C—2.

In consequence of the resignation of Mr. H. A. Gordon, Inspecting Engineer, Mr. Gγ. Wilson, Inspector of Mines for the Auckland District, was appointed to that position, and the vacancy thus caused was filled by the transfer of Mr. J. Glow from Otago. Subsequently, that gentleman having severed his connection with the department, the two vacant positions were filled by the appointment of Mr. Coutts for the Mining District of Auckland and the temporary appointment of Mr. Hayes for the Mining District of Otago In June last Mr. N. D. Cochrane abo accepted a position with a private mining enterprise, and Mr. R. Tennent was appointed Inspector for the West Coast district. The heavy increase in the work of inspection caused by the large number of additional mines at work necessitated the appointment of Assistant Inspectors, and Messrs. Ryan and Richards were selected to assist in the Auckland and West Coast districts respectively. CONCLUSION. In concluding my remarks on the mining industry, I would point out that the impetus given to mining operations through the introduction of capital has been shown in the increased number of mines in which prospecting and development work is being carried on, and in pursuance of which extensive mining and milling machinery has been erected. The number of special claims now taken up for quartz and alluvial mining in both new and previously-worked ground and the attention devoted to prospecting gives hope for believing that additional exploration within auriferous areas will result in the discovery of quartz reefs and of alluvial gravel deposits containing gold in such quantities as will enable them to be profitably worked. The stream of capital for mining investment that first set in in the northern districts is being directed to the Middle Island, and, without being over-sanguine, I think it can be reasonably expected that the interest taken in mining throughout New Zealand will continue to increase, that many new mines will be discovered, and that our mineral resources will be developed in such a manner as to insure steady yields from the mines with highly profitable returns for shareholders. The construction of roads and tracks for opening up new fields and also for improving the means of communication in the older districts is a matter of urgent necessity, and ample provision must again be made for the vigorous continuance of necessary works. In order to aid in the further development of the industry substantial grants will also be required for prospecting, water-conservation, and deep-level mining. The continuance of mining prosperity will result in employment being found for miners, and the country further opened up for the prospector, thus adding in a substantial manner to the advancement of other industries conducive in a marked degree to the progress and prosperity of the colony generally.

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