OIL PROJECT IN SOUTHLAND

Press, Volume LXXXIX, Issue 27074, 24 June 1953, Page 10

OIL PROJECT IN SOUTHLAND

COAL DEPOSITS AT MOUNT LINTON

ESTIMATED OUTLAY OF £18,500,000

(New Zealand Press Association) INVERCARGILL, June 23.

The coal that it is intended to use in the proposed scheme to extract oil from coal in Southland is on the property owned by Mr J. N. McGregor, at Mount Linton, Ohai. Announcing this today, Mr McGregor, a director of the Sol Development Company, Ltd., said that the search for information on the project had taken him to Britain, America, and Germany. Mr McGregor said that advisory engineers estimated an outlay of about £6,500,000 for installing the deep mine and about £12,000,000 for constructing the oil refinery. These figures included housing and other services required for labour at both the mine and the refinery. American interests were prepared to build the refinery, he said. British concerns were also interested in the scheme, and although the construction of the refineries had not been discussed with them, they also would probably be prepared to build them. “The company might ‘prefer the British interest in this respect if they are prepared to do it,” added Mr McGregor. However, certain technical problems would have to be worked out first.

Mr McGregor said he was sure that these problems would be worked out. Already three years of solid work had gone into investigating the scheme, and the promoters were satisfied that the coal was there. He thought it would be about six years from the time the contract to instal the plant was signed until production began. The company planned to produce gasolene, diesel oil, jet propulsion fuel, crude oils, and several valuable byproducts. Power from Roxburgh

The new hydro-electric, project at Roxburgh was regarded as a readymade source of power for the plant. A large amount of electric power would be needed in the process. Mr McGregor said he foresaw a great saving in overseas exchange if the scheme was approved. The saving would be virtually dollars, because most of New Zealand’s fuel oil came from dollar sources. Another important effect would be that the project would help to arrest the movement of the population from the south to the north by providing southern people with an extensive avenue of employment.

The group of New Zealanders interested in the scheme did not imagine it was starting something new, said Mr McGregor. The production of oil from coal was a recognised process overseas. It was well under way in South Africa, and was developed in Germany because of necessity during the war. Germany had four plants going then, and fought partly on synthetic fuel. The Germans took the idea to the United States, and proved it there. A plant was also being financed in Australia. It was estimated that within 10 years most of American fuel oil would be produced from coal.