The South Australian Mining Association and the Marketing Of
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tJ. l f TIIE SOUTH AUSTRALIAN MINING ASSOCIATION AND THE MARKETING OF COPPER AND COPPER ORES L845 - LB77 A thesis presented for the degree of Master of Arts Mel Davies BA(Hons.) Kent Department of Economlcs The Universíty of Adel-aide March, 1977 . {t CONTENTS Pages i Summary Statement iv Acknowledgements v 1-51 CHAPTER 1 - FORMATION ORGANISATION GOAL S AND PRODUCTION Economic Mllíeu 1 Copper DiscoverY 4 6 The South Australían Míning AssocíaÈíon ' The Cost-Book and No-Liabílity System L6 Board of Dlrectors 19 27 Aíms and Objectíves . Productíon and DeveloPment 31 Period I, September, 1845 to March, f850 35 Períod II, April, 1850 to March, 1855 38 Period III, Apr1l, 1855 to March, 1861 42 Period IV, April, 1861 to March, 1869 44 Períod v, Apr1l, 1869 to LB74/75 48 Period VI-, L874175 to September, IB77 49 52-101 CHAPTER 2 - FOREIGN MARKXTING Direct Foreign Marketfng 57 Remittances - Banks and Agents 73 87 RemíÈtances - Exchange RaËes . Remíttances - SuPPIY of Goods 91 Private DrafÈs 94 Conclusíon 99 103-116 CHAPTE R3-DOMESTICMARKETING 103 Sales Èo Home Merchants Inter-Co loníal Purchasers 107 Local Manufacturers 109 Methods of Sale LLz LLl-L37 CHAPTER 4 - SMELTING 118 Smeltíng on Otrm Account Contracts and Sales to SmelÈing Companles L23 CHAPTER 5 - LAND TRANSPORT L38-L77 Bullock and Rail Transport 139 Contemporary Comment L4L Road Transport - Returns to Teamsters ].44 General Road Costs . L48 Supply of Road Transport L5l_ Haullers and Conflict 155 Deurand for Cartage L57 1845-1849 L57 1850-1851 158 1852-1856 159 1B5 7-1869 160 Raflway Charges 164 Land Transport Costs - Summary and Cornrnent. L7L Short Haul Transport L73 Bullock Drays - Services and Preventlon of Abuses L74 CHAPTER 6 - SEA TRANSPORT AT{D COMMUNICATION L78-203 Freíght Rates and Shippfng Arrangements 180 Contractíng and Shippíng AgenËs 185 BallasÈ and Dead tr^Ielght Cargoes L87 DirecE Shípments 188 Transhípments and Shipment.s via OÈher Ports 191 Port Charges L93 Insurance L94 Time DísÈance and CommunícaÈion L99 CHAPTER 7 - I4ARKETING COSTS - A COUNTERFACTUAL APPROACH 204-2L6 Returns on Copper and Ores 205 Marketing Costs 206 a) Road Transport Costs 206 b) Freíght Charges 207 c) PorË Charges 207 d) Insurance Costs 208 e) ConunÍssion Payments . 208 Net-Receipts - Copper and Ores 208 I Interest Rat,es 2t0 I Counterfactual Arguments 2L2 APPENDICES BIBLIOGRAPHY TABLES Páges Table 1.1 South Australian Balance of Trade, lB40 - L850 3 Table 1.2 South Australian Exports of Minerals, T^Ioo1, I^lheat & Fl-our 1843 - 51- 3 Table 1.3 Decennlal PrÍces, Britain, L82L - 1900 32 Table 1.4 Productíon of tr'íne Copper 1840 - 1880 Ctons) 32 Table l-.5 SA}4Ats Returns from September, 1845 to April-, 1848 (30 months) 36 Table l-.6 SAMA - Fixed Assets as at 3l- March, 1853 40 Table 1.7 Numbers Ernployed aÈ the Burra Burra Mines, 1851 - 1856 40 Table 1.8 Productlon at the Burra Burra Mines, 1851 - 1856 (ín tons) 4L Table 1.9 Prices of SAì,IA shares, 1859-1870 41 Table l-.10 Dívldend Payments, SAI{4, L845 - LB77 50 Table 2.1 Dispersion of