Mining.

Cromwell Argus, 9 August 1926, Page 5

Mining.

The Consolidated Kawarau Company has five men at work on their claims on the lower section of the river, under the management of Mr P. Faithful. The company has erected a large number of tents and store-rooms, and has assembled a good deal of gear. A substantial pumping plant and an electric lighting outfit arrived last week. These arc each mounted compactly on atruck, and the power is derived from Ford engines, one on each truck. These should prove very serviceable for the purpose for which they arc intended.

In connection with closing the gates, a good deal has been heard lately regarding the necessary guarantee, provided for in the license. It was common knowledge that this had not been arranged, and a statement made on Thursday, evidently from official quarters in Wellington, bears this out. The Press Association message relating thereto says: —It is understood tnat the gates of the Kawarau Falls near the exit of Lake Wakatipu, which have been in course of erection for some considerable time, are now nearing completion. Such work has been, and is still, being carried out by virtue of the license granted by the warden under the provisions of the Mining Act, 1908. In that license important safety conditions were imposed in order to protect the interests of the public, and it was also provided therein that the gates of the dam shall not be closed, nor. the dam otherwise used, unless and until the licensee shall have obtained certain substantial securities which would be available in the event of claims being made against the Crown or the Government for damages or compensation in consequence of the granting or use of the license for the dam. Up to the present time these requirements of the license have not been fulfilled, but efforts are being made to that end. In order to prevent any misunderstanding arising the Minister of Public Works states that the Government has decided not to allow the gates of the dam to be closed, or the dam to be otherwise used, unless and until it is satisfied that the conditions of the license have been adequately fulfilled, Reports from various quarters and information from those who have recently : visited the dam at Lake Wakatipu, give some prospect of the early completion of the work. Pier 6 was finished earlylast week, and the concrete work on pier 7 will be completed early this week. After that the final section of the bridge will be put in position, which should not occupy a great deal of time. Preparations were being made last week to commence the building of the wing protecting wall on the up side of pier 1. With the work so far advanced, and now beyond any danger from floods, a definite official announcement is looked , for. This is probably delayed until the necessary guarantee is provided. The river is still at a low level, and if everything is in order there should be nothing to prevent the dam being closed at an early date, even if only for a day or two.

THE COMPANY'S REPLY. In connection with the above report to the effect that some of the conditions of license in respect to the Kawarau darn have not yet been fulfilled, the secretary of the Kawarau Goldrnining Company has issued the following statement : —V'At the time application was made for the license to construct the Kawarau darn, the warden thought it necessary that certain conditions should be endorsed on the license. The Government were advised that those conditions were ultra vires. The warden, however, granted the license with the conditions endorsed, one of which provided for an approved insurance to protect the Government. The Kawarau directors contend that the condition for insurance was required by the warden because of doubts as to the power to endorse the conditions. The Government, in order to put the matter right, passed validating legislation The effect of this legislation was that the conditions were validated. After the validating legislation had been passed no claims whatever could be made against the Government in consequence of the granting of thejicense. The Kaw-

arau Company contends that after the passing of this legislation the insurance was not necessary. Notwithstanding that contention, bowever, the Kawarau Company and the Public Works Department have been for some considerable time endeavouring to arrange an approved insurance. At the present time negotiations are taking place under arrangements with the Government, with Lloyds and the Government Insurance Office, with a view to a satisfactory insurance being arranged so that the gates will be closed when they are completed. It may be assumed from the Wellington telegram that something unforeseen has cropped up in connection with this matter. There is nothing new in the position as for some months the Kawarau Company and the Government have been negotiating with respect to the matter.