connection has been made between the mine fan and the ventilating shaft, and the fan and engine are running continuously. The fan engine house has been completed. Foundations for the gangways from the mines have been begun and the woodwork put in hand so that these gangways and the heapstead should be ready for use as soon as the railway is through. The south mine is now down over 500 feet on the slope from the surface, work in the companion or return aircourse having kept pace with it, and the mine mouths have been completed in accordance with the plans prepared and sent by our home engineers, Messrs. Forster Brown and Rees. The mine shows clean hard coal in all directions and the dip is uniformly maintained. The north mine is down 400 feet on the slope from the surface, and the larger temporary pumping and haulage plant has been installed. The coal found is similar in all respects to that in the south mine. The temporary plant in both mines is everywhere working smoothly. The dip of the seam as shown by these two mines is approximately 1 in 4 and a half. The arrival of the electrical plant has been delayed, part of it having been commandeered by the War Office, but it is not immediately required and its non-appearance has not seriously interfered with or deferred the production of coal. The new bungalow, office, store and lines are all practically completed. The mines are now turning out a quantity of coal per day, but unfortunately the delay in the completion of the railway line to the pithead has prevented this coal being placed on the market. Vigorous representations on the matter, however, have been made to Government which has had had no doubt to contend of late with exceptional difficulties; but is now trying to expedite matters. The acting General Manager of Railways has kindly promised to put through a soon as possible a temporary connection to pit-mouth. Mine managers Report. In his report for November the Mine Manager Mr. T. S. McCall, says: “ If you will remember, in my report for September, I drew your attention to the fact that possibly our present temporary boiler would not be of sufficient capacity to keep up steam once we had installed our heavy pumps, etc. I am now glad to be able to report that we are able to keep up steam although the boiler is hard pressed and stoking is heavy. In my opinion this boiler is now working up to its maximum and it is supplying steam for the following: Ventilating Fan Engine, size 9ins by 12ins, two Worthington duplex pumps, 9ins by 5 and a quarter ins by 10, two Worthington duplex pumps, size 6ins by 4 ins by 6 ins. The above are all running continuously day and night and also there is running intermittently an 8ins by 12ins double cylindered winch. It must of course, be remembered that the pumps are not working against their full head and that the fan engine and winch are not on full load, but when the length of steam mains and the heavy condensation entailed thereby is considered I think it must be admitted that the performance is not a bad one and argues well for the steaming capabilities of Rawang coal. I would remind you that our boiler is only 25 H.P. nominal rating. Numerous enquiries have been received for the coal from miners, shippers. Smelters, and others, and consignments are being sent home to Messrs. the British Westinghouse Electrical and Manufacturing Co., Ltd., Kynoch, Arklow, Ltd., Richard Hornsby and Sons Ltd., and others who have asked parcels of our coal to be sent to England at their expense for the purpose of testing the same upon the gas and other plants now being constructed by these firms with a view more especially to burning Rawang fuel.
The Singapore Free Press and Mercantile Advertiser (1884-1942), 29 January 1915, Page 4 and The Straits Times, 28 January 1915, Page 8
MALAYAN COLLIERIES. An Official Visit . We hear that the acting Chief Secretary, the Hon. Mr. R.G. Watson, the acting General Manager of the Railways, Mr. G. H. Fox, the Senior Warden of Mines, Mr. W. Eyre Kenny, the acting Chief Resident Engineer for Construction, Mr. F. D. R. Openshaw, the Locomotive Superintendent, Mr. G. C. Forbes, and the Chairman of Malayan Collieries, Ltd. Mr. J. A. Russell, visited the Company’s coalfields last Saturday, traveling there by a special train which passed over the new line linking the coalfields with the main F.M.S. railway system. The party were met at the coalfields station by the mine manager Mr. T. L. McCall. . The cuttings on the new line are said to be extremely heavy and in bad ground. There are several bridges in the course of its length, which is some nine miles in all, and for the most part lies through difficult country. The work is rapidly being pushed ahead.
Report: Malayan Collieries, Limited.
Directors Report and Statement of Accounts. For the Year Ended 30th June, 1915 To be presented at the second annual meeting of shareholders, to be held at the Registered offices of the Company, 8, 9 and 10 Loke Yew Buildings, Kuala Lumpur, on Thursday, the 30th day of September, 1915, ay 11.30 am. Malayan Collieries, Limited. (List of directors, bankers etc. and agenda) Report of the Directors for the Year ended 30th June, 1915. The directors have pleasure in submitting their second annual report and Statement of Accounts for the Year ended 30th June, 1915. Titles. - During the year application was made for the conversion of a further 265 acres to Mining Lease (making a total area under lease of 1,547 acres), whilst the Prospecting License was renewed over the balance of the Concession. Prospecting. - Prospecting was carried out throughout the year, but owing to the shortness in length of the Company’s diamond drill such prospecting had to be confined to the near vicinity of the outcrop. As soon as the rail connection is through, it is intended to make an application to the Government to hire the Mine’s Department drill set. Mines. - The two diversing haulage inclines known as the North and South Mines, were steadily developed throughout the year. Faulting, a fissure and water troubles somewhat retarded the anticipated rate of progress. Plant. - With the exception of the electric lighting set and some of the work-shop machines, the whole of the plant on order has arrived during the year and is almost completely installed. Railway. - Instead of the branch line from Kuang to the Collieries being, as was at one time hoped, ready by the beginning of 1915, it will not open to traffic until the 1st of September. After considerable negotiations on the point, H. E. the High Commissioner decided that the Company should pay for the cost of constructing the sidings from Batu Arang Station to pit- head. No provision having been made for an expense that the Directors had not believed was chargeable to the Company, the Directors had then to negotiate further with Government to be allowed to pay in installments; a concession which the Government was kind enough to grant taking as security for the due payment thereof a charge over the property of the Company. Marshalling yard. - The Railway Department has consented to sell to the Company at a fair valuation a locomotive for shunting purposes, which locomotive is now being slightly altered, until it be ready, the Railway Department has kindly agreed to do the Company’s shunting at fixed rates per wagon. Coal trials.- Several coal trials were made during the year, all of which went to confirm the original estimate of the coal’s value as fuel. At the request of one or two Home makers of bituminous-coal suction- gas- plants some parcels of coal were shipped to England. Unfortunately no tests could be carried out, by the time the coal arrived Home the makers’ works having in each case been taken over by the Home Government for war purposes. Coal Sales.- The line not being opened until the 1st September, it was not possible to produce and sell coal. Coal might have been raised and stacked until rail communication was through, but not only would this have meant tying up a larger amount of capital than could be afforded in a time of unparalleled financial stringency, but the stored coal would have been deteriorating in quality. During the last month of the Company’s year, however, the Construction Department of the Railway was good enough to haul us a limited amount of coal over its partially completed line. Brick-Kiln.-The brick- kiln was steadily employed throughout the year in supplying the company’s private needs. These are now practically satisfied, and the Company have therefore entered into a contract to manufacture bricks for the Construction Department of the Railway. Telephone. - It is greatly to be regretted that the Posts & Telegraphs department is not proceeding with the promised telephone connection between Rawang and Kuala Lumpur. Mine management. - Mr. McCall has continued in charge of the mine, with Messrs. Foster Brown & Rees of Cardiff as Consulting Engineers, throughout the year; it was however, owing to the war found impossible to engage from Home an assistant manager. Mr. F. J. Porteous joined the Company as mechanical-electrical engineer, whilst Mr. N. O. Gay was engaged as Underground Superintendent. Directorate.- Mr. Foo Choo Choon finding it difficult to attend meetings of the Board resigned his seat, and was succeeded by Mr. Alexander Grant McKie whose election shareholders are now asked to confirm. The other retiring director is Mr. A. D. Allen, who being eligible offers himself for re election. Auditors. - The auditors, Messrs. F. W. Barker and Co. retire and offer themselves for re election for the ensuing year. By Order of the Board, J. A. Russell and Co., Managing Agents and Secretaries Kuala Lumpur 1st July 1915. Malayan Collieries Limited. Mine- Manager’s Report to Directors for the Half-Year Ended 30th June 1915 Sirs, I have the honour to report as follows:- During the financial year steady progress was made in driving the two haulage mines or inclines known as the North and South Mines respectively. These mines have been confined to the upper leaf of the Main Seam, which here runs about 16 to 17 feet thick, and have not touched any of the lower portions of the Main Seam. The dip in the seam has continued uniformly, being approximately 1 in 4 and a quarter to 1 in 4 and half. Unforeseen circumstances militated against a speedy advance in the drivage of the mines. In the South Mine a fault was encountered in the Main Drive, which delayed the advance until the fault had been proved in a branch road, whilst at the same time in the North Mine a “want” was struck, the coal being replaced by shale. The North Mine main road is still cutting this “want” which as shown by bores put down to test the extent of the “want” is of some length but narrow. It is unfortunate that the “want” and the North Mine main road are crossing each other at such a slow angle, as otherwise the cutting of the “want” would have occupied but a very short space of time. However, although the fault and the “want” have delayed progression, they are neither of them serious, and their occurrence in a coal mine is only to be expected. Although the amount of water encountered in driving mines is of no great quantity, yet it will be readily understood that even a very small quantity can be of very great inconvenience when driving downhill, and where no standage room for water can be obtained. The electric pumps are not yet in use, but will shortly be so, as the cables for the motors are being installed at the time of writing. Temporarily to deal with the water, pumps were installed at both mines, which will be replaced by the electric pumps mentioned above. A ventilating fan and provisional steam winch have been in use for the past nine months and are still at work. All the above plant is now taking steam from permanent boilers instead of from a temporary portable boiler as was formerly the case. As it would not have been a wise policy to start opening out the coal until the Railway was through, or at least some means obtained of transporting the coal, work was steadily confined to developing the main roads. Now, however the Construction Department of the F.M.S. Railways have recently so kindly extended to us the facilities of their construction line from Kuang to near the mine, opening- out work has been begun; this as yet is only on a small scale, for the loading conveniences being merely of a temporary nature are not capable of dealing with any great amount, nor can the construction department haul more than a small quantity of coal per day. Practically all the machinery ordered for the initial layout of the colliery has arrived and been duly erected The boiler unit consists of 2 Babcock and Wilson boilers, together with a forced draft fan and steel chimney. One or other of these boilers has been in constant use since January, and has given every satisfaction. The boiler plant is housed in a brick and steel building, which is so constructed that additional boilers can be readily laid down at a future date without interfering with the present plan in any way. In passing I might here mention that this policy to providing for future extensions has been adopted wherever possible. At the back of the boiler house and adjoining it comes the main engine house. This is another brick and steel building, and also constructed out of bricks manufactured at the mine; it houses the two haulage engines, one for each incline, and two D.C. generating sets of 100 K.W. each. In the building as erected space has been provided for a winding- engine set which will draw coal from the North Seam when the opening of the seam is deemed to be necessary. The heapstead and tumbler and temporary screens for dealing with the coal on the surface before it is loaded into wagons are all ready, and will be put into use as soon as the rails of the Colliery Yard are laid, which latter work is expected to be completed sometime in September. All machinery, I might mention, was transported through the jungle to our mine over our private road, and a great part of it at a time of heavy rains: the road thus became badly cut up. Boring operations were continually in progress. The labour employed continued to be Chinese throughout. The health of the force was on the whole not bad, but was distinctly not as good as last year, the opening of the Railway line having introduced a certain amount of malaria into the mine. I am, Sirs, Your obedient servant, T. L. Mc Call. Rawang, 30th June 1915.
( Followed by balance sheet, accounts and development account) Document in the National Archives of Malaysia
Malay Mail of Saturday, 2nd October, 1915,The Straits Times, 6 October 1915, Page 12
Malayan Coal The Collieries Meeting. Probable Outputs The second annual general meeting of shareholders in Malayan Collieries Ltd., was held at the registered offices of the Company, 8,9 and 10 Loke Yew Buildings, Kuala Lumpur, on Thursday, Sept 30th at 11.30 a.m. Mr. J. A. Russell (chairman of directors) presided, the only other directors present being Towkay Loke Yew, C.M.G. by his attorney, Mr. C. Kam Chuan, and Mr. Grant Mackie. Others present were Mr. I.J. Weir, Mr. F. J. Porteous, Mr. Loke Chow Thye, Mr. Yap Heng and Mr. J. L. McCall. Mr. P.P. Spradbery for the secretaries read the notice convening the meeting, and also the minutes of the last meeting which were confirmed. The annual statement of accounts and balance sheet, and the report of the directors and auditors were submitted to the meeting and The Chairman, in moving their adoption said: - Gentlemen,- I presume that as usual, you will take the report and accounts as read. Following the customary practice I shall before moving their adoption first make a few comments on the more important items in the accounts, and the general position of the Company. On the debit side of the balance sheet you will see the issued and subscribed capital now stands at $1,341,480, as against $1,144,240 of the last balance sheet. The difference is due to calls of $2.25 a share having been made during the year on the partly paid capital. The calls in areas are almost entirely due from shareholders absent in Europe, many of whom are fighting with the Allies. Since these accounts were made up, the amount outstanding has been reduced. In view of the third call due on or before to-morrow, I must take this opportunity of remarking with regard to locally resident shareholders it would be unfair on those who do pay promptly for the Board to give any great extension of time to shareholders who are late in paying. However, so far it has not been necessary to forfeit any shares for non payment of calls with the exception of 50 shares belonging to a German subject who the Board understand hurriedly left the Colony shortly before the outbreak of the war, and has not since been heard of. The item “sundry creditors” consists of fees due to the auditors and consulting engineers. The Railway Sidings. Turning to the credit side of the balance sheet, you will notice that the Company has given a charge over its property for $77,000 in favour of the Government of the Federated Malay States as security for the due performance of a contract to pay for the sidings on their completion by the Railway Construction Department. The matter regarding these sidings was explained in a circular letter issued to shareholders on 10th November, 1914. In view of the fact that the Company had not anticipated having to pay for the same, the Government agreed not to charge for the cost of constructing them until they had been fully completed and handed over; taking as their security the charge referred to above. I may mention that the sidings will be completed in a few days time, when a first installment of $20,000 will be due, to be succeeded by the whole sum to be paid off, by further installments of like amounts at three- monthly intervals. It was at first thought it might be possible to pay for our sidings out of the capital received from the last call; but, as explained in the letter to shareholders dated the 28th August last, the unavoidable delay in obtaining rail connection deferred the date at which it was hoped the mine would commence to obtain a substantial return from its coal sales. Expenditure. The expenditure during the year on development is set out in detail overleaf on the balance sheet. The depreciation allowed for is at varying rates per annum, and, except in a few instances, the majority of the plant and buildings having only been erected during the latter part of the financial year, it is not for a full twelvemonth. The item “sundry debtors,” covers amounts owing from those few consumers to whom we had, by the end of the financial year, been able to supply trial consignments of coal. The amount has since been practically all settled. Government quit rent, like insurance premia, is payable in advance, which accounts for the item under this head in the balance sheet. You will see that we have credited Development Account with our shop rents, and with the money we had collected to the 30th June from the sale of trial coal consignments. Our shop rents are comparatively high as, in order to induce shop- keepers to open we have guaranteed them both a certain amount of business, and, under certain agreed conditions, against bad debts. The Output. Any coal at present sold being derived from development work, the proceeds of such sales have been credited to development account. The Board intends to credit all coal sales to development account until the mine has attained to an output of at least 200 tons a day, for until such turn out be reached, the mine can only be considered to be still in the development stage. The coal now produced being incidental to development work, it is impossible to calculate its true production- cost per ton. I will now turn to the general position, giving you the latest information on the development of your property. The Colliery line, which joins the main Railway system at Kuang, was opened to Batu Arang Station on the 1st of this month. From Batu Arang Station to pit -head is some half a mile in length of branch line leading to our own private sidings, which also form our marshalling yard, and which comprise approximately three miles of track. These sidings are, as I have mentioned, on the point of completion, and in fact they only await the finishing off of a culvert, and the concluding touches to the erection of a weighbridge before being handed over to us. The weighbridge, I should add, is being installed at the cost of, and will remain the property of, the Railway Department. Although these sidings are being built by the Construction Department of the Railway, as the Company will eventually have to pay for them, the Board has endeavored to get them constructed as cheaply as possible by ourselves, Malayan Collieries Ltd., taking up the contract, under the Railway Department, for building them. We anticipate finishing the whole of the sidings for a less sum than the $77,000 which is the Railway Department’s estimate. The train Service. At present there is a service of only one train per day to the mine, departing from Kuala Lumpur at 8.47 in the morning and arriving at Batu Arang Station at 10.48. It leaves Batu Arang on its return journey at 12.20 reaching Kuala Lumpur at 2.45. With the increase of our output the train service will be correspondingly augmented. The Railway are very kindly doing our shunting for us at so much per truck, our own shunting locomotive not yet being ready. Before leaving the subject of the Railway line, I should like first to mention that but for the Construction by the Government of this line from Kuang to Batu Arang it would have been impossible for us to have worked our mine on anything like our present capital; we should have had to install an aerial ropeway. I believe that the Railway Department have spent on the line from Kuang to Batu Arang over one million dollars. Output Prospects. We are now turning out some 60 tons of coal a day, all of which is obtained from the South Mine, the North Mine being still in the ‘want” referred to in the Director’s report. This want would seem to be a long narrow fissure or crack in the coal bed, caused by lateral strain, which has become filled up with hard shale. From bores put down we believe we shall shortly be through the “want`’ and into coal again, when our output should reach the 100 tons a day mark. We do not, however, expect to have passed the stage of purely development work until about March next year, so that probably not until then shall we be outputting 200 tons a day. To reach a daily production of 500 tons will take us about a year from now. To hark back to the “want”, I may say that a main road in hard shale has its advantages. Consumption. Our present output is naturally insufficient except to supply a very few consumers, and we are therefore not attempting to press the sale of coal, having already far more orders on our books than we can hope to cope with for some time to come. The coal requires rather different firing from that needed for imported coals, and trials made when no one from the Colliery has been present have often proved disappointing. So far, however, I know of no cases where on a fresh trial under the supervision of our engineer and with some slight adjustment to the fireboxes being made, the coal has not proved eminently suited to its purpose. Shareholders need, I think, have no fears as to the value of their coal as fuel. Two of the largest European owned mines in the country, one in Perak and one in Selangor, are now being run exclusively on Rawang coal. The coal has also been tried for bunkering local steamers with satisfactory results. Plant. With the exception of our electric lighting set and some of the workshop machinery, the pant ordered has all arrived, and but for one of the electrical pumps, has been duly installed. It is, I may add, all working smoothly. But we shall still have to order a screening plant from Home, our present screens being only temporary ones installed until we can get some idea of what sizes of Rawang coal are best suited to the local market. Prospecting. We hope shortly to commence prospecting with the Government deep diamond drill on those parts of your concession still held under prospecting license, where the coal measures are too deep for our own diamond drill to reach. We also wish to put some bores down through the seam outcropping to the north of the Main Seam and underlying it. This North Seam must not be confused with the North Mine; both the North and South mines being in the top leaf of the upper, or what the early prospectors of the property designated the main seam. It is our intention eventually to work this north seam also, by means of vertical shafts sunk near the present mines. By so doing we hope to increase our output up to the 1,000 tons per diem mark. Labour Our Chinese labour is practically all on piecework. To commence with it was very expensive and inefficient, this being due to its inexperience in coal mining; but Mr. McCall and his staff have been gradually training up selected gangs. There is already an improvement, while we have great hopes of in time obtaining quite good miners. In order not to be entirely in the hands of and dependant on one class of labour, your Board has also been considering the advisability and feasibility of recruiting Indian coal miners from the Bengal Province. I cannot sit down before I have first said how much the thanks of the shareholders are due to Mr. McCall, the mine- manager, for his devoted and unremitting work during the year. To a task of the most arduous nature, the conversion of a patch of jungle, miles from anywhere, into a modern colliery, he has brought to bear an intelligence, skill and keenness that has now successfully solved the task only those who now visit the coal mine can realise. In this he has been ably and loyally supported by Mr. Porteous. I will now move “That the report of the directors produced, together with the statement of the Company’s accounts as at June 30, 1915 duly audited, be now received, approved and adopted” and I shall ask Mr. Grant Mackie to second the motion; but before putting it to the meeting I shall be glad to answer to the best of my ability any questions that any share holder may like to put. Prices and Quality. Mr. Loke Chow Thye asked at what price the coal was being sold. The chairman replied that it was sold at $5 a ton free on rail at Batu Arang That he thought worked out considerably cheaper than any local produce. They were selling the small stuff as slacks at $3 a ton. Mr. Weir enquired as to the keeping qualities of the coal. The Chairman said it kept very well under cover, but perhaps decrepitation was slightly more than with most coals when it was exposed to sun and rain. Mr. McCall remarked that all coals ought to be kept under cover. The Admiralty, in fact, kept theirs under water. Mr. A. Grant Mackie seconded the resolution, which was carried. Directors. Mr. Weir proposed and Mr. Porteous seconded the re-election of Mr. A. Grant Mackie as a director. Carried. Mr. C. Kam Chuan proposed and Mr. Porteous seconded the re election of Mr. A. D. Allan as a director. Carried. Auditors Messrs. F. W.Barker and Company were re elected as auditors, at a fee of $750 for the year, on the proposition of Mr. Weir, seconded by Mr. Loke Chow Kit. The director’s remuneration, on the proposition of Mr. Weir, seconded by Mr. Loke Chow Thye was fixed at $3,000, as previously. Vote of Thanks Mr. Weir proposed a vote of thanks be passed to Mr. McCall and the staff for their good work during the year. Mr. Grant Mackie said he had the greatest pleasure in seconding, as he knew the good work Mr. McCall had done. The resolution was carried. The meeting concluded with a vote of thanks to the Chairman.
The Straits Times, 17 November 1915, Page 8
It was stated at the Federal Council, Kuala Lumpur, yesterday, that the railway connection to the Malayan Collieries, Limited, is practically completed. The opening up and equipment of the mine is in an advanced stage, and before the end of the year a steady output of coal may be expected. Further trials of the coal from this colliery have demonstrated its suitability for a variety of uses, and it is understood that experiments in briquetting are being undertaken.
F.M.S. Annual Department Report 1915, page 5 ( Also reproduced in The Straits Echo Mail Edition. No 29, Vol 14, July 19 1916, p. 1,225 under the heading F.M.S. Coal.)
Coal. 19. (i) The railway connection was opened for traffic on 1st September, 1915, and a private siding has been put in for the service of Malayan Collieries. (ii) The opening up of the mine has been vigorously and capably carried out and its equipment is well forward, the Company having transported a considerable quantity of heavy plant by road (three miles of which was a jungle track) before the railway became available. (iii) The producing stage may be said to have been reached in September, and by the end of the year under review 11, 523 tons of coal had been raised exclusive of small quantities which were used for experimental purposes. (iv) Experiments in briquetting are in progress under the supervision of Professor Bone in England and it is hoped that a satisfactory result will be attained. (v) Among other consumers, two large mines have taken this coal into use, a considerable saving in working costs having resulted, and a contract has been entered into for part supply to the Federated States Railways. (vi) The power plant at the mine comprises two Babcock and Wilcox boilers fitted with stepped grates supplying steam to the steam-winding plant and to a steam electric power station. (vii) Two inclined shafts have been sunk to a distance (on the incline) of 846 feet and 800 feet, respectively, together with a ventilating shaft and airways, operated by an electrically driven fan. (viii) There can be little doubt that coal from this Colliery where used in suitable plant will exercise an important influence on mining and other costs and it is hoped will tend to reduce consumption of firewood. (ix) This mine would have been in a much more advanced stage but for delays that occurred in connection with the delivery of plant.
Letter from J.A. Russell, Manager, Malayan Collieries 14th March 1916
(Possibly to E. W. Kenny. the Senior Warden of Mines) Enclosure (A2) Sir, With reference to the interview this morning between Messrs J. A. Russell and McCall and yourself, we now have the honour formally to request that the Government will kindly use its influence to obtain for us through the Government of India a supply of indentured Indian underground coal- mining labour. Our reason for making a such a request is due to our present inability to obtain locally a sufficient underground labour force, and to the urgent necessity for our at once dong so. Mining- labour is now very scarce in the F.M.S., and rates are very high: we are, however, willing temporarily to pay Chinese miners piece work rates which would enable them to earn from $1.20 to $1.50 a day if we could only obtain the men: but even at these rates which would mean a loss on coal sold at $5/- per ton or under, we still cannot get a permanent efficient underground labour force. It is not so much a question of wages as it is one of that apparently, when employment is plentiful local miners will not work in a coal mine. The class of miner we have to employ underground is the “ lombong-siam” tin-miner, and these men in a Chinese–owned tin mine, once they are below the surface are practically free of supervision. An advance of $5 per man is being made to attract labour, but 30% of the men who obtain such an advance abscond within about the first week of arriving; the remainder leave so soon as they have been trained and have earned a little money. We are obliged to make this advance, as it is now being made by most tin-mine owners, labour being extremely scarce. The reason labour is scarce in the tin-mines is said to be owing to the small number of Chinese immigrants now entering the State, and to the high wages for light labour being paid on rubber plantations. During February some 300 men have passed through our hands: they stayed a week or less and left. Even those who do remain seldom stay with us for a longer period than three months. Our surface men, on the other hand, have been with us since the beginning, and their rates of pay being less than that of the underground men shows it is not that our manager is unable to handle labour, but merely that the underground men dislike the nature of the work when softer less restricted employment is abundantly to be had. A man when he first comes is for almost a month very inefficient if not useless. Although an underground tin-miner, he is untrained to coal mining and has for the first fortnight to be instructed in the work; while during the third week he is usually recovering from stiffness and sore palms due to having employed different muscles from those he has been accustomed to use. From what we have said it will be seen how serious a matter it is to us when over half our labour force disappears after each pay-day, and we have to start all over again recruiting and training local labour. Our present out-put ought to be over 300 tons a day, and it actually touched that figure just before last pay-day. After pay day, however some 250 underground miners at once left us, and for the last few days our output has not been not more than about 70 tons per diem. Before leaving this subject we should explain that our men’s working hours are not long, being two shifts of four hours each; whilst the work, for those trained to coal mining, is not really hard. For some months now we have been making various alterations and experiments, but have been forced to the conclusion that not only must we put in coal-cutting machinery, but must also employ a different class of labour. We have sent inquiries Home and to America for coal-cutting machines, air- compressors and hammer-drills, but it will be about a year before we can get them designed to suit our requirements, made, shipped out and erected, and even then in themselves they will be insufficient. With regard to labour we can obtain skilled coal-mining coolies from two sources: North China and Calcutta. We have sent a man to North China to make investigations there, but it will probably be months before we can obtain any labour from so distant a centre, and we are advised that the whole subject bristles with difficulties, no natives from North China ever coming to F.M.S., there being no direct boats from North China, and it being doubtful whether, having of course obtained advances, most of them would not abscond at Shanghai and Hongkong on their way down. Our original intention was, however, to proceed with the matter and eventually to obtain a supply of skilled coal miners from Tientsin; but the sudden local demand for labour has made the matter now one, no longer of reducing costs so that we can produce at under $5 a per, but even of being able to produce any coal at any practicable cost whatsoever. India would seem to be the only centre, where, if we can obtain the assistance of the Indian Government, we would at once secure, and on indentures, a supply of skilled coal-mining underground labour. Although in asking, as we now are, our Government to obtain through the Indian, and with all possible expedition, the men we require, we are doing so primarily in the interests of the Colliery, at the same time the question is one of the greatest importance and urgency to the Government and people of the F.M.S., as well as even in some measure to the Colony. There is practically but little coal coming into the country, so that unless we produce it at Rawang in sufficient quantities, a great proportion of local mines, works (ice, cement, etc.) the railway, the smelters and shipping must either burn wood so far as they can or close down to the extent that they cannot, or close down entirely. In September for, instance, we are due to supply the F.M.S. Railway with at least 170 tons of coal a day, and yet, if the demand in the F.M.S. for labour continues to increase and we do not at once get in outside men, we may already by then have to close down, reducing the railway to the burning of firewood. Or, to take another instance, the Eastern Shipping Co. are relying upon our continuing to supply them with coal, which as we cannot supply them with enough they are mixing with firewood, to keep many of their steamers running. With our output down to 70 tons a day we cannot continue to supply them even with the small amount that we are doing, and we understand that they may have to take off, perhaps, their Tongkah vessel which is at present engaged in bring ore from Tungkah to Penang for smelting. Our output should not only at the present moment be 300 instead of 70 tons a day, but in another couple of months’ time it should by rights be as much as 500 and eventually from 800 to 1,000 tons day: but without a change of labour, or unless the condition of the local labour market alter, we shall probably continue to turn out only between 100 to 200 tons a day with probably a daily average of, say, 150 tons. We understand that owing to the shortage of tonnage having stopped most of the Indian coal exports, coal mining labour is just at present extremely plentiful in Bengal, and we venture to think that if the F.M.S. were to represent to the Indian Government that the matter was one, indirectly, of almost Imperial moment- for by producing our own coal we shall be releasing a certain amount of steamer tonnage- the Indian Government would very probably engage for us and send us down 250 Indian coal–hewers on indentures. If necessary, and the Indian Government desired it we could send someone to Calcutta to assist in engaging the men or to sign the indentures. We should be prepared to pay what ever rates of pay the Indian Government considered fair, although of course we do not wish to pay anything like the exorbitant rates that we now have to give. We have, etc., Sd. J. A. Russell, Manager, Malayan Collieries, Ltd.
Document in the National Archives of Malaysia
Letter from E. W. Kenny. the Senior Warden of Mines, Federated Malay States, Kuala Lumpur, to the Hon E. G. Broadrick British Resident. 15th March 1916
Dear Broadrick, I am writing to you direct as the subject of the enclosed letter from the Malayan Collieries is urgent. 2. It is most important that the production of coal in the Federated Malay States should be raised to, as nearly as possible, meet the local demand, owing to stoppage of imports of coal. 3. I calculate that to meet the Federated Malay States demand for coal, the output from the Rawang Colliery should be about 13,000 tons per moth, taking into account the continued use of wood fuel. 4. I am aware there has been considerable difficulty with the underground labour at the Colliery and that such as has been obtainable has not been efficient. 5. The general labour supply is getting short and as emigration from China has dropped below what is was before the War it will probably get more so: in January 4,305 adult male Chinese entered the Federated Malay Sates via Ports and 3,103 left the same way. 6. Several Mine owners have complained to me about mining labour drifting to Rubber Estates; but no estimate of the numbers can be obtained. 7. I would recommend that assistance be given towards obtaining labour from India. Yours faithfully, E.W. Kenny
Document in the National Archives of Malaysia
Letter to Senior Warden of Mines, F.M.S. Kuala Lumpur from J. A. Russell, Agents and Secretaries for Malayan Collieries. Ltd.
