Misima Shock

Cuthbert’s Mine Closes Up

IN an official announcement, on April 1, the directors of Cuthberts Mis ma Goldmine, Ltd., which has an exten sive property on Misima Island, Eastern Papua, said that mining operations had ceased; and the company is at once going into voluntary liquidation.

Recently, the Directors appealed for fresh capital amounting to at least £30,000, and offered the company’s deben tures in exchange. The response fell far short of requirements and, as the com pany’s cash resources were exhausted, it was decided to close down.

This is a most unexpected end to an enterprise that, a few years ago, was often referred to as “Freddie Cuthbert’s Bonanza.” The late Mr. Cuthbert privately worked a rich vein before form ing the present company and there was a period of some years, just before World War 11, when the mine paid fantastic dividends. When the Jap invasion of the South-west Pacific forced evacuation of Misima, it was assumed by those interested that profits would be resumed as soon as mining operations were resumed.

But it did not work out that way.

Although the company was compensated for war damage over the years 1942-44,

and every assistance was given by the Administration in the task of rehabilita tion, the mine did not get back to satis factory production. The management was handicapped by the prevailing difficulty in getting labour, by the infrequency and high cost of shipping, and by the ever rising costs of all goods and services. On top of that, it presently became apparent that the mine, somehow, had lost the line of the once enormously-rich lode—or it had unexpectedly petered out. The en gineers were sure they could find the lode again; but cash resources gradually dwindled —with the result stated above.

An article in the PIM of November, 1937, said that three companies were operating on the rich lode on Misima —Oroville (then apparently moribund) at the southern end, Cuthberts, in the centre, and Gold Mines of Papua (working busily towards profitable production) at the northern end. Quartz Mountain, a New Zealand concern, was testing out some leases near the south coast.

Cuthberts, employing 30 Europeans and 500 natives, was in very profitable pro duction; and Gold Mines of Papua, with 30 Europeans and 400 natives, expected to be in production within a year. Some time after that, GM of P announced that they had lost the lode; but the Cuthbert pro duction seemed to become ever richer.

Oroville and Quartz Mountain had faded out, even before the war. Since the war, GM of P have been trying to get started again, but with indifferent success.

But no one dreamed that Cuthberts would collapse in this fashion.

In terms of Australian currency, gold was never more valuable. Unquestionably, there still are rich reefs to be developed on Misima. If there is one thing more than another that Papua needs, it is some alternative to rubber —either oil or gold— or both. It is hoped that the Adminis tration will take any steps desirable to Keep the gold-mining industry going on Misima. It would be a calamity if the Misima field became just another memory, like Lakekamu and the Yodda.