MINING.

Dominion, Volume 7, Issue 1867, 29 September 1913, Page 11

MINING.

THE ANNUAL STATEMENT. A GENERAL REYIEW. STATE COAL-LOSS, £9989. The annual Mines Statement was presented to the House of ;Representatives on Thursday by tho Minister of Mines (the Hon. W. Frasor). The valuo of the mineral output for tho year, says the Minister, amounted to £3,042,224, as against £3,492,403 during 'lull, being a decrease of £450,179, such decrease being due to tho disastrous strikes by wTiieh the mines at Waihi, Reefton, and Blackwater —our most productive quartz mining fields —were rendered idle from May to November. The shortage in the valuo of bullion from the mines affected is estimated at £450,000. The value of bullion produced from our goldmines amounted to £1,429,870 for the year, as against £1,948,369 for 1911. Dividends paid_ during 1912 by registered gold-mining- companies amounted; to £368,638. The output of coal amounted to 2,177,615 tons, heiug an inorease_ of 111,542 tons above that of the previous year. Satisfactory increases also occurred -in tho value of kauri gum ondi Bcheelite exported during 1912. The most important. development during the past year has been_ in connection with drilling operations in searoh of petroleum in the fforth Island, Where six oompanies equipped with modern rotary drills are qot,' engaged. Tho second Government bonus of £2500 has been won by the Taranaki Oil Wells (Ltd.), upon their producing 500.000 gallons of crude petroleum from their Moturoa wells, where the company recently laid down a refinery for the treatment of their crude oil. In the provincial district of Marlborough a beginning has at last been mado to establish the mining industry on a scale of some magnitude. Tho Dominion Consolidated Company have developed at Wakamarina a' promising gold-scheelito lode, and have installed a treatment plant. Towards the end of the year crushing was commenced with satisfactory results, . On the Ohinemuri River the WaihiPaeroa Gold-extraction Company, having installed works for the treatment of tailings, discharged into that river from the Waihi and Karangahake mines, experienced most satisfactory results, obtaining bullion to the value of £33,811, which enabled the payment of a substantial dividend 1 . On the Buller coalfields an important development of a new coal area has been made by the Westport-Stockton Coal Company, who, bv means of drilling, have located a block of workablo bituminous coal, in extent about 600 acres, and containing at least 9,000,000 tons of coal. This discovery having been connected by electric tramway to. the company's main haulage system, the prospects of tho company ' have materially improvod. At Boss work has been resumed by tho Ross Goldfields Reconstructed (Limited) upon tho onco famous deep leads at Ross Flat. With systematic development thero is a reasonable prospect of an important mino being established.

Value of Minerals Won. The following table shows the value of gold, sijfrcr and other minerals, coal, and kauri gum exported during tho years 1911 and 1912, also the quantity of native coal consumed in tho Dominion during the same periods:— 1911. 1012. Produot.' £ ' £ Gold 1,810,782 1,845,131 Silver 131,687 84,739. Mixed nuheralfc .... 22,241 20,571 N.Z. coalexportea 204,379 216,170 New Zealand coal used in N.Z. 921,707 974,301 Kauri gum * 395,707 401,805 Coke — 7 £ Total value of production for 1911 3,492,403 Total value of production for 1912 3,042,224 Total decrease £450,179 Quartz Mining. Tho value of tho bullion obtained from our quartz-mines during the few months tho most important of them ffero worked amounted to £906,189, as a result of treating 335,651 tons of ore, tho dividends paid, amounting to £314,903 10s. .The following is.a statement of the valuo of bullion obtained, and tho amount of dividends paid by the most important quartz-minea during

