Mineral-wax hopes for Otago

Press, 9 August 1976, Page 6

Mineral-wax hopes for Otago

PA Dunedin The Government has shelved plans to develop a possible mineral-wax industry in the Chatham Islands, and has decided to direct further investigation and development based on wax-bearing lignite deposits in Central Otago. Investigations into a possible export industry, based on the country’s mineral-wax deposits have been going on for manv years, a number of multi-national companies expressing interest in the prospect. However, the first indication of the national Government’s intentions has now been given in the annual report of the Mineral Resources Council.

According to the report, the Government has now agreed that a possible min-eral-wax extraction industry be located in Otago rather than the Chatham Islands be. cause of economic advantages. _

“A large company, in conjunction with the Department of Scientific and Industrial Research, proposes to undertake further investigations to prove suitable wax-bearing lignite deposits in Central Otago and to develop a commercially-viable wax-extraction process,” the report said. The Member of Parliament for Clutha, the Minister of Labour (Mr Gordon), confirmed from Wellington yesterday that the Cabinet had discussed the industry. He

said this discussion had taken place about February this year, and he thought the continued investigations were being directed in the Saint Bathans area. Mr Gordon urged caution about the news. He said investigations only were being carried out at this stage, “and I wouldn’t get too excited about it.” The M.P. for St Kilda, Mr W. A. Fraser, also confirmed that the Labour Cabinet had discussed the investigation last year.

He said the former Minister of Energy Resources, Mr W. W. Freer, had presented a paper to the Cabinet about the industry’, and it had been clear that, although the industry would have been a “great thing” for the Chattham Islands, the quantity and quality of the wax gave Otago the advantage. The wax, which is a derivative of lignite, has been found in several parts of Central Otago. It has a high melting point, and is used in the manufacture of carbon paper, in the cosmetic industry, and as an insulator and additive to heavy-duty lubricating oils. ■ Previous references to the industry have made it plain that only the extraction of the wax could be done in New Zealand. Its main advantage to the country is as an export product.

In a table attached to the re. port, a possible annual value of S7M is given for the processed wax. The table gives as 100 per cent the probabil-

ity of finding a resource large enough to develop, and estimates a 75 per cent chance of exploiting such a resource by 1981.