2047/1916 5th April 1916, Sir, We have the honour to acknowledge the receipt of you letter of the 23rd instant, numbered 5 in 205/1916, on the question of our obtaining coal miners from India. We note that the Government advocates raising wages and advancing the price of coal, and in view of this would enquire whether it would be prepared to release us from our contract to supply the F.M.S. Railway as from September next with round coal at $5/- a ton? If we have no other remedy for our labour difficulties than that of raising wages, then at $5/- a ton for round coal we shall be selling at lower than cost, for out of this $5/- we have to pay a Government royalty of 25 cents, so that actually we only get $4.75, while for every ton of round coal raised our present labour produces a ton of slack which is either unsaleable or only saleable at a reduced price. So far it has been possible for us to dispose of practically all slack, and at fairly good prices, but we fear we shall not be able to continue to do so with the bigger production caused by the Railway contract, the number of places which can burn slack being strictly limited. We have, therefore, to deduct the probably loss on slack from the $4.75 we are to receive. Supposing we cannot sell any extra slack, our price obtained from the Government would then work out at $2.37 and half per ton, but we are relying on being able to dispose, at varying rates, of a good deal of it, and have therefore estimated that the figure we shall be obtaining from the Government as actually worth $3.50 a ton. We are now paying a hewing rate of from $1.10 and a half to $1.16 per ton, and if we are as the Government suggests to raise this rate, then in order in effect much radical and permanent difference we must increase it to one of $1.50 a ton, which figure will leave us only some $2/- out of which to pay all our expenses below and above ground, such as hauling, timbering, pumping, development work, dead work through faults and wants, falls and fires and other frequent calamities, upkeep of underground roads, boring, stores, overseers, surface hands, European supervision, upkeep of plant and buildings, clerical labour and Kuala Lumpur office expenses, insurance and finally, depreciation; which last is a surprising heavy item. It may be asked why we tendered a price of $5/- a ton if we are now unable to produce at such a figure? There were three considerations influencing us at the time of tendering. Firstly, when we commenced to produce having, in order to introduce our coal, made a small contract with a certain mine to supply them for a year with coal at a rate of $5/- per ton, our solicitors advised us that perhaps by terms of our lease it might be held that we are legally bound to supply the Railway’s requirements at a corresponding rate. Secondly, we genuinely wished, and do still wish, to place no difficulties in the way of the Railway Administration who have of late shown us every courtesy and helpfulness; nor were we unmindful of what we owe Government for having constructed for us a branch line from Kuang to the Collieries. And, thirdly, our tender had to be sent in some 6 months ago, at a time when the labour question was not acute, and when we had every hope of being able to retain, certainly a large per centage of, the coolies and of training them economically to produce coal. Since that date the rapid rise of price in tin and rubber has depleted the labour market, and it is quite evident that every subsequent rise in the price of these commodities is going to be visited upon us with a like adverse effect. But even if we don’t not raise our hewing rate to this $1.50 a ton- which would probably be a rate unique amongst coal mines- we still do not think that we should overcome our difficulty which is not entirely one of pay but more of the class of miner working for us. To show the more clearly that the question for us is not one mainly of hewing rates, we might instance that although our daily output reached 300 tons, after pay-day more than half our hewers left us and it promptly dropped to 70 tons. We then got in, without any great difficulty and on identically the same pay rates, fresh underground miners which we are now engaged in training to be hewers: and as these men are becoming more skilful so our output is slowly creeping back to the old figure, and, after a fortnight, is once more in the neighbourhood of 200 tons. We shall no doubt just be getting up to the 300 tons mark when another pay-day, or a new tin min opening in our vicinity, will again leave us with one half of our hewing staff. The only suitable type of labour we can engage locally for the kind of work we require done is the Chinese underground tin miner, a class working in the underground tin mines on the share principle, and therefore unruly, lazy and imbued with the spirit of gambling. The prospect of making as an ordinary hewer in a coal mine by hard work as much as $2/- a day does not appeal to this class, and so soon as they hear of some new shafting tin- mine being opened and requiring labour, they are all off, allured away by the prospect of more congenial work, no restraints or supervision to speak of, and at least their food and pocket money with the added possibility of perhaps making dividends anything from a few cents to three or more dollars a day. To obtain these last mentioned profits they do not, of course, have to put up any capital. It is really this gambling possibility of winning dividends which is the true attraction to these men of the underground tin-mine. Whatever wage we may pay to our underground labour, it will thus, and for so long as we employ this class of labour will always be thus, continually leaving us. This labour drawback occurs also in the tin- mine itself, but there, not only can the towkay minimise it when he has any dividends of the coolies in hand, but he is also not so badly affected by labour desertions for he can almost at once engage other and equally skilful miners to replace those leaving. The same advantage of replacement is not open to us, for it takes us, after we have recruited them, about a month still further to train our labour in order for it to be of much use in skillfully producing coal. In some tens years time, when more or less the whole of the Chinese underground mining community shall have passed through our hands, we may be in a somewhat happier position as that the towkay of underground tin -mines now enjoys. Our hewers are quite aware of our touching dependence upon them for an uninterrupted output, and will, and often do, strike on the slightest pretext. What we, therefore, want are miners more skilled to the working of coal, and men who have not become accustomed to this gambling, unrestrained life of the underground tin -miner. And we must not only endeavour to get men who themselves have never worked in tin- mines, but also those who have even fewer relations or fellow provincials working therein. Without a doubt we could in time solve ourselves the problem of obtaining a different nationality, or dialect, of satisfactory hewers; but, unaided, it will take us a longer time that it need or should do, while before it is done we fear we shall continue to have periods of poor output with many stoppages; and we had therefore thought that the Government might perhaps be disposed, even in its own interests, to give us the sympathetic aid which would mean so much to us. If, however, it is impossible for us to obtain indentured hewers from the Bengal coalfields, perhaps the Government, through the Indian Mines Department, could assist us to obtain unindentured labour from the same source? We should have to take the risk of these men absconding, but if the men were selected and engaged for us by a Government department we think that the danger would be greatly minimised. For we ourselves to endeavour without Government assistance to get these men would be along and tedious business, for we should probably have to be contented to start with by being able to engage just one or two better class men who in the course of time we should hope would send to Bengal for their relatives; it might in this ‘snow-ball’ way take us years before we secured a full complement of Indian hewers. We earnestly hope that even without recruitment from India, the situation at the Colliery may improve, (we fully intend installing hammer drills, coal cutters and other labour saving machines as son as we possibly can); but it would be gross folly not to be prepared for a continuance of the present conditions, or even for their exacerbescence, and therefore not to endeavour while there is still time to forestall or to diminish the harmful results of such alarming possibilities. I have the honour to be, Sir, Your obedient servants, MALAYAN COLLIERIES LTD, (Sd.) J. A. Russell & Cc Agents and Secretaries.
Document in the National Archives of Malaysia
Letter: from the Office of the Senior Warden of Mines F.M.S. Kuala Lumpur, to The Secretary to Resident, Selangor, Kuala Lumpur.
No. 7 in 205/16 8th April 1916 Subject. Forwards letter from the Agents and Secretaries of Malayan Collieries Ltd. asking for assistance of the Government in obtaining unindentured labour from Indian Collieries. Sir, I have the honour to forward a copy of a letter which I have received from the Agents and Secretaries of Malayan Collieries, Limited. Previous correspondence on this subject was between the Senior Warden and the Honourable British Resident direct and I do not know what your office number of the correspondence is. 2. It seems that they do not want to raise the price of their coal although they ask whether the Government would be prepared to alter the prices in the existing Contract with the Railway Department, nor do they wish to raise wages. 3. They appear to seek a solution of their labour trouble by asking the assistance of the Government in obtaining unindentured labour from the Indian Collieries. I think it most important that the colliery should have as large a source of labour to draw on as possible especially labour accustomed to winning coal, for the unskilled hewer undoubtedly wastes a large proportion of the coal and I would therefore recommend that this Government should give them all the assistance possible in the matter. I have the honour to be, Sir, Your obedient servant, G. D. Lucas, Acting Senior Warden of Mines, F.M.S.
Document in the National Archives of Malaysia 2047/416 0.
The Singapore Free Press and Mercantile Advertiser , 19 July 1916, Page 6 and The Straits Times, 18 July 1916, Page 6 .From the Malay Mail.
MALAYAN COLLIERIES. On the invitation of the Chairman (Mr. J. A. Russell) and Directors of Malayan Collieries, Ltd., between fifty and sixty members of the F.M.S. Chamber of Mines and friends visited the collieries at Batu Arang on Sunday. A special train left Kuala Lumpur a 8.25 a.m. and arrived at Batu Arang at 9.25 .The manager and staff all the mine met the train, which was run on to the mine property. Parties were then formed under the European members of the mine staff, who conducted their visitors underground. On returning to the surface they were conducted round the buildings, machine shops, power house, etc., returning to the train at 11.45 am. Breakfast and refreshments were provided on journey, the party arriving back at Kuala Lumpur at about 1pm . (M.M.)
The Straits Times, 15 August 1916, Page 7,The Singapore Free Press and Mercantile Advertiser , 16 August 1916, Page 7
Malayan Collieries. INITIAL INTEREST-DIVIDEND DECLARED. . Report of Directors for Past Year. The following is the report of the directors of Malayan Collieries, Limited, for the year ended June 30 last. It is signed by Messrs. J. A. Russell and Co., the managing agents and secretaries. The directors have pleasure in submitting their third annual report and statement of accounts for the year ended June 30, 1916. On October 1 a third call of $1 per share was made on ordinary shares thus making these $9.25 paid up. During the year application was made for the conversion of a further 200 acres to mining lease (making a total area under lease of approximately 1.747 acres) whilst the prospecting license was renewed over the balance of the concession. Coal sales (Chart) from July 1915 to June 1916 totalling 50,042 tons 19cwt. Extra roads for the company'’ diamond drill having arrived, some deeper prospecting was done with satisfactory results. The Government line to Bukit Arang Station, situated upon the Company’ s property, was opened on Sept 1, 1915. The Company’s siding was completed and opened during November and duly paid for, and the charge over the company’s property in favour of the Government (being security for the payment of the same) was discharged. The want of telephonic connection between Kuala Lumpur and the Colliery continues to be felt a great drawback. It is hoped that the Government will shortly see its way to proceed with the proposed extension of the Kuala Lumpur telephone system to Rawang. At one time during the year considerable trouble was experienced with the mine labour, and Mr. McCall made a visit to Bengal to investigate the possibility of employing Indian coal miners. The chairman whilst in Japan also made inquiries regarding Japanese labour. Nothing definite has yet come of these various investigations, matters being still in train, but the knowledge that they were and are being made has had an excellent effect upon the present labour which towards the end of the company’s year showed marked improvement. Professor W. A. Bone, D. Sc. F.R.S. professor of Chemical technology (Fuel) Imperial college of Science and Technology, London, was engaged throughout the year on experimental research work into the nature and properties of the coal, especially with a view to its possibilities for long temperature distillation and briquetting. 0. 0. Payment and Dividend. Interest payable on ordinary shares.- In accordance with the terms of an agreement dated June 13, 1913, and made between the vendor of the one part and the company of the other part, no dividend shall be payable on vendors’ shares until those issued to the public have first received interest, upon the amount for the time being paid up, at the rate of 6 per cent per annum for those years described as “ the period of development”. The “period of development” is defined as commencing from the date of formation of the company and terminating with that account day on which the total profits of the company shall first have amounted to a sum sufficient to pay a dividend of 12 per cent on the amount paid up upon the ordinary shares. With the account day of June 30, 1916, the specified “period of development” therefore ends, and after payment of interest on the ordinary shares both classes of shares will rank equally for dividends in proportion to the amount credited as paid up upon them. It is now proposed to begin wiping off the arrears of interest due, by declaring an initial interest dividend of 6 per cent. for the company’s first year, 1913-14, to be calculated upon the amount paid up upon these ordinary shares during the above mentioned first year. As there is still the sum of 75 per cent per share due to the company from the holders of ordinary shares, except in those cases where shareholders have paid up the whole of their calls in advance, it is proposed that this interest-dividend shall not be paid in cash but be credited to the account of such ordinary shareholders in reduction of the call- liability attached to their partly –paid shares. 0. The profits for the year amount to $99,941.14. . Which the directors recommend should be dealt with as follows:- In payment of a dividend of 6 per cent upon 88,150 ordinary shares credited as $6 paid (being interest at 6 per cent per annum for the company’s year 1913/14 as provided for by agreement dated June 13, 1913)… $31,734.00 0. To be written off mine development..$25,000.00 To be written off formation expenses…$8,235,00 0. Balance to be carried forward to the next year’s accounts…$34,972.14 0. The directors to retire are Towkay Loke Yew, C.M.G., and Mr. Robert Peebles Brash, who being eligible, offer themselves re-election. Auditors, - Messrs. Barker and Co. retire and offer themselves for re-appointment.
The Straits Times, 16 August 1916, Page 8
In the report of the directors of Malayan Collieries, Ltd., which we published yesterday, it was stated that “ there is still the sum of 75 per cent, per share doe to the company from the holders of ordinary shares, etc.” This should have been 75 cents per share.
The Malay Mail, Monday August 21, 1916. The Straits Times, 23 August 1916, Page 10 and The Singapore Free Press and Mercantile Advertiser 23 August 1916, Page 12 (edited version)
Malayan Collieries Annual General Meeting. Future Prospects. The third annual general meeting of shareholders in Malayan Collieries, Ltd., was held at the registered offices of the Company, 8 10, Loke Yew Buildings, Kuala Lumpur, on Saturday at 11 a.m. Mr. J. A. Russell (Chairman of Directors) presided. Mr. P.P. Spradbery for the secretaries read the notice convening the meeting, and also the minutes of the last meeting which were confirmed. The annual statement of accounts and balance sheet and the report of the directors and auditors were submitted to the meeting. Chairman’s Speech. The Chairman, in moving their adoption, said: - Gentlemen,- 0. The report and accounts have been in your hands for the specified period, and I presume you will take them as read. Following my former practice I shall before moving their adoption first make a few comments on some of the more important items contained in the balance sheet. Taking the debit side first, you will see that the issued and subscribed capital now stands at $1,424,647.50 as against $1,341,480 in the last balance sheet. The difference is principally due to a call of $1 a share having been made during the year on the partly paid capital. The calls in arrears are due from shareholders at the Front. The item “ sundry creditors” consists of wages, royalty and freight still due on the June output. The profit I shall discuss when we come to the profit and loss account. Turning to the credit side you will see that the expenditure on mine development to the end of the financial year amounted to $183,711.97: but this amount is greater by a sum of $25,000 than it would have been had your directors been able to charge all development work to revenue. A detailed statement of the development account for last year will be found on the end page, and to this I shall presently refer. You will observe that our railway siding cost us $40,780.39 as against the official estimate of $77,000, the difference being due to our having taken up a contract under the Railway Construction Department and by doing the work ourselves effecting a considerable saving. As contractors under the Railway Construction Department we drew from this Department advances for the work, repaying the Government in installments upon the conclusion of the contract for the total cost of construction. Interest on the loan was paid by the Company to the Government at the rate of 6 per cent. The charge for $77,000 which the Government had taken upon our property was discharged with the payment of the final installment. The Government aid so granted was of the greatest assistance to the Company, for it was given at a time when owing to the railway not being completed the mine could produce no revenue, and yet when the financial crisis prevailing would have considerably embarrassed shareholders in meeting any further call. Your Directors were and still are of the opinion that the Government had promised the original concessionaires to build them or their successors a line to the pit head, but his Excellency the High Commissioner having decided that this was a wrong construction to put upon the promise, although your board may not agree with His Excellency’s views, nevertheless those views being what they are your Board can only be exceedingly grateful to him and the F.M.S. Government for the financial accommodation that the Government compensatorily rendered the Company. On reading the item “motor cars” you may strongly think that the Company posses more than one. This is not so; it only owns the one the mine- manager uses; but during the year it being found possible to sell the old one at a profit and buy a new one this was accordingly done. Our stock of mine stores in hand may seem somewhat large, but mining requisites are at present so difficult to obtain that not only do we think it wise to carry a good stock of them, but we are, as opportunities occur, always increasing our stock. The item, “coal sales” under the heading “sundry debtors” consists almost entirely of June sales, our custom being to render bills monthly. The second subsidiary item headed “sundry” is for rents, freight and commission, an account I shall explain later. From the item “cash at bank and in hand” it will be seen that there is a sum of $25,000 on fixed deposit. It is the practice of the Company to put on fixed deposit any available funds not immediately required, it being always of course, permissible for the deposit to be broken. The cash in London is for plant on order. 0. I now turn to the profit and loss account, which is for the latter six months only, the balance of expenditure for the first half of the year being all debited against capital. On the debit side of the profit and loss account the largest item is for contractors’ wages, as much of the mining as possible being done on contract rates. The Government royalty is a royalty of 25 cents a ton payable to the Government on all coal, whether lump coal or screenings, passing the Company’s boundaries. The Company has protested against having to pay the full rate royalty on screenings, but without obtaining relief. If you will now glance at the debit side, you will notice that besides the main item of coal sales the Company has sold its surplus production of bricks and a small quantity of firewood. The firewood was obtained from timber felled in the course of clearing sites, timber which the mine could not immediately use and which would have rotted if allowed to lie. You will also see an item” rents, freights and commission” to which I have previously referred and which is the aggregate of various odd earnings of the Company, some of which amount in themselves to sums of but a few cents. The item includes a profit we have made on purchasing provisions wholesale, on shop rents, on our locomotive hauling for others, on repairs for others done in our workshop. You will see that we waste no opportunity for economy here or a small profit there; it is the secret of successful organisation. 0. Last Years Development. 0. I will now for a moment refer you to the detailed statement of last year’s development account of which I have already made mention. You will find it printed on the last page and from it you will observe that the gross total expenditure for the year under review on this account was $122,648.36 but that against this has to be placed a sum of $56.921.64 being the Company’s receipts during the period of development. Your Directors, recognising the value of sound finance, would have preferred to have reduced development account by charging all development expenditure after the 1st January to revenue, thus reducing the profit, which, if you now refer back to the profit and loss accounts, you will see is put at the sum of $99,941.14. The amount of extra expenditure which they would have liked to have charged to revenue is about $25,000. As development work will always be in progress, it is only proper that it should in future, be charged against revenue and not to capital, for it is in practice, whatever it may be in theory, a legitimate recurrent working expense. In this case, however your Directors were legally advised that they had no option but to debit it to capital, the Company being bound by an agreement with the vendors regarding the payment of dividends on vendor shares, which dividends may not be paid until such date ad the net profits have reached a certain specified total. If this $25,000 had been charged to capital the date when that total was reached would have been deferred for another 6 months, with the consequent diversion from profits in which the vendor shares may participate of an additional sum equal to the payment of a further 6 months’ interest on ordinary shares. This would have been a legal infringement of vendor shareholders’ rights, and as such have laid the Company open to being sued by the original holders, or any subsequent purchasers, of vendors shares. Development account is now closeable, so that this predicament will not again arise, and all future deadwork incidental to mining may, if thought advisable, be charged to revenue. In the meantime your Directors propose to adjust the present position by appropriating from profits the sum of $25,000 in reduction of development account. This of course will not affect the holders of vendor shares, who are only concerned in the date when the total undivided profits have reached the sum specified by the Agreement, that is to say a sum equal to the payment of a dividend of 12 per cent. on the amount paid up on the ordinary shares, because at that date interest on ordinary shares ceases, and vendor shares rank for the future, in the matter of dividends, equally with the ordinary shares, subject of course to the first charge upon profits of an amount sufficient to pay the arrears of interest due upon the ordinary shares to the date in question. By looking at the Director’s report you will see that besides writing off $25,000 from mine development, your Directors also recommend that a sum of $8,235 be appropriated in writing off formation expenses, leaving $66,706.14, and that this balance $31, 743 be absorbed in the payment of a first installment of the arrears of interest- dividend due on the ordinary shares, and the remainder amounting to $34,972.14 be carried forward to the current year’s accounts. The agreed upon period of development has taken three years to complete, so that after paying for the first year of development there is still another two years’ interest to be paid before regular dividends may be declared. It would not be financially safe for the Company at this juncture to wipe off any greater sum than the first year’s arrears of interest, for the Company cannot carry on with a smaller sum of working capital in the finance of its coal sales than the amount it is now proposed to carry forward. The Company is still faced with a certain amount of capital expenditure for new plant, and it will be necessary to call up the balance of 75 cents a share still due on ordinary or partly- paid shares. As it will cause shareholders a certain amount of inconvenience first to receive an interest dividend and then to have to pay it back again in the form of a call, it was proposed in the Directors’ report that this interest dividend should not be paid in cash, but be credited to the holders of ordinary shares in reduction of the liability attached to some of those shares. Upon going into the matter more closely, however, it seems a moot point whether the Company quite has the right to do so, while the London Stock Exchange, for a reason that is not very clear, do not recommend the practice. At the risk, therefore, of causing ordinary shareholders some little extra trouble, and of disappointing those few of them who had expressed a decided wish that the Company would be able to place dividends against calls, your directors have decided not to go on with the suggestion, but recommend instead that the payment of the dividend be in cash. Instead of the former arrangement, I have now therefore to announce that a final call of 75 cents per share upon the ordinary shares will be made, which call will probably be payable sometime in October. The usual notices of call giving the exact date when due will be posted to shareholders in due course. 0. Labour Investigations. 0. Glancing now at the Director’s report you will see that reference is made to certain labour investigations the Company made in India and Japan, and I wish to take this opportunity of thanking with your permission and on behalf of the Government for the assistance they kindly rendered to the Company in connection with inquiries our mine manager made in the former country. Despite however, this aid from the local Government, we were unable to achieve any successful results in India, and I can hold out but little hope of our being more successful in the same country within at least the near future. All the mining labour that India can at present spare is being sent to Tavoy, and the Indian Government is not inclined to allow mine labour to be recruited for the F.M.S. You will also note in the Directors’ report that throughout the year we have had the best Home man obtainable engaged upon research work in connection with the suitabilities of our coal for distillation and briquetting purposes. We have sustained disappointments and encountered many difficulties over this research work, our coal being rather unique in many of its properties, and it is this that has caused the work of the investigation to be so protracted and still not finished; but we believe that we are now within measurable distance of success. Professor Bone will not commit himself to any definite report until the conclusion of his investigations, but in a response to an enquiry from this end for information to place before you at this meeting, I have just received a cable from London Agent, Mr. F. J. B. Dykes, which reads as follows: “Bone states as the result of laboratory investigations Rawang coal during past year he is of the opinion prospects briquetting commercially sufficiently favourable justify large scale test now being arranged also large scale test low temperature distillation coal likely to yield important data from point of view of determining best conditions obtain valuable by- products from coal and he anticipates good results.” 0. A description of the work done at the mine during the year under review will be found in the mine manager’s report, and to it there is very little that I can add. The intrusion of shale in the North Mine has taken us a whole year to get through. This “want” has been an unseen calamity seriously adding to the cost of development and reducing our coal output, but we are once again in good coal, which is all the more fortunate as the earthquake which was experienced about a fortnight ago started the roof “working” over a short distance of the main level of the South Mine, and has thus temporarily interrupted communications with the inside workings. This weighting of the roof is a common occurrence in mining and will only curtail the output for about 3 weeks, by which time communications should be re-established. The arrival of the extra rods for our diamond boring set has enable us to do a considerable amount of prospecting work during the whole year. The results on the whole have been satisfactory. We are opening up an area on the North Seam outcrop with the object of practically testing this second seam of ours and the quality of its coal. We may congratulate ourselves on having been able to purchase from the Railway Department a locomotive for use on our siding, which has resulted in greatly increased efficiency and economy. We have to thank the Railway Administration for letting us have this locomotive at a reasonable figure. It would have been impossible to have obtained one from Home during the war. You may be interested to learn that we run the locomotive on what we call ‘smalls”, that is to say on our screenings. We have now a service between Kuala Lumpur and the Colliery of three up trains and three down trains daily. From the first of next month we have contracted to supply the coal requirements of the F.M.S. Railways. 0. A question shareholders may wish to ask is what is our mining cost per ton of coal; but this is a query that I shall not be able to answer, for development work and the actually winning of the coal have been hitherto too interlocked for us to be able to work out ay reliable figures. 0. Future Prospects. 0. Another point on which I am sure shareholders are anxious for information is that regarding our future prospects. First as to tonnage. Our output was in the neighbourhood of 500 tons a day when the earthquake already referred to occurred, temporarily diminishing production. Difficulties such as the “want” in the North Mine, and now this trouble in the South Mine, are always liable to occur, and in fact difficulties of some sort or another always will be occurring, but as the mine gets more developed and the number of working places increase, the effect of such troubles will not be so felt, for they will not make so serious a difference to our total output. You will remember that our plant and workings are designed for an output of 500 tons a day, but I am now able to tell you that it will deal with an output of almost a thousand tons a day, and, providing we have the sale, we shall be turning out this amount early in 1917. By no very great additions to our plant and workings we shall be able to output a much greater tonnage than 1,000 tons a day; but it is at present extremely doubtful whether we shall be able to find a local sale for even 1,000 tons a day let alone any greater amount, the local fuel requirements being limited. This is a pity, for after the war competition from Indian and Japanese coals will be most keen. The price of firewood too, will always be a serious factor for us having a competitive influence absent in most other coal producing countries. Since our coal entered into the market the price of mining firewood in Selangor has as a consequence already been markedly reduced, and it has even on some mines we have formerly captured cut us out again. We shall have, therefore, to rely upon a large output with resultant low working costs per ton, and a corresponding cheap price to the public, in order to be able to compete with firewood and these foreign more highly calorific fuels. The really wretched smallness of the total local fuel consumption is the unhappiest feature of an otherwise fairly favourable future, and it is to obtain an output comparable with coal mines in other parts of the world, and therefore of working coals that can compete, that your Directors are devoting so much time and money to research work at Home in connection with briquetting and distillation. It is recognized that for a large production we must look to developing an export trade. I myself am leaving within ten days’ time on flying visit to London principally in connection with the distillation experiments to which I have referred, and of finding a market for disposing of the by products to be obtained. To show you how thoroughly your Directors have gone into the matter of increasing the coal demand, they have had experiments made at Home on suction-gas producers, pressure- gas producers and cooking ranges. It has been proved that the coal will do admirably for the two latter, while it is only a question of perfecting means for dealing with the tar that is withholding equally successful results being obtained in suction-gas plants. Should any enterprising group wish to light Ipoh electrically and to supply power to the neighbourhood, or do the same for any other F.M.S. centre, they could not do better than to erect a Mond or other producer gas plant and to burn Rawang “smalls”. Their tar and ammonium sulphate recovery would pay to a great extent for the cost of the “smalls”, which for a large and long contract the Company would probably be in a position to offer to sell on especially attractive terms. I feel confident that no water or oil power scheme could compete with the one I have above suggested both for cheapness per unit and reliability. 0. With regard to our requirements for the current year, we have still a good deal of expenditure ahead of us. We shall want extra boilers, a large and more powerful fan installation, punching machines and probably a screening plant. The punching machines will be run by compressed air, and it is hoped by their use to increase and cheapen production, and to decrease the percentage of smalls. After full consideration your management have decided not to install coal cutters yet awhile, our seams and the nature of our coal not being quite suitable to their employment, but we shall later on require to use some form of underground locomotives for haulage in the main levels. In installing more plant than is usual in Indian coal mines, your management’s idea is not only to have an efficiently run modern and economic mine, but also render the Company less dependent upon a capricious labour. We shall have to erect during the current year still another bungalow, while we are also considering building a police station and quarters. We have still and shall always have a lot of development work to do, and we wish never to have less than from eighteen months to two years work in view. Towards the end of the financial year we shall probably require more European assistance at the mine. 0. Reducing Price of Product. 0. Taking it all round, our prospects are bright, and I think our future is assured- our ample supply of good mining timber at pit mouth is a great asset – but I would ask shareholders to be patient in the matter of dividends, for we have many difficulties yet to negotiate. The worst, that of consumption, I have already touched upon; and in this connection shareholders must, as I have said, remember that with each reduction in working costs it will be the Company’s policy to reduce the price of coal to the public, hoping by giving the country a cheap fuel to stimulate the growth of industries consuming it. The average price the Company is obtaining for its coal today is cheaper than it was for the year I am reviewing, and that average price will, your Directors anticipate, be still further decreased before the end of the current financial year. Another difficulty we have to face and overcome is the matter of filling. This question will become more pressingly urgent as time goes on, and in preparation for the day when it has to be solved we must accumulate a substantial reserve fund. So far, through the exercise of the utmost vigilance, we have had no bad debts, but as our sales increase it is impossible that we shall escape a certain proportion of these unfortunate concomitants of wholesale trade. 0. The Pioneering Shareholders 0. So you will see from all these points I have mentioned that if we wish to put our enterprise on a sure foundation we shall still have some lean times ahead of us before that desirable goal be reached. But, however distant it still may be, it is now above the horizon; which is indeed everything. So I wish to congratulate those shareholders who were original subscribers; that is to say, the great majority of the present shareholders, for very few except Home holders of vendor shares have sold. If any body of shareholders deserves a handsome reward for their enterprise, it is the original shareholders in this Company. Malayan Collieries, as you know, met with the greatest opposition at its floatation. There were letters in the public press denying the existence of coal, denying its value as fuel if it did exist, and denying, if it not only existed but was valuable that any but a fool would take shares in a company that would be years before it could pay a dividend. None of the big users of coal, whether smelters, miners or ship owners subscribed a cent to the floatation. Their arguments were always the same; the arguments that had appeared in anonymous letters in Singapore papers’ especially the one “why subscribe for shares and have to pay in full for them, when they are certain to be obtainable at a big discount before the Company is dividend paying?” It was useless for the present speaker to urge that if everyone took this view the Company would not be floated, and that it was the duty of the particularly rich smelting or shipping or mining company with whom the speaker happened at the time to be pleading to support an enterprise having its object the development of the local coal resources; they presented a deaf ear and buttoned- up pockets to his entreaties. The Company was subscribed for almost entirely by one group, mainly Chinese in Kuala Lumpur, and a smaller group, also mainly Chinese in Penang, most of whom were the speaker’s personal acquaintances. Only one British mercantile house of any standing subscribed for shares, a Singapore firm, while no big consumer of coal did likewise. I am sure that all those who did subscribe thought they were embarking upon a perilous gamble, which reflects so much more credit on them for having supported it. Personally I myself, knew it was no gamble. Like Mr. Dykes, I have always after its very thorough two years prospecting had faith in the field, and I think that this is proved by the fact that such profit as I made from the floatation I took entirely in shares, while I at the same time subscribed in cash for close on $100,000 worth of those issued to the public, and have ever since been a steady buyer both of these ordinary and the vendor shares. The Company’s first and most staunch subscriber was Towkay Loke Yew, C.M.G., and he, and he alone, I think, adopted the attitude that it was the duty of those who had made money in this country to take hazards in support of an enterprise likely to be of benefit to Malaya; a view which might I think have reasonably been expected to be held amongst the big and wealthy smelting, shipping and mining companies who have done so well out of the F.M.S. I have little doubt that the shareholders of this Company, having borne all imagined risks, and having proved that coal in this country can be successfully worked at a profit, were a new coal- field now discovered and a company formed to exploit it, those same big interests who turned our own pioneer babeling from their doors would subscribe to such a new floatation with protestations about benefits to the country at large and to the mining industry in particular deserving every encouragement and support. In this connection I would point out that had we liked to opencast our mine we could have produced coal much quicker and at a much cheaper rate per ton, and, moreover with the sinking of considerably less capital than we have done. In fact we could easily have floated a small company with a small working capital, the vendors retaining the same or bigger proportions of the whole than they did. The shareholders would have made money quite gaily for some years, and then have had to close their open cast mine down, having in their unconscious greed succeeded in ruining one of the most valuable assets the F.M.S. possesses I would warn you that it is still possible for another company working any newly discovered coal field on the opencast method to cut us out of the market. I shall not weary you further or ever again upon these points, but they are matters on which I have always promised myself to speak as soon as the Company entered the dividend paying stage, and I think that the rumoured scramble of one and everybody for permission to exploit a recently reported and still unproven coal find in Perak makes them all the more apposite at this present juncture. When one remembers the apathy with which many of the people who now wish for rights to work Enggor treated the thoroughly prospected but to their minds risky, Rawang field, this scramble must have for the cynical a flavour delightfully humourous. 0. Mine Manager’s work. 0. Before concluding I should like to say how much this company is indebted to our mine manager Mr. McCall, and to his staff for their devoted, skillful and unremitting work and care during the year. This Company has been singularly fortunate in its mine staff, than whom a more loyal and, moreover a more intelligent, does not exist in this country. I shall presently have great pleasure in asking shareholders to pass a vote of thanks to Mr. McCall and to those under him 0. I will now formerly move that the report of the Directors produced, together with the statement of the Company’s accounts as of June 30th, 1916, duly audited, be now received, approved and adopted, which motion I shall ask Mr. Henggeler to second, but before putting it to the meeting I shall first endeavor to answer to the best of my ability any question that shareholders present may like to put. 0. Mr. Mawson said that the Chairman had referred to the possibility of finding other coal deposits in the F.M.S. Would it be possible to work any such newly discovered field, supposing that it was not out of the way, in the same manner and for approximately the same cost per ton as their own property was being worked? 0. The Chairman replied that this would he thought depend largely on the field and the nature of the seam or seams. He was told from geological evidence it was most improbably that a better quality coal would ever be found in the country, while it was also improbable that there would be discovered a bigger field than theirs. He would ask Mr. McCall to give them the benefit of his more technical knowledge. 0. Mr. McCall the mine- manager said: “ I regret that Mr. Mawson’s question is almost impossible to answer as so many factors enter into the case. Chief amongst these I would place (1) the quantity of water to be pumped, (2) the liability of the seam to spontaneous combustion, (3) the absence or presence of gas, (4) the nature of the roof, (5) the inclination of the seam, (6) the available supplies of mine timber, and many other minor items all bearing directly on the question too numerous to mention without further knowledge of local circumstances.” 0. Mr. Henggeler seconded the Chairman’s motion to adopt the report and accounts, which was unanimously carried. 0. The Chairman then moved the payment of a dividend of 6 per cent upon the ordinary shares credited as $6 paid up, which was seconded by Mr. A Grant Mackie and carried. 0. The sum of $3,000 was voted to the five directors in remuneration of their services for the past year, to be divided amongst them as they themselves thought fit. 0. Towkay Loke Yew C.M.G. and Mr. R.P. Brash were re-elected to seats on the Board.Messrs. Barker and Co. were re- elected auditors for the ensuing year at a fee of $750. 0. A vote of thanks was passed to Mr. McCall and his staff at the mine for their very valuable services during the past year. The meeting concluded with a vote of thanks to the Chairman and the directors, for which the Chairman on behalf of himself and his co-directors briefly returned thanks.
