ONEKAKA PROJECT.

Auckland Star, Volume LXX, Issue 210, 6 September 1939, Page 5

ONEKAKA PROJECT.

EXPERTS CONFIDENT.

IRON AND STEEL INDUSTRY. RAW MATERIALS AVAH.AHLE. (By Telegraph.—Parliamentary Reporter.) WELLINGTON, Tuesday. A statement that the available resources of raw materials, of which the quantities are already established, are sufficient to meet the needs of an iron and steel industry in New Zealand for

a period of 70 years at least, is contained in a report tendered to the Government by H. A. Brassert and Company, Limited, of London. The report, which is included in the first annual report of the Iron and Steel Dejiartment, presented in Parliament today, envisages production on a scale based oil New Zealand's imports of steel.

Brassert and Company say it can be assured that: — v

(a) The reserves of the necessary iron-bearing materials, coking coal, limestone and dolomite are adequate to meet the demands of an iron and steel industry on tlie scale proposed for a period of 70 years, and there is every indication that further exploration will establish additional resources of iron ore. either for the extension of the 1 if ° of the plant or for production on a large sea le.

(b) Tlie location at Onekaka offers the most favourable position for the economic production of steel. (c) The market demand and the local conditions are sucli at? to justify the establishment of a steel industry on a sound economic basis.

(d) The manufacture of steel in New Zealand will have a marked beneficial effect on the problem of unemployment, overseas finance and national defence. Manufacturing Programme. The report states that the following manufacturing programme has been agreed on as the basis for the first stages of production: —Coke. 120.000 tons a. year: pig iron. 120,000 tons; steel ingots. * 130,000 tons; steel products — rails 11,000 tons, blooms and billets 2000 tons, sections 21,500 tons, merchant bar 28.5(H) tons, sheets 20.500 tons, wire product 15,000 tons a year. The main materials required for the manufacture of iron and steel, the report states, are coal of suitable coking quality, iron ore, limestone and dolomite. The amount of coking coal required will be about 180.000 tons a year, and it is considered, after an examination-of the suitable coal reserves, that there is sufficient on the West Coast for more than 170 years of the steel works demand.

The quantity of metallic iron ore required annually will range from 287,500 tons to 230.000 tons, according to the quality of the ore. The two main sources available in New Zealand are the iron ore deposits at Onekaka and the iron sands of Taranaki. It can l>e assured that one-fifth of the iron required can be drawn from the iron sand deposits, leaving four-fifths to be supplied as iron ore. A definite assurance can be given that the ore deposits are adequate to nieet requirements. Dealing with the financing of the industry, the report states that the net earnings, before provision has been made for capital charges or income tax, are estimated at £445.000, for a full year of operation. It estimates that about 1500 men will lie given direct employment at the steelworks, and that an additional 300 to 350 men will be provided with work in the mines, with the result that some £050,000 a year will be added to the wages fund of New Zealand.