Saint John d'El Rey Mining Company Records

The Saint John d'El Rey Mining Company was a joint-stock company originally established in April 1830 by a group of British investors. The company leased the rights to work the São João d'el Rey/Saint John mines in Minas Gerais, Brazil, from the mine's owners, a German physician and three British merchants. A team of Cornish miners traveled to Brazil to begin working the mines in June and July of 1830; however, within the first two years, the company shut down its operations due to low-quality ore and legal issues. After searching the region for available mining properties, the company purchased the Morro Velho gold mine in 1834. Other mines held by the company included the Espirito Santo and Raposos mines.

The Saint John d'El Rey Mining Company began their work by improving the mine's equipment and infrastructure. Although significant capital was devoted to renovations, the mine production increased rapidly, and the company paid out its first dividends in 1842. The Saint John d’El Rey Mining Company encouraged the immigration of British citizens to Brazil to work in the mine. The company also employed the labor of slaves, who predominated in the work force at the mine until Brazilian emancipation in the late nineteenth century.

Morro Velho suffered from several catastrophes in the mid-nineteenth century. On November 21, 1867, a fire broke out in the mine during the night, causing the mine to collapse. The company spent seven years raising capital and working to rebuild the mine through the digging of new mine shafts. During the 1870s, it was discovered that the then-current mine superintendent, James Gordon, was engaging in fraudulent business practices, including diversion of resources from the mine and participating in external business ventures. Gordon was fired, and the company sought to find a new superintendent to restore order to Morro Velho.

In 1884, George Chalmers was hired as superintendent. Chalmers began by reviewing and restructuring both the administration and the work processes of Morro Velho. Before Chalmers was able to make improvements to the mine itself, a rock fall on November 10, 1886 led to a gradual collapse of the entire mine over the next weeks. As production halted and the company went into liquidation, Chalmers argued to reconstruct the mine via another new pair of mine shafts. Although initially wary of the proposed depth of these mine shafts, the board, directors, and stockholders were gradually persuaded of the plan, and Chalmers returned to Brazil in 1887 to restore Morro Velho.

Reconstruction of the mine began in the 1890s. In addition to digging new mine shafts, Chalmers built several small hydroelectric plants to generate electricity for working the mine. As a result of Chalmers’ efforts, gold production at Morro Velho exceeded previous records. In the early twentieth century, Chalmers also designed an innovative cooling plant to lower temperatures in the mine, and secured land and resources near the mine for future use. Chalmers left his position as superintendent in 1924, after forty years with the company, and served as a consulting engineer until his death in 1928.

The Brazilian revolution in 1930 significantly changed labor and currency exchange practices for the Saint John d’El Rey Mining Company. Formation of a miner’s union at Morro Velho resulted in a more stable workforce with guaranteed benefits, while currency restrictions forced the company to reinvest in projects at the mine and in the area. Continued conflict between the primarily European supervisors and the Brazilian laborers resulted in strikes and reduced production, and the infrastructure of Morro Velho was in need of renovation.

Finally, in 1957, the controlling interests of the company were bought out by a group of investors primarily interested in the iron ore that also occurred naturally in the area. The investors sold the company's iron lands to the Hanna Mining Company, based in Cleveland, Ohio, and the 130-year tenure of the Saint John d’El Rey Mining Company came to an end.

Sources:

Eakin, Marshall C. British Enterprise in Brazil: The St. John D'el Rey Mining Company and the Morro Velho Gold Mine, 1830-1960. Durham: Duke University Press, 1989. 1-73.

Hollowood, Bernard. The Story of Morro Velho. 1st ed. London: St. John D'el Rey Mining, 1955.