RIMU DREDGING CO

Hokitika Guardian, 20 May 1930, Page 7

RIMU DREDGING CO

BIGGER PLANT TO ARRIVE SOON

Tne Rimu Gold Dredging Company

and Kanieri Electric Company, which have now been established for nine years, are making within six months important additions Ho their plant aa cost of £90,000. Outlining the companies’ plans to : Christchurch Press reporter, Mr Robert E. Cranston, of New York, managing direetcyp said that although a de couture issue of about £30,000 for tin new electric plant will be underwrite 1 in the United States, lie hopes, follow ing the usual policy, to sell some de bentiires within the Dominion. Tin cost of the new all-steel dredge is esti mated at £60,000. The companies art controlled mainly by American capital, although there are some Australian and New. Zealand' - preference share.holders. Air Cranston is interested also in a South American gold and platinum dredging company in Columbia, and other mining companies in Miami, Tennessee, Alexieo and Canada. During the last IQ years his interests have spent nearly £20,000 prospecting on tne West Coast, particularly at Kumara and in Otago, about the Nevis river. Although none of the results came up to a standard for exploitation, All* Cranston still has hopes oi finding gold and other valuable minerals.

The Kanieii Electric Company supplied both Hokitika and 'the ißtimv company’s dredge with power. At present the plant’s capacity is between 1309 and 15C0 k.w. The new plant, operated from the Kanieri river, and assured of a steady water supply wit] the lake as a base,- is expected to have double this capacity, “It is a good thing for a firm operating in any country to have the peopk of -that country interested in it,” said Mr Cranston, “We are Americans buj we have made a policy of getting oui work done when'possible, first in Hold tilca, then on the West Coast, and if at all possible \yithin New Zealand. I would particularly like the people ol ths district to participate in the investment. Ninety-eight per cent, of the new equipment is ordered from England.” The power plant, he continued, would supply the dredge and town .for 20 years to come, and consumption was already growing rapidly. It was proposed ,according to the type of security used in the States-, that the debentures be convertible into stock at the holder’s option. For the now dredge to he added to ..ie Dredging Company’s equipment, part of the 800 tons of steel is now clue at Wellington. There it will he assembled by the Hansford .Mills Construction Company then dismantled, and shipped to the launching site for reassembling. It will have a capacity of 290,000 oubie yards, compared with the present capacity of 100,000 cubic yards, *• So far 14,000,000 cubic yards have been dredged at Rimu and 50,000,000 remain.

The dredge was still a speculative investment, said Mr Cranston. At present they were spending about 4d per cubic yard and. making sd. The company had yet paid no dividend, except on preference shares. The results had approximated what they expected, although it was hoped that the margin of profit would improve.