WAIHI GOLD MINING INDUSTRY

Dominion, Volume 29, Issue 94, 15 January 1936, Page 11

WAIHI GOLD MINING INDUSTRY

Minister’s Coining Visit

NEED FOR ENCOURAGING ENTERPRISE

Dominion Special Service. Auckland, January 14. Although the Martha Gold Mining Company (Waihi), Limited, lias had a successful year it is probable that bullion realisations will fall short of the M’ailii returns for 1934, when £540.714 was realised from 229,351 tons of ore, by about £20,000, as gold and silver prices were higher last year ami the quantity of ore handled was only :: few thousands tons less. It is apparent that there was a falling oil in the average value of the ore mined and milled. If the drop means that the management, taking advantage of the enhanced prices of the metals, mined ami milled a greater tonnage of lowgrade ore in 1935 than in 1934 the course adopted will be all to the good its it will mean an extension of the mine. However, if it means that values are steadily decreasing the position calls for investigation if the end of this important industry is not to be hastened.

In moving the adoption of the report and accounts at the annual meeting of Waihi shareholders in London last May the chairman of directors, Lieutenant-Colonel E. 11. L. Beddington, drew attention to the ever-increas-ing burden of taxation and said that unless some measure of relief were afforded the time was not far distant when the question of confining mining operations to the winning of bettergrade ore and leaving the lowcrgrade material behind would have seriously to be considered. Colonel Beddington made special reference to the export tax of 12/6 an ounce on gold. If this is jeopardising the life of mining in Waihi and if it might lead to a reduction in the number of workers employed in the industry and the abandonment of exploratory work the Government should consider the question of rescinding the tax, particularly in view of its announced intention of reducing the high rate of exchange with its benefits to gold mining, and the recent fall in the price of silver, which in the opinion of experts may drop to 17d. or 18d. an ounce before it touches bottom.

It is hoped that the Minister of Mines, Hon. P. C. -Webb, during his coming visit to the field, will examine the position very closely. That the mineral wealth of -Waihi is confined to the areas so far worked by the Martha (formerly M’ailii) and the Grand Junction gold companies,' seems improbable, but unless greater encouragement’is given to the industry there is danger that it will be closed down prematurely, that hundreds of workers will be thrown out. of employment and that the population of Waihi will be reduced by at least. 75 per cent.