MINES STATEMENT

Greymouth Evening Star, 14 September 1934, Page 5

MINES STATEMENT

MINISTER’S ANNUAL REVIEW GOLD AND COAL OUTPUTS (Per Ministerial Favour) WELLINGTON, September 14. The Minister of Mines (Mr. Macmillan) presented the annual statement of the Department to the House of Representatives this morning. The following are the principal extracts: During the year 592,2470 z. of bullion, valued at £1,Q99,579, was produced, a decrease in quantity of 136,8990 z., but an increase in. value of £79,765 as compared with the previous year. The gold content of the bullion for 1933 is estimated at 161,7550 z., valued at £1,063,543, as compared with 166,354 oz„ valued at £974,734, for 1932. The amount of bullion produced from the Waihi and the Waihi Grand Junction Mines was 144,7820 z. less than was won in 1932. but, owing to the higher price of gold, the value of the bullion was only £52,082 less than that of the previous year. With a view to extending the life of the field, close investigation is being made of areas near the Waihi Mine, over which the Waihi Gold-Mining Co. has acquired mining rights. For some months past an officer of the Department of Scientific and Industrial Research has been engaged on a magnetic geophysical survey in the locality, and it is hoped that the data which will be obtained from that work and from the application of other geophysical methods will be. of value in selecting the most suitable sites for boreholes. The value of minerals, including kauri-gum, exported and of the coal used in the Dominion amounted to £3,151,807, as compared with £2,883,211 during 1932. The total value of such minerals exported to the end of 1933 amounted to £185,091,367. The amount of goldfields revenue received and credited to the accounts of local bodies during the year ended March 31, 1934, was £19,380 2/2, an increase of £3,556 16/8 over the previous year. During the same period the total of the three duties on exported gold amounted to £129,820 4/8, of : which £8,177 9/2 was credited to the 1 accounts of local bodies under Section ] 12 of the Gold Duty Act, 1908. The ‘ special export duty of 12/6 per ounce J amounted to £117,089 16/7, which sum 1 was paid into the Consolidated Fund. 1

That increased interest is being maintained in the mining industry is shown by the fact that during the year ended March 31, 1934, 3,093 licenses for mining privileges were granted under the provisions of the Mining Act, 1926, as compared with 1,982 for the previous year. Out of this number 554 were licenses for' claims authorising the holders to mine for gold. For the same period 92 mining privileges including 18 licenses for claims, were struck off the registers under the provisions of Section 188 of the Act.

During the year one company was actively engaged in boring for oil in the Dominion, the aggregate footage bored in two wells being 3,128 ft. A production of 169,675 gallons of oil was obtained from Moturoa Nos. 1 and 2 wells at New Plymouth. The Dominion’s total production of crude petroleum oil to December 31, 1933, is estimated at 2,067,464 gallons.

COAL-MINING. From the coal-mines operating in the Dominion. 1,821,258 tons of coal was produced during the year 1933, or a decrease of 20,764 tons when compared with the previous year’s* figures. Despite the continued decrease in the consumption of coal, application for coal-mining rights are still being made, but, except for an occasional grant in a district where the circumstances warrant another mine being opened up for the purpose of supplying local requirements, or except where an extension of an exhausted or partially exhausted mine is justified, the Government adheres to its general decision not to grant further coal leases or coal-prospecting licenses. The better use of the lower-grade coals in many plants has resulted in, the displacement to a certain extent of the high-calorific-value coals. This tendency appears to be reflected in the increased yearly productions of 19,457 tons from the Northern mines and 20,404 tons from the Southern District, these two increases together accounting for about two-thirds of the decreased output from the bituminous mines of the West Coast.

In the Northern and Southern Districts the use of coal-cutting machines is extending, and has resulted in an appreciable reduction in the percentage of slack coal, the demand for which is very restricted. The use of such machines also relieves the coalminer of a very arduous part of his work.

The quantity of coal imported again shows a small reduction for the year, the figures being 99,272 tons for 1933, as compared with 103,531 tons for 1932. On January 5, 1934, another explosion, which did a considerable amount of damage underground, fortunately without fatal results, occurred in the Dobson Mine. At the time there were only two men in the mine and they were not in the section where the explosion, occurred, nor had any other person been in that section for three hours prior to the occurrence. There were no electrical appliances of any sort in that section, nor was there any evidence of spontaneous combustion. These facts and a subsequent careful investigation by mine officials, officers of the Mines Department, and miners’ representatives led all to agree that the explosion could be due only to a natural cause—viz., the ignition of firedamp, contained in high waste ground, by frictional heat set up by heavy falls of the hard roof rock. That decision is to some extent confirmed by the result of experiments made in Great Britain, which have proved that frictional movement of certain classes of rock is capable of producing conditions which may result in the ignition of firedamp. It was decided to seal off—with thick concrete walls —the two sections of pillar workings where such conditions prevailed and to alter the method of work, particularly in connection with the extraction of pillar coal. The Dobson Coal Co. engaged the services of a leading mine-manager from the North Island and also those of a manager from the Maitland District of New South Wales to furnish independent reports on the cause of the explosion, and to recommend the best methods for future working of the mine. Both authorities agreed with the action of the mine-manager and the Department’s Inspectors in sealing off the pillared areas. From several sources requests were received that a Royal Commission be set up to inquire into

