N.Z. MINING

Grey River Argus, 1 August 1940, Page 9

N.Z. MINING

ANNUAL STATEMENT INCREASED OUTPUT Hon. P. C. Webb’s Review The Hon. P. C. Webb (Minister of Mines) submitted to the House to- ( day the annual Mines Statement, as follows: — Value of minerals, including kaurigum, exported and of the coal used in the Dominion, amounted to £4,132476, as compared with £3,672,075 during 1938. The total value of such minerals exported to the end of 1939 amounted to £207,680,483.

During the year, 569,297 oz. of bullion, vvlued at £1,566,977, was produced an increase in quantity of 59,538 oz., and in value of £352,923, as compared with the previous year. The gold content of the bullion is estimated at 178,955 oz., valued at £1,530,857. The goldfields revenue credited to the local bodies during the year ended March 31, 1940, was £19,272 12s bd, an of £1,046 0s 5d on the previous year. The total duties on exported gold amounted to £213,321 Ils sd, as follows: Credited to the accounts of local bodies under section 12 of the Gold Duty Act, 1908, £b,774 10s sd; special export duty, 12s 6d per oz. credited to Consolidated Fund, £116,888; duty on scrap gold, etc., £2,123; duty credited to War Expenses Account, £88,564 (being 75 per cent, of the amount by which New Zealand currency value of the London market price exceeds £9 5s 8d (N.Z. currency).

It is pleasing to record an increase of 26,905 oz. in the production of gol.i compared with the previous year; in fact, the production for the year under review has not been exceeded during the past nineteen years. Production from alluvial mines (18,512 oz.) shows a decrease of 1,417 oz., dredges (77,038 oz.) an increase of 24,316 oz., and quartz-mines (83,045 oz.) an increase of 4,606 oz. compared with the previous year. It is apparent that the scope for alluvial mining must diminish progressively. A large number of the areas now being worked in this way are located in places where the maintenance of an adequate water-supply is the major problem in the way of efficient and continuous operation. The increased yield from quartzmines is entirely due to greater production from the existing mines, no new areas of any great moment having been opened up during the year. The major proportion of the increased yield is from the dredging claims, from which over 43 per cent, of the total production of gold was secured during the year. The development of the dredging industry was accelerated and made possible by the decision of the Government a few years ago to link up the West Coast with the main hydro-electric system of the South Island, thereby ensuring for the industry an adequate supply of cheap power. Twenty-three dredges operated during the year seventeen on the ’ West Coast and six in Otago and Southland. Two relatively small dredges ceased to operate during the year, and towards the latter part of the year the large Arahura dredge went into commission.

During next year it is expected that three new substantial dredges will commence producing— the Ngahere, Snowy River, and Lowburn dredges. ’ In addition, plans are well under way for the construction of seven more dredges to operate on areas tested by boring. The total number of men employed at gold-mines was 2,794, a decrease of 204 compared with the previous year. During 1939 537 licenses for mining privileges were granted (or 31 fewer than in the previou s year), of which 90 were for gold claims. These were 171 privileges; 39 of them for claims, were struck off. PETROLIEUM OIL. From the Nos. 1,2, and 4 wells ot Moturoa Oilfields, Ltd., at Moturoa Taijana.ki, 103,631 gallons of crude petroleum oil was obtained. From the Kotuku field on the West Coast of the South Island 800 gallons was recovered.

The Dominion’s total production tn crude petroleum oil to 31st December 1939, is estimated at 2,988,081 gallons.

Since th e passing of the Petroleum Act in 1937 65 licenses to progpect for oil have been granted over an aggregate area of 11,500 square miles' in the North Auckland, Gisborne, Taranaki, Hawke’s Bay, Wellington, West Coast (Soutl; Ihland). ana Otago districts.

