GOLD-MINING INDUSTRY.

Press, Volume LXVI, Issue 19971, 4 July 1930, Page 14

GOLD-MINING INDUSTRY.

MORE ASSISTANCE URGED. (By E.W.8.) The world shortage of gold at the present time and the decrease in value of our primary products call attention to the steady falling-off of gold production in New Zealand, a country that between the years 1857 and 1905 exported gold to over the total sum of £67,000,000. Since that date the export of gold has steadily declined and now bulks at a very low figure among the country's export industries. It may be said by some that all the richest and most accessible gold deposits have been mined and worked out, and, while this is partly true, there are other conditions, over which the industry has no control, which have led to the abandonment of many valuable properties and the failure to exploit and open up new fields. The industry is in the unfortunate position of producing an article which has not increased in value—and in this connexion one must remember that during most of the war period! the premium on gold, which rose as high as 12s 6d above the standard rate of approximately 84s per oz. was not received during the greater part of this time by New Zealand mining companies, as they were restricted from selling their gold otherwise than in New Zealand—while the cost of explosives, labour, fuel, and all other expenses of production have risen to such an extent that many producing mines have been unable to carry on. The same conditions apply in Australia, but it South Africa and other places where cheap black labour can be obtained a large gold output has been maintained from ore of very low grades. Should such cheap labour have been obtainable here there is no doubt thfit a large gold production could have beem maintained in New Zealand. One of the largest mines now operating in New Zealand produces over £70,000 of gold per annum and its total gold production must be well over £1,000,000, yet the working expenses have risen to such an extent that it has been unable to return little, if anything, to its shareholders by way of dividends during the last few years. The expenses also of prospecting and proving large dredging or alluvial areas are now practically beyond the means of most mining companies operating in New Zealand. Such a company must be prepared to spend perhaps several thousands of pounds in boring and proving an area only to throw it in and start all over again, and it must therefore have large resources in order to be in a position to prove the various properties that it acquires or lias offered to it until one is met with that gives adequate returns and which in addition pays for the cost of testing other areas which may not have proved payable. Such a successful result has been obtained by the American Company who own the large electric dredge operating at Hokitika and who are now putting on another dredge of double the capacity. It is probable, however, that this company has had to spend perhaps £20,000 in boring their areas in order to prove whether the property would prove a commercial proposition or otherwise. Although large sums have to be risked in this way, yet careful and extensive boring will in alluvial and dredging ground prove the value of an area in a very accurate manner and the price of gold being stable it is possible to calculate the profits that will accrue from the working of the property to a degree of certainty that can seldom be attained in any other commercial proposition. In a recent report of the Mount Isa mine in Australia, which was taken over by a large English mining company about a year ago, it was stated that a very large amount of prospecting has been done both by driving tunnels and by boring with diamond drills to a depth of up to 1000 feet, and that ore deposits had been disclosed of lead, silver, and zinc, of a gross value of £80,000,000. It is clear, therefore, that such efforts are beyond the resources of private enterprise in New Zealand, and unless outside capital can be induced to interest itself in our mineral resources the Government should be induced to render more assistance than it has in the past. Although assistance has from time to time been given by the Mines Department by way of subsidy or loans for property work, yet the scope of the operations authorised and the amount received have been too small to have any appreciable results. In Australia this q stion has received a great deal of consideration, and the Federal Government has decided that producers may sell their gold in the open market and receive any premium that may be attainable, but has left the decision as to what other assistance should be given by way of subsidy or otherwise to the various State Governments.

The importance of the whole matter cannot be denied when is realised that financial experts attribute the present world slump in all classes of commodities to the general falling-ofif in gold production and the subsequent world shortage of gold.