THE MINES STATEMENT.

Lake County Press, Issue 979, 12 September 1901, Page 2

THE MINES STATEMENT.

[From the Evening Stars Correspondent.]

WELLINGTON. September 5. The Minister of Mines brought down Ins annual statement today. He premises by calling attention to the continued and growing importance of the mining industry. Judged from a productive standard it may be said to be generally satisfactory and to constitute no small factor in the advancement of the colony. The output of gold and silver for the year 1900 was rather less than that of the preceding year: but as against this there was a decided increase in the production | of other minerals, and, notwithstanding the : decrease in the output of precious metals for the time being, the actual value of the j mineral production for 1900 was in excess j of that of the year 1899. The total production of gold and silver during the vear ended December 31, 1900, j was 700.0730z. valued at £1.478.481. being a decrease in value of £75,550 as compared with the unusually large production of the j preceding year. The output of other mine- | rals (including coal and lignite) has been 1.106,484 tons, representing a value of i £1.224.666. or 118.672 tons. value £122,125, in excess of the previous year, j Kauri gum to the amount of 10.159 tons, j valued at £622,293. was obtained. Com- j pared with the production of the previous j year tnis shows a decrease of 957 tons, i but an increased value of £14.574. The I quantities and values of the chief mineral productions for ' the past two years ne summarised for comparison as follow: Product 1900. 1899. Gold 573,61607. 389,5580z Silver 326.4570/. 349,3380z Copper ore ... 12 tons Antimony 3 tons Manganese ore 166 tons lib tons Mixed minerals 2.126 tons 1,309 tons Chrome ore ... 28 tons Colonial coal exported, including that used bv Home steamers ... 112.707 tons 89,480 tons Coke exported... Colonial coal i consumed in New Zealand 981,283 tons 885,754 tens Kauri gum ... 10.159 tons 11.116 tons The gold was valued in 1900 at £1.459.602. against £1.513.173 in 1899: silver at £38.879 and £40.858 respectively ; coal (consumed within the colony) at £490.642 and £404.532 respectively ; kauri gum at £622.293 and £607.919 respeetivelv : and coal exported at £98,136 and £85.085 respectively. As the value of gold and silver produced in 1899 was £440.215 in excess of that "f 1898. it will be seen that the decreased production for 1900 (representing a value of £75.550) is not serious, and is accounted for by the cessation of operations at a few quartz mines, and temporary suspension - j due to development work and alterations :o | plant, etc.—at others: *lso to the condi- j tions (due principally to the recent dredging boom) which prevailed during the year in regard to alluvial mining. The latest returns from the Customs | show that the yield of precious metals is j a«'ain increasing, the export value of gold i and silver for the first six months of the j present vear being largely in excess not onlv of *the corresponding period of last vear. but actually of that of the first six months of the vear 1899 to the extent of £99.787 (gold, £94.589 ; silver, £5.0981. Half-year ended Half-year ended 30th June, 1900. 30th June. 1901. Amount. Value. Amount. Value. Oz. £ Oz. £ Gold ... 179,303 694.859 217,478 844,888 v Silver ... 144.782 15.907 226,267 24.725 It is intended in future to show the exports of our precious metals as at the end of December of each year, instead of at the close of the financial vear. as now. The quartz lodes of the South Island are thus referred to:—Quartz mining in the southern district has not shown any tendency to advance. In two instances —viz.. the O.P.Q. mines at Waipori and the Shotover mine near .Skippers Point—active developments have been conspicuous; but. generally speaking, quartz mining appeals to be at present declining in this part )I the colony. After the expenditure of large sums of money during the last few years, operations have unfortunately been sus- < pended at the Achilles mine. Builendale, j and it is also to be regretted that no active steps have been taken to develop the mine , of the Cromwell Proprietary. Limited, at deeper levels than have hitherto been worked. No doubt the attractions of the dredging industry as a field for specula- ; tion have militated against much attention being paid to reefing during the past few years : but it is only reasonable to sup- j pose that if the reefs in parts of this goldHeld were to be developed on comprehensive and scientific lines similar results to those obtained in the Reefton district might be attained. Alluvial and hydraulic mining have not been developed to any appreciable extent, of late owing to the 'attention which has been devoted to dredging. It is quite safe to say that in several instances hydraulic mining has been neglected in favor ot dredging, and this. too. at places where the former method is better suited to local conditions. . . . The southern goldfield—which includes the Otago, Southland, and Fiord districts—is almost entirely dependent for its gold output on the operations of alluvial and hydraulic mining in conjunction with dredging; and although new installations of hydraulic plant of any magnitude have been few in number during the" past year, the industry has been very steadily carried on at the* various centres, and fairly good returns obtained. This form of 'mining appears in every way likely to support a considerable percentage of the population for many years to come. As the shallow diggings of the West Coist and southern goldhelds are becoming r -<- hausted. it is found that the number of Chinese diggers is gradually decreasing. In rggard to the dredging industry the report goes on to say : —During the past vear a large number of dredges have been under construction both in the West Coast and Southern districts.' Of these several have, got to work : others are not yet completed. The numbers on the 51st March last were as follow -—Working. 145: standing, 11: undergoing removal, 4; building, 122*; total. 282. In the South the practicability of dredge mining has been amply proved, but the working of river beds and flats on the West Coast by dredges is not vet so fully developed, owing to difficulties of an engineering character. No doubt these difticulties will be got over as further experience is gained, and when this has been accomplished there appears every reason to believe that dredging on the West Coast will become a steady industry. Even with the dredges now at work, evidences have not been wanting to show that gold exists quantities in several parts of the West* Coast district, where other methods eirf working are. under existing conditions, iafg»ry out of the question. It is quite apparent that where the gold is fine there is ample room for improvement in the methods adopted on dredges for saving the gold ; and this applies specially to the beach deposits. During the last two or three years there has been a decided tendency to increase the lifting capacity of dredges, but it is possible that this may be overdone, inasmuch as the improvements in or extensions to appliances for saving gold have not kept pace with the increased capabilities for the raising of the gravels. It is to be regretted also that old and somewhat