the explosion, but in view of the very definite concurrence in the opinions of all concerned as to its origin and the means that should be taken to prevent a recurrence, I decided that a Commission was unnecessary. For a period of two years .there were two Inspectors of Coal-mines for the West Coast District, but a readjustment of the staff resulted in the transfer of one Inspector to the Southern District. Although the output from the West Coast mines has continued to decrease, the actual number of mines in operation has slightly increased, and it has been found that the inspection work has become unduly arduous for one officer. A second Inspector of Coal-mines is therefore to be appointed for that district.

1, CARBONISING AND BRIQUETTING, a it In recent years various methods of i- extending the use of coal have been e adopted in older countries. Many s “low-temperature” carbonising plants t are in operation in Great Britain and 4 other countries, but in New Zealand e the scope for such plants is very limite ed. Except for the small enterprise a at Sockburn, which commenced as a s low-temperature plant and is now a r high-temperature one, none have been i constructed in the Dominion. A coale briquetting machine capable of pro- > ducing 50 tons of ovoids per eight- . hour day has been added to the aforer mentioned carbonising plant at Socki burn. Bituminouus and sub-bitumin-r. ous slack coals from the West Coast ’ mines are blended for the purpose of 1 manufacturing the ovoids which are 1 transported from the briquetting press ! by belt conveyer to storage-bins. From } there they are bagged or delivered t loose to motor-trucks and railway wag- . ons. During the year ended Decem- } ber 31, 1933, the coal carbonising and briquetting plant at Rotowaro, operated by Waikato Carbonisation, Ltd., ■ carried on continuously until October, [ when it was closed down for a period , during the summer months, chiefly on account of the discontinuance by the Railway Board of the use of carbon- ; ettes. Nevertheless there was an increased demand for carbonettes from other consumers in all parts of the North Island, while the encouraging sales of by-products, such as fuel oil and weed-killer, led the directors still further to prosecute research in the ; company’s laboratory in regard to ' the production of Diesel oils, disin- . fectant, and sheep-dip. The following :

figures show the totals of production during the year:—Raw coal treated 21,936 tons; carbonettes manufactured 12,425 tons; oil made 135,320 gallons; pitch made 300 tons. For the production of motor-spirit a large hydrogenation plant is being built in England. As motor-spirit has to be vaporised before being used in internal-combusion engines, some eminent British engineers consider that hydrogenation is a needless process, as coal-gas, produced at gas works, can be compressed into cylinders for use in motorvehicles. Rupa-Diesel engines, capable of operating with various types of powdered fuel, such as powdered coal, lignite, or wood-waste, are being manufactured in Germany. The use, in stationary steam-plants, of slack coal from our sub-bituminous seams is extending, but it is urgent that other uses should be found to avoid the present large waste of such slack. The work carried out for the Department by the Dominion Analyst has consisted chiefly of the testing of prospectors’ samples from all parts of the Dominion, analyses of coal from the State Coal-mines, and examination of mine-air from numerous collieries for noxious and inflammable gases, on behalf of the Chief Inspector of coalmines and his staff. Work having as its object the rendering of concrete impervious to sulphide and sulphated mine-waters underground has been continued, with a fair amount of success. Ready means for the detection and estimation of sulphuretted hydrogen in mine atmospheres have been further investigated. Regular and systematic work on the special properties of New Zealand coals has not been possible since the disbandment of the Coal Research Association two years ago. It is gratifying, however, to note, as a result of the briquetting investigation carried out by the association, that a commercial plant has been erected near Christchurch for the briquetting of slack coal.

