MINING INDUSTRY

Otago Daily Times, Issue 22368, 15 September 1934, Page 7

MINING INDUSTRY

PRODUCTION OF THE DOMINION NEW USE NEEDED FOR COAL According to the annual report of the Minister of Mines (Mr C. E. Macmillan) which was tabled in the House of Representatives yesterday, the total value of all minerals exported from the Dominion to the end of 1933 amounted to 1185,000,000. GOLD MINING. Proceeding, the report states that during .the year ended 1933, 592,2470 z of bullion, valued at £1,099,579, was produced, a decrease in quantity of 136 ; 8990z, but an increase in value of £79,765 as compared with the previous year. The gold content of the bullion for 1933 is estimated at 161,7550 z, valued at £1.063,543, as compared with 166,3540 z, valued at £974,734, for 1932. The amount of bullion produced from the Waihi and the Waihi Grand Junction Mines was 144,7820 z less than was won in 1932, but, owing ,to the higher price of gold, the value of the bullion was only £52,082 less than that of the previous year. With a view to extending the life of the field, close investigation is being made of areas near the Waihi Mine, over which the Waihi Gold Mining Company has acquired mining rights. For some months past an officer of the Department of Scientific and Industrial. Research has been engaged on a magnetic geophysical survey in the locality, and it is hoped that the data which will be. obtained. from that work and from the application of other geophysical methods will be of value in selecting the most suitable sites for boreholes. The report mentions that of the total production of 592,2470z.0f bullion quai'tz mining operations were i-esponsible for 534,8210 z. It is also to be noted that there were about 500 more claims in production in 1933 than in 1932. The Consolidated Fund benefited to the extent of £117,000 from the special export duty on gold. The increased interest in the industry is shown by the fact that during the year ended March 31, 1934, 3093 licenses for mining privileges were, granted compared with 1982 for the previous year. The total value of the minerals exported, including kauri gum, and of the coal used in the Dominion amounted to £3,151,807, as compared with £2,883,211 during 1932. PROSPECTING FOR OIL.

During the year one company •was actively engaged in boring for oil in the Dominion, the aggregate footage bo red in two wells being 3128 feet. A production of 169,675 gallons of oil was obtained from Moturoa Nos. 1 and 2 wells at New Plymouth. The Dominion’s total production of crude petroleum oil to December 31, 1933, is estimated at 2,067,464 gallons. COAL MINING.

From the coal mines operating in the Dominion 1,821,258 tons of coal were produced during the year 1933,’ or a decrease of 20,764 tons when compared with the previous year’s figures. Despite the continued decrease in the consumption of coal, applications for coal mining rights are still being made, hut, except for an occasional grant in a district where the circumstances warrant another mine being opened up for the purpose of supplying local requirements, or except where an extension of an exhausted or partially exhausted mine is justified, the Government adheres to its general decision not to grant further coal leases or ' coal prospecting licenses. The better use of the lower grade, coals in many plants has resulted in the displacement to a certain extent of the high-calorific-value coals. This tendency appears to be reflected in the increased yearly productions of 19,457 tons from the northern mines arid 20,404 tong from the southern district, these two increases together accounting for about two-thirds of the decreased output from the bituminous mines of the West Coast. The following figures show the totals of production during the year:— Raw coal treated .. .. 21,938 tone Carbonettes manufaei tured .. .. .. .. 12,425 tons Oil made .... .... 135,320 gallons. Pitch made .. . . .. 300 tons , For the production of motor spirit a large hydrogenation plant is being built in England. As motor spirit has to be vaporised before being used_ in internalcombustion engines some eminent British engineers consider that hydrogenation is a needless process, as coal gas, produced at gasworks, can be compressed into cylinders for use in motor vehicles. RupaDiesel engines, capable of operating with various types of powdered fuel, such as powdered coal, lignite, or wood waste, are being manufactured in Germany . The use, in stationary steam plants, of slack coal from our sub-bituminous seams is extending, but it is urgent that other uses should be found to avoid the present large waste of such slack. CO-OPERATIVE AND STATE MINES. Eighteen co-operative parties working portions of - the State coal , reserve near Greymouth produced during the year 1933 90,883 tons, the number of men employed being 163. During the previous year 18 parties ■ produced 98,925 tons, there being a decrease this year of 8042 tone. . Through the reduced consumption of coal caused by present economic conditions and the increasing use of . fuel oil and electricity the output from the State collieries, in common with-other collieries, showed a further slight reduction as compared with the previous year, resulting in a consequent reduction in the number of days worked by the men. Notwithstanding the decreased business, the department did not dismiss the excess number of men employed. Considering the very difficult trading year, the financial results must be considered as satisfactory, the profit made for the year ended March 31, 1934, after providing for interest and depreciation, being £11,985. Of this amount, the sum of £BO7B was transferred to the sinking fund,'.-leaving a net surplus for the year of £3907. The gross output of the Liverpool Colliery for the year was 93,769 tons, as compared with 99,290 tons for the previous year, a reduction of 5521 tons. From the James Colliery the gross output for the year was 33,694 tons, as compared with 29,981 tons for the previous year, an increase of 3713 tons. GEOPHYSICAL SURVEY. During the year geophysical survey parties were established by the Department of Scientific and Industrial Research, and much important ground work has been accomplished. It is hoped that in the coming year the application of modern geophysical methods will result in increased activity in gold production. SCHOOLS OF MINES.

Six scholarships are offered annually by the department to students attending the various schools of mines within the Dominion. Three candidates sat for the annual scholarship examinations* held in November, 1933, and of these candidates, one from the Dunedin School was successful in gaining a scholarship, which is tenable for four years at the University of Otago. The expenditure on schools of mines for the year ended March 31, 1934, was £326Q, as compared with £3438 for the previous year. ASSISTANCE TO UNEMPLOYED.

During the year the Unemployment Board continued to assist men to prospect for gold, the net expenditure by the board for subsidies, supervisors, purchase of equipment, etc., being £198,334, including £7293 paid to mining companies and syndicates by way of subsidy on the wages of the men employed. During the year an average of 3657 men, including subsidised ■ men employed by companies and syndicates, have received assistance.

Since the inception of the board’s prospecting schemes to March 31, 1934, approximately 10,000 oz of gold, excluding gold obtained by subsidised companies and syndicates, has been won by subsidised miners. Many claims which have required time to develop are now reaching flie production stage, and it is reasonable to expect that the amount of gold won in the coming year will show' an increase. Four advisory mining engineers and 74 supervisors are employed, so that expert assistance and guidance are always available to the men.

Very close co-operation exists between the Mines Department and the Unemployment Board, and every endeavour is made to see that the men are given, a fair chance to succeed and become independent of assistance.