ONEKAKA ORE

Otago Daily Times, Issue 23595, 3 September 1938, Page 14

ONEKAKA ORE

EXHAUSTIVE BORING TESTS A COMPLETE INVESTIGATION MINISTER DISPLAYS CAUTION (From Our Parliamentary Reporter) WELLINGTON, Sept. 2.

The determination of the Government to make full and complete investigations, before proceeding with the development of the iron ore deposits at Onekaka was stressed by the Minister of Industries and Commerce (Mr 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 Mr W. J. Broadfoot (Oppositiqn. Waitomo) who said there appeared to be some doifbt as to the quantities of ore available. The question of the adequacy of supplies was of tremendous importance. The Leader of the Opposition (Mr A. Hamilton) said it was wise to take all precautions and make all the necessary investigations before embarking definitely on a project involving an expenditure of at least £5,000,000. "After the Bill was passed earlier this year." Mr Sullivan said, "I informed the officers of my department that a full and complete test 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. First Estimates Over-stated "It seems that the original estimates were based almost entirely on surface indications," the Minister continued. "We set to 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 seems pretty certain that 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 we 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 -justification. "It will probably be next April or May before we get a reliable indication of the true position," the Minister added. "We are 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 we are sure we can go ahead." The Leader of the Opposition (Mr A. Hamilton): You have not raised the £5,000,000 yet? Mr Sullivan: No. The expenditure to dale has been from the Employment Promotion Fund. No Commitments Made "I am confident in my own mind that there is sufficient iron ore at Onekaka for the development of a successful industry," the Minister said, "but I 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 be based. I am disappointed at this delay, but a full investigation is highly necessary." Mr S. G. Holland (Opposition, Christchurch North) asked the Minister if any machinery had 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.

In reply to a question by Mr W. P. Endean (Opposition, Parnell), the Minister stated that Mr G. A. Pascoe, the acting commissioner 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 to chance. Mr G. W. Forbes (Opposition, Hurunui): You can always fall back on the Taranaki iron sands. Mr Sullivan: Unfortunately no process has yet been discovered for removing the impurities from these sands. The vote was passed without further discussion.