STEEL-WORKS IN NEW ZEALAND

Press, Volume LXX, Issue 21255, 29 August 1934, Page 12

STEEL-WORKS IN NEW ZEALAND

ESTABLISHMENT BY j OVERSEAS FIRM | TESTS OF WAIKATO COAL I TO BE MADE | THE PEESS Special Service.] AUCKLAND, August 28. A consignment of 50 tons of Waikato coal is to be shipped to England from Auckland by the Opawa, for experiments to be made, connected with the investigation now being made by Pacific Steel Ltd., into the feasibility of establishing steel-works in New Zealand for the utilisation of the vast iron deposits at Onakaka and Golden Bay. The investigation is being carried out on the company's behalf by Brassert and Company, consulting metallurgical experts, of London and Chicago. A party of Brassert and Company's representatives, who have been making an extensive tour of New Zealand in company with Dr. Henderson, director of the Geological Survey, left for San Francisco by the Monterey on Saturday, and their report will be available later. The investigation has been assisted by a government grant of £2500. The purpose of the coal shipment is to ascertain whether Waikato lignite coal, of which very large supplies are available, can be successfully used to make metallurgical coke for burning in blast furnaces. Lignite is definitely not suitable for coke making by the ordinary process employed at steelworks: but a newer process has been devised in which residual fuel oil is added to the coal. The test consignment is being shipped in 16 400-gallon steel tanks containing water which will be used to prevent chemical changes due to exposure to the air. Its destination is Corby, Northants, where a steel plant costing £3,500,000 is being erected for the well-known pipe manufacturing concern of Stewart and Lloyd. Here furnaces will be available for testing its suitability for coking by the new process. It is possible that a consignment of southern coal from Kaitangata will be sent forward later for similar tests. Recent reports from Dunedin that the proposed steel-works were to be erected in that city are stated by Pacific Steel, Ltd., to be unfounded, and this is confirmed by the decision to test the suitability of Waikato coal. The choice of site depends on a great many factors, particularly costs of landing ore, coal, and limestone at the works. Until the reports of the experts on all the phases of the question have been received, it cannot be determined whether the plant will be established at all, much less where it will be located. PACIFIC STEEL, LTD. | NEW ZEALAND DIRK* TORS AND ■ SHAREHOLDERS r:'-%-.i-i iSS'KUTId* i !;lcu.;:. .'J. DUNEDIN, August 28. Pacific Steel, Ltd., is a company incorporated in Great Britain, and of which the directors and shareholders are all New Zealand men. It was established at the beginning of last year by Mr lan S. McDonald, Mr J. C. Clark, and Mr A. P. F. Watson, the two first-named being former residents of Dunedin. The objects of the company were to take over the interests of the Onakaka Iron and Steel Company, and other rights over minerals, properties, etc., which were considered necessary in the establishment of the industry. The company aimed at the establishment of up-to-date steel works in the Dominion, for the making of rails, joists, girders, channels, plates, sheets, tubes, wire bar. bolt and rod, and other merchant sections. Its I original capita! was subscribed by the three original directors, and has since been added to. It was intended that the company should cater fully for the New Zealand market, and in addition it was anticipated that it should enter to a considerable extent in overseas markets. A report by the investigators who have just left New Zealand will be submitted in due course to the directors of Pacific Steel, Ltd. If the report is favourable, finance totalling £2,000,000 will be available from London.