OUR RESOURCES IN IRON ORE

Dominion, Volume 9, Issue 2579, 29 September 1915, Page 15

OUR RESOURCES IN IRON ORE

A GREAT ASSET UNTOUCHED . ' . COMMITTEE OF METALS SUGGESTED ; ' ■ -■ . (By A. R. Sennett.) . . In this article. Mr. A. R. Sennett, who has devoted a- great deal- of time and energy to investigating the possibility: of manufacturing munitions of war in New Zealand, reviews the Dominion's resources in-iron-ore and the possibilities of developing them without a too'formidable outlay of capital.

Directly the question of tho manufacture of munitions in New Zealand came to be discussed, the assertion was.;made "it is impossible for us to help, .for, without either material or tools, we'ean. do nothing." If this be the case, then it is obvious that it is of as great 'importance to carefully investigate ..and seriously to discuss tho former as the latter, ; Now, - although sundry meetings and conferences have taken place in: regard to the latter, nothing . has been heard coricorniny any serious discussion of.the; former, Yet this is the one of the greater importance to New Zealand, for, out of her efforts in temporarily helping the-. Mother Country- in the hour of her need, might arise an industry of vast magnitude and an asset of incalculable value to the Dominion. It is certainly as disappointing as it is .unsatisfactory, to be told (vide Industrial Association's reports) ; that we have.no materiarwherewith to manufacture munitions, for as a . matter of absolute- and undeniable' fact, New_' Zealand possesses, at Golden Bay,- in the Nelson.'district, a rare abundance . of iron-ore, and this of. the. finest quality: In a report presented to the .Minister of Mines (1907) the Government Geologist, :.Dr.. Bell, said: ''It seems remarkable that deposits'- of - iron-ore -of such immensity, of such high average quality,' and of such'accessibility should have, remained so long unworked. The day. surely cannot be- far distant when the enormous deposits wiU .be mined, on a scale commensurate with their great proportions." Exposed, as they are, on the surface,: they possess every facility for cheap and . easy winning, whilst their close proximity to tho at oiice affords every opportunity for their exportation in the; crude or as pigiron." 1 ' ' Again, 1 Professor Marshall, commenting upon the immensity of the iron-ore deposits, showed that ; in one district the-amount of visible ore exceeded two and a half million tons per. hundred acres, or a quarter of a -million-, tons' per acre. As the result' of clearing' and tunnelling on one block over: two hundred million tons were revealedl ' All the' conditions requisite for the simple, easy, and' economical production of iron and; steel within the Do-minion'-.exist'in---moit- gratifying degree quality,, accessibility,::location in relation to .fuel and ;flux, and the high-class product producible.; As to quality, the ore. is jich— ; above:.the average for other parts of the worldit is singularly free from refractory, and deleterious impurities;. whilst Dr. Bell has »proved, -by 'analysis 'of numerous' samples, "that it- ; is of high grade, and well suited for the manufacture of iron and steel." The crude pig-iron smelted

out of the ore has;''indeed, been found to bo almost equal-to "refined pig-" : I compare New Zealand with Home (Yorkshire) pig,' each column • representing the mean of a large number of samples:— ' Homo Home (high (mc--irNiZ.-- claw), dium. Metallic iron 97.62 93.50 93.69 Mangajiese ... 0.33 > 1.28 0.71 Silicoir , ■ 0.52 1.81 - 2.23 Sulphur ...i.. 0.14 ;0;28 0.27 Phosphorus ..." 0.18 0.33 -, 1.30 From this the all-round superiority of New Zealand iron-ore is at once apparent. ■ •