F.M.S. Annual Departmental Report, 1916, page 5 (Also published in The Singapore Free Press and Mercantile Advertiser (1884-1942), 23 May 1917, Page 2
Coal. 18. (i) Work was carried on throughout the year at the Malayan Collieries; for some time the output was restricted owing to a “want” having been encountered in the North Mine, shortage of labour and certain essential supplies tended to restrict the extension of operations; the output being obtained being 101,846 tons. (ii) In the North Mine the main haulage way is down 1, 300 feet on the slope and in the South Mine 1,200 feet has been reached on the slope. (iii) The ventilation of the mine has been well maintained and extensions of the ventilating plant are in order. (iv) The power- house capacity is to be increased by 600 kilowatts; air compressors, compressed air operated plant and other machines are under order. (v) Experiments are in progress in England on distillation of the coal with a view of by-products, but nothing definite has been arrived at with regard to briquetting, and it is most important that this should be dealt with as soon as possible. (vi) It is essential that material for filling should be obtained and the management is making investigations with regard to materials for hydraulic filling. (vii) Tests on this coal in Crossleys’ suction gas plant gave a consumption of 1 and quarter lbs. per brake horse-power hour.
Malay Mail Tuesday January 4th, 1917, p.6 and The Straits Times, 5 January 1917, Page 8 and The Singapore Free Press and Mercantile Advertiser 6 January 1917, Page 6
The first batch of Japanese labourers for Malayan Collieries, Ltd., arrived there on Wednesday and proceeded to the mine. A further batch is expected shortly.
The Straits Times, 1 February 1917, Page 2
NOTICE IS HEREBY GIVEN that the directors have declared a 12 per cent dividend being the Final Interest Dividend on ordinary shares, payable to shareholders on the Register on February 1, 1917.
The Straits Times, 31 August 1917, Page 8
A fire broke out in one of the mines on Malayan Collieries a few days ago which may rather reduce the output during the next month. The fire is now subdued, and no permanent damage to the mine has resulted.
The F.M.S. Chamber of Mines Magazine, No, 5, January 1918
MALAYAN COLLIERIES. Directors’ Annual Report The report of the directors of Malayan Collieries, Limited, for the year ended June 30, 1917, states: - On October 20 a final call of 75 cents per share was made on ordinary shares, thus making these $10 fully paid. During the year application was made for the conversion of a further 280 acres to mining lease (making a total area under lease of approximately 2,027 acres) whilst the prospecting licence was renewed over the balance of the Concession. Coal sales totalled 135,663 tons as against 50,042 tons for the last financial year, an increase of 85,621 tons, or 171 per cent. Prospecting was continued throughout the year with satisfactory results. In order to expedite this work an extra and larger diamond drill set was purchased at home, but an export permit has not yet been obtained, and the plant is still lying in London. The Government are continuing the construction of the railway line from Batu Arang Station through the Company’s property to Batang Berjuntai; this may facilitate future workings of the colliery at other points in the field. The company’s siding and locomotive were kept in thorough repair throughout the year. An extension of the company’s branch line along the outcrop is under consideration by the board. The colliery is now connected by telephone with Kuala Lumpur, which will prove a great convenience. In common with other mines, labour difficulties were experienced throughout the year, owing to its scarcity, labour being both costly and independent. In this respect an improvement is confidently hoped for after the war. There were no changes during the year in the personnel of Mr. McCall’s staff. Mr. F. J. B. Dykes continued throughout the year to act as the company’s London agent, whilst Messrs. Forster Brown and Rees of Cardiff and London remained the company’s consulting engineers. Until the whole of his services were requisitioned by the British Government in connection with the War Fuel Commission, Professor W. A. Bone, D.Sc., F.R.S. Professor of Chemical Technology, (Fuel), Imperial College of Science and Technology, London, continued his experimental research work into the nature and properties of the coal with regard to its possibilities for low temperature distillation and briquetting. Upon Professor Bone being precluded from further work upon the company’s behalf, Mr. Eric Sinkinson was, upon the Professors’ recommendation, then engaged by the Company to complete the investigations. Owing to the depletion of staffs at Home, this work has been greatly delayed and is not yet finished; but from the experiments made to date it seems certain that the coal will under certain conditions make good briquettes suitable for ocean bunkering. Due to the dissimilarity of Rawang with other coals of the same class, it has, however taken over a year of patient research work and practical experimentation to discovered suitable agglomerants, and a satisfactory commercial method of briquetting. Trials at Leeds on a practical scale are still being carried out. The final installment of arrears on interests amounting to $86,720.62, equivalent to a dividend of five and three quarters per cent upon the total issued capital of the company, was paid on February 5, and there is now no difference between vendor and ordinary shares, both of which are $10 and fully paid and rank equally for all future distributions of profits. The profit for the year subject to directors’ fees, amounts to $243,723.04 to which has been added the balance brought forward from last year’s accounts of $31,972.14. making $275,695.18, out of which has already been paid the arrears of interest dividend due upon the ordinary shares amounting to $86,720.62 leaving available for distribution $188,974.56 which the directors recommend should be dealt with as follows: - In payment of 7 and half per cent upon 150,000 shares $112,500.00, to reserve for bad debts $10,000 balance to be carried forward to the next years’ accounts $66,474.56. Total $188,974.56. The directors deeply regret to have to announce the lamented death during the year of one of their number, the late Dr. Loke Yew, C.M.G., who was an original member of the board. Mr. A. D. Allan resigned from the board upon his retirement from the East. The remaining directors invited Mr. Chew Kam Chuan, one of the trustees of the estate of the late Dr. Loke Yew, to a seat on the board, and this appointment the shareholders will be asked to confirm. The retiring director Mr. Adolf Alois Henggeler, who, being eligible, offers himself for re-election. Messrs. Barker and Co., auditors, retire, and offer themselves for re- appointment.
The Straits Echo Mail Edition. 10th October 1917.and The F.M.S. Chamber of Mines Magazine, No, 5, January 1918, and The Straits Times, 10 October 1917, Page 10
Malayan Collieries Development Programme The Annual Meeting. The fourth annual meeting of shareholders in Malayan Collieries, Ltd., was held at the registered offices of the Company 8, 10 Loke Yew Buildings, Kuala Lumpur, on October 2, at 12 noon. Mr. J. A. Russell (Chairman of Directors) presided. Mr. P.P. Spradbery for the secretaries read the notice convening the meeting, and also the minutes of the last meeting, which were confirmed. The annual statement of accounts and balance sheet and the report of the directors and auditors were submitted to the meeting. Chairman’s Speech. The Chairman, in moving their adoption, said: - Gentlemen, - The report and accounts having been in your hands for the specified period, with your permission, I will take them as read. Before moving their adoption, however, I presume you would wish me to make the usual comments upon items in the balance sheet before you. Taking the debit side first, the issued and subscribed capital now stands, you will observe, at $1,500,000, a final call of 75 cents upon the subscriber shares having been made on October last, which makes the shares fully paid, less calls in areas to the amount of $313.81. The calls in arrears are due to two shareholders, both of whom are at the front, and the Directors consider that under these circumstances they are not justified in forfeiting their shares. The item “sundry creditors” consists of wages, Government royalty and freight due by the Company for June account, and has since been paid. The profit I will touch upon when coming to the profit and loss account. Turning now to the credit side, you will see that “mine property” remains the same at $1,003,474,50 whilst “mine development” is decreased from $183.711.97 to $146,782,32. Mine development account was, you will remember, closed as from the end of the 1915-1916 financial year, all work of this nature being now charged against revenue. Furthermore, a sum of $25,000 was written off this account from out of next year’s profits, the sum written off being the approximate amount that had been charged to development after the company had started selling coal. To eliminate from future balance sheets the constant appearance of the item “ surplus on sale of forfeited shares”, this sum also amounting to $11,963.65, has been written off development account. The above two entries make the reduction of $36,963.65 in mine development account as shown in this balance sheet below that of the previous year. To the extension of our workshops and underground brickwork is principally due the increase of $10,244.66 in buildings account, which, after writing off, $4, 629.53 in depreciation, now stands at $58,506; whilst the erection of a fourth bungalow explains the $5,803.37 increase under bungalows, now standing, less $1,689 depreciation, at $12, 302. The Company is at present erecting a small billiard room for the staff. It is practically impossible for our staff ever to get away for long from the mine, and in presenting its employers with a club and billiard table, the Company is not only showing the appreciation of its staffs’ zeal and devotion, but as those who have read any of the recent investigations into the causation of fatigue will readily understand, is consulting in the highest possible manner its own interests. The nature of the additions, amounting to $53,904,79, to plant and machinery, you will have gathered from the mine manager’s report. After writing off a depreciation of $26,570.92 this account now totals $151, 072.68. No comment being necessary on the following five items, we come to stock in hand, consisting of mining stores and requisites. These have been valued by the mine manager on a below cost basis at $34,703.26 The sum of $90,416.91 outstanding on coal sales is principally amounts due for June supplies, and has been since collected. You will see that we have a sum of $175,000 on deposit at the banks plus $1,893 accrued interest. We have $6,130.79 in London to meet payments on new plant ordered, whilst, we have on current account and in hand $5,055.02. With a small item of $824.19 for unclaimed dividends, this gives a total of cash at bank and in hand of $188,903. Turning now to the profit and loss account, mining charges, wages and salaries is the heaviest item, amounting as it does to $252,923.90. Labour rates are not only high but look like going higher. In consideration of increased cost of living, a war bonus of 10 per cent upon their salaries was granted to the European staff at the mine. The Government Royalty of 25 cents per ton of coal sold amounted to the sum of $33,915.97. Depreciation for the year on plant and buildings, the details of which I have already mentioned, aggregates $35,727.44 and has been calculated, I can assure you, on a generously sound scale. Our coal sales for the twelve months yielded a gross return of $760.853.27, but only about half of these sales were made at pit head, the Company paying the rail freight, amounting to $126.97.43, upon the balance. This gives us a real coal sales return of $633,882.84. Coal in stock at the end of the year was only standing at $1,150.97. After adding a small amount for sundry incidental profits, and deducting mining selling and other charges, the Company has made, subject to the payment of Directors’ fees, a net profit for the year of $243,723.04; to which has been added $31,972.14 brought forward from the previous years account, giving a total of $275,695.18, out of which a sum of $86,720.62 has already been paid in interest dividend, leaving $188.974.56 at present available for distribution. Glancing now at the report, you will note that after further prospecting we have taken, during the year, an additional area under lease of 280 acres, making our total leasehold area 2,027 acres. The rest of our concession we still hold under a prospecting license. Vigorous prospecting was carried on throughout the year, but we were handicapped by only having one diamond drill. A further drill was purchased in London, and it was the intention of the Company to keep two drills constantly going on the prospecting area, besides hiring a third set to put down to a deep two-thousand feet bore. Unfortunately, it has not been possible to carry out this idea, for although a priority certificate was obtained from the Munitions Department to purchase the second set, upon applying for an export license from the newly formed War Trade Department, this was refused. There would appear to be certain want of harmony between these two departments, which is regrettable. In the meantime our second diamond drill lies useless at Home. Nor have we been any luckier in regard to a deep boring set. The Government has such a set here in Kuala Lumpur, but only possesses 300 feet of tubing. We have, therefore, been trying to hire a set from one of the oil companies in neighbouring countries; but so far unavailingly. We are now making inquiries with regard to hiring such a set, together with a crew of operators, from America. Besides continuously employing our one diamond drill, we have kept at work during the greater part of the year on the prospecting license area one or two sets of ordinary alluvial boring tools; but these are of little use for coal, and our object in prospecting with them has been more to discover deposits of sand suitable for hydraulic stowage, preferably stanniferous sand able to partly to pay for its own cost, than to locate fresh coal seams. Coal sales for the year totalled 135,663 tons, but the production was somewhat greater than this, the amount burnt by the Company itself not being included in the above figures. Our plant was not only augmented during the year, but we have a considerable quantity of additional plant still on order, partly at Home and partly in America, consisting of boilers, generators, pumps, electric motors, ventilating plant, electric locomotives for underground haulage, air compressors with pneumatic punching and drilling machines for working the coal, cables, rails, tib wheels and axles etc. The wherefore of all this extra machinery I shall presently explain to you. The amount of work entailed at Home in connection with these orders is almost unbelievable. Days of interviews and weeks of interminable correspondence; consultation with manufacturers and our own consulting engineers, negotiations unending, all are required in order to obtain priority certificates of any practical value for the manufacture of our plant. Our trouble is that the class of plant which we ourselves want is also urgently required by the Home Government for the increased British coal output necessitated by the war. Although we are in constant cable and postal communication with our London agent Mr. Dykes, and also with our Consulting Engineers, until I myself went Home at the end of the year I had no idea of the amount of work occasioned by even the simplest orders. I really cannot say what the Company would have done had it not had Mr. Dykes work so energetically and persistently, yet so tactfully, for it at Home. The Company’s thanks are also due to its consulting engineers, Messrs. Forster Brown and Rees, who frequently sent us up to London an experienced colliery engineer from Cardiff to assist us at our interviews with officials of the Munitions Department, and indeed have proved invaluable. We are, moreover, indebted to the Chief Secretary and the Senior Warden of Mines for kind assistance in the matter, the Government considerately addressing the Home authorities on the Company’s behalf. I might say that we received last week a cable form Mr. Dykes as follows: “Priority certificates issued in respect all recent requests and hope obtain delivery about contract time.” I expect that you would rather like to hear some further details with regard to the research and experimental work conducted upon our coal at Home. After over a year’s patient research, Professor Bone gave us an interim report, which was satisfactory as far as it went, but was not complete. Most of the earlier experiments were, I may say, abortive; but the Professor was getting better results at the time he wrote his interim report. At this juncture Professor Bone’s services were appropriated by the Government, and the continuation of the work was entrusted, on his recommendation, to Mr. Eric Sinkinson. Since I left Home, practical briquetting has been carried out, giving most promising results; and now having discovered a successful method of making good briquettes, the question of cost alone remains satisfactorily to be solved. This successful solution to a great extent depends upon the results of the distillation experiments, which latter up to a short time ago did not altogether content us. We obtained good results in the laboratory, but three days trial on a Battersea plant which I myself witnessed at Home proved disappointing. We have now received a cable form Mr. Dykes which I will read out to you: “Sinkinson authorizes me to say briquetting with our pitch in laboratory proved successful no reason doubt similar result on commercial scale percentage pitch obtainable from coal low but would materially assist with foreign binder” If this be so, the question of the cost of briquetting will be materially simplified. In view of Mr. Sinkinson’s knowledge of the difference between previous laboratory results and those on commercial scale, presume that he would not advise that we may expect equally good issues in commercial practice unless he has excellent reason for so believing. You may wonder why we are spending all this time and money on experiments of this nature when, so far from having any spare coal to briquette, we cannot supply much more than about half existing demand for ordinary unbriquetted stuff. But, we do not always anticipate being in this position; we can see a steady local demand for unbriquetted coal up to about 1,000 tons a day; but beyond that figure we cannot safely expect much sale. Now, after the war, not immediately after the war, but perhaps not so very long after it, we are going to encounter very strong competition from Indian and Japanese coals which, if they possess, as compared to Rawang, ash and clinkering disadvantages, are, nevertheless, of a somewhat higher calorific value. In order to meet such competition upon an equal if not better footing, we should like to have an output of 2,000 tons or more a day. By such a daily production we estimate we could get our costs down to a figure that, no matter how low freights fell, would still enable us easily to compete in relative price with the imported fuels. To reach sales of 2,000 tons a day we must get a share of the bunkering trade, and although our coal at the present moment mixed with Japanese is being satisfactorily used for local bunkering, to make it a good bunkering coal we must briquettte it. In considering the cost of briquetteing we have realized that Rawang coal is not exactly identical in nature with any other known coal, so that methods of briquetting that are found suitable for other coals may not necessarily be so for ours. It was, therefore, plain from the first that it might take some years of patient research to achieve a successful issue, and your board thought it better to lose no time in initiating the work which is now arriving at fruition. We may not need at once to install briquetting plant; but we do at once want to know whether or not we need to make provision for the possibility of later on desiring to do so. However, the two most important expenditures we have immediately to face are those of dealing with underground fires and with increasing the rate of extraction. The first is the most serious, for unless we can control these constantly occurring spontaneous ignitions of the seam in the lower workings, we shall never be able greatly to increase our present output, and shall always be confronted with the possibility of serious stoppages and losses. The question of extraction per centage is largely bound up with the control of fires, each fire meaning a considerable loss of coal. Yet even without fires our seam is so thick that the amount of good coal which we have to leave behind in roof supports, etc., is very great. The certain cure for both ills is the replacement of the coal removed by some suitable material flushed by water into the vacancies; in other words, by hydraulic stowage. This is a system that has been common one the Continent for some years, but only since the outbreak of the war has been to any great extent practiced in the British Isles, where the necessity of obtaining for war purposes larger outputs than were formerly considered practicable has recently caused this method to be successfully adapted in several collieries having seam and working conditions approximating to those occurring on our Rawang property. Before deciding upon it, your mine-manager and board have considered other alternatives; but in the end have had to come back to this main idea of hydraulic filling. The principal difficulty lies in obtaining suitable stowage material; search upon the Company’s concession, large as it is, having failed to find a big enough deposit of sand of a nature to suit our purposes. Fortunately, we have obtained the refusal of an area containing over 100 acres of admirable material lying just beyond our boundary. The Company is now actively investigating this deposit, together with the best method of excavating from 800 to 1,200 cubic yards of stowage material daily, washing the same, conveying it three miles to the mine, and pumping it into the workings. To carry out the scheme we shall, incidentally, have to extend our branch line along the outcrop for another one and half miles of double track, equivalent to an extra three miles of single track. Plans for this extension are now being prepared. The installation of an efficient hydraulic stowage plant will not only be dear, but the hydraulic stowage itself will probably add, until we can so increase our output as to nullify it, to the mining cost per ton; but as it will not only, by permitting us to extract a far greater proportion of coal from a given area than we are at present doing, considerably lengthen the life of our mine, but will also enable us effectively to combat fires, of which I may say we have had, big and small, nineteen to date, it patently will be more than worth the initial expense of installation and any temporary rise in working costs. Another immediate and a heavy outlay which we have decided to put in hand is connected with the work of arching various portions of the many roads. This makes for the safety of the mine from break-downs, and though not always done in Home collieries is perhaps usual in the better of them. We further propose to increase our production, lower our working costs, and above all, render ourselves less dependent upon an arbitrary labour force by trying underground electric traction, and compressed air punchers and drills. Electric coal cutters may eventually be installed, but not immediately. Designs for a large automatic screening plant in place of our present grid also being prepared. One of our largest consumptions is in mining timber, we at present using over 200 tons of it a month; and before our mine is worked out we shall probably require every stick of wood that we have upon the concession. We, therefore, to conserve our timber supply and lesson its cost, intend installing a log saw mill and laying a light railway through the forest, making use of nearly everything big and small as it comes along. In order to meet with urgent appeals we daily receive for coal we cannot supply, we are, as a temporary war measure now vigorously extending open cast workings on the North Seam, which you will understand is quite distinct from the Main Seam upon which the underground workings we call our North and South Mines are situated, and this means more, if only locally procurable plant. You will, thus not be surprised when I tell you that we have a programme of immediate expenditure ahead of us of quite half a million dollars. This sum does not include any allowance for remoter expenditure in connection with the sinking of the central shaft, briquetting plant and possibly a distillation plant. These will cost anything from another one- million to one- million- five hundred thousand dollars beyond the half million I have already mentioned. The latter half of the programme we can complete slowly; it is the first part which is urgent; but when the whole is finished you will possess, we feel sure, a coal mine which need not fear comparison for stability efficiency and even output with most or any in Asia. In regard to this expenditure, to that of the first five- hundred- thousand at any rate, it is your Board’s intention to try to meet the same out of profits and you will thus readily believe me when I say that your Directors very seriously considered whether or not they were fully justified in recommending a dividend for the past year of 7 and half per cent; for it must not be forgotten that with the arrears of interest dividend on subscriber shares distributed last February, the Company is really paying a total dividend of 13 and quarter per cent. However, shareholders having waited for so long while the mine has been developed, it was thought that in recommending the rate of dividend to be declared at today’s meeting, perhaps no notice need be taken of February’s distribution and the Board is therefore proposing 7 and a half per cent, even although that rate makes the total distribution for this particular year, considering the programme of development which we are contemplating, rather a high one. We hope to give investors steady and reasonable yearly returns upon their holdings, but I think I ought to take advantage of the opportunity afforded by to-day’s meeting of saying I consider that shareholders should not look for particularly high dividends in the immediate future. Let me explain, at the risk of repetition, more fully the reason for this. When we started, no one apparently believed in coal except the promoters and the small band of enterprising original subscribers, who hardly included a coal consumer amongst them. The Railway Department had tried the coal, but would give the promoters no guarantee that they would use it. Had the promoters been able to obtain such a promise, the history of this Company would have been different. On the strength of such an assurance money could readily have been raised from the general public, the working capital enlarged and a bigger development scheme than one for an output of 500 tons a day planned. With, however, not only no guarantee as to sales, but indifference and skepticism upon the part of consumers the Company was not justified in providing for an output of more than 500 tons a day. In fact I think we were rather brave even to provide for a daily output of as much; and anyhow, quite apart from all that we had not, nor under the circumstances just described could we possibly get, working capital for a larger equipment than a 500 tons a day installation. All this is now changed; prejudice has been overcome, and our ugly duckling is often heard described as being during the war the saving of the country. Our field is proved to be of undoubted value and capable of much greater development. This then is the reason for our ordering all that extra plant of which I have made mention, and for the years of future development work which I have told you are ahead of us; for the corollary that I cannot hold out much hope of high dividends for some time to come. I am the more careful to say all this lest, when now we tell you of our proposed extensive future programme we be accused of want in the beginning of proper foresight and enterprise. You will note, to return to the present, that we are recommending the appropriation of $10,000 to the creation of a bad debts reserve. We have to date sold over a million dollars worth of coal, yet have only incurred a thousand and fifty six dollars worth of bad debts, this consisting of a single item incurred when we were pushing our very first output of coal on to the public. We had at that time to sell to whoever would burn, and the loss ought thus really to be debited against an advertisement account. Our record so far is excellent. Nevertheless, all concerns selling as we do, their produce to the general public should have a bad debts reserve, and this is why we are asking you to approve at this meeting of the formation of such a one. I hope you will also confirm the donation of $500 which we have made to the local Sailors Day Fund, and further authorise us to grant a similar amount to the Our Day Fund. In expressing thanks, I trust that the Railway Construction Department will not mind my venturing to mention how indebted we are to its officers for the kindly courtesy and assistance they have on many occasions been able to render us during the year. To the Mine Department also, we are grateful for valuable aid, consideration and advice. Nor can I conclude without an expression of appreciation of our own mine manager, Mr. McCall and his staff. Their loyalty untiring industry and enthusiasm have been as remarkable as is their animating spirit of mutual co-operation for the success of the enterprise; in fact I consider Mr. McCall to be one of Company’s assets, and think his name really ought to appear along with our other assets on the right hand side of the balance sheet. I now beg formally to move that the report of the directors produced, together with the statement of the Company’s accounts as at June 30, 1917, duly audited, be now received, approved and adopted, which motion I shall ask Mr. Brash to second; but before putting it to the meeting I shall endeavor to answer to the best of my ability any questions which shareholders present may like to put. There being no questions the Hon. Mr. R. P. Brash seconded the Chairman’s motion to adopt the report and accounts, which was carried. The chairman then moved a payment of 7 and half per cent, upon the share capital of the company, the placing of a sum of $10,000 to a reserve for bad debts, and the carrying forward of the balance to next year’s account which was seconded by Mr. A. A. Hengeller and carried. The sum of $5,000 was voted to the directors in remuneration of the services for the past year. Mr. A.A. Hengeller and Mr. C. Kam Chuan were re-elected to seats on the board. Messrs. Barker and Co. were re-elected auditors for the ensuing year at a fee of $1,000, the Chairman in explaining the increase of fee saying that owing to the rapid growth of the clerical and accountancy work in the Kuala Lumpur Office, it would be necessary in future to have six monthly instead of the former annual audits. A vote of thanks was passed to Mr. McCall and his staff on the mine for their services during the past year, Mr. Hengeller further proposing a bonus of one month’s salary be granted to the mine staff as a mark of the Company’s appreciation, which was seconded by Mr. A Grant Mackie and unanimously carried. The meeting concluded with a vote of thanks to the Chairman and the Directors, for which he Chairman on behalf of himself and his co-directors briefly returned thanks. -M.M.
F.M.S. Annual Department Report 1917, page 5,The Straits Times, 31 July 1918, Page 11
Coal. 13 (i) The output of coal from Malayan Collieries, Limited (Selangor) was as follows for the past three years: 1915: 11,523 tons, 1916: 101,846 tons, 1917: 155,279 tons. A total of 268,648 tons since the commencement of operations. (ii) The output would have been considerably larger if plant that was under order could have been obtained, and this department, in order to increase the output was compelled to assent to the northern seam being worked open-cast within certain limits. (iii) Trouble was also experienced owing to shortage of labour, miners though able to earn high wages preferred the less arduous labour with less pay on tin mines or rubber plantations to hewing coal. (iv) Progress was made boring the property; but a scheme for a deep bore had to be abandoned owing to the impossibility of procuring plant. (v) Boring and pitting was also carried out with a view to obtaining suitable material for hydraulic filling, which is a necessity in view of the thickness of the seams being worked. (vi) Smoke helmets and apparatus have been obtained and have proved of great use in combating fires in the mine.
Letter. No. 107/1918 31st January, 1918 To His Britannic Majesty’s Minister Washington, Sir, I have the honour to inform you that on the 28th instant I sent to your address a telegram of which the enclosed is a copy. I have the honour to be Sir, Your obedient servant, Sd. Arthur Young. Government House, Singapore.
Note in pen: “ The cost of this telegram was $163-90. Receipt annexed.” Despatched on 28.1.18. British Minister Washington, It is urgently necessary that output of coal from Malayan Collieries Limited in FMS should be increased full stop For this reason request you to endorse Wallis care Chartered Bank of India Australia and China 88 Wall Street New ?(York) application to export following Electrical Apparatus and material to Selangor FMS to be supplied by General Electric Company full stop Six double pole switches and fuses in cast iron cases one double pole clad circuit breaker one double pole switch and fuse in cast iron case all as per specification number 10 in wallis’ possession full stop 800 and 80 yards twin core paper insulated single wire armoured cable 100 yards of single core rubber insulated cable twelve cast iron terminal boxes horizontal type two straight through cast iron joint boxes horizontal type box filling compound 50 per cent capacity of boxes cable suspenders and 20 per cent spare suspenders all as per specification number 11 in wallis’ possession full stop These articles are certified by Senior Warden of Mines to be indispensable Wallis has been cabled to produce specifications and indents for your inspection High Commissioner
Document in the National Archives of Malaysia. High Commissioners Office Ch Sec 107/18
Letter from O. F. Stonor, Office of Secretary to the Resident, Selangor, Kuala Lumpur, 21 February 1918 to The Under Secretary, F.M.S. Kuala Lumpur.
Importation of Plant from the United States to Malayan Collieries, Limited. Assistant by Government. Sir, I am directed to forward copy of letter from the Senior Warden of Mines (with enclosures) recommending that assistance be given to “ Malayan Collieries, Limited” for the importation of plant the United States. 2. The Resident recommends that His Excellency the High Commissioner be asked to sanction the despatch of a cable as desired. 3. A former application was dealt with in CSO 260/18. I have etc., Sd. O. F. Stonor Secretary to resident, Selangor.
CABLE. Owing imported coal unavailable shortage of wood fuel urgently necessary increase output local colliery permit requested transport and export four miles railway track forty pound rails with nineteen sets points and crossings all necessary fish plates and fastenings under order from Robertson Cole and Company, 149 Broadway New York stop Colliery agent is Wallis care Chartered Bank India etc. 88 Wall Street New York.
Documents in the National Archives of Malaysia 328/18
F.M.S. Chamber of Mines Report No 8. August 1918 , also published in The Straits Echo Mail Edition, No. 34 Vol. 1d, 21 August 1918,and The Malay Mail, Wednesday, August 14, 1918.
Malayan Collieries Fifth Annual Report. The report of the directors of Malayan Collieries for the year ended June 30, 1918, states: - The directors have pleasure in submitting their fifth annual report and statement of accounts for the year ended June 30, 1918. During the year application was made for the conversion of a further 1,150 acres to mining lease (making a total area under lease of approximately 3,117 acres) while the prospecting licence was renewed over the balance of the concession, Although at the end of the year no new plant from home had been erected, shipments of boilers, pumps, fan parts and electrical machinery were beginning to arrive, while a good deal of plant has been locally purchased and installed in the open cast mines. Coal sales totalled 161,272 tons as against 135,663 tons for the last financial year, an increase of 25,609 tons. The coal production would have been larger but for part of the Company’s plant being commandeered by the home authorities, and for the great shortage of labour experienced at the mine. A second and large diamond drill set having arrived from Home, prospecting was vigorously carried out during the year and a further area of the seams proved. An extension of about three miles to the Company’s private railway line was put in hand; 40lb. rails for this purpose being purchased in America. The Board profoundly regret to record that during the year Mr. F. J. B. Dykes suddenly died in London from heart failure. Mr. R. C. Russell was on his way to England at the time and took over the London agency work. Messrs. Foster Brown and Rees of Cardiff and London, continued as the Company’s consulting engineers, and also rendered valuable services to the late Mr. Dykes and afterwards to Mr. R. C. Russell, in connection with the Company’s applications for priority certificates, etc. Mr. Eric Sinkinson, of Imperial College of Science and Technology, proceeded with his investigation and succeeded in producing an excellent quality of briquettes. A satisfactory trial of these briquettes was made at Leeds on a commercial scale. The profits for the year, subject to Directors’ fees amount to $375,453.03 to which has been added the balance brought forward from last year’s account of $59,734.21, making available for distribution $435,187.24, which the directors recommend should be dealt with as follows: - In payment of a dividend of 12 and half percent, upon 150,000 shares $187,500.00; to Mine Amortisation Reserve $75,000.00; to a General Reserve £150,000; balance to be carried forward to next year’s accounts $22,687.24. The retiring directors are Mr. Alexander Grant Mackie and Mr. John Archibald Russell who being eligible, offer themselves for re- election. The Auditors Messrs. Barker & Co., resigned during the year, the directors appointing Messrs. Evatt & Co., in their stead. Messrs. Evatt & Co., now retire but offer themselves for re- election.