Two modern drilling-plants are at present in the Dominion, one capable of boring to 10,000 feet and the other to a depth of 15,000 feet. Ono hole at Totangi, near Gisborne, was drilled to a depth of 55,700 feet., but because of unfavourable conditions had to be abandoned. The plant w'as then shifted to Morere, where the drilling of a second hole was commenced. Two holes were drilled in the North Auckland district, the depths being 837 feet and 1,461 feet respectively. Plans were well advanced towards,the end of the year for drilling a hole, at. JVfidhirst, in the Taranaki district. Apart from drilling, intensive geophysical and geological investigations, topographical' surveys, and palaeontological examinations have been made, and large areas have been geologically mapped by licensees. Altogether 132 ‘persons wer e _ employed, consisting mainly of technical staff. COAL-MINING. There were 152 coal-mines operating in the Dominion in 1939. Sixtynine of these mines are situated on freehold property and produced 1,025,095 tons or 44 per cent, of the totai output. The remaining 83 mines are situated on Crown lands and produced 1.316,544 tons, or 56 per cent, of the total output of 2,342,639 tons. The annual production of coal since 1930 ha s been as follows:— Year Tons. 1930 2,542,092 1931 2,157,758 1932 ... • ••• 1,842,022 1933 1,821,258 I 1934 2,060,315

1935 2,115,884 1936 2,140,217 1937 2,277,799 1938 2,222,088 1939 2,342,639 The increase in output for 1939 5.15 per cent above the figure for 1938 The quantity of coal imported into New Zealand in 1939 was 111,537 tons, as compared with 109,206 tons lothe previous year, an increase of 2,331 tons.

The output of the several classes oi coal mined in each inspection district is summarized as follows: — In 1939 the output of bituminous and semi-bituminous coal was L 042. 609 tons, comprised of district total's as follows: —West Coast, 973.580 tons, North Island, 71,029. The brown coal output was 1,159,963 tons— Southern District, 369.876 ton?, North Island 731,676; West Coast--58,411. Lignite output was 138.067 tons, nearly all from the Southern District. The increase in output is satisfactory in view of the need for greater production of native coal to fulfil the industrial, transport, and domestic needs of the Dominion, and at the same time to conserve overseas Tunas by restricting importations to the bar e requirements of certain consuming units which cannot operate efficiently without a proportion of Australian coal.

A survey of the coal-mines already developed shows that they are capable of expanding production sufficiently to meet the requirements of consumers. The policy of not granting new coal-mining rights over Crown lands, except in isolated places', has therefore been maintained. During 1940 it is estimated that an output of at least 2,500,000 tons will be required to fulfil the requirements of the Dominion. No difficulty should be experienced in producing this qua:., tity of coal. CO-OPERATIVE MINING, STATE COAL RESERVE. Nineteen co-operative parties working portions of the State Coal Reserve near Greymouth produced, during the year 1939, 101,297 tons, the number of men employed being 174. During the previous year nineteen parties produced 108,214 tons, there being a decrease this year of 6,917 tons. During the year a number of the parties were carrying out development work. The achievements of the co-opera-tive parties over the years and their record of production demonstrates very clearly the advantages of tins system of mining wherever it cah be applied. My policy is to foster all genuine co-operative mining enterprises by making available technical advice, geological information, and, where necessary, financial aid for development and plant. Up to the end of 1939 these parties have produced a grand total of 1,442,741 tons of coal, and have in the same period paid royalties to the State amounting to £67,973. STATE COAL-MINES. The State Coal-mines experienced a very satisfactory year, the output being 220,780 tons, which was the highest for many years. The new Strongman Colliery commenced production in February, 1939. and although development work is still proceeding the daily output is now approximately 350 tons. The corn is of high quality, finding a ready market for gas '“and steam purposes, and being exceptionally popular as a domestic fuel.