Deposits Easily Accessible.. - As to accessibility, Nature has, 'indeed, been gracious towards the Dominion, having given her "the largest iron deposits in the world adjacent to the ocean." Moreover) Nature here displays her ferruginous wares on the sides of the hills, rendering mining quite mi-' necessary.' Temptingly, sho has placed all her ingredients necessary for the manufacture of iron' and steel immediately, ill juxtaposition—like'a housewife placing upon the kitchen-table the whole of the ingredients requisite for the making of. a ipuddhig. :That is the ore, rich in the/desired'metal;-,there, alongside; is the .limestone, easily workable, ready, to be dumped' into the furnace with it; there.' is the: timber,- for construction .and - for > fuel,' whilst nearby is coal. ■ -The' ;.' important question, of the suitability- of ,tho juxtaposed' limestone' for . use as a flux m the smelting of : the ore is ■'set at rest by'the report of the late Sir Frederick Abel, F.R.S., who said: "It (the ore) is decidedly superior, to the Northampton ore on account of its freedom from phosphorus, while- the limeston connected with it appears to be a very pure carbonate,or lime, the impurities amounting, at most, to less than 2 .per cent." ■ ! ' . -With such bounty and. leniency does Nature silently make her offer of industrial prosperity and Dominion wealth that she couples with it that of motive power, and, again, unique transport facilities.. For her handmaiden, gravity, is prepared, unassisted, to place both ore and limestone into the furnace without calling for any other motive power. In addition, she. offers .motive power for land haulage; whilst so favourably has she posed-the whole that ships will be able to embark her finished products, as it were, from the furnace "tap." Nature has not-been so kind in other parts of the world. The almost ideal conditions will, naturally, have the effect of reducing cost of production to the minimum, so that, con-

currently with home smelting, the crude ore could also bo exported.

What are we Waiting For? Reviewing these established facts, one is impelled to inquire: "What has Now Zealand been waiting for?" Rumour seems to reply, "For some quito disinterested fairy-like company promoter to come along, .drop plums into her mouth, and walk off with a Dominion asset of immenso and inestimable value;' possibly, moreover, to over-(paper)-capital-ise it and bring it to early demiso." I quote the. pregnant words of Dr. Bell, written in 1907: "The value of the immenso deposits of iron-ore cannot bo doubted, and the day does not seem far distant when this great store of mineral wealth will be utilised." i Eight more years have passed since this prognostication was penned, and still this vast wealth lies dormant and its concomitant huge industry inert. An Empire crisis has arisen, and with it the wail, "AVe have no material."

In 1912 a petition, "that it is desirable in the interests of this Dominion to encourage_tho production of iron and steel from New Zealand iron-ore and ironsand," was submitted to Parliament and a- Select Committee was formed to inquire into the matter. As the result of the investigation the committee reported that(a) It is desirable, in the interests of this Dominion, to encourage the production of iron and steel from the ores of the country; (b) that tho Government be' recommended to make full inquiry, into the question at as early date_ as possible, with the view of ascertaining the terms on which investors" are, prepared to provide the necessary capital to develop the industry oil ail adequate scale: and (c) further,, as an alternative, that .the Government should fully inquire into the advisableness of developing the industry as a State enterprise-.

Iron Bounties Act. In order , to . encourage capitalists to come, forward, and as an, invitation to private enterprise to shoulder, the burthen and 1 launch a new and vastly important industry in tho Dominion, an Act "for the encouragement of the manufacture in N;sw' Zealand ' of iron and steel" was passed in 1914. The essence of this Act —indeed, its whole purport—is that. it empowers -the Minister of Mines to authorise the payment out of the_ Consolidated Fund of certain bounties on the manufacture In New Zealand of (a) pig iron, (b) puddled bar iron, and (c) steel —viz., twelve shillings per ton on each of the forementioned and t'wentv-four shillings -per ton of (d) steel produced from molten metal direct from- the furnace. Such bounties are to be payable • for three years only,'after which-they will' be diminished'in the ratio of one-sixth of the bounty for each succeeding year the bounty is paid. A quid' pro quo for such bounty payment is that the Dominion shall have the right to acquire the plant within fourteen years, without any payment in respect to goodwill.. Nothing has yet resulted from this offer of a bounty. .. ■ The idea embodied, in the Act is, of course, admirable—viz., the establishment of an' industry for which-'the Dominion possesses unlimited supplies of -the,raw material; but, if I may _ be allowed. to say so, it does not evince a. sufficient degree of. courage, and faith in-the conviction, arrived at by the Select Committee, for the reason that, whilst the Dominion would, obviously, become possessed of an asset of enormous value, yet it is not made incumbent upon tho' country to provide any of the capital necessiry for the settingup of-the capital whiih such asset would be brought into leing. If, however, matters could he 'narrow; ed down in suohwise that the capital expenditure requisite is of but very modorate proportions, then, I submit, tho Government would be well advised in 'seriously considering the fitness and justness of subscribing pound for pound

