C—2.

Of other minerals, including coal, 800,205 tons were produced, representing a value of £862,224, as against 734,693 tons, of a value of £826,048, for the previous year. The production of kauri-gum was 7,126 tons, valued at £431,323, as compared with 7,425 tons, valued at £418,766, for 1895. The quantities and values of the chief mineral productions for the year ending 31st December last were as follow : — Product. Quantity. Value. £ Gold ... ... 263,694 oz. 1,041,428 Silver ... ... ... ... 94,307 „ 10,589 Antimony-ore ... ... ... ... 21 tons 450 Manganese-ore ... ... ... 65 „ 205 Mixed minerals ... ... ... 37 „ 1,335 Colonial coal exported, including that used by Home steamers... ... ... 79,524 „ 71,984 Coke exported... ... ... ... 105 „ 263 Colonial coal consumed in New Zealand ... 713,327 „ 356,664 Kauri-gum ... ... ... ... 7,126 „ 431,323 Total value of production for 1895 ... ... 1,998,891 1896 ... ... 1,914,241 Total decrease ... ... ... ... £84,650 The total value of the gold, silver, coal, and other minerals, including kaurigum, exported up to the end of 1896 was £66,759,584. GOLD-MINING. The decrease in the yield of gold during last year may be accounted for in several ways, and is not altogether due to the scarcity of the precious metal. As, for example, the increased demand for mining properties by English companies and the consequent change of ownership of many of the gold-producing mines, together with an alteration of policy in preparing for extensive exploring operations, with the object of the more efficient working of the mines in the future, led to a contraction in the quantity of ore mined. Many crushingplants were thus left comparatively idle, not for want of material to operate upon, bat because it was deemed more advisable to let the ore remain in the ground until improvements in gold-saving appliances were effected than to continue mining and milling on the hand-to-mouth principle of the past. This applies both to the Hauraki district and to Eeefton, which is the chief centre of quartz-mining on the West Coast goldfields. The alluvial fields of the West Coast and Otago also show a decrease in the yield, chiefly owing to the scarcity of water. A satisfactory yield of gold will, I have no doubt, however, be maintained in the near future when the new quartz-crushing mills now in course of erection are completed and kept fully employed. Many of the claims taken up are now in the hands of persons who have given evidence of their desire to develop the areas by the expenditure of large amounts upon new works, but there are many claims and water-rights held by persons who have failed to show what work they intend to do, and who are evidently not prepared to comply with the conditions under which they hold their properties. The certainty of tenure depends in a large measure on the holders of rights themselves, due protection being given to all who carry on work in a bond fide manner, whilst those who neither comply with the conditions nor take steps to obtain protection are liable to have their titles assailed at any moment. It is the policy of the Government to aid in every way by giving security of title and other advantages to those who are developing the mining resources of the colony, but the holding of claims and other mining rights for merely speculative purposes will not be permitted. The quantity of gold entered for exportation through the Customs for the year ending 31st March last, as shown in Table No. 2 annexed, was 256,913 oz., representing a value of £1,015,742; while the quantity exported for the same period of the preceding year was 802,690 oz., valued at £1,196,081. This shows a decrease of 45,777 oz. Of the quantity exported, Auckland contributed 93,876 oz., Marlborough 789 oz., Nelson and West Coast 74,082 oz., and Otago 88,166 oz.

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