STATE GOAL MINES

New Zealand Mail, Issue 1749, 13 September 1905, Page 21

STATE GOAL MINES

THE YEAR’S OPERATIONS. GOVERNMENT DEPOTS. The Minister of Mines presented to Parliament on Friday the report on the year’s working of the State Coalmines. SEDDONVILLIS. The Managing Agent (Mr A. MacDougall) states that this mine has not been kept in active or constant operation during the year. The quality of the coal has been found to be extremely variable, and the demand so uncertain and intermittent that full time for the. miners could not be maintained. Taking the output all through during the twelve months, he estimates that there was not 20 per cent, of good sound coal suitable for household or locomotive purposes to be found in the whole production, as delivered at Wellington—the remainder being in a soft, mushy, and halfperished state, rendering its sale often difficult, and always unsatisfactory. The railways were unable to use this coal profitably for locomotives, unless the greater part of the round, lumpy coal were picked and selected for them; but even with this manipulating process Seddonville coal was not looked upon with favour as a steam-generator. He understands, however, that during the last few weeks a new development has taken place in a different part of this mine, which shows a very great improvement in the quality of tlb* coal. The first shipment of this coal (115 tons) came to Wellington in a screened state, and a finer sample of coal he has not seen landed in any part of New Zealand. If this class of coal can be regularly supplied, a ready and no doubt profitable market will be found for it all over the colony. There has been such a large preponderance (about 80 per cent.) of small coal found at the Seddonville mine that it would not have paid to screen the output, and while the screened portion would command a high price say equal to the best Westport Company’s screened, the preponderating small would command very little; consequently, the loss by screening the coal from this mine would have been greater than it is even now. The quantity of coal from this mine which passed through the Managing Agent’s office during the past financial year amounted to 35,504 tons 12 cvrt. lqr., valued at £24,871 4® 6d. POINT ELIZABETH. Active operations at this mine commenced only on June Bth, 1904, so that the period under consideration is less than ten months. The quantity of Greymouth State coal which passed through the office of the Managing Agent during that period was 84,282 tons 18 cwt. 3qr., valued at £81,847 6s, exclusive of sales made to railways and local people in the Greymouth district. ’/The quality of this coal was found, and is still found, to be excellent, and the demand for it far exceeds the supply. If the quality and quantity of the coal from these mine® keep up their present standard, and the Seddonville produot fulfils its present promise, the colony’s main supply for the future will be derived from the State coalmines, and, with the prospects now held out, there should be no hesitation in proceeding with the development of these coalfields a® rapidly as circumstances permit and the demand for the coal requires. The Government has a large tract of coal-bearing country containing an enormous quantity of good, sound coal to work upon. But the profitable working of these coalfields must depend largely upon the amount of" skill and economy with which they are developed. Goal cannot be sold cheaply if it is not won cheaply, and in the present field of competition this can only be accomplished under the highest conditions of practical knowledge and economy.

GOAL HULKS. The department has two ooal-hulks in Wellington harbour —the Coromandel, which stores about 1500 tons of coal, and the Enterprise, which carries about 140 tons. The former was purchased for the purpose of storing and supplying' State coal for the use of his Majesty’s men-of-war, when they visited Wellington; but the coal at present mined both at the Greymouth and Westport State mines is not found, to be suitable for navy use, and it will take a little further development and construction of tramways before arriving at tbe seams of coal which are known to be well adapted for use on board warships. The Coromandel will then be required to supply the purpose for which she was purchased, and, until then, she can, as at present, be usefully employed as a storage-hulk for Seddonville coal. The Enterprise is also used to relieve the congestion caused by an excess of small coal or slack produced at the Seddonville' mine, which she supplies for bunkering small coastal steamers loading at Wellington; but, while useful in this respect as a medium for finding an outlet for Seddonville coal, she is barely paying her way otherwise. But all the hulks in the harbour are used only as a means towards an end in the same way. FREIGHTS. Very fair and reasonable freight arrangements have been entered into with steamship-owners for the carriage of State coal from Greymouth and Westport to the various ports of the colony, and coal-dealers and private importers who wish to buy cargoes or part cargoes of State coal at f.o.b. prices can, through the same channels, procure the benefit of these arrangements. These arrangements already effect a reduction in freight on coal for Government departments alone of about £3OOO per annum, as compared with those ruling when this office was established. SALE OF COAL. With reference to the question of establishing depots for the sale of coal in the various centres of the colony, this matter has engaged the attention of the Managing Agent very fully of late, and he is of opinion that the State coal’ mines will never adequately fulfil the-object for which they were undertaken until such depots are opened. The initial cost would not be heavy, and it would soon be recouped from profits on sales of coal. Hitherto by far the larger portion of the coal produced from the State mines has been used by the railways and other departments of the Government; but now, with the prospect of larger developments at Greymouth and the erection of screening appliances there, and also the development of the new field recently opened out at Seddonville, where, he understands, permanent screens are also to be erected, he should say that the Government would be justified in establishing depots in the large centres without further delay, and extending gradually to other parts of the colony as more coal became available. There is practically an unlimited supply of coal, and the quality both for steam and household purposes as now coming forward is all that could be desired ; and now that he understands further improvements are being introduced, the increased production of a marketable article should keep pace with the demand. At present there is an opening in the colony for at least 400,000 tons of first-class State coal, which, if available, could be sold to advantage at a large reduction on present prices. • FINANCIAL ASPECT. The capital outlay on the Point Elizabeth colliery is £37,279 19s 9d. The capital outlay on the Seddonville colliery is £26,911 4s lOd. On the general profit and loss account —that is, the result of operations of both mines conjointly—the net profits are £11,242 10s lOd. This equals a return of 8 per cent, on the debenture capital employed, after allowing for full depreciation and all expenses. The Point Elizabeth colliery profit and loss account shows net profits £17,353 12® Id. The Seddonville profit and loss account shows a loss, after allowing for full depreciation and all expenses, of £6,093 17s lid. The net profits realised on Point Elizabeth colliery over all expenses equals 3s 9d per ton on the coal sold. The net profits realised on the entire operations of both mines over all expenses equals Is Id per ton on the coal sold. The sales realised an average return — On the coal from Point Elizabeth colliery, of 18s 6d per-ton; on the coal from Seddonyille colliery, of 13s 3d per ton. .. .. The cost of coal-winning—that is, in the bins: At Point Elizabeth colliery, £62,543 6s lid, equal to 5s a ton; at Seddonville colliery, £19,694 17s lid, equal to 5s 4d a ton.