The net profit for the year ended 31st March, ‘1940, after making provision for interest and depreciation, amounted to £14,840, an increase o? £1,527 compared with th e previous year. A sum of £5,500 was transferred to the sinking fund, leaving a net surplus for the year of £9,340. The Liverpool Colliery worked 211 days during the year, an 'increase of 9 days compared with the previous year. At the James Colliery work was carried out on 227 days, an increase of nineteen days compared with tne previous year. The Strongman Colliery, which commenced production in February, 1939, worked 225 days during the year. OUTPUT AND SALES. Liverpool Colliery.—The gross output for the year was 152,189 tons, as compared with 137,533 tons for the previous year, an increase of 14.656 tons. James Colliery.—The gross output for the year was 24,755 tons, a s compared with 42,649 tons for the previous year, a decrease of 17,894 tons. Strongman Colliery.—The gross output for the year was 43,836 tops. A comparative statement for the two Years is shown, hereunder In tons'—

The difference between the gross and the net output is the allowance for mine consumption and waste. >n addition to the above, 1,399 tons of coal was purchased for resale. «>• which 897 tons was purchased from co-operative parties on the West Coast.

The disposal, inclusive of stock w hand at the beginning of the year, was as follows: Supplied to —-Depots', 55,695 tons; railways, 45,055 tons; other Government Department®, 9,46 b tons; shipping, 5,822 tons; gasworks, 84,595 tons; other consumers, 9724 tons; total, 210,357 tons. The total sales of State cofC frdm the Liverpool Mine tor the year amounted to 147,138 tons, value £187,940. as comoared with 131,437 tons, value £165,243 for the previous year—an increase of 18,345 tons, with an increase in value of £22,697.

The average price realized by the mine on the total sales for the year was £1 5s 6d-,* an increase of 4.8 d °n the previous year’s average. The total' sales of State coal from the James Mine for the year amounted to 22,653 tons, value ■ £32,382,* as compared with 35,554 tons, vatuc 49,579,* for the previous, year—a decrease of 12,901 tons, with a decrease in value of £17,197.. The average price realised by tun mine on the total sales for the year was £1 8s 7.ld* per ton, an increase of 8.5 d on the previous year’s avergThe total sales of State coal from the Strongman Mine for the year

amounted to 40,566 tons, value £6u,172.*

The average price realised by the mine on the total sales for the year was £1 9s 7.9 d.

The sales of» coal, &c., through the medium of th e depots totalled 150,657 tons, value £253.913*, as against 122,335 tons, value £209,267* for the previous year. These values include c.i.f., f-o.b, and f.o.p. sales. ITEMS FROM ANNUAL ACCOUNTS AND BALANCE-SHEET. The following details extracted from the audited accounts will enable honourable members to appraise the f;nancical position of the Department’s trading venture:— The payments for interest totalled £5,280. Th e cost of sea carriage of coat amounted to £58,453.

The cost of railway haulage amounted to £32,706. The totaf wages paid for coal-win-ning were £129,031. The cost of management and office salarie s (Head Olfice and mines) totalled £3,618. The gross capital expenditure on the whole undertaking to the 31st March, 1940, was £888,632. The total depreciation written off to 31st March, 1940 (equal to 63.96 per cent, of the gross capital expenditure) amounted to £568,386. The amount written off fqr depreciation for the year was £9,987. The present-book value of permanent or fixed assets is £320,2‘-ic.

The. loan capital as at 31st Marcn 1940, stood at £167,953. The net profits of the State Coalmines Account from inception to 31st March, 1940, after charging the special depreciation of Colliery Development Accounts and after crediting interest on Sinking Fund investments, were £248,261.

The net profit for the year ended 31st March, 1940, was £14,840. The Sinking Fund as at 31st Marcn, 1940, was in credit £5,502. The amount taken out of the Sinning Fund during the year and applied in reduction of loan capital was 765.

