STATE COAL MINES.

Taranaki Daily News, Volume LV, Issue 139, 30 October 1912, Page 4

STATE COAL MINES.

INTERESTING REPORT. SEDDONVILLE MINE WORKING OUT. By Telegraph—Own Correspondent. Wellington, Last Night. The annual report on the State Coal Mines by the Under-Secretary for Mines (Mr. H. J. H. Blow) was presented to Parliament to-day. The report opens with a historical review of the working of the Point Elizabeth and Seddonville mines. In regard l to the latter, it is, said that the quality of the coal ha« been found to be extremely variable and unsatisfactory owing to the large proportion of crushed and soft coal, for which 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, li) 14. As a State mine, this colliery had produced up to the end of last March 419..J30 tons of coal. For the utilisation of the large proportion of soft coal and slack produced at. this colliery a briquette manufactory was installed at Westport at a total cost of £1(5,133, and in 1007 the manufacture of briquettes and eggetes was commenced, but in 1911 the works were closed down owing to the high cost of production. The total quantity of briquettes and eggetes manufactured amounted to 32,714 tons.

Dealing with tiio Point Elizabeth No. 2 State colliery, tlit* report states that the railway is well on the road to completion. Up to March :11. 1912. £1.50,177 had been expended on the work and some £IO.OOO 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 annually for 89 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 da v.

In addition to the expenditure on the railway, capital amounting to £90,145 has been expended on the mine, and another £IO,OOO to £15,000 will be required before It is opened. The total capital expenditure upon the State colliery business to March 31. 1912. amounted to £254,047 of which £150.000 was obtained in the form of loan debentures, as provided.Jfor by the State Coal Mines Act of 1901, and the balance from profits and from sums annually set aside for depreciation and sinking fund. Included in the capital expenditure is the sum of £00.145 recently expended in laying down the. Point Elizabeth No. 2 State colliery. The assets, as shown in the last published balance-sheet, total £244,014, but several of the items are not really worth the book value. All the assets have now been re-appraised, with the result that the whole are 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 that the 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 eoal. The report shows that a total of 330,9(18 tons of coal has been disposed of at the various depots, and denies the oft-repeated 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 cheaper rate than the ordinary it is on account of the State coal mines bearing the cost of sea freight. Mr. Blow recommends that £44,006 be written off the various mines and depots, which will practically mean the repayment of two-thirds of the original capital. Tt is further recommended that the amounts written off for the depreciation, together with the amounts set aside as sinking and reserve funds, be paid over to the Public Trustee for investment.