5 MINING INDUSTRY

Hokitika Guardian, 5 February 1926, Page 3

5 MINING INDUSTRY

C’A R EFU L PR (XSPECTI NO. ADYICE BY MINISTER. DUNEDIN, Feb. 3. In bis address at the Alining Conference, the Hon. G. J. Anderson said: s “I have noticed recently that there e are indications of a mining revival. I- I have also noticed that in some cases k great pains arc being taken by men v who understand their business to prove the mineral values of areas held by tliein by systematic prospecting, before ' embarking upon enormous expenditure ’ in development and the purchase of o equipment and plant. I have come to v the conclusion that many of the fail-

1 tires in mining in the past have been due. mainly, to the fact that persons B who promoted companies had not prospected sufficiently and proved the s mineral value of the bind held by them. " All those who have the mining induse try and welfare of this Dominion at i heart know only too well that it is nbf solutely essential to prospect on systematic lines, so as to prove the mineral j- values of these mining claims, before inviting the public to subscribe large sums of money to work such claims. “In several instances T have noticed > tlint companies have been floated in , New Zealand and in Australia to work . mining claims in New Zealand without , any prospecting whatever having been previous! v carried out. In some of these cases promoters’ shares have been ! allotted far in excess of what was rcaI sonable. There can be only one result - if such method continues. If this is ■ not discontinued those persons who have spent large sums of money in prospecting, and who have proved their claims, will find it very difficult indeed to raise capital to work their claims. DUTY OF STOCK EXCHANGES. "Stock Exchanges transacting business in the Dominion are interested in this question. They should be tile

guardians of the public in such speculative stoclcs. and they should therefon exercise very great caution before listing the shares of any milling company of the character 1 have indicated. They .should be quite satisfied that vendor; who have promoted companies lum not been, ton grasmng. Further, they should seriously consider the question of making it a stringent condition not lo list promoters’ fully paid up shares until such time as the mi no commences winning gold, or dividends are. in sight. If this were done, 1 feel millidont that the public, who are invited to find iiionov from time to time for milling, would have greater confidence, and would more readily purchase shares than lias been tile case in tile past. coal industry. “As von are aware, the coal industry i< not at present in that Nourishing condition Tiiianciallv which we would all desire. It seems lo me that those who are entrusted with the management of coal mines should consider whether better methods cannot bo adopted so as to reduce mining costs and at (bo same time provide a better class of coal for marketing purposes. One of the matters that should be attended to as prompt I v as possible is to see that more skill is exercised in shooting coal. It is also important to keep coal to lie marketed as free from stone and other impurities as possible.