GOLD PRODUCTION.

Auckland Star, Volume LXIX, Issue 127, 1 June 1938, Page 6

GOLD PRODUCTION.

While gold production from the dredging [areas increased by 13,6330z last year, | both alluvial and quartz mining decreased .sharply, and the net gain was only 41160z. It would be more satisfactory if the figures had been the other way round, as most of the dredged area is useless for agricultural purposes after it has been treated, while relatively small areas are required for quartz mining operations, and even these have their agricultural value after the reefs have been worked out. The Government has offered useful assistance by the provision of small batteries in the auriferous areas, but in the low grade areas the tax on production, whether at a profft or not, still continues to handicap enterprise. It is claimed in some quarters that the price of gold to-day is so high that if gold mining companies are unable to pay the tax they will be in trouble when the price recedes. That argument has little merit; there are known areas of low grade ores which would possibly pay to work to-day if given a free run. The tax, however, imposes an extra levy on working costs and acts as a deterrent to investors who might otherwise raise th" necessary capital to work reefs which are ca the borderline of profitable production. The price has held its present high level long enough to give some confidence, and if new areas can be opened up at reasonable risk the Government should not perpetuate the mistake of its predecessors by needlessly penalising enterprise. The emergency which led to the imposition of the duty has long since ; passed, and there is a strong case for a reversion to ordinary taxation methods.