COAL INDUSTRY

Evening Post, Volume CXXII, Issue 134, 3 December 1936, Page 12

COAL INDUSTRY

LACK OF BUSINESS

DIMINISHING USES:

"Evening, Post," Decerriber 3. A glance.at the share list will be suf■flcient to .show the. difficulties under; .'which the coal-mining industry, of the' Dr./ninion is being carried oh. formerly the handlers of bunker coal were the 'aristocrats 'of the' waterside, workers, with relatively good pay for arduous ■work, but oil fuel and the marine •motor engine have reduced the. bunker -coal business to negligible proportions; •and the increasing use of electricity has .rendered the coal-fed boiler. almost .obsolete. The use of the internal com--bustion or oil engine in farming and 'other industries has also had a restrictive effect on coal for heat-raising. Mr. :C. C. Davis, chairman of the Grey •Valley Coal Co., Ltd., at the annual .meeting of that company, • held in .Christchurch this week, had-to regret that that company had hot shown a greater .working account balance. This, 'he said, was due entirely to lack of :sales for large coal, and this in spite of •every effort to find new outlets. The' Grey Valley tonnage produced was 44,091. -The mine could, with ease, put ■out upwards of 100.000 if outlets could ;.'be found. 'Speaking generally of the 'outlook for the coal-mining industry, it •must be realised that coal does not play Iso important a part in a country's, development as it did some years ago. .'lndustries, shipping, and 'private consumers all make increasing use.of other /sources of power, heat, and light,, so ■that coal consumption does not in.crease in the same ratio as general development nor as the increased prosperity now being shown in other industries. This position is not peculiar to .New Zealand, for exactly the same conditions prevail in most other, countries. ■ '■ • •. : Mr. Davis mentioned that over the past four years imports of ' coal into New. Zealand were as' follows:— • '■'■'•■ "> ■~ '- Tons. : 1932 ..'. 103,531 ■ 1933 ................ 99,272 1934 100,715 ~ 1935 ■. 97,398 : "Whilst Ihis is not a very high proportion of the total coal used in New •Zealand," Mr. Davis remarked, "there ini 1? necessit X tp import any; .even this -100.000 tons a year, if produced locally, :would add materially to the prosperity ,of-.the. industry/ The present Minister:pi -Mines is using his strong influence ■to discourage Importation, but-unless some form of. restriction is, imposed it' ■'is doubtful whether his ■•■ efforts will •meet .with much, success.' , •■•>• .■.'.■■■ ■■ ' RATIONALISATION REQUIRED. • J'Jt seems very clear," : Mr. Davis .added, that the opening of new mines should, be ■ definitely controlled,, and that some forih of rationalisation should be instituted. The mines already •equipped are far more than is necessary to produce the total coal required in New Zealand for many years to come,- and it is only f ojlyjto permit' new i mines, to'start. ■ ; ; -.•;■..-.•■■■• .-■;. "A proper scheme of rationalisation! whereby the available-trade could be! allocated to efficiently-worked ■ mines: would benefit .alike the capital - interest, the. workers, and the consumers. It is possible that the closing down of some unnecessary, and other; inefficient mine's would, result"; but it. wouTd:ieflect an enormc-u's saving in. wasted over-head-costs ahd would provide-far more regular employment in the industry:' I.;am, sure adustments ciould beidevised that would prevent undue■ hardship to anypne."; , ;■* ; r. . TREATMENT OF COAI^ ' ■■'•'"• '■ Mr. Davis referred to the intensive search in other countries for new outlets for coal, but it-did not seeni. reasonable 'to him to expect much benefit from .these investigations to the industry in New^ Zealahd' in;the' immedisire; future, The- production ,of- pe.trol-fuel oil irom coal, had been carried-out in: England for;some time by the- process' of hydrogenation, but the capital cost! of the plant was, enormous and; theiproH cess' far "too miicli in its "infancy to fie adopted in New Zealand yet awhile. The low temperature carbonisation process was practicable on a reasonably small scale, under certain circumstances, but this applied more to browji coals such as Waikato and Southland, than to the .hard West Coast coal. It would not be successful on a large scale, owing to the-;restricted market for the byproducts'. '•The' establishment of a large steel-making plant in. New; Zealand" WGuld Ibf ing' immediate prosperity-tp-the WestCoastmines. One should not-take -a pessimistic outlook for the future of this industry/but it seemed clear- that-imprqvement would come gradually-'and not otherwise.