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Smithvale Mine.—Work ceased in October at the opencast pit east of the Ohai Railway, where the 7 ft. resin seam was being worked. The dip to the west, to go under the traffic-road, was stopped in August, when it was over 300 ft. down at a grade of 1 in 4. At the face was a soft sandstone with 15 in. of coal above, then another 2 ft. of sandstone and. then 2 ft. of coal. The measures were also dipping at 1 in 4 so it was decided to put down a short bore at the face. This not proving any workable coal-seam, the drive was stopped and it was then decided to work an opencast area near the old Wairio Mine workings. A surface tramway 20 chains long was formed down the hillside from the traffic-road and a new loading-bank was built near the road. Work did not proceed far to the east before reaching burnt-out ground. Then a pillar to the north was extracted. Prospecting will be commenced on a small area of virgin land nearer the traffic-road. Total output to end of 1931 was 2,297 tons. Mossbank No. 1 Mine.—The small section of solid work off the bottom of the main dip and to the southeast is completed and two miners are splitting some of the standing pillars. The extraction of pillars and top coal has been continued throughout the year in the Nos. 1 and 4 sections. The coal in the No. 1 section is very dirty, so much has to be left in on that account. Mossbank No. 3 Mine. —As some of the upper west workings were within 2 chains of the Wairaki No. 1 Mine workings they were stopped. The levels were driven on the floor at first but as the top coal* was found to be much cleaner than the lower portion of the seam the levels were extended in the top coal. For a while the seam became thinner, but it again thickened before reaching the barrier pillar. Through the upthrow fault of 15 ft. a pair of places have been driven about 5 chains in fairly clean coal and places are being worked east and west off these headings. East of the main haulage-road a small section has been worked. Most of the east levels have reached the barrier which separates these workings from the pillared area in the Mossbank No. 1 Mine. As the main haulage-road was not driven to the full dip its extension will be deviated to the south-west. Total output from Mossbank (two mines) to the 31st December, 1931, was 360,164 tons. Lobbs Ilill Mine. —The main level was stopped in coal 2 ft. 9 in. thick. Then a higher level was driven for a few chains, but the coal thinned to ft., so the few pillars were extracted. Owing to bad roof, all places had to be supported by close-lathed sets of timber. Near the end of the year the plant was removed to a new site about a cxuarter of a mile farther south. A new tramway, 10 chains in length, was laid down the hillside, and then a drive was put in to the east in coal 4 ft. thick. This is near old workings and the old level nearby has been retimbered. Total production to end of 1931 was 1,083 tons. Wairaki No. 1 Mine.—The No. 2 east levels were stopped at the fault, and a few pillars to the rise have been extracted. Below the No. 2 east level and 18 chains in from the main haulage-road a prospect dip is being driven at a grade of 1 in 8. When 150 ft. down it met an upthrow fault of about 11 ft. displacement. A downthrow fault was expected 120 ft. beyond the upthrow, but the dip is now down 300 ft. and is still in the measures, dipping at the same inclination as the drive, immediately below the coal-seam. To the west a place is being driven up into the seam and it will connect with a back heading. From near the bottom of the main haulage-road the No. 3 east level was extended through the upthrow fault which was met when the level was only 2 chains in. At the face, about 4 chains in, the level is under the floor of the coal-seam and it will have to be extended another 100 ft. before a full face of coal can be worked. Work ceased in the prospect dip below the No. 3 west level early in the year as no workable coal was found, and the dip was allowed to fill with water. Throughout the year pillaring was continued in the Nos. 2 and 3 west sections and in the lower portion of No. 1 west section, the upper portion having been worked out and sealed off over a year ago. Total output to the 31st December, 1931., was 395,445 tons. Linton No. 1 Mine. —Manderson's dip, when 19 chains in, met an upthrow fault running east and west and of 20 ft. displacement. The place was then driven to the rise at a grade of 1 in 4 to cross the fault. It was then continued for 11 chains at its normal dip of 1 in 8 and it is within 2 chains of the barrier pillar separating the Linton No. 1 and Birchwood No. 2 Mines. Eleven chains in from the north-west