The Malay Mail 30 August 1918 and Malayan Collieries. [Articles] The Straits Times, 4 September 1918, Page 12
Malayan Collieries. Profiteering Charges Chairman’s Answer. The fifth annual meeting of shareholders in Malayan Collieries, Ltd., was held at the Registered offices of the Company, 8-10 Loke Yew Buildings, Kuala Lumpur, on August 24th at 11 am. Mr. J. A. Russell (Chairman of Directors) presided. Mr. J. McEwan for the secretaries read the notice convening the meeting, and also the minutes of the last meeting, which were confirmed. The annual statement of accounts and balance sheet and the report of the directors and auditors were submitted to the meeting. The Chairman in moving their adoption said: - Gentlemen, -The report and accounts having been in your hands for the specified period, with your permission I shall take them as read. Before moving their adoption, however, I will make my usual comments upon the items in the balance sheet before you. Taking the debit side first the call in arrears of $1.06 is due from a shareholder at the front and will be deducted from the dividend which to-day becomes payable to him. The unclaimed dividends amounting to $1,818.80 are likewise mainly due to shareholders who have gone Home to fight leaving no address behind them. Every endeavour has been made to keep this item as low as possible. “Sundry creditors” totaling $82,867.40 consists of wages, Government royalty, and freight due by the Company for June account, and has since been paid. The Reserve for the Bad Debts stands at $10.000 as before. The profit I will remark upon when coming to the profit and loss account. Turning now to the credit side, you will see that “ mine property” remains the same at $1,003,474.50, while “mine development” is decreased from $146.748.32 to $100,000, $46,748.32 having been written off to allow, on the manager’s estimation, for depreciation during the year in the value of what is technically known as the “ main roads”. Future construction of those “ main roads” which are not of permanent utility is being charged to revenue. “ Buildings” at $86,980 shows only a small addition, “ plant and machinery”, if we include the two items “plant in transit” and “ plant suspense account”, is increased by $313,592.16 making a total of $495,627.84. From this figure has been deducted $46,817.28 for depreciation. “Plant suspense account” is plant already purchased but not yet shipped. The extra plant consists of new Babcock boilers, mechanical stokers, motors switch boards and starters, a new large ventilating fan, pumps, piping, rails, cables etc. Our stock of mining stores stands at $63,817.93 as compared with stores on hand last year valued at $34,703.26. Coal on hand at the end of the year was only worth $1,325. At the closing of accounts we were owed for coal the sum of $136,588.89, and that this amount was no larger is due to the strenuous endeavours made at the end of our financial year to get in as large a proportion as possible of the outstandings. Although due to unremitting care we have few bad debts nevertheless you will observe you will observe that we require quite a considerable sum to finance our coal sales. Cash in banks at the end of the financial year was $148.058.46, of which $45,000 was on fixed deposit. There was a further small sum in the Kuala Lumpur office and at the mine of $380.15. Our total cash balance is considerably smaller than it was last year, for although our profits are higher the unavoidable calls upon our resources for fresh plant and new development expenditure have been even greater. Turning now to the profit and loss account, wages and salaries at the mine are much higher than they were for the previous year, amounting as they do to $377,407.29, while if we include management salaries and fees, the total amount on this account is nearly $400,000. We used practically $50,000 worth of mine stores and mining timber during the year. We paid to the Railway Department $160,951.22 for rail freight, while we further paid to the Government a sum for royalty and quit rent of $41,600.20. We spent upon prospecting the area still held under prospecting licence a sum of $9,611.15, but this does not include European supervision, depreciation of diamond drill, nor even the whole of the coolie labour, if all these items were added the sum would be considerably larger- more than double. Mining wear and tear is very great and our depreciation is bound to be heavy; it cost us for the year under review a total of $105.434.76, but this is without amortisation, which is not shown in the profit and loss account, although in strict theory it ought really to appear there. Coal research expenses are seemingly very low for the amount of work done, but we shall have a comparatively large bill to meet upon the conclusion of the English experiments. The coal sales for the twelve month yielded a gross return of $1.141,687.42, while sundry other items brought the Company in a return $15,892.01 to which has been added another $1,325, being the value of coal on hand at the end of the year. After deducting, mining, selling and other charges, the Company has made for the year, subject to Directors’ fees and to an allowance to be made for amortization, $375,453.03. To this profit has to be added the balance brought forward from the previous year’s account of $59,734.21, making a total nominally available for distribution of $435,187.24. This amount, however, is not actually available, for you will have noticed that the bulk of the sum has had to be reinvested in the mine, so that the cash in hand and at the banks is really insufficient to pay a ten per cent dividend. Had this money not been re-invested in the mine, our output would have sunk to a tonnage alarmingly small. I shall presently move the declaration of a dividend of 12 and half per cent for the year’s working, but I would here explain, so far as I, personally, am concerned, I would as soon prefer it was not more than one of 10 per cent. However, it is realized that the purchasing power of money is not what it was, so that a present dividend of 12 per cent is actually equal to one of 10 per cent a year ago, when, as a matter of fact, this Company distributed in all 13 and half percent. Your directors have therefore, decided to recommend a distribution at a higher rate, especially as by the date of today’s meeting cash in hand has been accumulated sufficient to meet the payment of such a declaration. Twelve and half per cent will absorb $187,500 leaving $247,687.24 for amortization and reserve. In business other than mines, perishable assets have to be properly depreciated and the amount of such depreciation charged against profit and loss accounts. A mine being a wasting asset, according to the above rule no dividends should be distributed until the amount of capital lost has first been made good out of revenue; by popular usage, however, mines have been allowed in their Memorandum and Articles of Association to provide that they need not set apart a sinking fund to meet the depreciation in the value of their wasting properties. But it is now the modern practice most of the best coal and iron companies to charge against revenue account a sufficient amount of depreciation to maintain their capital against wastage, doing so from a sound business point of view without regard to whether it might or might not legally be required to charge such depreciation. Your Board are of the opinion that this is the course the Company should adopt, but they prefer, by creating an amortization reserve, to keep a record in the balance sheet of the amounts from year to year so written off rather than put the depreciation against revenue. At 2 and half per cent per annum the capital of the Company would be redeemed in 40 years time, and as the principal lease has from date another 38 years to run, it is proposed to set aside from the profits of this year 5% per cent upon the capital of the Company, absorbing $75,000, and for each succeeding year a further 2 and half per cent. As I have said, I would ask you always to regard this amount not as an ordinary allocation of profits to reserve, but as a depreciation which perhaps more properly, if not legally, should appear in the profit and loss account, yet which for the sake of record and of future dealings it is convenient for us to show as an appropriation to special amortization fund. It is further proposed to place to General Reserve Fund, re-invested in the mine, $150.000 of the profits, as representing part of the money expended during the year in the purchase of additional plant. This leaves to be carried forward, subject to directors’ fees and a bonus to mine staff, a balance of $22,687.24. You would probably now like to hear from me something regarding the outlook. Our immediate future is, I almost might say, entirely concerned with one subject: “output”. There is no lack of demand for our coal; but the monthly production, instead of increasing as it should do, I regret to have to say is remaining stationary. Lack of labour and plant are the two causes of this. The commandeering by the War Office of our generators upon their completion at Home was a severe blow to us, while the non-arrival of our mechanical coal- cutting plant and underground electric locomotives leaves us still entirely in the hands of labour. The output of coal from opencasts which was intended to relieve the situation, such workings not needing the employment of skilled underground miners, has been negligible. This misfortune is due to the delay in connecting up by rail the open cast workings with the main line, the rails purchased for the purpose in America having been shipped by sailing vessel and therefore taking several months to arrive. The question of labour is most serious, and but for it we should be producing well over 700 tons a day. The high price of tin has made the demand for skilled labour so great that our hewers even though making more than $3 a day will not stay, and, when they do stay will not work. They cannot earn so high a wage as this on a tin mine, but on tin mines the work is so incomparably less arduous than it is on our own that they are easily able to work 25 days in a month and consider they are having an easy time, while in the Colliery they maintain that they cannot put in more than from 15 to 20 days work and yet feel they are leading a slave’s existence. In condemning them for laziness, the fact has to be kept well in mind that the Southern Chinese has not the stamina of the European miner, and most of them are physically incapable of working 25 days in the month at coal-hewing. Where our trouble again comes in is that the miner will not permit others to work at his particular working place on the days he himself is not doing so. As the hewers work only 15 to 20 days in the month, by this dog-in-the-manger attitude a large number of our available places are continually idle, and the mine is being operated at considerably less than its producible capacity. We cannot open more working places as owing to the commandeering of our generators we could not pump or ventilate them. When we have attempted to disregard the hewers in the matter of reserving to them their working places, we have lost numbers of men. It is our opinion that if we considerably raised the hewers rates to something exorbitant, but making the increase rather a bonus upon footage than a rise in the tonnage rate, we could attract the physically strongest underground miners in the Peninsula, thus increasing our number of mine working hours. Moreover, if we made our rates so attractive that hewers were able to earn over treble the wages they could at any other mine in the country, we do not think we should find them so independent as they now are when we endeavored to enforce that the working places be more efficiently manned. But here we are faced with a fresh difficulty. Your Board has also the financial interests of shareholders to consider besides that of increasing the country’s coal production, so, although we have never charged just whatever high price we could obtain for coal, making large profits out of the country's necessities, and although further we have always remembered that in times like these there are more important matters to be considered than solely that of shareholders profits, still, to this policy there must, of course, be limits. If we raise hewer’s rates we must, if we wish to pay even the small dividends that we are doing, also raise the price of coal. Owing, however, to the agitation of certain miners, the Government has given us to understand that it cannot regard with favour any great increase in the price of coal to the public; so I fear we shall be unable to ameliorate our labour problems. Now with reference to the complaints against us of one or two of our tin mining customers, what you may ask, are the facts? Before stating them, you may be interested first to hear that instead of those consumers who objected to the price of their coal being raised having asked us for figures, their method seems to have been to have written privately to H.E. the High Commissioner, or perhaps it was to the Chief Secretary, making a number of allegations that Malayan Collieries were sordidly profiteering. However I need not touch at any length upon that point of the matter. I think that the few figures I will now proceed to give will somewhat surprise you. If anything they understate the real position, but divide them by half, even divide them by three and the result is still sufficiently astonishing. The price ruling in Singapore for, on rail or delivered to steamers, the poor quality of Japanese coal at present being imported is $50 a ton; which would make it $52.50 in Kuala Lumpur. I will, however, take $50 a ton as a price which is equivalent to our pit-head price, although as a matter of fact, the freight on Rawang coal from pit-head to chief mining centres is less than it is from Singapore. The present normal price in Singapore of Indian coal is said to be $44 a ton, but as there is none to be had, it need not enter our calculations. The Singapore price for imported coal at the beginning of our financial year was a little above $40 a ton, so that a fair average price for the whole year would be $45 a ton. Our own average pit-head selling price for the whole of the year under review was $6.11 a ton, but if we only take the last two months of our financial year it was $7.95 a ton. The results of the extensive comparison tests by Osborne and Chapel in 1912 between Rawang coal and imported coal showed that the ratio was 5 to 7. I would here observe that with proper firing the real ratio is perhaps a trifle more favourable to Rawang coal than 5 to 7, for a small proportion of our output is now from the Great Seam, which is of higher calorific value than the Main Seam Coal, upon which latter it was that Osborne and Chappel made their tests. Moreover, on the other hand, the quality of imported coals is now not so good as it was before the war. Again, owing to the original lack of knowledge as to the best manner of burning Rawang coal, it is doubtful whether Messrs. Osborne and Chappel’s 1912 tests were fair to our fuel. I can safely say this because at a later date to these tests the Pengkalen Mine, which is under Osborne and Chappel's management, said that after a full trial they found it did not pay them to burn Rawang, and even at a second trial, when Malayan Collieries’ engineers were present, they still thought that Rawang coal was too poor to be of value to them. It was only after Malayan Collieries had begged for a third trial, at which the recommendation of the Malayan Collieries’ engineers should be carried out, and this had been granted, that we were able to prove to Messrs. Osborne and Chappel that, properly fired, it would pay to burn Rawang coal. However even at a ratio of 5 to 7, upon the present basis of imported coals Rawang fuel is worth $35.71 or 452 per cent of the average price at which we are now selling it, while for the past financial year it was worth an average $32.14 or 526 per cent of our average price for the whole of that year. We further find from Messrs. Osborne and Chappel’s 1912 report that at that date the F.M.S. Government Railway, owing to the big contract that it could place, was getting Indian coal at $7.13 a ton, and that upon tests made by them they estimated Rawang coal was worth to the railway $6.04 a ton. Yet after all these years of war and enhanced prices we are today selling one third of our output to the Government Railway at $5.50 a ton or 54 cents a ton cheaper than it was estimated to be worth to the Railway in the economical times of 1912. This price includes the Royalty of 25 cents a ton which we have to pay to the Government, so you may say that the Government is getting its coal at $5.25 a ton. If the Railway’s 60,000 tons it bought from us last year be calculated at the price ratio I have mentioned of $35.71, it is at present saving, by burning our coal and not having to buy it on the Singapore market, at the rate of $1,812,600 per annum. If you think that the Railway could purchase foreign coal at a cheaper rate than $50 a ton, knock off the odd $800,000 and say that we are only saving the Railway a million dollars a year. For the last year, against the cheaper price of imported coal has to be put the fact that we sold the railway part of their supplies at $5 a ton. Should, upon the ratio given for last year, the difference to all our customers be calculated, then the saving effected by Malayan Collieries for the country during that period works out at $4,200,000. On our present increased coal prices and on the present ratio the saving is still at the rate of $3,670,000 per annum. I would remind you that, deducting amortization which properly should be charged to revenue, but only deducting half the amount put to amortization as the other half is really depreciation upon the previous year’s working, the Company by exercising the greatest economy of management only made $338,000, that is to say but 8per cent of what it may claim to have saved the public, and that of this small per centage it had to re-sink half again into the mine. Compare the profits made last year upon imports by merchants, engineering firms and shop keepers, and also the profits being made by tin mines and smelters. Despite its scarcity, coal is about the one commodity used in the F.M.S. which is still sold at comparatively cheap rates. You may therefore, be well wondering what grounds any miner could possibly have had for complaining that Malayan Collieries was profiteering. Their plea was a somewhat disingenuous one, and they must have known that it was. When first we introduced our coal to the market, considerable prejudice existed against it, and this prejudice one or two mine managers were acute enough to turn to their advantage, and I am not blaming them for having done it. They knew we had got to get someone to burn our product in order to be able to inform prospective customers that such and such a big mine was using the coal, so after we had given them free coal, had run trials for them and had proved to them beyond doubt the value of Rawang for fuel purposes, they drove hard bargains with us, demanding contracts to be supplied with coal over fairly long periods at prices that left us practically no margins of profit. We had to accept their terms, for we had to get a start with our coal sales somewhere and somehow. Towards the end of the year under review these contracts, I am happy to say, have been expiring, and, there being no longer any need to advertise the value of the coal, the rates to these particular mines have been put up to a parity with those being charged to the general public - the price for “smalls” being increased from $3.50 to $8 per ton. It was, therefore, possible for the managers of those mines to complain that at one sweep we had raised the cost to them of their coal supplies by over 100 per cent, and to anyone not in possession of the facts their grumbles must have sounded most justifiable. I might here mention that, although the class of coal supplied to big mines is usually “smalls” on large stationary boilers the result obtainable by “smalls”, as one consumer has admitted to us in writing, is equal to that given by our round coal, so that no difference need be made in the 5 to 7 ratio. If I am not tiring you, it may perhaps be interesting to go more fully into the case of the particular mine that, we believe, complained the most strongly to the Government. Its average monthly consumption of Rawang “smalls” is 640 tons, for which it is now being charged $8 a ton at pit-head. On the basis of the calculation already mentioned, Japanese coal would cost it $35.71 f.o.r. Singapore, so that even without taking extra freight into consideration it is at present saving at the rate of $212, 800 per annum. For nine months of our last financial year we only charged $3.50 a ton, or on average $4.14 for the year, so that on last years average ratio it’s saving was $215,000. Another mine, which we understand complained, is still getting its “ smalls” from us at $5 a ton and is burning on average 850 tons a month. This mine, is therefore, effecting a saving at the rate of $313,200 per annum, while for the last year it saved $276,800. These two customers alone, the directors and shareholders of which are closely connected, are now saving through Malayan Collieries, just on their annual coal bill only, at the rate of $526,000 per annum, while they saved for last year $491, 800, as against Malayan Collieries’ total net profit from all customers for the year, less 2 and half per cent amortisation, of $338,000. In other words, we saved during the last year for these two mines one and three quarter times the total net profit derived by Malayan Collieries from a whole year’s business derived with all its customers, both Government and private, and shall be saving even more for them this year. These are the two mines which we have reason to think accused us of profiteering. If you will, to take another aspect of the relations between us, compare the small profit which is all that Malayan Collieries can have possibly made out of them during its last financial year, by selling coal to the one at $5 and to other at an average of $4.14 per ton, with the saving these two mines effected during the same period by dealing with Malayan Collieries, the figures become even more startling, and their accusations the more astonishingly inexplicable. Allow me here to parenthetically remark that taking into the calculation the 12 and half per cent which we are today recommending should be declared, the pioneer shareholders in Malayan Collieries will have received since the Company's formation, five years ago, an average return of 6.6 per cent per annum, while holders of vendor shares like myself will have obtained even less: an average return of 4 per cent per annum. I trust and believe that that there are fatter yields in store for us, if only in store in the distant future: we certainly deserve them. I will assure the Government that, if Malayan Collieries Ltd., make only part of the big profit it might, the major portion of such profit will be spent in so improving the mine without increase of capital that after the war it will be able against all foreign competition not only to retain the whole of the F.M.S. coal trade, but to capture a great part of the Colonial shipping requirements, and I ask whether such consummation would not be an eminently desirable one for the F.M.S. to achieve. To secure the shipping trade the coal would, of course, have to be briquetted, its present form being unsuitable for bunkering, but out of the profits I am suggesting we might make could be erected a large briquetting plant. However, all we are at present suggesting is to raise the price to all our customers, Government and public alike, by about $1 a ton, or, if the Government will not consent to the price of their own supplies being increased, and as the Railway has a five year contract it probably will not agree to such a proposal, to raise that to the remainder by a larger amount. We are not proposing this particular increase in order to make out of profits those improvements to our mine which I have just remarked it would be to the ultimate benefit of the country were we permitted to do, but merely in order to pay higher rates to our labour and so to increase our, at present, stationary output. Your Board is extremely anxious, however, not only to maintain but to increase the Company’s profits in order to meet the particularly heavy expenditure ahead of it during the coming year. Even without provisions for a briquetting, a distillation and an improved screening plant, and steel gantries to replace the present wooden heapsteads, the Company has a programme for 1918/1919 involving an outlay of some $400,000, and how this is to be met and a dividend of 12 and half per cent for the year still paid is a problem. We shall require two more turbine pumps and motors, two more electrical generators, two more Babcock boilers with chain grate stokers, two coal cutters, two coal conveyors, a shale crushing plant and hydraulic sand stowage pipes, gravel pumps and other plant for the Kundang sand stowage scheme, railway sidings at Kundang for the same, an additional locomotive, further cables, a brick making plant, and a log sawing machine. Besides these we have to extend the engine house and boiler house, build a new office a new store, another bungalow, and a police station. The “ main roads” underground will have to be bricked throughout, which work must be put in hand at once, and as for this we can only use high class machine made bricks, besides the brick-making machinery to which I have already made reference, we shall further need to erect a new coal-fired brick kiln. The year following we shall require deal with the question of a briquetting and perhaps a distillation plant. So you see that, whatever be the amount of profits made, I can only hold out little hope of the Company paying more than about 12 and half per cent per annum for some years to come, and it may quite probably be an even lesser dividend than this. Before sitting down, I should like to briefly mention the great loss this Company has sustained by the sudden death at a comparatively early age of Mr. F. J. B. Dykes. Mr. Dykes was the staunchest supporter of and the most enthusiastic believer in the Company, amongst all its shareholders. When the former London owners, to whom the Government had given the concession, decided to get rid of it and offered it to several big London mining firms, including that of John Taylor and Sons, all of whom turned it down, and when Mr. Dykes wrote to the speaker advising him to come to London and to negotiate for the purchase, Mr. Dykes I am positive had but one single actuating motive: to benefit if he could, by opening up the coalfield, the country where he had spent so many years and in which he took such a disinterested interest. He could not bear to think that a deposit which he believed to be of such potential value for the future welfare of the F.M.S. should be suffered to lie in undeveloped neglect. I shall always consider it one of greatest compliments I have had paid to me that Mr. Dykes, when looking for someone to develop the place he had such an intense but single faith in, turned in his need to myself. I may say that Mr. Dykes never had a thought of making a penny out of the transactions whereby I acquired an option over what is now your property. I also wish to take the opportunity afforded by today’s meeting of expressing the Company’s debt to the Senior Warden of mines Mr. Eyre-Kenny, for the assistance and advice he has rendered us throughout the year, while to the acting General Manager of the Railways, Mr. Fox, and to his staff, particularly to that of the Construction Department, I should like to express the Company's gratitude for the help they have continued where possible to render to us in the matter of the construction of sidings, the loan of rails and many other ways. Mr. McCall and his staff on the mine have worked throughout a strenuous and trying year with the same untiring energy and devotion to which I last year made allusion, and I sincerely trust that shareholders will presently pass to Mr. McCall, and also to his assistants, a hearty vote of thanks, and will to accord them the usual bonus in appreciation of the good services they have rendered. I now beg formally to move that the report of the directors produced together with the statement of the Company’s accounts as at June 30th, 1918, duly edited, be now received, approved and adopted, which motion I shall ask Mr. Hengeller to second; but before putting it to the meeting, I shall first endeavor to answer to the best of my ability any questions that shareholders may like to put. There being no questions, Mr. A.A. Hengeller seconded the Chairman’s motion to adopt the report and accounts, which was carried. The Chairman then moved the payment of a dividend of 12 and half per cent, upon the share capital of the Company, the placing of a sum of $150,000 to a general reserve, and the caring forward of the balance to next year’s account, which was seconded by Mr. A. Grant Mackie and carried. The sum of $5,000 was voted to the directors in remuneration of their services for the past year. Mr. Grant Mackie and Mr. J. A. Russell were re-elected to seats on the board. Messrs. Evatt and Co. were re-elected auditors for the ensuing year at a fee to be fixed by the Directors. A vote of thanks was passed to Mr. McCall and his staff at the mine for their services during the past year, and a bonus of one month’s salary granted to the mine staff as mark of the Company’s appreciation. The meeting concluded with a vote of thanks to the Chairman and Directors.
6th Annual Report 1919
15% dividend.
The Malay Mail Tuesday 16 September 1919.p.8 and edited version in The Straits Times, 16 September 1919, Page 8
Malayan Collieries Coal Sales Total 179.831 Tons. 15 per cent Dividend. The Directors’ of Malayan Collieries, Ltd., in submitting their sixth annual report and statement of accounts for the year ended 30th June, 1919, state: Titles. - During the year application was made for conversion to a mining lease of a further 5,858 acres, making a total area held under lease approximately 9,235 acres. The prospecting licence was not renewed over the balance of the original concession. Mines and Plant. - An account of these will be found in the Mine Manager’s sub-joined report. Coal Sales. - These totalled 179,831 tons as against 161,272 for the last financial year, and 135,663 for the previous year. Prospecting. - Work was carried on vigorously during the year under review and a large extension in depth of the Great Seam has been proved. The Mine Manager states that this seam contains 5 millions tons of good clean coal. Private railway Line. - The extensions to the Company’s private line amounting to 3 and half miles were completed and are now in use. London Agents. - Messrs. J.D. Hewett and Co., of 101, Leadenhall Street, London, were appointed the Company’s financial agents. Consulting Engineers. - Messrs. Forster Brown and Rees of Cardiff and London continued as the Company’s consulting engineers. Profits. - The profits for the year, subject to Directors’ Fees, amount to $407,788.46; less interim dividend 5 per cent. paid on February 15th, 1919, $75,000.00; making $332,788.46; to which must be added the balance brought forward from last year’s account of $15,094.04; leaving $347, 882,5; which the Directors recommend should be dealt with as follows: - Payment of a final dividend of 10 per cent. on 150,000 shares, making 15 per cent for the year, $150,000.00; balance to be carried forward to the next year’s account, $47,882.50. Directors. – Mr. Adolf Alois Henggeler and Mr. John Archibald Russell were granted leave of absence in February this year, the latter appointing Mr. R. C. Russell to act as his alternate. The retiring Directors are the Hon. Mr. Robert Peebles Brash and Mr. Chew Kam Chuan, who being eligible offer themselves for re-election. Auditors. – Messrs. Evatt and Co. retire, but being eligible offer themselves for re-election. Mine Manager’s Report. The report of the Mine Manager Mr. T.L. McCall, is as follows: - Coal Sales.- The sales of coal for the year under review amount to 179,831 tons. This output was obtained as follows:- Main Seam South Mine 70,601 tons Main Seam North Mine 96,755 tons Great Seam No. 1 Opencast 5,791 tons Great Seam No. 2 Opencast 6,684 tons Total Coal Sales 179,831 South Mine, Main Seam. - The main incline has not been advanced but branch roads have been driven ahead and have proved an additional 300 feet of ground. The coal so proved is free from faults and continues to dip at an even grade. The footage of the exploration work ahead of the main incline would have been much greater but for the fact that that it was found necessary to flood a portion of the road to subdue a fire due to spontaneous combustion, and the subsequent unwatering occupied five months as it was impossible at the time to obtain a pump suitable for this work. In my report last year I mentioned that this mine had been opening up some badly faulted ground, which had seriously hampered development work, but this year it gives me pleasure to report that the workings have left the disturbed ground and are opening up excellent faces of coal. During the year some 470 feet of underground roadways have been arched over with brickwork, and the numerous cases of spontaneous combustion that occurred, where and when this work was in progress, are a certain indication of the necessity of this work, more especially where the main roads pass through faulted and broken ground. There have been numerous cases of spontaneous combustion in other parts of the mine other than those mentioned above, but in all cases they were promptly detected and dealt with before they had assumed serious proportions. North Mine, Main Seam. - The main incline has not been advanced as the development work is ahead of the established programme. Both No. 1 and No. 2 branch levels have made excellent ?progress, indeed No. 1 branch level face is now two thirds of a mile away from ?? ?line. To give a further idea of the area of the ground that has been opened up, it may here be mentioned that there are six miles of tram track in actual use in this mine, and moreover, there are several sections from which the coal has been exhausted, and the rails removed, which are not yet included in the above figure. Development work has proved this mine to be comparatively free from faults with a consequent reduction in areas of crushed coal as compared with the South Mine, and, as a result, there are fewer cases of spontaneous combustion and less timbering is required. Large areas of coal in this mine are now ready for working with the hydraulic stowage system. Pumping. - In order to deal with all the income of water from Nos. 1 and 2 benches of the South and North mine, a site for a pumping station has been selected in the South Mine and at present, is in course of preparation. This station will comprise four turbine pumps each capable of throwing 500 gallons per minute up to the surface. It is confidently expected that, once this station is running, the major part of the water troubles, that have hitherto beset us, will disappear. All the water that we have to contend with is merely local seepage water from the surface and consequently during dry seasons the income of water is small. As makers have hitherto been unable to supply pumps suitable for high lifts, we have been obliged to struggle with inadequate plant and makeshift arrangements during the wet weather. Ventilation. - The new Sirocco Fan, which has a capacity of 200,000 cubic feet of air per minute, is now erected and will be run as soon as there is sufficient electrical power to drive it. In connection with it a new ventilation shaft, 14 feet 2 inches in diameter, has been sunk and bricklined throughout. The depth of this shaft is 75 feet. Hydraulic Stowage. - Owing to circumstances beyond our control, we were unable to enter into possession of our land at Kundang, from whence the supply of sand will be drawn, until March of this year, and consequently this work is behind-hand, but now is being vigorously pushed forward. Colliery Railway and Siding Extension- It was not until last December that our first consignment of rails arrived from America, and it was possible to resume rail laying. All rail laying is now completed, with the exception of siding accommodation at Nos. 3 and 4 Opencasts. Siding accommodation for railway wagons has been provided at Nos. 1, 2 and 5 Opencasts and the necessary loading screens erected. In all some 3 and half miles of track have been laid and are in use. Opencast Mines. No. 1 Mine, Great Seam. - This mine had to be closed down for coal getting for some little time, whilst the necessary arrangements in the new loading arrangements were being made. This accounts for the reduced output of this mine. No. 2 Mine, Great Seam. - As soon as the railway connection was through, this mine started producing coal and during the five months that is has been at work has produced 6,684 tons. No. 3 Mine, Great Seam. - A big yardage of the overburden has been stripped and a valuable bed of clay exposed which overlies the coal. The spoil is used for making the railway embankment, which requires a considerable amount of material added to it. The clay is loaded into railway wagons and sent to our brickyard. No. 4 Mine, Great Seam. - A drainage shaft is at present being sunk, and now that the railway is through, machinery for hauling and pumping can be brought in, and stripping the overburden will be started. No. 5 Mine, Main Seam. - The site of this mine was located during the past year, and permission to work it having been obtained from the Mines Office, it is now being opened up, and coal showing at the bottom of the mine. A small electric generator has been purchased and is being installed at this mine to supply current for lighting all the opencasts. Machinery.-All deliveries of machinery both from England and America have been sadly behind-hand and want of plant has had an adverse effect on the output. All the plant installed has been kept in the highest state of efficiency and is giving excellent service. Plant at present on order comprises boilers, chimney, electrical generators, motors, pumps, electrical cables, coal cutters, coal conveyor, locomotive, piping, briquetting plant etc. Buildings. - A new office has been built as the requirements of the mine have outgrown the available accommodation of the original office. An additional bungalow has been completed and another is in the course of construction. Boring. - A number of bores have been put down during the past year, the most important of which has proved a large extension in depth of the Great Seam. The proved area of this seam now contains over 5 million tons of good clean coal. At present we are unable to prove this seam at a greater depth, as our boring plant is not capable of doing such work, but it is evident that an enormous tonnage of coal must exist to the dip of the bore referred to above. Brickyard. - A machine for making wire cut bricks has been purchased and put to work. In order to deal with our increased output, four additional updraft brick-kilns have been built as a temporary measure pending the erection of a continuous kiln. The finished brick is of a high class quality for engineering work and eminently suitable for use in underground arching, which owing to the great roof pressure requires a strong brick. The local hand made brick is absolutely useless for arching purposes as it will not stand the strain. The clay for making the bricks is mostly obtained from No. 3 Opencast Mine, though a small quantity is also obtained from the other opencast mines where a thin bed of clay overlies the coal. Wages have risen throughout the year in sympathy with the increase in the price of foodstuffs, and towards the end of the year, owing to the inflated price of rice, it was necessary to supply our coolies with rice at a price below market rates. In all there are some 1,500 coolies employed in and about the mine. In conclusion I would like to express my appreciation of the European Staff, who have worked well and willingly during the year. The annual meeting is to be held on Saturday, Sept 20th at the Hongkong and Shanghai Bank Buildings, Kuala Lumpur.
