DEVELOPMENT OF WAIHI MINE.

New Zealand Herald, Volume XLIII, Issue 13095, 7 February 1906, Page 6

DEVELOPMENT OF WAIHI MINE.

UTILISATION. OF HORA HORA

RAPIDS.

A BIG ELECTRICAL SCHEME.

The proposal of the Waihi Gold Mining Company to utiliso the power running to waste at Hora 'Hora Falls, on the Waikato, about 15 miles from Cambridge, is fraught with possibilities that must directly or indirectly deeply interest the people of Auckland City and district, for it means that if the Government grant

the- concession asked for, not only will the returns from the mine 1 ho increased, but the company's wages bill will be considerably augmented by the employment of additional labour, rendered necessary by the extension of the company's operations.

Mr. Ohas. Rhodes, the company's manager in Auckland, was seen yesterday by a representative of the Herald, with reference to tho scheme, and some interesting details regarding it were elicited in the course of a brief interview.

It may bo mentioned at the outset that in 1903 the Government resumed the right to use all water for power-generating purposes, no matter where such water was situated, on public or private property. Tho idea of the Act, as generally understood, was to nationalise the water, so as to supply power, presumably electric power, wherever required, something on the lines of the great Niagara Falls scheme. Accordingly, the Waihi Company, although the Hora Hora rapids are situated on their own freehold property, have to approach the Government in this matter, and it was to learn something of tho proposed scheme that Mr. Rhodes was seen. He was first asked how and for what purposes the company proposed to utilise the power to be derived from the rapids.

" We propose," lie replied, "to erect at the rapids electrical generators capable of yielding some 4000 horse-power. This power is required to augment the existing power at present in use at the mine at Waihi, and the batteries at Waikino."

" Then the existing power is inadequate?"

" Not at all for present requirements, but if we can get the electrical energy at Horn) Hora we shall be able to treat ore at present in the mine which, is not being taken out." . .

EMPLOYMENT OF CHEAP POWER. "Why?"

" Because," said Mr. Rhodes "it is of a lower grade, a grade of such a character —common, I ma.y say, in passing, to all New Zealand mines—that will not yield a profit at all equal to what the company has been deriving from ore of higher value, unless treated by modern methods, the chief element in which is cheap power. The application of this would yield some profit, for' it naturally pays better to remove this low-grade ore simultaneously with the breaking out of the more profitable material. The present water motive power obtained from the Ohinemuri and l Waitekauri rivers is diminishing yearly. All the steam power used' at the mine and works is raised from coal brought from the Wuikato coalfields."

"But would not the consumption of coail and, as a necessary corollary, the freight over the Government lines, be reduced if the use of electrical power at the mine were augmented as you propose?" Mr. Rhodes was asked. , . «-.

" Not at all," was the reply. "We should still continue to use coal for steam purposes. For example, our winding engines and the pumping plaints are designed for working by steam only. Our locomotives speak for themselves, of course, and' there are other purposes to which steam only can be applied as a motive power."

"No-doubt the Government has taken this matter of possible depreciation of freight "receipts into account?" sand, the reporter. ■'

RAILWAY EARNINGS SECURED.

" We have anticipated the possible objection, and in this way," replied Mr. Rhodes: " The Waihi Company having found the money for the completion of the new Paeroa-Waihi railway line naturally .does not wish to do anything that would prejudice the earning newer of that line. The Government, of course, does not wish to do anything in granting facilities to obtain electrical motive power that would injure the earning capabilities of the railway. That; is well, understood, and the company guarantees for the haulage of coal to Ohinemuri of not less than 20,000 tons per annum.

"Is that ajbout your present freightage for coal?" ,

"It is a good deal more than it has ever been for any year in the company's history. If the Government accepts the proposed scheme it will also protect the interests of the coal-mining community in the lower Waikato." A COSTLY WORK. " Assuming that the concession is granted, what does the company propose to expend on \''e undertaking?" "We should expend, roughly, some £70,000 upon the plant. This would enable us to secure sufficient horse-power, whereby"we should be able to treat, say, 100,000 tons more of low-grade ore per annum, which would mean an increase of about one-third on the present output, and the total annual output at the end of three or four ycoii'S would, I estimate closely approximate one million sterling." THE EMPLOYMENT QUESTION. "How many men, do you think, would! be required on the work of establishing the proposed electrical undertaking?"

" I do not know how many. It is a, rather difficult question to answer offhand ; but it is obvious that the construction of the water-races, the putting in of foundations for the turbines, the cutting of poles, erection of lines for a distance of 50 miles, and other works in connection with the installation, would employ a great many men, and for a part of the time I would expect the employment of probably 200 men on the job."-';*.

"Would the installation of electrical power have any effect upon the number of hands at present employed in the company's mine and works?" .

i It would have this effect, that the pre- ' sent number of hands would be increased by about 300. In order to provide the necessary development work in the mine, to break out the extra ore, including bushmen getting timber, surface hands, engineers, and battery men, I think I am well within the mark when I say that all 300 more men would be required for the 'mine and works connected therewith. These, with their families, would, of course, represent a very large accession to the population of the district. The population of Waihi is already 5000, and all draw their supplies from the Waikato, Katikati, Tauranga, Thames Valley, and from Auckland itself. There can be no doubt that the increase of the population of Waihi and the district must benefit the settlers in the surrounding country, an d would increase the market for their produce."

AN INCREASED WAGES BILL. "Is it asking too much for you to state What proportion of the. gold yield of the Waihi mine is distributed in wages,, purchase of stores, etc., on the spot?" .'"; ; "Not at all. 7 Assuming that the mine has reached the time .when its output, assisted by this cheap power, approaches one million sterling, the cost of wages, stores, and ■ maintenance. generally, together with other local expenses, will amount to from £450,000 to £500,000—money spent in the colony." * ■ . ■ " You can quite understand the hesitancy of the Government in granting rights to private individuals that it has professed shall be utilised for public purposes?" OFFER TO THE GOVERNMENT. " Certainly ; and in order to meet this to the fullest possible extent we shall get to work as soon as we get permission, and finish the installation with all speed, giving the Government the option of taking over the installation at any time, at an advance on the cost of the installation of 4 per cent, per annum for 18 months, the estimated period of erection. We think this is an exceedingly liberal offer upon the part of the company, which thus gives the Government, at any time, the opportunity of putting into force its avowed policy of nationalising the water power of the colony. If the Government wishes to acquire these works, the company is willing to pay a lump sum of £6000 per annum for the right to take 2000 horse-power, the calculation being that this payment will be sufficient to defray the interest on the capital cost at the rate of 4 per cent, per annum, and also working expenses, the balance of tho available power being clear profit to the Government." The line, Mr. Rhodes explained, would be about 50 miles in length. It will start from the company's freehold property at Hora Hora, and, the Government and local bodies consenting, will be carried along the public highway until it reaches the goldticlds, and will continue thence by license to be obtained from the Warden. The work would be begun as soon as the right to construct it is granted by the Government.