IRON AND STEEL INDUSTRY

Dominion, Volume 32, Issue 262, 3 August 1939, Page 10

IRON AND STEEL INDUSTRY

Work To Begin Soon At Onekaka MINISTER REVIEWS PLANS Production Expected to Start In 1942 After the announcement in the Budget of the Government’s intention to proceed with the development of the Onekaka iron ore deposits, involving a capital outlay of £5,000,000 spread over three years and a half for the construction of plant, a survey of the steps taken to establish a State iron and steel industry in the Dominion was made in the House of Representatives yesterday by the Minister in Charge of the State Iron and Steel Department, Mr. Sullivan. Mr. Sullivan announced that arrangements had been made for construction to begin almost immediately at Onekaka, and it was expected that the works would start production some time during 1942. The initial production programme envisaged was 104,000 tons, and from 3000 to 5000 tons of pig iron, which represented approximately 60 per cent, of the present market requirements of New Zealand. "The intensive development work which the Government has carried out on the oreliclds has proved, unfortunately, that previous estimates of quantity, which were based on surface indications only, were extremely optimistic and over-stated,” said Mr. Sullivan. "However, the work done to date has assured us of sufficient raw materials to maintain our proposed annual production for a period of more than 50 years, and further development work, which will be carried on as a regular feature of the undertaking, may substantially extend that period.” The task of designing the plant and supervising the construction had been placed in the hands of 11. A. Brassert and Co., Ltd., consulting engineers, London. This firm would also be charged with the general supervision of tie ■plant for the first; two years after production commenced. Production Programme. The initial production programme envisaged was: Tons. Billets and slabs 3,060 Rails 11,000 Sections, fiats and round bars 50,000 Wire 35.000 Sheets 26,000 104,000 In addition, from 3000 to 5000 tons of pig iron would be produced according to market requirements. "Tins production programme comprises approximately 60 per cent, of the present day market requirements of New Zealand, and is confined to qualities aud sizes that are in greatest demand. The cost of the necessary plant will be within the financial authority provided for in the Iron and Steel Act of last year,” said Mr. Sullivan. The design and lay-out of the plant would be complete and modern. Tiie leading plant units would be designed to permit the production of any reasonable variation in the initial manufacturing programme. The coke oven installation would produce coke fuel from a blend of suitable New Zealand coals, and it would be complete with a by-product plant for the recovery of by-products from the coke oven gas. The blastfurnace would produce both basic and foundry pig iron. The throughput would exceed 3400 tons a week and the furnace would operate continuously. The steel-making plant will consist of Bessemer converters and openhearth furnaces. All steel during manufacture would be subject to rigid supervision and inspection. After dealing with the rolling mills, Mr. Sullivan said that the general plant would include a complete railway system, stock yards, power generation plant, gas-holders with internal gas distribution system, lime-burning kilns, foundry and repair shops. One of the most valuable by-products would be the basic slag produced in the Bessemer furnaces. More than 16,000 tons of the highest quality will be made available yearly with an additional 4000 tons of a lower quality. Collected with the coke ovens a complete by-product plant would be installed which would recover valuable materials from the coke oven gas. These would include relined tar. benzol and sulphate of ammonia. Benzol would be refined to a high degree of purity so as to produce a highly efficient motor spirit. "Every endeavour will be made to conclude suitable marketing arrangements through the existing merchant organizations which are today handling iron and steel products iu various parts of the Dominion,’ said Mr. Sullivan. Influence on Employment. "The influence of such an expansion of productive employment cannot be over-emphasized. During the constructional stage of the steel plant, a considerable amount of employment will be created, and many hundreds of men representative of various trades will participate in the work of site preparations, foundations, assembly of plant, and erection of buildings. Just so much of the actual construction and fabrication as is economically possible will be carried out in the Dominion. "When the plant comes into full operation approximately 1500 men will be directly and permanently employed. In addition the indirect employment will be considerable. In the coalmines, for instance, the supply of coal amounting to nearly 200.000 tons a year not subject to seasonal variations, will create favourable conditions for continuous production with stable employment for the miners. It means that approximately 2000 workers will be directly engaged in production either in the steel plant or in supplying the necessary raw materials of domestic origin. This number of men will iu turn provide further indirect employment to a very considerable degree.”