ONEKAKA IRON ORE

New Zealand Herald, Volume LXXV, Issue 23133, 3 September 1938, Page 15

ONEKAKA IRON ORE

EXTENT OF DEPOSITS FIRST ESTIMATES EXCESSIVE PROSPECTING IN PROGRESS BEARING ON STATE SCHEME [BY TELEGRAPH —SPECIAL REPORTERI WELLINGTON. Friday The determination of the Government to make full and complete investigations before proceeding with the development of the iron deposits at Onekaka was emphasised by the Minister of Industries and Commerce, th« Hon. D. G. Sullivan, during consideration of the estimates of the Iron and Steel Industry Account in the House of Representatives to-day. Information concerning the present position at Onekaka was sought by Air. W. J. Broadfoot (Opposition—Waitomo), who said there appeared to be some doubt as to the quantities of ore available. The question of the adequacy of supplies was of tremendous importance. The Leader of the Opposition, the Hon. A. Hamilton, said it was wise to take all precautions and' make all necessary investigations before embarking deGnitely on a project involving the expenditure of at least £5,000,000. Full and Complete Tests

"After the bill was passed earlier this year," said Mr. Sullivan, "I informed the officers of m.y department that full and complete tests would have to be carried out. We had reports that in all probability the deposits amounted to 100,000,000 tons of iron ore, but we decided to make tests for ourselves before entering into commitments of any kind. "It seems that the original estimates were based almost entirely on surface indications," the Minister continued. "We set tQ work to make investigations by tunnelling and boring and since the passing of the bill eight times more prospecting work has been carried out than was done during the previous 50 years. It is too early yet to draw definite conclusions from the investigations, but it seenis pretty certain that the estimates of the original quantities of ore were altogether excessive."

Mr. Broadfoot: The quantities can be much less and still production would be quite feasible. "That is so." said Mr. Sullivan. "If there were 50.000,000 tons of ore wo would still be quite well off, and nothing would prevent us from going ahead. Even if it. was only 20,000.000 tons there would be sufficient to meet the requirements of the Dominion for the next 60 years. Minister Confident

"It will probably be next April or May before we not a reliable indication of the true position," the Minister added. "Wo arc continuing our investigations, and in the meantime we are not touching the capital provided for in the Act. The £5,000,000 will remain intact until wc are sure we can go ahead."

Mr. Hamilton: You have not raised the £»,000.000 yet?

Mr. Sullivan: No. Expenditure to date has been from the Employment Promotion Fund. "I am confident in my own mind that there is sufficient iron ore at Onekaka for the development of a successful industry," the Minister continued, "hut [ am not asking the Government merely to accept my word on the matter. I want to ascertain the facts on which a proper decision can ho base/1. I am disappointed at this delay, but a full investigation is highly necessary." No Commitments Made Mr. S. G. Holland (Opposition— Christehurch North) asked the Minister if any machinery haqj been ordered for the proposed iron and steel works and if any commitments had been entered into overseas. Mr. Sullivan: There have been no commitments of any kind.

Jn reply to a question from Mr. \Y. P. Endcan (Opposition—Pa moll) the Minister stated that Mr. G. A. Pascoe. the aeting-oftnimissioner in charge of the iron and steel industry, during his recent visit to England, had checked up with other authorities the report which the Government had received from Brasserts. who had advised on the scheme Nothing at all was being left fo chance.

The IU. Hon. G. W. Forbes (Opposition—Hurunui): You can alwavs fall back on ihe Taranaki iron sands.

Mr. Sullivan: Unfortunately no process has yet boon discovered for removing the impurities from these sands.

The vote was passed without further discussion.