MINING COSTS

Dominion, Volume 12, Issue 233, 26 June 1919, Page 10

MINING COSTS

AND COAL PRODUCTION

THE LABOUR FACTOR

I The- costs of production of coal at the principal mines in New Zealand, as shown in the report of the Board of Trade on the coal industry, show, con. eiderable increases in the last five years. In those mines in which the highest increases havo occurred the'costs for the years are sis follow: 1913, 15s. Gd. per ton; 1914, 16s. 3d.; 1915, IDs. lid.; 1916, IBs.) 1917, 20s. IOd.; 1918, 235. 4d.; an increase over the period of 50.5 per cent, and a total money increase of 7s. lOd. per ton. In the lowest cost group of mines the costs were: 1913, Gs. Gd.; 1914, 75.; 191,1, Gs. IOd.; 1918, Ks. Bd.j 1917, Bs. sd.j 1918, 10s. 6d.; an increase per cent, of Gl.fi and a cash increase of is. The. mean costs were: 1913, 12s. Gd.; 1911, 11s. ad.; 1915, 11s. Bd.; 1916, 12s. Gd.; 1917, 14s. 5d.; 1918, 16s. 2d.; a total increase of 2D.3 per cent, and a cost increase- of 3s. Btl. •p»i\ton.

Similar methods are fo'.lowed to show the direct labour cost per ton of coal mined. In the highest cost group of mines the labour i cost increased from Bs. sd. per ton in 1913 to 11s. 7d. per ton in 1918, an increase of 3s. 2d. or 37.6 per cent, in the lowest cost group the labour cost increased from 4s. lOd. per ton to ss. 9d. per ton, an increase ot 11(1. or 1!) ■pat cent. The mean labour cost rose irom ss. lOd. per ton to Bs. 2d. per ton, an increase of is. id., or 40 per cent. The lowest rate of increase is 3 per cent., aiid the highest 78.1 per cent.

These iiffiirts .relate to the total labour cost, including the cost of administration. The cost .of manual workers eiiip.oyed in and about the mines increased uiiriny the period ISII3-18 by 'il per cent.—

i.e., from auout ss. lid. to about 7s. 9d. per ton. It would appear that of the average increase in the total mining cost mi aii the mines giving data, from and including Wl3 to September, 1918, that nearly 39 per cent, is due" to increased direct labour cost and a little more than GO per cent, to increases in other ci>3ts than that 'of wago labour employed at tho mines.

On tho average the increase in the labour cost of ail coals forming the subject'of inquiry in any year, whether from mines operating throughout the period or not, is about Is. 2d., or almost one-third of the increase in the totiu mining costs. In ail tjiase cases the averages are truo averages obtained with due regard to the relative outputs of the respective collieries.

very little of tho cost of coal produ tion is to be accounted to troyaltics. The highest royalty rate paid by any coinmanj' at .any time was Is. per ton in 1918, and the lowest something less 'than ii penny a ton, in l'Jll!, the lowest rain for 1918 being 5.4 per ton.