C.— 2A.

Accidents. —During the year there were a lew minor accidents, but none were of a serious nature. The total payments made under the provisions of the Workers' Compensation Act amounted to £204 7s. sd. On the output produced this works out to a cost of l-45d. per ton. Underground Workings. —The bulk of the output was obtained from the extraction of pillars from the west and south level sections, the balance being made up from coal won from solid workings in the cross-cut dip section and the driving of a new dip heading. Solid work in the cross-cut dip section is practically completed, and a commencement has been made to extract some of the pillars. Surface conditions will not permit the complete extraction of all pillars from this section; it therefore means that several of them will be merely split into small blocks, the latter being left to support the roof under the creeks overhead. The new dip heading in the cross-cut section has been driven a distance of 5 chains. During the first 3 chains of driving the coal was unmarketable, and consequently had to be dumped. From there onwards the seam gradually improved, and at the present time there is upwards of 8 ft. of clean, hard coal at the face. The work of pillar-extraction in the west section is fast nearing completion, and concrete stoppings are being built to completely seal off the pillared area. Stone-dusting.—-Work under this head has been regularly carried out, and during the year 4 tons of stone dust were used for this purpose, and 101 samples taken from the various zones in the mine were analysed. Plant and Machinery.—The whole of the plant, machinery, and buildings in and about the mine have been maintained in good order and condition. During the year a new tramway for the supply of mining-timber was constructed from near the entrance to the mine. This tramway, which is 14 chains in length, greatly facilitates the handling of mining-timber. Genebal. In common with other collieries, the State Collieries have suffered during the year through slackness in trade. This slackness may be attributed to the increasing use of electricity and oil, together with the present economic conditions having a temporary effect on the household trade. Although there was a slight increase in output, also in the number of days worked at the James Mine, the Liverpool Colliery shows a reduction in output, also in the number of days worked when compared with the previous year. The number of days lost at the Liverpool Colliery during the year through slackness of trade was 116. Taking the latter figure with the average daily output of 744 tons, this represents a loss in output of 86,304 tons, also a serious loss in the earnings of the employees. The reduction in the working-time has also a serious effect on the general average cost of production, for it must be noted that maintenance work has to be attended to whether the mines work full time or otherwise. In conclusion, permit me to say that all the officers have performed their duties in a most loyal and efficient manner. I have, &c., I. A. James, Superintendent.

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