GOLD DREDGING

Dominion, Volume 29, Issue 256, 25 July 1936, Page 8

GOLD DREDGING

Expenditure on West Coast MINISTER’S EXPLANATION “I do not as a rule take any notice of anonymous letters to newspapers,” said the Minister of Mines, Hon. p. C. Webb, yesterday, “but a letter signed ‘Mining Engineer’ in to-day’s •Dominion’ is so far astray about a (statement I made at Oamaru concerning mining expenditure on the West Coast that I must comment upon it and put the facts straight. “The writer of the letter repeated a misstatement which was previously published in several newspapers and had to be subsequently corrected. It would seem, however, that once an inaccuracy has been given publicity it is difficult to overtake it. He asserts that I said the Government would spend £1,000,000 on gold-mining during the coming 18 months. I made no such statement. What I did say was that approximately £1,000,000 would be spent on the construction of dredges during the next 18 months. That sum is to be spent by mining companies.” The Minister explained that early in January a deputation representing overseas mining companies waited on him and pointed out that they had prospected a considerable area of alluvial ground on the West Coast, and that the prospects were sufficiently good to justify the construction of two or three large dredges which would cost over £500,000. On making inquiry on the West Coast the companies concerned discovered there was not enough electric power available to meet their requirements, so they sent a deputation to the Government asking the State to provide the power necessary. As the question of supplying power was one for the Minister of Public Works, Hon. R. Semple, to consider, a conference was held between the Public Works Department and the Mines Department to go thoroughly into the matter and report. It was decided that the work of supplying power from Lake Coleridge could not be undertaken without substantial guarantees from the companies concerned. Such guarantees were forthcoming and the Government decided to construct a power-line from Lake Coleridge to the West Coast for the supply of 15,000 kilowatts to meet the urgent demand for power not only for mining, but for other services.

“We are anxious to assist mining in every way,” continued Mr. Webb, “but the public purse must be protected. Hence the insistence upon substantial guarantees from the mining interests concerned. We are satisfied that the power-line which is now under construction will prove to be a sound business proposition.”