Interest In Publication Of Steelworks Report

Press, Volume CI, Issue 30007, 17 December 1962, Page 14

Interest In Publication Of Steelworks Report

(From Our Own Reporter)

WELLINGTON, December 16.

The publication of the full report of the New Zealand Steel Investigating Company on the suitability of various sites for an iron and steel industry is being sought by interested parties.

Since the brief announcement that the company, set up by the Government and operating on Government funds. favoured establishing the industry in the Waikato, these have been many inquiries as to the extent of the investigation. Questions in Parliament in the limited time available between the release of the intormatoon and the end of the session have produced rranisterjal replies which indicate that there has been a ■'comprehensive investigation” of rhe suitability of all possible locations, including the West Coast, Dunedm and Taranaki. and that, so far, the Government has not discussed the report. The report itself, a large document of more than 100 pages, has not been tabled in the House. Only 17 copies of it, presumably one for each member of Cabinet, ex-

ist. Before the session ended, the claims ot Westland, Taranaki and Otago had been advanced by members. They were informed by the associate Minister of Industries and Commerce (Mr Shelton) tihjA the report had sttU to be considered —but the inference was that the Waikato Mie would be favoured. The releases ateo described the Waikato coal as “highly reactive” as a reductant, giving the impression that this was a property not shared by other New Zealand coals. It is understood that by the electronic process favoured for the reduction of tataniferous ores, many New Zealand coals are suitable. Benhar coal is known to be quite satisfactory, and. presumably. West Coast coals would produce even more favourable tests, for Benhar

coal is not notable for its quality. Conflict of Experts The investigating company has found against the use ot natural gas in the smelting process. The recent claims that there are no cases in which natural gas is used for smelting, but authorities say that natural gas is used in no fewer than three overseas plants. Mr W. R. B. Martin, now senior lecturer in chemical science at the University of Melbourne, who was responsible for most of the research which resulted in renewed interest in New Zealand’s ironsamds. commented recently:"I still consider that the discovery of natural gas in significant quanta ties in New Zealand may be a most important factor in the development of a viable iron and steel industry.” Another matter full publication of the report would help to solve is the apparent contradiction between the conclusions of the investigating company and those of ex-

perts who have previously covered the field. Six years ago, the chief geologist of the Kaiser Corporation (Mr Donaldson) made an examination of New Zealand’s potential. As a result of this survey, the Kaiser-Fletcher group said it was prepared to establish an industry in New Zealand, at an estimated cost of £25 million. Mr Donaldson, on whose advice tire first American steel mill east of the Rockies was established, discarded the Waikato area as a prospect for a steel industry. His choice, it is believed, lay between Kawhia and the West Coast of the South Island. There was a sharp disagreement between the Kaiser interests and Mr Martin, it is believed, on the matter of the ultimate cost of the industry. The Kaiser Group believed it would require £25 million. Mr Martin believed it could be done for £2O million. The investigating company has mentioned £l4 million as the cost—but has not specified what would be provided for this outlay. Several stages are involved in the establishment of an iron and steel industry. The first is the production of pigiron from the ore. The iron must then be converted into mild steel for use in products such as structural steel units. Specialised types f steel are made in succeeding stages. The difficult, but rewarding, titanium needs to be separated and refined. This requires the use of significant quantities of electricity —which is more likely to be available from Manapouri, Roxburgh or elsewhere in the South Island, than in the power-hungry North. These are some of the reflections which suggest that the results of the investigation, which has already cost New Zealand £ 125,000, should be thoroughly discussed and evaluated before any decisions are made.