heading an incline was driven to the south-east and it met the upthrow fault when 6 chains up. It was driven through the fault and levels then broken away right and left, that to the right, going parallel with Manderson's dip, being in 5 chains. A small panel has been formed to the east of the incline and below the upthrow fault. About 2 chains beyond where the fault was met in Manderson's dip another pair of inclines were driven to the south-east. They met another upthrow fault of 40 ft. displacement which junctions with the 20 ft. fault, so the inclines had to be stopped about 5 chains away from the large fault which separates the No. 1 and No. 2 mine workings. Two levels have been driven to the east from near the top of the inclines and a small panel formed. When the back north-west heading was down 10 chains below Manderson's dip it was stopped, and work was then resumed in the north-west heading. It is 8 chains below the entrance to Manderson's dip and is again stopped at the downthrow fault. From near the face a place is being driven to the west and will connect with a place being driven out of Manderson's dip. When they connect the drive will be used for a new and more direct haulage-road into Manderson's dip section. Ahead of the north-east heading and at the eastern end the levels met mushy coal and then the large fault between the old No. 1 mine and the present workings was struck. A panel will soon be completed there, and then pillaring will commence. Off the northeast heading, and a few chains to the dip of the almost completed panel, a pair of levels called the "north levels " have been driven in very disturbed country. Six feet of coal was driven through, then 4 ft. of sandstone and then good coal was again met. The lower level was stopped temporarily in about 6 ft. of coal while the upper level met a large " roll " and the place appeared to be in a lower seam than the level above. The same roll was met at the top of the deviation of the north-east heading and in a place to the east of that heading. Off the north-east heading and between the north-west heading and the " north levels " a small section of troubled coal has been worked. The bords have reached the large downthrow fault and the solid work should be completed in that area in about two months. A section of pillars between the old horse level No. 1 Mine workings and the upper portion of the north-west heading was reopened in June and four pairs of miners have been employed there, but they are now back to the barrier pillar so that section will again be sealed off. Linton No. 2 Mine.— Owing to heating in the goaf the Nos. 2 and 3 south sections had to be sealed off in February and the Nos. 4 and 5 south sections in June. The main dip reached the barrier pillar which separates this mine from the Birchwood No. 2 mine in May. A place was then driven to the south alongside the barrier, but as the seam thinned right away the place- was stopped when 4 chains in. One place to the south-east off the main dip is in stony coal 5 ft. thick. Two places are also being driven to the north to follow the line of the barrier pillar. That from No. 5 north is in stony coal 7 ft. thick. Four solid places are being worked in No. 7 north. Two pairs of miners are pillaring in No. 7 south and three pairs in No. 6 south. Total production from Linton Nos. 1 and 2 mines to end of 1931 was 822,065 tons. Birchwood No. 2 Mine. —A downthrow fault, running east and west, was met in the main drive when it was 22 chains in from the surface. All places to the west were also cut off by a downthrow fault when only 5 chains in from the main drive. To the east the coal thinned and was very variable in quality. Later the east-side places were also cut off by a large roll or fault. Several places both on east and west sides contained many stony backs. As the area being worked was practically surrounded by faults, it was decided to put down two boreholes to prove the land to the north-east. The first hole is 5 chains ahead of the farthest inbye east place. Good coal was proved in both bores and a stone dip is being driven to the north-east to cross the downthrow fault of about 45 ft. displacement. Total output to the 31st December, 1931, was 84,886 tons. Black Lion Mine. —The dip to the south-west was stopped at a fault when 5£ chains down. It was then about 40 yards from the Morley Stream. This fault was also met in places to the west. Off the dip, and 4J chains down from the top, a level to the south-east is in 6 chains, and it will be stopped when it has been extended another 30 yards, as it also is approaching the Morley Stream. At the face of that level the coal is

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