HIGHER OUTPUT OF COAL

Press, Volume LXXVI, Issue 23087, 1 August 1940, Page 5

HIGHER OUTPUT OF COAL

HEAVIEST PRODUCTION SINCE 1930 OPERATIONS OF STATE AND PRIVATE MINES [From Our Parliamentary Reporter.] WELLINGTON. July 31. Coal production in New Zealand last year was greater than it has been in any previous year since 1930. states the annual report of the Minister lor Mines, the Hon. P. C. Webb, which was tabled in the House of Representatives to-day. Of the 152 coalmines operating in the Dominion 69 were on freehold property and produced 44 per cent, of the total output. The remaining 83 mines were on Crown lands. The statement gives the coal production of New Zealand since 1930 in tabular form; — Year. Tons. Year. Tons. 1930 .. 2,542,092 1935 .. 2.115,184 1931 .. 2.157,756 1936 .. 2.140,217 1932 .. 1,842,022 1937 .. 2.277,799 1933 .. 1,821,258 1938 .. 2.222,088 1934 .. 2,060,315 1939 .. 2,342,639 The quantity of coal imported into New Zealand in 1939 was 111,537 tons, compared with 109.206 tons in the previous year, an increase ol 2331 tons. Minimum Importations "The increase in output is satisfactory in view of the need for greater production ol native coal to fulfil the industrial, transport, and domestic needs of the Dominion, at the same time to conserve overseas funds by restricting importations to the bare requirements of certain consuming units which cannot operate efficiently without a proportion of Australian coal,” states the report. “A survey of the coalmines already developed shows that they are capable of expanding production sufficiently to meet the requirements of consumers. The policy of not granting new coalmining rights over Crown lands, except in isolated places, has- therefore been maintained. "During 1940 it is estimated that an output of at least 2,500,000 tons will be required to fulfil the requirements of the Dominion. No difficulty should be experienced in producing this quantity of coal. . . Co-operative Mining "Nineteen co-operative parties working portions of the State Coal Reserve near Grcymouth produced, during the year 1939. 101.297 tons, the number of men employed being 174. During the previous year 19 parties produced 108 214 tons, there being a decrease this year of 6917 tons. During the year a number of the parties were carrying out development work. "The achievements of the co-opera-tive parties over the years and their record of production demonstrates very clearly the advantages of this system of mining wherever it can be applied. My policy is to foster all genuine co-operative mining enterprises by making available technical advice, geological information, aud. where necessary, financial aid for development and plant. Up to the end of 1939 these parties have produced a grand total of 1,442,741 tons of coal, and have in the same period paid royalties to the Static amounting to £67,973. State Coalmines "The State coalmines experienced a very satisfactory year, the output being 220,730 tons, which was the highest for many years. The .new Strongman colliery commenced production in February.* 1939. and although development work is still proceeding the daily output is now approximately 350 tons. The coal is of high quality, finding a ready market for gas and steam purposes, and being exceptionally popular as a domestic fuel. The net profit for the year ended March 31, 1940, after making provision for interest and depreciation, amounted to £14,840, an increase of £1527 compared with the previous year. A sum of £5500 was transferred to the sinking fund, leaving a net surplus for the year of £9340. “The Liverpool colliery worked 211 days during the year, an increase of nine days compared with the previous year. At the James colliery work was carried out on 227 days, an increase of 19 days compared with the previous year. The Strongman colliery, which commenced production in February. 1939, worked 225 days during the year. “The gross outputs for the year were:—Liverpool colliery; 152,189 tons, an increase of 14,656 tons. James colliery: 24,755 tons, a decrease *of 17,894 tons. Strongman lolliery: 43.836 tons. Department’s Trading Venture The following details extracted from the audited accounts show the financial position of, the department’s trading venture: Payments for interest, £5280: cost of sea carriage of coal, £58,453;

cost of railway haulage, £32,706; total wages paid for coal-winning. £129,031; cost of management and office salaries (head office and mines), £3618; gross capital expenditure on the whole undertaking to March 31, 1940. £888,632; total depreciation written off to March 31, 9140 (equal to 63.96 per cent, of the gross capital expenditure), £568,386; amount written off for depreciation for the year, £9987; present book value of permanent or fixed assets £320,246; loan capital as at March 31, 1940, £167,953; net profits of the State Coal-mines Account from inception to March 31, 1940, alter charging the special depreciation of colliery development accounts and alter crediting interest on sinking fund investments, £248.261; net profit for the year ended March 31. 1940, £14,840; sinking fund as at March 31, 1940, in credit, £5502; amount taken out of the sinking fund during the year and applied in reduction of loan capital, £11.765; general reserve as at March 31, 1940, £233,419: amount at credit of profit and loss as at March 31, 1940, £9340; cash in hand and in the Public Account as at March 31. 1940. £18.775 (last year £7625). The total wages paid al all collieries during the year amounted to £152,797. These wages were distributed amongst 499 men and 34 youths, and represents an average income lor each employee of £287. For the previous year the average income was £273, the total s.um paid in wages for coal-winning being £112.072. and the number of employees being 385 men and 26 youths.