The Malay Mail, Monday September 22, 1919 and The Straits Times, 24 September 1919, Page 9
Malayan Collieries. Increasing the Output. Future profits. The sixth annual general meeting of shareholders in Malayan Collieries Limited, was held at the registered office of the Company, Hongkong and Shanghai Bank Buildings, Kuala Lumpur, on September 20th at 11 am. Mr. R. C. Russell presided. Mr J.J.F. McEwan for the secretaries, Messrs. J. A. Russell and Co., read the notice convening the meeting, and also the minutes of the last meeting, which were confirmed. The annual statement of accounts and balance sheet and the report of the directors and auditors were submitted to the meeting. The Chairman, in moving their adoption said: - Gentlemen:- The Report and accounts having been in your hands for the specified period, I shall, with your permission, take them as read. Before moving their adoption, however, I will, as usual, make a few comments upon the items on the balance sheet before you. Taking the debit side first, unclaimed dividends amount to $4,104.37. Sundry creditors $106,090.58, consists chiefly of wages, Government Royalty, and freight, also traders’ accounts due by the Company for June account, and has since been paid. Accrued expenditure is the proportion, applicable to the period under review, of the Company’s Consulting Engineers fees for the year 1919. Reserves total $272,500. Made up of a General Reserve Account $150,000, which was started last year, $10,000 for bad debts, and $112,500 mine amortization. This figure is made up of $75,000 placed to this reserve in the previous year and $37,500 charged to revenue for the present financial year. I will refer to this again when I come to the Profit and Loss Account. Turning now to the credit side, you will see “Mine Property” remains at the same figure, $1,003,474.50, as also does Mine Development Account at $100,000. It has not been considered necessary to depreciate this asset, as all work such as brick arching, etc., rendering the underground roads permanent, is now being charged to revenue. “Buildings” stand at $87,086,61. Depreciation on this item is somewhat heavier than formerly, in view of the fact that it has been considered advisable to increase the rate of depreciation on all temporary and semi permanent buildings. “Machinery and Plant”, including “plant in transit” is increased by $230,862,87 making a total of $521,123.54 from which has to be deducted $74,872.69 for depreciation. The large increase under this heading is represented in the cost of the new plant consisting of electrical locomotives for underground haulage, underground rails, new generator and electrical cables, cement gun, pumps concrete mixer, etc. The Company’s private railway line was extended during the year and now stands at $119,638.28, after allowing for depreciation, the additions amounting to $90,006,03. Our stock of materials such as mining stores, etc., stands at $88,259.11 as compared with stores on hand last year last valued at $63,817,03. In connection with the hydraulic sand stowage scheme, $18,917,03 was spent during the year. The late delivery of plant has been mainly responsible for the delay that has arisen, but now that the necessary materials are on their way from Home it is confidently to be expected that the scheme will be started shortly. All the necessary construction work here is making favourable progress. As soon as this system is working, it will be possible to commence coal getting by means of the experimental coal cutter and coal conveyor that were now due to arrive. At the closing of accounts we were owed $192,371.50, being mainly the amount of coal sales during June; although we have few bad debts you will observe that a considerable sum is required to ?nn??nce our coal sales. The item “Unexpired Expenditure” $1,858.54 represents quit rent and insurance paid but applicable to the ensuing year’s working. Cash with Company’s bankers at the close of the year amounted to $163,291.92 of which $125,000 was on fixed deposit. Cash at the mine amounted to $462.05. Turning now to the Profit and Loss Account you will notice that the loss of mining the year’s output was $931,264.49, exclusive of Government Royalty and prospecting expenses. The main items of this sum are wages and salaries $536,896.39, materials used $57,482,05, cost of brick arching and timbering the main roads underground $105, 267.54. $14,000 has been set aside for European leave salaries and passages for members of your staff already overdue leave, and a sum of $104,830,04 as depreciation; head office expenses, including the Company’s London consulting engineers’ fees and expenses, audit fee and also expenses in connection with the purchasing of plant in America total $47,684.41. A sum of $37,500 has been added to the Mine Amortization Reserve, being 2 and half per cent on the issued capital of the Company. Last year the sum so set aside was $75,000, and this reserve now stands at $112,500. The Company paid $44,957,90 to the Government as Royalty in accordance with the terms of their leases, and $5,822.05 was spent on prospecting, but this latter sum does not include European supervision, or depreciation of the diamond drill. The coal sales for the year yielded a gross return of $1,570,241.25, which after deducting the amount paid to the Railway Administration for freight, $161,699,05, gives net sales of $1,408,542.20, while sundry other items of revenue produced $18,790.70. After deducting all charges, the Company has made a profit for the year, subject to the payment of directors’ fees, of $407,788.46. To this profit has been added the balance of $15,094.04 brought forward from the previous year’s account making a total of $422,882.50. Your directors declared an interim dividend of 5 per cent on the 15th February, 1919, absorbing $75,000, leaving $347.882.50 available now for distribution. This sum however is not actually available for that purpose, since you will have noticed that a very large amount has been re-invested in the mine, in the shape of new plant etc., for which it would otherwise have been necessary to find new capital. Your directors have decided to recommend the payment of a final dividend of 10 per cent, making a total distribution for the year of 15 per cent. This will absorb $150 ,000, leaving $197,882.50 of which it is proposed to place $150,000 to the General Reserve Account, which will then stand at $300,000, leaving to be carried forward, subject to directors’ fees and a bonus to the mine staff, a balance of $47,882.50. You would now probably like to hear something regarding your property. You will have noticed in the directors’ report that the prospecting licence held by the Company has been handed back to Government after a total selection of 8,035 acres had been made. The reason for abandoning the prospecting licence, after taking up this area, and making with the original lease a total of 9,235 acres, is that from the prospecting results we have proved a portion of the area to be valueless from a coal point of view. The area now held by the Company amply covers the coal measures proved. A frequent question raised is what is the life of the mine. No true or exact figure of the available tonnage in the coalfield can be given, until it is possible to obtain boring-plant to prove the coal measures at the lower depths, but I can safely say that sufficient coal is available from our present data for a life of 30 years, even should our output rise to the quantity we eventually hope to produce, namely 400,000 tons per annum. This coal may rightly be termed in sight, and should our surmises as to the continuance in depth of the measures be correct, and we have every reason to suppose this to be so, then this coal would be only a fraction of the total amount available. Now as to attaining this output, our programme for the future entails a large expenditure, and I would state that during the present financial year we will have to purchase nearly $200,000 of plant, plant that is vitally necessary to maintain our present output, but, to materially increase it, without taking into consideration the cost of sinking a central shaft in addition to the present inclined haulage system, we shall have to spend about £50,000 or $430,000 on plant such as boilers, coal cutters and conveyors, brick kilns, electrical cables for pumps and coal cutters improved haulage and screening plant, log sawing machinery, another locomotive and a diamond drill. With regard to future profits, I might say that the development of the Company’s property is still in its infancy, and I can foresee a number of years of heavy expenditure in order to bring the property to that state of efficiency that is desirable in a coal mine, and, if we are to continue to pay a steady rate of dividend and also to compete successfully with outside collieries, it is absolutely essential that that your directors’ present policy of providing for extensions out of revenue, be continued for some time to come. Our competitors are more fortunately placed than ourselves, as our period of heavy expenditure coincides with a time when machinery is at least three times the amount our competitors paid for theirs, and our depreciation is accordingly a much heavier charge on our profits than is theirs. It is hoped by the introduction of coal cutters and other labour saving devices to increase the efficiency of our native labour, coal cutters taking up the heaviest manual work now necessary underground, and thereby to reduce the cost of production whilst increasing the output. Labour, although taking more kindly to coal mining, still demands a high rate of earning, and I am afraid that until conditions locally, both as to the cost of living and the cost of remitting to China, improve, we shall continue to have to pay our labour high rates. We are this year purchasing a briquetting plant capable of turning out 100 tons per 8 hour day. This plant we hope to have erected and producing by the spring of next year. The briquettes we intend manufacturing are ovoids, weighing 2 ozs. each, equally suitable for either mechanical stoking or hand firing, and have been satisfactorily proved on a commercial scale. Owing to their suitability for storage and the ease with which this class of fuel can be handled, we hope to be able to capture a portion of the bunkering trade of Singapore and Penang. There is, as you know, at present, a world shortage of coal, the production from most of the large coalfields has fallen considerably of late years, and I anticipate that the cost of imported coals to the Straits will remain at nearly its present figure, and this renders the time very favourable for the introduction of our briquettes. During the year under review the mine has been understaffed, and it has been impossible to obtain any new assistants. Mr. McCall and his assistants have loyally responded to the heavy demands made on them and have worked exceedingly well. I shall later ask you to pass them a hearty vote of thanks and the usual bonus for their good work. We have now, however, obtained three new assistants from Home and it is to be hoped that Mr. McCall, our General Manager and Mr. Porteous, our Engineer, will be able to take their leave, now long overdue. I now beg formally to move that the report of the directors produced, together with the statement of the Company’s accounts as at June 30th 1919, duly audited, be now received approved and adopted, which motion I will ask Mr. Chew Kam Chuan to second; but before putting it to the meeting I shall first endeavour to answer to the best of my ability any questions that shareholders present may care to put. There being no questions Mr. Chew Kam Chuan seconded the Chairman’s motion to adopt the report and accounts, which was carried. The Chairman then moved the payment of a final dividend of 10 per cent making 15 per cent for the year upon the share capital of the Company, the placing of $150,000 to General Reserve account and the carrying forward of the balance to next year’s account, which was seconded by Mr Chew Kam Chuan. The sum of $5,000 was voted to the directors in remuneration of their services for the past year. The Hon. Mr. R. P. Brash and Mr. Chew Kam Chuan were re-elected to seats on the board. Messrs. Evatt and Co. were re-elected auditors for the ensuing year at a fee of $1,000. A vote of thanks was passed to Mr. McCall and his staff on the mine for their services during the past year and a bonus of one month’s salary granted as a mark of the Company’s appreciation. The meeting concluded with a vote of thanks to the Chairman and the directors.
Letter: from R.C. Russell, Malayan Collieries Limited. J.A Russell & Co., Kuala Lumpur to The Superintendent, Chandu Monopoly, Kuala Lumpur. 14th February 1920.
Sir, We have the honour to address you on the subject of the Chandu License, issued to Yap Eng Hock and another, to sell Chandu on Malayan Collieries at Batu Arang. 2. The amount allowed for 1920 is 350 Tahils or 140,000 packets, whereas in 1918 the consumption was 166,000 packets and in 1919 151,000. We are of the opinion that the quantity to be allowed for 1920 is inadequate for the demand, and would point out from 1918 to 1920 our labour force has increased from 900 to 1300 adult chinese males and will go on increasing. 3. It is imperative for us to be able to ensure a sufficient supply of Chandu for the Labour Force, otherwise the coolies will not continue working, and at the present time with a big shortage of fuel everywhere we do not wish, in the interests of both the Railways and Miners, to lose any coolies. 4. We would ask that our supply be increased from 350 Tahils to 400 Tahils and trust this will receive your consideration. We have, etc:, Per Pro J. A. Russell and Co., Sd. R. C. Russell.
Document in the National Archives of Malaysia, Selangor Secretariat, File 1436 /1920. Re. Monthly supply of Chandu to the licensee of the coal mines Rawang.
Letter: From the Chandu Monopoly Offices, Kuala Lumpur, to The Secretary to Resident, Selangor. Corr. No. (3) in 85/1920 Sec 1436/20 5th March 1920.
Monthly supply of chandu to the licensee at the Coal Mines, Rawang. Sir, I have the honour to forward for the Resident’s consideration copy of a letter I have received from Messrs. J. A. Russell and Co: Kuala Lumpur in connection with the monthly supply of chandu to the Licensee at the Coal Mines, Rawang. 2. Under the new rate the Licensee gets 346 tahils per mensum. His average for 1919 was 384 tahils per mensum. 3. Mr. Russell admits in his letter that the consumption of chandu was less in 1919 than it was in 1918 in spite of the apparent increase in the number of coolies employed. 4. I cannot recommend that the increase asked for be allowed. If we grant it in one case, all other Licensees will expect the same treatment. I have the honour to be Sir, Your obedient servant R ?S. ?Wintershaw, Superintendent, Chandu Monopoly Sel: N.S. & Ulu Pahang.
Document in the National Archives of Malaysia 1436/20
Letter from Secretary to Resident, Kuala Lumpur, Selangor, to Messrs. J. A. Russell & Co., Kuala Lumpur 8 April, 1920.
Increase in the supply of Chandu to Licensee at the Coal Mines, Rawang. Gentlemen. In reply to your letter of the 14th February, 1920, addressed to the Superintendent, Chandu Monopoly, asking for an increase in the supply of Chandu to Yap Eng Hock and another, I am directed to say that the reduction has been made in accordance with the policy of the Government to restrict consumption of Chandu throughout the State and that the Resident regrets that he does not see his way to make an exception in your favour. 2. I am to point out that it appears from your letter, under reply, that there was an actual decrease in consumption in 1919 as compared to 1918, although it is not stated that there was any decrease in the labour force employed, and there was no advance in the price charged until the end of 1919,and further that there is a reason to believe that the Chandu habit is one which the majority of coolies acquire for the first time after coming to this country, and that restriction of facilities for obtaining Chandu and increase of price are therefore calculated to reduce the proportion of smokers in the labour force. I have the honour to be, Gentlemen, Your obedient servant, Sd. C.W. Harrison, Secretary to Resident, Selangor.
Document in the National Archives of Malaysia (2) in 1436/20
Letter from R.C. Russell Malayan Collieries Limited, Kula Lumpur to Secretary to Resident, Selangor. 15th April 1920
Increase of Chandu Supplies to Licensee at Batu Arang. Sir, We have the honour to acknowledge the receipt of your letter of the 8th instant numbered (2) in 1436/20 on the above subject and note that the Resident cannot agree with our request. 2. We would, however, point out that our Labour force is not composed of Sinkehs(*) but consists entirely of experienced miners, who have been resident in this country for years. We have recently raised our hewing rates to attract more skilled labour but this effort to increase production, on behalf of the Railways and Miners, will be brought to naught as no miners will seek work at the Colliery if they are deprived of Opium. 3. It is true that Chandu sales at the Licensee’s shop decreased in 1919 as compared to 1918, but the consumption did not. With a increased train service the Colliery Labour made more frequent visits to Kuala Lumpur where some purchased their requirements, the reason being there was a suspicion that the Colliery Licensee sold short weight, (this has been disproved) and also that the purchasers in Kuala Lumpur preferred to give their custom to their friends in the trade. With the universal curtailment of supplies in 1920 to License holders, the miners have been unable to purchase in Kuala Lumpur, as the shops would rather supply local residents with their 1919 quantities, and are enabled to do so by refusing sales to our miners. The Colliery Labourers therefore return to the Colliery Chandu shop for their supplies, and naturally find that there is not sufficient for all needs. 4. Coal mining in this country is far from congenial work and we have to endeavour to provide our coolies with all the usual amenities of life in Batu Arang. (as an instance we might state that we are supplying them with rice at 84 cents per gatang) in order to keep them contented. The majority of the Labour Force have been Opium smokers for many years, and the underground miner in this country finds that he requires a narcotic after an arduous days work in the Mine and seeks it in Chandu. If the latter is not forthcoming he naturally turns to some other form of labour or employment in which the work is not so arduous and his need for Chandu not so great. 5. We would ask that this matter be reconsidered by the Government, it is vitally necessary to the country at large and the Railways and Tin Miners in particular that we maintain our output and this can only be done by keeping our Labour Force contented. We have the honour to be, Sir, Your obedient servants, Per Pro J. A. Russell and Co., R. C. Russell.
Document in the National Archives of Malaysia 1436/20
(*)new Chinese migrants
Letter from the Office of Secretary to the Resident to J. C Russell. Esq., Kuala Lumpur, 19 April 1920.
Increase of chandu supplies to Licensee at Batu Arang Sir, In reply to your letter of the 15th April, regarding the increase to the supply of chandu to the Licensee at Batu Arang, I am directed to inform you that in view of your representations the Resident will allow the increase to four hundred (400) tahils as asked for to commence from the 1st April, 1920. I have the honour to be, Sir, Your obedient servant, (Stamped) Sd. N.F.H.Mather for Secretary to Resident, Selangor. The Superintendent, Chandu Monopoly, Kuala Lumpur. Forwarded for your information. N.F.H.Mather for Secretary to Resident, Selangor.
Document in the National Archives of Malaysia (4) in 1436/20
The Singapore Free Press and Mercantile Advertiser (1884-1942), 2 June 1920, Page 12 and The Straits Times, 4 June 1920, Page 10 and The Malay Mail, 31 April 1920, p.9
MALYAN COLLERIES. Output reduced by Fire. The following official statement has been issued by Malayan Collieries, Ltd:- “ We regret to inform you that, owing to an obstruction of colliery haulage ways produced by a serious fire, which occurred on the 5th and 6th May, the output of coal will be reduced by about 50 per cent pending repairs. While every effort to increase production is being made, we can hold out little hope of resuming normal supplies before the end of June” . In reply to an enquiry by our representative, Messrs. J. A. Russell and Co. stated:- The fire referred to in the above notice occurred in the north half of the mine, and though small was so located as to block one of the main passage ways. Since the date of the notification referred to, the fire has been extinguished, and a new passage way is partly completed. It is considered that the statement as to resumption of normal outputs made in the notice will prove absolutely correct. Everything is working out that way, and it should be added that fires in the colliery have previously occurred, and may be expected to occur for another year or so, as a necessary incident in opening up a mine in coal of this quality. This fire only differs from previous ones in that it occurred in one of the main passages, and therefore, had a prejudicial effect on the output. The actual loss in burnt coal is quite insignificant.
The Straits Times, 29 June 1920, Page 9
Fuel in the F.M.S. Malayan Collieries and The Railway. We take the following from the Malay Mail:- We published in our issue of June 10 a copy of a communication which we were told was being prepared and would be issued to all the larger customers of the Malayan Collieries. It was suggested in this circular letter and from the interview accorded to our representative by Messrs. J. A. Russell and Co., that the real difficulty with which the colliery has to contend is the continuous shortage of railway coal wagons. Such a statement obviously invited a reply from the F.M.S. Railways, and in response to our inquiries the general manager, Mr. P. A. Anthony C.M.G. expressed the opinion this suggestion did not represent the facts and made the following statement:- “ I have on several occasions asked members of the firm (of Messrs. J. A. Russell and Co.) when an increased output could be given. It has been our intention to use coal in substitution for wood fuel for locomotives in the Kuala Lumpur district, as soon as the colliery was in a position to supply it. When our present contract was placed in 1917, I was desirous of increasing the quantity for this reason, but was only able to obtain a promise of 25 per cent. of the output in excess of 17,000 tons per mensum. Now that the colliery has accepted a further contract for coal we are at once making arrangements to use coal instead of wood. It is greatly to our advantage to do so as it assists the wagon supply to the extent that one truck of Rawang coal is the equivalent to two trucks of firewood and therefore releases half the wagons we are now using for locomotive fuel, for other traffic. All the firewood cutters at Port Swettenham have been on strike and our contractors are demanding an increased rate of 25 per cent on their contracts, which we are not prepared to accede to. If they are willing to resume at the old rates it is our intention, in conjunction with the Forest Department, to retail firewood supplied under existing contracts with the railway to the public for domestic use. The price in Brickfields goods- yard will be $8 per ton, equivalent to $7.15 per cart load of 15 piculs, purchases making their own arrangements for loading and carting. 0. Coal Preferred. 0. The extended use of Malayan Coal in substitution for wood fuel is greatly to the advantage of the railway for the reasons I have given and I hope miners will adopt it. It would greatly improve wagon supply. 0. I consider that the Railway Department has got through the difficult period of the war in a by no means discreditable manner as regards the handling of goods traffic. In 1918 we carried 1,450,000 tons of goods by improved methods of handling goods vehicles as we used to handle 1,140,000 tons in 1914. 0. In 1918 and 1919 we placed very large orders in Japan, Canada and England for a total of 2,450 additional wagons which, when delivered, will give us an increase of over 50 per cent, in the number of wagons. Five hundred of these vehicles have already been put into traffic and it is fully expected that the whole of them will be turned out by the end of 1921. 0. Correspondence with Collieries.
Mr. Anthony also supplied the following copies of correspondence with Messrs. J. A. Russell and Co:- 0. June 16 0. Gentlemen,- I have the honour to refer to previous correspondence on the subject of supply of wagons to the Malayan Colliery and also to the circular dated June 9, addressed to the shareholders of the colliery, a copy of which appears in the Malay Mail of June 10, 1920. 0. 2 I observe that in this circular you state there is no real fuel shortage in the F.M.S., the fundamental cause of the consumers being unable to obtain it being the shortage of railway rolling stock and but for this deficiency the Malayan Colliery could have a year ago satisfied all local fuel requirements. I do not agree that such is the case. 0. 3 I have on several occasions enquired of your manager, Mr. Mc Call, and your partners when it was anticipated that the output of coal from the colliery could be increased but was informed that no definite date could be given as it depended on the arrival of additional plant and machinery. Had it been possible to increase the output, I was prepared to take a larger quantity for the railway in place of wood fuel which for a long time has been unreliable. An ample supply of wagons which are now used for wood fuel for the railway is available and as one ton of Malayan coal is the equivalent of two tons of firewood there is considerable economy in the numbers of wagons required. I observe that the best month’s output in 1919 was 18,228 tons or 607 tons dium and in 1920 18,496 tons. 0. 4. On April 27 last, I enquired whether you would be prepared to take up a further contract for the supply of 5,000 tons of coal per mensum for a period of 3 to 5 years in addition to your present contract. On May 4 1920 you informed me that you were considering a scheme for increasing the collieries output but that you would not know for another month if it would prove feasible, and that even if successful in increasing the output you would not be obtaining it for another three to four months from that date, and that even then, you do not anticipate being able to give us anything like 5,000 tons per mensum. On June 4, you wrote me offering a further 5,000 tons per mensum for a year. This we have accepted and are transferring the wagons hitherto used for locomotive wood fuel to the colliery to load coal under this contract. It is evident that the anticipated increase in output is owing to Mr. J. A. Russell’s recent decision to concentrate on the open cast workings whilst the change in the method of working the deep mine is being effected, in order to avoid the fires which have hitherto affected the output. 0. Co Operation Essential 0. 5. There will always be periods when the colliery will be at a standstill unless you can take steps, to store even a days output wither in bins or otherwise as it is inevitable that delays will occur in returning wagons owing to delays in unloading or other causes, whilst a washout on the railway to which we will always be liable might stop the wagon supply entirely for a day or more. Many of these wagons travel 500 miles before they get back to the colliery. 0. 6. The necessity of adjusting consignments of coal so that consignees do not receive more than they can handle without causing delay to the to wagons is also of importance and has been the cause of serious complaints of wagon shortage this month. 0. 7. We are introducing the running of special locomotive coal trains to certain stations so that wagons will be returned to the colliery in quicker time than is the case when conveyed by ordinary trains. We have an extensive wagon building programme in hand and are constantly increasing our stock of fuel wagons. 0. If your manager will continue to work in co- operation with the railway in future as Mr. McCall has done in the past, I am confident that we can meet your demands even if they reach 30,000 tons per mensum which Mr. J. J. (sic) Russell has told me he hopes to do provided that the increase is a gradual one and that miners adopt coal in place of wood fuel, thus releasing double the number of fuel wagons now used for wood. 0. 9. Demands for wagons should be kept within the limits of actual requirements. You are demanding to-day wagons to carry 1,200 tons of coal or 30,000 tons per mensum, 6,000 tons in excess of the figures which Mr. J. A. Russell gave me yesterday as his ultimate maximum demand, whilst on May 4 you informed me that you will not be obtaining an increased output for another three or four months from that date. We can only promise to give you a steadily increasing supply of wagons. I observe that in 1918 we supplied 80 per cent. of your wagon demands which fluctuated sometimes as much as 40 per cent to 50 per cent from month to month. We cannot do other than give you a regular supply, gradually increasing as more wagons become available. 0. I have the honour, etc. (Sd.) P.A. Anthony General Manager 0. Messrs. Russell and Co. 0. KL. 0. Malayan Collieries, Ltd., Agents and Secretaries, J, A, Russell and Co, K.L.
May 4, 1920 0. Sir,- With further reference to your communication of April 27, 1920, numbered G.M.R. 180-20, upon the subject of an additional contract with the railway department for the supply of coal, we have the honour to inform you that we are at present considering a scheme for increasing the colliery output but that we shall not know for about another month from date whether or not our scheme is likely to prove feasible. 0. We shall therefore, not be in a position to give a definite reply to your query until then; and even if successful in increasing our output we shall not be obtaining an increased output for another three to four months from the present date. 0. We shall do our best to let you have an increased supply, but do not think it that it would be anything like an additional 5,000 tons per month- We have, etc., For Malayan Collieries, J. A. Russell and Co. The General Manager, F.M.S. Railways, K.L.
The Straits Times, 16 July 1920, Page 9 and The Malay Mail, 13 July, 1920, p.9 Fuel in the F.M.S. Malayan Collieries and The Railways.
The following has been sent to us for publication:- Sir,- It is not our intention to continue the publication of our private correspondence with the Railway Administration on the subject of coal output and truck shortage; but as we had no chance of replying to the General Manager’s letter to us of June 16 before a copy of the same had appeared in your issue of June 22nd, and as this correspondence seems to have caused a considerable amount of local interest, and as further, the matter is one relating to the public and vital question of fuel shortage, we think we are justified in sending you a copy of our reply of 1st July to the General Manager of the F.M.S. Railways. The publication of this in your paper may seem somewhat belated, but we did not wish to publish our final reply until the Railway Administration had had a chance of answering it. Further justification for publication will be found in paragraphs 10 and 11 of our letter, which outline a policy that if adopted should effectually relieve the existing fuel shortage in the Malay Peninsula. While apologising for the length of this communication, it would not be right for us to conclude without adding that since our correspondence with the Railway Administration commenced the supply of railway trucks has greatly improved, and, we are convinced, will continue to improve. For this and for his help and invariable courtesy we are exceedingly indebted to the General Manager of the Railways. Yours, etc., J. A. RUSSELL & CO. The following, dated July 1, is Messrs. J. A. Russell and Co.’s reply to the General Manager, F.M.S. Railways:- 0. Sir, - We thank you for your favour of 16th June, and must apologise for the delay in replying, but an answer, since your letter traverses matters occurring as far back as 1918, naturally entailed considering reference to files. 0. 2 Your Para 2. We note your views regarding fuel shortage and repeat that had we been assured of sufficient trucks we could have fulfilled all local fuel requirements a year ago with the help of the new workings which we then opened. We may add that Mr. McCall, our Mine Manager, was of the same opinion. 0. 3. Your Para 3. Mr. McCall on every occasion that the question was raised complained to us of truck shortage. We are well aware that he also asked for, and was permitted to order, much additional plant and machinery, since he and we agreed that the leisure time afforded him by the truck shortage could not be better utilised than by thoroughly equipping the mine in preparation for better times, which we were assured would not be long delayed. 0. The principal fact is that a year ago the new workings had been connected by rail, but that operation had to be abandoned owing to truck shortage. Upon Mr. J. A. Russell being informed by you in May that there was no longer any truck shortage, the new workings were equipped with labour and locally obtained plant, and within a month were turning out considerable quantities of coal. We maintain that this could have been accomplished a year ago. 0. 4. Your Para 4. The conditions on May 4 were as follows:- 0. “ We were aware that a goaf(*) fire, which due to its position might be serious, existed. Thus until we had completely extinguished the fire, it would have been inadvisable to make any definite promise. As you know, we were for a time hard put to supply your due quantity of 5,000 tons. It was, you will observe, a month to the day when you received our offer to supply your additional requirements, and you began to take that quantity five days later. We would consider a complaint that we had offered the extra 5,000 on May 4 and failed to supply it on 10th a reasonable one; but as regards doing better than we promised, we do not think we have anything to be ashamed of. 0. 5. Your Para 5. As regards your suggestion of storing the coal. So far, we have never received a surplus of trucks on any single day, and it will be plain that until we are thus favoured the mine forms the best storage bin. But we have experiments in hand on a large scale for this very purpose, and if certain technical difficulties, which are known to you, can be overcome the erection of shortage bins will be proceeded with. 0. 6 . Your Para 6. This matter has been repeatedly raised by the F.M.S Railways. We have investigated every case and forwarded our despatch lists to the F.M.S Railways. We have asked for an investigation into the causes of the delays en route, which are entirely responsible for the trouble, since we dispatch the coal in equal quantities each day, while the consignees receive as much as five days dispatches on one day. 0. We would ask you to add to your list of complainants of irregular deliveries the name of Messrs. Topham, Jones and Railton of Prai. We enclose a copy of their letter, and would add that their representatives favoured us with a personal call on the matter, examined our despatch sheets, and, after expressing his entire satisfaction with our despatching, left to ask for a personal interview with the General Manager of the F.M.S. Railways, on the subject of deliveries of coal. 0. We trust you will excuse our entering into detail on this particular case, but the opinion of a large and experienced firm of public works contractors such as Messrs. Topham, Jones and Railton carries weight, and their complaints are prima facie, extremely unlikely to be other than well founded. A small firm, inexperienced in handling railways consignments, may of course complain when the difficulty arises solely from their being unable to hire coolies at short notice. 0. 7. Your Para 7. We have never doubted that the F.M.S. Railways as an organisation are as anxious as ourselves to cope with truck shortage. 0. 8. Your Para 8. We consider our Manager has co -operated with the Railways in every possible way, but would naturally be glad to have details of any action of his you may see fit to object to. 0. If, however, you refer to the pro rata reduction to the F.M.S. Railways when the mine is kept idle by wagon shortage, we as Agents are entirely responsible for this, and it is bare justice to our other customers, many of whom have contracts. 0. 9. Your Para 9 This paragraph supplies its own answer. We have known for several years that the F.M.S. Railways considered a supply amounting to 80 per cent of our requirements ample and satisfactory, though we have not previously stated it officially. We naturally indent for 20per cent extras. The lists of hours the mine has stood idle for want of trucks which we have sent you on many occasions will show that even the 80 per cent attained in 1918 has not been kept up in 1920. 0. 10. The total industrial consumption of firewood in the F.M.S. is estimated at 1,474,000 tons yearly. We conceive that an extra supply of 40,000 tons of coal monthly, which coal being at least twice as efficient as wood, means 960,000 tons of firewood annually, must in some degree ameliorate the fuel shortage. 0. We believe that the F.M.S. Railways and the Malayan Collieries working in conjunction can give the people of the F.M.S this additional supply. 0. 11. As proof that we are prepared to do our part we enclose a formal offer to the F.M.S. Railways of an additional 10,000 tons monthly making 20,000 tons in all, that is a third of the maximum output at present contemplated, subject to all the penalties provided in the existing contract, but conditional on the Collieries being supplied each month with sufficient trucks to carry their other customers coal as well as the railway requirements, the total truck supply not to exceed 60,000 tons monthly. This 60,000 tons compared with our maximum monthly output to date which you give as in Para 3 as 18, 496 tons makes 41,500 tons per month. 0. 12. We realise that such an increase, rapidly made, entails trouble and hard work to all concerned. But we will welcome the opportunity. 0. Also, while we feel no compunction in making complaints when we have evidence to back them, we would much prefer to supply coal to all and sundry (with preference to the F.M.S. Railways) on a thoroughly amicable basis. 0. 13. We enclose copies of five telegrams received lately through the Station Master, Batu Arang. This seems to be a new phase of difficulty, and would appear like the matter raised in Para 6 of your letter to be produced by irregular deliveries of coal as distinct from irregular despatches. We have the honour to be, Sir, Your obedient servants, J.A. Russell and Co.
(*) Goaf \Goaf\; n.; pl. Goafsor Goaves. [Cf. 1st Gob.] (Mining) That part of a mine from which the mineral has been partially or wholly removed; the waste left in old workings; -- called also gob . [1913 Webster]
Report Of Malayan Collieries Limited. Directors Report and Statement of Accounts For the year ended 30th June, 1920. To be presented at the Seventh Annual General Meeting of the Shareholders to be held at the Registered Offices of the Company, Hong Kong and Shanghai Bank Buildings, Kuala Lumpur on Friday the 15th day of October, 1920 at 2.30 pm.
Malayan Collieries Limited. Report of the Directors for the year ended 30th June, 1920. The Directors have pleasure in submitting their Seventh Annual Report and Statement of Accounts for the year ended 30th June, 1920. TITLES. - The Company has now duly signed but not yet received delivery of the titles to all its property. The total area is 8,961 acres, 2 roods, 26 poles, against an approximate area claimed by the Company of 9,235 acres. The difference over the 200 acres is land excised by the Government from the Company’s property for a Railway Reserve and Village Site. MINES AND PLANT. - An account of these will be found in the Acting Mine- Manager’s sub –joined report. Some photographs of the Mine will be found at the end of this report. COAL SALES. - These totalled 200,705 tons as against 179,834 for the last financial year, and 161,272 for the previous year. STAFF. - Mr. T. L. McCall, Mine-Manager, went home on long-overdue leave of absence, Mr. E. England acting for him from the 15th April, 1920. Mr. F. J. Porteous, Chief Mechanical Engineer, who like Mr. McCall has been with the Company since its inception, left on leave of absence at the same time. Mr. J. G. Swanstone acting in his stead. LONDON AGENTS. - Messrs. W. R. Loxley & Co., 34 Lime Street E. C. 3 were appointed the Company’s financial and forwarding agents in Great Britain. CONSULTING ENGINEERS. – Messrs. Forster Brown & Rees of Cardiff and London continued as the Company’s consulting engineers. PROFITS- The profits for the year subject to Director’s fees, amount to $505,872.94. Less interim dividend 5 per cent paid 15th February 1920 $75,000.00 Total $430,872.94 to which must be added the balance brought forward from last year’s account of $39,797.50 Total: $470,670.44. Which the Directors recommend should be dealt with as follows: - payment of a final dividend of 20 per cent on 150,000 shares, making 25 per cent for the year $300.000.00 Transfer to General Reserve 150,000.00, Balance to be carried forward to next year’s account 20,670.44 Total $470,670.44. DIRECTOTRS.- The retiring directors are Mr. Adolf Alois Henggeler and Mr. John Archibald Russell, who being eligible offer themselves for re- election. AUDITORS. - Messrs. Evatt & Co retire, but being eligible offer themselves for re-election. By Order of the Board J. A. Russell & Co., Managing Agents and Secretaries Kuala Lumpur, 30th September, 1920. Malayan Collieries Limited Acting Mine-Manager’s Report to the Directors for the year ended 30th June 1920. Sirs, I have the honour to submit herewith my annual report of the work done on your property for the financial year ending 30th June 1920. COAL SALES.- The sales of coal for the year under review amount to 200,707 tons. SOUTH MINE-MAIN SEAM- The main incline was advanced some 300 feet during the year and has now reached a distance of 1,850 feet measuring along the slope from the surface. As predicted in the report for 1916-1917: - No. 1 Bench level has been abandoned, all the coal that it was possible to extract having been worked. No. 2 Bench level has been extended beyond the area worked by No. 1 bench level. No. 3 Bench level at the bottom of the mine has opened up an excellent face of clean coal, and so far no faulted ground has been encountered. During the year 1,070 feet of arching have been completed, and the total length of roadway now arched is 1,740 feet. There have been numerous cases of spontaneous combustion in the mine, but all have been successfully dealt with. NORTH MINE-MAIN SEAM- The main incline has not been advanced during the Year. No. 1 and 2 bench levels have made good progress and there is large tonnage of coal in sight ready to be worked by means of the coal cutters and hydraulic stowage. A serious fire broke out on the No. 1 Bench level, 150 feet away from the main line, but was successfully sealed off. This entailed withdrawing one pump which had been installed and sealing off a portion of the road-way. The fire produced a large fall of roof in the vicinity. New Jig levels have now been opened up from No. 2 bench level to No. 1 bench level, and the coal from No. 1 Bench is now lowered down to No. 2 bench level. Two electric storage-battery locomotives arrived and have been at work ever since in this mine. They are admirably suited to the work, are capable of handling large output and so far have given every satisfaction. Later in the year delivery was ?taken (missing words) g-wall cutter and this has been at work for several months with most (missing words) -wall coal conveyor has also been received, and this is being installed (missing words) It is intended to ? install (rest of sentence missing) PUMPING. - All motors, pumps and pipes on order were taken delivery of during the year. The new pump room in the South Mine is now completed, and the large turbine pumps are being installed. When completed, these will adequately deal with all excess water from hydraulic stowage operations and the extra water entering the mine during rainy seasons. VENTILATION. - The new Sirocco Fan was started up during the year and the increased quantity of air circulating in the mines has greatly ameliorated the conditions underground. It may also be stated that the increased ventilation has undoubtedly reduced the number of cases of spontaneous combustion. HYDRAULIC STOWAGE.- This is now installed in the North Mine No. 1 Section on the coal cutting face. The advantages expected from this method of operation have been fully obtained- the full thickness of coal seam can be won, and fires reduced to a minimum. A good supply of sand is now available from the Kundang Mine and makes ideal stowage material. COLLIERY RAILWAY AND SIDINGS EXTENSIONS. - Several new sidings have been completed during the year. The length of rack owned by the Colliery which is in actual use now totals 3 ¾ miles OPEN CAST MINES. - Additional boilers and winches have been installed at 1.2 and 5 Open cast mines. This will produce an increased output. Gantrys, Boilers and Winches are now under erection at No. 3, 4 and 6 Open cast mines. Coal will be produced at No. 4 and 6 Open cast mines in a very short period. These two mines will then give a large output. MACHINERY.- During the year two additional Babcock & Wilcox boilers were started up. These boilers are fitted with automatic chain-gate stokers. The results are most satisfactory. Chain-gate stokers have now arrived for No. 1 and 2 B. & W. boilers, to replace the hand-fired step grate furnace. No. 5 and 6 B. and W. boilers have now arrived. Three new electrical generators of 300 killowatts capacity each were received during the year, and are now erected and in use. The necessary extensions to the switch board were received and have been erected. Plant at present on order comprises: - New Smoke Stack, Railway Locomotive, Boiler feed pump, Cables and Briquetting Machinery. BRIQUETTING. - The new railway sidings are completed and foundations for the machinery house are under construction. Part of the plant has arrived. BUILDINGS.- Two new Bungalows were erected during the year. Two more are under construction. The Police Station and Quarters are now erected and occupied by the police. BRICK YARD.- 288 Laksas of bricks were made and burnt during the year for use in and about the mines. The site for the new Brick Yard is being cleared. LABOUR.- There are now some 2,500 coolies on the mines. Wages have risen steadily during the year owing to increased cost of living. There are 140 acres under foodstuffs. KUNDANG WORKINGS (HYDRAULIC STOWAGE).- This mine is now opened up and the permanent sluice boxes erected and ready for use. The mine now produces a good supply of sand for the stowing operations. STAFF.- The mine staff at Batu Arang now comprises 11 Europeans, the increase being the two Assistant Engineers, two Surveyors, and one Assistant Manager. Mr. McCall, Mine-Manager, and Mr. Porteous, Chief Engineer, went on leave from 15th April, 1920, since when the writer has acted as Mine –Manager. In conclusion I wish to express my hearty thanks to the Staff who have given me during Mr. McCall’s absence every possible assistance. Your Obedient Servant, E. England, Acting Mine Manager. Batu Arang 15 August 1920.
