MINES REPORT

Hokitika Guardian, 3 November 1932, Page 2

MINES REPORT

CO-OP. RESULTS.

All) TO PROSPECTING

WELLINGTON, November 2

The Mines Department report was placed before parliament yesterday by the Hon. C/'E. Macmillan, Minister of Mittets. '

During'the' year ended March 31, 1932, 1276 licenses for mining privileges were issued, as compared with 5-14 for the previous year. Of the total number issued, 281 were licenses for claims, authorising the holdens to mine for; goßHlfl"- . H The ..statement refers to'the fact that during tile past year seven companies were■ boring for oil in several parts of the Dominion, the aggregate footage bored being 11,288 feet. A total production of 111,568 gallons of oil was obtained from two wells at New Plymouth. The total production 1931, is estimated at 1,669,728 gallons.

Durfing the year ended Dec. 31, 1931, 2,157,755 tons of coal were pro-, duced from mines operating in the Dominion, or a decease of 384,336 tons, when compared with the previous yeatrs’s figures. The Minister states the cause of the .decreased production may be attributed to. the lower consumption by the railways, gasworks, steamers, and by thei general public, and atso to t.lie Increased competition in consequence of the use of fuel oil land electricity for power, heating and lighting purposes. CO-OP WORKER® PRAISED.

According to the statement, seventeen co-operative parties working portions of the State coal reserve, near Greymouth, (produced during the year 1931, 108,229 tons, the number of men employed being 130. During the previous year, the same number of parties produced 104,209 tons, there being an increase this year of 4011 tons.

’Comparison' cf the coal produced l by these men shows the overage production per man employed is much greater than the average production at many of the large mines in the Dominion. Moreover, men employed in co-operative mines usually take more pains an preparing their places, and so mine coal as to produce the greater proportion of larger coni, than i,s the l ca.se at many of the other mines.' The report states that, notwithstanding the intense competition and the smaller output from , each of the two j State coal mines, the profit made for the year ended March 31, 1932, wias £16,032, after (providing for interest and depreciation. Of; that amount £7886 was transferred to the .sinking fund land. £SOOO was transferred, to the Consolidated Fund on .account of past administrative services, leaving a balance of £3146 in the,, profit and'loss account. In spite of the decreased business, the Department did not, so as to ensure less idle time, dismiss the excess number of men employed. Referring to the investigations which have taken plaoe into New Zealand coal, the Mines Statement says: The Under-Secretary .of the Department has represented the Department on the Ooail Research Association, and has assisted the staff association where possible in carrying out their work. Sipace was afforded in one of the buildings on the State. Coal premises, Wellington, for the erection of small experimental briquetting plant purchased by the association. The plant, designed by Yeadon and Son, Leeds, allows quantities of from 301 b to several tons of any desired grade, of briquette to be made, loz in weight, and of ovoid shape. The maximum output per diay of eight hours is 2$ tons. Trials were made of Westport, Pap area, and Reefton coals singly, and blends of Reefton and Waikato coals with varying quantities of butuminous coal. The briquettes of Westport and Paparoa coal proved excellent household fuel. Those from Reefton No. 4 coal alone were somewhat dull in open fire and were greatly improved when blended with 20 per cent, of Westport or Liverpool coal. Excellent though rather quick-burning briquettes were matte from blends of 80 per cent, of Waikato coal and 20 per cent, 'strongly-caking bituminous coal. Further experiments in blending, swelling and non-swelling bituminous coals for utilisation in gas-making were carried out at the Dominion Laboratory, .and results circulated by the Department to tall gas companies in New Zealand.

Progress abroad in th© treatment and utilisation of coal, including hydro-generation for production of oil has been carefully followed, but during the year nothing outstanding has been put forward that would be applicable under New Zealand conditions. It is to be regretted that owing to trade

depression, coal owners have withdrawn from the Coal Research Association, and that in future coal research will be considerably curtailed. A note of warning as to the need for care before the mining companies are formed is sounded in the- statement. The estimated quantity of gold produced during the year increased from 120,931 ounces valued at £499,744 in 1930, to 129,861 ounces, valued , at £627,451, in 1931. Bullion consisting cf gold' and silver produced during 1931 decreased in quantity by 74,924 ounces, hut the .value shows an increase of £lO6 241 as compared with the previous year. The decrease in bullion production is dute to the fact that (he quantity of silver produced was 83,854 ounces less than' for the previous yeair. The report anticipates an increased output this year. “It is difficult to separate speculative element from mining,” states the Minister, “but I feel confident that if greater care and judgment were exercised in the prospecting and development of mining properties to ascertain reliably their values before undertaking the formation of companies to work them, the industry would become more of an investment than mere speculation. It cannot be too strongly emphasised that before companies are promoted-and money subscribed in large amounts to develop mining areas, and provide plants for treatment of gold, the areas should be thoroughly and systematically, efficiently and reliably tested. From a perusal of several of the prospectuses issued during the recent months it is manifest that practically no testing at all was carried out.” The amount of goldfields revenue received by local bodies during the year was £12,010 11s 7d and the amount paid to Native and European owners and special endowments was £194 14s 3d. During the same period £11,015 was received by way of duty exported. AID TO PROSPECTORS.

As in previous years, states the report, considerable use was made of the ‘Governmnt’s prospecting drills. They were hired by. six parties, and ■a total of 5645 feet was drilled. The sum cf £7600 was voted for expenditure by way of subsidies for prospecting. The balance of unexpended authorities at March 31 > - 1931, and those issued during the .year, less cancellations, amounted to £8073 14s lOd. Of this amount the sum of £4812 2s lid was expended by way of actual subsidies during the year, leaving a balance of £3262 11s lid authorised, but not -spent at March 31, . 1932. In addition, the sum of £ll6 17s lOd was expended by the Department in connection with the Unemployment Board’s prospecting schemes, the number of men given employment though subsidies granted by the Mines Department was 278. In addition, between 500 and 600 men were assisted tip to March 31, 1932, under the Unemployment Board’s prospecting schemes at an approximate cost of £6OOO. Provision totalling £4BBB, including £4498 in the Public Works Fund, was made expenditure by way of direct grants and subsidies for roads and tracks. The balance,of unexpended authorities at March 31, 1931, and thotse issued during the year amounted to £3176 163 Id. Of this amount a sum of £2871 16s was expended. As usual, all applications for assistance in this direction were carefully investigated and having regard' to the necessity for curtailing expenditure -as far as possible, assistance was granted in those cases where the results of investigations warranted it. Expenditure on the Schools of Mines amounted to £3641.