The Pioneer Kerosene Works

(American Creek, Mt. Kembla)

(Rev 2.1)

The original site for these Works was a small plateau of some 2 acres, 520’ a.s.l. on the northern side of American Creek on Mt. Kembla.

The site and operations are in Portions 4 and 160, Parish of Kembla, County Camden.

Rev. W. B. Clarke, geologist, in 1853, stated that he had sampled the oil bearing shales in 1849 and upon analysis contained less oil than the Cannel Coals.

1865 – February – Mr R. J. Want and Mr. (later Sir) Saul Samuel showed Mr. J. Graham a small phial of oil distilled from his property on Mt Kembla. Mr Graham obtained a sample of shale from Mr Robert Longmore which was then tested by the Gov. Analyst, Mr C. Watt, returning some 50 gals of oil per ton. (Geol Surv. Memoir No.3 - Carne, J. E. 1903)

A meeting was held in Wollongong on March 21^st, 1865, and a committee set up comprising the Mayor of Wollongong, (J. W. Wilshire), and Messrs. C. T. Smith, P. Lahiff, Robert Owen, W. Robson, G. Waring and J. Biggar to test the commercial value of the shale.

This committee was redundant as the Mercury of 28^th March, 1865 advised that Mr. John Graham of Graham & Mulholland was to test the quality at his own cost.

John Graham was the son of John and Jane Graham, Irish immigrants farming at Avondale. He was in business with Mulholland as Commission Agents in Sydney and the owner of the property on which the shale was discovered.

1. J. Hammil, an American oil refiner in Melbourne, approached Graham with plans to exploit the shale deposits and work commenced almost immediately.

Mr. Longmore constructed the retorting plant with the foundry work being supplied by P. N. Russell and Co. Mr Hammil took charge of retorting operations.  The first retorts were horizontal with a capacity of about half a ton, later modified to a wider shallower design. The retorts were charged every 6 hours. (Geol Surv. Memoir No.3 - Carne, J. E. 1903)

1865, July - saw two 8’ adits driven into the American Creek seam to prove the shales quality. The shale was 25’ higher than the works and some 1’9” in thickness.

1866 - Production commenced in December with advertisements were in the Mercury of January 30^th, 1866, for “American Creek ‘Pioneer” Kerosene Illuminating Oil” for 45c per gallon or 12c per quart.

1866 - Clarke further remarked that a series of shales associated with the coal were found to produce oil. Probably not esteemed as a source for oil. They readily ignite by a match.

1870, the Mercury of January 12^th, indicated that Edward Graham was the manager and R. Parsons the Wollongong Agent. Edward was John’s younger brother, a store keeper at Shellharbour, alderman, mayor and magistrate.

1872 - The Mercury of September 20^th, carried a prospectus for “The Sun Kerosene Shale and Oil Company”, (lately known as “Graham’s Pioneer Kerosene Oil Works”). Provisional directors – J. Stewart, MLA, Thomas Hale, Lawrence Kendall, John Graham (Managing).

Apparently nothing eventuated with the proposed company but the prospectus indicates freehold land – 200 acres owned by Graham, 130 acres known as Jeykell’s Kerosene Land, the plant having an output of 1,800 gallons of crude oil per week.

1874 - John Graham sells his interest for $20,000 to the Mt Kembla Coal and Oil Company.

Rival works at Hartley was selling 4 gallons for 19c in Kiama in 1874.

N.S.W. Mines Dept. records show a suspension of operations from 1875 to late 1876.

1877. M. Fell took over as manager from Edward Graham in 1877.

1877 Andrew Armstrong appointed Selling Agent for the Mount Kembla Oil and Coal Co’s “Star” Kerosene and other oils.

In August 1877, a horse was killed in a fire that destroyed the stable, being the second or third such fire started by sparks from the works’ chimney.

Three draught horses and a saddle horse were offered for sale on 28^th June, 1878.

The Central Illawarra Appeals Court was advised that the works were to close as the shale was nearly exhausted.

December 1877 saw that the Kerosene Company had sold its store on the north side of Belmore Basin, in Wollongong, moving all its oil stocks to Sydney.

December 1877 saw also the formation of a new company in England to work the property of the late Kerosene Company, not for shale but coal.

Mt Kembla Colliery:-

1880 – 12^th Nov, W. Bural notifies DoMAR of opening up #1 and #3 seams and in process of constructing a tramway to 5 Islands Point. (DoMAR 1880)

1882 – 18^th Mar, W. Bural notifies DoMAR of commencing mining in #1 seam. (DoMAR 1882)

1883 – 27 men are employed on the surface, 83 u/ground. (DoMAR 1883)

The Mount Kembla mine was to restart under the new management of the Mount Kembla Coal and Oil Co. (Ltd.), E. Vickery being a prominent associate.

By November 1883, the mine was producing 1,000 tons of coal per week from the Bulli seam going on to become the site of Australia’s biggest colliery disaster with 96 men and boys killed by an explosion in 1902.

Mount Kembla Collieries Ltd. replaced the Coal and Oil Co. on July 8, 1913, in turn being replaced by Australian Iron & Steel Ltd. on August 31^st, 1948.

Nebo Colliery working the Wongawilli seam was opened at this same site by A. I. S. Pty Ltd.

• * “In 1943, Madden and Madden, Timber Merchants, Port Kembla, re-opened the seam to test the suitability of the shale for the production of vaporiser fuel for vehicles used in transport and other avenues of industry.
• A new adit is driven into the hillside in Portion 4, close to an old tunnel, has been advanced 40 feet.”  (12m).

Section (abridged) measured at the face.

The sample, assay no. 43/392, yielded some 50 gallons/ton of crude oil.

The oil shale was regarded as only fair quality as far as NSW standards were concerned, however the shale was somewhat peculiar and the name “Wollongongite” was used in early references.

The recommendation was to concentrate on the oil-shale only as the dilution effect of the carbonaceous shales would be too great as a commercial venture.*

• *Kenny, E. J. 1943, America Creek, Mount Kembla Oil-Shale. Geological Reports 1939-1945, Dept. of Mines, NSW, 1950.

Section of the coal seams at the outcrop – showing the Kerosene shale as mined (American Creek Seam)

Production Data (from various sources)

Data sourced from “The Pioneer Kerosene Works at American Creek” (Mt. Kembla), a paper prepared and presented to the Illawarra Historical Society by A. P. Fleming on 3^rd August, 1961.

Later published by the Illawarra Historical Society in May, 1967, reprinted 1976.

ISBN 909164 00 2

Abandoned mine workings

Incomplete