State Coal Mines

Maoriland Worker, Volume 3, Issue 87, 8 November 1912, Page 2

State Coal Mines

ANNUAL REVIEW.

THE FINANCIAL POSITION

The annual report on the State coal mines by the Under-Secretary for Mines (Mr. H. J. H. Blow) was presented to Parliament on October 29 (says Wellington "Post"). The report opens with a historical review of the working of the Point Elizabeth and Seddonrille mines. In regard to the latter, it is said that the quality of the ooal has been found to be extremely variable and unsatisfactory, owing to the large proportion of crushed and soft coal, for whioh the demand is irregular. It is estimated that all suitable or hard coal will have been won from this mine by the end of March, 1-914. As a State mine, this colliery had produced up to the end of last March, 419,580 tons of coal.

For the utilisation of a large proporttion of soft ooal and slack produoed Ist this colliery, a briquette-manufactory was installed at Westporiy at a total cost of £16,135 and in 1907 the manufacture of briquettes and eggettes was commenced ; but in 1911 the works were closed down owing to the high oost of production. The total quantity of briquettes and eggettes manufactured amennted to 82,714 ton«t.

Dealing with the Point Elziabeth No. 2 State..colliery, it is stated that the railway is well on the road to completion. Up to March 31, 1912, £159,177 had been expended on the woTk, and some £10,000 to £12,000 will be required for its completion. There are six seams of coal at the mine, and an available output of 500,000 tons for 99 years. The colliery should reach the output stage at the end of the year. The equipment at the mine is on a scale to deal with 2000 tons a day. In addition to the expenditure on the railway capital amounting to £90,145 has been expended on the mine, and knoifcer £lD,ooo'te £15,000 will be required before it is opened. Tho total capital expenditure upon the State colliery business to Maroh 31, 1912, amounted to £254,947, of which £150,000 was obtained in the form of loan debentures, as provided for by the State Coal-mines Act of 1901; the balance from profits and from sums annually set aside for depreciation and sinking fund. Included in the capital expenditure is the sum of £90,145 recently expended in laying down the Point Elizabeth No. 2 State colliery. The assets, as shown in tihe last published balance-sheet, total to £244,014; but several of the items are not really worth the book value All the assets have now been reappraised, with the result that the whole is valued as a going concern at £188,342 or an auction value of £170,687. From this the report deduces that the original debenture capital is not only intact, but business can show a surplus of £38,342. Altogether, the State mines have produced up to the date of the report 1,960,084 tons of ooal. The report shows that a total of 330,968 tons of ooal have been disposed of at tihe various depots, and denie9 the oft-repeat-ed allegation that coal is supplied at a lesser price to the railways and other Government departments than to the public. When coal is charged to the Railway Department at ~a higher rate than ordinary it is on account of the State coal mines bearing the cost of sea freight. Mr. Blow recommends that £44,966 be written off the various mines and depots, which will practically mean repayment of two-thirds of the original capital. It is further recommended that the amounts written off for depreciation, together wVth the amounts set aside as sinking and reserve funds, be paid over to the Public Trustee for investment.