Document in the National Archives of Malaysia (The report includes: 4 pages of Accounts , 4 pages of photographs in pairs and a double page panorama photograph of the mine. See left and below.)
The Malay Mail October 19th 1920.
The seventh annual general meeting of the shareholders in Malayan Collieries, Limited, was held at the registered offices of the Company, Hongkong and Shanghai buildings, Kuala Lumpur, on October 15th, at 2.30pm Mr. J. A. Russell presiding. Mr. W. S. Coutts for the secretaries read the notice convening the meeting. The annual statement of accounts and balance sheet and the report of the directors and auditors were submitted to the meeting. The Chairman in moving their adoption said: Gentlemen: - the reports and accounts having been in your hands for the specified period, I shall, with your mission, take them as read. Before moving their adoption however, I will, as has been my yearly custom, make a few comments upon some of the items in the balance sheet before you. Taking the debit side first, Sundry Creditors totaling to $159,744.84 consists of wages, freight Government Royalty and traders’ accounts due by the Company for June account. Since the closing of the Company’s accounts, the whole of the above liability has been met. Under the caption F.M.S. Government” is the sum $25,000. This represents the Company’s liability for land premium to the F.M.S. Government for the area which the Company has hitherto held under Prospecting License but is now taking up under Mining Lease. In the Directors’ Report you will see that in converting our title to the land from Prospecting License to Mining Lease, the Government has excised some 200 acres. This action we consider to be a somewhat arbitrary one, for in our opinion whatever the Government may do with the surface of the land, it cannot fairly deprive us of the right held under our Prospecting License to the issue of a title to mine any coal that may be beneath that surface. These 200 odd acres, were without consulting us and without compensation, excised from our title. We naturally would not do anything by mining or other action to injure the railway line, as it would certainly not be I our interest to do so; but underground mining could be conducted without causing any harm. The Government in a brief communication has further asked us to hand back to them the already issued title to our first selected block, the one which we are now actively mining, for what is termed “ emendation”. From Government survey plans we see that this Portion 1285 with an area of 1282 acres has vanished and in its place is now Portion 1364 with an area of only 1266 acres. We know nothing officially about either this Portion 1364 or another new portion, No. 1365, which now appears for the first time on the Government survey plans. I do not think that this Company has been unreasonable nor is it now going to commence being so; but it cannot consent to its rights being thus whittled away, without compensation and without even being consulted. In the past we have suffered much in this direction. When we took an option from the original Rawang Syndicate, we took one over land held by a prospecting Licence issued under the old Mining Enactment. A preliminary selection under this Prospecting License had already been made and this Company was formed primarily to work that selection. The time, 1913, was one of growing financial depression. When the title was issued it was found that Mr. Broadrick, the then British Resident, had endorsed upon it some fresh clauses, the most inimical of which was that the lease was not subject to renewal at the expiration of its term of 21 years. Messrs. Drew and Napier took up the point vigorously with the Resident and succeed in getting the right on our title to one extension of a further period of 21 years. Under our Prospecting Licence we had a definite legal right to a title conveying continuous renewals for as long as we continued to mine the land. Had we taken the matter to Court we must I think have won; but we could not afford to delay the floatation any longer so had perforce to accept a serious diminution of the rights to which we were entitled under our Prospecting Licence. This is perhaps along excursion into the past, but I mention it to show you that we have not always received very sympathetic treatment from the Government, and must be excused if we are now somewhat suspicious of any “emendations”. The Government cancelling of tin mining titles which is being now indulged in and the refusal of renewals is rightly or wrongly causing doubt in many as to the security of tenure in these States. I will conclude this digression by repeating that this Company has no intention of being unreasonable nor of obstructing for the mere sake of obstruction. There is no body more open to argument and negotiation than your Board. To return to the Balance Sheet, Accrued Expenditure is the proportion applicable to the period under review of the Company’s Consulting Engineers’ fees. Reserves total to $460,000 an increase of $187,500 over that for the previous financial year. We are recommending that a further $150,000 to placed to Reserve which will then make $610,000 in all. This sum includes $150,000 for mine amortization which is standing charge. Your Directors are considering investing this sum in some form of enterprise not directly connected with winning coal at Batu Arang. Turning now to the credit side, $3,474.50 has been written off Mine Property making this a round sum of $1,000,000 which is a most conservative value to place on coal bearing land. Mine Development remains the same at $100,000 which is also a low figure, all development work now being charged to revenue. Extra buildings during the year have cost $54,834,91. Further building additions are still being made. Machinery and Plant was increased by $340,197.08 giving a total of $774, 866.81. Against this amount $125,370,68 has been written off in depreciation. We had also at the end of the financial year another $12,529.98 worth of plant on the water. We furthermore have orders placed for still additional plant which will be arriving during the current year. Our extra locomotive forms part of this ordered plant, while the balance of the briquetting machinery constitutes yet another portion. The cost of the plant on order will be met out of the current year’s profits. Owing to the kindness of the Railway Administration we have been able to hire from them an extra locomotive. Without this aid we should have been in a serious position. An extra $14,936.45 was spent on our sidings bringing that account to $134,574.73 from which sum depreciation of $7411,52 has been written off for the year. Our unused stock of stores has been valued at $52,965.38. Sundry Debtors amounting to $244,902.59 is practically all due on coal sales and has since been collected. Unexpired Expenditure represents quit rent and insurance paid during the last year but applicable to the current year’s working. Land Suspense is on account of the conversion of part of our land from a Prospecting Licence tenure to Mining Lease. The details of this I have already explained. Our cash balance at the end of the financial year amounted to $285,900,81 of which the sum of $240,000 was on fixed deposit with our Bankers. Since the closing of our year the cash balance has materially increased. Turning now to the Profit and Loss Account, you will notice that the cost of mining the years’ output was $1,170,675. including mine amortization of $37, 500 and royalty paid to Government of $50,168.50. Bad debts only amounted to $43.41. The coal sales for the year yielded $1,652,203.19 while sundry other revenues produced a further $24,345.55 After deducting all charges, the Company made a net profit for the year of $505,872.94. To this profit has to be added the balance of $39,797.50 brought forward from the previous year’s account making a total of $545,670.44 Your Directors declared an interim dividend of 5 per cent on the 15th February last absorbing $75,000 and leaving $470,670.44 now available for distribution. They recommend the payment of a final dividend of 20 per cent making a total distribution for the year of 25 per cent, the placing of a further $150,000 to Reserve, and subject to the payment of Directors’ fees and a bonus to the staff, the carrying forward to next year account of the balance of $20,670.44. A new feature of our Seventh Yearly Report is the photographs of the mine which we hope shareholders may find interesting. The mine is becoming what is for this country quite a fair-sized concern and one of considerable importance to the economic life of both the Federated Malay States and the Straits Settlements. It has been the endeavour of your Board to make the Company as sound a one as possible, placing it rather in the class of good industrial undertakings than of mining ventures. With this end in view as much work as possible has been charged to revenue, our depreciation has always been on the safe side, amounting to $162,428,54 for the year under review, while we have from the beginning been consistently conservative in the matter of dividend declarations. Our plant is of the best make, no expense having been spared in obtaining the highest class of machinery and equipment. But we confidently plan to make the mine yet bigger and still safer. For this current year our output will be considerably greater than that for the one now under review. We hope that for this month it will touch 30,000 to.ns and that by the end of our present financial year this monthly output figure will be almost doubled. In normal times there should be no difficulty in disposing locally of the annual production of 6,000 tons which such a monthly output would give, and should we anticipate the demand continue in excess of this quantity, we propose increasing our production during the following year to an outturn of a million tons. As our coal is not a good bunkering one, we have not formulated plans for a greater annual production than this amount but should there be a ready market for the coal even beyond 1,000,000 tons a year, with further development it would not be difficult for us in the course of another two or three years to double or even treble that annual output. In fact we have coal in quantity, and possessing now the means to increase production, in say, another two years’ time the amount of our Colliery output will be governed solely by demand existing for the coal. In the Federated Malay States we do think we have much reason to fear any really effective competition: the coal answers admirably for land purposes, and with an annual output of 1,000,000 tons could if necessary be sold at a price with which no imported coal could possibly compete. It is not as though the price of our coal was considerably higher than the price of coal in other producing centres. If we first admit that for bunkering purposes without being briquetted it is by itself of small use, for ordinary land purposes it would, nevertheless, be worth in Europe to-day quite 100 per cent more at pit head than we are at present charging local consumers. Compared with the greater part of the rest of the world, fuel in the Federated Malay States is cheap. I suppose that the Federated Malay States Railways is the only railway in the whole world that can claim to have effected a reduction in its fuel costs per train mile last year over that of the previous twelve months. Now as a matter of making the mine safer, our greatest difficulty has been with internal fires, some of which have been extremely serious and have caused us grave anxiety and loss. To cope with these spontaneous fires the whole system of mining at the Colliery is being altered. By the new method no coal will be left behind in pillars to grind and spontaneously ignite, but will be totally removed and its place filled with sand introduced by means of hydraulic stowage. In order not to close down the workings, the conversion to the new system has to be a gradual one and it will thus still be another year or more before the new method is in full operation throughout the mine. But even at this stage in the conversion, the danger from fires has already been greatly minimized, and were another bad one to beak out, it would not have that disastrous effect upon our output that such an occurrence would have caused so late as six months ago. On the whole, therefore, I think you can feel reasonably assured that you posses a safe investment with a promising future. That future, of course, is bound up with the future of the Federated Malay States, and particularly with the general prosperity of its tin mining industry. A severe and prolonged fall in the price of this metal would adversely effect our coal sales and consequently our profits. But such a fall should it occur could only be for a comparatively temporary period, for I do not suppose that anyone in this country, even during a time of general depression like the present, has any real doubts as to the actuality of the prosperous future before these States. It is probably the intention of your Board shortly to ask you to sanction an increase of the Company’s authorized capital from $2,000,000 to $4,000,000. It is not proposed immediately to issue any of this further capital, but your Board has under consideration the strengthening of the Company by the possible acquisitions of other properties. The Company’s representatives have inspected coal deposits in China, Siam and the Dutch East Indies but hitherto with negative results. Two properties are now under examination which may prove as unsuitable as the ones previously visited but to be ready with the power to raise more capital in case a good property be obtained, we propose asking for the sanction I have mentioned. I should explain that although we feel confident that the product of no outside field would compete with our present coal for railway, mining and other land boiler purposes in the F.M.S. where our geographical position, our rail communication and the great thickness of our seams and quantity of our coal all combine to place us in an unassailable position for the production of a big out put salable at a low local price, yet for certain uses where bunkering and storing are essential and for the large trade adjacent but outside the F.M.S., an additional coal field possessing some of the qualities which our present fuel lacks might conceivably strengthen our position and widen our market. Wit our present staff, our experience, and our plant we consider that we might possibly be able to work efficiently and profitably fields that others could not operate so successfully. But we should acquire no further property unless we were first fully convinced of its value and had no doubt that it would add to our strength and profits. Not fearing competition in our own particular market, we can afford to be discriminately fastidious regarding any outside property offered us. I have again to thank the Colliery staff for their loyal services during the year and especially Mr. England, our acting Mine-Manager, who has had an exceedingly trying time in carrying out the conversion from one mining system to another, in dealing with spontaneous fires and in increasing the output. No one could have the interests of the Company more loyally at heart than Mr. England, and his long and varied colliery experience has been of great value to your Directors when considering future development. Mr. McCall and Mr. Porteous are still on leave and are I trust enjoying the holiday so long delayed. I have also to thank one of our shareholders Mr. Ho Man, for the valuable advice and services he has rendered the Company during the past year. Messrs. Chan Thye Lee, whom Mr. Ho Man manages so progressively, operate more tin mines in Selangor than any other firm. They were among the first people to use our coal and today after the F.M.S. Railways they are our biggest customer. We have recently concluded with the General Manager of Railways an additional contract for an extra 5,000 tons of coal a month, and I should like to take this opportunity of saying that despite little differences which occasionally may arise between ourselves and the Railway Administration, we have to thank it for a great deal of real assistance afforded us and for the invariable courtesy and accessibility of its General Manager who is always ready to discuss with understanding and a refreshing broadness of vision the difficulties and points between us. Finally, to the Government Electrical Adviser, Mr. Bolton, we are indebted for several interesting conversations upon the power requirements of the country with special reference to our coal. I now beg formally to move that the report of the Directors produced, together with the statement of the Company’s accounts as at June 30th, 1920, duly audited, be now received, approved, and adopted, which motion I will ask Mr. Grant Mackie to second; but before putting it to the meeting I shall first endeavor to answer to the best of ability any questions that shareholders present may care to put. Mr. Hopson Walker asked for the details of the contract with the F.M.S. Railways to which the Chairman had referred in his speech. It was a matter about which many shareholders held strong views, believing that they were being taken an unfair advantage of by the Government. The Chairman in reply stated that that the first contract with the Government was for a period of five years. It was entered into at the time that the Company began producing coal. There was at the time prejudice against the Company’s coal, and it did not command a ready sale. It was most important to secure the Railway contract as to do so was to establish the value of Rawang coal as a fuel. The Railway Department knew this, and, as was only business, practically dictated its own terms. The Company agreed to supply 5,000 tons of coal a month at the rate of $5.50 per ton, that is, the Railway had the right to be supplied with 5,000 tons and the option to take either 10 per cent less or 10 per cent more than the contracted amount. Whenever it could, of course, it took ten per cent more. It must be admitted that at this time the Company did not foresee the great rise in the cost of its coal production which has in sympathy with everything else since taken place. He would further admit that these rates to the F.M.S.R. were not remunerative ones to the Company. In that original contract, the Railway had also a clause by which it had the right to buy, at the same rate of $5.50 per ton a quarter of any output there might be above a monthly production of 17,000 tons. Shareholders might remember that two years ago there was an agitation against the Company when certain consumers accused it of profiteering. The Government appointed a commission consisting of Mr. Eyre Kenny and Mr. F.A.S. McClelland to investigate these charges. This Commission went through the Company’s books and came to the conclusion that there was no profiteering. The Commission recommended, he believed, that if the Company were to reduce the price of coal to the ordinary consumer, it be allowed to raise the price to the Railway which was far too low. The Company heard no more of the charge of profiteering nor of the Commission’s recommendations. The F.M.S.R. wanted still more coal a month, but the difficulties of increasing the output during the war were great. When the means of production improved, Mr. Anthony, the General Manager of the Railways, was exceedingly reasonable and admitted that the clause giving the Railways the right to a quarter of any increase over 17,000 tons a month was extremely hard on the Company. He said he was prepared to cancel that clause if the Company gave the Railways another 5,000 tons of coal a month on a long contract, the two contracts to run simultaneously, if the Company also did not charge the Railways too high a price for this additional coal. The Company was not prepared to tie itself down to another long contract, but said it was willing to give an extra 5,000 tons per month to the Railways at $10.50 per ton for a year in return for the Railways canceling the excess production clause. The contract for this additional amount had been duly entered into. There was over another year of the first contract still to go. At the end of that period, no one could expect to get the Company’s coal at $5.50 per ton, unless there were a revolutionary reduction in the cost of production. Mr. Grant Mackie said that imported coals were still fetching $48/- and more a ton in Singapore. Chairman said that Rawang coal was, as they knew, a semi-bitumous coal, and without being briquetted or mixed with other coals was unsuitable for bunkering. They could not expect to realize such prices as $48/- a ton for it. Mr. Grant Mackie said that, anyway, it was a most valuable asset to the whole Peninsula, and that a man in the leading firm of Mining Engineers in the country had remarked to him only the other day- “God knows what we should have done during the war without this coal” If the Company wanted to profiteer it could force some people to pay $35 a ton for Rawang coal. A small output at high prices would pay the Company, if not the country, better than its present policy of a large output at low prices. Of course this state of affairs might not always be so, but it was true at the present moment. No Company had ever been further than theirs from indulging in profiteering. Mr. Hopson Walker said that he was fully satisfied with the Chairman’s explanation as to how it was that the Company sold coal at such low prices to the F.M.S. Government Railways. The additional contract would to some extent rectify the matter, and he thought that the company had done wisely into entering into this additional contract with the General Manager of the Railways. He trusted that a report of the meeting and this discussion would appear in the local press, as he knew that many shareholders thought that the Board unduly and unnecessarily favoured the Government in letting it have cheap coal. The Railways, these shareholders said, paid at least from $20,000 to $30,000 a month less than it should do for its coal: $300,000 a year was a big item: it represented 20 per cent of the Company’s capital. The explanation given by the Chairman would show these shareholders how the existing condition had arisen. Mr. Hopson Walker also referred to that portion of the Chairman’s speech in which the Chairman had stated that the Company had inspected areas in Siam, and China, and asked if the idea of going into foreign countries was that the Company might find a coal which they could mix with the Rawang coal. He thought it was a danger to outside the British flag. The Chairman replied that from time to time, as he said in his speech, outside properties had been offered to the Company which it had inspected with the idea primarily of extending its market and secondly that it might perhaps find a coal which by mixing with Rawang would make the latter more suitable for bunkering. The second reason was by no means a vital matter for the Company as briquetting its own coal would answer the same purpose. The briquetting plant should be in operation towards the end of the present financial year. There being no further questions, Mr. Grant Mackie seconded the Chairman’s motion to adopt the report and accounts, which was carried. The Chairman then moved the payment of a final dividend of 20 per cent making 25 per cent for the year upon the issued capital of the Company, the placing of $150,000 to General Reserve and the carrying forward of the balance to next year’s account, which was seconded by Dr. J. M. Crago. The sum of $10,000 was voted to the directors in remuneration of their services for the past year. Mr. J. A. Russell and Mr. A.A. Henggeler were re-elected to seats on the Board. Messrs. Evatt and Co. were re-elected auditors for the ensuring year at a fee of $1,000. A vote of thanks was passed to Mr. McCall, to the acting Mine Manager, Mr. England, and to the staff on the mine for their services during the past year and a bonus of one month’s salary granted as a mark of the Company’s appreciation. The meeting concluded with a vote of thanks to the Chairman and the directors.
The Straits Times, 5 November 1920, Page 9 and The Singapore Free Press and Mercantile Advertiser 5 November 1920, Page 12 and 11 November 1920, Page 6
MALAYAN COLLIERIES. Large Increase of Capital Approved. An extraordinary general meeting of shareholders in Malayan Collieries, Limited, was held at the registered offices of the Company, Hongkong and Shanghai Bank Buildings, Kuala Lumpur, on November 2, Mr. J. A. Russell presiding.. Mr. W. S. Coutts for the Secretaries, Messrs. J.A. Russell and Co., read the notice convening the meeting. The Chairman said: Gentlemen:- In my speech at the company annual general meeting on the 10th of last month, I mentioned that your directors proposed to ask your sanction to the increase in the authorized capital of the company from $2,000,000 to $4,000,000 by the creation of an additional 200,000 shares of $10 each. I also explained that, should you grant this sanction, it is not the intention of the directors to issue at present any of these extra shares, or to issue the 50,000 un- issued shares which the company already has in reserve, the increase of the authorized capital being solely for the purpose of improving the potential strength of the company by placing your directors in a position to quickly raise additional funds should it at any time be advisable for them to do so. I do not think there is need for me to-day to add to that statement, except perhaps to mention that in the event of shares later on being issued, whether the whole or part of any such emission or emissions be offered first to present shareholders and at what, if any, premium the shares be issued, will be determined solely by due consideration as to what will best serve the greatest interests of the company at the time of issue and consistent with the purpose for which the particular issue in question may be made. I now beg formally to propose, “ That the capital of the company be increased from $2,000.000 to $4,000.000 by the creation 200.000 new shares of $10 each” The resolution was seconded by Mr. A. Grant Mackie and carried nem.con. M.M.
The Straits Times, 3 February 1921, Page 6
MALAYAN COLLERIES LTD Issue of Bonus shares. Notice is hereby given that share certificates for the 30,000 fully paid shares of $10 each in the above Company, issued in accordance with the terms of the resolution passed at an extraordinary general meeting of the Company, held at its Registered Offices on January 14, 1921, to members whose names appear on the register of shareholders at January 14, 1921 in the proportion of one bonus share for every five held have now been dispatched to the last registered address appearing in the books of the Company. Malayan Collieries Ltd. J. A. Russell and Co. Managing Agents & Secretaries. Kuala Lumpur. F.M.S. February 1, 1921.
The Straits Times, 18 June 1913, Page 8
Malayan Collieries. The directorate of the Malayan Collieries, Ltd., which is to be floated shortly, has now been filled up, with the exception of the member to be nominated by the Government of the F.M.S. in consideration of their interest in the enterprise. The directors are Messrs. A. D. Allan, Singapore; R.P. Brash, manager of the Menglembu Lode Syndicate, Ltd., Ipoh; Foo Choo Choon, proprietory miner, Ipoh, Adolf A. Henggeler, managing director of Wolfram (Selangor), Ltd., Kuala Lumpur; Loke Yew, Kuala Lumpur, John Archibald Russell, Kuala Lumpur; Tan Chay Yan, Singapore. It will be observed that the representation of the tin-mining industry is strong, which is an indication of the direction which the promoters of the company hope in the first instance to place the produce of the coalfields.
The Straits Times, 23 June 1913, Page 9
As advertised on another page of this issue, the subscription list for Malayan Collieries, Limited, opens to-day and remains open until next Monday, the 30th, at four o'clock
Weekly Sun, 28 June 1913, Page 7
Mr. Mungo Park A.R.S.M. is to be Colliery Manager for the Malayan Collieries Limited.
The Straits Times, 28 June 1913, Page 8
It is rumoured that the officer to be nominated a director of Malayan Collieries, Ltd., by the F.M.S. Government will probably be Mr. W.J.P. Hume, Commissioner of Trade and Customs.
The Straits Times, 24 June 1913, Page 9
THE FUEL QUESTION. TESTS OF COAL V. FIREWOOD IN SELANGOR. Great Saving on Coal. The flotation of Malayan Collieries, Ltd., no doubt, is responsible for the great attention that is being paid at the moment to the question of fuel supply in the F.M.S.- particularly among the biggest consumers, the miners. The Selangor Miner’s Association recently instituted a series of tests as to the relative values of wood and coal and their respective economic standings, and to this end they asked one of the foremost miners in the State, Mr. Choo Kia Peng, to carry out tests at one of his mines. He did so, conducting the experiments with wood, Rawang coal and Indian Coal, over periods of 16 hours on a 12 h.p. boiler with an 8 inch pump. This is his report to the committee which accompanied his tabulated results: - At the request of your association I recently made upon my mine at Sungei Choh a series of practical tests comparing the relative fuel values of coal and firewood for the ordinary portable locomotive-type of steam-boiler as is in general use upon mines in the F.M.S. Attached to this report you will find in tabular form the result of my investigations. You will notice that it gives overwhelming proof of the economic advantages of replacing by coal our present almost entire use of firewood as fuel. The wood burned was the best bakau, and the coal the ordinary Indian fuel as is usually employed by those few miners who use coal. I have in my table made a third comparison with local Rawang coal. Unfortunately I was unable to procure a sufficient supply of Rawang coal with which to make a practical trial, the shaft on the coal fields having, I understand, been closed down pending the arrival of the machinery from Europe. From figures however given by Mr. Cheong Yoke Choy of a trial made by him of Rawang coal in February, 1912, on a 12 n.h.p. portable boiler, at Ampang, it would appear that one ton of Rawang coal is equal to three tons of firewood; which would show Rawang coal to be of practically the same power as Indian. Of another trial made on the Kledang Mine, Kinta, in January 1912, Mr. H. L. Armstrong found that one ton of Indian coal was equal to 1.06 of Rawang; but that against this slight difference Rawang coal kept up steam better and left no slag. However, in order to be on the safe side I have Rawang coal at the ratios of both 2 ½ to 1 and 3 to 1 on my table. Prices of Fuel. Regarding prices of coal and firewood, I have taken those obtained in the mining mukim of Ampang, rather than those for Sungei Choh, for the reason that the former is a more familiar centre to miners than is the latter; where, indeed, there are not more than about three mines all told. My carrying out the trials at Sungei Choh was merely due to the fact that my most suitable mine was situated there. In fixing the price of Rawang coal I estimate from such figures as I have been able to obtain that 40 cents a picul at Ampang should give the proposed company formed to work these fields a very fair profit; still for safety I have put the price at in my table at 55 cents per picul. My own boilers are run 16 hours a day, and although many no doubt are worked the whole 24 hours, still I have thought it better only to calculate the saving on a 16 hours-a-day run. Apart form the question of economy, coal is also greatly superior to wood in the matter of quickly getting up steam, a matter which in mining in a country subject to sudden floods is often of vital importance. With a large out-turn from the Rawang coalfields, coal is more likely to get cheaper than dearer, while firewood must undoubtedly continue to increase in price. It should not be forgotten, moreover, that the more wood the miners burn the more scarce and costly becomes their mining timber. All that is necessary to convert a boiler from wood to coal burning plant consists in raising and arranging more closely the fire bars, an alteration easily and cheaply affected. The prejudice still found against the use of coal arises entirely from the firemen and drivers in charge of the boilers. A fireman at present having thrown in 10 to 15 billets of wood has nothing further to do until those 10 to 15 billets are consumed. With Indian coal his time would be more fully occupied in stoking, trimming and raking out clinker. Rawang,however, in this respect would appear to be far better than the present coals we use, for I understand it leaves no slag. The aversion upon the part of the fireman to a little additional work I have found in practice is easily overcome by an extra dollar or two to his monthly wages. A good fireman at present in charge of a boiler gets from $14 to $18 a month; increase this to from $20 to $25 a month and all difficultly will vanish. An Enormous Saving If coal were universally employed in the F.M.S. the saving to the mining industry would be enormous. Taking the mukim or sub-district of Ampang, for instance, I find from figures kindly furnished me by the Mines Office that the total horsepower engaged therein in mining is 973 which at 12 h.p. to a boiler equals 81 boilers. From this it can be proved that by burning Indian coal the miners of the mukim would save $38,880 per mensum and $466,560 per annum fuel bills, while by burning Rawang coal they would probably be able to save as much as from $54,432 to $61,579 per mensum, and from $639,984 to $738,912 per annum. Truly astonishing figures. What must be the saving the whole country could effect? Mr. Choo Kia Peng’s statement of results shows that it took 80 piculs of firewood to feed the fire for 16 hours, which at 50 cents a picul, gave a cost of $40. Taking the consumption of firewood to Indian coal in the ratio of 3 to 1, 26 2/3 piculs of that coal were used. It cost 90 cents a picul or $24, thereby effecting a saving of $16 a day, or $5,760 a year (360 days). With the same ratio of Rawang coal, at 55 cents a picul, the cost per day was $14.66, the saving per day $25.34 and the saving per annum $9,122. With the lesser ratio of 2 ½ piculs of firewood to 1 picul of Rawang coal, at the price of 55 cents a picul, the cost worked out at $17.60, making a daily saving of $22.40 and yearly retrenchment of $8,064, as compared with firewood.
The Straits Times, 5 July 1913, Page 8
With regard to the Malayan Collieries Company, Ltd., we are asked to state that it has been found difficult to arrange for all the directors of the company meeting until next Wednesday. It is hoped, however, that letters of allotment will be posted the same night.
The Straits Times, 11 July 1913, Page 10
Malayan Collieries, Ltd. The Malay Mail of Thursday, says: - We understand the Malayan Collieries, Ltd., held their first board meeting when the company duly went to allotment. We are informed by the agents and secretaries that the total amount of working capital was fully subscribed. We further understand that the board have decided to appoint Messrs. Foster Brown and Rees of Cardiff, to act as their consulting engineers. We hear that Towkay Loke Yew and Towkay Lee Kong Lam paid a visit to the concession of Malayan Collieries, Ltd., at Rawang, and on their return next day combined to underwrite 20,000 shares each.
The Singapore Free Press and Mercantile Advertiser (1884-1942), 13 November 1913, Page 2
OIL IN MALAYA. With reference to the editorial in our issue of Tuesday on the subject of the possibility of finding oil in the Tertiary rocks of the Rantau Panjang measures, more commonly known as the Rawang Coalfields, we are informed by the secretaries to Malayan Collieries, Ltd., the proprietors of these measures, that Mr. Mungo Park, A.R.S.M., who prospected them, gave what he described as “ a very approximate estimate” of the quantity of petroleum contained in the upper shales alone at twelve hundred million gallons of crude oil. The secretaries further inform us that it is the policy and intention of Malayan Collieries, Ltd., as soon as they have finished preliminary development work on their main coal shaft, to prospect for that deep deposit of natural free petroleum which the F.M.S. Geologist and others think may very possibly from surface and other indications be found at depth upon the Company’s extensive concession. (M.M.)
The Straits Times, 26 November 1913, Page 9
The Federal Council. “ the floatation of Malayan Collieries, Ltd. for which a manager has been engaged in England”
The Straits Times, 3 December 1913, Page 8, The Singapore Free Press and Mercantile Advertiser, 6 December 1913, Page 8, Saturday, Dec 6, 1913. The Singapore Free Press and Mercantile Advertiser, 11 December 1913, Page 375 Saturday, Dec 6, 1913.
Mr. McCall, the technical expert being sent out from home to Malayan Collieries, Ltd., by Messrs. Foster, Brown and Rees, the well known colliery consulting engineers of Cardiff, in order that he may open up the Rawang coalfields, is among the passengers arriving out by the next P. and O. mail.