General Reserve as at 31st March, 1940, stood at £233,419. The amount at credit of Profit and Loss as at 31st March, 1940, was £9,340. The cash in hand and in the Puofic Account as at 31st March, 1940, was (last year £7,625) £18,775. The total, wages paid at all collieries during the year amounted to the sum of £152,797. These wages were distributed amongst 499 men and 34 youths, and represent an average income per employee of £287. For the previous year the average income pciemployee was £273, the total sum paia in wages for coal-winning being 112,072 and the number of employees being 385 men and 26 youths. Wastage of Coal.—The reduction m the size of screens in use, together with the increased consumption of slack coal in factories, has resulted m a substantial improvement being effected in respect of the wastage of slack coal, which was one of the major problems confronting the industry in previou s years, New Avenues of Coal-Utilisation. The survey of our coal resources has continued during the year Detailed invqstigatipns of !the coals in the Grey and Buller districts- have been made, but the work has not yet been completed A start was also made with the sampling of Waikato and Southland coals, and some preliminary work carried out to determine suitable fuels for producer gas. The question of producing increased quantities of benzol at the main ga--works is at present under consider*, tion. ... Rescue-Stations.— A rescue-station was completed during the Y e &r at Dobson, near Greymouth, and equipped with modern apparatus. Courses of training were carried out, and a the end of the year, there were seven fully-trained brigades and one partially trained brigade in the Grey district.

LABORATORY INVESTI-

GATIONS.

The Mines Department is concerned with all the minera’ work came, out in the Dominion Laboratory dur-in-7 the year, particularly with that relating to the Iron and Steel Department, and to the commercial development of such non-metallic minerals as diatomaceous earth and bentonite. A sample of scheelite was received from Wakamarina, where its occurrence is well known, and specimens of osmiridium from Takaka and magnetic iron-ore from D’Urville Island. Antimony-ore of good quality was forwarded from Waikare Basin, near Russell, probably from the old workings there. Definite interest continues to be shown in manganese, the best samples coming from Waikare Basin, where it was formerly worked, and from Otaua, in the Lower Waikato. The possibility of the developments of deposits of non-metallic minerals is being more generally recognised. Bentonite occurances in Hawke’s Bay have been examined. Feldspar, a waste product at the Charleston Micamine, was examined for its potash content, which was found to be 12.4 per cent. The possible use of serpentine zis a. desirable addition to superphosphate has been investigated. Numerous clays have been analysed, one from Kaka, near Glenhope, of low lusibility being particularly promising as a stoneware clay. The most outstanding work on the mineral side has been the regular analyses for the Iron and Steel Department or iron-ore, following the systematic exploration of the Onekaka deposit, and of iron-sands from- :he Patea deposits, which it is proposed to use in conjunction v/ith the Onekaka ore. Iron was determined in 1142 samples and flier analyses made when required. Twenty-six samples ol limestone adjacent to Onekaka were also analysed, and one sample oi dolomite from Mount Burnett. The most important work of the coal survey during the year had relation to the proposed iron and steel industry, and indicated that to provide sufficient suitable coke from local sources, drastic conservation ct the Dominion’s low-sulphur coals would be necessary. Other analyses were carried out as required, especially with regard to the fuller use of local coals in the gas industry, and cases of complaint investigated. An analysis was made of water from the State coal mine to enable a suitable resistant metal to be selected for the mine pump. Fortysix samples of mine air from Glen Afton, Ironbridge, Kamo and Linton collieries were analysed

PERSONS EMPLOYED. The following table shows the num-

her of persons employed in each inspection district during 1939 and 1938 in the principal towns of mining:—

The drop in the number of persons employed in metalliferous mines is due principally to the diversion to other occupations of a large number of subsidised prospectors. It will be noted that the coal mining industiy found work for an additional 199 men during the year. ACCIDENTS.

In metalliferous mines, at which 2824 men wer e ordinarily employed, three persons were killed and nine persons seriously injured. At stone-quarries, under the Stone Quarries Act, employing 2083 men, there were five fatal accidents and three serious accidents.

In coal mines, where 4762 pers ms were ordinarily employed, seventeen persons were killed and twenty-per-sons seriously injured. The year was marred by the regrettable disaster at the Glen Afton colliery and in which eleven men lost their lives.

