HUGE NEW N.Z INDUSTRY

Press, Volume XCVI, Issue 28329, 15 July 1957, Page 12

HUGE NEW N.Z INDUSTRY

Exploitation Of Ironsands

(From Our Parliamentary Reporter WELLINGTON, July 14. Although a capital outlay of more than £35,000,000 will be involved, the establishment of a tremendous new Industrial undertaking for the exploitation of New Zealand’s ironsand deposits will be done by private enterprise. Government finance will not be given.

Four syndicates, including two with overseas backing, are said be jockeying for political support to enable them to float developcompanies to begin winning the ironsand for the production of iron and steel, the extraction of titanium and other'mod-ern-age metals, and the preparation of pigments. It is understood only one firm approach hafc been made to the Government. This would not involve State money. But other organisations or groups of individuals want State aid. More discussions will be held in Wellington this week and registration of one company to take preliminary steps before setting up an industry is expected in the very hear future.

The Government has not yet committed itself to any decisions or promises. But it is well known that it does not put ironsand in the same category as the Kaingaroa forest Which was considered a “wasting” asset that had to be protected by the State which then took part in the Tasman Pulp and Paper Company. American Backing

In present circumstances, private capital would have to cover an ironsand industry and the syndicate that has made the approach can, backed as it is by American interests, provide it. The other syndicates, apparently not as well placed financially, are trying to get State aid by extolling the benefits of an all-New Zealand financed industry which, could be of considerable economic and strategic importance to the British Commonwealth.

New Zealand, it is claimed, has titanium in large quantities. Ilmenite, a titanium ore' with some iron in it, is spread in a thick mass of sand from Karamea to Westport and on down the west qoast of the South Island. It is fdund also north of Manukau Heads, and at Piha and Muriwai. Options Taken | It has been reported that a British-New Zealand firm f has taken options on several south Island ilmenite beaches. Two months ago, another syndicate applied to prospect and mine deposits of ironsand on Maori land) near Kawhia. Ten years ago, the New Zealand Iron and Steel Commission had a British firm prepare estimates for a smelting plant with a 90,000 tons capacity. In the new industry, huge blast furnaces and rolling mills would have to be set up.