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Clutha Dredge To Stop Work

iHeu, Zeaiana Press Association)

DUNEDIN, September 2d. Because of the lack of suitable land, the last of Otago’s gold dredge>-the Clutha dredge at Alexandra —is expected to cease operations within a year. This was announced bv the chairman of Clutha River Gold Dredging, Ltd., Mr F G. Payne, of London, in his latest report to shareholders Other main factors influencing the company's decision to cease operations are the fixed price of gold and increasing costs of labour and plant.

During the 25 years it has been working on the river flats near Alexandra the dredge has won many thou-

sands of ounces of gold worth much more than £1 million. Its production more than meets New Zealand’s gold requirements as far as the jewellery trade and dentists are concerned. The balance of the dredge's output is shipped to the Melbourne mint Mr Payne recently visited Otago and Investigated the possibility of ’ getting new areas for the dredge to work but he was not successful.

“The best policy is to make as much profit as possible out of our present rich block and then terminate operations." said Mr Payne. “It is a great pity that our enterprise, which has carried on at probably the lowest working costs of any gold

mining dredge in the world, should have to close down because of the fixed price of gold and the ever increasing costs of labour and-plant.” The company has not yet made any decision on the disposal of the dredge, but Mr Payne said that at present there appeared to be little or no demand for gold dredges and the question of selling the dredge was a difficult one.

In the year to the end of March, the company, which is London-based, earned a tax paid profit of £1824 on an issued capital of £141,667 During the year the dredge recovered 7841 ounces of gold worth £93,327—an average price of £l2 8s 8d an ounce.

Permanent link to this item

https://paperspast.natlib.govt.nz/newspapers/CHP19620926.2.89

Bibliographic details

Press, Volume CI, Issue 29937, 26 September 1962, Page 14

Word Count
328

Clutha Dredge To Stop Work Press, Volume CI, Issue 29937, 26 September 1962, Page 14

Clutha Dredge To Stop Work Press, Volume CI, Issue 29937, 26 September 1962, Page 14

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