STEEL WORKS PLAN

New Zealand Herald, Volume LXXVII, Issue 23718, 26 July 1940, Page 4

STEEL WORKS PLAN

SCHEME AT ONEKAKA MANY DISAPPOINTMENTS THE QUANTITY OF ORE [nv TELEGRAPH —SPECIAL REPORTER] WELLINGTON, Thursday Although admitting that disappointment had followed disappointment over the quantity of iron ore at Onekaka, the Minister of Industries and Commerce, the Hon. D. G. Sullivan, expressed the opinion in the House of Representatives to-day that, even if some ore had to be imported, New Zealand could have an iron and steel industry. If he was allowed to influence the position in the days to come, the country would have the industry. In regard to ore supplies the Government had had disappointment after disappointment, the Minister said. At first the supplies were apparently limitless. Then they ceased to be limitless. They were now down to concrete figures which had been substantially reduced. "We are trying to make absolutely sure of our ground and that is why we are carrying on the investigation," Mr. Sullivan continued. "Certain quantities, between 10,000,000 and 12,000,000 tons of ore, have been definitely proved by surveys. There are additional quantities which, according to computations, would increase very substantially that amount. But wo are taking nothing for granted. We are testing and we want to go on with the investigation, although we are not going to build the plant in the immediate future." Mr. Sullivan said it was estimated that 20 to 25 per cent of iron sand would be used in the ore. The original estimate was that from 16 to 18 per cent of sand would be used. The figure was now up to 25 per cent and was increasing. "We are \inable at present to get on with the plant because we cannot get the plant or put itv in at the price originally estimated," the Minister explained. "We will put it in at the right timo."