ACCIDENTS. In the metalliferous mines, at which 6,212 men were ordinarily employed, seven persons were killed and thirteen persons seriously injured. At stone-quarries under the Stone Quarries Act, employing 1,711 men, there were no fatal accidents, but six serious accidents. In coal-mines, where 4,386 persons were ordinarily employed, seven persons were killed and twelve persons seriously injured. CO-OPERATIVE MINING. Eighteen co-operative parties working portions of the State Coal Reserve near Greymouth produced during the year 1933 90,883 tons, the number of men employed being 163. During the previous year 18 parties produced 98,925 tons, there being a decrease this year of 8,042 tons. STATE COAL-MINES. Through the reduced consumption of coal caused by present economic conditions and the increasing use of fuel oil and electricity the output from the State collieries, in common with other collieries, showed a further slight reduction as compared with the previous year, resulting in a consequent reduction in the number of days worked by the men. Notwithstanding the decreased business, the Department did not dismiss the excess number of men employed. Considering the very difficult trading year, the financial results must be considered as satisfactory, the profit made for the year ended March 31, 1934, after providing for interest and depreciation, being £11,985. Of this amount, the sum of £8,078 was transferred to the sinking funds, leaving a net surplus for the year of £3,907. The operations of the State coal-mines and State coal-depots for the year ended March 31, 1934, are briefly reviewed hereunder. Liverpool Colliery.—The gross output for the year was 93,769 tons, as compared with 99,290 tons for the previous year, a reduction of 5,521 tons. James Colliery.—The gross output for the year was 33,694 tons, as compared with 29,981 tons for the previous year, an increase of 3,713 tons. The disposal, inclusive of stock on hand at the beginning of the year, was as follows: Supplied to—Depots, 30,786 tons; railways, 20,924 tons; other Government Departments 2,595 tons; shipping 7,548 tons; gasworks, I 50282 tons; other consumers, 3.217 [tons: total, 115,352 tons. The total [ sales of State coal from the Liverpool Mine for the year amounted to 87,104 ; tons, value £104,191, as compared with 94,031 tons, value £114,432, for the pre-

vious year—a decrease of 6,927 tons, with a decrease in value of £10,241. The average price realised by the mine on the total sales for the year was £1 3/11.1d., a decrease of 5.0 d on the previous year’s average. The total sales of State coal from the James Mine for the year (inclusive of coal purchased—l 4 tons) amounted to 28,248 tons, value £41,328, as compared with 27,424 tons, value £36,131, for the previous year—an increase of 824 tons, with an increase in value of £5,197. The average price realised by the mine on the total sales for the year was £1 9/3.1d. per ton, an increase of 2/10.9d on the previous year’s average. The sales of coal, etc., through the medium of the depots totalled 86,176 tons, value £144,025, as against 89,482 tons, value £158,873, for the previous year.

! ACCOUNTS AND BALANCE-SHEET. The following details extracted from i the audited accounts will enable honourable members to appraise the financial position of the Department’s trading venture: —The payment for interest totalled £6,837; the cost of sea carriage of coal amounted to £33,520; the cost of railway haulage amounted to £26,734; The total wages paid for coalwinning were £64,491; the amount paid for management and office salaries (Head Office and mines) totalled £3,429; the gross capital expenditure on the whole undertaking to March 31, 1934, was £677,894; the total depreciation written off to date (equal to 75.5 per cent, of the gross capital expenditure) amounts to £511,689; the amount written off for depreciation for the year was £8,766; the present book value of permanent or fixed assets is £166,205; the loan capital stands at £114,233; the net profits of the State Coal-mines Account from inception to March 31, 1934, after allowing for the special depreciation of Colliery Development Accounts, are £169,132; the net profit for the year ended March 31, 1934, was £11,985; the Sinking Fund is in credit £8,422; the amount taken out of the Sinking Fund during the year and applied in reduction of loan capital was £8,000; the amount taken out of the General Account during the yeai- and applied in reduction of loan capital was £11,500; general reserve stands at £156,802; the amount at credit of profit and loss is £3,907; the cash in hand and in the Public Account as at March 31, 1934, was (last year £11,676) £3,301.

Thirty-five loans have been granted to miners and others, under the Department’s housing scheme, to enable the workmen, to erect and own their own houses. The loans, which range from £250 to £3OO, are repayable, together with interest, by fortnightly instalments over a term of twenty years. No new loans were granted during the year under review. The facilities for recreation, already provided at mining townships and referred to in previous statements, continue to be patronized by the miners and their families. The tennis-courts and bowling-greens are extensively used and regular tournaments have become a feature of the social life of these communities. From the State Coal-mines Account grants were made to the Runanga Borough Council for street-lighting and to the Committee of the Seddon Memorial Institute for the painting of the building.

The expenditure on the School of Mines for the year ended March 31, 1934, was £3,269, as compared with £3,438 for the previous year.

