From Klondike (Yukon) to Kampar (Malaya): The transfer of dredging technology by Yukon Gold Company

Abstract

This paper seeks to study when and why dredging technology was introduced and in what way was it able to transform the Malayan tin mining industry. What were the advantages and limitations of dredging technology as compared to other mining methods? Emphasis would be placed upon the role played by Yukon Gold Company (henceforth YGC), the sole American entrant in Malayan tin mining industry towards the transfer of dredging technology with a focus on how local conditions affected technological development. Dredging technology developed in New Zealand in the 1880's. This technology steadily spreads to the gold and tin mines of Australia, undergoing significant transformation at the gold fields of Alaska and California. The YGC was organized in 1906 by the Guggenheim Brothers to operate gold mines at Klondike and California. In an effort to diversity as a result of losses incurred at their Yukon mines in 1917 and 1918, action was taken to send a prospecting party to Malaya. YGC was prompted to diversity into tin mining due to the similarities of gold and tin dredging, the availability of mining technology and technical expertise. With the successful introduction of dredges, mining technology graduated from labour intensive techniques to capital intensive techniques giving western enterprises an added advantage over local enterprise, mainly represented by small scale Chinese miners using gravel pumping, open cast mining and dulang washing. Dredging technology established the western dominance in the industry. YGC was among the early western entrants who had the technological advantage and the financial resources for a large scale dredging technology. These innovative technological developments were also adopted by other mining firms, in the process maximised the Malayan tin ore potentials producing greater capacity, flexibility and better saving of tin. Dredging output increased from 30 per cent of the Malayan tin output in the 1920's to 50 per cent by 1938. Tin revenue too, increased between 10 to 24 per cent of the total revenue from 1920 to 1938 an Malaysian tin production maintained a one-third shared of the total world production. YGC became amongst the cheapest of the procedures in Malaysia and the mining venture in Malaysia proved to be profitable to YGC. By 1933 YGC became the sole venture that prompted a name change in 1938 to Yukon-Pacific Mining Corporation, and in 1939, to Pacific Tin Consolidated Corporation when it was listed on the New York Stock Exchange.