The Straits Times, 2 April 1914, Page 9
Trade of the F.M.S. At the annual general meeting of the Selangor Chamber of Commerce held at Kuala Lumpur on Tuesday, Mr. H. C. E. Zacharias presided over a good attendance. “ In this connection it is interesting to record the floatation during the year of Malayan Collieries Limited, to work the Rawang coal measures. The owners anticipate that the colliery will be able to place good commercial coal on the market at a cheaper rate than firewood, or imported coal, and if these hopes are realized this will be of substantial assistance to the mining industry”
The Straits Times, 5 September 1914, Page 9
F.M.S. Trade Returns. , “ Coal was an import of nearly $700,000 in value. We may, however, look for a change in the future. The formation of the Malayan Collieries Limited, for the development of the Rawang coal-field took place last year. Mining has not yet begun, but is waiting for the completion of the branch railway to the mining area. If, as is hoped, the venture is a success, with coal available at our doors, it will be recognized that the country will be possessed of an asset of great value, bound to add to its wealth and prosperity”
The Straits Times, 14 June 1915, Page 12 F.M.S. in 1914.
THE CHIEF SECRETARY'S ANNUAL SURVEY. “ The Senior Warden of Mines reports that the Malayan Collieries, Limited, who are opening up the Rawang coal area, had their opening up works well in hand by the end of the year and that the colliery will be in a position to place coal on the market as soon as the railway connection is completed. Good progress in the railway construction was made”
The Straits Times, 12 August 1915, Page 10
Kuala Lumpur Comments. (From Our Own Correspondent.) Kuala Lumpur, August 11. A large number of prospectors, representing syndicates in Perak and Selangor, is now at Mersing Johore, where there is quite a rush for tin land: so much so that the Johore Government following the precedent of the F.M.S. refuses to grant applications for land indiscriminately and calls for tenders. Among those who have been commissioned to prospect for Kuala Lumpur Syndicates, is Mr. Mungo Park, formerly of the Mines Department and now of Malayan Collieries, Limited.
The Singapore Free Press and Mercantile Advertiser, 27 June 1916, Page 5
F.M.S IN 1915. CHIEF SECRETARY'S REPORT. "Coal. The Malayan Collieries commenced to turn out coal during the year. The Collieries have been connected with the railway main line at Kuang Junction. The increase in the price of imported coal has created a great demand for the local coal, and it is estimated that 1,000 tons a day could be disposed of. There is difficulty in obtaining sufficient skilled labour, which cannot be obtained locally and will probably have to be imported”
The Singapore Free Press and Mercantile Advertiser (1884-1942), 1 August 1916, Page 7 and The Malayan Tin and Rubber Journal, 16 August 1916 No. 16. Vol V, p.13 The Malayan Collieries. Reference by the Commissioner of Trade and Commerce.
THE MALAYAN COLLIERIES. Adverting to the decrease in the importation of coal into the Federated Malay States during 1915 the following reference to the development of the Malayan Collieries is interesting: “Although greatly delayed by the war, most of the plant had at the end of 1915 been received and erected and the South Mine was producing and selling coal. The North Mine, however, was still in shale and up to the close of the year had not commenced production” 0. “The shortage of tonnage by cutting off the supply of imported coals caused a far greater demand for the local Rawang fuel than the Malayan Collieries could in its initial stage possibly satisfy, for although the South Mine was far enough developed to turn out 300 tons a day, and did reach the neighbourhood of this figure, the difficulties of obtaining skilled labour reduced the average daily output to under 200 tons. So long as the price of tin was low it was possible to obtain Chinese underground miners, but with the increase in the value of the white metal the Chinese returned to what is evidently to them a more congenial form of mining. The continued rise in freights is making the demand for Rawang coal even more urgent and the Collieries could probably now fairly easily dispose in the F.M.S. and S.S. of as much as 1,000 tons a day, which is what it is expected will be produced when both the mines are fully running. This present labour difficulty is, therefore, the more unfortunate, and steps are being taken to import skilled coal mining labour from outside in the hope of overcoming it. However, despite the output being not yet more than 5,000 tons per mensum, even this amount has been of great assistance to the country, and several of the larger local users of power- Sungei Besi Mines, Pengkalen Power Station, Malayan Tin Dredging Mine, Batu Caves Cement Works, the Straits Settlements ‘Alma’ etc.,- are now exclusively burning Rawang fuel. It is perhaps a happy omen for the permanency of this new Federated Malay States industry and product, that most of the present users stopped or diminished their purchases of imported coals and began to use ‘Rawang’ before the rise in the price of the former had actually commenced.” – Com of trade Report.
Advertisements for Rawang Coal appear in The Straits Times between 7 August and 25 August.
The Straits Times, 31 August 1916, Page 8
Malayan Collieries. To the Editor of the Straits Times. Sir, With reference to the chairman's speech at the third annual general meeting of Malayan Collieries, Ltd., we are informed that the following statement may be misleading: - "You will observe that our railroad siding cost us $40,780.39 as against the official estimate of $77,000, the difference being due to our having taken up the contract under the Railway Construction Department, and, by doing the work ourselves, effecting a considerable saving.” Although there was a considerable saving over the official estimate, due to the peculiar position of the company enjoyed in having an organized labour force and staff on the spot, it is pointed out to us that this official estimate was based a plan which was altered before the work was carried out, so the saving over our official estimate was also in great measure due to certain works included in the original official plan, upon which we learn the estimate was based, not being done. - Yours, etc., Malayan Collieries Ltd., J. A. Russell and Co., Agents and Secretaries. Kuala Lumpur, August 30, 1916
The Straits Times, 22 December 1916, Page 8
Malayan Collieries. News which reached Kuala Lumpur on Wednesday morning indicated that there had been some form of labour trouble at the Collieries' coalfields at Batu Arang. The police were informed and within a quarter of an hour twenty-five police and a detective under Chief Inspector Flood left the Central Police Station in cars for the mine. Beyond the particulars given above nothing further is known. On enquiry at the offices of the agents of the company we (Malay Mail) were informed that the police were sent out as a result of a telegram received in Kuala Lumpur shortly before 11am. Mr. R. C. Russell has also left for the mine.
RAWANG COLLIERIES STRIKE The Straits Times, 22 December 1916, Page 10 and RAWANG COLLIERIES. The Singapore Free Press and Mercantile Advertiser 23 December 1916, Page 12
RAWANG COLLIERIES STRIKE Trouble Settled and Ringleaders Arrested. Further particulars are to hand, says the Malay Mail, of the labour trouble at Batu Arang on the Malayan Collieries' coalfields. Recently, it is stated, the management granted the labour an all round increase of 15 cents per truck on coal brought out of the mine, with a view to encouraging the coolies to work harder. The experiment was a success so far as the majority of the coolies was concerned, but two kongsis, numbering about 120 men, took advantage of the increase to put in less work. As matters stood they were earning just sufficient to keep themselves in comfort, the mine’s interests being thrown to the winds. This of course, could not be tolerated, and the management decided to cancel the increase so far as the two kongsis were concerned. As a result of this action on Tuesday evening the 120 coolies of the two kongsis struck work. They composed about one fifth of the labour force on the mine. Four-fifths of the coolies had no sympathy with the movement. On Wednesday morning matters had assumed such an aspect that the police were telegraphed for from Kuala Lumpur and a force of 26 armed men under Chief Inspector Flood proceeded in cars to the mine. After the arrival of the police the strikers were paid off and sent off the mine, five men alleged to be ring leaders, being arrested. When the police left the mine on Wednesday evening work was being resumed. There were rumours in town yesterday that the strikers were smashing the machinery on the mine. This is absolutely incorrect as nothing more than what is reported above occurred. The five alleged ringleaders will be tried at Rawang in due course. (Malay Mail.)
The Straits Times, 15 May 1917, Page 6
The output of coal during 1916 from the Malayan Collieries at Rantau Panjang, more generally known as the Rawang Mines, was 101,816 tons, says the Chief Secretary in his annual report. For some time the output was restricted owing to a "want" having been encountered in toe north mine. Shortage of labour and the want of essential supplies tended to restrict the extension operations.
The Straits Times, 16 November 1917, Page 10,The Malayan Tin and Rubber Journal 30 November 1917, Vol. V1 no.22
F.M.S. Mining Federal Council. THE HIGH COMMISSIONER'S SPEECH. The F.M.S. in 1917. The Federal Council opened its sitting in the Council Chamber in the Government Buildings, Kuala Lumpur, on Tuesday morning, H.E. the High Commissioner and the Rulers being given the usual guard of honour, says the Malay Mail. (Extract): “Enhanced Coal Production Coal to the amount of 72,837 tons was produced and sold by Malayan Collieries Ltd., as compared with 41,427 tons in the first six months of on 1916, a satisfactory increase, though under normal conditions the output would have been much greater. The existence of the local coal supply has been of the utmost importance and assistance at a time of when the supply of imported coal has, of necessity, been restricted. The winning of tin by means of bucket dredges has continued to be successfully prosecuted, and I understand that extensions of this method of working are contemplated. The half year under review has been prosperous, there have been no serious shortage of labour, and though war-time restrictions have affected the supply of machinery, plant, and stores, no serious disability has been experienced, except with regard to Malayan Collieries, Limited, who were unable to increase their output to a greater extent.
The Straits Times, 13 May 1918, Page 8 and The Singapore Free Press and Mercantile Advertiser, 13 May 1918, Page 4.
It is reported that, owing to the recent heavy rains the lower workings at the Malayan Collieries' property are flooded. To lessen the amount of water to be dealt with, hydraulic sand stowage for the time being has been stopped. The increase of water attending the extension of workings was foreseen and extra plant to cope with it was ordered from home over a year ago. Unfortunately upon completion of the plant by the manufacturer it was commandeered by the home authorities. (M.M).
The Singapore Free Press and Mercantile Advertiser ), 1 August 1918, Page 75 and, 30 July 1918, Page 7 F. M S. MINING IN 1917.
Mr. W Eyre Kenny, M Inst C E, Senior Warden of Mines, F. M. S. in his report on the administration of the Mining Department and on the mining industries for the year 1917, concludes by stating with a laconicism which clearly denotes the regret of an enthusiast under restraint that “ in accordance with instructions this report has been condensed as much as possible” Extracts: “ As to coal the output of the Malayan Collieries was 155,279 tons, against 101,846 (in 1915 the output was only 11,523 tons), the total since the commencement of operations being 268,648 tons. The output would have been considerably larger if plant that was under order could have been obtained, and the department, in order to increase the output, was compelled to assent to the northern seam being worked opencast within certain limits. Trouble was also experienced owing to shortage of labour, miners though able to earn higher wages preferred the less arduous “(etc. as above) “Coal from outside sources was practically unprocurable or was only obtainable at high cost and coal from the Malayan Collieries and wood took its place.”
The Singapore Free Press and Mercantile Advertiser, 19 August 1918, Page 8 and 22 August 1918, Page 121
MAN POWER TRIBUNALS. His Excellency states that the passage of the Straits measure and the introduction of the F. M. S. Bill were the result of strong representations made to the Secretary of State by an employer in the Colony and we could, we think, make a very good guess who that employer is- who stated that his staff was, reduced to its lowest limits and that he desired that the men remaining should be satisfied that they were serving their country best where they were. Will that end be achieved by the present measure? We doubt it. The inherent weakness of the Military Service Bill, to our mind, is that it makes no provision which ensures the exemption of an indispensable man. A Class men, or their employers for them, are invited to apply to the tribunals for exemption. The Government we are told, will not look upon them with a cold eye for doing so. But supposing they will not apply? The Chairman of Malayan Collieries has publicly announced that there are six men employed on the mine who are absolutely indispensable. None of them intend to apply for exemption, considering it derogatory to do so. Nor will their directors apply for them. The Government cannot evade its responsibility in this matter. It is its duty to retain enough men for the defence of the country. It is also its duty to decide what are essential industries and how many men are required to maintain them. It is no use saying that the tribunals have been established to deal with this very point. The tribunals will only decide when they are asked to do so by the individuals concerned, that is to say, when an application for exemption is made. If the Government really means to send anybody, therefore, it should take direct steps to find out for itself whether the man is or is not indispensable- M.M.
The Singapore Free Press and Mercantile Advertiser (1884-1942), 17 June 1920, Page 392
MALAYAN COLLIERIES. Correspondence between the management and customers of Malayan Collieries and the railway management is published in the Malay Mail. It is alleged that owing to the shortage of trucks there has been a forty per cent reduction in output, the number of hours time lost being 124 out of 312. Notice is given that contracted supplies will have to be further curtailed owing to the continued shortage.
The Singapore Free Press and Mercantile Advertiser , 16 October 1920, Page 6 , and 21 October 1920, Page 246
COAL IN MALAYA. Some years before war before out coal had been discovered in the Malay Peninsula, in the States of Perak and Selangor. The coal found at Rawang, in Selangor, some 20 miles from Kuala Lumpur, proved to be of first-rate quality, and as prospection proved a supply of over 10,000,000 tons, the Malayan Collieries, Ltd. was formed to work and place it on the market. The difficulty of getting plant during the war hindered development, but mining was started in earnest in 1915, when 11,523 tons of coal were obtained. Down to the end of 1918- the latest year for which figures were obtainable- 437,388 tons had been mined, and the quantity would have been greater but for lack of plant, shortness of labour and epidemics of sickness among the workers. The output in 1916 was 101,846 tons; in 1917, 155,279 tons; and in 1918, 168,740 tons. The discovery of indigenous coal is likely to have important bearing on local industries which, hither to, have had to rely mainly on fuel supplies from native forests. The 168,740 tons mined in 1918 were disposed of as follows: - F.M.S. Railways, 67,437, tin mines 66,500 tons: other F.M.S. consumers 14,915 tons? exported 19,888 tons. This is the first record of coal being exported from the Federated Malay States.
LETTER FROM MALAYAN COLLIERIES LTD TO THE COLLECTOR OF LAND REVENUE, ULU SELANGOR. 5TH NOVEMBER 1920 Kuala Lumpur, 5th November. 1920.
Sir, With reference to your letter of the 29th ultimo numbered (1) in U.S.L. 2032/20, inquiring whether Malayan Collieries Ltd., has allowed Malayan Matches Ltd., to erect a Match factory and a bungalow upon its property, we have the honour to reply that this is so and also that both the fact and the reason for our so doing are we believe, well known to the Government, or at least to certain officials in the Government, but as you do not appear to be aware of them yourself, for your own information we explain below the position. The Government gave to the promoters of Malayan Matches Limited a concession for the manufacture of Matches over that part of the Nantau Panjang Forest reserve which, contained no hard wood, is useless for practically any other economic purpose and which happens to adjoin the property of Malayan Collieries Ltd. Unfortunately, however, the Forest Department could not give Malayan Matches Ltd., a factory site without first revoking the Forest Reserve, a lengthy and tedious process which the Forest Department was not anxious to do, and which would in any case have taken considerable time to complete, and thus have deferred or prevent the formation of the Company and the inauguration of a useful local industry. As it was also necessary for Malayan Matched, Ltd., to obtain sanction to use the Railway siding constructed over the property of and belonging to Malayan Collieries Ltd., and to extend the same, the simplest way that suggested itself of solving the difficulty confronting Malayan Matches Ltd., and the Forest Department in the matter of a site, was for Malayan Collieries Ltd., to grant Malayan Matches, Ltd., permission not only to use and extend the line and siding traversing its property, but also to erect a factory and bungalows at the edge of its property at a point where this property adjoins that part of the Forest Reserve conceded by the Government to Malayan Matches, Ltd. Malayan Matches, Ltd, in approaching Malayan Collieries Ltd., for this permission, assured Malayan Collieries Ltd., that it would in no way obstruct or hinder the latter from the proper and efficient working of its coal concession, and that on being given due notice by the latter it would, if necessary, remove its buildings and sidings to another site or entirely from off the latter’s property. No concealment has ever been made regarding the assistance in the matter of rail facilities and a site which Malayan Collieries, Ltd., rendered to Malayan Matches, Ltd., and the aid it has given is well known to Government and certainly to those officials with whom Malayan Matches, ltd., negotiated for its Match concession and a protective import tariff. The assistance which Malayan Collieries Ltd., has given is of only a nominal benefit to itself and has been made solely with the idea of aiding in the establishment of a useful fellow-industry, of obviating the difficulty in connection with revoking the Forest Reserve and in the general interest of the State and the community. Malayan Collieries Ltd., has consistently endeavoured to help others where it could do so without harm to itself. It has twice given up part of the area it has held under its Prospecting License to Rubber Companies which were entirely unconnected with itself or with any of its shareholders, and it also on one occasion surrendered a large area from its prospecting License for the formation of Protective Forest Belt. We have, etc Malayan Collieries Ltd., J.A.Russell & Co. Sd. H.H.Robbins (Manager) The Collector of Land revenues Ulu Selangor K.Kubu.
From National Archives of Malaysia. Transcribed by P.C
The Singapore Free Press and Mercantile Advertiser, 17 December 1920, Page 6 and 23 December 1920, Page 394
The marriage of Mr. J. Swanstone, of the Malayan Collieries, Ltd., and Miss Ethel England, daughter of Mr. E. England, acting manager of the Malayan Collieries and Mrs. England, takes place at St Mary'- Church. Kuala Lumpur, on December 29th.
The Straits Times, 28 January 1921, Page 8
The Borneo Coal Field. Yesterday Mr. England and party with 200 Chinese miners left for Malayan Collieries' new coal property at Pamoekan Bay, in Borneo, which the F.M.S. company mentioned is developing for bunkering trade purposes with a view to meeting the needs of local shipping for a low-priced steam coal. The S.S. Nanyo Maru is due in Port Swettenham within a few days’ time to take the new mine a shipment of plants and stores. There is already a labour force of some 200 men on the newly acquired Colliery so there will shortly be about 500 miners there and arrangements have been made to increase this force to over 1,000 men. A small steamer for use on the Borneo coast has been purchased by the Company in China and is on her way down, while contracts are being entered into for chartering steamers to carry coal to Singapore; one of which has already been chartered and is on the run. We understand that the property has no connection with Seboekoe, which was floated some two years ago in Singapore; but is mine which is already producing coal and which has been fully reported on and bored by Malayan Collieries’ own Engineers. It is claimed that its coal is superior for bunkering purposes to any coal yet discovered or produced in Borneo and that even with the primitive methods by which it has been hitherto mined, or rather blasted out, thereby producing an excessive percentage of dust and ash, it has given good results, comparing favourably with most Japanese and Indian bunkering fuels on the market.
The Malay Mail, Friday February 4, 1921
MALAYAN COLLIERIES. The New Coal Property. The s.s. Nanyo Maru has arrived direct from the property of Malayan Collieries, Ltd., in Borneo and is at present lying in Port Swettenham loading supplies for this new mine recently acquired by the above mentioned company. Messrs. England and Hastings with a large party of miners went across to the mine a fortnight ago, while Messrs. Swanstone and Brickman, the latter of whom has only just returned from the property, leave the Nanyo Maru this afternoon. The Nanyo Maru is one of the steamers chartered by Malayan Collieries, Ltd., for carrying its coal and sails from Port Swettenham straight to Pamoekan Bay where Malayan Collieries Ltd., has its own wharves connected by a line direct with its mine, which latter is only about a mile from the harbour. We understand that this mine produces good bunkering coal claimed to be superior to any other Borneo coal and the Nanu Maru made a very fine trip from the mine to Singapore, the captain obtaining better steaming results from burning Pamoekan Bay (Gunong Batu Besar) coal than he had previously done with Indian. We are informed that the property has no connection with the Seboekoe mine which was floated into a Singapore Company some two years ago, and subsequently went into liquidation, being separated from the latter by over 100 miles distance. The development of this new colliery has been under way for the last year and definite contacts for the sale of coal have been entered into with local shipping firms. Production on a commercial scale will commence from the beginning of next month.
The Straits Times, 22 February 1921, Page 8
The Glenapp, which is unloading at Port Swettenham a shipment of plant and materials of all kinds for the F.M.S., has on board, amongst other machinery, a locomotive, by Messrs. Manning Wardle and Co., of Hunslet, for the Malayan Collieries, Ltd., which company possesses on its Batu Arang property approximately four miles of private lines and sidings on which two locomotives of British make are already running.
The Singapore Free Press and Mercantile Advertiser, 23 March 1921, Page 6 and 24 March 1921, Page 188
Mr. J. Russell has been elected President of the Selangor Miners' Association. The Malayan Collieries Co. is allowing miners a rebate of 15 per cent during the tin slump.
The Malay Mail Wednesday March 30, 1921
Malayan Commerce. Fifth Annual Report From the fifth annual report of the F.M.S Chamber of Commerce. Extract: “Coal, either locally produced or imported is now the principle fuel and is becoming more and more so. The only local coalfield is that at Batu Arang near Rawang in Selangor which is owned and operated by Messrs. Malayan Collieries Ltd. During the year this field produced 248,000 tons as against 191,000 tons during 1919, an increase of 30 %. This increase should have been much greater but for a serious fire in the main airway which accident, practically arresting production in one of the mines, seriously reduced outputs for three of the middle months of the year. The position now, however, is that development on the field is so far advanced as to make available for distribution during 1921 and thereafter quantities amply sufficient to meet all likely local fuel demands. The output for the second half of the year showed an increase in 50% over the first and the Colliery is now producing at the rate of 400,000 tons per annum, which output could easily if needed be further increased. Prices during 1920 remained practically unaltered, the average over the year to all consumers being $9 per ton f.o.r. pit-head. Railway rolling stock was ample during the last months of the year to handle increased output and no anxiety is felt in this connection in respect of the coming twelve months. With easier labour conditions, prices during 1921 are expected to show a decline, but the greater proportion of this may unfortunately be off-set to consumers by the recent 25% increase in railway freights rates.”
The Singapore Free Press and Mercantile Advertiser, 4 April 1921, Page 6 and , 7 April 1921, Page 216
Last year the Malayan Collieries, Ltd produced 248,000 tons of coal. The output would have been greater but for a serious fire in the main air-way. The output this year should, however, be more than ample to meet all requirements
Letter from Khai Sun and Company, 97 and 99 High Street, Kuala Lumpur to the Senior Warden of Mines, Kuala Lumpur.
Kuala Lumpur, 15 May 1921. Sir, I have the honour to request the favour of information relating to the policy of the Government regarding the issue of licenses to prospect for coal. 2. I am representing a syndicate which has purchased some valuable data respecting a certain area of State land containing strong indications of the existence of coal deposits, and before an application is lodged for prospecting rights over such land we deem it desirable in the first place to ascertain the attitude of Government in regard to the grant of these rights. We desire to know whether the Government is prepared to encourage exploration for such mineral and in what respects the Government will require to be satisfied as a sine-qua-non to the approval of an application. I hope the Government will appreciate the necessity, in the interest of the applicant, of such an assurance- having regard to the fact that the divulgence of particulars such as are furnished in the application, so far as they are indicative of the location of the probably coal deposits, would amount to giving away, gratis, or valuable data to the detriment of the applicant, should the application be subsequently refused. 3. I also request information as to the terms, conditions and reservations subject to which State land will be alienated for coal exploration. I have etc., Sd. Tan Loy Kow.
Document in the National Archives of Malaysia: Sel Sect. 3752/1921
Memorandum on the Policy of Government regarding the issue of Prospecting Licences for Coal. From Ag. Senior Warden of mines, F.M.S. Kuala Lumpur, 12th July, 1921.
I think that generally speaking the fee for the Prospecting Licences should be kept encouragingly low but that the price should not be fixed. 2. The premium and rent for the lease should be reasonable as the area covered by any coal mining lease would necessarily be a large one with possibly a considerable area of useless ground. A heavy premium only hampers the industry, adds to the overhead charge and so the price of coal, a thing to be avoided as far as possible. 3. Royalty. The Malayan Collieries pay 25 cents a ton which at the present prices represents an average of 2 ½ %. I see no reason for altering this arrangement in favour of an ad valorem royalty, as the latter would lead to complications owing to the various qualities of coal produced. 4. Export Duty. Power to impose this should be retained. I agree generally that such coal should be free over British Malaya but subject to export duty elsewhere and that some deterrent duty should be imposed in the event of the Federated Malay States being starved of coal owing to excessive private consumption outside the Federated Malay States. The duty should take the form of a fixed sum not exceeding say $2/- per ton. 25% ad valorem. 5. The obligations mentioned in paragraphs 5 and 6 of the summary attached to (1) are covered in by paragraph 16 (x) of the Mining Enactment 12/11. Those under paragraph 7 and 8 would be covered by paragraph 16 A (x), xii and xiii) by substituting “coal” for “oil” where necessary. In default of amending the Enactment to include coal in paragraph 16 A, they would have to take the form of special conditions in this lease. These special conditions are detailed in the Malayan Collieries lease which also contains the gist of the other conditions mentioned except that no export duty is to be charged. Sd. G.E.G. Ag. Senior Warden of Mines, F.M.S. Kuala Lumpur 12 July, 1921.
Document in the National Archives of Malaysia: Sel. Sect. 3752/1921
LETTER FROM THE GENERAL MANAGER FEDERATED MALAY STATES RAILWAYS TO THE COLLECTOR OF LAND REVENUE 25TH MAY 1921 FEDERATED MALAY STATES RAILWAYS General Manager’s Office Kuala Lumpur Selangor, 25th May 1921 No. G.M.R. 8857/20. Confidential.
Sir, In reply to your letter of the 21st instant, No. (48) in Confidential 1821/20, forwarding a draft of the proposed agreement with Messrs. The Malayan Collieries Ltd. For the surrender of the Railway reserve at Batu Arang, I would refer you to Section 9 which provided that the lessees shall supply for the use of the Government such quantities of coal as may be applied for at a price not exceeding the lowest price at which coal of the quality required is supplied by the lessee to any other person. 2. The Railway Department already has and will continue to have very large contracts of coal with the Malayan Collieries at a price very considerably less than that at which coal is supplied to any other person. I should like to be quite clear that section 9 cannot be used in the future as an argument that contracts with the Railway should be based on the lowest price at which coal is supplied to other persons. I have the honour to be, Sir, Your obedient servant, Sd: P.A .Anthony General Manager To. The Collector of Land revenue Ulu Selangor Kuala Lumpur
From National Archives of Malaysia. Transcribed by P.C
The Singapore Free Press and Mercantile Advertiser (1884-1942), 9 July 1921, Page 16
COAL SUPPLIES IN THE MALAY PENINSULA. Official statistics from the Straits Settlements give interesting details of the imports of coal into that colony over a period of five years. Japan has been the principal source of supply, sending 419,000 out of 717,000 tons imported in 1915 and 392.000 out of 762,000 tons on 1916. For comparison the figures are given for three years in the following table: -
|
1917 |
1918 |
1919 |
|
Tons |
Tons |
Tons |
United Kingdom |
- |
- |
1,000 |
Australia and New Zealand |
40,000 |
8,000 |
65,000 |
India |
89,000 |
20,000 |
87,000 |
Borneo, Sarawak and Brunei |
23,000 |
28,000 |
17,000 |
Natal |
2,000 |
18,000 |
35,000 |
Japan |
408,000 |
370,000 |
271,000 |
Tonkin |
18,000 |
17,000 |
13,000 |
China |
28,000 |
28,000 |
- |
Dutch Borneo |
14,000 |
7,000 |
12,000 |
Other Places |
17,000 |
14,000 |
2,000 |
Total |
639,000 |
510,000 |
503,000 |
There can be no doubt that the working of indigenous coal at Rawang, in Selangor, one of the Federated Malay Sates, has had some effect on the local market, an effect that will be felt more fully when the Malayan Collieries reach their estimated output of 400,000 tons. In the four years to the end of 1919 they produced 628,682 tons, the output in 1919 being 191,293 tons. The power of plant employed in that year was 1,540 h.p. and the labour force averaged 1,372 men. Since then the collieries have obtained additional mining plant from the United Kingdom, and last year’s output is likely to show an advance upon previous figures. In 1919 the Federated Malay States Railways and the tin mines in the Malay States took the greater portion of local output, but 24,261 tons were exported. - Ch of Com. J l.
The Singapore Free Press and Mercantile Advertiser, 14 July 1921, Page 17.
Editorial . “More Industries. July 9. Extract:, “ the coal from Malayan collieries is becoming an appreciable factor in calculating our wealth. In the four years to the end of 1919 the mines produced 191,293 tons, and the full output is 400,000 tons per annum. The labour force for 1919 averaged 1,372 men. If there are more coal seams about, they ought to be at once exploited.”
LETTER FROM SECRETARY TO RESIDENT, SELANGOR TO J.A. RUSSELL AND COMPANY, 19TH JULY, 1921 Kuala Lumpur, 19th July 1921 (3) 1353/1921
Gentlemen, With reference to your application of the 21st March, 1921 for the excision of 30 acres from Mining Lease 2549 and the subsequent grant of this area to Malayan Matches Limited, I am directed to inform you that upon surrender of the mining lease for this 30 acres the land will be granted to Malayan Matches Limited upon the following terms:- Premium Nil Rent $4.00 per acre Special Condition The Land hereby granted shall be used for the purpose of a match factory and buildings appurtenant thereto. 2. I am to request you to communicate with the District Officer, Ulu Selangor and arrange with him the necessary details connected with this transaction I have the honour to be, Gentlemen, Your obedient servant, G. ?Hemmant Secretary to Resident, Selangor Messrs. J.A. Russell and Company Agents and Secretaries The Malayan Collieries Limited, Kuala Lumpur
From National Archives of Malaysia. Transcribed by P.C
AGREEMENT BETWEEN THE GOVERNMENT OF SELANGOR AND MALAYAN COLLIERIES, LIMITED. 16TH JULY 1921 AGREEMENT BETWEEN THE GOVERNMENT OF SELANGOR AND MALAYAN COLLIERIES, LIMITED.
An Agreement between the Resident of Selangor for and on behalf of the Government of Selangor hereinafter called the lessor and Malayan Collieries, Limited, hereinafter called the lessee. 2. The lessee hereby agrees to surrender to the lessor an area coloured red on the plan attached to and forming part of this agreement computed to be 35 acres 2 roods 5 poles and surveyed as portion 1.604, from the land surveyed as portion 1,285 and held by the lessee under mining lease, 2,549. 3. The lessor hereby agrees to grant the lessee, at the lessee’s request made in writing in the due course of the lessee’s mining operations, the sole right to extract from the area hereby surrendered all coal that may be found therein. 4. On receipt of authority to commence mining operations in the area hereby surrendered the lessee shall pay to:- (a) the Collector of Land Revenue, Ulu Selangor, a rental on the total area hereby surrendered at the rate of $1 (one dollar) per acre per annum. (b) the State Treasurer in Kuala Lumpur a royalty of 25 cents per ton of coal removed or transported beyond the boundaries of the land hereby surrendered. 5. No export duty shall be chargeable on any coal won from land hereby surrendered. 6. The lessee hereby undertakes so to conduct his mining operations on the land hereby surrendered as not to interfere with or obstruct the construction, maintenance or use of the railway or sidings or any works appurtenant thereto or to endanger the good order or stability thereof. 7. The lessee shall furnish to the Resident of Selangor on or before the 15th day of January, April, July and October in every year a return showing for the three months immediately preceding the month in which the return is required to be furnished, (a) the amount of coal raised, (b) the amount of coal sold, (c) the stock of coal in stacks, trucks and bins on the last day of the month immediately preceding the month in which the return is required to be furnished. (d) the price or prices at which the coal has been sold and the amount paid to the Government as royalty. 8. The lessee shall from time to time on demand produce for the inspection of the Commissioner of Trade and Customs and the Senior Warden of Mines and of any officer authorised by either of them all books and accounts kept in pursuance of the obligation imposed by section 16 (x) of “The Mining Enactment 1911,” and shall at all times permit, and on demand afford, all reasonable facilities for the checking by the said Commissioner or Senior warden or any officer authorised as aforesaid of the amount of coal in stock. Provided that the lessee shall not be required to remove any of such books from the place or places where they are for the time being kept. 9. The lessee shall on application made from time to time by or on behalf of the said Resident or the Chief Secretary to Government, Federated Malay States, supply for the use of the Government such quantities of coal as may be applied for at a price not exceeding the lowest price at which coal of the quality required is supplied by the lessee to any other person. Provided that, should the Government at any time require a supply of coal in excess of 200 tons but not exceeding 2,000 tons per mensem, three months’ notice of such requirement shall be given to the lessee, and should the Government at any time require a supply of coal in excess of 2,000 but not exceeding 5,000 tons per mensem, six months’ notice of such requirement shall be given to the lessee, and should the Government at any time require a supply of coal in excess of 5,000 tons per mensem, 12 months’ notice of such requirement shall be given to the lessee. 10. All Government officers authorised in that behalf by the said Resident in writing shall at all times have free access to the land comprised in this agreement with all necessary workmen and apparatus for the purpose of winning and taking therefrom mineral oil for the ships of His Britannic Majesty’s Navy and for other purposes of His Britannic Majesty’s Admiralty and the lessee shall in no way obstruct or interfere with any such entry or operations. Provided that for any loss or damage caused to the lessee by the exercise of the rights conferred upon this condition, reasonable compensation shall on complaint being made within twelve months by the lessee to the said Resident be payable by the Government to the lessee: and provided further that, if and so often as the Government and the lessee shall differ as to the merits of any claim for such compensation as aforesaid or as to the amount of compensation to be paid, such difference shall be submitted to the arbitration of two arbitrators, one to be appointed by the said Resident and the other by the lessee and such arbitrators shall appoint an umpire or third arbitrator. Such arbitration shall proceed in accordance with the provisions of “The Arbitration Enactment, 1912,” or any enacted modification thereof. 11. The permission to extract coal from the surrendered area granted in accordance with clause 3 of this agreement shall be liable to be cancelled by the lessor upon breach by the lessee of any of the obligations herein set forth and compensation shall be paid by the lessee for any damage to the railways or sidings or any works appurtenant thereto due to his mining operations. Questions of damage, of liability, and of compensation shall be decided in the manner provided in the last preceding paragraph. 12. This agreement shall continue and remain in force for the term of the mining lease granted to the lessee in respect of portions 1,596 and 1,597 formerly contained in portion 1,285 and held under mining lease 2,549 and of any extension of the said mining lease and shall cease upon the determination thereof. Dated at Kuala Lumpur this 16th day of July 1921 In witness whereof the said Seal of the State of Selangor Resident has hereunto set his hand and caused the public seal of the Sd/-Oliver Marks Ag. British State to be affixed at Kuala Lumpur Resident, Selangor this 16th day of July 1921 in the presence of G. ?Hemmant Seal of Malayan Collieries Ltd. Sealed by the said lessee this 15th day of Malayan Collieries Ltd July 1921 in the presence of sd/-J.A. Russell Director Henry E. Swan Collector J.A. Russell & Co. Sd/-H.D.Brown Secretaries and Agents
From National Archives of Malaysia. Sel 565419/20 Transcribed by P.C
The Straits Times, 2 August 1921, Page 3
Opportunities in Malaya. How Australians Fail to Grasp Openings. Lt-Col. R. F. FitzGerald, D.S.0., writing in an Australian paper, says: - Extract:“ and the Malayan Collieries Company, which have recently struck good coal in Borneo, promises to develop into something big.”
