COMMERCIAL Natural wax deposits found in Otago

Press, Volume CXI, Issue 32707, 9 September 1971, Page 16

COMMERCIAL Natural wax deposits found in Otago

(New Zealand Press Association)

DUNEDIN, September 8.

Natural wax deposits, which an Australian company believes will create a SlOm to sl3m a year industry, have been located at four sites ini Otago.

The sites are shales of the Nevis Valley and Tarras, in Central Otago, and the lignites of Popotunoa in South Otago and the Ida Valley in Central Otago. These four are being examined for final selection.

The partnership of stratigraphic Explorations, Ltd, of Perth, and Mr Des Young, a New Zealand-born prospector, has been granted, applied | for, or taken options on the wax-bearing areas.

“Prospecting is now completed, and sufficient is known of Otago to let decisions be made; the activity is now for technicians and financiers to design and install the necessary equipment,” Mr Young said today. "The market for wax is being researched by Mineral Trade and Export, of Sydney. The natural wax deposits i are of the montan variety and I this is used in industry for insulating materials, industrial i polishes, cosmetics, carbon I paper, and in the brewing industry. It is also used for insula-] tion in electric motors, and as an essential ingredient fori special-duty lubricating oils. Normal grades of the bulk extract are worth about $450 ia ton. The only other real supply of montan wax is in Czechoslovakia and East i Germany, where wax extraction has been an industry for more than 100 years. Open cast mining is used to extract the load ore, and plants at the mining site withdraw the bulk wax, which is

then sent to more sophist!-, cated plants for further re-i fining. ] ■ “To sustain an industry producing wax for 20 years at the rate of slom to sl3m a year would require a total quantity of about 7m tons of ore,” Mr Young said. “We have about 1000 m tons inferred reserve from the four sites from which we hope to prove 7m tons; no difficulty is forseen in this,” he said. Mr Young’s figures were verified today by the economic 'geologist, New Zealand Geological Survey, Dunedin (Mr A. R- Mutch). “There is certainly a potential for export in this, and jt could lead to the establshment of other industries. Should it prove viable it should prove helpful to the areas concerned,” Mr Mutch said. Site selection “The main previous source we were aware of was in the Chatham Islands. There are only a few of Mr Young’s kind left; he has done virtually what a professional geologist would do. “Mr Young has taken out coal leases in the areas he hopes to select in the future, and has done the orientation work that a large company would have a professional field geologist do.” One of the areas where opencast mining and extraction of the bulk wax may accur is adjacent to a rail line which is scheduled to be closed down in two years. More drilling and assaying have to be done to select the sites where extraction plants are to be erected. The university of Otago is designing a small pilot plant to permit better evaluation and establish facts in greater detail.

- Mr V. Alexander, of the - Department of Chemistry, and I Mr A. G. Fricker, technical / consultant to the Otago s School of Mines, are superi vising construction of the 1 plant. It is hoped full-scale f plants may be constructed in Dunedin rather than be imi ported from Czechoslovakia. i ,