MINERS’ PENSIONS. The Pensions Act, 1926, as amended, provides for payment of pensions to miners seriously and permanently incapacitated by miners’ phthisis contracted while mining in New Zealand. The rate of pension for a miner is £l/2/6 a week, and, if married, an additional 9/- a week for his wife, and a maximum of 9/- a week for each dependent child under fifteen, subject to a limit of £3/16/6 a week for the family. The widow of a miner who dies of miners’ phthisis while eligible for a pension is entitled to receive 15/9 a week for the period of two years immediately following the husband’s death. The scheme is administered by the Pensions Department, and the following summary of operations for the year ended March 31, 1934, has been supplied by the Commissioner of Pensions:—Payments, 1933-34, £56,810. Number of new grants for year 1933-34 70, annual value of new grants, £5,438; number of pensions in force at March 31, 1934, 736; annual value of pensions in force at March 31, 1934, £56,184; average pension per annum, £76/6/9; number of pensions granted to March 31, 1934, 2,125; dissection of pensions in force at March 31, 1934: Unmarried miners, 178; married miners, 439; miners’ widows, 119. The Miners’ Sick and Accident Funds having been abolished as from April 1, 1926, and incorporated in the Coal-miners’ Relief Fund, all accident relief payments are now made from the latter fund, which is administered by the Public Trustee. The rate of interest allowed on the fund was decreased from 4 per cent, to per cent as from April 1, 1933. The interest earned for the twelve months ended March 31, 1934, was £B2B/11/10, as against £920/1/4 for the previous year, while for the same periods the receipts from the Ml per ton contributions were £4,401 5/6 and £3,804/17/8 respectively. The total expenditure for the year ended March 31, 1934, amounted to £4,605 7/10, as against £4,722/4/5 for the previous year. The amount standing to the credit of the fund at March 31, 1934, was £23,749/8/8, as against £23,124/19/2 at March 31, 1933.

STATE AID IN MINING. As in previous years, considerable use was made of the Government prospecting drills. They were hired by nineteen parties, and a total of 10,806 ft was drilled. Owing to the increased demand for such plant for testing alluvial areas, five new additional alluvial drills, three of which were paid for by the Unemployment Board, were procured early in the year. These drills, which were specially designed for New Zealand conditions by the Department’s Drill Superintendent, were constructed locally and have proved very satisfactory. Even with the additional equipment the Department cannot meet all applications. The sum of £6,185 was voted for expenditure by way of subsidies for prospecting. The balance of unexpended authorities at March 31, 1933, and those issued during the year, less cancellations, amounted to £7,202/13/8. Of this amount £3,165 10/9 was expended by way of actual subsidies during the year, leaving a balance of £4,037/2/11 authorised but not spent at March 31, 1934. In addition, the sum of £46/7/6 was exexpended by the Department in connection with the Unemployment Board’s prospecting schemes. The number of men given employment through the subsidies granted by the Mines Department was 190. In ad- 1

dition, the Department found the sum of £589/13/7 towards the cost of supervising prospectors subsidised from the Unemployment Fund. Provision totalling £3,114, including £2,839 in the Public Works Fund, was made for expenditure by way of direct grants and subsidies for roads and tracks. The balance of the unexpended authorities at March 31, 1933, and those issued during the year amounted to £1,966/12/3. Of this amount the sum of £1,227/1/10 was expended. As usual, all applications for assistance in this direction were carefully investigated, and, having regard to the necessity for curtailing expenditure as far as possible, assistance was granted in those cases where the results of the investigations warranted it. The expenditure on Schools of Mines amounted to £3,269.

During the year the Unemployment Board continued to assist men to prospect for gold, the net expenditure by the Board for subsidies, supervisors, purchase of equipment, etc., being £198,334, including £7,293 paid to mining companies and syndicates by way of subsidy on the wages of the men employed. Except in special cases, the persons who are employed by companies and syndicates and whose wages are subsidised must be men who are eligible for relief and who were previously employed under one of the schemes of the Board. Applications for subsidies made by companies and syndicates are thoroughly investigated by this Department, and special reports furnished to the Board to assist it in coming to decisions. In such cases the amount of the subsidies received is refundable before dividends can be paid. Already one company which could not have carried on but for substantial assistance from the Board has refunded the full amount of the subsidy paid. Tile assistance rendered this company has not cost the country anything, and has enabled thirty men to be retained in employment, as well as enabling the company to find work for additional men. During the year an average of 3,657 men, including subsidised men employed by companies and syndicates', have received assistance. Since the inception of the Board’s prospecting schemes to March 31, 1934, approximately 10,000 oz. of gold, excluding gold obtained by subsidised companies and syndicates, has been won by subsidised miners. Many claims which have required time to develop are now reaching the production stage, and it is reasonable to expect that the amount of gold won in the coming year will show an increase. Four advisory mining engineers and seventy-four supervisors are employed, so that expert assistance and guidance are always available to the men. Very close cooperation exists between the Mines Department and the Unemployment Board, and every endeavour is made to see that the men are given a fair chance to succeed and become independent of assistance. Already quite a number of men previously in receipt of financial aid are now able to carry on without the subsidy.