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Employees. —In connection with coal-winning, tho average number of persons employed in and about the mine was 303 (a decrease of 15 as compared with the previous year), made up as follows : Underground—Coal-hewers, 103 ; deputies, shiftmen, and truckers, 106. On the surface —64 men and 30 boys. In addition to those employed under the head of " coal-winning," there were 27 men and 1 boy employed on prospecting and development work, making a total number for this colliery of 300 men and 31 boys. Payments. The; total payments made in connection with coal-winning on account of stores, mine-timber, and compensation amounted to £69,614 9s. 7d., a decrease of £20,072 3s. 3d., in payments compared with the previous year. Coal-hewers' Average Daily Earnings. —The coal-hewers' average daily earnings (gross) were £1 3s. 10-82 d. ; and after making deductions for stores (explosives) the net return was £1 Is. 8-2 d., an average reduction of 4s. 4-53 d. per day compared with tho previous year. Daily Output. —The average daily mine-output was 547 tons 4-48 cwt., and the average daily output per coal-hewer was 6 tons 1-04 cwt. Days worked by Coal-hewers. —The total number of days that could have been worked by coalhewers was 22,685g, the number worked was 18,792-J ; and. the number of days lost, including those lost through sickness, was 3,893§. Taking the average tonnage per miner per shift at 6 tons 1-04 cwt., and the days lost by coal-hewers 3,893f, this represents a loss in output of 16 per cent., or a total of 23,564 tons 4-37 cwt. Underground Development. —The bulk of the year's output was obtained from pillar-extraction from the Nos. 1 and 3 sections of the colliery, the only exception being where a small output is obtained from workings in the course of being opened at the No. 3 mine extension, and the Nos. 4 and 4a mines. In the No. 1 section there are thirty-four pairs of miners employed : this includes the Morgan and the Upper seam. As there is no development-work going on in this section, it would not be out of place to say that within the next three or four years the aroa of standing pillars remaining to be worked will bo small. In tho No. 3 mine the workable area is now so reduced that only seven pairs of miners are now employed. It is, however, anticipated that it will be possible to maintain this number during tho ensuing year. In the No. 4 mine the main heading has been driven a distance of 9 chains, and so far it has not been possible to extend the levels (right or loft) off the heading more than a chain before encountering troubled ground. On the right-hand side, and barely a chain away, there is a fault running parallel with the dip, which completely cuts out the seam ; and on the left-hand side, about the same distance away, the seam falls over almost perpendicular. Unless the seam becomes more uniform, and opens up in such a manner as to enable levels to be extended a reasonable distance, the question of stopping development-work in this mine will have to be considered. No. 4a mine : Development - work so far carried out at this mine has not been of a very encouraging nature. In the seam now being worked there are four dirt-bands, the aggregate thickness of which is about 20 in. The total thickness of the seam, including the four dirt-bands, is 8 ft. 6 in. To work a seam of coal of this nature is not a very satisfactory operation ; but, as the quality of the coal in this case is good, it is the management's intention to continue further driving in order to ascertain whether these dirt-bands will either reduce in thickness or pinch out altogether. No. 3 mine, extension : This is a mine that is being opened up near the end of the backshunt in the colliery sidings. The seam being developed averages 6 ft. 6 in. in thickness, and is undoubtedly the same as that now being worked at the No. 3 mine, but is separated from the latter by a downthrow fault. Two parallel winning headings 2 chains apart have each been driven a distance of over 100 ft., and it is pleasing to report that the coal so far won is equal in every respect to that now being won from, the No. 3 mine. Deeelofment-work. —Work under this head has been confined to the construction of the low-level tunnel into the Upper and Morgan seams. In connection with the driving of this tunnel, it was in the first place considered it could be driven the full distance of 56 chains, and ventilated by means of a column of air-pipes 16 in. in diameter, and that, when the seam was reached, a rise, connecting with the. surface, could be constructed for ventilation purposes. It was discovered, however, that this could not be done, as the ventilation supplied per medium of the pipe-line proved inadequate. In consequence a rise heading had to be constructed, connecting with the surface, from a place set off at a, point 21 chains distant in from the tunnel-entrance. From the point where tho rise heading was started a companion heading to tho main tunnel is now being driven. This was found to be necessary as the main tunnel could not be efficiently ventilated even from that point by means of the ventilation-pipes. The main tunnel has now been driven a distance of 28 chains, and the face of the companion heading is practically parallel with it. As these headings advance, seams will be met with in the following order : At 36 chains, a seam 6 ft. thick ; at 45 chains, a seam 21 ft. thick ; and at 56 chains, the Morgan seam, which is 25 ft. in thickness. As the work of constructing the two headings is being carried out by the one contractor and his men, working alternately in each, it can be readily seen that the progress would be slow if this had to be continued. In order to expedite the work, tenders are now being invited for the, driving of the companion heading, and when the contract has been executed arrangements will be made for both tunnels to be driven simultaneously. Surface Works. —The plant and machinery in and about the colliery has been maintained in efficient working-order. During the year the work of erecting the 290 horse-power generating plant from the Point Elizabeth Colliery, at tho central power-house, was completed. This plant is run alternately with the other plant which was previously erected and is in daily use at the power-house. During the year the generator belonging to the latter plant broke down, and it was fortunate that the other plant was erected as a stand-by plant, otherwise the mines would have been rendered idle for several days pending the repairs being effected.

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