MINING INDUSTRY

Evening Star, Issue 22807, 16 November 1937, Page 5

MINING INDUSTRY

MINERAL PRODUCTION FOR THE YEAR STATEMENT TABLED IN HOUSE SMALL DROP IN GOLD PRODUCTION The Mines Statement was tabled in the House of Representatives , this afternoon by the Minister (the Hon. ,P. C. Webb). The value of minerals, including kauri gum, exported and of the coal used in the Dominion amounted to £3,691,419, as compared with £3,694,480 during 1935,. The total value of such minerals exported to the end of 1936 amounted to £195,959,756. During the year 597,5480 z of bullion, valued at £1,272,587, was produced, a decrease in quantity of 5,6960 z, and in value £27,459, as compared with the previous year. The gold content of the bullion is estimated at 164,5750 z, valued at £l,233,178.

The estimated gold production for tiie past seven years has been as follows:—1930, 120,9310 z; 1931, 129,861; 1932, 166,354; 1933, 161,755; 1934, 160,248; 1935, 165,277; 1936, 164,575. It will.be noted that for the year under review there has been a slight drop in gold production. This is disappointing, but has been brought'about by circumstances mentioned below. Quartz mining showed an appreciable decrease, mainly on account of the fact that the outputs of the Blackwater and Big River wines dropped by 2,1920 z and 1,9530 z respectively. On the other hand, the output of the Martha mine increased from ■ 52,541bz to 53,1080 z, while from the Waihi Grand Junction mind the recovery of gold amounted to 7,6200 z, compared with 5,8970 z. for the previous year. Alluvial mining, however, was responsible for a greater drop in production than quartz mining, the figures for 1936 being 33,6180 z, as compared with 37,1340 z for the previous year, a reduction of 3,5160 z. The reduced returns of ■ the King Solomon mine _ account for almost half of this reduction, while the balance is due to the large drop in the number of subsidised miners engaged on. this class of work. No less than 1,407 subsidised ! prospectors were transferred to other avocations.

Dredging activities produced 37,2690 z an increase of 5,2070 z over the previous year. This, increase is recorded in spite of the fact that the principal producer in this class of mining, the Rimu di-edge, lost 834 hours’ digging time due to an unfortunate accident. If this dredge had worked its usual time the output of gold would probably hare been at least 2,f1000z more. 21 DREDGES OPERATING. • Twenty-one dredges were operated in New Zealand in 1936, as compared with only seven in 1933. Three more large dredges would have operated in the year under review had it not been for extraordinary delays due to factors outside the control of the companies concerned. The launching of two large dredges on the Olutha River was held up for a very long period due to_ the extraordinary Tow state’-of the river, While a third large dredge at Barrytown,'. on tha .West Coast,'.was held up for lack of electric power. These'tbree dredges, however, are now in, active production, and the dredge of the Clutha Gold Dredging Company Ltd. is yielding very satsifactory returns, a recent week’s work producing 4330 z. A further four large dredges are now under construction on the West Coast, and a fifth is to be erected near Cromwell, in Otago. Almost immediately after .the Government took office the Minister of Public Works ’ and myself visited the West Coast and conferred on the power question .with the interested parties. We were most impressed with the possibilities of the gold dredging industry, and we were! also quite satisfied that if ample electrio power were not made available to the district at the earliest possible date both mining and other industrial developments would be seriously retarded. The difficulties which were feared actually occurred at- the beginning of the present year. As mentioned above, the Barrytown dredge was unable to get into full production for a considerable period due to the shortage of power, and also the development of the new State coal mine at the Ninemile, near Greymouth, has been retarded for the same reason.

The Government’s action in arranging for the construction of a transmission line from the Lake Coleridge Hydro-electric Power Station to the West Coast has been abundantly justified. GOLDFIELDS REVENUE. The amount of ; goldfields revenue received and credited,to the accounts of local bodies during the year ended March 31 was £22,942 15s, an increase of £1,230 4s 5d compared with the previous year. During the same period the total of the three duties on exported gold amounted to £119,324 18s, of which £7,814 2s 4d was credited to the accounts of local bodies under section 12 of the Gold Duty Act, 1908. The special export duty of 12s 6d per oz amounted te £108,793 6s 2d, which sum was' paid into tho Consolidated Fund. MINING PRIVILEGES.

Interest is still being maintained in the mining industry, although the number of licenses granted' has decreased. During the year 938 licenses for mining privileges were granted under the provisions of the Mining Act, 1926, as compared with 1,927 for the previous jear. Out of this number 169 were licenses for claims authorising the holders to mine for gold. For the Same period- 345 mining privileges, including 16 licenses for claims, were struck off the registers under the provisions of section 188 of the Act. PETROLEUM OIL. The only boring for petroleum oil carried out in 1936 consisted of five shallow holes put down by Maoriland Oilfields Ltd. at Kotuku, from which a total of 1,188 gallons of oil was collected. 157,891 Imperial gallons of crude petroleum oil was obtained by Moturoa Oilfields Ltd, at Moturoa from Nos. 1, 2, and 4 wells. The Dominion’s total production of crude petroleum oil to December 31, 1936, is estimated at 2,631,337 gallons. In the last Mines Statement (Mr Webb says) I mentioned that legislation dealing with prospecting for and winning of petroleum was under review, and I expressed a hope that before long I would bo able to bring down a new Bill, which I felt sure would be welcomed by all persons genuinely interested in the development of the industry. I am pleased now to announce that a comprehensive Bill has been prepared and will be submitted to Parliament in a y.ety ghori Jiffle,.

I am also very gratified to announce that if the Bill is passed there is little doubt but that major oil interests will make an immediate and vigorous effort to find petroleum in payable quantities. The prodi/cts of petroleum have such far-reaching significance in our modern civilisation that there is scarcely any development which would mean more to the Dominion than the successful search for oil. COAL MINING. There were 195 coal mines operating in the Dominion in 1936. Ninety-four of these mines are situated on freehold property, and produced 964,149 tons, or 45 per cent., of the total output. The remaining 101 mines are situated on Crown lands, and produced 1,176,068 tons; or 55 per cent., of the total output of 2,140,217 tons. The annual production of coal since 1930 has been as follows:—1930, 2,542,092 tons; 1931, 2,157,756; 1932, 1,842,022: 1933. 1,821,258; 1934, 2,060,315; 1935, 2,115,184; 1936, 2,140,217. The increase in output for 1936 is 1.18 per cent, above £he figure for; 1935* aad

since 1933 a recovery of: over 17 per cent, has taken place.

The quantity of coal imported into New Zealand in 1936 was 111,078 tons. This figure represents an increase of 13,680 tons over the figure for 1935, or an increase of’ 14 per cent. I regret (says the Minister) the disparity between this increase and the increase of a little over 1 per cent, recorded for the same period in the output from, New Zealand mines. It appears to me that a disproportionate share of the increase in the coal requirements of the country brought about by increased prosperity has been enjoyed by the importer as compared with the local producer.

The increased costs of producing New Zealand coal, brought about as a result of increased wages and betler conditions introduced by the present Government, have no doubt been partly responsible for the situation. J sincerely hope that gas companies, which are the principal consumers of imported coal*

will still do their utmost to help local industry.' , On the other hand, I am gratified to bo able to point to a substantial increase in the output of the West Coast bituminous and sub-bituminous mines, the figure for 1936 being 796,763 tons, compared with 752,361 tons for 1935.