These
factors referred only to mines actually then in production. It was, of
course, known that there were further areas available for exploitation
and the possibilities attaching to one of these areas in particular,
the Far East Rand, then formed the central point of interest and were
to form the critical point of interest for some years to come. The
Chamber of Mines, in their report to the Economic Commission, stated
that, apart from 4,140 claims on the East Rand on which development was
proceeding and 6,420 on which some work had been done, but now 'lying
idle because the funds provided for development have been exhausted',
there were 'approximately 86,000 claims under which the reef is known
to lie at varying depths, the mining rights of about four-fifths of
which are vested in the State. . . . The areas above referred to on the
Far East Rand contain hundreds of millions of tons of ore but an
enormous capital outlay . . . will be required for its development.'
The
subject was not allowed to rest there. After August 1914 the problem of
expansion became more acute and yet more intractable, owing to the
growing difficulty of capital imports both from the United Kingdom and
from the Continent. In 1916 there appeared Kotze's Memorandum on the Far East Rand, which attracted general attention. It was
a
matter of urgency to the Union that the Far East Rand should be rapidly
opened up . . . practically all the more promising ground available for
new mines contains the reef at great depths. This delays arrival at the
producing stage, and, with reef at a depth of 3,000 to 4,000 feet, five
to six years must elapse before that stage is reached, even when the
circumstances are favourable and nothing untoward happens. If there is
a delay of several years before any new lease is arranged, this period
must be added to that already mentioned. . . . Consideration of these
circumstances points to the urgency of amending the law so as to
facilitate the opening up of this new area. Its great importance to the
Union will be appreciated . . . from the further calculation that, if
only one-half of the 73,988 claims in this area, not held by producing
companies, and containing reef at a depth of less than 5,000 feet,
prove remunerative, after a deduction of 60 per cent for nonproductive
zones ... it will yield gold to the value of approximately -£450,000,000.
Kotze estimated that the then
existing
producing companies may be looked upon broadly as being already
adequately provided with capital. The balance of the ground . . . will
require capital for its development and exploitation. For a working com-