obsolete dredges have, in some instances, been adopted for dredging on Hats, where the conditions tire very different from riverdredging. Such unsuitable machines cannot be expected to be unqualified successes, and the opinion that dredges ought to be designed to efficiently work their ground, and to save, the gold which the ground contains, cannot be too strongly emphasised. The wild excitement and rash speculation which characterised this branch of mining for one or two years ago have happily been checked. Liquidations of companies floated during the boom are steadily in progress, and when the worthless claims which were foisted on an excited and easily gullible public have been weeded out the industry is in every way likely to settle down again to a steady! legitimate. and profitable branch of mining operations. During the early part of this year the output of working river dredges was seriously curtailed in consequence of the phenomenally high state of the rivers both on the West Coast and in the Southern districts. The question of working the auriferous black-sand deposits is one to which attention is being directed, and as the successful extraction of the gold is a matter of very great importance to the mining industry, it has been decided bv the Government to offer a bonus of £2,000 for the introduction of a machine or appliance which will satisfactorily treat these sands on a large scale. Since the cyanide patients were acquired by the colony four years ago the amount of royalty therefor paid to the Government had been £4.255, or about 42£ per cent, of the initial cost incurred. By recent legislation the term to which the patent rights in Xew Zealand remained in force has been extended until such time as the revenue derived from royalties has equalled the expenditure necessary to make the cyanide process available by the miners of this colony. During the* past year £1.266 was paid as grants-in-aid to prospecting parties. There are now six schools of mines establi. iied in the colony, and their total cost 'including the subsidy to the Otago University for the Otago* School of Mines) has been '.+\"'. / !9i Messrs Donaldson Bros., of Macraes (Otago), continue to separate scheelite from the quartz, but as yet they are the only people in the colony who prepare this ore as a marketable product. Other parties m the district are reported to have given some attention to the subject, but nothing of importance has so far been done by them to place scheelite on the market. At Orepuki a mine has been opened out for the supply of shale, and extensive works were erected to treat the mineral for the extraction of oils, paraffin, wax, ammonia, etc. The manufacture of oil and other products was commenced in the early part of this year, and it is understood that the productions of the works are being readily sought for. This is a new industry so far as New Zealand is concerned, and it is to be hoped that the venture, upon which a large capital has been expended, will be eminently successful. The Minister, in concluding his report, says : " Generally speaking, it may be said that the mining industry is in a satisfactory condition,and although the output of precious metals was lower for the year 1900 than was the case in the previous year, the output of other minerals more than balanced the value, and showed an advance of £46.495 on the value of the mineral production for 1899. The causes for the decreased yield of gold and silver have already been referred to. as also has the increased returns for the first half of the year 1901. There is every indication that the mineral production of this year will show an increase over that of the year 1900. The experience of previous gamonng in mining shares has been repeated in the late dredging boom, and the reaction which has set in will. I think, tend to the consolidation of a really good and profitable branch of the gold mining industry."