It is clear that statutory rules and regulations, however desirable and necessary up to a certain point, will not of themselves provide for safety. Tnere must be strict compliance with these rules, and also unceasing vigilance on the part of officials and workmen to ensure the avoidance of accidents from preventable causes. It is pleasing to record the greater measure of co-operation which now exists between owners and workmen in the adoption and use of the latest types of safety equipment. Protect we helmets, commonly known as “hard hats” are now fairly widely used in our coal mines, and the value of this type of safety equipment will be appreciated when it is realised that, apart from a number of minor accidents, at least seven fatalities have been avoided since September, 1936, by the use of protective helmets m New Zealand coal mines. HOUSING. Sixty-two loans, including eight during the year under review, been granted to miners and other workmen under the Department’s housing scheme to enable them to erect and own their own houses. The loans, which range from £lBO to £7OO, are repayable, together with interest by fortnightly payments over a term of twenty' years. I am pleased to slate that a sum of £6OOO to enable further loans to be made is being. provided on the current year’s estimates of the State Coal Mines .Account, together with a sum of £3OOO fcr the erection of two new staff cottages and hutments. GEOLOGICAL SURVEY. During the 1939-40 field season the Geological Survey carried out systematic mapping in the Dannevirke, Greymouth and Orepuki districts. The first area is part of the oil-bearing strip along the east coast of the North Island; the Greymouth district contains the most valuable coking and gas coals of the Dominion; and there are deposits of coal, oil shale and alluvial gold in the Orepuki sub-di vision. The sampling and estimation of the Jower-valued mineral (resources was at Rotokaua for sulphur, near Porangahaii for bentonite, and near Kaka in Nelson for feldspathic clay. The geophysical work at Onekaka was to determine the depth of ironore, near Cambridge and Atiamuri to ascertain the nature of dam-foun-dations and at Orepuki to explore the structure of the shale deposit.

Miscellaneous work included the examination of deposits of manganese ore south-east of Auckland, of chromite at D’Urville Island and the Croixelles, and of barite near Baton Saddle. The parties prospecting for gold quartz veins in the Lyell, Reefton and Big River-Waiuta districts

were also visited. A memoir on a district in west Otago was published.

SCHOOLS OF MINES.

The control of the Schools of Mines is vested in district committees. It is with pleasure that I place on record the increasing interest displayed in the work of these schools, which is of basic importance to the mining industry. Six scholarships are offered annually by the Department for compeHUon by students attending the various Schools of Mines within the Deri inion. Five candidates sat in November, 1939, and of these candidates two (one from the Dunedin School and one from the Waihi School) were successful in gaining scholarships, which are tenable for four years at the University of Otago. The expenditure on Schools of Mines for the year ended March 31, 1940, was £3631, as compared with £3460 for the previous year. MINERS’ BENEFITS. ... The provisions for tne payment of the former miners’ pensions are new contained in the Social Security Act, which became operative from April 1, 1939. The conditions of payment ere similar to those previously obtaining, and this class of benefit maj be authorised to miners who ar e seriously and permanently incapacitated by miners’ phthisis or totally incapacitated by heart or other occupational disease associated with the mining service in New Zealand. The rate of benefit to a mine? is 30s a week, with an additional 10s a week for his wife, if he is married. There is also provision for the Payment of 10s weekly for each dependent child under the age of sixteen years, subject to a maximum of £4 10s weekly, but the grant in respect of the children is reduced by all ether income of the family in excess of £2 a week. . > , . A widow of a miner who died while ii! receipt of a benefit is entitled to receive 17s 6d a week during widowhood.