towards the cost of and ercction of all necessary plant. A feature of the Act is that, as a quid pro quo for availing themsolvea of tho prolforcd bounty, the owners of tho plant set up with their own capital become bound to hand over such plant and works in less than fourteen years to the Dominion on the understanding that they are to receive no paymont whatever for goodwill of the business they, by their own energy and the hazard of their capital, shall have built up. If tho Dominion, as I suggest, should herself become' part owner holding half partnership in tho business which she had acquired by subscription of a' moiety of tho capital—sho would doubtless appreciate tho equity of- receiving payment for an established business of great value to herself. Not to include fair payment for goodwill appears to me to be equivalent to the purchase- of an asset—an established business—without paying for it. If a Government be not. prepared-to mako the transaction olio upon business lines, then, if it wishes'to accomplish' the object of attracting and utilising private capital in the development of a Dominion asset, it should omit the stipulation as to the compulsory right of purchase within a- short term, or, failing that, make the period a very long one. • 1 This would put the position of the private investor in a fairer and more tavourable light, and, with it, the probability would arise of the proportionate share of tlhe capital required to bo raised privately being forthcoming.

Small Beginning Advocated. Having regard to the enormous exigencies of tho war, and the financial dislocation throughout tho world, it is not to be expected that vast sums—: such as liare been discussed in this connection—could now be raised for the development of the Dominion iron resources —nor, indeed, for long to come. It'' therefore behoves us to .think out ivays arid means whereby the required material may be made .available, and the Dominion iron resources become utilised without the aid of the professional company promoter, without calling for outside help, and by our owe \maided efforts.- Much grandiloquent talk has been heard, from timo to time, anent a certain bay in the South Island becoming the site for tlhe building of British Navies .of the future, if not .of the arsenal of the world; of the immediate spending of a Quarter or. half _ a million of money; of nationally subsidising to the tune of £32,000 a year such liko mighty schemes. But tile years roll on and nothing is dono. The question arises naturally, would It not be wiser to, descend from the clouds and for those interested and those who really, understand the. technical requirements to meet and seriously discuss some moderate scheme, which the Dominion could herself put into operation immediately?

Ilnder ail the circumstances—and especially those of the present—it would certainly appear that the proper course would be to mako a. commencement by limiting such project to the fulfilment, or partial 'fulfilment -of our own requirements. The further question then arises at what expenditure could we make a start in the way of fulfilling our own requirements in regard to pig iron and the conversion, of such proportion of it .as. wo may require to be made into steel. Now, tho weekly, consumption-of. pig iron in privately-owned foundries appears to average about 250 tons, of which it is estimated some 50 tons are converted into'steel. This is exclusive of pig and etcel used and mado in the railway and other Government workshops. My suggestion is that we should forthwith set up a small blist-furnace,' tho smallest which, has been proved by long practice and extended use. to be satisfactory and efficient. Such a furnacc would produce about 160 tons of pig per week, and thus the disability under which certain local industries lie, and