The Straits Times, 8 August 1921, Page 7, and The Singapore Free Press and Mercantile Advertiser , 13 August 1921, Page 6 , and 18 August 1921, Page 103 SATURDAY, AUGUST 13, 1921
Messrs. W. McEwan and E. Barrett two colliery mining engineers, have just arrived in Kuala Lumpur to join the staff of Malayan Collieries, Ltd. Mr. McEwan goes to the Company's Batu Arang property, while Mr. Barratt in leaving shortly for the new coalfield which Malayan Collieries is opening in Borneo. (M. M.)
The Straits Times, 17 August 1921, Page 9 and The Malay Mail August 17, 1921
State of Selangor. Administration Report For 1920. The Hon. Mr. Oliver Marks, Acting, British Resident, Selangor, 1920, in his report on, the State for that year states: Extract:“ On the Malayan Collieries 247,911 tons of coal were raised and sold to the public during the year. The number of labourers employed both underground and on the mine ranged from 1,200 in January to 3,000 in December. The health of the labourers was satisfactory. The main incline of the South mine had been driven to a distance of 2,000 feet at the end of the year, the total length of the incline of the North mine being 1,827 feet at the same date. The coal produced from this mine is reported to be excellent."
The Straits Times, 29 August 1921, Page 8
According to the Times of Malaya, Mr. Rostevor, who was found in a hotel at Ipoh with his throat badly cut, is reported to have resigned, his position with the Malayan Collieries at Batu Arang of his own accord and gone to Ipoh with introductions to one or two local people to assist him secure another billet. He had been some years in Australia before coming to this country.
The Straits Times, 8 September 1921, Page 8
A verdict of suicide whilst of unsound mind was returned by the Coroner in the case of Mr. Maurice Rostrevor who cut his throat in the Station Hotel, Ipoh. lt was shown that deceased had left his employment in Malayan Collieries of his own accord, and that besides $123 on him at the time of his death he had a bank balance of $1,000.
Letter from Malayan Collieries to the Secretary to the Resident, Selangor, Kula Lumpur. PHF/PHF. J A Russell & Co Kuala Lumpur. October 18th 1921
Sir, We have the honour to inform you that we have this day paid to the State Treasurer, Selangor, the sum of Dollars Nineteen Thousand Two Hundred and Eighty Four, Cents Seven- Dols. 19,284-07- being Royalty at 25 cents per ton on Coal, for the third quarter of 1921, ending September 30th, as the statement enclosed. We have the honour to be, Sir, Your obedient servants, Signed ? Malayan Collieries. J A Russell ad Co. manager Agents & Secretaries.
The Singapore Free Press and Mercantile Advertiser (1884-1942), 4 November 1921, Page 6
Mr. Thomas L. McCall , until recently Mines Manager to the Malayan Collieries, has been appointed mining engineer to the Arcadia Coal Co., Ltd. of Stellaton, Nova Scotia.
The Straits Times, 18 November 1921, Page 8
The directors of Malayan Collieries. Ltd., announce a final dividend of 10 per cent, payable on or about January 15.
Malayan Collieries. [Letters] The Straits Times, 19 November 1921, Page 10 .
Malayan Collieries. To the Editor of the Straits Times . Sir. In December last Malayan Collieries, Ltd., issued a circular to its shareholders informing them that the Board had entered into an agreement to purchase the Batoe Besar Concession in Borneo, with workable coal in sight estimated at 40,000,000 tons. In consequence shareholders were informed of a further issue to them of capital amounting to 20 per cent. of their holdings at a premium of $6 and 20 per cent free. It was being stated that the new property was being paid for mainly in shares, but that “your Directors….feel confident that the acquisition of this Concession will in future considerably increase the rate of dividend earned by your shares, even allowing for the increase in the Company’s issued capital.” This is the whole of the information bearing on the terms of purchase that I am able to extract from that three page circular. 0. With a confident increase in the rate of dividend one naturally expected the shares to rise; but instead of this they have fallen about fifty per cent. I was naturally anxiously looking forward to the company’s annual report and accounts and the annual meeting which is now overdue. But to my great annoyance and disgust, I received a circular yesterday which is silent about the new concession, and which, without giving any reason therefor, says, “ Your directors beg to inform you that it has been considered advisable to alter for the future the end of the Company’s financial year from June 30 to December 31”, a proceeding, by the way, that would involve a breach of the S.S. Companies Ordinance and presumably of the F.M.S. Ordinance. The result of the circular seems to me to consist largely of camouflage; while the dangling before me of a ten per cent dividend in January quite fails to reassure me, although no doubt intended for that purpose. 0. Meanwhile it is well known that not everything connected with the new concession has gone smoothly. It is rumoured that work on the concession was stopped or very much curtailed some time ago, that the machinery installed was not satisfactory, that the royalty fixed was found to be much too high, but that this has now been very much reduced. But the majority of the shareholders are kept in ignorance, while anyone who may have had inside information has been in a position to take advantage of that ignorance. In the circumstances I think it advisable publicly to ask Mr. J. A. Russell, (who like certain Tuan Besars in Singapore, appears to think that he has sufficient time, not to mention other qualifications to act as a director of a number of rubber companies) to be good enough to find the time to give shareholders the information due to them and, in particular to answer the following questions, viz, (1) What is the issued capital of the company? (2) What were the terms of purchase originally agreed upon? (3) Who were the middlemen? (4) How much of the purchase price was received by those middlemen? (5) What are the present terms for working the concession? (6) Why have shareholders not been promptly informed of all important faits accomplis? (7) Why (in whose interests) have the directors decoded to alter the end of the company’s financial year? (8) Why not hold the usual annual meeting, and then, if thought advisable, make an alteration? . (9) Why are not the public or the shareholders informed of the monthly output or sales? (10) Why have the shares fallen about fifty per cent since the acquisition of the concession? In my opinion those in control should be given all this information long ago. - Yours, etc FREDK. C. Peck. Singapore, November 17, 1921.
Royalty on Coal for Malayan Collieries.
Return for the first Quarter Ending 31 March 1921
Months |
Coal raised |
Total raised |
Coal Sold |
Total sold |
Selling price |
|||
1921 |
For sale |
Slack for Boilers |
|
Screened |
Unscreened |
Slack |
|
|
January |
27687-18-2 |
1358-2-0 |
2904-0-2 |
19594-17-2 |
3462-15-3 |
4630-5-1 |
27687-18-2 |
|
February |
20062-6-0 |
1347-5-3 |
21409-11-3 |
13831-4-1 |
2532-5-1 |
3698-16-2 |
20062-6-0 |
|
March |
26994-8-0 |
1250-0-0 |
28244-8-0 |
18780-17-2 |
3113-4-1 |
5100-6-1 |
28994-8-0 |
|
|
74744-12-2 |
3955-7-3 |
78700-0-1 |
52206-19-1 |
9108-5-1 |
13429-8-0 |
74744-12-2 |
|
Return for Quarter Ending 30 June 1921
Month |
Coal raised |
Total raised |
Coal Sold |
Total sold |
Selling price |
|||
1921 |
For sale |
Slack for Boilers |
Tons c qr |
Screened |
Unscreened |
Slack |
Tons c qr |
Standard prices per ton |
April |
21927-3-3 |
1412-5-0 |
23339-8-3 |
14613-14-0 |
3253-14-0 |
4059-15-3 |
21927-3-3 |
Screened $13/- |
May |
25800-5-3 |
1480-4-0 |
27280-10-1 |
18527-11-1 |
3061-15-2 |
4210-19-0 |
25800-5-3 |
|
June |
25805-18-2 |
1477-13-3 |
27283-12-1 |
18430-8-1 |
2672-11-1 |
4702-19-0 |
25805-18-2 |
|
|
73533-8-0 |
4370-3-1 |
77903-11-1 |
51571-13-2 |
8988-0-3 |
12973-13-3 |
73533-8-0 |
|
Note. Owing to the present depression in the tin mining industry a special rebate on the above standard prices, of 15%
is allowed to the Tin Miners, provided accounts are settled punctually.
Royalty on Tons 73533-8-0 @ 25 cts per ton, equals $18,383.35
Return for the third Quarter Ending 30 September 1921
Month |
Coal raised |
Total raised |
Coal Sold |
Total sold |
Average selling price realised during third quarter |
|||
1921
July |
For sale |
Slack for Boilers |
|
Screened |
Unscreened |
Slack |
|
|
Tons c qr 29167-5-1 |
Tons c qr 1476-8-3 |
Tons c qr 30643-14-0 |
Tons c qr |
Tons c qr 3302-14-0 |
Tons c qr 6137-19-3 |
Tons c qr 29167-5-1 |
$8.78 per ton |
|
23806-7-2 |
1473-12-0 |
25279-19-2 |
17240-19-1 |
2444-18-2 |
4120-9-3 |
23806-7-2 |
||
24162-12-3 |
1287-0-0 |
25449-12-3 |
16258-18-1 |
2597-17-0 |
5305-17-2 |
24162-12-3 |
||
|
77136-5-2 |
4237-0-3 |
81373-6-1 |
53226-9-0 |
8345-9-2 |
15564-7-0 |
77136-5-2 |
|
Total amount of royalty $19209.07
Return for the fourth Quarter Ending 31 Dec. 1921
Months |
Coal raised |
Total raised |
Coal Sold |
Total sold |
Average selling price on all grades |
|||
1921
October |
For sale |
Slack for Boilers |
|
Screened |
Unscreened |
Slack |
|
|
Tons c qr 25669-14-0 |
Tons c qr |
Tons c qr 26984-14-0 |
Tons c qr |
Tons c qr 2258-14-3 |
Tons c qr 6686-17-0 |
Tons c qr 25669-14-0 |
$8.48 per ton |
|
22902-6-2 |
1366-0-0 |
24268-6-2 |
15107-19-3 |
2342-11-0 |
5452-4-3 |
22902-6-2 |
||
25803-3-2 |
1399-0-0 |
27202-3-2 |
16592-4-0 |
2509-7-0 |
6701-12-2 |
25803-3-2 |
||
|
74375-4-0 |
4080-0-0 |
81373-6-1 |
48423-17-0 |
7110-12-3 |
18840-14-1 |
74375-4-0 |
|
Royalty on tons 74375-4-0 @ 25 cts per ton $18,593.80
Document in the National Archives of Malaysia. Sel. 1896/21
Royalty Return for the first Quarter Ending 31st March 1922
Month |
Coal raised |
Total raised |
Coal Sold |
Total sold |
Average selling price on all grades |
|||
1922
January |
For sale |
Slack for Boilers |
|
Screened |
Unscreened |
Slack |
|
|
Tons c qr 29372-1-3 |
Tons c qr 1563-3-2 |
Tons c qr 30735-5-1 |
Tons c qr |
Tons c qr 3124-18-0 |
Tons c qr 2961-18-1 |
Tons c qr 29372-1-3 |
$8.12 per ton |
|
20270-5-3 |
1461-12-3 |
21731-18-2 |
14205-10-2 |
1368-5-2 |
4696-9-3 |
20270-5-3 |
||
22666-2-2 |
1539-12-3 |
24205-15-1 |
15032-10-2 |
2496-14-1 |
5136-17-3 |
22666-2-2 |
||
|
72308-10-0 |
4364-9-0 |
76672-19-0 |
48533-6-2 |
6839-17-3 |
12795-5-3 |
72308-10-0 |
|
Royalty Return for the second Quarter Ending 30 June 1922
Month |
Coal raised |
Total raised |
Coal Sold |
Total sold |
Average selling price on all grades |
|||
1922
April |
For sale |
Slack for Boilers |
|
Screened |
Unscreened |
Smalls |
|
|
Tons c qr 24013=17-3 |
Tons c qr 1370-19-2 |
Tons c qr 25384-17-1 |
Tons c qr |
Tons c qr 1904-8-3 |
Tons c qr 5900-14-1 |
Tons c qr 24013-17-3 |
$8.22 per ton |
|
21997-11-2 |
1263-1-3 |
23260-13-1 |
14745-2-1 |
3007-13-1 |
4244-16-0 |
21997-11-2 |
||
18909-8-3 |
1230-3-1 |
20139-3-1 |
13022-12-3 |
2213-5-0 |
3673-11-0 |
18909-8-3 |
||
|
64920-18-0 |
3864-4-2 |
68785-2-2 |
43976-9-3 |
7125-7-0 |
13619-1-1 |
64920-18-0 |
|
Royalty on Tons 64920-18-0 @ 25 cts per ton = $16,230.22
Royalty Return for the third Quarter Ending 30 Sept 1922
Month |
Coal raised |
Total raised |
Coal Sold |
Total sold |
Average selling price on all grades |
|||
1922
July |
For sale |
Slack for Boilers |
|
Screened |
Unscreened |
Smalls |
|
|
Tons c qr 21010-9-3 |
Tons c qr 1293-2-2 |
Tons c qr 22303-12-1 |
Tons c qr |
Tons c qr 2554-16-1 |
Tons c qr 3639-7-1 |
Tons c qr 21010-9-3 |
$8./- per ton |
|
21775-7-3 |
1219-8-2 |
22994-16-1 |
15337-13-0 |
2769-18-0 |
3667-16-3 |
21775-7-3 |
||
20849-9-3 |
1348-8-1 |
22197-18-0 |
15821-17-2 |
2467-5-0 |
2560-7-1 |
20849-9-3 |
||
|
636?5_7-1 |
3860-19-1 |
67496-6-2 |
45975-16-3 |
7791-19-1 |
9867-11-1 |
63635-7-1 |
|
Royalty on Tons 63635-7-1 @ 25 cts per ton = $15,908.84
Royalty Return for the fourth Quarter Ending 31st Decr: 1922
Month |
Coal raised |
Total raised |
Coal Sold |
Total sold |
Average selling price on all grades |
|||
1922
October |
For sale |
Slack for Boilers |
|
Screened |
Unscreened |
Smalls |
|
|
Tons c qr 22672-3-1 |
Tons c qr 1400-0-1 |
Tons c qr 24072-3-2 |
Tons c qr |
Tons c qr 2612-3-2 |
Tons c qr 3099-10-3 |
Tons c qr 22627-3-1 |
$8.01per ton |
|
20194-13-3 |
1487-2-0 |
21681-15-3 |
15283-10-3 |
2385-2-3 |
2526-0-1 |
20194-13-3 |
||
22617-14-3 |
1402-2-3 |
24019-17-2 |
16677-12-3 |
2830-12-3 |
3109-9-1 |
22617-14-3 |
||
|
65484-11-3 |
4289-5-0 |
69773-16-3 |
48921-12-2 |
7827-19-0 |
8735-0-1 |
65484-11-3 |
|
Royalty on Tons 65484-11-3 @ 25 cts per ton = $16,371.15
Document in the National Archives of Malaysia. Se Sect. 1525/1922 Quarterly Return of Royalty on Coal sales for 1922
The Straits Times, 16 May 1922, Page 10 CORRESPONDENCE. The Straits Times is not responsible for the opinions of its correspondents. Correspondents should bear in mind that letters must be short and to the point. Long rambling epistles are liable to be rejected or ruthlessly cut down. Correspondents must enclose their names, not necessarily for publication but as guarantee of good faith. No letter unaccompanied by the writers name will be inserted.
Malayan Collieries To the Editor of the Straits Times 0. Sir,- There is one important fact in connection with the purchase of the Goenoeng Batoe property which has not yet been brought to the notice of shareholders. 0. From the documents officially filed with the Registrar of Companies at Kuala Lumpur, I notice that one clause in the option given to Mr. Hong Guan dated October 5th, 1920 (which option was not transferred by him to Mr. Khoo Wee Chuan until November 19 1920, and was not transferred to Malayan Collieries, Ltd., until later still,) reads as follows:- 0. (k) After the allotment of the 20,000 shares of Messrs. Malayan Collieries, Ltd., has the right to nominate a director on the board of the Malayan Collieries, Ltd., and to appoint representatives to check the output of the mine” 0. How could Messrs. J. A. Russell and Co. and Mr. Hong Guan accept such a clause except at as agents of Malayan Collieries, Ltd., and how could the Eastern Mining and Rubber Co., Ltd make such a stipulation unless they were dealing with an accredited agent (or agents) of Malayan Collieries Ltd? Yours, etc., FREDK. C. PECK. Singapore, May 15, 1922
To the Editor of the Straits Times Sir, I have read with great Interest your leader of the 13th inst. under the above heading. There is no doubt that the points raised by Mr. Peck have created a very considerable amount of interest among the shareholders, and there are many who are anxiously awaiting fuller details. In the event of further information not forthcoming, I beg to suggest that the shareholders get together and take such steps as will procure a satisfactory explanation covering the Goenoeng Batoe Besar deal. Personally, I should like to see Mr. Peck appointed to look after our interests. Would he be prepared to do this? Funds of course, would be required for such an action, but I am sure that shareholders would be quite willing to subscribe to same in proportion to their holdings.- Yours, etc., SHAREHOLDER. Singapore, May 15, 1922
The Straits Times, 18 May 1922, Page 10 Malayan Collieries. To the Editor of the Straits Times. Sir, I have read Shareholder's letter in your issue of the 10th and quite agree with him that it would be desirable to see Mr. Peck appointed to look after our interests in this matter. As for funds I suggest that shareholders subscribe say 10 or 20 cents per share they hold. If many shareholders join I think 10 cents per share would be quite sufficient. I am the owner of nearly one thousand shares and am willing to participate. - Your etc., P.D. Singapore, May 17, 1922
To the Editor of the Straits Times. Sir, - having followed with great interest all that has appeared in the Straits Times relative to the above, I heartily support “ Shareholders” suggestion, that Mr. Peck should be asked to take up the case on our behalf, and although, only a small holder, I would willingly contribute my quota towards expenses. - Yours etc., ANOTHER SHAREHOLDER. Seremban, May 17, 1922.
The Straits Times 9 June 1922 page 9 Malayan Collieries To the Editor of the Straits Times Sir,- Duly appreciating as I do, the high reasons for the attitude taken up by you in regard to further discussion of the purchase of the Goenoeng Batoe Besar property, I feel sure that having printed a very long ex parte letter from Messrs. J.A. Russell and Co., purporting to give the material facts of the case, you will in justice to myself and the shareholders, see equally good reason for allowing me to make the following much shorter reply, which was written before I saw your note. In it I confine myself to replying to only a small part of Messrs J. A. Russell and Co.’s letter, and the more by way of supplying important facts omitted by them than in any way of argument. Yours etc. FRED. C. PECK. Singapore, June 8, 1922 0. (144 words) Untitled [Letters] 0. The Straits Times, 9 June 1922, Page 10 0. Sir,—lt would take up far too much of your valuable space to reply in full to Messrs. J. A. Russell and Co.'s account of the facts relating to the purchase of the Goenoeng Batoe Besar property as given in your issue of the 5th instant. I will, therefore, with your kind permission, reply to only a small part of the letter, and that by way of supplying important facts omitted by them than by way of argument. 0. Messrs. J. A. Russell and Co. have now admitted giving to Mr. Ng Hong Guan a letter or “chit” dated September 27 1920, written on Malayan Collieries letter paper and signed For Malayan Collieries Ltd J. A. Russell and Co. Managing Agents and Secretaries.” Authorizing Mr. Ng Hong Guan “ to apply for options over coal properties in the Dutch East Indies” But they argue this had no reference to the Goenoeng Batoe Besar property, also known as the Pamoekan Bay property. I would, therefore, invite Mr. J. A. Russell to explain another letter of the very same date, namely September 27th 1920, also on Malayan Collieries Ltd. letter paper, and signed by Mr. Russell, which letter has been seen by other shareholders than myself, and which read as follows:- 0. Dear Mr. Hong Guan, 0. With reference to your visit of this morning, I have considered the proposition which you put before me, and wish to say that though I am prepared to send an expert to prospect and report upon Goenoeng Batoe Besar, I consider the price asked is a high one. 0. I am not anxious to obtain an option over the Goenoeng Batoe Besar property, because I have just secured one over Seboekoe. I understand that Seboekoe is more difficult to work than Goenoeng Batoe Besar, but the quality of the coal is about the same and the quantities are greater. We should have to spend more money in developing Seboekoe, but against this would be the fact that the price asked for Seboekoe is much cheaper than you and your friends require for Goenoeng Batoe Besar. 0. Once Seboekoe were developed would be ale to compete with Goenoeng Batoe Besar, and I would point out that although you are getting a very good prices at the present time for Goenoeng Batoe Besar coal, with competition these prices cannot continue- and I expect to see the price drop to about $15 a ton cif Singapore. Both Seboekoe and Goenoeng Batoe Besar coal are the same as Malayan Collieries coal, that is to say they are high class lignites or sub bitumous coal of the tertial measures. The two Borneo coals are better than our coal because they have less water and will store, and therefore can be used for shipping- but, if we briquette our coal, it can also be used for shipping, and a briquetting plant is now on its way out from England. 0. In regard to ash, our coal is much superior to the Borneo coal, and while we have two seams each 30 to 40 feet thick, have an area of nearly 10.000 acres and over 1000 million tons of coal Goenoeng Batoe Besar appears to be a very small place and only contain 12 million tons of coal. 0. Mr. Platt says that 12 millions should be confirmed by further investigation, and his means that we ought to do a good deal of prospecting. 0. In view of the distance of the Goenoeng Batoe Besar from Kuala Lumpur, of the absence of prospecting work done on the property, and of the high price asked, and the further large amount of money we should need to sink in development, (say for the latter $1,500.000) we should want an option for at least six months. Yours sincerely (sgd) J. A. Russell. 0. The third and fourth paragraphs of this letter, in which reference is made to “our” coal and to the possession of 10.000 acres and over 100 million tons of coal, conclusively demonstrates that this letter signed by Mr. J. A. Russell as chairman or agent of Malayan Collieries Ltd. And consequently that Malayan Collieries Ltd. were seeking an option over the property) 0. This is also clear from a comparison between the first sentence of the second a paragraph of the above-given letter and the fourth paragraph of Messrs. J.A. Russell and Co.’s recent letter, in which it was stated that “the company” which had had the offer of this Seboekoe option and “directors” who obtained it 0. Further, at the annual meeting of Malayan Collieries Ltd. held on October 15 1920, the chairman Mr. J. A. Russell said: “The company’s representatives have inspected coal deposits in China, Siam and the Dutch East Indies, but hitherto with negative results. Two properties are now under examination” etc. Are not these two properties Goenoeng Batoe Besar and Seboekoe? 0. Again a circular dated December 23 1920, issued to the shareholders by the Company says, “the chairman at the last annual general meeting informed shareholders your board has for the past three years been actively searching coal properties, principally in the Dutch East Indies and South China” etc. and “the chairman added, however, that your board were at last engaged upon investigating a property of considerable promise and it was therefore proposed to double the authorized capital of the company”, and further “ your Board has, after full consideration and as a result of the favourable reports made, duly entered into an agreement to purchase” the property known as the Batoe Besar concession which “ has been thoroughly examined and reported on by Mr. E. England, your colliery manager, who from surveys made and diamond drill holes sunk under his direction by Mr. Brickman, also of your company, estimates the workable coal in sight at 40,000,000 tons. 0. Now to turn to another question in connection with the transaction, viz., the risk involved. Part of my evidence in regard to this question is another letter also on Malayan Collieries Ltd. letter paper, dated October 1, 1920, and reading as follows:- 0. Dear Mr. Hong Guan, 0. I have received your wire reading as follows:- 0. “Jar Kuala Lumpar 0. “ Fixed up option put deposit five per cent, sixty thousand Hong Kong Bank in joint names yours and Eastern’s money will not forfeit boat leaves tenth visiting you Sunday morning confirm wire Eastern share balance one thousand shares pay half fifty dollars each how much you taking wire or wait till I see you. Ng Hong Guan.” 0. To this I replied as under:- 0. “Nghongguan 227 Telok Ayer Street Singapore I confirm arrangement will meet you in office Sunday morning at ten. Russell” 0. I then sent another wire reading:- 0. “In drawing up option please ask for six weeks from time of boat leaving Singapore as one month insufficient for my men to go and return with report also ask that deposit be with Kuala Lumpur branch of bank. Russell” 0. I sincerely hope that you will do your very best to get six weeks instead of only one month’s free option dating from the time of sailing of your boat to Pamoekan bay. 0. It would be almost impossible for my men to report to me by cable, while a letter would take just as long to come as it would for Mr. Hastings and the others to get back here themselves. The only safe way would be for Mr. Hastings to return to Kuala Lumpur and make his report to me personally. He would have to get back a few days before the expiration of the period of the free option. I estimate that one month would be insufficient time, but that six weeks would be just long enough. Please do your very best to get the free period increased to six weeks. 0. Also please arrange that I pay the 5 per cent. Deposit into the Kuala Lumpur branch of the Hong Kong and Shanghai Bank. It would be much more convenient for me to do this and would make no difference to the Eastern Mining and Rubber Co. 0. Perhaps Mr. Phoey Keng Seng would have to come up here, but I think it would be a good thing if he did so in order that we could have a private talk about future arrangements. 0. He could go out and have a look at the colliery. If you bring him up I suggest that you do not bring him up on Sunday, but that he comes later in the week. However we can talk over the advisability of asking him to come to K.L. on Sunday morning when you are here. 0. Perhaps you think that it would be absolutely necessary for me to go to Singapore in which case there would be no need for Mr. Keng Seng to come here. 0. Yours sincerely, 0. (sgn) J A Russell 0. The above quoted letter contains two references to the "“free option” and also the information that “ money will not forfeit” 0. Two days later Mr. Hong Guan takes to Mr. Russell the fairly satisfactory option dated October 1, 1920, on the strength of which Mr. Russell deposited (not paid) the sixty thousand dollars in Hong Kong and Shanghai Bank. 0. Thereafter Mr. Russell’s letters to Mr. Hong Guan in reference to this option are on Messrs. J. A. Russell and Co.’s letter paper. Yours, etc., F C PECK
The Singapore Free Press and Mercantile Advertiser (1884-1942), 21 June 1922, Page 1 THE DAY'S NEWS. The court of appeal sat yesterday page 7 Also Mr. Barrett Leonard has delivered judgment in the Malayan Collieries case.
0. The Singapore Free Press and Mercantile Advertiser (1884-1942), 21 June 1922, Page 7 0. MALAYAN COLLIERIES. 0. A QUESTION OF PARTNERSHIP. 0. Mr. Justice Barrett- Lennard delivered judgment in the Supreme Court yesterday in regard to an application made by Mr. J. A. Russell, of Messrs J. A. Russell and Co., secretaries and agents of Malayan Collieries Ltd., of which he is Chairman, to set aside an order made by the Registrar of the Supreme Court, whereby plaintiff, Ng Hong Guan, was given permission to serve the writ in the action on the defendant in Kuala Lumpur, where he has his commercial domicile. (Continued see sources for 1922)
SCHEDULE OF SHARES OF MALAYAN COLLIERIES LTD OF $10/- EACH FULLY PAID
TRANSFERROR |
SHARES |
DISTINCTIVE NUMBERS FROM AND TO. - |
TRANSFEREE |
STAMP DUTY PAID |
J.A.Russell |
5,247 |
119754/ 125000 |
HUGH PROVIS & DONOVAN BENSON |
ALL ON ONE DEED $523.00 |
Total |
45,898 |
|
|
$523.00 |
D.O. Russell |
600 |
75430/76029 |
HUGH PROVIS & DONOVAN BENSON |
One deed |
Total |
700 |
|
|
$0.90 |
The Straits Times, 5 October 1922, Page 9 0. MALAYAN COLLIERIES CASE. 0. Suit Set Down For Next Month. 0. In the Supreme Court, Kuala Lumpur, on Monday, the Chief Judicial Commissioner sat to fix the dates for hearing of civil suits for this month. One at the cases which was mentioned, says the Malay Mail, was that of Mr. F. C. Peck against J. A. Russell, J. A. Russell and Company and the Malayan Collieries Ltd. Mr. Hastings was for the plaintiff, Mr. Shearn for the first and second named defendants, and Mr. A. S. Bailey for the Malayan Collieries. Mr. Hastings made formal application for an order to be made that the statement of defence be filed within 10 or 15 days.
The Straits Times, 7 November 1922, Page 9 0. Malayan Collieries. 0. Action Against Mr. J. A. Russell. 0. (From Our Own Correspondent.) Kuala Lumpur, November 6. 0. In the Supreme Court this afternoon before Sir Lionel Woodward, Chief Judicial Commissioner, Mr. Shearn, representing Mr. J. A. Russell, and Mr. A. B. Sanders, representing Ng Hong Guan, were occupied in arguing whether or not the civil action brought by the latter against the former claiming half a million dollars over the sale of the Malayan Collieries Borneo property , should stand over until a decision is arrived in the Peck v. Russell and J A Russell and Co. and the Malayan Collieries action.
THE MALAY MAIL, WEDNESDAY NOVEMBER 8TH, 1922. SUPREME COURT NG HONG GUAN-J.A. RUSSELL An Application Refused, and THE MALAY MAIL, THURSDAY NOVEMBER 9TH, 1922. SUPREME COURT NG HONG GUAN-J.A. RUSSELL Application Refused
THE MALAY MAIL, TUESDAY DECEMBER 19TH, 1922. SUPREME COURT F.C. PECK vs. J.A. RUSSELL AND OTHERS
The Straits Times, 20 December 1922, Page 9 0. Malayan Collieries. 0. Litigation Before Supreme Court,The Straits Times 21 December 1922 page 8
THE MALAY MAIL, THUSDAY DECEMBER 21ST , 1922. SUPREME COURT F.C. PECK vs. J.A. RUSSELL AND OTHERS
The Straits Times, 22 December 1922, Page 9 0. MALAYAN COLLIERIES CASE.
THE MALAY MAIL, FRIDAY DECEMBER 22ND , 1922. SUPREME COURT F.C. PECK vs. J.A. RUSSELL AND OTHERS
THE MALAY MAIL, SATURDAY DECEMBER 23RD, 1922. SUPREME COURT F.C. PECK vs. J.A. RUSSELL AND OTHERS
0. The Singapore Free Press and Mercantile Advertiser (1884-1942), 25 December 1922, Page 4 0. F. C. PECK vs. RUSSELL AND OTHERS
THE MALAY MAIL, WEDNESDAY DECEMBER 27TH, 1922. SUPREME COURT F.C. PECK vs. J.A. RUSSELL AND OTHERS
THE MALAY MAIL, THURSDAY DECEMBER 28TH, 1922. SUPREME COURT F.C. PECK vs. J.A. RUSSELL AND OTHERS
For details of all of the above litigation see Sources Page for 1922.