IRON INDUSTRY

Evening Post, Volume CXXIV, Issue 111, 6 November 1937, Page 8

IRON INDUSTRY

NEW ZEALAND PROPOSAL

(To the Editor.)

Sir, —My attention has been drawn to a letter in your issue of October 13 headed "Steel Works, The Cost Factor, New Zealand Proposal," signed by "Festina Lente." This letter covers a number of very important points and, in my opinion, is soundly logical so far as it deals with the question; but there are certain other phases that, up to the _present, I have not seen mentioned in any correspondence concerning this most important national industry. Following are a few points that could be welltaken into consideration and, in order that I do not encroach upon your space unduly, I will put them as concisely as I can.

-' Inlthe first place, an iron ore deposit in any country is, to that country, a more valuable asset than an auriferous belt, even though rich in gold. Secondly, an iron deposit should be the. birthright of the nation and not for any one company to exploit as it thinks fit in order to produce profits commensurate with a big capital, such as is proposed in connection with Onekaka, viz., £3,000,000. A capital of three millions would, naturally, call for a tremendous output of products. Such an output of products would, naturally, need a very big tonnage of ore, running into hundreds of thousands of tons a year. The Onekaka-Para Para iron deposit is a limonite deposit. Up to the present, this deposit has never been tested as to thickness or approximate quality, beyond a ■ superficial geological survey and, therefore, the quantity of ore is only guessed at. I know from experience that there is a very large surface area showing huge quantities of iron ore in the form 'of boulders and ironface outcrops—but, as above stated, the depth has never been tested, and, when it comes to drawing hundreds of thousands of tons of ore annually from a field, it is more than outcrops and boulders that is needed. The Onekaka-Para Para iron deposit, I am convinced,, is sufficiently extensive to meet the requirement* of New Zealand probably for a number of generations, but to draw on it to satisfy the requirements of a £3,000,000 company is another matter.

Anyway, to quote "Festina Lente," where is the market for the output? Australia does not want our iron products. Africa does not want them. India does not want them. Japan the same. Europe has old-established works galore; North America the same. South America is possibly the one place, but then there are the other countries much nearer who can produce much cheaper than we can. I am not much of a believer in Gov-ernment-run industries; but I do think that this or any other future Government could well and wisely undertake the running of an iron works at Onekaka to produce certain lines of products for New Zealand requirements, without treading on the toes of the numerous foundries scattered throughout New Zealand. Pig-iron and steelbillets are needed by all foundries. These two products are the simplest, easiest, and cheapest of all lines connected with a medium-sized furnace. Then there are other lines within the scope of a comparatively small works that would suggest themselves as the industry progressed. The old Onekaka Company, I believe, spent something in the vicinity of £150,000, a good deal of which was practically wasted on a castiron pipe plant of the vertical-cast design. That undertaking was the ultimate downfall of that plucky little company of pioneers in the New Zealand iron industry. The talk of £3,000,000 to start works at Onekaka is, in the opinion of the writer, not feasible. Five hundred thousand is more like the figure that should cover all necessary for a start, with money to spare! The proposition is well worthy of this, Government's consideration for, when .all is said and done, a Government should and can run such an industry satisfactorily if it is so minded. The State coal mines are not a failure and have been of great benefit to the New Zealand consumers if they only know it; therefore there is nothing in the world to stop the Government from making a success of the Onekaka iron deposits. Personally, I hope it tackles it in spite of my,being a fairly large shareholder in. the old Onekaka Company.—l am, etc.,

NELSONIAN.