This scheme, which originated in the Miners’ Phthisis Act, 1915, is administered by the Social Security Department and the following summary of the operations for the year ended March 31, 1940, has been supplied by tlat Department:— £ Payments made from November 1, 1915, to March 31, 1939 1,078,719 Payments, 1939-40 .... 92,765 £1,171,484 Number of new grants for year 1939-40 — Miners 47 Widows ' 14 — 61 Annual value of new rants £5314 Number of benefits in force March 31, 1940— Miners 838 Widows 152 990 Annual value of benefits at March 31, 1940 £90,302 Annual benefit per annum £9l 4s 3d Number of benefits granted to March 31, 1940 2934 Dissection of benefits in force at March 31, 1940— Unmarried miners. 236 , Married miners 602 Miners’ widows 152 990 COAL MINERS’ RELIEF FUND The Coal 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 f he latter fund, which is administered by the Public Trustee. The rate of interest allowed on the fund was decreased from 4 per cent, to 3J per cent, as from April 1, 1933.

The interest earned for the twe-ve months ended March 31, 1940, was £Bl4 5s 9'd, as against £893 16s Id for the previous year, while for the same periods the receipts from the id per ton contributions were £4644 3s 2d and £4635 16s 6d respectively. The total expenditure for the year ended March 31, 1940, amounted to £8125 0s sd, as against £7424 15s 8d for the previous year. The amount standing to the credit ol the fund at March 31, 1940, was £22,167 0s 3d, as against £24,933 Ils 9d at March 31, 1939.

STATE AID TO MINING.

From April 1, 1939, with the aboli-

lion of the Employment P rom9t ‘ OJ ? Fund, assistance to mining from that source ceased, and as from that dat all assistance has been granted ou of funds provided by Parliament m the Mines Department vote. The assistance given by the Department is or a varied nature, consisting of educative work in the Schools of Mines, provision of drilling equipment on reasonable terms, making better access to claims in remote areas and financial aid to prospectors and companies engaged in the search for aitd production of minerals. In addition, special prospecting work has been carred out by the Department in certain selected areas under the supervision of qualified geologists and minikg experts. For the financial year ended March 31, 1940, the total expenditure by way of direct financial assistance amounted to £43,848, of which, £19,229 was advanced by way of subsidies and loans to companies and individuals engaged in major mining or prospecting work. A sum of £15,596 was expended on subsidies to individual prospectors working small areas. The average number of men engaged in this work during the year was 290. During the year the number of men engaged on the subsidised gold-min-ing scheme, previously administered by the Department of Labour, decreased from 350 to 230, but the individual gold winnings showed a distinct improvement, indicating that lhe best practical miners only were retained. The total gold winnings by subsidised miners during the year amounted to 22660 z, valued at approximately £20,400. A few men were engaged on the production of scheelite, the output of this ore being live tons, valued at £2075. In addition to the production of gold by men in receipt of subs'dy, other men previously receiving assistance whose claims have become selfsupporting won a further 32500 z of gold. Prospecting work at the Perseverance and Golden Treasure Mines at Reef ton Was carried on a further stage, but operations have not yet advanced quite far enough to determine the value of the areas. At the Red Queen Mine, near Mokihinui, a lair quantity of payable ore has been proved, and steps are now being taken to erect a small treatment plant to enable mining to be continued. As a result of indications provided bj geologists, a number of other smaller areas were tested under competent supervisors, but the expenditure on this work was very small, and in all cases the results were of a negative character. Altogether, a sum of £7566 was expended on special survey, prospecting and development work under the direct supervision of the officers of the Department. Towards the end of the year steps were taken to prospect a scheelite mine at Wakamarina, where encouraging results are being obtained. A sum of £598 was expended on construction and maintenance of roads and tracks to mining areas, ana £3631 on Schools of Mines.

The Government’s prospecting drills were hired by eight parties during the year, and a total of 5686 feet was drilled.

1939-40 Mines Gross. Net. Liverpool ... 152,189 146,074 James 24,755 23,709 Strongman .. ... 43,836 42,247 1938■39 Mines Gross. Net. Liverpool . .. 137,533 131,807 James . .. 42,649 41,434

Inspection District North. West ; Coast South. Gold, silver, tungsten 797 1338 659 Coal 1585 2247 930 Stonequarries 1583 102 398 Totals. 1939 1938 Gold, silver, tungsten ' 2794 2998 Cnal 4762 4563 Stone-quarries 2083 2667