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2

It is recognised that depots established for the distribution of State coal to the people have been a decided success. For the period under reviewTthe Wellington and Christchurch depots have done remarkably well, having increased sales by about 8,000 tons each; while at Wanganui. where a depot has only been established for about eleven months, some 4,500 tons of coal were disposed of, therefore fulfilling the purpose for which it was inaugurated. In Dunedin a site has been acquired, and a depot is in the course of erection. This should lie ready to distribute State coal early in July. It is intended to extend this class of business where the circumstances warrant the establishment of depots, and an endeavour is being made to arrange with municipal bodies to undertake the sale and distribution of coal in localities where State depots could not be run with financial success. On the whole, the working of the State coal-mines for the past rear lias been a decided success, and there is every reason to consider the satisfactory results obtained will continue to be maintained. I have, <fee, W. C. Gasquoine, General Manager, State Coal-mines. The Under-Secretary, Mines Department, Wellington. Mr. James Bishop, Manager, Point Elizabeth State Coal-mine, to the Under-Secretary, Mines Department, Wellington. Sir,— Greymouth, 26th May, 1908. I have to submit my anitual report on the Point Elizabeth State Colliery lor year ending 31st March, 1908. Underground Development. The workings in both sections (Nos. 1 and 2) have been developed mainly towards the dip, and it is from this part of the workings that the bulk of the output of coal for the year has been obtained. In the No. 1 section the progress of the main dip has been interfered with by a downthrow fault crossing the line of the heading. This is shown on plan. As mentioned in my last year's report, the coal has t n proved on the dip side of the fault, and steps are now being taken to connect this with the present workings. No. 2 section very similar conditions have been met with, a fault, also a downthrow, having been encountered crossing the line of dip. So far, the coal has not been located on the downthrow side of this fault, but active steps are being adopted to effect this. CoAL-WINNING. The gross total output for the year was 233,497 tons 18 cwt., of which 131.311 tons 6 cwt. was drawn from the No. 1 section and 102,186 tons 12 cwt. from the No. 2 section. After deducting from the above total, mine consumption and small mal put to spoil, there remained 217,902 tons 15 cwt. available for market, a quantity exceeding last year's disposals by 54,424 tons 12 cwt. A pleasing feature in connection with the year's trade is found in the increased demand for the small coal produced. The mine worked 242 days ; consequently, the average per working-day was 900 tons 8 cwt. of marketable coal. Surface Works. The whole of the plant, machinery, and buildings have been maintained in good and efficient repair. The haulage-engines and air-compressors have worked well ; the latter, owing to increased water, are kept working continuously three shifts daily, and, in addition to actuating the pumps, air has to be-supplied for underground haulage-engines. Some minor improvements have been effected in connection with screens and coal-storage plant, and a duplicate engine has been erected for No. 1 ventilating-fan ; and it is proposed to duplicate the engine at No. 2 fan also, thus providing as far as possible against interruption to the ventilatingcurrent through any breakdown of the engines. The sawmill has done good work during the year in connection with the mine buildings and other requirements, also in the supply of timber to workmen oil easy terms of payment for the election ot homes, the building of which by the employees has gone on very rapidly of late. Seven workers' cottages, a house for the manager recently appointed to No. 1 section, and a library building. containing reading-room, book-room, billiard-room. &c, have also been erected ; and it is pleasing to note that the latter institution is very highly appreciated by the employees. Kxploration. . Under this head much work has been done in connection with both sections of the mine-workings. Owing to the faults already mentioned as crossing the line of main dip headings, it was necessary to put down additional bores on the dip side of the faults on the No. I section ; this work has resulted in the seams being located on the downthrow side, and for some considerable distance from the fault. In No. 2 section the bores are not yet complete, hut they"will doubtless prove the seams to exist under similar conditions to those proved in No. i. Surface exploration has been directed almost entirely to examination of the country between the head of the Seven-mile Creek and the Ten-mile Creek.