GOLD MINING INDUSTRY

Hokitika Guardian, 10 July 1930, Page 8

GOLD MINING INDUSTRY

MORE ASSISTANCE URGED

(By E. W. R. in The Press.)

Tiie world shortage of gold at the : present time and the decrease in value (of our primary products call attention to the steady falling off of gold proj duction in New Zealand, a country I hat between the years 1857 and 1905 \ xported. gold to over the total sum 1 f. £57,000,000. Since that date the export of gold has steadily declined nd now bulks at a very low figure among the country’s export industries.

It may be said by some that all the idlest and most accessible gold deposits have been mined and worked out, and, while this.’ is partly true, there are other conditionSj over which he industry has no control, which have led to the abandonment of many valuable properties and the failure to exploit and open up new fields. The industry is in the unfortunate vosition: of producing an article whicli ns not increased in value —and in this connexion one must remember that ‘hiring most of the war period the premium oil gold,, 'whicli rose as high as 12s fid above the standard rate of approximately 84s per ox. was not received during the greater part of this lime by New Zealand mining companies, as thev "-ere restricted from sel'ry'rr their gold otherwise than iff New Zealand—while the cost o'f explosives, ’ahour, fuel, and all other expenses of production have risen tb such an ex*'■‘nt. that many producing mines have 'oen unable to carry on. The same

'•ncl’tions apply in Australia, but in South’ Africa and o.th#»r places where ' ->ok labour can be obtained a large 'old output has been maintained from ■me of very low grades. Should such "•heap labour have been obtainable \n r a there is no doubt, that a large gold production could have been main'nined in New Zealand. One of the largest mines now operating in New Zealand produces over '‘-ft.ooo of gold per annum and its total gold production must be well •>ver £1.000,010, yet the working exr)nnse.s have arisen to such an extent ‘bat it has. been unable to return 'ittle. if anything, to its shareholders Sy way of dividends during the last few years. The expenses also of prospecting and proving , large dredging or alluvial area are now practically beyond the means of most mining companies operating in New Zealand. Such a company must be prepared to spend perhaps several, thousands of pounds in oring and proving an area only to brow it in and start all over again, and it must therefore have large re■ources in order to he in a position to "rove the various properties that it •aquires or has offered to it until one s met with that gives adequate relurns and which in addition pays for 'he cost of testing other areas which may not' have proved payable. Such > successful result has been obtained '•bp American Company who owe 'he large electric dredge operating at 'nkitika and who are putting on unifier: of double the capacity. It is ’•obahle. however, that this company ,s had to spend perhaps £20,000 in •••in or their areas in order-to prove whether the., property - would prove a commercial proposition or otherwise •UVimigh large sums have to he ris u ed n this wav. yet careful and extensive ’mj'jng will in alluvial and dredging "round prove the value-of an area in -> verv accurate manner and the price -.f onld hemg stable d is possible to ' il ou!ate the profits that wjll accrue '"-rim the of the property to r of oprtn»rit.v that cart seldor*' ’-• otHmed in any other commercial "'•'-'position. In a recent report of the Mount Tsn Hne in Australia, which was taken •ver by a large English mining company about a year ago, it was stated hat a very large amount of prospering has been done both hv driving *■'l nil els and by boring with diamond . Hlls to a depth of - up to 1000 feet, ’ivl that ore deposits had been disWed of lead, silver, and zinc, o)f a gross value of £BO 000.000. Tt is clear, therefore, that such efforts are Vvond the resources of private enterprise in New Zealand, and unless out-

side capital can be induced ...to interest itself in our mineral resources the

lovemment should s jie induced to render liiore assistance :i t.han it has in. the past.' Although assistance; has from

time to time been given by the Mines Oenartment by way of subsidy or loans for property work, yet the -scope ot the operations authorised and thq amount received have .been too small to have any appreciable results.

In Australia this t question hits received a great deal of consideration, and the Federal Government has deified that producers may sell their., 'old in the open market and receive, any premium that may be attainable, lmt has left the decision as to what - other assistance should be given by wav of subsidy or otherwise td the various -State Governments.

The importance of the whole matter cannot be denied when it is realised that financial experts attribute the present /world -slump in all [classes of commodities; to the general (falling-off ’’n g'-ld production and tlie subsequent world shortage of gold.