Iron and Steel Industry

Press, Volume XCVII, Issue 28536, 15 March 1958, Page 12

Iron and Steel Industry

The Minister of Mines (Mr Hackett) has reminded the two private enterprise groups considering the possibilities of developing an iron and steel industry based on the ironsands of the west coasts of the North and South Islands that theninvestigations should not be too protracted. Though overseas capital will be essential for such an undertaking. New Zealand capital and enterprise have been given the first opportunity since the war of developing the industry. They should not let the chance slip by delaying their investigations because of inadequate resources. Mr Hackett said it was imperative that the investigations should be speeded up; but speed is not the only consideration. It is imperative, too, that exploration should be thorough and • complete. Plans to establish, such an industry in the past have foundered because of inadequate preliminary research and investigation. Some Government fielp may be necessary, and Mr Hackett’s suggestion of Government co-pperation “to map out “ a development programme ’’ may, at the outset, be the best way of providing it. One of the groups has already been advised by the American engineers called in as consult-

ants that the establishment of an economic iron and steel industry in New Zealand is feasible. The other has been formed to test and prove the theories of New Zealand ironsands research workers. This group, the New Zealand Development Corporation, Ltd., expects to complete its investigations within the next 18 months. If they are satisfactory, the company plans to become an operational concern producing steel for New Zealand industry and construction, from a plant, probably at Dunedin, in the early 1960’5. The Government is interested in the development of the industry because New Zealand now spends about £2O million a year on steel imports. The plant is expected to produce 250,000 tons of pig iron a year to be made into steel worth about £l4 million. In addition, there may be substantial overseas earnings from titanium, vanadium, thorium, and other by-products. An economic steel industry would have a profound effect on New Zealand’s economy, which is still based on primary industry. An uneconomic industry, established after inadequate preliminary research, could have disastrous consequences.