SAI4A Produce Amongst Various Agencies in Terms of Copper Units 54 Table 5.1 S.A. Ïfheat Acreage and Productíon wíth Number of Cultívators 1848 - 1855 ls9 Table 6.1 Statistícs on Brítish & f'oreign Vessel-s Arríving at PorÈ Adelalde 1-845 - 1870 l-80 TabLe 6.2 ShÍpping Rates, Copper & Copper Ore from Adelaide, I Year Average (Shill-Íngs per ton) 183 Table 6.3 Insurance Preniums per ÉfOO to the U.K. (excludl-ng stamp duty) Paid by SA]{4, EACC' and Moonta (ln shíl-l-ings) 195 Table 6.4 Insurance Premiums p.t .$ tOO (excluding stamp duty) Paid by EACC 1856 - l-858 (ín shll-lings) 19s Table 7.l- Estimated Range of Receipts & Expenses on L75 1522 Ëons of Copper Ore 209 TabLe 7.2 Estimated Receipts & Road Charges on 24,285 tons Copper 209 ILLUSTRATIONS FIGUR.ES Pages Figure 5.1 Percentage of fi.100 capital outlay on bullock team and dray (3 ton loads) recovered per journey, Koorlnga - Adelaf<le at various carÈage rates. L46-L47 Figure 5.2 Ra1l Freight Pricing. ]-66 MAPS AI\ID ILLUSTRATIONS 1 Burra Burra Mlne, 1850, From Paínting by S.T. G111' 37-38 2 Burra Burra Mine, clrca 1870. 44-4s 3 The Burra Burra Mine in L875. 49-50 4 PCC Smel-ting Ï,Iorks, Kooringa, 1850. From pafnting by S.T. G111. 126-L27 5 EACC Snelting Ïforks, PorÈ Adelaide, cLrca 1880' r-33-134 6 Adelaide to the Burra [uap]. 153-154 200-20L 7 Mails to the AusÈralian Colonles, 1855-56 [Map]. APPENDICES Appendix 1 SAMA - Receipts fon Copper 6nd Coppen )v'e 1845-78, Appendix 2 SAltLA - Coppey Ionnage Receiued øtd Dístz'ibuted' J-845'L87B. Appendix 3 SAMA - Coppen }v'e Produetion ond Dístribution' 1845-7878. Appendix 3A Copper, }r,e Produetíon at the Burra Buz'z'a lÍínes qrtd Retuvms of Copper from SmeLters to SAMA L845-1878, Appendíx 4 Estinaied Returrts from Ouez'seas Agents J-845-7878- Appendíx 5 íAMA - Retuzws, Costs, Profits qnd Numbers ErrrpLoaed J.845-7878. Appendix 6 Ore Pz,odttction, Proceeds & Eæpen&Lture Burz'a Buz'lø Mines 7845-7877 (craph) Appendix 6A Buyna Bury,a Mines J.845-LB?7 Pz,oduct ScheduLe fon Laboun (Graph) Appendix 7 IeanLy Pz,ofits Díuidends and RentaL Receipts - SAluiA 1B45-1-877 (craph)" Appendíx I PvLce Distribution of AdeLaide øtd Intet-CoLoniaL Coppez' SaLes, SAMA L849-1B69 (Based on Príees of 12,238 tons SoLd &. as Recorded. ín SAA, BRG 22' 957 e 960) (Graph) Appendix 9 Auez,age Price of Copper at AdeLaide 1849-1890, Appendix 10 AdeLaide Purehasers of SAMA Coppen qrtd )v'e 1847-1B72 (Puz,ehasens of ÅL,000 plus per Aear). Appendíx 11 Pz"Lee ffi.d usage of Wood-EueL ætd CoaL bg SA-14A, PCC øtd EACC 7849-1876. Appendix 12 Dnafts SoLd by SAMA to ShavehoLdevs Øtd Bank of Austz'aLasia LB45-1-872 (At Premium øtd Díscount Rates). Appendix 134 South Austv'aLíút Erpoz'ts L 840-18 80, Appendix 138 PopuLation of South AustvaLía 1840-1881-. Appendíx 14 SAluiA Shaz,ehoLders. Appendíx 15 SAI4A - Boards of Direetoz's. Appendix 16 Euidence of Dou,bLe-Entry Bookkeeping by SAMA Appendlx 164 A Breakdot'tn of Eæpend'Lture a.s Contained in SAMAts Accounts, Appended to SAA, BRG 22, 959, for yeaz's ending 30 Septenbez' tB5o, L85L & 7852. Appendíx 17 Containing Tonnage qnd Cartage Price (fn pence pez' ton- ryil,e,) of Copper- ØLd Or¿ Transported from Kooringa to Poz't AdeLaide (by Snul) øtd Cost of Hàg, Fiz'euood and Logs Gn shiLlí,ngs) 1B45-1875. Appendix 18 Shipping Rates fot' Copper úld Copper }te fnom AdeLaide, 1845-1B69. Appendix 19 Suggested Reasons for Non-Adoptíon of the Poz't lnlakefieLd Route by SIWA. Appendix 20 SAI4A ætd Monopsony. Appendix 21- Percentage of Copper in Burra Burra )v'es. Appendlx 22 Price of Coppez, )res. Appendix 23 Copper Pz,iees. Appendix 24 Freight Rates. Appendix 25 Port Chaz,ges. Appendix 26 fnsurance Costs. Appendíx 27 Costs of Dz,essing SA)LA|s )res. Appendix 28 DetaiLs of Shípments of Copper' øtd )re nade by SAI4A 1845-1_877. SITMMARY The South Australlan Mining AssocÍatÍon üIas invoJ.ved ín copper miníng activiÈíes from 1845 to 1877 (after 1877 the Assocfation !ùas concerned only wíth l-and and property hol-díngs until wound up in 1914) ' The Associationr s Burra Burra ì,IÍne was considered Èhe richest copPer mine ín the world during the early years of production and the procllgious dividends and profits, as well as Èhe extremel-y high average yietd of ores over a period of 30 years, bears witness to the clafm. Such wealth and returns proved beneficíal to the l-ocal economy. In the l-840rs the success of Ëhe Mine attracted much needed capital and labour to the Colony and sub- sequent smeltíng acÈiviÈÍes brought importanÈ línkage benefits which allowed South Australía to sÈrengthen its economic base. Also ímportant to Èhe local economy were Ëhe mulÈiplier effects of wages paid to mineworkers, cartgFS, wood cuËters and others employed by Èhe Association, for at its peak the organisation directly employed over Lr000 workers, so making it' in aLl probabilíty, the largest singl-e employer of labour in Australia. In exporÈ earning capacity, coPPer and copper ore were often more imporËant Ln the South Australian contexË Èhan wheat and wool- combíned, and untí1 the mid 1860ts it was the Burra Burra Mine that produced the bulk of this important mineral. In terms of world productíon iÈ was also markedly ttthe signifÍ-cant, described by a contemporary in l-855 as most extraordínary mÍne of modern tfmes" (See, John Leífchild, CotnuaLL: Itts ltlines cnd l[ínevs uíth Sketehes of Seenezy... p.226). Despite Èhe importance of the Mine ín the story of the development of the Colony, little of academic depËh has been wriEÈen on the subject' the only notable exception beíng an unpublíshed study by Henry Brown (fhe Copper Inútstzn¿ in South AustraLia. An EeononrLe Study). In Èhe study, Brown deals rnainly with producÈion and profítabl1ity of all copper miníng and smelÈíng activities 1n South Australia between 1842 and 1923 but because r-1 only one chapEer could be devoted to the Burra Mine, coverage lías l-imited. On the marketlng of copper and ores nothíng has been srriËten (indeed it can be claimed that the marketíng of any kínd of mineral 1n the wider Australian context has been largely negl-ecËed). Brown restricted his ttthe observations when discussfng the Associat.Lon to the cournenÈ that hígh standard of efflciency achieved on the corunercÍal side was not parall-eLl-ed on the mining side" (Ibí.d., p.40).