STATE COAL MINES.

New Zealand Herald, Volume XLIX, Issue 15138, 31 October 1912, Page 9

STATE COAL MINES.

V REVIEW OF OPERATIONS. : THE FINANCIAL POSITION, V TrXtOBATH-SrECIAL COBRUSrOKDE.VT.3 ?■ Wellington, Wednesday.' , .pechl report upon the. State coal ■■ -Vc bv the Under-Secretary for Mines " n nreiited to the House of Rcprosen-r-i'ves yesterday by the Minister for Mines (Hon. W. Eraser). It renews the 'hole period of operations since the mines ' ero acquired, and contains some recommentions for their management in future. -~.„. . , ■> ..the West-port Cardiff mine (subse•entlv renamed Seddonville) was taken \cr j, v the Government in 1900, arid the Point Elizabeth mine in 1002. The coal Reduced from the fields in which these -L mines are situated is of the- bituminous •lass, and is recognised as a superior coal for general purposes. The output stage was reached at Point Elizabeth in 1904. and coal of uniformly superior quality has been produced ever since. Owing to-the freqeenev of faults, however, and the thinning of the scam, it is believed that the Srofitoblo life of ' this mine will probably not exceed four years, unless further developments occur. As a State colliery, this mine had produced at the end-01 March, 1912, 1,513,427 tons of coal. At the Seddonville State colliery , the output stage was reached in' November, 1903, since'when the property has been worked continuously, but tho quality of the coal jias been found to be extremely variable and unsatisfactory. It is estimated that all suitable or hard coal will have been won from this mine by the end of March, 1914. As a State colliery, this mine had! produced at tho end of March, 1912, 119.550 tons of coal A new colliery mown as the Point -Elizabeth State colliery No. 2 is now being connected with ■he latter by an extension of the GoOTiment railway, about three miles in on'gth, which is Hearing completion. This Jne has. been carried through extremely •ough and broken country. The expendi:uk upon it to March 31, 1912, amounted .« £159.177. It will probably cost an*. >tber £10,000 or £12,000 to complete it. ("his colliery should reach the output stage ibout the 'end of 1912- The equipment if, the new mine is on a scale to deal with in output of 2000 tons per day. In addikiti to the expenditure on the . railway xtension, capital amounting to £90,155 i»s been expended upon'this new mine,, nd a further expenditure of £10,000 or "15,000 will be needed before, it is opened. The total capital expenditure upon the 'tate colliery businesses to March 31, 1912, ras £254,947, of which £150,000 was Obained in the form of loan debentures. All he assets have'now been reappraised, and he- whole State coal business is now asesfed at £188,542 as a going concern, the notion value being stated at £170,687. "Hitherto the amounts-written off for dereciation and allocated to sinking and ftserve funds respectively have not acsally been withdrawn from the account. ,s the amounts have been expended on. Ie development of the No._ 2 mine and a. other works fairly debitable to the ipital, account, it: is now proposed to ithdraw ; these amounts from the State )al mines account, and to invest them, robably through the agency of the Public rustee! It will therefore be, necessary » raise fresh capital to pay for the work xeady done at the new mine, and any u-thei- work that may be necessary to >mplete it. Provision for raising an adtional £100,000 has accordingly! been ade in the Coal Mines"; Amendment Bill, Ifch is now being p/.oparecL The Under-Secretary recommends that Iditiorial sums should be written off for jpreciation. bringing the account to 99,990, and this will mean the practical | (payment of nearly two-thirds of the igirui] capital. He also recommends lafc 10 per cent, instead of five per cent, lould be annually written off for depreatiois in future in respect of both the d collieries. The present rate for d&preation (five per cent, per annum) he reratmends to be maintained as regards the spots, and to be put in force as regards i«! new colliery as soon as it reach the ltput stage. Further,' he suggests that ie amount written off for depreciations, gether with the amounts set aside as nking and reserve funds, should be paid rev to the Public Trustee for investent. - .'. ...-.-. v .';"'..