N.Z. IRON INDUSTRY

Grey River Argus, 7 September 1939, Page 4

N.Z. IRON INDUSTRY

AMPLE SUPPLY For Nearly a Century WELLINGTON, September 5. An assurance that the available resources of raw materials of which the quantities are already established are sufficient to meet the needs of an iron and steel industry in New Zealand for a period of 70 years, and probably more, is contained in the report tendered to the Government in June last by Messrs 11. A. Brassert and Company, Ltd., of Londrn. The report, v Inch is included in the first anr.i.al report of the Iron and Steel Department presented in Parliament to-day, envisages production on a scale based on New Zealand’s imports of steel. Summarising their report, which is a comprehensive ' document, Messrs Brassert and Company say that it can be assured that: (a) Reserves of the necessary ironbearing materials, coking coal, limestone, and dolomite are adequate to meet the demands of ah iron and steel industry on the scale proposed for a period of 70 years, and there is every indication that further exploration will establish additional resources of iron ore, either for an extension of the life of the plant, or for production on a larger seal*. j (b) The location at Onekaka offers the most favourable position fop the economical production of steel. j (c) The market, demand, and local conditions are such as to justify the establishment of a steel industry on a sound economic basis. I (d) The manufacture of steel in New Zealand will have a marked beneficial effect on the problem of un-; employment overseas finance, and na- 1 tional defence. After emphasising that the first installations should be designed to supply those sizes and types of product which are consumed in sufficient tonnages to enable economic manufacturing, and that the demand for smaller tonnages of certain types and sizes should continue to be met by importation, the report states that the following manufacturing programme has been agreed on as a basis for the first stages of production:— Tons a year, i Coke 120,000 ! Pig iron 120,000 I Steel ingots 130,000 f Steel Products:— | Rails 11,000 Blooms and billets 2,000 Sections 21,500 Merchant bar 28,500 Sheets 26,500 Wire product 15,000 The main materials required for the manufacture of iron and steel, the report states, are coal of suitable coking quality, iron ore, limestone, and dolomite. The amount of coking coal required will be about 180,000 tons a year, and it is considered, after an ex-1 amination of suitable coal reserves, | that there is sufficient on the West I Coast for more than 170 years of a <

steel works’ demand. The quantity of metallic iron ore required annually will range from 287,500 tons to 230,000 tons, according to the quality of the ore, and the two main sources available in New Zealand are the iron ore deposits at Onekaka, and the iron sands of Taranaki., It can be assured that one-fifth of the iron required can be drawn from the iron sand deposits leaving four-fifths to be supplied as iron ore. A definite assurance can be given that the ore deposits are adequately to meet requirements. The quantity of iron sand' available amounts to many millions of tons, which will be adequate to meet requirements for 70 to 90 years, without attacking reserves in other areas. , The report expresses the opinion that there should be no difficulty in securing the required supplies of limestone and dolomite. Dealing with the location of the steelworks, the report states that the establishment of adequate reserves of iron ore, limestone, and dolomite in the neighbourhood confirm the previous recommendation that the steelworks should be erected as near the ore body as possible, and therefore on the coast at Onekaka. The principal factor in making this recommendation is the cost of assembling the raw materials required for the manufacturing process.’ The report .points out that; steps should be taken in the prelimin-1 ary layout of the steelworks to allow for developments. I Dealing with the financing of the industry, it states that the net earn-, ings before provision has been made 1 for capital charges or income tax are | estimated at £445,600 for a full year I of operation. It is estimated that about 1500 men will be given direct employment at the steelworks and that an additional 300 to 350 men wnl be provided with work in mines, with the result that some £650,500 a year will be added to the wages fund of New Zealand. Emphasis is also laid, on the value of an iron and steel Industry from the points of view of de-! fence and the conservation of overseas funds.