which so often prevent the sotting up of now industries, viz., insufficiency of local demand, _ would not obtain in regard to pig iron production. I need hardly point out that tho very finest quality of iron, and subsequently steel, is mado by tho employment of charcoal as fuel. The Dominion possesses abundanco of timber wholly unsuitable for building operations, and if this could be utilised, as in former days in the Old Country before her forests became denuded, it would have tho triple advantage of producing tho best iron, enabling the simplest and cheapest form of blast furnace to be used, and of obviating the erection of costly ovens for converting coal into coke, and, moreover, of preventing the very pure Dominion ores from becoming contaminated by the sulphur which some of her coal contains in abundance. This question of tho. practicability and cost of producing suitable charcoal is worthy of most serious consideration and investigation. The cost of a furnace of the output mentioned, built, entirely in the DtSniiiion, I have ascertained, would bo about £5000. -If coke should havo to bo used it should be somewhat larger and would require certain other appurtcnanccs,. and, wMi hot-blast stoves, might be safely put at £10,000. ■ Now, if the industry could be started for an expenditure of twice that amount I contend it should be immediately forthcoming from the Government, if thought advisable, or by private enterprise. For it must be remembered that m thus putting herself into the position of supplying her own requirements in regard to steel for war material, New Zealand would at the 6amo time lay the for an industry of immense, almost .inestimable, value to the Dominion, she possesses steel-converting furnaces, and—beginning with a pure iron—she should havo no difficulty, under tho guidance of her metallurgical chemists, in producing steel of the highest quality suitable for projectiles, and all other high-class founding.and-structural purposes. In sotting up such a furnace—at quite moderate expense —the Dominion would initiate tho so-highly-desirable self-sup-ply of the raw material for her steel and engineering industries. At' present New Zeaalnd iron-founders do not know from day to day what they have to pay for their raw material. The.Dominion requires high-class-steel for her locomotive building, high-class castings for dredger and millwright' work, for .engineering and structural .work, for shipping repairs, and otlier piirppses. Government workshops and private firms alike would be only too glad to obtain a constant supply of iron and steel of unifrom high-class quality. .The output of the -iniatory furnace would soon become' overtaxed and far exceeded, and this would -give fillip and a raison d''etre to private enterprise. Vi

Some Ironsand Experiments. There is, moreover, another very important matter to be considered, in regard to raw material, a matter almost peculiar to New Zealand, in that she posses fast expanses of iron-sand lying upon the surface of her shores and; requiring neither winning nor quarrying. Experimental and developmental work has. been carried on .in'regard to this interesting material now for years more or less upon the lines of ordinary coke smelting,-but it was not until'.the last few months .that such efforts met with any: great, measure of .success.. Quite recently, I am informed, " remarkable progress has been attained in the production of white pig, and subsequently, I believe, grey pig, but the point of greatest interest is that I havo at the time of writing just received.-a telegram stating that "samples of pig and steel suitable for shell-making from iron-sand" will be submitted to me. Siich work, which !ias been so persevering]}' prosecuted at heavy expense, and for such a length of time should meet with both appropriate encouragement and adequate financial assistance at the hands

of fclio present Government, in order that the output of the much-desired material' may be, as quickly as possible, brought up to a useful amount. Tho point, however, to which I dosiro more particularly to direct public attention in regard to tho New Zealand iron sands, is, that tho developments of modern • applied sciences liave now put us in a position to deal with theso sands in a maimer which was not open to tho original experimenters, and quito conveniently to extract tho heretofore elusive metal associated with thorn.\ ' I refer to the employment of electricity. Some time ago Jlr. J. C. L. Cull, B.Sc., made experiments, on fclie small scale, - witli an ciectric funiace in Christchurch. By this means, and using New Zealand iron ore. and Taranaki iron sand—whether individually or in combination (a material point) I have not been sufficiently informed —Mr. Cull produced metal of "undoubtedly high quality." The success of this mode of treatment of'the New Zealand ironsand has been further experimentally demonstrated outside llio Dominion. The magnetic, ironsand —which call be separated at small cost and with great facility by means of electro-magnetic separators—has been elcctrolytically treated at Homo and "converted into excellent'steel of high quality." • When this is considered in conjunction with 'the facts—firstly, that for steel of tbis nature there is an enormous market, for, in addition to its value for armour-plate, munitions of w-ar, and suchlike, it has been conclusively shown that steel rails made from electric-furnacc steel aro much more durable than ordinary rails; and, secondly, that electric-smelting is making rapid strides in northern Europe, where there are now some dozen electric furnaces aggregating upwards of 62,000 horse-poww, and that these_ furnaces are operating 011 minerals which are of much lower grade than the ironsancls of Now Zealand—then it requires no great prescience to foresee what the future holds in storo for the Dominion in this direction. It is worthy, of note that experience in America and elsewhcro has shown that the' most 'durable of. steel rails are tlioso which contain Now, it- is a happy augury that—as in the caso of the titaniferous ironsand of Cornwall, in which it was first discovered —this valuable alloying metal is contained in , large percentage. in t-lio-ironsands of New Zealand.

