MINE PURCHASES

Auckland Star, Volume LXXIV, Issue 38, 15 February 1943, Page 4

MINE PURCHASES

DOBSON, WALLSEND

GOVERNMENT'S REASONS

The reason for the acquisition by the Government of the Dobson and Wallsend mines, near Greymouth, was given by the Minister of Mines, Mr. Webb, this morning. The Dobson Coal Company had found it unprofitable to continue pit development, he said, and desired to extract the mine pillars, contending that that was the only method that could be adopted to win sufficient coal to get back for the shareholders the money they had invested in the undertaking.

"I immediately informed the company that this could not be done as such an operation would probably leave a big field of coal buried for all time," continued Mr. Webb. "I insisted that pit development should proceed, but at the same time I realised that transport below ground would be costly. I had in mind that New Zealand is not over-rich in bituminous coal, and every ton that can he hewn is of great value to our war effort. The Government's point of view was .realised by the chairman of the company. He explained, however, that to continue pit development would practically exhaust the whole of the company's assets. Rather than close down the mine he suggested that the Government should take it over at valuation. Tribunal Determines Price

"As a result the Government's mining experts were instructed to report on the proposition and to confer with the company as to price. It was eventually agreed that the Government should purchase the mine, the price to be determined by a tribunal consisting of Mr. A. T. Donnelly, chairman of the Bank of New Zealand and Crown Prosecutor of Christchurch, Mr. O. Bishop, secretary of the Coal Owners' Association, and Mr. J. Dowgray, of tie West Coast. "The tribunal sat in Christchurch last week and recommended a price which has since been agreed to by the Government. The State Will take the mine over as from next Monday and develop the property as far as possible before extracting the pillars.*' In reply to a question, Mr. Webb said the dip development would prove costly, but it was hoped to make up any leeway lost in that direction by the winning of additional coal over the years. Bituminous coal was in great demand for gas production, and the Government could not allow the closing of the mine under any circumstances. The shipping situation between New Zealand and Australia was such that importations could not be relied upon to any extent. Referring to the Wallsend mine, Mr. Webb said the Government had been assisting the company for a considerable time and had decided on the company's suggestion to take fulL control as from next Monday. The mine produced bituminous coai. and it would probably take some 16 years to get the coal out from the standing pillars. The price to be paid was to be decided by arbitration. Mr. Webb said the two mines would produce about 800 tons of coal a day and employ over 300 hands. Before the State took over control next week, Mr. Webb said, he would visit Greymouth and discuss with the miners the setting up of a board of control similar to the Waikato Coal Mines Control Board. It was desired that the board, if appointed, should work in co-operation with the Coal Production Council and pit committees. He expected to reach i Greymouth on Thursday and to meet the miners on Friday.