MINING INDUSTRY

Otago Daily Times, Issue 22721, 6 November 1935, Page 10

MINING INDUSTRY

IMPROVED OUTLOOK IN DOMINION PRIME MINISTER'S REVIEW (Special to Daily Times) CULVERDEN, November 5. Discussing the better outlook for New Zealand's mining industries, the Prime Minister, Mr Forbes, in the course of a speech to over 200 electors in the Culverden Hall to-night, drew attention to the. substantial recovery of the coalmining industry. The increase in production last year, he said, was 13 per cent., the output having exceeded 2,000,000 tons or only 19 per cent, below ihe peak production in 1030 when the Coal yield was 2,542,092 tons. « Mr Forbes explained in detail that New Zealand's percentage of coal increase was greater than that of Britain, France, Germany, Czechoslovakia, Belgium, the United States and New South Wales. Of all the principal coal-produc-ing countries of the world, Canada's percentage increase of 15.9 alone excelled New Zealand's. " The policy of the Government," he said, "has been to utilise New Zealand coal wherever possible. The Railways Department is now a 100 per cent, user of the local product, and every effort is made by the Mines Department to induce gas companies and steam users to adopt as far as possible a similar practice. It is pleasing to record that all the coal mine owners in the country have just granted their employees a 5 per cent, increase, in wages. The State coal mines are in a very sound financial position, a considerable increase in the sale of State coal having taken place during the past six months. Finally, it is very gratifying to record that the coalmining industry generally has, during the past four years, been particularly free from industrial troubles." The Prime Minister also referred to the improvement in the prospects for gold mining. He said that the actual output of gold during the past five years had increased by 33 per cent., while 4iie value had increased by 132 per cent. Gold was one commodity which New Zealand possessed for which there was an insatiable demand at record prices. The latest figures showed that the number of quartz claims had increased from 26 in 1930 to 73 last year, and alluvial claims had increased from 306 to 4357. In this connection it might be mentioned that over 3000 prospectors were being subsidised by the Unemployment Board. The number of operating dredges had increased from three to 12, and it was anticipated that by the end of this year there would be at least 18 and possiibly 1!) dredges in operation, with the prospect of an increase to 30 within the next two years.

" Overseas interests have shown their confidence in the administration of the Mines Department, and during the next two years much new capital is likely to be introduced into the country," said Mr Forbes. "Altogether the prospects of the, gold mining industry are very bright, particularly on the West Coast of the South Island, The developments immediately in view are bound to help appreciably in solving the unemployment problem. * The Unemployment Board recognises the great potential value of the industry as a field for the absorption of unemployed workers, and is prepared to give grants and make advances to individuals and companies whose propositions can earn the endorsement of the Mines Department!" The Prime Minister emphasised the opinion that the future of gold mining in New Zealand depended on the use of modern methods and equipment, which could only be furnished by strong companies with ample financial resources. He also reiterated the Government's policy to promote industrial expansion in many directions.