A Subsidy Urged. So important, indeed, are tie matters of dealing, without further, delay, with our ironsand expanses that, whilst reiterating my view as to the advisability, of the Government forthwith setting lip a small blast furnace, I cannot refrain from adding, my firm conviction that the Government would be abundantly, and entirely justified in carrying into, effect, in regard to the electrothermic production of steel from the Dominion iron-sands, my'- suggestion that it should subsidise d! for £1 for a plant—say, of 3000 horse-power—for the establishment of this. important industry within the. Dominion. A : plant of this horse-power is suggested because it is that of the smallest electro-smelt-ing furnace in Europe. A large plant, would be preferable, for the. reason (that efficiency and economy of production increased with size: I have reason to believe that, this .degree of encouraging enterprise upon the part of Parliament —and hence of the people of the Dominion—would suffice, in duo.turn and at an early date, to. stimulate private enterprise to the extent that , the; remaining moiety of the capital necessary for establishment of the industry, would be forthcoming. By , this means not only would .two .sure.sources, be, tapped for the supply; of steel, of tbe.'highest grade suitable for munitions, for locomotive building, and. other Governmental work, but also for the high-class work and general work-which our private engineering works are capable of can'ying out. :

Thus, from modest beginnings the export of iron-ore and of pig-iron, as well as the. manufacture of high-class steel, could Be made to grow to an industry of vast importance to the Dominion, warranting the employment .of large coke-fired blast furnaces, and of electric furnaces capable of a large output. Obviously it would enable us to export a raw primary product—which so strongly appeals to New Zealanders—concurrently with the gradual building up. of a local industry of great magnitude. '

A Tfme for Aotlon. I submit that there never was such a time—and never will again bo such a time—as now—at once—whan the recommendation of the Iron and Steel Industry Committee (1912)— namely, "That the Government be recommended to make full inquiry into the question of the production of iron and steel from the ores of the country at as early date as possible . . . further, that the Govwanc'J should fully inquire into tlio advisableness of developing the industry as a State enterprise"—should be acted upon. The development of our industrial resources, especially at the present, juncture, is a patriotic duty of the highest Empire importance—one which should be entered upon energetically and without delay; for we must remember that the triumph of the industrial arts will advance the. cause'' of civilisation more rapidly, and contribute far more to the permanent prosperity and might of our Empire than the most splendid victories of successful war. Where, then, we can see our way to prosecute both concurrently, the opportunity should not be neglected.

In concluding I would wish to' touch upon one further point and to'add a proposal which in my opinion is ono of> great importance; which, indeed, should have important bearing upon the industrial prosperity of the Dominion. The colossal war now raging lias had the effect of . bringing home .to the mind of the public the paramount value of the wonderful and admirable thoroughness of GeWanic industrial organisation. But, to iiievminds of those who think still a little. more deeply it, has also brought' home the paramo\uit value and importance of the appreciation of science in the workshop, in. the factory, in -the mills-rr no matter what inay.be the product turned, out—anA in the mines and chemi-'-cal works.. Unhappily with us—our Empire over—the application of this' important fact and principle has been all too. feeble and insufficient.

