STATE IRON WORKS

Press, Volume LXXIV, Issue 22418, 3 June 1938, Page 12

STATE IRON WORKS

Onekaka Site' Chosen ACQUISITION OP LAND Public Works Act To Be Invoked (press ASSOCIATION TELEGRAM.) I WELLINGTON, June 2. The Hon, D. G. Sullivan (Minister for Industries and Commerce) to-day announced that the Governmgrjt, after considering evidence and numerous representations, and in particular the views of overseas experts, had decided that the most economical site for the establishment of the State iron and. steel works was at Onekaka. He added that he had requested the Hon. R, Semple, Minister for Public Works, to take the necessary steps under the Public Works Act to notify affected persons that the Government had decided to acquire certain lands at Onekaka for the purpose of carrying out the provisions of the Iron and Steel Industry Act. A notice to this effect appears in today’s Gazette. £5,000,000 WILE BE SPENT CONSTRUCTION PLAN OF THREE YEARS GOVERNMENT TO BUY VESSEL It is estimated that the capital cost involved in the establishment of the iron and steel industry at Onekaka will reach at least £5,000,000. That was the figure indicated in Parliament when the necessary legislative authority was being discussed. . The first major work will probably be the construction of a wharf for handling the big consignments of plant and equipment which will be necessary. On wharf equipment and ships alone the capital expenditure proposed is £400,000. This sum will include the purchase of a suitable shallow-draught vessel to be used in the transport of co£l from the West Coast mines to Onekaka. Other items of capital expenditure are: Plant and installation, £4,000,000: land, £50,000; establishment expenses, £215,000;. working capital, £300,000. Tentative plans for the spread of construction involve the following figures:—l93B, £750,000; 1939, £3,000,000; 1940. £1,250,000; total,' £5,000,000. Building of Town - The significant change which the establishment of the works will bring about in the economy of the northern end of the South Island can be gauged from the fact that at the moment the plans for the new. town which will spring up on the site envisage npt a town, but a smaH city something of the size of Nelson. Of course- it will be several years before anything like that size is attained by the new Onekaka, but the sudden development of a big town will have a vital effect on the economic importance of that area and of virtually the whole South Island. For instance, the new demands on the coal production of the West Coast which the, works will bring wiU have a considerable effect there. It was stated in the House of Representatives by, the Minister for Industries and Commerce, the Hon. D. G. . Sullivan, that a ship of the latest design would be constructed for coal transport, and from what the Minister said then it appears certain that the coal will come from Greymouth. The reports the Government has so far acted on deal with the cost of coal transport as from ureymouth. ■ Schedule of Production The tentative production schedule for the works, based on the two reports of Messrs H. A. Brassert and Company’s experts, provide that the mill, operating 10 shifts a week of eight hours each, will produce 93,750 tons a year. The programme covers sheetbar for a sheet-mill, and steel rails and billets for a smaller mill. The total of finished steel estimated in the second report of the experts is 83,500 tons. Pig-iron will also be produced to supply, a portion of the domestic market a tonnage of 3000 yearly, being aimed at in the initial stages. The second report estimates a production of steel ingots of 107,650 tons. New Zea-, land scrap metal will be used at the works and it is proposed to reconvert some of the existing railway rails into heavier types. Tentative working plans are to quarry the ore either on the Parapara block, near the Parapara. inlet, or at the old quarry on the Onekaka block, which fed the works still standing near the main road. The ore was taken from this quarry by aerial ropeway for more than a mile. Apparently the new plant will be erected at a more central point to provide for access to either of the three great blocks of crude ore, possibly a mile or so from, the present works and nearer the sea. The wharf will also be shifted further north, and the works, wharf, and township will stand within less than a mile of each other. Tentative sites have been settled for all purposes. Control by Commissioners The sole right to mine the millions of tons of crude ore at Onekaka have already been vested in the three commissioners, who, under the direction of the Minister, will have control of this new industry. In fact the commissioners .have the sole right to mine iron ore anywhere in New Zealand. Already an acting-commissioner, Mr. G. A. Pascoe, is engaged in the preliminary negotiations for the establishment of the industry and is now away in Europe on that ' mission. Other commissioners will be appointed shortly. The commissioners .have also the , right to carry on coal mining, or other mining operations necessary for the works. ■ , It is the intention of the Government to plan the new town on modern town-planning lines, and authority has been given for the taking of land for the town itself, for homes for the workmen, shops, libraries, and public halls, and for sites for premises to be used commercially or industrially near the works. As the Minister has already announced, a nucleus (if skilled tradesmen will be secured from Great Britain, probably numbering up to 100.