Divi- T'l. diviBulllon. dends. dends. £ £ £ Waihi Co. ... 316,724 148,772 4,879,857 Waihl Grand Junction .. 74,871 19,210 88,487 Talisman Con. 246,669 125,062 .685,353 New Big River 36,657 16,600 67,200 Waihi-Paeroa Gold Extraction Co. .... 33,811 6,250 6,250 Other quartz mines 198,057 —. _ Totals 906,189 314,903 5,176,597 Alluvial Mining. Gold to tho value of £266,348 was obtained from alluvial mines during 1912, being £8868. less than that obtainod dunug the previous year, and £77,884 moro than during 1911. This increase be attributed to a more general rainfall during tho . two past -years rather than to an improvement in tho development of tho sluicing claims. The valuo of tho production from our dredges during 1012 amounted to £207,333, as against £297,000 for 1911 • but dredge mining is now acknowledged to be long past its zenith. Tho dredges in commission numbered eighty-seven. Goal. The output of coal during 1912 amounted to 2,177,615 tons, as against 2,066,073 tons during 1911, being an increase of 111,642 tons. There has also been a, considerable increaso in the quantity of coal imported into the Dominion, 364,359 tons having been imported during 1912, as compared with 188,068 . tons during 1911. Tho quantity of coal exported during 1912 was 229,012 tons, and during 1911 223,275 tous. Our annual consumption of coal has therefore increased by about 282,096 tons during the past year. The following is a comparative statement of the coal and lignite raised during the yoars 1910, 1911, 1912:— Inspection District. 15fi0. 1911. 1912. Northern 400,604 397,872 383,847 West Coast 1,341,032 1,218,693 1,301,461 Sciuthorn 455,666 449,508 492,307 Totals 2,197,362 2,066,073 2,177,615 Ths comparative tonnage of tho various classes of coal, etc., for the years 1911 and 1912 is summarised as follows :— 1912. 1011. ClnssofCoal. Toils. Tons. Bituminous and semi-bituminous 1,417,G08 1,358,357 I'itch-coal 4,115 4,411 Blown coal 544,675 601,093 Lignito 211,217 102,212 Totals 2,177,615 2,066,073 New Collieries. Tha most important development in connection with the "coal-mining industry during the year has been at tho new State, mine at the Seven-mile Creek, near Greymouth, where a colliery has been laid down to deal with an estimated output of 2000 tons of bitumin-

I ous coal per day. This new mine has been connected by rope-haulago inclines and a short branch railway with the Government lino at Runanga, where a State colliery has for some years been in operation. By the kind permission of his Excellency the Governor it is proposed to namo tms new colliery after him; it will therefore bo known in future as the "Point Elizabeth (Liverpool) Colliery,'J and the township now in course of formation Is to bear tho namo of Liverpool. Tho quality of the coal now in course of development at this mine is superior Tor steam-produc-tion, household smithy use, gas and coke making, and may shortly be procured by the public at any of tho State icoaJ-d'opots established ill tho chief towns of tho Dominion. In tho North Island important col-' lieries are being laid down upon the Waikato Coalfield by tho Waipa Railway and Collieries (Limited) and by the Pukemiro Company. Tho Taupiri Company, whoso output exceeded all other North Island collieries combined, have largely increased their plant and scale of oporations.

Persons Engaged In Mining. The number of persons employed in and about the inineß of tho Dominion during 1912 is ostiinated at 9567. The number employed in connection with the metalliferous mines was 6239, and at coal mines, 4328. Tho number of guin-diggers is not ascertainable. Stata Collieries. The two old collieries—neither of whioh was a noiv mino when acquired by the Government—are approaching exhaustion. The oponing of the new Pouit Elizabeth (Liverpool) Colliery will not only enable the Department to fully maintain its trado, hut will admit of a reasonable degree of expansion. In Uho latter part of last sesfjen I laid upon tho tablo a report by the Under-Secretary of Mines recommending considerable further writing-off for depreciation, on account of some of the assets af the State Coal Mines Account not being worth their book volue. He also advised that 10 per cent, instead of 6 per cent, he annually written off for depreciation in future in respect of both the old collieries and the briqu-ette-works, and that such amounts be computed on the gross total capital expenditure in each case, and not merely on tho balanco not written off as hitherto : tho present rate for ' depreciation (5 per cent, por annum) to be maintained as regards tho depots, and to be put in force as regards tho new colliery as soon aa it reaches the output stage. In the balance-sheet now submitted all these recommendations have been given effcct to, except tho last ono, audi the time for that had not arrived up to March 31 last. This will explain the largo amounts appearing in tho balance-sheet as " Special depreciation," which are in every case in addition to the amounts allowed for annual depreciation. Changing the rate for annual depreciation from 5 per cent, to 10 per cent., though doubtloss a very desirable change indeed, has had the offect of' making this year's balancesheet show a loss of no less than £9989. If the amount for depreciation had been retained at last year's rate, and had been computed in the same manner, this year's balance-sheet would havo shown as good a working result as last year's.

Other Minerals. The quantity of seheelite concentrates exported during the year amounted to 185 tons, valued at £13,347, boing a slight increase (as regards valuo only) over the output during tho previous year,. The quantity of kauri gum exported during 1912 amounted to 7908 tons, valued at £-101.305, as against 7587 tonß, £895,707 in value, during the previous year. The total value of kauri gum exported to tiho end of 1912 amounted to £15,210,457.