IRONSAND INDUSTRY.

Taranaki Daily News, 16 August 1921, Page 5

IRONSAND INDUSTRY.

EXPERIMENTS IN BRITAIN. PROSPECTS FOR LOCAL WORKS, QUESTION OF POWER SUPPLYA cable from London on August 10 announced that Mr. W. F. Massey was to inspect a demonstration of smelting New Zealand ironsand at Darlington, and that if this was satisfactory it was probable works would be established in New Zealand. This message no doubt had reference to Taranaki ironsand, and a letter which was read at last night’s meeting of the New Plymouth Borough Council contained further enquiry from the Darlington firm of Messrs. Thomas Summerson and Sons, as to whether the council would be prepared to supply electric power at New Plymouth for furnaces to treat ironsand. The conditions stipulated by this firm, however, were not acceptable to the council. It will be recollected that there were negotiations between the parties on previous occasions. The following letter, under date June 11, was received from Mr. Percy S. Leggatt, on behalf of Thomas Summeraoa and Sons: “As you may be aware, some twenty tons of Taranaki ironsand has been shipped by the New Zealand Government to these works for experimental treatment, in order to decide whether various irons aud steels can be commercially produced therefonn by electrical processes. The shipment baa not yet arrived, but is expected early next month (July), and the experiments will be so dated as to fit the coavosi* ence of your Premier, who has express--ed a wish to be present. CONFIDENCE IN RESULTS. “As we confidently expect satisfactory, results, we are looking into matters gov-' eming the early establishment of smelting works at New Plymouth, and during a recent conversation Mr. Summerson and myself had with Mr. Massey in London, we frankly informed the latter that it would not be advisable to disburse large sums for electrical furnaces, and then costly accessory gear, unless an adequate supply of electric power was continuously assured at reasonabla rates. We understood from Mr. Massey that some years must elapse before supplies can be obtained from the projected Government power stations. This amply confirms the opinion I formed when in New Zealand in the early part of 1920. Mr. Massey enquired, if I had considered the possibilities of deriving a workable supply from a local source. I informed him that I had made a very careful investigation, and was of opiibi ( ion that a continuous supply from a minimum installation of 3000 kilowattsalone would justify the outlay that must be incurred, in respect to even a<. small smelting plant at the breakwater. In response to Mr. Massey’s enquiry as to whether I had approached you w-lit-any offer to assist, financially or otherwise, in your projected hydro-electro developments. I informed him that I had been in unproductive negotiation with you since the early part of 1920. “I now carry out Mr. Massey’s suggestion of re-opening these negotiation*-, and have to enquire whether your council is prepared to consider our offer of cooperation, financial and otherwise, in, bringing about the expedited completion of these hydro-electric extensions. Under conditions, of which rhe exact details must necessarily be worked out negotiations, but which lui-ve as a cardinal principle, tjite reservation fon, smelting requirements the entire, con* tinuous power output of at least- .KXMK kilowatts, We are prepared to complete! and to equip your hydro-electric extent sions. “We should require to be left a fraa hand as regards most suitable design’ and equipment cf power house, etc., and uninterrupted control of its operation for an agreed term. The sale of the residential power over and above the agreed minimum ear-marked for the service of the furnaces, etc., floes not interest us, and would be yours at generation cost. I would here observe that wo have worked out estimates whereby sale of the energy from reserved! 3000 kilowatts, at- an acceptable rate to ns for smelting operations, would pay , entire, capital costs as regards interest and amortization, and leave your council sufficient to supply all local users. This residue, sold at the cheapest rates in the world, would nett you d very handsome annual revenue.

PLANT NEEDED. “We have given the w' ole questloit of an electrical supply most careful thought, and, together with Mr. Massey, feel assured that you will consider our supplementary offer in such connection equally responsible as onr honest desire to institute, and to operate, a self-contained iron and steel industry in.' your town. “Wo feel that your council will rearIse the gain to your small community if progressive industries are instituted in the vicinity of the breakwater, but wo would be very definite in onr expression of considered opinion that, suchwill not be practicable unless adequate, continuous, and cheap electrical power is available.” The electrical engineer (Mr. R. H. Bartley), wrote as follows concerning Mr. Leggatf-’s communication : “I have read carefully through the letter, add it comes back to my previous statements, viz., the council is not in a position to supply this amount of power under the conditions suggested, and which are laid down as vital, and the only acceptable basis. The conditions are: Adequate, continuous, and cheap electrical power of a minimum of 3000 kilowatts (or allowing for losses in transmission, 4400 h.p.) There is only one way in which this demand could be handled, and this is by the installation of subsidiary plant.” On the motion of the Mayor (Mr. F. E. Wilson), it was decided that a copy of the engineer’s letter be forwarded to Mr. Leggatt. As pointed out, the conditions asked fof could only be complied with by the installation of some auxiliary plant, such as steam generation, etc.