Sclentifio< Methods Needed. Now, in no manufacturing matter is the great value of the application of correct scientific'principles to industrial operations of greater value and importance than in regard to the production .of -metals and alloys: The product of the iron furnace and- of the steel converter ought..to be tho joint product of. the brain of the metallurgist-chemist combined with tlie skill of tho furnaceman. 11l a country where the works are small it is far more difficult to compass this necessary end. As.au example: In' one single German chemical works there are employed upwards -of two hundred fiilly-qualified doctors of philosophy who are always hard at work and yet , who take no part whatever in tile actual work carried-on," 1 or of the output. On the other hand, witli a small Dominion steel works, for example, the salary of a single technical expevt may be disproportionate to the output—though it is a fact-that the best steel produced by us and the best progress made with the iroiisand have been the, work of those possessing chemical technical knowledge. Bow, then,'is the best way to set about-the production.-of .iron and the extension of the manufacture of steel and other metals within the Dominion ? I submit, it will bo by tho appointment of a- Board or .Committee of Metals. At Home, despite ' tlie fact that the

Mother Country is so .well furnished with scientific societies, such as the Royal Society, Chemical Society, Society of Chemical Industry, etc., and with Research Committees of the British. Association of Science, with the . Royal School of Mines, arid with the different Commitees of the Institution of Civil Engineers, and others, yet it became realised a few years ago that tihqre was still need of a separate body to deal exclusively with metals. This arose largely through the exigencies of the .rapidly growing automobile industries, the necessity of obtaining the highest class of metals for war material and for aviation purposes, all of which called for metals of maximum strength combined with minimum weight. Hence it was decided to establish an Institute of Metals. ;.

I do not suggest tlje establishment of sucli a comprehensive institute in New' Zealand, but what I do urge is the setting-up of a Committee of Metals comprising a small but apposite personnel. Upon the, important work which such a committeo would be especially competent 'to perform—especially at the present juncture—l' nei}d not dwell, for, indeed, it is self-evident. Work of paramount value and of urgent: importance for such committeo would bo the imparting of technical tion to ironmasters and founders as to the best and most apposite, processes, or modifications or their own processes, in order to bring about the best and most economical results and the production of 'tho highest class of metal. The committee would be able to call to jts aid, for the purposes of investigation, not only the highest professorial talent and .ability, but also tho resources in apparatus of the university laboratories, ' the engineering iesting-nia-. chines' and- experimental equipment of Canterbury College, the metallurgical plant of tho Otago, the Thames, and other pchools of mines, the mechanical appliances of the technical colleges, and suchlike resources mental and material. ■ '..further, it would be greatly strengthened by its ability to co-work with'engineers and manufacturers, and thereby to'draw upon the results of practical workaday factory, experience— a_ matter of great importance. As in. the Mother Country so in our Dominion, tho professors of. arts and sciences are laudably anxious and desirous of placing their knowledge and services at the disposal of the Empire. "

I would propose, therefore, that' an invitation should be at once extended to professors of science, experts, and men of business—X mention the latter advisedly—to serve upon a Committee of Metals. It is. obvious that 1 such a committee should comprise a metallurgist, geologist, metallurgical .> chemist, and assayer, a professor of 'engineering, a professor of chemistry, director of a' technical college, and au engineer, with a technician "recorder," as the secretary of a British Association of Science Committee is styled, the latter preferably a metallurgist. Associated with the Committee of Metals should be one or more mercantile men,, in order that any. business proposition arising out of investigation mighty bo promptly dealt with.. An essential of such'a committee is that it be absolutely non-politi-cal, free from all party bias, and immune from all influenco of vested interests. Y " With such advisory assistance, with' the loyal and ready co-operation of proprietors. lessees, and others concerned, and with the goodwill and well-directed effort and energy which such an import-, ant project assuredly merit's, the necessary expansion of our present , steel-making-and the carrying of it 'into' tho higher branches such as - that .of, the' manufacture of high class steel required for the making of shell would be assured; whilst the -new and nationally - important industry of iron production might be inaugurated and placed upon a proper footing with immense benefit to the Dominion.