c.-i

10

It is now my purpose to deal with a branch of mining which I regard with the utmost satisfaction in respect to the well-being and best interests of the colony. I refer to the coal industry. It is gratifying to me to be able to point to a steady increase in the annual output: but the supply from our mines is not equal even to the consumption within the colony. Since returns from coal-mines have been furnished, the approximate total output from all coal-mines in New Zealand appears 4,052,614 tons, while the output for last year was 584,853 tons, as against 511,063 tons for the year preceding it, thus showing an increase in the output for last year of 23,290 tons. The quantity of coal imported last year was 119,573 tons, against the previous year of 130,202 tons ; showing a decrease in the imports of 10,329 tons. Adding together the output of coal from the mines in the colony and the quantity imported during the year ending 31st December, 1886, gives a total of 654,226 tons, against a similar aggregate for the previous year of 641,265 tons; which shows the increase of our coal-trade for last year to exceed by 12,961 tons the trade of the year previous. According to the returns furnished by the Customs Department, I find the export of coal for last year amounts to 46,540 tons; and of this quantity 43,678 tons were used in coaling the direct steamers trading with England, and 2,862 tons were sent away for foreign use. The actual consumption, therefore, within the colony, including that used by direct steamers, last year was 651,364 tons, or 117,011 tons more than the total output of our mines. The consumption of New Zealand coal in the year 1885 was 638,894 tons, which gives evidence that the use of our own product within the colony is steadily increasing; and I regard these figures with satisfaction, as they are excellent proof that manufacturing power is extending, and consequently more fuel is required every year. It must not, however, be supposed that when the time comes —and that time is not far distant —that our mines are capable of supplying the full quantity necessary for the colony's wants, importation from other countries will cease; for vessels trading to New South Wales with New Zealand produce will generally carry back to us a certain quantity of coal as ballast, and ships trading from Britain frequently have as cargo parcels of Welsh and Scotch coal; but, nevertheless, looking at the very superior quality of our Westport and Greymouth coals, I do not think that New Zealand has anything to fear from even active competition in the coal-markets of the world with any other coal-producing country. Our great difficulty at present—and I regard it as only temporary —in competing with foreign producers is that our best bituminous coal can only be exported from bar-harbours, such as Westporfc and Greymouth ; but the improvements now rapidly going on at each of these important ports, and the favourable results already shown by the works done by the two Harbour Boards, lead me to believe that within twelve or eighteen months excellent facilities and safe accommodation will be afforded at both ports for steam-colliers and other vessels capable of carrying on one bottom 1,500 to 2,000 tons of coal for export. It will then be recognized of what enormous value is the west coast of the Middle Island to the colony as a whole; for the large area over which the bituminous-coal measures in that locality extend, and the almost phenomenal thickness of the seams, point to it as the region from whence our future supply for manufacturing, commercial, and domestic purposes must come, as well as the supply of a great export trade for foreign use which most surely will be engendered by the exceptional goodness of the product. The increase in the output of bituminous coals last year may be seen by reference to Table 13, appended, as 28,163 tons, and of pitch-coals as 18,993 tons; while the output of brown coal for the same period exhibits a falling-off of 18,724 tons, and that of lignite 4,541 tons. The principal increase in the output of bituminous coal occurs in the Westport District, the Banbiiry Mine showing 28,139 tons, and the Koranui Mine 13,631 tons. In the Greymouth District the Coal-pit Heath Mine shows an increase of 4,418 tons. Of other inferior classes of coal in different parts of the colony the mines that show an increase are the Shag Point 6,816 tons, and the Kaitangata 6,039 tons, in Otago; the Nightcaps, Southland, 4,900 tons; St. Helen's, Canterbury, 2,811 tons; and the Whauwhau, Auckland, 2,735 tons.